Value Congruence and Charismatic Leadership in CEO–Top Manager Relationships: An Empirical Investigation

Although charismatic leadership theorists have long argued that leader–follower value congruence plays a central role in the development of charismatic relationships, few studies have tested this proposition. Using data from two studies involving a total of 329 CEOs and 1807 members of their top management teams, we tested the hypothesis that value congruence between leaders and their followers is empirically linked to follower perceptions of the charisma of their leader. Consistent with a relational perspective on charismatic leadership, strong support was found for the hypothesis that perceived value congruence between leaders (CEOs) and their followers (members of their top management teams) is positively related to follower perceptions of the degree of charisma possessed by the leader. Conversely, only limited support was found for the hypothesis that actual value congruence is linked to perceptions of charismatic leadership. Implications of these findings for research and practice are discussed.     

Measuring Electronic Commerce Technology–Enabled Business Value: An Empirical Investigation

This research investigates whether firms using e-commerce technologies are successful in generating business value and, if so, which e-commerce drivers determine this success and how firms should use these drivers. There is no systematic empirical evidence in the IT productivity and business value literature regarding the payoffs a business receives from its e-business initiatives. The current research contributes to the literature in the e-commerce area by identifying a set of e-business value constructs, incorporating these constructs in a model in a manner not done before, and empirically validating the model using an Analysis of MOment Structures (AMOS)/?Structural Equation Modeling (SEM) analysis. The present research also contributes to the e-business value literature by providing insights into causal relationships among Rogers' innovation and diffusion theory (IDT) factors. This is the first time a research study has empirically established comprehensive causal relationships among these factors. The SEM analysis of the model indicates that the proposed model is able to explain e-commerce success utilizing the constructs identified and grounded using IT business value literature and Rogers' IDT. We conclude by summarizing its contributions to the IT literature, in general, and the e-business literature, in particular, and by providing insights for practice and suggestions for future research.     

Virtue Ethics and the Practice–Institution Schema: An Ethical Case of Excellent Business Practices

This paper aims to contribute to a greater understanding of the theory of virtue ethics and its applications in the business arena. In contrast to other prominent approaches to ethics, virtue ethics provides a useful perspective in making sense of various business ethics issues with an emphasis on the moral character of the individuals and its transformational influences in driving ethical business conduct. Building on Geoff Moore’s (Bus Ethics Q 12(1):19–32, 2002; Bus Ethics Q 15(2):237–255, 2005; Bus Ethics Q 18(4):483–511, 2008) treatment of Alasdair MacIntyre’s practice–institution schema, the paper discusses how individuals, as moral agents, can serve to promote virtuous business conduct and help foster a moral and ethical climate in the organization and in society at large. Using interview data from a broader study of the New Zealand wine industry as explanatory examples, the paper argues that while many companies’ sustainable practices are still largely market based, such excellent business practices are often driven by individuals’ moral and ethical pursuits.     

Renegotiation in Public–Private Partnerships: An Incentive Mechanism Approach

Game theory is an important analytical tool for measuring problems caused by behaviors that deviate from contractual ethics. However, the PPP literature still does little to explore this research topic. This paper analyzes and improves the equilibrium conditions of a renegotiation model of PPPs by introducing the asymmetry of information in the contract. To achieve this goal, the Mechanism Design Theory is used to demonstrate how the correct tracking of the investor directly influences the payoffs of the renegotiation. The study concludes that the lack of incentive constraints in the bidding document, as an ex ante condition, does not provide sufficient information on investor management capability. In this way, this information is only revealed in the renegotiation phase. Consequently, this contract failure results in high political costs to the government due to excessive subsidies.     

Competition and Environmental Policy in the EU: Old Foes,New Friends?

European competition authorities consider environmental and competition policy to be complementary, as each has the objective of improving social welfare. Naturally, one would imagine that environmental considerations have already been accounted for in competition policy practice, but thus far, only in the case of voluntary environmental agreements. This paper analyzes the extent to which the two types of policy are complementary by examining the legal framework of competition policy, voluntary environmental agreements and three competition cases with equal relevance to the environment and then examines the basic theoretical economic observation that less competition implies lower pollution levels relative to more competition. This trade-off between the benefits of reduced emissions on the one side and increased competition on the other implies that disregarding environmental considerations in the implementation of competition policy entails a negative externality, which can be eliminated if environmental considerations are internalized in competition policy. The impact of the externality is found to depend on the emission level, the emission damage, and market size. Further, this implies that if competition authorities were to adopt a broad definition of the relevant market in competition cases, then environmental considerations would play a limited role in competition policy, whereas a narrow definition implies that environmental considerations should have a much more important place than competitive considerations in competition policy.     

New Headings – Old Problems: The Evolution and Future of the EU Budget

Despite its political signifi cance the size of the European Union’s budget is rather modest: the expenditures make up less than one per cent of the EU’s Gross National Income. This article aims to examine the long-term problems linked to the budget. Critical analysis of characteristic features of the EU budget is particularly important, as we argue the Multiannual Financial Framework 2014-2020 maintains the “old” problems, and we suggest that a more comprehensive long-term reform is necessary. Under such circumstances, it is worthwhile to refl ect on the tasks, functions and structural problems of the budget and on how to use available resources in a more structured and effi cient way.     

Business Ethics and the ‘End of History’ in Corporate Law

If social scientists take natural science as a model, they may err in their predictions and may offer facile ethical views. MacIntyre assails them for this, but he is unduly pessimistic about business, and in rejecting the separation thesis he raises some difficulties about naturalism. Aristotle’s views of the good life and of the close relationship between internal and external goods provide a corrective to MacIntyre, and in fact suggest how virtues can support social capital and thus prevail within and among firms in competitive markets. Aristotle’s views are not necessarily inimical to those underlying modern democratic capitalism, but they raise questions about the limits to the good life. The separation thesis misses the importance of addressing the questions with both empirical and ethical resources.     

The Credit Crunch of 2007–08: Lessons Private and Public

The current financial crisis has much in common with past crises. Poor investment strategies with respect to risk as well as poor evaluation have contributed to the current crisis. This paper presents the lessons to be learned by the private and public sectors. Why do crises keep happening? Mismatch of assets—long-term liabilities offset by short-term assets—can be profitable but is risky, and robust strategies must be able to cope with the risk. A number of measures can and should be taken by private financial entities for their own sake as well as that of the entire financial system. With respect to the public sector, one should be wary of expanding the role of regulation. What should be done, however, is to make sure that public policies are pursued through on-budget spending and taxation rather than through off-budget initiatives, such as encouraging government-sponsored enterprises to accumulate subprime debt in order to further public policy objectives. It would also be useful to reduce overall levels of private debt by reducing tax incentives to borrow.     

Proximity and Micro-Enterprise Manager’s Ethics: A French Empirical Study of Responsible Business Attitudes

This research article analyses the influence of micro-enterprise (ME) managers’ perception of their relationship to their environment on the nature of their ethics. We carried out a survey with the head managers of 125 French MEs, providing a large set of primary data. Two types of variables were defined: (1) variables related to the nature and intensity of the relationships between ME managers and their social environment, and (2) variables related to the ethical framework that the managers used. The results of univariate and bivariate analyses show significant statistical relationships between the variables that indicated perceived embeddedness in the community and ethical variables. This result underlines the idea that “communities of ethics” may have an important influence in MEs.     

New Moralities for New Media? Assessing the Role of Social Media in Acts of Terror and Providing Points of Deliberation for Business Ethics

Social media offers a platform for diffused stakeholders to interact with firms—alternatively praising, questioning, and chastising businesses for their CSR performance and seeking to engage in two-way dialogue. In 2014, 163,402 public messages were sent to Fortune 200 firms’ CSR-focused Twitter accounts, each of which was either shared, replied to, “liked,” or ignored by the targeted firm. This paper examines firm reactions to these messages, building a model of firm response to stakeholders that combines the notions of CSR communication and stakeholder salience. Our findings show that firm response to a stakeholder on social media is positively and most significantly associated with what we refer to as the stakeholder’s connective power but negatively associated with the firm’s own connective power. To a lesser extent, firm response is positively associated with the stakeholder’s normative power but negatively associated with the firm’s own normative power. Firm response is also shown to be positively associated with stakeholder urgency in terms of both the originality of a stakeholder message and the expression of positive sentiment.

     

Regulation and the Promotion of Audit Ethics: Analysis of the Content of the EU’s Policy

Accounting literature has commonly judged the impact of regulation on auditors’ ethical commitment by studying daily audit practice. We argue that the content of the regulations themselves is an important determinant of such an impact. This paper evaluates the capacity of the content of regulation to promote audit ethics by reference to the European Union’s (EU) audit policy. Anchored in the extant conceptual perspectives on ethics, our analysis of relevant policy documents shows that the EU’s approach to audit ethics relates most strongly to the deontological perspectives on ethics and leaves largely unexplored other means of promoting auditors’ ethical stance, such as by stimulating virtue ethics. We find that it is the EU regulators’ restricted view of the conceptual foundations of audit ethics that limits the capacity of their policy to effectively stimulate auditors’ ethical commitment. The paper also discusses the potential implications of our analysis for the design of future audit policy.     

The State of Business Ethics in Israel: A Light Unto the Nations?

Whether the nation of Israel has become a “light unto the nations” in terms of ethical behavior among its business community remains in doubt. To examine the current state of business ethics in Israel, the study examines the following: (1) the extent of business ethics education in Israel; (2) the existence of formal corporate ethics program elements based on an annual survey of over 50 large Israeli corporations conducted over 5 years (2006–2010); and (3) perceptions of the state of business ethics based on interviews conducted with 22 senior Israeli corporate executives. In general, and particularly as a young country, Israel might be considered to have made great improvements in the state of business ethics over the years. In terms of business ethics education, the vast majority of universities and colleges offer at least an elective course in business ethics. In terms of formal business ethics program elements, many large companies now have a code of ethics, and over time continue to add additional elements. Most respondents believed they worked in ethical firms. Despite these developments, however, there appears to be significant room for improvement, particularly in terms of issues like: nepotism/favoritism; discrimination; confidentiality; treatment of customers; advertising; competitive intelligence; whistle-blowing; worker health and safety; and the protection of the environment. When compared with the U.S. or Europe, most believed that Israeli firms and their agents were not as ethical in business. A number of reasons were suggested that might be affecting the state of business ethics in Israel. A series of recommendations were also provided on how firms can better encourage an ethical corporate culture. The paper concludes with its limitations.     

Responsible Leadership in Organizational Crises: An Analysis of the Effects of Public Perceptions of Selected SA Business Organizations’ Reputations

??The loss of a stable state?? (Schon 1973) in organizational transformation can both be regarded as lamentable and inevitable. Transformation causes disruption and invasions of comfort zones to those affected by it, but it is nevertheless inevitable. The article maintains that while the loss of a stable state is inevitable in the stream of change confronting organizations today, points of stability and methods of dealing with instability are attainable through responsible management. The article postulates that steps taken by responsible leadership in response to specific business crises will reduce the effects of instabilities brought about by such transformational situations and reassert a stable state more rapidly. Utilizing Weber??s ??ideal type?? model format (Morrison 2006) with a specific example of international best practice of remedial steps taken by management in reaction to a specific crisis experienced by an organization, the article uses a qualitative historical case study analysis and quantitative time series research design to investigate South African firms which had recently faced crises impinging on their current corporate reputations. Findings suggest that both the number of remedial steps taken by companies and the speed in which they are implemented in conformance with the model are negatively associated with the size of the share price falls immediately post crises. The findings also suggest that larger share price appreciations over 6-month post-crises are associated with greater perceived corporate reputations and brand strengths. Tentative conclusions and possibilities for further research are briefly discussed.     

The Buyer–Supplier Relationship: An Integrative Model of Ethics and Trust

Dialogues between companies and actors of society often start as a result of a public scandal or in a situation of crisis. They can lead to short-term public relations activism or to long-term reputation gains. On the basis of cases and of a typology of forms of dialogues, the author develops ethical criteria and conditions for a successful dialogue – the ethical basis for such criteria being values such as equality, freedom and participation. A special focus is put on challenges that often result from dialogues such as the ethical judgment of compromises. This article proposes ethical criteria to evaluate compromises. This leads to a model of ethical dialogue.     

Use of a “Coping-Modeling,Problem-Solving” Program in Business Ethics Education

During the last decade, scholars have identified a number of factors that pose significant challenges to effective business ethics education. This article offers a “coping-modeling, problem-solving” (CMPS) approach (Cunningham, 2006) as one option for addressing these concerns. A rationale supporting the use of the CMPS framework for courses on ethical decision-making in business is provided, following which the implementation processes for this program are described. Evaluative data collected from N = 101 undergraduate business students enrolled in a third year required course on ethical decision-making in business indicated that the CMPS model is a promising alternative for both overcoming teaching challenges and for facilitating skill acquisition in the areas of ethical recognition, judgment, and action. Limitations and directions for future research are discussed.     

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.     

“Showrooming” in Consumer Electronics Retailing: An Empirical Study

The present study focuses on multichannel retailing strategies and describes the state of consumer behavior regarding “showrooming” (the practice of examining merchandise or products in a retail store and then buying it online). Founded on the theory of planned behavior (TPB), the authors examine the antecedents of showrooming using data collected from a sample of 176 retail consumers. Based on their results, they define perceived control, website compatibility, and subjective norms as the main antecedents of consumer attitudes toward online purchases. Additionally, they state that previous experience and reasons against purchasing online are directly associated with consumers’ intention to purchase on the retailer’s website. Finally, some theoretical conclusions and practical implications for retailers are discussed.     

Human–Animal Relations in Business and Society: Advancing the Feminist Interpretation of Stakeholder Theory

Journal of Business Ethics - Universities are increasingly pushed to apply for external funding for their research and incentivised for making an impact in the society surrounding them. The...