This conceptual article introduces behavioral perspectives into the governance arena and undertakes a psychological assessment of managerial decision making in organizations by elaborating on the treatment of trust and pride in the extant literature. While trust is conceived by governance scholars as a device for monitoring relationships with others, we argue that authentic pride, contrary to hubris, could operate as an attribute of emotional self-regulation allowing corporate leaders to govern the social behavior of their own self. Contrasting the features of (...) trust and authentic pride, we advance several propositions to capture their relevance and simultaneous importance as viable governance mechanisms in light of a manager's level of cognitive moral reasoning. Our study builds a unified theoretical framework of governance which integrates human agency, psychological states, and moral judgment to foster a deeper understanding of complex self-regulatory processes that are activated by decision makers in the execution of their roles. (shrink)

Organizational scholars tend to view justice and compassion as incompatible. While both have important functions in organizational life, compassion's affective elements appear difficult to synthesize with the reasoning and impartiality that underlie the concept of justice. We draw on theoretical arguments from the sensemaking perspective to argue that we can integrate organizational compassion and organizational justice conceptually because both are inherently dynamic processes that rely on emotional and cognitive components, and both are shaped by the social context of the organization. (...) Based on this integrative conceptualization, we propose a construct we call ‘compassionate organizational justice’, in which compassion becomes an integral element of an organization's justice requirements and members’ fairness perceptions, and that those justice perceptions in turn inform future instances of organizational compassion. (shrink)

Given the comprehensive influence of mindfulness on human thought and behavior, and the importance of moral reasoning in business decisions, we examine the role of mindfulness as an antecedent to moral reasoning through two studies. In Study 1, we propose and test a theoretically derived model that links mindfulness and moral reasoning, mediated by compassion and egocentric bias using a survey design. In Study 2, we examine whether mindfulness training enhances moral reasoning using an experimental design with graduate students of (...) business management. The findings of Study 1 substantiate the positive association of mindfulness with moral reasoning. We found that this relationship is fully mediated by compassion and egocentric bias. The results of Study 2 suggest that mindfulness meditation training has a positive impact on individuals' states of mindfulness, compassion, and moral reasoning, and decreases egocentric bias. We relate the findings of the study with contemporary neurological research and discuss the theoretical, pedagogical, and managerial implications. (shrink)

In the egoism philosophical framework, it is contended that when organizations focus on their long-term interests, they, without knowing it, advance the interests of society as a whole, which is perceived as ethical. In this research, this premise is challenged using data collected from the social media outlets of 29 randomly selected companies from the 2013 Fortune 500 list. Through qualitative comparative analysis, the exact opposite was found. In fact, the organizations that focused on striving for their long-term success are (...) perceived as unethical. It was also found that socially responsible organizations are perceived as ethical whereas those that misrepresent their positions and attempt to influence the decisions of others are perceived as unethical. Implications for managers are discussed, and future directions are suggested. (shrink)

Numerous researchers have examined the antecedents of trust between managers and subordinates. Recent studies conclude that their influence varies depending on whether what is being examined is a manager's trust in a subordinate or a subordinate's trust in a manager. However, the reasons given to justify this phenomenon present limitations. This article offers a new theoretical approach that relates the influence of each antecedent to Aristotelian forms of reasoning, ethical, and instrumental. The proposed approach shows that the influence of each (...) antecedent depends on which rationality prevails in the person who trusts. The contribution of this article is to better explain the phenomenon of interpersonal trust formation and its logic, while offering at the same time several practical implications for managers interested in developing an organizational culture based on trust. The article begins with a literature review of more relevant empirical studies analyzing superior–subordinate trust formation and presents some theoretical limitations of the arguments described in these works. Then, it offers a new theorerical approach based on Aristotelian thought to explain the influence of the antecedents of trust in management–subordinate relationships. The theoretical contribution is then confirmed in an empirical study of 163 mid-level managers in Spain. (shrink)

This article aims to advance the discussion of how multinational companies manage the tension between global integration and local responsiveness in their corporate social responsibility. In particular, it studies the relationships between headquarters and subsidiaries in a transnational CSR strategy and the types of coordination mechanisms used. Building on a qualitative study of a multinational bank, we find that in addition to formal and informal coordination mechanisms, a transnational CSR strategy cannot be fully understood without considering lateral learning and participatory (...) decision making. Further, we suggest that discussions about the transnational approach to CSR should not be disentangled from the question about a company's CSR orientation. Finally, we propose some characteristics of transnational CSR and discuss its theoretical and practical implications. (shrink)