Based on a consumer survey conducted in France, Germany, and the U.S., the study investigates consumers'' readiness to support socially responsible organizations and examines their evaluations of the economic, legal, ethical, and philanthropic responsibilities of the firm. French and German consumers appear more willing to actively support responsible businesses than their U.S. counterparts. While U.S. consumers value highly corporate eco-nomic responsibilities, French and German consumers are most concerned about businesses conforming with legal and ethical standards. These findings provide useful guidance (...) for the efficient management of social responsibility initiatives across borders and for further academic inquiries. (shrink)

This article provides empirical results indicating that acting in a socially respon- sible and lawful manner is a necessary, though not sufficient, condition for increasing shareholder wealth. It meta-analyzes 27 event studies that have mea- sured the stock market's reaction to incidences of socially irresponsible and illicit behavior. It finds that for firms engaging in socially irresponsible and illicit behavior, the effect on shareholder wealth is negative (wealth decreases), statisti- cally significant (p <.001), and so substantial in size (D = (...) -.932) that the distribution of abnormal returns is shifted nearly a full standard deviation to the left (i.e., negatively) from their expected standard normal distribution. This result gives rationally self-interested firms a self-interested reason to act in a socially responsible and law-abiding manner. It also provides support for a moral position called enlightened self-interest, which prescribes that firms should act in a socially responsible manner to promote the shareholders' interests. (shrink)

The ethical nature of transformational leadership has been hotly debated. This debate is demonstrated in the range of descriptors that have been used to label transformational leaders including narcissistic, manipulative, and self-centred, but also ethical, just and effective. Therefore, the purpose of the present research was to address this issue directly by assessing the statistical relationship between perceived leader integrity and transformational leadership using the Perceived Leader Integrity Scale (PLIS) and the Multi-Factor Leadership Questionnaire (MLQ). In a national sample of (...) 1354 managers a moderate to strong positive relationship was found between perceived integrity and the demonstration of transformational leadership behaviours. A similar relationship was found between perceived integrity and developmental exchange leadership. A systematic leniency bias was identified when respondents rated subordinates vis-à-vis peer ratings. In support of previous findings, perceived integrity was also found to correlate positively with leader and organisational effectiveness measures. (shrink)

The influence of stakeholders, organisational commitment, personal values, goals of the organisation and socio-demographic characteristics of individuals on the ethical dimension of behavioural intentions of employees in various organisations are investigated. The research results show that employees working for the public sector or in educational institutions take more ethical aspects into account than employees working in the "private" sector. The influence of stakeholders and organisational commitment do not significantly affect the ethical behaviour of employees, and only some personal values and (...) goals of the organisation have a significant influence on ethical behaviour. The most significant explanatory factor of ethical decision making seems to be what may be called "stage in the career of the employee": "ethical" employees can be described as young, with a relatively low income, limited work experience and a low level of responsibility in the company. (shrink)

This paper is a report of an empirical psychological study of the relationship between the ethical and financial beliefs and desires of ethical investors. Semi-structured interviews of 20 ethical investors have been carried out by the project 10 of which have been analysed using qualitative data analysis software. All of our participants faced the problem that, while they had ethical concerns, they were not prepared to sacrifice their essential financial requirements to address them. We found four common ways of dealing (...) with this problem: they divided up their money into core and surplus accounts; they decided that it was enough to only be a partial ethical investor; they avoided detailed consideration of the costs of ethical investment; and they avoided rigorous ethical thinking. One equilibrium position arising from these responses is a portfolio approach to ethics, which allows people to assuage their consciences by investing only a small proportion of their investments ethically, while leaving the rest in non-ethical investment vehicles. (shrink)

The longstanding interest in business ethics has been given renewed emphasis by high profile scandals in the world of business and finance. At the same time, many economists--dissatisfied with the discipline's emphasis on self-interest and individualism and by the asocial nature of much economic theory--have sought to englarge the scope of economics by looking at ethical questions. In Ethics and Economic Affairs a group of interdisciplinary scholars provide contributions on international interest in this aspect of socio-economics and economic-psychology. The book (...) is divided into four parts. The first looks at Business Ethics and Management. Part Two enlivens the debate with empirical data. The third part examines the implications for economic theory and asks if the integration of ethics in the economy is possible or if they are fundamentally different systems. Part Four introduces perspectives from other disciplines, sets economics within its wider context and looks to the future. The editors have brought together a group of contributors from nine different countries and a broad range of disciplines, including: Norman E. Bowie, Monroe Burk, Amitai Etzioni, Richard H. Guerette, Ralph E. Miner, Lynne M. Rosansky, N. Craig Smith, Roberts Stallaerts, Philip Stone and John Tomer. (shrink)