The term “corporate transparency” is frequently used in scholarly discussions of business ethics and corporate social responsibility (CSR); however, it remains a volatile and imprecise term, often defined incompletely as “information disclosure” accomplished through standardized reporting. Based on the results of empirical studies of organizational behaviors, this paper identifies a new set of managerial practices based on the use of information and communication technologies (ICT) and particularly Internet-based tools. These practices are resulting in what can be termed “dynamic transparency.” ICT (...) allows for an informational environment characterized by two-way exchange between corporations and their stakeholders, which fosters a more collaborative marketplace. It is proposed that such dynamic information sharing, conducted by means of ICT, drives organizations to display greater openness and accountability, and more transparent operations, which benefit both the corporations and their constituents. One of the most important outcomes that will accrue to consumers and other individuals is the “right to know,” especially about corporate strategies and activities that might directly affect their quality of life. This paper demonstrates that dynamic transparency is more desirable and more effective than the more common “static transparency” where firms’ information disclosure is one-way, usually in response to government regulation. We present three ethical arguments to justify the implementation by business firms of dynamic transparency and demonstrate that their doing so is related to CSR and to augment and complement stakeholder engagement and dialogue. The paper concludes with a summary of the possible limits to and the problems involved in the implementation of dynamic transparency for corporations, and suggests some strategies to counter them. (shrink)

This study examined whether undergraduate students’ perceptions regarding the acceptability of cheating were influenced by the amount of ethics instruction the students had received and/or by their personality. The results, from a sample of 230 upper-level undergraduate students, indicated that simply taking a business ethics course did not have a significant influence on students’ views regarding cheating. On the other hand, Machiavellianism was positively related to perceiving that two forms of cheating were acceptable. Moreover, in testing for moderating relationships, the (...) results indicated that the extent to which taking a business ethics course influenced attitudes varied substantially across individuals. Specifically, taking a course in business ethics did result in students who scored lower on Machiavellianism holding even more negative views regarding certain forms of cheating. In addition, individuals with higher grade point averages (GPAs) who had taken a course in business ethics were also less accepting of certain forms of cheating than individuals with similar GPAs who had not taken the business ethics course. The implications of these findings are discussed. (shrink)

Employment is critical for refugees’ positive integration into a receiving country. Enabling employment requires cross-sector collaborations, that is, employers collaborating with different stakeholders such as refugees, local employees, other employers, unofficial/official supporters, and authorities. A vital element of cross-sector collaborations is trust, yet the complexity of cross-sector collaborations may challenge the formation and maintenance of trust. Following a theory elaboration approach, this qualitative study with 37 employers and 27 support workers in Germany explores how employers’ experiences in cross-sector collaborations on (...) refugees’ labor market integration affect their trust in other stakeholders in this cross-sector space. Specifically, we explored employers’ perceptions of trust breaches, and how these perceptions affect their further engagement in cross-sector collaborations on refugee integration. Based on our findings, we propose a process model that describes how unmet collaboration expectations and negative assessments of collaborators’ attitudes and behaviors lead to perceived trust breaches which, in turn, lead to employers’ hesitancy to hire refugees and/or to engage in cross-sector collaborations. In doing so, we extend existing theory on trust within organizations to the cross-sector context of refugee integration, uncovering context-specific meanings to trustworthiness dimensions and illustrating how breaches of different trustworthiness dimensions can interact. Moreover, we show how social policies, resources, and trustors’ perceived vulnerability in collaborations shape their risk perceptions. This study highlights the central role of trust for refugee integration and illustrates how missing goals and process clarity endanger sustainable collaborations. (shrink)

The issue of trust has increasingly attracted attention in the business ethics literature. Our aim is to contribute further to this literature by examining how the use of the carbon copy function in email communication influences felt trust. We develop the argument that the use of cc enhances transparency—representing an important characteristic of workplace ethics—and hence promotes trust. We further argue that a downside of the cc option may be that it can also be experienced as a control mechanism, which (...) may therefore negatively affect trust. The results of our first study showed that the use of cc indeed enhances perceived transparency, but at the same time also leads to the experience of increased control. Building upon this insight, the findings of five subsequent studies consistently revealed that the use of cc negatively influences felt trust. More precisely, employees felt trusted the least when the supervisor was always included in cc. This effect on felt trust also negatively influenced how trustworthy the organizational climate was perceived. We further replicated these results in two field surveys, which showed that the negative effect of cc on felt trust lowered perceptions of psychological safety and contributed to a culture of fear. Taken together, our findings suggest that when transparency in email communications is experienced as a control mechanism, its use is perceived as unethical, rather than as ethical. Implications and recommendations for future business ethics research are discussed. (shrink)

This paper investigates the effect of enacted ethical and instrumental values on corporate governance effectiveness. It further considers whether and how compliance with formal corporate governance codes influences the effect of these organizational values on governance effectiveness. Empirical evidence based on a sample of firms listed in the Athens Stock Exchange shows that strong ethical values are the key element for effective corporate governance, while instrumental values play a significant role only in the presence of compliance. Compliance, although not sufficient (...) by itself, serves as a complementary mechanism strengthening the effects of ethical values and creating the conditions by which instrumental values can act in favor of corporate governance. The results highlight that governance benefits can emanate from maintaining high ethical standards as well as from synergies between compliance and a focus on organizational values. Overall, our findings provide important implications for managers regarding how to utilize behavioral along with structural governance mechanisms to enhance corporate governance. The findings add to the behavioral perspective of corporate governance bringing aspects of the social fabric into the corporate governance puzzle. (shrink)

Transparency is an increasingly prominent area of research that offers valuable insights for organizational studies. However, conceptualizations of transparency are rarely subject to critical scrutiny and thus their relevance remains unclear. In most accounts, transparency is associated with the sharing of information and the perceived quality of the information shared. This narrow focus on information and quality, however, overlooks the dynamics of organizational transparency. To provide a more structured conceptualization of organizational transparency, this article unpacks the assumptions that shape the (...) extant literature, with a focus on three dimensions: conceptualizations, conditions, and consequences. The contribution of the study is twofold: On a conceptual level, we provide a framework that articulates two paradigmatic positions underpinning discussions of transparency, verifiability approaches and performativity approaches; on an analytical level, we suggest a novel future research agenda for studying organizational transparency that pays attention to its dynamics, paradoxes, and performative characteristics. (shrink)

In this article, we develop the concept of Transparency by Design that serves as practical guidance in helping promote the beneficial functions of transparency while mitigating its challenges in automated-decision making environments. With the rise of artificial intelligence and the ability of AI systems to make automated and self-learned decisions, a call for transparency of how such systems reach decisions has echoed within academic and policy circles. The term transparency, however, relates to multiple concepts, fulfills many functions, and holds different (...) promises that struggle to be realized in concrete applications. Indeed, the complexity of transparency for ADM shows tension between transparency as a normative ideal and its translation to practical application. To address this tension, we first conduct a review of transparency, analyzing its challenges and limitations concerning automated decision-making practices. We then look at the lessons learned from the development of Privacy by Design, as a basis for developing the Transparency by Design principles. Finally, we propose a set of nine principles to cover relevant contextual, technical, informational, and stakeholder-sensitive considerations. Transparency by Design is a model that helps organizations design transparent AI systems, by integrating these principles in a step-by-step manner and as an ex-ante value, not as an afterthought. (shrink)

Transparency has achieved a mythical status in society. Myths are not false accounts or understandings, but deep-seated and definitive descriptions of the world that ontologically ground the ways in which we frame and see the world around us. We explore the mythical nature of transparency from this perspective, explain its social-historical underpinnings and discuss its influence on contemporary organizations. In doing so, we also theorize in a more general sense about the relationship between myth, as a foundational understanding and description (...) of the world, and the constellation of metaphors, as specific ways of framing and seeing organizational reality, to which it gives rise. While observations and evidence can always be adduced to challenge a particular set of metaphors, the endogenous force of the myth may sustain the overall project. This process is explained with a detailed analysis of the transparency myth. (shrink)