Winner of the 1975 National Book Award, this brilliant and widely acclaimed book is a powerful philosophical challenge to the most widely held political and social positions of our age--liberal, socialist, and conservative.

The speed of development in Big Data and associated phenomena, such as social media, has surpassed the capacity of the average consumer to understand his or her actions and their knock-on effects. We are moving towards changes in how ethics has to be perceived: away from individual decisions with specific and knowable outcomes, towards actions by many unaware that they may have taken actions with unintended consequences for anyone. Responses will require a rethinking of ethical choices, the lack thereof and (...) how this will guide scientists, governments, and corporate agencies in handling Big Data. This essay elaborates on the ways Big Data impacts on ethical conceptions. (shrink)

Over the years, companies have adopted hiring algorithms because they promise wider job candidate pools, lower recruitment costs and less human bias. Despite these promises, they also bring perils. Using them can inflict unintentional harms on individual human rights. These include the five human rights to work, equality and nondiscrimination, privacy, free expression and free association. Despite the human rights harms of hiring algorithms, the AI ethics literature has predominantly focused on abstract ethical principles. This is problematic for two reasons. (...) First, AI principles have been criticized for being vague and not actionable. Second, the use of vague ethical principles to discuss algorithmic risks does not provide any accountability. This lack of accountability creates an algorithmic accountability gap. Closing this gap is crucial because, without accountability, the use of hiring algorithms can lead to discrimination and unequal access to employment opportunities. This paper makes two contributions to the AI ethics literature. First, it frames the ethical risks of hiring algorithms using international human rights law as a universal standard for determining algorithmic accountability. Second, it evaluates four types of algorithmic impact assessments in terms of how effectively they address the five human rights of job applicants implicated in hiring algorithms. It determines which of the assessments can help companies audit their hiring algorithms and close the algorithmic accountability gap. (shrink)

ABSTRACT:Technological advances introduce the possibility that, in the future, firms will be able to use big-data analysis to discover and offer consumers their individual reservation price. This can generate some interesting benefits, such as a better state of affairs in terms of equality of both welfare and resources, as well as increased social welfare. However, these benefits are countered by considerations of relational equality. This article takes up the market-failures approach as its basis to demonstrate what is wrong with using (...) big data to personalize prices. The article offers an improvement to the market-failures approach and argues that what is wrong with using big data to personalize prices is that it unfairly undermines consumers’ ability to benefit from the market, which is the very point of having a market. (shrink)

We are living in an algorithmic age where mathematics and computer science are coming together in powerful new ways to influence, shape and guide our behaviour and the governance of our societies. As these algorithmic governance structures proliferate, it is vital that we ensure their effectiveness and legitimacy. That is, we need to ensure that they are an effective means for achieving a legitimate policy goal that are also procedurally fair, open and unbiased. But how can we ensure that algorithmic (...) governance structures are both? This article shares the results of a collective intelligence workshop that addressed exactly this question. The workshop brought together a multidisciplinary group of scholars to consider barriers to legitimate and effective algorithmic governance and the research methods needed to address the nature and impact of specific barriers. An interactive management workshop technique was used to harness the collective intelligence of this multidisciplinary group. This method enabled participants to produce a framework and research agenda for those who are concerned about algorithmic governance. We outline this research agenda below, providing a detailed map of key research themes, questions and methods that our workshop felt ought to be pursued. This builds upon existing work on research agendas for critical algorithm studies in a unique way through the method of collective intelligence. (shrink)

Firms increasingly deploy algorithmic pricing approaches to determine what to charge for their goods and services. Algorithmic pricing can discriminate prices both dynamically over time and personally depending on individual consumer information. Although legal, the ethicality of such approaches needs to be examined as often they trigger moral concerns and sometimes outrage. In this research paper, we provide an overview and discussion of the ethical challenges germane to algorithmic pricing. As a basis for our discussion, we perform a systematic interpretative (...) review of 315 related articles on dynamic and personalized pricing as well as pricing algorithms in general. We then use this review to define the term algorithmic pricing and map its key elements at the micro-, meso-, and macro levels from a business and marketing ethics perspective. Thus, we can identify morally ambivalent topics that call for deeper exploration by future research. (shrink)

This paper focuses attention on the stakeholder attribute of legitimacy. Drawing upon institutional and stakeholder theories, I develop a framework of stakeholder legitimacy based on its three aspects—legitimacy of the stakeholder as an entity, legitimacy of the stakeholder’s claim, and legitimacy of the stakeholder’s behavior. I assume that stakeholder legitimacy is socially constructed by management and that each of its three aspects exists in degree in the manager’s perception. I discuss how these aspects interact and change over time, and propose (...) an agenda for future research on stakeholder legitimacy. (shrink)

Recent rapid advances in Artificial Intelligence and Machine Learning have raised many questions about the regulatory and governance mechanisms for autonomous machines. Many commentators, scholars, and policy-makers now call for ensuring that algorithms governing our lives are transparent, fair, and accountable. Here, I propose a conceptual framework for the regulation of AI and algorithmic systems. I argue that we need tools to program, debug and maintain an algorithmic social contract, a pact between various human stakeholders, mediated by machines. To achieve (...) this, we can adapt the concept of human-in-the-loop from the fields of modeling and simulation, and interactive machine learning. In particular, I propose an agenda I call society-in-the-loop, which combines the HITL control paradigm with mechanisms for negotiating the values of various stakeholders affected by AI systems, and monitoring compliance with the agreement. In short, ‘SITL = HITL + Social Contract.’. (shrink)

Declining levels of stakeholder trust in business are of concern to business executives and scholars for legitimacy- and performance-related effects. Research in the area of stakeholder trust in business is nascent; therefore, the trust formation process has been rarely examined at the stakeholder level. Furthermore, the role of personal values as one significant influence in trust formation has been under-researched. In this paper, we develop a contingency model for stakeholder trust formation based on the effects of stakeholder-specific vulnerability and personal (...) values of the trustor. Using a factorial vignette methodology, we find that Schwartz’s value set interacts with stakeholder roles so that trustworthiness signals of competence and character play differing roles during trust formation. These results inform stakeholder trust research, organizational trust research, and research in personal values. The research also informs managers tasked with rebuilding stakeholder trust in business. (shrink)

Stakeholder theory has become a central issue in the literature on business ethics / business and society. There are, however, a number of problems with stakeholder theory as currently understood. Among these are: 1) the lack of a coherent justificatory framework, 2) the problem of adjudicating between stakeholders, and 3) the problem of stakeholder identification. In this essay, I propose that a possible source of obligations to stakeholders is the principle of fairness (or fair play) as discussed in the political (...) philosophic literature of Rawls, Simmons, and Cullity among others. The principle of fairness states that, “Whenever persons or groups of persons voluntarily accept the benefits of a mutually beneficial scheme of co-operation requiring sacrifice or contribution on the parts of the participants and there exists the possibility of free-riding, there exist obligations of fairness on the part of these persons or groups to co-operate in proportion to the benefits accepted.” In this essay I discuss the gaps in the current stakeholder literature, elucidate and defend a principle of fairness that fills the gap, compare the fairness model to other similar models of business ethics, and draw some conclusions for the future of stakeholder theory. (shrink)

Modern society is challenged by a loss of efficiency in national governance systems values, and lifestyles. Corporate social responsibility (CSR) discourse builds upon a conception of organizational legitimacy that does not appropriately reflect these changes. The problems arise from the a-political role of the corporation in the concepts of cognitive and pragmatic legitimacy, which are based on compliance to national law and on relatively homogeneous and stable societal expectations on the one hand and widely accepted rhetoric assuming that all members (...) of society benefit from capitalist production on the other. We therefore propose a fundamental shift to moral legitimacy, from an output and power oriented approach to an input related and discursive concept of legitimacy. This shift creates a new basis of legitimacy and involves organizations in processes of active justification vis-à-vis society rather than simply responding to the demands of powerful groups. We consider this a step towards the politicization of the corporation and attempt to re-embed the debate on corporate legitimacy into its broader context of political theory, while reflecting the recent turn from a liberal to a deliberative concept of democracy. (shrink)

Accounting firms are reporting the use of Artificial Intelligence in their auditing and advisory functions, citing benefits such as time savings, faster data analysis, increased levels of accuracy, more in-depth insight into business processes, and enhanced client service. AI, an emerging technology that aims to mimic the cognitive skills and judgment of humans, promises competitive advantages to the adopter. As a result, all the Big 4 firms are reporting its use and their plans to continue with this innovation in areas (...) such as audit planning risk assessments, tests of transactions, analytics, and the preparation of audit work-papers, among other uses. As the uses and benefits of AI continue to emerge within the auditing profession, there is a gradual awakening to the fact that unintended consequences may also arise. Thus, we heed to the call of numerous researchers to not only explore the benefits of AI but also investigate the ethical implications of the use of this emerging technology. By combining two futuristic ethical frameworks, we forecast the ethical implications of the use of AI in auditing, given its inherent features, nature, and intended functions. We provide a conceptual analysis of the practical ethical and social issues surrounding AI, using past studies as well as our inferences based on the reported use of the technology by auditing firms. Beyond the exploration of these issues, we also discuss the responsibility for the policy and governance of emerging technology. (shrink)

Algorithms silently structure our lives. Algorithms can determine whether someone is hired, promoted, offered a loan, or provided housing as well as determine which political ads and news articles consumers see. Yet, the responsibility for algorithms in these important decisions is not clear. This article identifies whether developers have a responsibility for their algorithms later in use, what those firms are responsible for, and the normative grounding for that responsibility. I conceptualize algorithms as value-laden, rather than neutral, in that algorithms (...) create moral consequences, reinforce or undercut ethical principles, and enable or diminish stakeholder rights and dignity. In addition, algorithms are an important actor in ethical decisions and influence the delegation of roles and responsibilities within these decisions. As such, firms should be responsible not only for the value-laden-ness of an algorithm but also for designing who-does-what within the algorithmic decision. As such, firms developing algorithms are accountable for designing how large a role individual will be permitted to take in the subsequent algorithmic decision. Counter to current arguments, I find that if an algorithm is designed to preclude individuals from taking responsibility within a decision, then the designer of the algorithm should be held accountable for the ethical implications of the algorithm in use. (shrink)

In this paper we argue that transparency of machine learning algorithms, just as explanation, can be defined at different levels of abstraction. We criticize recent attempts to identify the explanation of black box algorithms with making their decisions (post-hoc) interpretable, focusing our discussion on counterfactual explanations. These approaches to explanation simplify the real nature of the black boxes and risk misleading the public about the normative features of a model. We propose a new form of algorithmic transparency, that consists in (...) explaining algorithms as an intentional product, that serves a particular goal, or multiple goals (Daniel Dennet’s design stance) in a given domain of applicability, and that provides a measure of the extent to which such a goal is achieved, and evidence about the way that measure has been reached. We call such idea of algorithmic transparency “design publicity.” We argue that design publicity can be more easily linked with the justification of the use and of the design of the algorithm, and of each individual decision following from it. In comparison to post-hoc explanations of individual algorithmic decisions, design publicity meets a different demand (the demand for impersonal justification) of the explainee. Finally, we argue that when models that pursue justifiable goals (which may include fairness as avoidance of bias towards specific groups) to a justifiable degree are used consistently, the resulting decisions are all justified even if some of them are (unavoidably) based on incorrect predictions. For this argument, we rely on John Rawls’s idea of procedural justice applied to algorithms conceived as institutions. (shrink)

In combating the ongoing global health threat of the COVID-19 pandemic, decision-makers have to take actions based on a multitude of relevant health data with severe potential consequences for the affected patients. Because of their presumed advantages in handling and analyzing vast amounts of data, computer systems of algorithmic decision-making are implemented and substitute humans in decision-making processes. In this study, we focus on a specific application of ADM in contrast to human decision-making, namely the allocation of COVID-19 vaccines to (...) the public. In particular, we elaborate on the role of trust and social group preference on the legitimacy of vaccine allocation. We conducted a survey with a 2 × 2 randomized factorial design among n = 1602 German respondents, in which we utilized distinct decision-making agents and prioritization of a specific social group as design factors. Our findings show that general trust in ADM systems and preference for vaccination of a specific social group influence the legitimacy of vaccine allocation. However, contrary to our expectations, trust in the agent making the decision did not moderate the link between social group preference and legitimacy. Moreover, the effect was also not moderated by the type of decision-maker. We conclude that trustworthy ADM systems must not necessarily lead to the legitimacy of ADM systems. (shrink)

The increasing use of Artificial Intelligence for making decisions in public affairs has sparked a lively debate on the benefits and potential harms of self-learning technologies, ranging from the hopes of fully informed and objectively taken decisions to fear for the destruction of mankind. To prevent the negative outcomes and to achieve accountable systems, many have argued that we need to open up the “black box” of AI decision-making and make it more transparent. Whereas this debate has primarily focused on (...) how transparency can secure high-quality, fair, and reliable decisions, far less attention has been devoted to the role of transparency when it comes to how the general public come to perceive AI decision-making as legitimate and worthy of acceptance. Since relying on coercion is not only normatively problematic but also costly and highly inefficient, perceived legitimacy is fundamental to the democratic system. This paper discusses how transparency in and about AI decision-making can affect the public’s perception of the legitimacy of decisions and decision-makers and produce a framework for analyzing these questions. We argue that a limited form of transparency that focuses on providing justifications for decisions has the potential to provide sufficient ground for perceived legitimacy without producing the harms full transparency would bring. (shrink)

Organizations increasingly rely on algorithm-based HR decision-making to monitor their employees. This trend is reinforced by the technology industry claiming that its decision-making tools are efficient and objective, downplaying their potential biases. In our manuscript, we identify an important challenge arising from the efficiency-driven logic of algorithm-based HR decision-making, namely that it may shift the delicate balance between employees’ personal integrity and compliance more in the direction of compliance. We suggest that critical data literacy, ethical awareness, the use of participatory (...) design methods, and private regulatory regimes within civil society can help overcome these challenges. Our paper contributes to literature on workplace monitoring, critical data studies, personal integrity, and literature at the intersection between HR management and corporate responsibility. (shrink)

Factorial surveys integrate elements of survey research and classical experiments. Using a large number of respondents in a controlled setting, FSs approximate complex and realistic judgment situations through so-called vignettes—that is, carefully designed descriptions of hypothetical people, social situations, or scenarios. Despite being rooted, and predominantly applied, in sociology, FSs are particularly promising for business and society scholars. Given the multiplicity, inherent complexity, and sometimes fuzziness of B&S research objects, conventional research methods inevitably reach their limits. This article, therefore, systematically (...) presents methodological and thematic opportunities for FS studies in B&S research. It is argued that FSs are well suited to dealing with the complex interplay of societal-, organizational-, and individual-level factors in B&S research and to studying the principles underlying human perceptions, attitudes, values, social norms, and behavior. The application of the FS method is illustrated based on a showcase example in the realm of socially responsible investments. As the literature on the conceptualization of FSs is limited, methodological challenges are addressed to guide B&S researchers past the common methodological pitfalls. (shrink)

Recently, business organizations have increasingly turned to a novel form of non-monetary incentives—that is, “gamification,” which refers to a motivation technique using video game elements, such as digital points, badges, and friendly competition in non-game contexts like workplaces. The introduction of gamification to the context of human resource management has immediately become embroiled in serious moral debates. Most notable is the accusation that using gamification as a motivation tool, employers exploit workers. This article offers an in-depth analysis of the moral (...) charge of exploitation. This article maintains that there are no clear grounds for believing that gamification of labor is exploitative and that if gamification of labor involves a wrong or vice, it must be something other than exploitation. (shrink)

Often machine learning programs inherit social patterns reflected in their training data without any directed effort by programmers to include such biases. Computer scientists call this algorithmic bias. This paper explores the relationship between machine bias and human cognitive bias. In it, I argue similarities between algorithmic and cognitive biases indicate a disconcerting sense in which sources of bias emerge out of seemingly innocuous patterns of information processing. The emergent nature of this bias obscures the existence of the bias itself, (...) making it difficult to identify, mitigate, or evaluate using standard resources in epistemology and ethics. I demonstrate these points in the case of mitigation techniques by presenting what I call ‘the Proxy Problem’. One reason biases resist revision is that they rely on proxy attributes, seemingly innocuous attributes that correlate with socially-sensitive attributes, serving as proxies for the socially-sensitive attributes themselves. I argue that in both human and algorithmic domains, this problem presents a common dilemma for mitigation: attempts to discourage reliance on proxy attributes risk a tradeoff with judgement accuracy. This problem, I contend, admits of no purely algorithmic solution. (shrink)

The purpose of this paper is to enter the conversation about stakeholder theory with the goal of clarifying certain foundational issues. I want to show, along with Boatright, that there is no stakeholder paradox, and that the principle on which such a paradox is built, the Separation Thesis, is nicely self-serving to business and ethics academics. If we give up such a thesis we find there is no stakeholder theory but that stakeholder theory becomes a genre that is quite rich. (...) It becomes one of many ways to blend together the central concepts of business with those of ethics. Rather than take each concept of business singly or the whole of “business” together and hold it to the light of ethical standards, we can use the stakeholder concept to create more fine-grained analyses that combine business and ethics; or more simply, we can tell many more, and more interesting, stories about business. (shrink)

In this article, we will outline the principles of stakeholder capitalism and describe how this view rejects problematic assumptions in the current narratives of capitalism. Traditional narratives of capitalism rely upon the assumptions of competition, limited resources, and a winner-take-all mentality as fundamental to business and economic activity. These approaches leave little room for ethical analysis, have a simplistic view of human beings, and focus on value-capture rather than value-creation. We argue these assumptions about capitalism are inadequate and leave four (...) problems in their wake. We wish to reframe the narrative of capitalism around the reinforcing concepts of stakeholders coupled with value creation and trade. If we think about how a society can sustain a system of voluntary value creation and trade, then capitalism can once more become a useful concept. (shrink)

Stakeholder theory has become one of the most important developments in the field of business ethics. While this concept has evolved and gained prominence as a method of integrating ethics into the basic purposes and strategic objectives of the firm, the authors argue that stakeholder theory has retained certain “masculinist” assumptions from the wider business literature that limit its usefulness. The resources of feminist thought, specifically the work of Carol Gilligan, provide a means of reinterpreting the stakeholder concept in a (...) way that overcomes many of the existing limitations. This reading provides a different understanding of the identity and meaning of the firm, specifically in terms of its relationship to stakeholder groups and what it means for a firm to succeed. The alternatives proposed also converge with recent trends in the wider management literature and provide practical guidance for firms which face a myriad of challenges in the increasingly complex and global marketplace. (shrink)

We view an individual’s legitimacy judgment as an attitude. It is influenced by a personal belief system composed of global values and domain-specific beliefs, consistent with the value–attitude system in marketing. Our context is the legitimacy of the Canadian oil sands industry. We hypothesize that an individual’s legitimacy judgment may be influenced by three domain-specific beliefs: the credibility of the industry, environmental non-government organizations, and the mass media. We also examine two global values associated with sustainable development: concern for the (...) environment and concern for economic development. These are expected to have negative and positive effects, respectively, on an individual’s legitimacy judgment and on industry credibility. We also examine if these relationships are influenced by proximity to the oil sands. We test our theory using a mixed methods research design and a structural equation analysis on a survey of 853 residents of Edmonton and Toronto, Canada. We find support for most of our hypotheses. (shrink)

Being a controversial industry, oil companies turn to corporate social responsibility (CSR) as a means to obtain legitimacy. Adopting a case study methodology, this research examines the characteristics of CSR strategies and CSR communication tactics of six oil companies by analyzing their 2011–2012 web site content. We found that all six companies engaged in CSR activities addressing the needs of various stakeholders and had cross-sector partnerships. CSR information on these companies’ web sites was easily accessible, often involving the use of (...) multimedia technologies and sometimes social media platforms. Furthermore, to boost the credibility of their CSR messages, these companies utilized a variety of tactics, such as factual arguments and two-sided messages. In sum, this research unveils the interconnectedness among business strategy, CSR practices, and CSR communication in oil companies’ attempt to gain legitimacy in an environment of controversy. The article ends with a discussion of the theoretical and practical implications of the research findings. (shrink)

The purpose of this paper is to explore the concepts of issue legitimacy and organizational legitimacy, providing a new measure of each construct. The scales were developed and tested using data collected through a statewide survey of Alabama residents. Assessments of issue legitimacy were based on perceptions of direct-to-consumer advertising, whereas assessments of organizational legitimacy were based on perceptions of the pharmaceutical industry as a whole. The findings provide evidence that organizational legitimacy can be reliably measured using a five-item scale (...) and issue legitimacy can be reliably measured using a six-item scale. The implications of the results and potential uses of the scales are discussed. (shrink)

Widespread unethical corporate misconduct in an industry triggers industry-wide crises. This research investigates how industry misconduct affects consumers’ trust in the industry, by incorporating insights from a micro-level psychological aspect of institutions. The conceptual framework proposes that consumer legitimacy judgement lies at the core of industry trust, following an industry-wide crisis. The results demonstrate that perception of normalisation of misconduct affects industry trust through consumer legitimacy judgement. Moreover, the PNM-CLJ-industry trust relationship is stronger during industry-wide crises compared with crises that (...) involve only one firm, and this relationship is not dependent on the frequency of crises. This research contributes to the knowledge of product-harm crisis by deepening understanding of the trust erosion mechanism during industry-wide crises, with a focus on legitimacy judgement. The findings have implications for prevention of industry-wide crises and for boosting ethically desirable business activities. (shrink)

This article looks into the process of searching for new forms of legitimacy among firms through corporate discourse. Through the analysis of annual sustainability reports, we have determined the existence of three types of rhetoric: (1) strategic (embedded in the scientific-economic paradigm); (2) institutional (based on the fundamental constructs of Corporate Social Responsibility theories); and (3) dialectic (which aims at improving the discursive quality between the corporations and their stakeholders). Each one of these refers to a different form of legitimacy (...) and is based on distinct theories of the firm analyzed in this article. We claim that dialectic rhetoric seems to signal a new understanding of the firm's role in society and a search for moral legitimation. However, this new form of rhetoric is still fairly uncommon although its use is growing. Combining theory and business examples, this article may help managers and researchers in the conceptualization of how firms make sense of their role in society and what forms of differentiation they strive for through their rhetoric strategies. (shrink)

This article considers the issue of opacity as a problem for socially consequential mechanisms of classification and ranking, such as spam filters, credit card fraud detection, search engines, news trends, market segmentation and advertising, insurance or loan qualification, and credit scoring. These mechanisms of classification all frequently rely on computational algorithms, and in many cases on machine learning algorithms to do this work. In this article, I draw a distinction between three forms of opacity: opacity as intentional corporate or state (...) secrecy, opacity as technical illiteracy, and an opacity that arises from the characteristics of machine learning algorithms and the scale required to apply them usefully. The analysis in this article gets inside the algorithms themselves. I cite existing literatures in computer science, known industry practices, and do some testing and manipulation of code as a form of lightweight code audit. I argue that recognizing the distinct forms of opacity that may be coming into play in a given application is a key to determining which of a variety of technical and non-technical solutions could help to prevent harm. (shrink)

This article presents results of exploratory research conducted with managers from over 500 Norwegian companies to examine corporate motives for engaging in social initiatives. Three key questions were addressed. First, what do managers in this sample see as the primary reasons their companies engage in activities that benefit society? Second, do motives for such social initiative vary across the industries represented? Third, can further empirical support be provided for the theoretical classifications of social initiative motives outlined in the literature? Previous (...) research on the topic is reviewed, study methods are described, results, are presented, and implications of findings are discussed. The article concludes with the analysis of study limitations and directions for future research. (shrink)

This experimental study examines individuals’ legitimacy judgments. We develop a model that demonstrates the role of attributed motives and corporate credibility for the evaluation of organizational legitimacy and test this model with an experimental vignette study. Our results show that when a corporate activity creates benefits for the firm—in addition to social benefits—individuals attribute more extrinsic motives. Extrinsic motives are ascribed when a corporation is perceived as being driven by external rewards as opposed to an altruistic commitment to a social (...) cause. Extrinsic motives negatively affect corporate credibility and organizational legitimacy judgments. This article contributes to a better understanding of the complex process of organizational legitimacy judgment by shedding light on the individual’s perspective and expounding the relationship between attributed motives, corporate credibility, and organizational legitimacy. (shrink)

Social media companies commonly design their platforms in a way that renders them addictive. Some governments have declared internet addiction a major public health concern, and the World Health Organization has characterized excessive internet use as a growing problem. Our article shows why scholars, policy makers, and the managers of social media companies should treat social media addiction as a serious moral problem. While the benefits of social media are not negligible, we argue that social media addiction raises unique ethical (...) concerns not raised by other, more familiar addictive products, such as alcohol and cigarettes. In particular, we argue that addicting users to social media is impermissible because it unjustifiably harms users in a way that is both demeaning and objectionably exploitative. Importantly, the attention-economy business model of social media companies strongly incentivizes them to perpetrate this wrongdoing. (shrink)

We analyse managerial discourse in corporate communication (‘CEO-speak’) during a 6-month period following a legitimacy-threatening event in the form of an incident in a German nuclear power plant. As discourses express specific stances expressed by a group of people who share particular beliefs and values, they constitute an important means of restoring organisational legitimacy when social rules and norms have been violated. Using an analytical framework based on legitimacy as a process of reciprocal sense-making and consisting of three levels of (...) analysis which capture the relationship between text and context, we investigate the discourse used by CEOs in their initial and subsequent accounts of the incident. We find that CEOs aim to negotiate a resolution between their initial account and organisational audiences’ incongruent interpretations of the event by adopting an ad hoc normative attitude to stakeholders. This manifests itself in the strategic use of the discourse of stakeholder engagement as a means of signalling change, yet maintaining the status quo. It suggests that CEOs strategically use discourse to manufacture organisational audiences’ consent regarding the continued operation of the nuclear power plant affected by the incident. Our findings contribute to the critical corporate communication literature which regards corporate narrative reporting as a means of consolidating the private interests of corporations, rather than increasing transparency and accountability. (shrink)

Fueled by ever-growing amounts of (digital) data and advances in artificial intelligence, decision-making in contemporary societies is increasingly delegated to automated processes. Drawing from social science theories and from the emerging body of research about algorithmic appreciation and algorithmic perceptions, the current study explores the extent to which personal characteristics can be linked to perceptions of automated decision-making by AI, and the boundary conditions of these perceptions, namely the extent to which such perceptions differ across media, (public) health, and judicial (...) contexts. Data from a scenario-based survey experiment with a national sample (N = 958) show that people are by and large concerned about risks and have mixed opinions about fairness and usefulness of automated decision-making at a societal level, with general attitudes influenced by individual characteristics. Interestingly, decisions taken automatically by AI were often evaluated on par or even better than human experts for specific decisions. Theoretical and societal implications about these findings are discussed. (shrink)

This work underscores the importance of answering the question: who are organizational stakeholders? It argues that stakeholder theory is a normative management theory, and there is a need to differentiate between stakeholder and non-stakeholder firms. It further argues that the overall organizational stakeholder orientation indicates how narrowly or broadly organizations define their stakeholders. Therefore, this work attempts to provide a stakeholder salience scheme for stakeholder organizations, i.e., organizations with accommodative and proactive stakeholder orientations. In the process, this work reviews key (...) scholarly contributions and points out some potential weaknesses in these contributions with an aim to develop a new stakeholder typology. This work contributes to the existing literature by: introducing a contingent variable, i.e., organizational strategy, in a stakeholder typology scheme; reaffirming the normative aspect of stakeholder theory by placing normative considerations at the center of stakeholder salience typology; and improving the descriptive validity of stakeholder theory by adding a new stakeholder variable, i.e., organization, in the presented stakeholder salience typology scheme. (shrink)

Tyler conducted a longitudinal study of 1,575 Chicago inhabitants to determine why people obey the law. His findings show that the law is obeyed primarily because people believe in respecting legitimate authority, not because they fear punishment. The author concludes that lawmakers and law enforcers would do much better to make legal systems worthy of respect than to try to instill fear of punishment.

In controversies about technology and society, there is no idea more pro vocative than the notion that technical things have political qualities. At issue is the claim that the machines, structures, and systems of modern material culture can be accurately judged not only for their contributions of efficiency and pro-ductivity, not merely for their positive and negative environmental side effects, but also for the ways in which they can embody specific forms of power and authority. Since ideas of this kind (...) have a persistent and troubling presence in discussions about the meaning of technology, they deserve explicit attention... (shrink)