For this issue of JBE, Zyphur and Pierides :1–16, 2017) have written a paper on a concept that they have labeled relational validity. The purpose of the paper and of their advocacy for the concept of relational validity is to improve the way that quantitative research is done by expanding our understanding of its ethics-laden aspects. I agree entirely with the authors that every decision regarding QR is an ethics-laden one and that our research as a whole would be improved (...) by recognition of this fact. I disagree with the authors regarding some of the ways that this improvement might be brought about. (shrink)

Arguing that psychology and business ethics are best brought together through a multi-level, broad-based agenda, this essay articulates a vision of psychology and business ethics to frame a future research agenda. The essay draws upon work published in JBE, but also identifies gaps where published research is needed, to build upon psychological conceptions of business ethics. Psychological concepts, notably, are not restricted to phenomena “in the head”, but are discussed at the intra-psychic, relational, and contextual levels of analysis. On the (...) basis of this presentation, I discuss future directions for development in psychology and business ethics, including but not limited to studies of personality, emotion, decision making, motivation, and the biological bases of psychology and business ethics. An inclusive approach to these and related areas, it is argued, will both bring about depth of understanding on the psychological bases of business ethics, and allow dialogue across disciplinary areas within JBE. (shrink)

While researchers in business ethics, moral philosophy, and jurisprudence have advanced the study of corporate agency, there have been very few attempts to bring together insights from these and other disciplines in the pages of the Journal of Business Ethics. By introducing to an audience of business ethics scholars the work of outstanding authors working outside the field, this interdisciplinary special issue addresses this lacuna. Its aim is to encourage the formulation of innovative arguments that reinvigorate the study of corporate (...) agency and stimulate further cross-fertilization of ideas between business ethics, law, philosophy, and other disciplines. (shrink)

Recent research indicates that environmentally responsible stakeholders’ green needs and practices effectively enhance substantive or symbolic corporate environmental responsibility. However, few studies have noted the potential for these green needs and practices to backfire. We integrate moral licensing theory and upper echelons theory to develop a theoretical framework. This framework can predict the differential effects of stakeholders’ green needs on corporate green innovation, contingent on the moral credits that these needs confer upon executives. The evidence comes from the practice of (...) green bond issuance by listed firms and a quasi-natural experiment of China’s environmental tax policy. We find that a 1% increase in the regional environmental protection tax is associated with a 0.036% decrease in a firm’s green innovation. Conversely, a 1% increase in green bond issuance corresponds to a 0.020% increase in a firm’s green innovation. Moreover, these effects are enhanced when managerial discretion is high and mitigated in firms with prosocial executives. Our findings suggest that executives engage in moral mental accounting/balancing, and thus treat stakeholders’ green needs differently. (shrink)

Deferred prosecution agreements (DPAs) are legal means, alternative to trial, for the resolution of criminal business cases. Although DPAs are increasingly used in the US and are spreading to other jurisdictions, the ethics of DPAs has hardly been subjected to critical scrutiny. We use a multidisciplinary approach straddling the line between philosophy and law to examine the ethics of DPAs used to resolve cases of multinational enterprises’ (MNEs) foreign corruption. Deontologically, we argue that the normativity of DPAs raises critical concerns (...) related to the notion of justice as punishment, with serious cases of international corruption resolved with minimal retribution for offending MNEs. Taking a utilitarian ethical perspective, we also evaluate the effect of DPAs on MNEs’ tendency to self-regulate or re-offend. Our conclusion, supported by critical analysis of the juridical literature and case evidence on MNEs’ recidivism, is that DPAs do not foster ethical behavior. (shrink)

Metrics shape our social worlds in many and more ways. Everyday quantifications of our preferences, our behaviors and our relationships, alter us and the institutions that we constitute. This essay takes a brief look at the metrics of business ethics through two analytic devices. Representation explains the notion that metrics can capture or demonstrate ethics and performativity explains the notion that metrics can shape or constitute ethics. The analytic distinction between representation and performativity is obscured in practice when metrics become (...) targets, indeed much of the social power of metrics comes from their use as targets. Hence, we should pay attention to the world of practice in which measuring and doing are entangled. However, we should not lose sight of the limitations of measurement and the possibility that there are areas of ethical life best left unmeasured. (shrink)

This study examines whether and how a CEO’s personal traits (gender, altruism, age, and founder) influence organizational performance. Building upon upper echelons theory, this study develops a conceptual framework that gives explicit recognition to how the institutional environment surrounding the CEOs shapes their characteristics, which, in turn, are reflected in the different organizational strategies and performance. This study moves beyond the existing focus on for-profit corporations and conducts the empirical analysis on a novel, hand-collected, longitudinal dataset of 1342 firm-year observations (...) of 128 faith-based charity organizations operating in a major developing, Muslim-majority country in the period 1996–2019. This study reveals that those faith-based charity organizations led by CEOs with specific personal traits (woman, altruistic, young, and founder) exhibit better organizational performance. Importantly, CEOs’ personal traits, however, do not have a uniform, systematic effect; their effect is generally strengthened when the CEO is also the founder of the faith-based charity organization, given the greater latitude of managerial discretion that a CEO has in managing the organization. Our findings have important implications for individual charity organizations; their board of directors; and their stakeholders, in particular the communities they serve, as well as the whole society where they operate. (shrink)

In business as elsewhere, “ugly people” are treated worse than ”pretty people.” Why is this so? This article investigates the ethics of aesthetic injustice by addressing four questions: 1. What is aesthetic injustice? 2. How does aesthetic injustice play out? 3. What are the characteristics that make people being treated unjustly? 4. Why is unattractiveness (considered to be) bad? Aesthetic injustice is defined as unfair treatment of persons due to their appearance as perceived or assessed by others. It is plays (...) out in a variety of harms, ranging from killing (genocide), torture, violence, exclusion (social or physical), discrimination, stigmatization, epistemic injustice, harassment, pay inequity, bullying, alienation, misrecognition, stereotyping, and to prejudice. The characteristics that make people treated unjustly are (lack of) attractiveness, averageness, proportion, and homogeneity. Furthermore, prejudice, psychological biases, logical fallacies, and unwarranted fear of disease are some reasons why unattractiveness is (considered to be) bad. In sum, this study synthesizes insights from a wide range of research and draws attention to aesthetic injustice as a generic term for a form of injustice that deserves more systematic attention. Having a definition, description, and explanation of the concept makes it easier to target the problems with aesthetic injustice. As the business world is an arena of ubiquitous aesthetic injustice business ethics can take the lead in identifying, explaining, and addressing the problem. (shrink)

In business as elsewhere, “ugly people” are treated worse than ”pretty people.” Why is this so? This article investigates the ethics of aesthetic injustice by addressing four questions: 1. What is aesthetic injustice? 2. How does aesthetic injustice play out? 3. What are the characteristics that make people being treated unjustly? 4. Why is unattractiveness (considered to be) bad? Aesthetic injustice is defined as unfair treatment of persons due to their appearance as perceived or assessed by others. It is plays (...) out in a variety of harms, ranging from killing (genocide), torture, violence, exclusion (social or physical), discrimination, stigmatization, epistemic injustice, harassment, pay inequity, bullying, alienation, misrecognition, stereotyping, and to prejudice. The characteristics that make people treated unjustly are (lack of) attractiveness, averageness, proportion, and homogeneity. Furthermore, prejudice, psychological biases, logical fallacies, and unwarranted fear of disease are some reasons why unattractiveness is (considered to be) bad. In sum, this study synthesizes insights from a wide range of research and draws attention to aesthetic injustice as a generic term for a form of injustice that deserves more systematic attention. Having a definition, description, and explanation of the concept makes it easier to target the problems with aesthetic injustice. As the business world is an arena of ubiquitous aesthetic injustice business ethics can take the lead in identifying, explaining, and addressing the problem. (shrink)

Abraham’s “leadership by example” provides a template for business leaders to implement a tone at the top based on a balance of tzedek (righteousness) and mishpat (legal judgement). The former expresses the generosity of spirit required of leaders, while the latter expresses the sound judgement in conformity with both ethics and enacted law. We relate the two constructs to several contemporary theories of justice and jurisprudence. We also relate the development of Abrahamic Justice in the Jewish tradition from antiquity through (...) Maimonides in the middle ages. We draw insight from this tradition to answer a contemporary business ethics question: Do corporate managers violate their fiduciary duty to shareholders if they refuse to engage in legal tax avoidance? (shrink)

It is becoming clear that many of today’s management theories are inadequate theoretically and practically to move understanding, scholarship, and practice to where it needs to be for scholars, business leaders, and policy makers to cope with an increasing fraught world. This Special Issue’s focus is on sustainability. Sustainability challenges need to incorporate multidisciplinary interventions and the trans- and interdisciplinary nature of solutions. To actively seek transformation toward sustainability, fundamental and innovative short-term as well as long-term efforts are required in (...) society, economy, technology, and education, including our understanding of human behavior and attitudes toward the management of the environment. This introductory piece presents natural science theories as a promising approach for achieving progress toward transformation for sustainability. (shrink)

This paper proposes a teaching alternative that can encourage the ethical reflective sensibility among students of social entrepreneurship. It does so by exploring the possibility of using religious parables as narratives that can be analysed from Ricoeur’s hermeneutics to provoke and encourage ethical discussions in social entrepreneurship courses. To illustrate this argument, the paper makes use of a parable from the New Testament as an example of a religious narrative that can be used to prompt discussions about social entrepreneurs’ ethical (...) dilemmas. The paper adds to the limited works that consider the teaching of ethics within social entrepreneurship education. It also advances studies that seek alternative strategies to teaching ethics in business contexts, making these strategies discernible for discussion within the broader business and management literature. (shrink)

Research to date provides only limited insights into the processes of abusive supervision, a form of unethical leadership. Leaders’ vulnerable narcissism is important to consider, as, according to the trifurcated model of narcissism, it combines entitlement with antagonism, which likely triggers cognitive and affective processes that link leaders’ vulnerable narcissism and abusive supervision. Building on conceptualizations of aggression as a self-regulatory strategy, we investigated the role of internal attribution of failure and shame in the relationship between leaders’ vulnerable narcissism and (...) abusive supervision. We found across three empirical studies with supervisory samples from Germany and the United Kingdom (UK) that vulnerable narcissism related positively to abusive supervision (intentions), and supplementary analyses illustrated that leaders’ vulnerable (rather than grandiose) narcissism was the main driver. Study 1 (N = 320) provided correlational evidence of the vulnerable narcissism-abusive supervision relationship and for the mediating role of the general proneness to make internal attributions of failure (i.e., attribution style). Two experimental studies (N = 326 and N = 292) with a manipulation-of-mediator design and an event recall task supported the causality and momentary triggers of the internal attribution of failure. Only Study 2 pointed to shame as a serial mediator, and we address possible reasons for the differences between studies. We discuss implications for future studies of leaders’ vulnerable narcissism as well as ethical organizational practices. (shrink)

To commemorate 40 years since the founding of the Journal of Business Ethics, the editors-in-chief of the journal have invited the editors to provide commentaries on the future of business ethics. This essay comprises a selection of commentaries aimed at creating dialog around the theme Bringing Excitement to Empirical Business Ethics Research (inspired by the title of the commentary by Babalola and van Gils). These editors, considering the diversity of empirical approaches in business ethics, envisage a future in which quantitative (...) business ethics research is more bold and innovative, as well as reflexive about its techniques, and dialog between quantitative and qualitative research nourishes the enrichment of both. In their commentary, Babalola and van Gils argue that leadership research has stagnated with the use of too narrow a range of perspectives and methods and too many overlapping concepts. They propose that novel insights could be achieved by investigating the lived experience of leadership (through interviews, document analysis, archival data); by focusing on topics of concern to society; by employing different personal, philosophical, or cultural perspectives; and by turning the lens on the heroic leader (through “dark-side” and follower studies). Taking a provocative stance, Bal and Garcia-Lorenzo argue that we need radical voices in current times to enable a better understanding of the psychology underlying ethical transformations. Psychology can support business ethics by not shying away from grander ideas, going beyond the margins of “unethical behaviors harming the organization” and expanding the range of lenses used to studying behavior in context. In the arena of finance and business ethics, Guedhami, Liang, and Shailer emphasize novel data sets and innovative methods. Significantly, they stress that an understanding the intersection of finance and ethics is central to business ethics; financial equality and inclusion are persistent socio-economic and political concerns that are not always framed as ethics issues, yet relevant business policies and practices manifest ethical values. Finally, Charles Cho offers his opinion on the blurry line between the “ethical” versus “social” or “critical” aspects of accounting papers. The Journal of Business Ethics provides fertile ground for innovative, even radical, approaches to quantitative methods (see Zyphur and Pierides in J Bus Ethics 143(1):1–16, https://doi.org/10.1007/s10551-017-3549-8, 2017), as part of a broad goal of ethically reflecting on empirical research. (shrink)

This study examines the role of foreign institutional ownership in corporate social responsibility (CSR). Using the Shanghai-Hong Kong Stock Connect as a quasi-natural experiment, our difference-in-differences estimation shows that foreign institutional ownership drives firms’ CSR corporate social responsibility. Further, the positive effect of foreign institutional ownership on CSR is motivated by foreign institutional investors shifting the stakeholders’ logics about social responsibility, not by profit maximization. We also provide evidence that this effect of foreign institutional ownership on CSR is more pronounced (...) among firms with fewer political connections and with non-overconfident CEOs. Overall, our results indicate that foreign institutional investors transmit social norms and shift stakeholders’ logics regarding social responsibility and, in turn, propel firms to improve CSR to satisfy their stakeholders’ expectations. (shrink)

Governments, institutions, and brands try various intervention strategies for countering growing cyberbullying, but with questionable effectiveness. The authors use hypocrisy induction, a technique for subtly reminding consumers that they have acted contrary to their moral values, to see whether it makes consumers more willing to support brand-sponsored anti-cyberbullying CSR campaigns. Findings demonstrate that hypocrisy induction evokes varying reactions depending on regulatory focus, mediated by guilt and shame. Specifically, consumers who have a dominant promotion (prevention) focus feel guilt (shame), which motivates (...) them to overcome their discomfort by supporting (avoiding) an anti-cyberbullying campaign. Moral regulation is drawn as a theoretical underpinning to explain various consumer reactions to hypocrisy induction, the moderating role of regulatory focus, and mediating role of guilt and shame. The research contributes to the literature and provides practical implications by explaining when and why brands can use hypocrisy induction to persuade consumers to support social causes through the lens of moral regulation theory. (shrink)

This study examines the impact of non-executive employee stock ownership plans (ESOP) on corporate environmental engagement. We show that granting ESOPs to non-executive employees promotes greater corporate ecological engagement from the perspectives of environmental protection expenditures, environmental information disclosure quality, and environmental, social, and governance (ESG) ratings. ESOPs unite members in a common interest, empowering them to put pressure on management to reduce carbon emissions, which benefits their physical wellbeing and increases their residual interest in long-term corporate wealth. Further, our (...) analysis reveals that companies investing in environmental protection forgo short-term profit as a consequence of high initial costs, while increasing long-term firm value. These positive effects are attributable to ESOP schemes with higher employee subscription rates, those granted to a larger number of non-executive employees, and those with longer validity periods of ownership, whose incentive effect is sufficiently powerful to offset the free-rider problem. In addition, the impact of ESOPs is more pronounced in companies with greater media exposure, those confronting intense labor market competition, and those in heavily polluting industries. Fundamentally, our study provides novel evidence of the incentive effect of ESOPs on corporate environmental engagement and of stakeholder dynamics driving the implementation of carbon reduction strategies. (shrink)

As environmental issues have become increasingly prominent around the world, corporate environmental responsibility has begun to attract more attention. As the decision-makers of firms, top executives play an important role in the environmentally ethical behavior of their corporations. Few studies, however, have explored the motivations behind corporations’ environmentally responsible behavior from the perspective of how CEOs’ early experiences shape their decisions. This paper explores the impact that CEOs who experienced the Send-down movement have on their companies’ environmentally responsible behavior and (...) the boundary conditions of this impact from the perspective of the imprinting theory. Based on the data of listed Chinese companies from 2009 to 2020, we have found that CEOs who were themselves “Sent-down youth” have a positive impact on corporate environmental responsibility. For firms with a higher proportion of state ownership and CEOs with Chinese Communist Party membership, the relationship between experience with the Send-down movement and corporate environmental responsibility is strengthened, whereas a higher level of market competition weakens the relationship. This article enriches and deepens the research on the imprinting theory, and it also has certain practical implications for firms that hire top executives with unique types of early experiences to promote business ethics improvement. (shrink)

This study explores how being satisfied with one’s life as an entrepreneur is a crucial ethical and psychological outcome of early volition and, subsequently, a vital resource in the development of a richer eudaimonic experience from entrepreneurship. We develop and test our predictions based on two independent datasets: American and Swedish business owners and early stage entrepreneurs. We argue and demonstrate that satisfaction with life as an entrepreneur conveys a distinct state of entrepreneurial well-being and constitutes a crucial self-evaluation which (...) mediates the effects of early volition in entrepreneurship on long-term eudaimonia. We contribute to the emerging conversations on entrepreneurship, business ethics, and well-being. (shrink)

Extant studies have shown that socially responsible human resource management (SRHRM) brings beneficial effects on employees’ work outcomes. However, little attention has been given to the effect of SRHRM on employee resilience from a balanced perspective. This study draws on conversation of resources theory to examine how and when SRHRM influences employee resilience from a balanced perspective. Using two scenario-based experiments and one multi-wave field study, results show that SRHRM can enhance employee resilience by increasing work meaningfulness, but it can (...) also deplete employee resilience by draining resources. Moreover, organization-set performance goal weakens the positive relationship between SRHRM and employees’ work meaningfulness. Organization-set performance goal also magnifies the positive relationship between SRHRM and employees’ resource depletion. This study presents theoretical and practical implications on how organizations can precisely promote employee resilience. (shrink)

A recent conference had as a theme, Ethics in the Fractured State. That theme presumes that there is a fractured state – if not everywhere then somewhere, if not now, then soon. This paper looks at the nature of the fracture and at the implications for the teaching of ethics. Three important lines of fracture – plural, secular, anti-business – are considered in the paper, each described and distinguished separately. The fracture makes ethics more relevant not only in business schools (...) but also in professional faculties such as engineering and pharmacy. The recent rise in anti-business sentiment and its potential impact for the teaching of ethics, especially business and professional ethics, is discussed. The focus is on the implications for the teaching of applied ethics. (shrink)

We examine three business-related initiatives designed to achieve peace positive impacts in the Cape Town township of Langa. Each was seemingly straightforward in its purpose, logic, and implementation. However, their positive intent was frustrated and their impacts ultimately harmful to their articulated goals. Understanding why this is so can be difficult in violent, turbulent, and information-poor environments such as Langa, confounding progress even by actors with ethical intentions. To aid in sense making and to provide insight for more positive future (...) action, we develop from 125 interviews conducted for this study causal loop models for these initiatives within their conflict subsystems. These explain the perverse impacts of these initiatives by illuminating their (lack of) salience to key conflict factors, their (in)sufficiency to effect positive change in light of competing systems dynamics, and their (in)attentiveness to interdependencies with the intentions and actions of others. We thus contribute to understanding of the factors required to achieve positive social outcomes in more extreme contexts. More generally, we demonstrate the value of systems analysis both for scholarship related to business and peace and for reducing blind spots that can inhibit sound planning for ethical business action amidst complexity. (shrink)

This study explores the ways in which trust deficit undermines anti-corruption initiatives in a context with systemic corruption. Anti-corruption measures as panacea to systemic corruption are not new, but their effectiveness is debatable. Whilst understanding the causal relationship between corruption and trust remains germane to fighting corruption, a growing number of recent studies advocate better context sensitivity in developing anti-corruption initiatives. Consistent with this, we unpack the perceptions of a significant section of the population in which corruption is rampant to (...) identify factors that could enhance trust in the effectiveness of anti-corruption measures. Using commentaries from Nigerian Netizens on two critical corruption incidents that are significant to corporations, we uncover poignant narratives of perception of incompetence, dishonesty and confusion that undermine the anti-corruption measures in the context. We argue that donors, international organisations and businesses must encourage and support beneficiaries’ governments to secure and sustain trust in the anti-corruption initiatives as a condition for better results. (shrink)

In mainstream business and economics, prizes such as the Presidential Medal of Freedom are understood as special types of incentives, with the peculiar features of being awarded in public, and of having largely symbolic value. Informed by both historical considerations and philosophical instances, our study defines fundamental theoretical differences between incentives and prizes. The conceptual factors highlighted by our analytical framework are then tested through a laboratory experiment. The experimental exercise aims to analyze how prizes and incentives impact actual individuals’ (...) behavior differently. Our results show that both incentives (monetary and contingent) and prizes (non-monetary and discretional rewards) boost motivation to perform if awarded publicly, but only prizes crowd in motivation promoting virtuous attitude. (shrink)

Building from an interactionist view of ethics, this study sought to integrate individual and contextual factors for understanding ethical perceptions in teams. Given the proximal nature of team members, this study specifically explored how individuals comparatively evaluate their own ethical behaviors and team members’ ethical behaviors to arrive at a perception of ethical person–group fit within a team. Grounding our theoretical arguments in relational schemas theory, we demonstrate that interpersonal ethical perceptions can have distal impacts on perceptions of team functioning. (...) The results support the hypotheses that a perceived ethical incongruence between the self and other team members negatively influenced perceptions of relationship conflict and ultimately information sharing. By exploring individual and team level aspects of ethics concurrently, we contribute to a deeper understanding of contextual forces in ethics through an interactionist approach. (shrink)

This paper introduces a refined approach to conceptualising the commons in order to shed new light on cooperative practices. Specifically, it proposes the novel concept of Common-Property Assets. CPAs are exclusively human-made resources owned under common-property ownership regimes. Our CPA model combines quantity and quality. While these two dimensions are largely pre-existing in the conventional case of natural common-pool resources, they directly depend on members’ collective action in CPAs. We apply this theoretical framework to farm machinery sharing agreements—a widespread grassroots (...) cooperative phenomenon in agriculture—using a systematic literature review to generalise the findings from a sample of 54 studies published from 1950 to 2018. Our findings show that in successful CPAs, members endorse and do not deviate from a quantity-quality equilibrium that is collectively agreed upon. Despite the existence of thresholds for both quantity and quality due to membership heterogeneity, qualitative changes in respect of the common good are possible in CPAs that promote democratic practices. Our study has potentially strong implications for developing ethics in cooperatives and the sustainable development of communities worldwide. (shrink)

The rapidly growing research on hybrid organizations in recent years suggests that these organizations may have particular abilities to facilitate institutional change. This article contributes to our understanding of change and, in particular, sustainable transformation in society by highlighting the importance of organizational forms. Looking more closely at the role of hybrid organizations in processes of path generation, we analyze the conditions under which hybrid organizations may enable path generation. A retrospective exploratory case study of the Swedish hybrid organization The (...) Natural Step confirms how hybrids can take part in- and may facilitate the early phases of path generation: assimilation and coalescence. The conclusion drawn is that hybrids have multivocal abilities that enable them to earn trust and authority to open up “neutral” spaces for orientation and connection between actors in separated sub-paths, and that this in turn may ease tensions and trigger dialogue and exchange, also between former opponents. Yet, as also seen in the case, this enabling position of the hybrid may be both fragile and temporary. (shrink)

Climate change is an ethical and moral challenge of a global scale due to its potentially catastrophic implications for human welfare. Understanding forces that drive corporate adaptation to climate change is an important research topic in business ethics. In this paper, we propose that shareholder climate-related proposals could be a catalyst for corporate innovations in technologies mitigating climate change. Our results, based on the analysis of US firms, indicate that corporations respond positively to these proposals by producing more climate-related patents (...) and citations. We also uncover potential casual channels of influence. Further, we find that corporate governance moderates the documented effects. These proposals lead to a more efficient and valuable innovation output, but lower firm performance in the short term. The real effect that shareholder proposals have on innovation gains clarity in the context of climate change, contributing to the discussion of investor “voice.”. (shrink)