An empirical study indicates how close advertisers from all the continents have been from the natural law and other fundamental moral principles. In their professional activities, many advertisers assumed the philosophical relativism as the framework for fundamental concepts. The ethical problems have not been equated with objectivity and the realist approach is appointed as a solution.

Firms that wish to be morally responsible in providing products that meet a high standard of safety may face problems competing against firms that make unsafe products and sell these products at cheap prices; these problems may be compounded when consumers do not accurately process information about safety and risk. This paper presents a conceptual argument that the tort system may serve to promulgate information which makes it feasible for firms to market safe products even in the face of these (...) competitive obstacles.To corroborate the conceptual argument, the paper presents the results of an experimental study about the impact of negligence liability information on consumer product safety evaluation. The results show that provision of negligence information heightens consumer concern for safety and firms' ethical behavior, and increases the proportion of consumer choices in favors of the brands sold by manufacturers with a favorable track record for quality. More importantly, they indicate that provision of negligence information reduces the likelihood that brands which conform to inferior safety standards will be chosen by consumers who care about safety standards. (shrink)

The paper offers a point of view on credibility of eco-labeled products, analyzing the relationships among company’s sustainable strategy, eco-label and no-financial reports. Based on a cross-sector study of 109 companies with the EU-Eco-label licenses in Italy, the paper points out different behaviors among the companies investigated and explains the leadership of Italy in the number of these licenses. However, the paper underlines that the use of sustainability tools is not always matched to the explanation of companies’ sustainable strategies. The (...) study identifies the significant drivers for the management of eco-label within a sustainability strategy, drawing attention to the weight, and the hierarchical level of different decisions about sustainability. This study contributes to strengthening the understanding, promoting a discussion on the use of eco-label and on its value, and describing a desirable behavior that any company should tend in order to nourish the credibility that is an essential aspect for building strong associations with the brand. (shrink)

Ethical business practices have been widely prescribed, but why? Consumers views on unethical business practices have been studied, but possibly more important to marketers and researchers are consumer actions and reactions to unethical business practices and the businesses themselves. Do consumers react negatively, or in such a way as to "punish" the unethical business? If so, what is the nature and extent of the punishment? This research seeks answers to these questions by examining consumer reactions, such as complaining and switching, (...) to instances of unethical business practices. Using equity theory, this research proposes that consumers should be willing to tolerate some unethical behavior as long as they feel their investments and outcomes remain proportionately equal. Consumers who perceive that their outcome/investment ratio is proportionately unequal to their comparison other will respond by switching or complaining. In this research consumers were exposed to two types of service failures with different levels of service recovery in vignettes. Costs incurred by the consumer during the service transaction were also manipulated in the vignettes. Significant differences were found for complaint behavior in the failure recovery vignettes tested. Specifically, voice complaint was higher in the high cost service encounters in both types of services tested. The recovery attempt used (ethical, unethical, or none) led to significance differences in the variables of complaint, voice complaint, satisfaction, and quality. Higher satisfaction and quality ratings were found for the ethical recovery attempt and higher intentions to use complaint and voice complaint in the unethical recovery attempts. One significant interaction between cost and recovery attempt was found. Intentions to use voice complaint were higher in the high cost situations of ethical and unethical recovery, while approaching equality at the no recovery attempt. (shrink)

Many firms are striving to improve their environmental positions by presenting their environmental efforts to the public. To do so, they are applying green marketing strategies to help gain competitive advantage and appeal to ecologically conscious consumers. However, not all green marketing claims accurately reflect firms’ environmental conduct, and can be viewed as ‘greenwashing’. Greenwashing may not only affect a company’s profitability, but more importantly, result in ethical harm. Therefore, this research extends past greenwashing studies by examining additional influences on (...) and outcomes of perceived greenwashing. To do so, we conducted two studies, an interview study with consumer product and consulting firms, as well as an experiment examining consumers interacting with a company website. For these studies, we used multiple methods, including interviews, questionnaires, and neurophysiological techniques. We found that perceived greenwashing relates not only to environmental and product perceptions, but also to consumers’ happiness while interacting with the website. We also found that website interactivity relates to perceived greenwashing, environmental and product perceptions, and to the amount of interaction with the website. We conclude by discussing managerial and ethical implications for research and practice. (shrink)

Ethical leadership has so far mainly been featured in the organizational behavior domain and, as such, treated as an intra-organizational phenomenon. The present study seeks to highlight the relevance of ethical leadership for extra-organizational phenomena by combining the organizational behavior perspective on ethical leadership with a classical marketing approach. In particular, we demonstrate that customers may use perceived ethical leadership cues as additional reference points when forming purchasing intentions. In two experimental studies, we find that ethical leadership positively affects purchasing (...) intentions because of customers’ concerns for moral self-congruence. We show this by means of both mediation and moderation analyses. Interestingly, the effect of perceived ethical leadership on purchasing intentions holds over and above the ethical advertising claims that are commonly used in marketing. We conclude by discussing the possible ramifications of ethical leadership beyond its effects on immediate employees. (shrink)

Although performance pressure has desirable consequences, there is evidence that it can produce unintended outcomes as employees tend to engage in dysfunctional and unethical behaviors to meet performance goals. Thus, the process through which employees think and behave unethically under performance pressure deserves more research attention. This study goes beyond the stress-appraisal perspective and investigates whether and when performance pressure influences individual work mindsets and behaviors from a moral reasoning perspective. Specifically, we contend that performance pressure is related to employee (...) expediency through moral decoupling. We further hypothesize dialectical thinking and moral identity to be the boundary conditions of the proposed relationships. Analyses of data from a field study in three waves provide support for most of the hypotheses. In particular, we find that moral decoupling accounts for additional variance after we control for the stress-appraisal effect of performance pressure on employee expediency. The study offers several contributions to the literature on performance pressure and unethical behavior. (shrink)

Governmental policies are encouraging companies to reduce the environmental impact of their packaging and particularly overpackaging, which raises a broad range of ethical considerations. However, experiments comparing an overpackaged product with a non-overpackaged product have shown that eliminating overpackaging may have a negative influence on brand image and consumer purchase intention. In this paper, we draw on attribution theory to examine the influence of the absence of overpackaging on consumers’ response, depending on their environmental consciousness and the absence of overpackaging (...) on the competing product. An experiment conducted on 218 consumers demonstrates that non-overpackaging for a target product only adversely affects purchase intention among non-environmentally conscious consumers when competing products are overpackaged. These results lead to optimistic recommendations for marketing managers and public policy makers to help them solve the ethical dilemma linked to overpackaging. (shrink)

Abstract:In recent years, many business ethicists have raised problems with the “ethics pays” credo. Despite these problems, many continue to hold it. I argue that support for the credo leads business ethicists away from a potentially fruitful approach found in Hume’s moral philosophy. I begin by demonstrating that attempts to support the credo fail because proponents are trying to provide an answer to the “Why be moral?” question that is based on rational self-interest. Then, I show that Hume’s sentiments-based moral (...) theory provides an alternative to the credo that points toward a more fruitful approach to business ethics. Along the way, I examine a recent social contract alternative to the credo that, despite many appealing features, is less effective than is the Humean alternative. Finally, I develop a Humean approach to business ethics and demonstrate why it is a desirable alternative that business ethicists should explore. (shrink)