Monthly Archives: June 2025

The Enduring Green: How Centuries-Old Institutions Outshine Startups in Sustainability

What does it take for a company to endure through the centuries? When posed to most business analysts, the responses typically centre on innovation, financial acuity, or strategic flexibility in changing market dynamics. However, recent research highlights another significant factor at play: environmental sustainability. A study published in Frontiers in Organisational Psychology by an international team of researchers uncovers a strong correlation between a company’s age and environmental stewardship. Their findings challenge the common assumption that the younger, more nimble firms are best positioned to lead in climate action and ecological responsibility matters.

This research addresses a compelling question: are the organisations that have survived the longest also those most committed to preserving the planet? As the effects of climate change become ever more urgent and calls for corporate responsibility amplify, understanding which organisational traits align with sustainability is more vital than ever. The team’s investigation spanned hundreds of companies across technology, manufacturing, and finance industries, encompassing firms from the United States, Europe, the Middle East and North Africa (MENA), and Asia. Their goal was clear yet ambitious: to determine whether older firms demonstrate superior environmental sustainability than their younger counterparts.

The researchers analysed environmental, social, and governance (ESG) ratings from trusted sources like CSRHub, S&P Global, and Thomson Reuters to accomplish this. These ratings evaluate companies on various fronts, including climate strategy, eco-efficiency, and the transparency of their environmental reporting. The study’s results were striking: in every region examined, older firms consistently outperformed newer ones in environmental measures, even when accounting for variables such as size and financial capacity. This suggests that longevity – not merely the power or affluence that might accompany it – is closely intertwined with environmental responsibility.

Companies with more than a century of history in the United States showed significantly higher sustainability scores than those established within the past twenty years. This same pattern was observed in MENA and Asian markets, while the European figures, though slightly less pronounced, likely reflect data availability challenges rather than any actual performance gap. These findings counter the prevailing image of older firms as cumbersome or inflexible. On the contrary, they suggest that withstanding the tests of time requires adaptability that encompasses not just financial and market-based shifts but also the environmental and societal transformations of the modern era.

The researchers delved further, proposing theories about why this generational difference might exist. Drawing on organisational evolution theory, resource dependence theory, and Cybernetic Trait Complexes Theory, they argue that long-term survival depends on a company’s ability to integrate environmental sustainability into its operational core. Over time, older firms have often had to learn how to navigate resource constraints, public scrutiny, and shifting social values, which naturally steer them towards sustainable practices. Rather than viewing sustainability as an external add-on, these organisations embed it as an essential pillar of their operations and identity.

These findings carry powerful implications for both policy and practice. Policymakers might consider designing incentives that recognise long-established firms’ sustainability strengths while supporting younger companies in embedding environmental goals into their growth trajectories. Investors, too, may find value in this perspective: strong ESG scores can indicate a company’s social conscience and broader adaptability and resilience. Above all, this research encourages a rethinking of sustainability as something beyond generational or geographic divides. It is a test of adaptability – and as these older firms demonstrate, the most enduring organisations are often those that have come to see sustainability not as a burden but as a key to their ongoing vitality and relevance in a rapidly changing world.

More information: Daria M. Haner et al, Survival of the greenest: environmental sustainability and longevity of organizations, Frontiers in Organizational Psychology. DOI: 10.3389/forgp.2025.1521537

Journal information: Frontiers in Organizational Psychology Provided by Frontiers

Worker Productivity Indicates Preference for Wage Fairness over Wage Uniformity

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In a detailed examination involving almost 20,000 employees across public universities, researchers have illuminated a crucial aspect of worker psychology many employers overlook. Rather than fixating solely on whether they earn more or less than their colleagues, employees are primarily concerned with whether their pay aligns with their work. This study, published in the Strategic Management Society’s Strategic Management Journal, challenges conventional assumptions by indicating that perceptions of fairness, rather than simple wage parity, drive worker responses to salary transparency.

Traditionally, some companies have hesitated to publish salary data out of concern that it might erode morale and dampen productivity across the workforce. However, the authors of this study discovered a more nuanced reality: small, individualised shifts in productivity occur, and these shifts often reflect how employees judge the fairness of their compensation. Rather than leading to widespread dissatisfaction or discontent, transparency can provoke workers to adjust their output depending on whether they feel their compensation truly mirrors their contributions.

Dr Tomasz Obloj, one of the study’s co-authors and an associate professor at Indiana University’s Kelley School of Business, encapsulated this dynamic. “Our results suggest that individuals primarily responded to wage inequity rather than inequality,” he stated. “By inequity, we mean unfairness in how pay reflects performance, not merely differences in pay levels.” This distinction underlines that the mere presence of pay gaps does not necessarily provoke negative responses—it is the perception of unfairness in the relationship between effort and reward can prompt workers to change how they engage with their roles.

The researchers focused on faculty members at 116 higher education institutions across eight states, taking advantage of the fact that salary information had been made public through news reports, think tanks, and government websites. This provided a unique, real-world setting to observe the effects of transparency outside of the laboratory. The team compiled a detailed index based on published academic articles, books, book chapters, and academic honours to measure productivity. Although this index could not capture teaching quality or institutional service, it was a strong proxy for research-focused faculty output, which is often central to tenure decisions.

The findings from this analysis were compelling. Faculty members who discovered they were underpaid than their peers reduced their productivity slightly, perhaps reflecting a sense of injustice or demotivation. Conversely, those who realised they were overpaid responded by significantly boosting their output—between 5 and 13 per cent—likely to justify their higher earnings. Dr Cédric Gutierrez, the study’s lead author and an assistant professor at Bocconi University in Milan, observed that “employees who found they were paid more than their performance warranted increased their productivity, likely to justify their elevated compensation.”

This research is one of the first to examine the real-world effects of pay transparency at scale rather than relying solely on experimental data. The implications extend beyond academia, offering a hopeful message for employers considering greater openness. Far from eroding morale, publicising salary information can reveal hidden inequities and foster adjustments that better match effort with reward. Dr Gutierrez noted, “An initial productivity response may reflect what employees discover about how they are treated. But if the pay structure changes in response to the transparency, those initial productivity responses may dissipate as inequities are addressed.” Ultimately, this suggests that salary transparency, paired with genuine efforts to rectify disparities, can become a powerful tool for enhancing fairness and productivity in the workplace.

More information: Cédric Gutierrez et al, Pay transparency and productivity, Strategic Management Journal. DOI: 10.1002/smj.3707

Journal information: Strategic Management Journal Provided by Strategic Management Society

Most UK Gig Economy Workers Face Anxiety Over Ratings and Pay, Study Reveals

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A recent survey led by the University of Cambridge has revealed that around two-thirds of UK-based gig economy riders and drivers – those working for food delivery and ride-hailing apps – experience significant anxiety over unfair feedback and sudden changes to working hours. The study, which polled over 500 casual workers in 2022, highlights that three-quarters of these local workers also fear sudden drops in their income, and more than half reported risking their health and safety on the job.

The findings, published in Work, Employment and Society, suggest that while the gig economy’s flexibility appeals to some, it brings anxieties and health risks. Many gig workers spend about ten unpaid hours weekly waiting for work to come through on apps. Researchers found that local gig workers – including riders and drivers – earn around £8 per hour, about 20% less than remote digital gig workers, whose average hourly pay is £10. This lower pay leaves many riders and drivers earning below the UK minimum wage despite the job’s physical demands and tight deadlines.

Dr Alex Wood, the lead author from Cambridge’s Department of Sociology, remarked on workers’ mental strain: “Rating systems can lead to deactivation for workers. If your job is at the mercy of a quick click on a stranger’s phone, it’s bound to cause constant anxiety and a sense of being monitored and judged.” His team’s data also reveals that riders and drivers report significantly more health issues than remote gig workers, with over half suffering physical pain related to their jobs.

The precarious nature of gig work and lack of security are also prominent issues. 65% of riders and drivers feel anxious about unexpected changes to their working hours, compared to 40% of remote workers. In addition, 74% worry about sudden changes in how they must perform their job – another factor contributing to job insecurity. While remote workers generally report more autonomy and the freedom to manage their work tasks, only about two-thirds of riders and drivers said they had similar flexibility.

Many gig economy workers are recent migrants, and the researchers ensured their study was accessible in languages like Polish, Spanish and Bengali. Prof Brendan Burchell, a co-author of the study, emphasised that although gig economy workers are technically self-employed, they can still be economically dependent and face exploitation, underlining the need for better protections.

The study also includes personal testimonies from gig workers that bring these statistics to life. In a related research project, Cambridge PhD student Jon White spoke to Cambridge drivers about the job’s physical toll and the need for fairer wages. One driver described constant pain in his thighs and difficulty sleeping, while another lamented the low fares that sometimes force them to work longer hours to cover their basic bills.

Overall, the study illuminates the reality of gig economy work for many in the UK: a sector that promises flexibility and autonomy yet delivers a mixture of anxiety, financial precarity, and physical hardship. With the number of gig workers continuing to grow, these findings call for urgent attention to improving job quality and safeguarding the well-being of those who keep the wheels of the gig economy turning.

More information: Alex Wood et al, Beyond the ‘Gig Economy’: Towards Variable Experiences of Job Quality in Platform Work, Work Employment and Society. DOI: 10.1177/09500170251336947

Journal information: Work Employment and Society Provided by University of Cambridge

Revised Estimates Reveal African Green Hydrogen Far More Expensive Than Earlier Projections

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Governments and the private sector have turned their attention to Africa to meet Europe’s pressing demand for green hydrogen, envisioning a continent with solar and wind energy potential. However, a new study led by the Technical University of Munich (TUM), in collaboration with the University of Oxford and ETH Zurich, casts doubt on these optimistic projections. The study’s findings reveal that financing costs for green hydrogen production facilities in African countries are significantly higher than previously believed. In fact, of the 10,000 locations examined, only 2 per cent could be deemed competitive for exporting hydrogen to Europe. This revelation underscores the need for European governments to step in with price and offtake guarantees if these ventures have any chance of becoming viable.

Green hydrogen, produced through electrolysis powered by renewable energy, is seen as a linchpin in Europe’s efforts to decarbonise industries such as steel and cement. With domestic production falling short, Africa’s coastal nations have been hailed as promising partners in this transition, given their favourable climatic conditions and abundant land. Yet, despite the enthusiasm and early-stage project planning, the study warns that reality is far more complicated. The promise of Africa as Europe’s green hydrogen powerhouse collides with the continent’s complex financial and political realities.

A key insight from the research is that most existing cost models have relied on overly simplified assumptions, treating financing costs as uniform across all regions. According to Florian Egli, who leads the Professorship for Public Policy for the Green Transition at TUM, this approach overlooks the significant differences in investment environments between African nations. Many countries face high political and legal risks, making investors wary and consequently driving up the cost of capital. These risks cannot be ignored, as they substantially influence the final price of African hydrogen produced.

To capture these nuances, the research team developed a new methodology for calculating financing costs tailored to the specific conditions of 31 African countries. The model considers various factors, including transportation and storage infrastructure, political stability, and legal certainty. It assumes that the production plants will be operational by 2030 and that the hydrogen will be converted into ammonia for shipment to Rotterdam, a major European port. By analysing different scenarios—varying both interest rates and the extent of government guarantees—the team was able to provide a more accurate picture of the potential costs involved.

Under the current high-interest-rate environment, the cost of financing in Africa could range from 8 to 27 per cent, starkly contrasting the previously assumed rates of 4 to 8 per cent. These higher costs translate directly into elevated hydrogen production prices. If African operators must bear the full investment risks alone, the price of green hydrogen would be just under €5 per kilogram. In contrast, with European government guarantees and lower interest rates, the lowest possible price would decrease to around €3 per kilogram. Nevertheless, even at this reduced price point, African producers would face stiff competition from other regions, including European initiatives that have already secured hydrogen production at prices below €3 per kilogram.

Stephanie Hirmer, a professor of climate-compatible growth at the University of Oxford, stresses that these revised calculations highlight a fundamental problem: previous estimates have failed to account for the socio-political risks that are inextricably linked to African projects. This oversight means that many planned investments may be based on unrealistic expectations, potentially leading to costly missteps and project failures. To avoid these pitfalls, policymakers and investors must recognise the unique challenges of working in African countries and tailor their strategies accordingly.

The study identifies around 200 locations across six African nations—Algeria, Kenya, Mauritania, Morocco, Namibia, and Sudan—that could achieve competitive hydrogen prices by 2030, provided European guarantees are in place. However, this projection does not fully consider localised security risks, which could further diminish the number of viable sites. Florian Egli concludes that European governments must play a decisive role by offering fixed-price guarantees and leveraging international instruments like World Bank loan default guarantees. These measures are crucial for creating a stable environment for Africa to emerge as a serious player in the green hydrogen market. Without such political support, the lofty ambitions for African green hydrogen will likely remain unrealised, leaving the climate and African communities short-changed.

More information: Florian Egli et al, Mapping the cost competitiveness of African green hydrogen imports to Europe, Nature Energy. DOI: 10.1038/s41560-025-01768-y

Journal information: Nature Energy Provided by Technical University of Munich (TUM)

How Some Supervisors Thrive by Undermining Their Teams

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Supervisors frequently shout and berate employees to bolster performance and affirm their authority within the workplace. Curiously, rather than feeling remorseful for their aggressive outbursts, many managers experience no guilt at all. This behaviour is far from uncommon if you have ever encountered a boss who seemed to delight in belittling staff or thriving on loud, demeaning tirades. Recent research from the University of Georgia sheds valuable light on this troubling dynamic, revealing that certain bosses flourish through such aggressive tactics.

Dr Szu-Han Lin, the W. Richard and Emily Acree Professor in Management at the UGA Terry College of Business has spent the past two decades examining the effects of workplace abuse. She observes that although it has long been recognised that such conduct harms employees’ well-being and productivity, there remains a persistent question: why do these managers persist in such actions despite their harmful consequences? Traditionally, it was assumed that any boss who behaved abusively would feel at least shame or regret afterwards. However, Dr Lin’s latest findings suggest otherwise — for some, abusive behaviour seems to provide a sense of personal satisfaction or even accomplishment.

Much of the existing scholarship in organisational psychology has centred on how abusive leaders undermine employee morale and performance. In contrast, less attention has been paid to what these behaviours offer the bosses themselves. Many previous studies have portrayed such conduct as the by-product of stress or emotional exhaustion rather than something intentionally cultivated. However, Dr Lin’s work shifts the focus from employees to the managers themselves, questioning whether some leaders may derive psychological rewards from their aggressive behaviour.

Interestingly, Dr Lin’s curiosity was piqued while watching episodes of Hell’s Kitchen, a popular television show renowned for its fiery host, Gordon Ramsay, who is notorious for his verbal tirades. Observing Ramsay’s repeated outbursts, Lin wondered whether such behaviour was merely a show for the cameras or if it hinted at a deeper, more calculated strategy. Could confident leaders rely on aggression as a deliberate method to maintain order and secure compliance?

To delve deeper, Dr Lin and her colleagues surveyed 100 supervisors across various sectors, including construction, nursing, manufacturing and sales. These managers were asked whether they engaged in abusive conduct and, more importantly, why. The answers were revealing: while some managers admitted to yelling when overwhelmed or burnt out, a substantial number confessed that they intentionally employed yelling and belittling to boost compliance and reinforce their status as leaders. Further investigation involved a detailed, fifteen-day diary study with 249 supervisors. They recorded whether they had been abusive on a given day, what had prompted the behaviour, and how they felt afterwards. Remarkably, many of those who had lashed out for personal gain — to boost compliance or solidify their authority — did not feel guilt at all; they instead reported feelings of accomplishment and satisfaction.

This research has important implications for how organisations think about leadership and the training they offer new managers. Dr Lin points out that recognising these underlying motives can help leaders identify alternative, healthier methods for commanding respect and inspiring compliance. She warns that while some managers might achieve a fleeting sense of control or efficacy through abusive tactics, such approaches always exact a steep price, undermining morale and corroding the fabric of the workplace. Ultimately, as Dr Lin highlights, there are more constructive and respectful paths to effective leadership — ones that do not require the degradation of others. Acknowledging these truths may be the first step towards fostering workplaces where performance and psychological well-being are upheld.

More information: Szu-Han Lin et al, Short-Term Fulfillment: How Supervisors’ Motives for Abusive Behaviors Influence Need Satisfaction and Daily Outcomes, Journal of Management. DOI: 10.1177/01492063251331910

Journal information: Journal of Management Provided by University of Georgia

Empathy drives positive online reviews for small businesses, Tulane research suggests

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Consumers frequently consult online reviews as an essential step when deciding where to shop, dine, or obtain various services. However, recent research from Tulane University has shed new light on the underlying factors that shape these reviews. Contrary to popular belief, the study reveals that the numerical ratings of products and services do not solely reflect their quality. Instead, the size of the company behind them has a significant influence on the way people perceive and respond to their experiences. Published in the Journal of Marketing, the study offers a comprehensive, international perspective on how business size interacts with online reputation.

The findings indicate that smaller businesses consistently receive more favourable online reviews than their larger competitors, even when the level of service or product quality is virtually identical. This discrepancy is not due to any inherent difference in performance but arises from a deeper psychological driver: empathy. Customers tend to feel a greater sense of connection and sympathy towards smaller businesses, and this sense of empathy translates directly into more supportive and positive online feedback. This nuanced understanding of consumer psychology suggests that reviews are as much a reflection of our social biases as they are of actual product quality.

Chris Hydock, assistant professor of marketing at Tulane University’s A. B. Freeman School of Business and co-author of the study, elaborated on the team’s findings by explaining that larger companies receive lower average ratings not because they inspire more criticism but because people are simply less motivated to offer them positive reviews. In contrast, smaller businesses evoke a desire in consumers to see them flourish, particularly after a pleasant experience. The difference is striking, demonstrating that our instinct to champion the underdog is a powerful force in shaping the digital landscape of consumer opinion.

To ensure the robustness of their conclusions, the researchers analysed millions of consumer reviews on platforms like Yelp, Amazon, Twitter, and Instagram. By meticulously controlling for the actual quality of the customer experience—whether it was exceptionally good or disappointing—the team could isolate the impact of company size on review scores. The data repeatedly confirmed that smaller businesses attract more generous ratings. This suggests that the empathy consumers feel for smaller enterprises influences whether they leave a review and the tone and substance of that feedback.

One of the most interesting aspects of the study lies in how this empathy-driven bias shapes both positive and negative reviews. The researchers discovered that customers are far more likely to leave glowing reviews for small businesses after a good experience and are more inclined to withhold negative feedback if things go awry. This phenomenon, described as a “positivity bias,” speaks to a broader tendency among consumers to offer moral and emotional support to smaller enterprises. In contrast, large corporations are seen as less deserving of this same leniency. The researchers explored how large companies might bridge this empathy gap through practical strategies to humanise their brands and foster more meaningful connections with consumers.

Indeed, the study suggests that larger businesses can bolster their online reputations by adopting warmer, more personal communication styles. Hydock highlighted that companies responding to reviews with genuine empathy—using the reviewer’s name, expressing authentic concern, and crafting sincere replies—often see a notable improvement in their online ratings. Such thoughtful interactions help transform impersonal corporate entities into relatable, humanised brands. For businesses navigating the competitive terrain of online reputation management, these insights underscore the importance of empathy in building trust and securing favourable word-of-mouth, regardless of their size or market dominance.

More information: Chris Hydock et al, The Effect of Company Size on Aggregate Word of Mouth Valence, Journal of Marketing. DOI: 10.1177/00222429251320603

Journal information: Journal of Marketing Provided by Tulane University