Author Archives: support

Reconsidering the Roots and Realities of Poverty: A New Perspective

Despite a general improvement in living standards worldwide over the past thirty years, significant and entrenched inequalities have endured, manifesting between countries and within them. Urban and rural divides are particularly stark, highlighting the need for intensified efforts to eradicate poverty and ensure that everyone enjoys the means for a decent life. Even as economies have grown and technology has advanced, the promise of a decent standard of living remains unfulfilled for millions, suggesting that growth alone does not automatically translate to equitable well-being. Instead, these persistent gaps point to poverty’s complex and multifaceted nature—an issue that requires a far more nuanced approach than simply raising incomes.

A recent study published in Nature Communications underscores this complexity through an innovative lens. Drawing on data from households across 75 low- and middle-income countries, the study reveals that 94.9% of households fall short on at least one of ten fundamental living standards, with nearly two-thirds lacking in at least a third of these basic needs. Such numbers are much higher than those typically reported by conventional poverty measures, which rely on income thresholds alone. This discrepancy arises because the study employs the Decent Living Standards (DLS) framework developed by the International Institute for Applied Systems Analysis (IIASA). Rather than measuring poverty solely by income, the DLS framework considers whether individuals can meet their essential physical and social needs—a broader and arguably more human-centred definition of poverty.

Roman Hoffmann, the lead author and head of the IIASA Migration and Sustainable Development Research Group, stresses the importance of this approach. “Income doesn’t tell us enough,” he asserts. “It’s about whether people can meet their basic needs. Deep and persistent inequalities become apparent when we look at who has access to essential services, resources, and infrastructure.” Unlike traditional poverty metrics, which typically condense deprivation into a single score, the DLS framework dissects it into ten dimensions of wellbeing. Seven are tied to physical needs—housing, nutrition, and sanitation—while the remaining three cover social participation, including access to education, mobility, and communication. This comprehensive framework recognises that lacking in these areas constitutes a fundamental shortfall in living a decent life.

The study’s findings reveal the areas in which deprivation is most acute. For example, 72.2% of households in the sample lack modern means of food preparation, a clear indicator of energy poverty. Access to healthcare is another critical area, with 68.0% of households unable to obtain basic medical services. Additionally, 54.8% of households live in inadequate housing, and 47.9% have no access to proper sanitation. These statistics are not simply abstract figures—they reflect the daily struggles millions face. Omkar Patange, a study’s co-author, likens poverty to a “web of constraints” that forces families into impossible choices, such as whether to pay for food, healthcare, or education. These trade-offs shape lives in profoundly negative ways, perpetuating cycles of disadvantage that are difficult to escape.

The regional differences are equally striking and speak to the global scale of these issues. In Sub-Saharan Africa, only 12% of households meet two-thirds of the DLS thresholds, compared to 37% in South Asia, 44% in Latin America and the Caribbean, and over 70% in Eastern Europe and Central Asia. Despite some progress in certain countries, rural areas remain particularly disadvantaged, with the study finding that the rural-urban gap in living standards has barely shifted in three decades. Another study co-author, Caroline Zimm, says, “We were surprised that the rural-urban divide has not narrowed. We often assume that development automatically reaches everyone, but our data shows that’s far from the case.” The data also reveal how factors such as education, occupation, and household size intersect to shape patterns of deprivation, further emphasising the need for policies that tackle these inequalities at their roots.

The implications of this research extend far beyond academic discourse. The authors argue persuasively for a shift towards multidimensional poverty reduction strategies that prioritise income growth and sustainable and equitable access to essential goods and services. Furthermore, robust, household-level data collection cannot be overstated. Roman Hoffmann warns that cuts to survey funding could blind policymakers to the lived realities of poverty, ultimately hindering efforts to close these persistent gaps. Encouragingly, the study’s findings suggest that meeting decent living standards for all would require only a fraction of today’s global energy and material use, proving that the goal of eliminating poverty is compatible with the imperative of sustainability. Nonetheless, achieving this vision demands determined, well-resourced policy interventions that target the most marginalised communities—those whose right to a decent life has too often been overlooked or ignored.

More information: Roman Hoffmann et al, Subnational survey data reveal persistent gaps in living standards across 75 low and middle-income countries, Nature Communications. DOI: 10.1038/s41467-025-60195-5

Journal information: Nature Communications Provided by International Institute for Applied Systems Analysis

Empowered Women on Corporate Boards Foster Safer Work Environments

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The role of a board director has long been considered one of the most prestigious and influential positions in corporate America. Yet, it has also been a domain historically marred by the exclusion of women and other underrepresented groups. For decades, critics have highlighted the persistent gender disparity on corporate boards, arguing that this imbalance stifles fresh perspectives and impedes progress towards equitable decision-making. However, there has been a noticeable shift in recent years, driven by state legislation and mounting pressure from investors who now recognise the tangible benefits of diverse leadership. These external forces have compelled many firms to actively seek out female directors, gradually transforming boardroom dynamics in motion.

A wealth of prior research has already demonstrated that female directors on corporate boards can lead to notable improvements across a company’s operations and social responsibilities. For instance, studies have found that female representation correlates with stronger financial performance, enhanced social responsibility initiatives, and better product recalls and operational efficiency decisions. Building on these established findings, a recent study from the University of Notre Dame has cast new light on a vital aspect of corporate performance: workplace safety. This investigation reveals that companies with more female directors see fewer workplace accidents and injuries, underscoring the broader organisational value of gender diversity at the top.

Yet, as Professor Kaitlin Wowak of Notre Dame’s Mendoza College of Business points out, simply appointing women to board positions is not, in itself, sufficient to bring about significant improvements in safety outcomes. The real key lies in positioning these female directors within the most influential committees of the board, such as those responsible for risk management or operations. According to Wowak, women serving on these influential committees tend to feel more comfortable expressing their views and can better champion safety initiatives that might be overlooked. This, in turn, empowers them to make a tangible difference in the daily lives of employees, fostering an environment where safety becomes a central concern rather than an afterthought.

The study, conducted by Wowak along with Yoonseock Son and Corinne Post, relied on an extensive dataset spanning 1,442 firm-year observations across 266 companies between 2002 and 2011. Published in the Journal of Operations Management under the title “From the Boardroom to the Jobsite: Female Board Representation and Workplace Safety,” the research integrates data from OSHA workplace safety records, Institutional Shareholder Services, and Violation Tracker. This comprehensive approach allowed the team to draw robust conclusions about the relationship between board composition and employee well-being, lending significant weight to their findings.

Their analysis reveals that female directors are more likely to consider the needs of a broad range of stakeholders, exhibit a greater degree of risk aversion, and prioritise regulatory compliance. These attributes collectively contribute to a stronger safety culture within organisations. When women occupy positions of influence on corporate boards, they are more likely to push for management to monitor and report on safety measures and ensure robust protocols are in place. This proactive oversight helps cultivate a workplace environment where safety rules are not merely guidelines but critical practices that are rigorously followed.

Beyond the gender dimension, the researchers extended their inquiry to explore whether racial and ethnic minority directors similarly influence workplace safety. Indeed, they discovered that minority directors also bring unique, safety-relevant perspectives to boardroom discussions, paralleling the impact of female directors. Perhaps even more striking, the study found that when women and minority directors serve in positions of power, their combined influence creates a synergistic effect, further amplifying improvements in workplace safety. This suggests that diversity in all its forms has the potential to foster a more conscientious and secure working environment.

In the broader context of corporate governance, these findings carry significant implications. Workplace accidents cost American employers more than $170 billion each year, so the business case for cultivating a diverse and empowered board is compelling. Boards that include women and minority directors in key leadership roles are not merely checking a box for diversity — they are actively reshaping the priorities and practices of their organisations in ways that can save lives, reduce costs, and protect reputations. As Son aptly concluded, empowering these underrepresented directors curtails their inhibitions, shields them from undue interference, and allows their voices to shape the crucial conversations that govern workplace safety. Ultimately, this research makes a powerful argument for diversity as a catalyst for not just equity, but also for operational excellence and employee well-being.

More information: Yoonseock Son et al, From the Boardroom to the Jobsite: Female Board Representation and Workplace Safety, Journal of Operations Management. DOI: 10.1002/joom.1370

Journal information: Journal of Operations Management Provided by University of Notre Dame

Financial Executives’ Overconfidence Fuels Environmental Compliance Breaches

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New research has revealed a striking connection between the personalities of senior finance executives and firms’ environmental practices. Specifically, the study found that companies are more likely to breach environmental regulations when their Chief Financial Officers (CFOs) display a marked overconfidence in their decision-making abilities. This overconfidence can lead to short-sighted and risky decisions, with harmful consequences for the environment and the company’s long-term financial health.

The consequences of these environmental rule violations extend beyond regulatory fines. The study, which analysed data from nearly 600 US-based companies over 17 years, highlights that firms engaging in such misconduct suffer substantial long-term damage, particularly in declining credit ratings. Poor creditworthiness, in turn, can impact a company’s ability to secure favourable financing, hindering growth and stability. Such findings underscore how environmentally negligent behaviour driven by executive overconfidence can ripple through a firm’s broader economic standing.

Intriguingly, the researchers observed that state-level laws mandating consideration of all stakeholders – not merely shareholders – significantly mitigated these risks. Overconfident CFOs appeared less likely to propel their firms into environmentally risky behaviour in states with these stakeholder-focused legal frameworks. These laws effectively safeguard, compelling decision-makers to weigh broader social and environmental implications alongside financial performance, thereby protecting the interests of employees, customers, and local communities.

This novel research was a collaborative effort by scholars from the University of East Anglia (UEA) and Heriot-Watt University and colleagues from Coventry University, Bangor University, and the University of Aberdeen. While much prior research has focused on the role of Chief Executive Officers (CEOs), this study shifts the spotlight to CFOs – the financial stewards whose decisions shape a company’s fiscal strategy and, as it turns out, its environmental footprint. The findings have been published in the European Management Review, an academic journal dedicated to advanced studies in business and management.

Dr Yurtsev Uymaz from UEA’s Norwich Business School pointed out the novelty of the findings. He remarked that while overconfidence in executives has been linked to risk-taking in financial decisions, this is among the first studies to establish a direct link between CFOs’ psychological traits and environmental harm. Dr Uymaz also emphasised that stakeholder laws can play an essential role in curbing such overconfidence, acting as a form of external oversight to promote more balanced and responsible decision-making.

Professor Patrycja Klusak of Heriot-Watt University underscored the broader significance of the findings. She noted that by connecting the psychological tendencies of senior executives to tangible outcomes like pollution and financial decline, the study provides a compelling case for closer scrutiny of the personality traits of financial decision-makers. It also bolsters the argument for strengthening stakeholder-oriented legal frameworks, which can be a powerful brake on potentially harmful managerial behaviour.

The authors advocate for a more robust system of internal controls and governance mechanisms to address the risks overconfident executives pose. By doing so, firms can enhance investor confidence and contribute to broader social and environmental sustainability. Dr Uymaz concluded that firms with overconfident CFOs might find themselves particularly susceptible to penalties and reputational damage if they operate in regions lacking these stakeholder-oriented safeguards. Conversely, in states where such laws are in place, the firms appear better equipped to manage the potentially damaging impulses of overconfident decision-makers.

This research highlights the complex interplay between executive personality traits, regulatory environments, and corporate environmental performance. The evidence suggests that while overconfident CFOs may help drive growth through bold decision-making, unchecked confidence fosters a dangerous disregard for environmental compliance. This disregard, in turn, carries significant financial and social costs. Addressing the cognitive biases of senior managers and embedding stakeholder-focused legal frameworks into corporate governance are crucial steps in aligning financial success with environmental stewardship.

More information: Yurtsev Uymaz et al, CFO overconfidence, environmental violations, and firm performance. The moderating role of constituency statutes, European Management Review. DOI: 10.1111/emre.70016

Journal information: European Management Review Provided by University of East Anglia

Non-Western Nations Are Eroding the Effectiveness of Western Sanctions on Russia

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The European Union has recently announced yet another sanctions against Russia—its seventeenth so far. These measures build upon the extensive economic sanctions and wide-ranging export bans already imposed by the United States and the EU in the wake of Russia’s invasion of Ukraine in February 2022. Central to these initiatives is the strategic aim of denying Russia access to advanced technologies critical for producing and maintaining military hardware. Yet the stark reality remains that Western technology continues to be detected in the Russian drones and missiles deployed in Ukraine, starkly highlighting the limitations of these sanctions in achieving their intended effect.

To unravel this troubling dynamic, economists from the universities of Würzburg, Munich, and Princeton—Lisa Scheckenhofer, Feodora A. Teti, and Joschka Wanner—have carried out a thorough investigation into how military goods, despite being subject to sanctions, still manage to reach Russia. Their findings are published in the latest edition of AEA Papers & Proceedings, shedding light on a complex and persistent challenge: the circumvention of sanctions via third countries sympathetic to Moscow.

Joschka Wanner, Assistant Professor of Quantitative International and Environmental Economics at Julius-Maximilians-Universität Würzburg, explains that the study offers concrete evidence that military equipment sanctioned by the West has been reaching the Russian market indirectly, routed through countries considered friendly to Russia. In terms of complex data, the probability of these Russia-friendly nations exporting a sanctioned military product category to Russia jumped by an astonishing 20 percentage points relative to neutral countries after the conflict erupted. This dramatic increase highlights the porous nature of international sanctions when confronted with the realities of global trade and shifting alliances.

The team’s research relied on a rigorous analysis of publicly available trade data from UN Comtrade, one of the largest global trade databases managed by the United Nations, covering 2021 to 2023. They examined trade flows from 122 countries, categorising them into allies of the sanctioning coalitions, Russia-friendly states, and neutral parties. This detailed data provided a window into how trade patterns have adapted in response to the sanctions, revealing the pivotal role of third countries in circumventing the restrictions.

Of course, tracing these patterns was far from straightforward. Lisa Scheckenhofer notes that sanctions evasion is inherently clandestine, making detection an uphill task. Nonetheless, the data indicated that logistics firms in Russia-friendly countries significantly ramped up their transportation of Western goods to Russia following the outbreak of hostilities. This was accompanied by a discernible increase in exports from Western allies to these intermediary countries, setting the stage for onward export to Russia. Following these intertwined trade flows, the researchers could identify clear evidence of how sanctions were being bypassed.

Another layer of complexity emerged in distinguishing between deliberate sanction-busting and the more benign shifting of trade flows driven by increased costs. Feodora A. Teti explains that to untangle these factors, the team compared the exports of Russia-friendly and neutral countries, which maintained consistent trade costs with Russia. The discovery of a disproportionate increase in exports from Russia-friendly countries to Russia, alongside higher imports from Western allies to these intermediary nations, strongly suggested that these flows were not simply a reflection of higher costs but pointed to active circumvention of sanctions.

The study’s conclusions offer a sobering reminder of the limits of sanctions in a globalised economy where third countries can act as convenient intermediaries. Even more disconcerting is the revelation that some Western nations, despite their sanctions commitments, were four percentage points more likely to export these sensitive goods to Russia-friendly countries than neutral states. Although the study did find some evidence of declining violations by 2023, this modest improvement does not diminish the pressing need for more robust and proactive measures to close these loopholes. The authors argue that policies such as secondary sanctions, which would penalise third countries enabling such trade, ensure that sanctions fulfil their intended role in constraining Russia’s military capabilities.

More information: Joschka Wanner et al, Dodging Trade Sanctions? Evidence from Military Goods, AEA Papers and Proceedings. DOI: 10.1257/pandp.20251084

Journal information: AEA Papers and Proceedings Provided by University of Würzburg

Will you trust me this time?

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Consumers’ natural reluctance to trust what they do not understand has profound implications in the digital age, especially when it comes to the ubiquitous yet impenetrable terms of use contracts that underpin so many online services. These dense legal documents, often exceeding thousands of words, are drafted in a manner that alienates most users, who typically scroll past them without reading. Consequently, tech companies that depend on these arcane agreements — social media giants and digital service providers — have found themselves among the least trusted corporate entities in the public eye. This pervasive mistrust highlights a pressing question: might a more transparent approach to these contracts improve consumer confidence in these businesses?

This question has been at the forefront of research conducted by Tari Dagogo-Jack, an assistant professor of marketing at the University of Georgia’s Terry College of Business, in collaboration with Tim Samples, an associate professor of legal studies at the same institution. Their work, recently published in the Journal of the Association for Consumer Research, delves into whether simplifying legal language and making user terms more accessible can enhance consumer trust in tech companies. Dagogo-Jack noted the inherent opacity of these contracts: “These contracts are incredibly long and written in a language that most people simply cannot understand.” His suggestion is straightforward — rewriting these documents in plain language might offer a pathway to building greater trust, though he warns that this solution is far from uncomplicated.

The researchers’ findings reveal that while transparency can foster trust, it is not a panacea. Indeed, their studies found that plain language summaries did boost confidence in the companies that offered them. Yet this effect was limited, suggesting that transparency alone cannot repair all the damage wrought by years of complex and often one-sided contracts. For Dagogo-Jack, who studies consumer psychology and brand perception, and Samples, who focuses on the intersections of digital agreements and international investment law, this outcome sheds light on how deeply entrenched mistrust can be in these digital relationships.

The underlying reason is simple: people naturally feel more confident when they can comprehend what is being asked of them. However, most social media contracts remain daunting, with an average of over 6,700 words of dense, intimidating legal jargon. A few pioneering platforms have begun to break this mould by incorporating plain language summaries and helpful explanatory tools. Samples observed, “We noticed that some platforms included these plain English explanations alongside the legal contract language. It made us wonder how the public would interpret such efforts and whether they would impact consumer trust.”

To test this, Dagogo-Jack and Samples designed five studies that exposed participants to different versions of terms of use agreements — some with plain language summaries, some without. They assessed how well participants understood the terms, how much trust they felt towards the company behind them, and how comfortable they would share their personal information. Participants who encountered plain language summaries reported higher levels of understanding and, subsequently, greater trust in the companies. The researchers saw a symbolic dimension at play — by making their terms of use more digestible, these companies signalled that they were acting in good faith, which fostered a sense of loyalty among users.

Yet this symbolic act also exposed a fundamental tension. Dagogo-Jack said, “The fact that you’re making it easy for me to understand is a positive sign — you’re showing that you’re on my side. But once I can read and understand what these contracts say, I might realise that you’re still taking a lot of liberties with my data.” Thus, the very clarity that engenders trust can simultaneously unearth unsettling truths about how these companies operate. This discrepancy between perception and reality offers a cautionary tale for marketers and policymakers alike. While a promising tool for improving relationships with consumers, transparency risks pulling back the curtain on practices that many users would prefer to avoid.

Indeed, some companies have already embraced this shift towards plain language, including Pinterest and Kickstarter, while others are using more creative strategies like video explainers and interactive graphics to make their policies more approachable. These innovations can potentially change how users select which companies to do business with — and, in turn, pressure companies into offering genuinely more user-friendly policies. However, the spectre of “privacy washing,” as Dagogo-Jack and Samples warn, remains the risk that companies will exploit these transparent gestures as mere marketing tactics without fundamentally changing their underlying data practices. “You’re not going to be able to summarise and animate your way to consumer trust if your entire business depends on selling people’s data,” Dagogo-Jack cautioned.

As this research suggests, the future of trust in digital services may well hinge on how companies balance this newfound emphasis on clarity and openness with the real demands of their data-driven business models. In the coming years, Dagogo-Jack and Samples plan to continue exploring how multimedia presentations and aesthetic choices in these terms of use contracts influence perceptions of trust. Ultimately, their findings highlight both an opportunity and a warning. While transparent language can open the door to more trusting relationships, it must be backed by a genuine change in how companies treat users’ data if that trust is to be more than skin deep.

More information: Tari Dagogo-Jack et al, Plain English in User Terms: Spillover Effects of Enhanced Readability on Consumer Trust, Journal of the Association for Consumer Research. DOI: 10.1086/735026

Journal information: Journal of the Association for Consumer Research Provided by University of Georgia

USF Study Reveals Why Consumers Are Still Deceived by Fake Online Reviews

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Despite the growing awareness surrounding the issue of fake online reviews, a new study conducted by the University of South Florida (USF) has uncovered a concerning trend: consumers continue to be significantly swayed by what they read online, even when there are ample reasons for scepticism. This work, published in the prestigious journal Information Systems Research under the title “The Illusion of Authenticity in Online Reviews: Truth Bias and the Role of Valence,” delves deep into why people remain so susceptible to falsehoods on the internet. It addresses a pivotal question at the heart of the modern digital marketplace: do consumers naturally adopt a suspicious stance when evaluating online reviews, or do they have an ingrained tendency to trust these narratives?

At the heart of the study lies the “truth bias,” a term from psychology that encapsulates the human tendency to accept information as truthful unless there is a compelling reason to doubt it. According to the study’s co-author, Dezhi Yin, an associate professor at the USF Muma College of Business, this tendency plays a critical role in how online reviews influence consumer choices. “Our research is among the first to examine how consumers make real or fake judgments of online reviews,” Yin explained. “Understanding the consumer mindset is crucial, as it is ultimately consumers who are the primary targets of review manipulation.”

The study, carried out in collaboration with Samuel D. Bond of the Georgia Institute of Technology and Han Zhang, affiliated with Georgia Tech and Hong Kong Baptist University, involved five experimental investigations conducted between 2018 and 2023. In these experiments, participants were presented with reviews and asked to determine whether each was genuine or fake. Intriguingly, even when participants were informed ahead of time that half of the reviews they would encounter were fabricated, they consistently judged most reviews to be authentic, illustrating the stubborn power of the truth bias.

One striking example from the research involved participants being shown twenty restaurant reviews while knowing only ten were real. All reviews were displayed together, enabling participants to navigate back and forth to re-evaluate and refine their judgments. Despite this, on average, participants identified 11.38 reviews as real, suggesting that cross-checking did little to overcome the instinctive assumption of honesty. Yin observed, “This illustrates the power of truth bias in this context,” underscoring how deeply ingrained the tendency to trust reviews can be, even in the face of explicit warnings.

Another dimension explored by the researchers was the role of a review’s tone or “valence” — whether a review was positive or negative — in shaping perceptions of authenticity. Real-world data across multiple platforms have consistently shown that negative reviews are more likely to be fake than positive ones. However, contrary to this reality, the study participants were found to be more inclined to believe negative reviews over positive ones. Yin remarked, “Our findings suggest a striking contrast between reality and perception,” highlighting a troubling gap that can leave consumers vulnerable to manipulation by those who exploit this imbalance.

The broader implications of these findings for online marketplaces and consumer platforms are significant. The researchers argue that relying on users to identify and report suspicious reviews is not a reliable method to weed out deceptive content. Instead, they advocate for more robust interventions, such as prioritising identifying and suppressing fake negative reviews and implementing interface changes that help consumers better evaluate the credibility of what they read. Yin and his colleagues hope this study will inspire further research at the intersection of deception, psychology, and consumer behaviour — and ultimately lead to a digital environment in which consumers can make better-informed choices without being misled by the ever-present spectre of fake reviews.

More information: Dezhi Yin et al, The Illusion of Authenticity in Online Reviews: Truth Bias and the Role of Valence, Information Systems Research. DOI: 10.1287/isre.2023.0339

Journal information: Information Systems Research Provided by University of South Florida

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

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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