Learning and development are often linked in the organization studies literature. To understand the dynamics of organizational moral development, this paper utilizes the notion of organizational moral learning (OML). It is explored using three perspectives: organizational learning, Islamic and critical realist perspectives. The perspectives are then synthesized together to form a single framework, called the OML by ‘spiritual hearts’ framework. At the centre of the framework is the spiritual heart, the seat of profound understanding and moral consciousness. The heart plays (...) a central role in organizational moral development, especially with regard to its potential to be ‘purified’ and corrupted. Two extreme parameters then are created: on one side is the ‘purified hearts’ with high moral consciousness contributing towards OML, and on the other is the ‘corrupted hearts’ with high immoral consciousness contributing towards organizational immoral learning. Between the two extremes are the ‘diseased hearts’, possessing a mixture of moral and immoral consciousness to various degrees, and have the potentials to contribute to both moral and immoral developments. The paper further suggests strategies to facilitate OML and simultaneously inhibits organizational immoral learning. (shrink)

Many tensions exist within the nexus of corporate social responsibility, competitive strategy, and political activity. Previously, these aspects of strategic management have been considered in relative isolation or at best in pairs. Accordingly, an attempt is made here to set out a general strategic problem of the corporation, in which all three aspects are combined. This project reveals a particular need to explicate the political assumptions held by or on behalf of the corporation. Examples might include the classical liberal model, (...) global hypercompetition, or variants of the stakeholder model. The project also reinforces the broader notion that when one adopts the perspective of a corporate strategist, one can sometimes find potentially productive ways of reframing issues in ethics, economics, and politics. (shrink)

Stakeholder theory scholars have recently addressed two crucial calls: the first is for the integration of strategy and ethics, of stakeholder theory and strategic management, and the second call is for the development of a dynamic approach to stakeholder management. I have attempted to answer these calls by developing a theoretical framework that links together stakeholder management, stakeholder commitment to cooperate with the firm, key decision makers’ ethical commitment, and firm strategy. Starting from the basic assumption that managers cannot meet (...) all stakeholders’ demands immediately and in a tailored manner, I contend, first, that an ambidextrous approach to stakeholder management is conducive to stakeholders’ commitment to cooperate for the sustainable well-being of the firm and, second, that firm strategy and key decision makers’ ethical commitment moderate the relationship between an ambidextrous stakeholder management and stakeholder commitment to cooperate. Furthermore, drawing on this theoretical framework, I attempt to address the call for the integration of strategy and ethics by proposing a three-level conceptual model that distinguishes the objectives, the field, and the levers of integration. Finally, I outline a set of propositions that, taken together, represent a first attempt to develop a dynamic approach to stakeholder management. (shrink)

Managers in ethnic businesses are confronted with ethical dilemmas when taking action based on ethnic ties; and often as a result, they increase the already vulnerable positions of these businesses and their stakeholders. Many of these dilemmas concern the capital that is generated through variations in the use of ethnic stakeholder social ties. The purpose of this paper is to suggest a stakeholder-based model of social capital formation, mediated by various forms of ethnic ties, to explore the duality of ethnicity: (...) it can aid and hinder an ethnic business. Drawing upon the social capital/economic development, stakeholder salience, ethnic businesses literatures, and on social identity theory, we develop a cyclical model of relationships among ethnic business stakeholder attributes and social capital, as mediated by three-way Simmelian bonding and bridging ties, which then, in turn, affects the ethnic stakeholder attributes. We argue that the development of bridging yet strong ties through this cyclical process is relevant for the improvement of the positions of ethnic businesses in terms of both economic success and social responsibility. Specifically, we suggest that, given the duality of ethnicity in business, managers can prioritize stakeholder relationships based upon how these stakeholder ties affect social capital. (shrink)

Using a policy-capturing approach with a broad student sample we examine how individuals’ economic, social and environmental values influence their propensity to engage in a broad range of sustainability-related corporate actions. We employ a multi-dimensional sustainability framework of corporate actions and account for both the positive and negative impacts associated with corporate activity—termed strength and concern actions, respectively. Strong economic values were found to increase the propensity for concern actions and the willingness to work in controversial industries. Individuals with balanced (...) values were as likely as those with strong economic values to pursue positive economic outcomes, but without the same downside potential for concern actions. We also found significant gender effects, with females being less likely to engage in concern actions and more supportive of social and environmental strength actions. (shrink)

This paper examines whether and to what extent the overall business strategy influences the firm’s mismanagement of sustainability. Specifically, an empirical measure for the mismanagement of sustainability is developed by exploiting the newly available materiality guidelines for US firms to define industry-specific material sustainability issues. Using this measure, this paper shows that mismanagement of sustainability can represent unethical business behavior when firms intentionally perform better on immaterial issues than on material issues by diverting stakeholders’ attention from the firm’s low overall (...) sustainability performance. This paper assumes that the right business strategy can prevent such unethical actions. Based on Miles and Snow’s organizational theory, this paper distinguishes between Prospector and Defender business strategies. By employing multiple firm-level panel regressions, the findings suggest that Prospector-type firms are more likely to mismanage sustainability issues compared to Defender-type firms intentionally. The results give implications for researchers, regulators and standard setters, auditors, sustainability practitioners, and scholars. (shrink)

Labor unions are key stakeholders in the field of corporate social responsibility but researchers have paid surprisingly little attention to their CSR strategies. This article extends stakeholder theory by treating unions as having stakeholders that influence their CSR strategies. Drawing on qualitative data from a longitudinal study on selected unions in France between 2006 and 2013, this paper analyzes the underlying reasons for the differences in their approaches. It finds connections between the unions’ CSR strategy, and the perception of and (...) cooperation with stakeholders. (shrink)

This paper is the Introduction to the Special Issue comprising a selection of papers submitted to the 19th IESE International Symposium on Ethics, Business and Society. The main topic of the Symposium was “Ethical Challenges in Strategic Management.” The paper presents the rationale and context of the Symposium. We begin with a brief historical overview of the evolution of the relationship between ethics and strategy. We propose four pillars that are at the core of a definition of strategy and elaborate (...) on how ethics can contribute to strategy. We present the six papers that make up this selection within the framework of the four aspects introduced in the previous section. We conclude with some proposals for further research that consider the content of the papers. (shrink)

The dynamic organisational processes in businesses dilute the boundaries between the individual, organisational, and societal drivers of corporate philanthropy. This creates a complex framework in which charitable project selection occurs. Using the example of European tour operators, this study investigates the mechanisms through which companies invest in charitable projects in overseas destinations. Inextricably linked to this is the increasing contestation by local communities as to how they are able to engage effectively with tourism in order to realise the benefits tourism (...) development can bring. This research furthers such debates by exploring the processes through which tour operators facilitate community development through charitable giving. Findings show, with no formal frameworks in existence, project selection depends upon emergent strategies that connect the professional with the personal, with trust being positioned as a central driver of these informal processes. Discretionary responsibilities are reworked through business leaders’ commitment to responsible business practises and the ethical subjectivity guiding these processes. (shrink)

The Corporate Social Performance (CSP) model (Wood, Acad Manag Rev 164:691–718, 1991) assesses a firm’s social responsibility at three levels of analysis—institutional, organizational and individual—and measures the resulting social outcomes. In this paper, we focus on the individual level of CSP, manifested in the managerial discretion of a firm’s principles, processes, and policies regarding social responsibilities. Specifically, we address the human resources management of employees as a way of promoting CSR values and producing socially minded outcomes. We show that applying (...) the humanist philosophy to the managerial discretion of a business organization leads to the creation of an “autonomy supportive work environment”—as defined by the self-determination theory—which in turn, facilitates the internalization of social values, citizenship behaviors, and cooperation. The objective of promoting self-determination at work (i.e., the core of a humanist management) fits well with the ontology of social responsibility since autonomy and consideration of individuals as moral actors are central tenets. Furthermore, we show that applying humanistic management philosophy to the discretion of managers can lead to socially responsible outcomes. First, intra-organizational stakeholders (e.g., employees) are treated with respect and focus is put on their well-being, satisfaction, and self-actualization at work. Second, as employees’ need of self-determination is addressed by managers, it is likely that pro-social behaviors toward other stakeholders of the organization will be adopted, leading to socially responsible outcomes for extra-organizational stakeholders (Gagné, Motiv Emot 77:58–75, 2003). Thus, this paper ultimately posits that humanistic management applied to the HRM can be a solution for developing and maintaining socially responsible outcomes as determined at the individual level of the CSP model, through managerial discretion. (shrink)

The history of the field of business ethics in the U.S. remains understudied and misunderstood. In this article I begin to remedy this oversight about the past, and I suggest how it can be beneficial in the present. Using both published and unpublished primary sources, I argue that the business ethics field emerged in the early twentieth century, against the backdrop of the establishment of business schools in major universities. I bring to light four important developments: business ethics lectures at (...) the University of California and Yale University, Leon Marshall’s curriculum at the College of Commerce of the University of Chicago, and the William A. Vawter Foundation on Business Ethics at Northwestern University. Then, I consider the payoffs of my historical account for business ethics theory, pedagogy, and practice. Specifically, I present four implications of my account under these headings: business ethics as a public problem; the place of ethics in business schools; historicizing business ethics; and historical self-knowledge. (shrink)