Recent scholarship in business ethics has revealed the importance of privacy expectations as they relate to implicit privacy norms and the business practices that may violate these expectations. Yet, it is unclear how and when businesses may violate these expectations, factors that form or influence privacy expectations, or whether or not expectations have in fact been violated by company actions. This article reports the findings of three studies exploring how and when the corporate dissemination of consumer data violates privacy expectations. (...) The results indicate that consumer sentiment is more negative following intentional releases of sensitive consumer data, but the effect of data dissemination is more complex than that of company intentionality and data sensitivity alone. Companies can effectively set, and re-affirm, privacy expectations via consent procedures preceding and succeeding data dissemination notifications. Although implied consent has become more widely used in practice, we show how explicit consent outperforms implied consent in these regards. Importantly, this research provides process evidence that identifies perceived violation of privacy expectations as the underlying mechanism to explain the deleterious effects, on consumer sentiment, when company actions are misaligned with consumers’ privacy expectations. Ethical implications for companies collecting and disseminating consumer information are offered. (shrink)

Social media offers a platform for diffused stakeholders to interact with firms—alternatively praising, questioning, and chastising businesses for their CSR performance and seeking to engage in two-way dialogue. In 2014, 163,402 public messages were sent to Fortune 200 firms’ CSR-focused Twitter accounts, each of which was either shared, replied to, “liked,” or ignored by the targeted firm. This paper examines firm reactions to these messages, building a model of firm response to stakeholders that combines the notions of CSR communication and (...) stakeholder salience. Our findings show that firm response to a stakeholder on social media is positively and most significantly associated with what we refer to as the stakeholder’s connective power but negatively associated with the firm’s own connective power. To a lesser extent, firm response is positively associated with the stakeholder’s normative power but negatively associated with the firm’s own normative power. Firm response is also shown to be positively associated with stakeholder urgency in terms of both the originality of a stakeholder message and the expression of positive sentiment. (shrink)

ABSTRACT:This article aims to enhance understanding of employee anonymous online dissent (EAOD), a controversial phenomenon in contemporary digital environments. We conceptualise and scrutinise EAOD as a communicative and interactional process among four key actors: dissenting employees, online outlet administrators, audiences, and targeted organisations. This multi-actor, dialectical process encompasses actor-related tensions that may generate unethical consequences if single voices are not brought out and confronted. Appropriating a Habermasian ethical and discursive lens, we examine and disentangle three particular challenges emerging from the (...) EAOD process: lack of accountability and potential opportunism; equal participation and resolution of actor-related tensions; and organisational participation and internalisation of dissent. We show that EAOD can initiate plural dialogue that helps co-construct and balance different voices within an informal and noninstitutionalised context for interaction and public deliberation. We conclude our inquiry by offering reflections on practical implications and a research agenda for further investigation. (shrink)

New media and technologies such as social media and online platforms are disrupting the way businesses are run and how society functions. This article advises that scholars consider the morality of new media as an area of investigation. While prior literature has given much attention to how social media provides benefits, how it affects society generally, and how it can be used efficiently, research on the ethical aspects of new media has received relatively less attention. In an age where matters (...) such as violence, hate crimes, fake news, etc. are increasingly pervasive, we need to address the role of online technology in aiding or limiting such negative acts. In this regard, this article uses the canvas of a terror attack that was facilitated by online technology to bring to light pressing social and ethical issues in the use of new media. I draw upon 264 news articles focusing on the 2019 Christchurch terrorist attacks to piece together how the attack was orchestrated and focus on technology-enabled facets of the event. I stir discussion on the ethical aspects of technology with regard to online discrimination and highlight business and other stakeholder responsibilities and challenges as technology continues to evolve and pervade our social lives. (shrink)

This study addresses a gap in the literature on corporate governance and corporate social responsibility by investigating whether and how board independence and institutional ownership moderate the relationship between digital transformation and corporate social performance. We find that digital transformation increases CSP using a panel dataset of Chinese publicly listed firms between 2014 and 2018. Moreover, we show that this positive impact is more pronounced when firms have higher proportions of independent directors on the board and institutional owners. These findings (...) contribute to a better understanding of CSR dynamics, supporting the formulation and implementation of efficient CSR strategies in the digital era. (shrink)

Recent research has damped initial promises for democratic deliberation in social media arenas. Empirical studies find only low degrees of direct reciprocal interaction among participants, a lack of consensus orientation, and accelerated forms of communication that fail to meet traditional ideals of deliberation. In line with recent literature, we argue that traditional deliberative ideals are too narrow to embrace the potential contribution of social media for deliberation about (ir-)responsible business conduct. Instead, we propose to conceptualize social media as arenas for (...) everyday talk, that is, everyday communication practices through which participants informally discuss and express opinions about current issues, thereby contributing to a broader deliberative system. In adopting this lens, we ask: How can everyday talk in social media contribute to deliberation about (ir-)responsible business conduct? Drawing on the latest insights from online deliberation studies, we develop a framework for evaluating everyday talk and propose that its deliberative quality depends on social media appropriate forms of justification, interactivity, equality, and civility. We apply this framework with an analysis of 260,224 tweets about the role of business in climate change. Based on our findings, we critically discuss how everyday talk in social media can contribute to deliberation at the intersection of business and society. (shrink)

The sharing economy has transformed economic transactions, created new organizational forms, and contributed to changes in consumer culture. Started as a movement with promises of a more sustainable, democratic, and inclusive economy, the sharing economy, and its impact on issues such as privacy, discrimination, worker rights, and regulation, is now the subject of heated debate. Many of these issues root in the changes that digital technologies have brought and the unresolved moral and ethical questions emerging therefrom. This special issue contributes (...) to this ongoing debate with five articles that develop theoretical frameworks and conduct empirical investigations, providing fine-grained analyses of urgent issues in the sharing economy. In this article, we highlight these and other issues that we believe deserve further attention from business ethics scholarship. (shrink)

Conventional quantitative methods for the measurement of organizational legitimacy consider mainly three sources that make judgments about organizations visible: news media, accreditation bodies, and surveys. Over the last decade, however, social media have enabled ordinary citizens to bypass the gatekeeping function of these institutional evaluators and autonomously make individual judgments public. This inclusion of voices beyond functional and formally organized stakeholder groups potentially pluralizes the ongoing discussions about organizations. The individual judgments in blogs, tweets, and Facebook posts give indication about (...) the broader fit between an organization’s perceived behavior and heterogeneous social norms and therefore constitute an indicator of organizational legitimacy that can be accessed and measured. We propose the use of social media data and sentiment analysis to study the affect-based responses to organizational actions by citizens. We critically discuss and compare the method with existing quantitative methods for legitimacy measurement and apply them to a recent case in the banking industry. We discuss the value of the method for studying the process of legitimacy construction as the expression and negotiation of normative judgments about organizations by various evaluators. (shrink)

Drawing from moral foundations theory, we show that differences in sensitivity to distinct moral norms help explain differences in the perceived fairness of punishing employees for off-duty deviance. We used an initial study to validate realistic examples of non-criminal behavior that were perceived as violating a specific moral foundation. Participants in the main study evaluated scenarios in which co-workers were fired for those behaviors, which took place outside of work but were revealed via social media. The extent to which participants (...) valued the norm violated by the co-worker positively predicted perceived fairness of the firing, and negatively predicted expressed intent to take retributive action against the responsible manager. This effect was moderated by the presence of a pre-existing organizational policy regarding off-duty conduct, which uniformly decreased negative reactions to the firing. Because social media now makes the revelation of an employee’s off-duty behavior to a broad audience increasingly likely, our results suggest the importance of developing an approach for responding to employee off-duty deviance while highlighting the relevance of moral pluralism to the study of third-party reactions. (shrink)

We investigate the role of social-media-triggered public pressure on corporate social responsibility that includes expectations of transparency and accountability on the firm’s part, and participative/evaluative inputs on the public’s part. Using the date when S&P 500 firms established corporate Twitter accounts, we investigate the impact of corporate social media exposure on CSR outcomes. Results from baseline regressions indicate that firms with Twitter accounts significantly outperform industry peers in CSR rating, after controlling for firm and industry characteristics. To test potential reverse (...) causality, we use a dynamic treatment effect model to explore within firm changes of CSR, and find that firms’ CSR rating improves in year one- and year two after establishing a Twitter account, while no difference emerged in similar comparisons with peers prior to the Twitter account establishment. Additionally, Granger causality tests results show that corporate Twitter presence improves CSR performance; it is also shown that CSR outcomes do not motivate corporations to establish a social media presence on Twitter. Finally, firms with more experience on Twitter, and those with more followers, tweets or Twitter accounts are associated with improved CSR outcomes. We draw on two theories and qualitative interviews with senior CSR executives to explain why social media influences CSR firm behaviors. (shrink)