The third pillar of the UN Guiding Principles on Business and Human Rights (UNGPs) is often considered the ‘forgotten pillar’,1 especially when compared with the first pillar, where some of the ‘governance gaps’ the State must address in order to comply with its duty to protect under international human rights law are developed with some level of detail. The same happens in relation to the second pillar, which proposes a practical approach for the proactive involvement of companies in the identification and management of the risks their activities and business relationships may produce on human rights.2 However, the third pillar is not necessarily ‘forgotten’, as it is based on one of the core rights of the international human rights regime. In this regard, not only are the various elements and procedures for access to justice developed within each country’s domestic law and within the international legal system, but they have also been subject to detailed studies by the international and regional human rights community.3 However, it is the least proactive pillar of the UN framework on business and human rights, and the one that faces the greatest challenges in terms of making a specific, substantive contribution in light of the vast existence of civil, criminal, administrative and constitutional proceedings in domestic jurisdictions.

This article examines the economic foundations of three criteria used for evaluating the costs and benefits of social programs. Some criteria do not consider the scale of programs or address the costs associated with programs that expand or contract the total government budget. A recent addition to the list of evaluation criteria – the marginal value of public funds – does not adopt a social optimality perspective. It evaluates the optimality of expenditures assuming a predetermined aggregate budget without considering the social costs of raising that budget.

The iron and steel industry generates around 10 % of global greenhouse gas emissions. The bulk of the emissions originates from the iron ore reduction. In this reduction, coal is used as a reagent. Steelmakers could switch to hydrogen-based direct reduction using hydrogen instead of coal as a reagent to reduce iron ore to pig iron. This would eliminate the CO2 emissions from the equivalent process in a traditional blast furnace. However, the process requires massive amounts of electricity. This paper looks at the economics of such a switch to “green steel.” We assess a marginal increase in the production of a hypothetical green steelmaker. We also undertake an investment appraisal of a green plant, based on an ongoing installation in Northern Sweden, but also briefly consider a possible/planned investment in the US. This appraisal is complemented by computing the survival function for the net present value in a systematic sensitivity analysis. It seems highly unlikely that a green steel plant can be socially profitable. If the green plant displaces conventional steel produced within the European Union’s cap-and-trade system for greenhouse gases, total emissions remain more or less unaffected; permits and emissions are simply reshuffled. Hence, if end-users of green steel pay a premium, they might pay for an illusion.

We study how the scarcity of committed capital affects the equilibrium distribution of net alphas in the asset management industry. We propose a model of active portfolio management with different sales fee structures where committed capital is in short supply. In the model, a portfolio’s excess return is not fully appropriated by the money manager but shared with long-term investors. Empirically, we show that capital commitment allows funds to hold shares longer and take advantage of slow-moving arbitrage opportunities. Consistent with the model, funds with more committed capital generate higher value added, which, net of fees, accrues to long-term investors.

We investigate whether firms’ number of credit relationships with financial institutions affects labor market outcomes. Using 5 million observations on matched credit and labor panel data from Brazil, we estimate IV regressions, employing exogenous variation in firm-lender relationships due to nationwide bank M&A activity. Firms with more relationships employ more workers and pay higher wage bills. Credit availability, cost of credit, and financial institution heterogeneity are economic channels. The firm-level results translate into positive macroeconomic effects in municipalities and states. The evidence is novel and indicates the positive effects of multiple relationships on labor market outcomes in an emerging economy.

Does proprietary knowledge protection (PKP) spur or hinder the product-market performance of new firms? Exploiting the staggered adoptions of the inevitable disclosure doctrine by U.S. State Courts, which enhance PKP, we show that treated firms increase industry-adjusted sales growth by 2% compared to control firms. The effect is concentrated among small and young firms and increases with the scope of proprietary knowledge and rivals’ access to external finance. PKP encourages firms to develop new products and stimulates initial public offering activity. Our results suggest that PKP alleviates predation risk associated with “deep-pocket” rivals by allowing firms to maintain competitive advantages.

Our paper examines whether the impact of abusive supervision on on-the-job embeddedness (JEM) is stronger than on job satisfaction (JSAT), affective organizational commitment (AOC), and turnover intentions. We also examine whether the mediation impact of on-the-JEM in the linkage between abusive supervision and turnover intentions is stronger than the mediation impacts of JSAT and AOC. Data gathered from restaurant service workers in three waves in Ghana were used to test the abovementioned linkages via structural equation modeling. The findings illustrate that all hypotheses are supported. Specifically, the influence of abusive supervision on on-the-JEM is stronger than on traditional attitudinal variables. Additional findings demonstrate that the mediation effect of on-the-JEM in the relationship between abusive supervision and proclivity to quit is stronger than the mediation effects of JSAT and AOC. Implications for theory and managers are offered in our paper.

Responding to the call for more research on cognitive crafting, this study focuses on employees' reframing of their job characteristics to assign higher importance to job resources and downplay the relevance of costly job demands. Furthermore, it examines how these proactive cognitive strategies are embedded in an overall job crafting process, including both cognitive and behavioral aspects, and linked with work engagement. Preliminary results (n = 247) support the conceptualization of cognitive crafting encompassing approach and avoidance aspects targeting resources and demands, respectively. Moreover, three-wave data (n = 84) show that employees' cognitive efforts to highlight the centrality of job resources influence work engagement over time. Importantly, proactively organizing work leads to higher work engagement by prompting cognitive reframing of the relevance of job resources as central to one's work. Differently, cognitive efforts to downplay the relevance of hindering job demands are unrelated to following proactive behaviors and work engagement.

The paper investigates the validity of individual perceptions of heart disease risks, and examines how information and risk perceptions affect marginal willingness to pay (MWTP) to reduce risk, using data from a stated preference survey. Results indicate that risk perceptions held before receiving risk information are plausibly related to objective risk factors and reflect individual-specific information not found in aggregate measures of objective risk. After receiving information, individuals’ updates of prior risk assessments are broadly consistent with Bayesian learning. Perceived heart disease risks thus satisfy construct validity and provide a valid basis for inferring MWTP to reduce risk. Consistent estimators of the relationship of MWTP to endogenously perceived risk are developed. Estimating MWTP based on objective rather than subjective risks causes misleading inferences about benefits of risk reduction. An empirical case study shows that estimated benefits may be as much as 60–98 % higher when estimated using individuals’ heterogeneous perceptions of risk than when using aggregate estimates of objective risk. The main contributions include assessing the validity of risk perceptions and their updating, consistently estimating the relationship between MWTP and endogenously perceived risk, and demonstrating the importance of employing risk perception information for accurate benefit measurement.

Drawing on the job demands-resources model and conservation of resources theory, this study investigates how and when the high-performance work systems (HPWS) influence proactive workforce. Using the data obtained from 204 supervisor-employee dyads in China, we developed and tested a moderated mediation model in which leader-member exchange (LMX) moderates the positive relationship between HPWS and proactive behavior via work engagement. Our results demonstrated that the association between HPWS and proactivity was fully mediated by work engagement. We also found that the indirect effect of HPWS on proactivity was significantly weaker among employees with high-quality LMX. Theoretical and practical implications, as well as directions for future research, are then discussed.

Following the Russian annexation of Crimea in 2014, many investors responded by unloading their Russian sovereign debt holdings. However, data from Bloomberg show that at the time of the 24 February Russian invasion of Ukraine, ESG funds – investment funds pursuing environmental, social and governance goals – still held at least $8.3 billion in Russian assets;1 and while more than a thousand companies have curtailed their Russian operations and over 500 are holding off on new investments in the wake of Russia’s invasion,2 investors have been accused of being ‘missing in action’.3