In spite of an increasing number of studies on ethical climate, little is known about the antecedents of ethical climate and the moderators of the relationship between ethical climate and work outcomes. The present study conducted firm-level analyses regarding the relationship between chief executive officer (CEO) ethical leadership and ethical climate, and the moderating effect of climate strength (i.e., agreement in climate perceptions) on the relationship between ethical climate and collective organizational citizenship behavior (OCB). Self-report data were collected from 223 (...) CEOs and 6,021 employees in South Korea. The results supported all study hypotheses. As predicted, CEOs' self-rated ethical leadership was positively associated with employees' aggregated perceptions of the ethical climate of the firm. The relationship between ethical climate and firm-level collective OCB was moderated by climate strength. More specifically, the relationships between ethical climate and interpersonally directed collective OCB and between ethical climate and organizationally directed collective OCB were more pronounced when climate strength was high than when it was low. Theoretical and practical implications of these findings are addressed herein. (shrink)

Despite the prevailing discourses on the importance of top management ethical leadership, related theoretical and empirical developments are lacking. Drawing on institutional theory, we propose that top management ethical leadership contributes to organizational outcomes by promoting firm-level ethical and procedural justice climates. This theoretical framework was empirically tested using multi-source data obtained from 4,468 employees of 147 Korean companies from various industries. The firm-level analysis shows that top management ethical leadership significantly predicts ethical climate, which then results in procedural justice (...) climate that fully mediates the effects of top management ethical leadership on two organizational outcomes, namely, firm-level organizational citizenship behavior and firm financial performance. The present study provides a plausible theoretical account and empirical validation of a mechanism through which top management ethical leadership enhances organizational performance. (shrink)

Addressing the critique that communication activities with regard to CSR are often merely instrumental marketing or public relation tools, this paper develops a toolbox of CSR communication that takes into account a deliberative notion. We derive this toolbox classification from the political approach of CSR that is based on Habermasian discourse ethics and show that it has a communicative core. Therefore, we embed CSR communication within political CSR theory and extend it by Habermasian communication theory, particularly the four validity claims (...) of communication. Given this communicative basis, we localize CSR communication as a main means to receive moral legitimacy within political CSR theory. A typology of CSR communication tools is advanced and substantiated by a review of case studies supporting the categories. Thus, we differentiate between instrumental and deliberative, as well as published and unpublished tools. Practical examples for the literature-derived tool categories are provided and their limitations are discussed. (shrink)

Perceptions of a firm’s stance on corporate social responsibility (CSR) are influenced by its corporate marketing efforts including branding, reputation building, and communications. The current research examines CSR from the consumer’s perspective, focusing on antecedents and consequences of perceived CSR. The findings strongly support the fact that particular cues, namely perceived financial performance and perceived quality of ethics statements, influence perceived CSR which in turn impacts perceptions of corporate reputation, consumer trust, and loyalty. Both consumer trust and loyalty were also (...) found to reduce the perceived risk that consumers experience in buying and using products. From these significant findings, we draw several conclusions and implications, including the importance of enhancing firm focus toward its ethical commitment and long-term reputation. (shrink)

Previous research on unethical business behavior usually has focused on its impact from a financial or philosophical perspective. While such foci are important to our understanding of unethical behavior, we argue that another set of outcomes linked to individual well-being are critical as well. Using data from psychological, criminological, and epidemiological sources, we propose a model of unethical behavior and well-being. This model postulates that decrements in well-being result from stress or trauma stemming from being victimized by, engaging in, or (...) witnessing unethical behavior, or even from being associated with individuals involved in such behavior. (shrink)

This article argues that attempting to overcome moral silence in organizations will require management to move beyond a compliance-oriented organizational culture toward a culture based on integrity. Such cultural change is part of good corporate governance that aims to steer an organization to enhance creativity and moral excellence, and thus organizational value. Governance mechanisms can be either formal or informal. Formal codes and other internal formal regulations that emphasize compliance are necessary, although informal mechanisms that are based on relationship-building are (...) more likely to achieve moral excellence. Such a shift can be viewed as a transformative strategy for overcoming the destructive side effects and business risks of the tendency within corporate cultures to remain mute when faced with issues that violate personal or corporate values. Genuine dialogues and appropriate ethical decisionmaking training can deepen the understanding and create a mindful awareness (of ethical values) and induce trust that embrace both complying with rules and regulations, as well as inciting creative "ethical innovation" with respect to human interaction in multinational companies. (shrink)

This study examines values and value types as well as scores in levels of moral reasoning for␣students enrolled in a business program. These two factors are measured using the Schwartz Personal Values␣Questionnaire and the Defining Issues Test 2. No statistically significant differences in levels of moral␣reasoning, rankings of values, and value types could be attributed to gender. However, eight significant correlations between value types and levels of moral reasoning provide evidence that a systematic relationship exists. The relationships are not only (...) internally consistent but also consistent with the model of values based on motivational goals (Schwartz S. H. and K. Boenke: 2004, Journal of Research in Personality, 38 230–255). (shrink)

This paper presents a review of 100 empirical papers studying corporate codes of ethics in business organizations from the time period mid-2005 until mid-2016, following approximately an 11-year time period after the previous review of the literature. The reviewed papers are broadly categorized as content-oriented, output-oriented, or transformation-oriented. The review sheds light on empirical focus, context, questions addressed, methods, findings and theory. The findings are discussed in terms of the three categories as well as the aggregate, stock of empirical CCE (...) studies in comparison with previous reviews, answering the question “where are we now?” Content and output studies still stand for the majority of the studies, whereas the transformation studies are fewer. Within these areas, two new trends are found to have emerged: discursive analyses and a focus on labor conditions. The review finds that the content of CCEs is still predominantly self-defensive, that CCEs are insufficient in themselves in terms of protecting workers’ rights, that CCEs are likely to encounter tensions when implemented across national and organizational boundaries, and that while perception of CCEs is generally positive, CCEs may lead to both positive and negative outcomes. Based on these findings, potential areas for further exploration in the area of CCE research are suggested. (shrink)

At the centre of responsible management (RM) learning is the development of managerial competence for ethics, responsibility, and sustainability (ERS). Important contributions have been made from each: the ethics, responsibility, and sustainability disciplines. However, we are yet to integrate these disciplinary contributions into a comprehensive interdisciplinary RM competence framework that corresponds to the interdisciplinary nature of RM challenges. We address this priority in this paper and report on the findings of an integrative structured literature review of 224 management competence articles (...) across the ERS disciplines. Our thematic template analysis has produced an interdisciplinary RM competence framework of three layers of personal, behavioural, and intellectual competences and independent and interdependent competence dimensions. The resulting 3 × 2 competence matrix framework accommodates 33 interdisciplinary ERS competence themes and 90 subthemes in the six competence domains of _being_ and _becoming_, _acting_ and _interacting_, _knowing_ and _thinking_. To the RM discussion, we contribute an interdisciplinary competence framework that enables the development of responsible managers who tackle the inherently interdisciplinary issues of RM. To the competence discussion, we contribute the interdependent competence dimension and future research directions through the lens of response-ability. _JBE Section:_ Business Ethics Learning and Education. (shrink)

In this empirical study, we present two new models that are corporate ethics based. The first model numerically quantifies the corporate value index (CV-Index) based on a set of predefined parameters and the second model estimates the market-to-book values of equity in relation to the CV-Index as well as other parameters. These models were applied to Canadian companies listed on the Toronto Stock Exchange (TSX). Through our analysis, we found statistically significant evidence that corporate values (CV-Index) positively correlated with firm (...) performance. The results are even more significant for firms with low market-to-book values. Our empirical findings suggest that corporate ethics is vital for management, employees, shareholders, stakeholders, and the community at large. In addition, we have tested and confirmed five hypotheses that are used to illustrate corporate ethics behavior and performance. (shrink)

Research in the field of management has increasingly focused on strategies and tools related to corporate sustainability. Of the tools examined, codes of ethics have been found to play a primary role. Many studies have investigated the content of such codes, as well as their capacity to condition the behaviour of people within organizations. However, few studies have considered the intrinsic quality of codes of ethics. This study aims to investigate the impact that specific factors—firm size, degree of internationalization and (...) industry effect—can have on the quality of codes of ethics. Based on a sample of 248 listed Italian companies, the results of the empirical analysis show that the quality standard is particularly high in larger companies and in those firms operating in industries in which relationships established with critical stakeholders—and disclosure to those stakeholders—play a crucial role. These results have interesting implications for both researchers and practitioners. (shrink)

The author extends theory on the relationship between workplace spirituality and business ethics by integrating the "yamas" from yoga, a venerable Eastern spiritual tradition, with existing literature. The yamas are five practices for harmonizing and deepening social connections that can be applied in the workplace. A theoretical framework is developed and two sets of propositions are forwarded. One set emanates from the yamas and another one conjectures relationships between spirituality and business ethics surfaced by the application of these spiritual practices (...) from yoga. (shrink)

This paper integrates the inclusion and organizational ethics literatures to examine the relationship between employees’ perceptions of an organizational integration and learning approach to diversity and two employee outcomes: organizational citizenship behavior toward the organization and interpersonal workplace deviance. Findings across two field studies from the USA and Germany show that employees’ perceptions of an organizational integration and learning approach to diversity are positively related to perceived organizational ethical virtue. Perceived organizational ethical virtue further transmits the effect of employees’ perceptions (...) of an organizational integration and learning approach to diversity on both organizational citizenship behavior toward the organization and interpersonal workplace deviance. In addition, we find support for a moderated indirect effect model whereby the indirect effect of the perceived integration and learning approach to diversity on the dependent variables through perceived organizational ethical virtue is stronger when employees have high personal value for diversity rather than low personal value for diversity. These results underscore the importance of having a fit between employees’ perceptions of an organization’s approach to diversity and employees’ personal value for diversity in order for inclusion to result in positive employee behaviors. Results emphasize the ethical responsibility of organizations in terms of how they approach diversity. (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)

This article presents the ethical concept of service as a way of specifying higher ethical principles in business practice. We set out from the work of a number of scholars who have found some shared ethical principles for doing business in a context of cultural diversity. Love, benevolence, consideration, and other related concepts are considered to be important guiding concepts for business but it is not clear how they are to be operationalized. We argue that the ethical concept of service (...) can act as a bridge for bringing those higher principles into business practice. The article explains and refines the ethical concept of service, which has received little attention. In particular, we address the ethical ambiguity implicit in the common meaning of service, explain how service shows love in business, and offer an account of how service provides ethical growth through virtue. Finally, this work presents a variety of examples from business which illustrate how the ethical concept of service can be put into practice. To achieve the aim of this study we draw inspiration from Catholic social teaching. This source provides useful insights into service and can be understood and accepted without requiring that particular faith. (shrink)

Attempting to determine solutions for unethical practices in the field, this research was designed to assess the effectiveness of public relations firms’ ethics statements in decreasing the incidence of malpractice. This study revealed an encouraging finding that practitioners working in firms with ethical parameters were significantly more likely to engage in ethical practices. Moreover, educating public relations practitioners about the content of ethics statement could positively influence their ethical practices. At the same time, this study’s findings suggest further questions for (...) consideration in future scholarship and in the application of ethics statements to practice within the field. (shrink)

This paper highlights the emergence of different ‘vocabularies’ that describe various values-driven business functions within large organizations and argues for improved horizontal alignment between them. We investigate two established functions that have long-standing organizational histories: Ethics and Compliance and Corporate Social Responsibility. By drawing upon research on organizational alignment, we explain both the need for and the potential benefit of greater alignment between these values-driven functions. We then examine the structural and socio-cultural dimensions of organizational systems through which E&C and (...) CSR horizontal alignment can be coordinated to improve synergies, address tensions, and generate insight to inform future research and practice in the field of Business and Society. The paper concludes with research questions that can inform future scholarly research and a practical model to guide organizations’ efforts towards inter-functional, horizontal alignment of values-driven organizational practice. (shrink)

This empirical study explores aspects of how companies that are positively recognized by their workforce as “Best Companies to Work For” convey the underlying principles of their “trustworthy” culture. The study examines the normative ethical frameworks and affective language utilized in the ethics statements. Although multiple studies have considered normative ethical frameworks in individual ethical decision making, few have considered normative ethical frameworks in organization ethics statements. In addition, this study expands the analysis to include the ethic of care. Of (...) the “Best Companies to Work for” in this study, 93 had accessible online ethics statements. Findings indicated 70 % of the ethics statements utilized combinations of three types of normative ethics studied, while 30 % used a single framework. In statements with combined frameworks, the deontological framework had the highest frequency, while the ethic of care was present in 33 % of statements and the teleological framework had the lowest frequency. In ethics statements with a singular framework, the framework rankings were consistent with findings for combined frameworks. Using the Dictionary of Affect in Language, there were statistically significant differences on pleasantness between statements that mentioned ethic of care and those that did not. This study sheds light on how these trustworthy companies communicate by publishing their ethics statements and by using a multidimensional approach in their ethics statements that has greater pleasantness when an ethic of care is utilized. (shrink)

The evaluation of new theories and pedagogical approaches to business ethics is an essential task for ethicists. This is true not only for empirical and applied evaluation but also for metatheoretical evaluation. However, while there is increasing interest in the practical utility and empirical testing of ethical theories, there has been little systematic evaluation of how new theories relate to existing ones or what novel conceptual characteristics they might contribute. This paper aims to address this lack by discussing the role (...) of metatheorising in assessing new approaches to ethics. The approach is illustrated through evaluating a new pedagogy and curriculum for ethics education called Giving Voice to Values (GVV). Our method involves identifying a number of metatheoretical lenses from existing reviews of ethical theories and applying these to examine GVV’s conceptual elements. Although GVV has been explicitly presented as a pedagogy and teaching curriculum, we argue that it has the potential to contribute significantly to the development of ethical theory. We discuss the general implications of this metatheoretical method of evaluation for new approaches to business ethics and for GVV and its future development. (shrink)

Most professional societies, scientific associations, and the like that undertake to write a code of ethics do so using other codes as models but without much (practical) guidance about how to do the work. The existing literature on codes is much more concerned with content than procedure. This paper adds to guidance already in the literature what I learned from participating in the writing of an important code of ethics. The guidance is given in the form of “rules” each of (...) which is explained and (insofar as possible) justified. The emphasis is on procedure. (shrink)

This study was designed to examine the prevalence of a code of ethics and to analyze its content among public relations agencies in the United States. Of the 1,562 public relations agencies reviewed, 605 (38.7%) provided an ethical statement. Among the ethical statements provided by these public relations agencies, ‹respect to clients,’ ‹service,’ ‹strategic,’ and ‹results’ were the values most frequently emphasized. On the other hand, ‹balance,’ ‹fairness,’ ‹honor,’ ‹social responsibility,’ and ‹independence’ were the least frequently mentioned in the ethical (...) codes. Also, none of the sampled agencies included any sanctions regarding enforcement of their particular codes of ethics. (shrink)

Prior studies have provided explanations for the presence, use and dissemination of codes of corporate ethics or codes of corporate conduct of business corporations. Most such explanations are functional in nature, and are descriptive as they are derived from the codes and their associated documents. We search for more underlying explanations using two complementary theories: first, social contract theories explaining the exogenous and endogenous reasons of organizational behavior, and then institutional theory explaining why organizations take similar measures in response to (...) institutional pressures. Based on our explanations, we contend that the codes and their use and dissemination are arising from underlying social and institutional pressures for firms to continuously validate their existence in the face of increasing changes and recurrent uncertainties. (shrink)

Based on the literature on stakeholder management and family firm dynamics, this research analyses the relationship between three constructs: the identification of business families with their family firms, FFs’ orientation toward key non-family stakeholders, and the achievement of better economic performance. Data analyses from 374 family and non-family members of 173 Spanish FFs show that a high level of family identification with their firms affects the orientation of FFs toward key non-family stakeholders in setting corporate goals and that this orientation (...) will lead to higher economic performance only when it is built on family identification with the firm. Our results also show that the significance of both relationships changes with the degree of family involvement in the management of the FF. (shrink)

As the need for more diversity in business ethics is becoming more pressing in our global world, we provide an historical study of a Fair Trade (FT) movement, born in rural Mexico. We first focus on the basic assumptions of its founders, which include a worker–priest, Frans van der Hoff, a group of native Indians and local farmers who formed a cooperative, and an NGO, Max Havelaar. We then review both the originalities and challenges of the FT movement and its (...) potential contributions to the current theories and practices in business ethics. (shrink)

Business moral values are defined as the personal moral values held by individuals who are engaged in business interactions. Direct supervisors may play an important role in shaping the business moral values of their subordinates. Using 264 supervisor— subordinate dyadic data from Taiwanese organizations, the study investigated the relationships among supervisor business moral values, subordinate business moral values, subordinate organizational commitment, job performance, and attendance. The results indicated that supervisor business moral values were positively associated with subordinate business moral values, (...) and that the latter mediated the relationship between the former and subordinate outcomes. Implications for business moral values research are discussed. (shrink)

Nine codes of ethics from companies in the Swedish financial sector were subjected to a content analysis to determine how they address and treat employees. The codes say a great deal about employee conduct and misconduct but next to nothing about employee rights, their rightful expectations or their value to the firm. The normative analysis – echoing some of the value-based HRM literature – draws on the foundational values of respect, equality, reciprocity and care. The analysis shows that most of (...) the codes are in conflict with these values. Such a treatment is then in conflict with fairness and risks harming the employees. Some of the features that make these codes ethically problematic are typical of how corporate codes have been described in previous code studies. Consequently, the normative analysis reaches beyond the scope of this material and in the end, what is at stake, is a very typical code design. (shrink)

Understanding the individual-level factors associated with sustainable behaviour in the workplace is important to advance corporate ethics and sustainability efforts. In two studies, we simultaneously assess the role of core values and personality traits in relation to a broad set of sustainability actions, both beneficial and harmful. Results from a student sample and then a national sample confirm that values and personality are distinct constructs that incrementally and differentially predict economic, social, and environmental outcomes. We successfully replicate previous findings pertaining (...) to values and find that, controlling for values, the personality dimension of Honesty–Humility is the strongest negative predictor of harmful actions. Our analyses highlight the unique characteristics of values and personality and their distinct implications for ethical and sustainable management practice. By assessing values and personality together, we also contribute to more general efforts within psychology to develop an integrative view of the person. (shrink)

Due to the prevalent influence of legal trends in driving ethical homogenization and persistent decoupling between ethical substance and symbolism in today’s organizations, scholars are calling for a renewed interest in the structural makeup of ethical codes. This article explores the disclosure trends and examines the contents of codes of ethics in the context of Canadian publicly listed acquirers. Relying on the analysis of codes’ public availability, structure, purpose, and promoted values, four clusters of behavior are identified. Although many firms (...) avoid the public disclosure of their codes, the results indicate that code of ethics’ patterns in sample firms are not driven merely by regulatory forces but increasingly shaped by aspirations for building a sustainable values-based corporation. The reported differences across clusters demonstrate that many companies in Canada overcome isomorphic pressures by displaying some originality in the writing of their codes. While symbolism in codes of ethics’ design and adoption prevails in publicly listed acquiring firms, the study provides evidence of an emerging trend of substantial commitment to social responsibilities. (shrink)

In this article we examine the association between corporate social responsibility (CSR) and firm value. This line of research is important since firms continue to invest in CSR even though past studies reveal a limited linkage between financial value and CSR. However, the business case for CSR or “doing good while making a profit,” appears to be advancing within the business ethics literature as a preferred conception of CSR. We conjecture that the greater unification and refinement of both profit maximization (...) and stakeholder interests through corporate acts, not statements alone, will sustain the financial value of CSR in a less regulated global business environment. We study the triangle of what companies say, what companies do, and firm financial performance. We analyze Fortune 250 firms and find a positive association between what companies do based on KLD Research and Analytics, Inc. (KLD) ratings, and what companies state about ethics in their CSR statements. We then employ regression analysis and find that companies’ socially responsible acts are positively associated with overall firm value and financial performance. Yet we do not find a statistically significant association between what companies say regarding ethics in their CSR statements and their financial outcomes. These results suggest that firm value and financial performance is associated with what companies do and not what they say. Our results seem to be driven by multinational corporations (MNCs) and not by non‐MNCs. This is possibly because MNCs generally operate in a less regulated global business environment that often necessitates strong ethical corporate leadership to further stakeholder interests. Overall, these results help reconcile corporate and stakeholder objectives since evidence of a link between financial performance and doing good sustains global CSR. (shrink)

Ethicalisation processes that partake in the construction of a firm or a professional group’s ethical identity are often described as a relatively linear combination of several components, such as policies (starting with the development of a code of ethics), corporate practices, and leadership. Our study of a professional community dealing with the topics related to cultural diversity indicates a more reciprocal relationship between ethical identity and ethicalisation processes. We argue that a tangible form of ethical identity can pre-date the ethicalisation (...) process of a professional group, and additionally, can impact this process at the start. We highlight that, despite the absence of official ethical statements in the community, a form of ethical professional identity is already present among the interculturalists of the international organisation Society for Intercultural Education Training and Research. Using critical discourse analysis, we identify the proclaimed humanist ethos in the discourses that interculturalists co-produce and diffuse during conferences, on on-line discussion forums, and in the mission of their professional organisations. This study contributes to the literature on ethical identity development by showing how a pre-existing form of ethical identity can influence the early stage of the development of a code of ethics. In addition, we indicate that, similar to organisational identity construction, ethical identity construction uses self-other identity talks, thus, defining an ethical other (or less ethical other) in its development. (shrink)

Management practitioners and scholars have worked diligently to identify methods for ethical decision making in international contexts. Theoretical frameworks such as Integrative Social Contracts Theory (Donaldson and Dunfee, 1994, Academy of Management Review 19, 252–284) and more recently the Global Business Citizenship Approach [Wood et al., 2006, Global Business Citizenship: A Transformative Framework for Ethics and Sustainable Capitalism. (M. E. Sharpe, Armonk, NY)] have produced innovations in practice. Despite these advances, many managers have difficulty implementing these theoretical concepts in daily (...) practice. Using the example of recent decisions by internet service providers Google, Yahoo, and MSN regarding censorship requirements in China, we offer six heuristic questions to help managers to resolve cross-cultural ethical conflicts in which the firm’s way of doing business differs from the practice in the host country. Recognizing that companies can take different approaches to law and ethics (Paine, 1994, Harvard Business Review 72(2), 107–117), our aim is to provide a management decision process to deal with demands or opportunities for engaging in questionable business practices in a host country. (shrink)

The twenty-first century has seen its share of ethical failures, which brings into question what the role of ethics is. Past experience demonstrates ethics functioning as a reactive measure to a permanent consequence, the equivalent of pointing at an accident and commenting, “The driver should not have been going so fast.” While such an observation may be accurate, it does little to correct the situation or prevent further ones from occurring. Ethics must function as more than a guide; they must (...) be preventative in nature and determine a correct course of action for individuals and organizations. They must teach and serve as a qualitative standard. (shrink)

In this conceptual article, we look at the impact of culture on ethical decision making from a Douglasian Cultural Theory (CT) perspective. We aim to show how CT can be used to explain the diversity and dynamicity of ethical beliefs and behaviours found in every social system, be it a corporation, a nation or even an individual. We introduce CT in the context of ethical decision making and then use it to discuss examples of business ethics in the Indian business (...) context. We argue that the use of CT allows for a theoretically more sophisticated treatment of culture in ethical decision making and thus the avoidance of some common problems with existing cross-cultural studies of business ethics. In our discussion, we raise questions about the compatibility between management systems and processes created in one context and ethical behaviours in another. (shrink)

Global firms need to decide on the correspondence between their corporate ethics and the globalization of their activities. When firms go global, they face ethical complexities as they operate in different legal and cultural environments that may impact the admissibility and appropriateness of their approach to institutionalize and implement corporate ethics. Global firms may have good reasons to establish global codes of ethics that are to be obeyed by all employees worldwide. However, developing and implementing such codes can be rather (...) difficult due to various, and partly competing, conditions in the countries of operation. In this article, two legal disputes are analyzed to illustrate some of the difficulties that may emerge when firms globalize their codes of ethics. I argue that these conflicts can be mitigated when firms carefully design their codes and the processes of code implementation. (shrink)

The perception of behavior as a moral or conventional concern can be influenced by contextual variables, including status and power differences. We propose that social processes and in particular social role enactment through the exercise of power will psychologically motivate moralization. Punishing or rewarding others creates a moral dilemma that can be resolved by externalizing causation to incontrovertible moral rules. Legitimate power related to structure and position can carry moral weight but may not influence the power holder’s perceptions of rules (...) and general norms of behavior. Social identity theory suggests moralization could be promoted by a concern for shared, defining values. However, the tendency to moralize another’s behavior can be injurious to shared identity. We explored white-collar employees’ perceptions of several categories of noxious or deviant workplace behaviors and regressed these perceptions on the tendency to use legitimate, referent, or reward and punish power; social identity; and the interaction of social identity and power, in particular legitimate power. Only the tendency to influence others through punishment or reward predicted moralization. Alternative causal explanations for the findings were addressed through the absence of any relationships between punishment and reward power and perceptions of deviant behaviors as wrong, upsetting, or requiring punishment. We discuss these results in the context of self and social processes, the social construction of morals and power, and the impact of managers’ behavior on group or organizational ethics. (shrink)

This article reflects on context effects in the study of behavioral ethics and organizational justice. After a general overview, we review three key challenges confronting research in these two domains. First, we consider social scientific versus normative approaches to inquiry. The former aims for a scientific description, while the latter aims to provide prescriptive advice for moral conduct. We argue that the social scientific view can be enriched by considering normative paradigms. The next challenge we consider, involves the duality of (...) morally upright versus morally inappropriate behavior. We observe that there is a long tradition of categorizing behavior dichotomously rather than continuously. We conclude by observing that more research is needed to compare the dichotomous versus continuous perspectives. Third, we examine the role of “cold” cognitions and “hot” affect in making judgments of ethicality. Historically speaking, research has empathized cognition, though recent work has begun to add greater balance to affective reactions. We argue that both cognition and affect are important, but more research is needed to determine how they work together. After considering these three challenges, we then turn to our special issue, providing short reviews of each contribution and how they help in better addressing the three challenges we have identified. (shrink)

This study deals with responsibility as part of innovation. By nature, innovation gives birth to development for the organization and can only be at the core of any strategy within an ever-increasingly global economic context. However it also raises new questions stemming mostly from the impossibility to forecast the success of the innovations. More precisely, the questions raised by innovation also concern its consequences on society as a whole. Today, the innovator should understand his responsibility, the consequence of each innovation. (...) Moreover, common acceptance of the word ‘responsibility’ raises some questions about its use and how it should be understood. What does ‘responsibility’ mean? Who is responsible and for what? Through the notion of ‘care’, we aim at providing an evolution of responsible-innovation. The concept of ‘innovation-care’ is centered on people and more precisely focuses on taking care of them. The purpose of innovation-care is indeed to innovate and keep up with the level of productivity necessary to any organization while taking into account the essential interdependence between the status of the innovator and that of the citizen. (shrink)

The success of business firms and other organizations relies on the trustworthiness of reports and other documents prepared by management accountants. This study examines the personal ethical values and ethical value types of management accountants. Data were obtained from a survey of members of the Institute of Management Accountants (IMA). The survey, composed of the Rokeach Values Survey and demographic questions, was delivered by the IMA Research Lab to membership samples. Importantly, the results indicated that the highest-ranked values were consistent (...) with values included in the IMA’s Statement of Ethical Professional Practice. That management accountants hold high ethical values better enables them to provide reliable and meaningful work to business firms and other organizations. Another important finding is that older management accountants are more concerned with moral values than their younger colleagues. This finding has notable implications for the future of the profession. (shrink)

A business code of ethics is widely regarded as an important instrument to curb unethical behavior in the workplace. However, little is empirically known about the factors that determine the impact of a code on unethical behavior. Besides the existence of a code, this article studies five determining factors: the content of the code, the frequency of communication activities surrounding the code, the quality of the communication activities, and the embedment of the code in the organization by senior management as (...) well as local management. The full model explains 32% of observed unethical behavior while the explanatory value of a code alone is very modest. The study shows when codes are effective, and even when they become counter effective. (shrink)

The Academy of Management formally adopted a Code of Ethical Conduct in 1990. During the subsequent 15 years, almost nothing had been published about it and its value as a formal document meant to guide professional practice. Rather surprisingly then, in December 2005 an entirely new Code of Ethics was introduced by the Academy’s Board, to take effect in February 2006. Why was a new code promulgated? More broadly, what do the contents of these codes, the processes of their promulgation, (...) and their expressed purposes, suggest about the value of such codes for similarly situated professional associations, in general? This article seeks to identify key strengths and weaknesses of the original code, begin an assessment of the potential value of the new code, and so stimulate debate. Further, not only is this a call to the members of the Academy to engage in some thoughtful debate and possible amendment of its new code, but also a caution to all such associations to take seriously the hurdles that must be jumped before any code can be developed and promulgated to worthwhile effect. (shrink)

The business environment has increasingly expanded outside single nations or regions of the world to encompass many differing countries. Along with this expansion come business opportunities and challenges when facing business practices and attitudes not so similar to our own. In studying how these national cultural differences affect ethical decision making, managers and employees alike gain an understanding and respect for those differing business practices. This study considers the national cultural dimension of collectivism versus individualism. Survey data were gathered from (...) 252 full-time employees working in the collective country of Taiwan and the individualist country of the United States of America. Results indicate that employees from the collective culture of Taiwan are more likely to indicate they would make an unethical decision that benefits the organization and less likely to openly question an unethical practice by their organization. Implications of these findings are discussed. (shrink)

Ethical guidelines for psychologists are meant to stimulate and help psychologists to act appropriately with respect to clients, colleagues, and other individuals involved in their professional relations. This paper focuses on the similarity of codes of ethics of psychologists in European countries in general, and on specific ethical dilemmas in the area of work and organizations in particular. First, an overview is given of the development of ethical guidelines in Europe and the USA. Second, the results are presented of a (...) survey by E-mail amongst members of the European Federation of Psychologists’ Associations (EFPA) to identify the differences and similarities between ethical guidelines of the affiliate members. Third, the potential dilemmas of stakeholders in work and organizational assessment are addressed. Finally, the results of a survey among Dutch selection psychologists are presented. The purpose of this study was to examine a possible tension between normative behavior and attitudes about normal behavior. It was concluded that ethical guidelines of European countries cover comparable (sub-)principles and that there are indications that individual psychologists agree with the written principles. In addition, suggestions for future research are given. (shrink)

Codes of governance have mushroomed in contexts operating under a single, dominant institutional logic, such as publicly listed corporations. These codes act as institutional prescriptions that help spread best practices throughout industries. More recently, in some countries, specific codes have been developed for hybrid organizations that integrate multiple, conflicting institutional logics simultaneously, such as cooperative enterprises. Drawing on an extensive set of qualitative data, we ask how such institutional prescriptions may (fail to) address governance challenges in organizations with multiple, conflicting (...) institutional demands. In doing so, we extend current literature on governance of hybrid organizations, which has so far focused on individual and organizational levels, to include institutional-level strategies. While governance codes are often inspired by deontological ethics to solve issues in a single institutional logic, we find that governance codes for hybrid organizations should not prioritize a single institutional logic, nor follow a deontological approach to improving governance, but should, on a more pragmatist take, remain open to continuous learning. (shrink)

The main goal of this paper is to exhibit the role of the concept of human nature for the ethical orientation of organizational life. Therefore, after presenting some definitions of the concepts of human nature, which depict the complexity of these phenomena, some models of the concepts of human nature are described. Furthermore, the setting of the concepts of human nature in the organizational life is discussed. Those concepts can be perceived as a deep-structure of the organizational life, having an (...) impact not only on the individual behaviour of employees and managers (like sensibility for human emotions, pro-social engagement, communication style), but also affecting their moral competence and influencing whole organizational culture – image of the organization, preferred management strategies and the way of perceiving justice. Those elements play crucial role in ethical attitude of the organization because all those variables support the efficacy of ethical rules and most of them are part of ethical code and corporate ethical code. Therefore, it is necessary for an organization to consider implicit and explicit concepts of human nature on which the organizational culture is based and support those concepts, which enables the ethical conduct of the organization and being alert especially to the consequences of materialistic/egoistic and competitive concepts of human nature. The theses discussed in the paper are supported by some empirical research studies conducted in this field. (shrink)

Public relations scholars have demonstrated contradictory views regarding the application of universal versus culture-specific approaches for understanding global public relations ethics. However, few comparative studies have empirically explored public relations ethics on a global scale. To that end, this study represents an exploratory attempt to provide a descriptive picture of public relations professional associations and their codes of ethics across 107 countries. In conclusion, we argue that honesty, safeguarding of confidences of clients, and prohibition of conflicts of interest of competing (...) clients should be accepted as the universal values, while other issues, such as free flow of information and fees and gifts, could be understood as the relativistic values specific to a nation's situation and needs. (shrink)

Reflecting current debates on ‘organizational virtues’ as going beyond the capitalocentrist bias of contemporary economies and to see diversity as ‘ethical responsibility,’ this article explores ‘ethical organizing’ at the intersection of alternative organizations and diversity. Our interest in a diversity-oriented analysis of alternative organizations stems from the assumption that those which question taken-for-granted notions of existing economies and follow alternative values of autonomy, solidarity, and responsibility might also be likely to challenge existing diversity relations and, thus, potentially open up new (...) avenues for ethical organizing. Discussing our findings in terms of Lewis and Simpson’s (in)visibility vortex, our study shows that even though organizations position themselves discursively as ‘alternative,’ this positioning is not related to diversity issues. We conclude that a shift is needed to fully constitute ethical organizing, namely the establishment of a strong connection between alternative organizations’ virtues with, e.g., the feminist, anti-racist, queer, and disability rights movements. (shrink)

How can codes of ethics acquire legitimacy—that is, how can they lay down obligations that will be seen by their subjects as morally binding? There are many answers to this question, reflecting the fact that moral agents have a host of different bases on which they may acknowledge code duties as ethically binding—or, alternatively, may reject those duties as morally irrelevant or actively corrupt. Drawing on a wide literature on legitimacy in other practical fields, this paper develops a multidimensional legitimacy (...) framework, describing ten distinct sources of legitimacy. It illustrates how these sources can be seized, not only by the code’s content, but by opportunities presented in the main stages of code development, adoption and implementation. In so doing, it aims to provide practical resources for code developers and ethics reformers in organizations and industries to avoid critical missteps, and to maximize the impact and efficacy of their work. (shrink)

Codes of governance have mushroomed in contexts operating under a single, dominant institutional logic, such as publicly listed corporations. These codes act as institutional prescriptions that help spread best practices throughout industries. More recently, in some countries, specific codes have been developed for hybrid organizations that integrate multiple, conflicting institutional logics simultaneously, such as cooperative enterprises. Drawing on an extensive set of qualitative data, we ask how such institutional prescriptions may (fail to) address governance challenges in organizations with multiple, conflicting (...) institutional demands. In doing so, we extend current literature on governance of hybrid organizations, which has so far focused on individual and organizational levels, to include institutional-level strategies. While governance codes are often inspired by deontological ethics to solve issues in a single institutional logic, we find that governance codes for hybrid organizations should not prioritize a single institutional logic, nor follow a deontological approach to improving governance, but should, on a more pragmatist take, remain open to continuous learning. (shrink)

The present article provides a taxonomic analysis of bimodal logics of normative ideality and normative awfulness, two notions whose meaning is here explained in terms of the moral values pursued by a given community. Furthermore, the article addresses the traditional problem of a reduction among deontic concepts: we explore the possibility of defining other relevant normative notions, such as obligation, explicit permission and Hohfeldian relations, in terms of ideality and awfulness. Some proposals in this respect, which have been formulated in (...) the literature over the years, are here improved and discussed with reference to the various logics that we will introduce. (shrink)