How Leadership and Commitment Influence Bank Employees’ Adoption of their Bank’s Values

Retail banking is facing many challenges, not least the loss of its customers’ trust and loyalty. The economic crisis is forcing banks to examine their relationships with stakeholders and to offer greater reassurance that their brand promises will be delivered. More than ever, banks need to stand for something positive and valued by stakeholders. One way to achieve this is through paying more attention to brand values. Our article explores how values are adopted by employees within a bank. When employees ‘live’ their brand’s values, their behaviour during customer interactions reflects this, encouraging the strengthening of customer relationships. Specifically, we test the relationship between leadership style, employee commitment, and the adoption of values. Data was collected from a survey of 438 branch employees in a leading Irish retail bank. The study found that a structured and directive leadership style was effective at encouraging the adoption of the bank’s values. Moreover, when employees are committed to the organisation, this has a significant impact on their adoption of values. Thus, this study supports the literature which suggests that leadership and commitment are prerequisites for values adoption.     

The Influence of Retail Management’s Use of Social Power on Corporate Ethical Values,Employee Commitment,and Performance

Recent cases in retailing reflect that ethics have a major impact on brands and performance, in turn, demonstrating that brand owners, employees, and consumers focus on ethical values. In this study, we analyze how various sources of social power affect corporate ethical values, retailer’s commitment to the retail organization, and ultimately sales and service quality. Multi-source data based on a sample of 225 retailers indicated a strong link between power, ethics, and commitment and that these affected output performance.     

The Influence of Retail Management’s Use of Social Power on Corporate Ethical Values,Employee Commitment,and Performance

Recent cases in retailing reflect that ethics have a major impact on brands and performance, in turn, demonstrating that brand owners, employees, and consumers focus on ethical values. In this study, we analyze how various sources of social power affect corporate ethical values, retailer’s commitment to the retail organization, and ultimately sales and service quality. Multi-source data based on a sample of 225 retailers indicated a strong link between power, ethics, and commitment and that these affected output performance.     

The Role of CEO’s Personal Incentives in Driving Corporate Social Responsibility

In this study, we explore the role of Chief Executive Officers’ (CEOs’) incentives, split between monetary (based on both bonus compensation and changes in the value of the CEO’s portfolio of stocks and options) and non-monetary (career concerns, incoming/departing CEOs, and power and entrenchment), in relation to corporate social responsibility (CSR). We base our analysis on a sample of 597 US firms over the period 2005–2009. We find that both monetary and non-monetary incentives have an effect on CSR decisions. Specifically, monetary incentives designed to align the CEO’s and shareholders’ interests have a negative effect on CSR and non-monetary incentives have a positive effect on CSR. The study has important implications for the design of executive remuneration (compensation) plans, as we show that there are many levers that can affect the CEO’s decisions with regard to CSR. Our evidence also confirms the prominent role of the CEO in relation to CSR decisions, while also recognizing the complexity of factors affecting CSR. Finally, we propose a research design that takes into account endogeneity issues arising when examining compensation variables.     

Influence of Language of Packaging Labels on Consumers’ Buying Preferences

Can packaging labels of three different foreign languages (Korean, Japanese, and English) affect consumers’ preferences? In a month of field experiment involving 203 Chinese undergraduate students, this study used coffee as an experimental product and created a fictitious brand “7 AM COFFEE.” Using analysis of variance (ANOVA) as a statistical tool, the results of the experiment show that the English language represents the strongest effect for (1) consumers’ attention, (2) trust, (3) perceived quality, (4) taste perception, and (5) purchase intention. Moreover, consumers with high or low frequencies of drinking a coffee do not have a specific preference in relations to their attitude. The findings and discussion of this research provide better direction for marketing managers of beverages in establishing market strategies to promote products and generating appeal among coffee drinker.     

The Influence of an Observer’s Value Orientation and Personality Type on Attitudes Toward Whistleblowing

This study examines the influence of an observer’s value orientation and personality type on attitudes toward whistleblowing. Based on a review of the literature we generated three hypotheses to explain the relationship between these two factors and attitudes toward whistleblowing, and these were tested using data collected from 490 university students in South Korea. The survey comprises two parts, a measure of MBTI personality types, and a section assessing value orientations and attitudes toward whistleblowing. Regression analysis was conducted to clarify the influence of the independent variables. The study offers two main contributions. First, it examines what role an observer’s value orientation and personality type play in determining the attitudes. Second, it provides insights into designing customized ethical training programs and developing policy aimed at changing negative attitudes toward whistleblowing.     

Rethinking the Employees’ Perceptions of Corporate Citizenship Dimensionalization

The article suggests that the four-factor model of corporate citizenship (CC: economic, legal, ethical, and discretionary responsibilities) does not fairly represent all pertinent dimensions of employees’ CC perceptions. Based on an empirical study with a sample of 316 employees, we show that, at least in some contexts, individuals distinguish seven CC dimensions: (1) economic responsibilities toward customers; (2) economic responsibilities toward owners; (3) legal responsibilities; (4) ethical responsibilities; (5) discretionary responsibilities toward employees; (6) discretionary responsibilities toward the community; and (7) discretionary responsibilities toward the natural environment. We do not suggest that this seven-factor model represents all of the (more) relevant CC dimensions in the employees’ minds. We aim to share evidence showing that the four-factor model proposed by Maignan et al. (Journal of the Academy of Marketing Science 27(4):455–469, 1999) may be refined, at least when the employees are the stakeholders in question.     

The Influence of Business School’s Ethical Climate on Students’ Unethical Behavior

Business schools play an instrumental role in laying the foundations for ethical behavior and socially responsible actions in the business community. Drawing on social learning and identity theories and using data collected from undergraduate business students (n = 318), we found that ethical climate was a significant predictor of unethical behavior, such that students with positive perceptions about their business school’s ethical climate were more likely to refrain from unethical behaviors. Moreover, we found that high moral and institutional identities strengthened the effect of ethical climate on unethical behavior. In addition to novel theoretical contributions to the business ethics and socio-psychology literature, this study offers practical pathways through which business schools can nurture and instill the values and behaviors that ultimately help shape positive organizational ethics. Directions for future research are provided.     

Do Consumers Expect Companies to be Socially Responsible? The Impact of Corporate Social Responsibility on Buying Behavior

Companies are facing increasing pressure to both maintain profitability and behave in socially responsible ways, yet researchers have provided little information on how corporate social responsibility impacts profitability. This paper reports the findings from in‐depth interviews of consumers to determine their views concerning the social responsibilities of companies. A typology of consumers whose purchasing behavior ranges from unresponsive to highly responsive to corporate social responsibility was developed from the analysis.     

To Thine Own Self Be True? Employees’ Judgments of the Authenticity of Their Organization’s Corporate Social Responsibility Program

Despite recognizing the importance of developing authentic corporate social responsibility (CSR) programs, noticeably absent from the literature is consideration for how employees distinguish between authentic and inauthentic CSR programs. This is somewhat surprising given that employees are essentially the face of their organization and are largely expected to act as ambassadors for the organization’s CSR program (Collier and Esteban in Bus Ethics 16:19–33, 2007). The current research, by conducting depth interviews with employees, builds a better understanding of how employees differentiate between authentic and inauthentic CSR programs, and how these judgments influence their perceptions of the organization. We find that employees rely on two different referent standards to form authenticity judgments—the extent to which the image put forth in the CSR program aligns with the organization’s true identity and the extent to which the CSR program itself is developmental. To assess the former, employees draw on cues about resource commitment, alignment between elements of the organization’s CSR program, emotional engagement, justice, and embeddedness. The latter assessments are based on the extent to which the organization adopts a leadership role with regards to its CSR initiatives. We also find that perceived authenticity can lead to positive outcomes such as organizational identification and employee connections. This study contributes to the broad literatures on both CSR and authenticity, as well as more specifically adding to the conversation on authenticity as a potentially valuable lens for enriching business ethics theorizing.     

The Worth of Values – A Literature Review on the Relation Between Corporate Social and Financial Performance

One of the older questions in the debate about Corporate Social Responsibility (CSR) is whether it is worthwhile for organizations to pay attention to societal demands. This debate was emotionally, normatively, and ideologically loaded. Up to the present, this question has been an important trigger for empirical research in CSR. However, the answer to the question has apparently not been found yet, at least that is what many researchers state. This apparent ambivalence in CSR consequences invites a literature study that can clarify the debate and allow for the drawing of conclusions. The results of the literature study performed here reveal that there is indeed clear empirical evidence for a positive correlation between corporate social and financial performance. Voices that state the opposite refer to out-dated material. Since the beginnings of the CSR debate, societies have changed. We can therefore clearly state that, for the present Western society, “Good Ethics is Good Business.”     

The Mediated Influence of a Traceability Label on Consumer’s Willingness to Buy the Labelled Product

Although stakeholder theory is concerned with stakeholder engagement, substantive operational barometers of engagement are lacking in the literature. This theoretical paper attempts to strengthen the accountability aspect of normative stakeholder theory with a more robust notion of stakeholder engagement derived from the concept of good faith. Specifically, it draws from the labor relations field to argue that altered power dynamics are essential underpinnings of a viable stakeholder engagement mechanism. After describing the tenets of substantive engagement, the paper draws from the labor relations and commercial law literatures to describe the characteristics of good faith as dialogue, negotiation, transparency, and totality of conduct; explains how they can be adapted and applied to the stakeholder context; and suggests the use of mediation and non-binding arbitration. The paper concludes by addressing anticipated objections and shortcomings and discussing implications for theory and research.     

The Evolution of Business Groups’ Corporate Social Responsibility

Although establishing gender equality in board and managerial positions has recently become more important for organizations, companies with low levels of gender diversity seem to perceive an ethical dilemma regarding the ways, in which they attempt to attain it. One way that organizations try to move toward gender equality is through the use of their corporate websites to manage potential applicants’ impressions of their current levels of, and actions to improve, gender diversity. The dilemma is whether to truthfully communicate their low level of gender diversity, conceal it, or exaggerate it. On the one hand, organizations that are truthful may find it difficult to achieve equality because women are less attracted to companies that lack diversity. On the other hand, organizations that are untruthful risk their moral legitimacy. The present work investigates gender diversity-related communication on the corporate websites of 99 major German companies. Based on theoretical work on minority attraction, we apply an organizational impression management taxonomy to guide our in-depth content analysis. With this approach, we hope to advance the understanding of how the issue of gender diversity is presented on corporate websites, which is useful for both organizational decision makers as well as diversity researchers. We found that although gender diversity-related communications on corporate websites contain both assertive and defensive organizational impression management tactics, as well as a third type of tactic we refer to as “acknowledgement,” assertive tactics were used more frequently. We argue the existence of a paradox whereby organizations use assertive impression management tactics to maintain pragmatic legitimacy but compromise their moral legitimacy by doing so. Furthermore, we argue that moral legitimacy can be maintained or restored through the sincere use of defensive impression management tactics and acknowledgement.     

Determinants of Online Shopping Influencing Thai Consumer’s Buying Choices

With the ease and availability of high-speed Internet service, online shopping is increasing rapidly. Consumers are moving to more intensive use of the Internet as the technology becomes more accessible, the availability of information increases, and the ability to interact through the Internet evolves. The success of online businesses relies heavily upon its ability to attract customers to complete purchase transactions on their websites. Even though the number of people who use the Internet every day and visit various shopping sites increases daily, it is interesting to note that quite a few of them still hesitate to purchase online. This study intends to examine what factors play a crucial role in encouraging or discouraging consumers in Thailand from shopping online. The findings from this study should help online businesses better understand the mindset of Thai consumers and find ways to improve websites in order to attract more customers.     

Effect of Consumption Values on Women’s Choice Behavior Toward Organic Foods: The Case of Organic Yogurt in Iran

The purpose of this study is to examine the effects of consumption values (i.e., functional value, social value, emotional value, conditional value, epistemic value, environmental value, and health value) on women’s choice behavior toward organic yogurt. Structural equation modeling is used to assess data collected by a questionnaire survey. The results indicate that functional value–quality, functional value–taste, and functional value–price; conditional value; epistemic value; and health value have positive effects on choosing organic yogurt by women, and social value, emotional value, and environmental value have no effects on the subject. Among variables, epistemic value and health value have the highest impact on consumer choice behavior toward organic yogurt. So this study concludes that the main influence factors on choice behavior regarding organic yogurt are epistemic value and health value. In fact, consumers have high knowledge about organic yogurt benefits related to their health.     

Effect of Consumers’ Attitude on Buying Organic Products in Iran

In this study, the effect of consumers’ attitude toward buying organic products in local markets is investigated. The purpose of this study is to help contribute to the economic development of rural areas in Iran, specially the north. Ten demographic factors, including better taste, price, availability of supply markets, high quality, good health, proper behavior of sellers, adaptation to environment, advertising effect, and keeping up with the Joneses, were considered as effective attitudinal factors in buying of products. Data were collected through questionnaires, based on a sample of 405 specimens during 5 months. Dumb variables regression was used to test the hypotheses. Results showed that except for two factors (gender and residence), other factors have a significantly positive effect on purchasing. Consumers’ satisfaction of price and ease of access to markets were interesting points of research; also proving the effect of keeping up with the Joneses on consumer purchasing is the most important finding of the research, studied for the first time on organic products.     

Antecedents of Corporate Scandals: CEOs’ Personal Traits, Stakeholders’ Cohesion, Managerial Fraud, and Imbalanced Corporate Strategy

This study examines the antecedents of corporate scandals. Corporate scandals are defined as rare events occurring at the apex of corporate fame when managerial fraud suddenly emerges in conjunction with a significant gap between perceived corporate success and actual economic conditions. Previous studies on managerial fraud have examined the antecedents of illegal acts in isolation from strategic decisions and in terms of CEOs’ individual responses to the external context. This study frames the antecedents of corporate scandals in terms of the interplay of CEOs’ personal traits with corporate strategy and stakeholders’ cohesion. With this aim, this study builds on extant theory to examine the case of Banca Popolare di Lodi, an Italian bank involved in a corporate scandal in year 2005. The model contributes to advance understanding of the complex dynamics underlying the emergence of corporate scandals.     

The Conflict of Ethos and Ethics: A Sociological Theory of Business People’s Ethical Values

This article develops a sociological theory of ambivalence to explain several puzzling and contradictory ethical attitudes of business people: (1) a simultaneous disposition to comparatively more self-interested and more charitable behavior than many other occupational groups and (2) a moderate level of receptiveness to inculcation of moral principles through social channels such as higher education. We test the theory by comparing the way that business students rate the ethical acceptability of various ethically challenging scenarios with the way that criminal justice students rate these same scenarios. We also explore the malleability of ethical views by measuring differences between the responses of sophomores and seniors. The data generally support hypotheses based on a theory of ambivalence. At the same time, however, we also report on findings that suggest alternative explanations to ambivalence.     

The Influence of Christian Identity on SME Owner–Managers’ Conceptualisations of Business Practice

This paper reports on the findings of a qualitative study to understand how active adherence to the Christian faith influences the way SME owner–managers conceptualise their business practices. The study was based on in-depth interviews with 21 Christian SME owner–managers in Germany and the UK. Using a socio-psychological approach, the data analysis yielded a range of linguistic and conceptual resources that are peculiar to Christian discourse and that have the potential to influence business activity in rather distinctive ways. This paper particularly focuses on those Christian concepts that could be regarded as distinct ‹frames’ for action. It outlines what effect these concepts had on the respondents and how they were related to business practices. The paper also discusses how this study could inform further research into the influence of other socio-cultural forms of identity on economic actors’ conceptualisations of their own practice.     

Advancing Ethics in Public Organizations: The Impact of an Ethics Program on Employees’ Perceptions and Behaviors in a Regional Council

Ethics in public administration has been a subject of growing interest for both researchers and practitioners interested in the future of governance. This study examined the relationship between ethics and performance in local governance. We tested the effects over time of an ethics program on employees’ perceptions (awareness of the code of ethics, ethical leadership, inclusion of employees in ethical decision making [EDM], ethical climate [EC], organizational commitment, and quality of work life [QWL]) and behavior (organizational citizenship behavior) in one Israeli regional council. We conducted a longitudinal study of 108 employees, using data from a two-phase survey (before implementation of the ethics program and a year after) and objective assessments of employees’ behavior through managers’ evaluations. The main findings show that the ethics program was very effective, resulting in greater awareness of the code of ethics, increased inclusion of employees in EDM, and an improved EC. Furthermore, ethical leadership was positively related to employees’ awareness of the code of ethics, increased inclusion of employees in EDM, an improvement in the EC, greater organizational commitment, and higher QWL. Implications and suggestions for future studies are discussed.