In light of continuing corporate scandals, the study of ethical leadership remains an important area of research which helps to understand the antecedents and consequences of ethical behavior in organizations. The present study investigates how social distance influences ethical leadership evaluations, and how in turn ethical leadership evaluations affect leader-member exchange (LMX) after a leader's moral transgression. Based on construal level theory, we propose that higher social distance will lead to more severe evaluations of immoral behavior and therefore entail lower (...) ethical leadership ratings. Moreover, we hypothesize that ethical leadership will positively affect LMX. Participants read a scenario describing a moral situation in which a leader, who was presented in either high or low social distance, behaves unethically toward an employee. We tested our predictions using a structural equation modeling approach. As expected, participants in the high social distance condition judged leaders more harshly (i. e., they gave lower ethical leadership ratings) than in the low social distance condition. Thus, social distance moderated the extent to which leaders are perceived as ethical leaders after moral transgression. Moreover, in accordance with our proposition, ethical leadership ratings had a positive influence on LMX. (shrink)

This study introduces Moscovici’s (1976, 1985) model of social influence to the accounting research domain, and uses an experimentto assess whether his theory explains how different types of discussion affects consensus in auditors’ ethical reasoning. Moscovici’s theory proposes three modalities of influence to describe how consensus is achieved following discussion: conformity, innovation, and normalization. Conformity describes the situation where individuals in the minority (e.g., auditors that do not accept the dominant view) accede to the majority (e.g., auditors that hold the (...) dominant view) as a result of group discussion. Innovation describes the situation where individuals in the majority accede to the minority. Normalization describes the situation where there is reciprocal influence.We find that conformity occurs when auditors are asked to prescriptively discuss what ideally “should” be the resolution to an ethicaldilemma. Normalization occurs when auditors are asked to deliberatively discuss what realistically would be the resolution to an ethical dilemma. The results of this study suggest that prescriptive discussion of an ethical dilemma encourages auditor groups to strive to find the best response to a moral dilemma if it is represented by the majority view. In contrast, deliberative discussion of an ethical dilemma may encourage the elimination of multiple viewpoints. The results of this study have important implications for understanding the social influence process that affects auditors’ ethical reasoning. (shrink)

This study introduces Moscovici’s (1976, 1985) model of social influence to the accounting research domain, and uses an experimentto assess whether his theory explains how different types of discussion affects consensus in auditors’ ethical reasoning. Moscovici’s theory proposes three modalities of influence to describe how consensus is achieved following discussion: conformity, innovation, and normalization. Conformity describes the situation where individuals in the minority (e.g., auditors that do not accept the dominant view) accede to the majority (e.g., auditors that hold the (...) dominant view) as a result of group discussion. Innovation describes the situation where individuals in the majority accede to the minority. Normalization describes the situation where there is reciprocal influence.We find that conformity occurs when auditors are asked to prescriptively discuss what ideally “should” be the resolution to an ethicaldilemma. Normalization occurs when auditors are asked to deliberatively discuss what realistically would be the resolution to an ethical dilemma. The results of this study suggest that prescriptive discussion of an ethical dilemma encourages auditor groups to strive to find the best response to a moral dilemma if it is represented by the majority view. In contrast, deliberative discussion of an ethical dilemma may encourage the elimination of multiple viewpoints. The results of this study have important implications for understanding the social influence process that affects auditors’ ethical reasoning. (shrink)

In our globalized and interconnected world, companies are increasingly donating substantial amounts to good causes around the globe. Many companies choose to donate “at home” while others give to causes in faraway places where recipients are in dire need of support. Interestingly, past research on corporate donations has neglected the question of whether consumers differentially reward companies for geographically varying allocations of donation budgets. Through a mixed methods approach, this paper remedies this gap by developing and empirically testing a conceptual (...) framework of consumers’ preferences for geographically varying allocations of corporate donation budgets. In a first step, two preliminary field studies involving real donations explored customers’ preferences for donation allocations varying in geographical focus. A qualitative focus group study then investigated underlying rationales to inform the research and led to the development of hypotheses. Subsequently a large-scale between-subjects scenario experiment tested the predictions. Overall, results indicate that, in contrast with current managerial practice, customers prefer companies that split donations equally between domestic and foreign recipients or even donate only abroad. (shrink)

This study aims to analyze what drives and prevents the purchasing of eco-friendly products across different consumer groups and develops a conceptual model embracing the positive altruistic, positive ego-centric, and negative ego-centric antecedents of eco-friendly product purchase intention and behavior. We empirically validate the conceptual model for green and non-green consumers. Data are analyzed using structural equation modeling and multi-group analysis of the two groups. The results confirm the relevance of the determining factors in the model and show significant differences (...) in eco-friendly product purchasing patterns between green and non-green consumers. Altruistic motives are more important for green than for non-green consumers. Negative ego-centric motives affect the purchase intentions of non-green consumers more than the intentions of green consumers, whereas the impact of negative motives on behavior is stronger for green than for non-green consumers. The first contribution of this paper is the development and testing of a parsimonious model of eco-friendly products purchasing that embraces both positive and negative antecedents, which have been theoretically suggested in the past but have rarely been empirically tested together. The second contribution of this study is that it develops insight into the specific antecedents of eco-friendly products purchasing for green and non-green consumers to assess potential similarities and differences in eco-friendly products purchasing process, the hypothesized antecedents, their impact on eco-friendly products purchase intention and behavior, and the intention–behavior relation. (shrink)

This paper explores the influence of social categories on the perceived trade-off between a relatively bad but equal distribution of resources between two parties and a profit maximizing yet unequal one. Studies 1 and 2 showed that people prefer to maximize profits when interacting within their social category, but chose not to maximize individual and joint profits when interacting across social categories. Study 3 demonstrated that outside observers, who were not members of the focal social categories, also were less likely (...) to maximize profits when resources were distributed across social category lines. Study 4 showed that the transaction utility of maximizing profits required greater compensation when resources were distributed across, in contrast to within social categories. We discuss the ethical implications of these decision making biases in the context of organizations. (shrink)

Despite an extensive amount of research studying the influence of significant others on an individual's ethical behavior, researchers have not examined this variable in the context of organizational group boundaries. This study tests actual and perceptual sharing and variation in ethical reasoning and moral intent within and across functional groups in an organization. Integrating theory on ethical behavior, group dynamics, and culture, it is proposed that organizational structure affects cognitive structure. Departmental boundaries create stronger social ties within the group as (...) well as intergroup biases between the groups. Thus individuals will be more likely to share in ethical reasoning and moral intent with members of their own functional group (in-group) than with members of other functional groups (out-group). Additionally, they will perceive that they are more likely to share in ethical reasoning and moral intent with in-group members than with out-group members. Responding to two versions of two ethical scenarios, respondents contrasted their own ethical behavior to their expected ethical behavior of in-group and out-group members. Empirical results confirmed the hypotheses. Organizational group boundaries create actual as well as perceptual sharing and variation in ethical reasoning and moral intent. Furthermore, when comparing perceptual sharing to actual sharing, results show that individuals understate their sharing of ethical reasoning and moral intent with out-group members and overstate their sharing with in-group members. As organizational boundaries can create actual and perceived differences between groups that could lead to inter-group conflict, suggestions for management focus on removing or blurring inter-group boundaries. (shrink)

Research has paid scant attention to reparative behavior to compensate for unintended wrongdoing or to the role of emotions in doing the right thing. We propose a new approach to investigating reparative behavior by looking at moral emotions and psychological proximity. In this study, we compare the effects of moral emotions (guilt and shame) on the level of compensation for financial harm. We also investigate the role of transgressors’ perceived psychological proximity to the victims of wrongdoing. Our hypotheses were tested (...) through a scenario based questionnaire on a sample of 261 participants. Analyses indicate that (1) guilt has a stronger effect on the level of compensation than shame; (2) psychological proximity influences the level of guilt, shame, and compensation; and (3) shame interacts with psychological proximity to predict compensation, whereas guilt mediates the relationship between psychological proximity and compensation. (shrink)

This paper explores the influence of social categories on the perceived trade-off between a relatively bad but equal distribution of resources between two parties and a profit maximizing yet unequal one. Studies 1 and 2 showed that people prefer to maximize profits when interacting within their social category, but chose not to maximize individual and joint profits when interacting across social categories. Study 3 demonstrated that outside observers, who were not members of the focal social categories, also were less likely (...) to maximize profits when resources were distributed across social category lines. Study 4 showed that the transaction utility of maximizing profits required greater compensation when resources were distributed across, in contrast to within social categories. We discuss the ethical implications of these decision making biases in the context of organizations. (shrink)

Two sets of self-transcendence values -universalism and benevolence - act as a source of motivation for the promotion of the welfare of the other rather than the self This article sought to determine the exact nature of the interaction between these sets of values and the consumption of fair trade products. In an earlier study, universalism values were found to have a significant influence on fair trade consumption whereas benevolence values did not, despite their shared goal and values theory. Additionally, (...) there was supporting evidence in the extant literature that benevolence values should influence fair trade consumption behavior. This study took a closer look at the individual values that make up the value categories universalism and benevolence to better understand and describe this universalism-benevolence distinction in fair trade consumption. It was established that perhaps group membership has an influence on the decision to buy fair trade products. Specifically, it seems that an overriding sense of responsibility to one's own group — the in-group — prevents some consumers from identifying with, empathizing with, and subsequently sharing resources with fair trade producers; members of out-groups in farflung corners of the globe. It appears that the universalism-benevolence distinction in fair trade consumption might also be described as an in-group-out-group distinction. (shrink)

Although consumers are increasingly engaged with ethical factors when forming opinions about products and making purchase decisions, recent studies have highlighted significant differences between consumers' intentions to consume ethically, and their actual purchase behaviour. This article contributes to an understanding of this 'Ethical Purchasing Gap' through a review of existing literature, and the inductive analysis of focus group discussions. A model is suggested which includes exogenous variables such as moral maturity and age which have been well covered in the literature, (...) together with further impeding factors identified from the focus group discussions. For some consumers, inertia in purchasing behaviour was such that the decision-making process was devoid of ethical considerations. Several consumers manifested their ethical views through post-purchase dissonance and retrospective feelings of guilt. Others displayed a reluctance to consume ethically due to personal constraints, a perceived negative impact on image or quality, or an outright negation of responsibility. Those who expressed a desire to consume ethically often seemed deterred by cynicism, which caused them to question the impact they, as an individual, could achieve. These findings enhance the understanding of ethical consumption decisions and provide a platform for future research in this area. (shrink)

This study aims to analyze what drives and prevents the purchasing of eco-friendly products across different consumer groups and develops a conceptual model embracing the positive altruistic, positive ego-centric, and negative ego-centric antecedents of eco-friendly product purchase intention and behavior. We empirically validate the conceptual model for green and non-green consumers. Data are analyzed using structural equation modeling and multi-group analysis of the two groups. The results confirm the relevance of the determining factors in the model and show significant differences (...) in eco-friendly product purchasing patterns between green and non-green consumers. Altruistic motives are more important for green than for non-green consumers. Negative ego-centric motives affect the purchase intentions of non-green consumers more than the intentions of green consumers, whereas the impact of negative motives on behavior is stronger for green than for non-green consumers. The first contribution of this paper is the development and testing of a parsimonious model of eco-friendly products purchasing that embraces both positive and negative antecedents, which have been theoretically suggested in the past but have rarely been empirically tested together. The second contribution of this study is that it develops insight into the specific antecedents of eco-friendly products purchasing for green and non-green consumers to assess potential similarities and differences in eco-friendly products purchasing process, the hypothesized antecedents, their impact on eco-friendly products purchase intention and behavior, and the intention–behavior relation. (shrink)

Current research has documented how cases of irresponsible corporate behavior generate negative reactions from consumers and other stakeholders. Existing research, however, has not examined empirically whether the characteristics of the victims of corporate malfeasance contribute to shaping individual reactions. This study examines, through four experimental surveys, the role played by the national identity of the people affected on consumers’ intentions to spread negative word of mouth. It is shown that national identity influences individual reactions indirectly; mediated by perceived similarity and (...) sympathy. Consumers perceive foreign victims as different from the self and this reduces the sympathy experienced towards them. Sympathy is an emotion that shapes consumer reactions and regulates WOM. The study identifies two moderating processes of this effect. Individuals who score high on collective narcissism are most likely to be strongly biased against foreign victims. In-group bias is also moderated by the perceived severity of the crisis. When a case is perceived as very serious, perceived similarity plays a less important role in generating sympathy because consumers focus on the perceived suffering of the victims. Hence, in-group bias is stronger in cases perceived as having minor consequences. The paper contributes to the literature on corporate social irresponsibility and offers implications for both scholars and managers. (shrink)