Bath Business and Society

Research, analysis and comment on the role of business in society from Bath's School of Management

Topic: Business and society

Getting women onto the board – why some countries fare better than others

  ,

📥  Business and society, Gender equality, Policy

Office Politics is simply how power gets worked out on a practical, day-to-day basis. 

Office politics "is the use of one's individual or assigned power within an employing organization for the purpose of obtaining advantages beyond one's legitimate authority. Those advantages may include access to tangible assets, or intangible benefits such as status or pseudo-authority that influences the behavior of others. Both individuals and groups may engage in Office Politics." 

Office politics differs from office gossip in that people participating in office politics do so with the objective of gaining advantage, whereas gossip can be a purely social activity. However, both activities are highly related to each other.

Office politics also refers to the way co-workers act among each other. It can be either positive or negative although for most of us 'abnormals' it's negative!

View On Black

 

The world over, there are more men than women in corporate boardrooms. This means that business is missing out on the talent and skills of a hugely important group that could make business more competitive. Here, on International Women’s Day, Dr Johanne Grosvold and Dr Bruce Rayton discuss research which shows how four key institutions - family, education, economy, and government - either facilitate or hinder women’s rise to the boardroom.

Following the collapse of Lehman Brothers in 2008, Christine Lagarde of the World Bank questioned whether the bank would have collapsed had it been the Lehman Sisters, rather than the Lehman Brothers. She suggested that insufficient gender diversity in the upper echelons of financial institutions was partly to blame for the financial crisis and corporate collapses.

The continued under-representation of women in corporate boardrooms across the world remains a thorn in the side of big business and politicians alike. Increasingly though, governments and businesses are beginning to consider what can be done to redress the balance. Some countries such as France and Sweden are leading the way with up to 41% of women on the board, while others such as Greece and Malta lag behind with rates of only around 5-10%.

Given such cross-national variation, we set out to understand why it persists and to identify what could be done better to make gender diversity in the boardroom a reality. Taking a sample of 23 countries, including most of Western Europe, the USA, Asia and Latin America, we analysed the role of education, family, religion, economy and the role of the government in influencing board diversity. Our results were both surprising and encouraging.

Out of the five institutions we analysed, four were statistically significant in helping to explain why women do or don’t make it to the boardroom. Family, education, economy and the government all played a role while religion was the only factor that had no apparent effect.

Education - in countries where women and men enjoy similar levels of enrolment in higher education, women are better represented in the boardroom.

Family - in countries where there are fewer incidents of divorce, there are fewer women on the board. In other words, we found that an unintended outcome of higher rates of the divorce over the last few years has been greater labour force engagement and executive ambitions amongst women.

Economy - where women make up a smaller proportion of the managerial labour force, there are fewer women on the board.

Government - in countries where governments back their welfare legislation and family friendly policies with money and, for example, subsidise childcare, women are better represented in the boardroom. Passing legislation and instigating initiatives designed to encourage women to balance family and working life only give the desired results if there is adequate funding to make these initiatives meaningful and effective.

We believe these results may be good news for business and women alike. Increasingly more women than men are pursuing higher education, which means they are giving themselves the best starting point for climbing the corporate ladder. It is important, though, that governments consider the potential effects of their broader policies on women and families, to ensure that these help rather than hinder women to capitalise on the benefits of higher education.

In many countries, women retain the role of primary carer. Governments are, however, increasingly attuned to the need for providing better funded welfare provisions such as subsidised childcare to ensure that women are able to contribute fully to society and economy. This suggests that going forward, business is likely to reap the rewards of even more and better talent. To maximise these benefits, business could play a more active role in complementing government action, for example by including subsidised childcare in remuneration packages in countries where such provisions are not routinely provided by the state.

Welfare provisions of this kind have typically been associated with liberal or social democracies. But the growing acknowledgement of the business case for supporting women's career progression means that governments and employers in all countries should do more to encourage gender balance in the boardroom.

Is this the beginning of the end for Fairtrade?

  , , ,

📥  Business and society, Supply chains

iain-daviesAfter decades of fast growth, a reversal in the fortunes of Fairtrade is apparent. This is particularly so for the Alternative Trading Organisations (ATOs) that spearheaded the movement, but which have become its first casualties. Here, at the start of Fairtrade Fortnight, Dr Iain Davies asks what the future holds for Fairtrade.  

I remember cold, wet February mornings standing outside supermarkets and handing out free cups of coffee in an attempt to get the supermarket to stock Fairtrade products from ATOs. I remember walking into classrooms to eager faces waiting to hear how we can change the world through trade. It is now 20 years since those first Fairtrade Fortnights, and this week it is rolling around again with the brash claim that “the Fairtrade movement is made up of ordinary people doing extraordinary things in their communities”. The energy and vigour of this early social movement has however noticeably waned in recent years. This year, it is not just the British weather which is casting a dark shadow over proceedings. The question is being asked – is Fairtrade finished?

Fairtrade’s growth for much of those 20 years was meteoric. The Fairtrade mark not only became almost universally recognised, but inadvertently paved the way for the sustainability certifications that proliferate across fast moving consumables today. The UK led the way in the mass-marketization of Fairtrade, and still represents over 25% of all Fairtrade sales globally. But the future outlook has taken a noticeable turn for the worse.

Fairtrade-dave-crosby

Fairtrade by Dave Crosby

Fairtrade sales in the UK fell for the first time in 2015/16 by 5%. There is one growth area: bananas, a market dominated by one global supplier, Fyffes. Banana sales volumes are equivalent to that of cane sugar, coffee, cocoa, tea and cotton combined - all of which have seen volumes stagnate since 2011. Banana producers also benefit far more from Fairtrade membership, while smallholder-dominated categories like coffee and tea need to rely on other certification marks like Organic or Utz Certified to improve income.

Figure 1

Figure 1: Fairtrade benefits to producers (data from Fairtrade.net 2015 Monitoring and Impact report)

In the shops, growth has been in supermarket own-label products, often produced with reduced standards and limited producer support and development. The casualties are the pioneering ATOs, such as Traidcraft, Cafédirect, Divine and Liberation, who operate to much higher levels of producer support and development, but due to price competition and reduced shelf space, have seen like-for-like sales slump in the last five years. There have also been notable failures as new Fairtrade product categories such as gold, rice and quinoa have struggled to gain traction.

To further compound the issue, one of the biggest Fairtrade brands, Cadbury, has announced its intention to withdraw from the independent certification system in 2017, following others such as Starbucks into predominantly self-verified ethical certification. McDonald's and John Lewis Café have jumped to simpler verification systems such as Rainforest Alliance. 2017 certainly does not look rosy for Fairtrade.

There is also the issue of the consumer. Still largely unable to differentiate Fairtrade from other certification systems, our research suggests that frequent Fairtrade consumption is motivated by habit, self-gratification and peer influence, not a deep affinity with Fairtrade or its producers. These consumers are unlikely to switch brands purely because of a change in certification system.

So is the end of Fairtrade nigh? The idealistic social movement I joined, which believed it could subvert the market system, died some years ago. The Fairtrade which works within the existing market system to highlight issues of social injustice, however, and provides a framework for alternative trading, has nudged many commodity companies to confront their supply chain ethics. Indeed for people of this persuasion it could be argued the job is done. The more advisory role negotiated with Cadbury could offer a future to the certification bodies as they attempt to stay relevant to a corporatized, self-accredited system of supply chain governance.

But there remains a nagging feeling in my mind that the absorption of Fairtrade ideals into mainstream rhetoric has come at a cost. Not only has there been a reduction in the number of Fairtrade standards; one voice which may be noticeably absent this Fairtrade Fortnight is that of the pioneer ATOs that spearheaded this social movement. Increasingly delisted from supermarket shelves and priced out of the market by cheaper alternatives, they are struggling to break even whilst maintaining beyond Fairtrade commitments to producers. Ultimately, with an apathetic consumer and so many rhetorically similar marketing messages, it is these farmer owned, co-operative, or social enterprise pioneers that are likely to be the first casualty of Fairtrade’s demise.

 

We need a new voice in the debate about business and society

  , , ,

📥  Business and society

veronica-hope-hailey1  andrew-crane

Veronica Hope Hailey, Dean of the School of Management, and Andrew Crane, Director of the Centre for Business, Organisations and Society

In our increasingly polarised times, there is fervent debate over whether business is a force for good or bad in our societies. We believe it is high time that university researchers took a more active role in this debate, providing much needed evidence to inform popular opinion. To do so, we need to speak in a new voice.

“It was the best of times, it was the worst of times.” So starts Dickens' novel A Tale of Two Cities, a book which describes in stark comparison the cities of Paris and London at the time of the French Revolution. Today, we too live in divided times. We are divided politically, geographically, culturally, into the skilled and unskilled, the 99% and the 1%. Is your daily working life about Sports Direct or Goldman Sachs? About desperate migration or upward economic mobility? About zero hours contracts or business class flights?

Capitalism is over - you want it

Capitalism is over - you want it, photo by Anne Roth

Your answer to these questions will also undoubtedly inform your opinion about whether globalisation is a good thing or not and about whether business is largely to blame for many of the ills of the world. It will also colour your views on whether “sustainable business” is simply a hopelessly optimistic oxymoron or a genuinely realistic prospect in the coming decades. But these are not just matters of opinion. Behind the answers to these questions lie important empirical facts that can meaningfully shape the path we take.

What is clear, however, is that in times of uncertainty, trust becomes more important. But in the aftermath of the global financial crisis and never-ending corporate and political scandals, public confidence has been profoundly destabilised. The result has been a breakdown in trust in government, business, and so-called experts more generally - and a seeming turn to a “post-truth” society where “objective facts are less influential in shaping public opinion than appeals to emotion and personal belief”.

Irrespective of whether you believe we are really heading down a post-truth path, the message for those of us who might claim some degree of expert knowledge in the debate about business and society is clear. We cannot simply expect to be a trusted source of knowledge. And, to inform opinion, we need to do things differently from how we have in the past.

Most of us in the academic world are in our comfort zone when doing our research and speaking about it to our fellow scholars. A lot of our research is impenetrable to even an informed layperson. Even when it is not, our publications are usually locked behind the paywalls of academic publishers.

Too rarely do we actively bring our knowledge out to the world in a way that truly engages with non-academic audiences. And when we do, the results are sometimes catastrophic. As one recent article put it, “business schools play a significant role in reproducing the values, skills and mindset of much of what is wrong with contemporary capitalism, such as opportunism, greed, a focus on shareholder maximisation, and economic short-termism.”

Things are beginning to change. Our research suggests that the movement to embed sustainability in business school teaching and research is making progress. The Conversation is leading the way in bringing journalistic style to academic research. But in terms of accessible research specifically on business and society, we still have a long way to go. There remains a clear need for a trustworthy source of credible research to inform decisions about how business can best contribute to a sustainable society.

With the launch of the Bath Business and Society blog, we want to bring a new voice to this debate. In fact, we believe that the Bath School of Management is uniquely positioned to bring not just one new voice but a whole range of new voices. Our aim is to inform the conversation in a variety of ways through a variety of lenses. A focus on business and society is a core value of our school and nearly one third of our faculty do remarkable, world-class research addressing this theme.  Our students too, inspired and informed by our research, are impassioned, future leaders, looking to make a difference in the world.

Over the coming months, then, our faculty and students will be drawing on their unique vantage points to bring fresh insight and new knowledge to the debate about business and society. Whether it is climate change, fair trade, inequality, modern slavery, boardroom diversity, food waste, or employee wellbeing, they will have something novel, interesting, and informed to say.  And if they say it in enough different ways, maybe at least something will stick with our post-truth audience out there. Time will tell.