In response to pressures to be more “socially responsible,” corporations are becoming more active in global communities through direct involvement in social initiatives. Critics, however, question the sincerity of these activities and argue that firms are simply attempting to stave off stakeholder pressures without providing a corresponding benefit to society. By drawing on institutional theory and resource dependence theory, we consider what factors influence the adoption of a “meaningful” social initiative—an initiative that is sustainable and has the potential for a (...) significant positive impact on society—as opposed to a symbolic initiative. In addition, we raise the question of how social initiatives—both meaningful and symbolic—participate in the “institutional war” over the meaning of corporate social responsibility. (shrink)

A growing literature has focused on understanding how to detect and deter unethical consumer behavior. In this work, we focus on a particularly important type of unethical consumer behavior, consumer insurance fraud, and we analyze a unique dataset to understand how experts investigate suspicious claims. Two separate but related literatures inform the process of investigating suspicious insurance claims. The first literature is grounded in field research and emphasizes the importance of secondary sources. The second literature is grounded in laboratory studies (...) that emphasize the importance of interpersonal interactions. Here we draw upon both literatures to consider the importance of claimant interviews within the context of many investigative actions and the potential for claimants to avoid interviews. In an empirical study using qualitative and quantitative data from auto insurance claim investigations, we analyze investigative chronologies conducted by skilled experts. In doing so, we find that even when investigators can access information from a variety of sources such as witnesses, databases, and physical evidence, claimant interviews are the most important step in determining whether or not claims are denied or paid. Furthermore, we identify interpersonal avoidance as an important signal of unethical claimant behavior. Our findings inform deception detection theory and practice. We identify implications for deception detection in business, particularly for consumer unethical behavior and insurance fraud investigations. (shrink)

ABSTRACT:U.S. Organizational Sentencing Guidelines provide firms with incentives to develop formal ethics programs to promote ethical organizational cultures and thereby decrease corporate offenses. Yet critics argue such programs are cosmetic. Here we studied bank employees before and after the introduction of formal ethics training—an important component of formal ethics programs—to examine the effects of training on ethical organizational culture. Two years after a single training session, we find sustained, positive effects on indicators of an ethical organizational culture (observed unethical behavior, (...) intentions to behave ethically, perceptions of organizational efficacy in managing ethics, and the firm’s normative structure). While espoused organizational values also rose in importance post-training, the boost dissipated after the second year which suggests perceptions of values are not driving sustained behavioral improvements. This finding conflicts with past theory which asserts that enduring behavioral improvements arise from the inculcation of organizational values. Implications for future research are discussed. (shrink)

ABSTRACT:U.S. Organizational Sentencing Guidelines provide firms with incentives to develop formal ethics programs to promote ethical organizational cultures and thereby decrease corporate offenses. Yet critics argue such programs are cosmetic. Here we studied bank employees before and after the introduction of formal ethics training—an important component of formal ethics programs—to examine the effects of training on ethical organizational culture. Two years after a single training session, we find sustained, positive effects on indicators of an ethical organizational culture (observed unethical behavior, (...) intentions to behave ethically, perceptions of organizational efficacy in managing ethics, and the firm’s normative structure). While espoused organizational values also rose in importance post-training, the boost dissipated after the second year which suggests perceptions of values are not driving sustained behavioral improvements. This finding conflicts with past theory which asserts that enduring behavioral improvements arise from the inculcation of organizational values. Implications for future research are discussed. (shrink)

We present two studies that examine the effects of guanxi on multiple social groups from the perspective of Chinese business people. Study 1 (N = 203) tests the difference in perceived effects of six guanxi contextualizations. Study 2 (N = 195) examines the duality of guanxi as either helpful or harmful to social groups, depending on the contextualization. Findings suggest guanxi may result in positive as well as negative outcomes for focal actors and the aggregate.

I apply stigma-management strategies to corporate scandals and expand on past research by (a) describing a particular type ofstigma management strategy that involves accepting responsibility while denying it, (b) delineating types of stigma that occur in scandals (demographic versus character), and (c) considering the moral implications of shifting stigmas that arise from scandals. By emphasizing the distinction between character and demographic stigma, I make progress in evaluating the moral implications of shifting different types of stigma.

ABSTRACT:While tone at the top is widely regarded as an important predictor of ethical behavior in organizations, we argue that recent research overlooks the various conflicting ethical tones present in many multi-organizational work settings. Further, we propose that the resolution processes promulgated in many firms and professional associations to reconcile this conflict reinforce the tone at the bottom or a tone at the top of the employee’s organization, and that both of these approaches can conflict with the tone at the (...) top of other important organizations such as professional and regulatory organizations. Here we adapt Integrative Social Contract Theory’s priority rules to propose a multi-tone reconciliation process which prioritizes conflicting ethical tones based upon features of the organization and the effects on society. Using three contextualizations, we demonstrate the effectiveness of the multi-tone reconciliation process over current processes. We conclude with recommendations for future research and implications for practice. (shrink)

Recent corporate social initiatives (CSIs) have garnered criticisms from a wide range of audiences due to perceived inconsistencies. Some critics use the label “woke” when CSIs are perceived as inconsistent with the firm’s purpose. Other critics use the label “woke washing” when CSIs are perceived as inconsistent with the firm’s practices or values. I will argue that this derogatory use of woke is stigmatizing, leads to claims of hypocrisy, and can cause stakeholder backlash. I connect this process to our own (...) field by considering inconsistencies in our organizations and in our teaching that could garner similar criticisms. After describing the stigmatization process, I consider the moral implications of inconsistencies for CSIs and draw parallels to our field. I end by suggesting next steps for our field in response to the stigmatization of CSIs and to guard against the stigmatization of our own work. (shrink)

Rankings of countries by perceived corruption have emerged over the past decade as leading indicators of governance and development. Designed to highlight countries that are known to be corrupt, their objective is to encourage transparency and good governance. High rankings on corruption, it is argued, will serve as a strong incentive for reform. The practice of ranking and labeling countries "corrupt," however, may have a perverse effect. Consistent with Social Labeling Theory, we argue that perceptual indices can encourage the loss (...) of needed investment and, thus, contribute to higher rates of corruption within unfavorably ranked countries. In effect, corruption indices may inhibit foreign direct investment, the effect of which is to encourage the status quo in terms of corruption ranking. Using an experimental study design, we test the effects of country corruption rankings on the assessment of country investment desirability and find ranking exposure causes shifts in country investment desirability for 10 of 12 countries studied. These findings suggest that corruption rankings, which are based on perceptions of corruption, may cause country isolation and a reduction in legitimate means of investment. (shrink)

I apply stigma-management strategies to corporate scandals and expand on past research by (a) describing a particular type ofstigma management strategy that involves accepting responsibility while denying it, (b) delineating types of stigma that occur in scandals (demographic versus character), and (c) considering the moral implications of shifting stigmas that arise from scandals. By emphasizing the distinction between character and demographic stigma, I make progress in evaluating the moral implications of shifting different types of stigma.

I apply stigma-management strategies to corporate scandals and expand on past research by (a) describing a particular type ofstigma management strategy that involves accepting responsibility while denying it, (b) delineating types of stigma that occur in scandals (demographic versus character), and (c) considering the moral implications of shifting stigmas that arise from scandals. By emphasizing the distinction between character and demographic stigma, I make progress in evaluating the moral implications of shifting different types of stigma.

ABSTRACT:Organizations adopt formal sanctioning systems to deter ethical violations, but the formal systems’ effectiveness may be undermined by informal sanctioning systems which promote violations. I conducted an ethnographic study of six trading crowds on two financial exchanges to understand how informal and formal sanctioning systems, which are grounded in different interpretations of equity, interact to affect trader deviance from rules established by the financial exchange (exchange deviance). To deter informal trader norms that conflict with exchange rules, the exchanges formally prohibit (...) traders’ informal sanctions. The exchanges, however, underestimate traders’ informal sanctions related to ostracism and social rejection, which are not only difficult for the exchanges to detect, but also interpersonally hurtful and harmful to trader performance. Consequently, the traders’ informal social sanctions lead to secondary sanctions from trading firms. Ultimately, the informal sanctioning system evades the formal sanctioning system by exploiting what the exchanges deem to be minor rule violations. (shrink)

As research in the areas of unethical and ethical leadership grows, we note the need for more consideration of the normative assumptions in the development of constructs. Here, we focus on a subset of this literature, the “dark side” of supervisory behavior. We assert that, in the absence of a normative grounding, scholars have implicitly adopted different intuitive ethical criteria, which has contributed to confusion regarding unethical and ethical supervisory behaviors as well as the proliferation of overlapping terms and fragmentation (...) of research. Accordingly, we offer a definition of unethical supervision grounded in the normative theories and develop a framework of unethical supervision by analyzing the constructs associated with unethical supervision from a normative perspective. Our analysis suggests a heavy emphasis on violations of the right to dignity. We also note that utilitarianism and certain forms of rights as well as justice have been largely overlooked in the unethical supervision literature. We conclude by considering the implications of our conceptualization for theory on the antecedents and consequences of unethical supervision and by explaining how our approach extends to the larger literature on unethical and ethical leadership. (shrink)

This paper extends the discussion of guanxi beyond instrumental evaluations and advances a normative assessment of guanxi. Our discussion departs from previous analyses by not merely asking, Does guanxi work? but rather Should corporations use guanxi? The analysis begins with a review of traditional guanxi definitions and the changing economic and legal environment in China, both necessary precursors to understanding the role of guanxi in Chinese business transactions. This review leads us to suggest that there are distinct types of, and (...) uses for guanxi. We identify the potentially problematic aspects of certain forms of guanxi from a normative perspective, noting among other things, the close association of particular types of guanxi with corruption and bribery. We conclude that there are many different forms of guanxi that may have distinct impacts on economic efficiency and the well-being of ordinary Chinese citizens. Consistent with Donaldson and Dunfee (1999), we advocate a particularistic analysis of the different forms of guanxi. (shrink)

While corporate social responsibility (CSR) is expected to benefit the firm and attract employees, few have examined the effects of CSR on employees outside of work. Extending the organizational citizenship literature, we conceptualize employee engagement in CSR at work and outside of work as a form of “societal citizenship behavior.” Across two studies of working adults, we examine the relationship between identification with an employer that engages in CSR and different forms of employee societal citizenship behaviors (e.g., donations, volunteering) outside (...) of work. In Study 1 (N = 430 employees), we focus upon CSR donation programs and find that identification with an employer that engages in CSR and participating in employer CSR donation programs affect employee citizenship behavior (donations) outside of work. In Study 2 (N = 285 employees), we examine a broader set of citizenship behaviors inside and outside of work and find the relationships hold. Identification with an employer that engages in CSR relates positively to citizenship behavior at work and outside of work. In total, our study results suggest that employer CSR affects employee citizenship behaviors outside of work. We end with directions for future research. (shrink)

A growing literature has focused on understanding how to detect and deter unethical consumer behavior. In this work, we focus on a particularly important type of unethical consumer behavior, consumer insurance fraud, and we analyze a unique dataset to understand how experts investigate suspicious claims. Two separate but related literatures inform the process of investigating suspicious insurance claims. The first literature is grounded in field research and emphasizes the importance of secondary sources. The second literature is grounded in laboratory studies (...) that emphasize the importance of interpersonal interactions. Here we draw upon both literatures to consider the importance of claimant interviews within the context of many investigative actions and the potential for claimants to avoid interviews. In an empirical study using qualitative and quantitative data from auto insurance claim investigations, we analyze investigative chronologies conducted by skilled experts. In doing so, we find that even when investigators can access information from a variety of sources such as witnesses, databases, and physical evidence, claimant interviews are the most important step in determining whether or not claims are denied or paid. Furthermore, we identify interpersonal avoidance as an important signal of unethical claimant behavior. Our findings inform deception detection theory and practice. We identify implications for deception detection in business, particularly for consumer unethical behavior and insurance fraud investigations. (shrink)

The effectiveness of professional sanctions against violations rests upon the severity of sanctions and detection of violations. Here we examine perceptions of professional violation detection in auditing where the professional standards may conflict with the interests of the auditor’s firm. Using a sample of future and experienced auditors, we test the relationship between professional violations and auditors’ perceptions of the likelihood that severely-sanctioned violations will be discovered (a) by the audit profession, and (b) by the auditor’s firm. In our study, (...) an auditor’s belief that professional bodies are likely to detect professionalviolations relates positively to auditor professionalism. However, we find beliefs that the audit firm will detect severely-sanctioned professional violations negatively affect auditor professionalism. In our study, the lowest level of professionalism occurs when auditors believe that their own audit firm, but not the audit profession, will detect a professional violation. We also find that auditors’ internalization of professional standards relates positively to auditor professionalism. Implications for future research and practice are discussed. (shrink)

Research on ethical norms has grown in recent years, but imprecise language has made it unclear when these norms prescribe “what ought to be” and when they merely describe behaviors or perceptions (“what is”). Studies of ethical norms, moreover, tend not to investigate whether participants were influenced by the prescriptive aspect of the norm; the studies primarily demonstrate, rather, that people will mimic the behaviors or perceptions of others, which provides evidence for the already well-substantiated social proof theory. In this (...) review article, we delineate three streams of norms research in business ethics: behavioral, perceptual, and prescriptive. We argue that by properly categorizing norms, and designing studies to investigate when prescriptions, more than mere mimicry, improve ethical outcomes in organizations, researchers can enhance managers’ efforts to promote ethical outcomes in organizations. (shrink)

We address how to ethically evaluate workplace practices when workplace behavioral norms conflict with employees’ attitudes toward those norms, which, according to research on psychological contract violations, regularly occurs. Drawing on Scanlonian contractualism, we introduce the intersubjective reflection process (IR process). The IR process ethically evaluates workplace practices according to whether parties to a workplace practice have intersubjectively valid grounds to veto the practice. We present normative and empirical justification for this process and apply the IR process to accounts of (...) workplace moral dilemmas. We end by identifying future directions for research related to the IR process. (shrink)

While deliberation has traditionally played a central role in philosophical and behavioral accounts of ethical decision-making, several recent studies challenge the value of deliberation. These studies find that deliberative thinking, such as considering divergent views or different perspectives, leads to less ethical decisions. We observe, however, that these studies do not address normative deliberation, in which decision-makers consider or apply a normative standard. We predict that normative deliberation improves ethical decision-making. Across six experiments, we examine the effects of non-normative deliberation (...) and normative deliberation on ethical decision-making. We find that normative deliberation improves ethical decision-making and, in contrast to recent studies, no form of deliberation harms ethical decision-making. (shrink)

This article explores the plausibility of some intuitions and counter intuitions about the anti-corruption efforts of MDBs and international organizations leveraging the power of the private sector. Regulation of a sizable percentage of global private sector actors now falls into a new area of international governance with innovative institutions, standards, and programs. We wrestle with the role and value of private sector partnerships and available informal and formal social controls. Crafting proportional informal controls (e.g., monitoring, evaluations, and sanctions) and proper (...) incentives to cooperative games across networks are the lynchpins of successful collective action programs. Ambivalence with informal social controls or effective incentives, we argue, risks far too much deference to private sector interests. (shrink)

In this new interpretation of Rousseau's political thought, Daniel E. Cullen demonstrates that the concept of freedom is fundamental to the complex unity of Rousseau's work. He shows that the pervasive tension in Rousseau's thought between freedom and order, legitimacy and reliability can be explained as an effort to attune the political to the natural condition and to reestablish a condition of independence in political and social circumstances. Cullen's argument bears important implications for those who currently seek to bolster the (...) case for participatory democracy by appealing to Rousseauian assumptions and conclusions. Cullen's aim is to clarify some of the issues that divide liberals from communitarians and constitutionalists from participatory democrats in the current debate about freedom, rights, morality, and politics in America. In affirming Rousseau's fundamental philosophical agreement with liberals concerning human nature and with conservatives concerning the character of a good society, Cullen suggests that Rousseau has offered perhaps the only possible theoretical resolution of the tension implicit in democratic freedom. In light of what Rousseau calls for in order to bring about this resolution, however, Cullen wonders whether the time has come to rethink fundamental questions about human nature and citizenship that underlie contemporary problems of political theory. Freedom in Rousseau's Political Philosophy will be of interest to scholars and students of the history of political thought and contemporary democratic theory. (shrink)

Introduction: All is trash that reason cannot reach : unenlightened writers and the postmodern world -- Learning to read, learning to listen in Robinson Crusoe -- The hymns of Isaac Watts and postmodern worship : aesthetic knowledge as a response to the Enlightenment critique of religion -- Jonathan Swift's information machine and the critique of technology -- Christopher Smart's poetry and the dialogue between science and theology -- Festival and discipline in revolutionary France and postmodern times -- Remembering things past (...) : tradition as a way of knowing in Edmund Burke and Hans-Georg Gadamer -- Reconciling the heart with the head : the poetry of William Cowper and the thought of Michael Polanyi. (shrink)

This book explores the fundamental concepts that keep companies successful in the era of globalization and the internet, investigating the implementation of best practices and how ethics can be taught to the next generation of business experts.

There is much discourse and focus on the social determinants of health, but undergirding these multiple intersecting and interacting determinants are legal and political determinants that have operated at every level and impact the entire life continuum. The United States has long grappled with advancing health equity via public law and policy. Seventy years after the country was founded, lawmakers finally succeeded in passing the first comprehensive and inclusive law aimed at tackling the social determinants of health, but that effort (...) was short-lived. Today the United States is faced with another fork in the road relative to the advancement of health equity. This article draws on lessons from history and law to argue that researchers, providers, payers, lawmakers and the legal community have a moral, economic and national security imperative to address not only the negative outcomes of health disparities, but also the imbalance of inputs resulting from laws and policies which fail to employ an equity lens. (shrink)

Political philosophers rarely take on the topic of political corruption, despite the fact that corruption is so costly to human wellbeing, and so clearly separates well-governed from poorly governed polities. Ceva and Ferretti's book is the most complete attempt to remedy this deficit to date. Their key contribution is to conceptualize institutions in such a way that the offices they define link clearly to public ethics. Officeholders are accountable for their power mandate, not just within a hierarchy, but ethically, because (...) their duties serve the public purposes that justify the institution. This said, their approach works best for impartial institutions in which the public duties of offices are clear and actionable, such as professional bureaucracies. We also need an ethically driven conception of political corruption for political institutions that contain and channel political partiality, especially democratic institutions within which the ethical purposes of public legislation are argued, deliberated, and voted. Extending a public ethics account of political corruption to democratic institutions can and should be a next step in this important project. (shrink)

This article, Based on a study of the "euthyphro," "apology" and "crito," suggests that for socrates (and therefore, Presumably, The young plato) piety is service to the dialectic, And that for socrates the dialectic itself takes over the position reserved in the popular religion for the gods (thus making socrates guilty, At least metaphorically, Of the charge of believing in "other new divine powers"). Part one seeks to establish that the dialectic controls the pious man's beliefs; part two, That it (...) controls his destiny; and part three, That it controls his identity. Failure to engage in, Or disobedience to the dialectic "leads to the worst forms of immorality, And brings down judgments that reduce the gods to low comedy, Men to tragedy." it is further argued that because socrates held the dialectic to be fundamental, He also held that the only just form of government is democracy. (shrink)

James Bohman’s work involves a paradigm shift in how we conceive democracy in complex, pluralized, globalized contexts comprised of multiple, overlapping constituencies that often have broad extension in space and time. He breaks with theories that view democracy as comprised of a bounded demos legislating for itself, and which conceptualize democracy as ways of organizing territorial, state-organized political entities. Elements of a progressive democratic theory that travels across borders should be built out of three ideas: a nonutopianism that pays close (...) attention to the “circumstances of politics”; institutions that enable nondomination, which helps to push conflict resolution toward the democratic media of deliberation, bargaining, compromise, and voting; and reflexive institutions that enable the deliberative generation, revision, and renewal of collective procedures and decisions, and which organize the creativity, intelligence, and energy of individuals. (shrink)

The attempt to find usable diagrams fornterms of the sort devised by John Venn seems to have originated with Venn himself, who published diagrams for up to five classes (the fifth class, however, was shaped like a doughnut, and contained an area outside itself — like the hole in the doughnut). Venn then suggested that “if we wanted to use a diagram forsixterms (x, y, z, w, v, u) the best plan would probably be to taketwofive-term figures, one for theupart (...) and one for the non-upart of all the other combinations …” Such a method would, as Venn admits, be somewhat confusing to the eye, and thus fail to fulfil one of the major purposes of the diagram; nevertheless, it is a method which could be extended to covernclasses.Venn also suggests (but without illustration) another method for drawing diagrams fornterms: “… the rule of formation would be very simple. We should merely have to begin by drawing any closed figure, and then proceed to draw others subject to the one condition that each intersect once, and once only, all the existing subdivisions produced by those which had gone before.” Then, in a rather surprising footnote, he adds: “It will be found that when we adhere to continuous figures, instead of the discontinuous five-term figure given above, there is a tendency for the resultant outlines thus successively drawn to assume a comb-like shape after the first four or five. If we begin by circles or other rounded figures the teeth are curved, if by parallelograms then they are straight. (shrink)

The metaphysical center of Plato’s work has traditionally been taken to be his Doctrine of Forms; the epistemological center, the Doctrine of Recollection. The Symposium has been viewed as one of the clearest explanations of the first and Meno as one of the clearest explanations of the other. The Masks of Dionysos challenges these traditional interpretations.

Plagiarism is increasingly evident in business and academia. Though links between demographic, personality, and situational factors have been found, previous research has not used actual plagiarism behavior as a criterion variable. Previous research on academic dishonesty has consistently used self-report measures to establish prevalence of dishonest behavior. In this study we use actual plagiarism behavior to establish its prevalence, as well as relationships between integrity-related personal selection and workplace deviance measures. This research covers new ground in two respects: (a) That (...) the academic dishonesty literature is subject to revision using criterion variables to avoid self bias and social desirability issues and (b) we establish the relationship between actual academic dishonesty and potential workplace deviance/white-collar crime. (shrink)

Plagiarism is increasingly evident in business and academia. Though links between demographic, personality, and situational factors have been found, previous research has not used actual plagiarism behavior as a criterion variable. Previous research on academic dishonesty has consistently used self-report measures to establish prevalence of dishonest behavior. In this study we use actual plagiarism behavior to establish its prevalence, as well as relationships between integrity-related personal selection and workplace deviance measures. This research covers new ground in two respects: (a) That (...) the academic dishonesty literature is subject to revision using criterion variables to avoid self bias and social desirability issues and (b) we establish the relationship between actual academic dishonesty and potential workplace deviance/white-collar crime. (shrink)

Irish philosopher George Bishop Berkeley was one of the greatest philosophers of the early modern period. Along with David Hume and John Locke he is considered one of the fathers of British Empiricism. Berkeley is a clear, concise, and sympathetic introduction to George Berkeley’s philosophy, and a thorough review of his most important texts. Daniel E. Flage explores his works on vision, metaphysics, morality, and economics in an attempt to develop a philosophically plausible interpretation of Berkeley’s oeuvre as whole. Many (...) scholars blur the rejection of material substance with the claim that only minds and things dependent upon minds exist. However Flage shows how, by distinguishing idealism from immaterialism and arguing that Berkeley’s account of what there is is dependent upon what is known, a careful and plausible philosophy emerges. The author sets out the implications of this valuable insight for Berkeley’s moral and economic works, showing how they are a natural outgrowth of his metaphysics, casting new light on the appreciation of these and other lesser-known areas of Berkeley’s thought. Daniel E. Flage’s Berkeley presents the student and general reader with a clear and eminently readable introduction to Berkeley’s works which also challenges standard interpretations of Berkeley’s philosophy. (shrink)