Mission Possible: Do School Mission Statements Work?

Does ethical content in organizational mission statements make a difference? Research regarding the effectiveness and results of mission statements is mixed. Krohe (1995, Across the board, 32, 17–21) concluded that much of the good results do not come from the mission statements themselves but from the strategic re-education that happens in producing one. We attempted to discover whether universities that explicitly state their ethical orientation and vision in their mission statements had students with higher perceived character trait importance and activities that reinforce character than universities that did not. While the faculty and administration may receive benefits from mission statement development through strategic re-education as Krohe suggested, do the statements influence the students at the university who may have had no role in its creation? Using a sample of senior business students at 16 universities we found that students at universities with ethical statements in their mission statements had significantly higher perceived character trait importance and character reinforcement than those at universities whose missions lacked ethical statements. This research suggests that schools that explicitly stated ethical content in their?mission statements do influence student ethical orientation.     

Sounds novel or familiar? Entrepreneurs' framing strategy in the venture capital market

This study offers a theoretical perspective from which to examine entrepreneurial ventures' linguistic strategies. Drawing on the framing perspective, we introduce two concepts—novelty frames and familiarity frames—and examine how the use of these linguistic frames may influence entrepreneurial ventures' ability to obtain funding from venture capitalists (VCs) in different industry contexts. Based on a sample of 2883 U.S. information technology (IT) ventures and 5849 investment events from 2003 to 2014, we show that novelty and familiarity frames individually and interactively shape the amount of funding. We also found that industry capital intensity enhances the positive effects of familiarity frames. These findings highlight the role of entrepreneurial ventures' linguistic frames in shaping their funding opportunities.     

Do Firms Practice What They Preach? The Relationship Between Mission Statements and Stakeholder Management

The accuracy of corporate mission statements has not been well explored. In this study, the authors investigate the relationship between mission statement content and stakeholder management actions. Findings indicate that although social issues such as the environment and diversity are less frequently included, their mention in mission statements is significantly associated with behaviors regarding these issues. The study found no relationship between firms with mission statements that mention specific stakeholder groups (employees, customers, and community) and behaviors regarding these stakeholders. This suggests that the inclusion of specific stakeholder groups in missions is likely the result of institutional pressures, while specifying social issues in missions is related to policy decisions. Barbara R. Bartkus is Associate Professor at Old Dominion University. She received her Ph.D. from Texas A&M University. Her research interests includes strategic goals, governance and corporate philanthropy. Myron Glassman is Professor of Marketing at Old Dominion University. He received his Ph.D. from the University of Illinois. His research focuses on integrating marketing and management concepts.     

The Ethical Aftermath of a Values Revolution: Theoretical Bases of Change, Recalibration, and Principalization

Profound and wide-ranging values shifts among industrialized nations, first noted following World War II and measured on an ongoing basis since, have affected individual decision making in political, social, and institutional settings across the globe. Consequently, the adoption of this set of expansive values is having pronounced and measurable effects on organizational missions, standards, and activities. This change is particularly notable in terms of accountability practices, moral responsibility, and the distinction between ethical and unethical decision making. This article documents this change, the need for a recalibration of ethical standards, and the principalization of a new organizational values order. Future research on the implications of adopting expansive values in organizations is delineated.     

Determinants of store patronage: The roles of political ideology,consumer and market characteristics

In this study, we investigate the roles of political ideology, demographic characteristics and market environment in determining households' store patronage behavior. We measure two key dimensions of store patronage—store format preference and store loyalty trait—of 23,092 U.S. households using purchase data from Nielsen Homescan panel. We use county-level vote share of the Republican and Democratic parties across three U.S. Presidential elections to measure political ideology. We obtain measures of demographic characteristics and market environment from the Nielsen panel and the U.S. Census Bureau. Using fixed-effect regression models, we find systematic association between political ideology and households’ store patronage. Our findings contribute to the growing literature in marketing on the effects of political ideology on consumer behavior and have important implications for store loyalty programs, cross-selling strategies and store location decisions.     

The regulation of virtue: Cross-currents in professional ethics

This paper argues that more attention should be paid to the civic functions of ethical discourse about the professions and to the moral virtues inherent in their practice and traditions. The ability of professional ethics to articulate civic ideals and virtues is discussed in relation to three issues. First, should professional ethics aim to enlighten ethical understanding or to motivate ethical conduct? Second, how should professional ethics define the professional's moral responsibilities in the face of ethical dilemmas — should the professional attempt to resolve the dilemma ethically or to change the social conditions that create the dilemma in the first place? The third issue discussed in the paper is whether professional ethics should be based on the model of regulation and rational self-interest or on the model of virtue and a fundamental personal commitment to the ideal of a certain form of life? In order for work in professional ethics to attain intellectual credibility among a non-philosophical audience, it must develop a coherent and convincing position on each of these issues.     

The effect of international venturing on firm performance: The moderating influence of absorptive capacity

Companies have vigorously pursued opportunities for profitability and growth through international venturing. Yet, research evidence on the performance benefits of international venturing activities has been contradictory. Applying an organizational learning framework, we propose that the expected effects of international venturing activities on financial performance depend on companies' absorptive capacity. Data from 217 global manufacturing companies show that absorptive capacity moderates the relationship between international venturing and firms' profitability and revenue growth. These results urge executives to build internal R&D and innovative capabilities in order to successfully exploit the new knowledge acquired from foreign markets.     

Normative contexts and moral decision

This paper attempts to explain the significance of the ‘ideologies’ — or ‘middle-level’ normative discourse — described by Kenneth Goodpaster in his paper ‘Business Ethics, Ideology, and the Naturalistic Fallacy’. It is argued that the propositions constitutive of this discourse are not invokable moral principles (i.e. principles which generate solutions to actual moral problems). Rather, they are characterizations of the normative contexts in which moral decisions are made. As such, they place limits on the ways in which the abstract moral principles of traditional moral theory may be applied or interpreted in making real-life moral decisions.     

When do domestic alliances help ventures abroad? Direct and moderating effects from a learning perspective

While the importance of strategic alliances for new venture internationalization is well acknowledged, the effect of domestic partners remains less understood. Building on organizational learning theory's vicarious learning arguments, we suggest that internationally experienced domestic partners positively influence new ventures' international intensity. Moreover, acknowledging that ventures may have multiple learning sources, we argue that the effect is more pronounced when substituting for the lack of new ventures' top management teams' international experience, or when complementing the insights about foreign markets received from foreign alliance partners. The analysis of 194 publicly held new ventures largely supports our hypotheses.     

Exploring the multi-level processes of legitimacy in transnational social enterprises

Transnational entrepreneurship has emerged as a form of migrants' participation in the social, economic, and political lives of both their countries of origin and of residence. Leveraging increasing evidence about migrants' involvment in transnational social enterprises, we examine the multi-level processes through which organizational legitimacy is molded by transnational entrepreneurs to reflect country-level institutional settings, and how organizational-level legitimacy affects entrepreneurs' social status. We longitudinally examine the multi-level processes of legitimation in a transnational social enterprise operated by Ghanaian migrants across Italy and Ghana. We analyze secondary and ethnographic data for two years, observing how transnational social enterprises harvest moral and pragmatic legitimacy from the institutional contexts in which they operate. We study how entrepreneurs construe their social status through pragmatic legitimacy obtained from their transnational ventures, and their institutional environments inspired by micro- and meso legitimacy reconfigurations. We discuss theoretical implications for social and transnational entrepreneurship and practical contributions for policy-making.     

Assessing mission drift at venture capital impact investors

In this article, we consider a recent trend whereby private equity available from venture capital (VC) firms is being deployed toward mission‐driven initiatives in the form of impact investing. Acting as hybrid organizations, these impact investors aim to achieve financial results while also targeting companies and funds to achieve social impact. However, potential mission drift in these VCs, which we define as a decoupling between the investments made (means) and intended aims (ends), might become detrimental to the simultaneous financial and social goals of such firms. Based on a content analysis of mission statements, we assess mission drift and the hybridization level of VC impact investors by examining their missions (ends/goals) and their investment practices (means) through the criteria of social and financial logic. After examining eight impact‐oriented VC investors and their investments in 164 companies, we find mission drift manifest as a disparity between the means and ends in half of the VC impact investors in our sample. We discuss these findings and make suggestions for further studies.     

Advancing Integrative Social Contracts Theory: A Habermasian Perspective

We critically assess integrative social contracts theory (ISCT) and show that the concept particularly lacks of moral justification of substantive hypernorms. By drawing on Habermasian philosophy, in particular discourse ethics and its recent application in the theory of deliberative democracy, we further advance ISCT and show that social contracting in business ethics requires a well-justified procedural rather than a substantive focus for managing stakeholder relations. We also replace the monological concept of hypothetical thought experiments in ISCT by a concept of practical discourse to better govern business activities on the macro-level of organizational actors such as firms, governments, and NGOs.     

A Code of Ethics for Social Marketing? Bridging Procedural Ethics and Ethics-in-Practice

We consider the role of codes of ethics in social marketing, distinguishing between “procedural ethics” and “ethics-in-practice” (after Guillemin & Gillam, 2004). We review foundations for “procedural ethics”—formal systems for ethical oversight—including moral and political philosophy, existing codes of ethics, and previous proposals for codes of ethics for social marketing. We then discuss “ethics-in-practice,” the ethical dimensions of the small moments that comprise everyday life. We connect this idea to Aristotle’s concept of phronesis, the practical wisdom to respond in just the right way to particular situations. Supporting the ethical practice of social marketing will require both procedural ethics and ethics-in-practice, iteratively related to one another. We conclude with three tasks for the profession: (1) develop and apply norms, standards, and sanctions; (2) develop formal, procedural ethics, in a just way (e.g., codes of ethics); and (3) support social marketers to develop ethics-in-practice, or phronesis.     

Corporate Social Performance, Stakeholder Orientation, and Organizational Moral Development

This article begins with an explanation of how moral development for organizations has parallels to Kohlberg's categorization of the levels of individual moral development. Then the levels of organizational moral development are integrated into the literature on corporate social performance by relating them to different stakeholder orientations. Finally, the authors propose a model of organizational moral development that emphasizes the role of top management in creating organizational processes that shape the organizational and institutional components of corporate social performance. This article represents one approach to linking the distinct streams of business ethics and business-and-society research into a more complete understanding of how managers and firms address complex ethical and social issues.     

An investigation of hindsight bias in nascent venture activity

We posit that individuals who are actively engaged in activities to develop their own venture will exhibit hindsight bias when recalling their startup experiences. We observe that those who fail to develop their startup activity into an operating business demonstrate substantial hindsight bias concerning the probability of venture formation. In particular, the recalled probability of success, reported after their decision to quit, is lower than the probability of success solicited during the nascent process. We argue that the systematic distortion of the past has important implications for individuals involved in the venturing process. Specifically, we suggest that these individuals are at risk of overestimating their chances of success when starting future nascent activity if they do not correct for their optimistic tendencies. The evidence from this study suggests it is important to recognize that what nascent entrepreneurs believe they experienced, and what they actually experienced, may not be equivalent.     

Multilateral R&D alliances by new ventures

We examine the antecedents and outcomes of new ventures' formation of multilateral R&D alliances. Our results show an inverted U-shaped relationship between market uncertainty and a new venture's likelihood of forming multilateral R&D alliances. Top management team's social capital and ventures' technological capabilities are critical for new ventures to identify and capture alliance opportunities. Moreover, our analysis reveals value creation effects of multilateral R&D alliances for new ventures despite the challenges and difficulties associated. We further show that the value creation effect is a function of the type of exchange relationship (i.e., net- vs. chain-based) in the multilateral R&D alliance and that governance structure moderates this relationship.     

Environment,corporate entrepreneurship,and financial performance: A taxonomic approach

This study examined the association between a firm's external environment, corporate entrepreneurship, and financial performance. The study emphasized three propositions: (1) perceived—rather than objective-characteristics of the environment significantly influenced entrepreneurship activities; (2) a multidimensional definition of a firm's environment was essential to unravel the interplay between the environment, orporate entrepreneurship activities, and financial performance; and (3) a taxonomic approach had the advantage of accounting for the interrelationships among the dimensions of the environment in classifying firms.Using data from 102 companies in six4-digit industrial classification codes (SIC),cluster analysis was used to distinguish four environmental settings: “dynamic growth,” “hostile and rivalrous but technologically rich,” “hospitable, product-driven growth,” and “static and impoverished” environments. These four environments varied in their characteristics.The four empirically derived environment clusters were then used to examine variations in corporate entrepreneurship—operationalized as corporate innovation and venturing, and corporate renewal activities. The first dimension—corporate innovation and venturing—had four components: new business creation, new product introduction, percent of revenue from new products, and technological entrepreneurship. The renewal dimension had three components: mission reformulation, reorganization, and system-wide change. The data were used to test six hypotheses:

• 1.H1: In dynamic or growth environments, companies will emphasize new business creation and innovation.
• 2.H2: Environmental hostility is positively associated with the redefinition of business through venturing activities.
• 3.H3: Hospitable business environments are positively associated with business venturing and renewal activities.
• 4.H4: Static environments are inversely associated with corporate venturing and renewal activities.
• 5.H5: Corporate entrepreneurship activities are positively associated with company financial performance.
• 6.H6: Corporate entrepreneurship activities emphasised in HI through H4 will be significantly and positively associated with company financial performance in their respective environmental clusters.

The results provided general support for the six hypotheses. They showed that: (1) each environmental cluster had a distinct combination of activities relating to corporate innovation and venturing, and renewal; (2) corporate entrepreneurship activities varied in their associations with measures of company growth and profitability; and (3) the associations between corporate entrepreneurship and company financial performance varied among the four environment clusters. The results from this study can help executives in selecting specific entrepreneurial activities that match the demands of success in their business environment to improve their company's performance.     

Ethics and Budget Allocation Decisions of Municipal Budget Officers

The purpose of this study is to extend research which has looked at moral judgment. Specifically, the study examines the impact of moral judgment on the budget allocations made by government budget officers. Additionally, and as a result of previous research findings, the study looks at the relationship between political ideology, gender, age, profession and moral judgment.Results support prior research which has found an association between political ideology and moral judgment, and between gender and moral judgment.There was no indication that the level of moral judgment among accountants is different from that of other individuals serving as budget officers, or that age is significantly related to moral judgment. Additionally, the study finds that an individual's level of moral judgment has less of an impact on the individual's actions than does political ideology. Study results contribute to an understanding of the relationship of moral judgment to accounting, and the relationship of moral judgment to behavior. The study also adds to research into the relationship of political ideology and moral judgment.     

Using Video to Build an Organization's Identity and Brand: A Content Analysis of Nonprofit Organizations' YouTube Videos

Organizational scholarship has increasingly focused its attention to how nonprofit, for-profit, and government agencies develop their unique organizational identity through their strategic communication efforts. As social media continues to become more prominent in communication campaigns due to the high levels of public usage and public involvement with organizations on social media sites, it is important to examine these social media messages as they relate to organizational identity. YouTube videos increasingly are being used by organizations to educate and inform just as much as they are to entertain. Through a content analysis of the most viewed videos on the top 100 official nonprofit YouTube channels, this study found that nonprofit organizations primarily use their YouTube videos to inform and educate viewers about their missions, programs, and services. While the videos also occasionally discuss the organizations' advocacy, volunteering, and fundraising efforts, nonprofit organizations were not living up to their potential in terms of engagement through direct appeals for involvement. Additionally, the organizations were more likely to use outsiders' words and stories to build the videos' narratives rather than using internal stakeholders. The benchmark numbers provided by this study reiterate key rules that are stressed in practitioner-oriented work on video production for branding and identity-building efforts.     

Business Ethics: A Study of the Moral Reasoning of Selected Business Managers and the Influence of Organizational Ethical Climate

Since manager's decisions impact organizational goals and organizational ethical behavior, this researcher investigated the degree to which there are differences in the moral reasoning ability of business managers of selected industries and whether there are significant differences between top, middle, and first-line management levels. To determine the relationship between managers' locus of control and their moral reasoning ability, this study considered three independent variables: reported organizational ethical climate, locus of control, and selected demographic and institutional variables. For a foundation, this researcher relied on Kohlberg's theory of moral development, Victor and Cullen's ethical work climate theory, and Rotter's theory of internal—external locus of control (which evolved from Carl Jung). The short form of Rest's DIT instrument measured the moral reasoning abilities of the participants. The selected demographic and institutional variables (age, work tenure, education, gender, management level and industry category) provided the useful information to investigate these relationships of moral reasoning ability of individual managers. A survey questionnaire was sent to 400 managerial and executive level employees at a random sample of Fortune 500 firms throughout the United States: Dun and Bradstreet provided the researcher with a proportional stratified random sample of these 400 managerial and executive level employees at a variety of organizations. Interestingly, women in this study exhibited slightly higher (more external) mean I—E scores and (more principled) higher mean “P” score than men. While both of these results were anticipated, neither was significant. However, one major finding of this study was the statistically significant relationship between age and perceived organizational ethical climate types (Caring, Law and Code, Rule, Instrument, and Independence). Another major finding revealed a statistically significant relationship between management levels and organizational ethical climate.