Business Ethics

Edited by Joakim Sandberg (University of Gothenburg)
About this topic
Summary Business ethics is the application of ethical theories and concepts to activity within and between commercial enterprises, and between commercial enterprises and their broader environment. It is a wide range of activity, and no brief list can be made of the issues it raises. The safety of working practices; the fairness of recruitment; the transparency of financial accounting; the promptness of payments to suppliers; the degree of permissible aggression between competitors: all come within the range of the subject. So do relations between businesses and consumers, local communities, national governments, and ecosystems. Many, but not all, of these issues can be understood to bear on distinct, recognized groups with their own stakes in a business: employees, shareholders, consumers, and so on. A central question concerns how businesses ought to weigh the interests of different stakeholders against each other; particularly what moral import to give to profit-making (presumably in the interest of shareholders in large corporations).
Key works Much of business ethics starts from Milton Friedman's provocative article "The Social Responsibility of Business is to Increase Profits" (reprinted in Snoeyenbos et al 2001, Jennings 2002, ...). Some well-cited expressions of alternative views are Freeman 1994...
Introductions Some introductions by Snoeyenbos et al 2001, Shaw 2002.
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  1. A Paradox of Ethics: Why People in Good Organizations do Bad Things.Muel Kaptein - forthcoming - Journal of Business Ethics:1-20.
    This article takes a novel approach to explaining the causes of unethical behavior in organizations. Instead of explaining the unethical behavior of employees in terms of their bad organization, this article examines how a good organization can lead to employees’ unethical behavior. The main idea is that the more ethical an organization becomes, the higher, in some respects, is the likelihood of unethical behavior. This is due to four threatening forces that become stronger when an organization becomes more ethical. These (...)
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  2. What (If Anything) is Wrong with High-Frequency Trading?Carl David Mildenberger - forthcoming - Journal of Business Ethics:1-15.
    This essay examines three potential arguments against high-frequency trading and offers a qualified critique of the practice. In concrete terms, it examines a variant of high-frequency trading that is all about speed—low-latency trading—in light of moral issues surrounding arbitrage, information asymmetries, and systemic risk. The essay focuses on low-latency trading and the role of speed because it also aims to show that the commonly made assumption that speed in financial markets is morally neutral is wrong. For instance, speed is a (...)
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  3. My Company Cares About My Success…I Think: Clarifying Why and When a Firm’s Ethical Reputation Impacts Employees’ Subjective Career Success.Darryl B. Rice, Regina M. Taylor, Yiding Wang, Sijing Wei & Valentina Ge - forthcoming - Journal of Business Ethics:1-19.
    The value of a company’s ethical reputation has become a focal point for management researchers. We seek to join this conversation and extend the research centered on a firm’s ethical reputation. We accomplish this by shifting our focus away from its impact on external stakeholders to its impact on internal stakeholders. To this end, we rely on signaling theory to explain why a firm’s ethical reputation matters to its employees in an effort to bridge the macro–micro research gap. Across two (...)
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  4. Sen, Amartya.Sanjit Chakraborty - 2022 - Encyclopedia of Business and Professional Ethics.
    Amartya Sen’s remarkable endeavour to realize the normative capability of welfare economics goes beyond the impecunious resultants of the neoclassical welfare economy. The neoclassical welfare economy decoratively bracketed values to speculate about factual observations. This was due to the influence of logical positivists and their convictions about experimental scientific statements (primarily mathematical) and their vicinity to empirical truths and analytic statements. Sen adequately inquires “whether morality can be expressed in the form of choice between preference patterns rather than between actions” (...)
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  5. Hegelian Reflections on Agency, Alienation, and Work: Toward an Expressivist Theory of the Firm.Caleb Bernacchio - forthcoming - Philosophy of Management.
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  6. “We’re Just Geeks”: Disciplinary Identifications Among Business Students and Their Implications for Personal Responsibility.Maribel Blasco - 2021 - Journal of Business Ethics 178 (1):279-302.
    This research shows how business students’ disciplinary specializations can affect their sense of personal responsibility by providing rationalizations for moral disengagement. It thereby conceptualizes business students’ disciplinary specializations as a key dimension of the business school responsibility learning environment. Students use four main rationalizations to displace responsibility variously away from their own disciplinary specializations, to claim responsibility as the prerogative of their specialization, and to shift irresponsibility onto disciplinary out-groups. Yet despite their disciplinary identifications, students largely rationalized that their sense (...)
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  7. “Educate, Agitate, Organize”: Inequality and Ethics in the Writings of Dr. Bhimrao Ramji Ambedkar.Arun Kumar, Hari Bapuji & Raza Mir - 2021 - Journal of Business Ethics 178 (1):1-14.
    Scholars of business and management studies have recently turned their attention to inequality, a key issue for business ethics given the role of private firms in transmitting—and potentially challenging—inequalities. However, this research is yet to examine inequality from a subaltern perspective. In this paper, we discuss the alleviation of inequalities in organizational and institutional contexts by drawing on the ideas of Dr. B. R. Ambedkar, a jurist, political leader and economist, and one of the unsung social theorists of the twentieth (...)
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  8. Like It or Not: When Corporate Social Responsibility Does Not Attract Potential Applicants.Eva Alexandra Jakob, Holger Steinmetz, Marius Claus Wehner, Christina Engelhardt & Rüdiger Kabst - 2022 - Journal of Business Ethics 178 (1):105-127.
    Companies increasingly recognize the importance of communicating corporate social responsibility including their engagement toward employees, the community, the environment and other stakeholder groups to attract applicants. The positive findings on the effect of CSR on applicants’ reactions are commonly based on the assumption that companies send a clear signal about their commitment to CSR. However, communication is always contextualized and has become more ambiguous through the increased availability of information online. External stakeholders including actual and potential applicants are confronted with (...)
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  9. Deliberating or Stalling for Justice? Dynamics of Corporate Remediation and Victim Resistance Through the Lens of Parentalism: The Fundão dam Collapse and the Renova Foundation in Brazil.Rajiv Maher - 2021 - Journal of Business Ethics 178 (1):15-36.
    Using the political corporate social responsibility lens of parentalism, this paper investigates the more subtle and less-visible interactional dynamics and strategies of power, resistance and justification that manifest between a multi-stakeholder-governed foundation and victims of a mining corporation’s dam collapse. The Renova Foundation was established to provide remedy through a deliberative approach to hundreds of thousands of victims from Brazil’s worst socio-environmental disaster—the collapse of Samarco Mining Corporation’s Fundão tailings dam. Data were collected from a combination of fieldwork and archival (...)
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  10. “Just Say You’re Sorry”: Avoidance and Revenge Behavior in Response to Organizations Apologizing for Fraud.Michael J. Wynes - 2021 - Journal of Business Ethics 178 (1):129-151.
    Using two experiments, I examine how apologizing for fraud influences investor's avoidance and revenge behavior. Investors in experiment one report how many shares they would sell and how likely they would be to pursue legal punishment after discovering fraud has occurred in an organization they are currently invested in and subsequently reading about management's response to the fraud. I manipulate the nature of fraud as fraudulent financial reporting or asset misappropriation. I also manipulate whether management apologizes, scapegoats responsibility, or remains (...)
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  11. Modeling Character: Servant Leaders, Incivility and Patient Outcomes.Mitchell J. Neubert, Emily M. Hunter & Remy C. Tolentino - 2021 - Journal of Business Ethics 178 (1):261-278.
    Persistent and pervasive rudeness and lack of respect are unfortunately common in workplaces today. The deleterious effects of this incivility at work may be even worse than previously demonstrated, impacting not only employee victims but also trickling down to those who employees contact. However, we propose that leaders who prioritize their followers’ needs above their own, also known as servant leaders, may be a critical preventative mechanism to reduce group-level incivility through promoting a virtuous climate. Applying social learning theory and (...)
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  12. Character-Infused Ethical Decision Making.Brenda Nguyen & Mary Crossan - 2021 - Journal of Business Ethics 178 (1):171-191.
    Despite a growing body of research by management scholars to understand and explain failures in ethical decision making, misconduct prevails. Scholars have identified character, founded in virtue ethics, as an important perspective that can help to address the gap in organizational misconduct. While character has been offered as a valid perspective in EDM, current theorizing on how it applies to EDM has not been well developed. We thus integrate character, founded in virtue ethics, into Rest’s EDM model to reveal how (...)
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  13. Evidence on the Economic Consequences of Marriage Equality and LGBT Human Rights.Jessie Y. Zhu & Wally Smieliauskas - 2022 - Journal of Business Ethics 178 (1):57-70.
    The recent wave of same-sex marriage legalization marks the most significant human rights progress in decades. Nevertheless, the valuation effects on corporate America are unclear. While the arguments supporting marriage equality are largely in the domain of law and sociology, many prominent business leaders are actively engaged in campaigns advocating marriage equality. This suggests that the LGBT civil rights movement of our generation might have valuation implications for corporate America beyond human rights equality. This paper investigates the market perception of (...)
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  14. Employees’ Negative Megaphoning in Response to Organizational Injustice: The Mediating Role of Employee–Organization Relationship and Negative Affect.Yeunjae Lee - 2021 - Journal of Business Ethics 178 (1):89-103.
    This study aims to examine how employees engage in different types of negative information sharing behaviors about their organization, namely, negative megaphoning, in response to perceived organizational injustice. The role of employees’ negative affect and employee–organization relationship are also examined. Results of an online survey with 403 full-time employees in the U.S. across industry sectors showed that perceptions of organizational injustice increase employee’s negative affect, thereby increasing their internal, external, and anonymous website negative megaphoning behaviors. Injustice perception also decreased EOR (...)
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  15. Through New Eyes: Artificial Intelligence, Technological Unemployment, and Transhumanism in Kazuo Ishiguro’s Klara and the Sun.Santiago Mejia & Dominique Nikolaidis - 2022 - Journal of Business Ethics 178 (1):303-306.
    Klara and the Sun, the latest novel by Nobel-prize winner Kazuo Ishiguro, forces one to reckon with one's own anxieties about the future of emerging technologies and confront deep questions about the nature of dignity, existence, and humanity. The novel also provides one with complex characters and a speculative future through which to live new lives, experience novel worlds, and see through different eyes. At the same time, the novel’s world offers us an uncanny distance from our own, making us (...)
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  16. Feeling Competitiveness or Empathy Towards Negotiation Counterparts Mitigates Sex Differences in Lying.Jason R. Pierce & Leigh Thompson - 2022 - Journal of Business Ethics 178 (1):71-87.
    Men typically express more willingness than women to perpetrate fraudulent acts like lying in negotiations. However, women express just as much willingness in some cases. We develop and test a theory to explain these mixed findings. Specifically, we hypothesize that situational cues that bring about competitive or empathic feelings mitigate sex differences in lying to negotiation counterparts. Results from four experiments confirm our hypotheses. Experiment 1 showed that men and women express equal willingness to lie when negotiating with counterparts toward (...)
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  17. Correction to: Deliberating or Stalling for Justice? Dynamics of Corporate Remediation and Victim Resistance Through the Lens of Parentalism: The Fundão dam Collapse and the Renova Foundation in Brazil.Rajiv Maher - 2022 - Journal of Business Ethics 178 (1):37-37.
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  18. Auxiliaries to Abusive Supervisors: The Spillover Effects of Peer Mistreatment on Employee Performance.Yuntao Bai, Lili Lu & Li Lin-Schilstra - 2021 - Journal of Business Ethics 178 (1):219-237.
    An accumulating amount of research has documented the harmful effects of abusive supervision on either its victims or third parties. The abusive supervision literature, however, neglects to investigate the spillover effects of abusive supervision through third-party employees’ mistreatment actions toward victims. Drawing on social learning theory, we argue that third parties learn mistreatment behaviors from abusive leaders and then themselves impose peer harassment and peer ostracism on victims, thereby negatively affecting victims’ performance. Further, we posit that, if a victim has (...)
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  19. The Taming of Machiavellians: Differentiated Transformational Leadership Effects on Machiavellians’ Organizational Commitment and Citizenship Behavior.Bonjin Koo & Eun-Suk Lee - 2022 - Journal of Business Ethics 178 (1):153-170.
    This study seeks effective ways for managing employees with a high Machiavellian personality in organizations by identifying how to enhance their pro-organizational attitudes and behaviors [organizational citizenship behavior ] through transformational leadership. Drawing upon the dual-focused model of TFL, we suggest that exerting TFL upon employees high in Machiavellianism involves ethical dilemmas in that individual-focused and group-focused TFL have contrasting effects on leading pro-organizational attitudes/behaviors among these pro-individual employees. Analysis of data from 184 employees working in South Korea shows that (...)
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  20. The Impact of Islamic Feminism in Empowering Women’s Entrepreneurship in Conflict Zones: Evidence from Afghanistan, Iraq and Palestine.Doaa Althalathini, Haya Al-Dajani & Nikolaos Apostolopoulos - 2021 - Journal of Business Ethics 178 (1):39-55.
    The impact of Islam upon women’s entrepreneurship in conflict zones is woefully absent from the entrepreneurship literature. This is due to the absence of published scholarship about this context rather than the absence of Muslim women’s entrepreneurship there. To address the gap in the literature, we offer a contextualized analysis and contribution by adopting an Islamic feminism lens and explore how Islamic feminism empowers women entrepreneurs and their entrepreneurial activities and behaviours in conflict zones. We argue that Islamic feminism is (...)
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  21. Sharing Strategic Decisions: CEO Humility, TMT Decentralization, and Ethical Culture.Sebastian Cortes-Mejia, Andres Felipe Cortes & Pol Herrmann - 2021 - Journal of Business Ethics 178 (1):241-260.
    Humility is increasingly recognized as an essential attribute for individuals at top management levels to build successful organizations. However, research on CEO humility has focused on how humble chief executive officers shape collective perceptions through their interactions and behaviors with other organizational members while overlooking CEOs’ critical role in making strategic decisions. We address this unexplored aspect of CEO humility by proposing that humble CEOs influence decision-making decentralization at the top management team and subsequently promote an organizational ethical culture. Using (...)
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  22. Recruiting Dark Personalities for Earnings Management.Ling L. Harris, Scott B. Jackson, Joel Owens & Nicholas Seybert - 2022 - Journal of Business Ethics 178 (1):193-218.
    Prior research indicates that managers’ dark personality traits increase their tendency to engage in disruptive and unethical organizational behaviors including accounting earnings management. Other research suggests that the prevalence of dark personalities in management may represent an accidental byproduct of selecting managers with accompanying desirable attributes that fit the stereotype of a “strong leader.” Our paper posits that organizations may hire some managers who have dark personality traits because their willingness to push ethical boundaries aligns with organizational objectives, particularly in (...)
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  23. Correction to: Auxiliaries to Abusive Supervisors: The Spillover Effects of Peer Mistreatment on Employee Performance.Yuntao Bai, Lili Lu & Li Lin-Schilstra - 2022 - Journal of Business Ethics 178 (1):239-239.
    A correction to this paper has been published: https://doi.org/10.1007/s10551-021-04793-5.
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  24. Gender-Inclusive Corporate Boards and Business Performance in Pakistan.Syeda Hoor-Ul-Ain & Khalid M. Iraqi - forthcoming - Asian Journal of Business Ethics.
  25. Deliberating with the Autocrats? A Case Study on the Limitations and Potential of Political CSR in a Non-Democratic Context.Anna-Lena Maier & Dirk Ulrich Gilbert - forthcoming - Journal of Business Ethics.
    Extant literature on Political CSR and the role of governments in the governance of business conduct tends to neglect key implications of the political-institutional macro-context for public deliberation. Contextual assumptions often remain rather implicit, leading to the need for a more nuanced, explicit and context-sensitive exploration of the theoretical and practical boundary conditions of Political CSR. In non-democratic political-institutional contexts, political pluralism and participation are limited, and governmental agencies continue to play the most central role in regulation and its enforcement. (...)
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  26. The Social and Ethical Issues of Online Learning During the Pandemic and Beyond.Sonali Bhattacharya, Venkatesha Murthy & Shubhasheesh Bhattacharya - forthcoming - Asian Journal of Business Ethics.
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  27. Building the Case for Paradigmatic Reflexivity in Strategic Management Research Using Entrepreneurial Opportunity as an Exemplar.Rajesh Jain & Apoorv Khare - forthcoming - Philosophy of Management.
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  28. Kant on Remote Working: A Moral Defence.Fausto Corvino - 2021 - Philosophy of Management 21 (2):265-279.
    In this article I maintain that when employers could free workers from the space constraint of the office without incurring unbearable economic losses, it is morally wrong not to grant workers the possibility to work remotely, as this violates the humanity formulation of Kant’s categorical imperative. The article therefore aims to contribute to the development of Kantian business ethics, taking into account a series of empirical evidence gathered in the wake of the Covid-19 pandemic. I firstly discuss the Kantian concept (...)
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  29. The Narrative Dimension of Productive Work: Craftsmanship and Collegiality in the Quest for Excellence in Modern Productivity.Javier Pinto-Garay, Germán Scalzo & Carlos Rodríguez Lluesma - 2021 - Philosophy of Management 21 (2):245-264.
    Alasdair MacIntyre´s criticism of Modernity essentially refers to the problem of compartmentalization, which restricts the possibility of achieving excellence in an integral lifestyle. Among other reasons, compartmentalization is especially derived from an insular valorization of the workplace based on a reductionist understanding of productivity in terms of mere efficiency. Aimed at overcoming the moral confusion derived from the overestimation of technical, skilled productivity and individualistic cooperation in private corporations, this article offers a thicker explanation of MacIntyre’s theory of productive work (...)
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  30. Existential Values and Insights in Western and Eastern Management: Approaches to Managerial Self-Development.Michal Müller & Jaroslava Kubátová - 2021 - Philosophy of Management 21 (2):219-243.
    Continual pressure on managers, their efficiency, and the need to search for novel solutions to problems can lead to psychologically demanding situations. In efforts to understand the main obstacles to work and to effectively manage work-related processes, and in the need to achieve personal development, new approaches that are based on existential philosophies emerge. The aim of this article is to highlight the ways in which existential approaches have been used or discussed in management and to show that existential themes (...)
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  31. Reflections on Epistemic-Ontological Alignment in Theorizing Process: The Case of RBV.Júlio César da Costa Júnior, Leandro da Silva Nascimento, Taciana de Barros Jerônimo, Jackeline Amantino de Andrade & Marcos André Mendes Primo - 2021 - Philosophy of Management 21 (2):179-198.
    Although from a philosophical perspective, many reflections can be brought up about the theorizing process, in this essay, we aim to reflect on the importance of the alignment between ontology and epistemology. This is particularly relevant because deeper discussions about the philosophical roots that underlay the theorizing processes remain as a lack in organizational and management studies. To support our work, we adopted the epistemic-ontological alignment model as a conceptual tool and the Resource-Based View and some of its questionings as (...)
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  32. Entrepreneurial Beliefs and Agency Under Knightian Uncertainty.Randall E. Westgren & Travis L. Holmes - 2021 - Philosophy of Management 21 (2):199-217.
    At the centenary of Frank H. Knight’s Risk, Uncertainty, and Profit, we explore the continuing relevance of Knightian uncertainty to the theory and practice of entrepreneurship. There are three challenges facing such assessment. First, RUP is complex and difficult to interpret. The key but neglected element of RUP is that Knight’s account is not solely about risk and uncertainty as states of nature, but about how an agent’s beliefs about uncertain outcomes and confidence in those beliefs guide their choices. Second, (...)
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  33. Practical and Theoretical Wisdom in Management Scholarship: Re-Assesing the Use and Appropriations of Aristotle’s Philosophy.Tuomo Peltonen - 2021 - Philosophy of Management 21 (2):163-178.
    Within contemporary discussions on organizational wisdom, management scholars frequently turn to Aristotle’s work to conceptualize wisdom as phronesis, or practical wisdom. Contrary to the prevailing view, this paper argues that Aristotle did not propose an exclusively practical or particularistic conception of wisdom but, instead acknowledged that wisdom broadly conceived consists of two types of intellectual virtue: theoretical wisdom and practical wisdom. Aristotle’s ultimate position regarding the relations between sophia and phronesis has remained, however, ambiguous, giving rise to different interpretations, and, (...)
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  34. The Managerial Use of Empathy: Missteps Into the Mind of Others.David Ohreen - 2022 - Philosophy of Management 86 (2):135-161.
    Within the business and management literature, empathy has taken on increased importance as a central element to leadership, improving marketing strategies, corporate philanthropy, creating organizational connectedness, and as a strategy for preventing managerial wrongdoing. Although defining empathy is difficult, it is the identification with another’s thoughts and emotions through an imaginative process. This identification, ideally, will facilitate a wider connection with stakeholders beyond self-interest and motivate a better business environment. This article argues empathy is an overblown concept that is only (...)
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  35. Malleable Character: Organizational Behavior Meets Virtue Ethics and Situationism.Santiago Mejia & Joshua August Skorburg - forthcoming - Philosophical Studies.
    This paper introduces a body of research on Organizational Behavior and Industrial/Organizational Psychology (OB/IO) that expands the range of empirical evidence relevant to the ongoing character-situation debate. This body of research, mostly neglected by moral philosophers, provides important insights to move the debate forward. First, the OB/IO scholarship provides empirical evidence to show that social environments like organizations have significant power to shape the character traits of their members. This scholarship also describes some of the mechanisms through which this process (...)
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  36. Experimental Effects of Institutionalizing Co-determination by a Procedurally Fair Bidding Rule.Federica Alberti, Werner Güth & Kei Tsutsui - forthcoming - Journal of Business Ethics:1-14.
    From an institutional perspective we contribute to corporate governance of firms by proposing a procedurally fair mechanism that is ethically desirable, and experimentally testing whether procedural fairness crowds-in ethical behavior of managers and workers. The experiment sees one ‘manager’ and three ‘workers’ co-determining an efficiency-enhancing investment which could harm some workers. Firstly, the manager claims a share of the investment surplus, then workers ‘bid’ for the investment to express their willingness to satisfy the manager’s claim in case the investment is (...)
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  37. Struggling to Stay Engaged During Adversity: A Daily Investigation of Frontline Service Employees’ Job Insecurity and the Moderating Role of Ethical Leader Behavior.Sang-Hoon Lee, Won-Moo Hur & Yuhyung Shin - forthcoming - Journal of Business Ethics:1-15.
    Drawing on conservation of resources theory, this study examined the moderating role of ethical leader behavior in the effects of daily perceived job insecurity on work outcomes the next day through occupational regret the next morning among frontline service employees working in adverse work situations. Using experience sampling method, data were collected from 135 frontline service employees across five consecutive workdays. The results showed that daily perceived job insecurity had a negative indirect effect on work engagement and customer-directed helping the (...)
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  38. The Ethical Producer.Robert Allinson - 2011 - In L. Zsolnai (ed.), Spirituality and Ethics in Management. pp. 53-73.
    Man essentially is a being who pursues meaning and love. How is it possible that today, the concept of man as the rational economic man dominates the current human stage of thought? Why and how has this concept of man taken precedence over the Platonic description? What has made for the triumph of Homo oeconomicus? What has happened to the human race since money has vanquished beauty as the defining essence of humanity? What does it mean that Plato’s ideas sound (...)
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  39. Risk Management: Demythologising its Belief Foundations.Robert Allinson - 2007 - International Journal of Risk Assessment and Management 7 (3):299-311.
    Fallacious anthropomorphic attributions such as 'risky technology' take ethical accountability out of the hands of managers and relegate it to the deterministic or accidental outcomes of complex 'high risk technology'. Equally fallacious mechanistic terms such as 'organisational inertia' are borrowed from physics to apply to human organisations. The responsibility for ethically accountable decision-making is taken out of human hands and either ascribed to the mythological entity "Technology" or to the mythological bureaucratic organisation which functions as if it follows the laws (...)
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  40. The Foundations of Business Ethics.Robert Allinson - 2008 - In Corporate and White-Collar Crime. pp. 81-101.
    While theoretically, egoism may be considered one kind of ethics, generally speaking, egoism, defined as self-interest at the expense of others, is contrary to the central principles of ethics, which are, in the main, other-directed. While Adam Smith's economics is famously argued to serve both self and other, the core thesis of this chapter is that Adam Smith's position is seriously flawed. The chapter argues that self-interest economics is fundamentally flawed and needs to be replaced by an objective, value-based economics. (...)
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  41. On the Very Idea of Risk Management: Lessons From the Space Shuttle Challenger.Robert Allinson - 2012 - In Risk Management - Current Issues and Challenges. pp. 133-154.
    In this chapter, we will argue that the very concept of risk management must be called into question. The argument will take the form that the use of the phrase ‘risk management’ operates to cover over the ethical dimensions of what is at the bottom of the problem, namely, risky decision making. Risky decision making takes place whenever and wherever decisions are taken by those whose lives are not immediately threatened by the situation in which the risk to other people’s (...)
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  42. Aristotle and Economics.Robert Allinson - 2011 - In Handbook of Spirituality and Business.
    It is commonly put forth that Aristotle’s ethics is a virtue ethics. This is contrasted with ethics that is orientated toward right actions. For Aristotle, this is a pseudo-distinction. One cannot build one’s virtues except through performing right actions. For Aristotle, one performs right actions for their own sake, not for the sake of building virtues or even building character. But the performance of noble deeds, which is the ultimate counsel to life that Aristotle gives, has as its natural consequence (...)
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  43. Value Creation as the Foundation of Economics.Robert Allinson - 2009 - In L. Zsolnai (ed.), Ethical Prospects. pp. 63-87.
    The argument of this paper, written by an ethicist and a philosopher, is that self-interest economics is fundamentally flawed and needs to be replaced by a spiritual economics or a value based economics. Its argument contains two interwoven threads. One thread is an attempt to show why the fundamental philosophical notions of Adam Smith, taken as an illustration of self-interest economics, cannot lead to an equitable society. Smith’s Wealth of Nations, according to Jacob Viner, ‘ became a significant factor in (...)
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  44. The Paradox of Paranoia: How One’s Own Self-Interested Unethical Behavior Can Spark Paranoia and Reduce Affiliative Behavior Toward Coworkers.Annika Hillebrandt, Daniel L. Brady, Maria Francisca Saldanha & Laurie J. Barclay - forthcoming - Journal of Business Ethics:1-15.
    How are individuals affected by their own self-interested unethical behavior? Although self-interested unethical behavior commonly occurs as people attempt to advantage themselves, we argue that this unethical behavior can have deleterious implications for individuals and their social relationships. We propose that engaging in self-interested unethical behavior is positively related to state paranoia—an aversive psychological state. In turn, the social cognitive biases underlying state paranoia can prompt people to misjudge the potential for social threat. This may motivate them to curtail coworker-directed (...)
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  45. Existentialist Perspectives on the Problem and Prevention of Moral Disengagement.Helet Botha & R. Edward Freeman - forthcoming - Journal of Business Ethics:1-13.
    We bring the distinct and complementary existentialist perspectives of Jean-Paul Sartre and Simone de Beauvoir to bear on the phenomenon of moral disengagement in managerial decision-making. Existentialist thinking is a rich source of insight on this phenomenon, because—as we demonstrate—the concept of moral disengagement overlaps significantly with the notion of ‘a consciousness in bad faith’ in Sartre’s writing, and the notion of ‘not willing oneself free’ in De Beauvoir’s writing. These concepts play a critical role in existentialist ethics, and thus (...)
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  46. The Effect of Human Capital on Stock Price Crash Risk.Yi Si & Chongwu Xia - forthcoming - Journal of Business Ethics:1-21.
    This paper studies how the human capital embedded in rank-and-file employees affects firms’ stock price crash risk. Employing a unique setting in China where we measure human capital using employee information at the firm level, we show that human capital quality improves firms’ internal information environments, curbs bad-news hoarding and overinvestment, leading to lower stock price crash risk. The findings are robust to instrumental variable regressions. Our study highlights the internal informational role of human capital and sheds light on its (...)
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  47. A Mixed Blessing? CEOs’ Moral Cleansing as an Alternative Explanation for Firms’ Reparative Responses Following Misconduct.Joel B. Carnevale & K. Ashley Gangloff - forthcoming - Journal of Business Ethics:1-17.
    When firm misconduct comes to light, CEOs are often faced with difficult decisions regarding whether and how to respond to stakeholder demands as they attempt to restore their firms’ legitimacy. Prior research largely assumes that such decisions are motivated by CEOs’ calculated attempts to manage stakeholder impressions. Yet, there are likely other motives, particularly those of a morally-relevant nature, that might also be influencing CEOs’ decisions. To address this limitation, we advance moral cleansing as an alternative explanation for how and (...)
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  48. The Ability and Willingness of Family Firms to Bribe: A Socioemotional Wealth Perspective.Shisong Jiang & Yijie Min - forthcoming - Journal of Business Ethics:1-18.
    Extant research concludes that family firms are less likely to bribe due to reputation concerns. However, such conclusions are, to a certain extent, inconsistent with the intuition and observation that some family firms can be aggressive bribers. This study employs a restricted-extended framework of socioemotional wealth model to reconcile this inconsistency. We propose family management, on the one hand, results in reputation preservation willingness; while on the other hand, results in an abuse of trust between family members and superior ability (...)
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  49. Wolves in Sheep’s Clothing: How and When Machiavellian Leaders Demonstrate Strategic Abuse.Zhiyu Feng, Fong Keng-Highberger, Kai Chi Yam, Xiao-Ping Chen & Hu Li - forthcoming - Journal of Business Ethics:1-26.
    The extant literature has largely conceptualized abusive supervision as a hot and impulsive form of aggression. In this paper, we offer a cold and strategic perspective on how abusive supervision might be used strategically to achieve goals. Drawing on the Machiavellian literature and social interaction theory of aggression, we develop a moderated serial mediation model, in which leader Machiavellianism predicts their strategic use of abusive supervision on subordinates via the mediating role of leaders’ guanxi with direct supervisor. We further theorize (...)
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  50. Do LGBTQ-Supportive Corporate Policies Affect Consumer Behavior? Evidence from the Video Game Industry.Petr Parshakov, Iuliia Naidenova, Carlos Gomez-Gonzalez & Cornel Nesseler - forthcoming - Journal of Business Ethics:1-12.
    This paper empirically examines how consumers react when a company marks a product with a gay label. The company under scrutiny is one of the largest video game developers in the world, and the labeled product is a popular video game character. We use a regression discontinuity design to exploit the quasi-experimental setting. The main finding was significant drop in demand for this character and a return to previous levels after approximately 3 months. Possible mechanisms and dynamics were explored by (...)
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