How do social audiences negotiate and handle stigmatized organizations? What role do their heterogenous values, norms and power play in this process? Addressing these questions is important from a business ethics perspective to improve our understanding of the ethical standards against which organizations are judged as well as the involved prosecutorial incentives. Moreover, it illuminates ethical concerns about when and how power imbalances may induce inequity in the burdens imposed by such social evaluations. We address these questions building on two (...) event-based case studies involving Hells Angels Motorcycle Club Norway, and contribute to organizational stigma theory in three ways. First, social evaluations of a stigmatized organization by multiple audiences are found to interact, collide and combine in a labelling contest. Second, we show that labels employed in this contest are pushed to either negative extremes or positive extremes. Finally, we show when and how power represents a double-edged sword in social evaluation processes, which can be wielded either to the benefit or to the detriment of the actors under evaluation. (shrink)

Despite the proliferation of research on ethical leadership, there remains a limited understanding of how specifically the assumingly moral component of this leadership style affects employee behavior. Taking an identity perspective, we integrate the ethical leadership literature with research on the dynamics of the moral self-concept to posit that ethical leadership will foster a sense of moral identity among employees, which then inspires followers to adopt more ethical actions, such as increased organization citizenship behavior. We further argue that these identity (...) effects should be more pronounced when leaders are perceived to be group prototypical, as their actions then speak louder to followers’ sense of identity. Two studies—a scenario experiment with 138 participants and a field study with 225 employees—provided support for our hypothesized moderated mediation model. Perceived ethical leadership positively affected OCB via followers’ moral identity but only under conditions of high perceived leader group prototypicality. We discuss how the identity pathway of ethical leadership can facilitate novel theorizing about moral transference. Our findings also suggest that, when hiring external ethical leaders or training internal managers, practitioners are well advised to consider that these individuals may only be effective in morally transforming followers when they are perceived as prototypical for the group. (shrink)

Our contribution in this paper is to highlight the ethical implications of workforce engagement strategies in an age of austerity. Hard or instrumentalist approaches to workforce engagement create the potential for situations where engaged employees are expected to work ever longer and harder with negative outcomes for their well-being. Our study explores these issues in an investigation of the enactment of an engagement strategy within a UK Health charity, where managers and workers face paradoxical demands to raise service quality and (...) cut costs. We integrate insights from engagement, paradox, and ethic of care literatures, to explore these paradoxical demands—illustrating ways in which engagement experiences become infused with tensions when the workforce faces competing requirements to do ‘more with less’ resources. We argue that those targeted by these paradoxical engagement strategies need to be supported and cared for, embedded in an ethic of care that provides explicit workplace resources for helping workers and managers cope with and work through corresponding tensions. Our study points to the critical importance of support from senior and frontline managers for open communications and dialogue practices. (shrink)

We sought to expand on the concept of the moral self to include not just the duty to develop the moral self but the moral duty to develop the self in both moral and non-moral ways. To do this, we focused on how leaders can promote a climate in which individuals feel a sense of duty to develop themselves for the betterment of the team and organization. In our theoretical model, duty orientation plays a key role in determining whether followers (...) will seek performance feedback to develop their work selves. We hypothesized that followers with ethical leaders would experience a greater sense of duty to improve themselves and would therefore be more likely to seek and less likely to avoid leader feedback. Drawing on social learning theory, we hypothesized that duty orientation would mediate the relationship between ethical leadership and feedback-seeking/feedback-avoiding behavior, expert power would moderate the relationship between ethical leadership and duty orientation such that duty orientation would be higher when followers perceived their leader to be both highly ethical and competent, and expert power would moderate the indirect effect of ethical leadership on feedback-seeking/feedback-avoiding behavior through duty orientation. We tested our hypotheses using a sample of 249 followers across two waves of data collection. Results suggest that ethical leadership and leader competence interact to drive followers’ duty orientation, thereby reducing followers’ feedback-avoiding behaviors. Further, ethical leadership had a direct positive relationship with followers’ feedback-seeking behaviors. (shrink)

While numerous studies have examined the impact that powerful CEOs have on their compensation and overall firm decisions, relatively little is known about how powerful CFOs influence their compensation and important firm financial reporting and operational outcomes. This is somewhat surprising given the critical role CFOs play in the financial reporting process of a firm. Using managerial power theory and the theory of power and self-focus :635–658, 2013), we predict that powerful CFOs employ a two-part strategy to camouflage excessive incentive (...) compensation above what efficient contracting would dictate. First, powerful CFOs use their power and influence to negotiate shorter incentive pay duration to maximize the present value of their performance—based compensation. Second, when their incentive equity compensation vests, we suggest that CFOs manage earnings to further enhance their personal income. Consistent with our theoretical expectations, we find higher levels of income-increasing accrual-based earnings management and real transactions management, a potentially unethical practice, in firms with powerful CFOs who have short pay durations. We discuss the implications of our analysis in the context of mitigating CFO power and managing the ethical environment “tone at the top.”. (shrink)