Business Ethics: A European Review, EarlyView.

Business Ethics: A European Review, EarlyView.

After the approval of a code of ethics, the creation of a permanent board‐level ethics committee is the next step in the institutionalization of business ethics. This study explores how the board's structure and demographic characteristics explain the decision to form an ethics committee. The analysis is based on the constituents of the Standard and Poor's Europe 350 index. Consistent with our hypotheses, we find that ethics committees are more likely to be found in firms with a lower presence of (...) executive directors and of directors holding MBA degrees. However, we also observe that boards chaired by executive directors seem to favor the creation of an ethics committee. Additionally, as we had anticipated, firms with stronger agency conflicts seem to be more willing to create committees. The analysis conducted with segmented samples reveals that the model has greater explanatory power when applied to firms from common‐law and French civil‐law countries than when applied to firms from the German–Scandinavian civil‐law area. Finally, our results indicate that a firm's country of origin is a more influential factor in explaining the decision to create an ethics committee than the industry to which it belongs or even the magnitude of its agency conflicts. (shrink)

The recent deluge of sexual harassment allegations in the media serves as a reminder that sexual harassment remains a pervasive, destructive occurrence in the workplace. Organizations in the United States have taken a legal‐centric approach to managing workplace sexual harassment, resulting in impotent anti‐harassment policies, ineffective sexual harassment training, and underused reporting mechanisms. In this conceptual paper, I argue that men's differential perceptions of sociosexual behaviors have propagated this legal‐centric approach, which fails to meet organizations’ ethical obligation to provide a (...) safe and healthy work environment. Specifically, men have a different psychological experience of sexual harassment, which may inhibit their ability to take the perspective of targets. This lack of perspective‐taking has influenced the jurisprudence on workplace sexual harassment, which has in turn informed organizations’ approach to managing the phenomenon. I contribute to research on both business ethics and workplace sexual harassment by integrating two bodies of scholarship that have developed largely independent of one another: organizational psychology and legal. In so doing, I offer an explanation for the continued pervasiveness of workplace sexual harassment despite decades of legal sanction, organizational interventions, and research. (shrink)

Human resource management in managing environmental, social, governance, or corporate social responsibility initiatives has been recently raised. Yet, little attention has been paid to integrating CSR and HRM. Our primary goal was to identify how and whether certain HR practices are critical for developing employee capability to operate in firms with active CSR initiatives. We first examine the impact of external CSR activities on firm-level work outcomes. Moreover, we attempt to identify a choice of particular HR practices that could be (...) aligned with external CSR activities. We then empirically examine how each HR practice interacts with external CSR activities that influence employee retention and labor productivity. Using three longitudinal datasets conducted by the government-sponsored research institution over 154 publicly traded Korean firms for five waves of survey years, the results show that external CSR has a limited impact on employee retention and labor productivity. However, when external CSR activities are combined with a specific set of HR practices, including person-organization fit-based selection, performance-based pay, extensive investment of training and development, and employee suggestion program, the impact of external CSR on employee work outcomes is more substantial. The results indicate that external CSR and a particular set of HR practices as internal CSR can be complementary and generate a positive interaction on creating sustainable human capabilities. (shrink)