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.     

Identity Bias in Negative Word of Mouth Following Irresponsible Corporate Behavior: A Research Model and Moderating Effects

Current research has documented how cases of irresponsible corporate behavior generate negative reactions from consumers and other stakeholders. Existing research, however, has not examined empirically whether the characteristics of the victims of corporate malfeasance contribute to shaping individual reactions. This study examines, through four experimental surveys, the role played by the national identity of the people affected on consumers’ intentions to spread negative word of mouth (WOM). It is shown that national identity influences individual reactions indirectly; mediated by perceived similarity and sympathy. Consumers perceive foreign victims as different from the self and this reduces the sympathy experienced towards them. Sympathy is an emotion that shapes consumer reactions and regulates WOM. The study identifies two moderating processes of this effect. Individuals who score high on collective narcissism are most likely to be strongly biased against foreign victims. In-group bias is also moderated by the perceived severity of the crisis. When a case is perceived as very serious, perceived similarity plays a less important role in generating sympathy because consumers focus on the perceived suffering of the victims. Hence, in-group bias is stronger in cases perceived as having minor consequences. The paper contributes to the literature on corporate social irresponsibility and offers implications for both scholars and managers.     

The Moral of the Story: Re-framing Ethical Codes of Conduct as Narrative Processes

This paper re-frames business ethical codes (BCEs) as narrative processes by reflecting critically on key ontological assumptions underpinning the existing research, and introducing new and relevant concepts based on alternative assumptions. The first section draws on recent decision-making research to develop a theoretical account of BCEs as complex, socially embedded sensemaking processes. The second section addresses the content of codes, and differentiates between narrative and logico-scientific modes of reasoning. The third section focuses on the quality of code communication and identifies several distinct types of narrative process. We provide research directions for how this new understanding of BCEs may be further developed, as well as implications for practitioners. In response to the call for new conceptual models (O’Fallon and Butterfield, in J Bus Ethics 59:375–413, 2005), the paper provides organizational researchers with a more nuanced understanding of how BCEs enable or constrain ethical behavior in organizations.     

Designing Ethical Management Control: Overcoming the Harmful Effect of Management Control Systems on Job-Related Stress

Journal of Business Ethics - Ethical aspects of management control systems (MCS) are attracting increasing attention among scholars and practitioners. Much of the work centers on their aims. We...     

The Effects of Ethical Leadership and Ethical Climate on Employee Ethical Behavior in the International Port Context

This study empirically examined the effects of ethical leadership and ethical climate on employee ethical behavior in the international port context using survey data collected from 128 respondents who worked in Taiwan International Ports Corporation (TIPC) in Taiwan. Research hypotheses were formulated from the previous literature and tested using structural equation modeling. Results indicated that ethical leadership had a significant impact on ethical climate and the ethical behavior of TIPC employees. Ethical climate was found to be positively associated with employee ethical behavior. The theoretical and practical implications of the research findings are discussed.     

Evolution and Applications of the Term Consumerism: Theme and Variations

The term CONSUMERISM has had a variety of meanings over its relatively brief history. Coined in obscurity, the word was given negative connotations by business apologists before finally being adopted by the consumer movement to describe its activities. However, an unrelated and highly prejudicial meaning has been gaining currency. As a result, there are increasing possibilities for misunderstanding and negative responses to the term CONSUMERISM from the public.     

The Ethics of Metrics: Overcoming the Dysfunctional Effects of Performance Measurements Through Justice

The last two decades have seen a great deal of scandals in the business world. Many of them have to do with accounting and management control, but in substantially different ways. This paper focuses on the dysfunctional effects of systems of measurement and incentives, and the possible ways to overcome those dysfunctional effects, achieving a stable state of goal congruence through the introduction of justice in the design and use of management control systems, by contributing to the ethical development within the organization. We first analyze how the discipline of control systems came into being, and show how, in the last decades, both in theory and practice, has gone in a direction of becoming more ‘automatic,’ and then, we provide some case studies of how they are at the origin of many of the scandals. Borrowing from Rosanas and Velilla (J Bus Eth 57:83–96, 2005) and from Cugueró-Escofet and Rosanas (Manag Account Res 24:23–40, 2013), we develop a model of control systems based on justice, where we make the distinction between formal and informal justice. We are then able to show how informal justice is the key element in the dynamics of a control system: to preserve formal justice, or to evolve toward formal justice. In any case, it is a necessary condition to reach a state of maximum goal congruence, stable through time, as a consequence of the ethical development that this type of systems are able to generate.     

The Moderating Impact of Quantitative Information on the Relationship Between Source Credibility and Persuasion: A Persuasion Knowledge Model Interpretation

An experiment manipulated source expertise, source bias, and message format. The findings reveal that expert sources are expected to quantify message claims whereas non-expert sources are not. Persuasion is greater when these expectations are met versus when the source and the message format are incongruent, but only when the source also has self-interest in the advocacy. It appears that source-message incongruity and source bias focus attention on the source and, in combination, lead to negative inferences about the source's manipulative intent. This interpretation is consistent with the Persuasion Knowledge Model (Friestad and Wright 1994).     

Direct and Multiplicative Effects of Ethical Dispositions and Ethical Climates on Personal Justice Norms: A Virtue Ethics Perspective

From virtue ethics and interactionist perspectives, we hypothesized that personal justice norms (distributive and procedural justice norms) were shaped directly and multiplicatively by ethical dispositions (equity sensitivity and need for structure) and ethical climates (egoistic, benevolent, and principle climates). We collected multisource data from 123 companies in Hong Kong, with personal factors assessed by participants’ self-reports and contextual factors by aggregations of their peers. In general, LISREL analyses with latent product variables supported the direct and multiplicative relationships. Our findings could lay the groundwork for justice research from a morality perspective in future.     

Immoral Entrenchment: How Crisis Reverses the Ethical Effects of Moral Intensity

Journal of Business Ethics - Men typically express more willingness than women to perpetrate fraudulent acts like lying in negotiations. However, women express just as much willingness in some...     

Shareholder Value Effects of Ethical Sourcing: Comparing Reactive and Proactive Initiatives

Journal of Business Ethics - With the advent of responsible business, ensuring social responsibility in sourcing is of interest to both academics and practitioners. In this study, we examine one...     

Accounting Student Ethical Perceptions: An Analysis of Training and Gender Effects

This study examined accounting student responses to academic and accounting/business ethical vignettes and examined if gender or formal training in ethics affected their responses. The study also controlled for a student's tendency to respond in a socially desirable manner by including a social desirability response bias instrument as part of the research materials.The results indicate no general differences in responses between the students with and without formal ethical training, or between male and female students. However, comparisons between the academic and accounting/business vignettes revealed that although students perceived the unethical actions discussed in the cases similarly, they indicated they would be more likely to engage in the unethical actions in the accounting/business cases compared to the academic dilemmas.     

Thinking outside the bottle: Effects of alternative wine packaging

Packaging communicates intrinsic product attributes to consumers, which can influence consumer response and decision-making; however, little is known about the impact of non-traditional packaging formats. The current research aims to bridge this gap. Across five studies, we demonstrate that non-traditional packaging negatively influenced purchase intention of a complex product, wine, through product appeal and taste perceptions (Study 1A)/expectations (Studies 1B–4). We also demonstrate that the consumer response to non-traditional packaging is a function of individual differences (desire for unique products) and label attributes (eco-friendly labels).     

增值税改革的负效应及其对策研究——以江苏省为例

在我国进行增值税改革试点的背景下,本文以江苏省的实际情况为例,分析了增值税改革对财政收入、投资和就业等方面可能产生的负效应,认为增值税改革短期内会导致财政收入减少,引发投资需求过旺,增加劳动就业的压力。文章提出,增值税转型改革应分步实施,以减轻财政压力,控制过度投资;慎重对待增值税征税范围的扩大,降低财政对增值税的依赖;规范增值税的税收优惠,积极推行配套改革,完善分税制管理体制,适当扩大地方税权;加强税收征管,缓解增值税转型的财政压力。     

Ethics and Ethos: The Buffering and Amplifying Effects of Ethical Behavior and Virtuousness

Logical and moral arguments have been made for the organizational importance of ethos or virtuousness, in addition to ethics and responsibility. Research evidence is beginning to provide, empirical support for such normative claims. This paper considers the relationship between ethics and ethos in contemporary organizations by summarizing emerging findings that link virtuousness and performance. The effect of virtue in organizations derives from its buffering and amplifying effects, both of which are described.     

The Effects of Proximity and Empathy on Ethical Decision-Making: An Exploratory Investigation

The goals of this research were to (1) explore the direct effects of and interactions between magnitude of consequences and various types of proximity – social, psychological, and physical – on the ethical decision-making process and (2) investigate the influence of empathy on the ethical decision-making process. A carpal tunnel syndrome vignette and questionnaire were administered to a sample of human resource management professionals to test the hypothesized relationships. Significant relationships were found for the main effects between magnitude of consequences and principle-based evaluation, cognitive empathy and principle-based evaluation, and empathy and moral intention. Physical proximity moderated the relationships between magnitude of consequences and utilitarian evaluation as well as magnitude of consequences and moral intention. Cognitive empathy moderated the relationships between magnitude of consequences and principle-based evaluation and physical proximity and utilitarian evaluation. Affective empathy marginally moderated the relationship between physical proximity and principle-based evaluation. Future research directions, management implications, and strengths and weaknesses of the research are discussed.     

Ethical Stances: the Perceptions of Accountancy and HR Specialists of Ethical Conundrums at Work

This paper explores how managers and professionals from two functional areas, finance and accountancy and human resource management, perceive, think about and act upon ethical conundrums at work. The study is based on 43 interviews in which respondents were asked to report on ethical issues and incidents they had experienced at work. A conceptual framework is presented which is used to analyse the critical incidents.     

Effects of Negative Brand Information: Measuring Impact of Celebrity Identification and Brand Commitment

ABSTRACT

This study investigates the relationship between negative brand publicity and a celebrity endorser. First, it explores whether identification with a celebrity moderates the relationship between negative brand publicity and evaluation of a celebrity endorser and a brand. Second, it delves into whether consumers’ brand commitment moderates the relationship between negative brand publicity and evaluation of a celebrity endorser and a brand. And the study poses the research question, “Does negative brand information impact consumer evaluation of a celebrity endorser, a brand, and purchase intention?” A 2 × 2 between-subject factorial design was used to test the proposed hypotheses. The two factors are level of identification with a celebrity endorser (low or high identification) and level of brand commitment (low vs. high brand commitment). The study found that negative brand publicity had negative impacts on the celebrity endorser, brand evaluation, and purchase intention.     

丧失和超越：寻求老龄政策的理论支点

提出了“丧失是老龄化根本挑战”的观点,并从超越的角度讨论了老龄政策设计的若干重要问题:一是老龄政策的基本依据应该是老年需求理论,二是建设性的老龄政策需要高度重视老年人发展性需求和价值性需求的满足和实现问题。超越丧失的力量源泉在一定程度上恰恰蕴藏在老年人群的身上,所以满足老年高级需求,开发老年人力资源,促进老年社会发展,意义十分重大。