Despite the importance of ethics in corporate crisis management, they have received limited attention in the academic literature. This article contributes to the evolving conversation on ethics in crisis management by elucidating the ethics of "justice" and "care" and distinguishing between them. Examples of the two approaches are offered through consideration of cases in corporate crisis management, including the alleged glass contamination case faced by Gerber Products Company, and, the shooting tragedy at San Ysidro faced by McDonald''s Corporation. It is (...) argued that both an ethic of justice and an ethic of care can be appropriate approaches in corporate crisis management. Areas for future research are discussed. (shrink)

The role of ethics in organizational crisis management has received limited but growing attention. However, the majority of research has focused on applications of ethical theories to managing crisis events after they have occurred, as opposed to the implications of ethical theories for the primary prevention of these situations. The relationship between concepts derived from a contemporary ethic of care, pp. 141–158, Gilligan, C.: 1990, ‘Preface’, in C. Gilligan, N. P. Lyons and T. J. Hanmer, pp. 6–29, Gilligan, C.: 1991, (...) ‘Women’s Psychological Development: Implications for Psychotherapy’, in C. Gilligan, A. G. Rogers and D. L. Tolman, pp. 5–32), and, concepts derived from a classic theory of organizational decline and recovery ) is described. The relevance of these notions for signal detection and uptake in organizational crisis prevention is discussed. Implications for prevention are highlighted through consideration of a case involving organizational crisis, the explosion of the space shuttle Challenger. Directions for both business practice and future research are identified. (shrink)

Crisis prevention plans are usually evaluated based on their effects in terms of preventing or limiting organizational crisis. In this survey-based study, the focus was instead on how such plans influence employees’ reactions in terms of risk perception and well-being. Five different organizations were addressed in the study. Hypothesis 1 tested the assumption that leadership crisis preparation would lead to lower perceived risk among the employees. Hypothesis 2 tested the conjecture that it would also lead to a higher degree of (...) well-being. Both hypotheses were supported. The results and their implications are discussed. (shrink)

This study examines two recent cases of ethical responses to crisis management; the 1995 fire at Malden Mills and Aaron Feuerstein''s response, and a 1998 fire at Cole Hardwoods, followed by the response of CEO Milt Cole. The authors describe these crises, the responses of Feuerstein and Cole, their motivations and the impact on crisis stakeholders using the principles of virtue ethics and effective crisis management. What emerges is set of post-crisis virtues grounded in values of corporate social responsibility and (...) entrepreneurial ethics. These include virtues of immediacy of response, supportiveness of victims, and rebuilding and renewal. (shrink)

Applying the sensemaking perspective in the field of corporate social responsibility is a recent but promising development. Using an in-depth exploratory case study, we analyze and discuss the CSR character of British American Tobacco Switzerland. Our findings indicate that BAT Switzerland does not follow traditional patters of building CSR. BAT Switzerland can be classified as a “legitimacy seeker,” characterized mainly by a relational identity orientation and legitimation strategies that might provide pragmatic and/or cognitive legitimacy. We conclude that understanding the cognitive (...) processes underlying the CSR decision-making process is of fundamental value when analyzing and changing the CSR approach of a firm. We discuss boundary conditions of the CSR character framework and expand it by differentiating between process and product legitimacy, as both perspectives have important but possibly different implications for the firm. (shrink)

In the management and business ethics literatures, stakeholder engagement has been demonstrated to lead to more ethical management practices. However, there may be limits on the extent to which stakeholder engagement can, as currently conceptualized, resolve some of the more difficult ethical challenges faced by managers. In this paper we argue that stakeholder engagement, when seen as a way of reducing five types of knowledge problems—risk, ambiguity, complexity, equivocality, and a priori irreducible uncertainty—can aid managers in resolving such ethical challenges. (...) Using a practical illustration of the ethical challenges surrounding the development and application of genetic modification technologies, we demonstrate how stakeholder engagement enables managers to better address these knowledge problems, thereby to manage more ethically. In this way, we suggest that stakeholder engagement has an even more crucial role to play in business ethics research and practice. (shrink)

Against the backdrop of a global pandemic, this study investigates how U.S. higher education leaders have centered their crisis management on values and guiding ethical principles. We conducted 55 in-depth interviews with leaders from 30 U.S. higher education institutions, with most leaders participating in two interviews. We found that crisis plans created prior to the COVID-19 pandemic were inadequate due to the long duration and highly uncertain nature of the crisis. Instead, higher education leaders applied guiding principles on the fly (...) to support their decision-making. If colleges and universities infuse shared values into their future crisis plans, they will not have to develop a moral compass on the fly for the next pandemic. This paper suggests the following somewhat universal shared values: engage in accuracy, transparency, and accountability; foster deliberative dialog; prioritize safety; support justice, fairness, and equity; and engage in an ethic of care. To navigate ethics tensions, leaders need to possess crisis-relevant expertise or ensure that such expertise is present among crisis management team members. Standing up formal ethics committees composed of diverse stakeholders also is instrumental in navigating tensions inherent in crises. The next pandemic is already on the horizon according to experts. Through infusing values into future crisis plans, higher education leaders can be confident that their responses will be grounded in their communities’ shared values. (shrink)

This article investigates the factors affecting how public relations autonomy, legal dominance, and strategic orientation affect crisis communicative response in corporate contexts. Communication managers, crisis managers, public affairs managers, and/or public relations managers were solicited from Taiwan’s top 500 companies to participate in a survey. The results revealed that, in contrast to public relations autonomy being the strongest and sole predictor of concession strategy, legal dominance could predict defensive and diversionary responses in crisis events. The article concludes with a discussion (...) of practical applications and theoretical implications. (shrink)

Corporate sustainability reports are supposed to provide a complete and balanced picture of corporate sustainability performance. They are, however, usually voluntary and thus prone to interpretation and even greenwashing tendencies. To overcome this problem, the Global Reporting Initiative (GRI) provides standardized reporting guidelines challenging companies to report positive and negative aspects of an organization’s sustainability performance. However, the reporting of “negative aspects” in particular can endanger corporate legitimacy if perceived by the stakeholders as not being in line with societal norms (...) and values. Starting from the theoretical lenses of economics-based disclosure theories and socio-political theories of disclosure, the focus of this study therefore was to analyze the communicative legitimation strategies companies use to report “negative aspects,” i.e., negative ecological and social impact caused by corporate activity. Using qualitative content analysis of GRI-oriented sustainability reports from companies listed on the US Dow Jones Industrial Average Index and on the German DAX Index, we identified six legitimation strategies. We discuss these strategies regarding to symbolic and substantial management of legitimacy. We show that symbolic legitimation strategies aiming at modifying the perception of legitimizing stakeholders dominate in the reports at hand. Such persuasion, however, does not meet the requirement of impartiality as postulated by the GRI guidelines. Building upon this conclusion we propose a concise characterization of “negative aspects” and develop a GRI-compliant schema of reporting about them. In doing so, we offer a way to improve the overall “balance” of sustainability reporting contributing to a true and fair view in sustainability disclosure. (shrink)

Business and Society Review, Volume 127, Issue 1, Page 23-48, Spring 2022.

Drawing on signaling theory, we suggest that a supplier’s enforcement of ethical codes sends signals about the supplier that affect a buyer’s decision to continue their commitment to the supplier. We then draw on side-bet theory to hypothesize how switching costs influence the importance of a supplier’s enforcement of ethical codes in predicting a buyer’s continuance commitment to a supplier. We empirically test our model with data from 158 purchasing managers across three manufacturing industries. Results confirm the connection between ethical (...) code enforcement and continuance commitment, but suggest that a supplier’s enforcement of ethical codes matter less when switching suppliers is perceived as too costly. (shrink)

This article explores the influence that an organisation's corporate values have on employees' behaviour and values both within and outside the work environment. In particular, it focuses on the impact of these values on the personal buying behaviour of employees. The empirical research was undertaken within a case study organisation that produces wine in Spain and involved interviews with senior management, an analysis of company documentation, as well as group discussions with employees supported by an employee survey. The article argues (...) that an organisation's corporate values influence not only its employees' behaviour within the work environment, but also impacts on their global values system outside of the work environment. In particular, this was evident within the employees' buying behaviour practices in relation to supplier loyalty and environmental concern. This has implications for business ethics as an organisation's value system may go beyond the purely business context. Organisations need to be aware of their impact on employees' behaviour outside of the work environment; this is particularly the case for multinational companies working across many cultures. (shrink)

This article explores the influence that an organisation’s corporate values have on employees’ behaviour and values both within and outside the work environment. In particular, it focuses on the impact of these values on the personal buying behaviour of employees. The empirical research was undertaken within a case study organisation that produces wine in Spain and involved interviews with senior management, an analysis of company documentation, as well as group discussions with employees supported by an employee survey. The article argues (...) that an organisation’s corporate values influence not only its employees’ behaviour within the work environment, but also impacts on their global values system outside of the work environment. In particular, this was evident within the employees’ buying behaviour practices in relation to supplier loyalty and environmental concern. This has implications for business ethics as an organisation’s value system may go beyond the purely business context. Organisations need to be aware of their impact on employees’ behaviour outside of the work environment; this is particularly the case for multinational companies working across many cultures. (shrink)

In recent years there have been ever-growing concerns regarding environmental decline, causing some companies to focus on the implementation of environmentally friendly supply, production and distribution systems. Such concern may stem either from the set of beliefs and values of the company’s management or from certain pressure exerted by the market – consumers and institutions – in the belief that an environmentally respectful management policy will contribute to the transmission of a positive image of the company and its products. Sometimes, (...) however, ethics and market rules are not enough to deal with this situation and specific laws must be considered. This is the case when companies base their activity on the ‹ethics of self-interest’ concentrating their efforts on projecting an adequate image – e.g. environmental respect – rather than fundamentally behaving in environmentally respectful ways. This article, taking as reference the SME context, discusses the reasons for implementing environmentally friendly systems. Both ethics and business seem to be relevant and, therefore, a certain balance between market and interventionism seems to be necessary. (shrink)

To contribute to the continuing challenge of explaining how managers identify stakeholders and assess their salience, in this article, we chronicle the history, assess the impact, and evaluate the possibilities opened by Mitchell, Agle, and Wood (MAW-1997). We do so through two types of qualitative analysis, and also through utilizing a quantitative network analysis tool. The first qualitative analysis categorizes the major contributions of the most influential papers succeeding MAW-1997; the second identifies and compares the relevant issues with MAW-1997 at (...) the time of initial publication and today. We apply main path analysis, a quantitative tool, to map how this scholarly domain has evolved. These three analyses robustly depict the impact of MAW-1997 and the ensuing scholarly conversation, and they enable us to illustrate the current state and trajectory of stakeholder identification and salience scholarship. We close by discussing pressing topics related to the broader body of stakeholder theory literature. (shrink)