Leader Ethical Decision-Making in Organizations: Strategies for Sensemaking

Organizational leaders face environmental challenges and pressures that put them under ethical risk. Navigating this ethical risk is demanding given the dynamics of contemporary organizations. Traditional models of ethical decision-making (EDM) are an inadequate framework for understanding how leaders respond to ethical dilemmas under conditions of uncertainty and equivocality. Sensemaking models more accurately illustrate leader EDM and account for individual, social, and environmental constraints. Using the sensemaking approach as a foundation, previous EDM models are revised and extended to comprise a conceptual model of leader EDM. Moreover, the underlying factors in the model are highlighted—constraints and strategies. Four trainable, compensatory strategies (emotion regulation, self-reflection, forecasting, and information integration) are proposed and described that aid leaders in navigating ethical dilemmas in organizations. Empirical examinations demonstrate that tactical application of the strategies may aid leaders in making sense of complex and ambiguous ethical dilemmas and promote ethical behavior. Compensatory tactics such as these should be central to organizational ethics initiatives at the leader level.     

Growing market concentration and changes in consumer welfare: The case of the U.S. commercial airline market

Initial assessments of the economic deregulation of the U.S. airline industry indicated that most consumers gained from the increased competition in the airline market. More recent studies have reached less favorable conclusions. In this study, changes in passenger welfare are determined for 19 U.S. destination cities for the years 1979, 1983, and 1987 on the basis of Hicks' equivalent variation measure, using a counterfactual research design. Particular attention is given to variations in consumer welfare gains/losses depending on (a) the proportion of the change in air fares attributed to deregulation, and (b) the destination airport's classification. The estimates suggest that travelers to large, long-standing hub cities were generally insulated from any large post-1979 welfare changes. Travelers to new hubs experienced substantial welfare declines between 1979 and 1987 — although their post-1983 welfare changes were uniformly positive. Travel to nonhub airports showed the greatest variance, with both the relatively largest welfare gains and the relatively largest losses.     

The Economics of Grain Cleaning on the Prairies

In the Canadian grain marketing system, grains have typically been cleaned to very tight levels at port elevators. In recent years, changes in rail rates, livestock production and grain handling technology are pressuring the system for change. A mathematical programming model of vertical marketing functions in western Canada is developed to determine optimal locations for cleaning. Cleaning margins are positive in all regions of the prairies. Grain cleaning is found generally to be more efficient on the prairies than at the ports. However, grain cleaning will continue at ports to some extent because of inadequate capacity at country positions and sunk costs at port facilities and because primary elevators will likely clean only the dominant grains. Dans le système canadien de commercialisation des céreales, les grains passent généralement par un nettoyage très rigoureux aux silos portuaires. Ces dernières années, les changements affectant les tarifs ferroviaires, les productions animales et la technologie de manutention des céréales rendent cependant nécessaire un changement du système. Les auteurs utilisent un modéle mathématique de programmation des fonctions verticales de mise en marché pour déterminer les emplacements idéaux pour le nettoyage du grain. Les marges commerciales des nettoyeurs étaient positives dans toutes les régions des Prairies et le nettoyage était généralement plus efficient dans cette partie di pays qu'aux situations portuaires. Il continuera cependant à sefaire à ces derniers endroits dans une certaine mesure, en raison du manque de capacités suffisantes aux emplacements de campagne, des coûts irrécupérabies aux installations portuaires et du fait que les élévateurs primaires ne nettoieront vraisemblablement que les céréales commercialement le plus importantes.