Business Ethics

This article is a transcript of an interview with Onno Bouwmeester, Professor in the Department of Management and Marketing, Durham University Business School, UK, and the Department of Management and Organization, Vrije Universiteit Amsterdam. The interview focused on his new book Business Ethics and Critical Consultant Jokes. New Research Methods to Study Ethical Transgressions, Springer, 2023.

The current economic and societal production system gives money a magnified importance, overlooking other essential flows necessary for human survival and existence. It focuses on monetary indicators like profits, dividends, and GDPs to evaluate organizational production, while often disregarding outputs that harm the biosphere. Money is treated as the constitutive being (ousia) and attributed undemonstrated explanatory properties. Intangible flow theory helps eliminate this metaphysical status of money by recognizing that monetary flows are just one of many necessary flows for human (...) survival and existence. Organizations deliver product-flows that require input-flows from and send output-flows back to the encompassing biosphere, whether they explicitly engage in environmentally friendly activities or not. Therefore, every organization is an ecological entity because it has a relationship with the biosphere, which participates in the manner through which humans integrate into their surrounding environment and relate to other living beings. Eliminating the metaphysical status of money integrates every organization in the biosphere, making organizations accountable for environmental harm caused by their activities. This can be achieved by deconstructing the metaphysical status of money in business models. (shrink)

Many companies are now targeting the sizeable segment of consumers in Bottom-of-the-pyramid (BoP) markets with new products to specifically address their needs. As mainstream consumers become aware of these initiatives, their views on what products may be construed as appropriate for BoP marketplaces, may influence their attitudes towards the companies engaging in BoP activities. We propose that when the mainstream consumers are culturally distant from the BoP consumers, they have less favourable attitudes towards a company marketing a hedonic product to (...) BoP consumers, compared to a utilitarian one. However, when the mainstream consumers are culturally closer to the BoP consumers, they are less likely to react negatively to a company’s marketing of a hedonic product compared to a utilitarian one. We theorize that these differences in evaluation are based on the mainstream consumers’ expectations regarding the products a company would/should target towards BoP consumers. We also examine two company characteristics (country-of-origin and profit orientation) as contingency factors affecting the attitudes of culturally close mainstream consumers towards companies engaging in BoP practices. Across two studies, we find support for our hypotheses. This research adds to a new stream of scholarship that theorizes about the permissible consumption mindset of mainstream consumers. The research also provides guidance to marketing managers and communication experts to help build favourable company attitudes and minimize any mainstream negativity towards a company’s marketing initiatives in the BoP domain. (shrink)

Inspired by Confucianism, Daoism, and Buddhism, many East Asian ethical leaders have aspired to emulate seemingly unattainable sages and buddhas throughout history. This aspiration challenges the common psychological view that significant gaps between role models and actual selves might hinder emulation motivation. It also differs from Western findings, which suggest that ethical leadership often emerges from emulating attainable exemplars like immediate supervisors or mentors. To decipher this intriguing emulation behavior in East Asia, this study employed a multiple-case approach involving 25 (...) ethical leaders from Taiwan. Results indicate that these ethical leaders formulate three approaches to sustain emulation motivation for seemingly unattainable exemplars. First, they draw on East Asian philosophies to address demotivating factors such as ego threats and goal unattainability. Second, they embrace the cultural values of the Sinosphere, amplifying motivators like self-betterment, altruism, and life purpose. Lastly, they capitalize on the collective tendency of their culture to assimilate positive environmental influences, including societal norms and social support. These findings elucidate how and why many East Asian ethical leaders sustain buddha/sage emulation: The cultural resources of the Sinosphere nurture effective psychological strategies, underpinned by universal psychological mechanisms that suggest wider applicability across various societies. (shrink)

Studies linking religion to CSR have produced conflicting findings due to a failure to draw distinctions among religious influences and different CSR practices, and to theorize their connection. Drawing on social identity theory and the theory of planned behavior, we first argue that religion will influence CSR when ethical values from a CEO’s religious social identification resonate with an aspect of CSR. Second, CEO attitudes congruent with those values and forms of CSR—interpersonal empathy and proactiveness—will strengthen that relationship. Third, the (...) relationship between religious social identification and CSR will be strengthened by a CEO’s ability to enact CSR policies, a function of personal and firm market power. Our research on 270 CEOs from 242 publicly traded US firms from 2007 to 2020 supports these relationships. (shrink)

In the context of business, interactions between individuals generate social systems that emerge anywhere within a corporation or in its relations with external agents. These systems influence the behaviors of individuals and, as a result, the collective actions we usually attribute to corporations. Social systems thus make a difference in processes of action that are often morally evaluated by internal and external agents to the firm. Despite this relevance, social systems have not yet been the object of specific attention in (...) the literature on moral agency in business. To fill this gap, I construct a theoretical framework based on Luhmann’s ideas on social systems and morality. In particular, I argue that morality is a phenomenon that occurs in communication, and an agent can engage in morality in three different ways (as a _moral factor_, an _expressive moral agent_, or a _reflective moral agent_) depending on the functions it plays in communicative interactions. Based on this framework, I argue that social systems in business can be considered moral agents of those types. (shrink)

So far, most ethical consumerism research has been contained within Western countries, thus limiting our understanding of the concept in emerging markets. Given the call for extending empirical-based knowledge for a better understanding of peculiarities, dynamics and country-level variations (i.e. social, cultural) in the context of ethical consumerism in emerging markets, this research cross-examines the interactive nature of individual- and country-level predictors of ethical consumerism in emerging and developed markets, employing a multilevel approach. At the individual level, we posit that (...) ethical consumerism is motivated by social and cultural capital. In contrast, at the contextual level, we choose country-level affluence as an influential factor that might impact the relationship between socio-cultural capital and ethical consumerism. The study uses the International Social Survey Programme’s (ISSP) 2014 citizenship module data set (including 34 countries) for investigating individual-level predictors (of social and cultural capital). The GDP per capita data from the International Monetary Fund’s (IMF) Economic Outlook database was used to examine the cross-level interactions between individual-level predictors and country-level affluence. The findings suggest that social and cultural capitals positively influence ethical consumerism in emerging and developed markets. Further, country-level affluence moderates the relationship between socio-cultural capital and ethical consumerism for both markets. However, cultural capital proved to be a stronger predictor of ethical consumerism as country-level affluence increases. The research findings highlight meaningful cross-country-level interactions that help further understand the basis of ethical consumerism from a global perspective. (shrink)

This study examines whether and how board gender diversity can affect corporate wage inequity by drawing on diversity theory and gender socialization and ethicality theories. Building on an exogenous relaxation of China’s one-child policy (OCP) in 2013, which led to a substantial decline in the female labor force participation rate. Our empirical analysis suggests that board gender diversity is negatively associated with corporate wage inequity. This result is robust to various endogeneity and sensitivity analyses. We find that the OCP relaxation (...) only increases average executive pay; it does not affect employee pay. One potential mechanism driving our results is that the decline in board gender diversity caused by the OCP relaxation reduces supervision, restriction, and fairness within the firm, which increases executives’ pursuit of personal interests and ultimately leads to the rise of wage inequity. Our findings are particularly significant for firms in capital-intensive industries, firms with a low level of employee bargaining power, and large firms. (shrink)

Coinciding with the rising development of emerging markets, sustainable consumption practices in these markets are increasingly under scrutiny. In this context, we compare empirical results from consumers in four countries (three emerging markets and one developed market) in an experimental study to uncover patterns of preferences for sustainable luxury products (i.e., products that combine sustainability and luxury characteristics). Our findings illustrate that consumers’ quality, emotional, price, and social value perceptions, as well as purchase and electronic word-of-mouth intentions, are consistently higher (...) in all three emerging markets compared to the developed market. We find that sustainability (vs. conventional) product features increase consumers’ product value perceptions and behavioral intentions, although this effect is partially stronger for the developed compared to the emerging market(s). We further show a positive sustainability effect for luxury products, this effect is stronger for mass-market products. Combining sustainability and luxury signals leads to similar effects in emerging and developed markets. Thus, emerging markets have promise in terms of scope for incorporating sustainability characteristics into luxury products. Sustainable luxury consumption can therefore be understood as a manifestation of global consumer culture. (shrink)

There is increased interest in deviant behavior in the workplace. However, research is lacking on the moral economy of such behavior. Moral economy is particularly important in contexts where syncretic forces impinge on deviant behavior. Consequently, we use moral economy reasoning to examine the relationship between ethnic obligation and deviant behavior in the African context. In Study 1, data (_N_ = 27, 148) show an inverted U-shape effect of meta-agency and deviant behavior. In Study 2, difference-in-difference (DID) analysis of data (...) (_N_ = 25,387 in 2005 and _N _= 51,587 in 2013) shows significant DID effect of meta-agency. Primary data from Study 3 (_N_ = 229) shows a U-shaped effect of agency and deviant behavior. In Study 4 (_N_ = 333), a replication shows support for the U-shape effect in Study 3. The four studies thus show complex patterns that reflect U-shape and inverted U-shape relationships between ethnic obligation and deviant behavior as indicated by bribery, corruption, and unethicality. Robustness checks support the curvilinear relationships suggesting that the effects are not due to chance. We discuss implications for research and practice. (shrink)

The article explores biblical sources of ethics principles of business. It demonstrates that in the contemporary pluralistic world, principles of biblical business ethics can be valuable in the communication and interaction among representatives of different countries and cultures, as they encompass fundamental foundations for building business relationships. Due to the influence of Christian morality on the culture of many nations, biblical values have the potential to significantly impact individuals and their economic behavior, contributing to the dissemination of important economic categories (...) in society. The study reveals that important anthropological foundations for fruitful economic relations have been formed within the framework of biblical theocentrism, including considerations of human dignity, honesty, diligence, responsibility, and charity. The biblical perspective on property as a temporary stewardship has significant implications for awareness and education about responsibility not only towards other people but also towards the environment, holding crucial relevance in the context of corporate social responsibility in the modern world. (shrink)

This paper aims to explain some economic aspects of sharia by using a widely grasped philosophical approach. The paper presents an Islamic position on business ethics as it is in Qu-ran and in interpretations of sharia elaborated by Islamic thinkers, first of all Indonesian ones. Following results given in selected positions of the literature of the subject the authors come to the following theses and conclusions: Humans must pay attention to few possessions that are basic needs. Humans must avoid prioritizing (...) secondary needs by ignoring basic needs because this is contrary to the maqashid of sharia. Property management must be carried out about a predetermined plan and people who have property should not hoard it. (shrink)

This research describes and empirically evaluates the application of a business ethics pedagogy informed by neuroscience and evolutionary biology that suggest ethical decisions are made unconsciously and emotionally. Moral Foundation Theory (MFT) provides a framework that considers a range of values individuals rely on for decision-making. This relates to Virtue ethics (VE) that develops intellectual and character virtues, requires emotional development and is thus suitable for guiding business ethics pedagogy. This study focuses on a business ethics course integrating intellectual virtue (...) and character virtue pedagogies, including contemplative and emotional intelligence skills practices. The aim of the course is to develop character, providing future managers the means to enact ethical decision-making through self-awareness of emotions, intrinsic values and translate these into ethical behavior. Pre-Post Emotional Intelligence (EI) and Moral Foundation Questionnaires (MFQ) are used to evaluate the development of students’ character virtues, i.e., increased emotional awareness, emotional regulation and intrinsic values. This paper mainly seeks to understand how to develop ethical behavior, beyond learning didactic definitions of what is ethically right and what is wrong, i.e. focusing on the learning process that can lead to personal ethical judgment and conduct. The related pedagogy integrates transdisciplinary theories and practices, and as such suggests a holistic approach to ethical behavior transformation. The results indicate limited, significant changes in all measures except emotional awareness. This developing field requires more research to identify the contributions of MFT and related pedagogy to students’ ethical development. (shrink)

This paper analyzes perceptions of responsible leadership in eight Asia-based firms during the first year of the COVID-19 pandemic. The focal firms were a mixture of multinational corporations (MNCs), large-sized enterprises, and small and medium enterprises (SMEs). In all eight focal firms, we found that the responsible decision-making of leaders during the pandemic was perceived to be guided by five main moral principles. These comprised equity-based justice for employees, meeting employees’ basic needs, ethics of care for employees, concern for non-employee (...) stakeholders, and interactional justice for employees. We developed a conceptual map of how these principles related to aspects of four ethics-oriented leadership theories. Our analysis also identified four types of responsible leadership policies and practices. These comprised prioritizing the health and safety of stakeholders, flexible work arrangements, meeting employees’ and customers’ special needs, and financial and psychological support for employees. (shrink)

This article features a comprehensive interview with Vincent Blok, renowned author of “The Critique of Management: Towards a Philosophy and Ethics of Business Management”, published in 2022. The interview is structured around four core themes: (1) Philosophical Context, (2) Methodology, (3) Theory and Application, and (4) Future of Management. Firstly, we explore the contextual significance and urgency for a philosophical investigation on the essence of management. Secondly, we delve into Blok’s distinctive philosophical method. Thirdly, we examine the theoretical foundations and (...) practical applications of his work. Finally, we engage in a broader discussion on how Blok’s insights resonate with the future landscape of management, addressing topics ranging from business education to the rise of artificial intelligence. (shrink)

As climate change continues to be a pressing issue affecting businesses, firms are taking proactive measures by integrating carbon considerations into their overall strategic planning for environmental sustainability. Nonetheless, the question of whether it pays to be green remains inconclusively answered. Based on an analysis of the 200 largest public listed firms by market capitalisation in Malaysia, the findings indicated that most of the firms are still reactive in managing their carbon activities; however, corporate carbon strategy does, indeed, lead to (...) better financial performance. The findings reaffirmed that going green pays off, particularly for firms with higher levels of foreign ownership. Interestingly, an inverse relationship was observed among firms with higher levels of government shareholdings. Additionally, the firms have been categorised into six different groups based on their scope and level of corporate carbon strategies, ranging from “wait-and-see” to “all-round explorer” classifications. Taken together, these findings enrich corporate carbon and sustainability literature and offer insights into theoretical and policy implications, along with suggestions for future research. (shrink)

Small and medium-sized enterprises (SMEs) play a critical role in the green economy due to their significant environmental footprint. Because more than 84% of the world’s population identifies with a religion, most SME top-executives are likely to identify with a religion that would influence their decision-making. Despite these recent advances, prior studies have focused on SMEs’ external drivers and did not consider the role of internal drivers, such as the characteristics of SMEs’ top-executives, in influencing green marketing strategy. We aim (...) to address this gap by focusing on religious identification as a key driver of green marketing by SMEs. Specifically, we examine the effects of top-executives’ religious identification on strategic green marketing orientation (SGMO), and how such effects are moderated by political ideology. Using respondents comprised of CEO and/or owner-managers of SMEs in the US, the results show empirical evidence supporting the importance of religious identification in influencing green marketing decisions. Moreover, we found that the effects of religious identification on SGMO are more pronounced among top-executives with Conservative ideology. (shrink)

We investigate how firms adjust corporate pension plans in response to economic policy uncertainty (EPU). Using a sample of US-listed firms, we find that firms increase pension underfunding levels when facing higher EPU. The result is robust to controlling for pension portfolio returns, discount rates, plan sizes, pension liability, numbers of employees, other macroeconomic factors, difference-in-differences and instrumental variable estimation, and additional evidence of pension risk-shifting. Further analysis reveals that financial distress and information asymmetry induced through EPU are the potential (...) channels. The effect is stronger for firms having CEOs being excessively paid, using cash flow as a performance metric in CEO compensation, paying high dividends, and having short-term institutional investors, whereas the presence of unions, positive corporate culture, and social capital alleviate the effect. Notably, managers, not shareholders, appear to be the party reaping the benefits. Our findings suggest that firms may shift risk to employees in response to heightened uncertainty and institutional characteristics play a moderating role in this crucial business ethics issue. (shrink)

The COVID-19 pandemic is a global crisis which has witnessed consumers experiencing significant anxiety provoked by the threats to their health and even lives. Meanwhile, consumers have been observed to make more ethical purchases since the start of the pandemic. Drawing on literature on terror management and negotiable fate, this research employs a moderated moderating model to investigate how consumers’ perception of the pandemic severity leads to ethical consumption as a defensive mechanism against death-related anxiety, as well as the differential (...) role of consumers’ belief in negotiable fate in moderating this pandemic impact across tight and loose cultures. We conducted two cross-cultural studies with 592 and 423 respondents, respectively, at different times during the pandemic. Results consistently show that perceived pandemic severity increases consumers’ intention to consume ethically. Consumers’ belief in negotiable fate directly enhances ethical consumption, but it alleviates the effect of pandemic severity on ethical consumption among consumers who live in a tight culture. Our findings reveal the existential meaning of ethical consumption as a buffer against pandemic-triggered mortality salience, identify the positive psychological functions of negotiable fate in promoting ethical consumption but mitigating consumers’ need to buffer death-related concerns, and advances the importance of investigating the cultural variances in the terror management process toward ethical consumption. The findings offer insights for marketers and policy makers to develop effective strategies to support consumers’ ethical coping during societal crises. (shrink)

Corporate misconduct receives significant attention in the business ethics literature. This paper studies how corporate misconduct is impacted by import penetration from China, which is largely exogenous to the U.S. product market. Using this natural experiment, we find that heightened Chinese import penetration curbs corporate misconduct of U.S. firms. The effect is more pronounced for firms with weaker corporate governance and firms more vulnerable to product market competition. The findings provide implications for firms facing increased import penetration. Firms may consider (...) improving corporate governance and exploring avenues for differentiation as potential strategies to cope with the competition. In addition, we address the exogeneity concern derived from the influence of Chinese value penetration. Furthermore, we find that competition-related policies such as tariff reduction and U.S. granting China Permanent Normal Trade Relations (PNTR) status also lower corporate misconduct. Our work adds to the debates on competition and corporate misconduct in a cross-country competitive landscape. (shrink)

Emerging markets are a growing force, and the resulting increase in wealth—especially among the middle class—promotes conspicuous consumption with potentially negative impacts for societal and environmental well-being. Efforts to encourage ethical consumer behavior in emerging markets often meet various forms of consumer resistance. One reason that ethical consumption may suffer in emerging markets is because consumers have difficulty considering ethical other-focused attributes, such as Fair Trade or eco-friendly options, especially if those attributes do not directly benefit the self. Our research (...) demonstrates a simple way to encourage more ethical consumption in emerging markets, without economic incentives. In particular, when consumers see narrow (vs. broad) product categories, they are more likely to incorporate both salient (self-focused) and non-salient (other-focused) attributes into their decision. Thus, narrow product categories encourage consumers to consider ethical attributes to a greater extent than they normally would. This finding holds in private settings, across various product categories (i.e., coffee, tea, juice) and contexts (i.e., online and in the field), and in different emerging markets (e.g., India, South Africa, and Iran). (shrink)

The process by which auditors consider fraud risk in assessing management’s motivation and character remains under-addressed. This is problematic given the rising tide of narcissism, as well as recent research documenting that both self- and other-perceptions of narcissism influence an array of judgments. While a skeptical attitude is fundamental to the auditor’s gatekeeper role, it remains unclear how auditors form and act on perceptions of client narcissism. With a large sample of experienced accountants as participants, we leverage insights from current (...) narcissism and perceiver effects research to predict (and find) that auditor skepticism responds in a divergent manner to both the auditor’s (1) own antagonistic versus agentic narcissism and (2) perceptions of the client’s antagonistic and agentic narcissism. We discuss the observed opposing behavioral externalities related to these distinct forms of grandiose narcissism, particularly in dynamic interactions between clients and auditors. (shrink)

Despite a growing body of literature focused on understanding experiences of workplace dignity, attention has centered almost exclusively on employees with lower-level jobs. As a result, little is known about how workplace dignity and indignity are experienced by employees with middle- and upper-level jobs and how their experiences differ from those with lower-level jobs. We address these absences by interviewing employees from a diversity of lower-, middle-, and upper-level jobs about their experiences of indignity at work. We outline common dignity (...) threats, along with typical emotional responses and recourses employees use at each level. We find lower-level employees experience chronic dignity threats from being disrespected, devalued, demeaned, and dehumanized, to which their most typical response is endurance. Middle-level employees experience periodic dignity threats due to undermining of their work, confidence, and reputation. For them, the typical response is strategizing. Finally, on the rare occasions upper-level employees experience dignity threats, it usually is due to a disregard of their special expertise or denial of special rights, to which they respond by rising above. (shrink)

This study examines the participation strategies of an environmental non-governmental organization (NGO) in community-based conservation (CBC) initiatives in the developing country context of Pakistan. We use local Pakistani concepts and terms to interpret and narrate our study. Drawing on the micro-mobilization literature, our analysis embeds a situated analysis of the_ ‘biradari’_ (kinship) structures that pervade Pakistani social and cultural milieu. We shed light on the importance of various gatekeepers in providing access and ongoing support for CBC initiatives, suggesting NGOs must (...) navigate complex cultural and social structures to manage participation in developing country contexts. Here our findings point to the importance of local knowledge not just in articulating community needs but also in articulating participation strategies. Furthermore, even though ‘elite’ structures have the potential to jeopardize equitable participation and project long-term sustainability, our analysis suggests interacting and gaining ‘_bharosa’_ (trust) of communities’ via these structures is critical to participation. While previous research has called into doubt the efficacy of CBC in advancing conservation, we suggest that frequent and culturally atoned engagement is a must for environmental NGOs working in socially entrenched developing nations. Our research brings to light the complex ethical terrain navigated by environmental NGOs in CBC projects, illuminating the inherent potential for both empowering and subjugating outcomes. (shrink)

Plastic consumption is an important aspect of contemporary living, and studies that systematically examine consumers’ plastic waste recycling intentions from an ethical perspective are scarce. Considering the severity of plastic waste recycling problems globally based on the stimulus-organism-response paradigm, this study analyses how the information publicity influences consumers’ plastic waste recycling intentions from an ethical perspective in an emerging market economy. We investigate this link by focusing on the indirect effect of perceived social pressure and the moderating role of media (...) disposition (i.e., media richness and content trustworthiness). Data from a three-wave field survey of 469 household consumers from China showed that social pressure mediated the positive relationship between information publicity and ethical recycling intentions. Additionally, media richness and content trustworthiness moderate the link between information publicity and consumers’ perceptions of social pressure. These findings provide encouraging evidence for applying the SOR paradigm to explain the ethical recycling intention of consumers. The findings may assist policymakers in motivating consumers to think ethically about plastic waste recycling. (shrink)

While scholarly research on the relationship between female board representation and strategic decision-making has gained momentum, employee policy outcomes have remained relatively understudied. Integrating theory from the ethics of care perspective with research on the glass ceiling and workplace voice, we seek to understand the circumstances under which female directors influence policy changes for firm employees. We argue that firms with increasing female board representation are more likely to enact human capital development policies benefiting firm employees. However, this positive relationship (...) will ultimately diminish as boards accrue an increasing number of female directors. We further predict that the presence of a female leader at the firm (serving in the role of either the CEO or the board chair) will moderate this diminishing effect. Using a sample of S&P 1500 firms, we find support for our hypotheses. The findings from this study provide evidence that while female board representation is positively related to human capital development policies, this effect is nuanced and impacted by the presence of female leadership at the top of organizations. Our paper extends existing research on the nature of female directors’ influence on ethical decisions, emphasizing the impact of these directors on employees. (shrink)

The establishment or nurturing of a supportive organizational climate encompasses various activities rooted in ethical commitments. This study focuses on the outcome of these activities, exploring how team members’ collective interpretation and evaluation of corporate social responsibility (CSR) initiatives’ presence and authenticity impact team empowerment as a driver of team performance. Drawing on the organizational climate literature, while integrating signaling theory and attribution theory, we hypothesize that the impact of CSR climate on team performance through team empowerment hinges on two (...) key factors. First, teams must perceive the presence of CSR initiatives, denoting CSR climate quality. Secondly, there must be a consensus regarding the authenticity of these initiatives, signifying CSR climate strength. Results from a partial least squares—structural equation modeling analysis of multi-informant data obtained from 537 team members within 73 teams of 35 retail organizations in Belgium support most of our hypotheses. The results reveal that both CSR climate quality and strength are important drivers of team empowerment in support of team performance. (shrink)

Research on ethical norms has grown in recent years, but imprecise language has made it unclear when these norms prescribe “what ought to be” and when they merely describe behaviors or perceptions (“what is”). Studies of ethical norms, moreover, tend not to investigate whether participants were influenced by the prescriptive aspect of the norm; the studies primarily demonstrate, rather, that people will mimic the behaviors or perceptions of others, which provides evidence for the already well-substantiated social proof theory. In this (...) review article, we delineate three streams of norms research in business ethics: behavioral, perceptual, and prescriptive. We argue that by properly categorizing norms, and designing studies to investigate when prescriptions, more than mere mimicry, improve ethical outcomes in organizations, researchers can enhance managers’ efforts to promote ethical outcomes in organizations. (shrink)

The business case constitutes an important instrumental motive for corporate social responsibility (CSR), but its relationship with other moral and relational motives remains controversial. In this article, we examine the articulation of motives for CSR among different stakeholders in Germany historically. On the basis of reports of German business associations, state agencies, unions, and nongovernmental organizations from 1970 to 2014, we show how the business case came to be a dominant motive for CSR by acting as a coalition magnet: the (...) vocabulary was used strategically by key policy entrepreneurs, while being ambiguous for flexible interpretations by different stakeholders, and thereby growing in attractiveness. As a resulting discourse coalition emerged among business, state, and civil society actors, the moral and relational motives for CSR became increasingly marginalized. The article offers a new approach to studying motives and contributes to understanding the complementary or competing nature of different motives for CSR. (shrink)

Why do organizations conduct job interviews? The traditional view of interviewing holds that interviews are conducted, despite their steep costs, to predict a candidate’s future performance and fit. This view faces a twofold threat: the behavioral and algorithmic threats. Specifically, an overwhelming body of behavioral research suggests that we are bad at predicting performance and fit; furthermore, algorithms are already better than us at making these predictions in various domains. If the traditional view captures the whole story, then interviews seem (...) to be a costly, archaic human resources procedure sustained by managerial overconfidence. However, building on T. M. Scanlon’s work, we offer the value of choice theory of interviewing and argue that interviews can be vindicated once we recognize that they generate commonly overlooked kinds of noninstrumental value. On our view, interviews should thus not be entirely replaced by algorithms, however sophisticated algorithms ultimately become at predicting performance and fit. (shrink)

When do companies deserve moral credit for doing what is right? This question concerns the positive side of corporate moral responsibility, the negative side of which is the more commonly discussed issue of when companies are blameworthy for doing what is wrong. I offer a broadly functionalist account of how companies can act from morally creditworthy motives, which defuses the following Strawsonian challenge to the claim that they can: morally creditworthy motivation involves being guided by attitudes of “goodwill” for others, (...) and these attitudes involve affect and/or phenomenal consciousness, which corporate agents cannot maintain. In response, I show that what matters about being guided by attitudes of goodwill is being directly concerned for others in one’s practical deliberation. Companies can achieve this direct concern through their decision-making procedures without affect or phenomenal consciousness. I also explore how a company’s moral creditworthiness, or lack thereof, should shape stakeholders’ relationship with it. (shrink)

We consider the problem of moral disjunction in professional and business activities from a virtue-ethical perspective. Moral disjunction arises when the behavioral demands of a role conflict with personal morality; it is an important problem because most people in modern societies occupy several complex roles that can cause this clash to occur. We argue that moral disjunction, and the psychological mechanisms that people use to cope with it, are problematic because they make it hard to pursue virtue and to live (...) with integrity. We present role coadunation as a process with epistemic and behavioral aspects that people can use to resolve moral disjunction with integrity. When role coadunation is successful, it enables people to live virtuous lives of appropriate narrative disunity and to honor their identity-conferring commitments. We show how role coadunation can be facilitated by interpretive communities and discuss the emergence and ideal features of those communities. (shrink)

Contemporary business trends in Africa portray a spate of paradoxes in her socio-economic development. For instance, there is a rapid increase of international interventions and establishment of multinational corporations as a result of globalization; yet not much of this has been domesticated. Industrial and infrastructural developments are sprawled around us; yet unemployment is on the increase. While financial institutions and government agencies take capricious interests and levies in businesses; the human community and environment are left out in tatters. The media (...) advertises business via any means possible, ignoring questions about moral values of individual persons in the society as well as companies that drive the economy. These happenings, no doubt, raise genuine cause for concern as it threatens African indigenous morality. This is a pointer to the fact that there is something lacking. That desideratum is a unifying business ethic. This paper is a research that attempts to fill that ethical gap. It is considered that the philosophical concept of Ubuntu – an African traditional philosophy of social existence is essential. It supports and encourages integral human development, and as such can serve as an ethical ideal in an ever-dynamic business operation in Africa. (shrink)

Research on corporate sustainability has started to acknowledge the role of temporality in creating more sustainable organizations. Yet, these advances tend to treat firms as monolithic and we have little understanding of how different temporal patterns throughout an organization shape perceptions of and actions toward sustainability. Building on studies highlighting how the temporal structures of work shape employee engagement with different organizational processes and issues, we seek to answer: How does the temporality of work practices structure perceptions of corporate sustainability (...) throughout the firm? Using data from an ethnography of a small European sustainable bank, we provide an account of the variety of ways in which employees in different departments perceive the bank and how they engage with sustainability. We then go on to show how the temporal structures of work practices within different departments help explain some divergence in perceptions of sustainability. Our study highlights the variegation of temporal structures in organizational processes of meaning-making and its role for a better understanding of the efforts to make corporations more sustainable. (shrink)

This article reports the findings of a field study conducted on the purchasing intentions of ethical consumers in India. We explored how the involvement of ethical consumers with social networking sites (SNSs such as Facebook, Twitter, Instagram, Snapchat, LinkedIn, and others) affects their intentions to buy ethical products. Applying an extended theoretical lens of theory of planned behavior and social capital, we present an analysis of a rich qualitative data. We identify and describe 7 dimensions, representing the 19 factors and (...) manifesting the informational, relational, and valuation usage of SNSs that explain their impact on the purchase intention of ethical consumers in India. We conclude by highlighting the decision-making role played by the ethical knowledge and price sensitivity of ethical consumers, reflecting the peculiarities and dynamics of ethical consumption in India. (shrink)

Research suggests that the experience of meaningless work is prevalent in various occupations, and that it is destructive for organizations and individuals, making this an issue of major ethical importance. In this paper, we present the results of a qualitative study based on interviews with Canadian public servants who self-identified as experiencing meaninglessness at work. Our main goal is to better understand participants' responses to the experience of meaningless work and the broader implications their experiences had on the rest of (...) their lives. We surface and explore the harms inflicted on participants through their experiences with meaningless work and suggest that these harms may have been made worse by structural features of our study's public-sector setting. We contribute to organization studies literature by showing the intersection of meaningless work with three related concepts: bullshit jobs, empty labour, and functional stupidity and argue that our empirical findings complement and complicate these frameworks by presenting the complex but hidden emotional experiences that can accompany outwardly observable workplace behaviours. (shrink)

This study conducts a moral analysis of leverage buyouts (LBOs) and relies on the holistic framework of the Triple Font Theory. It shows that the claims made by standard agency theory have not been successful both for the purchased firms and for the investors. In addition, the reductionism of the theories justifying LBOs may have favored some of the excesses observed in practice and contributed toward lessening the moral responsibility of market participants. The study suggests some possible reforms and explains (...) what improvements virtue ethics and Catholic Social Teaching can bring. It formulates a set of recommendations that can be implemented by the regulators or market participants. (shrink)

This paper draws on MacIntyre’s ethical thought to illuminate a hitherto underexplored religious context for business ethics, that of the Amish. It draws on an empirical study of Amish settlements in Holmes County, Ohio, and aims to deepen our understanding of Amish business ethics by bringing it into contact with an ethical theory that has had a signifcant impact within business ethics, that of Alasdair MacIntyre. It also aims to extend MacIntyrean thought by drawing on his neglected critique of modernity (...) in the context of business ethics. The Amish context allows us to appreciate the relationship between MacIntyre’s critique of modernity, his conception of practices and communities, and his distinctive approach to the virtues. It also helps us to better understand how the ethical life is possible within our emotivist culture. (shrink)

The growing uses of algorithm-based decision-making in human resources management have drawn considerable attention from different stakeholders. While prior literature mainly focused on stakeholders directly related to HR decisions (e.g., employees), this paper pertained to a third-party observer perspective and investigated how consumers would respond to companies’ adoption of algorithm-based HR decision-making. Through five experimental studies, we showed that the adoption of algorithm-based (vs. human-based) HR decision-making could induce consumers’ unfavorable ethicality inferences of the company (study 1); because implementing a (...) calculative and data-driven approach (i.e. algorithm-based) to make employee-related decisions violates the deontological principles of respectful employee treatment (study 2). However, this effect was attenuated when consumers had high (vs. low) power distance beliefs (study 3); the algorithm served as assistance (vs. replacement) for human decisions (study 4); or the adoption was framed as employee-oriented (vs. company-oriented) motivated (study 5). Our findings suggested that consumers are aversive to algorithm-based HR decision-making because it is deontologically problematic regardless of its decision quality (i.e. accuracy). This paper contributes to the extant understanding of stakeholders’ responses to algorithm-based HR decision-making and consumers’ attitudes toward algorithm users. (shrink)

Abundant research exists on the restructuring operations of large, publicly listed firms. However, little is known about the antecedents of layoffs in small and medium-sized enterprises (SMEs). Building on the stakeholder salience theory and arguments on social proximity, this study posits that SMEs are less likely to dismiss employees than large firms. We argue that the existence of strong interpersonal ties between employees and managers makes it hard for SME owners and managers to dismiss employees. Empirically analyzing a large sample (...) of European Union firms, the results confirm that the likelihood of layoffs is lower in SMEs than in large firms, even when performance declines. (shrink)

Integrating stakeholder agency theory with the instrumental corporate social responsibility (CSR) literature, this study explores how award-winning CEOs consider personal interests and balance competing stakeholder demands when they decide between external and internal CSR, or CSR focus. Using a difference-in-differences research design, we find that after winning a prestigious media award, CEOs engage in more external CSR, which is more visible to the public, and less internal CSR, which is less likely to attract public attention. We find that such an (...) influence on CSR focus is more salient for award-winning CEOs with lower stock ownership (i.e. a stronger self-serving motivation) than for CEOs with higher stock ownership. Furthermore, we explore the role of stakeholder salience in modifying award-winning CEOs’ decisions about CSR focus. When external stakeholder salience is higher (e.g. higher media coverage), award-winning CEOs' manipulation of CSR focus by increasing external CSR and decreasing internal CSR is more salient. However, such effects can be dampened when internal stakeholder salience is higher (e.g. higher human capital intensity). Our study contributes to the instrumental CSR literature by demonstrating the underlying processes and boundary conditions of how awards affect CEOs' balance of stakeholder salience. (shrink)

It is widely recognized that workplace sexual harassment has significant negative psychological and personal consequences, and employees facing harassment suffer reductions in productivity. Our contribution is to propose a novel measure of workplace sexual harassment risk and provide a fuller estimation of the firm value impact of sexual harassment. In contrast to recent studies that focus on short-run market reactions to media announcements of harassment scandals, we use employee job reviews to identify low-profile harassment incidents that better reflect the pervasive, (...) toxic environment pertaining to sexual harassment than do newsworthy scandals, and we measure the longer-term effect on firm value starting from the date when harassment risk affects employee morale. We identify firm harassment risk by analyzing employee job reviews and estimate the sexual harassment score (SH) through textual analysis of online job reviews. Our sample of high-SH firms, or firms with unusually high-SH scores, exhibits significant reductions in future stock performance and profitability. For example, firms with a top 2% SH score earn a value-weighted risk-adjusted stock return of − 17% in the 1-year period after high-SH classification, and this damage is concentrated in firms with higher investor attention. Furthermore, high-SH firms experience a decline in operating profitability and an increase in labor costs during a 5-year period around high-SH classification. Our evidence suggests that sexual harassment can cause greater damages to firm value than previously documented. (shrink)

Prior research on workplace ostracism and helping behavior has yielded mixed results. This study integrates social learning theory and social role theory by constructing a multilevel model to examine the relationship between supervisor ostracism and helping behavior that focuses on the mediating role of coworker ostracism and the moderating role of subordinate gender. Using a two-wave, multisource approach, data were collected from 382 employees and 43 immediate team leaders in four business corporations in Guangxi Province, China. The results of path (...) analysis reveal that supervisor ostracism has a cross-level effect on helping behavior through the mediating role of coworker ostracism. Furthermore, the positive direct effect of supervisor ostracism on coworker ostracism and the negative cross-level indirect effect of supervisor ostracism on helping behavior via coworker ostracism was stronger for men than women. These findings expand and deepen our understanding of the ostracism field. (shrink)