This study examines the effects of individual ethical values and organizational factors on the professional ethics of PR practitioners in Korea by considering a person–situation interactionist model. Individual ethical values are used as individual factors, and organizational factors consist of an organization’s reward and punishment for ethical/unethical behavior, the behavior of peers, and the ethical integrity of the chief ethics officer. The professional ethics of PR practitioners (the dependent variable) are classified into the following three dimensions: professional ethics for the (...) public, the client, and the PR industry. The results indicate that agency practitioners were more likely to be committed to their profession than to their organization, whereas in-house practitioners were more likely to be committed to their organization than to their profession. That is, in-house practitioners showed weak professional commitment, indicating that they perceived themselves as employees, not as PR professionals. Organizational factors such as reward, punishment, and peers’ ethical behavior had considerable influence on the professional ethics of in-house practitioners, whereas they had little influence on agency practitioners. Organizational factors as well as individual ethical values were more likely to influence the professional ethics of in-house practitioners than that of agency practitioners. Thus, to foster in-house practitioners’ professional ethics and commitment, professional associations in the PR industry should make efforts to provide in-house practitioners with more information on the PR industry and more opportunities for interacting and maintaining communication with their colleagues in the industry. (shrink)

Leading a corporation through a crisis requires rational decision making guided by an ethical approach (Snyder et al., Journal of Business Ethics, 63, 2006, 371). Three such approaches are virtue ethics (Seeger and Ulmer, Journal of Business Ethics, 31, 2001, 369), an ethic of justice, and an ethic of care (Simóla, Journal of Business Ethics, 46, 2003, 351). In this article, I consider the effectiveness of these approaches for leading a corporation after a crisis. The standard I use is drawn (...) from recent studies that examine how people tend to react to corporate unintentional harms. I conclude from these studies that an ethic of care approach is most effective for managing corporate crises when it comes to stakeholder concerns. I conclude the article with strategies for managing a crisis using an ethic of care. (shrink)

A product harm crisis undermines a firm’s reputation as well as its managers’ career outlook. To shake off the stigmatization resulting from the PHC and regain a firm’s legitimacy among stakeholders, managers usually face an ethical dilemma as they choose to be transparent about the crisis’ financial implications or to obfuscate them to neutralize the negative impact of the PHC. We find evidence that managers engage in income-increasing earnings management when their firms experience PHCs. Moreover, while income-increasing earnings management in (...) PHCs reduces the likelihood of customer loss and CEO forced turnover in the short run, such behavior can be deemed opportunistic and unethical as it carries long-run negative consequences in terms of a higher likelihood of accounting restatement and weaker future operating performance. Finally, managers in firms that are subject to stricter external monitoring and managers in firms with proactive ethical policies are less likely to engage in upward earnings management in PHCs. (shrink)

The ethics of corporate crisis management is a seriously underdeveloped field. Among recent proposals in the area, two contributions stand out: Seeger and Ulmer’s (2001) virtue ethics approach to crisis management ethics and Simola’s (2003) ethics of care. In the first part of the paper, I argue that both contributions are problematic: Seeger and Ulmer focus on top management and propose virtues that lack substance and are in need of further development. Simola’s proposal is also fraught with difficulty, since it (...) seems to conceive of ethics of care as a course of action that can be chosen in a crisis, something which runs contrary to the idea of caring. In the second part of the paper, I argue that Simola and Seeger and Ulmer are nevertheless on the right track, and I propose some directions for further development of the ethics of corporate crisis management. I argue that the value of codes of conduct is limited. Furthermore, I propose a way of identifying relevant virtues for corporate crisis management and discuss a problem that is prevalent in crisis management ethics (the temptation of ad hoc utilitarianism). (shrink)

Different ethical frameworks have been proposed as appropriate for integrating into crisis management strategies. This study examines an ethic of care approach to crisis management analysing the case of Northern Rock bank which was at the centre of the recent financial crisis in the UK. The development and maintenance of relationships is fundamental to an ethic of care approach and the research recognises this by examining the bank–stakeholder relationship both before and after the crisis. Considerable anger was directed at the (...) bank post-crisis and, subsequently, the management team resigned. An important contention is that because an ethic of care approach had not been followed external parties judged that management should have foreseen the crisis and the harm caused was deemed intentional, even though predicting the crisis would have been difficult and it is improbable any harm was intended. Additionally, this negative reaction was heightened due to three facets of Northern Rock’s history: (i) its previous existence as a building society, (ii) the ‘local’ nature of the bank and (iii) the creation of The Northern Rock Foundation. These historical factors caused local stakeholders to presume a ‘caring’ relationship between themselves, and the bank had continued to exist post-demutualisation. The events of the crisis compelled stakeholders to re-appraise this presumption, amplifying the post-crisis anger. (shrink)

Business and Society Review, Volume 127, Issue 1, Page 23-48, Spring 2022.

In this paper we present a theoretical hybrid framework for ethical decision making, drawing upon Emmanuel Levinas’ view on ethics as “first philosophy”, as an inherent infinite responsibility for the other. The pivotal concept in this framework is an appeal to a heightened sense of personal responsibility of the moral actor to provide the ethical context within which conventional approaches to applied business ethics could be engaged. Max Weber’s method of reconciling absolutism and relativism in ethical decision making is adopted (...) to provide the synergy between personal responsibility and contextual realities, forging a coherent framework. The paper concludes by discussing ways that business could make way for the flourishing of ethics of responsibility in individuals. (shrink)

Corporate social responsibility has grown on the corporate agenda and is at the heart of today’s corporate culture. While much research has examined CSR strategies and effects, the effects of post-crisis CSR communication have received relatively little academic attention. Therefore, this paper uses two experimental studies to examine several key contingency factors that influence consumers’ responses to post-crisis CSR initiatives. Results suggest that consumers demonstrate more favorable responses when a company launches a CSR initiative congruent with the crisis issue, or (...) when the crisis is the result of an accident rather than a transgression. Further, the congruence between the crisis issue and the pre-crisis CSR initiative moderates the consistency effects between pre- and post-crisis initiatives. Such findings should be understood by considering the mediating role of corporate CSR motives’ consumer attributions, which was evidenced in this study. This study theoretically contributes to an improved understanding of the underlying mechanism of the post-crisis CSR information process and managerially contributes to the strategic development of effective post-crisis CSR initiatives given a particular situation. (shrink)

This research examines how one’s construal level of a crisis differs by crisis type, and how the interplay of crisis type and apology appeal type impacts the effectiveness of apology messages in a corporate crisis context. Findings indicate that one’s mental construal toward a crisis varies by crisis type, with a self-threatening crisis leading to a lower level of construal than a society-threatening one. Findings further suggest that in a society-threatening crisis condition, an informational apology was more effective than an (...) emotional one. However, in a self-threatening crisis condition, there was no significant difference between two different message types. These findings offer valuable guidelines for developing effective crisis response strategy. (shrink)