For stakeholders, such as investors and lenders, to appropriately assess a company's financial performance, the reported accounting earnings must closely reflect the economic reality of the organization's financial activity throughout the reporting period. The degree to which reported earnings capture economic reality is called earnings quality. Managers have an ethical obligation to report high quality earnings to interested stakeholders in a timely matter. Accounting research has identified conditions within an organization, such as management compensation contracts and pending litigation that can (...) impact earnings quality. We extend this line of research by exploring whether another characteristic of an organization, gender diversity in senior management, influences the quality of reported earnings. Companies with more women in senior management are found to be more profitable and have higher stock returns after initial public offerings than those with fewer women in the management ranks. Our findings suggest that the improved bottom line for companies with more women senior executives is not produced through the management of earnings or lower quality earnings. Instead, earnings quality is positively associated with gender diversity in senior management. (shrink)

We examine the relation between earnings information content and the use of trust words, such as “character,” “ethics,” and “honest,” in the MD&A section of 10-K. We find that earnings announcements of firms using trust words have lower information content than earnings announcements of firms that do not use trust words. We also find that the value relevance of earnings is lower for firms using trust words than those not using trust words. Further, firms using trust words are more likely (...) to receive a comment letter from the SEC, pay higher audit fees, and have lower corporate social responsibility scores. Overall, our results suggest that firms that use trust words in the 10-K are associated with negative outcomes, and trust words are an inverse measure of trust. (shrink)

There is a dearth of business ethics research on family firms, despite the importance of such firms to the US economy. We answer Vazquez’s call to examine the intersection of family-firm research and business ethics, by investigating whether external auditors assess higher risk of fraud in family firms. We test the contradictory predictions of two dominant theoretical perspectives in family-firm research—entrenchment theory and alignment theory. We conduct an experiment with highly experienced external audit professionals, who assess the risk of fraud (...) and make client acceptance decisions for family firms versus non-family firms with different strength of corporate governance: strong versus weak audit committees. We find that auditors assess the risk of fraud as higher for family firms than for non-family firms, consistent with the predictions of entrenchment theory. Auditors are also less likely to make client acceptance recommendations for family firms. The strength of the AC moderates the family-firm effect, whereby auditors assess family firms with weak ACs to have the highest fraud risk and to be the least desirable audit clients. Our findings suggest that auditors perceive more severe agency conflicts to be present in family firms than in non-family firms, consistent with entrenchment theory, according to which family members may behave opportunistically to extract rents and potentially expropriate the firm’s resources at the expense of minority shareholders. (shrink)

These further readings on the subject are selected and suggested by the editors of this issue and are published here with kind permissons of the owners of the respective copyrights.

Way back in the 1980s corporations began collecting, combining, and crunching data from sources through-out the enterprise. This approach was widely accepted as a methodology that provides objectivity and trans-parency in decision-making. Good processing of the garnered data paved way for improved analysis of trends and patterns leading to better business and increased profit margins. Corporations began investing in collect-ing, storing, processing and maintaining enterprise wide data. The focus was always on the quality of data and the process of converting (...) it into knowledge that enables right decisions. It was soon realized that a wide range of personal biases has an impact on the way decisions are made. The entire process is replete with ethical dilemmas. This paper provides a framework to understand the interplay of data, information, personal biases, ethics and decision-making. This approach is suitable for every individ-ual, team, organization or a nation. Several years of turmoil in South Africa make it imminent for it to take a fresh look at the way data is transformed into knowledge. The leadership within South Africa has to arrive at wise decisions that can withstand the scrutiny of generations to come. (shrink)

Abstract In this chapter, we challenge the presupposed concept of innovation in the responsible innovation literature. As a first step, we raise several questions with regard to the possibility of ‘responsible’ innovation and point at several difficulties which undermine the supposedly responsible character of innovation processes, based on an analysis of the input, throughput and output of innovation processes. It becomes clear that the practical applicability of the concept of responsible innovation is highly problematic and that a more thorough inquiry (...) of the concept is required. As a second step, we analyze the concept of innovation which is self-evidently presupposed in current literature on responsible innovation. It becomes clear that innovation is self-evidently seen as (1) technological innovation, (2) is primarily perceived from an economic perspective, (3) is inherently good and (4) presupposes a symmetry between moral agents and moral addressees. By challenging this narrow and uncritical concept of innovation, we contribute to a second round of theorizing about the concept and provide a research agenda for future research in order to enhance a less naïve concept of responsible innovation. (shrink)

Although research into the biosemiotic mechanisms underlying the purposeful behavior of brainless living systems is extensive, researchers have not adequately described biosemiosis among neurons. As the conscious use of signs is well-covered by the various fields of semiotics, we focus on subconscious sign action. Subconscious semiotic habits, both functional and dysfunctional, may be created and reinforced in the brain not necessarily in a logical manner and not necessarily through repeated reinforcement. We review literature that suggests hypnosis may be effective in (...) changing subconscious dysfunctional habits, and we offer a biosemiotic framework for understanding these results. If it has been difficult to evaluate any psychological approach, including hypnosis, this may be because contemporary neuroscience lacks a theory of the sign. We argue that understanding the fluid nature of representation in biological organisms is prerequisite to understanding the nature of the subconscious and may lead to more effective of treatments for dysfunctional habits developed through personal experience or culture. (shrink)

In this book, the extend to which we can equip artificial agents with moral reasoning capacity is investigated. Attempting to create artificial agents with moral reasoning capabilities challenges our understanding of morality and moral reasoning to its utmost. It also helps philosophers dealing with the inherent complexity of modern organizations. Modern society with large multi-national organizations and extensive information infrastructures provides a backdrop for moral theories that is hard to encompass through mere theorising. Computerized support for theorising is needed to (...) be able to fully grasp and address the inherent complexity. Using moral reasoning capacity will help us addressing the challenges that technological artefacts pose. They do not only contain information about us, they start to act on our behalves.With the increasing autonomy comes an increased need to ensure that their behaviour is in line with what we expect from them. To investigate and address these issues a laboratoy for philosophy is outlined: SophoLab. It consists of a methodology; a framework of modal logic, DEAL; and multi-agent software systems. SophoLab provides the basis for an experimental, computational philosophy. Its viability and usefulness are demonstrated through several experiments. (shrink)

Aristotle's views on the fundamental nature of reality are usually taken to be inconsistent. The two main sources for these views are the Categories and the central books of the Metaphysics, particularly book Zeta. In the early theory of the Categories the basic entities of the world are concrete objects such as Socrates: Aristotle calls them 'primary substances'. But the later theory awards this title to the forms of concrete objects. Michael Wedin proposes a compatibilist solution to this long-standing puzzle, (...) arguing that Aristotle is engaged in quite different projects in the two works. The theory of Metaphysics Zeta is meant to explain central features of the standing doctrine of the Categories, and so presupposes the essential truth of the early theory. The Categories offers a theory of underlying ontological configurations, while book Zeta gives form the status of primary substance because it is primarily the form of a concrete object that explains its nature, and this form is the substance of the object. So when the late theory identifies primary substance with form, it appeals to an explanatory primacy that is quite distinct from the ontological primacy that dominates the Categories. Wedin's new interpretation thus allows us to see the two treatises as complementing each other: they are parts of a unified history of substance. (shrink)

In an article which appeared a few years ago, entitled ‘God's Death’ , A.D. Smith launched one of the most interesting of recent attacks on the traditional doctrine of the Incarnation. Focusing on the death of Christ, he claimed to demonstrate the logical impossibility of Jesus having been both human and divine. Each of the premises of his argument was said to be a commitment of orthodox theology. He thus presented his reasoning as displaying an internal incoherence in that way (...) of thinking about divinity, humanity, and the person of Christ. The argument was basically quite simple: According to Christian theology and in concurrence with general thought on the matter, we must hold that human death involves the possibility of annihilation. As a man, Jesus of Nazareth faced and underwent a human death. He thus faced the possibility of annihilation. But orthodox theologians hold God to be of such an ontological status that no divine being could even possibly be annihilated. So no divine person could die a human death. From this follows the impossibility of the traditional claim that the Second Person of the divine Trinity became a man, lived a human life, and died a human death for us and our salvation. The qualitative difference between God and man is such as to render incarnational christology an incoherent theological stance. (shrink)

Aristotle's views on the fundamental nature of reality are usually taken to be inconsistent. The two main sources for these views are the Categories and the central books of the Metaphysics, particularly book Zeta. In the early theory of the Categories the basic entities of the world are concrete objects such as Socrates: Aristotle calls them 'primary substances'. But the later theory awards this title to the forms of concrete objects. Michael Wedin proposes a compatibilist solution to this long-standing puzzle, (...) arguing that Aristotle is engaged in quite different projects in the two works. The theory of Metaphysics Zeta is meant to explain central features of the standing doctrine of the Categories, and so presupposes the essential truth of the early theory. The Categories offers a theory of underlying ontological configurations, while book Zeta gives form the status of primary substance because it is primarily the form of a concrete object that explains its nature, and this form is the substance of the object. So when the late theory identifies primary substance with form, it appeals to an explanatory primacy that is quite distinct from the ontological primacy that dominates the Categories. Wedin's new interpretation thus allows us to see the two treatises as complementing each other: they are parts of a unified history of substance. (shrink)

Bernard Williams thought that philosophy should address real human concerns felt beyond academic philosophy. But what wider concerns are addressed by Ethics and the Limits of Philosophy, a book he introduces as being ‘principally about how things are in moral philosophy’? In this article, we argue that Williams responded to the concerns of his day indirectly, refraining from explicitly claiming wider cultural relevance, but hinting at it in the pair of epigraphs that opens the main text. This was Williams’s solution (...) to what he perceived as the stylistic problem of how to pursue philosophy as cultural critique. Taking the epigraphs as interpretative keys to the wider resonances of the book, we show how they reveal Williams’s philosophical concerns – with the primacy of character over method, the obligation to follow orders, and the possibility of combining truth, truthfulness, and a meaningful life in a disillusioned world – to be recognisably rooted in the cultural concerns of post-war Britain. In the light of its epigraphs, the book emerges as the critique of a philosophical tradition’s inadequacies to the special difficulties of its cultural moment. (shrink)

Simulation constraints cannot help in explaining afterlife beliefs in general because belief in an afterlife is a precondition for running a simulation. Instead, an explanation may be found by examining more deeply our common-sense dualistic conception of the mind or soul.

After learning about the concept of determinism, a natural tendency is to conclude that if anyone actually believed in the determinism of human nature, then all future human actions are "set out for us" or "cut and dried" and, in some sense, utterly unavoidable. Another way of referring to such inevitability is that human action appears to be..

The construct of “choking under pressure” is concerned with the phenomenon of unexpected, sudden, and significant declines in individual athletes’ performances in important situations and has received empirical attention in the field of sport psychology. Although a number of theories about the reasons for the occurrence of choking under pressure exist and several intervention approaches have been developed, underlying mechanisms of choking are still under debate and the effectiveness of existing interventions remains contested. These sudden performance declines also occur in (...) team sport. “Collective sport team collapse,” which describes the situation when an entire sport team underperforms significantly within an important competitive situation, has received less empirical attention, in comparison to individual choking research. While there are a few studies that have investigated causes of collective team collapse, understandably, there has been limited empirical investigation of preventative and intervention strategies. Although the two constructs appear to share several similar characteristics and mechanisms, research has not yet examined the conceptual, theoretical, empirical, and practical links between choking under pressure and collective sport team collapse. In this review article, we seek to examine these similarities and differences and identify new ways of thinking about future interventions. Furthermore, current empirical understandings in the field of choking under pressure and collective sport team collapse are presented and the most effective intervention approaches for both constructs are introduced. On the basis of this examination, we modestly make some initial recommendations for sport psychological practitioners and future research. (shrink)

Of course you know the movie, just by cultural assimilation if not by having seen it. There’s this young elephant, Dumbo, who has laughably big ears and has been pitiably separated from his mom. He’s aided by a friendly talking mouse[ii] into translating those otherwise hapless ears into the power of flight, which he eventually uses to rescue his mom and live happily ever after. The way the wily mouse gets Dumbo to believe that he could fly is to give (...) him a “magic feather” which, held in his trunk, demonstrably imparts the gift of flight. Naturally the mouse believes throughout all this that Dumbo can fly anyway, but he also knows that Dumbo needs the feather as a confidence-builder to do so. At the critical juncture of the tale Dumbo loses the feather after being pushed off a precipice, and he thus plummets perilously towards earth—only to find at the last moment that he can indeed fly on his own. (shrink)

All right, first off I need to disappoint some people who despise reading the fine print on things or just plain love to speed-read only large fonts: this is not only not my last lecture, I m not even retiring anytime soon. So sorry to those of you poised to shout Good riddance to bad rubbish! at the end of this soliloquy. You re going to have to be patient a while longer.

Of course you know the movie, just by cultural assimilation if not by having seen it. There’s this young elephant, Dumbo, who has laughably big ears and has been pitiably separated from his mom. He’s aided by a friendly talking mouse2 into translating those otherwise hapless ears into the power of flight, which he eventually uses to rescue his mom and live happily ever after. The way the wily mouse gets Dumbo to believe that he could fly is to give (...) him a “magic feather” which, held in his trunk, demonstrably imparts the gift of flight. Naturally the mouse believes throughout all this that Dumbo can fly anyway, but he also knows that Dumbo needs the feather as a confidence-builder to do so. At the critical juncture of the tale Dumbo loses the feather after being pushed off a precipice, and he thus plummets perilously towards earth—only to find at the last moment that he can indeed fly on his own. (shrink)

“Men can never be free, because they’re weak, corrupt, worthless and restless. The people believe in authority; they’ve grown tired of waiting for miracle or mystery. Science is their religion; no greater explanation exists for them.” (Cigarette Smoking Man, "Talitha Cumi" The X-Files 3X24).

Harry Frankfurt's famous examples of overdetermined moral agents who are nevertheless responsible for their actions and omissions have long been hailed as proofs that the ability and/or opportunity to do otherwise is not a necessary condition for moral responsibility. In this paper I use recent clarifications of some of these examples by Frankfurt himself to show that their force relies in part on tacit ceteris paribus assumptions concealing a reliance on PAP that concerns matters of fairness in assessing moral responsibility.

Analysis shows that statements of ability are disguised conditionals. More exactly, the correct analysis of 'X could have done A' is 'If X h decided (chosen, willed ...) to do A, X would have done A'. Therefore having acted freely--having been able to act otherwise than one fact did--is compatible with determinism (with the causal determination of one's acts).

Hud Hudson has argued that with a few assumptions one can prove that superluminal objects exist. I argue that even if the assumptions are true that his argument, if sound, leads to a proliferation of movers packing given spaces. I further argue that his argument as it stands cannot in fact entail that objects moving at any speed exist.

The author examines the single topic approach to the construction of introductory philosophy courses. The author considers the single topic approach to be an alternative to more historically- and topically-based approaches. The traditional approach to philosophy is often broad and difficult for students to engage with in classroom discussion. A narrow and detailed treatment of a standard area or topic facilitates classroom discussion and allows students to transfer insights and skills in areas of their own disciplines. The author outlines a (...) methodology that treats philosophical texts in an interdisciplinary context, which emphasizes to students that philosophy is not a detached field of study. (shrink)

In this paper we present an executable approach to model interactions between agents that involve sensitive, privacy-related information. The approach is formal and based on deontic, epistemic and action logic. It is conceptually related to the Belief-Desire-Intention model of Bratman. Our approach uses the concept of sphere as developed by Waltzer to capture the notion that information is provided mostly with restrictions regarding its application. We use software agent technology to create an executable approach. Our agents hold beliefs about the (...) world, have goals and commitment to the goals. They have the capacity to reason about different courses of action, and communicate with one another. The main new ingredient of our approach is the idea to model information itself as an intentional agent whose main goal it is to preserve the integrity of the information and regulate its dissemination. We demonstrate our approach by applying it to an important process in the insurance industry: applying for a life insurance. In this paper we will: (1) describe the challenge organizational complexity poses in moral reasoning about informational relationships; (2) propose an executable approach, using software agents with reasoning capacities grounded in modal logic, in which moral constraints on informational relatio nships can be modeled and investigated; (3) describe the details of our approach, in which information itself is modeled as an intentional agent in its own right; (4) test and validate it by applying it to a concrete ‘hard case’ from the insurance industry; and (5) conclude that our approach upholds and offers potential for both research and practical application. (shrink)