Prior studies in business ethics highlight the role of philanthropy in shaping stakeholders’ perceptions of a firm’s underlying moral tendencies and values. Scholars argue that philanthropy-based character inferences influence whether and how stakeholders engage with firms. We extend this line of reasoning to examine the impact of philanthropy on firms’ contracting costs in the capital market. We posit that philanthropy-based character inferences reduce investors’ agency concerns, thereby reducing firms’ cost of capital. We also posit that the strength of the philanthropy–cost (...) of capital relationship is contingent on uncertainty regarding a firm’s character, visibility of a firm, and prevailing philanthropic norms. We test and find support for our arguments in a longitudinal study of philanthropy and the cost of capital. Our findings have implications for business ethics research on corporate philanthropy and corporate social performance and for organizational research on social judgment. (shrink)

This paper examines the question of why consumers engage in ethical consumption. The authors draw on self-affirmation theory to propose that the choice of an ethical product serves a self-restorative function. Four experiments provide support for this assertion: a self-threat increases consumers’ choice of an ethical option, even when the alternative choice is objectively superior in quantity (Study 1) and product quality (Study 2). Further, restoring self-esteem through positive feedback eliminates this increase in ethical choice (Studies 2 and 3). As (...) an additional test of the robustness of our results, a final study examined the effect of self-threat on choice in a field setting (Study 4). The findings indicate that ethical purchases are not just altruistic. They hold purposeful individual value and can help in the self-restorative process. Implications for managers making decisions regarding investment in ethical product features are discussed. (shrink)

Despite significant ethical advances in recent years, including professional developments in ethical review and codification, research deception continues to be a pervasive practice and contentious focus of debate in the behavioral sciences. Given the disciplines' generally stated ethical standards regarding the use of deceptive procedures, researchers have little practical guidance as to their ethical acceptability in specific research contexts. We use social contract theory to identify the conditions under which deception may or may not be morally permissible and formulate practical (...) recommendations to guide researchers on the ethical employment of deception in behavioral science research. (shrink)

We examined the subjective experiences of young environmentalists who engage in green consumption practices from the theoretical lens of Warde’s :131–153, 2005) practice theory. Data were gathered through 21 photo-elicited, in-depth interviews with young environmentalists. Based on our findings, we postulated a theoretical framework to understand green consumption practices among our informants as a process with three interrelated phases: green credibility seeking, green procurement and prosumption, and green whispers. This inductive investigation revealed various symbolic meanings of green consumption that are (...) instrumental in effectively engaging in green consumption practice and are widely shared among our informants. Our investigation extends the existing literature on green consumption with an alternative theoretical perspective and provides managers with insights into the motivations and practices of green consumers. (shrink)