Trust is a key dimension of human-robot interaction, and has often been studied in the HRI community. A common challenge arises from the difficulty of assessing trust levels in ecologically invalid environments: we present in this paper two independent laboratory studies, totalling 160 participants, where we investigate the impact of different types of errors on resulting trust, using both behavioural and subjective measures of trust. While we found a general effect of errors on reported and observed level of trust, no (...) significant differences between the type of errors were found in either of our studies. We discuss this negative result in light of our experimental protocols, and argue for the community to move towards alternative methodologies to assess trust. (shrink)

Scholars have assumed that trust is fragile: difficult to build and easily broken. We demonstrate, however, that in some cases trust is surprisingly robust—even when harmful deception is revealed, some individuals maintain high levels of trust in the deceiver. In this paper, we describe how implicit theories moderate the harmful effects of revealed deception on a key component of trust: perceptions of integrity. In a negotiation context, we show that people who hold incremental theories reduce perceptions of their counterpart’s integrity (...) after they learn that they were deceived, whereas people who hold entity theories maintain their first impressions after learning that they were deceived. Implicit theories influenced how targets interpreted evidence of deception. Individuals with incremental theories encoded revealed deception as an ethical violation; individuals with entity theories did not. These findings highlight the importance of implicit beliefs in understanding how trust changes over time. (shrink)

In this conceptual paper, we draw on social identity theory as a means to bridge individuals’ memberships in social groups with value creation in stakeholder networks defined by a socio-economic issue. To address recent calls for microfoundations of stakeholder theory, we introduce a reconceptualization of stakeholders as social groups to examine how value is defined and interpreted in intergroup processes embedded in an issue-based stakeholder network. We establish a theoretical model of value creation that links individuals’ identification with stakeholder groups (...) to intergroup trust, co-operation, and value creation. Specifically, we argue that the salience of preexisting social identities causes harmful tensions in stakeholder relationships that negatively impact value creation. We then propose that the development of a more inclusive stakeholder identity overcomes these negative intergroup consequences in multistakeholder settings. We discuss the impact on value creation of four stakeholder identity representations based on the salience of specific and superordinate stakeholder groups. The paper concludes with implications of our theoretical model for both research and practice related to value creation in issue-based stakeholder networks. (shrink)

Ethical decision making involves complex emotional, cognitive, social, and philosophical challenges. Even if someone wants to be ethical, he or she may not have clearly articulated what that means, or know how to go about making a decision consistent with his or her values. Information technology may be able to help. A decision support system could offer individuals and groups some guidance, assisting them in making a decision that reflects their underlying values. The first step towards a design science of (...) ethical decision support is to develop a theoretical base on which first-generation systems can be built. This paper brings together work in cognitive, social and moral psychology, information systems, and philosophy relevant to ethical decision making. Attributes of a system that would support ethical decision making are described. (shrink)

We develop and test a trickle-down model of how authentic leadership at the department level flows down the organizational hierarchy to encourage team leader authentic leadership and consequently, promotes team and individual-level supervisor-directed helping behavior. Analyses of multi-level and multi-source data collected from a total of 487 employees comprising 122 teams, 47 departments, and 4 different working areas of a major public sector organization in Taiwan show that team leaders’ authentic leadership mediates the relationship between departmental authentic leadership and individual-level (...) leader–member exchange. We also found that intra-team trust completely mediates the influence of team authentic leadership on both team helping behavior and individual-level supervisor-directed helping behavior. Finally, the results reveal that self-concordance mediates the influence of team authentic leadership on individual-level supervisor helping behavior as well as the influence of individual-level LMX on individual-level supervisor-directed helping behavior. Theoretical and practical implications of these findings are discussed. (shrink)

This paper documents that business ethics has positive impacts upon the development of intellectual capital. Knowledge has become the most important asset of modern businesses, and this study argues that business ethics is associated with the development of intangible knowledge resources—intellectual capital. Businesses with ethical values at the core reinforce ethical conducts and successfully build trust with their various stakeholders, leading to the formation of an ethical and trustworthy corporate culture and a positive corporate environment. Thus, in this reasoning, an (...) ethical approach to business can encourage open communication, problems solving, knowledge sharing and creativity among employees to increase organisational capital; enhance interactions and relationships with suppliers, customers and other stakeholders to increase social capital; attract and retain good talent to increase human capital. Questionnaire survey is adopted as the research method with businesses in the electronic and information technology industries in Taiwan as sample. The results suggest that business ethics is associated with increased intellectual capital. Thus, this study demonstrates that the development of intellectual capital is in line with strengthened ethics. It contributes to the literature through combining research on business ethics with intellectual capital theories and extends the extant intellectual capital literature. (shrink)

The notion of trust has been discussed among several scientific fields, but it still lacks the joint theory. The goal was to analyze the trust associations of 600 participants and clarify how people associate the word “trust”. Overall, 600 participants produced 1800 associations which were sequentially divided into five domains and 14 categories. The findings imply, that when it comes to trust people tend to associate it mainly with relationships and positive emotions. The fact that associations involved mainly positive emotional (...) states and significant others may show, that trust in itself is something emotional and obviously bound to people we have the strongest bonds with. (shrink)

Free riding involves benefiting from common resources or services while avoiding contributing to their production and maintenance. Few studies have adequately investigated the propensity to overestimate the prevalence of free riding. This is a significant omission, as exaggeration of the phenomenon is often used to justify control and coercion systems. To address this gap, we investigate how the common good approach may mitigate the flaws of a system excessively focused on free-riding risk. In this conceptual paper featuring illustrative vignettes, we (...) argue that the common good perspective is realistic and effective in preventing this excessive attention by promoting trust as an unconditional gift and a response to vulnerability. We discuss the common good perspective’s originality over the dominant approaches and propose a set of ethical and managerial recommendations that may be the best protection against this excessive focus and maybe even against free riding itself. (shrink)

There is an impressive literature on organizational capacities that enable specific types of performance, but no work has been done on whether such capabilities extend to an organizational capacity for trustworthiness (CFT). This paper introduces the notion of a capacity for trustworthiness (CFT) defined as the collective capability of the organization to produce positive signals of trustworthiness to stakeholders. The antecedents to the CFT are bundles of organization routines that enable the firm to manifest trustworthiness and balance attending to both (...) financial and relational goals. The consequences of a high CFT are outcomes and behaviors that are congruent with pivotal stakeholder expectations and are, therefore, trust inducing. A process model is offered that outlines how an organization’s routines and CFT change in response to feedback and pressure and increase or decrease stakeholders’ trust. Implications for the management of stakeholder relations, trust repair, and the management of organizational systems are reviewed. (shrink)

Thriving is a psychological state in which individuals experience a sense of vitality and a sense of learning. Thriving come from relational connections with others, and is deeply rooted in social systems. Theoretical literature suggests that thriving occurs in the presence of decision-making discretion, broad information sharing, and a climate of trust. However, no study has investigated these environmental factors empirically. Using a multiple-studies approach, we established valid and reliable scale for each of these environmental factors using experimental vignettes, confirmed (...) the association of decision-making discretion, broad information sharing and climate of trust with thriving, and identified the role of self-determination theory in determining these relationships. Our analysis was based on data collected from 512 Indian management students across five studies. The results indicate significant difference in thriving for high vs. low level for decision-making discretion, broad information sharing and climate of trust. The relationship of these environmental factors with thriving is mainly due to the fulfillment of the need for competence. Competence partially mediates the relationship of decision-making discretion with thriving, and fully mediates the relationship of broad information sharing and climate of trust with thriving. Autonomy, although positively related with the environmental factors, does not lead to thriving. Practical implications, limitations and research avenues are discussed. (shrink)

Leaders, particularly new leaders, seek to establish high levels of trust, as it has been associated with higher levels of effectiveness and group outcomes. This study is designed to understand how trust changes and develops for leaders in a new role and the implications of that change. Although calls for research on trust over time have been made for the past 2 decades, our knowledge of this phenomenon is still quite limited. The findings indicate that leader and unit performance is (...) a function not only of absolute trust level, but is also affected by the direction and magnitude of change in trust across time periods, with the highest levels of effectiveness being associated with leaders who exhibited an increase in trust from the group over time. The data also suggest that the direction and rate at which trust grew was determined by initial expectations and transformational leadership behaviors. (shrink)

This study examines the impact of trust and a national culture of secretiveness on the number of bank relationships per firm. We hypothesize that the degree of openness of a firm and trust between economic agents may influence the willingness of the firm to release sensitive information to its lenders, as well as the decision between maintaining single or multiple bank relationships. Using a sample of over 8000 non-financial firms operating in 12 countries from the eurozone we provide evidence that (...) a national culture of secrecy enhances the number of bank relationships, while trust has the opposite effect. Results are robust to the use of various estimation techniques, alternative definitions of secrecy and trust, controls for firm-level and country-level characteristics, and instrumental variables. The main implication of this finding is that the financial decisions of firms cannot be effectively examined without considering deep-rooted national cultural elements. We also find that the results are mainly driven by small and medium enterprises, implying that the higher informational opaqueness of these firms enhances the role of secrecy and trust. (shrink)

Drawing on insights from social learning and social cognitive perspectives and research on the multilevel reality of leadership influences, we developed and tested a multilevel model that examines mechanisms and conditions through which ethical leadership deters work unit- and individual-level ostracism. Based on two field studies using multiple measurement points, we found that at the work unit level of analysis, relational climate partially mediates the negative relationship between ethical leadership and work unit-level ostracism whereas state mindfulness partially mediates the cross-level (...) influence of ethical leadership on individual-level ostracism. Contrary to our hypothesis, we found that the relationship between ethical leadership and relational climate was stronger when work units had a more mechanistic structure, and not when it had an organic work unit structure. Finally, we found that relational climate not only moderates the relationship between state mindfulness and individual-level ostracism, but also moderates the indirect influence of ethical leadership on individual-level ostracism through state mindfulness such that the indirect effect is stronger when relational climate is high as opposed to low. These findings highlight the individual- and work unit-level conditions and mechanisms through which ethical leadership relates to decreased ostracism at work, and thus extends theory and research on ethical leadership and ostracism. (shrink)

In this conceptual research, the authors develop an integrative theoretical framework for the relationship between mindfulness and transformational leadership. The model is based on the core aspect of transformational leadership, creating trusting relationships with followers. Core components of the model are self- and social awareness, emotional intelligence, and leadership related competencies such as decision-making, and trust. Direct and indirect relationships between mindfulness and transformational leadership are included in the model. The literature supporting the proposed linkages is presented and discussed and (...) propositions for specific linkages are offered. The paper concludes with the presentation of an exploratory study of the direct relationship between mindfulness and transformational leadership practices. The results support such a relationship. (shrink)

This article presents an alternative rationale for corporate philanthropy based on managerial values of benevolence and integrity. On the one hand, top managers with benevolence and integrity values are more likely to spread their intrinsic concern for others into the wider society in the form of corporate philanthropy. On the other hand, top managers high in benevolence and integrity are likely to contribute to improved managerial credibility and trusting firm-stakeholder relationships, thereby improving corporate financial performance. Therefore, the article makes the (...) argument that both corporate philanthropy and corporate financial performance can better be interpreted as resulting from managers’ benevolence and integrity values. (shrink)

. American businesses and corporate executives are faced with a serious problem the loss of public confidence. Public criticism, increased government controls, and growing expectations for improved financial performance and accountability have accompanied this decline in trust. Traditional approaches to corporate governance, typified by agency theory and stakeholder theory, have been expensive to direct and have focused on short-term profits and organizational systems that fail to achieve desired results. We explain why the organizational governance theories are fundamentally, inadequate to build (...) trust. We advance a conceptual framework based on stewardship theory characterized by “covenantal relationships” and argue that design of governance mechanisms using a covenantal approach is more effective in building trust in organizations. A covenantal relationship is a specialized form of a relational contract between an employee and his or her organization. We argue that regardless of incentives and control mechanisms carefully designed through contractual mechanisms, in the absence of covenantal relationships it is extremely difficult to build trust within organizations. We propose that organizations are more likely to build trust – both at the organizational level and at the interpersonal level – when they create reinforcing and integrated systems that honor implied duties of “covenantal relationships.”. (shrink)

There is theoretical and empirical evidence that firms’ environmental performance has ramifications for their appeal to various stakeholders. Yet, we know little about how this plays out in the context of strategic alliance formation. Stated differently, research is lacking on how ‘green’ prospective alliance partners are estimated by the initiating firm. This article employs strong environmental reputation as a proxy for high environmental performance and explores implications for the well-established alliance formation trust-based mechanism, under the strategic cognition perspective. The ensuing (...) hypotheses are subjected to empirical scrutiny through an experimental method. A random sample of 138 CEOs and top managers of Norwegian manufacturing firms completed a scenario-based questionnaire. The results show that two out of three trust dimensions are affected and, moreover, that two out of three—but not the same—trust dimensions influence partner attractiveness. Several theoretical and managerial implications, and future research opportunities, are derived from the findings. (shrink)

The purpose of this empirical study is to investigate the effect of paternalistic leadership (PL) on ethical climate and the moderating role of trust in leader. Convenience sampling is used as a sampling procedure and the data were obtained from 227 Turkish employees. The findings indicated that PL had some effect on ethical climate. Furthermore, partial support was found for the moderating effect of trust in leader on the relationship between PL and ethical climate. The results of the study showed (...) the importance of PL on employees in following company rules and procedures and showing a sense of responsibility and care to customers, community, and others in the organization. (shrink)

In this study, we explore the impact of Machiavellian rhetoric on fundraising within the increasingly important context of online crowdfunding. The “all-or-nothing” funding model used by the world’s largest crowdfunding platform, Kickstarter, may be an attractive context in which entrepreneurs can utilize Machiavellian rhetoric to reach their funding goal, lest they get no funding at all. This study uses data from 76,847 crowdfunding projects posted on kickstarter.com and develops a dictionary for computer-aided text analysis (CATA) of Machiavellian rhetoric to measure (...) the relationship between the frequency of Machiavellian rhetoric use and crowdfunding performance, operationalized as either reaching a funding goal or the number of backers who funded the project. Machiavellian rhetoric is segregated into eight facets, which are categorized into hard and soft influence tactics. Hard tactics include revenge, intimidation, betrayal, and manipulation. Soft tactics include ingratiation, supplication, self-disclosure, and persuasion. Results reveal that signals of revenge, self-disclosure, and intimidation have negative effects, whereas signals of ingratiation and persuasion have mixed positive effects on crowdfunding performance. Ingratiation is found to increase the number of backers, but not funding success. Conversely, persuasion is found to increase funding success, but not the number of backers. Surprisingly, betrayal rhetoric is positively related to both measures of crowdfunding performance. Thus, this article complements the literature on backer decision-making, entrepreneurial methods, reward-based crowdfunding, and ethics in entrepreneurship by demonstrating how the displays of potentially negative phenomena, such as Machiavellianism, have complex consequences for entrepreneurial outcomes. (shrink)

Given the rapid growth and emerging trend of e-commerce have changed consumer preferences to buy online, this study analyzes the current Indian legal framework that protects online consumers’ interests. A thorough analysis of the two newly enacted laws, i.e., the Consumer Protection Act, 2019 and Consumer Protection Rules, 2020 and literature review support analysis of 290 online consumers answering the research questions and achieving research objectives. The significant findings are that a secure and reliable system is essential for e-business firms (...) to work successfully; cash on delivery is the priority option for online shopping; website information and effective customer care services build a customer's trust. The new regulations are arguably strong enough to protect and safeguard online consumers' rights and boost India’s e-commerce growth. Besides factors such as security, privacy, warranty, customer service, and website information, laws governing consumer rights protection in e-commerce influence customers’ trust. Growing e-commerce looks promising with a robust legal framework and consumer protection measures. The findings contribute to the body of knowledge on e-commerce and consumer rights protection by elucidating the key factors that affect customer trust and loyalty and offering an informative perspective on e-consumer protection in the Indian context with broader implications. (shrink)

Studies demonstrating the benefits of ethical behavior at an individual level are scarce. The business ethics literature centers its analysis on unethical behaviors and their consequences, rather than ethical behaviors and their benefits. There is now considerable debate on the role of auditors in society and the function of accounting firms in the free market capitalist system. Specifically, the eminently ethical nature of the auditor’s work has been highlighted. Therefore, the aim of our paper is to show the impact of (...) auditors’ sustained ethical behavior: the trust it generates. This trust results in considerable benefits for the firm due to a reduction in the costs of the partner’s supervision of the auditor. The methodology chosen to validate these claims is a survey of partner of the audit firm in auditing companies. The results of this research confirm the hypotheses raised in the theoretical model. (shrink)

Firms have been increasingly using social commerce platforms to engage with customers and support their brand value co-creation. While social commerce is now bringing a variety of benefits to business, it has also challenged marketing ethics surrounding online consumer privacy. Drawing on the trust-commitment theory, we develop a model that aims to create an ethical and trustworthy social commerce community for brand value co-creation by examining the impacts of online consumer privacy concerns and social interaction constructs on consumers’ psychological reactions. (...) Using an empirical study, we find that: privacy risk, privacy control, and collaborative norms significantly influence consumers’ trust; consumer-peer interaction and collaborative norms are positively related to relationship commitment; and relationship commitment and trust positively affect consumers’ brand value co-creation in the context of social commerce. Theoretical and practical implications are discussed. (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 an ever more transparent, digitalized, and connected environment, customers are increasingly pressuring brands to embrace genuine corporate social responsibility practices and co-creation activities. While both CSR and co-creation are social and collaborative processes, there is still little research examining whether CSR can boost co-creation. In addition, while previous research has mainly related co-creation to emotional outcomes, limited empirical research has related it to rational and behavioral outcomes. To address these shortcomings in the literature, this paper examines the influence of (...) CSR on customer loyalty, considering the mediating roles of co-creation and customer trust. It also investigates the influence of co-creation on customer trust. The data were collected in Spain in late 2017 using an online survey, and the sample contained 1101 customers of health insurance services brands. Structural equation modeling was used to test the hypothesized relationships simultaneously. The results show that CSR influences customer loyalty both directly and indirectly through co-creation and customer trust. However, the indirect impact is the stronger of the two, implying that embracing co-creation activities and developing customer trust can make it easier for CSR practices to enhance customer loyalty. In addition, co-creation has a direct effect on customer trust. (shrink)

This paper examines the role of management's earnings preannouncements on judgments about its trustworthiness by nonprofessional investors. We predict that management's preannouncement decision and the resulting direction of the earnings surprise influence investors' ethical judgments about management's trustworthiness; these judgments, in turn, are associated with investors' other investment related judgments. We test our predictions in an experiment in which MBA students make investment-related judgments under four different preannouncement strategies. Consistent with our predictions, the results of our study show that managers' (...) preannouncement decisions are significantly associated with investors' evaluations of management's trustworthiness. Specifically, holding the size of the earnings surprise constant, we find that judgments of management's trustworthiness are damaged more following a negative as opposed to a positive earnings surprise, and the release of a preannouncement compared to when management does not issue a preannouncement. Also consistent with our predictions, we find that evaluations of management's trustworthiness are significantly and positively associated with judgments of the attractiveness of the firm's equity as an investment. Based on our findings, we encourage further research to explore whether managers understand the trust implications associated with their preannouncement decisions and the extent to which this understanding influences their disclosure decisions. (shrink)

In a contractual firm–stakeholder relationship the participants are expected to act according to the agreement and for mutual benefit. By acting against the agreement at the expense of the other participant, however, may result in higher individual profits within a short period of time. Building on the unlocked iterated prisoner’s dilemma (PD) setting, Scanlon’s [Scanlon, T.␣M.: 1998, What We Owe to Each Other (Belknap Press of Harvard University Press, Cambridge, Mass)] version of contractualism, and the social dilemma literature, this article (...) considers what types of behaviors should be followed by both parties in an established firm–stakeholder relationship in order to reach an outcome that is defensible both in terms of morality and viability. It is argued that a normative foundation, which advises firms and stakeholders to ground their behavior on principles that could not reasonably be rejected by others, forms a basis for moral and viable behavior that can be expressed in the form of a strategic rule that excludes defection and utilizes the option to exit in response to the other participant’s defection. Then, a set of testable propositions is developed that describe how a firm and its stakeholders can further promote moral and viable relationships. (shrink)

The present study combines dehumanization research with the concept of organizational trust to examine how employees perceive various types of maltreatment embedded within the organizational practices that form the ethical climate of an organization. With the help of grounded theory methodology, we analyzed 188 employment exit interview transcripts from an ICT subcontracting company. By examining perceived trustworthiness and perceived humanness, we found that dehumanizing employees can deteriorate trust within organizations. The violations found in the empirical material were divided into animalistic (...) and mechanistic forms of dehumanization and linked to perceived integrity and benevolence, respectively. Based on the results, a model describing the link between dehumanization and trust is presented and discussed in relation to the ways in which perceptions of humanness become rooted in practices and affect the basic assumptions underlying ethical organizational behavior. (shrink)

The issues of organizational wrongdoing damage organizational performance and limit the development of organizations. Although organizational members may know the wrongdoing and have the opportunity to blow the whistle, they would keep silent because of the interpersonal risks. However, leaders can play an important role in shaping employee whistleblowing. This study focuses on discovering the mechanisms of how authentic leaders influence employee whistleblowing with a sample from China. Results demonstrate that authentic leadership is positively related to internal whistleblowing. Team psychological (...) safety partly mediates the relationship between authentic leadership and internal whistleblowing. Personal identification partly mediates the relationship between authentic leadership and internal whistleblowing. The study contributes to the extant theory by filling the gap between leadership and whistleblowing. (shrink)

Management scholars have paid close attention to the construct of organizational or corporate reputation, particularly in the applied business ethics and corporate social responsibility fields. Extant research demonstrates that CR is one of the key mediators between CSR and important organizational outcomes, which ultimately improve organizational performance. Yet, hitherto the research focused on CR construct has been plagued by multiple definitions, conflicting conceptualizations, and unclear operationalizations. The purpose of this article is to provide theoretical ground for positioning of CR as (...) an assessment construct that is modeled as a second-order factor affecting individual first-order dimensions, and to provide methodological and empirical support toward such conceptualization. We assert that intangible, socially complex, and causally ambiguous CR can be accurately estimated through its individual measurable dimensions. Using survey data from Peru, we empirically test the hypothesized second-order reflective model within a hierarchy of nested and non-nested models, and compare its model fit and predictive power with alternative conceptualizations. Modeling CR as a second-order reflective construct relies on a set of theoretical propositions and yields several methodological advantages, including strong conceptual interpretability and parsimony when tested within a nomological context. We explicitly demonstrate positive organizational outcomes of CR: customer trust, corporate identification, in-role behavior, and extra-role behavior. Then, we demonstrate that the shorter scales of CR can be used as a good proxy for the full construct measure. The paper concludes by highlighting theoretical insights, and methodological and managerial implications of the findings. (shrink)

Developing and implementing a meaningful code of conduct by managers or consultants may require a change in orientation that modifies the way these precepts are determined. The position advocated herein is for a different approach to understanding and organizing the guiding parameters of the firm that requires individual reflection and empowerment of the entire organization to advance their shared values. The processes involved are discussed using four discrete stages that move from the personal to the work team and to the (...) unit to the full company, followed by the board of directors’ evaluation. The hoped-for end product is dynamic, employee-driven, codes of conduct that recognize the systemic and far-reaching impact of organizational activities across internal and external stakeholders. Operational details for and some issues associated with its implementation are also provided. (shrink)

Little is known about employees’ responses to their organizations’ initiatives in corporate social responsibility (CSR). Academics have already identified a few outcomes regarding CSR’s impact on employees’ attitudes and behaviours; however, studies explaining the underlying mechanisms that drive employees’ favourable responses to CSR remain largely unexplored. Based on organizational identification (OI) theory, this study surveyed 155 employees of a petrochemical organization to better elucidate why, how and under which circumstances employees might positively respond to organizations’ CSR initiatives in the controversial (...) oil industry sector. Findings first support that perceived CSR (i.e. environmental CSR) positively relates to employees’ OI which is known as an important antecedent of employees’ outcomes (Riketta, J Vocat Behavior, 66(2):358, 2005). Furthermore, results highlighted that the relationship between perceived CSR and employees’ OI is mediated by organizational trust. Finally, this study also revealed that some contingency factors such as employees’ attributions of self-centred motives to their organization’s investment in environmental issues can moderate the relationship between perceived CSR and organizational trust. Based on these findings, it is argued that CSR initiatives can support organizations’ efforts to maintain a strong relationship with their employees, and gain their support even in a controversial industry sector. (shrink)

We examine deceptive impression management's effect on a supervisor's ratings of promotability and relationship quality (i.e., leader-member exchange) via the mediating role of the supervisor's recognition of deception. Extending ego depletion theory using social information processing theory, we argue that deceptive impression management in a supervisor-subordinate relationship is difficult to accomplish and the degree that deception is detected will negatively impact desired outcomes. Data collected from a matched sample of 171 public sector employees and their supervisors supported this model and (...) indicated that recognition fully mediated the negative relationships between deceptive impression management with supervisor's rating of promotability and relationship quality. (shrink)

In the slipstream of several large-scale corporate scandals, the board of directors has gained a pivotal position in the corporate governance debate. However, due to an overreliance on particular methodological (i.e. input–output studies) and theoretical (i.e. agency theory) research fortresses in past board research, academic knowledge concerning how this important governance mechanism actually operates and functions remains relatively limited. This theoretical paper aims to contribute to the promising stream of research which focuses on behavioural perspectives and processes within the corporate (...) board, by delving into one of the research areas perhaps plagued most by these predominant approaches: board leadership. In adopting a team perspective on the board of directors our study goes beyond traditional board leadership research, which has turned a blind eye on actual leadership dynamics, by examining leadership processes and behaviours inside the board team. Specifically, we develop a conceptual framework addressing a novel and ethical approach to team leadership within the board, i.e. shared leadership, which has previously been demonstrated to result in performance benefits in various other team settings. (shrink)

There is a need of further research to understand how social capital in the organization can be fostered. Existing literature focuses on the design of reciprocity norms, procedures and stability employment practices as the main levers of social capital in the workplace. Complementary to these mechanisms, this paper explores the impact of ethical managerial behaviour on the development of social capital. We argue that a managerial behaviour based on the true concern for the well-being of employees, as well as their (...) motivational and ethical development, can be particularly important for the generation of social capital in the organization. It is suggested that manager's behaviour should be based on three principles: following examplary behaviour, helping the employees to value the consequences of their actions in other persons, and not betraying employee's trust. When the manager conforms to those principles, he can ease the process through which employees develop associability and identification-based trust with the firm, the two main components of 'Organizational Social Capital'. Bringing ethics into the debate of social capital creation seems to us fundamental, as social capital in the firm is likely to be influenced by the ethical and motivational development of its members. (shrink)

Taking credit is the process through which organizational members claim responsibility for work activities. We begin by describing a publically disputed case of credit taking and then draw on psychological, situational, and personality constructs to provide a model that may explain when and why organizational members are likely to take credit. We identify testable propositions about the credit-taking process, discuss ethical aspects of credit taking and suggest areas for research on credit taking in organizations.

The study analyzes the influential factors of consumers’ willingness to purchase gray-market smartphones by considering the model of novelty seeking, status consumption, integrity, and perceived risk. Attitude toward counterfeit is used as mediation in the model. The causalities in the model of problematic willingness of consumer to purchase gray-market smartphones are hypothesized. A total sample of 350 respondents with 238 effective samples is collected by interviewing with questionnaires at the service counters of telecommunications operators. Structure equation modeling (SEM) is adopted (...) in the analysis. Consumers’ attitude toward counterfeit goods is found to be positively related to the willingness of consumers to purchase gray-market smartphones, but perceived risk is negatively related to consumers’ willingness to purchase. As for personality constructs, integrity and status consumption are found to be negatively related to consumers’ attitude toward counterfeit goods, but novelty seeking is positively related to the attitude. Further, managerial implications for branded smartphone manufacturers and telecommunications regulators are provided by the research. (shrink)

Although empowering leadership is central to employees, leaders, and organizations, few studies have examined follower behavior and its role in incentivizing leaders to engage in empowering leadership. We use an exploratory, sequential mixed methods approach to explore comprehensively the influence of employee characteristics (i.e., work performance and ethical behavior) and leader-perceived threats on empowering leadership. We conducted two studies—the first entailed in-depth interviews of 24 managers from different industries to identify (i) the primary employee factors that determine empowering leadership and (...) (ii) the types of leader-perceived threats. The five employee factors and three leader-perceived threats identified lay the groundwork for the quantitative research in the second study. We used leader–member exchange theory and social dominance theory in analyzing data from 357 pairs of employee–supervisor questionnaires. The analysis confirmed the importance of employee ethical behavior (versus work performance) in predicting empowering leadership, and the crucial role of leader trust in connecting employee ethical behavior and work performance with empowering leadership. Leader-perceived power threats negatively influence empowering leadership and mitigate the positive impact of leader trust on empowering leadership. Thus, this study extends the literature’s perspective about empowering leadership to include ethical concerns and leader–member interaction. (shrink)

Upholding cooperative norms via punishment is of central importance in organizations. But what effect does punishing have on the reputation of the punisher? Although previous research shows third parties can garner reputational benefits for punishing transgressors who violate social norms, we proposed that such reputational benefits can vary based on the perceived motive for the punishment. In Studies 1 and 2, we found that individuals who endorsed a consequentialist motive for punishing were seen as more trustworthy. In Study 3, the (...) results showed that when pitted against one another, a person who endorsed a consequentialist motive for punishing was chosen more often as a partner in a Trust Game. In Study 4, we found that a manager who expressed a consequentialist reason for punishing an employee was seen as having less psychopathic tendencies, and this related to the manager being perceived as more trustworthy and a superior cooperation partner. Using a recall methodology, Study 5 results showed that employees who perceived their managers as having more consequentialist motives for punishing also perceived their managers as being less psychopathic and more trustworthy. Theoretical and practical implications are discussed. (shrink)

The issue of trust has increasingly attracted attention in the business ethics literature. Our aim is to contribute further to this literature by examining how the use of the carbon copy function in email communication influences felt trust. We develop the argument that the use of cc enhances transparency—representing an important characteristic of workplace ethics—and hence promotes trust. We further argue that a downside of the cc option may be that it can also be experienced as a control mechanism, which (...) may therefore negatively affect trust. The results of our first study showed that the use of cc indeed enhances perceived transparency, but at the same time also leads to the experience of increased control. Building upon this insight, the findings of five subsequent studies consistently revealed that the use of cc negatively influences felt trust. More precisely, employees felt trusted the least when the supervisor was always included in cc. This effect on felt trust also negatively influenced how trustworthy the organizational climate was perceived. We further replicated these results in two field surveys, which showed that the negative effect of cc on felt trust lowered perceptions of psychological safety and contributed to a culture of fear. Taken together, our findings suggest that when transparency in email communications is experienced as a control mechanism, its use is perceived as unethical, rather than as ethical. Implications and recommendations for future business ethics research are discussed. (shrink)

Trust is a key term in social sciences and organizational research. Trust as well is a term that originates from and speaks to our human relational experience. The first part of the paper explores trust as it is interpreted within contemporary sociology and organizational research, and systematically questions five basic assumptions underlying the interpretation of trust in organizational research. The last part of the paper reviews selected phenomenological methodological studies of trust in work life situations, in a quest for how (...) experiential trust can emerge and be studied in professional organizations. We suggest looking for the “in-betweens” or spaces of possibilities within organizational structures, roles and tasks for emerging, experiential trust. (shrink)

This article reviews the interdisciplinary literature on the UN Global Compact. The review identifies three research perspectives, which scholars have used to study the UN Global Compact so far: a historical perspective discussing the Global Compact in the context of UN-business relations, an operational perspective discussing the composition and impact of its participants, as well as a governance perspective discussing the constraints and opportunities of the initiative as an institutionalized arena for addressing global governance gaps. The authors contrast these three (...) perspectives and identify key empirical as well as conceptual scholarly contributions. The remainder of this article contains focused summaries of the articles selected for this Special Issue. All articles are introduced and evaluated against the background of the three research perspectives. (shrink)

This article argues that while ethical leadership in mainstream theorising is assumed to be a cognitive exercise, leaders’ bodies in fact play a significant role in the social construction of ethical leadership. Their bodies become particularly potent when leaders are depicted via the interplay between visual and verbal modes in the media. In order to extend current understandings of ethical leadership, this study employs a discourse analytic approach to examine how visual and verbal devices convey ethical leadership for two of (...) Australia’s major bank chief executive officers—John Stewart and Ralph Norris—before and during the global financial crisis. Based on the analysis, this article demonstrates that ethical leadership is constructed through the confluence of elite and working class masculinities that is multimodally embodied and disembodied. The article suggests that what it means to be an ethical leader is invariably informed by class-based patriarchal norms that can serve to reinforce the masculinisation of ethics. (shrink)

Due to the frequent occurrence of ethical transgressions and unethical employee behaviors, there has lately been an increasing interest in the ethical foundations of contemporary organizations. However, large-scale comprehensive analyses of organizational ethics are still comparatively limited. Our study contributes to both management control and business ethics literature by empirically examining potential antecedents as well as resulting effects of ethical work climates on organizational-level outcomes. Based on a cross-sectional survey among 295 large- and medium-sized companies, we find that more informal (...) means of control constitute important elements of a broader organizational control context that are strongly related to the emergence of coherent ethical work climates with an increased awareness of ethical issues. Moreover, our results show that the relationship between ethical work climates and organizational performance can be considered as rather indirect as it is fully mediated by increased mutual trust among employees. Overall, our study thus supports the particular importance of ethical work climates and identifies appropriate means to encourage ethical conduct. (shrink)

The interest in ethical leadership has grown in the past few years, with an emphasis on the mechanisms through which it affects organizational life. However, research on the boundary conditions that limit and/or enhance its effectiveness is still scarce, especially concerning one of the main misconceptions about ethical leadership, its incompatibility with effectiveness . Thus, the present study examines the relationship between ethical leadership and organizational deviance via affective commitment to the organization, as a reflection of the quality of the (...) employee–organization relationship and proposes this relationship is conditional on the supervisor’s personal reputation for performance . Using a sample of 224 employees and their respective supervisors from 18 organizations, we confirmed our hypotheses . Our findings suggest that ethical leadership is positively related to employees’ affective commitment to the organization, particularly when supervisor’s reputation for performance is high, which in turn is associated with decreased organizational deviance. The theoretical and practical implications of these findings conclude the paper. (shrink)