Journal of Business Ethics 90 (4):593-606 (2009)

In the wake of the current financial crises triggered by risky mortgage-backed securities, the question of ethics and risk-taking is once again at the front and center for both practitioners and academics. Although risk-taking is considered an integral part of strategic decision-making, sometimes firms could be propelled to take risks driven by reasons other than calculated strategic choices. The authors argue that a firm's risk-taking propensity is impacted by its ethical climate (egoistic or benevolent) and its emphasis on output control to manage its marketing function. The firm's long-term orientation is argued to moderate the control–risk propensity relationship. The authors also extend research on risk and performance and argue that the association of risk-taking propensity and firm performance is contingent on the ownership (publicly traded versus privately held) structure of the firm. Based on survey data from a sample of manufacturing industries in the United States, the results show significant impact of ethical climate and marketing output control on a firm's risk-taking propensity; also risk-taking propensity shows a stronger association with firm performance in privately held firms than in publicly traded firms
Keywords risk  risk-taking propensity  ethical climate  long-term orientation  output control  publicly traded  privately held
Categories (categorize this paper)
DOI 10.1007/s10551-009-0063-7
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

PhilArchive copy

Upload a copy of this paper     Check publisher's policy     Papers currently archived: 64,077
External links

Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library

References found in this work BETA

Add more references

Citations of this work BETA

View all 6 citations / Add more citations

Similar books and articles

Do Consumers Care About Ethical-Luxury?Iain A. Davies, Zoe Lee & Ine Ahonkhai - 2012 - Journal of Business Ethics 106 (1):37-51.
Society Versus Business Organization: The Strategic Role of Marketing.Tania Veludo-de-Oliveira - 2006 - Electronic Journal of Business Ethics and Organization Studies 11 (1):26-29.
Climate Ethics and Population Policy.Philip Cafaro - 2012 - WIREs Climate Change 3 (1):45–61.


Added to PP index

Total views
40 ( #270,642 of 2,454,576 )

Recent downloads (6 months)
1 ( #449,377 of 2,454,576 )

How can I increase my downloads?


My notes