Take the money or run? Investors' ethical reputation and entrepreneurs' willingness to partner

Drawing on the multi-principal–agent perspective, this research models the influence of venture capitalists' reputation for ethical behavior on entrepreneurs' willingness to partner decisions. We test our model using a two-study design. Study one, a conjoint experiment, revealed that explicit knowledge of past unethical behavior negatively affects entrepreneurs' willingness to partner. Interaction effects revealed that factors previously shown to influence the entrepreneurs' evaluations—investor value-add and investment track record—become largely contingent upon and often subjugated by investors' ethical reputation. Study two, a traditional between-subjects scenario experiment, revealed that when entrepreneurs develop their own perceptions about the ethicality of an investor's prior behaviors, the ethical dimension remains highly influential. Further, we find that as the consequences of rejecting funding become more severe (e.g., possible bankruptcy), entrepreneurs become increasingly willing to partner with unethical investors. We also find that high fear of failure entrepreneurs are less willing to partner with unethical investors than their low fear of failure counterparts.     

Investigating the Impacts of Organizational Factors on Employees’ Unethical Behavior Within Organization in the Context of Chinese Firms

Unethical behavior is under-examined in the workplace. To date, few studies have attempted to explore the antecedents of an employee’s ethical decisions, particularly with respect to unethical behavior and its effects. To capture an employee’s psychological perception of unethical behavior in the workplace, this paper integrates organizational factors (codes of conduct, likelihood of detection, and performance pressure) into the Theory of Reasoned Action. By conducting an empirical study in a Chinese firm, we found that codes of conduct and performance pressure have a significant influence on an employee’s attitude toward and social beliefs about unethical behavior. We also demonstrated that employees’ unethical behaviors affect the firm performance of an entrepreneurial venture. The insights gleaned from the findings on this Chinese company have a number of important implications for both research and practice.     

Love of Money and Unethical Behavior Intention: Does an Authentic Supervisor’s Personal Integrity and Character (ASPIRE) Make a Difference?

We investigate the extent to which perceptions of the authenticity of supervisor’s personal integrity and character (ASPIRE) moderate the relationship between people’s love of money (LOM) and propensity to engage in unethical behavior (PUB) among 266 part-time employees who were also business students in a five-wave panel study. We found that a high level of ASPIRE perceptions was related to high love-of-money orientation, high self-esteem, but low unethical behavior intention (PUB). Unethical behavior intention (PUB) was significantly correlated with their high Machiavellianism, low self-esteem, and low intrinsic religiosity. Our counterintuitive results revealed that the main effect of LOM on PUB was not significant, but the main effect of ASPIRE on PUB was significant. Further, the significant interaction effect between LOM and ASPIRE on unethical behavior intention provided profoundly interesting findings: High LOM was related to high unethical behavior intention for people with low ASPIRE, but was related to low unethical intention for those with high ASPIRE. People with high LOM and low ASPIRE had the highest unethical behavior intention; whereas those with high LOM and high ASPIRE had the lowest. We discuss results in light of individual differences, ethical environment, and perceived demand characteristics.     

Dirty Hands Make Dirty Leaders?! The Effects of Touching Dirty Objects on Rewarding Unethical Subordinates as a Function of a Leader’s Self-Interest

We studied the role of social dynamics in moral decision-making and behavior by investigating how physical sensations of dirtiness versus cleanliness influence moral behavior in leader–subordinate relationships, and whether a leader’s self-interest functions as a boundary condition to this effect. A pilot study (N = 78) revealed that when participants imagined rewarding (vs. punishing) unethical behavior of a subordinate, they felt more dirty. Our main experiment (N = 96) showed that directly manipulating dirtiness by allowing leaders to touch a dirty object (fake poop) led to more positive evaluations of, and higher bonuses for, unethical subordinates than touching a clean object (hygienic hand wipe). This effect, however, only emerged when the subordinate’s unethical behavior did not serve the leader’s own interest. Hence, subtle cues such as bodily sensations can shape moral decision-making and behavior in leader–subordinate relationships, but self-interest, as a core characteristic of interdependence, can override the influence of such cues on the leader’s moral behavior.     

Should Business Ethics Be Different in Transitional Economies?

This paper builds on a debate between Velasquez and Fleming: Do multinational enterprises (MNEs) have ethical obligations to their host countries? Velasquez applies Thomas Hobbes' realism approach in arguing that MNEs have no special moral obligations to host countries: (a) obligations do not exist independently in a "state of nature," (b) MNEs exist in a "state of nature" independent of any sovereign authority or power, (c) therefore, MNEs cannot be compelled toward moral or ethical behavior. Fleming counters that the lack of an international authority to compel morality from MNEs is irrelevant. MNEs are for-profit entities making rational economic decisions based on their perceived self-interest. Since they operate in "the goldfish bowl of international media," MNEs are very aware of the stakeholder model. First, the paper supports Fleming's position: Even if a philosophical case cannot be established for MNEs to act ethically &;#x2013; they still should. Being unethical in any arena, but especially in the international arena, is both bad-for-business and bad business. Applying stakeholder theory, if stakeholders perceive the MNE as unethical (which may or may not be true), the firm will ultimately lose business. Next, the paper applies Fleming's position to transitional economies. As economies shift from one system to another, positive perceptions and stakeholder support are required for success. With so many environmental variables in flux, multinationals must promote a sense of normalcy, of regular ethical habits, of familiarity. Finally, the paper concludes by cautioning a sole reliance on stakeholder analysis &;#x2013; especially in turbulent times &;#x2013; and recommends areas for further research.     

同事非伦理行为对员工离职倾向的影响：一个有调节的中介模型

文章从伦理道德视角出发,通过研究之前学者所忽视的同事非伦理行为对员工离职倾向的影响,丰富了员工离职倾向的前因研究。基于社会比较理论,本文探究员工分配公平感在同事非伦理行为影响员工离职倾向过程中的中介作用,并考察员工自身非伦理行为对以上关系的调节作用。通过对271名企业员工开展两轮配对问卷调查,统计分析结果表明：（1）员工分配感在同事非伦理行为与员工离职倾向之间起完全中介作用;（2）员工非伦理行为显著调节了同事非伦理行为与员工分配公平感之间的关系;（3）员工非伦理行为显著调节了分配公平感在同事非伦理行为与员工离职倾向之间的中介作用。     

Managing Perplexity: Lessons from Inside the Romanian Business Culture

Despite the passage of several decades since the revolution of 1989, there is little professional literature designed to prepare foreign investors for the Romanian business culture. Visitors to this nation discover a friendly people who engage in business practices often characterized as perplexing, frustrating, and imbued with self-defeating actions. The communist period in Romania's history imbedded unethical behavior into the nation's culture, including the morally ambiguous practice of favor trading. This paper describes this central business activity and how it shapes business dealings and often undermines opportunities. The cultural context that created the favor trading environment is discussed, and methods for managing this perplexing practice are explained.     

Organizational Sensemaking of Non-ethical Consumer Behavior: Case Study of a French Mutual Insurance Company

Researchers and managers alike are becoming increasingly interested in the topic of unethical consumer behavior. Where most studies view unethical behavior as something that is identifiable per se, the authors of the present article believe that it only exists because it has been constructed by people operating within a specific context. Hence the efforts made by this paper to explore, at the level of one specific organization, how interactions between employees and consumers might lead to the construct of unethical consumers. Based on a case study of France’s AMDM—a mutual insurance company set up to serve a client base comprising motorcyclists—the paper addresses how one group of consumers ends up being categorized as unethical by revealing the existence of a sensemaking process within the target organization. This process develops in three main phases: the nurturing of a shared ethos; the protection of employees’ recognized status; and the demonization of any group of consumers threatening this status. Managers incorporating this sensemaking process can avoid or mitigate the negative effects befalling organizations when these kinds of unethical consumer behavior are constructed.     

Disciplining top‐performing unethical salespeople: Examining the moderating effects of ethical seriousness and consequences

Managers take many factors into account in deciding the level of discipline to administer to subordinates who have engaged in some form of undesirable work behavior. In general, performing other job tasks well, such as being a top sales producer, has been shown to be more likely to bring about an external attribution (attributing the cause of the undesirable behavior to some person or thing other than the performer) and, in turn, more lenient forms of discipline. However, other factors may be taken into account that might alter a manager's diagnosis of, and response to, undesirable employee behavior. This study examines the general tendency of sales managers to treat top sales performers more leniently than poor sales performers when these salespeople engage in unethical selling. Specifically, the study sought to determine if unethical acts of a more serious nature and unethical acts associated with more serious consequential outcomes would offset the general tendency to treat top sales performers more leniently. Findings revealed that top sales performers are still disciplined more leniently than poor sales performers despite engaging in more serious behaviors that produce more serious consequences. Implications for sales managers are presented. © 2006 Wiley Periodicals, Inc.     

Moral attentiveness as a boundary condition: Servant leadership and the impact of supervisor affiliation on pro-group unethical behavior

Based on social exchange theory, this research aims to develop and test a model in which supervisor affiliation mediates the impact of servant leadership on employees’ pro-group unethical behavior a highly competitive intergroup environment. Using a sample of 239 employees from 39 groups in four foreign-owned engineering enterprises, we found that supervisor affiliation mediated the positive relationship between servant leadership and employees’ pro-group unethical behavior. Our results also revealed that employees’ moral attentiveness weakened the positive impact of supervisor affiliation on pro-group unethical behavior. The current study contributes to business ethics research by advancing our understanding of antecedents of pro-group unethical behavior as well as how servant leadership leads to employees’ unethical behaviors. Implications for theory, practice, and directions for future research are discussed.     

Money,Emotions, and Ethics Across Individuals and Countries

This article presents two separate but closely related studies. We used a first sample to investigate the relationships among individuals’ reports of their income and their subjective well-being, and their approval of unethical behavior in 27 countries and a second sample to investigate the relationship between corruption in 55 countries and their populace’s aggregated feelings of subjective well-being (happiness). Analysis of data from 27,762 working professionals showed that, although reported feelings of subjective well-being were negatively related to their approval of unethical behaviors, income was positively related to their approval of unethical behaviors. In addition, the effects for feelings of subjective well-being were particularly strong for high-income people. Analyses also showed that, after controlling for economic development and other country-level factors, corruption was negatively related to a country’s feelings of happiness. These findings suggest that feelings of subjective well-being may lead to more ethical, less corrupt behavior and that the tolerance of unethical, corrupt behavior may lead to less collective happiness and subjective well-being.     

What can managers do about unethical management?

What can and should we do as managers and administrators when our sense of personal morality is at odds with our organization's behavior? Among the many alternatives are: (1) not think about it; (2) go along and get along; (3) protest; (4) conscientiously object; (5) leave; (6) secretly blow the whistle; (7) publicly blow the whistle; (8) secretly threaten to blow the whistle; (9) sabotage; and, (10) negotiate and build consensus for a change in the unethical behavior. This article considers the advantages and disadvantages of these ten types of strategies based on some philosophy, game theory and everyday pragmatics.     

Methodological Issues in the Design of Online Surveys for Measuring Unethical Work Behavior: Recommendations on the Basis of a Split-Ballot Experiment

In recent years, there has been an increasing interest in unethical work behavior. Several types of survey instruments to collect information about unethical work behavior are available. Nevertheless, to date little attention has been paid to design issues of those surveys. There are, however, several important problems that may influence reliability and validity of questionnaire data on the topic, such as social desirability bias. This paper addresses two important issues in the design of online surveys on unethical work behavior: the response scale for questions regarding the frequency of certain types of unethical work behavior and the location of the background questions in an online survey. We present the results of an analysis of a double split-ballot experiment in a large sample (n = 3,386) on governmental integrity. We found that, when comparing response scales that have labels for all categories with response scales that only have anchors at the end, the latter provided answers with higher validity. The study did not provide support for the conventional practice of asking background questions at the end.     

Negative Publicity Effect of the Business Founder’s Unethical Behavior on Corporate Image: Evidence from China

The unethical behavior of a business founder often leads to negative publicity which substantially affects positive corporate image. The amount of negative publicity relating to business founders’ unethical behavior is on the rise in the age of online social media in China. Based on the stimulus–response theory and balance theory, this paper developed a theoretical model to examine how negative publicity about a business founder’s unethical behavior affects corporate image. The proposed model was tested by the partial least squares technique. Results show that perceived severity, publicity intensity and recovery performance are predictors of corporate image: perceived severity has a negative impact on positive corporate image; publicity intensity and recovery performance have positive impacts on positive corporate image; and founder image mediates the relationships between the three predictors and corporate image. Moreover, initial consumer impression of business founders has a positive impact on positive corporate image.     

Fostering creative selling through ethics. An emotion-based approach

Research on salesperson creativity remains as one of the most under-researched topics in the sales literature despite the evidence that encouraging creativity in the sales domain is a source of competitive advantage. This paper aims to fill this research gap by exploring the influence of perceived ethical climate on salesperson creative performance, paying special attention to the role that emotions play in this process. Data provided by 176 supervisor–salesperson dyads confirm that the trust/responsibility dimension of an ethical climate is positively related to salesperson creative selling by increasing salespeople's organizational pride. Similarly, the perception of unethical selling practices negatively affects salesperson organizational pride, reducing the expression of creative behaviors. Moreover, the negative effect of unethical selling practices on creative performance is stronger (more negative) when salespeople's identification with an organization increases. Managerial implications and future research directions are also addressed.     

Moral Differentiation: Exploring Boundaries of the “Monkey See,Monkey Do” Perspective

Research in ethical decision making has consistently demonstrated a positive relationship between others’ unethical behavior and observers’ unethical behavior, providing support for the “Monkey See, Monkey Do” perspective (e.g., Robinson and O’Leary-Kelly, Acad Manage J 41:658–672, 1998). However, the boundaries of this relationship have received little research attention. Guided by theory and research in interpersonal distancing, we explore these boundaries by proposing and examining “moral differentiation,” the set of individual and situational characteristics that affect the degree to which one is willing to be influenced by others’ unethical behavior. Using data from 655 undergraduate business students in two U.S. universities, we test moderating hypotheses regarding the influence of moral differentiation characteristics on the relationship between others’ unethical behavior and observers’ unethical behavior. Results suggest that strong moral identity, low need for affiliation, and extraversion weaken the relationship between others’ unethical behavior and observers’ unethical behavior. Implications for managers and future research are discussed.     

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.     

非工作时间通信技术过载对员工不道德亲家庭行为的影响机制研究

依据认知失调理论和角色理论，基于320名企业员工两个时点的纵向调研数据，探究了非工作时间通信技术过载通过工作—家庭内疚感诱发员工不道德亲家庭行为的机制，厘清了家庭支持型主管行为和员工角色道德在上述关系中所起到的调节作用。研究结果表明，非工作时间通信技术过载通过工作—家庭内疚感对员工不道德亲家庭行为产生正向影响；家庭支持型主管行为和员工角色道德均在工作—家庭内疚感与不道德亲家庭行为的关系间起负向调节作用；家庭支持型主管行为通过员工角色道德的中介作用间接负向调节工作—家庭内疚感对不道德亲家庭行为的影响。这些结论既是对不道德亲家庭行为研究领域的拓展，同时也为组织抑制员工不道德亲家庭行为提供了有益的指导。     

Does transparency influence the ethical behavior of salespeople?

This study introduces the concept of perceived salesperson transparency to the sales literature. It addresses how recent technological developments impact traditional agency theory concerns, while simultaneously creating a conceptual definition of perceived transparency for application on an individual level. Salesperson perceptions regarding managerial use of behavioral information obtained through technological means are empirically found to have a mediating effect on the relationship between managerial access to such information and the likelihood of unethical salesperson behavior. It concludes that salesperson ethical behavior is not influenced by management's ability to obtain behaviorally relevant information, but rather by the use of this information. Further, it is found that the mediating influence of use of information accessed via technology is itself moderated by the salesperson's job performance.     

The Relationship between Consumers' Unethical Behavior and Customer Loyalty in a Retail Environment

This paper investigates the relationship between two outcomes of relationship marketing – affective commitment and behavioral loyalty – and consumers' unethical behavior. The main objective of the study is to assess whether affective commitment and behavioral loyalty to a store translate into more ethical behavior towards that store, controlling for the variables of age, gender, and ethical beliefs. The study does not rely on a single measurement tool, but is based on ten months' panel data and three different mail surveys targeted at 359 Belgian households. The results provide support for our hypothesis that affective commitment is indeed negatively correlated with consumers' unethical behavior. The same conclusion could not be drawn for the relationship between behavioral loyalty and consumers' unethical behavior. No significant relationship was detected, not even in situations where affective commitment was high. The results hold major implications for retailing practice.