Abstract

External environmental labour-related risk factors influence the relationship between management and the work force of an enterprise. It is therefore of prime importance to consider these labour-related risk actors in order to be able to take a comprehensive financial investment decision. The risk factors concerned come from the political, economic, social and technological environments. The views of the participating investment practitioners (who are active in the long-term insurance industry) regarding these aspects are analysed against the background of relevant literature. The responses with reference to these labour-related risks in manual and knowledge worker enterprises are presented simultaneously and significant similarities and differences are highlighted.

Highlights

  • Financial investment decision-making requires a detailed investigation of the external environmental labour-related risk factors, since these factors influence labour relations within enterprises

  • The overall importance of the external environmental labour-related risk factors appears in the following pivot table: Table 1

  • Application of the sign test indicates that these differences are significant at the one per cent level, the conclusion can be reached that the economic environment is regarded as a more important labour-related risk factor for manual than for knowledge worker enterprises

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Summary

INTRODUCTION

Financial investment decision-making requires a detailed investigation of the external environmental labour-related risk factors, since these factors influence labour relations within enterprises. The external environmental labour-related risk factors to be considered include the political, economic, social and technological environments relevant to a particular enterprise. After taking relevant literature into consideration, the views of the participating investment practitioners (who are active in the long-term insurance industry) regarding these aspects are analysed. The responses in respect of labour-related risks in. Manual and knowledge worker enterprises are presented simultaneously, and significant similarities and differences of opinion in this regard are examined

OBJECTIVE
THE EMPIRICAL STUDY METHOD
External Environmental Labour-Related Risk Factors
Political Environment
Political stability
Labour market policy
Economic Environment
Business cycle
Level and trend in unemployment
Inflation
Global business environment
Social Environment
Different cultural values
Demographic characteristics and trends
Skills and education ofthe population
Technological Environment
CONCLUSIONS
IMPLICATIONS
Implications for Institutional Investors
Implications for Other Role Players
Full Text
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