Employees often experience ethical dilemmas throughout their service in an organization. This study utilized a multilevel standpoint to address employees’ differences in ethical reasoning. Hierarchical linear modeling was used to analyze responses from 40,485 full‐time employees across 54 countries. Drawing from Durkheim's concepts of the homo duplex, socialization process, and social conditions, this study found a positive relationship between employees’ income level and unethical reasoning. Furthermore, the results indicate that modern social regulation, technological advancement, economic development, and economic change moderate (...) the relationship between income and ethical judgment. The study findings contribute to the Durkheimian model by validating the effects of individual‐ and country‐level factors on employees’ ethicality. Considering that the results contradict Durkheim's initial propositions, another concept and theory are proposed, which may complement Durkheim's arguments. Practical implications for organizations and society are further discussed to reinforce employees’ ethics. (shrink)

Anomie, a societal and anomia an individual characteristic is employed to understand the behaviour of people and more recently it has been used to explore and understand the moral behaviour of people at work. This article reports on research undertaken to explore the relationship between organisational interest, ethical ideologies, employment, religion and ethnic origin on work and nonwork anomia. An objective of this research was to ascertain whether participants that were not employed had lower levels of work-related anomia than those (...) that were employed. The sample consisted of students (N = 209) enroled in management degrees in a UK university. Results indicate that overall work anomia was statistically significant higher than nonwork anomia. Employment status had a significant effect on levels of nonwork anomia. Religion and ethnic origin were also found to have a significant effect on anomia levels. The findings indicate that the work context may be perceived as inherently anomie and this perception is then adjusted according to the actual experience at work. This may influence ethical behaviour and explain the ethical regression that is identified in the work context. (shrink)

Greenwashing is a phenomenon that is linked to scandals that often occur at the supply-chain level. Nevertheless, research on this subject remains in its infancy; much more is needed to advance our understanding of stakeholders’ reactions to greenwashing. We propose here a new typology of greenwashing, based on the locus of discrepancy, i.e. the point along the supply-chain where the discrepancy between ‘responsible words’ and ‘irresponsible walks’ occurs. With three experiments, we tested how the different forms of greenwashing affect stakeholders’ (...) reactions, from both ethical and business perspectives. We developed our hypotheses by building on attribution theory, which seeks to account for how observers construct perceptions about events. We had anticipated that the more internal, controllable and intentional the discrepancy is, the greater the blame attributed to a company is, and the lower the intention to invest will be. When greenwashing occurs at a company level, this results in a higher level of blame attribution, while the intention to invest falls. Indirect greenwashing refers to a misbehaviour perpetrated by a supplier who claims to be sustainable, and which results in a less negative impact on a supplied company. We also propose the vicarious greenwashing, which occurs when the behaviour of a supplier is in breach of a company’s claims of sustainability. This type of greenwashing is nevertheless detrimental to investment. The findings here advance our understanding of how greenwashing shapes stakeholders’ reactions, and highlight the need for the careful management of the supply-chain. (shrink)

Greenwashing is a phenomenon that is linked to scandals that often occur at the supply-chain level. Nevertheless, research on this subject remains in its infancy; much more is needed to advance our understanding of stakeholders’ reactions to greenwashing. We propose here a new typology of greenwashing, based on the locus of discrepancy, i.e. the point along the supply-chain where the discrepancy between ‘responsible words’ and ‘irresponsible walks’ occurs. With three experiments, we tested how the different forms of greenwashing affect stakeholders’ (...) reactions, from both ethical and business perspectives. We developed our hypotheses by building on attribution theory, which seeks to account for how observers construct perceptions about events. We had anticipated that the more internal, controllable and intentional the discrepancy is, the greater the blame attributed to a company is, and the lower the intention to invest will be. When greenwashing occurs at a company level, this results in a higher level of blame attribution, while the intention to invest falls. Indirect greenwashing refers to a misbehaviour perpetrated by a supplier who claims to be sustainable, and which results in a less negative impact on a supplied company. We also propose the vicarious greenwashing, which occurs when the behaviour of a supplier is in breach of a company’s claims of sustainability. This type of greenwashing is nevertheless detrimental to investment. The findings here advance our understanding of how greenwashing shapes stakeholders’ reactions, and highlight the need for the careful management of the supply-chain. (shrink)

Family firm leaders acting as stewards of a close-knit enterprise may attempt to build a positive atmosphere of trust, clarity, and cohesiveness in the firm’s operation. Yet, conditions unique to family firms may lead some family members to develop a heightened sense of entitlement and weaker bonds to the organization. This creates conditions for a Fredo effect, where a family member’s incompetence, opportunistic behaviors, and/or ethically dubious actions can impede the firm’s success, potentially resulting in a scandal that could lead (...) to the firm’s demise and negative economic impact on employees, customers, and other stakeholders. Surveying 147 family-firm members, we examine the role that linkages among perceptions of family harmony norms, distributive fairness, role ambiguity, and relationship conflict play in the emergence of a family member who acts as an impediment to the firm, which can be manifested in damaging unethical behaviors. As hypothesized, family harmony norms and fairness perceptions are negatively related to family impediment, while role ambiguity is positively related to family impediment. However, relationship conflict mediates these connections, underscoring the potential damage this type of conflict can create in a family firm, even if leaders of the firm attempt to establish conditions that reflect a stewardship approach to firm governance. We discuss how these findings impact the development of an ethical climate in the family firm and the implications for family business survival or scandal. (shrink)

ABSTRACT:Anomie is a condition in which normative guidelines for governing conduct are absent. Using survey data from a sample of U.S. manufacturing firms, we explore the impact of internal (cultural) and external (environmental) determinants of organizational anomie. We suggest that four internal organizational factors can generate or suppress organizational anomie, including strategic aggressiveness, long-term orientation, competitor orientation, and strategic flexibility. Similarly, we argue that external contextual factors, including competitive intensity and technological turbulence, can influence organizational anomie. We extend anomie and (...) ethics research by considering the impact of these firm cultural and environmental factors according to whether firms are publicly-traded or privately-held. Findings demonstrate that a number of firm cultural and environmental factors can generate or reduce anomie in firms. Moreover, strategic aggressiveness, long-term orientation, and strategic flexibility influence organizational anomie differently depending on whether the firm is publicly-traded or privately-held. Theoretical and practical implications of our findings are discussed. (shrink)

ABSTRACT:Legal scholars and business ethicists are interested in many of the same core issues regarding human and firm behavior. The vast amount of legal research being generated by nearly 10,000 law school and business law scholars will inevitably influence business ethics research. This paper describes some of the recent trends in legal scholarship and explores its implications for three significant aspects of business ethics research—methodology, theory, and policy.

In this study, we used the framework of institutional anomie theory The future of anomie theory, Northeastern University Press, Boston, 1997) to examine the relationship between supervisors’ ethics and their personal value orientation, including achievement and pecuniary materialism. We further investigated whether these individual-level associations were moderated by societal factors consisting of income inequality, government efficiency, foreign competition, and technological advancement. Hierarchical linear modeling was used to analyze data of 16,464 supervisors from 42 nations obtained from the 2010–2014 wave of (...) the World Values Survey. Results showed that strong achievement value orientation was positively related to willingness to justify ethically suspect behaviors; government efficiency and technological advancement, respectively, had negative and positive moderating effects on this relationship. On the other hand, foreign competition had a positive moderating effect on the association between pecuniary materialism and ethicality. (shrink)

Although theory refers to organizational culture as an important variable in corrupt organizations, only little empirical research has addressed the characteristics of a corrupt organizational culture. Besides some characteristics that go hand in hand with unethical behavior and other features of corrupt organizations, we are still not able to describe a corrupt organizational culture in terms of its underlying assumptions, values, and norms. With a qualitative approach, we studied similarities of organizational culture across different corrupt organizations. In this study, we (...) performed content analysis on interviews of 14 independent experts about their experience with corrupt organizations. With this approach, we gained insights about different corrupt organizations spanning different branches (e.g., government, foreign trade, pharmacy, sports, building industry). We found that corrupt organizations perceive themselves to fight in a war, which leads to their taken-for-granted assumption that “the end justifies the means”. This assumption inspires many values and norms of the organizational culture. An important value in a corrupt organization is “security”, and an important norm is punishment of deviant (i.e., non-corrupt) behavior. Furthermore, managers and employees differ in their perception of organizational culture. While the management endorses values, such as success, results, and performance, and implements these values in their norms of goal setting, employees make use of rationalization strategies and endorse values of security and team spirit. (shrink)

Although corruption has become a hot topic in organizational research, few studies have examined how it is socially constructed. To partially bridge this gap, the present paper takes a critical discursive perspective on the representation of corruption in the media. The empirical focus is on the media coverage of a corruption scandal that revolved around two instances of formal corruption charges and successive acquittals. Based on the analysis, the paper exemplifies how the media makes sense of and gives sense to (...) controversial activities in response to changing and at times contradictory information. In particular, the paper highlights interplay between four dominant discourses—transgression, political, public scapegoating, and individualistic—that that were mobilized throughout the media coverage. These discourses were intimately linked with wider dynamics between problematizing and restorative media framings and thus provided crucial means of reconstructing and reformulating the (il)legitimacy of the reported activities throughout the scandal. While the findings are context specific, this study suggests that similar interplay and dynamics are important aspects of media sensemaking around controversial activities related to corruption. (shrink)

Although corruption has become a hot topic in organizational research, few studies have examined how it is socially constructed. To partially bridge this gap, the present paper takes a critical discursive perspective on the representation of corruption in the media. The empirical focus is on the media coverage of a corruption scandal that revolved around two instances of formal corruption charges and successive acquittals. Based on the analysis, the paper exemplifies how the media makes sense of and gives sense to (...) controversial activities in response to changing and at times contradictory information. In particular, the paper highlights interplay between four dominant discourses—transgression, political, public scapegoating, and individualistic—that that were mobilized throughout the media coverage. These discourses were intimately linked with wider dynamics between problematizing and restorative media framings and thus provided crucial means of reconstructing and reformulating the legitimacy of the reported activities throughout the scandal. While the findings are context specific, this study suggests that similar interplay and dynamics are important aspects of media sensemaking around controversial activities related to corruption. (shrink)