The ethical behavior prevalent in an organization often determines business success or failure. Much research in the business context has scrutinized ethical behavior, but there are still few insights into its roots; this study furthers this line of inquiry. In line with identity work theory, we examine how employees’ identification with a family business shapes internal ethical decision-making processes. Because it is individuals who engage in decision-making—be it ethical or not—our research perspective centers on the individual level. We followed an (...) inductive, qualitative approach and conducted interviews with 19 employees in seven family businesses. We found that individuals engage in identity work when they identify as individual family firm employees and when they identify with the perceived characteristics of the family firm. These processes of identification, in turn, influence how employees cope with ethical situations. Our findings contribute to ethics and family business research, as well as to identity theory. (shrink)

Social enterprises combine activities, processes, structures, and meanings associated with multiple institutional logics that may pose conflicting goals, norms, values, and practices. This in-depth multi-source case study of an ecological social enterprise in Malaysia reveals how the enactment of the family logic interacts with the market and ecological logics not only in conflicting but also in synergetic ways. By drawing attention to the institutional logic of the family in social entrepreneurship, this study highlights the heterogeneity of social enterprises. The findings (...) have implications for research with social enterprises and family-owned firms in relation to the ethical obligations of these organizations and the interactions of multiple logics. (shrink)

When this study was initiated in 2008, the concept of family social capital was new to the family business discipline. This paper summarizes in-depth qualitative research grounded in owning family experience to understand the nature and source of owning family social capital. _Exploratory research_ began with roundtable discussions among family business owners, advisors, and researchers to understand how owning families sustain positive relationships characteristic of family social capital. These discussions revealed that some family business owners rely on their family faith (...) to sustain and establish ethical norms. A follow-up review in the family studies literature revealed that many families rely on family faith practices and faith-based narratives to reinforce ethical norms that strengthen family relationships. Based on these findings, researchers developed hypotheses to guide additional research. Four owning families affiliated with different Christian denominations participated in _in-depth qualitative research_ that supports hypotheses. Interviews and archival data revealed very similar faith-based practices, beliefs, and values across the four owning families. And additional qualitative evidence indicated positive connections between values-based family social capital and family owner succession, business performance, and community support. Theoretical relationships derived from qualitative data are summarized in a Faith-Based Values Theory of Family Business. (shrink)

In contrast to the conventional fund management industry with a profit-oriented logic based on risk and return, ethical and faith-based funds should follow the religious principles of their investment-style philosophy. Islamic funds should obey the theological teachings of the primary sources of Islam, the Quran and Sunnah, as stakeholders expect these religious teachings to influence the investment decisions of fund managers. In practice, Islamic fund managers use Accounting and Auditing Organization for Islamic Financial Institutions ’s screening criteria, based on secondary (...) sources of Islam, which allow investments that are only partially halal to be included in their portfolios. This study finds that a more religious logic in screening practices, although impairing diversification, does not necessarily harm performance. Thus, Islamic investment funds, and the wider ethical fund management industry, should, and could, adopt stricter screening criteria that match their investment mandates and bring more ethical business practices to the industry. (shrink)

Business Ethics: A European Review, EarlyView.

This article discusses the ethics and drivers of philanthropic foundations in emerging markets. A foundation organizes assets to invest in philanthropic initiatives. Previous scholarship has largely focused on developed countries, especially the United States, and has questioned the ethics behind the activities of foundations, particularly for strategic motives that served wider corporate purposes. We argue that philanthropic foundations in emerging markets have distinctive characteristics that merit separate examination. We scrutinize the ethics behind the longitudinal activity of such foundations using 70 (...) oral history interviews with business leaders in 18 countries in Africa, Asia, Latin America, and the Middle East. We find that 55 out of 70 foundations associated with these leaders have been used as vehicles for a specific type of philanthropic ethics defined as “spiritual philanthropy”. These foundations often embodied personal or family traditions, culture, and religious values, which emphasized charitable giving and social responsibility. As in the case of many of the industrial foundations in Europe, these foundations also carried founding family names and provided a structure to maintain family control and enhance corporate reputation. We argue that, as business leaders in emerging markets are more directly exposed to dire social, educational and health deprivation than their counterparts in developed countries, they are less inclined toward grandiose world-making, and their foundations are more focused on delivering immediate benefits to communities in their home countries, motivated by implicit or explicit spirituality. (shrink)

Small and medium-sized enterprises (SMEs) play a critical role in the green economy due to their significant environmental footprint. Because more than 84% of the world’s population identifies with a religion, most SME top-executives are likely to identify with a religion that would influence their decision-making. Despite these recent advances, prior studies have focused on SMEs’ external drivers and did not consider the role of internal drivers, such as the characteristics of SMEs’ top-executives, in influencing green marketing strategy. We aim (...) to address this gap by focusing on religious identification as a key driver of green marketing by SMEs. Specifically, we examine the effects of top-executives’ religious identification on strategic green marketing orientation (SGMO), and how such effects are moderated by political ideology. Using respondents comprised of CEO and/or owner-managers of SMEs in the US, the results show empirical evidence supporting the importance of religious identification in influencing green marketing decisions. Moreover, we found that the effects of religious identification on SGMO are more pronounced among top-executives with Conservative ideology. (shrink)

The extent and mechanisms through which religion intertwines with decision-making processes in family firms remain inadequately understood. Family firm owners, driven by their commitment to ethical business practices and the safeguarding of their socioemotional wealth, actively seek cues to inform their decision-making processes. This research demonstrates that, among these guiding cues, top-level executives’ perceived religiosity emerges as a relevant factor. Building upon the socioemotional wealth perspective and conducting a longitudinal analysis based on listed family firms between 2009 and 2018, our (...) findings reveal a positive association between family voting rights and the presence of board members perceived to be religious. Furthermore, this relationship is less pronounced if family firms operate in industries with high research and development intensity. Our study confirms that boards with high shares of religiously perceived directors are positively associated with the appointment of chief executive officers perceived to be religious during succession events. We thereby present a unique perspective that acknowledges perceived religiosity as a micro-level constituent shaping board membership and successor selection. This investigation captures the intricate interplay between religion and family firms under a socioemotional wealth umbrella, offering important insights to the family business ethics discourse. Our research also offers practical implications for board and leadership diversity management in family firms. (shrink)

Ethical issues in family businesses become increasingly relevant for businesses, societies and, consequently, organization scholars which manifests in a growing number of publications in the field over the years. Considerable knowledge generated in the area needs to be systematically structured and synthesized. This study reviewed 162 articles published over the last three decades (1989–2023) to map the intellectual and conceptual structure, and future research opportunities in the family business ethics field. Co-citation analysis highlighted four main groups of scholars influencing the (...) field. The bibliographic coupling distinguished five thematic clusters: succession, religion and goodwill, entrepreneurship and innovation, ethical dilemmas, and values and ethical behavior. Sentiment analysis revealed that scholars explored more positive than negative terms associated with family business ethics. Finally, co-occurrence network analysis suggested the emerging keywords and potential research questions, organized into five research themes, for further development of the family business ethics field. (shrink)

The goal of this study is to reveal which contextual factors can shape ethical behaviour and decision-making in family firms (FFs), with the aim to uncover emerging themes that help set the stage for future work on FF ethics. To do so, we conducted an integrative literature review. By systematically collecting, reviewing 90 studies and synthesizing their key findings with prior theoretical foundations in the FF field, we demonstrate how personal and family values, preservation of socioemotional wealth, generation succession and (...) structural factors (e.g. FF size, FF life cycle) can affect ethical decision-making in FFs. We also provide propositions and research pathways to orient future studies. (shrink)