We empirically examine the impact of corporate social responsibility (CSR) on CEO compensation using a large sample of the US firms from 1996 to 2010. We develop and test two hypotheses, the overinvestment hypothesis based on agency theory and the conflict–resolution hypothesis based on stakeholder theory. We find that the lag of CSR adversely affects both total compensation and cash compensation, after controlling for various firm and board characteristics. Our estimates show that an interquartile increase in CSR is followed by (...) a 4.35% (2.78%) decrease in total (cash) compensation. We also find an inverse association between lagged employee relations and CEO compensation. Our results are robust to the correction for endogeneity using instrumental variable approach. Taken together, our results support the conflict–resolution hypothesis, but not the CSR overinvestment argument. (shrink)

We reflect on the nature of corporate codes of conduct is this article. Based on John Austin’s speech act theory, four characteristics of a performative concept of corporate codes will be introduced: 1) the existential self-performative of the firm identity, 2) which is demanded by and responsive to their stakeholders; 3) Because corporate codes are structurally threatened by the possibility of failure, 4) embracing the code not only consists in actual corporate responsible behaviour in light of the code, but in (...) the incessant recapturing of the code in the struggle of firms against the possible incongruence between their ethical principles and their actual responsible behaviour. A performative concept of corporate codes helps to bridge classical dichotomies like individualist versus collectivist approaches of moral agency and restrictive versus empowering ethics, and opens a new perspective on the interaction between individual ethical behaviour and the corporate institutionalisation of codes. (shrink)

Ethical leadership has become a thriving research field. However, on reviewing previous research, we argue that several fundamental questions remain unclear and need further investigation. Ethical leaders are defined as behaving ‘normatively appropriate[ly]’ :117–134, 2005), but it remains unclear what this entails. What specific behaviours does an ethical leader show? To date, ethical leadership has focused primarily on leader behaviour towards employees. Which stakeholders apart from employees are important to the ethical leader, and what kind of ethical behaviour does the (...) ethical leader show towards them? What are further antecedents and consequences of ethical leadership? We addressed these questions by qualitatively analysing interviews with 17, mostly Swiss, executive ethical leaders. The results indicate that executive ethical leaders care not only about employees but also about other stakeholders, such as customers, suppliers, owners of companies, the natural environment and society. Additionally, this study identified a broad range of executive ethical leaders’ behaviours towards these stakeholders, and, therefore, may function as a useful resource for future quantitative studies. Furthermore, we identified several antecedents of executive ethical leadership, for example ethical role models, business strategy and owner’s values, and consequences such as effects on other stakeholders than employees. Finally, our results shed more light on the processes of ethical guidance of employees. Managerial implications and avenues for further research are discussed. (shrink)

Mary Gentile’s Giving Voice to Values presents an approach to ethics training based on the idea that most people would like to provide input in times of ethical conflict using their own values. She maintains that people recognize the lapses in organizational ethical judgment and behavior, but they do not have the courage to step up and voice their values to prevent the misconduct. Gentile has developed a successful initiative and following based on encouraging students and employees to learn how (...) to engage in communication or action to express their values within an organization’s formal and informal value system. The purpose of this analysis is to examine the Giving Voice to Values approach to empowering the individual to take action to deal with lapses in organizational ethics. We examine the role of Giving Voice to Values in business ethics education, considerations for implementing GVV, and recommendations for business educators and corporate ethics officers. We conclude that while GVV is an effective tool, it is not a comprehensive or holistic approach to ethics education and organizational ethics programs. (shrink)

Many academics and world leaders have declared that there is a moral imperative to address climate change. But such claims often fall on deaf ears because the nature of the threat posed by global warming lacks many of the features of a paradigmatic moral transgression [Jamieson, Dale. 2007. The moral and political challenges of climate change. Working Paper, New York University, New York]. This paper explores these psychological obstacles to moral engagement about climate change. I argue that the temporal and (...) psychosocial distance of the threat of global warming undermines the kind of affective response that motivates moral concern. I conclude by suggesting that images focusing more on the personal and short-term consequences of global warming will generate stronger moral reactions. (shrink)

In reality, most state actors—especially those in the developing world—are usually incapable of effectively governing all facets of their territory. This has necessitated the intervention of non-state actors (in this instance, corporations), who through their social responsibility engagements act as functional equivalents to state-driven government. Using empirical data, this article evaluates the “governance” interventions of corporations in the oil industry in Nigeria’s Delta region. While arguing that the area qualifies as an area of limited statehood, the article asserts that corporate (...) social responsibility practices that are based on Western (neoliberal) approaches cannot contribute effectively to the sustainable development of host-communities. In this context, the article contends that since the social responsibility engagements of corporations in the Niger Delta (as in most developing countries) are influenced by a pro-West philosophy, the end result is a business responsibility engagement which is ineffective as a development strategy. (shrink)

Many states have significantly reduced their support for higher education in the last decade, increasing the importance of securing external funding for research and academic centers at colleges and universities. This paper addresses issues that have been raised by critics of funding from "morally tainted" sources like tobacco companies, pharmaceutical companies, and oil and gas companies and attempts to develop plausible criteria for "morally acceptable" funding in light of criticisms that focus on issues such as transparency, conflicts of interests, academic (...) and scientific integrity, and coercion. A further discussion of whether special or unique criteria are necessary for ethicists and ethics centers is also included. (shrink)