Strategic managers are consistently faced with the decision of how to allocate scarce corporate resources in an environment that is placing more and more pressures on them. Recent scholarship in strategic management suggests that many of these pressures come directly from sources associated with social issues in management, rather than traditional arenas of strategic management. Using a greatly improved source of data on corporate social performance, this paper reports the results of a rigorous study of the empirical linkages between financial and social performance. Corporate social performance (CSP) is found to be positively associated with prior financial performance, supporting the theory that slack resource availability and CSP are positively related. CSP is also found to be positively associated with future financial performance, supporting the theory that good management and CSP are positively related.? 1997 by John Wiley & Sons, Ltd

/pdf/the-corporate-social-performance-financial-performance-link-5dvcpf0u3x.pdf

The corporate social performance-financial performance link

A review is presented of the book “Heuristics and Biases: The Psychology of Intuitive Judgment,” edited by Thomas Gilovich, Dale Griffin, and Daniel Kahneman.

Heuristics and Biases: The Psychology of Intuitive Judgment

https://rss.onlinelibrary.wiley.com/doi/pdf/10.1111/j.2517-6161.1988.tb01721.x

Local computations with probabilities on graphical structures and their application to expert systems

Much research in the last two decades has demon- strated that human responses deviate from the performance deemed normative according to various models of decision mak- ing and rational judgment (e.g., the basic axioms of utility theory). This gap between the normative and the descriptive can be inter- preted as indicating systematic irrationalities in human cognition. However, four alternative interpretations preserve the assumption that human behavior and cognition is largely rational. These posit that the gap is due to (1) performance errors, (2) computational limitations, (3) the wrong norm being applied by the experi- menter, and (4) a different construal of the task by the subject. In the debates about the viability of these alternative explanations, attention has been focused too narrowly on the modal response. In a series of experiments involving most of the classic tasks in the heuristics and biases literature, we have examined the implica- tions of individual differences in performance for each of the four explanations of the normative/descriptive gap. Performance er- rors are a minor factor in the gap; computational limitations un- derlie non-normative responding on several tasks, particularly those that involve some type of cognitive decontextualization. Un- expected patterns of covariance can suggest when the wrong norm is being applied to a task or when an alternative construal of the task should be considered appropriate.

https://www.cambridge.org/core/services/aop-cambridge-core/content/view/S0140525X00003435

Individual differences in reasoning: Implications for the rationality debate?

A theory of norms and normality is presented and applied to some phenomena of emotional responses, social judgment, and conversations about causes. Norms are assumed to be constructed ad hoc by recruiting specific representations. Category norms are derived by recruiting exemplars. Specific objects or events generate their own norms by retrieval of similar experiences stored in memory or by construction of counterfactual alternatives. The normality of a stimulus is evaluated by comparing it to the norms that it evokes after the fact, rather than to precomputed expectations. Norm theory is applied in analyses of the enhanced emotional response to events that have abnormal causes, of the generation of predictions and inferences from observations of behavior, and of the role of norms in causal questions and answers. This article is concerned with category norms that represent knowledge of concepts and with stimulus norms that govern comparative judgments and designate experiences as surprising. In the tradition of adaptation level theory (Appley, 1971; Helson, 1964), the concept of norm is applied to events that range in complexity from single visual displays to social interactions. We first propose a model of an activation process that produces norms, then explore the role of norms in social cognition. The central idea of the present treatment is that norms are computed after the event rather than in advance. We sketch a supplement to the generally accepted idea that events in the stream of experience are interpreted and evaluated by consulting precomputed schemas and frames of reference. The view developed here is that each stimulus selectively recruits its own alternatives (Garner, 1962, 1970) and is interpreted in a rich context of remembered and constructed representations of what it could have been, might have been, or should have been. Thus, each event brings its own frame of reference into being. We also explore the idea that knowledge of categories (e.g., "encounters with Jim") can be derived on-line by selectively evoking stored representations of discrete episodes and exemplars. The present model assumes that a number of representations can be recruited in parallel, by either a stimulus event or an

https://www3.canyons.edu/faculty/rafterm/0%200LLI%20LOVEandLOSS/Day%206%20Files/1986%20-%20Norm%20Theory%20-%20Comparing%20Reality%20to%20Its%20Alternatives.pdf

Norm theory: Comparing reality to its alternatives

Decision analysis is a technology designed to help individuals and organizations make wise inferences and decisions. It synthesises ideas from economics, statistics, psychology, operations research, and other disciplines. A great deal of behavioural research is relevant to decision analysis; behavioural scientists have both suggested easy and natural ways to describe and quantify problems and shown the kind of errors to which unaided intuitive judgements can lead. This long-awaited book offers the4first integrative presentation of the principles of decision analysis in a behavioural context. The authors break new ground on a variety of technical topics (sensitivity analysis, the value-utility distinction, multistage inference, attitudes toward risk), and attempt to make intuitive sense out of what have been treated in the literature as endemic biases and other errors of human judgement. Those interested in artificial intelligence will find it the easiest presentation of hierarchical Bayesian inference available.

D. Von Winterfeldt

Papers

Decision analysis and behavioral research