Organizational Ethics

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 (...) of meaningful work and explain why, due to a prejudice that existed with respect to remote work before the Covid-19 pandemic, the issue of freedom from the office was not given normative relevance. I then introduce a Kantian argument in defence of remote work and proceed to discuss two objections. The first objection is that remote work may well foster productivity, but it creates problems in terms of innovation and training of new staff. The second objection is that remote work hinders rather than fosters meaningful work because it deprives employees of social relations and inhibits workplace identity. I conclude by explaining why neither objection undermines the normative argument that workers should be allowed to work remotely as long as the “bearable costs” clause is met. (shrink)

AI-supported methods for identifying and combating disinformation are progressing in their development and application. However, these methods face a litany of epistemic and ethical challenges. These include (1) robustly defining disinformation, (2) reliably classifying data according to this definition, and (3) navigating ethical risks in the deployment of countermeasures, which involve a mixture of harms and benefits. This paper seeks to expose and offer preliminary analysis of these challenges.

Packed with examples, this book offers a clear and engaging overview of ethical issues in business. -/- It begins with a discussion of foundational issues, including the objectivity of ethics, the content of ethical theories, and the debate between capitalism and socialism, making it suitable for the beginning student. It then examines ethical issues in business in three broad areas. The first is the market. Issues explored are what can be sold (the limits of markets) and how it can be (...) sold (ethics in marketing). The second is work. Topics in this area are health and safety, meaningful work, compensation, hiring and firing, privacy, and whistleblowing. The third area is the firm in society. Here readers explore corporate social responsibility, corporate political activity, and the set of ethical challenges that attend international business. -/- Issues are introduced through real-world examples that underscore their importance and make them come alive. Arguments for opposing positions are given fair hearings and students are encouraged to develop and defend their own views. (shrink)

Tomorrow’s leaders won’t emerge from top-down hierarchies but from new types of organizational structures. -/- Decentralization, cooperation and inclusion play an increasing role in the success of any organization. And new governance models have been created to meet this global trend. -/- The concept of the postmodern organization for instance – one that is decentered, self-reflexive and multi-faceted – is more than 20 years old. The idea that organizations should not focus solely on shareholder value but serve a diverse set (...) of stakeholders (pluralistic organizations) is more relevant than ever, although it was already widespread in the early 2000s. Alternative governance models exist but still need to gain in popularity. -/- In this interview series, we’ve asked a panel of experts to describe (not so) new leadership and organizational theories, what they have learned while practicing them and how more organizations could start applying them. (shrink)

According to Richard Sennett, concepts such as flexibility, decentralization and control, work ethic and teamwork in the New Economy have led to disorientation and emotional and psychological undermining of the individual, stating that "a regime which provides human beings no deep reasons to care about on other cannot long preserve its legitimacy.” He defines the New Economy as the new form of "flexible capitalism". DOI: 10.13140/RG.2.2.30905.39520.

Free Download from Teseo Press Link Book in Spanish Este libro está dirigido a investigadores interesados en la influencia que ejerce la cultura de una empresa sobre el comportamiento ético de sus integrantes y en la conformación de la empresa como un agente moral. El fenómeno de la mentalidad compartida en una organización es estudiado bajo diversas disciplinas, partiendo de una larga experiencia de “entrenamiento ético” llevada a cabo por la autora en empresas multinacionales. Esta investigación presenta a la comunidad (...) académica un método de intervención organizacional orientado a desarrollar una conciencia ética compartida. El método heurístico propuesto busca revelar a los propios integrantes de la organización la trama de significados que ordena sus interacciones. Mediante dibujos y metáforas colectivas explora la construcción de sentido que los grupos sostienen de forma compartida a un nivel pre-racional y que influye en el carácter ético de sus decisiones personales. Este estudio aborda a la empresa como un ente causado por la convergencia de valores y reglas en el que sus integrantes pueden realizar cambios personales y aprendizajes colectivos. (shrink)

This is a review of the latest in the Empire/Multitude series by Michael Hardt and Antonio Negri: Assembly. Published in 2018.

Since the global financial crisis in 2008, corporations have faced a crisis of trust, with growing sentiment against ‘elites and ‘big business’ and a feeling that ‘something ought to be done’ to re-establish public regard for corporations. Trust and trustworthiness are deeply moral significant. They provide the ‘glue or lubricant’ that begets reciprocity, decreases risk, secures dignity and respect, and safeguards against the subordination of the powerless to the powerful. However, in deciding how to restore trust, it is difficult to (...) determine precisely what should be done, by whom, and who will bear the cost, especially if any action involves a risk to overall market efficiency and corporate profitability. The paper explores whether corporations have a moral duty to be trustworthy, to bear the cost of being so and thus contribute to resolving the current crisis of trust. It also considers where the state and other social actors have strong reason to protect and enforce such moral rights, while acknowledging that other actors have similar obligations to be trustworthy. It outlines five ‘salient factors’ that trigger specific rights to trustworthiness and a concomitant duty on corporations to be trustworthy: market power, subordination (threat and intimidation), the absence of choice, the need to preserve systemic trust, and corporate political power which might undermine a state’s legitimacy. Absent these factors and corporations do not have a general duty to be trustworthy, since a responsible actor in fair market conditions should be able to choose between the costs and benefits of dealing with generally trustworthy corporations. (shrink)

On intellectual foundations that distinguished chemical engineering from other disciplines.

The development of a professional identity is particularly interesting for those occupations that have a troubled emergence. The hinterland between science and technology accommodates many such ‘in-between’ subjects, which appear to have distinct attributes. Some of these specialisms disappear in the face of culturally stronger occupations. Others endure, their technical expertise becoming appropriated or mutated to serve the needs of different professional groups. This chapter is concerned with one extreme of these interstitial specialisms. Chemical engineering – a subject that by (...) its very name is between the science of chemistry and the technology of engineering – did eventually become a profession, in at least some countries. It had a relatively easy time becoming established in America in the first third of this century, but chemical engineering remained largely unrecognised in Germany until the 1960s, and has attracted a smaller professional community there. In Britain, the chemical engineering profession has evinced distinct transitions over a period of a century. It emerged to become an influential contributor to western economies and one of the ‘big four’ engineering professions (along with civil, mechanical and electrical engineering) after the second world war, due in large part to the unmindful aid of an influential, if capricious, sponsor: the state. Yet chemical engineers had a long and troubled history of contestation with other professions. Because of this, the British case is particularly appropriate for examining the continual re-casting of the professional identity in response to external and internal pressures. (shrink)

A layoff is a threatening yet common event which employees might face at some point in their working lives. In two scenario-based experiments, we investigated which actions of a layoff agent during a dismissal notification meeting may contribute to laid-off employees’ fairness judgments and negative attitudes toward the employer. In general, the extent to which layoff victims were treated with respect was consistently found to increase perceptions of interpersonal and procedural fairness and to mitigate negative attitudes toward the employer. Further (...) results showed that layoff victims preferred to be given an adequate explanation of the reasons for the layoff and to receive notice from the direct supervisor. Relationships between the layoff agent’s actions and layoff victims’ negative attitudes toward the employer were mediated by perceptions of procedural fairness. In addition, delegating the layoff agent’s task to an external consultant increased perceived psychological contract breach. Our findings have important implications for organizational justice research and for the managerial practice of implementing fair layoffs. In particular, small actions, such as treating employees with respect, might be of benefit both to humans and organizations. (shrink)

Are employers utilizing temporary workers as a means to decrease the funds allocated to the training and development of full-time workers? This article examines industry trends in the utilization of contingent workers and training expenditures in an attempt to explain the relation between the two variables. The article also examines the ethical responsibility of organizations to train and develop employees. Data were collected from organizations that participated in a survey soliciting information regarding temporary workers and training expenditures between the years (...) 1980 and 1999. The results suggest that a relation does exist between the variables. Data were also collected from Fortune magazine databases concerning "America's Most Admired Companies" and the "100 Best Companies to Work for". These data suggest that training has an impact on the various attributes of organizations that are included on these lists. (shrink)

Literature reviews have repeatedly emphasized the need to further investigate relationships between corporate social responsibility and micro-organizational variables. The present research attempts to address this call by examining the direct and indirect relationship between individual perceptions of CSR and employees’ organizational citizenship behaviors. Multiphasic data from 207 workplace supervisor–subordinate dyads recruited from an online panel were analyzed to show that organizational identification mediated the relationship between CSR and OCBs. Furthermore, supervisor transformational leadership style moderated the mediation, such that the indirect (...) effect of the organizational identification on the relationship between CSR and OCBs became nonsignificant under low transformational leadership. Based on these results, we make suggestions for using embeddedness programs to improve perceptions of CSR. (shrink)

We examined a largely ignored but imperative dimension of safety literature by testing the impact of ethical leadership style on organizational safety performance. We also tested dual mediating paths of safety culture and safety consciousness in the relationship between ethical leadership style and organizational safety consciousness. Data were collected from a large public sector telecom company in Pakistan. Confirmatory factor analysis was used to assess the reliability and validity of the study scales and model fit. Preacher and Hayes’s macro of (...) mediation was employed to test the direct and indirect paths proposed in the study. The findings suggest that ethical leadership has a positive impact on organizational safety performance. Partial mediating roles of safety culture and safety consciousness were also found between the dependent and independent variables. Theoretical and practical implications are discussed. (shrink)

Many jurisdictions have put regulatory strategies in place to provide incentives and safeguards to whistleblowers to encourage whistleblowing on corporate wrongdoings. One such strategy is the provision of a financial incentive to the whistleblower if the complaint leads to a successful regulatory enforcement action against the offending organization. We conducted an experiment using professional accountants as participants to examine whether such an incentive encourages potential whistleblowers to report an observed financial reporting fraud to a relevant external authority. We also examine (...) the effect of perceived seriousness of the wrongdoing on accountants’ intention to whistleblow. We find that a financial incentive results in a higher intention to whistleblow to a relevant external authority. We also find that perceptions of the seriousness of the wrongdoing are significantly and positively associated with accountants’ intention to whistleblow to a relevant external authority. We find a significant interaction between the provision of a financial incentive and the perceived seriousness of the wrongdoing on the intention to report the wrongdoing externally. The intention to report the financial reporting fraud externally is higher when the level of perceived seriousness is higher, regardless of the availability of a financial incentive. However, when the perceived level of seriousness is lower, the presence of financial incentive results in a higher intention to report the financial reporting fraud externally. These findings indicate that the impact of a financial incentive on the intention to whistleblow is moderated by perceptions of the seriousness of the wrongdoing. (shrink)

Traditionally, the three-pronged mission of our colleges and universities has been to provide high-quality education, encourage cutting-edge research, and promote professional and community service. The substitution of business-based policies for sound academic principles, however, has institutionalized a form of professional inequality that threatens all three. The growing distinction between tenured and tenure-track faculty members on the one hand and tenure-ineligible lecturers or part-time adjuncts on the other has produced an academic caste system that is undermining the raison d’être of our (...) institutions of higher learning. This system is capricious, discriminatory, and unjust. (shrink)

Sports organizations face various ethical challenges. To tackle these, ethical codes are becoming increasingly popular instruments. However, a lot of questions remain concerning their effectiveness. There is a particular lack of knowledge when it comes to their form and content, and on the influence of these features on the effectiveness of these codes of ethics. Therefore, we developed a framework to analyze ethical codes and used this to assess codes of ethics in sports clubs from six disciplines. The form and (...) content characteristics of the codes were tested for their impact on the ethical climate of sports clubs. Our results show that most codes focus on the themes of integrity, and on solidarity among the members of sports clubs. Deontological phrasing is dominant in ethical codes in sports clubs. The occurrence of comprehension aids, such as examples, and procedural content, such as the mentioning of sanctions, is low. When it comes to code effectiveness, i.e., the influence on the ethical climate, we see a positive significant effect of the use of consequentialist oriented statements, and of the combination of regulatory and inspirational phrasing. Also the presence of explicit guidelines for the members of the board had a positive significant affect. This shows that codes should be a source of inspiration and stimulate moral awareness, rather than merely guide behavior by simple rules. Other content elements do not influence code effectiveness, suggesting that ethical codes merely have a function of raising ethical awareness in sports clubs. These results help to shed light on what it takes for a code of ethics to become a useful and effective instrument to tackle unethical behavior in sports clubs. (shrink)

The new features of the business environment have expanded the concept of organizational learning capability. In today’s competitive business environment, OLC has been recognized as an essential means to gain a sustainable competitive advantage. However, the effective development of that capability has not been sufficiently analyzed in the organizational learning literature. Prompted by a recent paradigm shift in the organizational sciences, this research explores the link between altruism and OLC testing a wider picture that includes two intermediate steps: Relationship Conflict (...) and Organizational Trust. To check our hypotheses, we used structural equations to analyze data from a survey of Spanish firms with recognized excellence in human resource management. Results indicate that organizational trust mediates on the altruism—OLC relationship; however, such linkage is not mediated by relationship conflict. Findings suggest that altruism and trust should be promoted in organizations in order to boost OLC. (shrink)

The main aim of the present study was to examine whether an ethical organizational culture is associated with sickness absence in a Finnish public sector organization at both the individual and work unit levels. The underlying assumption was that employees working for organizations that are characterized by a strong ethical organizational culture report less sickness absence. The sample consisted of 2192 employees from one public sector city organization that included 246 different work units. Ethical organizational culture was measured with the (...) Corporate Ethical Virtues scale covering eight sub-dimensions. Sickness absence was inquired by asking the participants to report how many days they had been absent from work because of their own sickness over the past year. Multilevel structural equation modelling showed that, at the individual level, perceptions of a strong ethical organizational culture were associated with less sickness absences after controlling for the background factors. This link was not found at the work-unit level. The findings indicate that an ethical organizational culture plays a significant role in enhancing employee well-being measured as sickness absence. It seems that especially supervisor’s ethical role modeling and possibilities to discuss about ethical issues are important factors in preventing sickness absence in the organizations. (shrink)

A dual-processing model of moral whistleblowing in organizations is proposed. In this theory paper, moral whistleblowing is described as a unique type of whistleblowing that is undertaken by individuals that see themselves as moral agents and are primarily motivated to blow the whistle by a sense of moral duty. At the individual level, the model expands on traditional, rational models of whistleblowing by exploring how moral intuition and deliberative reasoning processes might interact to influence the whistleblowing behavior of moral agents. (...) The model combines individual variables, organizational variables, and external, societal variables to explain the moral whistleblowing process and the impact of moral agents on organizations and society. (shrink)

Does it make sense to talk about corporate responsibility for climate change mitigation? Through utilizing systems thinking, I will argue that mitigation should be incorporated into corporate policies for present and future activities within the existing political framework. However, not much retrospective responsibility exists for past emissions. Exception to this are corporations who have engaged in climate change lobbying activities, voluntarily expanding their sphere of influence in the system. They could be responsible for the damage caused by misinformation campaigns and (...) subject to compensation claims. (shrink)

BACKGROUND: In today’s world of increased awareness regarding the concepts of corporate social responsibility (CSR) and corporate governance (CG), many firms in the developed countries consider noncompliance with CSR and CG standards as an important source of risk to their reputations with stakeholders. OBJECTIVE: The aim of this study is to investigate the relationship between the corporate social responsibility disclosure (CSRD) index and corporate factors, namely, board size, board independence, board meetings, CEO duality, a firm’s size, leverage, profitability and age. (...) This is the first known study in the case of Saudi Arabia to use the GRI 4th edition indicators to construct the CSRD index and evaluate Saudi listed firms. Results: The results show that profitability and size factor have positive and significant association with CSR disclosure in listed Saudi firms. While CG characteristics have no impact on CSR disclosure except board independence which has a negative impact. Conclusion: The average of CSRD index among Saudi firms is too low, it is about 11% that means Saudi firms disclose 11% of the information that they have to provide for stockholders according to GRI guidelines. Furthermore, the study concludes that the most polluted sectors “Ener. (shrink)

Reports of ethical lapses in the business world have been numerous and widespread. Ethical awareness in business education has received a great deal of attention because of the number and severity of business scandals. Given Sarbanes-Oxley legislation and recent Association to Advance Collegiate Schools of Business International's recommendations, this study examined respective websites of Securities and Exchange Commission regulated public companies and AACSBI-accredited business schools for ethical policy statement content. The analysis was accomplished by classifying ethical expressions into a framework (...) consisting of the attributes of thematic content and focus/themes partially based on the 2004 research of Gaumnitz and Lere. Findings indicate that public companies have been diligent in presenting website ethical content that closely follows authoritative recommendations. Business schools appear not to have prioritized such disclosure to the extent done so by public companies. Although there was improvement between two samples taken in 2005 and 2007, this study provides evidence that many accredited business schools have little or no disclosed ethical expectations in their mission, vision, goals, or other similar types of statements on their websites. Additional findings provide several opportunities for future research. (shrink)

When successful and ethical managers are alerted to possible organizational wrongdoing, they take corrective action before the problems become crises. However, recent research [e. g., Rynes et al. (2007, Academy of Management Journal 50(5), 987-1008)] indi cates that many organizations fail to implement evidence-based practices (i. e., practices that are consistent with research findings), in many aspects of human resource management. In this paper, we draw from years of research on whistle-blowing by social scientists and legal scholars and offer concrete (...) suggestions to managers who are interested in encouraging internal reporting of problems requiring attention, and to observers of questionable activity who are considering reporting it. We also identify ways that research suggests policy-makers can have a more positive influence. We hope that these suggestions will help foster evidence-based practice regarding whistle-blowing. (shrink)

How common are corporate codes of ethics in the UK and especially among Britain's most admired companies? The author is Wicklander Professor of Professional Ethics at DePaul University, Chicago, and current President of the American Society for Business Ethics.

The focus of this article is on the political nature of whistleblowing. It argues that reprisals by management, rather than silencing the whistleblower, result in the transformation and politicisation of the individual. The process that leads to the transformation of a loyal employee into a political activist is considered through analysing the experiences of a whistleblower in the sphere of financial regulation in South Africa. The article investigates the effect of retaliation by the employer on the employee‐organisational relationship. It looks (...) in particular at the nature of the power struggle between the whistleblower and management and suggests explanations why organisations tend to respond in such a harsh fashion to whistleblowing. It concludes that the act of whistleblowing not only displays an expressive dimension, but also a political instrumental dimension that is often neglected in literature on whistleblowing. (shrink)

Sethi focuses on multinational corporations in developing countries and the unfair advantage they have in expropriating a greater share of gains from efficiency and productivity from international trade than would be possible if labor had greater mobility or bargaining power.

An organisation which operates without a ‘self-concept’ of its goals, authorised roles, governance procedures regarding sharing information, decisional powers and procedures, and distribution of benefits, or without continuous audit of its impact on its end-users, other players in the practice, and the state, does so at some ethical risk.This paper argues that a quasi-personal model of the collective ethical agency of organisations and states is helpful in suggesting some of these key areas which are liable to need careful organisational design (...) and control by leadership groups if the organisation as a whole entity steered by the board/CEO as ‘mind/will,’ is to identify its stakeholders – internal and external – and treat them well. Such a quasi-personal model is outlined in which six suggested areas should be covered by the leadership group in ethical governance: goals, roles, decision procedures, execution/verification, relations with endusers and other players in the practice, and relations with the community and the state. The ethical conception presupposed is Neo-Aristotelian Virtue Ethics.In subsequent papers the many advantages of QPM/NAVE which will be claimed are these: it comes with an analysis of justice which straddles individuals, families, communities, markets, and states; it offers a more coherent normative account of ‘stakeholder’ and the internal /external stakeholder distinction, by differentiating their descriptive, ethical, and causal relations to the firm as collective agent; and it suggests that business practice and business corporations are partly creatures of the state, and merely one kind of evolving and changeable institution, in a practice with a specific socio-political permit,. (shrink)

This is the second of three papers with the overall title: “A Quasi-Personal Alternative to Some Anglo-American Pluralist Models of Organisations: Towards an Analysis of Corporate Self-Governance for Virtuous Organisations”.1 In the first paper, entitled: “Organisations as quasi-personal entities: from ‘governing’ of the self to organisational ‘self ’-governance: a Neo-Aristotelian quasi-personal model of organisations”, the artificial corporate analogue of a natural person sketched there, was said to have quasi-directive, quasi-operational and quasi-enabling/resource-provision capacities. Its use of these capacities following joint deliberation (...) in ethically permissible and just joint acts, their effect on end-users and other parties, and conformity with or challenge to State law, arguably settles its moral status as an ethical or unethical organisational agent. This paper identifies and defends the presuppositions of this conception, and applies the results to business. (shrink)

What are international codes of conduct for? The broad support for such codes masks fundamental differences about their purpose. Corporations see codes of conduct as regimes for regulating their relations with their suppliers in developing countries and—not least—to counter negative publicity. For labor and human rights activists, on the other hand, codes of conduct are levers for forcing positive change in global labor and environmental standards. Here I consider two areas typically covered by codes of conduct—wages and child labor—and identify (...) some of the dangers of using codes to force change. If low wages or child labor are the result of poverty, and can’t be fixed by enlightened corporate policies, then codes will at best leave the underlying problems untouched and at worst will aggravate them. I conclude that we should be cautious about using codes to force higher standards. (shrink)

The stigma of reporting wrongdoing at work: When doing right is perceived as wrong The act of reporting unethical, illegal and illegitimate practices at work, whistleblowing, can be associated with a stigma for the individual in question. This article presents the stigmatizing position of reporting wrongdoing at work, types of wrongdoing and individual antecedents. Since empirical studies have shown very few systematic results regarding individual differences, one way to decrease societal stigma can be to relate the act of reporting to (...) other known acts that are perceived upon as more positive within society. We therefore also discuss similarities and differences between the idea of whistleblowing and other concepts such as Organizational Citizenship Behaviour, in-role, and extra-role behaviour before we make some concluding remarks. (shrink)

Change has traditionally been perceived as something to be avoided in favor of stability. This can be witnessed in both individual and organizational approaches to change. In this paper, change as a process of becoming is analyzed. The author relates change to seduction to introduce new perspectives to the concept. The principal idea is that the process of change is a seductive experience. This assumption highlights the positive aspects of becoming, growing, and changing. In doing so, reference is made to (...) the philosophy of Gilles Deleuze, as well as the humanistic psychology of Carl Rogers, to analyze seduction, as presented in The Seducer’s Diary by the philosopher Søren Kierkegaard. The qualification of this claim is based on this reading. Finally, a conclusion is offered through brief comments on the relationship between seduction, personal growth, and self-actualization. (shrink)

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