Largely due to the difficulty of observing behavior, empirical business ethics research relies heavily on the scenario methodology. While not disputing the usefulness of the technique, this paper highlights the importance of a careful assessment of the fit between the context of the situation described in the scenario and the knowledge and experience of the respondents. Based on a study of online auctions, we provide evidence that even respondents who have direct knowledge of the situation portrayed in the scenario may (...) develop significantly different assessments of the level of unethical behavior. Further, those assessments may be conditioned in different ways by the same moderating variables. We conclude that care should be exercised when recruiting respondents to choose only those who can be expected to understand the scenario in its true context and that separate analyses should be conducted for groups of respondents who have different perspectives within that context. (shrink)

Largely due to the difficulty of observing behavior, empirical business ethics research relies heavily on the scenario methodology. While not disputing the usefulness of the technique, this paper highlights the importance of a careful assessment of the fit between the context of the situation described in the scenario and the knowledge and experience of the respondents. Based on a study of online auctions, we provide evidence that even respondents who have direct knowledge of the situation portrayed in the scenario may (...) develop significantly different assessments of the level of unethical behavior. Further, those assessments may be conditioned in different ways by the same moderating variables. We conclude that care should be exercised when recruiting respondents to choose only those who can be expected to understand the scenario in its true context and that separate analyses should be conducted for groups of respondents who have different perspectives within that context. (shrink)

Ethical dilemmas arise when one must decide between conflicting ethical imperatives. One potential ethical dilemma is a manager’s decision of whether to engage in corporate social responsibility activities. This decision could pit the ethical imperative of honoring unwritten obligations to society against the ethical imperative of honoring contractual obligations to the firm. However, CSR activities might only be a minor ethical dilemma or none at all if they simultaneously benefit the firm and society. To examine this I test the association (...) between future-period employee productivity and current-period use of one type of CSR activity: employee volunteer programs. I use a unique sample of 1428 firm-years, hand-collected from sustainability reports of 373 firms. I find evidence that the current-period use of an employee volunteer program has a positive association with future-period employee productivity. I find this result in future periods up to 6 years after a firm uses an employee volunteer program. I also find a positive association between incentives that focus CEOs’ attention on long-term firm outcomes and more extensive employee volunteer programs. (shrink)

Scholarship on corporate social responsibility (CSR) shows both that the concept itself is interpreted in a multitude of different ways and that significant cross-cultural differences exist in the way that business approaches the question of social responsibility and ethics. Little comparative work, however, has yet been carried out that investigates the reasons behind such differences. The authors analyze the cases of Mexico and France by drawing on Enderle’s practical, semantic, and theoretical dimensions of business ethics. The authors further integrate the (...) concept of “normative institutions” to explore attitudes toward CSR and assess the likely future adoption of CSR practices in each country. The article concludes that despite similar institutional conditions in Mexico and France, the interplay of those institutions combined with the historical role of business and its relationship with society produces quite different articulations of CSR in each country. The article highlights the need for further studies that explore how institutions enable and constrain business’ articulation of social responsibility. (shrink)

Recent data breaches underscore the importance of organizational cybersecurity. However, the high costs of such security can force chief financial officers (CFOs) to make difficult financial and ethical trade-offs that have both business and societal implications. We employ a 2 × 2 randomized experiment that varies both an observed scenario CFO’s investment decision (invest/not invest in security) and organizational outcomes (positive/negative) to investigate these trade-offs. Participant managers assess the observed CFO’s investment behavior and indicate their own intentions to invest. Results (...) indicate that when the observed scenario CFO invests in security, managers primarily follow their peers when making investment decisions. However, when the observed CFO does not invest in security, managers make their own decisions by engaging in more in-depth reasoning that includes assessment of the seriousness of consequences, as well as the ethical and societal considerations. Moderated mediation findings further deconstruct and corroborate these relationships. (shrink)

We investigate the effect of national culture on women manager appointments. We argue that culture influences women manager appointments through their effects on managerial decision-making. Using firm-level data on 2,456 microfinance institutions (MFIs) across 61 countries, we document that fewer women managers are appointed in societies high on individualism and uncertainty avoidance. On the contrary, high power distance societies are positively associated with the appointment of women managers. We demonstrate that a greater number of women nonmanagers reduces (increases) the appointment (...) of women managers in high individualistic (uncertainty avoidance) cultures. Our findings challenge the “one-size-fit-all” approach adopted by policy makers around the world to increase women manager appointments. Our results are robust to endogeneity. (shrink)