The Influence of a Family Business Climate and CEO–CFO Relationship Quality on Misreporting Conduct

This study answers Vazquez’s (J Bus Ethics 150(3):691–709, 2016) call for more research focused on the intersection between family firms and business ethics. We investigate two contextual factors potentially affecting the ethical reporting of chief financial officers (CFOs): a firm’s social ties to the controlling family and the CFOs’ perceived relationship quality with the CEO. We test our hypotheses by examining the financial reporting behavior of Chinese CFOs who work at (1) family or nonfamily businesses and in (2) private or public firms. Results of this study advance our understanding of social and contextual factors that may compromise CFOs' reporting behavior in family firms (Suh et al., J Bus Ethics, 2018, https://doi.org/10.1007/s10551-018-3982-3).  This research also suggests that failure to distinguish between public and private companies may bias the results of studies that examine family firms.

     

The Morality of Risk Modeling

This article applies the concept of prudence to develop the characteristics of responsible risk-modeling practices in the insurance industry. A critical evaluation of the risk-modeling process suggests that ethical judgments are emergent rather than static, vague rather than clear, particular rather than universal, and still defensible according to the discipline’s established theory, which will support a range of judgments. Thus, positive moral guides for responsible behavior are of limited practical value. Instead, by being prudent, modelers can improve their ability to deal with the ethical and technical complexity of the risk-modeling process. While the application of prudence to resolve ethical challenges in risk modeling, an issue of practical importance to managers, is a first in the literature, the practice of applying an ethical lens to issues of pragmatic importance for managers is well established in Maak and Pless (J Bus Ethics 66:99–115, 2006a; Responsible leadership, 2006b) among others.     

Group Decision-Based Construction of Scenarios for Multicriteria Analysis in Conditions of Uncertainty on the Basis of Quantitative and Qualitative Information

This study examines a general scheme of multicriteria decision-making under uncertainty based on quantitative and qualitative information. In its original form, the general scheme uses qualitative information at the final decision stage, only if the quantitative information is unable to generate unique solutions. Considering that many problems require objectives based on qualitative information at all decision stages, the results of Ramalho et al. (2019) can provide such solutions. However, the processing of qualitative information in Ramalho et al. (2019) is based on applying a very simple approach to aggregating individual preferences without analyzing any type of consensus information. Therefore, the present study sets out to show that representative combinations of initial data, states of nature or scenarios can be constructed by using qualitative information directly, based on aggregating individual preferences after achieving the necessary consensus. In particular, a new scheme for consensus construction is proposed. Using this scheme enables negative points inherent in traditional approaches to be avoided and uncertainty levels to be reduced when estimating coefficients of objective functions based on qualitative information. An illustrative example is presented to demonstrate the results that the new proposal can achieve.

     

Politicising Government Engagement with Corporate Social Responsibility: “CSR” as an Empty Signifier

Governments are widely viewed by academics and practitioners (and society more generally) as the key societal actors who are capable of compelling businesses to practice corporate social responsibility (CSR). Arguably, such government involvement could be seen as a technocratic device for encouraging ethical business behaviour. In this paper, we offer a more politicised interpretation of government engagement with CSR where “CSR” is not a desired form of business conduct but an element of discourse that governments can deploy in structuring their relationships with other social actors. We build our argument through a historical analysis of government CSR discourse in the Russian Federation. Laclau and Mouffe's (Hegemony and socialist strategy: Towards a radical democratic politics, Verso Books, London, 1985) social theory of hegemony underpins our research. We find that “CSR” in the Russian government’s discourse served to legitimise its power over large businesses. Using this case, we contribute to wider academic debates by providing fresh empirical evidence that allows the development of critical evaluation tools in relation to governments’ engagement with “CSR”. We find that governments are capable of hijacking CSR for their own self-interested gain. We close the paper by reflecting on the merit of exploring the case of the Russian Federation. As a “non-core”, non-western exemplar, it provides a useful “mirror” with which to reflect on the more widely used test-bed of Western industrial democracies when scrutinising CSR. Based on our findings, we invite other scholars to adopt a more critical, politicised stance when researching the role of governments in relation to CSR in other parts of the world.

     

Commentary: the role of age in consumer’s retrieval and evaluation of consumption experiences

Si, K., & Dai, X. Marketing Letters (2022), have introduced an intriguing and potentially useful construct to the marketing literature: memory-search frame. Our commentary centers on Si and Dai’s study 3. This study focuses on the possible moderating effect of age on the typical length of consumers’ memory-search frame. Its results imply that older consumers have longer memory-search frames compared to younger consumers. However, these correlation-based results are not strong evidence. We briefly review past research that is inconsistent with these results and pose additional questions to the authors that they might pursue in future research.

     

Dynamic stochastic games with random moves

We reformulate the quality ladder model of Pakes and McGuire, Rand Journal of Economics, 25(4), 555–589 (1994) as a dynamic stochastic game with random moves in which each period one firm is picked at random to make an investment decision. Contrasting this model to the standard version with simultaneous moves illustrates the computational advantages of random moves. In particular, the quality ladder model with random moves avoids the curse of dimensionality in computing firms’ expectations over all possible future states and is therefore orders of magnitude faster to solve than its counterpart with simultaneous moves when there are more than just a few firms. Perhaps unexpectedly, the equilibria of the quality ladder model with random moves are practically indistinguishable from those of the model with simultaneous moves.

     

Responsible Leadership,Stakeholder Engagement,and the Emergence of Social Capital

I argue in this article that responsible leadership (Maak and Pless, 2006) contributes to building social capital and ultimately to both a sustainable business and the common good. I show, first, that responsible leadership in a global stakeholder society is a relational and inherently moral phenomenon that cannot be captured in traditional dyadic leader–follower relationships (e.g., to subordinates) or by simply focusing on questions of leadership effectiveness. Business leaders have to deal with moral complexity resulting from a multitude of stakeholder claims and have to build enduring and mutually beneficial relationships with all relevant stakeholders. I contend, second, that in doing so leaders bundle the energy of␣different constituencies and enable social capital building. Social capital can be understood as actual or potential resources inherent to more or less institutionalized relationships of mutual recognition (Bourdieu 1980). By drawing on network analysis I suggest, third, that responsible leaders weave durable relational structures and ultimately networks of relationships which are rich in ties to otherwise unconnected individuals or groups. Against this background I argue, fourth, that responsible leadership may result in the creation of value networks (Lord and Brown, 2001) of multiple stakeholders, which enhance social capital and thereby contribute to both a sustainable business and the common good.

Understanding Responsible Leadership: Role Identity and Motivational Drivers

This article contributes to the emerging discussion on responsible leadership by providing an analysis of the inner theatre of a responsible leader. I use a narrative approach for analyzing the biography of Anita Roddick as a widely acknowledged prototype of a responsible leader. With clinical and normative lenses I explore the relationship between responsible leadership behavior and the underlying motivational systems. I begin the article with an introduction outlining the current state of responsible leadership research and explaining the kind of magnifying glasses used to examine the case. I continue with a brief summary of Anita Roddick’s development from childhood to adulthood, which provides the biographical background for exploring her motivational systems as a leader. Against this backdrop, I analyze the relationship between motivational drivers and a responsible leadership identity as revealed by Roddick in different behavioral leadership roles. I conclude the article by providing a number of lessons learned for responsible leadership and the development of future global leaders. Dr. Nicola M. Pless is a former Vice President of leadership development at a large financial services institution. Currently she is Reader in Responsible Leadership at the University of St. Gallen and Research Director of the HSG-INSEAD Initiative on Responsible Leadership. She holds a Ph.D. in organizational theory and social issues from the University of St. Gallen and a diploma in clinical organizational psychology from INSEAD where she is a Visiting Senior Research Fellow. She is editor of “Responsible Leadership”, published by Routledge in 2006.     

Ethical reflection and service internships

To achieve the goals of ethics education, students must have oportunities to develop both moral capacities (imagination, responsibility, and perseverance) and intellectual capacities (critical thinking). This article contends that service-based learning represents an important opportunity for integrative ethics education. It describes a program of leadership internships at North Central College in Naperville, Illinois, in which faculty members conduct a for-credit reflection seminar with students involved in service internships. The seminar is based upon student-written cases about ethical issues they face in their work settings.David C. Smith is Executive Vice President of the Council for Ethics in Economics, an association of leaders in busienss and the professions dedicated to strengthening the ethical fabric of business and economic life. Prior to joining the Council in August, 1994, he was Director of the campus-wide Leadership, Ethics, and Values Program at North Central College in Naperville, Illinois.     

Challengers from Within Economic Institutions: A Second-Class Social Movement? A Response to Déjean,Giamporcaro, Gond,Leca and Penalva-Icher’s Comment on French SRI

In a recent comment made about my paper “A Social Movement Perspective on Finance: How Socially Responsible Investment Mattered” (J Bus Ethics 92:57–78, 2010), published in this journal, Déjean, Giamporcaro, Gond, Leca and Penalva-Icher (J Bus Ethics 112:205–212, 2013) strongly criticize the social movement perspective adopted on French SRI. They both contest the empirical analysis of the movement and the possibility for insiders to trigger institutional change towards sustainability. This answer aims to address the different concerns raised throughout their comment and illuminate the differences between both approaches. It first explains why SRI in France can be considered as a social movement, despite not being protest-oriented. It then reflects on the dangers of systematically associating societal change with radical activism. It concludes by elaborating on the importance of acknowledging the potential contribution of reformist movements from within the economic institutions to the enhancement of the social good.     

“Apple: Good Business,Poor Citizen”: A Practitioner’s Response

This paper was written in response to Etzioni’s “Apple: Good Business Poor Citizen” (J Bus Ethics, 2016, doi: 10.1007/s10551-016-3233-4). It argues that Etzioni is correct in seeing the recent conflict between Apple and the FBI over cracking the San Bernardino shooter’s iPhone as requiring that considerations of national security be balanced against the rights of those it might impact. There are nonetheless critical questions about one must still ask: whose rights are curbed, to what degree, and how does a society decide which side to favor? More attention needs to be paid to the privacy of other iPhone users and, importantly, the burden that hacking the phone might impose on Apple, either impairing its brand value or compromising its business potential. Finally, by asking ‘who judges the balance?’, it questions whether labeling Apple a poor citizen is premature, as they had only begun challenging the FBI’s judgment through the judicial process.     

Ethical aspects of “Japanese leadership style”

This article describes three characteristics of the Japanese Leadership Style (JLS): self-realization, appreciation of diverse abilities, and trust in others, which have both positive and negative ethical implications. In addition to illustrating how JLS allows Japanese corporations to avoid some of the ethical problems plaguing U.S. corporations, the authors will explain how these characteristics engender the loyalty and initiative of Japanese employees which promote incremental innovation and competitive advantages. Implicit in this discussion is the premise that both the American and Japanese business communities, by analyzing their own ethical issues and leadership styles, can learn from each other.Iwao Taka is a Visiting Research Fellow in the Department of Legal Studies at The Wharton School. He is an Assistant Professor in the International School of Economics and Business Administration, Reitaku University in Japan. His publications include Business Ethics: A Japanese View, Intuitive Decision-Making and Creative Destruction, and Japanese Entrepreneurship after World War II.Wanda D. Foglia, Esquire, is a Teaching Fellow in the Department of Legal Studies at The Wharton School where she is pursuing a Ph.D. in Criminology. A former Assistant District Attorney, her research focuses on approaches for promoting the individual's commitment to ethical and law-abiding behavior. She has recently coordinated a Project to Integrate Ethics Into the Wharton Undergraduate Curriculum.     

The organizational bases of ethical work climates in lodging operations as perceived by general managers

The focus of this research concentrated on ascertaining the presence of ethical climate types and the level of analysis from which ethical decisions were based as perceived by lodging managers. In agreement with Victor and Cullen (1987, 1988), ethical work climates are multidimensional and multi-determined. The results of this study indicated that: (a) benevolence is the predominate dimension of ethical climate present in the lodging organization as perceived by lodging managers, and (b) the local level of analysis (e.g. immediate workplace norms and values) is the predominate determinant of ethical decisions in the organization.The implication of this study is that the knowledge gained from understanding that ethical decision making in an organization is multidimensional and multi-determined will foster understanding of ethical decision formation in the organizational context.Randall S. Upchurch has a rich lodging industry background that encompasses 16 years of practical experience ranging from front office operations to hotel general management. He received his Ph.D. in May of 1993. He is the author of a text entitled Lodging Marketing. Sheila K. Ruhland is Assistant Professor of Marketing Education in the College of Education at the University of Missouri — Columbia. Her research interests are in area of workplace ethics, workforce issues, leadership development. She has conducted a seminar on Ethics and has published articles in the Marketing Educators' Journal, and Journal of Vocational Education 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.     

Dialogic leadership as ethics action (praxis) method

Dialogic leadership as ethics method respects, values, and works toward organizational objectives. However, in those situations where there may be conflicts and/or contradictions between what is ethical and what is in the material interest of individuals and/or the organization, the dialogic leader initiates discussion with others (peers, subordinates, superiors) about what is ethical with at least something of a prior ethics truth intention and not singularly a value neutral, constrained optimization of organizational objectives. Cases are considered where dialogic leadership: (1) helped build ethical organizational culture; (2) was effective; and, (3) as a by-product, produced integrative win-win results. Philosophical foundations for the method as well as differences between dialogic leadership and Theory X forcing leadership, Theory Y win-win integrative leadership, industrial democracy, participative management, action inquiry, and double-loop learning action science are explored. Limitations of the method are also explored.We must be still and still moving Into another intensity For a further union, a deeper communion(T. S. Eliot, 1944, p. 27) Richard P. Nielsen is a professor in the Department of Organizational Studies, School of Management, Boston College, 214 Fulton Hall, Chestnut Hill, MA 02167, (617)552-8858. Related articles of his include: Negotiating As An Ethics Action (Praxis) Strategy, Journal of Business Ethics 8, 1989; Changing Unethical Organizational Behavior, Academy of Management Executive 3, 2, 1989; Limitations of Ethical Reasoning As An Action (Praxis) Method, Journal of Business Ethics 7, 1988; Cooperative Strategy, Strategic Management Journal 9, 1988; and, Arendt's Action Philosophy and the Manager As Eichmann, Richard III, Faust or Institution Citizen, California Management Review 26, 3, Spring, 1984.     

Designing Ethical Organizations: Avoiding the Long-Term Negative Effects of Rewards and Punishments

Ethics researchers advise managers of organizations to link rewards and punishments to ethical and unethical behavior, respectively. We build on prior research maintaining that organizations operate at Kohlbergs stages of moral reasoning, and explain how the over-reliance on rewards and punishments encourages employees to operate at Kohlbergs lowest stages of moral reasoning. We advocate designing organizations as ethical communities and relying on different assumptions about employees in order to foster ethical reasoning at higher levels. Characteristics associated with ethical communities are identified and AES Corporation and Semco S/A serve as examples of corporations exhibiting the design characteristics and assumptions of ethical organizations.     

My Boss is Morally Disengaged: The Role of Ethical Leadership in Explaining the Interactive Effect of Supervisor and Employee Moral Disengagement on Employee Behaviors

The popular press is often fraught with high-profile illustrations of leader unethical conduct within corporations. Leader unethical conduct is undesirable for many reasons, but in terms of managing subordinates, it is particularly problematic because leaders directly influence the ethics of their followers. Yet, we know relatively little about why leaders fail to apply ethical leadership practices. We argue that some leaders cognitively remove the personal sanctions associated with misconduct, which provides them with the “freedom” to ignore ethical shortcomings. Drawing on moral disengagement theory (Bandura 1986, 1999), we examine the relationship between supervisor moral disengagement and employee perceptions of ethical leadership. We then examine the moderating role of employee moral disengagement, such that the negative relationship between supervisor moral disengagement and employee perceptions of ethical leadership is stronger when employee moral disengagement is low versus high. Finally, we examine ethical leadership as a conditional mediator (based on employee moral disengagement) that explains that relationship between supervisor moral disengagement and employee job performance and organizational citizenship behavior (OCB). Results from a multi-source field survey provide general support for our theoretical model.     

Globalization and Poverty: Oxymoron or New Possibilities?

We examine the occurrence of ethics- related terms in 10-K annual reports over 1994–2006 and offer empirical observations on the conceptual framework of Erhard et al. (Integrity: A Positive Model that Incorporates the Normative Phenomena of Morality, Ethics, and Legality (Harvard Business School, Harvard) 2007). We use a pre-Sarbanes-Oxley sample subset to compare the occurrence of ethics-related terms in our 10-K data with samples from other studies that consider virtue-related phenomena. We find that firms using ethics-related terms are more likely to be “sin” stocks, are more likely to be the object of class action lawsuits, and are more likely to score poorly on measures of corporate governance. The consistency of our results across these alternative measures of ethical behavior suggests that managers who portray their firm as “ethical” in 10-K reports are more likely to be systematically misleading the public. These results are consistent with the integrity-performance paradox.     

Consumer ethics: The possible effects of terrorism and civil unrest on the ethical values of consumers

Research investigating the consumer's ethical beliefs, ideologies and orientation has been limited. Additionally, despite the repeated call in the literature for cross cultural research, virtually no studies have examined the ethical beliefs and ideologies of consumers from cultures other than those in North America. This study partially fills this gap in the literature by investigating the ethical beliefs, preferred ethical ideology, and degree of Machiavellianism of consumers from Egypt and Lebanon. The results indicate that consumers in Lebanon, which has been torn by civil unrest and terrorism, tend to be more Machiavellian, less idealistic, and more relativistic than their Egyptian counterparts. Additionally, the Lebanese consumers tend to be more accepting of questionable consumer practices.Mohammed Y. A. Rawwas is Assistant Professor of Marketing at the University of Northern Iowa. His research has appeared in theJournal of Business Ethics, Journal of Hospital Marketing, Health Marketing Quarterly, Medical Marketing & Media, and national proceedings of the American Marketing Association.Scott J. Vitell is Associate Professor of Marketing and holder of the Michael S. Starnes Lecturship in Marketing and Business Ethics at the University of Mississippi. His work has previously appeared in theJournal of Macromarketing, theJournal of Business Ethics, Research in Marketing, theBusiness and Professional Ethics Journal and theJournal of the Academy of Marketing Science as well as various other journals and proceedings.Jamal Al-Khatib is Assistant Professor of Marketing at the University of Wisconsin-Eau Claire. His research has appeared in theJournal of Consumer Marketing, International Marketing Review andResearch in the International Business Disciplines as well as various national and regional proceedings.