The use of artificial intelligence (AI) in hiring entails vast ethical challenges. As such, using an ethical lens to study this phenomenon is to better understand whether and how AI matters in hiring. In this paper, we examine whether ethical perceptions of using AI in the hiring process influence individuals’ trust in the organizations that use it. Building on the organizational trust model and the unified theory of acceptance and use of technology, we explore whether ethical perceptions are shaped by (...) individual differences in performance expectancy and social influence and how they, in turn, impact organizational trust. We collected primary data from over 300 individuals who were either active job seekers or who had recent hiring experience to capture perceptions across the full range of hiring methods. Our findings indicate that performance expectancy, but not social influence, impacts the ethical perceptions of AI in hiring, which in turn influence organizational trust. Additional analyses indicate that these findings vary depending on the type of hiring methods AI is used for, as well as on whether participants are job seekers or individuals with hiring experience. Our study offers theoretical and practical implications for ethics in HRM and informs policy implementation about when and how to use AI in hiring methods, especially as it pertains to acting ethically and trustworthily. (shrink)

Organizations are making massive investments in artificial intelligence, and recent demonstrations and achievements highlight the immense potential for AI to improve organizational and human welfare. Yet realizing the potential of AI necessitates a better understanding of the various ethical issues involved with deciding to use AI, training and maintaining it, and allowing it to make decisions that have moral consequences. People want organizations using AI and the AI systems themselves to behave ethically, but ethical behavior means different things to different (...) people, and many ethical dilemmas require trade-offs such that no course of action is universally considered ethical. How should organizations using AI—and the AI itself—process ethical dilemmas where humans disagree on the morally right course of action? Though a variety of ethical AI frameworks have been suggested, these approaches do not adequately address how people make ethical evaluations of AI systems or how to incorporate the fundamental disagreements people have regarding what is and is not ethical behavior. Drawing on moral foundations theory, we theorize that a person will perceive an organization’s use of AI, its data procedures, and the resulting AI decisions as ethical to the extent that those decisions resonate with the person’s moral foundations. Since people hold diverse moral foundations, this highlights the crucial need to consider individual moral differences at multiple levels of AI. We discuss several unresolved issues and suggest potential approaches for thinking about conflicts in moral judgments concerning AI. (shrink)

Firms use algorithms to make important business decisions. To date, the algorithmic accountability literature has elided a fundamentally empirical question important to business ethics and management: Under what circumstances, if any, are algorithmic decision-making systems considered legitimate? The present study begins to answer this question. Using factorial vignette survey methodology, we explore the impact of decision importance, governance, outcomes, and data inputs on perceptions of the legitimacy of algorithmic decisions made by firms. We find that many of the procedural governance (...) mechanisms in practice today, such as notices and impact statements, do not lead to algorithmic decisions being perceived as more legitimate in general, and, consistent with legitimacy theory, that algorithmic decisions with good outcomes are perceived as more legitimate than bad outcomes. Yet, robust governance, such as offering an appeal process, can create a legitimacy dividend for decisions with bad outcomes. However, when arbitrary or morally dubious factors are used to make decisions, most legitimacy dividends are erased. In other words, companies cannot overcome the legitimacy penalty of using arbitrary or morally dubious factors, such as race or the day of the week, with a good outcome or an appeal process for individuals. These findings add new perspectives to both the literature on legitimacy and policy discussions on algorithmic decision-making in firms. (shrink)

Interactions between human beings and chatbots are gradually becoming part of our everyday social lives. It is still unclear how human–chatbot interactions, compared to human–human interactions, influence individual morality. Building on the dual-process theory of moral judgment, a secondary data analysis, and two scenario-based experiments provide sufficient evidence that HCIs support utilitarian judgments, which reduce participants' donation amount. Study 3 further demonstrates that the negative effects of HCIs can be attenuated by inducing a social-oriented communication style in chatbots’ verbal language (...) designs. These findings highlight the negative impacts of HCIs on relationships among human beings and suggest a practical intervention for nonprofit organization managers. (shrink)

In an era of technological ubiquity, artificial intelligence (AI) is reshaping not only industries but also fundamental human experiences, including artistic creativity. Rooted in a Posthumanist theoretical framework, this research scrutinizes the intricate ethical and aesthetic challenges that artists confront in AI-enabled art creation, with a particular focus on a novel phenomenon we term 'aesthetic loss of control.’ This phenomenon bears significant implications for notions of authorship, copyright, and business ethics in the art industry. Utilizing a mixed-methods approach, our study (...) involves a six-month-long collaboration with 34 artists from diverse artistic and cultural milieus, facilitated by AI algorithms versed in an array of artistic styles. Through iterative cycles of human input and AI output, coupled with in-depth interviews, observational studies, and diary analyses, we meticulously document the artists’ experiences and their emerging doubts over authorship and creative control. Our findings illuminate the nuanced complexities surrounding this 'aesthetic loss of control,’ extending current discussions in business ethics by offering empirically grounded insights and recommendations for navigating these ethical dilemmas. The study not only contributes new theoretical perspectives to the discourse but also provides actionable ethical guidelines for stakeholders in the art industry's commercial ecosystem. (shrink)

Previous research has shown that algorithmic decisions can reflect gender bias. The increasingly widespread utilization of algorithms in critical decision-making domains (e.g., healthcare or hiring) can thus lead to broad and structural disadvantages for women. However, women often experience bias and discrimination through human decisions and may turn to algorithms in the hope of receiving neutral and objective evaluations. Across three studies (N = 1107), we examine whether women’s receptivity to algorithms is affected by situations in which they believe that (...) their gender identity might disadvantage them in an evaluation process. In Study 1, we establish, in an incentive-compatible online setting, that unemployed women are more likely to choose to have their employment chances evaluated by an algorithm if the alternative is an evaluation by a man rather than a woman. Study 2 generalizes this effect by placing it in a hypothetical hiring context, and Study 3 proposes that relative algorithmic objectivity, i.e., the perceived objectivity of an algorithmic evaluator over and against a human evaluator, is a driver of women’s preferences for evaluations by algorithms as opposed to men. Our work sheds light on how women make sense of algorithms in stereotype-relevant domains and exemplifies the need to provide education for those at risk of being adversely affected by algorithmic decisions. Our results have implications for the ethical management of algorithms in evaluation settings. We advocate for improving algorithmic literacy so that evaluators and evaluatees (e.g., hiring managers and job applicants) can acquire the abilities required to reflect critically on algorithmic decisions. (shrink)

The abundance of literature on ethical concerns regarding artificial intelligence (AI) highlights the need to systematize, integrate, and categorize existing efforts through a systematic literature review. The article aims to investigate prevalent concerns, proposed solutions, and prominent ethical approaches within the field. Considering 309 articles from the beginning of the publications in this field up until December 2021, this systematic literature review clarifies what the ethical concerns regarding AI are, and it charts them into two groups: (i) ethical concerns that (...) arise from the design of AI and (ii) ethical concerns that arise from human–AI interactions. The analysis of the obtained sample highlights the most recurrent ethical concerns. Finally, it exposes the main proposals of the literature to handle the ethical concerns according to the main ethical approaches. It interprets the findings to lay the foundations for future research on the ethics of AI. (shrink)

More organizations use AI in the hiring process than ever before, yet the perceived ethicality of such processes seems to be mixed. With such variation in our views of AI in hiring, we need to understand how these perceptions impact the organizations that use it. In two studies, we investigate how ethical perceptions of using AI in hiring are related to perceptions of organizational attractiveness and innovativeness. Our findings indicate that ethical perceptions of using AI in hiring are positively related (...) to perceptions of organizational attractiveness, both directly and indirectly via perceptions of organizational innovativeness, with variations depending on the type of hiring method used. For instance, we find that individuals who consider it ethical for organizations to use AI in ways often considered to be intrusive to privacy, such as analyzing social media content for traits and characteristics, view such organizations as both more innovative and attractive. Our findings trigger a timely discussion about the critical role of ethical perceptions of AI in hiring on organizational attractiveness and innovativeness. (shrink)

The article examines the challenges involved in the process of developing artificial ethical agents. The process involves the creators or designing professionals, the procedures to develop an ethical agent and the artificial systems. There are two possibilities available to create artificial ethical agents: (a) programming ethical guidance in the artificial Intelligence (AI)-equipped machines and/or (b) allowing AI-equipped machines to learn ethical decision-making by observing humans. However, it is difficult to fulfil these possibilities due to the subjective nature of ethical decision-making. (...) The challenge related to the developers is that they themselves lack training in ethical skills. The creators who develop an artificial ethical agent should be able to foresee the ethical issues and have knowledge about ethical decision-making to improve the ethical use of AI-equipped machines. The suggestion is that the focus should be on training professionals involved in the process of developing these artificial systems in ethics rather than developing artificial ethical agents and thereby attributing ethical agency to it. (shrink)

In this 60th anniversary of Business & Society essay, we seek to make three main contributions at the intersection of governance and artificial intelligence. First, we aim to illuminate some of the deeper social, legal, organizational, and democratic challenges of rising AI adoption and resulting algorithmic power by reviewing AI research through a governance lens. Second, we propose an AI governance framework that aims to better assess AI challenges as well as how different governance modalities can support AI. At the (...) heart of our framework lies the governance forces that apply to institutions, organizations, and individuals, who ultimately provide, regulate, and use AI decision-making. We discuss how businesses may harness AI’s economic power through governance solutions without creating or amplifying societal biases and inequalities. Third, as part of our section on future research, we identify a set of governance trade-offs in AI adoption, suggest future research avenues to conceptually strengthen research on the governance of AI, and lay out key policy recommendations. (shrink)