Transnational Governance of Workers’ Rights: Outlining a Research Agenda

In twentieth century Europe and the USA, industrial relations, labour, and workers’ rights issues have been handled through collective bargaining and industrial agreements between firms and unions, with varying degrees of government intervention from country to country. This industrial relations landscape is currently undergoing fundamental change with the emergence of transnational industrial relations systems that complement existing national industrial relations systems. Despite the significance of this ongoing change, existing research has only started to explore the implications of this change for how workers’ rights are governed around the globe. This paper addresses this gap by outlining an agenda for future research into the transnational governance of workers’ rights. Fulfilling such a research agenda would be both challenging, as it requires combining the so far divergent industrial relations and business ethics research streams, and rewarding, as it provides ample scope for promising future research.

The Effects of Management’s Preannouncement Strategies on Investors’ Judgments of the Trustworthiness of Management

This paper examines the role of management’s earnings preannouncements on judgments about its trustworthiness by nonprofessional investors. We predict that management’s preannouncement decision and the resulting direction (e.g., favorable vs. unfavorable) of the earnings surprise influence investors’ ethical judgments about management’s trustworthiness; these judgments, in turn, are associated with investors’ other investment related judgments. We test our predictions in an experiment in which MBA students make investment-related judgments under four different preannouncement strategies. Consistent with our predictions, the results of our study show that managers’ preannouncement decisions are significantly associated with investors’ evaluations of management’s trustworthiness. Specifically, holding the size of the earnings surprise constant, we find that judgments of management’s trustworthiness are damaged more following (a) a negative as opposed to a positive earnings surprise, and (b) the release of a preannouncement compared to when management does not issue a preannouncement. Also consistent with our predictions, we find that evaluations of management’s trustworthiness are significantly and positively associated with judgments of the attractiveness of the firm’s equity as an investment. Based on our findings, we encourage further research to explore whether managers understand the trust implications associated with their preannouncement decisions and the extent to which this understanding influences their disclosure decisions. Anna M. Cianci is an Assistant Professor in the Accounting Department at Drexel University. She received her Ph.D. from Duke University in Accounting. Her primary research interests are judgement and decision making issues in financial accounting and auditing. Steve Kaplan is a Professor of Accounting at Arizona State University, where he has been a member of the faculty since 1981. He received his Ph.D. from the University of Illinois. He␣has published widely in journals such as The Accounting Review, Journal of Accounting Research, Journal of Accounting and Public Policy, Business Ethics Quarterly and Journal of Business Ethics. He is the Previous editor of Behavioral Research in Accounting, a section journal of the American Accounting Association. His primary research interests are behavioral issues, judgment and decision making, and ethics     

Victim and Culprit? The Effects of Entitlement and Felt Accountability on Perceptions of Abusive Supervision and Perpetration of Workplace Bullying

Although workplace bullying is common and has universally harmful effects on employees’ outcomes, little is known about workplace bullies. To address this gap in knowledge, we draw from the tenets of social exchange and displaced aggression theories in order to develop and test a model of workplace bullying that incorporates the effects of employees’ individual differences (i.e., entitlement), perceptions of their work environments (i.e., felt accountability), and perceptions of supervisory treatment (i.e., perceptions of abusive supervision) on their tendencies to bully coworkers. The results of mediated moderation analyses that examine responses from two samples of working adults (n _{Sample 1} = 396; n _{Sample 2} = 123) support our hypotheses. Specifically, we find evidence of an indirect relationship between entitlement and coworker bullying through perceptions of abusive supervision that is stronger for employees who report lower levels of felt accountability than employees who report higher levels of felt accountability. This study makes important theoretical and practical contributions to abusive supervision research, bullying research, and organizational efforts to promote ethical work environments devoid of interpersonal mistreatment by providing novel insight into how employees’ entitlement and felt accountability combine to influence their tendencies to perceive themselves as victims of abusive supervision and culprits of coworker bullying.     

The Effect of Clients’ Auditing Experience and Concession-Timing Strategies on Auditor-Client Negotiations

The objective of this study was to examine the role of auditing experience, in auditor-client negotiations, in determining the value of the negotiated outcome. We also assessed whether it alters the effect of auditors’ concession timing-strategies on this outcome. Using an experimental method, we selected our respondents from two groups of financial officers (clients), those with and those without auditing experience. To determine the effect of the financial officers’ auditing experience and the concession-timing strategies adopted by their auditors, we measured the magnitude of the audit adjustment in an auditor-client negotiation. Our findings showed that auditing experience and concession-timing strategies affect the magnitude of the audit adjustments separately, but that auditing experience has no moderating effect on the relationship between concession timing and the final audit adjustment of the financial officers. A practical implication of this study is that it identified the ways in which auditor-client negotiations actually work. It is important that auditors obtain background information about their clients before they start a negotiation, as this information may affect its outcome.     

The Effects of CEO Trustworthiness on Directors’ Monitoring and Resource Provision

This research investigates the interplay between leadership styles and institutional corporate social responsibility (CSR) practices. A large-scale field survey of managers reveals that firms with greater transformational leadership are more likely to engage in institutional CSR practices, whereas transactional leadership is not associated with such practices. Furthermore, stakeholder-oriented marketing reinforces the positive link between transformational leadership and institutional CSR practices. Finally, transactional leadership enhances, whereas transformational leadership diminishes, the positive relationship between institutional CSR practices and organizational outcomes. This research highlights the differential roles that transformational and transactional leadership styles play for a firm’s institutional CSR practices and has significant implications for theory and practice.     

A Newcomer Socialization Perspective on the Proliferation of Unethical Conduct in Organizations: The Influences of Peer Coaching Practices and Newcomers’ Goal Orientations

Journal of Business Ethics - Drawing on conservation of resources theory, we contribute to the behavioral ethics literature by examining how and why organizational socialization processes can...     

Get in the Game: The Effects of Game-Product Congruity and Product Placement Proximity on Game Players’ Processing of Brands Embedded in Advergames

This study focused on the effects of game-product congruity and product placement proximity on advergame players’ brand memory, brand attitude, game enjoyment, and future intention to play. A 2 (congruity) × 2 (proximity) repeated-measures experiment was used. Results revealed that players’ implicit memory improved for congruent games only. Explicit memory measures also showed signs of improvement for brands in the congruent/central game condition. Surprisingly, it appears that the incongruent/peripheral game condition produced the best results overall with the smallest negative attitude change, the most game enjoyment, and the highest intention to play again in the future. These contradictory findings suggest to brand marketers who design advergames to be careful when combining multiple game featurescongruity and proximity) within a single advergame because this strategic move may provide optimal brand memory while also producing the opposite desired effect for attitude toward the brand, game enjoyment, and intention to play.     

The Effects of Institutional Distance and Headquarters’ Financial Performance on the Generation of Environmental Standards in Multinational Companies

This article combines institutional and resources’ arguments to show that the institutional distance between the home and the host country, and the headquarters’ financial performance have a relevant impact on the environmental standardization decision in multinational companies. Using a sample of 135 multinational companies in three different industries with headquarters and subsidiaries based in the USA, Canada, Mexico, France, and Spain, we find that a high environmental institutional distance between headquarters’ and subsidiaries’ countries deters the standardization of environmental practices. On the other hand, high-profit headquarters are willing to standardize their environmental practices, rather than taking advantage of countries with lax environmental protection to undertake more pollution-intensive activities. Finally, we show that headquarters’ financial performance also imposes a moderating effect on the relationship between environmental institutional distance between countries and environmental standardization within the multinational company.     

Forgiving the Unforgivable: The Possibility of the ‘Unconditional’ Forgiveness in the Workplace

Forgiveness has been a central issue for humankind since ancient times; it emerged in theology, but in recent decades it has received significant attention from different disciplines, such as philosophy and psychology. More recently, forgiveness has received attention also from organizational and managerial studies, particularly, in studying how individuals respond to interpersonal offenses, or perceived harm and wrongdoing in the workplace. Forgiveness is a complex concept, as it can be understood as a family of related constructs and can be analyzed at different levels. Even if social sciences have widely recognized that the nature of forgiveness can be both conditional and unconditional, the notions of conditionality and unconditionality have not yet received sufficient study, especially in organizational and managerial fields. In these fields, forgiveness has been predominantly studied under a psychological approach, looking for the conditions under which it may occur in the workplace. Unconditional forgiveness has received less attention: with a few exceptions, managerial and organizational literature has limited the conceptualization of forgiveness, weakening its scope and probably not catching a relevant part of forgiving experiences in the workplace. This article proposes to follow a more comprehensive approach to forgiveness in the workplace, according to the social sciences field, which can take into account both conditionality and unconditionality. It focuses on unconditional forgiveness according to Continental philosophy, in particular, to the thought of Jacque Derrida and Paul Ricoeur. Through their contributions, the unconditionality of forgiveness is deepened, and the implications of considering both conditional and unconditional forgiveness are discussed.

     

Corporate Responsibility for Economic,Social and Cultural Rights: Rights in Search of a Remedy?

It is no longer a revelation that companies have some responsibility to uphold human rights. However, delineating the boundaries of the relationship between business and human rights is more vexed. What is it that we are asking corporations to assume responsibility for and how far does that responsibility extend? This article focuses on the extent to which economic, social and cultural rights fall within a corporation’s sphere of responsibility. It then analyses how corporations may be held accountable for violations of such rights. Specifically, the article considers the use of soft law as a protective mechanism; it also details how victims of harmful corporate behaviour are using litigation (pursuant to ATCA and common law domestic causes of action) to seek redress and recognition of the harms they have directly or indirectly experienced. The article concludes with an analysis of Professor Ruggie’s (the United Nations Special Representative on the issue of transnational corporations and human rights) 2008 and 2009 Reports in which it is suggested that a respect-based framework must be interpreted as imposing proactive requirements on companies to prevent the infringement of human rights. Future efforts must also be directed towards the recognition of a specialised complementary corporate responsibility to protect human rights.     

The Influence of Organizations’ Tax Avoidance Practices on Consumers’ Behavior: The Role of Moral Reasoning Strategies,Political Ideology,and Brand Identification

Journal of Business Ethics - This study adopts moral reasoning strategies (moral rationalization and decoupling) to investigate why consumers support companies involved in ethical transgressions....     

The Taming of Machiavellians: Differentiated Transformational Leadership Effects on Machiavellians’ Organizational Commitment and Citizenship Behavior

Journal of Business Ethics - This study seeks effective ways for managing employees with a high Machiavellian personality in organizations by identifying how to enhance their pro-organizational...     

The Effects of Professional Managers’ Credit on Their Work Performance: Firm Owners’ Trust and Credit Identification Mechanisms

Finding successors for private enterprises has become an urgent problem in recent years, partially because those firms’ owners lack trust in professional managers. Previous research on agents focuses on preventing opportunistic behavior and neglects the value of their entrepreneurship. In our research, professional managers’ credit is divided into three dimensions: personal credit, professional credit and operational credit. Using a sample of 379 firm owners from 27 provinces in China, we find that credit and its detailed dimensions are positively related to private owners’ trust in professional managers. We also found that a rigorous and effective credit identification mechanism positively moderate the above relationships. Furthermore, trust affects professional managers’ work performance in a positive way. Accordingly, we advise that (1) professional managers’ credit assessment system should be established and improved; (2) professional managers and enterprise owners should attach importance to enhancing professionalism and promoting rigorous credit identification mechanisms; (3) the closed-loop of the credit-trust psychologically interactive mechanism based on credit mechanisms and credit identification mechanisms should be put to use.     

Short and sweet: Effects of pop-up stores’ ephemerality on store sales

Responding to increasing demand for ephemeral and experiential consumption, pop-up stores have developed into a preferred retail concept. By considering the juxtaposition of pop-ups’ non-sales focus and recent research finding experiential stores generating immediate store purchase, two experiments test how and when pop-ups’ distinguishing feature, ephemerality, affects purchases. We integrate commodity and regret theory to propose that store ephemerality boosts purchase of standard products for low-need-for-uniqueness (NFU) consumers as well as exclusive product purchases for high-NFU consumers. The implications for academic researchers and retail managers are discussed.     

The Effects of Contextual and Wrongdoing Attributes on Organizational Employees’ Whistleblowing Intentions Following Fraud

Recent financial fraud legislation such as the Dodd–Frank Act and the Sarbanes–Oxley Act (U.S. House of Representatives, Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, [H.R. 4173], 2010; U.S. House of Representatives, The Sarbanes–Oxley Act of 2002, Public Law 107-204 [H.R. 3763], 2002) relies heavily on whistleblowers for enforcement, and offers protection and incentives for whistleblowers. However, little is known about many aspects of the whistleblowing decision, especially the effects of contextual and wrongdoing attributes on organizational members’ willingness to report fraud. We extend the ethics literature by experimentally investigating how the nature of the wrongdoing and the awareness of those surrounding the whistleblower can influence whistleblowing. As predicted, we find that employees are less likely to report: (1) financial statement fraud than theft; (2) immaterial than material financial statement fraud; (3) when the wrongdoer is aware that the potential whistleblower has knowledge of the fraud; and (4) when others in addition to the wrongdoer are not aware of the fraud. Our findings extend whistleblowing research in several ways. For instance, prior research provides little evidence concerning the effects of fraud type, wrongdoer awareness, and others’ awareness on whistleblowing intentions. We also provide evidence that whistleblowing settings represent an exception to the well-accepted theory of diffusion of responsibility. Our participants are professionals who represent the likely pool of potential whistleblowers in organizations.     

The Impact of Students’ Cultural Intelligence on Their Psychological Safety in Global Virtual Project Teams

This study addresses a call for the design and implementation of course curricula that prepare students to develop their CQ and gain experience working with peers on global virtual project teams. We explored how US-based and Peru-based students’ cultural intelligence (CQ) impacted their sense of psychological safety (PS) during a month-long global, virtual team project. We also examined the students’ people-focused (PF) and task-focused (TF) behaviors as mediators of the CQ-PS relationship. The results of mediation analyses provide support for our hypothesis that the relationship between cultural intelligence and psychological safety will be mediated by people-focused behaviors. Finally, we provide a model and suggestions for virtually bringing together students from different countries to collaborate on a global virtual project, and avenues for future research. Here we encourage a focus on a curriculum that educates students about their cultural intelligence and ways to develop psychologically safe learning environments. We also highlight the potential learning for faculty teaching such courses, and note how our experience collaborating with our counterpart in Peru constituted a fractal of what our students were experiencing on their global projects.