CEOs’ social and environmental activism attracts significant public and research interest. Positioned as an expression of personal morality, such activism is potentially highly influential because of CEOs’ public visibility and associated positional and resource-based power. This paper questions the assumption that CEO activism can only be explained in relation to individual moral action, and illuminates its wider social implications. We critically evaluate the recent upsurge in CEO activism by juxtaposing it against broader social activism, identifying its distinctive characteristics, and empirically (...) examining two recent ‘moral episodes’: the Deferred Action for Childhood Arrivals program and the Fetal Heartbeat Acts. Our analysis demonstrates that CEO activism is more heterogeneous than research to date has shown. Building on this analysis, a refined understanding of the character and morality of CEO activism is developed by establishing a typology of its forms. We conclude that while CEO activism is an important and potent new phenomenon, it may not be universally appropriate to regard CEOs as moral leaders. Instead, it is paramount to question the motives and effects of what CEOs do in the name of morality. (shrink)

How can codes of ethics acquire legitimacy—that is, how can they lay down obligations that will be seen by their subjects as morally binding? There are many answers to this question, reflecting the fact that moral agents have a host of different bases on which they may acknowledge code duties as ethically binding—or, alternatively, may reject those duties as morally irrelevant or actively corrupt. Drawing on a wide literature on legitimacy in other practical fields, this paper develops a multidimensional legitimacy (...) framework, describing ten distinct sources of legitimacy. It illustrates how these sources can be seized, not only by the code’s content, but by opportunities presented in the main stages of code development, adoption and implementation. In so doing, it aims to provide practical resources for code developers and ethics reformers in organizations and industries to avoid critical missteps, and to maximize the impact and efficacy of their work. (shrink)

In this article, we contribute to sociological literatures on morality, professional and institutional contexts, and morally stigmatized ‘dirty work’ by emphasizing and exploring how they mutually inform one another in lawyers’ work activities. Drawing on interview data with 58 practitioners in the commercial legal industry in Singapore, we analyze how they experience professional and institutional constraints on the expressions of morality in their work. Our findings illustrate how a dominant managerial and economic focus maintains and reproduces a constrained form of (...) morality, limited to instrumental, utilitarian and commercial ends, and subordinated to lucrative client and firm interests. We discuss our findings in terms of the need to research and reform professions in ways that support more rounded and unconstrained moral reflexivity and autonomy in how work is undertaken and valued. This in turn has implications for how organizations and professions might achieve alternative moral institutional orders, and for legal work to avoid the moral and social taints of dirty work. (shrink)

Based on my study of the Rhodes Must Fall movement, I develop a rejectionist perspective by identifying the understanding and mobilization of epistemic disobedience as the core premise of such a perspective. Embedded in this contextual perspective, epistemic disobedience refers to the decolonization of the self and a fight against colonial legacies. I argue that, rather than viewing a rejectionist perspective as a threat, it should be integrated into the moral learning of contemporary institutions and businesses. This approach is important (...) in ensuring colonial legacies and biases do not create further racism or unequal situations for marginalized groups. The implication for critical management studies is that scholars from this camp should be more sensitive to issues of black consciousness and implement an authentic pragmatic ideal to promote black culture and historiographies in universities and curricula. It also highlights a need for the field of business ethics to apply more sensitive theory of marginalized stakeholders in order to prevent any escalation of violence by multinational corporations in the name of shareholder value creation and profit-maximization. (shrink)

Based on a unique data set on US direct microloans, we study the funding determinants of interest-free peer-to-peer crowdlending aimed at borrowers in the US. By performing logistic regressions on funding success and Tobit regressions on the reversed funding time, the existence of a social underwriting by a third-party trustee and information in the description texts fostering the investors’ trust are shown to be the main predictors of successful funding. Regarding social impact, the possibility to empower women and groups of (...) borrowers appeals to the investors, whereas empowerment of the family or community beyond the borrowers themselves appears to remain unappreciated. When examining the vulnerability of the borrowers as a predictor, the results manifest differences amongst the attitudes of the investors towards social impact. In the subsample of non-endorsed loans, the investors appear to prefer to support borrowers with an immigration background. In contrast, this is not the case with endorsed loans. (shrink)

The connections between Adam Smith and Catholic Social Teaching raise several questions. The principle of subsidiarity adopted in CST, according to which higher associations should not replace subordinate organizations on what the latter can do, seems to be in line with the idea that governmental intervention in the market sphere should be restricted to the minimum required, in line with what is typically seen as Smith’s view. But the principle of the common good would also recommend intervention from political authorities (...) in order to ensure that the common good is achieved. Here I shall argue that this question must be addressed taking into account another principle of CST, the principle of solidarity, and also the basic principle of CST, regarding human dignity. To do so, it is necessary to understand how the various principles of CST spring from the notion of imago Dei in CST, which is behind the notion of human dignity. This leads to a relational conception of human beings which can be fruitfully articulated with Smith’s moral philosophy and political economy. (shrink)

Is the market civilizing or destructive? The increased salience of science commercialization is forcing scientists to address this question. Benefiting from the sociology of morality literature’s increased attention to specific kinds of morality and engaging with economic sociology’s moral markets literature, we generate competing hypotheses about scientists’ value-driven attitudes toward patenting. The Civilizing Market thesis suggests scientists who prioritize universalism will tend to support patenting. The Destructive Market thesis, by contrast, suggests universalism will be correlated with opposition to patenting. We (...) analyze survey data from biologists and physicists nested within academic organizations, which are nested within the following regions: France, Hong Kong, India, Italy, Taiwan, Turkey, UK, and the USA. Employing multilevel analysis, we find correlational evidence to support the Destructive Market thesis. Universalism is associated with anti-patenting attitudes, suggesting scientists expect patenting to have deleterious effects on science and society. We end with a discussion of this article’s implications for the moral markets literature, sociology of morality and business ethics. (shrink)

New media and technologies such as social media and online platforms are disrupting the way businesses are run and how society functions. This article advises that scholars consider the morality of new media as an area of investigation. While prior literature has given much attention to how social media provides benefits, how it affects society generally, and how it can be used efficiently, research on the ethical aspects of new media has received relatively less attention. In an age where matters (...) such as violence, hate crimes, fake news, etc. are increasingly pervasive, we need to address the role of online technology in aiding or limiting such negative acts. In this regard, this article uses the canvas of a terror attack that was facilitated by online technology to bring to light pressing social and ethical issues in the use of new media. I draw upon 264 news articles focusing on the 2019 Christchurch terrorist attacks to piece together how the attack was orchestrated and focus on technology-enabled facets of the event. I stir discussion on the ethical aspects of technology with regard to online discrimination and highlight business and other stakeholder responsibilities and challenges as technology continues to evolve and pervade our social lives. (shrink)

The capability approach developed by Amartya Sen focuses on the enhancement of people’s capabilities, i.e. their real freedom to choose a life course they have reason to value. Applying the CA to the organizational context, the focus of human resource management is transformed, shifting away from the needs of the organization to the freedoms of the individual. This shift happens also inside the so-called ‘liberated companies,’ firms with an organizational form that allows employees the complete freedom, along with the responsibility, (...) to take any actions they decide are best. In this paper we show the contribution of the capability approach for management and for organizational ethics by focusing on this innovative model of ‘liberated companies.’. (shrink)

Over the last decade, scholars across the wide spectrum of the discipline of sociology have started to reengage with questions on morality and moral phenomena. The continued wave of research in this field, which has come to be known as the new sociology of morality, is a lively research program that has several common grounds with scholarship in the field of business ethics. The aim of this thematic symposium is to open constructive dialogues between these two areas of study. In (...) this introductory essay, we briefly present the project of the new sociology of morality and discuss its relevance for business ethics. We also review the contributions to this thematic symposium and identify four specific domains where future research can contribute to fruitful dialogues between the two fields. (shrink)

This study explores the impact of B Corp certification and its associated impact assessment on four case studies of small and medium-sized Brazilian companies certified as B Corps. The results reveal that although all companies had achieved high scores in the certification assessment, awarded on the basis of existing performance, they did not subsequently develop road maps for the future to improve their scores in the way which the B Corp Impact Assessment process endorses as one of the benefits of (...) certification. Their incremental changes are discussed in the light of the main motivations and expectations of these companies’ founders with regard to the certification. A central role of the B Corp certification for this group of companies was to improve their external reputation with investors, clients and consumers. They were not strongly driven to reshape internal processes in ways which would advance their scores in the impact assessment and which would tackle complex problems of corporate governance. Our findings contribute to enriching the discussion of stakeholder engagement and corporate governance in hybrid organizations and contribute to the emerging agenda on studying change over time in B Corps. (shrink)

This study explores the impact of B Corp certification and its associated impact assessment on four case studies of small and medium-sized Brazilian companies certified as B Corps. The results reveal that although all companies had achieved high scores in the certification assessment, awarded on the basis of existing performance, they did not subsequently develop road maps for the future to improve their scores in the way which the B Corp Impact Assessment process endorses as one of the benefits of (...) certification. Their incremental changes are discussed in the light of the main motivations and expectations of these companies’ founders with regard to the certification. A central role of the B Corp certification for this group of companies was to improve their external reputation with investors, clients and consumers. They were not strongly driven to reshape internal processes in ways which would advance their scores in the impact assessment and which would tackle complex problems of corporate governance. Our findings contribute to enriching the discussion of stakeholder engagement and corporate governance in hybrid organizations and contribute to the emerging agenda on studying change over time in B Corps. (shrink)

Flagging labor governance in far-flung supply networks has prompted greater scrutiny of instrumental CSR and calls for models that are tethered more closely to accountability, constraint, and oversight. Political CSR is an apt response, but this paper seeks to buttress its deliberative moorings by arguing that the agonist notion of ‘domesticated conflict’ provides a necessary foundation for substantive deliberation. Because deliberation is more viable and effective when coupled with some means of coercion, a concept of CSR solely premised on reciprocal (...) corporate-stakeholder engagement is pre-mature; efforts should first be directed toward the antecedents of reciprocity and how it is to be achieved, and only then does deliberation become a reliably substantive exercise. The resulting account of agonistic CSR is generated through agonistic principles of realism, pro-action, contestation, and countervailence, and illustrated by the Bangladesh Accord. (shrink)

This research investigates the impact of corporate tax strategies on consumers’ corporate social responsibility perceptions, willingness to pay, and attitude toward the firm in two laboratory experiments in the United States and Germany. Using the Becker–DeGroot–Marschak incentive-compatible mechanism, which avoids a social desirability bias found in prior research, our results indicate only a minor indirect effect of corporate tax strategies on WTP by way of the mediator CSR perceptions. However, we find a strong effect on attitude toward the firm again (...) mostly mediated by CSR perceptions. In contrast to German consumers, U.S. consumers’ CSR perceptions of tax avoidance are independent of whether a strategy is likely accepted by the tax authorities. Overall, we conclude that CSR perceptions are highly relevant when it comes to consumer responses to tax avoidance. (shrink)

We propose that corporations should be subject to a legal obligation to identify and internalise their social costs or negative externalities. Our proposal reframes corporate social responsibility as obligated internalisation of social costs, and relies on reflexive governance through mandated hybrid fora. We argue that our approach advances theory, as well as practice and policy, by building on and going beyond prior attempts to address social costs, such as prescriptive government regulation, Coasian bargaining and political CSR.

We examine the impact of activated versus non-activated ethical norms on the aggressiveness of accounting decisions, in the presence of self-interest favoring aggressiveness. Using a case in which the accounting rules are ambiguous, we ask professional accountants to make an accounting decision as though they were in their own organization; we measure the ethical norms of their organization at the end of the experiment. Based on the focus theory of normative conduct, we argue that the general ethical norms of the (...) participants’ organizations are activated when the decision structure is such that the participant receives a recommendation from a subordinate, whereas those norms are not activated when the participant is making the decision alone. We find that higher ethical norms decrease aggressiveness when the decision maker receives a recommendation, whereas higher ethical norms have no impact on aggressiveness when the decision maker makes the decision alone. Our results demonstrate that general ethical norms, known to impact decisions having clear ethical content, can also curb accounting aggressiveness when these norms are activated. Furthermore, firm practices such as decision structure can activate norms. These findings are of interest to practitioners and regulators who seek to temper aggressive accounting. (shrink)

Greenwashing is a phenomenon that is linked to scandals that often occur at the supply-chain level. Nevertheless, research on this subject remains in its infancy; much more is needed to advance our understanding of stakeholders’ reactions to greenwashing. We propose here a new typology of greenwashing, based on the locus of discrepancy, i.e. the point along the supply-chain where the discrepancy between ‘responsible words’ and ‘irresponsible walks’ occurs. With three experiments, we tested how the different forms of greenwashing affect stakeholders’ (...) reactions, from both ethical and business perspectives. We developed our hypotheses by building on attribution theory, which seeks to account for how observers construct perceptions about events. We had anticipated that the more internal, controllable and intentional the discrepancy is, the greater the blame attributed to a company is, and the lower the intention to invest will be. When greenwashing occurs at a company level, this results in a higher level of blame attribution, while the intention to invest falls. Indirect greenwashing refers to a misbehaviour perpetrated by a supplier who claims to be sustainable, and which results in a less negative impact on a supplied company. We also propose the vicarious greenwashing, which occurs when the behaviour of a supplier is in breach of a company’s claims of sustainability. This type of greenwashing is nevertheless detrimental to investment. The findings here advance our understanding of how greenwashing shapes stakeholders’ reactions, and highlight the need for the careful management of the supply-chain. (shrink)

Greenwashing is a phenomenon that is linked to scandals that often occur at the supply-chain level. Nevertheless, research on this subject remains in its infancy; much more is needed to advance our understanding of stakeholders’ reactions to greenwashing. We propose here a new typology of greenwashing, based on the locus of discrepancy, i.e. the point along the supply-chain where the discrepancy between ‘responsible words’ and ‘irresponsible walks’ occurs. With three experiments, we tested how the different forms of greenwashing affect stakeholders’ (...) reactions, from both ethical and business perspectives. We developed our hypotheses by building on attribution theory, which seeks to account for how observers construct perceptions about events. We had anticipated that the more internal, controllable and intentional the discrepancy is, the greater the blame attributed to a company is, and the lower the intention to invest will be. When greenwashing occurs at a company level, this results in a higher level of blame attribution, while the intention to invest falls. Indirect greenwashing refers to a misbehaviour perpetrated by a supplier who claims to be sustainable, and which results in a less negative impact on a supplied company. We also propose the vicarious greenwashing, which occurs when the behaviour of a supplier is in breach of a company’s claims of sustainability. This type of greenwashing is nevertheless detrimental to investment. The findings here advance our understanding of how greenwashing shapes stakeholders’ reactions, and highlight the need for the careful management of the supply-chain. (shrink)

Various studies have recognized the importance of humility as a foundational aspect of virtuous leadership and have revealed the beneficial effects of leader humility on employee moral attitudes and behaviors. However, these findings may overestimate the benefits of leader humility and overlook its potential costs. Integrating person–supervisor fit theory and balance theory with the humility literature, we employ a dyadic approach to consider supervisor and employee humility simultaneously. We investigate whether and how the congruence of supervisor and employee humility influences (...) employee citizenship and deviance behaviors. We conducted a multilevel, multiphase, and multisource field study to test our hypotheses. The results of cross-level polynomial regression analyses revealed that when supervisors and employees were incongruent in humility, employees experienced higher levels of negative affect toward supervisors. Also, compared to those in low–low congruent dyads, employee negative affect toward supervisors was lower in high–high congruent dyads. The results further revealed asymmetric incongruence effects: employees experienced the highest levels of negative affect toward supervisors when their own humility was lower than their supervisors’. In addition, we found that employee negative affect toward supervisors mediated the impacts of supervisor–employee congruence in humility on employee organizational citizenship behavior and counterproductive work behavior. (shrink)

This article brings together mindfulness and habitus theory in relation to developing wise leaders. In particular, we present new insights about the intersection of time, subjective and intersubjective experience, and mindfulness that are relevant to developing embodied wisdom in leaders. We show that temporal competence is essential for shaping habitus and developing embodied wisdom. Further, and to extend theoretical understandings of mindfulness in leadership, we argue that temporal capabilities developed through mindfulness can foster embodied wisdom by creating a specific ‘wisdom (...) habitus’ that includes values and ethics. The system of dispositions that comprise one’s habitus is, however, largely unconscious and implicit and we discuss how mindfulness renders habitus, including ethical conation accessible to development for the bodily ability to act wisely. This article then establishes a framework that leadership development programs in business schools can adopt for understanding habitus and mindfulness to enable embodied wisdom to develop in leaders. Finally, we show that a mindfulness perspective offers valuable contributions to research on leadership. (shrink)

Environmental pollution has become a serious challenge in emerging markets. Using a unique survey of privately owned enterprises in China, this paper investigates how polluting firms respond to institutional pressures. We find that polluting firms conform to external pressures by combining relational activities and clean technology investments. However, some polluting firms alleviate regulative pressures by bribing government officials, which represents an unethical relational strategy to manage political relationship. We further analyze the contingency on firm-level political connection and local institutional conditions. (...) Political connection buffers firms from institutional demand and demotivates firms’ willingness to respond to institutional pressures; stronger local civic activism and better bureaucratic governance curb the pollution-driven bribery, but they are not strong enough to enhance environmentally friendly practices. Collectively, our study demonstrates how polluting firms navigate institutional pressures in emerging markets, and it particularly highlights the pollution-driven bribery as an obstacle to sustainability. (shrink)

In a sample of 522 police officers and staff in an English police force, we investigated the role of authoritarian leadership in reducing the levels of employee ethical voice. Drawing upon uncertainty management theory, we found that authoritarian leadership was negatively related to employee ethical voice through increased levels of felt uncertainty, when the effects of a motivational-based mechanism suggested by previous studies were controlled. In addition, we found that the negative relationship between authoritarian leadership and employee ethical voice via (...) felt uncertainty is mitigated by higher levels of benevolent leadership. That is, when authoritarian leaders simultaneously exhibit benevolence, they are less likely to cause feelings of uncertainty in their followers who are then more likely to speak up about unethical issues. We discuss theoretical and practical implications of the findings. (shrink)

Consumer vulnerability is studied via a quasi-ethnographic longitudinal study of adolescents aged 11–15. The study focuses on how adolescents define their vulnerabilities within their adolescent consumption subcultures, the factors enhancing this vulnerability, and the social actors involved in their experience of vulnerability. The findings contribute to consumer vulnerability literature in three ways. First, by adopting an adolescent-centric approach based on an emic perspective, we go beyond the monolithic approach of studying one source of vulnerability at a time seen in present (...) marketing literature. Instead, we introduce a polyadic or multiple simultaneous approaches that can consider risk sources. Second, the findings show that adolescents’ perceptions of consumer vulnerability are anchored within their consumption subcultures. This study introduces the concept that young consumers experience vulnerability in multiple ways, including imposed by adults or by adolescents deliberately engaging in risky behaviors. Third, this research provides ethics policy-makers and scholars with the conceptual framework of adolescent-centric vulnerability, which can help them to develop actions based on both imposed and deliberate sources of vulnerability from the perception of the adolescent. (shrink)

How and why could some stories be construed as sacred in organizations, and what functions does the sacred have in organizational values work? Research has shown how values can be made formative of a range of organizational purposes and forms but has underscored their performative, situated, and agentic nature. We address that void by studying the sacred as a potentially salient yet under-researched realm of values work. Drawing on an ethnographic case study of a faith-based health care organization and the (...) ethical philosophy of Paul Ricoeur, we describe how the sacred is figured in two sets of tales that were lived and told with surprising intensity and consistency: the parable of the Good Samaritan and the tale of the legacy bestowed by the organization’s founder. We theorize how this figuring of the sacred in story and in action recasts values work from a centralized and unitary process to a two-way learning dialectic between the ongoing creative imitation of action and narrative. Values in the shape of stories of the sacred do not achieve their meaning as unchangeable cores or sanctioned beliefs. Rather, they come to life in a process of ongoing moral inquiry that co-evolves with moral agencies. In the latter regard, the sacred primarily becomes manifest in everyday work in the form of questioning and creative acts of care. People become moral agents when they feel and respond to the sacred in the call of the other. (shrink)

In countries such as China, where Confucianism is the backbone of national culture, high-social-status entrepreneurs are inclined to engage in corporate social responsibility activities due to the perceived high stress from stakeholders and high ability of doing CSR. Based on a large-scale survey of private enterprises in China, our paper finds that Chinese entrepreneurs at private firms who have high social status are prone to engage in social responsibility efforts. In addition, high-social-status Chinese entrepreneurs are even more likely to engage (...) in social responsibility efforts as they become more politically connected and as the region becomes more market-oriented. These findings extend the upper echelons perspective of CSR into Chinese context by shedding light on antecedents of CSR from a new perspective and clarifying the boundary conditions of the social status–CSR link from the institutional perspective. (shrink)

Recent events and popularized stereotypes call into question the ethics of salesperson behaviors. Although prior research demonstrates that salespeople’s emotional exhaustion can have negative consequences for several job outcomes, little is known about the factors that can mitigate such relationships—particularly the relationship between emotional exhaustion and ethical behavior. To remedy this knowledge gap, we draw from self-control theory to propose a novel theoretical framework and develop hypotheses. These hypotheses are tested on a unique dataset consisting of survey data collected from (...) 123 matched business-to-business salesperson–manager dyads. The findings reveal that emotional exhaustion is negatively associated with sales performance, emotional exhaustion is negatively associated with ethical behaviors, ethical behaviors are positively associated with sales performance, ethical behaviors mediate emotional exhaustion’s negative effect on sales performance, perceived supervisor support attenuates the negative association between emotional exhaustion and ethical behaviors, and contrary to expectations, grit strengthens the negative association between emotional exhaustion and ethical behaviors. As we show here, perceived supervisor support may attenuate the undesirable effects of emotional exhaustion on ethical behaviors and sales performance. The article’s broader contribution thus lies in its suggestion that managers pay special attention to these factors. Moreover, factors such as grit can have unexpected and undesirable influences; therefore, we draw attention to the importance of scrutinizing these interactions, even when the factors involved are almost universally touted as beneficial. Theoretical and practical implications of the research are discussed. (shrink)

While China has experienced an unprecedented growth over the past decades, sustainability has become a major concern for policymakers and management practitioners. Consideration has been given to the convergence of mass entrepreneurship and innovation as a new economic driver and sustainability as a long-term economic objective. The focus of China’s economic development has moved from a resource-based expansion to a more entrepreneurial and socially responsible one. This is a timely and critical topic that captures the increasing concerns over sustainability and (...) Chinese firms’ increased responsibility under the new governmental initiatives in fulfilling their social mandates from stakeholders at different levels. It is also a rich area for academic research but still under studied in the Chinese context. More indigenous management research on corporate social responsibility is required to adopt Chinese perspectives in conceptualizing CSR-related problems and further formulating more contextualized CSR theories, the emergence of a new research horizon. (shrink)

While prior research suggests a link between mindfulness and ethical decision-making, most of the evidence for this link is correlational and refers to self-focused ethical behaviors. The paucity of experimental evidence, coupled with a lack of clarity on what mechanisms underlie the effect, limits our understanding of whether and how mindfulness might foster other-focused ethical behaviors. In this research, we hypothesize that state mindfulness might promote other-focused ethical behaviors by increasing resourcefulness, which we define as a perceived state of resource (...) abundance. Across four experimental studies, we report causal evidence for the effects of state mindfulness instantiated through brief mindful meditation exercises on other-focused ethical behaviors, including choice of fair-trade products, charitable giving, and volunteering. Resourcefulness mediates the effects of mindfulness on other-focused ethical behaviors. Our work answers the call for more experimental research on mindfulness and its important implications for ethical decision-making. (shrink)

Abusive supervision negatively affects its direct victims. However, recent studies have begun to explore how abusive supervision affects third parties. We use the emotion-based process model of schadenfreude as a basis to suggest that third parties will experience schadenfreude and increase their work engagement as a response to peer abusive supervision. Furthermore, we suggest that the context of competitive goal interdependence facilitates the indirect relationship between PAS and third parties’ work engagement on schadenfreude. We use a mixed-method approach to test (...) our hypotheses. Data from an experimental study conducted by facial expression analysis technology and a multi‐wave field study generally support our hypotheses. Overall, our study extends PAS literature and meaningfully informs practitioners who aim to promote ethical workplace environments. (shrink)

Business ethics educators strive to produce graduates who not only grasp the principles of ethical decision-making, but who can apply that business ethics education when faced with real-world challenges. However, this has proven especially difficult, as good intentions do not always translate into ethical awareness and action. Complementing a behavioral ethics approach with insights from social psychology, we developed an interventional class module with both online and in-class elements aimed at increasing students’ awareness of their own susceptibility to unconscious biases (...) and, consequently, unethical behaviors. We deployed this intervention within a problem-based learning course, in which students completed real-world projects for actual business clients. Our results suggest that although students appeared universally aware of the importance of ethical issues in business and generally espoused intentions to act ethically, those who received the intervention were significantly more likely to recognize their own susceptibility to perpetuating unethical business behavior and to identify ethical issues specific to their real-world projects. These results have important implications for behavioral ethics pedagogy and provide a de-biasing interventional approach for bridging classroom knowledge with real-world skills. (shrink)

An increasing body of institutional research has examined organizations’ response to conflicting institutional logics, but few studies have looked into how cross-sector organizational actors experiencing institutional complexity strategize their response mechanisms to create value in the context of corporate social responsibility. We conduct a comparative case study of nine social partnerships between multinational companies and nonprofits in China. We identify a partnership logic among the value-creating partnerships where partners guided by an either/and mindset take joint ownership of the social or (...) sustainability issue/cause and integrate it into their core set of activities and goals. By contrast, the less successful partnerships guided by an either/or mindset pursue a substitution logic in which the issue and project are kept separate and marginalized from core activities and goals. We contribute to an understanding of the value creation of cross-sector social partnerships by revealing the institutional embeddedness of such partnerships and deriving a process model of collaborative value creation through institutional works in social partnerships. (shrink)

We explore the potential impact of CEO entrepreneurial orientation on firm choice of CSR activities. Integrating upper echelon theory and attention-based view of the firm, we find that CEO entrepreneurial orientation leads to more engagement in CSR innovation rather than corporate philanthropy. We find that the effect of CEO entrepreneurial orientation on firm choice of CSR activities varies under two situational contexts: state-owned enterprises and incoming/departing CEO. The hypotheses are tested using two different studies. Study 1 uses a cross-sectional survey (...) of Chinese CEOs, whereas study 2 employs a longitudinal analysis of Chinese publicly listed firms from 2003 to 2017. Both studies support our theoretical hypotheses. (shrink)

This study aims to enrich our understanding of the relationship between political connections and the adoption of environmental corporate socially responsible investments. In addition to the individual-level political connections, i.e., entrepreneurs’ personal ties to government officials, we propose in China the creation of Communist Party of China branches in privately owned firms serve as organizational and institutionalized dimensions of political connection building. Drawing on the social exchange theory, this paper details how CPC branches function in privately owned firms and how (...) entrepreneurs are motivated by the reciprocal logic to engage in ECSR. We also supplement this main effect by examining the boundary conditions of it at the firm and regional level. Using a dataset with 17,690 firm observations in China, we find that the existence of CPC branches gives rise to the ECSR investments and the firm-level contingencies such as centralized governance and financial constraints, and the regional-level contingencies such as the development of the market system, are important moderators that shape the association of political links and ECSR investments. These findings have ample implications to understand the ECSR activities and extend social exchange theory beyond the individual level on which it is typically applied. (shrink)

The article reports the findings of an empirical study among consumers, regarding the impact of physical, social, and psychological proximity on their engagement to the fair trade idea and purchasing behavior. Based on a random sample of 211 British and 112 Indian consumers and using structural equation modeling, it was found that high levels of physical, social, and psychological proximity leads to high consumer fair trade engagement. Moreover, consumer fair trade engagement was confirmed to have a positive impact on fair (...) trade purchasing behavior. Furthermore, consumer empathic concern was found to positively moderate the association between proximity and consumer fair trade engagement, while the opposite was true with regard to consumer hypocrisy. Finally, consumer nationality was found to have a control effect on physical, social, and psychological proximity, with the latter felt stronger among Indian, as opposed to British consumers. (shrink)

Stakeholder theory focuses on how more value is created if stakeholder relationships are governed by ethical principles such as integrity, respect, fairness, generosity and inclusiveness. However, it has not adequately addressed strategies that stakeholders perceive as harmful to their interests and how this perception can even lead some stakeholders to view the firm’s strategies as unethical. To fill the void, this paper directly addresses strategies that stakeholders perceive as harmful to their interests, or what we refer to as harmful stakeholder (...) strategies. Specifically, it identifies factors associated with stakeholder perceptions of harm that are likely to cause them to consider a strategy unethical, examines the negative implications for firms that pursue such strategies in terms of likely stakeholder responses and damage to stakeholder relationships, and provides theory to help explain how firms are likely to respond to stakeholder claims that a strategy is unethical, based on factors such as the strategic importance of the claim to the firm, how long the strategy has been in use, the costs of remediation, the risk of stakeholder mobilization or new regulation, and whether firms can reasonably rationalize their actions. Assessing harm allows a firm to make a more accurate estimate of the costs of a strategy and can assist managers in allocating resources intended to reduce or remediate harm. (shrink)

Businesses and governments in postcolonial countries frame investments in wind energy as efforts to address climate change and sustainable development. However, when wind energy projects encroach on indigenous peoples’ lives and land, there is often a lack of recognition and participation of these peoples and an unequal distribution of cost and benefits of such projects toward them, which leads to opposition against wind energy projects and often triggers conflicts for justice. Worryingly, such conditions have repeatedly resulted in the assassination of (...) human rights defenders, which further inflames the conflict. Herein, I discuss these concepts based on a longitudinal study centered on a wind energy project in Oaxaca, Mexico, with the aim of exploring and understanding the conditions under which wind energy investments fail to respect current laws and norms, as well as the consequences of such negligence. My in-depth analysis of the actions of the government, businesses, and indigenous peoples revealed a phenomenon that is less discussed in environmental justice research: the gradual and continuous transformation of indigenous peoples’ norms and behaviors away from their traditional economic and cultural livelihoods. This phenomenon helps to extend the conceptual understanding of environmental justice with regard to social turbulence, which is defined as the unpredictable behavior of political and social systems in contexts in which existing laws, regulations, and norms regarding environmental justice are not observed. The concept of social turbulence of environmental justice helps to explain how indigenous peoples sacrifice their territories, norms, and traditions to a technical solution to climate change and sustainable development. (shrink)

We show unintended consequences of quota regulations to get women on boards. Board members may have different characteristics, and even among women, there are variations. We assume that the characteristics of the board members have an influence on their contributions to boards, to businesses as well as to society. In this paper, we argue that different types of societal pressure to get women on boards have an influence on the social capital characteristics of the women getting multiple board memberships. The (...) paper is drawing on institutional theory and social capital theory, and we distinguish between mimetic, normative, and coercive types of pressure. Through a cluster analysis of 58 Italian “golden skirts”, we show that different types of societal pressure may lead to differences in social capital characteristics. The study has implications for the ongoing international debate about women and diversity on boards, and we propose developing a pressure theory for getting women on boards. (shrink)

This paper investigates whether religious-based index membership is important in mitigating earnings management. Using a large sample of firms domiciled across 12 European countries, our empirical results show that firms included in the Shariah-compliant index, as a proxy for religious index, are more likely to engage in accruals manipulation vis-a-vis non-Shariah-compliant firms. Our results are robust using the Heckman two-stage treatment effect model, weighted least squares model, alternative earnings quality metrics and after controlling for the potential effects of home-country characteristics. (...) Furthermore, our empirical results indicate that corporate governance of Shariah-compliant firms does not constrain managerial opportunistic behaviour in misreporting earnings, and firms that with low scores of board functions, shareholder rights and vision and strategy are more likely to engage in earnings management. Further, Shariah-compliant firms domiciled in Coordinated Market Economies are more likely to manipulate earnings than those in Liberal Market Economies. Taken together, our findings suggest that the Shariah index membership does not indicate good corporate governance that can mitigate earnings management, and it may serve as a legitimacy mechanism to conform to stakeholders’ expectations. Our findings support arguments that the religious-based index membership is plausibly used as a ‘label’ and an impression management tool to attract investment. (shrink)

Dimensions of character are often overlooked in professional practice at the expense of the development of technical competence and operational efficiency. Drawing on philosophical accounts of virtue ethics and positive psychology, the present work attempts to elevate the role of ‘good’ character in the professional domain. A ‘good’ professional is ideally one that exemplifies dimensions of character informed by sound judgement. A total of 2340 professionals, from five discrete professions, were profiled based on their valuation of qualities pertaining to character (...) and judgement. Profile differences were subsequently examined in the self-reported experience of professional purpose towards a wider societal ‘good’. Analysis of covariance, controlling for stage of career, revealed that professionals valuing character reported higher professional purpose than those overweighting the importance of judgement or valuing neither character nor judgement, F = 7.92, p <.001. No differences were found between the two groups valuing character, irrespective of whether judgement was valued simultaneously. This profiling analysis of entry-level and in-service professionals, based on their holistic character composition, paves the way for fresh philosophical discussion regarding what constitutes a ‘good’ professional and the interplay between character and judgement. The empirical findings may be of substantive value in helping to recognise how the dimensions of character and judgement may impact upon practitioners’ professional purpose. (shrink)

Drawing from cognitive learning theories we hypothesize that exposure to nationalistic appeals that suggest consumers should shun foreign brands for moral reasons increases the general belief in consumers that buying foreign brands is morally wrong. In parallel, drawing from the theory of psychological reactance we posit that such appeals may, against their communication goal, increase the reputation of foreign luxury brands. We term the juxtaposition of these apparently contradictory effects the “Ambivalence Hypothesis.” Further, drawing from prior research on source-similarity effects (...) we posit that foreign luxury brands that communicate cultural proximity to target consumers reinforce psychological reactance. We test these hypotheses experimentally in the context of luxury car brand advertising in China, a market that is heavily dominated by foreign brands, and therefore provides a breeding ground for ambivalent consumer reactions. Results show that exposure to nationalistic appeals enhances consumers’ national identity dispositions, which results in higher levels of consumer ethnocentrism. Further, nationalistic appeals enhance the social responsibility associations that consumers hold for foreign luxury brands and their countries of origin, which results in a higher brand reputation. Finally, effects of nationalistic appeals on foreign luxury brand reputation are positively stronger for brands using a local vs. a foreign or a global positioning. These findings suggest that nationalistic appeals are a double-edged sword with important implications for ethics in political communication and luxury brand marketing. (shrink)

Sustainable luxury is a strategic issue for managers and for society, yet it remains poorly understood. This research seeks to clarify how corporate social responsibility actions directly and indirectly affect consumers’ willingness to pay a premium price for luxury brand products, as well as how a long-term orientation might moderate these relationships. A scenario study presents fictional CSR actions of two brands, representing different luxury products, to 1,049 respondents from two countries. The results of a structural equation modeling approach show (...) that the luxury brands’ CSR actions negatively affect customer WTPP overall and for each brand. The luxury brands’ functional and symbolic value dimensions positively mediate the effects of CSR actions on WTPP, whereas social value does not. The effects of CSR actions and brand symbolic value on WTTP do not differ between countries. The effect of functional value on WTPP differs across countries, such that it is stronger for high-LTO than low-LTO cultures. Inversely, the effect of social on customer WTPP is stronger for low-LTO than high-LTO cultures. These findings have theoretical and practical implications for luxury brand managers. (shrink)

Although corporate social responsibility appears to be mutually beneficial for companies and consumers, the modern marketplace has left both parties in vulnerable positions. Consumers are increasingly subjected to incongruent CSR messages such as greenwashing, while companies are trapped in a strategic positioning dilemma with regard to how to most effectively and ethically approach CSR communication. This has led some companies to instead adopt a strategically silent approach, such as greenhushing. To capture this CSR positioning dilemma and test the positioning effects (...) on consumers’ attributions, this study applies attribution theory to conceptualize four distinct CSR positions which reflect varying combinations of congruence or incongruence between a company’s external CSR communication and its actual internal CSR actions. Using an online experiment, the effects of the CSR positions on consumer attributions for intrinsic and extrinsic CSR motivations and purchase intentions were tested across three CSR domains: environmental; labor; and lesbian, gay, bisexual, and transgender inclusion. Overall, the findings attest to the significant effect of internal–external congruence-based CSR positioning on how consumers respond to CSR communication. Importantly, the results indicate that discreet positioning is perceived similarly to uniform positioning, while misleading and unethical tactics such as CSR-washing are sure to backfire. Theoretical and managerial implications are discussed. (shrink)

Drawing from a multi-sourced data corpus gathered from high-net-worth social media influencers, this article explores how these individuals reconcile ethicality and living a luxury lifestyle through the enactment of three types of personas on Instagram: Ambassador of ‘True’ Luxury, Altruist, and ‘Good’ Role Model. By applying the concepts of taste regimes and social moral licensing, we find that HNW social media influencers conspicuously enact and display ethicality, thereby retaining legitimacy in the field of luxury consumption. As these individuals are highly (...) influential, they could leave a potentially significant mark on public discourse and, consequently, on their audiences’ construction of ethically responsible luxury consumption. In this vein, this article offers significant managerial insights into professional influencers and discusses ethical managerial practices to ensure ethical collaborations between influencers and managers. (shrink)

Scholars agree that the environmental and societal impacts of consumption require greater attention, and need examining in more diverse market contexts. This editorial essay focuses on the nascent area of ethical/sustainable luxury, and critically considers how the scope of ethical/sustainable consumption can be broadened in the luxury sector. We address the compatibility of ethicality/sustainability and luxury by examining a range of opportunities and inherent tensions in relation to improving the ethical/sustainable consumption practices within the luxury sector. We also introduce several (...) original articles published as part of this Thematic Symposium, whose arguments underscore both the merits, and flaws, of ethical/sustainable luxury. On the basis of this and prior research, we present a balanced perspective by identifying various factors that facilitate or inhibit the acceptance and furtherance of ethicality/sustainability within sector. Thus, this essay serves as a springboard for further research and development in ethical/sustainable luxury whilst simultaneously highlighting the importance of the topic in general. (shrink)

This study synthesizes research on evolutionary psychology, emotional appeals, and viral advertising in order to develop a novel perspective on how sustainable luxury brands can be effectively promoted on social media. The results of two experiments show that the emotional appeals of pride and gratitude increase consumer intentions to spread electronic word-of-mouth about sustainable luxury brands via two discrete mechanisms. Study 1 establishes that featuring the pride appeal increases eWOM intentions by heightening the luxury dimension of sustainable luxury brands, whereas (...) featuring the gratitude appeal increases eWOM intentions by heightening the sustainability dimension of sustainable luxury brands. Study 2 shows that these discrete effects of emotional appeals influence consumers to adopt different types of eWOM behaviors toward sustainable luxury brands. Specifically, the pride appeal increases consumer intentions to broadcast eWOM via status attainment motives. In contrast, the gratitude appeal increases consumer intentions to narrowcast eWOM via affiliation seeking motives. The findings offer novel theoretical insights and provide managers with tools to promote sustainable luxury brands in a digital environment. (shrink)

Tax administrators are empowered by the state to secure compliance with tax obligations. Enforcing compliance on the ground is complex, and street-level administrators often engage in the “art of the possible,” leading to dilemmas in the field. This paper examines tax administrators’ practices with regard to Jamaican property tax defaulters with outstanding tax liabilities in excess of 3 years. Drawing on interviews with tax administrators and other key agents, we find that tax administrators reposition themselves from objective enforcers to empathizing (...) officials engaging in schemes of action, doing what they can do rather than what they should do. This is a practical-sense approach to securing compliance. We identify two forms of empathy, assimilated and cynical, and conclude that administrators’ empathetic identification with defaulters does not necessarily arise solely from concern for social cohesion, or inter-subjective compassion, but also sometimes from self-interest. (shrink)

Based on the person-organization fit theory, this research aims to investigate how socially responsible HRM positively affects employees’ organizational citizenship behaviors toward the environment by increasing person-organization fit. This study also captures the moderating effect of the perceived role of ethics and social responsibility in influencing the indirect effect of SRHRM on OCBE via person-organization fit. Data were collected from 302 employees in a state-owned chain hotel in Shanghai, China. The results indicated that SRHRM indirectly influenced employee’s engagement in OCBE (...) through person-organization fit. The positive relationship between SRHRM and person-organization fit and the indirect effect of SRHRM on OCBE via person-organization fit were more significant when employees hold high rather than low levels of RESR. Research implications and prospects were also explored in this study. (shrink)

Studies of creative industries typically contend that creative work is profoundly precarious, taking place on a freelance basis in highly competitive, individualized and contingent labour markets. Such studies depict creative workers as correspondingly self-enterprising, self-reliant, self-interested and calculative agents who valorise care-free independence. In contrast, we adopt the ‘ethics of care’ approach to explore, recognize and appreciate the communitarian, relational and moral considerations as well as interpersonal connectedness and interdependencies that underpin creative work. Drawing on in-depth interviews with creative workers (...) in a range of marginal socio-cultural contexts, we argue that creative workers cultivate and sustain a diverse array of practices of care arising from an affective concern with the well-being of others. Far from being merely individualistic and crudely competitive actors, creative workers enact practical ethical responsibilities and affectivities towards a range of human and non-human others, including families, local communities and neighbourhoods, colleagues, artistic scenes and their adjacent genres, and surrounding national and linguistic cultures. In emphasizing the fundamental and structuring role of care in contingent labour markets our approach accords with recent trends in the social sciences that ‘affirmatively’—as opposed to ‘negatively’ and ‘suspiciously’—recognize that mutuality, solidarity and affectivity are powerful drivers of action on a par with or even exceeding market-driven self-centredness. (shrink)

It is widely thought that firms that employ workers in “sweatshop” conditions wrongfully exploit those workers. This claim has been challenged by those who argue that because companies are not obligated to hire their workers in the first place, employing them cannot be wrong so long as they voluntarily accept their jobs and genuinely benefit from them. In this article, I argue that we can maintain that at least many sweatshop employees are wrongfully exploited, while accepting the plausible claim at (...) the core of many defenses of sweatshops, namely that engaging in a voluntary and mutually beneficial transaction with a person in need cannot constitute morally worse treatment of that person than doing nothing at all to benefit her. We can do this, I claim, by accepting that wealthy multinational corporations have positive duties to employ or otherwise benefit the global poor. I argue that these duties can be plausibly grounded in the fact that potential sweatshop workers are victims of global structural injustice, from which multinational corporations typically benefit. (shrink)

This study uses the longitudinal data from the Building a New Life in Australia survey to examine the relationships between human capital and labour market participation and employment status among recently arrived/approved humanitarian migrants. We find that the likelihood of participating in the labour force is higher for those who had pre-immigration paid job experience, completed study/job training and have better job searching knowledge/skills in Australia and possess higher proficiency in spoken English. We find that the chance of getting a (...) paid job is negatively related to having better pre-immigration education, but it is positively related to having unpaid work experience and job searching skills in Australia, and better health. We also explore the ethical implications of the findings. (shrink)

The issue of trust has increasingly attracted attention in the business ethics literature. Our aim is to contribute further to this literature by examining how the use of the carbon copy function in email communication influences felt trust. We develop the argument that the use of cc enhances transparency—representing an important characteristic of workplace ethics—and hence promotes trust. We further argue that a downside of the cc option may be that it can also be experienced as a control mechanism, which (...) may therefore negatively affect trust. The results of our first study showed that the use of cc indeed enhances perceived transparency, but at the same time also leads to the experience of increased control. Building upon this insight, the findings of five subsequent studies consistently revealed that the use of cc negatively influences felt trust. More precisely, employees felt trusted the least when the supervisor was always included in cc. This effect on felt trust also negatively influenced how trustworthy the organizational climate was perceived. We further replicated these results in two field surveys, which showed that the negative effect of cc on felt trust lowered perceptions of psychological safety and contributed to a culture of fear. Taken together, our findings suggest that when transparency in email communications is experienced as a control mechanism, its use is perceived as unethical, rather than as ethical. Implications and recommendations for future business ethics research are discussed. (shrink)

This research examines how one’s construal level of a crisis differs by crisis type, and how the interplay of crisis type and apology appeal type impacts the effectiveness of apology messages in a corporate crisis context. Findings indicate that one’s mental construal toward a crisis varies by crisis type, with a self-threatening crisis leading to a lower level of construal than a society-threatening one. Findings further suggest that in a society-threatening crisis condition, an informational apology was more effective than an (...) emotional one. However, in a self-threatening crisis condition, there was no significant difference between two different message types. These findings offer valuable guidelines for developing effective crisis response strategy. (shrink)

Research that examines unethical interpersonal treatment has received a great deal of attention from scholars and practitioners in recent years due to the remarkable impact of mistreatment in the workplace. However, the literature is incomplete because we have an inadequate understanding of insubordination, which we define as “subordinates’ disobedient behaviors that intentionally exhibit a defiant refusal of their supervisors’ authority.” In our study, we integrate social exchange theory and the advantageous comparison component of moral disengagement within the integrative model of (...) experiencing and responding to mistreatment at work. Then, we explain why subordinates disengage from moral control as they balance experiencing abusive supervision with perpetrating insubordination within negative supervisor–subordinate social exchange relationships. In Studies 1–4, we validate a five-item measure of insubordination and demonstrate its content, convergent, discriminant, criterion-related, and predictive validity. In Study 5, we demonstrate that there is a positive indirect effect of abusive supervision on insubordination through negative social exchange relationship quality that strengthens for subordinates who perceive higher levels of supervisors’ task performance than others. Overall, our study advances the conversation in the business ethics literature by creating a solid conceptual, empirical, and theoretical foundation for a cohesive program of insubordination research that meaningfully builds on prior findings in unethical interpersonal treatment research. (shrink)

Drawing on the status characteristic theory, we investigate the effect of gender on board directors’ status ranking and find that all else being equal, female directors’ status ranking is 81.48% of one position lower than that of male directors, a discrepancy that is attributable to gender. We theorize on the mechanism that determines the ways in which the status value of gender on a board affects board interactions, and we predict how this mechanism influences firm outcomes, including excessive managerial spending, (...) social responsibility performance, and firm risk. We test our hypotheses in Chinese firms using an unbalanced panel that includes 5396 firm-year observations for a period of 6 years and find them supported. (shrink)

As the number of consumer transgressions continues to increase, so do their financial repercussions for companies. Though academic and managerial interest in addressing this issue is growing, research on how to dissuade consumers from committing transgressions remains scarce. Drawing on the mental imagery literature and normative moral theory, the present research examines a novel way of reducing consumers’ appraisals of their own transgressions. Whereas an actor-imagery perspective fosters a teleological, egoistic view of morality and, in turn, induces moral leniency, having (...) consumers adopt an observer-imagery perspective fosters a deontological view of morality and, in turn, induces moral stringency. The effects are robust across various types of consumer transgressions, including the purchase of counterfeit products and return fraud in the form of wardrobing. Study 2 also rules out vividness as an alternative explanation for these effects. Theoretical and managerial implications are discussed. (shrink)

The article Can a Good Person be a Good Trader? An Ethical Defense of Financial Trading, written by Marta Rocchi and David Thunder, was originally published Online First without Open Access. After publication in volume 159, issue 1, page 89–103 the authors decided to opt for Open Choice and to make the article an Open Access publication. Therefore, the copyright of the article has been changed to © The Authors 2017 and the article is forthwith distributed under the terms of (...) the Creative Commons Attribution 4.0 International License, which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author and the source, provide a link to the Creative Commons license, and indicate if changes were made. (shrink)

This study investigates how one important accounting professional authority—CPA Canada—discusses accounting ethics and exhorts its members to think about ethics-related issues. To do this, we rely on empirical evidence of the types of arguments used by CPA Canada to describe what they consider acceptable moral justifications in a variety of practical situations that accountants may encounter. We argue that the articles contained in the profession’s primary publication for all members, CPA Magazine, offer a wealth of such evidence. We analyze 237 (...) articles about accounting ethics that were published in CPA Magazine from January 2000 to December 2017, and find evidence of moral pluralism. Six categories of justifications dominate: private commitments, utility, perfectionist ends, general duties, and specific obligations, plus self-interest. Of these categories, the specific obligations logic is the most widely used. We offer a tentative explanation, and discuss the implications of our findings for a better grasp of the complexities of accountants’ practical conflicts and a rethink of the ongoing tension between professionalism and commercialism. (shrink)

From a simple idea to unite asset owners in their quest for responsible investment at its launch in April 2006, the United Nations supported Principles for Responsible Investment have grown in just one decade into an initiative with more than 1500 fee-paying signatories. Jointly, the PRI’s signatories hold assets worth more than $80 trillion, making it one of the more prevalent not-for-profit organizations worldwide. Furthermore, the PRI’s ambitious mission to transform the financial system at large into a more sustainable one (...) makes it a worthwhile subject of inquiry from an institutional perspective. We undertake an empirical investigation of the adoption of the PRI by asset owners during five crucial years of the association’s emergence: 2007–2011. Following a tripartite view of institutional theory proposed by Scott, we explore if regulative, normative, and cultural–cognitive factors influence an asset owner’s decision to subscribe to the PRI. Applying both parametric and non-parametric survival analysis, we find that asset owners are indeed significantly affected by normative, cultural–cognitive, and regulative aspects. In particular, public service employee and labor union pension funds from social backgrounds more culturally aligned with values represented by the RI movement with historically more voluntary legislation on environmental, social, and governance issues are most likely to sign the PRI. In contrast, institutional environments with a higher number of pre-existing mandatory ESG regulation decrease the likelihood of signing the PRI. Our results indicate that normative and cultural–cognitive factors were crucial contributors to the PRI’s growth. With respect to the regulative environments, our results imply that some asset owners may use the PRI as a collective industry initiative to substitute for mandatory legislation. Conversely, a high level of historical mandatory legislation may constrain organizational resources that could otherwise be dedicated to voluntary initiatives such as PRI. Our findings are robust to relevant controls and econometric concerns. (shrink)

This study examines the tensions between the western concept of professional independence and accountants’ commitment to significant others under the care perspective of guanxi. The principle of professional independence is founded on arm’s-length transactions to avoid undue influence on professional and ethical judgement. However, in the relational society of China, social interactions based on Confucianism elicit a duty of care and concern towards significant others in important relationships. For a professional accountant, the commitment to persons with whom they have guanxi (...) is potentially at odds with their commitment to professional independence. Data collected from interviews with Chinese accounting professionals, accounting academics and expatriate accountants working in China provide insight on how Chinese accounting professionals discharge their obligations under guanxi. Notions of guanxi and the rules of exchange identified in Hwang’s model of “Confucian ethics for ordinary people” provide the lens to explain the ethical dilemmas facing Chinese accountants. The findings suggest that accounting professionals prioritise the interests of their superiors and clients over the users of financial reports. Despite accountants’ moral obligation to protect the public interest, personal and professional obligations in China struggle to extend beyond client or employer interests mostly because of the absence of a formal relationship or connection with the public. This contrasts sharply with the notion of professional independence practised in western societies, where accounting professionals must be independent of their clients and superiors and commit to a duty to protect the public interest. The outcome of this study demonstrates the impediments to transplanting western concepts to different cultures. (shrink)

Literature on consumers’ ethical decision making is rooted in a rationalist perspective that emphasizes the role of moral reasoning. However, the view of ethical consumption as a thorough rational and conscious process fails to capture important elements of human cognition, such as emotions and intuitions. Based on moral psychology and microsociology, this paper proposes a holistic and integrated framework showing how emotive and intuitive information processing may foster ethical consumption at individual and social levels. The model builds on social intuitionism (...) to show how consumers’ a priori affect-laden intuitive moral judgments impact their post hoc reflective moral reasoning. Symbolic interactionism is used to interpret consumers as interdependent and socially embedded agents that self-construct their social identity through interactions with other consumers. The proposed social intuitionist framework of consumers’ ethical decision making shows that other-oriented moral emotions—such as elevation, gratitude, and empathy—interact with persuasion and social influence in ethical consumption. Consequently, moral emotions and intuition drive interpersonal persuasion among ethical consumers. Theoretical propositions and implications for consumer ethics theory and practice are discussed. (shrink)

This exploratory study analyzes the extent of alignment between the formal and hidden curricula in responsible management education. Based on case study evidence of a school that has signed the United Nations Principles for Responsible Management Education, we found poor alignment between the school’s explicit RME claims and students’ lived experiences. While the formal curriculum signaled to students that RME was important, the school’s hidden curriculum sent a number of tacit messages that led students to question the relevance and applicability (...) of responsible management. The tacit messages that students received occurred along three “message sites” related to how the formal curriculum was delivered, how students and lecturers interacted, and how the school was governed. On the basis of these findings we develop a proposition that can guide further research in this area, i.e., the connotative level of language use is an important site of misalignments between what lecturers say in relation to RME and how students interpret the meaning of their lecturers’ words. We also discuss further implications of our findings for strengthening the alignment between schools’ formal RME claims and their hidden curriculum. (shrink)

Ethical decision-making theories in behavioural ethics management have been developed through the social sciences, psychology, social psychology, and cognitive neurosciences. These theories are either cognitive, non-cognitive or an integration of both. Other scholars have recommended redefining what ethical means through moral philosophy and theology. Buddhism is a religion, a philosophy, a psychology, an ethical system and an art of living. The divine states in Buddhism are virtues that could be developed by anyone regardless of their religion or non-religion through Buddhist (...) meditation. They are so called because they enable individuals to develop ‘God-like qualities’. The theoretical insights of the divine states indicate how to eliminate negative emotions, such as anger, fear, delusion and envy, by cultivating love and compassion towards both the self and others. Accordingly, this paper contributes to EDM by redefining what ethical means through the meanings managers who practise Buddhist meditation assign to divine states in their lived experience of EDM in organisations in Sri Lanka. The sample consisted of 17 Buddhists, 1 Hindu, 1 Muslim and 1 no-religion. Data were collected using semi-structured in-depth interviews and was analysed with IPA. The findings indicated that how the managers made meaning of an ethical decision was influenced by their loving-kindness, compassion, sympathetic joy and equanimity. The findings also indicated that the managers justified the reasons for their decisions subsequently through the benefits to themselves as well as their employees. Accordingly, this study supports the view that EDM is an integrated approach. (shrink)

In this article, the co-editors of the Leadership and Ethics: Quantitative Analysis section of the journal outline some of the key issues about conducting quantitative research at the intersection of business, ethics, and leadership. They offer guidance for authors by explaining the types of papers that are often rejected and how to avoid some common pitfalls that lead to rejection. They also offer some ideas for future research by drawing upon the opinions of four noted experts in the field to (...) consider the types of research questions we should be asking, the types of theory we should be building, the types of models we should be testing, and the types of methods we should be using. (shrink)