Business Ethics

There is an important research tradition concerning the financial implications of social and environmental ethics. This study investigates the short- and long-term financial performance of ventures with explicit environmental commitments seeking to raise funds in equity crowdfunding (ECF) markets. Our results indicate that environmental orientation positively influences short-term funding performance, though only when accompanied by the costly signal of robust corporate governance mechanisms. In the long run, environmental orientation also positively impacts performance, albeit with only weak statistical significance when observed (...) alone. Governance again serves as a positive moderator, but its effect is less significant relative to the short term. However, environmental orientation does feature a strongly significant positive impact on long-run performance when combined with a successfully conducted initial ECF campaign. (shrink)

This anthology aims to explore the current Norwegian context of implementation of Responsible Research and Innovation (RRI) and Corporate Social Responsibility (CSR),as well as the challenges and fragilities associated with it. It is grounded in the experience of a networking and learning centre called AFINO (acronym for‘ Ansvarlig Forskning og Innovasjon i NOrge’, or Responsible Research and Innovation in Norway),to which most of the authors of this book are affiliated. Whether the authors are trying to illustrate a fragility or challenge, (...) to understand its origins, or to illustrate how they have been tackled or how things developed in unexpected ways that raise new fragilities and questions, we believe that all chapters contribute to bringing to light the richness of the domains of research, innovation, policy, and business. (shrink)

Attempts to steer research, innovation and business in desirable directions have failed to meet expectations. Corporate social responsibility (CSR) and responsible research and innovation (RRI) seem to be losing ground, while the challenges they sought to address remain. Despite their shortcomings, these concepts remind us of the need to take responsibility for what we as researchers and entrepreneurs bring into the world, and to keep questioning the given framework. -/- Drawing from the experience of the AFINO project, a unique attempt (...) to bring together RRI and CSR and to promote networks, learning and skills building in Norway, this book contextualises and explores the practical challenges of actualising responsible practices even in the propitious Norwegian context. Readers interested in RRI, CSR, transdisciplinarity, and in the governance of research and innovation will find extensive information and insights about the challenges of steering research and business practices towards desirable ends and how to address them. -/- This book is unique in bringing together the perspectives of Responsible Research and Innovation and Corporate Social Responsibility. Draws from the unique experience of the AFINO research centre and network. (shrink)

This study explores the evolution of business ethics education in Estonia, examining its integration into higher education curricula and its alignment with contemporary societal needs. Drawing from qualitative research, including interviews and focus group discussions with business educators, trainers, and corporate representatives, the paper highlights the importance of key ethical issues such as corporate governance, corruption, human rights, and sustainability. The findings reveal that Estonian business ethics education has evolved significantly, adapting to global trends and local challenges. Participants emphasized the (...) importance of fostering ethical awareness among future business leaders to address pressing ethical dilemmas in today’s rapidly changing business environment. Despite progress, concerns about greenwashing and the ongoing challenges in promoting genuine ethical practices were acknowledged. The paper concludes by outlining the need for further integration of ethics across all business education and training programs, aiming to shape responsible business practices in Estonia and beyond. (shrink)

Unprecedented runaway climate change and ecological degradation is argued to be caused by the dominant capitalist mode of production’s reliance on endless economic growth and capital accumulation. Businesses and organisations are expected to act in an ecologically and socially ethical way to help avert the crisis. Yet, there has arguably been little progress in this direction. The conventional ethical frameworks are generally subsumed under capitalism’s reliance on growth that effectively delegate business ethics to a peripheral and, often, contradictory pursuit, insufficient (...) to influence ecologically and socially sustainable business conduct. We therefore explore an alternative approach by operationalising business ethics through organisational values from a post-growth perspective. By analysing the case of a social cooperative, we highlight how post-growth organisational values emerge through the organisation’s history, the members’ experience, and active contrasting to the dominant capitalist value systems. We contribute to business ethics scholarship by highlighting the potential of post-growth organisational ethics and values in creating contrasts to the dominant capitalist values. Our research further contributes to sustainability scholarship, particularly post-growth perspectives, by highlighting that organising through post-growth values in contrast to the dominant economic system is not only possible, but essential to achieve sustainability. Ultimately, our research illustrates the need for political engagement in upholding organisational ethics, in the face of the ecological crisis. (shrink)

The Ireland Report is based on in-depth interviews, in person or online, with representatives from 10 university business schools and 6 business and professional training organisations. Terminology and key recurring concepts, focus areas of business ethics, themes in teaching, training and research in business ethics, and what are considered to be major business ethical concerns in the next five years—all point to the growing importance of the topics of sustainability, climate change, diversity, responsible management and leadership, business and society and (...) the digital revolution in university business schools and professional training organisations, reflected in their in teaching, training and research activities. In university business schools, the Principles of Responsible Management Education (PRME) and UN Sustainable Development Goals (SDGs) feature strongly, as does an awareness of conforming to standards for the sake of accreditations. While it is not without its challenges and cynical resistance, in general, it is accepted that ethical issues cannot be ignored and have to become an inherent part of universities business schools myriad activities and professional business training organisations to remain relevant. (shrink)

This article explores the evolution of business ethics in Ukraine over 32 years of independence, highlighting the intersection of socio-economic transformation, legal frameworks, and business culture. The study identifies key influences, including anti-corruption laws and competitive fairness initiatives, while showcasing the impact of public organizations like the Ukrainian Network of Integrity and Compliance (UNIC). The role of education, particularly the inclusion of business ethics in Ukrainian higher education since the late 1990s, is analyzed through academic curricula and literature. Insights from (...) the Global Survey of Business Ethics (GSBE) reveal gaps between academic theory and business practice, as well as emerging ethical priorities shaped by Ukraine’s post-war recovery. The article emphasizes the significance of compliance, integrity, and corporate social responsibility as essential components of modern business ethics. Recommendations include strengthening academic-business collaborations and integrating practical case studies to bridge theoretical and applied/business ethics. (shrink)

This study explores how the prior unethical behavior of institutional investors impacts the corporate social responsibility (CSR) activities of the companies in which they invest. To identify such behavior, we focus on violations of laws and regulations by Registered Investment Advisers as reported to the Securities and Exchange Commission. Our findings reveal that these investors discourage firms’ engagement in CSR activities within their investee firms, which we attribute to institutions’ disregard for social norms. Our inferences remain unchanged with alternative identification (...) strategies and more stringent definitions of unethical behavior, suggesting that endogeneity bias and construct validity issues do not explain our baseline results. Additionally, we find that statements by these investors in support of CSR initiatives appear hypocritical, as they fail to mitigate the negative consequences of their ownership on CSR activities. Overall, our study suggests that institutional investors’ prior unethical behavior influences their governance activities, generating negative social externalities. (shrink)

Using a novel Chinese gambler conviction database to proxy the local gambling preference, we examine the impact of gambling preference on the disclosure of key audit matters (KAMs). Our findings suggest that the number of KAMs is significantly greater for firms in cities with a strong gambling preference than for firms in cities with a weak gambling preference. Our results are consistent with the view that firms located in areas with a sin culture may improve the quality of their financial (...) reports to overcome their stigmatized image. Additional analysis suggests that large audit firms, shorter audit terms, and closer audit-client distance strengthen the positive relationship between the gambling preference and the disclosure of KAMs. Namely, audit firms with a good reputation, strong independence, and information advantages play a more significant role in “destigmatization”. Finally, we show that auditors charge more audit fee and exert more audit effort towards clients located in areas with a strong gambling preference. This finding suggests that attempts by firms that are affected by a sin culture to achieve “destigmatization” by improving the quality of their financial reports are also costly. (shrink)

We examine the influence of human resource (HR) slack, specifically that accrued through employee overtime, on firm innovation in China. Leveraging textual analysis to gauge overtime levels, our findings reveal that although overtime increases innovation output, it does not enhance its quality. These results remain consistent even in firms with research and development personnel slack or those offering higher salaries. Additionally, no significant differences are observed between state-owned and non-state-owned firms in terms of overtime’s impact on innovation. Furthermore, the effect (...) of employee overtime on innovation output is less pronounced in the manufacturing and labor-intensive industries. Our study suggests that governmental leniency towards corporate infringement of employee rights does not sufficiently boost firm competitiveness. This research contributes to the understanding of the economic implications of widespread employee overtime in emerging economies, offering valuable business ethics and policy insights for managers and regulators addressing the fundamental working hour practices. (shrink)

We derive and estimate a production function for microfinance institutions to provide empirical evidence of the ethical dilemma of balancing social and financial logics in hybrid organizations. A worldwide panel dataset of microfinance institutions is utilized and a production function augmented by average loan size is estimated using the control function approach. We show how this framework can be used to quantify the tradeoff between social outreach and financial sustainability in relation to the expansion of microfinance institutions’ credit operations. The (...) study reveals that expanding the extensive margin (increasing the number of loan clients) requires on average more than twice as many inputs as expanding the intensive margin (increasing the average loan size) to achieve the same growth in assets. Beyond the case of microfinance our production function illustrates that as hybrid organizations expand, they will inevitably face an ethical dilemma as the laws of economic efficiency exert pressure on their social missions. (shrink)

Using a unique dataset of deceased certified public accountants (CPAs) in China, we document that auditors who have experienced the death of a peer CPA from the same office are less likely to issue modified audit opinions, indicating impaired audit quality. Accordingly, we argue that heightened death awareness and corporate social responsibility (CSR) awareness, triggered by the death of a work peer, lead to death anxiety, intrinsic-value pursuit, and reduced commitment to the employer, thereby hindering both work ability and work (...) commitment during the audit process. Moreover, the power of peer death is amplified by both self-relevance and self-exposure to deaths perceived by living auditors. Since most of the deceased CPAs in our sample are not signing CPAs who lead audit projects, our results illustrate the significant negative impact of peer death on work performance at the rank-and-file employee level. As employee deaths are frequently linked to the prevalent burnout culture and show a growing trend in recent years, our findings timely reveal the economic costs of the toxic workplace environment. This practically implies the critical importance of promoting a safe and healthy working environment ex ante and providing appropriate bereavement support for employees affected by a colleague’s death ex post. (shrink)

The goal of our work is to explore and highlight factors that contribute to positive experiences of Black employees. To accomplish this, we integrate behavioral ethics research into the Black scholarship literature. Specifically, we focus on the role of ethical leadership. We leverage signaling theory to explain the Black cultural implications associated with ethical leadership and how ethical leaders create racially just workplaces. Across three studies (i.e., one cross-sectional field study and two experimental vignettes), we demonstrate that ethical leadership operates (...) as a welcoming signal for Black employees, which positively impacts Black employees’ evaluations of psychological diversity climate. By cultivating Black employees’ evaluations of psychological diversity climate, Black employees are more likely to be engaged and are less likely to be ostracized in the workplace, which are key indicators of a racially just workplace. Theoretical and practical implications are discussed. We conclude with limitations and future research ideas. (shrink)

A citizens’ movement in Berlin advocates for the expropriation of housing corporations and has won a significant majority in a popular referendum in September 2021. Building on this proposal, this paper develops a general account of expropriation as a measure for corporate reform and thereby contributes to the ongoing debate on the democratic accountability of business corporations. It argues that expropriation is a valuable tool for intervention in a dire situation in some economic sector to enable a re-structuring of the (...) governance of the assets in question. Compared with other tools available, expropriation is a more forward-looking, genuinely political measure that does not depend on the legal assignment of guilt but rather proceeds in a pragmatic and problem-oriented manner. It also allows us to reconsider in how far the market mechanism should be employed in the administration of assets. Objections from private property rights against expropriation fail as corporations generally are privileged, quasi-public institutions that can justifiably be subject to democratic interventions. Expropriation is thus an important addition to the arsenal of corporate reform proposals, especially for those concerned with a broad democratization of the corporation. (shrink)

In the Anthropocene era, the coexistence with other species and wildlife has become an ethical imperative but continues to face challenges due to anthropic pressures and anthropocentrism. Drawing from my experience as an NGO volunteer assisting sheep farmers in France to coexist with wolves, I employ ethnographic methods to explore the ethics of multispecies coexistence. More specifically, I examine how wolves are socially constructed as entitled, or not, to coexist in spaces of encounter. Considering space as a matrix that shapes (...) ethical relations, the analysis draws on posthumanist theory and other-than-human geography. The findings highlight how the ethics of coexistence are conditioned by the undoing of the predation/production and wolf/farmer dichotomies, which involves a social production of space in three distinct ways. Firstly, there is a production of the spaces of coexistence to encompass broader relationships with the wolf that extend beyond farmers and redefine the moral impact of the wolf. Secondly, the spatiality of sheep, wolves, dogs, and farmers is produced to blur the constitution of sheep as wolf victims and wolves as ruthless killers. Thirdly, the negotiation of space between species is produced as an ethical practice. This article contributes to the growing field of organizational posthuman ethics and biodiversity conservation by demonstrating how space, species, and ethics are interconnected. It further delineates the contours of coexistence as an ethical practice. (shrink)

Ethical sourcing is a crucial issue for the fashion industry, which is under intense pressure to build ethical and responsible supply chains. Despite its importance, we know little about how individual employees working in the fashion supply chain view ethical sourcing and the ethical considerations they encounter during their work. We adopted the moral agency theory to address these lacunas and conducted a longitudinal qualitative research study. We collected data from a highly heterogenous sample of employees based in the United (...) Kingdom through open-ended essays in three waves (N1 = 50, N2 = 43, N3 = 30) over 9 months that were analyzed using the grounded theory method. The analysis revealed the following themes: a contemporary outlook on boundaries, external considerations, and three levels of action for ethical considerations: Supplier, organization, and employee (i.e., individual). We offer a revitalized view of ethical sourcing as a concept from a practice perspective and discuss critical ethical issues that affect employees’ moral agency to enact ethical sourcing decisions. Our findings offer insights into avenues to advance theoretical knowledge through a comprehensive framework derived from our results. We also propose significant practical implications to promote the widespread integration of ethical sourcing. (shrink)

This article seeks to challenge existing understandings of good work. It does so through a critical exploration of recognitive and craft conceptions of work, which are among the richest and most philosophically nuanced of extant accounts. The recognitive view emphasises work’s recognitive value through the social esteem derived from making a valuable social contribution. But by making recognition foundational, it is unable to appreciate the irreducible ethical significance of the objective quality of one’s work activity. The ‘craft ideal’, by contrast, (...) promises to provide a powerful basis for understanding the importance of rich, rewarding, and morally educative activities, but is undermined by a laudable but misdirected egalitarian impulse which prevents it from being able to properly distinguish good from bad work. One underlying aim of our discussion is to provoke deeper reflection from business ethicists regarding what we might want from an account of good work. (shrink)

What do consumers do with their used clothing, books, and children’s toys? In this research, we introduce metaphoric “fresh start” messaging as an effective tactic to encourage consumers to engage in environmentally sustainable actions of donating used products for remanufacture or reuse. Drawing on conceptual metaphor theory and construal theory, we contrast metaphoric “fresh start” messaging with dominant “reduce waste” and “recycle” non-metaphoric environmental messages. Across six experimental studies, metaphoric “fresh start” messaging is more effective in increasing environmentally sustainable actions, (...) including used product donations and donation intentions. The effectiveness of metaphoric “fresh start” messaging is grounded in its activation of abstract thinking as “rebirth associations,” thoughts around new beginnings, renewal, and new life. We examine the effectiveness of metaphoric “fresh start” (vs. non-metaphoric environmental) messaging with the use of “fresh start” temporal landmarks (New Year’s Day and Earth Day) and find that metaphoric “fresh start” messaging, with or without these temporal landmarks, is more effective in triggering abstract thinking as “rebirth associations.” Our work substantiates the power of metaphoric “fresh start” messaging in encouraging consumers’ environmentally sustainable actions and has significant implications for the use of conceptual metaphors in marketing messages. (shrink)

This Special Issue examines ethics in fashion to further critical understanding of the various drivers and barriers, nuances and layers of complexity in fashion production, marketing, and consumption, and aims toward a more future-oriented perspective through the lens of ethics. Research on ethical issues in fashion is growing but is fragmented across diverse domains, from supply chain and operations management, to psychology and sociology, to marketing and consumption. Furthermore, there has been only a peripheral focus on ethics and limited application (...) of ethical theories or frameworks to fashion’s ethical dilemmas. This Special Issue brings together diverse domains and unpacks salient ethical issues using the lens of ethical theories and frameworks to advance theory development on balancing social justice with environmental responsibility, decision-making in ethical situations, and newer forms of greenwashing and consumerism. The selected papers use varied methodologies and offer novel insights across different global contexts. (shrink)

Despite a strong investor and social demand for firms to disclose information on political connections, mandatory disclosure requirements face considerable opposition. Given the challenges in enforcing mandatory disclosures, we investigate whether private information acquisition can be a viable alternative to disclosure. Using a setting of corruption investigations, we find that investors, on average, are not aware that the firms they have invested in have connections with the officials under investigation, suggesting a lack of visibility of the connections. However, a small (...) number of institutional investors exploit their private access to information and sell their shares in response to the investigations. We also show that the high costs of information acquisition and a lack of incentives for analysts to disseminate sensitive information they have obtained contribute to this lack of visibility and result in a significant delay in retail investors’ reaction to material information. Our study contributes to the debate on mandating disclosure of political connections by showing that the lack of mandatory disclosure results in an uneven playing field that undermines transparency and fairness. (shrink)

Global shortages of healthcare workers, particularly nurses, have been exacerbated by the COVID-19 pandemic, putting significant pressure on healthcare systems worldwide. According to the International Council of Nurses (ICN), 13 million additional nurses are urgently needed to meet global demand. Nurses, who are the backbone of patient care, have faced unprecedented ethical dilemmas, particularly in intensive care units (ICUs), where resource allocation, such as ventilator management and triage decisions, often conflict with basic ethical principles. This study seeks to contribute to (...) the literature by examining the effect of the ethical dilemmas experienced by ICU nurses during COVID-19 pandemic on emotional exhaustion and turnover intention and testing whether emotional exhaustion has a mediating role on the relationship between ethical dilemma and turnover intention. The research model was tested with partial least square structural equation modeling (PLS–SEM) in the package program SmartPLS. The bias-corrected bootstrapping (resampling) method was applied to the sample of 189 nurses who work in the intensive care units in the hospitals in the East Black Sea Region of Türkiye. The research results indicated that ethical dilemma is positively associated with emotional exhaustion (β = 0.305, 95% CI [0.167–0.407]), and turnover intention (β = 0.156, 95% CI [0.146—0.423]). In addition, emotional exhaustion has a complementary partial mediation effect (B = 0.149, 95% CI [0.083–0.215]) between ethical dilemma and turnover intention among ICU nurses. (shrink)

This is a conversation with Ghislain Deslandes, author of a dozen books addressing various issues in the field of the philosophy of management. Our dialogue traces his intellectual journey, starting with the interpretation of antiphilosophy and further exploring how it is applied in organizations and management practice. The conversation concludes with a discussion of his latest book about postcritical management studies.

This is a book review of Postcritical Management Studies, by Ghislain Deslandes, published in 2023 by Springer.

Bounded rationality presents a challenge to the notion that virtue is a capacity for knowledge, suggesting that judgments concerning the salience of specific facts are, in some cases, an indication of one’s incapacity to appreciate the full range of normatively salient facts. This problem can be mitigated by linking an account of the virtues with a theory of organizations. From this perspective, virtue is inherently shaped by the norms structuring one’s role(s) and is linked to the complementary set of roles, (...) that is, the organization, in which one is participating through the virtues of loyalty and obedience. Within this perspective, human cognitive limitations are made to be strengths, allowing one to focus on a narrow set of reasons for action linked with one’s role to better achieve salient aims as a member of the organization than one could as an isolated individual. (shrink)

Evidence-based Management (EBMgt) and Evidence-Based Management + (EBMgt +) are two approaches to management according to which managerial decisions should be based on the best available evidence, as this increases the likelihood of their effectiveness. In these approaches, four types of evidence are considered: evidence from the scientific literature, from practitioners, from the organisation and from stakeholders. In EBMgt +, evidence is characterised as a three-place relation between information, a claim and a method. In many circumstances, probability sampling methods (PSMs) (...) are the best methods to gather the abovementioned types of evidence. We present a case study concerning harassment in the workplace to illustrate a circumstance in which fact-finding methods, rather than PSMs, are the best methods to gather evidence. We argue that information thus gathered should count as evidence in the spirit of EBMgt +. However, while part of the evidence needed in the case study comes from the stakeholders, it does not fit the characterisations of ‘evidence from stakeholders’ considered in EBMgt and EBMgt +. Therefore, we disentangle sources and types of evidence which, in turn, enables us to characterise a new type of evidence – testimonial evidence – that should be included in the theory of evidence-based management. Differentiating between sources and types has the potential to bring theory and practice closer together, whereas including testimonial evidence has the potential to make the theory of evidence-based management applicable in a wider range of circumstances, such as trade secret theft and conflicts of interest. (shrink)

This paper employs Axel Honneth’s recognition theory to interpret ‘quiet quitting’ – the practice of limiting work efforts to contracted requirements – as a strategic response by workers facing misrecognition in their work environment. Honneth argues that misrecognition in any one of three social spheres (the family, political society, and the workplace) constitutes disrespect and causes psychological harm. While Honneth contends that experiences of disrespect tend to motivate collective “struggles for recognition,” we suggest that quiet quitters present an alternative response (...) to disrespect, individually seeking recognition in other social spheres rather than engaging in collective action. Further, we draw on Honneth to suggest that the contemporary “entrepreneurial” work ethic – the widespread expectation that workers invest emotionally in their work role – can in practice undermine workplace recognition, contributing to quiet quitters’ compensatory emphasis on recognitive relations outside of work. This recognition-theoretical approach extends current discussions around quiet quitting and yields valuable insights for management theory and practice regarding the critical role of genuine employee recognition in promoting individual well-being and meaningful work experiences. (shrink)

This paper critiques the concept of resonant leadership which focuses on utilising emotional intelligence in managing an organisation. It is argued that the prevailing understandings of resonant leadership over-emphasise individual attributes and neglect the social processes of communication. This article proposes a re-conceptualisation of resonant leadership by drawing on pertinent principles from the Chinese classic Huainanzi (The Master of Huainan). Instead of linking resonance to emotional intelligence, ancient Chinese thinkers interpret the former as pre-existing mutual responsiveness (xiangying) that contributes to (...) synchrony, cooperation and harmony. A resonant leader promotes mutual responsiveness by modelling it and sustaining the conditions for people to (re)act and flourish according to the Way (dao). This study provides an original formulation of resonant leadership that shifts the attention from the creation and development of resonance by an emotionally attuned leader or manager, to the recognition and preservation of resonance by leaders, managers and other employees through interactive processes in an organisation. The proposed conception also illustrates a hybrid orientation of relationship-focused leadership styles that integrate key elements from the entity and relational perspectives at the workplace. (shrink)

In the context of increasingly frequent climate-related disasters, this article examines whether and how private sector actors can participate in disaster response and work closely with established authorities. We adopt the concept of territoriality from human geography to explain why actors in authoritative positions may exclude others from participation even when they present a clear value proposition. Grounded in an in-depth case study of a local private sector organization in Vanuatu, we identify three relational dynamics between a private sector organization (...) and sovereign authorities in disaster response. We observe that mutually defined collaboration fosters pragmatic legitimacy for private actors. Private actors’ unilateral role expansion in search of moral legitimacy, however, threatens sovereign authorities. This threat leads to a collaboration deadlock as sovereign actors reinforce a traditional division of labor between sectors and delegitimize the private actor’s participation. Our study contributes to the literature on cross-sector social interactions (CSSI) by explaining how authority constrains cross-sector collaboration and how private actors can gain and lose legitimacy for such collaborations. We further explore the tensions that arise when private actors use crises as windows of opportunity for showcasing the societal value of their participation. We conclude by offering practical recommendations for enhancing private sector participation in disaster response. (shrink)

Leaders are often faced with the dilemma as to how to respond to employee misconduct. However, scholarly accounts of leader actions in such situations have primarily focused on punishment as a mechanism for dealing with employee misconduct. Leader leniency, an alternative response that is often adopted in practice, has been largely overlooked. Consequently, in order to provide a more complete account of leader responses to employee misconduct and to clarify whether leader leniency is effective, we investigate the potential double-edged influences (...) of leader leniency on employee task performance. Specifically, we propose that leader leniency inhibits employee task performance through the mediating role of psychological entitlement, while it also has beneficial effects on employee task performance through the mediating role of servant leadership perception. Moreover, trait moral disengagement serves as a vital boundary condition, which amplifies the negative influence of leader leniency through psychological entitlement and simultaneously mitigates its positive effect through servant leadership perception. Results from an experience sampling study and a scenario-based experiment supported our hypotheses. Our work highlights the mixed blessing of leader leniency and clarifies when and how leader leniency rehabilitates wrongdoers or instead propels them to further down the path of misconduct. (shrink)

Deferred prosecution agreements (DPAs) are legal means, alternative to trial, for the resolution of criminal business cases. Although DPAs are increasingly used in the US and are spreading to other jurisdictions, the ethics of DPAs has hardly been subjected to critical scrutiny. We use a multidisciplinary approach straddling the line between philosophy and law to examine the ethics of DPAs used to resolve cases of multinational enterprises’ (MNEs) foreign corruption. Deontologically, we argue that the normativity of DPAs raises critical concerns (...) related to the notion of justice as punishment, with serious cases of international corruption resolved with minimal retribution for offending MNEs. Taking a utilitarian ethical perspective, we also evaluate the effect of DPAs on MNEs’ tendency to self-regulate or re-offend. Our conclusion, supported by critical analysis of the juridical literature and case evidence on MNEs’ recidivism, is that DPAs do not foster ethical behavior. (shrink)

In the shadow of various business scandals and societal crises, scholars and practitioners have developed a growing interest in authentic leadership. This approach to leadership assumes that leaders may access and leverage their “true selves” and “core values” and that the combination of these two elements forms the basis from which they act resolutely, lead ethically, and benefit others. Drawing on Heidegger’s work, we argue that a concern for authenticity can indeed instigate a leadership ethic, albeit one that acknowledges the (...) unfounded openness of existence and its inherent relationality. On this basis, we propose an ethics-as-practice approach in which leaders respond to the situation at hand by being “attuned to attunement,” which cultivates an openness to otherness and a responsibility to others. (shrink)

Drawing on early work on ethical leadership, we argue that when leaders engage in leader moral hypocrisy (i.e., ethical promotion without ethical demonstration), followers can experience psychological reactance—a negative response to a perceived restriction of freedom—which can have negative downstream consequences. In a survey of employee–manager dyads (study 1), we demonstrate that leader moral hypocrisy is positively associated with follower psychological reactance, which increases follower deviance. In two subsequent laboratory experiments, we find similar patterns of results (study 2) and explore (...) potential alternative mechanisms (study 3). We demonstrate in a final experiment with working adults that the relationship between leader moral hypocrisy and psychological reactance is partly explained by increased perceptions of a leader’s use of power (study 4). We discuss the implications of our findings and advocate for further understanding of the risks associated with psychological reactance in response to leaders and other workplace situations. (shrink)

The existing literature provides conflicting evidence of whether a collectivistic value orientation is associated with ethical or unethical behavior. To address this confusion, we integrate collectivism theory and research with prior work on social identity, moral boundedness, group morality, and moral identity to develop a model of the double-edged effects of collectivism on employee conduct. We argue that collectivism is morally bounded depending on who the other is, and thus it inhibits employees’ motivation to engage in unethical pro-self behavior, yet (...) strengthens their motivation to engage in unethical pro-organization behavior. We further predict that these effects are mediated by the psychological mechanism of organizational goal commitment and moderated by a person’s strength of moral identity. Results of three studies conducted in China and the United States and involving both field and experimental data offer strong support for our hypotheses. Theoretical and practical implications of the research are discussed. (shrink)

This article develops a liberal theory of the virtues in business. I first articulate two key liberal values embodied within market society: self-authorship and mutual benefit. Self-authorship is a mode of autonomy given expression through the effective exercise of economic liberties. Mutual benefit involves the intentional pursuit of the well-being of one’s transaction partners within economic exchange. These values are uniquely realized, I argue, within business, conceptualized as a distinct, firm-level, social practice. More specifically, individuals realize self-authorship by purposively integrating (...) cospecialized resources, forms of knowledge, and business functions to facilitate mutually beneficial transactions. Through their commitment to mutual benefit, businesspersons establish ongoing, cooperative relationships with customers, members of other firms, and various stakeholders more generally. These relationships are constitutive of a distinct liberal notion of the common good. The practice of business and the common good in a market society are sustained by a range of individual-level virtues. I recount these virtues and, before concluding, discuss several other theoretical implications of this account. (shrink)

Research on the legitimacy of multi-stakeholder initiatives (MSIs) continues to thrive, however, the vague distinction between descriptive and normative legitimacy seems to cause growing confusion. In our paper, we identify three problems in the literature on MSI legitimacy: lack of precision regarding which of the two forms is used; blurring of boundaries between them; and ambiguity of assessment when assessing MSI legitimacy with the help of fine-grained criteria. These three problems, we argue, are not only detrimental to construct clarity but (...) they can also lead to an erosion of normativity, by which we mean the increasing lack of normative grounding or (unintentional) deconstruction of the normative elements of legitimacy. We introduce a framework that addresses these three problems, ultimately demonstrating how scholars can use the concept of MSI legitimacy in a manner that enhances construct clarity and avoids erosion of normativity. (shrink)

In this article, the author presents the results of the research conducted in the framework of GSBE 2022–2024 on business ethics education in Romanian universities. The courses tought in universities cover key topics such as: ethics and morality; social responsibility; ethics in new technologies; corruption; human rigghts. Respondents to the survey identified as important topics for the coming years issues such as: risk related to digitalization; influencing the media; business ethics and artificial intelligence; responsibility of technology companies for the effects (...) of the technologies they bring to market. The research has shown that in the Romanian universities, which appear for the first time in the GSBE analysis, business ethics education is present at both bachelor and master level. There are also local researches that have been published in the world’s leading academic journals. (shrink)

Existing research primarily focuses on negative gossip among peers at the same hierarchical level, often overlooking the impact of such gossip when it comes from supervisors about subordinates with rank differences. Our study investigates subordinates’ varying reactions to negative supervisor gossip, exploring the role of attribution-based boundary conditions and rumination-driven mechanisms. Results from a two-wave, two-source field study show that subordinates with a negative attribution style perceive negative supervisor gossip as an indirect and covert harm, leading to affective rumination and (...) supervisor-directed interpersonal deviance. In contrast, subordinates with a positive attribution style interpret such gossip as informal negative feedback, prompting problem-solving pondering and supervisor-directed self-improvement. Our study highlights the double-edged effects of negative supervisor gossip—both covert and indirect—on subordinates’ rumination responses and supervisor-directed interactive behaviors. It emphasizes that the impact of leaders’ negative behaviors depends on subordinates’ consistent attribution tendencies, which are shaped by long-term interactions with their leaders. Our study draws attention to the often-underestimated implicit ethical issues in the workplace and provides a micro-level perspective on informal communication for the field of business ethics. (shrink)

This article examines the key conditions for the development of business ethics in the Slovak Republic, drawing on insights from the Global Survey of Business Ethics 2022–2024. By analyzing the survey's findings, we highlight the critical factors shaping the ethical landscape of Slovak businesses, including corporate governance, regulatory frameworks, and cultural influences. The study reveals a growing awareness of the importance of ethical practices among Slovak companies, with an emphasis on compliance, transparency, and corporate social responsibility. However, challenges persist, such (...) as inconsistent enforcement of regulations and the need for further education on ethical standards. We discuss the role of key stakeholders, including government, business leaders, and educational institutions, in fostering a culture of ethics within the country. Our findings offer valuable insights into the evolving nature of business ethics in Slovakia and suggest strategies for strengthening ethical practices in the business environment. (shrink)

CEOs increasingly engage in activism on issues such as gun control, voting rights, and abortion. Although such activism may benefit their firms, the stated goal is often to mobilize the public and precipitate change. In an experiment with 4,578 respondents, we study the effect of CEO activism on people’s willingness to contact their U.S. senators about abortion. On average, showing a CEO message supporting abortion rights is not more effective at mobilizing pro-choice citizens than showing no message or showing a (...) message from other speakers. Additionally, CEOs do not provoke countermobilization by people who oppose abortion. We explore heterogeneous treatment effects and find that CEO activism is better at motivating pro-choice citizens to engage in politics when their senators are Democrats and thus likely receptive to pro-choice activism, consistent with stakeholder alignment theory. Our findings contribute to research on leadership ethics and democracy by examining the ability of CEOs and organizations to foster engagement in the democratic process. (shrink)

Digital platforms are increasingly criticized for being disembedded, raising ethical concerns about their minimal links with the economic, political, and cultural environments in which they operate. Many ‘local digital platforms’ argue that their connection with and responsibility to their territory sets them apart from traditional digital platforms. However, more research is needed to better understand how local platforms claim different forms of territorial embeddedness to address the ethical challenges of the platform economy. In this article, we analyze these claims and (...) abductively develop a typology of digital platforms’ links to their local environments based on eleven sub-dimensions, drawing on the concept of territorial embeddedness. According to our framework, territorial embeddedness is multifaceted, and platforms can be characterized by a continuum from weak to strong embeddedness. This renewed conceptualization offers a deeper understanding of local platforms’ territorial embeddedness. In addition, our framework allows for a critical examination of how local platforms respond to ethical challenges of the platform economy. Our research thus brings a fresh perspective to the polarized debate between platform capitalism and cooperativism. (shrink)

This article describes the development of business ethics teaching and researching in the Czech Republic since the last global survey of business ethics organized by ISBEE in 2012. The role of business ethics training remains rather limited. The authors present results of interviews and of a survey conducted among instructors of business ethics and CSR, and students of their courses offered at various levels (undergraduate, graduate and MBA). The main differences between the lecturers and the students regarding the importance of (...) various themes, as well as future challenges are featured. The literature review highlights the major topics addressed by the Czech authors, such as CSR and sustainability, tools of ethics management, corruption, corporate governance, ethics in public administration, equal opportunities, and digitalization and AI. The most frequently used concepts and the terminology complement the picture. (shrink)

Although nascent research has begun to examine the consequences of perfectionism in organizations, the understanding of whether perfectionism may incur ethical costs in the workplace remains limited. This paper enhances knowledge about the potential ethical consequences of perfectionism by focusing on an important yet previously ignored behavior—workplace cheating. Across two multi-wave, multi-industry survey studies and a preregistered experiment (Ntotal = 1005), the results show that the relationship between employee perfectionism and workplace cheating depends on the dimension of perfectionism. We find (...) that employees with a high level of perfectionistic concerns (as opposed to perfectionistic strivings) may cheat in the workplace due to elevated fear of performance failure. In addition, supervisor bottom-line mentality exacerbates concern perfectionists’ fear of performance failure, leading to more cheating. Our findings hold even when several alternative explanations are accounted for, suggesting the robustness of our results. Theoretical and practical implications and directions for future research are discussed. (shrink)

The paper presents the state-of-the art of business ethics teaching, research, and training in Hungary. It reviews the most important publications by Hungarian authors on business ethics issues since 2011. It identifies the most striking business ethics related problems in Hungary. It maps the important activities, topics and issues in business ethics teachng and research in Hungary and reports on the themes in training on business ethics. Also, the paper reflects on the main business ethics related issues that Hungary faces (...) in the future including restoring democratic institutions and the rule of law, reforming the tax system, managing the energy transition, and financing sustainability transformations. The paper concludes that business ethics can be considered as a well-developed discipline in Hungary. However, the impact of business ethics on the current economic, social and political affairs in Hungary should be increased which requires using creative strategies in knowledge dissemination and knowledge creation. (shrink)

Enactment of responsible management (RM) can be fostered by giving actors discretionary freedom to act responsibly and/or by controlling them to act responsibly. RM research has dominantly taken a contingency approach that focuses on conditions under which actors should choose either freedom or control. However, this approach does not offer insights into entangled freedom and control dynamics and is a poor fit for the inherently processual RM phenomenon. We propose a paradox process alternative, mobilizing the lens of smoothing–striating dynamics, which (...) we apply to the Becoming Responsible Initiative (BRI) case. Smoothing fosters creativity, discretion, and lines of flight. It is dynamically entangled with striating, which fosters standardization, strictures, and the direction of enactment. We present a rhizomatic process model based on a thematic template analysis of 104 interviews, observations over 30 months, and documentary evidence. The model explains how a tension spring of over/under smoothing–striating drives RM enactment in four modes: pervasive smoothing, selective smoothing, rigid striating, and flexible striating. Each mode involves dynamics between smoothing–striating unfolding in distributed RM encounters. We contribute to the RM literature by presenting a framework explaining the paradoxical-processual dynamics of RM enactment. Our framework also transcends the freedom or control contingency approach, and adds an intricate methodology for processual analysis to the paradox discussion. (shrink)

Progress in Responsible Research and Innovation (RRI) has proved to be a decisive step in many institutions, following the guidelines and encouragement of the European Union and academic proposals. One of the dimensions recent studies have considered central for making progress in the practical development of theoretical proposals for RRI is the institutionalisation of reflexivity at the core of the organisations that develop RRI. This is particularly the case with the promotion of processes that facilitate the establishment of ethical standards (...) throughout the research and innovation cycle. This study attempts to deal with discourses about the institutional reflexivity formulated in the past 15 years based on RRI from a critical-ethical point of view. It does so using the business ethics theory of discourse. This analysis shows that, for this institutional reflexivity to be possible, it is necessary to base the RRI model on a critical-ethical horizon and design an ethical governance system that allows its practical development. (shrink)