We examine the influence of social capital in the municipal bond market. Defined as the norms and networks that encourage cooperation, social capital is a social construct which captures a region’s level of altruism, trustworthiness, and propensity to honor obligations. We expect that municipalities with high social capital are more trustworthy and likely to honor their debt obligations, which will result in lower bond yields. Our findings confirm that the bonds issued by municipalities located in high social capital counties exhibit (...) lower yields compared to the municipalities located in low social capital counties. Our findings are also supported by bond prices in the secondary market, which shows that bonds from the municipalities located in high social capital regions have higher prices. Additional tests reveal that the influence of social capital is stronger for general obligation bonds, suggesting that social capital matters more for bonds where the willingness of municipalities to pay taxes is an important factor. Lastly, we document that the bonds of municipalities in high social capital areas are less likely to have insurance, suggesting that social capital may act as a substitute for bond insurance. (shrink)

There is a need for further research to understand how social capital in the workplace can be promoted. This article studies the generation of social capital from a comprehensive perspective that integrates ethics and general management. We propose the concept of “ethical work context” as an influential antecedent of the social capital in the firm. The ethical work context, which is aligned with the “humanizing culture” approach proposed by Melé ( Journal of Business Ethics 45 (1), 3–14, 2003a ), allows (...) a broader comprehension of the concrete management practices and organizational dynamics that generate organizational social capital. It is argued that social capital, understood as a by-product of the ethical work context, results both from organizational design and ongoing managerial activity. Creating an ethical work context brings ethics and social capital into the realm of the general manager; a figure that has remained absent from the social capital literature. (shrink)

A vision of a living code of ethics is proposed to counter the emphasis on negative phenomena in the study of organizational ethics. The living code results from the harmonious interaction of authentic leadership, five key organizational processes (attraction–selection–attrition, socialization, reward systems, decision-making and organizational learning), and an ethical organizational culture (characterized by heightened levels of ethical awareness and a positive climate regarding ethics). The living code is the cognitive, affective, and behavioral manifestation of an ethical organizational identity. We draw (...) on business ethics literature, positive organizational scholarship, and management literature to outline the elements of positive ethical organizations as those exemplary organizations consistently practicing the highest levels of organizational ethics. In a positive ethical organization, the right thing to do is the only thing to do. (shrink)

Ethics has recently gained importance in the debate over social capital creation. The goal of this study is to empirically examine the ethical work context of the firm as an antecedent of the firm’s internal social capital. We build on person–situation interactionist theory to argue that individuals can learn standards of appropriate behavior induced by the ethical work context in which they are embedded. By creating an ethical work context, managers can facilitate the process through which employees learn to feel (...) empathy toward others and establish profound affective relationships with them. Data were collected from 1,817 individuals in 36 business units of 7 Spanish, French, and Portuguese corporations. Using structural equation and hierarchical linear modeling techniques, our results reveal three phenomena. First, we show that a business unit’s ethical work context exerts significant influence on the structural, relational, and cognitive dimensions of internal social capital. Second, the managerial practices that constitute the ethical work context are not equally important across the seven corporations; in particular, managerial practices are more influential in those corporations that belong to knowledge-intensive industries. Third, a business unit’s internal social capital is influenced not only by the business unit’s ethical work context, but also by the ethical work context of the corporation to which it belongs. (shrink)

Focusing on the virtue-ethics tradition, this article analyzes the practice of networking within the business context. First, it distinguishes three types of networking: utilitarian, emotional, and virtuous. Virtuous networking does not exclude utilitarian and emotional networking, but these latter forms should be practiced with reciprocity. It is argued that virtuous networking requires (1) acting with good faith, sharing honest goals, and participating in licit activities; (2) sharing information, knowledge, and resources with reciprocity and even with gratuity; (3) serving with justice (...) in asymmetrical power relationships; and (4) exercising a positive ethical influence within the network. Specific forms of unethical behavior in the practice of networking include (1) bad faith or abuse of trust, (2) opportunism, (3) abuse and misuse of power, (4) network cronyism, (5) networking as disguised bribery, and (6) cooperating in the wrongdoing of other actors of the network. The article concludes with some remarks about the role of ethics in social networks. (shrink)

This paper provides an in-depth analysis of the privacy rights dilemma surrounding radio frequency identification (RFID) technology. As one example of ubiquitous information system, RFID has multitudinous applications in various industries and businesses across society. The use of this technology will have to lead to a policy setting dilemma in that a balance between individuals’ privacy concerns and the benefits that they derive from it must be drawn. After describing the basic RFID technology some of its most prevalent uses, a (...) definition of privacy is derived in the context of information systems. To illustrate current attempts at controlling the undesirable side effects of RFID, Lessig’s cyberspace framework is presented. It is found that each of Lessig’s components is inadequate at preventing individual privacy violations in RFID. The main focus within this framework is on the norms of society. The social norm mechanism that addresses privacy issues in cyberspace is the Fair Information Practices Principles (FIPP). After an analysis of these principles, it is posited that the FIPP only deal with procedural justice issues related to data collection and omit distributive and interactional justice reasoning related to the actual beneficial and detrimental outcomes to the individuals whose data is being obtained. Thus, RFID is presented in the context of the tension between the many benefits that are provided by the technology in social exchanges, and the risk it carries of the loss of privacy. The new, expanded framework recognizes both sides of the issue with the ultimate goal of providing a greater understanding of how privacy issues can be addressed with RFID technology. (shrink)

Ethical networks are an emerging form of social alliance based on collaboration between organizations that share a common ethical commitment. Grounded in a theoretical framework of virtue-based business ethics and focusing on nonprofit alliances, this study investigates the virtuousness of ethical networks; that is, how they trigger virtuous practices in their member nonprofit organizations. Adopting a qualitative grounded theory approach, the study focuses on one of the largest Italian ethical networks of nonprofit organizations operating in the social care sector. The (...) findings show that shared ethical values and religious beliefs are positively associated with ethical network building. Based on these findings, a circular model of virtuousness is proposed in which ethical networks foster virtuous practices among their members at four levels: (1) the strategic orientation level, (2) the institutional level, (3) the organizational level, and (4) the relational level. At each of these levels, ethical networks foster a habituation to virtues and the propagation of virtuous behaviors among their members. Theoretical, practical, and social implications of the research findings are discussed. (shrink)

Background: One of the main concerns in critical care units is the development of humanistic approaches. In this regard, recognizing the factors affecting humanistic nursing can contribute to humanizing nursing care in these units. Objective: The objective was to recognize the influential factors of humanistic nursing in critical care units. Research design: This qualitative study was carried out using a phenomenology method. Thirty-nine in-depth unstructured interviews were performed. The data were analyzed using the phenomenological nursology approach. To guarantee trustworthiness, prolonged (...) engagement, member check, triangulation of resources, and maximum variation sampling were used. Participants and research context: Purposeful sampling was employed to select 10 nurses, 8 patients, and 4 patient’s relatives from the intensive care unit and critical care unit departments. Ethical consideration: This study was approved by the ethics committee of Lorestan University of Medical Sciences with the code of LUMS.REC.1395.121. Finding: The participants’ experiences were reflected in the following three main concepts: (a) moral, educational, and existential nature of the two humans involved in the interaction; (b) maintenance of the nurses’ dignity; and (c) interactions in the cultural and social context. Discussion: The nurse and patient, organizational environment, and society give rise to a set of intertwined characteristics which influence the realization of humanistic nursing. By affecting the nurses’ educational background and maintaining their dignity, the atmosphere of the hospital and cultural readiness of the society pave the way for delivering the humanistic care. (shrink)

We address how the leaders of a Catholic business school can articulate and assess how well their schools implement the following six principles drawn from Catholic social teaching : produce goods and services that are authentically good; foster solidarity with the poor by serving deprived and marginalized populations; advance the dignity of human work as a calling; exercise subsidiarity; promote responsible stewardship over resources; and acquire and allocate resources justly. We first discuss how the CST principles give substantive content and (...) meaning to the Good Goods, Good Work, and Good Wealth framework in The Vocation of the Business Leader and then discuss their congruencies and tensions with the UNGC and UNPRME principles. Next, we describe the Catholic Identity Matrix, an assessment tool that provides a quantitative and qualitative portrait of how well a Catholic business school integrates, within the scope of its mission and capacities, the three goods and related CST principles in its strategies, policies, activities, and processes. The concluding section discusses implications for ongoing UNGC and UNPRME assessment, reporting, and development efforts, and addresses the generalizability of our approach to business schools who draw their inspiration and moral principles from other faith-based or secular traditions. (shrink)

While a large amount of work has been done to understand public good and to construct conceptual models explaining the antecedents of collective action, current literature is flawed in that most of them only examine the lower-level public good and attribute people's participation in collective action to external variables. It pays little to the developmental nature of collective action. Utilizing Ken Wilber's theory of integral psychology, this paper proposes a holistic definition of public good, emphasizing its different levels of development. (...) The paper also introduces an integral model of collective action that explains the antecedents of collective action in terms of not only the external individual behavior and social factors but also the internal aspects of individuals, organization, and society. (shrink)

Over the last 20 years, organizations have attempted numerous innovations to create more openness and to increase ethical practice. However, adult students in business classes report that managers are generally bureaucratically oriented and averse to constructive criticism or principled dissent. When organizations oppose dissent, they suffer the consequences of mistakes that could be prevented and they create an unethical and toxic environment for individual employees. By distinguishing principled dissent from other forms of criticism and opposition, managers and leaders can perceive (...) the dissenter as an important organizational voice and a valued employee. The dissenter, like the whistleblower, is often highly ethically motivated and desires to contribute to the organization’s wellbeing. Recognizing and protecting principled dissent provides the means of transforming organizations. By restoring dignity to the individual, organizations gain more productive and loyal employees, and they create an environment that promotes critical thinking, learning, and a commitment to ethics. (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)

Solidarity is a principle oriented toward the common good that ensures that each person can have the necessary goods and services for a dignified life. As such, it is very often approached in a theoretical manner. In this empirical study, we explored the development of a culture of solidarity within an organizational context. In particular, we qualitatively investigated how a culture of solidarity can concretely spread within and beyond organizations by conducting 68 semi-structured interviews with members of three common good-oriented (...) organizations located in the Philippines, Korea, and Paraguay. We found that a culture of solidarity develops through a three-step process that includes constructing the solidarity mission, sharing solidarity, and disseminating solidarity, which together form a virtuous circle. We further found that solidarity is not supported by constrained, instrumentalized, or sacrificial actions, but can instead be a free, authentic, and fulfilling way for members of an organization to flourish while serving the mission of their company. (shrink)

This paper is a conceptual essay rooted in two basic observations. First, felt dignity—the subjective sense people have of their own autonomy and self-worth—ultimately emerges from, and is thus most evident in the connective space between people. Second, stories are everyday works of art that afford unique insight into the subtle complexities of the socio-emotional realities of work. Building on these observations, we describe how personal stories about episodes of interpersonal connections and disconnections at work—moments in which we feel mutual (...) appreciation and empowerment or a sense of separation and distancing from another—can help us better understand the felt experience of dignity at work. In attending to such personal stories as art, we become more attuned to their felt, aesthetic qualities, which then helps us develop a more holistic and visceral appreciation of how actors experience, make sense of, and claim felt dignity. In support of our ideas, we present a few illustrative story excerpts and briefly consider how a select few aesthetic qualities—the way the stories’ elements are configured, the stories’ acuity or sharpness, and their rawness—enhance the felt impact of the stories and help to remind us of their and the storytellers’ intrinsic value. (shrink)

Women are underrepresented in managerial positions and company international assignments, in part due to gender discrimination. There is a lack of fair and just treatment of women in selection, assignment and promotion processes, as well as a lack of virtue shown by business leaders in not upholding the principle of assigning comparable women and men equally to positions in management and postings abroad. Female professionals, however, initiate their own expatriation more often than they are assigned abroad by their company, and (...) usually as often as men self-expatriate. What causes women to self-initiate expatriation? Women’s proactivity, in part an attempt to redress the disadvantage they face in managerial career advancement, appears influential, as are career and family motivations. Indeed, during expatriation, women fare well in their career and they repatriate only at the same rate as men. Compared with men, however, women repatriate less often for career than for family reasons. On their return, despite their international experience, women do not gain as much of a financial return on their investment in self-expatriation as do men, suggesting that women may suffer unfair, non-meritorious treatment at home. Overall, self-initiated expatriation provides a new, gendered, social context for researching women’s career advancement. The ethical issues associated with women’s self-expatriation – a lack of fairness and justice in selection, assignment and promotion decisions, and a lack of virtue shown by business leaders in upholding fair and just human resource decisions by gender – suggest practical avenues to resolve these issues. (shrink)

Inter-organizational models are both a well-documented phenomena and a well-established domain in management and business ethics. Those models rest on collaborative capabilities. However, mainstream theories and practices aimed at developing these capabilities are based on a narrow set of assumptions and ethical principles about human nature and relationships, which constrain the very development of capabilities sought by them. This article presents an Aristotelic–Thomistic approach to collaborative entrepreneurship within and across communities of firms operating in complementary markets. Adopting a scholarship of (...) integration approach and evaluating the six studies of communities of organizations, we contribute an inter-organizational network model based on the assumptions about human motives and choice offered by Aristotle. We argue that the sustainability of inter-organizational communities depends on how rich is the set of assumptions about human nature upon which they are based. In order to develop and sustain collaborative capabilities in inter-organizational communities, a set of assumptions that takes both self-regarding and others’-regarding preferences as ends is required to avoid any kind of instrumentalization of collaboration, which is an end in itself. Implications for theory and practice are discussed. (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)

We provide a conceptual framework and a case study of how an organization links its mission and espoused values with its operating practices. Conceptually, we locate this mission integration theme within Simons’ management accounting and control framework, and then adapt Schatzki’s site ontology of social practice to develop general research expectations for case studies of espoused values/practice linkages. Empirically, we apply the conceptual framework to a case study of linkages among an actual company’s espoused values, human resource practices, and financial (...) management during its 40-plus year history. The concluding section summarizes the study and discusses its implications, limitations, and opportunities for future research. (shrink)

Appropriate enablers are essential for management of intellectual capital. Through the use of structural equation modeling, we investigate whether organic renewal environments, interactive behaviors, and trust are conducive to intellectual capital management processes, as they each depend upon the establishment of a climate emphasizing mutual respect. Owing to a lack of clarity in the literature, we tested the ordering of the variables and found statistical significance for two ordering alternatives. However, the sequence presented in this article provides the best statistical (...) fit: an organic renewal environment provides a foundation for interactive behaviors, which leads to trust, and thus is consistent with the development of intellectual capital management pro- cesses within the organization. (shrink)

Social relations are predominantly influenced by an exchange paradigm whereby the logic of reciprocity shapes behaviour. If the notion of exchange instrumentalism is common across different business disciplines, this does not deny attempts – such as through gift exchange theory – to present different conceptions of traditional exchange-based relations. Gift exchange theory appears promising as it seeks to establish more meaning and significance to the nature and context of exchange relations between human actors or parties. The underlying processes may be (...) different for gift exchange and more traditional economic-based exchanges, but the general outcome remains the same – the obligation of reciprocity between actors. In this article, we develop an alternative conception of social and business experience that transcends the dominant logic of exchange: the existential gift. Firmly embedded in the idea of giving for its own sake, the existential gift suggests that for some individuals the expectations of reciprocity are neither sought nor established. Generosity that is expressed in both tangible and intangible ways need not depend on the response of intended receivers or recipients to precipitate future acts of giving. Based on the logic of unconditionality, the existential gift provides human actors with greater freedom in their choices and relationships. It may well be that this freedom, in turn, creates a new ‘ethic of generosity’ whereby significant progress can be made towards developing more human models and practices in business. (shrink)

The logic of gift and gratuitousness in business activity raised by the encyclical Caritas in Veritate stresses a deeper critical evaluation of the category of relation. The logic of gift in business includes two aspects. The first is considering the logic of gift as a new conceptual lens in order to view business relationship beyond contractual logic. In this view, it is crucial to see the circulation of goods as instrumental for the development of relationships. The second aspect is to (...) qualify the relationships established through the gift, and to think about the motivation in gift-giving, which has an ethical content. We give because we have received, and through gift-giving we develop relationships that have a high ‘bonding value’. Analysing the logic of gift in business management may permit us to gain an understanding of the ambiguity of gift-giving in organizations. Looking at the relationships between organizations and employees, and organizations and customers, we can discover why the logic of gift is often misunderstood or abused in its application, and how it should be applied to be more consistent with the message of Caritas in Veritate. (shrink)

Despite its central position in the history of European and Christian thought on the protection of human dignity, the virtue of mercy is currently a problematic and under-developed concept in business ethics, compared to related ideas of care, compassion or philanthropy. The aim of this article is to argue for its revival as a core principle of ethical business practice. The article is conceptual in method. An overview is provided of the scope of contemporary business ethics research on related topics (...) and clarifies some of the similarities and differences between mercy and popular terms, such as compassion and prosocial behaviour. The question is then explored as to why mercy has so little traction in business ethics. Some of the history of the idea of mercy in European and Anglophone philosophy is discussed, from Anselm and Aquinas to the present day, showing how discourse on mercy came to be split into a wider concept of the prevention and alleviation of suffering (_misericordia_) and a narrower one of clemency or leniency. Aquinas’s wide concept of the virtue of _misericordia_ is developed as the basis for a principle of mercy, which is applicable directly to corporations. The practical implications of this for standards of corporate behaviour towards employees and other stakeholders are then considered through the introduction of a ‘vulnerability grid’. The grid offers a critical contrast to other analysis tools, such as stakeholder power-interest matrices. Cases drawn from empirical studies are used to illustrate application of the grid and to challenge some common assumptions of stakeholder theory. (shrink)

The study examines the necessity and sufficiency of gratitude for supporting workplace happiness among Indian university teachers. It also explores the mediating effect of psychological capital and social capital in the relationship between gratitude and workplace happiness. The moderating effect of spiritual climate is investigated. A survey of 726 university staff in India was undertaken to examine the relationship between gratitude and workplace happiness. A series of statistical tests involving correlation, multiple regression, and necessary condition analysis was undertaken from the (...) data set. The mediation effect of psychological capital and social capital was investigated using bootstrapping estimates using PROCESS Macro in SPSS. Also, the moderation effect of spiritual climate was explored using PROCESS Macro in SPSS. The results reveal that gratitude is both a sufficient and necessary condition for workplace happiness. It also suggests a significant mediating effect of psychological capital and social capital. Also, a significant effect of spiritual climate amid the relationship between gratitude and workplace happiness is concluded. The study is one of the first studies that explore the relationship between gratitude and workplace happiness. It examines the mechanism through which gratitude influences happiness in the workplace. (shrink)

This study examines how organizations may embed humanizing narrative devices and related activities in their management control systems to enact humanizing business practices. As defined here, narrative devices include complete stories as well as story fragments that may under certain circumstances invoke a shared narrative context. Humanizing narrative devices respect a person’s dignity and capacity for personal growth, respect human rights, promote care and service for others, and improve an organization’s ability to serve the common good rather than only narrow (...) special interests. The first section discusses the sense-making and action-guiding properties of narrative devices, and then discusses principles for applying them in a manner that respects others in a diverse workplace. The second section adapts Simons’ management accounting and control framework to trace interdependencies among an organization’s narrative devices and related activities. The third section applies the combined narrative devices and systems framework to illustrate how an actual company has articulated, debated, revised, and enacted its core values over time. The concluding section discusses the analysis, its contributions to the literature, and implications for future research. (shrink)

Leadership, due to its power to influence, is one of the most important tools available to organisation in order to become competitive, and as such it is one of the recurring themes in social sciences. Today, new leadership strategies have emerged as new drivers of effectiveness in workplace relationships based on the leader–follower relationship. One of these leadership strategies is servant leadership, whose motto is ‘put and promote followers’ interests and needs first’, which makes this leadership style strongly linked to (...) exercising high ethics. As agapao love and service to others are important distinctive features of these leaders’ decisions and behaviours, the ethical influence relationship with their collaborators is thought to reach high levels. It is no surprise then that this ethical influence relationship makes followers to serve others and inculcates in followers values such as acceptance, tolerance, empathy, love, or forgiveness. More importantly, these leaders might make followers to grow in matureness, intelligence, creativity, and self-management, among other aspects. However, despite findings in recent literature of positive effects of servant leadership on valuable employee outcomes, research is still lacking on the results of this phenomenon on collective organisational variables and its influence in work groups. A case study analysis of a historic and emblematic hotel situated in a small Spanish city declared by UNESCO as a World Heritage Site provides evidence of the relationship between servant leadership and valuable work-group outcomes such as empowerment climate and group creativity. (shrink)

Confucianism has attracted some attention in business ethics, in particular as a form of virtue ethics. This paper develops ideas about Confucianism in business ethics by extending discussion about Confucian ideas of ritual. Ritual has figured in literature about organisational culture, but Confucian accounts can offer additional ideas about developing ethically desirable organisational cultures. Confucian ritual practice has diverged from doctrine and from the classical emphasis on requirements for concern and respect as parts of ritual. Despite some differences of emphasis (...) amongst early writers, classical texts like the Analects and Mencius allow for the importance of ritual as opportunity for interpersonal encounter. These are texts that bring out the flexibility and context-sensitivity of ritual, with associated implications about the need for care and attention to other individuals. They eschew ritual as unthinking repetition, in favour of ritual as meaningful expression. The mutual awareness such ritual can engender is an important part of human existence. Such ritual is a means to solving coordination problems through common knowledge, as opposed to unthinking routine. Undue routinisation can be one problem with organisational ritual, while another can be use of ritual as a means of oppressive control. In organisations, ritual should satisfy general requirements of concern and respect, and should maintain opportunities for mutual encounter. The difference between arrangements which do or do not offer such opportunities may suggest lines of development for virtue ethics in business. (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)

This conceptual paper analyses the arguments which have been made in favour of a transition towards humanistic management. In order to reconcile economic as well as moral arguments an integrative model of humanistic management is presented. This model outlines prospective lines of empirical research especially in the area where business conduct is profitable but not humanistic.

Recently, various studies have suggested that ethical leadership offers an important antecedent of fluid internal workplace relationships, which are conducive of internal social capital. Yet existing research has neither inquired into potential mediators of this relationship nor addressed the role of other distinct leadership strategies in encouraging such a valuable capital. This study advances previous research by examining if servant leadership, which seeks to put followers’ interests and needs first, can account for social capital variance within the work group, which (...) is the building block of organizations. New to the literature, we also investigate whether group citizenship behavior mediates this relationship. A sample of 352 work groups, spanning 187 hotels located in Spain, reveal that group citizenship behavior partially mediates the positive influence of servant leadership on group social capital. Managers can use these findings to lead their businesses in a more socially friendly direction while also building group social capital, which can improve the competitiveness of their work groups, and the entire business. (shrink)

Building on dissatisfaction with current approaches that entail a superficial conception of the firm’s moral agency, this article has two broad theoretical underpinnings. First, it refers to the Catholic Social Thought’s view of the enterprise as a community of work, which leads to place stress on the possibility of creating ‘organizational humanizing cultures’ that revolve around the principles of human dignity and the common good and allow organizational members to flourish. Second, the article draws on the perspective of the sociologist (...) Philip Selznick to emphasize the key role of ‘institutional leadership’ in the formation and maintenance of a moral organizational character, also suggesting that these processes involve an influence on the development of employees’ moral identity conceived as a driver of moral agency. On these theoretical grounds, the article’s central argument is articulated by claiming that human resource management can provide essential support for the development of organizational humanizing cultures. In particular, it is highlighted how human resource management professionals may operate as institutional leaders who contribute to the embedding of moral identities in the organizational context. (shrink)

Ethics has recently gained prominence in debates surrounding social capital creation. Despite the significant theoretical progress in this field, it still lacks empirical research. The goal of this study is to empirically explore the ethical leadership of supervisors as an antecedent of the firm’s social capital. We build on social learning theory to argue that employees can learn standards of appropriate behavior by observing the behavior of role models. By displaying and enforcing ethical behavior, supervisors can facilitate the process through (...) which employees learn to feel empathy toward others and establish profound affective relationships with them. Data were collected from 408 Spanish, French, and Portuguese part-time MBA students. Using structural equation modeling techniques, we show that the ethical leadership of supervisors exerts a significant influence on the structural, relational, and cognitive dimensions of social capital. (shrink)

The moral ideology of banking and insurance employees in Spain was examined along with supervisor role modeling and ethics-related policies and procedures for their association with ethical behavioral intent. In addition to main effects, we found evidence supporting that the person–situation interactionist perspective in supervisor role modeling had a stronger positive relationship with ethical intention among employees with relativist moral ideology. Also as hypothesized, formal ethical polices and procedures were positively related to ethical intention among those with universal beliefs, but (...) the relationship was much weaker among relativists. Thus, firms wishing to optimally promote ethical attitudes and behavior must tailor their organization-based initiatives to the individual characteristics of their employees. (shrink)

The aim of this article is to present the dynamics of the structure of human action to enable us to link the organizational level of institutions, norms, and culture of the firm. At the organizational level, the existing institutions and culture are the confines of our individual action. However, at the individual level, we focus on the external consequences of our acts. It is our acts that maintain social institutions and culture. The ethics of personal virtues demands an ethics of (...) institutions, the ethics which deals with the institutional means of realizing individual ends. All individuals choose courses of action by deciding what type of life is worth living. In this view, virtue (arete) occupies a central position, defining the paradigm that each society with its institutions and norms sets as the model of life to be lived (eudiamonia). (shrink)

One conventional view of businesses is to reduce them to mere performers of economic transactions in an exercise of exchange based on the “logic of self‐interest,” and under the criterion do ut des, meaning “I give in order that you may give.” Drawing from personalist philosophy, this article argues that financial and organizational interactions are encounters, relations between persons, not mere economic transactions. Furthermore, people involved in business have the capacity to establish relations of gratuity with others under the criterion (...) do propter alterum, that is, “give to the other as another,” without expecting a return. This criterion is at the core of the “logic of gift.” We argue that giving authentic gifts is intrinsically good, since it contributes to the human flourishing of those who practice this behavior. Implementing the “logic of gift” is also beneficial for the company because it contributes to humanizing the company. In addition, applying the logic of gift will probably bring about trust and social cohesion between people, with positive consequences for business performance, which is consistent with previous findings. (shrink)