Business Ethics

Digital technologies can be an asset to serving communities and societies through data analytics and management to achieve greater good. However, care must be exercised in that societies without digital access do not get overlooked or, worse, face abuses of privacy disclosure or exploitation. Regulations exist to prevent this happening, but ethical considerations are important in deciding in what is allowable and what is not. The further risk of artificial intelligence where computers start to make autonomous decisions and the vulnerabilities (...) we are exposed to is considered. Steps are proposed to develop an ethics-based digital strategy and how to mitigate cyber risk. (shrink)

Reflecting current debates on ‘organizational virtues’ as going beyond the capitalocentrist bias of contemporary economies and to see diversity as ‘ethical responsibility,’ this article explores ‘ethical organizing’ at the intersection of alternative organizations and diversity. Our interest in a diversity-oriented analysis of alternative organizations stems from the assumption that those which question taken-for-granted notions of existing economies and follow alternative values of autonomy, solidarity, and responsibility might also be likely to challenge existing diversity relations and, thus, potentially open up new (...) avenues for ethical organizing. Discussing our findings in terms of Lewis and Simpson’s (in)visibility vortex, our study shows that even though organizations position themselves discursively as ‘alternative,’ this positioning is not related to diversity issues. We conclude that a shift is needed to fully constitute ethical organizing, namely the establishment of a strong connection between alternative organizations’ virtues with, e.g., the feminist, anti-racist, queer, and disability rights movements. (shrink)

At a time when firms signal their commitment to CSR through online communication, news sources may convey conflicting information, causing stakeholders to perceive firm hypocrisy. Here, we test the effects of conflicting CSR information that conveys inconsistent outcomes (results-based hypocrisy) and ulterior motives (motive-based hypocrisy) on hypocrisy perceptions expressed in social media posts, which we conceptualize as countersignals that reach a broad audience of stakeholders. Across six studies, we find that (1) conflicting CSR information from internal (firm) and external (news) (...) sources elicits hypocrisy perceptions regardless of whether the CSR information reflects inconsistencies in results or motives, (2) individuals respond to conflicting CSR information with countersignals accusing firms of hypocrisy expressed in social media posts, (3) hypocrisy perceptions are linked to other damaging stakeholder consequences, including behavior (divestment, boycotting, lower employment interest), affect (moral outrage), and cognition (moral condemnation), and (4) firms with higher credibility are more likely to experience adverse effects of conflicting CSR information. These findings advance theory regarding the effects of conflicting CSR information as it relates to the role of credibility and different forms of hypocrisy. Importantly, damaging social media posts and stakeholder backlash can arise from hypocrisy perceptions associated with inconsistent CSR results as well as inconsistent motives, and strong firm credibility only makes a firm more vulnerable to this backlash. (shrink)

The audit profession’s technical and ethical standards require the application of professional skepticism throughout the financial statement audit process, as auditor skepticism is essential for detecting financial statement fraud and protecting the investing public. However, recent research suggests that audit supervisors often punish staff for exercising skepticism, presenting auditors with an ethical conflict between acting in their own self-interest and acting in a way that improves audit quality and protects the public. This research also suggests that supervisors who reward appropriate (...) skeptical behavior, regardless of the outcome, appear to develop staff that are more likely to detect and convey fraud red flags to their superiors. Building on this research, we use a case-based survey to identify the characteristics of audit supervisors (audit seniors and managers) who are more likely to reward appropriate skepticism, even if it ultimately does not identify a misstatement. We find that trait skepticism, especially suspending one’s judgment, positively drives the evaluations of professional skepticism in our setting. Also, we observe that when supervisors believe that their own audit partner will view the skepticism favorably, they “pay it forward” by rewarding their own staff who engage in skepticism. Our findings identify the characteristics that audit firms may want to develop and foster in auditors rising to supervisory levels. (shrink)

Racial injustice in employment demands the attention of business organizations because it profoundly shapes our life prospects. While comparing the ideal of perfectly equal opportunity with its invariably imperfect alternatives can impede reform, the true challenge lies in addressing persistent inequities as we strive for equality. This article introduces “shared inequity” as a frame of reference for assessing workplace racial disparities and emphasizing a collective responsibility to remedy systemic issues. In critiquing an exaggerated notion of meritocracy, I emphasize that structural (...) racism, rather than just individual acts, facilitates collective advantages, especially for White males. Hence, it is morally fitting to frame racial justice in employment, not only in terms of perfect equality, but also in terms of justly sharing an imbalance that cannot be corrected without counterbalance. The “shared inequity” lens offers a more realistic and just approach to pursuing racial justice in the workplace. (shrink)

30 years ago, R. Edward Freeman levied an influential challenge against the “separation thesis”, which maintains that ethical and business concerns are distinct and separable. However, achieving an integration of empirical and normative research continues to pose significant challenges. In this article, it is argued that the tradition of philosophical pragmatism offers a pathway to bridge this divide. While Freeman’s critique is rooted in pragmatism, it falls short of fully embracing the pragmatist turn as advocated by Charles S. Peirce and (...) John Dewey, who extended the methodologies of empirical inquiry to ethical issues. Typically, this pragmatist turn has been sidelined due to the formidable objection that norms and values cannot be empirically confirmed nor disconfirmed. This objection is critically examined, arguing that it is largely based on conceptions of science associated with positivism and logical empiricism, effectively challenged by pragmatism. Embracing a pragmatist perspective, it is argued, can substantially enhance both theoretical and empirical research within business ethics. This approach entails integrating observations that pertain to the values, norms and responsibilities of businesses. Conversely, with a comprehensive understanding of the theoretical underpinnings of such proposals, observations can help determine which ethical theories and perspectives best accommodate empirical findings. Additionally, pragmatism presents a novel approach to the role of business in society, enabling businesses to engage in democratic processes of inquiry into value. (shrink)

We introduce new leader humility scales capturing a theoretically rich conceptualization of leader-expressed humility aligned with traditional and ethically-grounded philosophies. These scales draw from recent inductive research (Oc et al., 2015) identifying nine dimensions of leader-expressed humility: (1) having an accurate view of self, (2) recognizing follower strengths and achievements, (3) modeling teachability and being correctable, (4) leading by example, (5) showing modesty, (6) working together for the collective good, (7) empathy and approachability, (8) showing mutual respect and fairness, and (...) (9) mentoring and coaching. The first three dimensions overlap with the most prominent conceptualization of leader-expressed humility in the literature (i.e., Owens et al., 2013). However, the latter six dimensions are unique and represent an expanded understanding of the humble behaviors of leaders, which have implications for leaders and their ethical behavior in organizations. We conducted three studies resulting in two versions of the leader-expressed humility measure: 1) a 27-item scale with the nine dimensions (i.e., the “Leader-Expressed Humility” [LEH] scale) and 2) a 9-item brief scale (i.e., the “Brief LEH” scale) comprised of one item from each of the nine dimensions. As an initial step, we generated a pool of items that reflected each dimension. Next, we validated the LEH and Brief LEH scales in Study 1 and cross-validated the Brief LEH scale in Study 2 with two samples of subordinates in Singapore. As a final step, in Study 3, we cross-validated the Brief LEH scale with a sample of subordinates in the United States. (shrink)

Virtue signaling serves to express moral and ethical values publicly, showcasing commitment to social and sustainable ideals. This research, conducted with non-WEIRD samples to mitigate the prevalent WEIRD bias (i.e., the tendency to solely rely on samples from Western, educated, industrialized, rich, and democratic societies), examines whether the scarcely studied virtue-signaling construct mediates the influence of consumers’ attachment anxiety (vs. avoidance) on their green purchase behavior and prosocial responses. Drawing on attachment theory and the emerging virtue-signaling literature, the current work (...) reports the results from three studies (_N_ total = 898) in which consumers’ attachment patterns were not only measured, as in most prior related research, but also manipulated. Study 1 confirmed the unique ability of measured attachment anxiety, but not attachment avoidance, to predict consumers’ green purchase behavior and prosocial tendencies, with virtue signaling mediating these links. Study 2 manipulated participants’ attachment patterns, finding further support for the mediating role of virtue signaling between attachment anxiety (vs. avoidance) and these dependent variables. Study 3 provided a more nuanced account for our virtue-signaling conceptualization by documenting that self-oriented, but not other-oriented, virtue signaling mediated the link between attachment anxiety and both our key outcomes in public contexts. From a managerial viewpoint, these findings indicate that anxiously attached consumers constitute a potentially lucrative segment for companies seeking to expand their market share of sustainable and ethically produced products. (shrink)

The present study explores a neglected area of ethical leadership: lateral behavioral effect from peer team leaders as a key predictor of ethical leadership. Using the lens of social learning theory, we posit that peer team leader ethical voice fosters focal team leader ethical leadership through team leader moral efficacy. In line with social learning perspective, we also posit the moderating effect of ethical role modeling of peer team leader in relationship between peer team leader ethical voice and team leader (...) moral efficacy. We conducted a two-wave study over a 6-week interval between waves from military teams. Our results provided support for all of our hypotheses. In addition, we also found an incremental validity of peer ethical voice behavior by controlling other relevant factors such as upper leaders’ ethical role modeling and peer ethical leadership. Our findings contribute to the advancement of ethical leadership literature by articulating a novel antecedent as well as its boundary condition. (shrink)

Contemporary society operates beyond safe boundaries of the Earth system. Returning to a safe operating space for humanity within Earth system boundaries is a question of justice. The relevance of the economy—and thus of business—for bringing society back to a safe and just operating space highlights the importance of business ethics research for understanding the role of business in Earth system justice. In this commentary, we explore the relevance of business ethics research for understanding the crucial role of business in (...) the dynamics of the Earth system. We do so by integrating the perspectives of business ethics and system-oriented sustainability science on the basis of the theory of metabolic rift, which explains how the dynamics of capitalism result in the destruction of the natural environment. On this basis, we argue that a mutually reinforcing relationship between perpetual economic growth and profit seeking behaviour of business, which we call the _loop of unsustainability_, continually deepens the metabolic rift and keeps business from effectively contributing to Earth system justice. This perspective allows us to formulate firm-level and system-level preconditions for attaining Earth system justice, and to sketch a research agenda that links business ethics scholarship with questions of Earth system justice. (shrink)

The uncovering of several recent corporate scandals has brought to light unethical pro-organizational behavior (UPB) in organizations. A growing body of research has provided insights into employees’ UPB and its antecedents. However, our understanding of leader UPB and its effects remains limited. In this study, we develop and test a theoretical model that explains employees’ responses to their leader UPB. By drawing on the theory of motivated reasoning and the trust literature, we posit that, in general, leader UPB is linked (...) to unfavorable responses from employees such as a lower perception of leaders’ trustworthiness, which, in turn, reduces the citizenship behaviors of employees. However, our model also shows that these effects do not emerge automatically but depend on a crucial boundary condition—followers’ outcome favorability, or the extent to which followers personally benefit from leader UPB. Specifically, we contend that negative responses to leader UPB arise mainly when followers’ outcome favorability is low but decrease significantly when followers’ outcome favorability is high. The results of two multi-wave, multi-source field studies support our hypothesized model. These findings offer a new, instrumental perspective on followers’ responses to unethical leader behaviors, with valuable theoretical and practical implications. (shrink)

A growing group of institutional investors use divestment strategically to deter misconducts that are harmful for the climate and society. Based on Kantian ethics, we propose that divestment represents investors’ universal and absolute moral commitment to socially responsible investing (SRI). Following categorical and hypothetical imperatives and reciprocity as a norm, we hypothesize how institutional investors’ commit to SRI through a divestment strategy against ethically reprehensible behaviour of banks, especially when these investors represent banks themselves. Using a hand-collected database of the (...) revelation dates of enforcement actions on banks, we find evidence that banks are less likely to divest equity holding on banks with misconduct (fined banks) than their non-bank institutional investors peers. Banks that commit to invest responsibly by signing for the Principles for Responsible Investment (PRI) are not significantly more likely to divest on fined banks stocks than non-signatory banks. Moreover, divestment of fined banks whose own legitimacy to operate is in question is not significantly different from non-fined banks divestment. We find that European banks are more inclined to sell their holdings permanently on fined banks than their United States peers. Therefore, bank’s moral commitment to SRI via divestments is influenced more by cultural and reciprocity norms than their moral commitment to participate in the PRI. (shrink)

Companies are increasingly engaging in corporate activism, defined as taking a public stance on controversial sociopolitical issues. Whereas prior research focuses on consumers’ brand perceptions, attitudes, and purchase behavior, we identify a novel consumer response to activism, unethical consumer behavior. Unethical behavior, such as lying or cheating a company, is prevalent and costly. Across five studies, we show that the effect of corporate activism on unethical behavior is moderated by consumers’ political ideology and mediated by desire for punishment. When the (...) company’s activism stand is [incongruent/congruent] with the consumer’s political ideology, consumers experience [increased/decreased] desire to punish the company, thereby [increasing/decreasing] unethical behavior toward the company. More importantly, we identify two moderators of this process. The effect is attenuated when the company’s current stance is inconsistent with its political reputation and when the immorality of the unethical behavior is high. (shrink)

In the team context, leaders usually develop differentiated leader-member exchange relationships with employees, resulting in some employees having relatively inferior relationships with the leader than others. Nevertheless, how and when employees with low relative leader-member exchange (RLMX) relationships react toward the leader have been rarely considered in empirical research. Drawing upon social comparison theory, we develop a cross-level moderated mediation model to examine how and when RLMX may lead to employee’s unethical pro-leader behavior (UPLB). We propose that employees with low (...) RLMX would feel envy which in turn motivates them to engage in UPLB in order to gain the rewards and resources that are distributed by the leader. Further, we argue that envy is less likely to motivate low RLMX employees to engage in UPLB when distributive justice climate is high, because high distributive justice indicates that rewards and resources are distributed fairly (based on work contribution rather than engaging in unethical behaviors that please the leader). Data were obtained from 504 employees in 102 divisional teams in a large retail corporation at three time points. Results of the multilevel moderated mediation analysis show that envy mediates the effect of RLMX on UPLB and that the indirect relationship is moderated by team-level distributive justice climate. These findings suggest the importance of adopting a social comparison perspective to understand the negative consequences of RLMX via emotional mechanisms. (shrink)

The rising prominence of consumer sovereignty, wherein businesses prioritize customers as kings, presents complex ethical dilemmas. This paper delves into the ethical implications of consumer sovereignty by examining the lack of recognition to which service workers are subjected in their interactions with customers. Applying the sensitizing lens of recognition theory, we investigate how the relational domination inherent in the service industry ultimately results in four main recognition gaps: visibility, status recognition, affective recognition, and capacity recognition gaps. These gaps considerably hinder (...) an employee’s ability to experience workplace dignity. Our findings enrich the business ethics literature by providing a more holistic analysis of the ethical challenges raised by consumer sovereignty. We introduce recognition theory as a framework to address these concerns and offer recommendations for managers to better support their service employees in overcoming the absence of customer recognition. (shrink)

This paper studies consumers’ reactions and resistance to being responsibilized for making climate-friendly food choices. While resistance to consumer responsibilization has been studied from an individual experiential perspective, we examine its collective characteristics. We do this by tracing the controversial marketing campaign of a Swedish poultry producer, encouraging consumers to “do something simple for the climate” by eating chicken rather than beef. In our analysis of social media comments and formal complaints to the consumer protection authority, we mobilize Foucault’s notion (...) of counter-conduct to analyse subtle forms of resistance to consumer responsibilization. We identified four interrelated yet distinct forms of consumer counter-conduct: _challenging truth claims, demanding ‘more,’ constructing ‘the misled consumer,’_ and _rejecting vilification._ By theorizing these counter-conducts, we demonstrate how consumers collectively contested both the means and ends of responsibilization—but not the underlying premise of individualized responsibility. Thus, our study helps to explain how consumers’ resistance reproduces, rather than undermines, responsibilization. (shrink)

With the problems of climate warming and ecological destruction becoming more and more serious, natural risks have attracted more and more attention, and corporate natural resource disclosure has gradually become a focal topic in academia. Therefore, based on the institutional theory and the upper echelon theory, this study selects 348 Chinese natural resource-based listed companies in Shanghai and Shenzhen stock markets from 2014 to 2021 as samples to investigate the influence of clan culture on corporate natural resource disclosure and the (...) moderating effect of natural resource endowment on the relationship between the two, and analyzes the heterogeneity from the two aspects of the workplace and growth experience of corporate executives. The results indicate that clan culture has a significant positive effect on corporate natural resource disclosure. Natural resource endowment can negatively moderate the effect of clan culture on corporate natural resource disclosure. The positive effect of clan culture on the quality of corporate natural resource disclosure is significant when executives work in their birthplace or are born before the Cultural Revolution, but it is not significant when executives do not work in their birthplace or are born after the Cultural Revolution. These findings help to extend the analysis of the influence of informal institutions on information disclosure, providing a reference for future research on natural resource disclosure and informal institutions in developing countries. (shrink)

This research investigates whether required employee green behavior can spill over to a proactive form of green behavior termed green advocacy. Drawing on self-perception theory, we theorize and test a moderated mediation model in which required employee green behavior is positively associated with green advocacy via the mediation of pro-environmental self-identity, with the strength of such association contingent upon employee moral identity. Data collected in three waves from 297 employees at a large manufacturing firm in China provide support for the (...) research model. Results show that pro-environmental self-identity explains the positive association between required employee green behavior and green advocacy and that its mediating role is stronger when moral identity is higher (vs. lower). This study advances workplace green behavior research by identifying a novel psychological path and extending knowledge about a boundary condition. (shrink)

Although previous research has examined the effectiveness of various levels of punitive reactions to misconduct, researchers have given leader leniency relatively inadequate attention. Prior studies consistently suggest the beneficial effects of reacting less punitively toward misconduct. The current research challenges this notion by delineating a mixed effect of leader leniency on subordinate psychological and behavioral reactions. Building on social exchange theory (i.e., reciprocity norm and rank equilibration norm) and motive attribution literature, the authors argue that when subordinates hold high levels (...) of instrumental motive attribution, leader leniency relates positively to subordinate psychological entitlement, which in turn leads to workplace deviance. In contrast, when subordinates develop high levels of value-expressive motive attribution, leader leniency is positively associated with their felt obligation toward leaders, which positively influences their subsequent organizational citizenship behavior. The results of a field study, a scenario experiment, and a recall experiment conducted to test these hypotheses confirm the double-edged effects of leader leniency. These findings have important implications for theory and practice. (shrink)

The Resource-Based View (RBV) has been instrumental in shaping strategic management theory by underscoring the significance of a firm's unique, valuable, and hard-to-copy internal resources in securing competitive advantage. However, the conventional RBV framework, with its emphasis on static, possession-oriented resource conceptualization, falls short in addressing the dynamic and relational nature of resources in contemporary business environments. This paper aims to bridge this gap by introducing a processual perspective to the RBV, grounded in process philosophy. In this study, we delve (...) into the philosophical underpinnings of RBV, critiquing its static ontological assumptions and proposing a shift towards a more dynamic and relational ontology. Drawing from the insights of process philosophers such as Whitehead and Bergson, and differentiating between 'strong' and 'weak' process views, we reconceptualize resources not as static entities, but as dynamic elements continually constituted and reconstituted within networks of relationships and ongoing organizational processes. This approach allows for a more nuanced understanding of resources, recognizing their evolutionary and interconnected nature. Our methodology involves a rigorous theoretical analysis and synthesis of existing RBV literature, coupled with philosophical inquiry to construct a novel framework for resource conceptualization. We demonstrate how this reconceptualization offers fresh insights into strategic management, particularly in formulating strategies that leverage the dynamic interplay of resources and in understanding the boundary between internal and external resources. This paper contributes to the RBV literature by offering a process-oriented perspective that aligns more closely with the complexities of modern strategic landscapes. By challenging and extending traditional RBV assumptions, we pave the way for future empirical research and theoretical development in strategic management, highlighting the significance of process philosophy in enriching management theories. (shrink)

Ethical cultures, corporate social responsibility (CSR), and sustainability strategies are increasingly being addressed through formal organisational policies and structures. This is evidenced by codes of ethics, conduct, whistle-blowing reporting lines, anti-bribery and corruption policies, and broader stakeholder and environmental engagement strategies. In the United States, corporate ethics managers are responsible for these functions, supported by specific professional and university-level qualifications. However, this is not the case in Australia and Asia where the role appears delegated to human resource personnel in organisations. (...) Human resource management (HRM) is increasingly advanced as a formal profession, yet whether corporate ethics content features as a significant component of the HRM profession is unclear. Expert knowledge is a foundation of a profession along with the duty to act within the limits of that knowledge and expertise. This paper scopes what constitutes professional expert knowledge. It examines corporate ethics expertise and HRM within this context. Major Australian and Asian organisations are examined to verify that HRM Departments, and thus HRM practitioners, are responsible for managing corporate ethics. Given the seniority and strategic importance of this function, the content of selected Masters in HRM and related fields are examined to identify the extent of ethics content. This is considered in the light of the expertise required to manage corporate ethics, and conclusions are drawn whether the HRM discipline is appropriately qualified to manage this function. Finally, recommendations and further research towards advancing the role and function of corporate ethics managers in general are proposed. (shrink)

Integrating norms of reciprocity, affect theory of social exchange, and ambivalence literature, we investigated how leader-member exchange (LMX) ambivalence influences employees’ interpersonal behaviors toward supervisors. Study 1, with a time-lagged field method, revealed that LMX ambivalence was positively related to _both_ employee-rated supervisor-directed helping and deviant behaviors and that such relationships were mediated by emotional ambivalence toward supervisors. We also confirmed the amplification effects of workplace gossip about supervisors (WGS). Specifically, while receiving more positive WGS (PWGS) or less negative WGS (...) (NWGS) could strengthen the positive relationship between emotional ambivalence and supervisor-directed helping behaviors, receiving less PWGS or more NWGS would accentuate the positive effect of emotional ambivalence on supervisor-directed deviant behaviors. Study 2 replicated our results with a scenario-based method and offered evidence for the mediating effect of emotional ambivalence toward supervisors. Study 3 included supervisor-rated helping and deviant behavior and a subjective measure of emotional ambivalence and again confirmed the mediating role of emotional ambivalence. Our findings extend knowledge of the interpersonal consequences of LMX ambivalence. (shrink)

Building on appraisal theory of emotions and theories on moral emotions, we contend that ethical leadership triggers other-praising moral emotions directed at the supervisor and leads to feedback-seeking behavior. We further predict that the affective processes of ethical leadership have implications for workplace behaviors, namely organizational citizenship behavior directed at the supervisor and employee voice. We develop a new measure of supervisor-directed, other-praising moral emotions and test the validity of the measure. Then, we test and find support for the proposed (...) hypotheses using a sample of 231 full-time employees in China with a time-lagged survey design and structural equation modeling. Theoretical and practical implications for ethical leadership and moral emotions are discussed. (shrink)

We explore whether digital inclusion, a public policy designed to provide high-speed internet infrastructure for historically digitally excluded populations, is associated with the social and ethical challenge of financial inclusion. Using evidence from a sizable P2P lender in the U.S., we document that digital inclusion is positively associated with P2P lending penetration and that this relation is more pronounced in counties with limited commercial bank loan penetration and higher minority populations. Our new evidence from cross-sectional tests suggests that digital inclusion (...) plays a key role in financial inclusion, particularly in regions with more vulnerable and/or underserved populations. In consequence tests, we document that high-risk borrowing is less likely to be denied in counties with higher digital inclusion and that digital inclusion is positively associated with P2P lending efficiency in the form of more repeated borrowing, decreased funding time, and improved funding fulfillment. In addition, we show that the availability of alternative information, a plausible channel through which digital inclusion is related to financial inclusion, is positively associated with efficiency in P2P lending. Our findings indicate that digital inclusion can empower financial service providers and other stakeholders to collaboratively fulfill their ethical and social responsibilities to meet the financial needs of historically marginalized groups. (shrink)

In this article, we examine the ethical implications of randomised control trials (RCTs) as a practice of quantification in international development. Often referred to as the “gold standard” for the evaluation of development interventions, RCTs are lauded for their ability to generate supposedly objective, unbiased, and rigorous evidence to inform policy decisions for poverty alleviation. At the same time, critiques of quantification within and beyond development challenge claims of objectivity and neutrality, raising epistemological and ethical questions regarding the role of (...) quantitative research, the numbers they produce, and the processes triggered by practices of quantification. Building on these critiques, this study develops a decolonial analysis of the RCT methodology. We argue that RCTs, by enacting the coloniality of being, knowledge, and power, serve to perpetuate global coloniality, and its core organising principle, namely colonial difference. The study contributes to ongoing conversations addressing the ethical stakes of knowledge production and (de)coloniality. (shrink)

The majority of workplace incivility research has focused on implications of such acts for victims and observers. We extend this work in meaningful ways by proposing that, due to its norm-violating nature, incivility may have important implications for perpetrators as well. Integrating social norms theory and research on guilt with the behavioral concordance model, we take an actor-centric approach to argue that enacted incivility will lead to feelings of guilt, particularly for prosocially-motivated employees. In addition, given the interpersonally burdensome _as (...) well as_ the reparative nature of guilt, we submit that incivility-induced guilt will be associated with complex behavioral outcomes for the actor across both home and work domains. Through an experience sampling study (Study 1) and two experiments (Studies 2a and 2b), we found that enacting incivility led to increased feelings of guilt, especially for those higher in prosocial motivation (Studies 1 and 2a). In addition, supporting our expectations, Study 1 revealed that enacted incivility—via guilt—led to increased venting to one’s spouse that evening at home, increased performance the next day at work, as well as decreased enacted incivility the next day at work. Our findings demonstrate that enacted incivility has complex effects for actors that span the home and work domains. We discuss the theoretical and practical implications of our results. (shrink)

To meet the shifting needs and preferences of the contemporary sales workforce, sales organizations are deploying idiosyncratic deals (I-deals), or mutually beneficial individualized workplace arrangements between salespeople and the organization. However, research is lacking on how, and under what conditions, I-deals facilitate work engagement and performance among salespeople. In this study, based on analysis of data gathered from 221 business-to-business salespeople, we demonstrate that I-deals are positively related to two foci of salesperson work engagement (i.e., social engagement and change engagement) (...) and salesperson performance. Furthermore, we find that ethical self-leadership, which is driven by ethical leadership, functions as an internal self-governance mechanism that strengthens the impact of I-deals on salesperson work engagement. Based on these results, we delineate novel theoretical and practical implications on the role of I-deals in facilitating effective sales talent management. (shrink)

How do scholars formulate arguments about economic inequality? What is the role of empirical analysis? In what ways, if any, is the debate informed by ethical considerations? In this paper, we address these questions by evaluating one of the main arguments in Thomas Piketty’s 2014 book _Capital in the Twenty-First Century_, along with its endorsements and rebuttals. Applying Stephen Toulmin’s model of arguments to Piketty unearths a complex argument structure that must be understood for an evaluation to be possible. Of (...) particular importance are the warrants that Piketty used to justify his conclusions from the empirical material. Our analysis revealed that the most influential rebuttals were targeted not at Piketty’s empirical inferences but the way he used these inferences to justify his claims. We also found value judgments to be an essential part of the justification process, making Piketty’s claims ultimately embedded in ethical considerations. We conclude that value judgments are intrinsic to scholarly arguments not only in economic inequality debates but also more broadly. (shrink)

Machiavellianism is a double-edged sword in leadership. While Machiavellian leaders can be successful, they also can be amoral, influencing their followers to exhibit unethical, counterproductive, and corrupt behaviors. The extant research surrounding Machiavellian leadership has focused narrowly on how followers tacitly endorse such leader behaviors rather than standing up to the leader through whistleblowing. Drawing upon affective events theory (AET), this research examines the relationship between a leader’s Machiavellian traits, followers’ moral anger and empathic concern, and the likelihood of whistleblowing. (...) We conducted three complementary studies that examine our model. First, in a time-lagged, leader–follower field study, we examined the indirect relationship between Machiavellian leadership and whistleblowing through follower moral anger. Then, we adopted the causal chain design and conducted two independent recall experiments using the critical incident technique to establish the moderating role of follower empathetic concern on the causal relationship between Machiavellian leadership and moral anger, and the causal relationship between moral anger and whistleblowing. This research contributes to the literature by highlighting the emotional dynamics that explain a constructive follower response to leader Machiavellianism. (shrink)

This study delves into the intricate world of tipping, examining how restaurant chefs and chef-owners account for and morally justify this practice. While previous research has paved the way for understanding several of the nuances of tipping in the dining experience, little attention has been given to chefs’ perspectives on its moral dimensions. In today’s evolving restaurant dining landscape, tipping practices have become increasingly contentious. Therefore, it is imperative to grasp the ethical intricacies of tipping experiences, as they hold significant (...) implications for social and economic interactions. This study focuses on interviews with culinary artisans—the masterminds behind the dining experience, including executive chefs, chef-owners, sous chefs, chefs de cuisine, private chefs, and pop-up chefs. Through these conversations, we explore the moral justifications for tipping, unintended consequences that arise, and the advent of tip coercion. Our findings shed light on the moral reasoning and ethical dynamics behind tipping practices. These findings offer a foundation for shaping theoretical frameworks, informing practical solutions, and guiding policy decisions in this complex realm. (shrink)

Prior research has investigated how narcissistic executives affect firm policies and outcomes and how these executives influence colleagues and followers. However, almost no research exists concerning the impact of narcissistic executives on external agents. We examine the case of credit ratings—where analysts are required to assess management competence and where undue management influence is a concern—to determine whether narcissistic CEOs exert an effect on their firm’s rating. Using the size of the CEO’s personal signature to measure narcissism, we find that (...) CEO narcissism is associated with worse credit ratings. This effect is attenuated when firms face greater financial constraints, higher industry competition, and more concentrated institutional ownership. Our study contributes to the growing body of literature on CEO narcissism and suggests that these manipulative individuals are unable to exert an obvious upward influence on credit rating agencies. (shrink)

This paper presents an account of the moral boundaries of organizations. We define an organization’s moral boundary to encompass all of the actions for which it could be held morally responsible. Our theory requires us to view organizations as subjects that act in the world, rather than as objects that are used as tools; that is, it requires us to focus on corporate moral agency. We present a process model for determining whether a given action lies within an organization’s moral (...) boundary, and we discuss how an organization’s moral boundary can be created, destroyed, or modified as a result of deliberate choices by human and organizational actors. Our article contributes to the literature by conceptualizing the distinction between organizations as subjects and organizations as objects, and so clarifying the distinction between legal and moral boundaries; by recentering the discussion of boundaries on organizational actions rather than on contingent institutional features; and by adding nuance to the assignment of moral responsibility in complex organizational networks and in situations where one corporate moral agent depends upon another for its existence. (shrink)

Existing literature on greenhouse gas (GHG) emissions disclosure has paid little attention to private firms, despite the fact that this type of firm is responsible for significant GHG emissions. This study empirically analyzes the GHG disclosure of German private firms. The results suggest that more pronounced information asymmetries due to a more dispersed ownership structure and/or multiple bank relationships are associated with more extensive GHG disclosure. This aligns with arguments from agency and stakeholder theory. While this result is not new (...) for public firms, it is for private firms. Given the specific characteristics of this type of firms (no separation of ownership and control, private communication channels, close bank–borrower relationships), it is not a straightforward assumption that observations from public firms can be transferred to private firms one-to-one. Moreover, higher levels of actual GHG emissions are also associated with more GHG disclosure, indicating that legitimacy theory arguments hold for private firms as well. (shrink)

Many apps request access to users’ contacts or photos and many consumers agree to these requests. However, agreeing is ethically questionable as it also gives apps access to others’ data. People thus regularly infringe each other’s information privacy. This behavior is at odds with offline practices and still poorly understood. Introducing a novel application of the theory of neutralization, we explore how people justify the giving away of others’ data and the emerging norms surrounding this behavior. To obtain a deeper (...) understanding of the potentially ambiguous norms surrounding the behavior, we investigate how people justify, i.e., neutralize, the behavior from both offender and victim perspectives. Across four studies, offenders appear more likely to admit to moral wrongdoing than victims assume. This suggests moral disagreement between offenders and victims. The discrepancy appears to be reasonably robust across different samples, apps and whether the other is identified, but diminishes when people learn how easily others’ data could be protected. These insights offer suggestions for businesses, consumers and public policy. (shrink)

In his latest book, _Ethics for Capitalists_, Joseph Heath draws on his many years of thinking about business ethics to propose, as the book’s subtitle indicates, “a systematic approach to business ethics, competition, and market failure.” He develops his argument carefully, draws on a wealth of interdisciplinary work, uses valuable and insightful examples, contrasts his views with important alternatives, and provides responses to compelling objections. In this review article, we argue that his book revises and sharpens many of Heath’s earlier (...) ideas, addressing important criticisms raised against them. We highlight that the book also offers a broad macro-level framework for market design, an explanation of how current corporate governance structures fit such a framework, and concrete responses to micro-level questions about what businesses and individuals ought to do. By doing all of this, his book shifts the scope of the “market failures approach” (MFA) from what used to be a narrow focus on the obligations of professional managers to an encompassing “ethics for capitalists” that ought to guide any economic actor within a capitalistic system. Despite the many merits of his book, we conclude by discussing some concerns we have about its scope and methodology. (shrink)

Our study explores how climate risk affects the tax behavior of governments and local firms, subsequently affecting corporate pollution emissions. Using data on Chinese non-state-owned industrial enterprises from 1998 to 2014, we empirically investigate the impact of natural disasters on corporate tax avoidance. The results indicate that companies in earthquake-damaged areas are less likely to avoid taxes than those in unaffected areas. Furthermore, companies that pay more taxes after a disaster can secure favorable government environmental policies, as indicated by a (...) rise in pollution emissions. Moreover, this effect is more pronounced for less polluting firms and firms with higher financial constraints. Our study contributes to the literature on taxation and ESG from the perspective of favor-exchange in government–firm relationships. (shrink)

In an era when the public and shareholders increasingly demand greater accountability from institutions for racial injustice and slavery, scholarship on corporate reparations is more and more essential. This article argues that corporations have played a significant role in the cultural dehumanization of Blackness and therefore have a particular responsibility to make repair. Cultural dehumanization refers to embedding anti-Blackness into US culture in service of capitalist profit accumulation, which has resulted in status and material inequalities between Blacks and whites that (...) have persisted from slavery to the present. More specifically, the article argues corporations have a moral duty to offer reparations to Black Americans regardless of any redress offered by other perpetrators of anti-Blackness. It appeals to tort law in providing a moral justification for corporate reparations to Black Americans. (shrink)

In organizational scholarship, the infusion of spirituality into corporate culture has emerged as a transformative force that significantly influences employee well-being, work engagement, and operational efficiency, ushering in a new era of workplace harmony. However, amidst this evolution, the Indian banking industry remains relatively unchartered. This study embarks on a pioneering journey, exploring the intricate interplay between workplace spirituality and spiritual fulfillment within this dynamic sector and discerning differences between public and private sector employees. The workplace Spirituality and the Spiritual (...) Fulfillment questionnaire were administered to obtain the complete information from 342 respondents from Delhi and Delhi (NCR). Data analyses were performed using SPSS 26.0. Multiple regression analysis uncovers a significant impact of spirituality-driven culture on employees’ sense of spiritual fulfillment. The findings demonstrate that Indian banking institutions harbor the seeds of spiritual workplaces. The study heralds a spiritual awakening within the banking sector by offering fresh perspectives that have the potential to redefine conventional paradigms in academia and the industry. The authors believe replicating the findings might realize the positive outcomes of a more spiritual workplace throughout the whole network and hierarchy of the banking sector. (shrink)

We examine the impact of corporate culture on environmental performance using a sample of 7199 firm-year observations over the period of 2002–2018. We find that stronger corporate culture improves environmental performance, measured by the amount of toxic chemical release (TCR). Our result is both statistically and economically significant. We also show that cultural norms of innovation, quality and teamwork as well as a technology-oriented corporate culture have a greater impact on enhancing environmental performance. Further analyses show that managerial competence and (...) strong institutional ownership moderate the relationship between corporate culture and environmental performance. We introduce the decomposition of expected and unexpected components of TCR and document that firms with a strong corporate culture implement strategies to reduce the unexpected component of TCR in addition to the expected component of TCR. Finally, we document that strong corporate culture and environmental performance improve firms’ financial performance. Our results are robust to several sensitivity tests and procedures to mitigate endogeneity and self-selection problems. From a practical point of view, our findings suggest that a firm’s culture can determine its environmental sustainability and ethical practices. (shrink)

This paper proposes that Hannah Arendt’s book _Eichmann in Jerusalem: A Report on the Banality of Evil_ furnishes both philosophical and empirical elements to understand not only the Nazi crimes but also cases of wrongdoing by and within current organizations. It is suggested that Arendt provides three relevant standpoints to how wrongdoing is _banalized_ within organizations: a critique of bureaucratic administration, an account of the role of interactive socialization, and a reflection on the cognitive and meaning-attribution processes. Arendt originally connected (...) these three dimensions to _thoughtlessness_, understood as a process of routinization in which organizations discourage critical thinking, personal responsibility, and reflection about the ultimate meaning and consequences of actions and decisions. As opposed to this, thoughtfulness is proposed as an approach based on meaningful pursuit within organizations to avoid some of the normative, cognitive, and routine elements that encourage, justify, and reproduce the banalization of misconduct. (shrink)

In this article, we seek to explore the different normative claims made around commons organizing and how the advent of the digital commons introduces new ethical questions. We do so by unpacking and categorizing the specific ethical dimensions that differentiate the commons from other forms of organizing and by discussing them in the light of debates around the governance of participative organizations, the cornerstone of commons organizing (Ostrom in Governing the commons: the evolution of institutions for collective action. Cambridge University (...) Press, Cambridge, 1990). Rather than contesting commons organizing or endorsing it blindly, our goal is to critically reflect on its deontological and instrumental assumptions, and analyze the arguments upholding that it possesses ethical qualities that render it fairer, more equitable and sustainable than other centralized or hierarchical models—as well as any forms of privatization. We conclude by assessing the definitional dislocation of the digital commons where, unlike traditional commons, extractability can be endless and generate unintended consequences such as commodification or alienation. Taking stock of recent debates around the digital commons, we open the debate for future possible research avenues on normative claims, particularly under rapidly changing technological conditions. (shrink)

Research into consumer responses to corporate social responsibility (CSR) initiatives has expanded in the past four decades, yet the evidence thus far provided does not paint a cohesive picture. Results suggest both positive and negative consumer reactions to CSR, and unless such mixed findings can be reconciled, the outcome might be an amalgamation of disparate empirical results rather than a coherent body of knowledge. The current meta-analysis therefore tests whether the mixed findings might reflect consumers’ distinct, altruistic inferences across various (...) contingency factors. On the basis of 337 effect sizes, involving 584,990 unique respondents, in 162 studies published between 1996 and 2021, this study reveals that altruistic inferences are central to the current CSR paradigm, such that they mediate the effects of CSR initiatives on consumer responses across multiple contingencies. The mediation by altruistic inferences is stronger (weaker) in conditions favorable to dispositional (situational) motive attributions. Furthermore, consumers respond more favorably to cause marketing or philanthropy rather than business-related CSR initiatives, when the initiative is environmental (vs. social), the firm’s offering is utilitarian (vs. hedonic), the CSR initiative takes place in self-expressive (vs. survival) cultures and in earlier (vs. later) periods. These findings offer several ethical implications, and they inform both practical recommendations and an agenda for further research directions. (shrink)

This paper analyses the right to repair (R2R) movement through the lens of radical democracy, elucidating the opportunities and limitations for advancing a democratic repair ethics against a backdrop of power imbalances and vested interests. We commence our analysis by exploring broader political-economic trends, demonstrating that Original Equipment Manufacturers (OEMs) are increasingly shifting towards asset-based repair strategies. In this landscape, hegemony is preserved not solely through deterrence tactics like planned obsolescence but also by conceding repairability while monopolizing repair and maintenance (...) services. We further argue that the R2R serves as an ‘empty signifier’, whose content is shaped by four counter-hegemonic frames used by the R2R movement: consumer advocacy, environmental sustainability, communitarian values, and creative tinkering. These frames, when viewed through Laclau and Mouffe’s theory of radical democracy, reveal different potentials for sustaining dissent and confronting OEMs' hegemony in the field of repair. Analysed in this way, an emerging business ethics of repair can be understood as driven by _the politics of repair beyond repair._ This notion foregrounds the centrality of non-violent conflict and antagonism for bringing radical democratic principles to repair debates, looking beyond narrow instrumentalist conversations, where repairability is treated as an apolitical arena solely defined by concerns for eco-efficiency and resource productivity. (shrink)

Abstract Responding to recent calls from within critical MOS and organizational ethics studies to explore questions of difference and inclusion ‘beyond unity and fixity’, this paper seeks to enrich the debate on difference and its negotiation in organizations, thereby foregrounding difference as the contested and ever-changing outcome of power-invested configurations of practice. The paper presents an ethnographic study conducted in a psychosocial day-care centre that positions itself as a ‘space of multiplicity’ wherein ‘it is normal to be different’. Highlighting the (...) context-specific challenges and struggles encompassing mental ill-health as a category of difference deviating from the norm, our paper contributes to a critical-affirmative understanding of difference. We foster an approach that values normative orientations such as ‘egalitarian difference’ and ‘difference as multiplicity’ yet avoids idealising portrayals of an ethics of difference that challenges normalcy and unconditionally favours otherness and calls for ‘radically other kinds of difference’. (shrink)