Prior research finds that firms with strong business ethics are less likely to be tax aggressive. Labor union is one of the key stakeholders influencing firm’s tax aggressive behavior, whereas the bargaining process between labor union and firms exhibits ethical dilemma. Although industry-wide labor union coverage is commonly used in prior study to explore the monitoring role of labor unions in constraining management’s aggressive financial and tax decisions of their associated firms, we argue that firm-specific labor unions, which represent a (...) different bargaining power of the employees, do play an important role in determining firms’ tax ethical decisions. Specifically, we examine whether and how the firm-specific labor union coverage impacts firms’ tax aggressiveness decisions over and above industry-wide labor union coverage. We hypothesize and find that firm-specific labor unions influence the associated firms to be more tax aggressive, which results in higher levels of residual cash flows. We also find that industry-wide labor unions influence the associated firms to be less tax aggressive, which is consistent with prior findings. We perform further analyses and find that the results are more pronounced for the firms with greater industry-wide labor unions representation. These results demonstrate that the inclusion of and interaction between the firm-specific and industry-wide labor unions matter in determining corporate’s tax aggressiveness decisions, which highlight firm’s ethical perplexity between tax savings and social commitments. (shrink)

This paper is an outcome of the business ethics course conducted during the third semester of the MBA course and aims to examine how a subordinate employee’s response, either by raising a concern or being quiet to repeated misbehavior of the leader, impacts an organization. Primary data was collected from the employees of mid-sized IT companies in India using a five-point Likert scale questionnaire. Structural equation modeling has been used to analyze the data. Mediation analysis has been conducted to verify (...) the mediating role of organizational culture. It is found that if an employee feels safe in an environment, they open up to suggestions or else suppress their thoughts to escape repercussion. The analysis shows that silence and voice in an organization have an impact on the organization’s culture. The implications of this study show that leaders violate the integrity of the organization by vandalizing the organization's objectives, outcomes, assets, and well-being of the co-employees. Previous studies have not focused on the mediating role of organizational culture on employee voice or silence. (shrink)

Corporate social responsibility has become a very common buzz word in the field of marketing since many years. This empirical paper assesses the attitude of devout and nondevout customers towards CSR in the context of a religious society. As making clear distinction between devout and nondevout customers may have associated measurement problems in a single-religion-dominated country, this paper initiates the discussion of peculiarity between two important religiosity measures, that is, observation based and solicited. A hypothetical story board with embedded CSR (...) information in a scenario supporting a religious cause is presented to the highly and less religious subjects in text written form. The scenario is followed by questions pertaining to their religious behaviors and attitude towards the company in question. The results illustrate that highly religious customers show slightly greater preference towards CSR as compared to less religious customers and the observation-based religiosity measure has a tendency of more reliability if the researchers have deep cultural and religious know-how about a specific society. Results of this study might help international marketers about choosing a particular cause under its umbrella CSR activities particularly when entering in a highly religious society dominated by a single religion. (shrink)