Breaking the letter vs. spirit of the law: How the interpretation of contract violations affects trust and the management of relationships

Contract violations are ubiquitous. There has been little attention, however, dedicated to understanding the mechanisms involved in making sense of and addressing such occurrences. Two experimental studies investigated how people interpret contract violations and how these interpretations affect trust and the management of relationships. By drawing on the distinction between violations of the letter versus spirit of the law, we show that letter violations are more difficult to overcome than spirit violations, due to higher perceived intentionality. These effects generalized across different populations, levels of contracting experience, types of contracting contexts, levels of ambiguity within the contract, and degrees of contract complexity. The results yield important implications for understanding contract violations, trust, and organizational responses as a relationship management capability. Copyright © 2014 John Wiley & Sons, Ltd.     

Themes of social responsibility: A survey of three professional schools

Criteria distinguishing the professions from ordinary occupations have traditionally stressed the notion of commitment to a service ethic which implies social responsibility. In this survey of 223 students and faculty of three university professional schools in Canada (Business, Engineering, and Forestry), the extent to which students exhibit awareness of the ethical component in their future work is examined. Particular attention is paid to the structural contradictions inherent in the work context of the salaried professions, especially the ethical dilemmas that arise out of bureaucratic demands to serve organizational goals rather than broader social ends. Jan Mayer (Ph.D. Carleton University, Ottawa Ontario) has taught Sociology at Lakehead University, Thunder Bay, Ontario since 1980, and has conducted extensive empirical research on whitecollar work since 1978. Recent publications include Schooling Never Ends: A Study of Job Promotion among Corporate Office Workers (with Randle Nelsen), in Human Affairs, Vol. 10, 1986.     

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.     

Functional marketing plan development in department store retailing

Retailers are now implementing the types of formal marketing planning programs that have long characterized consumer goods firms. The functional marketing plans that are developed tend to be a year or less in duration. The primary responsibility for developing the plans resides with the general merchandise manager. The planning efforts of the retailing executive, in spite of their short term nature, do reflect an awareness of the importance of understanding the strengths and weaknesses of competitors and of the need to spell out issues involving profit planning, sales promotion planning, merchandise addition/deletion decisions, and issues involving inventory/physical distribution. A variety of marketing plans are developed. Separate plans are developed by merchandise lines in many organizations. The authors wish to express their appreciation to The Conference Board for permission to use the questionnaire, with modifications, underlying research for The Marketing Plan, Report No. 801, The Conference Board, 1981, as the basis for formulating the questionnaire used in this research     

Protectionism, Intellectual Property, and Consumer Protection: Was the Uruguay Round Good for Consumers?

Critics of the Uruguay Round of the GATT have contended that its provisions threaten the ability of individual nations to enact and keep in place strong consumer protection measures. Agreements regarding non-discriminatory treatment and protection of intellectual property, critics believe, undermine important consumer policies designed to promote consumer health, safety, and information. This paper reviews the arguments and evidence regarding the potential of the Uruguay Round agreements to threaten consumer protection. Although the potential for such threats does exist, the record to date does not suggest any significant retreat from consumer protection due to free trade agreements.