Business Ethics

Managers often have discretion in interpreting their ethical requirements, and they should seek democratic guidance in doing so. The undemocratic nature of managerial ethical discretion is shown to be a recurring problem in business ethics. Joseph Heath’s market failures approach is introduced as a theory better positioned to deal with this problem than other views. However, due to epistemic uncertainty and conceptual indeterminacy, the MFA is shown to allow a much wider range of managerial discretion than initially appears. The paper (...) explores how this range can be narrowed down with democratic input, comparing models based on formal state institutions and on the informal public sphere. A case study from the pharmaceutical industry illustrates the merits of the informal public sphere approach. (shrink)

In this study we examine how a firm’s corporate philanthropic behavior may affect its subsequent acquisitions. Drawing upon stakeholder theory, we argue that firms may strategically use philanthropic donations to obtain support or approval from stakeholders so as to advance subsequent acquisitions, suggesting a positive relationship between corporate giving and corporate acquisitions in terms of both acquisition number and value. We further contend that stakeholders’ support for acquisitions would be even more critical for firms with negative or conservative attitudes to (...) external stakeholders. Therefore, it is expected that both negative media coverage and controversial industry sectors will strengthen the positive relationship between corporate giving and subsequent corporate acquisitions. Analyses of publicly listed manufacturing firms in China during 2004–2015 largely support our predictions. This study deepens our understanding about the drivers of corporate giving and highlights its role in corporate acquisitions. (shrink)

This paper presents an examination of the relationship between the presence and composition of a corporate social responsibility committee on the corporate governance board and CSR decoupling. Using a sample of listed firms drawn from 41 countries, we found that the presence of a CSR committee on the corporate board is negatively associated with CSR decoupling. We also noted that the nature of the industry to which a firm belongs, a firm's level of CSR orientation, and corporate governance quality strengthen (...) such association. Further analysis of the relationship between the structure of the CSR committee and CSR decoupling shows that larger CSR committee size and a greater independence and longer tenure of its members negatively affect CSR decoupling. Our results are robust to various alternative specifications and offer important research and managerial implications. The findings of this study contribute to the growing literature on corporate governance and CSR. (shrink)

We examine the impact of employing a female, versus a male, leader on future donations and operating margin using a sample of 4387 unique nonprofit organizations between 2011 and 2014. Using two-stage and matched sample designs, we find that NPOs headed by female leaders report higher future operating margins but lower future donations. We interpret these findings to mean that female leaders are more focused on fiscal responsibility than fundraising. We also find that female leaders with past fundraising experience attenuate (...) lower future donations, and at commercial nonprofits, female leaders with prior for-profit experience contribute to even higher operating margins. Moreover, while female leaders identified as the founder of the organization increase future donations, they have no effect on future operating margins. Collectively, the results of our study should increase nonprofit boards’ confidence in hiring female leaders thereby narrowing the gender disparity in leadership in the nonprofit sector. This study expands the extant literature by providing initial evidence on the effects of female leaders in NPOs thereby contributing to research exploring gender, diversity, management, and nonprofit executives. (shrink)

This paper surveys future managers’ cognitive framings of interconnected concerns for economic growth, social prosperity, and the natural environment across six countries in Latin America, and elaborates on implications for sustainability management education. Our cluster analysis unveils three cognitive types. Our findings show that whereas some future managers exhibit a ‘business case’ cognitive frame, prioritizing economic growth over the environment, the other two clusters of participants show signs of cognitive dissonance with some of the tenets of the current growth paradigm (...) while still not neatly fitting the definition of a paradoxical cognitive frame. In particular, individuals within the latter two groups do not visualize links among economic, social, and environmental dimensions that make up sustainable development. Following calls to enhance our understanding of sustainability micro-foundations, our study offers a more nuanced picture of the cognitive plurality beyond dichotomous characterizations of managerial cognitive frames as either business case or paradoxical. Moreover, results elucidate the cultural mediation that operates in the reproduction of business stances vis-à-vis nature, opening up possibilities for management education programs to engage with cognitive plurality to effect paradigmatic change. (shrink)

Managers tasked with organizational change often face irreconcilable demands on how to enact justice—situations we call justice conundrums. Drawing on interviews held with managers before and after a planned large-scale change, we identify specific conundrums and illustrate how managers grapple with these through three prototypical paths. Among our participants, the paths increasingly diverged over time, culminating in distinct career decisions. Based on our findings, we develop an integrative process model that illustrates how managers grapple with justice conundrums. Our contributions are (...) threefold. First, we elucidate three types of justice conundrums that managers may encounter when enacting justice in the context of planned organizational change and show how managers handle them differently. Second, drawing on the motivated cognition and moral disengagement literature, we illustrate how cognitive mechanisms coalesce to allow managers to soothe their moral concerns when grappling with these conundrums. Third, we show how motivated justice intentions ensuing from specific justice motives, moral emotions, and circles of moral regard predict the types of justice conundrums managers face and the paths they take to grapple with them. (shrink)

Stakeholder theory has grown into one of the most frequent approaches to organizational sustainability. Stakeholder research has provided considerable insight on organization–nature relations, and advanced approaches that consider the intrinsic value of nonhuman nature. However, nonhuman nature is typically approached as an ambiguous, unified entity. Taking nonhumans adequately into account requires greater detail for both grounding the status of nonhumans and particularizing nonhuman entities as a set of potential organizational stakeholders with different characteristics, vulnerabilities, and needs. We utilize the philosophical (...) concept of ‘recognition’ to provide a normative underpinning for stakeholder theorizing on nonhuman nature in both universal and difference-sensitive terms. We discuss how the status model of recognition helps identify relevant nonhumans as organizational stakeholders, establish respect, and particularize nonhumans in their distinctiveness and in partner-like ways. The implications of the recognition approach for stakeholder research are explicated with an illustrative case that exemplifies the recognition and particularization of nonhuman nature. We contribute to stakeholder research on nonhuman nature by suggesting that recognition provides a conceptual tool for theorizing the stakeholder status and particularization of nonhuman nature. Thereby, this article reduces anthropocentric bias and increases the capacity of stakeholder theorizing to confront the challenges of the ecological crisis. (shrink)

The rise of liberal market economies, propagated by neoliberal free market thought, has created a vacant responsibility for public interests in the market order of society. This development has been critiqued by Catholic social teaching, forcefully arguing that governments and businesses should be directed to the common good. In this debate, no attention has yet been given to the Reformational tradition and its principle of sphere sovereignty, which provides guidelines on the responsibilities of governments and companies for the public interest (...) of society. This article analyzes the differences and similarities between CST and the Reformational philosophy in their critiques of the neoliberal free market perspective of Hayek. We apply the three perspectives to the case of orphan drugs in the pharmaceutical industry and show that CST and the Reformational philosophy offer valuable insights in correction to Hayek’s views on the responsibilities of governments and companies for public health interests. (shrink)

This article draws from Charles Taylor’s work of retrieval to advance moral foundations theory. Taylor’s contribution to MFT lies in his insistence that we retrieve the moral sources that have helped constitute, substantiate, and give meaning to individuals’ moral sensibilities. Applying Taylor’s insights to MFT, this article seeks to advance a view of moral foundations that connects them more explicitly to their underlying moral sources. Using this retrieved account of moral foundations, this article then addresses current issues within moral foundations (...) research and theory. Finally, this article suggests ways in which Taylor’s philosophy can contribute to three areas within business ethics: ethical leadership, behavioral ethics, and ethics pedagogy. (shrink)

Supererogation has gained attention as a means of explaining the voluntary behaviours of individuals and organizations that are done for the benefit of others and which go above what is required of legislation and what may be expected by society. Whilst the emerging literature has made some significant headway in exploring supererogation as an ethical lens for the study of business there remain several important issues that require attention. These comprise, the lack of primary evidence upon which such examinations have (...) been made, attention has been given to only singular pro-social acts of organizations, and the focus has been upon the actions of large organizations. Furthermore, Heyd’s original taxonomy of six supererogatory acts, comprising Moral Heroism, Beneficence, Volunteering, Favour, Forgiveness and Forbearance, has been considered to be complete and other forms of supererogatory acts have not yet been explored. In order to address these gaps this study poses the research questions: First, it studies how a single, contemporary SME performs multiple supererogatory acts in its attempts to address its social and environmental goals that go beyond CSR. Second, it seeks to gain a deeper theoretical understanding of Heyd’s taxonomy of six forms of supererogation through the capture of primary data. This research makes a three-year case study examination of a single SME that has been formally recognized for its work in addressing social and environmental issues at local, national and global levels. Primary data are acquired of the supererogatory acts that it performs through a three-year participant observation case study, utilizing 61 interviews and 3 focus groups with internal and external stakeholders. In doing so, it addresses the empirical limitations of the extant research, substantiates each of the forms that supererogatory acts may take, and makes a contribution to the theory of supererogation by identifying a further class of act that is ‘Sharing’. (shrink)

Aiming to develop normative recommendations for preventing corporate irresponsibility, business and society scholars have adopted strategic approaches—exploring the causal links between corporate social responsibility and profitability—and moral approaches—exploring the moral principles of CSR that guide managers. However, some business ethics scholars have recently argued that these studies are too simplistic as they disregard the systemic logics of broader institutional environments that generate ‘bad apples’ firms and managers. Drawing on literature that sheds light on the systemic origin of CiR, we conduct (...) an in-depth case study on how Russian systems of institutional absences shape insensitive corporate environmental violence of a Russian extractive multinational corporation. In doing so, we develop a novel cultural approach to the analysis of CiR that advances knowledge about the systemic origin of CiR in two ways. First, this approach allows for identifying how the sources of CiR are located within firms’ home national systems of institutional absences, which shape systemic logics of CiR that make corporate violence less traceable by firms and broader society. Second, this approach allows for identifying how governments can sustain and perpetuate insensitive corporate violence through the deliberate and systemic absenting of national institutions that could pressure firms to be more socially and environmentally responsible, thus making negative consequences of corporate violence invisible to firms and broader society. We propose future research directions and suggest policy changes in Russia and other countries with similar systems of institutional absences. (shrink)

Global supply chains present the International Labour Organization with a challenge that goes to the heart of its founding mandate and structure, one built on the prominence of nation states and national representatives of employers and workers. In February 2020, discussions in the ILO on the rise of GSCs reached deadlock. To fully understand why the ILO has been unable to address decent work deficits in GSCs greater attention needs to be paid to contestation, power and legitimacy in the deliberation (...) of labour governance. Drawing on the concept of agonistic pluralism we examine the evolution of the ILO’s attempt to establish a new labour standard on GSCs under three empirical phases between 2002 and 2020. We argue that shifting power asymmetries between the tripartite constituents of governments, employers and workers, increased counter-hegemonic contestation, and intensified questioning of the deliberative legitimacy of the adversaries, explain the dissensual relations at the ILO. This article contributes to the literature on labour standards in GSCs in demonstrating how and why contestation underpins the evolution of labour governance over time. (shrink)

Time theft is a prevalent, costly, and generally discreet employee activity in firms; nonetheless, very limited research is available on it. To explore why, how, and when employees exhibit time theft, we investigate the influence mechanism of work-related use of information and communication technologies after hours on time theft from the perspective of resource gain and loss. Our study found that W_ICTs significantly promotes employee time theft. Emotional exhaustion and moral disengagement play a mediating role in the relationship between W_ICTs (...) and time theft, respectively, and these two variables have a chain-mediating role in the relationship above. Perceived organizational support moderates this chain mediation by moderating the positive effect of W_ICTs on emotional exhaustion. Overall, the findings have important theoretical and managerial implications for research on W_ICTs and time theft. (shrink)

According to the nonworseness claim, it cannot be morally worse to exploit someone than not to interact with them at all when the interaction 1) is mutually beneficial, 2) is voluntary, and 3) has no negative effects on third parties. My aim in this article is to defend the moral significance of exploitation from this challenge. To that end, I develop a novel account of why sweatshop owners have a moral obligation to pay sweatshop workers a nonexploitative wage despite the (...) fact that their relationship is entirely optional. More precisely, I defend two main claims. First, I show that sweatshop owners are morally obligated to pay sweatshop workers a nonexploitative wage even though they have a right not to hire them and even though that will require them to pay sweatshop workers a wage that is higher than the one they voluntarily accepted. Second, I explain why this obligation on the part of sweatshop owners is not defeated by the fact that other individuals not party to the transaction would benefit even more than sweatshop workers from receiving this additional level of pay. (shrink)

The use of artificial intelligence in hiring entails vast ethical challenges. As such, using an ethical lens to study this phenomenon is to better understand whether and how AI matters in hiring. In this paper, we examine whether ethical perceptions of using AI in the hiring process influence individuals’ trust in the organizations that use it. Building on the organizational trust model and the unified theory of acceptance and use of technology, we explore whether ethical perceptions are shaped by individual (...) differences in performance expectancy and social influence and how they, in turn, impact organizational trust. We collected primary data from over 300 individuals who were either active job seekers or who had recent hiring experience to capture perceptions across the full range of hiring methods. Our findings indicate that performance expectancy, but not social influence, impacts the ethical perceptions of AI in hiring, which in turn influence organizational trust. Additional analyses indicate that these findings vary depending on the type of hiring methods AI is used for, as well as on whether participants are job seekers or individuals with hiring experience. Our study offers theoretical and practical implications for ethics in HRM and informs policy implementation about when and how to use AI in hiring methods, especially as it pertains to acting ethically and trustworthily. (shrink)

This chapter defends the view that manipulated behaviour is explained by an injustice. Injustices that explain manipulated behaviour need not involve agential features such as intentionality. Therefore, technology can manipulate us, even if technological artefacts like robots, intelligent software agents, or other ‘mere tools’ lack agential features such as intentionality. The chapter thus sketches a comprehensive account of manipulated behaviour related to but distinct from existing accounts of manipulative behaviour. It then builds on that account to defend the possibility that (...) we are being manipulated by technology. (shrink)

Using a large panel of elections in 44 countries, we show that national elections affect CSR in contrasting ways. We posit and find that in strong institutional environments CSR engagement responds negatively to uncertainty and decreases during election periods relative to non-election periods. However, in the context of institutional weakness, characterized by incomplete and captured national institutions, we find that CSR engagement increases in electoral periods, consistent with rent-seeking behavior. We discuss the implications of these results for both theory and (...) practice. (shrink)

What do events such as scandals, industrial accidents, activist threats, and mass shootings have in common? They can all trigger an audience’s stigma judgment about the organization involved in the event. Despite the prevalence of these stigma-triggering events, management research has provided little conceptual work to characterize the dimensions and processes of organizational event stigma. This article takes the perspective of the evaluating audience to unpack the stigma judgment process, identify critical dimensions for categorizing types of event stigma, and explore (...) the role of the stigmatizers’ aesthetic, emotional, and cognitive reactions as well as their practical considerations in producing what we call “sticky stigmas.” Our event stigma typology provides clarity regarding how stigmas differ based on the types of events and audiences’ reactions and why some event stigmas are stronger and more long-lasting than others. We highlight the role of emotions and aesthetics in stigma formation and the various ethical dilemmas that influence stigma stickiness. (shrink)

Building on literature in political CSR and corporate political activity as well as responsible innovation and responsible lobbying, we introduce a framework to assess the legitimacy status of corporate political activity. We focus on the fact that companies frequently face sharp regulatory backlash after penetrating markets with their innovations. In response to regulatory backlash, big tech companies often employ an arsenal of corporate political activities to shape national and local regulatory environments, which raises the important questions about the legitimacy of (...) CPA tactics that we address. To develop and apply this framework, we briefly survey and then assess Uber’s corporate political activities in its 2015 New York City political campaign. (shrink)

Are we being manipulated online? If so, is being manipulated by online technologies and algorithmic systems notably different from human forms of manipulation? And what is under threat exactly when people are manipulated online? This volume provides philosophical and conceptual depth to debates in digital ethics about online manipulation. The contributions explore the ramifications of our increasingly consequential interactions with online technologies such as online recommender systems, social media, user-friendly design, micro-targeting, default-settings, gamification, and real-time profiling. The authors in this (...) volume address four broad and interconnected themes: • What is the conceptual nature of online manipulation? And how, methodologically, should the concept be defined? • Does online manipulation threaten autonomy, freedom, and meaning in life, and if so, how? • What are the epistemic, affective, and political harms and risks associated with online manipulation? • What are legal and regulatory perspectives on online manipulation? The Philosophy of Online Manipulation brings these various considerations together to offer philosophically robust answers to critical questions concerning our online interactions with one another and with autonomous systems. It will be of interest to researchers and advanced students working in moral philosophy, digital ethics, philosophy of technology, and the ethics of manipulation. (shrink)

Environmental, health, and safety management systems have become common in research settings to improve laboratory safety through systematic observation and self-regulation. However, there is scant empirical evidence assessing whether these surveillance and inspection systems meet their intended objectives. Using data from safety inspections in research laboratories at a large university, we investigate whether conducting inspections, and recording and reporting findings back to the formally responsible actors lead to the improvement of regulatory compliance. Our analyses identify a population of well-funded, high-status, (...) tenured researchers whose non-compliant practices persist. Our interviews with environmental, health, and safety personnel suggest that higher-status actors disengage from the regulatory system, the compliance officers, and the system’s feedback process by their variable recognition and acknowledgment of relevant regulations, attention to the inspection reports, and responses to the feedback concerning repair of the unsafe situation. This study extends previous literature on regulatory compliance by providing evidence for the role of power and status in explaining actor-level non-compliant behavior. (shrink)

Meta-analytic results show that board gender diversity is modestly associated with firm performance, but there is notable heterogeneity among findings. Board gender diversity allows access to women’s perspectives, potentially helping boards, but diversity can also trigger biases that exclude women directors, such that boards do not integrate meaningful perspectives. Addressing this problem, we leverage the categorization-elaboration model, contact theory, and critical mass theory to build new theory as to how men directors can serve as allies to women directors to better (...) leverage diverse perspectives. We empirically test how considerations that reduce out-group categorization and bias against women moderate the board gender diversity-firm performance relationship. Our results show that gender diverse boards perform better with more formal contact among men and women director colleagues, and that gender diverse boards with more men directors who only have prior experience working with token-women, perform worse. Our work helps explain how and why board gender diversity can improve or detract from firm performance. This extends the literature by illustrating the important consequences that occur when firms do have men directors who are likely to be allies of gender diversity. (shrink)

This paper studies the way supplier firms’ corporate social responsibility affects their likelihood of being selected as new suppliers. Using a large sample of US public firms with detailed supply chain and CSR data, we provide empirical evidence that corporate customers prefer socially responsible suppliers, and that the effect is more prominent when the supplier industry is more competitive, the customer’s own CSR performance is better, or the supplier and the customer have more similar CSR focuses. Our paper contributes to (...) the literature of instrumental stakeholder theory by confirming corporate customer attraction as a desirable outcome of supplier CSR engagement. It complements the existing IST studies on customer responses by showing that CSR attracts not only final customers but also corporate customers. Moreover, by focusing on corporate customers’ revealed preferences for socially responsible suppliers, our paper also complements the stated-preference-based evidence in the literature of sustainable supply chain management. Our paper’s findings encourage supplier firm managers to invest in CSR to gain competitive advantages in the form of a higher likelihood of selection while simultaneously making positive contributions to society. (shrink)

There is a consensus among scientists that climate change is an existing, growing, and human-made threat to our planet. The topic is a divisive issue worldwide, including among people of faith. Little research has focused on the relationship between religious belief and climate change. Hence, in Studies 1 and 2, the authors explore the impact of religious/non-religious orientations: intrinsic, extrinsic, quest, and non-religious orientation on consumer attitudes toward the environment, focusing on recycling advertisements with religious cues. Further, in Study 3, (...) we examine the underlying causal mechanism of environmental identity and the moderating effect of political views on consumers’ lack of belief in climate change. The results show that religious people are less committed to the environment and climate change and that atheism positively affects recycling and climate change identity. The findings offer practical implications in that advertising campaigns need to be endorsed by religious leaders and channeled within the confines of the religious institutions they represent. (shrink)

This article explores impact investing within the renewable energy sector. Drawing on ethical decision making and sensemaking, this article contributes to an enhanced understanding of the complex ethical sensemaking process of impact investors when facing plausible situations in a world of contested truths. Addressing the ethical tensions faced by impact investors with mixed motives, this study investigates the way decision makers use context-specific reasons to make sense of and shape the renewable energy investment process. This represents an initial attempt to (...) understand ethical sensemaking in impact investing made within the renewable energy sector using a multi-stakeholder approach. Our findings show that prosocial, personal, reputational, and economic motives are the main drivers of REI, with prosocial and personal motives being value-based, and reputational and economic motives being evidence-based. We find three different modes of ethical sensemaking, allowing for the construction of the four motives noted above. These motives are based on the context-specific reasons of impact investing decision makers in the RE sector. This article contributes to the academic discourse on ethical sensemaking with some key processes involved in ethical decision making, and a better understanding of the underlying motivations of impact investing in the RE sector. (shrink)

Scholars are increasingly examining how formal leaders of organizations change moral norms. The prominent accounts over-emphasize the role of rational persuasion. We focus, instead, on how formal leaders successfully break and thereby create moral norms. We draw on Dreyfus’s ontology of cultural paradigms and Williams’s moral luck to develop our framework for viewing leader-driven radical norm the change. We argue that formal leaders, embedded in their practices’ grounding, clarifying, and organizing norms, get captivated by anomalies and respond to them by (...) taking moral risks, which, if practically successful, create a new normative order. We illustrate the framework with Churchill’s actions in 1940 and Anita Roddick’s Body Shop. Last, we discuss normative orders, when ordinary leaders change norms, evil, and further research. (shrink)

This study investigates whether job stressors such as role ambiguity, procedural unfairness, and perceived competition may prompt high Machiavellian employees to use amoral manipulation at work. We also examine whether these manipulative behaviors are consequently related to their own task performance and affiliative citizenship behaviors. A weekly diary study was conducted among 111 Dutch employees over five consecutive working weeks, resulting in 446 assessed occasions. Using a multilevel moderated mediation model, we found that the relationship between weekly job stressors and (...) weekly amoral manipulation was contingent on trait AM, when the job stressor was role ambiguity. Our results also revealed significant indirect effects of weekly role ambiguity on weekly task performance and weekly display of courtesy through state AM, when trait AM was high. Our findings suggest that role ambiguity activates high Machiavellian employees’ manipulative behaviors at work, which in turn leads to impaired task performance and less courtesy toward others during the same working week. (shrink)

This study examines the role of responsible entrepreneurship among female entrepreneurs by examining how and when responsible entrepreneurship may exert a positive influence on female entrepreneurial success. Using the data collected from 337 Chinese female entrepreneurs, and by integrating responsible entrepreneurship research with a dynamic capability framework, our findings show, firstly, that responsible entrepreneurship is positively correlated to female entrepreneurial success; secondly, this relationship is mediated by female entrepreneurs’ opportunity recognition; and thirdly, the indirect effect of responsible entrepreneurship on female (...) entrepreneurial success through opportunity recognition is weaker when women entrepreneurs perceive more gender discrimination. Furthermore, using a post hoc analysis, we find that responsible entrepreneurship has a positive impact on entrepreneurial success for both male and female entrepreneurs, but that this impact is more significant for female entrepreneurs than for their male counterparts. With the contextual factor of traditional female social stereotypes inadvertently contributing to greater gender discrimination in the field of entrepreneurship, our results underscore the importance of both responsible entrepreneurship and opportunity recognition in promoting female entrepreneurial success. (shrink)

Interactions between human beings and chatbots are gradually becoming part of our everyday social lives. It is still unclear how human–chatbot interactions, compared to human–human interactions, influence individual morality. Building on the dual-process theory of moral judgment, a secondary data analysis, and two scenario-based experiments provide sufficient evidence that HCIs support utilitarian judgments, which reduce participants' donation amount. Study 3 further demonstrates that the negative effects of HCIs can be attenuated by inducing a social-oriented communication style in chatbots’ verbal language (...) designs. These findings highlight the negative impacts of HCIs on relationships among human beings and suggest a practical intervention for nonprofit organization managers. (shrink)

This paper highlights the dark side of power imbalance regarding its consequences in agri-food supplier–buyer relationships. We report on findings from two studies. The first study is based on a sample of 105 key informants, while study 2 is based on a sample of 444 key informants, all from the cocoa agri-food supply market of Ghana. While the first study focuses on the antecedents of power imbalance and its consequences, the second study explores the role of cooperatives/collective action in minimizing (...) supplier exploitation. Data from these studies were analysed using the partial least squares technique. Analysis of these findings shows switching costs’ impact on power imbalance to be curvilinear, while power imbalance has a curvilinear relationship with opportunism. The negative consequences of power imbalance are further exacerbated by dependency and the lack of joint action. Furthermore, we found the negative impact of power imbalance on financial performance to be stronger for non-cooperative members than for cooperative members, while, counterintuitively, we found the positive impact of economic satisfaction on financial performance to be stronger for non-cooperative members than for cooperative members. (shrink)

How do social audiences negotiate and handle stigmatized organizations? What role do their heterogenous values, norms and power play in this process? Addressing these questions is important from a business ethics perspective to improve our understanding of the ethical standards against which organizations are judged as well as the involved prosecutorial incentives. Moreover, it illuminates ethical concerns about when and how power imbalances may induce inequity in the burdens imposed by such social evaluations. We address these questions building on two (...) event-based case studies involving Hells Angels Motorcycle Club Norway, and contribute to organizational stigma theory in three ways. First, social evaluations of a stigmatized organization by multiple audiences are found to interact, collide and combine in a labelling contest. Second, we show that labels employed in this contest are pushed to either negative extremes or positive extremes. Finally, we show when and how power represents a double-edged sword in social evaluation processes, which can be wielded either to the benefit or to the detriment of the actors under evaluation. (shrink)

This paper contributes to biodiversity and species extinction literature by examining the relationship between corporate accountability in terms of species protection and factors affecting such accountability from forward-thinking companies. We use triangulation of theories, namely deep ecology, legitimacy, and we introduce a new perspective to the stakeholder theory that considers species as a ‘stakeholder’. Using Poisson pseudo-maximum likelihood regression, we examine a sample of 200 Fortune Global companies over 3 years. Our results indicate significant positive relations between ecologically conscious companies (...) that are accountable for the protection of biodiversity and species extinction and external assurance, environmental performance, partnerships with socially responsible organizations and awards for sustainable activities. Our empirical results appear to be robust in controlling for possible endogeneities. Our findings contribute to the discussion on the concern of species loss and habitat destruction in the context of corporate accountability, especially in responding to the sixth mass extinction event and COVID-19 crisis. Our results can also guide the policymakers and stakeholders of the financial market in better decision making. (shrink)

This paper is motivated by a puzzling observation made when conducting a case study of ProCredit, a well-known social bank. The HR practices that this social enterprise adopted to cultivate mission identification were unfavorably impacting its retention rate. Building on prior research and our analysis of the case, we argue the need for SEs to embrace HRM systems that are both mission-identification proactive and employee-retention preemptive. It theorizes that these HRM systems should be attuned to the labor market conditions that (...) frame how SEs develop and sustain Person-Organization fit. Attuned HRM systems are adapted to labor market conditions and tuned to support SEs’ adeptness to operate against the grain of country and industry norms. (shrink)

This paper seeks to understand the transmission and reception of legal rules as a component of the regulatory compliance process. It adopts a frontline approach to regulatory compliance that traces the grassroot functioning of compliance processes from regulator, to compliance managers to individual employees. Through a multilevel and multi-sited ethnography of worker safety protection in Chinese construction industry, this paper shows that in the cases studied there is a fundamental disconnect in the transmission and reception of law from regulator to (...) organization and within the regulated organization. Yet at the same time, the paper finds that employees did comply with the law, and that thus compliance can exist without a full transmission and reception of legal rules into and within the regulated organization. By expanding the frontline approach to study regulation and compliance to look at the grassroots operation across three different frontlines, this study has been able to assess the legal assumptions inherent in existing regulatory compliance research. Not only does it find that compliance in these cases was not a top-down process and that we need to look at the grassroots operation inside organizations, it also shows that law does not always play a central role in regulatory compliance and that we need to reassess the implicit focus on law in regulatory compliance scholarship. (shrink)

We study the relationship between corporate social performance and financial performance by comparing the portfolio returns of firms with changes in corporate social responsibility intensity. Using an extensive US sample from the MSCI ESG database, we find that improvement in the overall CSR is generally value enhancing. The relationship varies with CSR dimensions. More importantly, the relationship shifts differently for various CSR dimensions during the crisis period when trust in the society is low and financial resource is limited. Improvement in (...) environment, human rights, and product characteristics shows higher financial returns during the financial crisis period, whereas the value enhancement of improvement in employee relations is more pronounced during the non-crisis period. (shrink)

Multi-stakeholder initiatives have been praised as vehicles for tackling complex sustainability issues, but their success relies on the reconciliation of stakeholders’ divergent perspectives. We yet lack a thorough understanding of the micro-level mechanisms by which stakeholders can deal with these differences. To develop such understanding, we examine what frames—i.e., mental schemata for making sense of the world—members of MSIs use during their discussions on sustainability questions and how these frames are deliberated through social interactions. Whilst prior framing research has focussed (...) on between-frame conflicts, we offer a different perspective by examining how and under what conditions actors use shared frames to tackle ‘within-frame conflicts’ on views that stand in the way of joint decisions. Observations of a deliberative environmental valuation workshop and interviews in an MSI on the protection of peatlands—ecosystems that contribute to carbon retention on a global scale—demonstrated how the application and deliberation of shared frames during micro-level interactions resulted in increased salience, elaboration, and adjustment of shared frames. We interpret our findings to identify characteristics of deliberation mechanisms in the case of within-frame conflicts where shared frames dominate the discussions, and to delineate conditions for such dominance. Our findings contribute to an understanding of collaborations in MSIs and other organisational settings by demonstrating the utility of shared frames for dealing with conflicting views and suggesting how shared frames can be activated, fostered and strengthened. (shrink)

We investigate how the selection of assurance topics and the format of their communication influence the credibility perception of sustainability report readers. This is important because misleading communication may discredit ethical sustainability assurance practices. Based on signaling theory and using an experimental approach, we are the first to examine false credibility signals in the context of sustainability assurance. We find that two variables related to sustainability assurance, reference explicitness and assurance depth, jointly influence the assurance signal and the perceived credibility (...) of a sustainability report. Our findings indicate that readers are not at risk of false signaling but can make incorrect interpretations of the assurance signal and might respond negatively to well-intentioned signals. The main implications of our findings are that firms should refrain from increasing reference explicitness and should select only the most material topics. Taken together, our results provide new insights on the unethical practice of false signaling and provide an example of an incorrect signal interpretation by readers. (shrink)

This article revisits the "harmony doctrine" school of economics and its distinctive understanding of how ethics and economics intersect. Harmony doctrine thinkers staked out a “natural” understanding of economic phenomena that in many ways fused the classical political economy of Adam Smith with the earlier French Physiocratic School. Their metaphysically grounded interpretation was largely eclipsed by the developments of utilitarian and marginalist schools by the end of the nineteenth century. Yet harmony doctrine thinking adhered to a distinct understanding of how (...) ethical processes and outcomes play out within the economic sphere that has to date gone under examined by business ethicists. This paper outlines three characteristics of harmony doctrine views: the belief in curative forces empowered to "heal" the economic order, a dichotomous interpretation of the economic realm that distinguishes the “natural” from the “artificial,” and an overarching belief in a harmonious social order actualized by cooperative interdependencies within economic enterprises. Despite falling into obscurity in the economic discipline, all these ideas found new life in intellectual currents of organizational and political thought at the turn of the twentieth century. After surveying these historical developments, this article concludes by demonstrating how harmony doctrine thinking helpfully illuminates persisting metaphysical dimensions of contemporary business ethics. (shrink)

We explore the legalization of the cannabis industry in the US, and point at the conflicted path through which this emerging industry has traversed. In particular, we highlight how this industry has navigated controversy to become one of the fastest growing industries in the world. The paper also offers a theoretical model that explains the role played by social movements to propel and shape early antagonism towards increasing protagonism. Evidence of the latter is seen in the form of cannabis laws (...) passing at the state level in the US. We posit that resource mobilization and shaping effects were instrumental in laying the grounds for legalization. A detailed timeline of the legalization for over one and a half centuries is also provided. Our synergistic approach integrates a historical perspective with social movement theory to address a relatively new and under examined phenomenon in the emerging US legal cannabis industry and ensuing ethical implications. (shrink)

Posthuman affirmative ethics relies upon a fluid, nomadic conception of the ethical subject who develops affective, material and immaterial connections to multiple others. Our purpose in this paper is to consider what posthuman affirmative business ethics would look like, and to reflect on the shift in thinking and practice this would involve. The need for a revised understanding of human–animal relations in business ethics is amplified by crises such as climate change and pandemics that are related to ecologically destructive business (...) practices such as factory farming. In this analysis, we use feminist speculative fiction as a resource for reimagination and posthuman ethical thinking. By focusing on three ethical movements experienced by a central character named Toby in Margaret Atwood’s MaddAddam trilogy, we show how she is continually becoming through affective, embodied encounters with human and nonhuman others. In the discussion, we consider the vulnerability that arises from openness to affect which engenders heightened response-ability to and with, rather than for, multiple others. This expanded concept of subjectivity enables a more relational understanding of equality that is urgently needed in order to respond affirmatively to posthuman futures. (shrink)

Ethical work climate, introduced by Bart Victor and John Cullen, plays a central role in the business ethics literature due to its influence on employee’s ethical decision-making. Yet, the often-used framework is limited as a descriptive and prescriptive model because it lacks a normative focus and does not allow for organizations guided by universal ethical principles. We revisit Victor and Cullen’s original conceptualization of ethical climate and propose a reformulation of the ethical criteria to be conceptually consistent with Kohlberg’s theory (...) of cognitive moral development and to accommodate principled climates. We also describe how the locus of analysis dimension can be simplified to allow for a more parsimonious and potentially more valid theory. In doing so, we eliminate redundancy noted in the original model and clarify normative preference among the ethical climate types. We discuss implications for research, teaching, and practice. (shrink)

We examine the processes involved in the escalation of a plant closure from a local concern to a perceived organizational moral failure that commands national attention. Our empirical case covers the controversy over the decision of telecommunications giant Nokia to close a plant in Germany, despite having received significant state subsidies, and the relocation of production to Hungary and Romania. We conducted an inductive study that utilizes a semiotic analysis to identify how various actors framed the controversial plant closure and (...) sought to cast it as moral failure. Our analysis uncovered two distinctive moral framings of the plant closure and revealed how key actors used evocative labels to frame these events in moral terms. These moral framings drew in additional stakeholders, generated more widespread media coverage, and turned the case into an organizational moral failure in the eyes of the national public. We contribute to the literature on organizational moral failure by theorizing its escalating process and elaborating why and how local events may become moral issues of interest to broader stakeholder groups. (shrink)

Despite recognizing the importance of impact investing in combating complex societal challenges, researchers have yet to examine the capacity of the field to address systemic inequality. While impact investments are intended to benefit vulnerable stakeholders, the voices of those stakeholders are generally overlooked in the design and implementation of such investments. To resolve this oversight, we theorize how the fields’ design—through its tools, organizations, and field-level bodies—influences its capacity to address inequality by focusing on the concept of giving voice, which (...) we define as the inclusive participation of vulnerable stakeholders in decision-making processes. We build from stakeholder engagement research to show how the design of impact investing can address inequality using three illustrative cases: social impact bonds, impact investing funds, and national advisory boards. We conclude with a discussion of how the ethical decision of giving voice to vulnerable stakeholders will determine the capacity of the field to address inequality, as well as provide implications for future research and practice. (shrink)

Collective moral agents can cause their own moral incapacity. If an agent is morally incapacitated, then the agent is exempted from responsibility. Due to self-induced moral incapacity, corporate responsibility gaps resurface. To solve this problem, I first set out and defend a minimalist account of moral competence for group agents. After setting out how a collective agent can cause its own moral incapacity, I argue that self-induced temporary exempting conditions do not free an agent from diachronic responsibility once the agent (...) regains its moral faculties. For collective agents, any exempting condition is potentially temporary due to the ‘malleability’ of their constitution. Therefore, in cases of self-induced moral incapacity and subsequent wrongdoing, unlike individuals, every collective agent can be (made) morally responsible for its actions even though it did not qualify as a moral agent at the time of wrongdoing. Hence, this is no reason for skepticism concerning corporate responsibility. (shrink)