ABSTRACT:This manuscript develops the concept of organizational virtue orientation (OVO) and examines differences between family and non-family firms on the six organizational virtue dimensions of Integrity, Empathy, Warmth, Courage, Conscientiousness, and Zeal. Using content analysis of shareholder letters fromS&P 500companies, our analyses find that there are significant differences between family and non-family firms in their espoused OVO, with family firms generally being higher. Specifically, family firms were significantly higher on the dimensions of Empathy, Warmth, and Zeal, but lower on Courage. (...) Based on these findings we further develop the OVO concept through the discussion of implications and areas for future research. (shrink)

In this article, we describe the influence of violations of community standards of fairness (Kahneman, Knetsch, and Thaler, 1986a) on subsequent ethical decision-making and emotions. Across two studies, we manipulated explanations for a common action, and we find that explanations that violate community standards of fairness (e.g., by taking advantage of an in crease in market power) lead to greater intentions to behave unethically than explanations that are consistent with community standards of fairness (e.g., by passing along a price increase). (...) We find that perceptions of justifiability mediate this relationship. We also find that individuals derive significant psychological benefits (greater satisfaction, greater happiness, and reduced anger) from engaging in unethical behavior following perceived violations of fairness. (shrink)

In this article, we describe the influence of violations of community standards of fairness on subsequent ethical decision-making and emotions. Across two studies, we manipulated explanations for a common action, and we find that explanations that violate community standards of fairness lead to greater intentions to behave unethically than explanations that are consistent with community standards of fairness. We find that perceptions of justifiability mediate this relationship. We also find that individuals derive significant psychological benefits from engaging in unethical behavior (...) following perceived violations of fairness. (shrink)

This study analyses to what extend and under what circumstances layoffs are accepted in Germany. Principles of distributive justice and rules of procedural justice form the theoretical framework of the analysis. Based on this, hypotheses are generated, which are tested empirically in a telephone survey conducted between East and West Germans in 2004 (n = 3036). The empirical analysis accounts for the different points of views of implicated stakeholders and impartial spectators. Key findings are: (1) The management of a company (...) can increase the acceptance of layoffs if the employees get some participation rights. (2) For impartial spectators generous compensation for those made redundant leads to a higher degree of perceived fairness. But job alliances are not even preferred to layoffs without measures to soften the blow of job loss. (3) Implicated stakeholders accept job alliances and perceive wage cuts as more fair than layoffs. However, compensation does not have the expected impact. (shrink)

ABSTRACT:This manuscript develops the concept of organizational virtue orientation (OVO) and examines differences between family and non-family firms on the six organizational virtue dimensions of Integrity, Empathy, Warmth, Courage, Conscientiousness, and Zeal. Using content analysis of shareholder letters fromS&P 500companies, our analyses find that there are significant differences between family and non-family firms in their espoused OVO, with family firms generally being higher. Specifically, family firms were significantly higher on the dimensions of Empathy, Warmth, and Zeal, but lower on Courage. (...) Based on these findings we further develop the OVO concept through the discussion of implications and areas for future research. (shrink)

The authors discussed the reasons for the recent economic collapse as caused by the lack of large businesses and global corporations losing touch with the people they serve. Losing touch has caused a distancing of understanding of the customers as people by these businesses and corporations. An antidote to this is that decisions that have to be made in global businesses as well as domestic organizations reflect some level of empathy. The objective is to highlight the fact that these businesses (...) are corporate citizens and in themselves must be aware of the culture in which they conduct themselves. The authors discuss how empathie decision-making can become part of the corporate fabric without losing any sense of appropriate business judgment. A process is defined to enable the empathie process. Finally, a straw man is set up to fund/enable the process while creating a positive and profitable business environment. (shrink)

The goals of this research were to (1) explore the direct effects of and interactions between magnitude of consequences and various types of proximity - social, psychological, and physical - on the ethical decision-making process and (2) investigate the influence of empathy on the ethical decision-making process. A carpal tunnel syndrome vignette and questionnaire were administered to a sample of human resource management professionals to test the hypothesized relationships. Significant relationships were found for the main effects between magnitude of consequences (...) and principle-based evaluation, cognitive empathy and principle-based evaluation, and empathy and moral intention. Physical proximity moderated the relationships between magnitude of consequences and utilitarian evaluation as well as magnitude of consequences and moral intention. Cognitive empathy moderated the relationships between magnitude of consequences and principle-based evaluation and physical proximity and utilitarian evaluation. Affective empathy marginally moderated the relationship between physical proximity and principle-based evaluation. Future research directions, management implications, and strengths and weaknesses of the research are discussed. (shrink)

In 1987, Chrysler bought American Motors which included a plant in Kenosha, Wisconsin, a city of 72 000. Employing 6 500 workers, most of whom were members of the United Auto Workers (UAW), Chrysler became the city's largest employer. For decades, the UAW had a strong influence on city politics. However, in the 1980s young professionals in Kenosha began challenging this status quo.Chrysler shocked the citizens of Kenosha when their executives announced the closing of their plant within a year. Wisconsin (...) government officials and the UAW believed that Chrysler promised to stay for up to five years; they considered Chrysler's move to be a breach of contract. Chrysler responded that it was their "intention" -- not a contractual agreement -- to stay in Kenosha. From an ethical perspective, just cause, due process and mitigation of harmful effects should be applied in the discussion of a plant closing. (shrink)

The importance of personal connections and relationships, or guanxi when doing business with the Chinese is widely acknowledged amongst Western academics and business managers alike. However, aspects of guanxi-rehted behaviours in the workplace are often misunderstood by Westerners with some going so far as to equate guanxi with forms of corruption. This study extends earlier study of Tan and Snell: 2002, Journal of Business Ethics 41 (December), 361-384) in its investigation of the underlying modes of moral reasoning in ethical decisions (...) relating to aspects of guanxi, amongst Hong Kong managers. Managers' ethical judgements and underlying moral reasoning relating to a series of guanxi related behaviours were recorded. Content analysis yielded categories that correspond with categories of moral reasoning described in Kohlberg's (1969, Handbook of Socialization Theory and Research, Rand McNally, Chicago, pp. 347-480) model. As hypothesised, it was found that harsher ethical evaluations of guanxi-vehted behaviours were positively correlated with the stage of moral reasoning. The most common types of reasoning were those corresponding to Kohlberg's stages four and five which relate to moral reasoning based on law and order, and on reason rather than emotion. Stage 6, concerned with more universalistic approaches to moral reasoning, was utilised considerably less, consistent with popularly held beliefs of the relativistic nature of Chinese ethics. (shrink)

It may be nearly impossible to use standard principles to make a decision about a complex ethical case. The best decision, say virtue ethicists in the Aristotelian tradition, is often one that is made by a person of good character who knows the salient facts of the case and can frame the situation appropriately. In this respect ethical decisions and strategic decisions are similar. Rationality plays a role in good ethical decision-making, but virtue ethicists emphasize the importance of intuitions and (...) emotions as well.Virtue ethics suggests a reconciliation of the factual and the normative. Virtues may explain as well as justify actions. The same is true of other psychological states and events. That psychological terms have normative implications does not render them useless in explanation. As Aristotle does not distinguish cleanly between the normative and empirical, so many moral philosophers today reject the is-ought dichotomy. They are prepared to learn from economists, psychologists, and other empirical scientists who offer information about the nature of the good life and of values. Social psychologists who study community or corporate culture suggest a close relationship between organizational and ethical features, much as Aristotle saw a close relationship between politics and ethics. We should infer from all this that in business ethics there is good reason for philosophers and organization scholars to work closely together. (shrink)

It may be nearly impossible to use standard principles to make a decision about a complex ethical case. The best decision, say virtue ethicists in the Aristotelian tradition, is often one that is made by a person of good character who knows the salient facts of the case and can frame the situation appropriately. In this respect ethical decisions and strategic decisions are similar. Rationality plays a role in good ethical decision-making, but virtue ethicists emphasize the importance of intuitions and (...) emotions as well.Virtue ethics suggests a reconciliation of the factual and the normative. Virtues may explain as well as justify actions. The same is true of other psychological states and events. That psychological terms have normative implications does not render them useless in explanation. As Aristotle does not distinguish cleanly between the normative and empirical, so many moral philosophers today reject the is-ought dichotomy. They are prepared to learn from economists, psychologists, and other empirical scientists who offer information about the nature of the good life and of values. Social psychologists who study community or corporate culture suggest a close relationship between organizational and ethical features, much as Aristotle saw a close relationship between politics and ethics. We should infer from all this that in business ethics there is good reason for philosophers and organization scholars to work closely together. (shrink)

This study investigated attitudes toward the use of deception in negotiation, with particular attention to the distinction between deception regarding the informational elements of the interaction (e.g., lying about or misrepresenting needs or preferences) and deception about emotional elements (e.g., misrepresenting one's emotional state). We examined how individuals judge the relative ethical appropriateness of these alternative forms of deception, and how these judgments relate to negotiator performance and long-run reputation. Individuals viewed emotionally misleading tactics as more ethically appropriate to use (...) in negotiation than informational deception. Approval of deception predicted negotiator performance in a negotiation simulation and also general reputation as a negotiator, but the nature of these relationships depended on the kind of deception involved. (shrink)

This paper explores the relationship of various trait emotions to the ethical choices of 189 college students who completed a managerial decision-making task as part of an in-basket exercise in a laboratory setting. Prior research regarding emotion influences on ethical decision-making and linkages between emotions and cognition informed hypotheses about how different types of emotions impact ethical choices. Findings supported our expectations that positive and negative emotions classified as active would be more strongly related to interpersonally-directed ethical choices than to (...) organizationally-directed ones, and that passive emotions would be less related to ethical choices than active emotions. Implications for ethical decision-making research and organizational practices are discussed. (shrink)

Two correlational studies tested whether personality differences in empathy and perspective taking differentially relate to disapproval of unethical negotiation strategies, such as lies and bribes. Across both studies, empathy, but not perspective taking, discouraged attacking opponents' networks, misrepresentation, inappropriate information gathering, and feigning emotions to manipulate opponents. These results suggest that unethical bargaining is more likely to be deterred by empathy than by perspective taking. Study 2 also tested whether individual differences in guilt proneness and shame proneness inhibited the endorsement (...) of unethical bargaining tactics. Guilt proneness predicted disapproval of false promises and misrepresentation. Empathy did not predict disapproval of false promises when guilt proneness was included in the analysis. The comparatively private nature of the sin of false promises suggests that private ethical breaches are more likely to be deterred by anticipated guilt, while ethical breaches with clear interpersonal consequences are more likely to be deterred by empathy. (shrink)

The main purpose of this article is to elucidate the bright connotation of the self-conscious emotion of pride, namely authentic pride, in the broader context of behavioral governance literature. Scholars in the field of psychology suggest that authentic and hubristic pride represent two facets of the same emotional construct. Yet, our review indicates that in the extant governance research pride has been treated as an exclusively dark leadership trait or self-attribution bias, thereby placing hubris among the main causes of managerial (...) failure. After conceptually differentiating the two aspects of pride, we identify and discuss the myriad of positive governance implications stemming from firm members' tendency toward authentic pride. We argue that the examination of both positive and negative facets of pride constitutes a critical complement to the existing governance landscape largely dominated by economic theories and formal mechanisms of control. This article allows practitioners to better understand the emotional processes involved in governance that are needed to predict the workplace effectiveness of employees, identify individuals prone to experience authentic pride in the early stages of the recruitment process, and design specific interventions for acting upon and putting emotional energy into productive use. (shrink)

Moral emotions represent a key element of our human moral apparatus, influencing the link between moral standards and moral behavior. This chapter reviews current theory and research on moral emotions. We first focus on a triad of negatively valenced "self-conscious" emotions - shame, guilt, and embarrassment. As in previous decades, much research remains focused on shame and guilt. We review current thinking on the distinction between shame and guilt, and the relative advantages and disadvantages of these two moral emotions. Several (...) new areas of research are highlighted: research on the domain-specific phenomenon of body shame, styles of coping with shame, psychobiological aspects of shame, the link between childhood abuse and later proneness to shame, and the phenomena of vicarious or "collective" experiences of shame and guilt. In recent years, the concept of moral emotions has been expanded to include several positive emotions - elevation, gratitude, and the sometimes morally relevant experience of pride. Finally, we discuss briefly a morally relevant emotional process - other-oriented empathy. (shrink)

Recent theory and research are reviewed regarding self-related motives (self-enhancement, self-verification, and self-expansion) and self-conscious emotions (guilt, shame, pride, social anxiety, and embarrassment), with an emphasis on how these motivational and emotional aspects of the self might be related. Specifically, these motives and emotions appear to function to protect people's social well-being. The motives to self-enhance, self-verify, and self-expand are partly rooted in people's concerns with social approval and acceptance, and self-conscious emotions arise in response to events that have real (...) or imagined implications for others' judgments of the individual. Thus, these motives and emotions do not operate to maintain certain states of the self, as some have suggested, but rather to facilitate people's social interactions and relationships. (shrink)