There is a fundamental tension in business ethics between the apparent need to ensure ethical conduct through hierarchical control, and the encouragement of individuals' potential for autonomous moral judgement. In philosophical terms, these positions are consequentialist and Kantian, respectively. This paper assumes the former to be the dominant position in practice, and probably in theory also, but regards it as a misplaced extension of the more general managerial tendency to seek and maintain control over employees. While the functions of such (...) control are recognized, the arguments in favour of individuals' moral autonomy are pursued from both a Kantian and a social–theoretic perspective. Reference is made to Kohlberg's research on moral development that provides an insight into how individuals, through participation in debate with colleagues, might become more effective moral agents within organizational settings. This is contrasted with a managerial perspective, which pays lip service to individuals' right to such genuine involvement. The paper considers psychological manipulation and the legitimacy of managerial authority on matters of ethics, as opposed to in the purely technical context. The wider societal significance of such hierarchical power in organizations constitutes an important background to the paper. It is concluded that genuine, non‐manipulative, participation by employees is the way forward for the ethical management of business ethics. (shrink)

Given the growing interest in religion and spirituality in the community and workplace, we consider what light one of the oldest sources of human ethics, the Torah, can throw on the vexing issues of contemporary employment ethics and social sustainability. We specifically consider the Torah because it is the primary document of Judaism, the source of all the basic Biblical commandments, and a framework of ethics. A distinctive feature of Jewish ethics is its interpretive approach to moral philosophy: that is, (...) immersion and sense making in a dense, lived-in, complicated moral world, which is particularly useful with regard to ethical analyses of the workplace. Rather than discover or create a new ethic for the employer–employee relationship, we seek to harness general principles and norms from the Torah to contemporary business conditions. In the spirit of sustainability, rather than plunder the new, we recreate from existing resources. Interpretations from the Torah provide a rich source of moral and practical guidance for contemporary business ethics while also responding to academic and popular interest in spirituality and business. These tenets, however, have not to date been specifically directed at current predicaments in employment. We redress this by deriving principles from the Torah and applying them to ethical issues in contemporary employment practices. Practical guidance for both research in and practice of employment ethics is also provided. (shrink)

Extending the dialogue on corporate social performance as descriptive stakeholder management, we examine differences in CSP activity between family and nonfamily firms. We argue that CSP activity can be explained by the firm’s identity orientation toward stakeholders. Specifically, individualistic, relational, or collectivistic identity orientations can describe a firm’s level of CSP activity toward certain stakeholders. Family firms, we suggest, adopt a more relational orientation toward their stakeholders than nonfamily firms, and thus engage in higher levels of CSP. Further, we invoke (...) collectivistic identity orientation to argue that the higher the level of family or founder involvement within a family firm, the greater the level of CSP toward specific stakeholders. Using social performance rating data from 1991 to 2005, we find that family and nonfamily firms demonstrate notable differences in terms of social initiatives and social concerns. We also find that the level of family and founder involvement is related to the type and frequency of a family firm’s social initiatives and social concerns. (shrink)

In this preliminary study, the authors extend Swanson's concept of normative myopia (the propensity of executives to downplay or ignore the values at stake in their decision making) by using it as a point of reference for studying executives' preference for high pay dispersion. Specifically, the authors designed a survey to examine hypothesized relationships among myopia, personality, and executives' preference for highly stratified organizational pay structures. Data from 133 executive respondents suggest that myopic executives tend to prefer top-heavy compensation systems. (...) In addition, the findings point to an inverse relationship between the personality factor Agreeableness and normative myopia, with the former offsetting the latter. The authors reject the alternative hypothesis that gender influences both agreeableness and myopia and conclude with some implications for business and society, including Swanson's proposition that normative myopia at the top contributes to a neglectful form of corporate social performance. (shrink)

The present paper analyses how top managers construct the meaning of sustainable human resource management and its responsibility areas and how they identify and prioritize stakeholders in sustainable HRM. The empirical data were collected as part of the Finnish HR Barometer inquiry. A qualitative analysis reveals four dimensions of sustainable HRM: Justice and equality, transparent HR practices, profitability, and employee well-being. It also reveals four broader responsibility areas: Legal and ethical, managerial, social, and economic. Contrary to the prior green HRM (...) literature, ecological responsibility was largely ignored. The study also reveals a wide range of stakeholders, specifically, owners, managers, employees, customers, and employee representatives, as well as their special roles and requirements for sustainable HRM. These findings contribute to the literature of sustainable HRM by illustrating the dimensions and broader responsibilities of sustainable HRM as seen by top managers. Their conceptions of sustainable HRM are largely neglected in the prior literature despite their crucial role in legitimating HRM and thus sustainable HRM in companies. These results also contribute to the theory of stakeholder salience in the sustainable HRM context from the viewpoint of top managers. (shrink)

Over the last generation, American Business Ethics has focused excessively on the process of managerial decision-making while ignoring the collective impact of these decisions and avoiding other approaches that might earn the disapproval of corporate executives. This narrowness helped the field establish itself during the 1980s, when American management, under pressure from finance and heightened competition, was unreceptive to any limitations on its autonomy. Relying, however, on top-down approaches inspired by Aristotle, Locke, and Kant, while ignoring the consequentialism of Mill (...) and Rawls, made the field totally reliant upon the good will of these same corporate executives for generating any impact. Trends in employee compensation, finance, regulation, government procurement, and taxpayer subsidies suggest that Business Ethics has failed to significantly influence corporate behavior, a result that would have not surprised the realists of the post-war generation of Business and Society scholars. If Business Ethics is to prove relevant in the contemporary world, the field needs to acknowledge past failures and develop new approaches. The decline of American economic hegemony coupled to the increased internationalization of the discipline may create the opportunity to do so. (shrink)

Research on corporate philanthropy typically focuses on organization-external pressures and aggregated donation behavior. Hence, our understanding of the organization-internal structures that determine whether a given organization will respond philanthropically to a specific human need remains underdeveloped. We explicate an attention-based framework in which specific dimensions of organization-level attention focus interact to predict philanthropic responses to an emergent human need. Exploring the response of Fortune Global 500 firms to the 2004 South Asian tsunami, we find that management attention focused on people (...) inside the organization interacts with both attention for places and attention for practices to predict the likelihood of charitable donations. Our research thus extends beyond the prevailing institutional perspective by highlighting the role of attention focus in corporate responsiveness to emergent societal issues. (shrink)

This study aims to examine the perceptions of Black, Asian and Minority Ethnic staff in English local government on the ethical nature of their treatment at work, and its mediating effect on their Public Service Motivation. This is a particular imperative in a sector which itself delivers social justice within a strong regulatory system designed to ensure workplace equality and therefore is expected to be a model employer for other organisations. Employees place great importance on their fair treatment by their (...) employers and, in particular, the endeavour of managerial authority to implement equality at work based on their discretionary powers. 2580 valid responses were collected from 15,000 questionnaires sent to staff in five local councils in England. Our analyses show that BAME employees have a significantly stronger PSM than their white colleagues; however, this has been eroded by their perception of unfair treatment: being underpaid allied with a lack of effort from management to ensure an equal work environment, to be specific, to prevent discrimination, bullying, and racism at workplace. Most importantly, the perceived exertion made by management to ensure an equal work environment has a significantly strong mediating effect on PSM and a compensational effect on perceived lower pay. Theoretical and practical implications are discussed. (shrink)

In recent years, there has been increasing managerial and academic attention given to a variety of mechanisms for companies to respond to stakeholder concerns about global business ethics. One area that merits further analysis is the role of industry‐level cooperation regarding issues in global business ethics such as labor practices. There are two main issues that we will address in this article: institutional pressures that predict when an industry will create a code of conduct and institutional complements for an industry‐level (...) code of conduct to be “successful” with regard to responding to stakeholder concerns about international business operations. We offer a number of propositions—bringing together work from both the corporate social responsibility and (neo)institutional theory literatures—with regard to both predictors and complements of industry self‐regulation in reference to labor practices. (shrink)