When firm misconduct comes to light, CEOs are often faced with difficult decisions regarding whether and how to respond to stakeholder demands as they attempt to restore their firms’ legitimacy. Prior research largely assumes that such decisions are motivated by CEOs’ calculated attempts to manage stakeholder impressions. Yet, there are likely other motives, particularly those of a morally-relevant nature, that might also be influencing CEOs’ decisions. To address this limitation, we advance moral cleansing as an alternative explanation for how and (...) why CEOs lead their firms to respond to stakeholder demands following the firm’s misconduct and, in turn, whether they can successfully restore their firm’s legitimacy. In the context of firm misconduct, moral cleansing motives reflect CEOs’ desire to restore their threatened moral self-image resulting from the misconduct. We theorize that a CEO’s moral cleansing motives increase the likelihood that their firm will engage in a series of reparative responses that can restore the firm’s legitimacy (i.e., discovery, explanation, penance, and rehabilitation). In addition, we explicate the unique implications of CEOs’ moral cleansing in a post-misconduct context by theorizing how such motives may simultaneously improve one form of their firms’ legitimacy while hindering another. Specifically, we theorize that CEOs’ moral cleansing motives increase (decreases) the authenticity (strategic cognition) of their firm responses, which strengthens (weakens) the effectiveness of those responses on the firms’ ability to restore its moral (pragmatic) legitimacy with stakeholders. We conclude with a discussion of the implications of this work. (shrink)

This article suggests that due to the value-laden nature of social issues, managerial values, as a framework or schema, play an important role in the social issues evaluation process. Our data show that there is clearly a relationship between the issues managers evaluate as important and the values of those managers, with values being defined according to the Carroll typology—economic, legal, ethical, and philanthropic. It was apparent that the values held by the managers sampled determined how various sets of issues—community, (...) political, and regulatory—were evaluated in terms of importance. This result suggests that the issues evaluation process, which should be objective, is not. (shrink)

This article is the guest editors’ introduction to the Special Topic Forum on Extreme Operating Environments appearing in Business & Society. The forum includes two articles accepted after review and revision. The two articles address the macro-level aspects of business’s role in society in terms of accessing resources and markets and in terms of being a change agent or enabler to promote a better or more stable local economy. The articles also provide case studies of businesses developing, getting access to (...) resources and markets, and affecting the larger institutional environment despite great uncertainty and harsh operating environments where the traditional assumptions of stability and security are not available. This Special Topic Forum is published in cooperation with Business & Professional Ethics Journal which, working with the guest editors, has published two other articles that address the more micro-level aspects and the ethical dilemmas business may face in extreme operating environments. (shrink)

This research presents the results of an exploratory empirical study that assessed perceived organizational preparedness for coping with a major crisis or disaster. A scale was developed and tested to measure perceptions of organizational preparedness. Hypotheses were tested to examine variations in perception of crisis preparedness. Potential for occurrence of crises was also examined and demographics collected. Findings indicate that top-level and middle-level managers have a higher level of perceived preparedness than employees, no differences in perceived preparedness based on size (...) of the city where organizations operate, government organizations expressed a higher perception of crisis preparedness than for-profit organizations, and the highest perception of preparedness was exhibited by organizations employing more than 500 employees. (shrink)

The business landscape today is characterized by looming global challenges like natural disasters, war, and industrial accidents throughout the world. However, there is limited research on describing how businesses operate and cope in extreme environments and whether principles of ethical decision-making can be used as guidelines in such situations. To address this gap we describe and analyze organizational and business responses to three different extreme environments, namely the fall 2012 Gaza conflict, Hurricane Katrina in New Orleans, and the so-called triple (...) disasters in Japan on March 11, 2011. We discuss moral issues surrounding helping one another with specific reference to criteria called the Kew Garden Principles and strategic corporate social responsibility. We conclude the paper with managerial and leadership implications for ethical decision-making in extreme situations. (shrink)

Researchers in the business and society area have yet to address corporations that receive special government subsidies (a.k.a. corporate welfare). This article makes the argument that given their subsidized status, the citizenship of those companieswarrants scrutiny, tests the common notion that large companies in particular industries derive the greatest benefit from corporate welfare, and determines what, if any, relationship corporate welfare has with corporate citizenship. Results show that large companies in particular industries are the most likely recipients of corporate welfare. (...) In addition, corporations that receive corporate welfare demonstrate levels of corporate citizenship, which, after controlling for size, are not significantly different from companies that receive no such subsidies. (shrink)

The article describes a framework that identifies event, organizational, and individual factors that threaten ethical decision making in organizations facing discrete crises or in an ongoing crisis environment. Nine propositions are stated that predict threats to ethical decision making during crisis. A comparison between predictions from our model and from Jones's (1991) model is made. Suggestions for research to test and refine the framework are proposed.