Most studies of corporate social responsibility have focused on the organisational level, while the individual level of analysis has been treated as a ‘black box’ when researching antecedents of CSR engagement or disengagement. This article offers insights into a small and medium-sized enterprise that is recognised as a pioneer in CSR. Although the extant literature suggests that the owner-manager is crucial in the implementation of CSR, this study reveals that employees drive CSR. The employees in the focal firm voluntarily joined (...) forces based on their shared perception of moral responsibility for CSR and they developed strict targets to be achieved by 2030. Despite their strong ethical and moral perspective when enacting CSR, they disengaged from their moral responsibility for CSR in various contexts. This paper contributes to the theory of moral decoupling by uncovering a novel context of disengagement—‘visionary procrastination’. Visionary procrastination is suggested to be a particularly relevant context of disengagement when individuals perceive moral responsibility for CSR. Moreover, by delivering insights into the antecedents of employee-initiated CSR on the organisational level, this study adds to the growing body of literature on the micro-foundations of CSR. (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)

Originally conceptualized by Bandura as the process of cognitive restructuring that allows individuals to disassociate with their internal moral standards and behave unethically without feeling distress, moral disengagement has attracted the attention of management researchers in recent years. An increasing body of research has examined the factors which lead people to morally disengage and its related outcomes in the workplace. However, the conceptualization of moral disengagement, how it should be measured, the manner in which it develops, and its influence on (...) work outcomes are areas of continued debate among researchers. In this article, we undertake a systematic review of research on moral disengagement in the workplace and develop a comprehensive research agenda that highlights opportunities for theoretical and empirical advancement of the literature. (shrink)

Based on a framework that integrates job demands-resources theory, social cognitive theory Handbook of personality, Guilford Press, New York, pp 154–196, 1999) and regulatory focus theory, the purpose of this research is to investigate the relationship between perceptions of organizational politics and subsequent moral disengagement and unethical behavior. We conducted a laboratory study and also collected data in two separate surveys 6 weeks apart from 206 individuals working full time to investigate the relationships presented in our model. In both studies, (...) we examined the direct relationship of politics perceptions on unethical behavior in organizations as well as the indirect relationship through the influence of moral disengagement. We investigated the moderating effect of regulatory focus on the relationship between moral disengagement and unethical behavior using the survey data. Results indicated that perceptions of politics were significantly related to our mediator, moral disengagement, which was significantly related to our dependent variable, unethical behavior. However, only prevention-focus moderated the relationships examined. Implications for future research and managerial practice are discussed. (shrink)

The role of followers in financial statement fraud has not been widely examined, even though these frauds typically involve collusion between followers and destructive leaders. In a study with 140 MBA students in the role of followers, we examined whether two follower personality traits were associated with behavioral intentions to comply with the demands of an unethical chief executive officer to be complicit in committing financial statement fraud. These personality traits are self-sacrificing self-enhancement, a form of maladaptive narcissism characterized by (...) seemingly altruistic behaviors that are actually intended to boost self-esteem and proactivity, a trait characterized by behaviors reflecting efforts to positively change one’s environment. As predicted, follower SSSE was positively associated with follower behavioral intentions to comply with CEO pressure to commit fraud, while follower proactivity was negatively associated with fraud compliance intentions. Also as predicted, follower SSSE interacted with follower proactivity, such that followers high in SSSE and high in proactivity reported greater intentions to resist pressure from the unethical CEO to commit fraud compared to low-SSSE followers. Implications for future research and corporate governance are discussed. (shrink)

Past research illustrated that leaders could restrict followers’ deviance by reinforcing social norms of appropriate behaviors. Nevertheless, we submit that this understanding is incomplete without considering the effects of leaders on followers’ self-sanctions given that most undesirable behaviors are controlled internally. This research argues that interactional justice is an effective strategy for leaders to enhance followers’ self-sanctions. Leaders’ interactional justice provides personalized information and dyadic treatment that indirectly reduce employees’ deviance by restraining followers’ moral disengagement. Besides, this study examines the (...) social sanction role of ethical leadership. Ethical leaders highlight the importance of adherence to collective norms, which influence the relationship between followers’ moral disengagement and deviance. By identifying the different pathways via which they influence followers’ moral disengagement, we integrate interactional justice and ethical leadership into one theoretical framework. Our predictions are supported by data analyses of 220 samples from a multi-wave and -source field study. This integrative framework contributes to a comprehensive understanding of how leaders restrict employees’ deviance. (shrink)

Moral disengagement was initially conceptualized as a process through which people reconstrue unethical behaviors, with the effect of deactivating self-sanctions and thereby clearing the way for ethical transgressions. Our article challenges how researchers now conceptualize moral disengagement. The current literature is overly liberal, in that it mixes two related but distinct constructs—process moral disengagement and the propensity to morally disengage—creating ambiguity in the findings. It is overly conservative, as it adopts a challengeable classification scheme of “four points in moral self-regulation” (...) and perpetuates defining moral disengagement via a set of eight psychological mechanisms, narrowing our understanding of the phenomenon. To address these problems, we propose to define process moral disengagement intensionally (specifying the necessary and sufficient conditions for correct application of the term) as intrapsychic cognitive reasoning processes through which people selectively reconstrue a moral judgment “behavior B by actor A is morally wrong” and shift it toward becoming “behavior B is not morally wrong” or “actor A is not responsible for behavior B.” This definition achieves disambiguation and increased concept clarity. We leverage the definition to motivate a classification scheme for psychological mechanisms of moral disengagement along two dimensions—reconstruing morality and reconstruing agency—and to initiate an open inventory of psychological mechanisms that specify how process moral disengagement operates. (shrink)

To address substandard working conditions in global value chains, companies have adopted private regulatory systems governing worker rights. Scholars agree that without onsite factory audits, this private regulation has limited impact at the point of production. Companies, however, audit only a subset of their suppliers, severely restricting their private regulatory attempts. Despite the significance of the placement of suppliers inside or outside firms’ “responsibility boundaries” and despite scholars’ having called for more research into how firms prioritize what suppliers to audit, (...) few, if any, systematic studies have examined the topic. This is problematic, as the placement of firms’ responsibility boundaries determines what suppliers and workers are included in firms’ private regulatory attempts. Based on a study of 12 Swedish firms and the theory of moral disengagement, this paper starts to fill this research gap by exploring how firms’ responsibility boundaries are placed. The paper illustrates how firms’ responsibility boundary placement is best described as a patchwork with firms defining and delimiting their responsibilities differently. The paper also demonstrates that three supplier types are particularly likely to be placed inside firms’ responsibility boundaries, while a fourth type is likely be placed outside. (shrink)

Unethical behavior in organizations has garnered more and more attention in the last decades but most of the scholarly work has used a static approach relying on methodological individualism and a mechanistic worldview when studying this topic. The process of moral disengagement and organizational culture have been linked to the prevalence of unethical behavior earlier, but this paper uses a complexity-informed systems perspective to explore the dynamic relationship of these concepts and aims to improve our understanding of the often unnoticeable, (...) step-by-step process through which organizational cultures can become conducive to unethical behavior. Organizations are conceptualized as complex adaptive systems in which transformative and stabilizing processes based on feedback loops take place continuously. It is discussed how these processes can lead to a phase transition driving organizations towards a state where unethical behavior is the general norm. The process is illustrated through real-life examples. (shrink)

Although CSR scholarship has highlighted how tensions in CSR implementation are negotiated, little is known about its normative and moral dimension at a micro-level. Drawing upon the economies of worth framework, we explore how spirituality influences the negotiation of CSR tensions at an individual level, and what types of justification work they engage in when experiencing tensions. Our analysis of semi-structured interview data from individuals who described themselves as Buddhist and were in charge of CSR implementations for their organizations shows (...) that spirituality influences how they compromise among competing moral values by identifying two forms of justification work: compartmentalizing work and contextualizing work, which help spiritual practitioners minimize moral dissonance. (shrink)

We examine the effects of leader–member exchange differentiation on team members’ outcomes by using team moral disengagement as a psychological mechanism mediating this relationship and LMX differentiation bases moderating the relationship. Analysis of multilevel data collected from 289 frontline employees organized into 76 finance-related customer service teams shows that LMX differentiation significantly reduced team moral disengagement only when the performance basis was high, and that the negative relationship between LMX differentiation and team moral disengagement was significant only when the personal (...) liking basis was low. Furthermore, we found that the LMX bases moderated the indirect effect of LMX differentiation on team members’ outcomes through team moral disengagement. The findings advance team moral disengagement as a novel mechanism for cross-level relationship between LMX differentiation and team members’ outcomes at the individual level, and project differentiation bases as a condition under which LMX differentiation unpacks the reasons for team members’ favorable or unfavorable responses. They reveal LMX differentiation as a complex and multifaceted phenomenon, whose essence can only be understood if examined from multiple levels. We also contribute to the literature by revealing the cognitive pathway through which LMX differentiation may be associated with team members outcomes. (shrink)

Business Ethics: A European Review, EarlyView.