Business Ethics

We examine how social diversity and inclusiveness on corporate boards affect corporate performance and monitoring in Sri Lanka, a country subject to decades of polarization, civil war, and even genocide. Barely more than a decade after the civil war, we find that board social diversity on the basis of ethnicity, religion, language, gender, and nationality of the board members is positively related to corporate performance, both in terms of stock market performance and accounting returns, and to corporate financial stability. The (...) main positive effects of social diversity derive from ethno-linguistic inclusiveness. The results are confirmed by an instrumental variable approach that addresses endogeneity issues. We find no evidence that inter-personal and moral conflicts or communication problems among board members negatively affect firm performance. (shrink)

Ecological psychology regards culture as a response to the demands of the environment. As rice farming in history has significantly influenced the formation of human cultural consciousness, we investigate how the rice culture of a chairperson’s birthplace affects a firm’s CSR activities. Our main finding reveals a positive and significant correlation between a chairperson’s rice culture and CSR activities. Further analysis demonstrates that this positive relationship is particularly pronounced in private firms and family firms. We also examine the incremental effect (...) of individual management heterogeneity and find that the positive relationship is strengthened when the chairperson has a shorter tenure or higher level of education. Additionally, more developed regions help enhance this positive relationship. To address the endogeneity concerns, we adopt an instrumental variable approach and exogenous event analysis based on chairperson turnover. The results are robust to a set of additional tests. Overall, our findings document the benefits of a chairperson’s rice culture in developing countries like China and reveal how this benefit is priced into CSR performance. (shrink)

Drawing on tournament theory, we argue that when environmental goals are incorporated into the cadre evaluation system, compared to officials who are close to retirement (i.e., retiring officials), non-retiring officials may exert more effort to foster risky green innovation. Based on a sample of publicly traded firms from heavily polluting industries in China between 2008 and 2016, we hypothesize and find that confronted with severe environmental pollution, firms in provinces with non-retiring governors have higher green innovation performance than those in (...) provinces with retiring governors. Moreover, we find that this effect is stronger for firms in provinces whose governors have higher promotion anticipation, for local state-owned enterprises (SOEs), and for politically connected firms. Our study identifies the political incentives of government officials as an important antecedent of corporate green innovation and highlights the value of establishing a “green” cadre evaluation system to promote sustainable development. (shrink)

Industrial emissions of greenhouse gases are significant contributors to climate change, which poses a grave threat to social and economic systems. Our understanding of what might drive firms to reduce their emissions of these gases, however, is incomplete, and it is not clear that the knowledge gained from other environmental issues will readily apply to these emissions. We argue and find that indicators of environmental injustice previously shown to relate to toxic pollutants, for example, are poor predictors of greenhouse gas (...) emissions. Instead, we show that the degree of belief in and concern about climate change in a local community is a significant predictor of the facility’s rate of emission improvements. Furthermore, we find that beliefs at both the facility and headquarter communities influence emission reduction, and that those effects are substitutes for each other. (shrink)

The salience of owner-manager values to small and medium sized enterprise (SME) engagement with ethics and social responsibility is well documented. Despite this, understanding of how these values are transposed into and become embedded within the culture, norms and practices of SMEs remains limited. Through drawing on a sample of SMEs in the South West of England, this paper identifies the mechanisms which owner-managers seek to use to embed their values within their organisations—rational values sharing, affective values sharing and building (...) values-aligned relationships—while distinguishing a number of barriers they meet in the process. It further builds on previous research and explicates such embedding processes by means of discerning and providing rich descriptions of eight key owner-manager values. The work of Alain Locke on values is drawn on theoretically to frame the embedding of such values as a reflexive, ongoing process, while the utility of his work—largely absent from the field of business ethics so far—is highlighted. (shrink)

The effectiveness of multi-stakeholder initiatives (MSIs) in tackling grand social and environmental challenges depends on productive dialogue among diverse parties. Facilitating such dialogue in turn entails building common ground in form of joint knowledge, beliefs, and suppositions. To explore how such common ground can be built, we study the role of different facilitators and their strategies for bridging the perspectives of competing stakeholder groups in two contrasting MSIs. The German Partnership for Sustainable Textiles was launched in an initially hostile communicative (...) environment, whereas the Fossil Free Sweden Initiative proceeded in a fertile communicative environment. We trace how the facilitators in these initiatives achieved common ground through three bridging strategies—communicative integration, temporal calibration, and process alignment—adapted to the communicative environments of these MSIs. In hostile communicative environments, facilitators achieve common ground by steering diverging stakeholder groups towards ‘reconciling’ their different language registers, knowledge bases, and meaning systems to ‘meet in the middle’ on points of agreement and shared interests. In fertile communicative environments characterised by greater mutual trust, facilitators can steer interactants to ‘strategically appropriate’ to the language, knowledge, and meaning system of a particular stakeholder group to win this group’s support. Our analysis contributes to a better understanding of how productive multi-stakeholder dialogue can be facilitated. (shrink)

The extent and mechanisms through which religion intertwines with decision-making processes in family firms remain inadequately understood. Family firm owners, driven by their commitment to ethical business practices and the safeguarding of their socioemotional wealth, actively seek cues to inform their decision-making processes. This research demonstrates that, among these guiding cues, top-level executives’ perceived religiosity emerges as a relevant factor. Building upon the socioemotional wealth perspective and conducting a longitudinal analysis based on listed family firms between 2009 and 2018, our (...) findings reveal a positive association between family voting rights and the presence of board members perceived to be religious. Furthermore, this relationship is less pronounced if family firms operate in industries with high research and development intensity. Our study confirms that boards with high shares of religiously perceived directors are positively associated with the appointment of chief executive officers perceived to be religious during succession events. We thereby present a unique perspective that acknowledges perceived religiosity as a micro-level constituent shaping board membership and successor selection. This investigation captures the intricate interplay between religion and family firms under a socioemotional wealth umbrella, offering important insights to the family business ethics discourse. Our research also offers practical implications for board and leadership diversity management in family firms. (shrink)

The literature on organizational ethics has paved the way for a situated and intersubjective understanding of ethics through caring practices. In this article, we try to extend this perspective by looking beyond the interactions of caregivers among themselves or with care seekers to reveal ethics as the ongoing collective accomplishment of a variety of actors. We do so by mobilizing Strauss’s theoretical perspective of articulation work in the context of healthcare. Based on an ethnography, we show how actors of care (...) (e.g., nurses, caregivers, or doctors) operate within care arrangements that need to be frequently rearticulated to face ethical threats and protect their patients’ well-being. We distinguish three types of rearticulation corresponding to different degrees of rearticulation, individual actor stance, and specific ways of working things out. We discuss their implications for the maintenance of organizational ethics. (shrink)

We examine three business-related initiatives designed to achieve peace positive impacts in the Cape Town township of Langa. Each was seemingly straightforward in its purpose, logic, and implementation. However, their positive intent was frustrated and their impacts ultimately harmful to their articulated goals. Understanding why this is so can be difficult in violent, turbulent, and information-poor environments such as Langa, confounding progress even by actors with ethical intentions. To aid in sense making and to provide insight for more positive future (...) action, we develop from 125 interviews conducted for this study causal loop models for these initiatives within their conflict subsystems. These explain the perverse impacts of these initiatives by illuminating their (lack of) salience to key conflict factors, their (in)sufficiency to effect positive change in light of competing systems dynamics, and their (in)attentiveness to interdependencies with the intentions and actions of others. We thus contribute to understanding of the factors required to achieve positive social outcomes in more extreme contexts. More generally, we demonstrate the value of systems analysis both for scholarship related to business and peace and for reducing blind spots that can inhibit sound planning for ethical business action amidst complexity. (shrink)

Extant literature suggests that firms may gain legitimacy through imitation. But little known is about whom foreign multinational enterprises (MNEs) will imitate, given that they have multiple social referents: home-country peers and host-country industry competitors. Drawing upon category theory, we develop a dynamic imitation model and explicate how MNEs’ categorization process is affected by social activism, which causes the shift from self-categorization to categorical imperative. We investigate this model in the context of MNE philanthropy and propose that the social movement (...) may delegitimize MNEs’ original self-category and change their imitation target. Using a hand-collected dataset of MNEs’ philanthropic donation for the 2008 Sichuan Earthquake in China, we find that MNEs imitate their home-country peers first but shift to host-country industry competitors after an online social movement. This is because the online social movement delegitimizes MNEs as a category and suggests host-country industry peers as the new model for comparison. Further, we find that liability of foreignness impedes whereas firm reputation facilitates an MNE’s adaptation after the online social movement. Our paper contributes to the literatures on MNEs’ imitation behavior and CSR in emerging market. We also contribute to category theory by integrating self-categorization and categorical imperative and highlighting the role of social movements. (shrink)

Many previous studies have documented the detrimental effects of social loafing on others (interpersonal impacts) at the between-person level. However, social loafing may carry underappreciated intrapersonal functional effects at the within-person level. Our research develops a novel theoretical framework to investigate when and how engaging in social loafing enhances one’s job performance. Drawing on the effort-recovery model and moral cleansing theory, we propose that social loafing may improve subsequent job performance by enhancing recovery and guilt. Specifically, we argue that among (...) employees who experience higher job demands or have higher moral identity, social loafing in the morning enhances their job performance in the afternoon by facilitating recovery or guilt in the morning. Two-wave daily data collected across ten consecutive workdays using the experience sampling method (ESM) supports this model. We discuss how this research identifies a functional basis for social loafing and provides implications for research and practice. (shrink)

This paper examines the effect of financial shared service centers (FSSCs) on corporate misconduct. Using a sample of Chinese public companies with hand-collected FSSC data, we find that the adoption of FSSCs is negatively associated with the likelihood and frequency of corporate misconduct. The results hold to a battery of robustness tests. Moreover, we show that the negative association between FSSCs and corporate misconduct is more pronounced in firms that have no management equity ownership, disclose internal control weaknesses, and have (...) more subsidiaries. Additional analyses indicate that FSSCs can help mitigate both disclosure-related and nondisclosure-related misconduct. (shrink)

This commentary aims to discuss the article “Ordo-responsibility in the Sharing Economy: A Social Contracts Perspective” from a sympathetic viewpoint toward its implementation of a constitutional contractarian approach to business ethics and due consideration of digital platforms as institutions resulting from a social contract. Nevertheless, the commentary also wants to criticize the article’s interpretation of constitutional contractarian theory and institutional reconstruction of the phenomenon, and thus even the governance structure it is proposed for sharing platforms. The commentary presents another understanding (...) of constitutional contractarianism, referring to both the ex ante agreement and the ex post compliance problem. Moreover, it reframes the history of the evolutionary process of institutions’ selection within the domain of the sharing economy consistently with the idea that the Internet should be framed as a common pool resource. In this way, the commentary suggests an alternative governance structure for sharing platforms, that is, platform cooperatives. (shrink)

In this article, I present a sociological approach to the problem of meaningful work that dwells on its broad social and cultural sources, as opposed to the focus on subjective and organizational factors currently prevailing in the field. Specifically, I consider two sociological perspectives, those of community and autonomy, as important conceptual tools for understanding the ambivalent character of modern culture in providing individuals with a sense of meaningfulness of their activities. I also review some of the existing research on (...) meaningful work and interpret it through this conceptual distinction, both to show the latter’s relevance for the field and to identify the gaps it might help fill. As a result, based on the sociological perspectives, I propose a general conceptual model and discuss five directions to further advance the theoretical comprehension of meaningful work, and I suggest some implications of these perspectives for normative business ethics. (shrink)

The legitimacy of multi-stakeholder initiatives (MSIs) as institutions for social and environmental governance in the global economy has received much scholarly attention over the past years. To date, however, research has yet to focus on assessing the legitimacy of MSIs in their interactions with other actors within larger systems of deliberation. Drawing on the deliberative systems perspective developed within deliberative democracy theory, we theorise a normative framework to evaluate the roles of MSIs within the broader systems of governance they co-construct (...) through their interactions with other initiatives, governments, non-governmental organisations, and other external actors. As we demonstrate in our evaluation of the illustrative case of the Bangladesh Accord on Fire and Building Safety as a MSI in the context of the Bangladeshi garment industry, this framework can help researchers assess whether a MSI ultimately serves to enhance or undermine the deliberative legitimacy of the overall system of which it forms a part. (shrink)

Much business ethics and corporate social responsibility literature suggests, implicitly or explicitly, that firms ought to engage in activities that can be characterized as philanthropy, namely, expending resources beyond what is required by law and market norms to promote others’ welfare at the expense of firm profits. However, this literature has struggled to provide a normative framework for evaluating corporate philanthropy, although scholars have noted that such expenditures can potentially remedy market failures and provide public goods more efficiently. I articulate (...) two specific rationales that can justify corporate philanthropy based on considerations of welfare economics: 1) firms making strategic but high-risk investments in activities that are likely to generate positive externalities even if they prove unprofitable and 2) firms possessing a strong comparative advantage in their ability to address a social problem at lower social cost. Moreover, these rationales can be evaluated by a concept I develop called the philanthropy multiplier, indicating the ratio of net positive externalities to net costs. I suggest that firms consider publicizing their philanthropy multipliers, and I discuss theoretical and practical implications. (shrink)

Research has shown that negotiators sometimes misrepresent their emotions, and communicate a different emotion to opponents than they actually experience. Less is known about how people evaluate such negotiation tactics. Building on person perception literature, we investigated in three preregistered studies (N = 853) how participants evaluate negotiators who deceptively (vs. genuinely) communicate anger or happiness, on the dimensions of morality, sociability, and competence. Study 1 employed a buyer/seller setting, Studies 2 and 3 employed an Ultimatum Bargaining Game (UBG). In (...) all studies, participants learned a negotiator’s (the target’s) experienced and communicated emotions (anger or happiness), before evaluating the target. Across studies, targets were evaluated lower on morality if they deceptively (vs. genuinely) communicated anger or happiness. Notably, negotiators deceptively communicating anger were evaluated lower on morality and sociability but higher on competence than those deceptively communicating happiness. Studies 2 and 3 investigated behavioral consequences by examining whether in a future negotiation participants chose the target to be their opponent or representative. Results showed that for opponents, participants preferred targets who genuinely communicated happiness (vs. anger), which was associated with their perceived morality or sociability. For representatives, participants not only preferred targets who had genuinely communicated happiness (vs. anger), but also targets who had deceptively communicated anger (vs. happiness), which was associated with their perceived competence. These findings show that when evaluating deceptive (vs. genuine) communication strategies, people distinguish between morality, sociability, and competence. The importance they attach to these dimensions is also contingent on the behavioral decisions they face. (shrink)

Bounded rationality presents a challenge to the notion that virtue is a capacity for knowledge, suggesting that judgments concerning the salience of specific facts are, in some cases, an indication of one’s incapacity to appreciate the full range of normatively salient facts. This problem can be mitigated by linking an account of the virtues with a theory of organizations. From this perspective, virtue is inherently shaped by the norms structuring one’s role(s) and is linked to the complementary set of roles, (...) that is, the organization, in which one is participating through the virtues of loyalty and obedience. Within this perspective, human cognitive limitations are made to be strengths, allowing one to focus on a narrow set of reasons for action linked with one’s role to better achieve salient aims as a member of the organization than one could as an isolated individual. (shrink)

Evidence-based Management (EBMgt) and Evidence-Based Management + (EBMgt +) are two approaches to management according to which managerial decisions should be based on the best available evidence, as this increases the likelihood of their effectiveness. In these approaches, four types of evidence are considered: evidence from the scientific literature, from practitioners, from the organisation and from stakeholders. In EBMgt +, evidence is characterised as a three-place relation between information, a claim and a method. In many circumstances, probability sampling methods (PSMs) (...) are the best methods to gather the abovementioned types of evidence. We present a case study concerning harassment in the workplace to illustrate a circumstance in which fact-finding methods, rather than PSMs, are the best methods to gather evidence. We argue that information thus gathered should count as evidence in the spirit of EBMgt +. However, while part of the evidence needed in the case study comes from the stakeholders, it does not fit the characterisations of ‘evidence from stakeholders’ considered in EBMgt and EBMgt +. Therefore, we disentangle sources and types of evidence which, in turn, enables us to characterise a new type of evidence – testimonial evidence – that should be included in the theory of evidence-based management. Differentiating between sources and types has the potential to bring theory and practice closer together, whereas including testimonial evidence has the potential to make the theory of evidence-based management applicable in a wider range of circumstances, such as trade secret theft and conflicts of interest. (shrink)

We contribute to the literature on intentions to report wrongdoing by examining whether Chinese internal auditors make consistent judgments when an ethical dilemma is presented in English and when the same dilemma is presented in Chinese. We invoke cultural frame switching theory, and our findings, which are based on a randomized experiment using between-subjects and within-subject mixed design, support the hypothesis that Chinese internal auditors are more likely to report wrongdoing when the ethical dilemma is presented in English than when (...) it is presented in Chinese. Our results, which demonstrate that internal auditors make inconsistent ethical judgments in English and Chinese, point to language-triggered cognitive bias resulting from cultural mindsets. We suggest practical interventions and language strategies to improve audit quality. (shrink)

Scholars have suggested that leaders’ ethical failures at the beginning of the twenty-first century have raised awareness about the importance of ethical leadership (EL). Yet, there has been no systematic effort to evaluate whether this awareness indeed led to changes in EL or how followers react to this leadership style over time. To address this gap, we examine the evolution in EL means, variability, and its associations with follower outcomes between 2004 and 2019. Our cross-temporal meta-analysis included 359 independent samples (...) from 314 studies published between 2005 and 2020 and focused on followers’ ratings of their leaders using the Ethical Leadership Scale (ELS; Brown et al., in Organizational Behavior and Human Decision Processes, 97(2), 117–134, 2005). Using cubic spline meta-regressions, our results indicated no global changes in EL mean levels and variability across the 15-year period. Nevertheless, country-level comparisons revealed different EL-trends in China (i.e. decrease) versus the United States (i.e. stable), and further moderation analyses highlighted the role of cultural value dimensions and national corruption rates. Finally, we also found that the relationship between EL and desirable follower outcomes (e.g. organizational citizenship behavior) became gradually stronger over time on a global level. These results provide a solid empirical basis to evaluate cross-temporal trends in EL and its (changing) impact on follower outcomes across the globe. (shrink)

Gender role congruity theory emphasizes the ubiquity of male-typed leadership schemas as barriers to female leaders’ career development (i.e., descriptive stereotypes); however, the expectation of female leaders’ fulfilling their gender role (i.e., prescriptive stereotypes) has received limited attention. Extending this line of research, we propose the concept of female-typed leadership schemas and suggest that the (mis)match between female CEOs’ gender-stereotyped behavioral differences (agentic vs. communal) and female-typed leadership stereotypes helps explain the prescriptive gender stereotypes that women face in the CEO (...) post-succession stage. Using data from 251 female CEO succession events at publicly listed firms on the Shanghai and Shenzhen Stock Exchanges from 2007 to 2017 in China, we found that the risk-taking behaviors of new female CEOs may lead to a perceived mismatch between prescriptive gender-stereotyped expectations and the actual behaviors of female CEOs as top leaders, increasing their likelihood of being dismissed during the post-succession process. Moreover, gender inequality beliefs in local contexts and adverse selection at the time of succession amplify the gender-stereotyped attribution. This study contributes to the female leadership and ethics literature by developing a comprehensive theoretical framework to test how female-typed leadership stereotypes hinder the career development of women in top executive positions. (shrink)

This article explores the influence of sadness in ethical decision-making and behavior. In three laboratory studies, we found that an incidental state of sadness reduced individuals’ propensity to engage in morally questionable behavior, including both unethical and selfish acts (Studies 1 to 3). We found this effect to be mediated by the role of sadness in prompting people to pay more attention to the negative consequences of morally questionable acts and perceive those consequences as more problematic (Studies 2 and 3). (...) This effect was consistent using different decision-making contexts and held when rewards to be gained from such behavior were relatively high. Several implications of these findings for business ethics and organizations are discussed. (shrink)

Workplace ostracism is a prevalent and painful experience. The majority of studies focus on negative outcomes of ostracism, with less work examining employees’ potential adaptive responses to it. Further, scholars have suggested that such responses depend on employee attributions, yet little research has taken an attributional perspective on workplace ostracism. Drawing on sociometer theory and attribution theory we develop and test a model that investigates why and under what circumstances ostracized employees engage in adaptive responses to ostracism. Specifically, we argue (...) that ostracized employees feel greater levels of shame and, in turn, are motivated to engage in greater ingratiation behavior toward their ostracizers. However, we predict that perceptions of ostracizers’ competence and warmth shape different attributional processes, which influence the degree to which the ostracized employee experience shame and, in turn, is motivated to engage in ingratiation behavior. Results of a three-wave, time-lagged survey support our prediction that shame mediates the relationship between coworker ostracism and ingratiation behavior. Moreover, results support our three-way interaction, such that coworkers who report higher levels of ostracism and who perceive their coworkers as more (vs. less) competent and more (vs. less) warm report higher shame, and, in turn, ingratiation behavior. Theoretical and practical implications, as well as avenues for future research, are discussed. (shrink)

In Western societies and organizations, episodes of discrimination based on individual demographic and social characteristics still occur. Relevant questions, such as why ethnic discrimination is perpetuated and how people confront it in the workplace, remain open. In this study, we adopt a social-symbolic work perspective to explore how individuals confront workplace ethnic discrimination by both upholding and challenging it. In doing so, we incorporate the perspectives of those directly experiencing, observing and neglecting discrimination. Specifically, we focus on the Italian branches (...) of North American professional service firms (PSFs), performing a qualitative investigation of the worlds of concern among professionals regarding the topic of ethnic discrimination to explore how different backgrounds motivate social-symbolic work. We find that different forms of work are enacted to support the status quo, shape the boundaries of existing organizational practices, and balance professional identities, emotions, and careers to silence episodes of ethnic discrimination. We also highlight cases of ‘soft,’ yet increasing, work that contests the status quo. Finally, we discuss our results in light of neo-institutional and critical management research to ultimately inspire our focal firms and societies to find alternatives to the rhetoric in the established approaches to inequality. (shrink)

Moral injury has primarily been studied from a clinical perspective to assess, diagnose and treat the outcomes of morally injurious experiences in healthcare and military settings. Little is known about the lived experiences of those who have had their moral values transgressed in business settings. Public scandals such as Enron suggest that moral injury may also occur in for-profit business settings. In this qualitative study, we examine the lived experiences of 16 employees in for-profit business organisations who identified as having (...) suffered moral injury. Using semi-structured narrative interviews, our findings offer insights into the values that employees feel are transgressed and the pathways between morally injurious experiences and the long-term outcomes. Based on our findings, we propose a conceptual pathway to moral injury, which suggests that experiencing moral transgressions has a profound impact on employees as they feel a threat to their “good-me” identity, however, employees employ various coping strategies to minimise the impact during the event. Employees exited the organisation and often changed career paths to protect themselves from further injury and to make up for moral failure. This study advances our understanding of the experience of moral injury in business settings and the pathway explaining how and why people react differently to moral transgressions. (shrink)

This paper discusses The Merchant of Venice from an economic and Biblical perspective in an attempt to corroborate the view that the work epitomizes the spirit of the early capitalism of Shakespeare’s London. The main goal of the paper is to enrich mainstream interpretation by showing different, and more complex faces of the main characters of the play. Starting with the debate on usury in the late Middle Ages, the paper argues that the main ethical message conveyed by The Merchant (...) of Venice is a criticism of the hypocrisy of the spirit of emerging capitalism at the time. Furthermore, the paper claims that in order to understand the core of this masterpiece, its Biblical references must be explored and reconsidered, as accurate interpretation of their context may shed new light on the play and on Shakespeare’s general view of proto-capitalism. (shrink)

Ethical conflicts (ECs), dilemmas auditors face when personal values or professional obligations clash with their actions, pose significant challenges to the auditing profession, potentially influencing turnover intention (TI). This study addresses a knowledge gap in the related research by focusing on two critical EC triggers: workload (WL) and perceived auditor ethical failure (PAEF: ethical sensitivity), which refers to auditors’ perceptions of ethical violations within their profession. Grounded in role theory and ethical climate theory, our study investigates the impact of WL (...) and PAEF on ECs and explores how these conflicts mediate the relationship between PAEF/WL and TI. Additionally, we examine the moderating role of organisational ethical climate (EtC) in these relationships. Using a survey of auditors and employing partial least squares structural equation modelling (PLS-SEM), our results reveal that both WL and PAEF increase ECs, thus escalating TI. The findings suggest that a firm’s perceived EtC can negatively moderate the relationship between PAEF and ECs. The study underlines the importance of fostering a strong EtC to manage ECs effectively and provides valuable implications for professionals, regulators, and academics seeking to improve ethical practices within auditing firms and to reduce auditor turnover. (shrink)

This study investigates why and when employees’ observations of supervisors’ ostracism of coworkers elicit their own feelings of guilt. In this connection, observers’ silence might function as a mediator, and leader–member exchange quality could moderate the process. The tests of these predictions rely on two studies, undertaken in Pakistan: a temporally separated field study using three-wave data (N = 219) and a scenario-based experiment (N = 118). The combined results indicate that employees feel guilty for remaining silent when they witness (...) supervisor ostracism of other colleagues. The positive relationship between such observations of supervisor ostracism and silence behavior is more pronounced among employees who enjoy high-quality relationships with their supervisor. In addition to establishing key theoretical insights, this article alerts organizations to a critical mechanism (silence to avoid upsetting supervisors) by which employees’ observations of how supervisors ostracize others can escalate into their own sense of guilt. (shrink)

This paper examines the ethical issues of the inclusion of workers with disabilities in the workplace with a cross-fertilization approach between organization studies, the ethics of care, and a movement from the field of architecture and design that is called Universal Design (UD). It explores how organizations can use UD to develop more inclusive workplaces, first by applying UD principles to workspaces and second by showing how UD implies an integrative understanding of inclusion from the workspace to the workplace. Moreover, (...) this paper discusses the ethical challenges and complexities that this design practice faces in regard to its applicability to diverse organizations and industries. Finally, this paper demonstrates that inclusion requires abandoning any notion of a perfect, productive body and, therefore, recognizing our shared vulnerability and fundamental interdependence in the workplace. (shrink)

Organizations have increasingly relied on team-based reward systems to boost productivity and foster collaboration. Drawing on the literature on ethics and justice as well as appraisal theories of emotion, we examine how team-based reward systems can have an insidious side effect: They increase the likelihood that employees remain silent when observing a team member engage in unethical behavior. Across four studies adopting different methods, measures, and samples, we found consistent evidence that people are less likely to report (i.e., speak up (...) or provide anonymous feedback about) a team member’s unethical behavior in team-based than in individual-based reward systems. Furthermore, our research reveals that this effect is primarily driven by a decrease in the experience of moral anger, which subsequently leads to a decreased likelihood of reporting unethical behavior when it benefits the team rather than the individual. We do not find support for perceived indirect benefit or envy as alternative explanations, suggesting that the decision to report a team member’s unethical behavior is not driven by calculative and selfish motives, but by moral motives. Finally, we establish that the effect is contingent on the observer and the perpetrator being members of the same team; it dissipates when the observer and the perpetrator are part of different teams. Our work contributes to research on reward systems and business ethics and provides practical implications for human resource practices. (shrink)

This study examined how protection motivation intention and other cognitive appraisal processes influence the relationship between compliance and value-oriented ethics programs and employees’ unethical behavior. A total of 342 employees from various government and private organizations in Bangladesh participated in the study. The PLS-SEM results revealed that perceived vulnerability, perceived cost, and protection motivation intention have significant relationships with employees’ unethical behavior. However, perceived self-efficacy did not show a significant relationship with unethical behavior. The study also identified that cognitive appraisal (...) processes (perceived vulnerability, self-efficacy, and response cost) mediate the relationship between compliance and value-oriented ethics programs and protection motivation intention. Additionally, protection motivation intention was found to mediate the relationship between cognitive appraisal processes and employees’ unethical behavior. Furthermore, the study revealed that accountants and auditors exhibit stronger protection motivation intention to comply with ethics programs compared to other employees. Based on these findings, the study suggests that both academics and practitioners should emphasize the importance of protection motivation intention as a cognitive process when designing ethics programs aimed at preventing unethical behavior in the workplace. (shrink)

We use payroll data from a Big 4 accounting firm to examine the starting wage differentials for H-1B visa holders. Prior research in other industries has found mixed results, but primarily relies on surveyed salary data. We observe that relative to U.S. citizen new hires—matched on office, position, and time of hire—newly hired accountants with H-1B visas receive starting salaries that are lower by approximately 10%. This finding calls into question the efficacy of regulatory mandates thought to prevent H-1B visa (...) holders from being paid less than U.S. citizens in similar roles. In further tests, we find evidence that the hiring of H-1B visa holders has no or some small positive effect on the wages of peer U.S. citizen new hires (weakly indicative of complementarities or synergies), but no evidence of H-1B hiring driving down the wages for U.S. citizen peer new hires. (shrink)

Gender bias in leadership and decision-making is a well-documented and pervasive topic that continues to garner significant attention in academic research and business literature. In this paper, by exploiting a unique proprietary dataset of 550 mid-corporate loan applications managed by a major European bank, we explore how the use of soft information influences lending decisions of female loan officers as compared to their male counterparts. We find that use of soft information reduces information asymmetry which helps female officers in making (...) diligent lending decisions resulting in increased granted credit with a lower default probability. We also investigate gender affinity within the banking organisation and find that female loan approvers are more likely to be supportive of their subordinate female loan officers by approving more credit to the loan applications handled by female loan officers. Finally, we examine the possible mechanisms that can explain these results, and find that female loan officers are able to better collect and use soft information as they cultivate and maintain deeper firm-bank relationships with their clients due to higher threat of losing or being penalized in their jobs for any possible errors. We also rule out any other possible explanations such as differences in workload, work experience, loan officers’ optimism, managerial ability, and screening capabilities between female and male loan officers. Our findings carry important policy implications, reflected in the optimal allocation of capital in the economy and the reduction of gender-related exclusion, which is vital in creating an equitable society and fostering a more ethical and inclusive workplace. (shrink)

In this research, we advance the behavioral ethics literature by explaining the underlying mechanism and conditions under which employee creativity relates to unethical pro-organizational behavior (UPB). Grounded in the self-interest motivation perspective of UPB and drawing from self-enhancement theory, we propose that employee creativity fosters psychological entitlement, which, in turn, motivates UPB. Furthermore, we propose that symmetrical internal communication (SIC) acts as a key contextual factor that moderates the mediating effect of psychological entitlement in the creativity–UPB relationship. Results from two (...) field studies involving supervisor–employee dyads provide empirical support for our hypothesized model. Overall, our research not only contributes to the literature on UPB antecedents but also offers a novel counterproductive perspective on SIC. We discuss the theoretical and practical implications of our findings and offer interesting directions for future research. (shrink)

This paper employs Axel Honneth’s recognition theory to interpret ‘quiet quitting’ – the practice of limiting work efforts to contracted requirements – as a strategic response by workers facing misrecognition in their work environment. Honneth argues that misrecognition in any one of three social spheres (the family, political society, and the workplace) constitutes disrespect and causes psychological harm. While Honneth contends that experiences of disrespect tend to motivate collective “struggles for recognition,” we suggest that quiet quitters present an alternative response (...) to disrespect, individually seeking recognition in other social spheres rather than engaging in collective action. Further, we draw on Honneth to suggest that the contemporary “entrepreneurial” work ethic – the widespread expectation that workers invest emotionally in their work role – can in practice undermine workplace recognition, contributing to quiet quitters’ compensatory emphasis on recognitive relations outside of work. This recognition-theoretical approach extends current discussions around quiet quitting and yields valuable insights for management theory and practice regarding the critical role of genuine employee recognition in promoting individual well-being and meaningful work experiences. (shrink)

‘Corporate Social Responsibility’ (‘CSR’) has gained popularity in corporate as well as academic debates, especially since the 2008 financial crisis (Okpara & Idowu, 2013). Although CSR as an idea has not failed, concerning gaps remain in the theory and practice of CSR. More particularly, in India, the legislature has adopted a ‘one size fits all’ approach which permits businesses to interpret and implement CSR based on their unique circumstances. This leads to persistent and escalating concerns regarding its implementation and limits. (...) The most basic of such concerns is the fact that CSR conceptually lacks a consistent understanding as scholars all around the world have defined it differently (Votaw & Sethi, 1973), which has an effect of conflating CSR with legal obligations or pre-existing moral obligations of the company. This work, limiting the study to Indian context, argues that the effectiveness of any policy or regulation is a direct result of express intention behind it and Indian law lacks such expression. It specifically argues that the framework in India is based on the misconceived idea of CSR resting on ‘neo-liberal’ principles meaning that a corporation’s primary responsibility is maximization of the profits of the shareholders and hence CSR is perceived merely as an add-on. There needs to be a change in this narrative to a ‘socio-economic’ one which could bring CSR within the core functions of corporations and which largely depends on the Corporate Governance ecosystem so in place. India although claims to have adopted the Stakeholder Model of Corporate Governance, in practice it still aligns with the Shareholder Model. It is only when the former is adopted in practice, can CSR be effectively implemented which can be further facilitated through a clear expression of legislative intent behind the provisions and regulations concerning CSR. In order to substantiate these arguments, this work adopts a doctrinal method of research which undergoes a thematic discourse analysis of the issue and its theoretical underpinnings, and also provides certain recommendations in this respect. (shrink)

This article aims to explore the main topics in business ethics in Indonesia by reviewing manuscripts and conducting focus discussion groups. We adopt Harzing’s PoP application to review 995 manuscripts and VOS Viewer to draw a bibliometric figure, followed by a series of focus discussion groups. This article explores the main topics in business ethics in Indonesia by reviewing manuscripts and conducting focus discussion groups. The results show that the primary business ethics literature in Indonesia focuses on four topics: (1) (...) ethics in the financial market, (2) ethics in education, (3) ethics in the workplace, and (4) Sharia ethics. These key trends of business ethics literature are different from the global literature. The main reason may come from the cultural gap, in which the local cultural diversity provides various terminologies and key recurring concepts. The results present the central local wisdom that comes from the significant ethnicity in this country. In addition, this report also provides future ethical topics at the intersection between business and political ethics by involving digital technological turbulence. In addition, future ethical topics need to address the intersection between business and political ethics by involving digital technological turbulence to explain how Indonesian tech companies strive to integrate ethical practices and strengthen data protection, especially in the gig economy and e-commerce sectors. Hence, the business ethics curriculum should encourage responsible consumers and producers by promoting awareness of false information, cyberbullying, and political manipulation. (shrink)