How tax practitioners approach ethical dilemmas remains generally unexplored in academic literature. We use here Rest’s original Defining Issues Test (Development in judging moral issues. Minneapolis: University of Minnesota Press, 1979; Moral development. Advances in research and theory. New York: Praeger Publishers, 1986), combined with a tax context-specific test and in conjunction with a control group of non-tax specialists, to examine tax practitioners’ moral reasoning in a social and tax context. We investigate: (i) the effect of a tax context on (...) issues raised (finding that practitioners generally reason at lower levels than in social scenarios); (ii) whether the profession attracts people who reason at certain levels (finding that it does not); and (iii) whether practitioners are affected by training/socialization in their professional context (finding that that they are). (shrink)

Despite the so-called ‘paradigm wars’ in many social sciences disciplines in recent decades, debate as to the appropriate philosophical basis for research in business ethics has been comparatively non-existent. Any consideration of paradigm issues in the theoretical business ethics literature is rare and only very occasional references to relevant issues have been made in the empirical journal literature. This is very much the case in the growing fields of cross-cultural business ethics and undergraduate (...) student attitudes, and examples from these fields are used in this article. No typology of the major paradigms available for, or relied upon in, business ethics has been undertaken in the wider journal literature, and this article addresses that gap. It contributes a synthesis of three models of paradigms and a tabulated comparison of ontological, epistemological and methodological assumptions in the context of empirical business ethics research. The author also suggests the likely (and usually unidentified) positivist paradigm assumptions underlying the vast majority of empirical business ethics research published in academic journals and also argues for an increased reliance on less positivist assumptions moving forward. (shrink)

To commemorate 40 years since the founding of the Journal of Business Ethics, the editors-in-chief of the journal have invited the editors to provide commentaries on the future of business ethics. This essay comprises a selection of commentaries aimed at creating dialog around the theme Bringing Excitement to Empirical Business Ethics Research (inspired by the title of the commentary by Babalola and van Gils). These editors, considering the diversity of empirical approaches in (...) business ethics, envisage a future in which quantitative business ethics research is more bold and innovative, as well as reflexive about its techniques, and dialog between quantitative and qualitative research nourishes the enrichment of both. In their commentary, Babalola and van Gils argue that leadership research has stagnated with the use of too narrow a range of perspectives and methods and too many overlapping concepts. They propose that novel insights could be achieved by investigating the lived experience of leadership (through interviews, document analysis, archival data); by focusing on topics of concern to society; by employing different personal, philosophical, or cultural perspectives; and by turning the lens on the heroic leader (through “dark-side” and follower studies). Taking a provocative stance, Bal and Garcia-Lorenzo argue that we need radical voices in current times to enable a better understanding of the psychology underlying ethical transformations. Psychology can support business ethics by not shying away from grander ideas, going beyond the margins of “unethical behaviors harming the organization” and expanding the range of lenses used to studying behavior in context. In the arena of finance and business ethics, Guedhami, Liang, and Shailer emphasize novel data sets and innovative methods. Significantly, they stress that an understanding the intersection of finance and ethics is central to business ethics; financial equality and inclusion are persistent socio-economic and political concerns that are not always framed as ethics issues, yet relevant business policies and practices manifest ethical values. Finally, Charles Cho offers his opinion on the blurry line between the “ethical” versus “social” or “critical” aspects of accounting papers. The Journal of Business Ethics provides fertile ground for innovative, even radical, approaches to quantitative methods (see Zyphur and Pierides in J Bus Ethics 143(1):1–16, https://doi.org/10.1007/s10551-017-3549-8, 2017), as part of a broad goal of ethically reflecting on empirical research. (shrink)

A socioeconomic and demographic analysis of U.S. Google Trends for queries about Business Ethics and Greed is proposed in the context of the 2008 financial crisis. The framework is grounded in the ethical decision-making literature. Two models using micro and macro-type variables are tested using GLM and GEE regression techniques. The frequency of these Google queries varies positively with the ratio of females, educational attainment, younger adult age, some measures of economic hardship or inequalities, and the lesser (...) the weight of the finance industry represented in each State. The frequency of queries intensifies for these same socioeconomic and demographic categories, in the aftermath of the financial crisis. This article is the first to study the salience of business ethics as an issue in the empirical literature using a nationwide database. It also provides a first empirical study in the specialized literature on “ethics in a time of crisis”. This study lays a preliminary groundwork to identify pro-ethical reform segments of the population, with practical use for financial regulatory agencies. (shrink)

Managing the relationship with nongovernmental organizations (NGOs) is a key capability for most companies, because dialogue with stakeholders is a requested feature of Corporate Social Responsibility (CSR). This paper analyses the relationship between businesses and NGOs in Spain. By applying grounded theory, the authors summarize this relationship in the dynamics of conflict and cooperation. NGOs' strategies vis-à-vis companies are categorized and the variables explaining different approaches on both companies' and NGOs' side are examined. The paper concludes by placing the private (...) relationship with NGOs in a wider context (the public arena), dominated by the approach-withdrawal dynamics between firms and NGOs. Finally, this paper presents the theory that results from this research. (shrink)

Managing the relationship with nongovernmental organizations (NGOs) is a key capability for most companies, because dialogue with stakeholders is a requested feature of Corporate Social Responsibility (CSR). This paper analyses the relationship between businesses and NGOs in Spain. By applying grounded theory, the authors summarize this relationship in the dynamics of conflict and cooperation. NGOs' strategies vis‐à‐vis companies are categorized and the variables explaining different approaches on both companies' and NGOs' side are examined. The paper concludes by placing the private (...) relationship with NGOs in a wider context (the public arena), dominated by the approach‐withdrawal dynamics between firms and NGOs. Finally, this paper presents the theory that results from this research. (shrink)

In today's complex business world, the question of business ethics is increasingly gaining importance as managers and employees face numerous ethical dilemmas in their jobs. The ethical climate in the Turkish business environment is also at a critical stage, and the business community as a whole is troubled by ethical problems. This study attempts to determine the effect of individual, managerial and organizational factors on the ethical judgments of Turkish managers, and to evaluate the ethical (...) perceptions of these managers. The findings of this study reveal that the ethics score, the measure of ethical judgment, of Turkish managers differs significantly only with respect to gender and that female managers have higher ethics score than male managers. Other individual, managerial and organizational factors considered in this study do not have any significant effect on the ethical judgments of the managers. A comparative analysis between female and male managers in terms of their ranking of the eleven ethical business scenarios, ranking of the sixteen unethical acts, ranking of the factors influencing managers to engage in unethical practices, and ranking of the various parties to whom a company is socially responsible enables the researchers to enlighten the subject of business ethics in Turkey. (shrink)

The impact of business ethics education on socially responsible practitioner behavior is not a new concern. A sizable extant literature base questions pedagogies used and outcomes achieved by the few early studies done in this area. Ensuing research has not produced definitive answers; measurement, methodological, and generalizability issues are prevalent due to the fragmented nature of most work. Given little pre-existing structure, an empirically-based model is needed which both sheds more awareness on the ethics education-business conduct (...) relationship and quantifies the degree of change that the education caused. This study operationalizes a multi-level ethical learning model. Using a survey administered at the start and end of an MBA ethics course,subsequent exploratory factor analysis, a matched t-test of pre and post-course mean scores, and an effect size calculation utilizing the Cohen’s d statistic, the existence of varying degrees of change in ethical outlook after formal ethics education is supported. Model enhancements and the potential for longitudinally following ethical learning from the classroom to the workplace are discussed. (shrink)

This article focuses on the perception of the importance of business ethics among Czech and Slovak entrepreneurs (this includes business owners and managers) within the SME sector. The comparison is based on an analysis of the approach to business ethics according to a set of parameters, namely company size, years in business, and the gender and education of the entrepreneurs. Empirical research was conducted in 2020 on a sample set consisting of 454 (...) respondents in the Czech Republic and 368 respondents in Slovakia. The most important outcome of the research was the finding that business ethics is considered extremely important in both countries. The research results not only revealed that just over 90% of Czech entrepreneurs and 88% of Slovak entrepreneurs within the SME sector agreed that they should take into account the moral and ethical consequences of their decisions, but that the structure of their answers was very similar. Also, of interest were the findings that women were more aware of business ethics than their male counterparts, as were those entrepreneurs who possessed a higher education over those with a secondary education. (shrink)

The impact of business ethics education on socially responsible practitioner behavior is not a new concern. A sizable extant literature base questions pedagogies used and outcomes achieved by the few early studies done in this area. Ensuing research has not produced definitive answers; measurement, methodological, and generalizability issues are prevalent due to the fragmented nature of most work. Given little pre-existing structure, an empirically-based model is needed which both sheds more awareness on the ethics education-business conduct (...) relationship and quantifies the degree of change that the education caused. This study operationalizes a multi-level ethical learning model. Using a survey administered at the start and end of an MBA ethics course,subsequent exploratory factor analysis, a matched t-test of pre and post-course mean scores, and an effect size calculation utilizing the Cohen’s d statistic, the existence of varying degrees of change in ethical outlook after formal ethics education is supported. Model enhancements and the potential for longitudinally following ethical learning from the classroom to the workplace are discussed. (shrink)

This article uses bibliometric analysis to empirically examine research on business ethics published in a broad set of journals, focused over the period 1988-2007. We consider those journals with an emphasis on accounting. First, we determine the citation frequencies of documents to identify the core articles in accounting research with an ethics focus as well as the contributions of influential fields included in the research sphere of these journals. We also employ document co-citation analysis to (...) analyze the scholarly communication patterns that exist within the realm of the specified articles. Second, we utilize social network analysis tools to profile the centrality features of the co-citation network of these documents. (shrink)

This paper examines the impact of integrated reporting on the integration of environmental, social, and governance issues into the business model and the related economic and ESG performance changes. To investigate these internal and external transformational effects of IR, important differences between IR and alternative ESG reporting strategies are worked out. Using three matched samples of companies from around the world for the sample period 2002–2011, IR companies are matched with companies applying no ESG reporting, stand-alone ESG reporting, or (...) ESG reporting in the annual report. The results suggest that IR is a superior mechanism only for the integration of ESG issues into the core business model when comparing IR with the ESG reporting strategies of no ESG reporting and ESG reporting in annual reports. In comparison with, stand-alone ESG reporting, the results indicate that IR is negatively associated with the ESG integration level and with the economic and ESG performance. Moreover, this negative impact is lower for companies that have already implemented ESG management tools prior to the initiation of IR and is stronger for companies residing in countries with legal requirements for the disclosure of ESG information. A separate change analysis reveals that companies do not benefit from a switch from stand-alone ESG reporting to IR. Thus, this paper provides empirical evidence that contradicts the general notion of IR as a superior reporting mechanism, as the benefits of IR are driven by several factors. (shrink)

Victor and Cullen (1988) identified several dimensions of ethical climate that exist in organizations and organizational subunits. We tested the relationship between these dimensions of ethical climate and ethical behavior at different levels of analysis. Using Within and Between Analysis (WABA) (cf. Dansereau, Alutto and Yammarino, 1984), partial support was found for a relationship between dimensions of ethical climate and ethical behavior.

A number of empirical studies have examined business ethics across cultures, focusing primarily on differences in ethical profiles between cultures and groups. When managers consider whether or not to develop a business relationship with those from a different culture, their decision may be affected by actual differences in ethical profiles, but potentially even more so by their perceptions of ethicality in the counterpart culture. The latter issue has been largely ignored in extant empirical research regarding (...) cross-cultural ethical profiles. In this study, we employ a design that allows for a more complete analysis of cross-cultural perspectives, examining both the manner in which selected cultures view themselves and the manner in which those same cultures perceive the ethical profiles of others. To this end, we surveyed master’s students in business fields at several universities in the United States and China—two countries/cultures that engage in a significant amount of business transactions—and examined differences in personal ethical profiles across cultures, differences in one group’s ethical profile and the way it is perceived by the other group, and differences in perceived ethical profiles across cultures; that is, differences in how groups view each other. Findings suggest meaningful discrepancies in the ethical perceptions formed toward the counterpart culture. Results support a role for ethical perceptions in future research, and further examination and inquiry into the development and adaptation of ethical perceptions in cross-cultural business dealings. (shrink)

Proactive corporate social responsibility (CSR) involves business practices adopted voluntarily by firms that go beyond regulatory requirements in order to actively support sustainable economic, social and environmental development, and thereby contribute broadly and positively to society. This empirical study examines the role of the economic, social and environmental dimensions of proactive CSR on the association between three specific capabilities—shared vision, stakeholder management and strategic proactivity—and financial performance in small and medium enterprises (SMEs). Using quantitative data collected from a (...) sample of 171 Australian SMEs in the machinery and equipment manufacturing sector and employing structural equation modelling, we find that the adoption of practices in each CSR dimension by SMEs is influenced slightly differently by each capability, and affects financial performance differentially. The study also demonstrates the importance of the interaction between the three dimensions of proactive CSR in positively moderating the deployment of each individual CSR dimension to generate financial performance. Paying primary attention to the economic dimension of proactive CSR and selectively focusing on social and environmental elements of proactive CSR that drive and support the economic dimension are of key importance to sustainable long-term financial success for SMEs. (shrink)

Purpose This paper aims to analyze the relationships between human resource supply chain management (HRSCM), corporate culture (CC) and the code of business ethics (CBE) in the MENA region. Design/methodology/approach In this study, the author adopted a quantitative approach through an online Google Form survey for the data-gathering process. All questionnaires were distributed to the manufacturing and service firms that are listed in the Chambers of the Industries of Jordan, Saudi Arabia, Morocco and Egypt in the MENA region (...) using a simple random sampling method. About 567 usable and valid responses were retrieved out of 2,077 for analysis, representing a 27.3% response rate. The sample unit for analysis included all middle- and senior-level managers and employees within manufacturing and service firms. The conceptual model was tested using a hypothesis-testing deductive approach. The findings are based on covariance-based analysis and structural equation modeling (SEM) using PLS-SEM software. The author performed convergent validity and discriminant validity tests, and bootstrapping was also applied. Findings The empirical results display a significant and positive association between HRSCM and the CBE. The CC and the CBE tend to be positively and significantly related. Therefore, HRSCM can play a key role in boosting and applying the CBE in firms. For achieving the firm purposes, more attention to the HR personnel should be paid to implement the CBE. The high importance of the CBE becomes necessary for both the department and the firm. Practical implications Such results can provide insightful information for HR personnel, managers and leaders to encourage them to develop and maintain an effective corporate code of conduct within their organizations. Originality/value This paper tries to explore the linkages between HRSCM, CC and CBE in the Middle East region due to the lack of research available that analyzes the relationship between them. Not only that, but it also offers great implications for Middle Eastern businesses. (shrink)

In today's complex business world, the question of business ethics is increasingly gaining importance as managers and employees face numerous ethical dilemmas in their jobs. The ethical climate in the Turkish business environment is also at a critical stage, and the business community as a whole is troubled by ethical problems. This study attempts to determine the effect of individual, managerial and organizational factors on the ethical judgments of Turkish managers, and to evaluate the ethical (...) perceptions of these managers. The findings of this study reveal that the ethics score, the measure of ethical judgment, of Turkish managers differs significantly only with respect to gender and that female managers have higher ethics score than male managers. Other individual, managerial and organizational factors considered in this study do not have any significant effect on the ethical judgments of the managers. A comparative analysis between female and male managers in terms of their ranking of the eleven ethical business scenarios, ranking of the sixteen unethical acts, ranking of the factors influencing managers to engage in unethical practices, and ranking of the various parties to whom a company is socially responsible enables the researchers to enlighten the subject of business ethics in Turkey. (shrink)

The aim of our research is to analyze how different religions influence business ethics. We develop an index of practices in the field of business ethics, made up of 19 items containing practices related to workers, consumers, products, human rights, management of ethical conflicts, and crime prevention. Also, we consider a wide range of religion affiliations. To undertake this research, we use a panel data sample composed of 11,956 firm‐year observations from 18 countries. Drawing on stakeholder (...) theory, we posit some hypotheses based on the religions considered. The results obtained show that a higher percentage of religious adherents in the country where a company does business usually involve the implementation of more ethical practices in the corporate field. These findings are obtained for Christian, Islamic, Jewish, and Hindu religions. In contrast, this does not stand for Buddhist and folk religions. Also, countries where there is no predominant religion do not show a confluence between religion and ethical corporate practices. (shrink)

This paper examines the role of managerial self-interest in the merger market. It looks at factors influencing managers'' merger decisions by analyzing managerial expense preference factors on cross-sectional data employing non-parametric statistical methods. The same factors are examined for acquiring, acquired, and merging firms, and control groups used in each case. The results support the authors'' contention that managerial discretion is a significant motivating factor for mergers. The changes in expense preference factors indicate management decisions which provide conditions allowing management (...) to indulge in management preferred expenditures, while reducing risk to their career. The authors then provide a moral/philosophic framework of ethical analysis for examining manager''s merger decisions, using teleological and deontological theories. They conclude that merger decisions motivated or influenced by self-interest are unethical and, in the process, provide managers facing a merger decision with a framework for making an ethical decision. (shrink)

Business Ethics, the Environment & Responsibility, Volume 31, Issue 1, Page 80-99, January 2022.

This article studies the idea of Corporate Social Performance (CSP) from a critical perspective using empirical elements derived from analysis of year 2000 ARESE data. ARESE is the French first mover social rating agency providing quantified data about the Social Performance of French companies. The paper starts out by reviewing leading CSP models and discussing problems inherent to the measurement of this construct before going on to present and analyse ARESE data - whose suitability for existing models will (...) be discussed. (shrink)

Business Ethics, the Environment & Responsibility, EarlyView.

The scope of the paper is to investigate whether e-learning is a good alternative to achieve business ethics teaching goals in the challenging context of disembedded economies. To achieve this goal, I used various interdisciplinary methods and approaches, content analysis of the relevant literature, and a case study. Firstly, I focus on the current challenges of business ethics teaching. Then, based on my experience of teaching business ethics in various forms, I distinguish the (...) methods applied within them and evaluate them, taking as criteria the cognitive, applicative, and reflective goals of teaching business ethics. Models and theories of educational psychology provide a framework to distinguish some elements that are responsible for the learning success of the student in terms of the defined teaching goal. Empirical results show that although e-learning scored best when it comes to achieving three differentiated goals of business ethics teaching, it is followed closely by seminars. This leads to the conclusion that perhaps a hybrid form, containing e-learning and seminars, would be the optimal way to achieve the goals. (shrink)

Vocational ethics and vocational moral socialization are important for the business ethical climate in a given country and in a given industry, but have not received attention in the literature. Our article suggests vocational ethics as a legitimate sub-specialty for business ethics research and development. The article addresses the exposure of vocational students to a combination of vocational school-based and workplace-based socialization, and outlines an agenda for teaching-oriented research and research-based teaching. More specifically, we first (...) draft a conceptual frame of reference and then report results and experiences from a scenario-based pilot study at one of the biggest vocational schools in the country. As a third step such a preliminary situation analysis inspires a number of suggestions for how one could start with developing this field, practically, empirically and theoretically. (shrink)

This article focusses on corporate attitudes to stakeholder environmental pressures in Argentina. It uses a cross section survey of 505 CEOs of Argentinean firms to gather information on environmental attitudes and a stakeholder theory framework to design and interpret the statistical analyses. It is underpinned by theoretical and empirical findings in the literature on stakeholder management, targeting in particular studies that deal with corporate social responsibility (CSR) in Latin America. Its general aim is to gain a deeper empirical (...) understanding of the coherence between managers' perceptions of stakeholder pressures and the importance they are given in corporate CSR strategies through an empirical investigation of environmental management (EM) decisions. In doing so, it uncovers general differences in the way firms perceive and treat groups of stakeholders. It also detects variations across firms, observing that some are typically proactive in their response to stakeholder pressures whilst others are less responsive. Profiling the various stakeholder networks and the corporate response strategies in this way encourages the development of stakeholder-focussed policies and corporate strategies that emphasise communications, awareness and a clear sense of direction. It concludes that CSR appears to be more effective in the protection of the environment than previously reported. Although this study focusses on EM in Argentina, the findings are more generally applicable. (shrink)

Scholars have suggested that leaders’ ethical failures at the beginning of the twenty-first century have raised awareness about the importance of ethical leadership (EL). Yet, there has been no systematic effort to evaluate whether this awareness indeed led to changes in EL or how followers react to this leadership style over time. To address this gap, we examine the evolution in EL means, variability, and its associations with follower outcomes between 2004 and 2019. Our cross-temporal meta-analysis included 359 independent (...) samples from 314 studies published between 2005 and 2020 and focused on followers’ ratings of their leaders using the Ethical Leadership Scale (ELS; Brown et al., in Organizational Behavior and Human Decision Processes, 97(2), 117–134, 2005). Using cubic spline meta-regressions, our results indicated no global changes in EL mean levels and variability across the 15-year period. Nevertheless, country-level comparisons revealed different EL-trends in China (i.e. decrease) versus the United States (i.e. stable), and further moderation analyses highlighted the role of cultural value dimensions and national corruption rates. Finally, we also found that the relationship between EL and desirable follower outcomes (e.g. organizational citizenship behavior) became gradually stronger over time on a global level. These results provide a solid empirical basis to evaluate cross-temporal trends in EL and its (changing) impact on follower outcomes across the globe. (shrink)

In this re-visioning, business ethics would integrate feminist theories and pedagogy which include the diversity of women in terms of race/ethnicity, class and sexual orientation, thereby expanding its coverage to include issues of power, gender, cultural and theoretical conceptualizations, both in the conceptualization of morality, as well as in ethical constructs of analysis. My research indicates that the integration of feminist scholarship, ethics and pedagogy would make it possible to teach ethical decision making, and ultimately increase (...) the likelihood of ethical behavior, by showing students how to harness the multi-cultural ways of thinking needed to resolve ever more complex organizational problems.Use of the four-stage model I propose would effectively address the three major issues which make teaching business ethics in a new way to critical. The curricula, as modified, would present enriched ethical theories which are contextual and grounded in experience and which grant the connected nature of all organizational stakeholders. By recreating personal identity, autonomy and power as a theories of community, teaching its responsible use would be easier. Expanding the definition of business ethics to include authenticity and mutuality would move it beyond "social responsibility" to a model of interrelationship which encourage principled thinking leading to more ethical behavior. By combing empirically connected ethical theories, and conflict resolution techniques, ethical precepts can be molded into more usable curriculum models. (shrink)

The social banking market constitutes a small but rapidly growing submarket of the global banking sector. Due to an explicit commitment to sustainability, social banking is a segment of banking services which is not exclusively focused on economic performance criteria, but pursues ecological and social goal dimensions on an equal footing. Information on the number and reachability of potential social banking customers is essential for social banks to further promote sustainable consumption in finance. In scientific research, social banking is considered (...) a relatively new field, still lacking empirical analyses regarding the market size and specific consumer behaviour. This study addresses the research gap by generating first insights into the German social banking market. Based on an online survey using an adaptive conjoint analysis, a large data set covering 3537 respondents was compiled. Sample 1 comprises 2896 respondents who are customers of three major social banks in Germany. Sample 2 covers the remaining 641 respondents who represent the German adult population and exclusively buy from conventional banks. Logistic regression modelling reveals that social banking customers differ significantly from their conventional counterparts regarding several socio-demographic, behavioural and psychographic factors. In comparison with conventional banking customers, social banking customers tend to be younger, higher educated and located in larger places of residence. Contrary to existing research on socially responsible investors, they are male to a higher proportion than female. Moreover, social banking customers demonstrate stronger sustainable buying patterns and weaker preferences for financial, but stronger preferences for social return than conventional banking customers. The results further indicate a considerable untapped growth potential for social banks by uncovering a market size ranging between 10 and 26% of the German adult population. Finally, suggestions for marketing strategies and future research are given. (shrink)

Joining voluntary thematic initiatives can be a means for firms to legitimate their business activities. However, a lack of review mechanisms could create incentives for free-riding. This might lead to a lower commitment to the initiative’s principles, and endanger its credibility and its members’ legitimacy benefits. Whether members of voluntary initiatives take advantage of the opportunity to free-ride has not been analyzed empirically so far. To fill this research gap, we investigate from an institutional theory perspective the actual implementation (...) behavior of publicly listed signatories of the United Nations Principles for Responsible Investment (UN PRI) in a difference-in-differences and an event study setting. Our empirical results show that, after signing, UN PRI signatories integrate environmental, social, and governance (ESG) criteria in their business activities significantly more than matched non-signatories from the financial sector, indicating the commitment of the signatories to the UN PRI in general. However, while the initial members show a high commitment to the initiative’s principles by increasing their ESG integration performance substantially, new members signing at a later stage of the initiative perform considerably less, and thus undermine the UN PRI’s credibility. We derive implications for voluntary thematic initiatives to avoid such a development. (shrink)

Influential or frequently cited business ethics research does not appear in a vacuum; our study reveals its predominant sources and contributors by discipline. By examining citations from articles published in three top business ethics journals (Journal of Business Ethics, Business Ethics Quarterly and Business Ethics: A European Review) over the period 2004–2008, we document that the preponderance of influential business ethics research comes primarily from the management faculty. In (...) addition, management journals and management books are the predominant sources for influential business ethics research. Further, among the management fields, organizational behavior and organizational structure predominate leadership and strategy as the major subject areas for influential business ethics research, suggesting that this influential body of research is focused on a micro rather than on a macro context. These empirical results lend credence to the perception that there is a silo effect in influential business ethics research and suggest that business ethics research in a micro context might have permeated to the teaching of business ethics. (shrink)

Influential or frequently cited business ethics research does not appear in a vacuum; our study reveals its predominant sources and contributors by discipline. By examining citations from articles published in three top business ethics journals (Journal of Business Ethics, Business Ethics Quarterly and Business Ethics: A European Review) over the period 2004–2008, we document that the preponderance of influential business ethics research comes primarily from the management faculty. In (...) addition, management journals and management books are the predominant sources for influential business ethics research. Further, among the management fields, organizational behavior and organizational structure predominate leadership and strategy as the major subject areas for influential business ethics research, suggesting that this influential body of research is focused on a micro rather than on a macro context. These empirical results lend credence to the perception that there is a silo effect in influential business ethics research and suggest that business ethics research in a micro context might have permeated to the teaching of business ethics. (shrink)

While business ethics has generated a great deal of research internationally over the last few decades, academic reviews of the business ethics literature remain limited. Moreover, there has been little attempt to date to analyze this literature specifically in the Greater China region, which has been experiencing rapid socioeconomic growth and dynamic evolution of business ethics in recent decades. This paper addresses this research gap by undertaking a comprehensive and critical appraisal of the (...) class='Hi'>business ethics literature on Greater China. In particular, it maps out the existing research findings, identifies limitations in methodology, and suggests future directions for business ethics research in this region. The findings indicate that the scholarly interests cover 24 research themes, including corporate social responsibility and social performance; ethical beliefs, judgment, values, decision-making, and culture; workplace ethics and behavior; marketing ethics and consumer behavior; and sustainability. This review reveals a growing imbalance between empirical and conceptual/theoretical studies on business ethics. In addition, the published works covered in this review heavily rely on survey method and convenience sampling, with a predominant focus on a single individual level of analysis. Importantly, this study identifies four directions for future research: contextualized theoretical development, addressing multilevel research, developing research design tailored to the Chinese context, and ensuring more diversified and rigorous data collection. (shrink)

Within discourse theory, language is seen as constitutive of reality. Furthermore, facts and values are viewed as inseparable. This has consequences for business ethics. In this paper the relationship between discourse theory and business ethics is discussed. Both the descriptive and prescriptive aspects of business ethics are taken into account. Furthermore, an example of an empirical study is presented. A discourse analysis is conducted to answer the questions of how bankers in Holland (...) conceptualize and thus treat their customers and whether there are differences between the largest three banks. The article contains the description of five different discourses on customers within the banks. (shrink)

The effectiveness of complaint handling and service recovery policies in customer retention has been the focus of both scholars and service organizations. In the past decade, Justice Theory has provided the basis of the dominant theoretical framework for complaint management and service recovery. However, it does not explicitly address unfair trade practices, which constitute an ethical issue. Favorable outcomes in complaint handling may not be able to restore the reputation of a company and the potential harm perceived by consumers. Using (...) face-to-face interviews, this study applies Fairness Theory to explore the psychological responses of consumers in the post-complaint phase, particularly in ethical judgment. The findings suggest that an unfavorable outcome in the post-complaint stage leads to counterfactual thinking by the consumer about the consumer's state of well-being. The complaint must be due to the discretionary actions of the service provider whose accountability is assessed. Those harmful actions are then judged against an ethical standard. Explanations can reduce blame, and their effectiveness is moderated by outcome favorability but not ethical judgment. Favorable outcome, captured by "Would Perception," has only limited influence on Perceived Potential Harm (PPH), which is an important determinant of ethical judgment. This study makes both theoretical and practical contributions. It is the first study to validate Fairness Theory empirically and apply it to complaint handling as a complement of Justice Theory in the information and communication technology (ICT) service context. The study indicates that customers may condemn a service provider because of PPH even though the outcome is favorable. Unfair trade practices are what make customers hate ICT service providers. (shrink)

The use of corporate ethical codes has been increasing. It is argued that the use of ethical codes solely as an instrument in a company’s image management is morally questionable. Therefore, the introduction and use of ethical codes must have the intention of achieving behavioural change or the maintenance of already superior behaviour. This change or superior behaviour may apply to ethics in general, but also to the different sub‐structures of ethics, namely the areas of reliability ethics, (...) human ethics, capability ethics and future ethics. Previous research has, with some exceptions, failed to demonstrate that the introduction of ethical codes has had any behavioural effect. A survey study of Norwegian professionals in business is reported here. Using the flexibility that a multivariate analysis provides, the existence or non‐existence of ethical codes, and their influence on attitudinal differences across the four ethical sub‐structures is tested. In the following discussion, three lines of argument are used, drawing on logical, social and managerial approaches, to explain why the codes do exist and yet do not seem to influence the members of a business organisation. Finally, the paper suggests some implications for business practice and for future research. (shrink)

The use of corporate ethical codes has been increasing. It is argued that the use of ethical codes solely as an instrument in a company’s image management is morally questionable. Therefore, the introduction and use of ethical codes must have the intention of achieving behavioural change or the maintenance of already superior behaviour. This change or superior behaviour may apply to ethics in general, but also to the different sub‐structures of ethics, namely the areas of reliability ethics, (...) human ethics, capability ethics and future ethics. Previous research has, with some exceptions, failed to demonstrate that the introduction of ethical codes has had any behavioural effect. A survey study of Norwegian professionals (N=449) in business is reported here. Using the flexibility that a multivariate analysis provides, the existence or non‐existence of ethical codes, and their influence on attitudinal differences across the four ethical sub‐structures is tested. In the following discussion, three lines of argument are used, drawing on logical, social and managerial approaches, to explain why the codes do exist and yet do not seem to influence the members of a business organisation. Finally, the paper suggests some implications for business practice and for future research. (shrink)

This paper builds on previous literature on corporate governance and sustainability by studying the relation between the adoption of multiple voting shares (MVS) and environmental, social and governance (ESG) performance. More specifically, it hypothesises that controlled companies with MVS have lower sustainability performance than controlled companies without MVS because of different shareholders incentives. We rely on a proprietary dataset that includes 1,940 firm-year observations from 11 European countries, between 2016 and 2018 and we conduct multivariate analyses. To account for endogeneity (...) and to further strengthen the results, we performed a difference-in-differences (diff-in-diff) analysis. We find that companies controlled by a dominant shareholder through MVS have lower sustainability performance compared to controlled companies without MVS. (shrink)

Abstract:Social contract is rapidly becoming one of the significant alternatives for analyzing ethical issues in business. Contractarian approaches emphasizing consent as a means of justifying principles can provide needed context for rendering normative judgements concerning economic behaviors. Current research issues include developing tests of consent for both hypothetical and extant social contracts, and empirically testing the assumptions of the major contractarian approaches. Open questions include exploring the relationship between contractarian business ethics and other approaches, such as stakeholder (...) management and virtue based ethics; and analysis of the intersection of contractarian approaches with the findings and assumptions of the field of moral psychology. Finally, the managerial utility of social contract based approaches needs to be explored with emphasis on identifying “translator” concepts. (shrink)

Reviews of business ethics usually differentiate the field in terms of prescription as opposed to description: the application of normative ethical theory verses empirical analysis. Despite recent departures from this dualism, through the elaboration of what has been called postmodern business ethics, the metatheoretical basis of this (increasing) pluralism of business ethics remains opaque. This paper attempts to provide some reflexive clarification and, using codes of ethics as an example, to show (...) that the diversity of business ethics is neither chaotic nor haphazard. It explores how variable metatheoretical assumptions about the epistemic status of ethical and social scientific knowledge systematically lead to the constitution of four distinct modes of engagement in business ethics: prescriptive ethics; descriptive ethics; postmodern ethics; and critical ethics. This diversity is illustrated, with examples from the relevant literatures, in terms of variation in: the aims of business ethics; its organisational focus; the role of the business ethicist; how corporate codes of ethics are construed; the internal contradictions and tensions that arise. We conclude by examining the pre-paradigmatic status of these four modes of engagement and speculating about their future. (shrink)

Abstract:Social contract is rapidly becoming one of the significant alternatives for analyzing ethical issues in business. Contractarian approaches emphasizing consent as a means of justifying principles can provide needed context for rendering normative judgements concerning economic behaviors. Current research issues include developing tests of consent for both hypothetical and extant social contracts, and empirically testing the assumptions of the major contractarian approaches. Open questions include exploring the relationship between contractarian business ethics and other approaches, such as stakeholder (...) management and virtue based ethics; and analysis of the intersection of contractarian approaches with the findings and assumptions of the field of moral psychology. Finally, the managerial utility of social contract based approaches needs to be explored with emphasis on identifying “translator” concepts. (shrink)

This study provides a global perspective on citations of articles published in ten business ethics journals between 1999 and 2012 and establishes three findings. First, the results indicate that Journal of Business Ethics and Business and Society are the two top business ethics journals based on the distribution of normalized citations received. Second, although North America, particularly the US, remains the top producer of business ethics research, it has been surpassed by (...) Europe in terms of weighted normalized research citations received in 2012, implying a potential diminishing global role of US influence in business ethics research over time. Third, the top-ranked US institutions have reduced their business ethics research impact in recent years, while the European institutions have sharply increased theirs. (shrink)

An analysis is presented of the relationships between consumers’ ethical beliefs, ethical ideology, Machiavellianism, political preference and the individual difference variable "need for closure". It is based on a representative survey of 286 Belgian respondents. Standard measurement tools of proven reliability and robustness are used to measure ethical beliefs (consumer ethics scale), ethical ideology (ethical positioning), Machiavellianism (Mach IV scale) and need for closure. The analysis finds the following. First, individuals with a high need for closure tend (...) to have beliefs that are more ethical as regards possible consumer actions, and score higher on idealism and lower on Machiavellianism, than those with a low need for closure. Second, a correlation exists between political preference and ethical beliefs. Third, a significant relationship exists between ethical ideology and political preference for the two largest political parties. Fourth, individuals with a high and low need for closure have different political preferences for right-wing and left-wing parties. (shrink)

An analysis is presented of the relationships between consumers ethical beliefs, ethical ideology, Machiavellianism, political preference and the individual difference variable "need for closure". It is based on a representative survey of 286 Belgian respondents. Standard measurement tools of proven reliability and robustness are used to measure ethical beliefs (consumer ethics scale), ethical ideology (ethical positioning), Machiavellianism (Mach IV scale) and need for closure. The analysis finds the following. First, individuals with a high need for closure tend (...) to have beliefs that are more ethical as regards possible consumer actions, and score higher on idealism and lower on Machiavellianism, than those with a low need for closure. Second, a correlation exists between political preference and ethical beliefs. Third, a significant relationship exists between ethical ideology and political preference for the two largest political parties. Fourth, individuals with a high and low need for closure have different political preferences for right-wing and left-wing parties. (shrink)

This article examines the relevance and value of Confucian Ethics to contemporary Business Ethics by comparing their respective perspectives and approaches towards business activities within the modern capitalist framework, the principle of reciprocity and the concept of human virtues. Confucian Ethics provides interesting parallels with contemporary Western-oriented Business Ethics. At the same, it diverges from contemporary Business Ethics in some significant ways. Upon an examination of philosophical texts as well as (...) class='Hi'>empirical studies, it is argued that Confucian Ethics is able to provide some unique philosophical and intellectual perspectives in order to forge a richer understanding and analysis of the field of contemporary Business Ethics. (shrink)

Abstract:Psychological forces in play across individual, group, and organizational levels of analysis increase the likelihood that people in business organizations will engage in misconduct. Therefore, it is argued, we must turn our attention from dominant normative and empirical trends in business ethics, which revolve around boundaries and constraints, and instead concentrate on methods for promoting ethical behavior in practice, exploiting psychological forces conducive to ethical conduct. This calls for a better understanding of how organizations and (...) their inhabitants function, and, in turn, it points to pragmatic solutions. Ethical conduct can be promoted by (1) normatively justifying vivid aims worthy of pursuit alongside economic objectives, and (2) empirically identifying the conditions and practices that advance those aims in firms. This approach challenges us to bring empirical and normative inquiry together—in ways unsettling to both. It pushes us to move beyond an empirical preoccupation with decision making and judgment, and it requires us to cope with political liberalism’s legitimate qualms about discussions of the good. (shrink)

Abstract:Psychological forces in play across individual, group, and organizational levels of analysis increase the likelihood that people in business organizations will engage in misconduct. Therefore, it is argued, we must turn our attention from dominant normative and empirical trends in business ethics, which revolve around boundaries and constraints, and instead concentrate on methods for promoting ethical behavior in practice, exploiting psychological forces conducive to ethical conduct. This calls for a better understanding of how organizations and (...) their inhabitants function, and, in turn, it points to pragmatic solutions. Ethical conduct can be promoted by (1) normatively justifying vivid aims worthy of pursuit alongside economic objectives, and (2) empirically identifying the conditions and practices that advance those aims in firms. This approach challenges us to bring empirical and normative inquiry together—in ways unsettling to both. It pushes us to move beyond an empirical preoccupation with decision making and judgment, and it requires us to cope with political liberalism’s legitimate qualms about discussions of the good. (shrink)

This paper investigates potential motivations for late adopting U.S. companies to begin disclosing environmental liability amounts in their financial statements. Based on a review of 10-K reports filed from 1998 through 2012, inclusive, we identified 55 firms initiating environmental liability disclosure over the period, with all but three doing so by 2006. Focusing on the disclosers up through 2006, we argue that the companies may have used the disclosure as a tool of impression management to avoid potential stakeholder mis-estimation of (...) previously undisclosed liability exposures. We first compute tests to identify firms that may have begun the disclosure due to (1) materiality and (2) concerns of having proprietary costs imposed upon them due to changes in their environmental media coverage and environmental performance, and we find very few cases where these explanations might hold. For the remaining companies, we compared their newly disclosed liability amount, on average, with the mean level of environmental liability being disclosed by other firms in the year prior to the sample companies’ initiation, and find that it is significantly smaller, thus supporting our impression management argument. Finally, we find that overall level of environmental liability amounts was consistently decreasing over the time frame examined, suggesting that earlier adoption would have made more sense. However, it may also explain why almost no new firms began disclosing after the mid-2000s. (shrink)

The authors analyze results of a survey of members of the Columbia University Graduate School of Business classes of 1953–1987 in order to assess the potential effectiveness of firms' ethics training programs. Results suggest that such training has a positive effect, but that relatively few firms provide such programs (about one-third of the respondents worked for firms with such programs). Although the sample is not representative of American employees and managers generally, the results suggest that it may be (...) worthwhile for firms to provide formal ethics training to their employees. (shrink)