This paper analyses the relationships between corporate community involvement activities, the organizational structures within which they are managed, the firm's industry and evolving stakeholder attitudes and preferences in a sample of 148 U.K. based firms who have demonstrated a clear desire to be socially responsible. The research highlights significant associations between the allocation of responsibility for community involvement within the firm, its industry and the extent of its community involvement activities. Consistent with the view that managerial structures may (...) play a significant role in the implementation of community initiatives, the results identify significant variations in community involvement policies across alternative organizational forms. However, important similarities in corporate community policies across alternative structures are also shown to exist suggesting that corporate community involvement activities may be influenced by the preferences of societal stakeholders. (shrink)

This study examines the determinants of corporate social responsibility (CSR) and its implications on firms’ investment policy, organizational strategy, and performance. First, we find that firms with better performance, higher R&D intensity, better financial health, and firms in new economy industries are more likely to engage in CSR activities, while riskier firms are less likely to do so. We also find U-shaped relation between firm size and CSR, indicating that either very small or very large firms exhibit high (...) levels of CSR strengths and concerns. Next, we find that firms’ CSR strengths relate favorably with their investments, organizational strategy, and performance, whereas CSR concerns and firm attributes are by and large negatively related. Using a 2SLS procedure, we verify that the CSR–performance relation is robust to corrections for endogeneity through reverse causation and/or biases introduced by time varying omitted variables. Finally, we find that the CSR–firm attributes relation is strengthened when the CEO’s incentives are below the sample median, suggesting that CSR participation is especially important when monetary incentives are lower than benchmark levels. (shrink)

We use content analysis to show that the diagnosis of the financial crisis of 2007–2009 shifted significantly from a focus on the need for structural change in the banking industry to an emphasis on culture and reform at the organizational level. We consider four overlapping subsystems in which this shift in problem–solution clusters played out—political, regulatory, legal, and consulting—and show that the “structural reform agenda,” which was initially strong and publicly prominent in the political arena, lost attention. (...) Over time it was displaced by a neoliberal managerialist turn, which watered down or abandoned structural solutions and instead played up a new “culture and conduct reform agenda.” We explain this shift in terms of the marketization of regulation, which—following Mautner (_Language and the market society_, 1st ed. Routledge, 2010)’s model of interdiscursive alignment—we detect in the shifting language of financial-services reform across the four subsystems in scope. We argue that a neoliberal turn took place with a _discursive closure_ that made the structural reform alternative gradually unsayable and, in the end, unthinkable. At the same time, the discourse turned to embrace the neoliberal agenda, built on the myth of self-regulating actors and markets, manifest in the culture problematic. This managerialist turn was able to mobilise, and be operationalised by, an industry of consultants, whereas structural change came to be seen by regulators as too risky to implement. We claim that these dynamics reveal how a form of “collective strategic ignorance,” based on powerful institutional myths, was systematically oriented to ignore and reject structural sources of crisis. Finally, we suggest that the observed pattern of displacement—whereby initial calls for structural change become later displaced by managerial and procedural solutions—is common to other social issues, such as audit reform and corporate social responsibility. (shrink)

One of the central issues in comparative law and political economy is whether the forces of globalization will result in the convergence of public policies across countries. Noting in particular that taxes collected still cover a considerable range across industrialized countries — from a low of 20% of GDP to a high of 50% — some have argued that globalization has not resulted in a loss of tax sovereignty. However, following a review of the evidence, in this Article we conclude (...) that globalization has had significant but subtle effects on tax levels and structures. Moreover, these pressures will make it increasingly difficult for countries to raise revenue to finance new public needs and to structure their tax systems in order to achieve a more socially acceptable distribution of income than what market forces dictate. Tax levels in most countries have remained essentially flat over the past twenty years, but there is a host of reasons for thinking they would have continued to rise were it not for the pressures of globalization. Statutory corporate tax rates have declined dramatically and, although corporate tax revenues have remained robust, this has been due to factors unrelated to deliberate tax policy choices. Personal marginal tax rates have also declined sharply and tax revenues have been increasingly raised by regressive consumption taxes. These trends stem from tax competition brought on by the forces of globalization, not from changing ideas or other political variables. In this Article we conclude that in order to prevent tax competition from completely eroding the ability of countries to fashion their own tax systems, there will have to be considerable cooperation among the major countries and some harmonization of aspects of their tax systems, particularly as they apply to footloose factors of production. (shrink)

While recent studies have increasingly suggested leadership as a major precursor to corporate social responsibility, empirical studies that examine the impact of various leader aspects such as style and ethics on CSR and unravel the mechanism through which leadership exerts its influence on CSR are scant. Ironically, paucity of research on this theme is more prevalent in the sphere of social enterprises where it is of utmost importance. With the aim of addressing these gaps, this research empirically examines the (...) interaction between ethical leadership and CSR and, in addition, investigates organic organizational cultures as mediators in the above interaction. To this end, a model was developed and tested on the sample of 350 middle- and top-level managers associated with 28 Indian healthcare social enterprises, using Structural Equation Modeling Analysis, Bootstrapping and PROCESS. Results reveal that ethical leadership both directly and indirectly influences CSR practices. The indirect influence of ethical leadership involves nurturing clan and adhocracy cultures, which in turn influence CSR. These findings are significant for social enterprise leaders seeking to encourage their organizations’ socially responsible behavior. (shrink)

This paper investigates the effect of enacted ethical and instrumental values on corporate governance effectiveness. It further considers whether and how compliance with formal corporate governance codes influences the effect of these organizational values on governance effectiveness. Empirical evidence based on a sample of firms listed in the Athens Stock Exchange shows that strong ethical values are the key element for effective corporate governance, while instrumental values play a significant role only in the presence of compliance. (...) Compliance, although not sufficient by itself, serves as a complementary mechanism strengthening the effects of ethical values and creating the conditions by which instrumental values can act in favor of corporate governance. The results highlight that governance benefits can emanate from maintaining high ethical standards as well as from synergies between compliance and a focus on organizational values. Overall, our findings provide important implications for managers regarding how to utilize behavioral along with structural governance mechanisms to enhance corporate governance. The findings add to the behavioral perspective of corporate governance bringing aspects of the social fabric into the corporate governance puzzle. (shrink)

Management scholars have paid close attention to the construct of organizational or corporate reputation, particularly in the applied business ethics and corporate social responsibility fields. Extant research demonstrates that CR is one of the key mediators between CSR and important organizational outcomes, which ultimately improve organizational performance. Yet, hitherto the research focused on CR construct has been plagued by multiple definitions, conflicting conceptualizations, and unclear operationalizations. The purpose of this article is to provide theoretical ground (...) for positioning of CR as an assessment construct that is modeled as a second-order factor affecting individual first-order dimensions, and to provide methodological and empirical support toward such conceptualization. We assert that intangible, socially complex, and causally ambiguous CR can be accurately estimated through its individual measurable dimensions. Using survey data from Peru, we empirically test the hypothesized second-order reflective model within a hierarchy of nested and non-nested models, and compare its model fit and predictive power with alternative conceptualizations. Modeling CR as a second-order reflective construct relies on a set of theoretical propositions and yields several methodological advantages, including strong conceptual interpretability and parsimony when tested within a nomological context. We explicitly demonstrate positive organizational outcomes of CR: customer trust, corporate identification, in-role behavior, and extra-role behavior. Then, we demonstrate that the shorter scales of CR can be used as a good proxy for the full construct measure. The paper concludes by highlighting theoretical insights, and methodological and managerial implications of the findings. (shrink)

AbstractIn the wake of organizational scandals associated with corporate America servant as well as transformational leadership are seen as approaches capable of engendering a type of morality—on the part of leaders and followers—based on shared values, universal moral principles and an orientation towards a pro-social behavior serving the common good. However, recent critiques have highlighted the tendency in the relevant literature to overlook the systemic context within which leadership and followership are situated. Given this oversight this paper re-visits (...) a classic piece of ethnography on corporate America: Robert Jackal’s Moral Mazes. Employing concepts from critical realism fused with insights from studies on management and bureaucracy we analyse the key themes from the book pertaining to the nature of the leader–follower dynamic in shareholder capitalism. The analysis highlights the role of bureaucracy and corporate ideology as key elements shaping leader–follower relationships, encouraging a type of morality associated with guarding self-interest whilst undermining relationality. The influence of the structural and cultural context in which leader–follower relations unfold draws attention to morality as relationally contingent as opposed to an ideal state. (shrink)

Many studies have explored the antecedents of corporate social performance, such as institutional forces and stakeholder pressures. However, few studies examine CSP from a socio-cognitive perspective. To address this research void, this study adopts an attention-based approach to examine the relationship between managers' attention to social issues and CSP. More important, this study reports that this relationship will be moderated by governance mechanisms that constrain managerial discretion. Using a sample of Chinese listed firms, this study provides empirical support for (...) these arguments. Therefore, our study adds new insights to the literature addressing CSP from a socio-cognitive perspective and speaks to the structural features, both inside and outside organizations, that guide managers' attention. (shrink)

Corporate anti-corruption initiatives can make a substantial contribution towards curtailing corruption and advancing efforts to achieve the United Nations’ Sustainable Development Goals. However, researchers have observed that underdeveloped assumptions with respect to the conceptualization of corruption and how firms respond to corruption risk impeding the efficacy of anti-corruption programs. We investigate the relationship between the perceived level of corruption in foreign host countries and the organizational structure of subsidiary operations established by multinational corporations. Foreign host market corruption (...) is disaggregated into two components—private and public corruption. We employ an uncertainty-based perspective grounded in transaction cost theory to focus upon the distinct mechanisms through which private and public corruption can each be expected to impact a foreign subsidiary’s organizational structure [wholly-owned subsidiary or a joint venture with a local partner]. We expect that each type of corruption fosters a different type of uncertainty which predominates in shaping the MNC’s choice of foreign subsidiary investment structure. Hypotheses are developed and tested with a sample of 187 entries into 19 foreign host markets. Each type of corruption was found to exert a distinct effect upon the organizational structure of foreign subsidiaries. More precisely, while heightened perceived levels of public corruption were found to motivate MNCs to invest through a JV with a local partner rather than a WOS, more pronounced private corruption precipitated the opposite outcome. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Organizational Ethics and Health Care: Expanding Bioethics to the Institutional Arena **Laura Jane Bishop (bio), M. Nichelle Cherry (bio), and Martina Darragh* (bio)In 1995, the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) expanded its patient rights standards to include requirements for assuring that hospital business practices would be ethical. Renamed “Patient Rights and Organization Ethics,” these standards are based on the realization that a hospital’s obligation to (...) its patients is derived from two relationships: the patient-provider relationship governed by “clinical ethics,” and the customer-supplier relationship governed by “business ethics.” “[This] boundary between ‘clinical’ ethics and ‘business’ ethics is not clear and in many cases is nonexistent. While marketing and admission practices are seen as issues related to ‘business’ ethics, they can lead to unneeded admissions or demand for unneeded services, both of which can unnecessarily expose the patient to the risk of side effects or complications. Likewise, underutilization of needed services is likely to lead to less than optimal health outcomes” (I. Schyve 1996, p. 17). “These new standards arose out of well-publicized concerns about abuses in which patients were admitted to hospitals unnecessarily and were discharged or transferred only after their insurance expired” (I. Schyve 1996, pp. 15–16).These abuses also sparked eloquent protests against threats to patient well-being and to the nature of the patient-provider relationship in the bioethics literature. The fiduciary responsibility of the provider to inform and to protect the patient was fragmented by insurer business practices such as gag clauses and economic credentialing of providers (VII. Scope Note 31, 1996). The background role that the institution plays, though poorly articulated historically, has been brought sharply into focus by the explosive growth of the managed practice of medicine. The context of medical ethics is no longer limited to the resolution of individual cases, but instead encompasses the adoption of institutional structures to protect and promote patient welfare (IV. Emanuel 1995, p. 335). In this new configuration, the institution and the providers are co-fiduciaries for populations [End Page 189] of patients, and the medicine that is practiced is “appropriately economically disciplined.” The expression “My patient always comes first” is no longer “... intellectually serious or morally responsible.” But, “... to be sure, both conceptually and in practice, being an economically disciplined fiduciary professional or institution is ethically unstable.... The task is to identify the boundaries outside of which institutional policy and behavior will not count as an ethically defensible form of being... [a] fiduciary.” (IV. McCullough 1997, pp. 143–44). This process of delimiting and enforcing boundaries requires the development of “... a language for talking about the ethical values of the organization. If such a language does not exist, discussions about ethics become cumbersome and unlikely to occur” (IV. Cleveland Clinic Foundation 1998, p. 2).As with bioethics generally, the literature addressing organizational ethics is multidisciplinary. JCAHO’s compliance guide for its revised standards, Ethical Issues and Patient Rights, draws on a wealth of ideas from both clinical ethics and business ethics. This is often an awkward alliance. “Because the study of organizational ethics is in its infancy compared to other areas of healthcare ethics, discussions about it often seem like hot air with no palpable payoff” (I. Boyle 1998, p. 2). The fact that “... there is an ancient history that reflects widespread doubt about the moral probity of business” (II. Frederick 1995, p. 209) does not help. To begin, “Aristotle had rude things to say about business” (II. Jackson 1998, p. 401). A brief review of introductions to several of the business ethics textbooks cited in this bibliography reveals that a rebuttal of “business ethics as an oxymoron” is the standard opening paragraph. This stigma is unfounded, and “increased stability” has characterized the state of business ethics literature during the 1990s (II. Beauchamp and Bowie 1997, p. ix). Significant attention has been given to elaborating two often overlapping theories—stakeholder and social contractarian.Originating in the 1960s as a pun on “stockholder,” proponents of stakeholder theory claim that a corporation’s fiduciary responsibility extends beyond increasing its profitability to protecting the rights of individuals or groups affected by its actions. Popular as a strategic planning tool in the... (shrink)

Recent scandals allegedly linked to CEO compensation have brought executive compensation and perquisites to the forefront of debate about constraining executive compensation and reforming the associated corporate governance structure. We briefly describe the structure of executive compensation, and the agency theory framework that has commonly been used to conceptualize executives acting on behalf of shareholders. We detail some criticisms of executive compensation and associated ethical issues, and then discuss what previous research suggests are likely intended and unintended (...) consequences of some widely proposed executive compensation reforms. We explicitly discuss the following recommendations for reform: require greater independence of compensation committees, require executives to hold equity in the corporation, require greater disclosure of executive compensation, increase institutional investor involvement in corporate governance (including executive compensation), and require firms to expense stock options on their income statements. We provide a brief summary discussion of ethical issues related to executive compensation, and describe possible future research. (shrink)

In this paper I examine how the constituent elements of a firm's organizational structure affect the ethical behavior of workers. The formal features of organizations I examine are the compensation practices, performance and evaluation systems, and decision-making assignments. I argue that the formal organizational structure, which is distinguished from corporate culture, is necessary, though not sufficient, in solving ethical problems within firms. At best the formal structure should not undermine the ethical actions of workers. (...) When combined with a strong culture, however, the organizational structure may be sufficient in promoting ethical conduct. While helpful, ethics training and corporate codes are neither necessary nor sufficient in promoting ethical behavior within firms. (shrink)

Debt-ridden corporate growth and increased vulnerability was one of the causes of the 1997 financial crisis in Korea. Introduction of the outside director system has been the core part of the board reforms following the crisis. Our estimation using instruments obtained from a natural experiment illustrates that outside monitoring has improved capital structure of firms even when we control for the leverage regulation effect, enhanced compliance with leverage regulation and thus reduced business risks, and reduced excessive growth and (...) excessive investment more consistently for the top 10 largest chaebols than non-chaebol firms and smaller sized chaebol affiliates. Our results shed some light on why existing studies report the positive effect of outsiders on firm value and add value to existing agency theory by illustrating that the effect of improved governance on capital structure could be non-linear. (shrink)

This paper argues that corporate governance reformers in Anglo-American jurisdictions should consider a different approach in their quest for better corporate governance. Traditionally, corporate governance reform has taken a structural approach, tightening the rules around the number of independent directors required on boards and committees and fine-tuning the definition of independence. However, such an approach has failed to achieve effective corporate governance. Moreover, this approach is informed by the arguably discredited assumption that individuals are rational (...) self-interest utility maximizers. This conceptual paper questions why corporate governance scholars and regulators remain uncritical of this assumption and suggests an approach to reform inspired by a different view of human nature. Indeed, incorporating an actor-based approach to reform into existing structures may better achieve effective corporate governance while addressing an unjustified adherence to this flawed assumption. (shrink)

The corporate citizenship (CC) concept introduced by Dirk Matten and Andrew Crane has been well received. To this date, however, empirical studies based on this concept are lacking. In this article, we flesh out and operationalize the CC concept and develop an assessment tool for CC. Our tool focuses on the organizational level and assesses the embeddedness of CC in organizational structures and procedures. To illustrate the applicability of the tool, we assess five Swiss companies (ABB, Credit (...) Suisse, Nestlé, Novartis, and UBS). These five companies are participants of the UN Global Compact (UNGC), currently the largest collaborative strategic policy initiative for business in the world (www.unglobalcompact.org). This study makes four main contributions: (1) it enriches and operationalizes Matten and Crane’s CC definition to build a concept of CC that can be operationalized, (2) it develops an analytical tool to assess the organizational embeddedness of CC, (3) it generates empirical insights into how five multinational corporations have approached CC, and (4) it presents assessment results that provide indications how global governance initiatives like the UNGC can support the implementation of CC. (shrink)

This teaching case is based on the multinational group IKEA, which designs and sells ready-to-assemble furniture. The case is a useful classroom exercise to identify the link between business decisions and their tax implications. The case questions challenge students to consider the differences in tax planning, tax avoidance, tax mitigation and tax evasion. The facts provide a timely and relevant setting to discuss global dimensions of taxation and corporate social responsibility from an ethical perspective.

The political shift toward an economic liberalism in many developed market economies, emphasizing the importance of the marketplace rather than government intervention in the economy and society (Dorman, Systematic Occupational Health and Safety Management: Perspectives on an International Development, 2000; Tombs, Policy and Practice in Health and Safety 3(1): 24-25, 2005; Walters, Policy and Practice in Health and Safety 03(2):3-19, 2005), featured a prominent discourse centered on the need for business flexibility and competitiveness in a global economy (Dorman, 2000; Tombs, (...) 2005). Alongside these developments was an increasing pressure for corporate social responsibility (CSR). The business case for CSR - that corporations would benefit from voluntarily being socially responsible — was increasingly promoted by governments and corporations as part of the justification for self-regulation. The aim of the article is to examine more closely the proposition that self-regulation is effective, with particular reference to the business case for workplace equality and safety. Based on a comprehensive literature review and documentary analysis, it was found that current predominant management discourse and practice focusing on diversity and safety management systems (OHSMS) resonate well with a government and corporate preference for the business case and self-regulation. However, the centrality of individual rather than organizational factors in diversity and OHSMS means that systemic discrimination and inherent workplace hazards are downplayed, making it less likely that employers will initiate structural remedies needed for real change. Thus, reliance on the business case in the argument for self-regulation is problematic. In terms of government policy and management practice, the business case needs to be supplemented by strong, proactive legislation, and worker involvement. (shrink)

The aim of the study was to identify the organizational structure and its relation to the prevailing pattern of communication in the Palestinian universities. The researchers used the analytical descriptive method through a questionnaire randomly distributed among Palestinian university workers in the Gaza Strip. The study was conducted on a sample of (274) administrative staff from the three universities, and the response rate was (81.87%). The study found that there is a high satisfaction with the nature of the (...) organizational structure in the Palestinian universities from the point of view of the administrative staff, which reached 68.05%. And that there is a high level of communication pattern prevailing from the point of view of administrative staff, where the percentage (71.32%), there is a direct correlation between the nature of the organizational structure and the prevailing pattern of communication, the absence of differences between the sample according to the gender variable in their perception of the nature of the organizational structure and the prevailing pattern of communication, the absence of differences in the perception of employees of the nature of the organizational structure and the pattern of communication prevailing according to the variable age. There are differences of statistical significance in the perception of the nature of the organizational structure and the pattern of communication depending on the variable of scientific qualification in the organizational structure, and the pattern of communication. Differences were in favor of diploma holders compared to other practical qualifications. There is an absence of differences in the perception of employees of the nature of the organizational structure and the pattern of communication depending on the variable years of service. There is absence of differences in the perception of employees of the nature of the organizational structure and the pattern of communication depending on the variable level of career (Director, Head of Department, and Administrative Officer). There is absence of differences in the perception of employees of the nature of the organizational structure and the pattern of communication depending on the variable of the workplace. And the existence of differences in the perception of the employees of the nature of the organizational structure and pattern of communication depending on the university in which they work. And that there are statistically significant differences between the Islamic University and Al-Azhar University, the nature of the organizational structure and the pattern of communication in favor of the Islamic University. And that there are statistically significant differences between Al-Azhar University and Al-Aqsa University in the prevailing pattern of communication in favor of Al-Azhar University. The study reached a number of recommendations, the most important of which is that the departments of the Palestinian universities in the Gaza Strip in general, Al-Aqsa University and Al-Azhar Universities should be given greater attention to the prevailing organizational structure and the staff, the need to improve the pattern of communication prevalent in universities. Solving workers' problems and giving them the opportunity to contribute to solving their own problems. Strengthening the democratic leadership style and empowering university staff. (shrink)

Although there is much research on the relationships of corporate social responsibility and employee-related outcomes, a systematic and quantitative integration of research findings is needed to substantiate and broaden our knowledge. A meta-analysis allows the comparison of the relations of different types of CSR on several different outcomes, for example to learn what type of CSR is most important to employees. From a theoretical perspective, social identity theory is the most prominent theoretical approach in CSR research, so we aim (...) to investigate identification as a mediator of the relationship between CSR and employee-related outcomes in a meta-analytical mediation model. This meta-analysis synthesizes research findings on the relationship between employees' perception of CSR (people, planet, and profit) and employee-related outcomes (identification, engagement, organizational attractiveness, turnover (intentions), OCB, commitment, and job satisfaction), thereby distinguishing attitudes and behavior. A total of 143 studies (N= 89,396) were included in the meta-analysis which was conducted according to the methods by Schmidt and Hunter (except of the meta-analytical structural equation model). Mean effect sizes for the relationship between CSR and employee-related attitudes and behaviors were medium-sized to large. For attitudes, the relationships were stronger than for behavior. For specific types of CSR, average effect sizes were large. Identification mediated the relation between CSR and commitment, job satisfaction, and OCB, respectively. Based on our results, we give recommendations concerning the design of CSR initiatives in a way that benefits employees. (shrink)

Abstract:In this paper we highlight the emergence of organizational ethics issues in health care as an important outcome of the changing structure of health care delivery. We emphasize three core themes related to business ethics and health care ethics: integrity, responsibility, and choice. These themes are brought together in a discussion of the process of Mission Discernment as it has been developed and implemented within an integrated health care system. Through this discussion we highlight how processes of institutional (...) reflection, such as Mission Discernment, can help health care organizations, as well as corporations, make critical choices in turbulent environments that further the core mission and values and fulfill institutional responsibilities to a broad range of stakeholders. (shrink)

There has been a strong tendency in recent years, in countries such as Australia and the United States, for governmental and corporate spokespersons to present advice and information that comes from independent scientific sources as if it were no better grounded than that from any other source. Such a leveling out of all advice and information into mere “opinion” has been a key strategy in the assertion of corporate and governmental control over public debate and policy. In this (...) paper, we aim to explore some of the factors that diminish the credibility and reliability of information within organizational structures, effectively undermining the value of that information; we argue for the importance of processes like those of peer review in maintaining the credibility and reliability of information that is so important to effective action and decision; and we also provide an analysis of the rationale that underpins such processes. One of our conclusions will be that processes like those of peer review succeed largely because of the way in which they depend upon, but also support, the dispersal of information and authority within an organizational structure so as to ensure both that information is accessible within the structure and also remains open to challenge and scrutiny. (shrink)

Research on corporate philanthropy typically focuses on organization-external pressures and aggregated donation behavior. Hence, our understanding of the organization-internal structures that determine whether a given organization will respond philanthropically to a specific human need remains underdeveloped. We explicate an attention-based framework in which specific dimensions of organization-level attention focus interact to predict philanthropic responses to an emergent human need. Exploring the response of Fortune Global 500 firms to the 2004 South Asian tsunami, we find that management attention focused on (...) people inside the organization interacts with both attention for places and attention for practices to predict the likelihood of charitable donations. Our research thus extends beyond the prevailing institutional perspective by highlighting the role of attention focus in corporate responsiveness to emergent societal issues. (shrink)

We use institutional-related theories and a unique natural experiment that enables an exogenous test of the influence of controlling shareholders on managerial accountability to corporate fraud. In China, prior to the Split Share Structure Reform, state shareholders held restricted shares that could not be traded. This restriction mitigated state-owned enterprise controlling shareholders’ incentives to monitor managers. The data examined show the SSSR strengthens incentives of state-owned enterprise controlling shareholders to replace fraudulent management. Our findings support the view (...) that economic incentives are important to promote corporate governance and deter fraud. (shrink)

This study investigated the factorial validity of the 58-item Corporate Ethical Virtues scale :923–947, 2008). The major aim was to test the invariance of the factor structure across different organizational samples. The CEV scale was designed to measure eight corporate virtues: clarity, congruency of supervisors, congruency of senior management, feasibility, supportability, transparency, discussability, and sanctionability. The data consisted of four organizational samples that are operated in the private and public sector. The results of confirmatory factor (...) analyses supported the hypothesized eight-factor structure, as well as its alternative second-order factor structure, where high correlations between the first-order factors were explained by a general CEV factor. These factor structures remained the same across samples, lending strong support for the group invariance assumption of the scale. Thus, the 58-item CEV scale was found to be a valid tool for measuring the aspect of ethical organizational culture in different organizations, and its use can be recommended for future research. (shrink)

This paper examines the antecedents of organizational commitment for adopting corporate environmental responsibility and green practices in the case of the logistics industry in South Korea. Seven hundred and eighty employees and top management from logistics companies were sampled. The data were analyzed using factor analysis, structural equation modeling techniques, and one-way analysis of variance. The results showed that social expectations, organizational support, and stakeholder pressure were the important antecedents for the adoption of corporate environmental responsibility (...) and green practices. In the path analysis, social expectations had the greatest impact on both stakeholder pressure and green practice adoption. Moreover, we found that the higher the job titles were, the more willing they were to adopt green practices. This indicated that the current top management of Korean logistics companies is well aware of being mandated to make a commitment to corporate environmental responsibility and green practices. (shrink)

Aim of the present paper is to provide a formal characterization of various different notions of responsibility within groups of agents (Who did that? Who gets the blame? Who is accountable for that? etc.). To pursue this aim, the papers proposes an organic analysis of organized collective agency by tackling the issues of organizational structure, role enactment, organizational activities, task-division and task-allocation. The result consists in a semantic framework based on dynamic logic in which all these concepts (...) can be represented and in which various notions of responsibility find a formalization. The background motivation of the work consists in those responsibility-related issues which are of particular interest for the theory and development of multi-agent systems. (shrink)

This paper presents a succinct review of the movement for moral genesis in business that arose in the 1970s. The moral genesis movement is characterized by: the rejection of the premise that business and ethics are antagonistic; the rise of the Issues Management approach, which stresses the social responsibility of the corporation: disdain of government regulation as a means of business moralization, and a search for control measures aimed at improving organization moral behavior. This movement now begins to give rise (...) to a new organizational model, the Self-Moralizing Corporation, which transcends existing paradigms of corporate rectitude. The tenets of the Self-Moralizing Corporation are that: the moral behavior of members is a requisite to the attainment of organization goals; individual moral behavior is an asset which must be managed and developed by the corporation; individual moral development is a collectively and individually shared responsibility; and, the maintenance of moral values is more important than the preservation of organization structure. (shrink)

At present, the Chinese government is trying to resolve various social contradictions, such as people’s ever-growing need for a better life and unbalanced and inadequate development. To do so, urban governance practices including holistic governance, decentralized and interconnected governance, multiple participatory governance, and smart governance have been developed in China. Urban smart governance supported by mobile Internet, the Internet of Things, quantum computing, big data, artificial intelligence, and other information technologies has also entered the field of vision of academics and (...) administrators. However, the research and practice on the integration of organizational structure and smart governance technology for urban governance in China are still insufficient. Hence, this paper proposes the design of the organizational structure of an urban smart governance platform and presents the “1 + N” integrated smart information platform and the “power-sharing linkage, one-center and dual-track” platform construction command system. In this system, the functional module of the information platform for smart urban governance is elaborated. This paper contributes to promoting the modernization of China’s urban governance capacity, which can enhance social equity and social order, promote social democracy and rule of law, and enhance the efficiency of urban governance. (shrink)

Abstract:In this paper we highlight the emergence of organizational ethics issues in health care as an important outcome of the changing structure of health care delivery. We emphasize three core themes related to business ethics and health care ethics: integrity, responsibility, and choice. These themes are brought together in a discussion of the process of Mission Discernment as it has been developed and implemented within an integrated health care system. Through this discussion we highlight how processes of institutional (...) reflection, such as Mission Discernment, can help health care organizations, as well as corporations, make critical choices in turbulent environments that further the core mission and values and fulfill institutional responsibilities to a broad range of stakeholders. (shrink)

The article examines the peculiarities of corporate culture formation and development in the modern stage of societal development, which is characterized by high levels of dynamism and conflict. It has been said that culture is something created by Man just as Man is the creation of culture, because culture influences behavior in a person from the beginning of their socialization through the assimilation of norms, values, models of behavior, etc. A person implements all of these in various types of (...) relationships which, in turn, develop structures, organizations, and all individuals, in particular. Corporate culture becomes the basis for the development of organizations at various levels through the application of management theory, especially when considering the current state of international, intercultural relations caused by globalization and migration processes. Corporate culture plays a particularly important role in ensuring the progressive development of science and education, and in preserving the intellectual potential of the state in conditions of social contradiction and military conflict. The development of corporate culture is based on such principles as tolerance, equality and partnership, which are embodied in the relations of any organization, corporation, etc. It has been shown that culture always involves some kind of change, and through such change, corporate culture can act as the criterion that will ensure a group’s integrity under the pressure of external challenges and act as the measure of the internal stability of any team that has determined its goals, tasks and the purpose of its development and the effective implementation of its values and beliefs. (shrink)

Organizations and their leaders are challenged to assume a responsible behavior given the increase of corporate scandals and the deterioration of employee commitment. However, relatively few studies have investigated the impact of responsible leadership on employee commitment and the effect of corporate social responsibility in this relationship. Using the social identity theory this article examined the mediating effect of CSR practices in the relationship between RL and affective organizational commitment. Data collection was done through a paper survey (...) completed by 309 full-time Colombian employees. Structural equation modeling was used to analyze the data. The results showed that CSR fully mediated the influence of RL on AOC. Thus, RL is an effective mechanism to develop CSR practices that in turn increase the levels of AOC of employees. (shrink)

Unlike previous studies that examine the direct effect of employees’ perceived corporate social responsibility (CSR) on affective organizational commitment (AOC), this article examines a mediated link through organizational trust and organizational identification. Social exchange and social identity theory provide the foundation for predictions that the primary outcomes of CSR initiatives are organizational trust and organizational identification, which in turn affect AOC. The test of the research model relies on data collected from 378 employees of (...) local and multinational companies in South Asia, as well as structural equation modeling to test the postulated relationships. Both organizational trust and organizational identification fully mediate the CSR–AOC link. However, the identification mechanism is significantly stronger than the trust mechanism in terms of building AOC from CSR. Out of four CSR components, CSR toward employees is the strongest predictor of employees’ trust, identification, and AOC, followed by CSR toward community, whereas CSR toward the environment has no effect. Finally, CSR toward community and employees are more associated with social exchange, whereas CSR toward consumers relates more to the social identity process. (shrink)

This article aims to investigate the impact of employee perceptions of corporate social responsibility on job embeddedness under the drastic circumstances of coronavirus disease 2019. This study also investigated the role of organizational identification as a psychological mechanism linking employee perceptions of corporate social responsibility to job embeddedness. Survey data were collected from 325 employees in banking industry of China and analyzed using partial least squares structural equation modeling. Results revealed that CSR to employees and organizational (...) identification were positively and significantly related to job embeddedness, while CSR to customers, CSR to government, and CSR to society did not significantly predict job embeddedness. Organizational identification fully mediated the relationship between CSR to customers, CSR to government, CSR to society and job embeddedness, and partially mediated the relationship between CSR to employees and job embeddedness. The results suggest engaging in CSR activities can lead employees to identify themselves with the organization and enhance their embeddedness. The article concludes with several implications for practice and recommendations for future research. (shrink)

Abstract:This paper contends that rationality is more properly evaluated as a property of an organization’s relationships with its stakeholders than of the organization itself. We predicate our approach on the observation that stakeholders can hold goals quite distinct from those of owners and top managers, and these too can be rationally pursued. We build upon stakeholder theory and Weber’s classic distinction betweenwertrationalitatandzweckrationalitat, adding to them the “new institutionalist” concept of the organization field (1983, 1991). Stakeholders employ a variety of direct (...) and indirect mechanisms to rationalize relations with the firm. We discuss four: internal subunits, legislated stakeholder participation, legislated access to information, and direct stakeholder activism. These developments are blurring the distinction between the environment and the organization by importing the values and goals of external stakeholders into the internal organization. They are also precipitating a more structured set of relationships among the actors who comprise the field. To the extent that thezweckrationalitatvalues of managers and owners as well as thewertrationalitatconcerns of stakeholders are met, the firm is more rational. (shrink)

Abstract:This paper contends that rationality is more properly evaluated as a property of an organization’s relationships with its stakeholders than of the organization itself. We predicate our approach on the observation that stakeholders can hold goals quite distinct from those of owners and top managers, and these too can be rationally pursued. We build upon stakeholder theory and Weber’s classic distinction betweenwertrationalitatandzweckrationalitat, adding to them the “new institutionalist” concept of the organization field (1983, 1991). Stakeholders employ a variety of direct (...) and indirect mechanisms to rationalize relations with the firm. We discuss four: internal subunits, legislated stakeholder participation, legislated access to information, and direct stakeholder activism. These developments are blurring the distinction between the environment and the organization by importing the values and goals of external stakeholders into the internal organization. They are also precipitating a more structured set of relationships among the actors who comprise the field. To the extent that thezweckrationalitatvalues of managers and owners as well as thewertrationalitatconcerns of stakeholders are met, the firm is more rational. (shrink)

A key issue in the business ethics field is the design of effective measures for assessing the ethical culture of organizations. The Corporate Ethical Virtues Model (CEV), developed by Kaptein in 2008, is an instrument for measuring ethical culture, and has been applied, adapted and validated in different contexts. In 2013, DeBode, Armenakis, Field and Walker developed the CEV–S, a shortened version of the original scale. Both the CEV and CEV–S assess eight dimensions based on corporate ethical virtues: (...) clarity, congruency of supervisors, congruency of senior management, feasibility, supportability, transparency, discussability and sanctionability. The objective of this study is to present a Spanish version of the CEV–S and its validation process. The scale was applied to two samples of 114 and 193 Colombian employees from two companies operating in the services sector. The confirmatory factor analyses revealed a good fit for the eight-factor structure of the Spanish CEV–S and the statistical tests applied showed good levels of reliability and validity for this scale. The adequate psychometric properties shown by the Spanish CEV–S may support its use in future research to measure organizational ethical culture in Spanish-speaking settings. (shrink)

Various organizational factors reported in the hitherto literature affect individual behaviour within a company. In this paper, we conduct a literature review thereof, and propose a notion of the “Organizational Moral Structure” defined as a comprehensive framework of interrelated organizational factors that condition, incite or influence good or bad moral behaviour of individuals within the organization. Drawing from a wide bibliographical review and our own reflection on recent business scandals, we identify seven constituents of the “ (...) class='Hi'>Organizational Moral Structure”: 1) leader’s values and character, 2) vision and exercise of power, 3) corporate control systems, 4) internal network of influence, 5) organizational culture, 6) internal and competitive pressures, and 7) external influences. The “Organizational Moral Structure” is proposed as a reflective framework for humanistic management and as an invitation to further research in this field. We provide recommendations on how a manager oriented towards humanistic management can use the OMS to secure and promote well-being and dignity of company’s employees. (shrink)

Research on corporate sustainability has started to acknowledge the role of temporality in creating more sustainable organizations. Yet, these advances tend to treat firms as monolithic and we have little understanding of how different temporal patterns throughout an organization shape perceptions of and actions toward sustainability. Building on studies highlighting how the temporal structures of work shape employee engagement with different organizational processes and issues, we seek to answer: How does the temporality of work practices structure perceptions (...) of corporate sustainability throughout the firm? Using data from an ethnography of a small European sustainable bank, we provide an account of the variety of ways in which employees in different departments perceive the bank and how they engage with sustainability. We then go on to show how the temporal structures of work practices within different departments help explain some divergence in perceptions of sustainability. Our study highlights the variegation of temporal structures in organizational processes of meaning-making and its role for a better understanding of the efforts to make corporations more sustainable. (shrink)

This conceptual article draws on structuration theory and social identity theory to isolate firm-internal institutionalization processes as antecedents and drivers of corporate political strategizing. Path dependencies in corporate routines and actors' knowledgeability about these path dependencies are singled out as primary factors structuring strategic decision making within the firm. The concepts of path dependency and knowledgeability, respectively, refer to the institutional and cognitive dimension of corporate political strategizing. These two dimensions come together in actors' identities. Identities on (...) their turn shape managers' recognition of policy issues and the interpretation of issue salience relative to corporate interests. Thus, the article argues that institutional features of competitive environments precipitate in processes of identity building and preference formation and are reproduced through organizational routines and practices within the firm. (shrink)

The main purpose of this study is to introduce, analyze and propose the concept of Piety in Rousseau as a part of the ethical fundament of Positive Leadership Theory, also as a continuum of the original fundamental element of the Social Pact and its implication on the legitimization of organizational dynamics in the private sector (corporate ethics) and the impact on institutional efficiency. Given the theoretical nature of this research, the classic dialectic method has shown itself adequate once (...) in it there is a search for identification of an object (theory), its contradictions, and conflicts involved in the analyses of the problem. For that purpose, a vast bibliographical, documental e internet site research was conducted examining many of the main works about the themes studied. After presenting and dialectically analyzing the foundation of the Rousseaunian Social Pact, in convergence with the responsibility principle structure, this paper concludes by suggesting that these theoretical models can constitute the ethical basis of the management proposition of Positive Leadership as organization dynamics. (shrink)

The rash of high-profile accounting frauds involving internal corporate accountants calls into question the individual accountant’s perceptions of the ethical climate within their organization and the limits to which these professionals will tolerate unethical behavior and/or accept it as the norm. This study uses social cognitive theory to examine the antecedents of individual corporate accountant’s perceived personal fit with their organization’s ethical climate and empirically tests how these factors impact organizational attitudes. A survey was completed by 203 (...) corporate accountants to assess their perception of relevant variables. The results of the structural equation model indicate three significant antecedents relating to ethical climate fit: higher internal levels of locus of control; greater numbers of prior job changes; and higher perceptions of an increasingly better fit with the firm’s ethical climate. Our results also indicate that higher levels of perceived fit to the ethical climate of a firm are associated with higher levels of perceived job satisfaction and organizational commitment. We also theorize that perceptions of an organization’s ethical climate may be reflections of client narcissism and serve a potential indicator of fraud risk. This is an important topic of study, since current auditing standards call for auditors to examine organizational attitudes toward fraud, but offer minimal guidance in doing so. (shrink)

The globally generated concepts of environment and sustainability are fast gaining currency in international business discourse. Sustainability concerns are concurrently becoming significant to business planning around corporate social responsibility and integral to organizational strategies toward enhancing shareholder value. The mindset of corporate managers is a key factor in determining company approaches to sustainability. But what do corporate managers understand by sustainability? Our study explores discursive meaning negotiation surrounding the concepts of environment and sustainability within business discourse. (...) The study is based on qualitative interpretive research drawing from symbolic interactionism which postulates that meaning in discourse is an essentially contested domain dependent upon negotiation in the Habermasian tradition of mutually respectful dialogue. Data from semi-structured intensive interviews of a small sample of senior corporate managers was analyzed to examine how corporate elites in India frame their approach to sustainability issues and respond to external pressures for deeper corporate responsibility. The findings point to the existence of a distinctively local narrative with strong potential for the discursive negotiation of personal and collective understanding of ethical and socio-cultural values that may help internalize broader sustainability considerations into corporate decision-making processes. (shrink)