We explore themes in Nobel Prize–winning economist James M. Buchanan’s work and apply hisEthics and Economic Progressto problems facing individuals and firms. We focus on Buchanan’s analysis of the individual work ethic, his exhortations to “pay the preacher” of the “institutions of moral-ethical communication,” and his notion of law as “public capital.” We highlight several ways people with other-regarding preferences can contribute to social flourishing and some of the ways those who have “affected to trade for the public good” might (...) want to redirect their efforts. We show how Buchanan’s work has considerable implications for business ethics. Just as his economic analysis of politics changed how we understand government, we think his economic analysis of ethics can (and should) change how we understand business. (shrink)

Increasingly, frontiers between business and philanthropy seem to be blurred. Reward-Based Crowdfunding platforms contribute to this blurring of lines since they propose funders to support both for-profit and philanthropic projects. Our empirical paper explores the case of Ulule, the leading crowdfunding platform in Europe. Our results, based on a statistical analysis of more than 3000 projects, show that crowdfunding platforms foster specific kinds of relationships relying on reciprocal giving, beyond the usual opposition between altruistic and selfish motivations. We use the (...) work of Marcel Mauss to account for this process of reciprocal giving, and we argue that Maussian theory of gift can be used more generally to describe funding activities in the context of early stage entrepreneurship. (shrink)

Prior work shows that capital market participants including investors, analysts, and managers are all impacted by the prevailing level of investor sentiment. We extend this line of work by investigating whether the effects of sentiment spill over into the nonprofit sector by affecting donors’ spending to support moral causes. While donors are driven by ethical, altruistic, and other utility-maximizing motives, it is unclear whether behavioral biases stemming from sentiment would influence donors’ decisions to give. We shed light on this issue (...) using a large industry-diverse panel of over 115 thousand organization-years from 2008 to 2016. Results indicate that nonprofit organizations receive less in stock-based donations and more in cash-based donations during periods of high investor sentiment. Our inquiry separately considers cash and stock-based donations because we expect, and find, that market-related sentiment impacts these types of contributions differently. Moreover, we find that these effects are stronger for organizations with large donors, who are more closely tied to the capital markets, and therefore more susceptible to investor sentiment, as well as charitable organizations, consistent with “tug-at-the-heartstrings” type appeals inducing more emotional donation response. Taken together, the results suggest that market-wide investor sentiment impacts nonprofit organizations and the effects vary in the cross-section. (shrink)

WeChat is not only a mobile application with many innovative features but is also representative of China’s electronic revolution. It is compatible with more than 90% of smart phones and has become an indispensable tool for daily use. People are captivated by various types of WeChat voting and canvassing activities, but little research has investigated whether such voting is based on guanxi or justice. Are people truly willing to vote on WeChat? Is WeChat voting an effective means of acquaintance marketing? (...) In this research, three studies were conducted. First, 656 respondents were surveyed, and the results showed that more than 90% of WeChat users have participated in WeChat voting and that their voting behaviour is based on guanxi. Second, an online questionnaire was administered to 731 subjects, and the results were statistically analysed to determine whether voting behaviour is motivated by guanxi or by justice. The results showed that people’s behaviour deviates from their intention. Third, 676 subjects were investigated, and logistic regression was used to model and analyse the characteristics of voting participants. The many interesting findings reveal that men show more ‘empathy’ than women and that men are more likely to vote on WeChat based on reciprocity and intimacy. In addition, older people emphasize emotion, whereas students are more interested in fostering connections for the future. Inappropriate WeChat voting behaviour does not facilitate promotional marketing, damages the reputation of the company and reduces customer loyalty. These findings provide theoretical, methodological, and practical contributions to strategies for effective acquaintance marketing. (shrink)

Despite the vast academic interest in workplace helping, little is known about the impact of different types of helping behaviors on physiological and behavioral ramifications of helpers. By taking the actor-centric perspective, this study attempts to investigate the differential impacts of three kinds of helping behaviors on helpers themselves from the theory of resource conservation. To test our model, 512 Chinese employees were surveyed, utilizing a three-wave time-lagged design, and we found that caring and coaching helping were negatively associated with (...) workplace deviance, whereas substituting helping was positively associated with subsequent workplace deviance. Emotional exhaustion mediated the effects of three helping behaviors on subsequent workplace deviance. Moreover, employees' extrinsic career goals influenced the strength of the relationship between three helping behaviors and emotional exhaustion and the indirect effects of three helping behaviors on subsequent workplace deviance via emotional exhaustion. We discuss the implications of our findings for both theories and practices. (shrink)

This study adopts an intrapersonal perspective to explore how and when employees shift roles from help giver to help seeker by investigating the relationship between their help-giving and following help-seeking behavior. Based on self-regulation theory, we hypothesize two contradictory psychological processes (i.e., consistency vs. licensing) via which employees determine whether to seek help after giving help. Importantly, we differentiate autonomous help-seeking from dependent help-seeking and propose stronger effects of help-giving on dependent help-seeking. Further, we identify leader respect as a moderator (...) to solve the opposite effects of employees’ help-giving on their subsequent help-seeking indicated by the two contradictory mechanisms. Results of two field studies consistently showed that the negative (positive) relationship between help-giving and dependent help-seeking was serially mediated by personal reputation and reputation maintenance concerns (perceived increase of moral credits and help-seeking justification). Results regarding autonomous help-seeking were inconsistent and help-giving only positively affected autonomous help-seeking via perceived increase of moral credits and help-seeking justification in Study 2. Leader respect weakened the positive (in Study 1) but strengthened the negative relationship (in Study 1 and 2). We discuss theoretical implications for helping literature, self-regulation theory, and moral behavior research. (shrink)

Marketers are increasingly relying on promotional practices (variously labeled as stealth marketing, hybrid messages, covert advertising) based on the diffusion of product information by third parties that appear to be independent of advertisers. In this paper, we examine to what extent the media treat their advertisers favorably, providing these advertisers’ products extra visibility in supposedly neutral editorial content. Empirically, we model the determinant of media coverage of Italian fashion products in an extended dataset of consumer magazines in Italy, France, Germany, (...) UK, and the USA. Research findings show that advertising is an important determinant of product placements in editorial content, and this result is consistent across countries and publishers. Our results imply that resource-rich advertisers engaging in compensatory advertising (that is, advertising investments that compensate poor product quality) might bias media coverage in their favor. Consumers will consequently be exposed twice to favorable messages about those products, in both advertisements and media content, resulting in higher purchases and reduced consumer welfare. (shrink)

Corporate social responsibility is a recognised and common part of business activity. Some of the regularly cited motives behind CSR are employee morale, recruitment and retention, with employees acknowledged as a key organisational stakeholder. Despite the significance of employees in relation to CSR, relatively few studies have examined their engagement with CSR and the impediments relevant to this engagement. This exploratory case study-based research addresses this paucity of attention, drawing on one to one interviews and observation in a large UK (...) energy company. A diversity of engagement was found, ranging from employees who exhibited detachment from the CSR activities within the company, to those who were fully engaged with the CSR activities, and to others who were content with their own personal, but not organisational, engagement with CSR. A number of organisational context impediments, including poor communication, a perceived weak and low visibility of CSR culture, and lack of strategic alignment of CSR to business and personal objectives, served to explain this diversity of employee engagement. Social exchange theory is applied to help explore the volition that individual employees have towards their engagement with CSR activities, and to consider the implications of an implicit social, rather than explicit economic, contract between an organisation and its employees in their engagement with CSR. (shrink)

This paper interrogates the relation between reciprocity and ethics as it concerns participation in the world of work and organizations. Tracing discussions of business and organizational ethics that concern themselves, respectively, with the ethics of self-interest, the ethics of reciprocity, and the ethics of generosity, we explore the possibility of ethical relations with those who are seen as radically different, and who are divested of anything worth exchanging. To address this we provide a reading of Franz Kafka’s famous novella The (...) Metamorphosis and relate to it as a means to extend our understanding of business and organizational ethics. This story, we demonstrate, yields insight into the unbearable demands of ethics as they relate to reciprocity and generosity. On this basis, we draw conclusions concerning the mutually constitutive ethical limitations of reciprocity and generosity as ethical touchstones for organizational life while simultaneously accepting the seemingly insurmountable difficulties of exceeding those limits. In such a condition, we argue, ethics is not best served by adopting idealistic or moralizing positions regarding generosity but rather by working in the indissoluble tensions between self and other. (shrink)

Given that citizenship challenges the basis and workings of the basic institutions market, state, and civil society, organizational citizenship behaviors (OCBs) become an important moral tenet found in some codes of ethical principles. This study explores service-oriented OCBs and their determinants. Three dimensions of service-oriented OCBs (loyalty, service delivery, and participation) are hypothetically influenced by distributive justice, procedural justice, personal cooperativeness, and the need for social approval through the mediation of organizational commitment. The three dimensions of OCBs are hypothetically influenced (...) by personal cooperativeness, need for social approval, task interdependence, and outcome interdependence through the mediation of social network ties. The model is tested using data from contact employees at several financial holding companies in Taiwan. Test results reveal that the relationships between need for social approval and organizational commitment and those between task interdependence and social network ties are insignificant, whereas all other paths are significant. This study also provides managerial implications and limitations. (shrink)

This study seeks effective ways for managing employees with a high Machiavellian personality in organizations by identifying how to enhance their pro-organizational attitudes and behaviors [organizational citizenship behavior ] through transformational leadership. Drawing upon the dual-focused model of TFL, we suggest that exerting TFL upon employees high in Machiavellianism involves ethical dilemmas in that individual-focused and group-focused TFL have contrasting effects on leading pro-organizational attitudes/behaviors among these pro-individual employees. Analysis of data from 184 employees working in South Korea shows that (...) Machiavellianism negatively relates to affective commitment, OCB toward the organization, and OCB toward individuals, but positively to continuance commitment. More importantly, the results reveal that group-focused TFL can effectively manage employees high in Machiavellianism by mitigating the negative relations between Machiavellianism and affective commitment and between Machiavellianism and OCB-O. However, individual-focused TFL strengthens these negative relations as well as the negative relation between Machiavellianism and OCB-I. This study thus shows that to lead employees high in Machiavellianism in a pro-organizational direction, group-focused TFL rather than individual-focused TFL needs to be employed. (shrink)

This study adds to business ethics research by examining how employees’ religiosity might enhance their propensity to engage in change-oriented citizenship behavior, as well as how this effect may be invigorated in adverse organizational climates with respect to voluntarism. Two-wave survey data collected from employees in Pakistan show that change-oriented citizenship activities increase to the extent that employees can draw on their personal resource of religiosity and perceive little adversity, measured in this study with respect to whether voluntarism is encouraged. (...) Further, the relative usefulness of religiosity for spurring change-oriented citizenship behavior is particularly strong when employees experience high levels of this organizational adversity, because employees with high religiosity tend to believe that such behavior is more needed in these organizational contexts. For organizations, these results demonstrate that the energy derived from religiosity may stimulate voluntary efforts that invoke organizational change, and the perceived value of such energy allocation is greater when employees perceive organizational environments that provide little encouragement to go beyond formal job duties. (shrink)

Drawing from conservation of resources theory, this study investigates the interactive effect of employees’ family-to-work conflict and Islamic work ethic on their helping behavior, theorizing that the negative relationship between family-to-work conflict and helping behavior is buffered by Islamic ethical values. Data from Pakistan reveal empirical support for this effect. Organizations whose employees suffer resource depletion at work because of family obligations can still enjoy productive helping behaviors within their ranks, to the extent that they support relevant work ethics.

Management practices are at the heart of most organizations’ sustainability efforts. Despite the importance of values for the design and implementation of such practices, few researchers have analyzed how human values, particularly ethical values, relate to human resource management practices in organizations. The purpose of this conceptual paper is to integrate scholarship on organizational sustainability, human resource practices, and values in delineating how four specific values—altruism, empathy, positive norm of reciprocity, and private self-effacement—support effective human resource practices in organizations. This (...) set of distinct values has sustainability implications, global relevance, and ethical significance. Propositions that indicate relationships among these values, human resource practices, and organizational sustainability, as well as the effects of the resource-based view to potentiate these relationships, are developed. This analysis suggests that ethical and multicultural values are important for planning and implementing effective management practices and organizational sustainability. (shrink)

Despite the pervasive use of ethics training by companies, research in management accounting has not considered the effectiveness of such training in curtailing managers’ misreporting. This study examines the effect of ethics training on misreporting as a reminder to raise the awareness of employees’ ethical commitment. Furthermore, this study investigates the extent to which reciprocity in the workplace affects managers’ misreporting. The results from an experiment involving 124 managers show that in the absence of an ethical commitment reminder, managers are (...) more likely to engage in misreporting than when an ethical commitment reminder is present. The results suggest that ethical commitment reminder interacts with reciprocity in the workplace, affecting managers’ misreporting. Specifically, the results reveal that managers are more likely to engage in misreporting under the reciprocity in the workplace condition when the ethical commitment reminder is absent. The theoretical and practical implications of these findings are discussed. (shrink)

The concept of social capital helps to explain relations within and between companies but has not crystallized yet. As such, the nature, development, and effects of such relations remain elusive. How is social capital created, how is it put to use, and how is it maintained? Can it decline, and if so, how? We argue that the concept of social capital remains a black box as the mechanisms that constitute it remain underdeveloped and that it is a black hole as (...) many empirical phenomena are attributed to its presence. We use and develop the literature on gift exchange to provide a firmer theoretical basis for the concept of social capital. (shrink)

Organizational citizenship behaviors (OCBs) are essential for effective organizational functioning. Decisions by employees to engage in these important discretionary behaviors are based on how they make sense of the organizational context. Using fairness heuristic theory, we tested two important OCB predictors: manager trustworthiness and interactional justice. In the process, we control for the effects of dispositional factors (propensity to trust) and for system-based organizational fairness (procedural and distributive justice). Results, based on surveys collected from 120 employee–supervisor dyads, indicate that manager (...) trustworthiness explains variance in OCBs over and above the variance accounted for by interactional fairness. Implications for theory and practice are discussed. (shrink)