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This article provides empirical results indicating that acting in a socially respon- sible and lawful manner is a necessary, though not sufficient, condition for increasing shareholder wealth. It meta-analyzes 27 event studies that have mea- sured the stock market's reaction to incidences of socially irresponsible and illicit behavior. It finds that for firms engaging in socially irresponsible and illicit behavior, the effect on shareholder wealth is negative (wealth decreases), statisti- cally significant (p < .001), and so substantial in size (D = -.932) that the distribution of abnormal returns is shifted nearly a full standard deviation to the left (i.e., negatively) from their expected standard normal distribution. This result gives rationally self-interested firms a self-interested reason to act in a socially responsible and law-abiding manner. It also provides support for a moral position called enlightened self-interest, which prescribes that firms should act in a socially responsible manner to promote the shareholders' interests.

Using Frooman’s typology of stakeholder influence strategies, this research examines the strategies that stakeholders select to exert influence on a firm. Using an experimental approach, the responses of actual environmental leaders to a series of hypothetical vignettes were examined. The results of the experiment suggest how both structural and demographic variables can act as determinants of strategy choice along with how these two types of variables may both complement and inhibit one another. Specifically, the results suggest that repertoires of strategies play a critical role in stakeholder behavior. Demographic variables appear to define the repertoires of strategies the stakeholder will typically choose among, whereas structural variables further refine choice from within that repertoire.

Purpose -Does leadership style affect absenteeism in a company? The purpose of this paper is to contrast the effects of two leadership styles -transformational and passive avoidant -on absenteeism, both legitimate and illegitimate, as mediated by job satisfaction. Design/methodology/approach -A self-report questionnaire was completed by a sample of 120 employees of a national mail delivery company. Hierarchical regressions were used to analyze the data. Findings -It was found that transformational leadership decreases illegitimate absenteeism, while passive avoidant leadership increases it. In regard to legitimate absenteeism, transformational leadership is shown to have no effect, while passive avoidant leadership is shown to be negatively related to it. Together, the findings regarding passive avoidant leaders suggest their subordinates tend to come to work when ill (presenteeism), but stay away from work when well (illegitimate absenteeism). Practical implications -For managers trying to reduce the costs of absenteeism, this suggests that leadership style can make a difference. Managers who give subordinates very little attention, or attention only when they have done something wrong -the passive avoidant style -are likely to experience the higher costs of both absenteeism and presenteeism. Adopting the transformational style may help to reduce these costs. Originality/value -The paper helps to extend the current work on leadership; it examines the passive avoidant style, which remains understudied to date; and it enriches our understanding of the relationship between leadership style and absenteeism as an outcome variable by moving beyond a uni-dimensional conceptualization of absenteeism. Finally, it serves as a basis for future research by providing evidence for a somewhat counter-intuitive finding that, under passive avoidant leaders, workers appear to come to work when sick, but stay away from work when well.