In spite of its commercial importance and signs of clear concern in public policy arenas, trade credit has not been subjected to systematic, extended analysis in the business ethics literature, even where suppliers as a stakeholder group have been considered. This paper makes the case for serious consideration of the ethics of trade credit and explores the issues surrounding slow payment of debts. It discusses trade debt as a kind of promise, but—noting that not all promises are good ones—goes on (...) to develop an analysis of the ethics of trade credit grounded in an understanding of its fundamental purpose. Making a distinction between “operating” trade credit and “financial” trade credit, the paper provides an account of the maximum period for which it is appropriate for one company to delay payment to another from which it has purchased goods or services. The concern of commentators and policy makers that companies should not take too long to pay their debts is affirmed, but the understanding of what timely payment means is significantly finessed, with one conclusion being that, if debts have not already been settled according to acceptable standard terms of trade, cash should pass quickly back along the supply chain once the customer in the final product market has paid. The analysis has implications not only for companies that take credit but also for external parties that seek to rate companies or set regulations according to speed of payment—an approach that is shown to be misleadingly simplistic, albeit well intentioned. A corresponding important responsibility for suppliers, not to extend excessive credit, also follows from the analysis developed. Having provided a novel analysis of an important business problem, the paper then discusses some of the related practical issues and makes suggestions for further research. (shrink)

This article discusses plant-closing decisions by multinational enterprises applying a stakeholder theory approach. In particular, we focus on the emergence of “intra-stakeholder alliances,” that is, alliances among the various stakeholder groups of a specific corporation. We analyze the emergence of stakeholder alliances in reaction to MNEs' decisions to terminate production locally and discuss their influence on the outcomes of such decisions. Our research is inspired by two exceptional case studies of two multinational breweries that announced their decisions to close niche (...) breweries in small towns in Italy and Belgium. In both cases, the initial decision was ultimately reversed through the actions of intra-stakeholder alliances. We combine insights from stakeholder theory and the social movement literature to analyze the action and influence of intra-stakeholder alliances in seven cases of plant-closing decisions. We conclude by formulating four general propositions that can provide guidance to MNE management in plant-closing decisions. Our findings extend managerial stakeholder theory, show how this approach can improve strategic management analysis, emphasize the importance of the relationships among stakeholders in the value-creation process, and shed light on the collective action and influence of intra-stakeholder alliances. (shrink)

In a field dominated by research on moral prescription and moral prediction, there is poor understanding of the place of moral perceptions in organizations alongside philosophical ethics and causal models of ethical outcomes. As leadership failures continue to plague organizational health and firms recognize the wide-ranging impact of subjective bias, scholars and practitioners need a renewed frame of reference from which to reconceptualize their current understanding of ethics as perceived in individuals. Based on an assessment and selection perspective from the (...) field of human resource management, an alternative to conventional deductive-prescriptive approaches is proposed based on a pluralistic concept referred to as moral goodness. An inductive-descriptive theory-building framework is constructed based on three interrelated streams of inquiry to yield insight concerning both formal and informal instances of assessment. Recommendations are proposed for the application of the framework to future research and practice. (shrink)

This article explores managers’ ethical reasoning for behaviors in price negotiations using evidence from 15 in-depth interviews conducted with sales and purchasing representatives in the chemical industry in Germany. Applying transaction cost economics, we find that negotiators in commoditized market-like exchanges either refer to deontological norms such as not to lie, or they neglect a role for ethics, arguing that distributive negotiation is per se opportunistic. In contrast, exchanges of products with higher asset specificity lead to stronger informational integration which (...) is supported with teleological justifications. Some negotiators use teleological justification to build business on trust rather than on economic safeguards as their firm norms would require. For negotiators, our results suggest considering institutional context and adjusting ethical reasoning to the negotiation situation. Firms need to recognize and find ways to address the potential conflicts of their internal norms with their frontline managers’ attempts to act in the firms’ best economic and ethical interests. (shrink)

Unethical behavior in organizations has garnered more and more attention in the last decades but most of the scholarly work has used a static approach relying on methodological individualism and a mechanistic worldview when studying this topic. The process of moral disengagement and organizational culture have been linked to the prevalence of unethical behavior earlier, but this paper uses a complexity-informed systems perspective to explore the dynamic relationship of these concepts and aims to improve our understanding of the often unnoticeable, (...) step-by-step process through which organizational cultures can become conducive to unethical behavior. Organizations are conceptualized as complex adaptive systems in which transformative and stabilizing processes based on feedback loops take place continuously. It is discussed how these processes can lead to a phase transition driving organizations towards a state where unethical behavior is the general norm. The process is illustrated through real-life examples. (shrink)

This study investigates the connection between corporate social responsibility (CSR) and corporate reputation among the public using fuzzy set qualitative comparative analysis (fsQCA). To examine complex processes underlying the reactions of this influential stakeholder group, hypotheses are drawn from the category diagnosticity approach. Thereby, a psychological model of perceived (im)morality is transferred to the CSR context. In line with these hypotheses, positive/negative CSR activities influence reputation in the expected directions (H1a, b), while the effects of specific configurations of CSR activities (...) reveal an asymmetry suggesting a negativity bias (H2). Further analyses confirm that positive effects require a consistent positive performance regarding prior reputations (H3a) and the aggregated CSR activities of several previous years (H3b, c). Moreover, the relevant patterns vary between industries (H4). The present study thus contributes to CSR research by investigating a powerful but hitherto understudied stakeholder group through a category diagnosticity lens combined with a configurational approach to analysis. (shrink)

Qualitative studies are an important component of business ethics research. This large amount of research covers a wide array of factors and influences on ethical decision making published between 2004 and 2014. Following the methodology of past critical reviews, this work provides a synopsis of the diverse array of qualitative studies in ethical decision making within the business ethics literature. We highlight the distinct and investigative nature of qualitative research, synthesize and summarize findings, and suggest opportunities for future research. We (...) conclude with a recommendation for developing qualitative studies in business ethics and a call for an increased openness when considering this valuable and underrepresented strategy of inquiry. (shrink)

Business Ethics: A European Review, EarlyView.

The decline of empirical research on ethical decision-making based on ethical theories might imply a tacit consensus has been reached. However, the exclusion of virtue ethics, one of the three main normative ethical theories, from this stream of literature calls this potential consensus into question. This article investigates the role of all three normative ethical theories—deontology, utilitarianism and virtue ethics—in ethical decision-making of corporate executives. It uses virtue ethics as a dependent variable thus studying the interconnectivity of all three normative (...) ethical theories in specific circumstances. We find that managers use different ethical theories in different circumstances (business vs. private life, formal vs informal ethical leadership, etc.). A predictive model of ethical decision-making, however, cannot be established. We also find that only a limited number of variables influence the choice of ethical theory, which leans business ethics towards postmodern management paradigm. We suggest that moral pragmatism could provide the answer to ethical decision-making. (shrink)

This article offers an in-depth case study of a global high tech manufacturer that aligned its ethics and compliance, corporate social responsibility, and sustainability practices. Few large companies organize their responsible business practices this way, despite conceptual relevance and calls to manage them comprehensively. A communities of practice theoretical lens suggests that intentional effort would be needed to bridge meaning between the relevant managers and practices in order to achieve alignment. The findings call attention to the important role played by (...) employees who broker understanding between managers and practices, and the boundary objects used to create shared meaning and engagement. They also highlight that an organizing logic is necessary but not sufficient to align practices. This study describes the dynamics of alignment and provides a practical road map for scholars and managers interested in understanding how responsible business practices may be collectively organized. (shrink)

The study explores the challenges UK-based institutional investors face when trying to monitor investee companies and influence their social, environmental, and governance practices. Consistent with previous research, I find that misalignment of interests within the investment chain and dispersed ownership are factors which inhibit investor activism. However, other underexplored challenges include lack of investee company transparency and investor experience in activism, as well as low client demand for engagement and internal conflicts of interest. The results contribute to the literature on (...) institutional investor activism by using direct empirical evidence to systematically discuss the challenges to stewardship. Given the intensification of media and regulatory attention on shareholders in the post-global financial crisis era, coupled with investors’ growing awareness and practice of stewardship, the research opens new avenues for enquiry which go beyond the on-going debate about the monitoring versus short-termism roles of institutional investors. (shrink)

This paper introduces the concept of business-related conspiracy theories. Drawing on Aristotelian virtue ethics and undertaking a narratological and ethical analysis of 28 BrCTs found online, I emphasize that BrCTs are narratives with structures rooted in other latent macro- and meta-narratives, including centuries-old myths. In particular, I reconstruct the fictional world of BrCTs – one in which CSR and social contracts have failed – before identifying eight different types of actors as which people can morally situate themselves in their relationships (...) with business. Finally, I elaborate on the actors’ performances and their use of external and legitimate forces to end the story. The paper concludes with a discussion of potential future research to help combat BrCTs, as well as a call for the critical study of political CSR. (shrink)

This research shows how business students’ disciplinary specializations can affect their sense of personal responsibility by providing rationalizations for moral disengagement. It thereby conceptualizes business students’ disciplinary specializations as a key dimension of the business school responsibility learning environment. Students use four main rationalizations to displace responsibility variously away from their own disciplinary specializations, to claim responsibility as the prerogative of their specialization, and to shiftirresponsibility onto disciplinary out-groups. Yet despite their disciplinary identifications, students largely rationalized that their sense of (...) responsibility was an individual matter that was unlikely to be affected by contextual influences, and they attributedirresponsible behavior to incorrigible ‘bad apples.’ A theoretical model is offered which illustrates these dynamics by combining Bandura’s social cognitive theory with social identity theory. The research is based on secondary data, specifically focus-group interviews conducted with undergraduate students at a major Scandinavian business school in connection with the implementation of the UN Principles for Responsible Management Education (PRME) initiative. The implications for management education include the need to strengthen students’ ‘disciplinary reflexivity,’ and to explicitly address the tension between students’ disciplinary solidarities and their faith in their own individual moral infallibility. (shrink)

This study examines the influence of some suspected sources of bias on perceptions of public sector corruption. These sources include dependence on two types of media as information sources about corruption: traditional and social media, positive perception of public employees, and social identification with public employees. Data were collected through a face-to-face survey of the general public in South Korea. The sample comprised 472 respondents evenly dispersed across the country. Through regression analysis, we found that dependence on traditional media—but not (...) social media—significantly increased the perceived level of corruption. However, positive perceptions of and social identification with public employees were negatively associated with it, showing that these factors may skew respondents' perceptions of corruption. The results have implications for practitioners and researchers who design, implement, or evaluate anti-corruption policies, suggesting the need for caution when making use of survey results. (shrink)

Responding to the Special Issue's call for “new thinking” on gender and governance in developing societies, we introduce our research on the social organization of development knowledge and its ethical implications. Our feminist‐based approach, institutional ethnography, analyses the ruling relations of development and the standpoints represented in knowledge about development and its governance. Our paper offers an alternative to what we see as “the institutional standpoint” prevailing, but taken for granted, in business and society scholarship addressing development. Instead of theorizing (...) development relationships between institutions and their “stakeholders,” we illustrate what can be learned about the social relations of development beginning from the experiences of local subjects. Our analysis of an environmental research and development project in Uzbekistan shows that being missed is knowledge about development subjects that could have revealed what is locally relevant and needed. Instead, we discover gender inequality being constituted, unknowingly, within this project's institutionally generated knowledge and the activities it authorizes. (shrink)

This paper investigates qualitatively the significance of different dimensions of ethical organisation culture for the exercise of middle managers’ moral agency in ethical problems. The research draws on the social cognitive theory of morality and on the corporate ethical virtues model. This study broadens understanding of the factors which enable or constrain managers’ potential for moral agency in organisations, and shows that an insufficient ethical organisational culture may contribute to indifference towards ethical issues, the experiencing of moral conflicts, lack of (...) self-efficacy and morally disengaged reasoning. In contrast, a healthy ethical culture can contribute to motivation to tackle ethical problems, an increased capacity for self-regulation and ultimately ethical behaviour. (shrink)

This article draws attention to the importance of enchantment in business ethics research. Starting from a Weberian understanding of disenchantment, as a force that arises through modernity and scientific rationality, we show how rationalist business ethics research has become disenchanted as a consequence of the normalization of positivist, quantitative methods of inquiry. Such methods absent the relational and lively nature of business ethics research and detract from the ethical meaning that can be generated through research encounters. To address this issue, (...) we draw on the work of political theorist and philosopher, Jane Bennett, using this to show how interpretive qualitative research creates possibilities for enchantment. We identify three opportunities for reenchanting business ethics research related to: moments of novelty or disruption; deep, meaningful attachments to things studied; and possibilities for embodied, affective encounters. In conclusion, we suggest that business ethics research needs to recognize and reorient scholarship towards an appreciation of the ethical value of interpretive, qualitative research as a source of potential enchantment. (shrink)

Although ethical decision‐making theory has evolved over the years, within the field of management, research still revolves around James Rest’s (1986) four‐step framework, dominated by a positivist epistemology and a quantitative methodology. Given that currently there is a call for a theoretical, epistemological, and methodological renovation for the enlargement and enrichment of knowledge about how decisions are morally made in organizations, this paper has a double aim. First, by showing the models’ main flaws and limitations, it critically assesses the prominent (...) theoretical models of Rest, Trevino, and Jones. Then, for decision making in organizations, the paper aims to posit a fresh moral theory that addresses the phenomenon from a comprehensive epistemological perspective. To do so, it steps back from those prominent models in order to review John Dewey’s “theory of moral life.” At the core of the proposed comprehensive theoretical framework are Dewey’s concepts of a “moral standard” and “valuation.” Finally, the paper shows how the Dewey‐based framework can both overcome the flaws and limitations that are identified in those prominent models and can enrich empirical research, therefore contributing to developing as a whole the ethical decision‐making field. (shrink)

This study constructs a measurement scale for Socially Responsible Consumption in the particular context of Colombia. It uses a mixed qualitative and quantitative methodological approach, beginning with four focus groups and ending with a quantitative validation exercise employing Exploratory Factor Analysis. The result is a Socially Responsible Consumption measurement scale consisting of four dimensions that reflect paradigms found in the existing literature. These are, however, expressed differently in Colombia. In particular, Socially Responsible Consumption involves consumer behavior that favors corporate social (...) responsibility practices and the rational consumption of resources and products while recognizing the importance of maintaining a healthy lifestyle through healthcare. (shrink)