Corporate malpractice and malfeasance on an unprecedented scale have brought ethical issues to the fore and accentuated demands from activists, governments, and the public for greater corporate social responsibility (CSR). The predominant response of researchers and policymakers has been to focus on the external impact of business operations and the merits of regulation or persuasion in achieving more responsible practice in these areas. In this article, we focus on a less well explored aspect of CSR, namely the evaluation of an (...) organization's CSR activities by its internal stakeholders (i.e., employees). Salient CSR literature is reviewed to differentiate between CSR and ethical business practice (EBP), conceptualizing the latter as the internal manifestation of CSR as represented by an organization's values and vision, strategy and policy, systems and procedures, and people management practices. This article assesses organizational espousal of EBP in three ways: how successfully it is communicated to employees, how closely espousal aligns with employee expectation, and how this evaluation impacts on employee commitment. Our research approach aligns with and extends previous work in this area that identifies the likelihood of a “false consensus bias” by managers in assuming congruence between organization espousal of EBP and employee expectation. A conceptual model is offered to explain possible employee responses to an organization's EBP. This relates organization espousal of EBP to employee assessment of its salience to identify three positions on commitment that employees can adopt—abrogated, continuance, and affective commitment—together with their likely behavioral implications. The analysis generates a series of research questions and related areas of exploration to empirically test the conceptual model. (shrink)

Corporate codes of conduct are a practical corporate social responsibility (CSR) instrument commonly used to govern employee behavior and establish a socially responsible organizational culture. The effectiveness of these codes has been widely discussed on theoretical grounds and empirically tested in numerous previous reports that directly compare companies with and without codes of conduct. Empirical research has yielded inconsistent results that may be explained by multiple ancillary factors, including the quality of code content and implementation, which are excluded from analyses (...) based solely on the presence or absence of codes.This study investigated the importance of code content in determining code effectiveness by examining the relationship between code of conduct quality and ethical performance. Companies maintaining high quality codes of conduct were significantly more represented among top CSR ranking systems for corporate citizenship, sustainability, ethical behavior, and public perception. Further, a significant relationship was observed between code quality and CSR performance, across a full range of ethical rankings. These findings suggest code quality may play a crucial role in the effectiveness of codes of conduct and their ability to transform organizational cultures.Future research efforts should transcend traditional comparisons based on the presence or absence of ethical codes and begin to examine the essential factors leading to the effective establishment of CSR policies and sustainable business practices in corporate culture. (shrink)

This research reports on the current state of ethics and compliance programs among business organizations in the United States. Members of the Ethics and Compliance Officers Association (ECOA), the premier professional association for managers working in this field, were asked to provide in-depth responses to a series of questions covering various elements of their corporate ethics and compliance programs. The findings from this analysis indicate that ethics and compliance programs have multiple components that are implemented developmentally, are influenced by regulatory (...) and legal efforts and have evolved into more sophisticated approaches that include risk assessment and employee performance appraisal. However, these programs remain vulnerable to sufficient resource allocation by the organization to be fully effective. (shrink)

Although case-based training is popular for ethics education, little is known about how specific case content influences training effectiveness. Therefore, the effects of (a) codes of ethical conduct and (b) forecasting content were investigated. Results revealed richer cases, including both codes and forecasting content, led to increased knowledge acquisition, greater sensemaking strategy use, and better decision ethicality. With richer cases, a specific pattern emerged. Specifically, content describing codes alone was more effective when combined with short-term forecasts, whereas content embedding codes (...) within context was more effective when combined with long-term forecasts, leading to greater knowledge acquisition and sensemaking strategy use. (shrink)

Driven by recent accreditation mandates, a changing legal environment, and multiple high-visibility corporate ethics scandals, many business schools are responding to the growing movement within higher education to integrate ethics into the curricula. The literature suggests that the amount of attention given to ethics varies widely among institutions, and has not been coherently developed. Moreover, institutions have struggled to tie related projects and instruction to the overall concept of assurance of student learning. The purpose of this paper is to provide (...) a framework for institutions interested in creating an interdisciplinary business ethics program that combines critical success factors, assurance of student learning and continuous quality improvement. Using a nationally recognized business school’s ethics program, we provide an example of how our model can be applied at other institutions based on their own unique vision, mission and goals. (shrink)

Continual corporate malfeasance signals the need for obeying the law and for enhancing business ethics perspectives. Yet, the relationship between law and ethics and its integrative role in defining values are often unclear. While integrity-based ethics programs emphasize ethics values more than law or compliance, viewing ethics as being integrated with law may enhance understanding of an organization’s core values. The author refers to this integration of law and ethics as “substantive ethics,” analogous to the substantive law that evolves over (...) time, which is applied to ethical breaches and carries sanctions for non-compliance. This article describes the integration of law and ethics as a mid-point between two polar views that define law and ethics either as having no relation or as being one and the same. Since corporations expressly state which laws they follow, a sample of corporate compliance statements is used to demonstrate this integrative mid-point. The sample also reveals that corporate ethics codes rarely express ethics and law as being integrated per se. Therefore, the author creates an example of a securities law compliance statement that is introduced with an integrative perspective of law and ethics. Perhaps such revised corporate codes will encourage corporate respect for both law and ethics and enhance ethical sustainability. (shrink)

Although family business comprises the majority of global business, it is significantly under-researched. Yet it is considered to have unique ethical values compared to non-family corporations. This is attributable to its family orientation. Therefore, it is worthwhile to identify and define dominant family business ethics values. The authors compare a sample of the U.S. family business, U.S. corporate entities, and international family business mission statements for frequency of ethics values. The data reveals three primary findings: (1) generally, the U.S. family (...) business expressed a higher frequency of ethical values than its non-family corporate and international counterpart, (2) U.S. family business has a strong lead in “integrity” and “honesty” whereas international family business leads in “environmentalism,” “globalism,” and “social responsibility,” and (3) generally, the frequency of ethics values for all family business globally has increased over time. The family business mission statement continues to provide ethical direction for the majority of global business. The emerging family business values identified in our sample will further impact global business success and promote ethical sustainability world-wide. (shrink)

ABSTRACT:We analyze corporate ethics programs as control systems, arguing that how control is exercised may have pernicious consequences and be morally problematic. In particular, the control cultivated by ethics programs may weaken employees’ ability and motivation to exercise their own moral judgment, especially in novel situations. We develop this argument first by examining how organization theorists analyze control as an instrument of management coordination, and by addressing the political implications of control. We discuss coercive and enabling control as variations that (...) help account for the distinction between compliance-based ethics programs and values-based ethics programs. We then explore three potential drawbacks of ethics programs: the specter of indoctrination, a politicization of ethics, and an atrophy of competence. Ethics programs that rely on coercive control may undermine their own effectiveness at stemming misbehavior. (shrink)

The article advances an understanding of responsible leadership in global business and offers an agenda for future research in this field. Our conceptualization of responsible leadership draws on deliberative practices and discursive conflict resolution, combining the macro-view of the business firm as a political actor with the micro-view of leadership. We discuss the concept in relation to existing research in leadership. Further, we propose a new model of responsible leadership that shows how such an understanding of leadership can address the (...) challenges of globalization. We thereby propose positive outcomes of responsible leadership across levels of analysis. The model offers research opportunities for responsible leadership in global business. (shrink)

The relationship between unethical peer behavior and observers’ unethical behavior traditionally has been examined from a social learning perspective. We employ two additional theoretical lenses, social identity theory and social comparison theory, each of which offers additional insight into this relationship. Data from 600 undergraduate business students in two universities provide support for all the three perspectives, suggesting that unethical behavior is influenced by social learning, social identity, and social comparison processes. Implications for managers and future research are discussed.

Research in ethical decision making has consistently demonstrated a positive relationship between others’ unethical behavior and observers’ unethical behavior, providing support for the “Monkey See, Monkey Do” perspective (e.g., Robinson and O’Leary-Kelly, Acad Manage J 41:658–672, 1998 ). However, the boundaries of this relationship have received little research attention. Guided by theory and research in interpersonal distancing, we explore these boundaries by proposing and examining “moral differentiation,” the set of individual and situational characteristics that affect the degree to which one (...) is willing to be influenced by others’ unethical behavior. Using data from 655 undergraduate business students in two U.S. universities, we test moderating hypotheses regarding the influence of moral differentiation characteristics on the relationship between others’ unethical behavior and observers’ unethical behavior. Results suggest that strong moral identity, low need for affiliation, and extraversion weaken the relationship between others’ unethical behavior and observers’ unethical behavior. Implications for managers and future research are discussed. (shrink)

Abstract:Organizational justice and injustice are widely noted influences on employees’ ethical behavior. Corporate ethics programs also raise issues of justice; organizations that fail to “follow-through” on their ethics policies may be perceived as violating employees’ expectations of procedural and retributive justice. In this empirical study of four large corporations, we considered employees’ perceptions of general organizational justice, and their perceptions of ethics program follow-through, in relation to unethical behavior that harms the organization, and to employees’ willingness to help the organization (...) by reporting ethical problems and issues to management. Results show that when employees perceive general organizational justice and ethics program follow-through, there is less unethical behavior and greater willingness to report problems. General justice and ethics program follow-through also interact with each other, showing that the impact of ethics initiatives is influenced by the organizational context. (shrink)

To promote ethical practices, healthcare managers must understand the ethical challenges encountered by key stakeholders. To characterize ethical challenges in Veterans Administration facilities from the perspectives of managers, clinicians, patients, and ethics consultants. We conducted focus groups with patients and managers ; semi-structured interviews with managers, clinicians, and ethics committee chairpersons. Data were analyzed using content analysis. Managers reported that the greatest ethical challenge was fairly distributing resources across programs and services, whereas clinicians identified the effect of resource constraints on (...) patient care. Ethics committee chairpersons identified end-of-life care as the greatest ethical challenge, whereas patients identified obtaining fair, respectful, and caring treatment. Perspectives on ethical challenges varied depending on the respondent's role. Understanding these differences can help managers take practical steps to address these challenges. Further, ethics committees seemingly, are not addressing the range of ethical challenges within their institutions. (shrink)

To promote ethical practices, healthcare managers must understand the ethical challenges encountered by key stakeholders. To characterize ethical challenges in Veterans Administration (VA) facilities from the perspectives of managers, clinicians, patients, and ethics consultants. We conducted focus groups with patients (n = 32) and managers (n = 38); semi-structured interviews with managers (n = 31), clinicians (n = 55), and ethics committee chairpersons (n = 21). Data were analyzed using content analysis. Managers reported that the greatest ethical challenge was fairly (...) distributing resources across programs and services, whereas clinicians identified the effect of resource constraints on patient care. Ethics committee chairpersons identified end-of-life care as the greatest ethical challenge, whereas patients identified obtaining fair, respectful, and caring treatment. Perspectives on ethical challenges varied depending on the respondent's role. Understanding these differences can help managers take practical steps to address these challenges. Further, ethics committees seemingly, are not addressing the range of ethical challenges within their institutions. (shrink)

Peace Through Commerce (PTC) is expanding its influence on the formulation of business strategies for responding to challenges found in conflict and post-conflict zones. A review of practical guidance available on successful PTC business practices shows it is more general than particular and short on detailed recommendations. In addition, such recommendations say little about how globalization is transforming the forms and processes of global governance and their implications for PTC strategies. An assessment of the changing landscape of global governance suggests (...) that implementation of successful PTC strategies will face even greater challenges. However, the emergence of a 'global governance broker' model as an innovative, multi-sector, voluntary approach to organizing global governance suggests a new method for businesses to implement their PTC policies and programs. The 'global governance broker' approach is described and its implications for business as an alternative approach to formulating their PTC strategies and implementing their PTC policies and programs are considered. (shrink)

This paper documents the development and implementation of an ethically valid code of ethics in a newly formed national professional organization. It describes the experience and challenges faced by the National Association of Senior Move Managers (NASMM) and its leaders as they worked to establish ethics as an organizing framework early in its evolution. Designed by the investigators and supported by the NASMM Board, the process took place over a 2 year period and more than 130 people participated. It provides (...) a model for code development that is both practical and grounded in theory. Although the content of a code of ethics (the "product") provides guidance to organizational members in the conduct of everyday business, especially when they face ethically challenging situations, how the code is developed (the "process") influences its ethical validity. Few published cases document an organization's experience developing a code, and this is the first case, to our knowledge, that provides a first-hand longitudinal account of an effective code development process. (shrink)

ABSTRACT:We combine prior research on ethical decision-making in organizations with a rational choice theory of corporate crime from criminology to develop a model of corporate offending that is tested with a sample of U.S. managers. Despite demands for increased sanctioning of corporate offenders, we find that the threat of legal action does not directly affect the likelihood of misconduct. Managers’ evaluations of the ethics of the act, measured using a multidimensional ethics scale, have a significant effect, as do outcome expectancies (...) that result from being associated with the misconduct but not facing formal sanctions. The threat of formal sanctions appears to operate indirectly, influencing ethical evaluations and outcome expectancies. Obedience to authority also affects illegal intentions, with managers reporting higher prospective offending when they are ordered to engage in misconduct by a supervisor. (shrink)

Effective corporate social responsibility policies are a requirement for today's companies. Policies have not only to be formulated, they also have to be delivered by corporate employees. This paper uses existing research findings to identify two types of factors that may impact on employee motivation and commitment to CSR ‘buy-in’. The first of these is contextual: employee attitudes and behaviours will be affected by organizational culture and climate, by whether CSR policies are couched in terms of compliance or in terms (...) of values, and by whether such policies are integrated into business processes or simply an ‘add-on’ that serves as window-dressing. The second set of factors is perceptual. Motivation and commitment will be affected by the extent to which they can align personal identity and image with that of the organization, by their perceptions of justice and fairness both in general and in terms of how CSR performance is rewarded, and by their impressions concerning the attitude of top management to CSR issues and performance. (shrink)

In this paper we suggest that the ethical duties of business schools can be understood as representing stewardship in the Aristotelian tradition. In Introduction section we briefly explain the nature of ethical stewardship as a moral guideline for organizations in examining their duties to society. Ethical Stewardship section presents six ethical duties of business schools that are owed to four distinct stakeholders, and includes examples of each of those duties. Utilizing this Framework section identifies how this framework of duties can (...) be used in the process of self-examination and transformation within business schools. Why It Matters section concludes by explaining why the process of examining ethical duties at business schools is vitally important for both business schools and the larger communities that they serve. (shrink)

There are three types of solutions to the problems deriving from companies' ethical, social and environmental responsibilities: those based on regulation by an authority or agency; those deigned to create market incentives; and those that rely on self-regulation by companies themselves. In the specific field we are concerned with here, regulation has significant costs and drawbacks that make it particularly desirable that companies should set up their own ethical, social and environmental management systems or programmes. The purpose of this article (...) is twofold. On the one hand, it explains how implementing voluntary ethical, social and environmental management systems or programmes may help to develop and sustain ethical behaviour in organizations, overcoming the conflict between compulsory regulation and occasional ethical practices. On the other hand, it shows that conditions must be met for an ethical management programme to be effective. (shrink)

There has been a longstanding controversy in research as to whether moral judgment is the result of an analytical or an intuitive process. Today, researchers increasingly recognize that moral judgments can be the result of both intuition and analysis, and that the two paths can lead to different results. This raises the question as to which of the two processes leads to a better moral judgment. The article develops a typology of moral problems depending on their moral uncertainty and moral (...) equivocality and links the derived types with analysis and intuition effectiveness. The typology considers four types of moral problems: compliance problems (low uncertainty, low equivocality), professional ethics problems (high uncertainty, low equivocality), conformity problems (low uncertainty, high equivocality) and ethical dilemmas (high uncertainty, high equivocality). The article argues that compliance and professional ethics problems are best solved analytically, whereas intuition is assumed to be more suitable for conformity problems and ethical dilemmas. Moreover, the article shows that it is not sufficient to contrast intuition with analysis alone. The higher the moral uncertainty, the more important the interplay of intuition and analysis becomes in making moral judgments. (shrink)

How do wealth managers understand and comply with the social norms embedded in banks’ codes of conduct (CoC), and how do they cope with ethical dilemmas? Do they have a tendency after the global financial crisis to prioritize banks’ financial security over clients’ interests? To answer these and related questions, we conduct a nonincentivized online survey with wealth management employees of the Swiss legal entity of a large multinational bank. We propose a method to estimate the comprehension and the level (...) of expected adherence to the CoC principles that we test with our sample. We further show that framing questions under the label of “Financial Security” increased response accuracy and that employees’ honesty helped guide their decision-making toward integrity in ethical dilemmas. Thus, in addition to validating a method for testing the level of CoC comprehension and the expected adherence to its principles, our study is among the first to show that in the wealth management business, honesty and social injunctive norms defined in the bank’s CoC reinforce one another. (shrink)

Research regarding ethics programs represents an important segment of business ethics literature. In the last thirty years, scientific discourse on ethics programs has flourished. Numerous studies examined their functions, composition, application in organizational practice, and impact on employee ethical behavior and many other organizational variables. However, so far there has been no study that would comprehensively map this particular field. Given that, this paper aims to examine discourse on ethics programs in its complexity within business and management literature. Based on (...) a sophistically composed search protocol in the Scopus database, and after multiple rounds of checks, we extracted a final sample of 287 documents that matched the selection criteria. The sample was thoroughly analyzed by means of advanced bibliometric analytics tools. The results show the quantitative impact of ethics program literature via publication and citation metrics, a network of co-occurring themes and clusters of scientific inquiry, and the evolution of respective discourse over time. This detailed analysis results in a set of conclusions provided in the last part of the paper summarizing the quantitative performance and thematic scope of literature on ethics programs. (shrink)

Business and Society Review, Volume 127, Issue 1, Page 69-96, Spring 2022.

Business Ethics: A European Review, EarlyView.

ABSTRACTMobilizing Foucault’s genealogy, this article investigates how an “ethics event”—the involvement by some sell-side financial analysts in the United States and United Kingdom across the past two decades in corporate governance—emerged. It is found that the complex relations formed between specific historical precedents, normative discourses, and fields of power rendered certain issues in financial markets morally problematic and constructed analysts’ corporate governance work as a potential solution. Contributing to research in finance ethics, this article develops a novel perspective to conceptualize (...) the rise of ethically relevant practices in financial markets, focusing on how ethical problems and their solutions are outcomes of discursive construction and power relations. This article also revises our understanding of the boundary between technical norms and moral norms in financial markets. When ethical crises occur, it is argued, transforming technical practices and revising the technical norms adopted by financial professionals has the potential to tackle ethical concerns. (shrink)

The current paper examines whether knowledge of an ethical principle influences moral awareness and ethical decision making. Using hypothetical scenarios and a behavioral task, three experiments examine the effects of deepening people’s knowledge of ethical principles. In each study, an analogical encoding learning intervention led to greater knowledge of an ethical principle, which in turn resulted in a greater likelihood of moral awareness and making ethical decisions. These findings suggest that moral awareness is partly a matter of the depth of (...) individuals’ knowledge of ethical principles. The findings provide further reasons to link work on ethics with work on expertise and knowledge transfer as well as indicate new approaches to ethics training. (shrink)

The compliance officers' (CO) profession has been evolving over the last few decades. The expectations placed upon the individuals holding such a position vary across jurisdictions, but they are all expected to ensure employees and management of the business entity comply with the law. Given the limited research on CO in Europe, and the increasing public interest in this profession, the current authors have carried out a survey in Cyprus in an effort to map out and contextualize the CO' profession. (...) The findings illustrate CO's academic and professional qualifications, their awareness of their legal liability, the level of knowledge and job performance of their duties as prescribed by law, as well as gaps in the performance of duties as expected by management, boards, and regulators. The policy implications derived from the study suggest coherence and synergies to be found through common exam and postgraduate qualification in the field of financial compliance. (shrink)

The main contention of this paper is that our ability to embed a consideration of values into business school curricula is hampered by certain normative parameters that our students have when entering the classroom. If we don’t understand the processes of valuation that underpin our students’ reasoning, our ethics teaching will inevitably miss its mark. In this paper, we analyze one of the most prevalent metaphors that underpin moral arguments about business, and reveal the beliefs and assumptions that underpin it. (...) By revisiting the content of Adam Smith’s “invisible hand” metaphor, we show that the moral content of the metaphor has been significantly misconstrued through its subsequent reception in economic theory. The “Giving Voice to Values” pedagogy aims to enable students to act on their tacit values and address the rationalizations that they may encounter for not acting on these values. We believe our analysis can strengthen the employment of GVV in three ways: understanding tacit blockages to moral action, i.e., how students’ belief in the moral efficacy of the invisible hand could undermine their own sense of moral duty; addressing common rationalizations that may emerge from different assumptions about morally appropriate courses of action in the workplace; and resolving values conflicts on how to act. (shrink)

The article deals with the influence of organizational ethics program components on managerial ethical behavior. The main aim was to establish which EP components are perceived as valuable and useful to foster the ethical behavior of managers. Moreover, we also aimed to investigate the role of ethics training in this context and to explore whether it can potentially increase managers’ trust in EP components as effective tools for the promotion of ethical behavior. The article advances the EP theory in several (...) ways. It offers novel insights into both business ethics and EP development in the specific cultural and social circumstances of a former socialist country in the Central and Eastern European region, Slovakia. It shows that codes of ethics and related reporting and control mechanisms are perceived as the most effective EP components to shape managerial ethical behavior. Furthermore, based on empirical evidence, and to some extent contrary to prior theory, the article unveils three EP functions, namely the ‘compliance with group norms,’ the ‘ethics education through collective discussion,’ and the ‘counselling and resolving of ethical issues’ at workplace. In addition, the article shows that ethics trainings can help to boost the trust of managers toward EP components and might be conceptualized as a precursor for an effectively functioning EP. (shrink)

In this article, we review the shame and ethical behavior literature in order to more fully develop theory and testable propositions for organizational scholars focusing on the behavioral implications of this ‘moral’ emotion. We propose a dual pathway multilevel model that incorporates complex relationships between felt and anticipatory shame processes and ethical behavior, both within and between persons and at the collective level. We propose a holistic treatment of shame that includes dispositional and organizational influences on the cognitive and emotional (...) forces that shape ethical behavior in organizations. The implications of our review of shame for ethical behavior, organizations, and concrete research action are discussed. (shrink)

When successful and ethical managers are alerted to possible organizational wrongdoing, they take corrective action before the problems become crises. However, recent research [e.g., Rynes et al. (2007, Academy of Management Journal50(5), 987–1008)] indicates that many organizations fail to implement evidence-based practices (i.e., practices that are consistent with research findings), in many aspects of human resource management. In this paper, we draw from years of research on whistle-blowing by social scientists and legal scholars and offer concrete suggestions to managers who (...) are interested in encouraging internal reporting of problems requiring attention, and to observers of questionable activity who are considering reporting it. We also identify ways that research suggests policy-makers can have a more positive influence. We hope that these suggestions will help foster evidence-based practice regarding whistle-blowing. (shrink)

Scholars have shown renewed interest in the construct of courage. Recent studies have explored its theoretical underpinnings and measurement. Yet courage is generally discussed in its broad form to include physical, psychological, and moral features. To understand a more practical form of moral courage, research is needed to uncover how ethical challenges are effectively managed in organizational settings. We argue that professional moral courage (PMC) is a managerial competency. To describe it and derive items for scale development, we studied managers (...) in the U.S. military and examined prior work on moral courage. Two methods were used to measure PMC producing a five dimensional scale that organized under a single second-order factor, which we termed overall PMC. The five dimensions are moral agency, multiple values, endurance of threats, going beyond compliance, and moral goals. Convergent and discriminant validity are analyzed by use of confirmatory factor analysis procedures. We conclude by presenting a framework for proactive organizational ethics, which reflects how to support PMC as a management practice. (shrink)

Senior managers are important to the successful management of ethics in organizations. Therefore, their perceptions of organizational ethics are important. In this study, we propose that senior managers are likely to have a more positive perception of organizational ethics than lower level employees do largely because of their managerial role and their corresponding identification with the organization and need to protect the organization’s image as well as their own identity. By contrast, lower level employees are more likely to be cynical (...) about the organization’s ethics. In order to compare senior managers’ and lower level employees’ perceptions of ethics in the organization, we surveyed randomly selected senior managers and lower level employees in three firms. We found that perceptions of ethics in the organization differed predictably across levels, with senior managers’ perceptions being significantly more positive and lower level employees’ perceptions being more negative. Implications for practice and research are discussed. (shrink)

ABSTRACT:Whether at the executive or the line-management levels, businesspeople face moral decisions that cannot be easily resolved with reference to a shared ethos, whether because of diversity of ethea in the organization or its environment, or because the organization's ethos is inadequate for the problem at hand. These decisions are made more common by the changing norms of a pluralistic business environment, and require collective moral deliberation to be adequately resolved. Discourse ethics ideally characterizes the form of valid collective moral (...) deliberation. I argue that accommodation for the limitations of actual discourse makes discourse ethics, conceived in terms of the rules of practical discourse, practical for realizing improvements in the openness and validity of moral decision-making over states in which these rules are flagrantly violated. These rules have normative implications at the organizational level for the integrity approach to corporate ethics programs, and at the individual level for ethical leadership. (shrink)

ABSTRACT:U.S. Organizational Sentencing Guidelines provide firms with incentives to develop formal ethics programs to promote ethical organizational cultures and thereby decrease corporate offenses. Yet critics argue such programs are cosmetic. Here we studied bank employees before and after the introduction of formal ethics training—an important component of formal ethics programs—to examine the effects of training on ethical organizational culture. Two years after a single training session, we find sustained, positive effects on indicators of an ethical organizational culture (observed unethical behavior, (...) intentions to behave ethically, perceptions of organizational efficacy in managing ethics, and the firm’s normative structure). While espoused organizational values also rose in importance post-training, the boost dissipated after the second year which suggests perceptions of values are not driving sustained behavioral improvements. This finding conflicts with past theory which asserts that enduring behavioral improvements arise from the inculcation of organizational values. Implications for future research are discussed. (shrink)

Corporate social responsibility refers to the duty of management to consider and respond to issues beyond the organization’s economic and legal requirements in line with social and environmental values. However, ‘management’ is constituted by real people responsible for routine decisions and formulation and implementation of policies. It can be said therefore that the ethical ideals and beliefs of these individuals – in particular their personal values – play an important role in their decisions. It is contended in this article that (...) the personal values of managers may contribute to the creation and maintenance of ‘CSR cultures’ in their organizations; that is, organizational cultures focused on ensuring environmental and social sustainability. Based on an exploratory study carried out in Brazil in 2008, this article explores the perceptions of five CSR managers in relation to the influence of their personal values on their work. The first part discusses the notion of CSR within the context of Brazilian society, the second provides a brief literature review on the link between values and organizational cultures and the third explores the perceptions of the participating managers, identifying the main thematic patterns that emerged in the study. (shrink)

The purpose of this study was to extend the knowledge about why procedural justice has behavioral implications within organizations. Since prior studies show that PJ leads to legitimacy, the author suggests that, when formal regulations are unfairly implemented, they lose their validity or efficacy. This “rule deactivation,” in turn, leads to two proposed destructive work behaviors, namely, workplace deviance and decreased citizenship behaviors. The results support this mediating role of RD, thus suggesting that it forms part of the generative mechanism (...) through which unfair procedures influence ethical behavior within organizations. The author ends the article by discussing behavioral ethics and managerial implications as well as suggestions for future research. (shrink)

This article explores the issue of rebuilding an organization’s reputation following an ethical scandal. We divide our discussion into four parts. First, we discuss the concept of reputation. We note its relevance to today’s organizations, offer several contemporary definitions along with highlighting its benefits and downsides. In the second section, we offer the work of anthropologist, Victor Turner, on social drama along with other views on organizational efforts to rebuild their reputation to include reputation management routines. In the third section, (...) Turner’s redressive actions are integrated with Edgar Schein’s leadership mechanisms for building or changing culture to provide further understanding of organizational efforts to rebuild reputation following ethical scandals. Finally, in the fourth section of the article, we extend the integration of the Turner and Schein work with single- and double-loop redressive actions for rebuilding reputation. (shrink)

One of the main objectives of an ethics program is to improve the ethical culture of an organization. To date, empirical research treats at least one of these concepts as a one-dimensional construct. This paper demonstrates that by conceptualizing both constructs as multi-dimensional, a more in-depth understanding of the relationship between the two concepts can be achieved. Through the employment of the Corporate Ethical Virtues Model, eight dimensions of ethical culture are distinguished. Nine components of an ethics program are identified. (...) To assess the relationship between ethics programs and ethical culture, a survey was conducted of 4,056 members of the U. S. working population. The results show that the relationships between the components of an ethics program and the dimensions of ethical culture differ in strength, nature, and significance. Implications for research and practice are discussed. (shrink)

Considering the organization’s ethical context as a framework to investigate workplace phenomena, this field study of military reserve personnel examines the relationships among perceptions of psychosocial group variables, such as cohesiveness, helping behavior and peer leadership, employee job attitudes, and the likelihood of individuals’ withholding on-the-job effort, a form of organizational misbehavior. Hypotheses were tested with a sample of 290 individuals using structural equation modeling, and support for negative relationships between perceptions of positive group context and withholding effort by individual (...) employees was found. In addition, individual effort-performance expectancy and individual job satisfaction were negatively related to withholding effort. The findings provide evidence that individual perceptions of positive group context play a key role in the presence of misbehavior at work. The results indicate that positive group context might be an important element of ethical climate that should be managed to temper occurrence of such adverse work behavior. (shrink)

A heterogeneous survey sample of for-profit, non-profit and government employees revealed that organizational factors but not personal characteristics were significant antecedents of misconduct and job satisfaction. Formal organizational compliance practices and ethical climate were independent predictors of misconduct, and compliance practices also moderated the relationship between ethical climate and misconduct, as well as between pressure to compromise ethical standards and misconduct. Misconduct was not predicted by level of moral reasoning, age, sex, ethnicity, job status, or size and type of organization. (...) Demographic variables predicted job satisfaction and organizational variables added significant incremental variance. Results suggest the importance of promoting a moral organization through the words and actions of senior managers and supervisors, independent of formal mechanisms such as codes of conduct. (shrink)

This study examined the influence of two organizational context variables, codes of conduct and supervisor advice, on personnel decisions in an experimental simulation. Specifically, we studied personnel evaluations and decisions in a situation where codes of conduct conflict with supervisor advice. Past studies showed that supervisors’ advice to prefer ingroup over outgroup candidates leads to discriminatory personnel selection decisions. We extended this line of research by studying how codes of conduct and code enforcement may reduce this form of discrimination. Eighty (...) German managers evaluated and selected candidates from an applicant pool including Germans (ingroup members) and foreigners (outgroup members). Supervisor advice to prefer ingroup members lowered suitability ratings of outgroup members as well as their chances to be selected for an interview. Ethical codes of conduct referring to equal opportunities limited this form of discrimination, but only when codes were enforced by sanctions and integrated into organizational every-day practice. The implications of these findings for research and practice are discussed. (shrink)

In this article, I explore how the ideas of French philosopher Emmanuel Levinas offer insights into a debate often held today in the field of corporate governance, concerning the relative merits of statutory and voluntary approaches to the regulation of business. The philosophical position outlined by Levinas questions whether any rule-based systematisation of ethical responsibility, either statutory or voluntary, can ever equate to a genuine responsibility for the other person. I reflect on how various authors have adapted Levinas’s philosophy to (...) form a critique of bureaucracy and rule following in business, and the lack of ethical authenticity in corporate codes. However, this article also considers the question of whether a theoretical separation can be made between an ethical responsibility based on sensibility (as is suggested by Levinas) and a rational conceptualisation of how one is required to act. Considering the difficulty of disentangling these notions of ethics, I return to the problem of corporate governance and suggest an approach to stakeholder conflict based on mediation and dialogue, which rules out neither principles of conduct nor an openness of responsibility to the Other. (shrink)

This article will defend a very simple thesis. In a diverse globalized “flat” world with expanding economic opportunities and risks, we will need to revisit and revise our mindsets about free enterprise, corporate governance, and leadership. That we can change our mindsets and world view is illustrated by studies of primate behavior, and the kind of leadership necessary in a global economy is, interestingly, exemplified by women.

This paper develops a typology of moral problems in business. The cross-classification of two fundamental dimensions of ethical conduct: judgment and motivation, is employed to distinguish four types of moral problems: genuine dilemmas, compliance problems, moral laxity, and no-problem problems. Actual cases are brought to illustrate each type of problem, and corresponding coping strategies are presented. The paper highlights the need to design a dynamic strategy that will take into account the relationships among different types of ethical problems. In its (...) capacities as both an analytical tool for identifying and clarifying an ethical problem and a strategic tool for handling it, the typology has direct implications for developing ethical awareness, assigning accountability, and unfolding typical rationalizations in business activity. (shrink)

This review summarizes and critiques the empirical ethical decision-making literature from 1996–2003. One hundred and seventy-four articles were published in top business journals during this period. Tables are included that summarize the findings by dependent variable – awareness, judgment, intent, and behavior. We compare this review with past reviews in order to draw conclusions regarding trends in the ethical decision-making literature and to surface directions for future research.