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research The Impact Of Social Protests SOCIAL ACTIVIST ORGANIZATIONS often attempt Playing Favorites Boosts Performance FIVE RESEARCHERS have found that when bosses treat some employees better than others, it's actually good for productivity. The researchers include Stefan Thau and Madan Pillutla of the London Business School in the U.K., Christian Tröster of Kuhne Logistics University in Germany, Karl Aquino of the University of British Columbia's Sauder School of Business in Canada, and David De Cremer of Erasmus University in The Netherlands. In one experiment, the researchers divided 41 student participants into groups and asked them to email suggestions for improving education at their universities to their "team leaders." Half of the groups received replies in which the team leaders responded positively but equally to each suggestion; the other half received replies in which the team leaders showed preference for some ideas over others. In a follow-up survey, those in the "preferential treatment" group indicated greater willingness to volunteer for a group task than those in the "equal treatment" group. The researchers also conducted an online survey of employees. Those who reported receiving preferential treatment from their bosses noted feeling a greater sense of self-worth on the job. This information sheds new light on work culture norms in different parts of the world—companies in the U.S., for example, often show preferential treatment to star employees, while those in Northern European and Asian countries favor a more egalitarian approach. To achieve optimum team performance, managers should consider an approach that falls somewhere in between, says Aquino. "The key is to find the right balance," he says. "Treat everyone reasonably well, but treat those whose work counts most, or who have been most productive, just a little bit better." "Satisfying Individual Desires or Moral Standards? Preferential Treatment and Group Members' SelfWorth, Affect, and Behavior" appeared in the March 2013 issue of the Journal of Business Ethics. 52 July/August 2013 BizEd to compel a corporation to change its behavior by embarrassing its leaders and tarnishing its public reputation. Organizations such as Greenpeace and People for the Ethical Treatment of Animals (PETA) have convinced industry to change everything from how clothes are produced to how fast food is sourced. The irony is that an activist's social protest usually has little impact on a company's bottom line, according to Theodore Waldron of Baylor University's Hankamer School of Business in Waco, Texas; Chad Navis of the Wisconsin School of Business at the University of Wisconsin in Madison; and Greg Fisher of Indiana University's Kelley School of Business in Bloomington. Theodore "Targeted companies are not losing Waldron consumers, suppliers, or other transaction partners in large numbers," Waldron says. "So the question is, what do executives fundamentally consider when they are deciding how to deal with activists?" The researchers believe that activists may make enough "noise" in the marketplace that executives overestimate the impact of their campaign and respond to Chad their demands, says Waldron. If executives Navis are motivated by profit, they may resort to making mere promises, or "greenwashing." However, those who want to serve society well may implement changes that go above and beyond what activists want. That means that activists who target companies known for their concern for stakeholders— rather than companies that are visible or large—are more likely to be successful. Greg Even if protests have little impact, no Fisher company enjoys dealing with the fallout. The researchers suggest that companies reduce the likelihood of protests by changing practices that could garner activists' attention; promoting undesirable practices as common to the industry, not specific to their company; or inviting activists' input. "Explaining Differences in Firms' Responses to Activism" was published online in November 2012 in the Academy of Management Review.