The case for socially responsible business conduct is often made from an economical or ethical perspective with the organization as level of analysis. This article focuses on the relationship between the religious belief of corporate decision makers and socially responsible business conduct. Based on in-depth interviews with 20 Dutch executives from different religious backgrounds, the authors find much inductive evidence of a relationship among their conception of God, norms and values, and business conduct. The authors also find that executives with (...) a monotheistic conception of God display a stronger orientation toward socially responsible business conduct than do executives with a pantheistic conception of God. (shrink)

Prior studies suggest that firms headquartered in areas with strong religious social norms have higher ethical standards. In this study, we examine whether the ethical standards associated with local religious norms influence the M&A announcement returns. We document that the M&A announcement returns of acquirer firms increase with the strength of religious social norms in the area surrounding firms’ headquarters. We also document that the relationship is attenuated when acquirer firms have strong corporate social responsibility credentials, is amplified when public (...) trust that firms act in the best interest of stakeholders suffers a negative shock and when the M&A deal has greater economic significance for the acquirer, and manifests predominantly in the lower tail of the distribution of M&A returns. Our findings are consistent with investor assessments of firms’ ethical standards driving the relationship between local religious social norms and M&A announcement returns. We find no evidence for the competing explanation—that investor assessments of firms’ risk preferences drive the documented relationship. (shrink)

This paper presents positivistic, normative/theological, and strategic analyses of the application of religion to the practice of strategic leadership in business. It is argued that elements of religion can enrich several components of strategic leadership. Furthermore, it is argued that the question of whether religion ought to be applied involves the more basic question of whether there is a common basis or a meta-framework relating theological and normative analyses. Finally, because the strategic value of religion in strategic leadership involves varying (...) costs and benefits, an optimal level of integration can be established by applying a cost/benefit analysis to a framework of four ways of relating religion to the business arena based on the degree of integration. (shrink)

Recent research suggests there may be a link between religiousness and business ethics. This study seeks to add to the understanding of the relationship through a questionnaire survey on Malaysian Christians in business. The questionnaire taps into three different constructs. The religiousness construct is reflected in the level of participation in various common religious activities. The love of money construct is captured through the Love of Money Scale as used in Luna-Arocas and Tang [Journal of Business Ethics 50 (2004) 329]. (...) Response to 25 business vignettes taken from Conroy and Emerson [Journal of Business Ethics 50 (2004) 383] would surface ethical attitudes. A convenience sample of 300 was drawn from three large churches in the Kuala Lumpur area each with a congregation exceeding 1000 together with some representation from the smaller churches. The study finds some differences in the ethical attitudes of Malaysian Christians in business with different levels of religiousness. The study also finds that those longer in the faith are less accepting of unethical behavior. As such it can be concluded that there are ethical attitude differences between Christians in business with different levels of religiousness. This lends support to the claim of a positive relationship between religion and business ethics. The more significant finding is that even within a somewhat homogenous religious group there are different love of money profiles resulting in significant differences in ethical attitudes. This suggests that moderating money attitudes can contribute towards stronger ethical attitudes. (shrink)

This paper reports on the findings of a qualitative study to understand how active adherence to the Christian faith influences the way SME owner-managers conceptualise their business practices. The study was based on in-depth interviews with 21 Christian SME owner-managers in Germany and the UK. Using a socio-psychological approach, the data analysis yielded a range of linguistic and conceptual resources that are peculiar to Christian discourse and that have the potential to influence business activity in rather distinctive ways. This paper (...) particularly focuses on those Christian concepts that could be regarded as distinct 'frames' for action. It outlines what effect these concepts had on the respondents and how they were related to business practices. The paper also discusses how this study could inform further research into the influence of other socio-cultural forms of identity on economic actors' conceptualisations of their own practice. (shrink)

This paper reports on the findings of a qualitative study to understand how active adherence to the Christian faith influences the way SME owner-managers conceptualise their business practices. The study was based on in-depth interviews with 21 Christian SME owner-managers in Germany and the UK. Using a socio-psychological approach, the data analysis yielded a range of linguistic and conceptual resources that are peculiar to Christian discourse and that have the potential to influence business activity in rather distinctive ways. This paper (...) particularly focuses on those Christian concepts that could be regarded as distinct 'frames' for action. It outlines what effect these concepts had on the respondents and how they were related to business practices. The paper also discusses how this study could inform further research into the influence of other socio-cultural forms of identity on economic actors' conceptualisations of their own practice. (shrink)

Many business schools profess a commitment to ethics in their mission statements and focus a spotlight on the intersection between the university’s mission and attention to business ethics. To explore this trend, we analyze a sample of students’ values from two universities with an explicit religious foundation and recognized commitment to ethics against students from another university where this attention is not as explicit. This study identifies the personal values orientations (PVOs) for these students, born between 1980 and 2000, thus (...) millennials, and considers if differences can be attributed to the university’s culture and mission or business school curriculum. We utilize Social Identity Theory as a promising framework for illuminating these considerations. Our results confirm that a religious‐orientation characterizing a university’s mission may influence the business students’ (or millennials’) PVOs. Students at the two religious institutions manifested a stronger social, rather than personal, and moral, rather than competence, value orientation. Only marginal differences were discovered when assessing within group differences in the value orientations among our sample of business students. (shrink)

We extend research on the effects of local audit office characteristics on audit quality by investigating whether audit offices in highly religious U.S. Metropolitan Statistical Areas exhibit going concern decisions that reflect heightened professional skepticism relative to audit offices in less religious MSAs. Prior research links religiosity to risk aversion and ethical development and suggests audit practice offices in more religious MSAs are more likely to issue going concern opinions because they will assess the effects of mitigating factors in a (...) more skeptical manner. Our results indicate that audit practice offices located in highly religious MSAs are more likely to issue going concern audit opinions, consistent with a more skeptical assessment of mitigating factors. Additional tests provide direct evidence consistent with the argument that these audit offices are more risk averse in issuing going concern opinions. Our findings are relevant to auditors, audit clients, researchers, and regulators. (shrink)

In 1949 Culliton noted that "... religion has something to offer business" (Culliton, 1949, p. 265). While religion definitely does have something to offer business, especially business ethics, it is only recently that empirical research linking religiosity and business ethics has been conducted. Indeed, religiosity affords a background, against which the ethical nature of business, including marketing and consumer behavior, can be interpreted. This article offers a descriptive, rather than normative, perspective in reviewing articles linking religion to business and consumer (...) ethics. The main objective of the article being both to present some of the most significant empirical findings to date and also to encourage researchers to pursue further research in this relatively under researched area. (shrink)

This article presents the results of an exploratory study that investigated the role that religiosity plays in determining consumer attitudes/beliefs in various situations regarding questionable consumer practices. Two dimensions of religiosity – intrinsic and extrinsic religiousness – were studied. Results indicated that an intrinsic religiousness was a significant determinant of consumer ethical beliefs, but extrinsic religiousness was not related to those beliefs.

In recent times, organizations have experienced consumer backlash as a result of decisions to support controversial causes. To date, little research has attempted to explain consumers’ negative response as a function of religion. This study addresses that gap in the literature and examines consumer religious commitment and Christian consumers’ conservative beliefs in the United States as motivating factors for consumer activist behavior and boycott participation. Findings from a national sample of 531 consumers suggest that consumers evaluate seller’s actions and form (...) ethical judgments. These judgments are a major explanatory variable in consumers’ voice complaints, third-party complaint intentions, and boycott intentions. (shrink)

Religion is an important cultural and individual difference variable. Yet, despite its obvious importance in consumers’ lives, religion in the United States has been under-researched. This study addresses that gap in the literature and investigates the influence of consumer religion in the buyer–seller dyad. Specifically, this study examines the influence of consumer religious commitment and a Christian consumer’s conservative beliefs in the United States on store loyalty when retailers make business decisions which are potentially reli- gious objectionable. This study uses (...) structural equation modeling and applies Anderson and Gerbing’s :411–423, 1988 ) two-step approach to exam- ine data obtained from a national sample of 531 consumers. The results from this study suggest that consumers evaluate seller’s actions and form ethical judgments. These judgments are a major explanatory variable in consumer store loyalty intentions. (shrink)

This study examines the influence of religiousness on different components of marketing professionals' ethical decision making: personal moral philosophies, perceived ethical problem, and ethical intentions. The data are from a national survey of the American Marketing Associations' professional members. The results generally indicate that the religiousness of a marketer can partially explain his or her perception of an ethical problem and behavioral intentions. Results also suggest that the religiousness significantly influences the personal moral philosophies of marketers.

Software piracy is older than the PC and has been the subject of several studies, which have found it to be a widespread phenomenon in general, and among university students in particular. An earlier study by Cohen and Cornwell from a decade ago is replicated, adding questions about downloading music from the Internet. The survey includes responses from 224 students in entry-level courses at two schools, a nondenominational suburban university and a Catholic urban college with similar student profiles. The study (...) found that there has been few if any changes in student opinions regarding the unauthorized duplication of copy- righted materials. Students generally felt that copying commercial software and downloading music from the Internet was acceptable and found that there was no significant correlation between student attitudes and their school’s religious affiliation or lack thereof. Additionally, the study found that a small but significant percentage of respondents considered the other questionable behaviors as ethically acceptable. Finally, the reasons for these attitudes are discussed as well as what colleges can do to correct the situation. (shrink)

This article examines how business students route themselves through the process of cognitive moral development (CMD) to arrive at a more autonomous level of CMD when there is an impetus to do so. In this study, two groups were given Rest’s Defining Issues Test; half the test 1 week and half three weeks later. In between, one group viewed a film of Milgram’s obedience study as a stimulus towards a more autonomous level of CMD. The results of the analysis indicate (...) that viewing the Milgram study produced a positive response regarding subjects’ level of autonomous CMD. However, the response was not uniform across the subject pool. Females showed a greater consistent significant positive response to viewing Milgram while male subjects varied their response contingent upon their functional area of study. While subjects’ functional area of study alone made little difference in the results, when taken in conjunction with gender, significant differences were found between groups. Thus, researchers should take care when investigating differences between subjects’ area of study since gender differences may be present even within an apparently homogenous population-like business students. (shrink)

Despite the prevalent role of guanxi in conducting business in Chinese, it is unclear whether interpersonal guanxi fosters interfirm trust. Taking a contingency approach, this study examines how institutional (government–market relationship and Buddhism influence) and individual (relative role performance and the span of partner control) factors moderate the association between interpersonal guanxi and interfirm trust. Based on a paired survey between salespersons and sales managers and two secondary datasets, this study finds that interpersonal guanxi is positively associated with interfirm trust. (...) Moreover, this positive effect is stronger when firms operate in regions with strong government–market relationships and strong Buddhism influence. In addition, the positive relationship is weaker when guanxi resides in boundary spanners who have relatively high role performance, but becomes stronger when boundary spanners have a broad span of partner control. These findings highlight the situations in which guanxi at an interpersonal level is more or less likely to foster interfirm trust. (shrink)

Despite the prevalent role of guanxi in conducting business in Chinese, it is unclear whether interpersonal guanxi fosters interfirm trust. Taking a contingency approach, this study examines how institutional and individual factors moderate the association between interpersonal guanxi and interfirm trust. Based on a paired survey between salespersons and sales managers and two secondary datasets, this study finds that interpersonal guanxi is positively associated with interfirm trust. Moreover, this positive effect is stronger when firms operate in regions with strong government–market (...) relationships and strong Buddhism influence. In addition, the positive relationship is weaker when guanxi resides in boundary spanners who have relatively high role performance, but becomes stronger when boundary spanners have a broad span of partner control. These findings highlight the situations in which guanxi at an interpersonal level is more or less likely to foster interfirm trust. (shrink)

In this paper, we examine the relationship between Christian religiosity, attitudes towards corporate social responsibility, and CSR behavior of executives. We distinguish four types of CSR attitudes and five types of CSR behavior. Based on empirical research conducted among 473 Dutch executives, we find that CSR attitudes mediate the influence of religiosity on CSR behavior. Intrinsic religiosity positively affects the ethical CSR attitude and negatively affects the financial CSR attitude, whereas extrinsic religiosity stimulates the philanthropic CSR attitude. Financial, ethical, and (...) philanthropic CSR attitudes significantly affect some types of CSR behaviors. However, because religiosity has opposing effects on the three attitudes, the joint mediation effect of the three attitudes is negligible. Furthermore, we find a direct negative influence of intrinsic religiosity on diversity and a direct positive influence on charity. (shrink)

This study was designed to examine the determinants of and differences between the ethical beliefs of two groups of Japanese students in religious and secular universities. Multiple regression analysis revealed that students of the Japanese religious university perceived that young, male, relativistic, and opportunistic students tended to behave less ethically than did older, female, and idealistic students. Students of the Japanese secular university perceived that male, achievement-oriented, and opportunistic students tended to behave less ethically than did female and experience-oriented students. (...) Opportunism was found to be one of the most important determinants in explaining misconduct. Multivariate analysis of variance (MANOVA) and multiple discriminant analysis (MDA) revealed that students of the Japanese secular university tended to score higher on achievement and humanism, and lower on theism and positivism than did students of the Japanese religious university. In addition, students of the Japanese secular university were somewhat more sensitive to academic dishonesty practices than were students of the Japanese religious university. (shrink)

This article examined the effect of culture and religiosity on perceptions of business ethics among students in a tertiary institution in Malaysia. A structured questionnaire was developed with scenarios on various aspects of business ethics, and self-administered to the students in the business studies program. The results from 767 respondents showed that there were significant differences among the Malays, Chinese, and Indian students on seven scenarios namely selling hazardous products, misleading instructions, selling defective products, padding expense account, taking sick to (...) take a day off, keeping quiet on defective products, and respond to supplier's take good care of clients attitude. There was also an association between culture and religiosity. The MANOVA results also showed that culture and religiosity have an effect on perceptions of business ethics. (shrink)

This research explores the influence of religiosity on consumer perception of, and response toward, sexual appeals. The first study (survey, national sample; n = 423) examines the relationship between religiosity and consumer response toward sexual appeals using causal modeling. Study 1 finds that high intrinsic religiosity consumers exhibit more adverse ethical judgments toward the company’s use of sexual appeals and these judgments, in turn, result in inferior attitudes and purchase intent toward the advertised brand. To confirm and expand on these (...) findings, the second study (experiment, young adult sample; n = 216) examines the influence of intrinsic religiosity on consumer response toward both sexual and nonsexual appeals. The results show that sexual appeals elicit inferior (superior) ethical judgments, attitudes, and purchase intent among consumers high (low) in intrinsic religiosity. In contrast, nonsexual appeals elicit (un)favorable responses from consumers who are (low) high in intrinsic religiosity. (shrink)

With the current globalisation and complexity of today’s business environment, there are increasing concerns on the role of business ethics. Using culture and religion as the determinants, this paper presents a cross-national study of attitudes toward business ethics among three countries: Australia, Singapore and Hong Kong. The results of this paper have shown the attitudes toward business ethics to be significantly different among the three countries. It was also found that respondents who practised their religion tend to consider themselves more (...) ethically minded than those who do not. Additional findings on gender have also revealed significant differences between the males and females for respondents in Singapore and Australia. Males are generally considered more ethical than females across the three countries studied. (shrink)

We extend research on the effects of local audit office characteristics on audit quality by investigating whether audit offices in highly religious U.S. Metropolitan Statistical Areas exhibit going concern decisions that reflect heightened professional skepticism relative to audit offices in less religious MSAs. Prior research links religiosity to risk aversion and ethical development and suggests audit practice offices in more religious MSAs are more likely to issue going concern opinions because they will assess the effects of mitigating factors in a (...) more skeptical manner. Our results indicate that audit practice offices located in highly religious MSAs are more likely to issue going concern audit opinions, consistent with a more skeptical assessment of mitigating factors. Additional tests provide direct evidence consistent with the argument that these audit offices are more risk averse in issuing going concern opinions. Our findings are relevant to auditors, audit clients, researchers, and regulators. (shrink)

Lapses in ethical conduct by those in corporate and public authority worldwide have given business researchers and practitioners alike cause to re-examine the antecedents to personal ethical values. We explore the relationship between ethical values and an individual’s long-term orientation or LTO, defined as the degree to which one plans for and considers the future, as well as values traditions of the past. Our study also examines the role of work ethic and conservative attitudes in the formation of a person’s (...) long-term orientation and consequent ethical beliefs. Empirically testing these hypothesized relationships using data from 292 subjects, we find that long-term perspectives on tradition and planning indeed engender higher levels of ethical values. The results also support work ethic’s role in fostering tradition and planning, as well as conservatism’s positive association with planning. Additionally, we report how tradition and planning mediate the influence of conservatism and work ethic on the formation of ethical values. Limitations of the study and future research directions, as well as implications for business managers and academics, are also discussed. (shrink)

The purpose of this paper is to determine whether there is a relationship between a person's degree of religiousness and corporate social responsibility orientation. A total of 411 managers and 506 students from seven universities were surveyed. The statistical analysis showed that religiousness does influence students' orientation toward the economic, ethical, and philanthropic responsibilities of business. It does not, however, have a significant impact upon the managers' attitudes. When the "low religiousness" students and managers were compared, differences were found with (...) respect to the economic, ethical, and philanthropic components of corporate social responsibility. Similar results were obtained when the "high religiousness" students and managers were compared. The implications of these findings are discussed. (shrink)

Using U.S. listed firms during the period from 1971 to 2010, this paper investigates the effect of religion on corporate cost behavior. We find that religion mitigates cost stickiness induced by agency or behavioral biases of managers. This result holds for several robustness tests that address endogeneity concerns. The mitigating effect of religion on cost stickiness is through the channel of reducing top managers’ overconfidence and optimistic bias regarding future demand change and promoting managers’ adherence to fiduciary responsibilities and consideration (...) of shareholder benefits. Further evidence shows that the reduction in cost stickiness caused by religion increases firm value. Overall, our findings suggest that religion reduces the wedge between a firm’s actual and optimal resource commitments, which helps to improve firm value and resource allocation efficiency. (shrink)

Using U.S. listed firms during the period from 1971 to 2010, this paper investigates the effect of religion on corporate cost behavior. We find that religion mitigates cost stickiness induced by agency or behavioral biases of managers. This result holds for several robustness tests that address endogeneity concerns. The mitigating effect of religion on cost stickiness is through the channel of reducing top managers’ overconfidence and optimistic bias regarding future demand change and promoting managers’ adherence to fiduciary responsibilities and consideration (...) of shareholder benefits. Further evidence shows that the reduction in cost stickiness caused by religion increases firm value. Overall, our findings suggest that religion reduces the wedge between a firm’s actual and optimal resource commitments, which helps to improve firm value and resource allocation efficiency. (shrink)

Research on the relationship between religious commitment and business ethics has produced widely varying results and made the impact of such commitment unclear. This study presents an empirical investigation based on a questionnaire survey of business managers and professionals in the United States yielding a database of 1234 respondents. Respondents evaluated the ethical acceptability of 16 business decisions. Findings varied with the way in which the religion variable was measured. Little relationship between religious commitment and ethical judgment was found when (...) responses were compared on the basis of broad faith categories – Catholic, Protestant, Jewish, other religions, and no religion. However, respondents who indicated that religious interests were of high or moderate importance to them demonstrated a higher level of ethical judgment (less accepting of unethical decisions) than others in their evaluations. Evangelical Christians also showed a higher level of ethical judgment. (shrink)

One challenge that globalization has brought to business is that firms, as they expand their market globally through cross-border alliances, need to deal with partner firms from countries of different religious background. The impact of a country’s dominant religion on its firms’ international market entry mode choices has not been examined in traditional approaches. Focusing on hypothesizing the influence of Christian beliefs and atheism (i.e., the absence of belief in any deities), this research aims to fill the gap by exploring (...) religion’s role in providing moral restraint on managers’ propensity for opportunism, which in turn affects these managers’ choices of their firms’ international market entry via non-equity alliances or joint ventures. A study of 22,156 cross-border alliances formed in 48 industries world-wide over 9 years provides new insight toward understanding religion’s influence on firms’ international market entry mode decisions through the ethical dimension of strategic leadership. (shrink)

The relationship between intuition and ethical decision-making has been researched extensively during the past two decades. This study aimed at exploring empirically observable associations between intuition and the moral intensity of ethical decision-making processes. A scenario-based quantitative approach was used to collect data from 157 practising professional spirit mediums. It was found that only collective universal intuition had a significant positive association with the moral intensity of ethical decision-making processes. Personal experience intuition and collective archetype intuition were not significantly associated (...) with moral intensity. This may explain why previous studies were unable to gauge the effects of intuition on ethical decision-making. The results suggest that a pure mind can improve one’s ability to make decisions. Thus, decision-makers would benefit by being more attuned to their sense of morality. (shrink)

Prior literature has demonstrated that religiosity is associated with a reduced acceptance of unethical business practices and financial reporting irregularities. On this premise, we examine whether religiosity, conceptualized as the degree of adherence to religious norms in the geographical area where a firm’s headquarters is located, has an impact on audit firms’ pricing decisions in the US. We measure the intensity of religiosity by the number of adherents relative to the total population in a county and demonstrate that increased religious (...) adherence operates as an institutionalized monitoring mechanism that decreases audit risk and audit costs, which is, in turn, reflected in reduced audit pricing. Additional tests suggest that the impact of religiosity on auditors’ pricing decisions is not differentiated by levels of auditor expertise but that audit fees are determined by an auditor’s relative location in a market sector and religious adherence. We conclude that religious adherence reduces the need for shareholders to bear the costs of monitoring agents, a finding which could be of importance for market participants and regulators. (shrink)

Using survey methodology we examined the relationships between commitment to moral self-improvement (CMSI), religiosity, ethical problem recognition, and behavioral intentions in a sample of 242 business students. Results of the study suggest that CMSI predicts ethical problem recognition and behavioral intentions. Our findings also suggest that CMSI is positively related to religiosity. The study provides some evidence of CMSI being a mediator in the influence of religiosity on ethical problem recognition and behavioral intentions. Compared to religiosity, CMSI turned out to (...) be a better predictor of perceived importance of ethics, ethical problem recognition, and ethical behavioral intentions. The results of the study have implications for increasing understanding of ethical decision-making, future studies of business ethics, and business ethics education. (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)

Given the growing interest in religion and spirituality in the community and workplace, we consider what light one of the oldest sources of human ethics, the Torah, can throw on the vexing issues of contemporary employment ethics and social sustainability. We specifically consider the Torah because it is the primary document of Judaism, the source of all the basic Biblical commandments, and a framework of ethics. A distinctive feature of Jewish ethics is its interpretive approach to moral philosophy: that is, (...) immersion and sense making in a dense, lived-in, complicated moral world, which is particularly useful with regard to ethical analyses of the workplace. Rather than discover or create a new ethic for the employer–employee relationship, we seek to harness general principles and norms from the Torah to contemporary business conditions. In the spirit of sustainability, rather than plunder the new, we recreate from existing resources. Interpretations from the Torah provide a rich source of moral and practical guidance for contemporary business ethics while also responding to academic and popular interest in spirituality and business. These tenets, however, have not to date been specifically directed at current predicaments in employment. We redress this by deriving principles from the Torah and applying them to ethical issues in contemporary employment practices. Practical guidance for both research in and practice of employment ethics is also provided. (shrink)

The purpose of this paper is to determine whether there is a relationship between a person's degree of religiousness and corporate social responsibility orientation. A total of 411 managers and 506 students from seven universities were surveyed. The statistical analysis showed that religiousness does influence students' orientation toward the economic, ethical, and philanthropic responsibilities of business. It does not, however, have a significant impact upon the managers' attitudes. When the "low religiousness" students and managers were compared, differences were found with (...) respect to the economic, ethical, and philanthropic components of corporate social responsibility. Similar results were obtained when the "high religiousness" students and managers were compared. The implications of these findings are discussed. (shrink)

This study examines how local Protestant belief, as one type of social norms, affects corporate cash policies. We find that firms located in areas with more Protestants hold less cash reserves. The influence of local Protestant belief on cash holdings is more profound for firms with weak corporate governance and firms with one geographic segment. In addition, we find that the difference in cash deployment is reflected in the difference in firms’ investment and payout policies. Overall, our study shows that (...) local Protestant belief is an important factor in determining corporate cash policies and helps to mitigate the potential free cash flow problem. (shrink)

Research on management with regard to religion became a growing field of interest in the last decades. Nevertheless, the impact of religion on actor's economic behavior is also an old research topic, as the writings of Max Weber (The protestant ethic and the spirit of capitalism, Allen and Unwin, London, 1930) underline. The purpose of this contribution is to highlight the developments of this topic and to guide scholars to identify possible gaps. The structuring and investigation on this topic will (...) help us to advance and better understand past research, while leading to some further reflections. We conduct a citation analysis of 215 articles and 7,968 cited references to examine the citation structure and make out the most-influential publications that have shaped research most so far. On the basis of the analysis it is to be assumed that three research streams affect progress: Best practices regarding performance issues, religion at work as well as religion, and personal ethics. Finally, the publications that each topic-clusters contains are reflected and discussed to achieve a structural overview of the state of the art of research. (shrink)

This paper explores the relationship between religious belief and the dilemmas Dutch executives confront in daily business practice. We find that the frequency with which dilemmas arise is directly related to various aspects of religious belief, such as the belief in a transcendental being and the intensity of religious practice. Despite this relationship, only 17% of the dilemmas examined involve a religious standard. Most dilemmas originate from a conflict between moral and practical standards. We also find that 79% of the (...) identified dilemmas stem from a conflict between two or more internalized standards of the executive. (shrink)

Many existing studies postulate that in developing economies philanthropy tends to dominate in the CSR orientation delivered by organizations and expected by local populations. To assess this in the emerging economy of Dubai in the United Arab Emirates, we conducted a preliminary investigation of how locals are responding to the growing number of CSR initiatives that are being implemented in the Emirate. Moreover, given that scholars have argued that Islamic principles of philanthropy should guide CSR initiatives in Muslim countries, we (...) also consider if our Emirati respondents connect CSR with Islamic philanthropy. Results from our survey of 267 local Muslim consumers in Dubai indicate that CSR is not typically equated with philanthropy. In addition, respondents displayed an appreciation of the economic benefits that CSR can generate. The implication is that organizations in Dubai no longer need to base their CSR on the platform of Islamic philanthropy as many scholars have argued. Our findings are significant for the wider Gulf region in that they suggest that in wealthy emerging nations, CSR may not be predominantly interpreted as the corporate philanthropy which is needed in poorer developing economies for the provision of infrastructure, schools, hospitals, and housing, and which in some Muslim contexts is also implemented because of local religious values. (shrink)

This paper researches perceptions of the concept of price fairness in the Dutch coffee market. We distinguish four alternative standards of fair prices based on egalitarian, basic rights, capitalistic and libertarian approaches. We investigate which standards are guiding the perceptions of price fairness of citizens and coffee trade organizations. We find that there is a divergence in views between citizens and key players in the coffee market. Whereas citizens support the concept of fairness derived from the basic rights approach, holding (...) that the price should provide coffee farmers with a minimum level of subsistence, representatives of Dutch coffee traders hold the capitalistic view that the free world market price is fair. (shrink)

This paper researches perceptions of the concept of price fairness in the Dutch coffee market. We distinguish four alternative standards of fair prices based on egalitarian, basic rights, capitalistic and libertarian approaches. We investigate which standards are guiding the perceptions of price fairness of citizens and coffee trade organizations. We find that there is a divergence in views between citizens and key players in the coffee market. Whereas citizens support the concept of fairness derived from the basic rights approach, holding (...) that the price should provide coffee farmers with a minimum level of subsistence, representatives of Dutch coffee traders hold the capitalistic view that the free world market price is fair. (shrink)

This paper investigates whether local religious beliefs have a significant impact on the practice of earnings management. We extend the existing literature on the role of firm characteristics in mitigating earnings management by showing that local religious beliefs significantly impact the practice of earnings management. Specifically, exploring firms located in the U.S. counties that vary from 2000 through 2010, we document the negative relationship between religiosity and earnings management using multivariate regression analysis. Our results show that firms in counties with (...) strong religious social norms are less likely to engage in earnings management. Furthermore, we attempt to mitigate endogeneity concerns by employing a modified Difference-Differences model and Propensity score matching methods. We find that the negative effects of religion on earnings management still hold. Overall, these findings emphasize the empirical relevance of the association between the local social norms and earnings manipulations. (shrink)

Ethical issues at the workplace have once again become topical and important due to considerable adverse publicity surrounding reports of unethical business practices by corporate managers. Accordingly, this paper re-visits the question of whether gender, age and work experience do have an effect on ethical judgement, using 655 business students as respondents. This is necessary as business students are likely to become managers during their career and will face complex ethical concerns and dilemmas in their daily, routine affairs. The findings (...) currently demonstrate that females are more ethically aware than their male counterparts – that is, there are differences between males and females regarding ethical judgement. There is also evidence to suggest that age is a factor that does impact on ethical judgement. However, we also found evidence to suggest that in some cases, the age factor does not necessarily have a significant impact on ethical awareness. The results further indicate that there is a difference in ethical judgement related to work experience. However, at the same time, in one question there is no evidence to suggest the claim that work experience does impact significantly on ethical judgement. Overall, it appears that ethical awareness does increase alongside work experience. (shrink)

Ethical issues at the workplace have once again become topical and important due to considerable adverse publicity surrounding reports of unethical business practices by corporate managers. Accordingly, this paper re‐visits the question of whether gender, age and work experience do have an effect on ethical judgement, using 655 business students as respondents. This is necessary as business students are likely to become managers during their career and will face complex ethical concerns and dilemmas in their daily, routine affairs. The findings (...) currently demonstrate that females are more ethically aware than their male counterparts – that is, there are differences between males and females regarding ethical judgement. There is also evidence to suggest that age is a factor that does impact on ethical judgement. However, we also found evidence to suggest that in some cases, the age factor does not necessarily have a significant impact on ethical awareness. The results further indicate that there is a difference in ethical judgement related to work experience. However, at the same time, in one question there is no evidence to suggest the claim that work experience does impact significantly on ethical judgement. Overall, it appears that ethical awareness does increase alongside work experience. (shrink)

Using a sample of Chinese listed firms for the period of 2004–2010, this study examines the impact of religion on corporate philanthropic giving. Based on hand-collected data of religion and corporate philanthropic giving, we provide strong and robust evidence that religion is significantly positively associated with Chinese listed firms’ philanthropic giving. This finding is consistent with the view that religiosity has remarkable effects on individual thinking and behavior, and can serve as social norms to influence corporate philanthropy. Moreover, religion and (...) corporate philanthropic giving have a significantly weaker (less pronounced) positive association for state-owned enterprises than for non-state-owned enterprises. The results are robust to a variety of sensitivity tests. Our results highlight religious influence on corporate philanthropic giving in contemporary China, an old traditional country with a typical communist economy. (shrink)

In China, Buddhism and Taoism are two major religions. Using a sample of 10,363 firm-year observations from the Chinese stock market for the period of 2001–2010, I provide strong and robust evidence that religion (i.e., Buddhism and Taoism on the whole) is significantly negatively associated with owner-manager agency costs. In particular, using firm-level religion data measured by the number of religious sites within a radius of certain distance around a listed firm’s registered address, I find that religion is significantly negatively (...) (positively) associated with expense ratio (asset utilization ratio), the positive (reverse) proxy for owner-manager agency costs. This finding is consistent with the following view: religiosity has remarkable effects on the way how an individual thinks and behaves, and thereof can curb managers from unethical business practices. Moreover, my findings suggest that the negative association between religion and owner-manager agency costs is attenuated for firms with strong external monitoring mechanisms such as higher Marketization and high-quality auditors. Furthermore, after separating Buddhism from Taoism, my finding indicates that above conclusions are only available for Buddhism, suggesting that different religions may have asymmetric influence on owner-manager agency costs. Above results are robust to various measures of religiosity and a variety of robustness checks. (shrink)

In the Chinese stock market, controlling shareholders often use inter-corporate loans to expropriate a great amount of cash from listed firms, through a process called “tunneling.” Using a sample of 10,170 firm-year observations from the Chinese stock market for the period of 2001–2010, I examine whether and how Buddhism, China’s most influential religion, can mitigate tunneling. In particular, using firm-level Buddhism data, measured as the number of Buddhist monasteries within a certain radius around Chinese listed firms’ registered addresses, this study (...) provides strong evidence that Buddhism intensity is significantly negatively associated with tunneling. This finding is consistent with the view that Buddhism has important influence on corporate behavior and can serve as a set of social norms and/or an alternative mechanism to mitigate controlling shareholders’ unethical tunneling behavior. In addition, my findings also reveal that the negative association between Buddhism intensity and tunneling is attenuated for firms that have high analyst coverage. The results are robust to various measures of Buddhism intensity and a variety of sensitivity tests. (shrink)

Using a sample of 12,061 firm-year observations from the Chinese stock market for the period of 2001–2011 and geographic-proximity-based Confucianism variables, this study provides strong evidence that Confucianism is significantly negatively associated with minority shareholder expropriation, implying that Confucianism does mitigate agency conflicts between the controlling shareholder and minority shareholders. This finding suggests that Confucianism has important influence on business ethics, and thus can serve as an important ethical philosophy or social norm to mitigate the controlling shareholder’s unethical expropriation behavior. (...) Moreover, my findings reveal that the nature of the ultimate owner attenuates the negative association between Confucianism and minority shareholder expropriation, suggesting that Confucianism’s negative impact on minority shareholder expropriation is less pronounced for state-owned enterprises than for non-state-owned enterprises. The above results are robust to a variety of sensitivity tests and my findings are valid after controlling for the potential endogeneity between Confucianism and minority shareholder expropriation. (shrink)