Social Constructivism,Mental Models,and Problems of Obedience

There are important synergies for the next generation of ethical leaders based on the alignment of modified or adjusted mental models. This entails a synergistic application of moral imagination through collaborative input and critique, rather than “me too” obedience. In this article, we will analyze the Milgram results using frameworks relating to mental models (Werhane et al., Profitable partnerships for poverty alleviation, 2009), as well as work by Moberg on “ethics blind spots” (Organizational Studies 27(3):413–428, 2006), and by Bazerman and Chugh on “bounded awareness” (Harvard Business Review, 2006; Mind &; Society 6:1–18, 2007) Using these constructs to examine the Milgram experiment, we will argue that the ways in which the experiments are framed, the presence of an authority figure, the appeal to the authority of science, and the situation in which the naïve participant finds herself or himself, all create a bounded awareness, a narrow blind spot that encourages a climate for obedience, brackets out the opportunity to ask the moral question: “Am I hurting another fellow human being?” and may preclude the subject from utilizing moral imagination to opt out of the experiment. We will conclude that these forms of almost blind obedience to authority are correctable, but with difficulty. We will argue that linking the modification of mental models to an unbinding of awareness represents an important synergistic relationship and one that can build effectively on the lessons learned from our experience with moral imagination.     

Assessing financial distress dependencies in OTC markets: a new approach using trade repositories data

In this paper, we study the relationships among financial market sub-segments as a way to identify potential financial distress through increased co-movements among them. To study how sub-markets are mutually co-dependent, we combine granular data on over-the-counter derivatives by trade repositories and the joint probability of distress (JPoD) approach introduced by the International Monetary Fund. We define an indicator that combines several distress drivers and observe that results on co-dependencies are similar to those that would be expected: similarities between financial and contractual terms seem to be responsible for stronger co-movements among sub-markets. However, high values for JPoD even in correspondence of quite dissimilar sub-markets suggest the presence of other drivers that should be investigated in future research. To the best of our knowledge, this is the first empirical study on systemic risk assessment based on micro-founded trade repositories’ data on interest rate swaps.     

The home field advantage: Implications for the pricing of tickets to professional team sporting events

Existing empirical estimates of the elasticity of demand for tickets to professional team sporting events are consistently inelastic, throwing into question the assumption of profit-maximizing behavior on the part of team management. We provide a new theory of team sport ticket pricing, based on the home field advantage, which implies that the elasticity of demand relevant for profit maximization is more elastic than the traditional ceteris paribus elasticity measure. Thus, the inelastic traditional point estimates are not necessarily inconsistent with team profit maximization.     

East meets West: the case of Polish expatriates in the UK

This paper attempts to redress the balance in research on expatriation by exploring the experiences of an under-researched group of expatriates in an under-researched destination. Although there has been an increase in research on the adjustment of expatriates, the focus of IHRM research has, to date, tended to view the expatriation process through a narrow lens, emphasising the role of managers from affluent ‘Western’ countries working in less affluent countries. The growing numbers of multinationals and therefore expatriates from other countries means that the research agenda must be broadened, in this case to the experience of Poles in the UK. By focusing on expatriates from a former socialist economy we highlight the differing motives and experience of adjustment that they face. We show how the economic and social benefits of this East–West transfer can be a powerful motivating factor and may override adjustment difficulties. Furthermore, the analysis of East to West European expatriate transfers, from less to more developed nations, contributes to and widens the range of parent and host countries studied within the realm of expatriate adjustment.     

Customer relationship management in retailing: A content analysis of retail trade journals

The purpose of this research was to increase knowledge and understanding of how retailers use business intelligence and data mining tools to implement customer relationship management (CRM) in retailing. Specific objectives were to (1) identify organization and infrastructure requirements for CRM effectiveness, (2) identify CRM objectives and goals of retail companies, (3) identify data mining tools utilized by retailers to perform CRM functions, and (4) identify CRM strategies used by retail companies. A keyword search within business databases using CRM and CRM identified publications with CRM content. Content analysis was used on articles (N=149) drawn from Stores, Chain Store Age, Harvard Business Review, and Retail Forward over a 5 year period (2000–2005). Selected articles were stored as text files in QDA Miner, a computerized qualitative analysis tool. Key organization/infrastructure needs emerged focusing on data structure, organizational systems, technology structure, and data accessibility. Retailers goals/objectives and strategies focused on marketing, customer service, understanding customers through data analysis and increasing acquisition and retention through customer loyalty programs. Data mining tools identified supported marketing and customer analysis efforts. Findings provide insight into the challenges retailers face as they implement a more customer-centric business strategy.     

The challenge of program evaluation: When increasing program participation decreases the relative well-being of participants

Two goals of food assistance programs are to improve well-being and to increase participation among those in need. Progress in meeting the first goal can be measured by the difference in well-being between participants and eligible non-participants. This gap in well-being though can be affected by progress made toward the second goal of increasing participation rates. In particular, if those with the lowest levels of well-being disproportionately enter the program, the gap can increase. To examine whether this tension between goals exists empirically, we consider the case of the Food Stamp Program and its effect on food insecurity in the United States, using data from the Survey of Income and Program Participation (SIPP). In particular, we use variation in State policies (the change in administrative error rates and the combined value of Temporary Assistance for Needy Families (TANF) and food stamp benefits) to analyze whether increasing participation rates leads to increases in the difference in food insecurity rates. Controlling for other factors, we find evidence of the tension between these two program goals insofar as States with policies which encourage participation have higher differences in the food insecurity rates of participants and non-participants.     

The Communication of Corporate Social Responsibility: United States and European Union Multinational Corporations

This study explores corporate social responsibility (CSR) by conducting a cross-cultural analysis of communication of CSR activities in a total of 16 U.S. and European corporations. Drawing on previous research contrasting two major approaches to CSR initiatives, it was proposed that U.S. companies would tend to communicate about and justify CSR using economic or bottom-line terms and arguments whereas European companies would rely more heavily on language or theories of citizenship, corporate accountability, or moral commitment. Results supported this expectation of difference, with some modification. Specifically, results indicated that EU companies do not value sustainability to the exclusion of financial elements, but instead project sustainability commitments in addition to financial commitments. Further, U.S.-based companies focused more heavily on financial justifications whereas EU-based companies incorporated both financial and sustainability elements in justifying their CSR activities. In addition, wide variance was found in both the prevalence and use of specific CSR-related terminology. Cross-cultural distinctions in this use create implications with regard to measurability and evidence of both strategic and bottom-line impact. Directions for further research are discussed. Laura P. Hartman is a Professor of Business Ethics and Legal Studies in the Management Department in the College of Commerce at DePaul University, as Associate Vice President for Academic Affairs of the University and as Research Director of DePaul’s Institute for Business and Professional Ethics. She is also an invited professor at INSEAD (France), HEC (France), the University of Melbourne, the Université Paul Cezanne Aix Marseille III and the Grenoble Graduate School of Business. She has been published in, among other journals, Business Ethics Quarterly, Business & Society Review, Business Ethics: A European Review, and the Journal of Business Ethics. Robert S. Rubin is an Assistant Professor in the Management Department at DePaul University’s Kellstadt Graduate School of Business. He received his PhD in organizational psychology from Saint Louis University. His current research interests include transformational leadership, leader cynicism, social and emotional individual differences, and management education and development. K. Kathy Dhanda is an Associate Professor at the Department of Management at DePaul University. Her areas of research include sustainable supply chains, environmental networks, marketable permit modeling, sustainable management, and public policy.