Individuals, interactions and institutions: How economic inequality affects organizations

Bapuji Hari B

122 citations0/0 files storedHuman Relations

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Management and Organizational Studies Global and Cross-Cultural Management Culture, Economy, and Development Studies

Abstract

Research in a number of disciplines has shown that high levels of economic inequality adversely affect individuals and societies. Surprisingly, research examining the business consequences of societal level economic inequality is virtually nonexistent. In this article, I present a framework to study how economic inequality affects organizational performance. I suggest that economic inequality indirectly affects organizational performance via human development in the society, and directly via its effects on individual employees and their workplace interactions, as well as via the institutions in which the organizations are embedded. Further, I present a brief research agenda that seeks to illuminate the relationship between economic inequality and management and conclude with an overview of this special issue.

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References

1954A Theory of Social Comparison Processes 2014Capital in the Twenty-First Century 2019Economic Growth and Income Inequality 2003Income Inequality in the United States, 1913-1998 1991Health inequalities among British civil servants: the Whitehall II study 1973On Economic Inequality 1993Inequality Reexamined.2010The spirit level : why equality is better for everyone

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