In this paper, a positive organizational ethics -based framework is informed by the microfinance and socially responsible investing movements to capture the process of sustainable financial innovations. Both of these movements are uniquely characterized by the formation of positive ethical networks to develop sustainability innovations in response to external crises. The crisis–PEN–innovation framework proposed makes four contributions to the POE literature: positions corporate sustainability through a POE lens; formalizes the PEN construction through POE theory; proposes PENs are mobilized to respond (...) to external crises; and demonstrates how PENs facilitate sustainability innovations. The theoretical framework is tested using theory-guided process tracing in the sustainable banking sector to understand how sustainability innovations were realized. The findings are consistent with the crisis–PEN–innovation framework proposed. (shrink)

The public debate on climate change is filled with moral claims. However, scientific knowledge about the role that morality, ethics, and values play in this issue is still scarce. Starting from this research gap, we focus on corporations as central decision makers in modern society and analyze how they respond to societal demands to take responsibility for climate change. While relevant literature on business ethics and climate change either places a high premium on morality or presents a strong skeptical bias, (...) our sociological model depicts morality as an indeterminate force: it can lead to both workable solutions or merely reinforce the status quo, depending on what different corporations make of it. We describe, on the one side, the diffusion of moral values in the media discourse on climate change and, on the other side, the specific responses of corporations. While the media discourse generates a pressure on corporations to act responsibly, their moral claims do not provide clear advice for action. As a result, morality becomes available to organizations as a medium that can be re-specified according to their internal dynamics. Corporations transform moral values into something compatible with their own structures through a variety of different responses: introducing formal ethical structures (e.g., codes of conduct), initiating value-oriented projects, or developing informal moral norms, and so on. In some occurrences, morality becomes a mere façade, while in others it serves as a decision-making criterion and deeply influences core activities in firms. (shrink)

Based on three empirical studies, this research sets out to conceptualise and subsequently operationalise the construct of consumer perceived ethicality (CPE) of a company or brand. Study 1 investigates consumer meanings of the term ethical and reveals that, contrary to philosophical scholars' exclusively consequentialist or nonconsequentialist positions, consumers' ethical judgments are a function of both these evaluation principles, illustrating that not any one scholarly definition of ethics alone is capable of capturing the content domain. The resulting conceptualisation identifies six key (...) themes explicating the construct. Building upon these findings, studies 2 and 3 were conducted to operationalise CPE. Such operationalisation is an essential prerequisite for future explorations and theory development given the absence of a suitable tool to capture and quantify the strength and direction of CPE. The key focus was on developing a valid and reliable multi-item measurement tool that is practical, parsimonious and easy to administer. The scale's general applicability allows deployment in academic and business contexts as well as different research areas and doing thus facilitates the much-needed theory building in this new research area. (shrink)

Drawing on social identity theory and organizational identification theory, we develop a model of the impact of perceived corporate social responsibility on employees’ organizational identification. We argue that employees’ perceptions of their company’s social responsibility behaviors are more important than organizational reality in determining organizational identification. After defining perceived corporate social responsibility (PCSR), we postulate how PCSR affects organizational identification when perception and reality are aligned or misaligned. Implications for organizational practice and further research are discussed.

This article explores the ways in which employers’ organizational networks, as shaped by the emergence of the “contract state” and related changes in the legal environment, affect employment practices. The classic analysis of the ways in which the legal environment benefits elites has successfully been applied to large organizations. Here, from a microsociological perspective, the authors researched how within an ambivalent legal context small and medium size cleaning companies interact with members of their organizational network. Semistructured interviews with cleaning subcontractors (...) illustrate a specific type of standardization process by which the Finance Ministry’s administrative guidelines encourage cleaning companies to ignore workers’ rights and develop illegal employment practices which are then transferred from contracts with state agencies to contracts with private firms purchasing services. The possibility to interpret this process as a form of state power is discussed. (shrink)

In spite of the considerable development of research in the fields of business ethics and family business, a comprehensive review and integration of the area where both disciplines intersect has not been undertaken so far. This paper aims at contributing to the call for more research on family business ethics by answering the following research questions: What is the status of the current research at the intersection of business ethics and family business? Why and how do family firms differ from (...) non-family firms regarding business ethics? And, what are the key directions for further research? To answer these questions, this study combines a systematic approach for the selection of articles, resulting in a sample of 31 articles over 35 years, with a narrative review to analyze the literature. This paper finds that research on family business ethics is scarce but increasing and that family firms are considerably different from non-family firms regarding ethical issues. Particular stakeholders, goals, relationships, and practices are found to be the forces behind the peculiarity of family business ethics. Ultimately, research development on family business ethics is encouraged and future research directions flowing from the key findings and reflections of this review are provided. (shrink)

Cyberstalking is a significant challenge in the era of Internet and technology. When dealing with cyberstalking, institutions and governments struggle in how to manage it and where to allocate resources. Therefore, it is important to understand how individuals feel about the problem of cyberstalking and how it can be managed. In this paper, we use Nissenbaum’s :119–158, 2004) contextual integrity as a theoretical framework for applying Keeney’s value-focused thinking technique to develop actionable objectives aimed at the prevention of cyberstalking. By (...) systematically interviewing over 100 individuals, we extract 20 objectives based on the underlying norms of distribution and appropriateness relevant to the context of cyberstalking. The objectives ensure that contextual integrity is maintained and cyberstalking prevented. Organizations can benefit from the objectives developed in this research since they are a means for developing an ethical policy regarding cyberstalking. Therefore, they help to ensure an ethical engagement with society at large by organizations when dealing with cyberstalking. Researchers can use these objectives to explore the best means for their implementation by organizations and institutions. Additionally they can explore the network mapping of fundamental and means objectives to determine relationships and their strengths in the cyberstalking context. (shrink)

This article outlines the results of an inquiry into the nature of entrepreneurial commitment to social responsibility as a business philosophy. Findings show that the respondents, as a group, reported a strong orientation to this view. Several social responsibility topics emerge in a position of special prominence to entrepreneurs, and their preferences for these topics do not widely vary. Furthermore, the degree of attachment to social responsibility, as an operational construct, correlates with several demographic and psychographic dimensions.

Corporate social responsibility (CSR) is an area of great interest, yet little is known about how CSR is perceived and practiced in the professional sport industry. This study employs a mixed-methods approach, including a survey, and a qualitative content analysis of responses to open-ended questions, to explore how professional sport executives define CSR, and what priorities teams have regarding their CSR activities. Findings from this study indicate that sport executives placed different emphases on elements of CSR including a focus on (...) philanthropic activities and ethical behaviors. The data suggest that professional sport executives view CSR as a strategic imperative for their business. Sport executives indicated that a number of factors influenced the practice of their CSR including: philanthropy (altruistic giving), an emphasis on the local community, partnerships, and ethical concerns. We also examine important organizational variables for sport (winning, revenues, and team value) and highlight their relationship with reported CSR involvement. We discuss the implications of the findings and propose recommendations for both theory and practice. (shrink)

The extent to which people identify with an organization is dependent on the attractiveness of the organizational identity, which helps individuals satisfy one or more important self-definitional needs. However, little is known about the antecedents of company identity attractiveness (IA) in a consumer–company context. Drawing on theories of social identity and organizational identification, a model of the antecedents of IA is developed and tested. The findings provide empirical validation of the relationship between IA and corporate associations perceived by consumers. Our (...) results demonstrate that the Corporate Social Responsibility (CSR) contribution to company IA is much stronger than that of Corporate Ability (CA). This may be linked to increasing competition and of decreasing CA-based variation in the marketplace. (shrink)

The purpose of this paper is to advance research on CSR beyond the stalemate of economic versus ethical models by providing an alternative perspective integrating existing views and allowing for more shared dialog and research in the field. It is suggested that we move beyond making a normative case for ethical models and practices of CSR by moving beyond the question of how to manage organizational self-interest toward the question of how accurate current conceptions of the organizational self seem to (...) be. Specifically, it is proposed that CSR is not a question of how self-interested the corporation should be, but how this self is defined. Economic and ethical models of CSR are not models of opposition but exist on a continuum between egoic and post-egoic, illusory and authentic conceptions of the organizational self. This means that moving from one to the other is not a question of adopting different paradigms but rather of moving from illusion and dysfunction to authenticity and functionality, from pathology to health. (shrink)

This study focused on the effects of individual characteristics and exposure to ethics education on perceptions of the linkage between organizational ethical practices and business outcomes. Using a stratified sampling approach, 817 students were randomly selected from a population of approximately 1310 business students in an AACSB accredited college of business. Three hundred and twenty eight of the subjects were freshmen, 380 were seniors, and 109 were working managers and professionals enrolled in a night-time MBA program. Overall, the respondents included (...) 438 male students and 379 female students. Exposure to ethics in the curriculum had a significant impact on student perceptions of what should be the ideal linkages between organizational ethical practices and business outcomes. Gender based differences were found with female students having a higher expectation regarding what should be the “ethics practices and business outcomes” link. Exposure to ethics in the curriculum had a positive moderating influence on the gender-based effects on perceptions of ideal ethical climate. The interaction effect showed that exposure to ethical education may have a positive impact on males and allow them to catch up with females in their ethical sensitivities concerning the ideal linkage between organizational ethical behavior and business outcomes. Further, consistent with the literature, the study found that gender differences in ethical attitudes regarding the ideal ethical climate, while significant for undergraduates, appeared to narrow considerably for the working professionals who were part-time MBA students. (shrink)

When a member of an organization has to make a decision or act in a way that may benefit some stakeholders at the expense of others, ethical dilemmas may arise. This paper examines ethical sensitivity regarding the duties to clients and owners (principals), employees (agents), and responsibilities to society (third parties). Within this framework, ethical perceptions of male and female managers are compared between the U.S. and Turkey – two countries that differ on power distance as well as the individualism/collectivism (...) dimensions. Our results show that ethical sensitivity varies depending upon whether the interests of principals, agents, or third parties are affected by a given ethical dilemma. We also find that, contingent upon the principal-agent–society relationships, the nationality and gender of the decision-maker influences ethical sensitivity. (shrink)

Corporate social responsibility (CSR) is becoming a mainstream issue as both researchers and managers are realizing its importance, but knowledge gaps persist. In particular, the processes underlying the adoption of responsible managerial practices and the effects associated with them are still at the centre of intense debate. Not surprisingly, managers expect formalized procedures that might influence corporate managerial processes and especially corporate strategies. Given the growing emphasis on the integration of CSR into corporate strategy, the purpose of this qualitative study (...) is to explore the antecedents of this process and the dynamics underlying it. We focus on a medium-sized, family-owned Italian company, SABAF SpA. We find that: the beliefs and value systems of entrepreneurs play a fundamental role in shaping a sustainable corporate strategy; the importance of the relationship between social performance and financial performance depends to some extent on the kind of competitive strategy that a company has selected; and people need to be aware of it – that is, CSR strategies must be explicit and codified into specific managerial procedures. (shrink)

Recent academic articles point to an increased vagueness and overlap in concepts related to business ethics and corporate responsibility. Further, the perception of these notions can differ in the smallbusiness world from the original academic definitions. This article focuses on the cognition of small-business owner-managers. Given the impact of small-business owner-managers on their ventures, corporate responsibility and ethical issues can take a different route in SMEs. The small-business owner-manager is able to shape the corporate culture and to enact values other (...) than profit. Adopting a cognitive perspective, we have identified how the small-business owner-manager makes sense of notions linked to corporate social responsibility (CSR) and business ethics. The concept of sensemaking has recently been applied to CSR (Basu and Pallazzo, 2008; Cramer et al., 2006). Applying a cognitive perspective to small-business owners may help in explaining specific phenomena found within smallbusiness ownership. For this research, the Repertory Grid Technique (RGT) is used, a method that has not previously been widely applied in the business and society field. Our findings to an extent invalidate the confusion in terminology found in the academic literature. Smallbusiness owner-managers, pragmatically and rather clearly, differentiate among the various concepts related to corporate responsibility and business ethics but, at the same time, they recognise the interrelationships and interdependencies of these concepts. These findings contribute to a better understanding of how small-business owners think and integrate corporate responsibility and ethical issues into their decisionmaking. (shrink)

The Samenleving and Bedrijf (S&B) network of Dutch organizations seeks to embed corporate social responsibility (CSR) within business practices but faces challenges with regard to how to do so across various organizational practices, processes, and policies. The integration of CSR demands cultural change driven by senior management and other change agents, who push CSR principles throughout the organization. This study examines the change processes that S&B member organizations have initiated, with a particular focus on the role of high potentials—those persons (...) who have been selected for the fast track into senior management. Interviews with nine S&B organizations document their levels of CSR integration and implementation, the role of senior managers, and the effects of high potentials’ competencies on the realignment process. High potentials have the ability and opportunity to act as CSR change agents, but organizations’ expectations of their purposes as future senior managers prevented them from doing so. In the existing organizational cultures, leadership focused on economic success, and the CSR implementation process had just initiated. Therefore, a measure of CSR embeddedness might refer to the performance measurement and expectations of high potentials as potential CSR change agents. (shrink)

Little is known about how and why corporate social responsibility (CSR) emerged in lesser developed countries. In order to address this knowledge gap, we used Chile as a test case and conducted a series of in-depth interviews with leaders of CSR initiatives. We also did an Internet and literature search to help provide support for the findings that emerged from our data. We discovered that while there are similarities in the drivers of CSR in developed countries, there are distinct differences (...) as well. In particular, we found that different sectors drive CSR in Chile. In contrast to other geographies where consumer demand and government regulation provided the impetus for CSR efforts, multinational companies (MNCs) and non-governmental organizations (NGOs) are key actors in Chile. MNCs imported their CSR beliefs, skills, and processes into Chile. Their efforts resulted in a virtuous cycle. Once large domestic firms felt pressured by their MNC rivals, they too adopted CSR initiatives. The ability to manage relationships with multiple stakeholders and perceptions of authenticity were also critical to the success of CSR in Chile. Using network theory as a lens, we suggest that network density and centrality largely determine whether CSR efforts will be authentic. Based on these contentions, we suggest avenues for future research. (shrink)

Although the importance of measuring and reporting the social and environmental impact of organisational action is increasingly well recognised by both organisations and society at large, existing approaches to impact measurement are still far from being universally accepted. In this context, the stakeholder dynamics within the nascent field of impact investing demonstrate the complexity of resolving potentially differing perspectives on key impact measurement issues such as materiality. This paper argues, from an organisational perspective, that such arenas of contestation can be (...) conceptualised in terms of social justice. Specifically, we draw upon Sen’s notions of ‘arrangement and realisation’ to explore the dynamics of contestation across a range of stakeholders concerning materiality judgements to suggest that such ‘arrangements’ may lead to suboptimal impact outcomes as ‘realisations.’ Our analysis of the nature of materiality contestations in impact measurement reveals the conflicts, tensions and paradoxes evident in this field of action. Empirically, we examine data drawn from 19 cases and 33 interviews. The analysis suggests three arenas of contestation around the materiality of impact measurement: the power dynamics between economically powerful investors and objectified investees; the conflicts between materiality norms and standards; and the interactions between all stakeholders with differing motivations towards radical or incremental materiality. Building upon this analysis, we then discuss how arenas of contested materiality may be mediated by drawing upon Sen’s notions of transcending the individual interests of the invested parties for the greater good via processes of contextualisation and case-specificity. (shrink)

Firm managers play an important role in the implementation of corporate social responsibility (CSR) actions. Education is emerging as the key factor in developing a sense of moral responsibility amongst the business students who will eventually become company managers and decision makers. The aim of this research is, thus, twofold. First, to analyze the existence of a direct positive correlation between university students’ perception of CSR and its impact on business performance; and second, to examine the extent to which two (...) factors (advantages brought by CSR and responsibilities toward stakeholders) act as mediation variables in the aforementioned correlation. The analysis was performed with a sample of 390 business‐related university students. Amongst the potential contributions made by this study we can highlight the possibility of knowing future managers’ way of thinking and of knowing the aspects where educational centers might improve their CSR teaching. (shrink)

Sustainable luxury is a strategic issue for managers and for society, yet it remains poorly understood. This research seeks to clarify how corporate social responsibility actions directly and indirectly affect consumers’ willingness to pay a premium price for luxury brand products, as well as how a long-term orientation might moderate these relationships. A scenario study presents fictional CSR actions of two brands, representing different luxury products, to 1,049 respondents from two countries. The results of a structural equation modeling approach show (...) that the luxury brands’ CSR actions negatively affect customer WTPP overall and for each brand. The luxury brands’ functional and symbolic value dimensions positively mediate the effects of CSR actions on WTPP, whereas social value does not. The effects of CSR actions and brand symbolic value on WTTP do not differ between countries. The effect of functional value on WTPP differs across countries, such that it is stronger for high-LTO than low-LTO cultures. Inversely, the effect of social on customer WTPP is stronger for low-LTO than high-LTO cultures. These findings have theoretical and practical implications for luxury brand managers. (shrink)

This paper studies the influence of an organization’s time perspective on triple bottom line deployment through sustainable innovativeness. Although academics increasingly consider sustainable innovation to be an essential element in deploying the triple bottom line, the degree of an organization’s sustainable innovativeness remains limited. Using ten inductive case studies based on the triangulation of data from multiple-respondent interviews and secondary data, this study shows that an organization’s time perspective plays a crucial role in explaining the organization’s degree of sustainable innovativeness (...) and improvement of triple bottom line outcomes. Specifically, organizations with a longer planning horizon, higher tolerance of uncertainty, and greater ability to learn from the past develop a higher and increasing degree of sustainable innovativeness, allowing trade-offs between triple bottom line dimensions to be mitigated. (shrink)

Citizenship, such as corporate citizenship and organizational citizenship, has been an important issue in business management for decades. This study proposes a research model from the perspectives of social identity and resource allocation, by examining the influence of corporate citizenship on organizational citizenship behaviors (OCBs). In the model, OCBs are positively influenced by perceived legal citizenship and perceived ethical citizenship, while negatively influenced by perceived discretionary citizenship. Empirical testing using a survey of personnel from 18 large firms confirms most of (...) our hypothesized effects. Theoretical and managerial implications of our findings are discussed. (shrink)

This article describes a survey among Finnish business students to find answers to the following questions: How do business students define a well-run company? What are their attitudes on the responsibilities of business in society? Do the attitudes of women students differ from those of men? What is the influence of business education on these attitudes? Our sample comprised 217 students pursuing a master's degree in business studies at two Finnish universities. The results show that, as a whole, students valued (...) the stakeholder model of the company more than the shareholder model. However, attitudes differed according to gender: women students were more in favor of the stakeholder model and placed more weight on corporate ethical, environmental, and societal responsibilities than their men counterparts - both at the beginning and at the end of their studies. Thus, no gender socialization effect of business school education could be observed in this sense. Business school education was found to shape women and men students' attitudes in two ways. Firstly, valuation of the shareholder model increased and, secondly, the importance of equal-opportunity employment decreased in the course of education. This raises the question whether the educational context is creating an undesirable tendency among future business professionals. The results further suggest that the sociocultural context can make a difference in how corporate social responsibility is perceived. The article also discusses possible ways to influence the attitudes of business students. (shrink)

It appears that in the 30 years that business ethics has been a discipline in its own right a model of business ethics has not been proffered. No one appears to have tried to explain the phenomenon known as 'business ethics' and the ways that we as a society interact with the concept, therefore, the authors have addressed this gap in the literature by proposing a model of business ethics that the authors hope will stimulate debate. The business ethics model (...) consists of three principal components that are interconnected by five sub-components. The introduced model makes a contribution to the creation of a conceptual framework for business ethics. A few tentative conclusions may be drawn from the introduced model of business ethics. The model aspires to be highly dynamic. The ultimate outcome is dependent upon the evolution of time and contexts. It is also dependent upon and provides reference to the behaviours and perceptions of people. The model proposes business ethics to be a continuous and an iterative process. There is no actual end of the process, but a constant reconnection to the initiation of successive process iterations of the business ethics model. The principals and sub-components of the model construct the dynamics of this continuous process. They provide guidance on what and how to explore our common efforts to understand the phenomenon known as business ethics. The model provides opportunities for further research in the field of business ethics. (shrink)

Companies offer ethics codes and training to increase employees' ethical conduct. These programs can also enhance individual work attitudes because ethical organizations are typically valued. Socially responsible companies are likely viewed as ethical organizations and should therefore prompt similar employee job responses. Using survey information collected from 313 business professionals, this exploratory study proposed that perceived corporate social responsibility would mediate the positive relationships between ethics codes/training and job satisfaction. Results indicated that corporate social responsibility fully or partially mediated the (...) positive associations between four ethics program variables and individual job satisfaction, suggesting that companies might better manage employees' ethical perceptions and work attitudes with multiple policies, an approach endorsed in the ethics literature. (shrink)

This paper examines the different mechanisms used by multinational corporations (MNCs) in Nigeria seeking to make long-term social investments by meeting the critical challenge of improving water provision. Community enterprise – an increasingly common form of social enterprise, which pursues charitable objectives through business activities – may be the most effective mechanism for building local capacity in a sustainable and accountable way. Traditionally, social investments by MNCs have involved either donations to a charity, which then assumes responsibility for delivering social (...) outcomes, or direct management of social investment in-house. These approaches have been criticized, however, for their limited contribution to local capacity building, their focus on short-term outcomes, and the restricted role that they afford to communities. Partnering with community enterprise, provided there is sufficient local capacity to support it, is the most effective mode of governance through which MNCs can manage social investments in developing countries. (shrink)

This study proposes a research model based on social identity theory, which examines the moderating role of organizational trust on the relationship between corporate citizenship and organizational commitment. In the model, organizational commitment is positively influenced by organizational trust and four dimensions of perceived corporate citizenship, including economic, legal, ethical and discretionary citizenship. The model paths are hypothesized to be moderated by organizational trust. Empirical testing using a survey of personnel from 12 large firms confirms most of our hypothesized effects. (...) Theoretical and managerial implications of our findings are discussed. (shrink)

Increasingly, companies implement social and environmental standards as instruments towards corporate social responsibility in supply chains. This is based on the assumption that such standards increase legitimacy among stakeholders. Yet, a wide variety of standards with different requirement levels exist and companies might tend to introduce the ones with low exigencies, using them as a legitimacy front. This strategy jeopardizes the reputation of social and environmental standards among stakeholders and their long-term trust in these instruments of CSR, meaning that all (...) expenses for their implementation are of no avail for the companies. Therefore, this paper highlights which criteria are important for the selection, implementation and improvement in order to achieve a company's aim, but also to strengthen the legitimacy of social and environmental standards. This research is based on conceptual thought and some existing empirical research, comparing four different social and environmental standards, revealing weaknesses and strengths. It exposes the basic conditions for the success of such standards among stakeholders and identifies the need for more empirical data. (shrink)

This study proposes a research model based on social identity theory, which examines the moderating role of organizational trust on the relationship between corporate citizenship and organizational commitment. In the model, organizational commitment is positively influenced by organizational trust and four dimensions of perceived corporate citizenship, including economic, legal, ethical and discretionary citizenship. The model paths are hypothesized to be moderated by organizational trust. Empirical testing using a survey of personnel from 12 large firms confirms most of our hypothesized effects. (...) Theoretical and managerial implications of our findings are discussed. (shrink)

The article reports the findings of a study conducted among 387 consumers regarding their perceptions of the unethicality of business practices of firms and how these affect their response behavior, in terms of trust, satisfaction, and loyalty. The study confirmed that high levels of perceived corporate unethicality decrease consumer trust. This in turn reduces consumer satisfaction, which ultimately has negative effects on customer loyalty. It was also revealed that, although both consumer gender and urbanity have a moderating effect on the (...) link between perceived unethicality and trust, the age group and level of education of the consumer did not exhibit such an effect. With regard to consumer cultural characteristics, both high uncertainty avoidance and low individualism were found to increase the negative impact of business unethicality on trust, as opposed to power distance and masculinity that did not have any moderating effect on this relationship. Implications for managers are extracted from the study findings, as well as directions for future research. (shrink)

This study viewed students majoring in public relations as prospective public relations practitioners and explored their perceptions about corporate social responsibility (CSR) as their job attraction condition. The results showed that the students perceived CSR to be an important ethical fit condition of a company. One of the significant findings is that CSR can be an effective reputation management strategy for prospective employees, particularly when a company’s business is suffering. In examining the effect of CSR efforts on attitudinal and behavioral (...) outcomes, person–organization (P–O) fit appeared to serve as a mediator between CSR performances and organizational attractiveness. (shrink)

The rise in ethical and social responsibility awareness in contemporary businesses has led to assumptions that the associated behaviours would enable competitive advantage to be attained as a firm distinguishes itself from its competitors through such practices. This paper reports on a study conducted on the prevalence of such practices among entrepreneurial ventures in an emerging economy (Malaysia), and the effect of such practices on both financial and non-financial performance. A sequential inter-method mixing design was employed in which during stage (...) 1, a series of semi-structured interviews with ten Malaysian SME founder-owners were conducted. Stage 2 involved a survey in which a total of 212 usable questionnaires were received. The results of the first phase of the research (qualitative) found evidence that entrepreneurial ventures in Malaysia do generally engage in both ethical and socially responsible practices. The subsequent model testing using SEM, however, revealed that while ethical practices were positively associated with venture performance, socially responsible practices were not. This may indicate that while entrepreneurial ventures in emerging economies like Malaysia become quickly aware of the more serious consequences of not adopting ethical practices, the concern for social issues may still be lacking, i.e., in terms of motivations, they may be closer to the profitable end of the philanthropy versus profitability spectrum. While the findings may be equivocal, we believe that the paper makes the following two significant contributions: (1) it provides an empirical test of the importance of ethical and socially responsible practices to entrepreneurial venture performance and (2) it furthers understanding of how and why this may be different in an emerging economy context. (shrink)

As a reflection of the values and ethics of firms, corporate social responsibility (CSR) has received a large amount of research attention over the last decade. A growing area of this research is the CSR-consumer relationship. Results of experimental studies indicate that consumer attitudes and purchase intentions are influenced by CSR initiatives-if consumers are aware of them. In order to create this awareness, business is increasingly turning to 'pro-social' marketing communications, but such campaigns is met with scepticism and their effectiveness (...) are therefore uncertain. Consequently, researchers in the field (for example, Maignan, 2001; Mohr et al., 2001) have called for empirical studies to determine the level of actual consumer awareness of CSR initiatives. This study examines the Australian banking sector, which engages in and promotes its CSR activities, to help fill this gap. Results from our qualitative study with bank managers, and our quantitative study with consumers, indicate low consumer CSR awareness levels. Consumer understanding of many of the social issues banks engage with is also low. While CSR is effective in eliciting favourable consumer attitudes and behaviour in theory, CSR has not proven its general effectiveness in the marketplace. The low consumer awareness of the various social issues in which firms engage with their CSR programs suggests that firms may need to educate consumers, so they may better contextualise CSR initiatives communicated. However, better context may amount to little if claimed CSR initiatives are perceived as inconsistent with other facets of the business that reflect its values and ethics. (shrink)

According to the Green Paper presented by the European Commission in July 2001, corporate social responsibility (CSR) is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis (Commission of the European Communities, 2001b, p. 6). On this basis, in 2002, the Italian Government, and especially the Italian Ministry of Welfare, launched an initiative called CSR-SC (social commitment) in order to foster the proactive social role of (...) Italian enterprises, with great attention on SME involvement. The technical partner of the Italian Ministry of Welfare for this initiative is Bocconi University. The goal of this contribution is to present the main results of CSR–SC research project developed by Bocconi University. The paper provides a detailed picture of the general scheme designed to carry out the research project and a review of the different methodologies used to support the solutions proposed. (shrink)

Using an institutional perspective, this paper investigates how consumers in Western developed and Southeast Asian emerging markets respond to fashion brands’ moral transgressions and how consumers’ moral rationalization tendencies vary across the two markets. The study employs multimethod analyses, including cross-national secondary data from 12 countries and experimental data from 940 German and Vietnamese consumers. In a non-transgression context, the multivariate analyses show that Western developed-market consumers embrace higher ethical standards (Study 1A), tend to seek collective action against prevalent immoral (...) behaviors in society (Study 1B), and are more critical in evaluating fashion brand ethicality than Southeast Asian emerging-market consumers (Study 2). However, in a transgression context, the moderated mediation analyses reveal that consumers largely do not differ in their direct devaluation of fashion brand ethicality and subsequent price considerations (Study 3) across six transgression scenarios (i.e., worker abuse, child labor, racist advertising, weight discrimination, climate change, and environmental pollution). Interestingly, moral rationalization processes appear to be more frequent and consequential in the Southeast Asian emerging market, while they either do not occur or are significantly weaker in the Western developed market. The results provide theoretical and practical implications for ethical business practices in the fashion industry based on market differences in regulatory frameworks, cognitive considerations, and social norms. (shrink)

This study examines the relationship among the employees–organization pro-environmental values fit, supervisors’ PEVs and employees’ pro-environmental behaviors. Informed by the PEB, organizational values and employee–organization fit literature, we propose and test hypotheses that under egoistic, altruistic and biosphere-value orientations, E–O PEVs fit versus non-fit have significant effects on employees’ private-sphere PEB and public-sphere PEB, identifying supervisors’ PEVs as a moderator. An empirical investigation indicates that the effect of E–O PEVs fit on employees’ private-sphere PEB and public-sphere PEB varies as the (...) value orientation differs. More specifically, under the context of altruistic and biosphere-value orientations, if the organizational PEVs do not match the employees’ PEVs, especially when the former exceeds the latter, employees’ PEB will rise as the organizational PEVs increase. As for egoistic value orientation, when organizational PEVs exceed employees’ PEVs, not only will public-sphere PEB stop decreasing and tend to stabilize, but also private-sphere PEB will rise to a slight degree. Furthermore, compared with altruistic and biospheric values dimensions, supervisors who promote egoistic PEVs will have a more significant effect on the relationship between global E–O PEVs fit and employees’ PEB. Finally, we suggest that the goals of an organization and its supervisors need to be combined within the actual situation of Chinese corporations to truly implement corporate green practices by balancing the profit goal and the environmental goal. (shrink)

This study explored several proposed relationships among professional ethical standards, corporate social responsibility, and the perceived role of ethics and social responsibility. Data were collected from 313 business managers registered with a large professional research association with a mailed self-report questionnaire. Mediated regression analysis indicated that perceptions of corporate social responsibility partially mediated the positive relationship between perceived professional ethical standards and the believed importance of ethics and social responsibility. Perceptions of corporate social responsibility also fully mediated the negative relationship (...) between perceived professional ethical standards and the subordination of ethics and social responsibility. The results suggested that professions should develop ethical standards to encourage social responsibility, since these actions are associated with enhanced employee ethical attitudes. (shrink)

The purpose of this paper is to provide a basis for a systematic development of signaling theory on CSR initiatives. The paper proposes signaling theory as a framework supportive of a strategic CSR approach; maps extant research on signaling through CSR initiatives; offers a comprehensive assessment of the most diffused CSR initiatives and discusses their eligibility as signaling devices; and outlines a research agenda to further develop and test signaling theory in business ethics. Specifically, the study reconsiders some key assumptions, (...) identifies key gaps in empirical validation, and proposes directions to extend multiple signal, signaling pattern, and target cases. (shrink)

This study explores the relationship between Hofstede’s cultural dimensions and public relations practitioners’ perceptions of corporate social respon- sibility in South Korea. The survey on Korean public relations practitioners revealed that, although Hofstede’s dimensions significantly affect public relations practitioners’ perceptions of CSR, social traditionalism values had more explanatory power than cultural dimensions in explaining CSR attitudes. The results suggest that practitioners’ fundamental ideas about the corporation’s role in society seem to be more important than their cultural values to understand public (...) relations practitioners’ CSR attitudes in Korea. (shrink)

In March 2003, President Bush declared the start of Operation Iraqi Freedom, the anticipated commencement of intensive American-led military operations in Iraq. With this declaration, the media began intense coverage of military operations from the field. For the first time, viewers were able to see images of actual events. This was due to three developments: the advancement of technology allowing immediate transmission of text and images, the actual presence of journalists identified as "embedded journalists" at military sites, and the fierce (...) competition among networks for viewers. One result of this constant coverage was significant pressure on decision makers within the television and cable news networks to decide within a matter of seconds which images to air. In particular, producers and broadcasters of competing networks experienced this pressure. Though the radio and broadcasting industry has a published code of standards, it is "general and advisory rather than specific and restrictive." Therefore, it did not address the unique time sensitive decision-making required within this new environment. Issues such as the security of soldiers, confidentiality of troop maneuvers, and the safety of the embedded journalists were critically important. Equally serious were the concerns about the impact of the immediate airing of information and violent images to the public. This research used Patrick Primeaux's ' mind-heart-sou¾ model of decision-making as its theoretical framework. The study investigated the gender and industry experience of selected professionals in a cable news network, MSNBC, to explore how ethical codes of behavior are integrated when people make decisions. Decision-making in both their professional and personal lives was examined. It is from this perspective that their professional decisions to air/not to air material from Operation Iraqi Freedom were studied. The findings on decisions about airing/not airing material from Operation Iraqi Freedom yielded both expected and unexpected results. There was no clear gender difference regarding ethical decision-making, but there was a difference when analyzed by industry experience. When the study focused on questions regarding the respondents' personal lives, the original hypothesis that there was a gender difference was validated. (shrink)

Small and medium-sized firms form 90% of the worldwide population of businesses. However, it has been argued that given their smaller scale of operations, resource access constraints and lower visibility, smaller firms are less likely to participate in Corporate Social Responsibility (CSR) initiatives. This article examines the different economic motivations of firms with varying combinations of visibility, resource access and scale of operations. Arguments are presented to propose that in terms of visibility, resource access and operating scale, very small and (...) very large firms are equally motivated to participate in CSR. However, the motivational bases for CSR participation are likely to be different. Medium-sized firms are the least motivated. This suggests a U-shaped relationship between firm size and CSR participation. This study contributes towards resolution of the long-standing debate on the effects of firm size on CSR participation, and highlights the importance of considering configurations of firm characteristics in the study of CSR outcomes. In conclusion, cautions are raised against the broad categorization of firms, without adequate attention to the underlying dimensions of such categorizations. (shrink)

The study of business ethics has led to the development of various principles that are the foundation of good and ethical business practices. A corresponding study of Information Technology (IT) professionals’ ethics has led to the conclusion that good ethics in the development and uses of information technology correspond to the basic business principle that good ethics is good business. Ergo, good business ethics practiced by IT professionals is good IT ethics and vice versa. IT professionals are professionals in businesses; (...) a difficulty presented to these professionals, however, is the number and diversity of codes of ethics to which they may be held. Considering the existence of several formalized codes of ethics prepared by various IT professionals’ associations, a more harmonized approach seems more reasonable. This paper attempts to present a review of the purpose of codes of ethics, the persons who should be covered by such codes and to organize codes of ethics for business in general and IT professionals in particular and to make the argument that, once again, good ethics is good business practice, regardless of the profession or occupation concerned. (shrink)

This paper questions the taken-for-granted moral portrayal depicted in the extant literature and popular media of the devoted social entrepreneurial hero with a priori good ethical and moral credentials. We confront this somewhat ‘idealistic’ and biased portrayal with insights from unique large-scale data from the Global Entrepreneurship Monitor 2009 survey on social entrepreneurship covering Belgium and The Netherlands. Binary and multinomial logistic regressions indicate that the intention and dominance of perceived social value creation over economic value creation is indeed what (...) makes social entrepreneurs unique. In contrast to the extant literature, however, our empirical investigation points at a reluctant attitude of social entrepreneurs toward entrepreneurship in terms of confidence in their skills to start and manage a business, their perception of entrepreneurship as a desirable career choice and their involvement in their activities. While the extant literature points at a strong entrepreneurial orientation as a source of ethical issues, the main contribution of this study lies in the reverse observation: ethical issues are also likely to emanate from a frail entrepreneurial profile. We formulate empirically grounded propositions that may serve as a basis for theory-building and testing purposes. (shrink)

Several researchers have identified codes of ethics as tools that stimulate positive ethical behavior by shaping the organisational decision-making process, but few have considered the information needed for code implementation. Beyond being a legal and moral responsibility, ethical behavior needs to become an organisational priority, which requires an alignment process that integrates employee behavior with the organisation’s ethical standards. This paper discusses processes for the responsible implementation of CoEs based on an extensive review of the literature. The internationally recognized European (...) Foundation for Quality Management Excellence Model is proposed as a suitable framework for assessing an organisation’s ethical performance, including CoE embeddedness. The findings presented herein have both practical and research implications. They will encourage construction practitioners to shift their attention from ethical policies to possible enablers of CoE implementation and serve as a foundation for further research on ethical performance evaluation using the EFQM model. This is the first paper to discuss the model’s use in the context of ethics in construction practice. (shrink)

As a contribution to the emerging field of corporate social responsibility cognition, this article reports on the findings of an exploratory study that compares SME owner–managers’ mental models with regard to CSR and related concepts across six European countries. Utilising Repertory Grid Technique, we found that the SME owner–managers’ mental models show a few commonalities as well as a number of differences across the different country samples. We interpret those differences by linking individual cognition to macro-environmental variables, such as language, (...) national traditions and dissemination mechanisms. The results of our exploratory study show that nationality matters but that classifications of countries as found in the comparative capitalism literature do not exactly mirror national differences in CSR cognition and that these classifications need further differentiation. The findings from our study raise questions on the universality of cognition of academic management concepts and warn that promotion of responsible business practice should not rely on the use of unmediated US American management terminology. (shrink)

Corporate social responsibility (CSR) is becoming a mainstream issue as both researchers and managers are realizing its importance, but knowledge gaps persist. In particular, the processes underlying the adoption of responsible managerial practices and the effects associated with them are still at the centre of intense debate. Not surprisingly, managers expect formalized procedures that might influence corporate managerial processes and especially corporate strategies. Given the growing emphasis on the integration of CSR into corporate strategy, the purpose of this qualitative study (...) is to explore the antecedents of this process and the dynamics underlying it. We focus on a medium-sized, family-owned Italian company, SABAF SpA. We find that: the beliefs and value systems of entrepreneurs play a fundamental role in shaping a sustainable corporate strategy; the importance of the relationship between social performance and financial performance depends to some extent on the kind of competitive strategy that a company has selected; and people need to be aware of it – that is, CSR strategies must be explicit and codified into specific managerial procedures. (shrink)

Whether, how and when do leaders engage in ethical leadership as a response to status threat? We propose that leaders facing status threat are likely to develop ethical leadership behaviors toward subordinates. Drawing on power dependence theory, we theorize that experiencing status threat augments leaders’ dependence on subordinates who can provide them with status-relevant resources. Dependence on subordinates further motivates leaders to absorb the resource constraints through displaying ethical leadership. However, if leaders are able to obtain alternative resources to cope (...) with status threat, their dependence on subordinates is weakened. We conducted two studies to test the predictions. Using a moderation-of-process design, Study 1 found that when participants experienced status threat, they displayed more ethical leadership behaviors, but particularly so when their reward structure was team- rather than individual-based. Study 2 was a field study using a sample of 104 teams from two Chinese firms listed in the “Top 500 private enterprises in China.” We found that leaders who experienced more status threat were perceived to be more ethical by their subordinates, which was mediated by leaders’ perceptions of dependence on subordinates. The mediated effect was stronger for leaders who were less skilled in networking. Implications for theory on the contextual factors of ethical leadership, dependence, and status threat are discussed. (shrink)

Although the topic of value congruence has attracted considerable attention from researchers and practitioners, evidence for the link between person–supervisor value congruence and followers’ reactions is less robust than often assumed. This study addresses three central issues in our understanding of person–supervisor value congruence by assessing the impact of objective person–supervisor value congruence rather than subjective value congruence, by examining the differential effects of value congruence in strongly versus moderately held values, and by exploring perceived empowerment as a central mediating (...) mechanism. Results of a multi-source study comprising 116 person–supervisor dyads reveal that objective value congruence relates to followers’ job satisfaction and affective commitment and that this link can be explained by followers’ perceived empowerment. Moreover, polynomial regression and response surface analyses reveal that congruence effects vary with the importance that leaders and followers ascribe to a certain value: Congruency in strongly held values have more robust relations with followers’ outcomes than congruence in moderately held values. (shrink)