Organisational psychological defences protect the self-esteem and moral integrity of the organisational personality even at the expense of sacrificing the morality of actions. This paper analyses the spectrum of defences used by an oil refinery and its parent company during an oil spill incident. A hypothetical model of defences built on Swajkowski’s four responses to accusations of organisational misconduct – refusals, excuses, justifications and concessions – is tested through this case. On the basis of empirical findings it is obvious that (...) defences delay, impede and interrupt the mitigation and recovery actions of incidents. It is not possible to break the defence behaviour of individuals because it is a built-in psychological mechanism in all humans serving a valuable purpose of dosing the pain of injury. However, it is possible to separate individual and organisational behaviour so that automatic organisational procedures mitigate, recover and, ultimately, prevent incidents. The organisational psychological task of crisis management is to mitigate the organisation’s ego defences, recover from its emotional turmoil and prevent further traumas by making its ego stronger and more flexible. The argument of this paper is that in practice organisational defences act as bumpers against becoming too conscious of the gap between the corporate rhetoric and reality, as subconscious breaks against too fast change demands, and as batteries in their preconscious effort to prepare for the change. Organisational refusals act as bumpers, excuses as breaks and justifications as batteries, while concessions imply that a change towards a more responsible corporation is taking place. (shrink)

The ethical behaviour and social responsibility of private companies, and in particular large corporations, is an important area of enquiry in contemporary social, economic and political thinking. In the past, a company's behaviour would be considered responsible as long as it stayed within the law of the society in which it operated or existed. Although this may be necessary, it is no longer sufficient. In this paper, we examine an energy company's response to an ethical incident in New Zealand which (...) prompted different responses across the country about the role of business in society. Thus, we argue that when a corporation is accused of unethical behaviour, executives of the company are usually compelled to offer responses to defend their actions and corporate image. Further, we use communicative response model, social issue life cycle theory, and organisational learning, to analyse the incident and how the company responded. Using social issues life cycle theory and organisational learning theory, we demonstrate that sustained pressure can potentially trigger a change of strategy that may serve to improve the ethical posture of a corporation and thereby improve the corporate image long term. We conclude that, although corporations may understand the significance of social issues to the performance and success of their business, this same understanding does not always translate into meaningful social action. (shrink)

The aim of this article is to define and delineate an ethical mindset. In deploying an interpretive mixed-methods analysis of the Australian services sector, data were collected through an online survey on 223 respondents followed by focus group interviews involving 20 participants. The analysis reveals evidence of ethical mindsets in Australian business context, the components of which are identified as being aesthetic judgment, spirituality, optimism, harmony and balance, contentment, truth telling, individual responsibility and professionalism. While the findings are limited to (...) the Australian context, it illuminates the value of mindsets to business ethics in a way that has theoretical rigour and practical relevance. Research has so far only considered business ethics within other mindsets (e.g. global mindset). This article provides a foundation for further application and development of mindset theory. (shrink)

Research in ethical decision making has consistently demonstrated a positive relationship between others’ unethical behavior and observers’ unethical behavior, providing support for the “Monkey See, Monkey Do” perspective (e.g., Robinson and O’Leary-Kelly, Acad Manage J 41:658–672, 1998 ). However, the boundaries of this relationship have received little research attention. Guided by theory and research in interpersonal distancing, we explore these boundaries by proposing and examining “moral differentiation,” the set of individual and situational characteristics that affect the degree to which one (...) is willing to be influenced by others’ unethical behavior. Using data from 655 undergraduate business students in two U.S. universities, we test moderating hypotheses regarding the influence of moral differentiation characteristics on the relationship between others’ unethical behavior and observers’ unethical behavior. Results suggest that strong moral identity, low need for affiliation, and extraversion weaken the relationship between others’ unethical behavior and observers’ unethical behavior. Implications for managers and future research are discussed. (shrink)

This paper investigates how the introduction of AI to decision making increases moral distance and recommends the ethics of care to augment the ethical examination of AI decision making. With AI decision making, face-to-face interactions are minimized, and decisions are part of a more opaque process that humans do not always understand. Within decision-making research, the concept of moral distance is used to explain why individuals behave unethically towards those who are not seen. Moral distance abstracts those who are impacted (...) by the decision and leads to less ethical decisions. The goal of this paper is to identify and analyze the moral distance created by AI through both proximity distance (in space, time, and culture) and bureaucratic distance (derived from hierarchy, complex processes, and principlism). We then propose the ethics of care as a moral framework to analyze the moral implications of AI. The ethics of care brings to the forefront circumstances and context, interdependence, and vulnerability in analyzing algorithmic decision making. (shrink)

The ethical behaviour and social responsibility of private companies, and in particular large corporations, is an important area of enquiry in contemporary social, economic and political thinking. In the past, a company's behaviour would be considered responsible as long as it stayed within the law of the society in which it operated or existed. Although this may be necessary, it is no longer sufficient. In this paper, we examine an energy company's response to an ethical incident in New Zealand which (...) prompted different responses across the country about the role of business in society. Thus, we argue that when a corporation is accused of unethical behaviour, executives of the company are usually compelled to offer responses to defend their actions and corporate image. Further, we use communicative response model, social issue life cycle theory, and organisational learning, to analyse the incident and how the company responded. Using social issues life cycle theory and organisational learning theory, we demonstrate that sustained pressure can potentially trigger a change of strategy that may serve to improve the ethical posture of a corporation and thereby improve the corporate image long term. We conclude that, although corporations may understand the significance of social issues to the performance and success of their business, this same understanding does not always translate into meaningful social action. (shrink)

The aim of this article is to investigate the relatively neglected and under-theorized area of ethical mindsets in the Australian services sector. Employing a mixed-methods approach, quantitative data was collected through online survey of 66 items and qualitative data was collected by focus group interviews with 20 participants. An analysis of the survey data suggests that ethical mindsets exist, and the qualitative analysis allowed the identified components to be refined. This research potentially adds to developing business ethics literature about ethical (...) mindsets and contributes to the methodological debate about the efficacy of online surveys and the mixed-methods approach. (shrink)

Nearly every day we participate in the vast, interconnected global economy. In doing so, we engage in chains of transactions that ultimately result in our benefiting from, or enabling, wrongdoing by others. In some cases this seems to be in itself wrong, but in many cases it seems unproblematic. I develop a concept of ‘ethical distance’ and argue that our responsibility for the wrongdoing of others is a function of our ethical distance from it. Furthermore, I argue that the concept (...) of moral responsibility is vague, but that when we become clearly responsible for wrongdoing by others, we ought to sever our connection to it. (shrink)

Corporations today have been engineered by CEOs and other business advocates to look increasingly green and responsible. However, alarming cases such as Enron, Parmalat and Worldcom bear witness that a belief in corporate goodness is still nothing other than naïve. Although many scholars seemingly recognize this, they still avoid touching on the most sensitive and problematic issues, the taboos. As a consequence, discussion of important though problematic topics is often stifled. The article identifies three ‘grand’ taboos of CSR discourse and (...) explicitly raises them for discussion. They are the taboos of amoral business, continuous economic growth, and the political nature of CSR. It is suggested that CSR can only be as advanced as its taboos. The critical potential of the field remains underdeveloped as a consequence of the taboos, and in many cases the CSR discourse merely produces alluring but empty rhetoric about sustainability and responsible business. (shrink)

The history of corporations in the United States (U.S.) is much older than the country, as it must be understood in the context of the history of peoples of Europe who eventually dominated the North American continent in the seventeenth and eighteenth centuries. These European settlers came, in part, to achieve economic prosperity for themselves and, in many cases, for early forerunners of the modern corporation. These business organizations had predecessors in Europe millennia earlier as ancient Romans had developed a (...) functional and successful form of corporation for the purpose of conducting commerce in the Roman Empire. In the decades that followed the founding of the U.S. in 1776, corporations evolved from rare, small, closely controlled business organizations with a multitude of restrictions to very large, very powerful modern institutions that enjoy many of the legal rights of humans. With this evolution came ethical issues, as (1) the ethical distance was altered between corporate decision-makers and those affected by those decisions, and (2) many of the legal rights of individual humans were extended, through litigation, to corporations. This article explains the historical development of the U.S. corporation and identifies 20 Critical Events in the Ethics of Corporation History (CEECH). An understanding of these historical events may facilitate comprehension of many of the current ethical issues associated with a legal organizational form that profoundly affects business and society. (shrink)