Why do good employees stay in bad organizations?

Family and work are two of society's most important institutions. It is understandable, then, that some similarities would exist between the two. One unfortunate aspect of such relationships is that families and organizations may be abusive to members. When this occurs in familial relationships, research has identified dynamics that keep people in the abusive situation. We consider here how those same dynamics can occur in abusive organizations to identify factors that keep employees in unhealthy work environments. We then examine intervention techniques and concepts that can be used to enable people to recognize an abusive organization, the long-term damage such organizations can inflict on employees, and ways to assist individuals in exiting an abusive organization setting. Our intention is to create awareness of the harm that can be caused by abusive organizations and provide a framework that will enable people caught in a pattern of organizational abuse to understand their choices and behaviors.     

An Analysis of Corporate Social Responsibility at Credit Line: A Narrative Approach

This article presents the results of an inductive, interpretive case study. We have adopted a narrative approach to the analysis of organizational processes in order to explore how individuals in a financial institution dealt with relatively novel issues of corporate social responsibility (CSR). The narratives that we reconstruct, which we label ‚idealism and altruism’, ‚economics and expedience’ and ‚ignorance and cynicism’ illustrate how people in the specific organizational context of a bank (‚Credit Line’¹) sought to cope with an attempt at narrative imposition. In particular, our work exemplifies how people in organizations draw on shared discursive resources in order to make sense of themselves and their organizations. We illustrate how many people within the bank found it hard to integrate the normative case for CSR with their version of a narrative identity which had, and continued to be, centred on economic imperatives for new initiatives. Our article demonstrates both the value of the analysis of shared narratives, and represents an attempt to deal adequately with the polyphony of organizational voices, in case studies of CSR. Michael Humphreys graduated with a B.Sc from Leeds University and took MBA and Ph.D. degrees at the University of Nottingham. He is currently an Associate Professor and Reader in organization studies an Nottingham University Business school. His research interests include ethnographic and narrative approaches to organizational identity in both public and private sector organizations. He has published work in a range of journals including: The Journal of Management Studies, Organization Studies, Organization, British Journal of Management, The Journal of Applied Behavioral Science, The Journal of Organizational Change Management and Qualitative Inquiry. Andrew D. Brown took his MA at Christ Church, Oxford, and his M.Sc and Ph.D. degrees at the University of Sheffield. He held faculty positions at Manchester Business School, the University of Nottingham and the University of Cambridge, before taking up a Chair in Organization Studies at the University of Bath. His principal research interests are centred on issues of sensemaking, narrative and identity. He has published work in a range of scholarly journals, including Academy of Management Review, Journal of Management Studies, and Organization Studies.     

The determinants of international migration: Unbundling the role of economic,political and social institutions

International migrants may relocate because of economic, political and social factors in their origin or destination countries. Using global bilateral migration flows from 103 countries over the period 1990–2000, we explore whether emigrants self-select based on economic, political and social institutions. Our study adds social dimension as a potential determinant of migration and separates the pull and push effects of political, economic and social institutions. Our results indicate that economic, political and social institutions are significant pull factors of migration; economic freedom has the most substantial pull effect followed by the political institutions; social institutions have the weakest pull effect on migration. Moreover, economic and social institutions are significant push factors of migration, while political institutions do not show any push effect. Furthermore, educated migrants are more sensitive to the destination economic, political and social institutions than less-educated migrants, and less-educated migrants are more sensitive to the social institutions at the origin.     

Trade Liberalization, Corruption, and Software Piracy

As multinational firms explore new and promising national markets two of the most crucial elements in the strategic decision regarding market-entry are the level of corruption and existing trade barriers. One form of corruption that is crucially important to firms is the theft of intellectual property. In particular, software piracy has become a hotly debated topic due to the deep costs and vast levels of piracy around the world. The purpose of this paper is to assess how laissez-faire trade policies and corruption affect national software piracy rates. Using invisible hand theory, as well as literature from the fields of international strategy and ethics, formal research hypotheses are posited and tested. Results suggest that corruption mediates the relationship between economic freedom and software piracy. Implications for multinational managers and researchers are also addressed. Christopher J. Robertson (B.S. University of Rhode Island; M.B.A. and Ph.D., Florida State University) is an Associate Professor in the International Business and Strategy Group at Northeastern University. He has taught in Virginia, Florida, Spain, Peru and Ecuador and is a two time Fulbright Scholar. Professor Robertson’s Primary research stream is cross-cultural management with a focus on ethics and strategy. His work has been published in journals such as the Journal of World Business, Strategic Management Journal, Journal of Business Ethics, Management International Review, Organizational Dynamics and Business Horizons. K Matthew Gilley (B.A and M.B.A University of North Texas; Ph.D., University of Texas at Arlington) is the Bill Greehey Endowed Chair in Business Ethics and Corporate Social Responsibility in the Greehey School of Business at St. Mary’s University. His primary research explores issues of executive compensation, governance, international ethics, and outsourcing. His work has appeared in the Strategic Management Journal, the Academy of Management Journal, the Journal of Management, the Journal International Business Studies, and other outlets. William F. Crittenden, Senior Associate Dean, Dean of Faculty and Professor, General Management Group. A consultant and advisor to various private, public, and nonprofit organizations, Professor Crittenden has worked with such U.S based organizations as Boston Beer Company, BAE Systems, EG&G, Intronics, Lotus Software, Wal-Mart Stores, Boston Management Consortium, Head Start, Jefferson Hospital, Nazareth, the new England Association of Quality Clubs, and The Professional Council, and with Funducion CANE in Buenos Aires, Argentina, and Banco Nacional de Comercio Exterior of Monterrey, Mexico. He is a member of numerous professional organizations including the Strategic Management Society, the Academy of Management, and the Academy of Marketing Sciences. He is a former Chair of the Public & Nonprofit Division of the Academy of Management. Professor Crittenden holds a BA from the University of Michigan, an MBA from Aubum University, and a PhD from the University of Arkansas.     

Sin and the economic analysis of the pastoral: A class act?

The Pastoral contains a non-Marxist class based non-traditional analysis of sinful acts in economic life. Data on poverty, income distribution, unemployment and economic problems are used to assert the existence of a marginalyzed, economically disenfranchised class, victims of the sinful self-serving actions of individuals influential in economic and political institutions. Economic scarcity, the reality of risk, conflicting policy goals, imperfect economic policy insights, mistaken choices, and the consequences of sinful acts for the sinner are ignored as possible causes of imperfect economic outcomes as the bishops advocate solutions through an expanded agenda of government programs and power.James P. Egan is Associate Professor of Economics at the University of Wisconsin — Eau Claire. He was awarded a faculty research sabbatical in 1986.     

Ethical behaviours in organizations: Directed by the formal or informal systems?

Past research has focused on individual culpability with the assumption that individuals will further their own self interest over that of the organization, given an appropriate opportunity. In contrast, this research shifts the focus from individual motivation to the influence of the formal and informal control systems of organizations on ethical behaviours. An open-ended interview approach was used to collect data. It was found that pressures within the informal system were the dominant influence in the resolution of ethical issues. The dominance of the informal system, however, varies according to the economic position of the organization.Loren Falkenberg and Irene Herremans are Associate Professors in the Faculty of Management at the University of Calgary. Both have published in a wide variety of academic journals. Loren Falkenberg teaches courses in business ethics and management of human resources while Irene Herremans teaches in the accounting and tourism areas.     

Stages of moral development of corporations

Drawing from the Boulding's (1956) framework for general systems theory, the need to employ richer paradigm in the study of organizations (Pondy and Mitroff, 1979) is reiterated. It is argued that a better understanding of organizational ethical behavior is contingent upon viewing organizations as symbol processing systems of shared language and meanings. Further, it is proposed that organizations, like individuals, develop into collectivities of shared cognitions and rationale, over a period of time. The study adapts Kohlberg's (1983) model of moral development to examine if organizations can be viewed as passing through different stages of moral development depending on the type of moral reasoning employed to explain their behaviors in the face of ethical crises. Several cases raising questions about the ethics of corporate behavior were researched. An instrument entitled Organization Response Analysis was constructed using statements made by various spokespersons representing five of these organizations. The instrument was administered to 246 graduate and undergraduate students of business (N = 246). Results indicated a great degree of concurrence among respondents of differing genders, levels of education and work experience in determining the stages of moral development of organizations. Limitations of the current study and implications for future research and practice are discussed.B. S. Sridhar, Ph.D., is an Assistant Professor of Management at the College of Business, University of Wisconsin — Oshkosh. His research interests include transformational leadership, decision making, attribution, business ethics and cross cultural issues.Artegal Camburn, Ph.D., is an Associate Professor of Management at the Harold Walter Siebens School of Business, Buena Vista College in Storm Lake, Iowa. His research interests concern the social responsibility of business and decision making in the areas of business ethics and corporate social responsibility.     

Machiavellianism revisited

The field of management has had difficulty embracing the concept of Machiavellianism despite the myriad of studies produced by other fields of social science. It appears that Machiavellianism as a unitary personality construct has limited efficacy in the complex world of organizations. The authors suggest a multidimensional approach to understanding the impact of an individual's threat to organizational functioning. Viewing the construct as discontinuous with two manifestations, predatory and benign, suggestions are made as to the location within organizations where such individuals may be found. A research approach is also suggested. George Nelson, Assistant Professor of Management at Prarie View A and M University in Texas, has published articles in the Journal of Small Business Management, Entrepreneurship: Theory and Practice, and Business Insights. He has presented papers at SWFAD, International Marketing and Management, and ORSA/TIMS conferences. His research interests include the interface of business and politics, female entrepreneurs, and applied organizational theory. Diana Gilbertson, Associate Professor of Management at California State University in Fresno, conducts research in nonprofit strategic management, leadership, and women in business. She has presented papers at numerous conferences and has published in the Labor Law Journal.     

Limits to learning from the west: How western management advice may prove limited in Eastern Europe

The West's aid to the emerging Eastern European economies includes consultancy and education. This will have considerable impact on their economic and managerial activity, even though the theories of organization and management on which it is based are much criticized here. As these theories are applied in the extreme economic, social and political circumstances of the Soviet collapse, we are likely to be both surprised and pushed into a period of critical organizational theorizing. Much of the criticism comes from institutionalists who reject a generic approach to economics and management. They argue instead that organizations are embedded within a specific environment of social, legal, economic, and technological institutions which fashion their activities. They are saying “things are different over there and we should recognize that our advice presumes our own institutional arrangements.” The first part of this study reviews the reasoning behind this critique. It has two threads: (a) the institutional context and the way that shapes economic transactions and their costs; and (b) the way institutions develop as collective responses to social uncertainties. We look at organization theory's dependence on the social institutions, such as contract law, professional training, and the market for insurance. We take these and many other Western institutions for granted, and seldom stop to analyze them. In Eastern Europe, managers lack such institutional infrastructures and face uncertainties beyond our experience. This article's second part focuses on the processes by which organizations respond to uncertainties. There are many types of uncertainty and we pick out that of adopting a new technology. Problems arise because of “gaps” between the organization's in-place work practices, knowledge, and attitudes, and those which they must eventually adopt if they are to use the new technology effectively. Recent research into workplace know-how suggests that such gaps are bridged by workers developing a new “tacit” understanding of the technology through learning-by-doing. This knowledge generation (KG) works best when it is also communal, when creative teams form. By definition, this kind of team cannot be managed bureaucratically, in ways that depend on an understanding of the task in hand. We see that bureaucracy is a theory of knowledge application (KA) which breaks down in the absence of the necessary knowledge, rules, measurements, communications, and sanctions. Creative teams can operate under the conditions of bureaucratic failure because they are held together by institutional forces rather than by rational administration. The context of social institutions outside the organization becomes important because it defines the institutional bases for such teams. In the final section we look beyond creative teams as internal uncertainty resolvers. The new institutional economists argue that firms should internalize the uncertain transactions that are difficult to contract, and so precipitate market failure. We suggest that entrepreneurs also look outside the firm at those social institutions which enable them to externalize uncertainties. In general, the institutionalist critique reveals that entrepreneurs have several domains of action. The formal KA part of the firm, the focus of classical organization and management theory, is but one of these domains. Other equally important KG domains lie both within the firm and in the interorganizational networks and social institutions beyond its boundaries. The uncertainties of the Soviet collapse move us on from the simplicities of Western organization theory toward a richer set of ideas more relevant to our Eastern European colleagues—and to ourselves.     

Authority and Democracy in Corporate Governance?

Although McMahon offers a potentially valuable extension of Joseph Raz's conceptualization of authority by distinguishing three different kinds of authority, this paper argues, first, that his account of the conditions and considerations that would justify managerial authority is problematic because it relies on a conception of reasons for action that excludes precisely the kind of rationality that plays an important role in the␣explanation and justification of authority in economic␣organization. This paper explains, second, why McMahon's thesis of the justificatory similarity of authority in governments and nongovernmental organizations can also be seen to hold for corporate governance of publicly owned firms more specifically. Finally, this paper raises some critical objections against McMahon's presumption of democratic governance in governments and NGO's alike. The thrust of these objections is that democratic corporate governance does not make sense in the publicly owned firms because: (1) it will not produce results that are fair or welfare maximizing, and (2) it will undermine the legitimacy of managerial authority in such firms. J. (Hans) van Oosterhout holds an M.A. in political science from Leiden University and a PhD in organization theory from RSM Erasmus University, where he is currently an associate professor. His research involves the positive and normative theory of organizations and institutions, with a current emphasis on corporate governance and comparative economic and political organization. Earlier publications have appeared in: Academy of Management Review, Organization Studies, Journal of Business Ethics and Futures.     

Training as a social purpose: are economic and social benefits delivered?

This paper reports original research which measures the social and economic impact of training and skills development on individuals who participated in training provided by social purpose, nonprofit organizations. An implicit policy assumption is that such organizations contribute to social and economic regeneration. Examining the costs and benefits of training to trainees, an adapted Return on Investment methodology measures any economic benefit, while an Index of Social Benefit measures changes in individual well‐being. The results demonstrate that while changes to both the economic and social well‐being of trainees occur, it does not necessarily relate solely to the training they received. Instead, changes reflect other, often complex, aspects of trainees’ lives, although training may facilitate change. Furthermore, social purpose, nonprofit organizations need to evince the socioeconomic benefits of their training programmes to secure future funding, public or private, but proving their successful delivery may be difficult to determine.     

Ethical standards for computer professionals: A comparative analysis of four major codes

Professions have adopted ethical codes and codes of conduct. Physicians, lawyers, engineers, and other professionals have moral responsibilities. They know to whom they are responsible. Professionals in the data processing field, too, need to know that they have moral responsibilities and to whom they are responsible. This paper compares and evaluates the ethical codes of four major organizations of computer professionals in America. The analysis is done along the following obligations that every professional has: to society, to the employer, to clients, to colleagues, to the professional organization, and to the profession.Professionals in the information technology field have no single, agreed upon code of conduct. In the US alone there are four organizations promoting four different codes. While some of the behavioral precepts are similar, others are not. People who are members of more than one organization may wonder how they should act in certain circumstances. Furthermore, computer professionals are not provided with any guidance for cases of ethical conflicts.Flaws of the four codes and differences among them are discussed, examples of moral dilemmas are given, and points for improvement are suggested.Effy Oz is an assistant professor of Management Information Systems in the School of Business Administration at Wayne State University, and the coordinator of the MIS program. He has published articles inInformation Executive, OMEGA, Decision Sciences, Information & Management, Journal of Systems Management, andMiS Quarterly.     

Retail change: effects on employees' job demands and home life

Causes and effects of occupational stress have received research attention for several decades, with increasing focus during the 1990s as organizations and individual workers attempt to adapt to economic change. Stress arising from either the work or home domain can have a variety of outcomes in the workplace, and similarly can impact in many ways on relationships and activities at home. This paper reports the first phase of a research study to identify the impact on work and home life of changes in retailing, a sector of the economy which has experienced significant change over the past few years. A qualitative methodology was adopted, using group discussions to allow staff to identify the specific changes in retailing most important for themselves, and then to explore how these changes related to satisfactions and dissatisfactions at work, and their impact on general aspects of home life. The results suggest that the 'spillover' relationship between work and home stress seems to be the most useful in describing the impact of change. This suggests that additional role demands at work brought about by change have an impact on relationships and social life outside work. However, some individuals described instances of 'compensation' between work and home, and independence between the two domains. This suggests that the issue of stress in the home/work interface is complex, and that the demands in each domain may be positively or negatively related depending on characteristics of the demands themselves, or may vary according to individual characteristics of the people in the study.     

A Framework for Ethical Conformity in Marketing

The extant marketing literature provides little guidance for theory development or practice with regard to questions of ethical conformity and the resulting market response. To begin to bridge this research gap, we advance a theoretical framework of ethical conformity in marketing, appealing to marketing ethics, management strategy, and sociological foundations. We set the stage for our theoretical arguments by considering the role of normative expectations related to marketing practices and behaviors held by societal constituents. Against this backdrop, we propose drivers of conformity in marketing, including practices consistent with both overconformity and underconformity. The framework allows us to advance testable research propositions by which questions of ethical conformity may be explored. We conclude by suggesting additional future research needed to develop the domain, specifically in the form of empirical inquiries uncovering firm strategic decisions with ethical implications. Kelly D. Martin is Assistant Professor of Marketing at Colorado State University in Fort Collins, Colorado. Her research interests involve marketing strategy with ethical implications, interfirm relationships, the role of marketing in society, and the effects of institutions, social norms, and culture on organizations. Her work has appeared in the Academy of Management Journal, the Journal of Business Ethics, and Business & Society. Jean L. Johnson is the Gardner O. Hart Professor of Marketing at Washington State University in Pullman, Washington. Her research focuses on marketing strategy, interfirm relationships, and capabilities and learning in firms. Her work appears in the Journal of Marketing, the Academy of Management Journal, and Journal of International Business Studies, among others.     

An integrative model for understanding and managing ethical behavior in business organizations

Managing ethical behavior is a one of the most pervasive and complex problems facing business organizations today. Employees' decisions to behave ethically or unethically are influenced by a myriad of individual and situational factors. Background, personality, decision history, managerial philosophy, and reinforcement are but a few of the factors which have been identified by researchers as determinants of employees' behavior when faced with ethical dilemmas. The literature related to ethical behavior is reviewed in this article, and a model for understanding ethical behavior in business organizations is proposed. It is concluded that managing ethics in business organizations requires that managers engage in a concentrated effort which involves espousing ethics, behaving ethically, developing screening mechanisms, providing ethical training, creating ethics units and reinforcing ethical behavior. W. Edward Stead, Ph.D., is Professor of Management at East Tennessee State University, Johnson City, TN. His research interests include ethical behavior, cancer in the workplace, social strategy implementation, the ethical implications of cost-benefit analysis, and managing professional employees. His articles have appeared in Psychological Reports, Personnel Journal, Business and Society Review, and the Journal of Accountancy among others, and he has published cases in leading business policy and social responsibility texts. Dan L. Worrell, Ph.D., is Professor of Management and Department Chairperson at Appalachian State University, Boone, NC. He has published articles in such Journals as Academy of Management Journal, Journal of Management, Business Horizons, and Psychological Reports among others. His research interests include managerial succession, ethical behavior and social responsibility. Jean Garner Stead, Ph.D., is Associate Professor of Management at East Tennessee State University, Johnson City, TN. Her research interests include ethical behavior, cancer in the work place, social strategy implementation, and the ethical implications of cost-benefit analysis. Her articles have appeared in Psychological Reports, Personnel Journal, Business and Society Review and the International Journal of Management among others, and she has published cases in leading business policy and social responsibility texts.     

Measuring the relative importances of social responsibility components: A decision modeling approach

In this study, a decision modeling approach is used to measure the relative importances of four social responsibility components. When given information concerning the economic, legal, ethical and philanthropic activities of 16 hypothetical organizations, 159 junior and senior management students judged the social responsibility of these firms. The study used two types of analysis: first, a within-subject regression, then a between-subject ANOVA. Results showed ethical behavior to be most important in judging social responsibility; legal behavior was second, discretionary behavior third, and economic behavior was least important. In addition, all but one rater consistently applied the social responsibility components. The implications of these results and suggestions for future research are discussed. Barbara A. Spencer is Assistant Professor of Management at Clemson University. Her current research interests include strategic management, social issues, and business ethics. She has published several articles on corporate social responsibility. John K. Butler is Associate Professor of Organizational Behavior at Clemson University. He has published articles on job satisfaction, trust, group processes, political representation, and research methods in academic journals and proceedings.     

Testing as a selection tool: Another old and sticky managerial human rights issue

The intent of this paper is to state testing's definition and purpose within the selection process. A brief review of the current trend toward the increased use of testing in the selection process. An actual example of the increased use of testing in both the public and private sector is illustrated. Some discussion regarding future trends of testing — Genetic Screening, Personality Test, Honesty Test, etc. are also presented as issues of concern.George Munchus III is an Associate Professor of Management at the University of Alabama at Birminghan located in Birmingham, Alabama, and Owner of Project Results, a research and development firm which specializes in management services to both the public and private sector. His research is concerned with human resource utilization, project management, employee-employer relations in the public and private sector, and minority group dynamics and cultural differences in organization management. He has published numerous articles and presented numerous seminars on the above mentioned topics and has served as a consultant to individuals, industry, government, labor, and educational organizations in the area of human resources management, organizational development, business development, economic development, and research and advocacy work to date.     

The Role of Law in Models of Ethical Behavior

In attempting to improve ethical decision-making in business organizations, researchers have developed models of ethical decision-making processes. Most of these models do not include a role for law in ethical decision-making, or if law is mentioned, it is set as a boundary constraint, exogenous to the decision process. However, many decision models in business ethics are based on cognitive moral development theory, in which the law is thought to be the external referent of individuals at the level of cognitive development that most people have achieved. Other theoretical bases of ethical decision models, social learning, and experientialism, also imply a role for law that is rarely made explicit. Law is a more important aspect of ethical decision-process models than it appears to be in the models. This paper will derive explicit roles for the law from the cognition, experientialism, and social learning theories that are used to build ethical decision-making models for business behavior. Sandra Christensen is Professor of Management at Eastern Washington University, where she teaches courses in Business & Society, International Business, and Leadership & Ethics. She has published in Business and Society, Business Ethics Quarterly, the Journal of Business Ethics, and the Academy of Management Review.