Stakeholder theory is widely recognized as a management theory, yet very little research has considered its implications for individual managerial decision-making. In the two studies reported here, we used stakeholder theory to examine managerial decisions about balancing stakeholder interests. Results of Study 1 suggest that indivisible resources and unequal levels of stakeholder saliency constrain managers’ efforts to balance stakeholder interests. Resource divisibility also influenced whether managers used a within-decision or an across-decision approach to balance stakeholder interests. In Study 2 we (...) examined instrumental and normative implications of these two approaches. We conclude by considering the contributions of this research. (shrink)

The literature on ethical decision-making is rooted in a cognitive perspective that emphasizes the role of moral judgment. Recent research in interpersonal dynamics, however, has suggested that ethics revolves around an individual’s perceptions and views of others. We draw from both literatures to propose and empirically examine a contingent model. We theorize that whether the individual relies on cognitions about the ethical issue or perceptions of others depends on the level of social consensus surrounding the issue. We test our hypotheses (...) in three studies. Results suggest that not only does social consensus determine whether an individual relies on ethical cognitions about the issue or perceptions of others, but also that an individual’s view of self is an important moderator in these relationships. We conclude by considering implications of this research for theory and practice. (shrink)

Though there are many factors that contribute to the perceived legitimacy of business ethics education, this research focuses on one factor that is given great attention both formally and informally in many business schools: student satisfaction with the course. To understand the nature of student satisfaction, the authors draw from multiple theories with central claims relating expectations with satisfaction. The authors then compare student expectations of business ethics courses with instructor objectives and discover that business ethics courses are not necessarily (...) designed to meet student expectations. The authors speculate that this general mismatch between student expectations and instructor objectives has material consequences. As one example, the authors analyze student evaluations from three business schools and identify a “business ethics course effect”: a negative association between business ethics courses and student evaluations. The authors discuss the implications for business ethics education of a situation where pedagogical objectives and market prescriptions point in different directions. (shrink)

Integrating research on empowering leadership with the literature on power in social psychology, we examine how empowering leaders affect the propensity of followers to engage in deviance. Across a multi-source, multi-wave field study and a controlled laboratory experiment, we find that, compared to the followers of less-empowering leaders, the followers of more empowering leaders feel subjectively more powerful and engage in more deviant behaviors. Moreover, we find that the propensity of empowered followers to engage in more deviance depends on their (...) prosocial attributes. Specifically, empowered followers engage in the highest levels of deviance when they have a weak moral identity and a strong desire for dominance. We further find that empowering leadership does not increase follower deviance when followers either have a strong moral identity or a weak desire for dominance. In sum, although past research suggests that empowering leadership may facilitate productivity and employee engagement, our work demonstrates that it can also cultivate harmful effects, such as increased deviance among certain types of followers. We discuss our theoretical contributions as well as practical implications for practicing empowering leadership. (shrink)

Abstract:The literature contains many recommendations, both explicit and implicit, that suggest how an ethics program ought to be designed. While we recognize the contributions of these works, we also note that these recommendations are typically based on either social scientific theory or data and as a result they tend to discount the moral aspects of ethics programs. To contrast and complement these approaches, we refer to a theory of the right to identify the characteristics of an effective ethics program. We (...) draw from Kant’s ethical theory to identify three guiding principles of a moral ethics program and then apply those principles to the specific components of ethics programs as discussed in the Federal Sentencing Guidelines. Doing so provides insights as to how an ethics program ought to be designed from a moral point of view and sparks discussion of the moral aspects of ethics programs. (shrink)

We theorize that victim anonymity is an important factor in ethical decision making, such that actors engage in more self-interested and unethical behaviors toward anonymous victims than they do toward identifiable victims. Three experiments provided empirical support for this argument. In Study 1, participants withheld more life-saving products from anonymous than from identifiable victims. In Study 2, participants allocated a sum of payment more unfairly when interacting with an anonymous than with an identifiable partner. Finally, in Study 3, participants cheated (...) more from an anonymous than from an identifiable person. Anticipated guilt fully mediated these effects in all three studies. Taken together, our research suggests that anonymous victims may be more likely to incur unethical treatment, which could explain many unethical business behaviors. (shrink)

Abstract:Scholars have developed many theories of international strategy and many theories of international ethics. Separating strategy and ethics in this way, though, perpetuates a perception that profit and ethics are mutually exclusive. Accordingly, I offer a framework that links international strategy and international ethics. I suggest that at an abstract level the strategic concepts of integration and responsiveness and the ethical concepts of justice and caring are concerned with the same theoretical quandaries. Therefore, in any situation there are behaviors that (...) are both integrative and just and/or both responsive and caring, and these behaviors are both strategic and ethical. To demonstrate the potential descriptive and prescriptive value of the framework, I descend the ladders of abstraction associated with these concepts and apply the framework to two business situations. (shrink)

Drawing from existing theory and empirical evidence on mindfulness, we posit that trait mindfulness is associated with less accurate memories of immoral conduct. We report three studies that provide evidence of this argument. One significant implication of this finding is that it provides a more balanced and complete view of mindfulness. Specifically, while mindfulness is widely promoted for its positive effects for employee well‐being, mindfulness may inadvertently promote a biased moral self‐perception based on inaccurate memories of one's past immoral conduct. (...) In a fourth study, we explore this implication and demonstrate that memory mediates the negative relationship between trait mindfulness and self‐reported immoral conduct. This research contributes to literatures on mindfulness, memory, morality, and to the growing body of work assessing the importance of mindfulness. (shrink)

The existing literature provides conflicting evidence of whether a collectivistic value orientation is associated with ethical or unethical behavior. To address this confusion, we integrate collectivism theory and research with prior work on social identity, moral boundedness, group morality, and moral identity to develop a model of the double-edged effects of collectivism on employee conduct. We argue that collectivism is morally bounded depending on who the other is, and thus it inhibits employees’ motivation to engage in unethical pro-self behavior, yet (...) strengthens their motivation to engage in unethical pro-organization behavior. We further predict that these effects are mediated by the psychological mechanism of organizational goal commitment and moderated by a person’s strength of moral identity. Results of three studies conducted in China and the United States and involving both field and experimental data offer strong support for our hypotheses. Theoretical and practical implications of the research are discussed. (shrink)

To better illuminate aspects of stress that are relevant to the moral domain, we present a definition and theoretical model of “moral stress.” Our definition posits that moral stress is a psychological state born of an individual’s uncertainty about his or her ability to fulfill relevant moral obligations. This definition assumes a self-and-others relational basis for moral stress. Accordingly, our model draws from a theory of the self (identity theory) and a theory of others (stakeholder theory) to suggest that this (...) uncertainty arises as a manager faces competing claims for limited resources from multiple stakeholders and/or across multiple role identities. We further propose that the extent to which the manager is attentive to the moral aspects of the claims (i.e., moral attentiveness) moderates these effects. We identify several consequences of managerial moral stress and discuss theoretical, empirical, and practical implications of our approach. Most importantly, we argue that this work paves an important path for considering stress through the lens of morality. (shrink)

Scholars have suggested that the tendency for an individual to perceive him- or herself as more ethical than others might influence the individual''s perceptions of his or her organization''s ethics. The purpose of this study is to consider if and/or when such a relationship exists. A thorough consideration of the nature of perceptions of relative ethicality suggests that a positive self-bias would negatively influence perceptions of organizational ethicality. The results of an empirical study involving working managers and employees of a (...) hospital support that argument. Furthermore, the results indicate that organizational identification, perceived organizational cohesion, and an individual''s insulation also influence individual perceptions of relative organizational ethicality. The findings illuminate this particular phenomenon and further our understanding of the relationship between the individual and the organization, more generally. (shrink)