In this theoretical paper, motives for CSR are considered. An underlying assumption is that the commercial imperative is not the sole driver of CSR decision-making in private sector companies, but that the formal adoption and implementation of CSR by corporations could be associated with the changing personal values of individual managers. These values may find expression through the opportunity to exercise discretion, which may arise in various ways. It is suggested that in so far as CSR initiatives represent individuals' (...) values, so the responsibility in evidence is less obviously corporate. Our emphasis on personal initiative is intended to counter a tendency to view the corporation as the agent, and may serve to remind us that individuals can, indeed, make a difference. (shrink)

Managers often face situations that challenge their ability to reason morally. Avariety of factors, including the issue itself and personal and organizational influences, may affect their responses. Using Kohlberg’s moral development theory and the Adapted Moral Judgment Interviewtechnique, we examine the influences of context, age, gender, type of work, and industry membership on 308 managers’ moral reasoning. No significant differences are found when considering age or gender. Differences are discovered when assessing the context of the dilemmas, managers’ (...) type of work (managerial vs. technical), and industry membership (manufacturing vs. service). Implications from our findings are discussed. (shrink)

The ethical judgment of Chinese business leaders has become increasingly important particularly due to the important role that China plays in the global economy. Previous studies tend to categorize Chinese managers as more relativist and thus more lenient in their ethical judgments. In this study we survey 256 senior managers from mainland China and find that they are in fact less relativist and more idealist than the global average. A significant portion of them are absolutists which imply that (...) these managers believe that positive consequences should result from ethical decisions based on universal moral rules. Our findings question the implications made by previous researchers that among Chinese managers there is a less than clear demarcation between right and wrong. We conclude that business leaders in China would be more supportive of codes of conduct and other ethical behaviour because of the ethical position they hold. (shrink)

The ethical behavior of marketing managers was examined by analyzing their responses to a series of different types of ethical dilemmas presented in vignette form. The ethical dilemmas addressed dealt with the issues of (1) coercion and control, (2) conflict of interest, (3) the physical environment, (4) paternalism, and (5) personal integrity. Responses were analyzed to discover whether managers' behavior varied by type of issue faced or whether there is some continuity to ethical behavior which transcends the type (...) of ethical problem addressed. (shrink)

The objective of this longitudinal study is to analyze the intrinsic drivers and values underlying managers’ organizational citizenship behaviors for the environment from a developmental psychology perspective based on measuring the stages of consciousness that shape the meaning-making systems of individuals. At time 1, the stages of consciousness of 138 managers were qualitatively assessed using the Leader Development Profile test. At time 2, a quantitative survey measured the environmental beliefs and OCBEs of these managers. The links between (...) stages of consciousness, environmental beliefs, and OCBEs were analyzed using hierarchical regressions. The main findings show that managers’ stages of consciousness positively influence two types of OCBEs, namely eco-initiatives and eco-helping, while environmental beliefs influence eco-helping and eco-civic engagement but do not appear to be connected with the stage of consciousness development. This paper first contributes to the literature on corporate greening by shedding more light on the aspects of behavioral and developmental psychology that underlie environmental leadership. Second, it bridges the gap between theories that have developed separately by showing the interconnectedness between the managers’ stage of consciousness and the more concrete environmental behaviors in the workplace that could have emulative effects throughout the organization. (shrink)

The study reported here sought to examine the ethical orientations of business managers and business students in Singapore. Data were obtained using Defining Issue Test. Analysis of Variance revealed that age, education and religious affiliation had influenced cognitive moral development stages of the respondents. Vocation, gender and ethnicity did not seem to have affected moral judgement of the subjects. Contrary to the general view, both business students and business managers demonstrated the same level of sensitivity to ethical dimensions (...) of decision-making. Implications of the findings and limitations of the study are discussed. (shrink)

This article is concerned with ways better communication between engineers and their managers might help prevent engineers being faced with some of the ethical problems that make up the typical course in engineering ethics. Beginning with observations concerning the Challenger disaster, the article moves on to report results of empirical research on the way technical communication breaks down, or doesn’t break down, between engineers and managers. The article concludes with nine recommendations for organizational change to help prevent communications (...) breakdown. (shrink)

A growing body of literature has examined managers’ use of restorative practices in the workplace. However, little is currently known about why managers use restorative practices as opposed to alternative responses. We employed a qualitative interview technique to develop an inductive model of managers’ restorative versus punitive response in the context of employee wrongdoing. The findings reveal a set of key motivating and moderating influences on the manager’s decision to respond to wrongdoing in a restorative versus punitive (...) manner. The findings also suggest that managers’ personal needs and perceived duties in the aftermath of employee wrongdoing are generally more consistent with restorative responses than punishment responses, which helps explain managers’ use of restorative workplace practices. (shrink)

What can and should we do as managers and administrators when our sense of personal morality is at odds with our organization's behavior? Among the many alternatives are: (1) not think about it; (2) go along and get along; (3) protest; (4) conscientiously object; (5) leave; (6) secretly blow the whistle; (7) publicly blow the whistle; (8) secretly threaten to blow the whistle; (9) sabotage; and, (10) negotiate and build consensus for a change in the unethical behavior. This article (...) considers the advantages and disadvantages of these ten types of strategies based on some philosophy, game theory and everyday pragmatics. (shrink)

This study considers the potential for influencing business students to become ethical managers by directing their undergraduate learning environment. In particular, the relationship between business students’ academic cheating, as a predictor of workplace ethical behavior, and their approaches to learning is explored. The three approaches to learning identified from the students’ approaches to learning literature are deep approach, represented by an intrinsic interest in and a desire to understand the subject, surface approach, characterized by rote learning and memorization without (...) understanding, and strategic approach, associated with competitive students whose motivation is the achievement of good grades by adopting either a surface or deep approach. Consistent with the hypothesized theoretical model, structural equation modeling revealed that the surface approach is associated with higher levels of cheating, while the deep approach is related to lower levels. The strategic approach was also associated with less cheating and had a statistically stronger influence than the deep approach. Further, a significantly positive relationship reported between deep and strategic approaches suggests that cheating is reduced when deep and strategic approaches are paired. These findings suggest that future managers and business executives can be influenced to behave more ethically in the workplace by directing their learning approaches. It is hoped that the evidence presented may encourage those involved in the design of business programs to implement educational strategies which optimize students’ approaches to learning towards deep and strategic characteristics, thereby equipping tomorrow’s managers and business executives with skills to recognize and respond appropriately to workplace ethical dilemmas. (shrink)

This paper analyses managers'' moral decision-making, and studies the role of ethical theories in it by following the research tradition using the multidimensional ethics scale. The research question is: what kinds of ethical dimensions do Finnish business managers reveal when they are making moral decisions, and how have these dimensions changed in the 1990s? This question is answered by examining what kinds of factors emerge when the multidimensional ethics scale is used to analyse Finnish managers'' attitudes toward (...) moral dilemmas. The results show that Finnish managers'' decision-making reflects a variety of ethical theories. Teleological thinking is strongly emphasised by Finnish managers, and relativist thinking is used as well, but often combined with either deontology or justice thinking. In addition, a strong moralistic dimension emerged in Finnish managers'' decision-making. The analysis was carried out in two different surveys in years 1994 and 1999, and the results show that the ways of decision-making were more complex at the end of the 1990s than almost six years earlier. (shrink)

Researchers have studied marketing ethics from several perspectives. Few studies, however, have analyzed supervisory reactions to unethical behavior by salespeople. The results of this study using a 2 × 3 factorial design showed that the performance level of the salesperson and the consequences of the salesperson's actions influenced some types of discipline used by a sample of 246 sales managers. The findings both support and contradict prior research on how sales managers respond to unethical sales force behavior.

ABSTRACT:We combine prior research on ethical decision-making in organizations with a rational choice theory of corporate crime from criminology to develop a model of corporate offending that is tested with a sample of U.S. managers. Despite demands for increased sanctioning of corporate offenders, we find that the threat of legal action does not directly affect the likelihood of misconduct. Managers’ evaluations of the ethics of the act, measured using a multidimensional ethics scale, have a significant effect, as do (...) outcome expectancies that result from being associated with the misconduct but not facing formal sanctions. The threat of formal sanctions appears to operate indirectly, influencing ethical evaluations and outcome expectancies. Obedience to authority also affects illegal intentions, with managers reporting higher prospective offending when they are ordered to engage in misconduct by a supervisor. (shrink)

The article attempts to provide a practical analysis of the psychological basis for the incentives of personality motivation in education managers. In particular, it highlights the results of an empirical study of motivational techniques for normative and value attitudes of education managers in terms of management. It justifies the opinion that leaders of the organizations with strong cooperation between staff and administration and united by a common desire for success, are dominated by the category “hope for success”. And (...) the leaders of such organizations where subordinates are in constant fear of dismissal and under sharp criticism regardless of their work quality, are dominated by the “fear of failure”. It emphasizes the idea that education managers should try to develop “hope for success”. This applies to both men and women, regardless of their work experience. It points out the need to practice methods of overcoming “blame and criticism caused by failure to succeed”. This is especially true for women with over 5 years work experience. It is also worth creating a sense of work efficiency with a positive hope and to overcome manifestations of immorality and injustice to subordinates. Considerable attention in scientific research is paid to the importance of the spiritual component in the personality of modern managers, which requires further study. (shrink)

The total value set of a working individual consists of three components: personal, professional and organizational values. In the light of the changing health care environment, the individual nurse manager’s values may no longer be applicable for coping with the needs of the work environment. For many nurses who developed their values in keeping with the humanistic tradition, the ‘new’ organizational values may create confusion, frustration and conflict. The purpose of this study was to determine if the organizational domain in (...) the value sets of Israeli middle nursing managers in acute care hospitals reflect the process of shifting values needed in today’s management roles. Analysis of the results revealed that head nurses did not yet fully internalize the ‘new’ organizational values. Implications of the results for planning undergraduate and graduate programmes are detailed. (shrink)

This study presents an empirical investigation of the ethical perceptions of the future managers - Turkish university students majoring in the Business Administration and Industrial Engineering departments of selected public and private Turkish universities - with a special emphasis on gender. The perceptions of the university students pertaining to the business world, the behaviors of employees, and the factors leading to unethical behavior are analyzed. The statistically significant differences reveal that female students have more ethical perceptions about the Turkish (...) business climate, behavior of employees, and the ethicalness of the behavior of the employees in comparison with their male counterparts. (shrink)

Researchers have studied marketing ethics from several perspectives. Few studies, however, have analyzed supervisory reactions to unethical behavior by salespeople. The results of this study using a 2 × 3 factorial design showed that the performance level of the salesperson and the consequences of the salesperson''s actions influenced some types of discipline used by a sample of 246 sales managers. The findings both support and contradict prior research on how sales managers respond to unethical sales force behavior.

This study asked managers with different educational backgrounds and experience from a variety of industries of a variety of sizes representing both genders and various predominant managerial functions at different levels to “describe the skills they think are necessary to perform their jobs effectively”. In particular, they were asked to rank 178 behavioral skills presented under 22 different categories that described different aspects of management. Data were then examined first to determine the importance of ethics or integrity overall in (...) the group of managerial activities and then to explore how specific ethical activities of managers differ across various managerial and organizational characteristics. Findings indicate that ethics is still considered one of the least important skills necessary in managers’ daily work. However, once specific ethical activities are analyzed separately, significant differences are found across characteristics of managers, as well as those of the organizations at which they work. (shrink)

Interesting contrasts and parallels on ethical issues emerge from a recent series of in‐depth interviews given by managers in nine companies operating in Europe. The author is Professor of Marketing at the University of Notre Dame, Indiana 46556, USA, on leave during 1993‐94 as Visiting Professor in the Department of Management and Marketing, University College Cork, Ireland. He wishes to acknowledge the financial assistance of the College of Business Administration at the University of Notre Dame in supporting this research.

Current research in moral development suggests that there are two distinct modes of moral reasoning, one based on a morality of justice, the other based on a morality of care. The research presented here examines the kinds of moral reasoning used by managers in work-related conflicts. Twenty men and twenty women were randomly selected from the population of first level managers in a Fortune 100 industrial corporation. In open-ended interviews each participant was asked to describe a situation of (...) moral conflict in her or his work life. The results indicated a clearly preferred mode of moral reasoning among the participants who described moral conflicts. Nearly all of these predominated with a justice orientation. These findings suggest that a correlation between gender and preferred mode may be context specific. (shrink)

This paper examines how middle managers in the long term care sector use the discourse of professionalism to create ‘appropriate’ work conduct of care workers. Using Watson’s concept of professional talk, we study how managers in their daily work talk about professionalism of vocationally skilled care workers. Based on observations and recordings of mundane conversations by middle managers, we found four different professional talks that co-exist: appropriate looks and conduct, reflectivity about personal values and ‘good’ care, methodical (...) work methods, competencies. Jointly, these professional talks constitute an important discursive resource for middle managers to facilitate change on the work floor. Change involves the reconfiguration of care work and different managerial-worker relations. Middle managers use professional talks in both enabling and disenabling ways vis-à-vis care workers. Based on these findings, we suggest a more nuanced portrayal of the relationship between managers and professionals. Rather than being based on an intrinsic opposition, i.e. ‘managers versus professionals’, this relationship is flexibly reconstructed via professional talk. (shrink)

In the Quebec city area, 400 women owner-managers of business in the three industrial sectors answered a detailed questionnaire, and 75 of these subsequently underwent in-depth interviews. The main dimensions explored were the characteristics of the entrepreneurs and their firms, the experience of starting a business, the success criteria used, and their vision for the future of their firms. The results suggest the importance, to these women, of a model of small and stable business. This is not a transitory (...) phase for their firm: most choose and value such a scale of business, and they seek recognition for what they do. This model seems to represent an innovative adaptation to their professional, social, family and personal demands and challenges our definitions of entrepreneurship and of serious business. (shrink)

Perceived behavioral integrity involves the employee’s perception of the alignment of the manager’s words and deeds. This meta-analysis examined the relationship between perceived behavioral integrity of managers and the employee attitudes of job satisfaction, organizational commitment, satisfaction with the leader and affect toward the organization. Results indicate a strong positive relationship overall (average r = 0.48, p<0.01). With only 12 studies included, exploration of moderators was limited, but preliminary analysis suggested that the gender of the employees and the number (...) of levels between the employee and the manager are potential moderators of the relationship. In the current sample of studies, country where the research was conducted did not seem to have any moderating effects. In addition to suggesting further investigation of potential moderators, we call for research that examines the relationship between behavioral integrity and outcomes that include individual behavior and organizational performance. (shrink)

Based on evidence from press articles covering 39 corporate fraud cases that went public during the period 1992-2005, the objective of this article is to examine the role of managers' behavior in the commitment of the fraud. This study integrates the fraud triangle (FT) and the theory of planned behavior (TPB) to gain a better understanding of fraud cases. The results of the analysis suggest that personality traits appear to be a major fraud-risk factor. The analysis was further validated (...) through a quantitative analysis of keywords which confirmed that keywords associated with the attitudes/rationalizations component of the integrated theory were predominately found in fraud firms as opposed to a sample of control firms. The results of the study suggest that auditors should evaluate the ethics of management through the components of the TPB: the assessment of attitude, subjective norms, perceived behavioral control and moral obligation. Therefore, it is potentially important that the professional standards that are related to fraud detection strengthen the emphasis on managers' behavior that may be associated with unethical behavior. (shrink)

The article takes the first steps towards a general theory of civil society elites, a concept not fully developed in either elite or civil society research. This conceptual gap hampers academic and public understanding of the dynamics at the top of civil society. To address this, the authors rely on the theoretical framework of Pierre Bourdieu to build a theory of civil society elites as managers of civic capital. This role is illustrated through examples from the differently institutionalised UK (...) and Nordic civil societies. The first part of the article introduces the notion of civic capital and its emergence during the 19th century. The second part focuses on elite positions in civil society fields, demonstrating how civil society elites, as managers of civic capital, navigate between their constituents and other elite groups. These elites wield the power to consecrate social relations while misrecognising their own symbolic and economic gains. Recent scandals in the climate movement and UK and Nordic civil societies shed light on the symbolic aspects of the positions of civil society elites. This comprehensive analysis contributes to elite and civil society research and enriches public discussions about the role of civil society leaders in society. (shrink)

In this review of three recent books on higher education, Alexander Sidorkin shows how the disinterested discourse that appears to be anticapitalist and anticommercial is actually a way of obtaining income from state subsidies. What links the books under review—Cary Nelson's No University Is an Island: Saving Academic Freedom, Frank Donoghue's The Last Professors: The Corporate University and the Fate of the Humanities, and Jennifer Washburn's University, Inc.: The Corporate Corruption of Higher Education—is their critical evaluation of the corporatization and (...) commercialization of higher education. In his analysis of this common theme, Sidorkin considers discourse as a means of production, and he maintains that the semiotic fields produced by discourse may create inflationary bubbles unless they engage in innovative discursive practices. Higher education is shaped by the trend toward massification, which makes the innovative discourse essential. Sidorkin concludes that the discursive energy of proponents of higher education should be focused on solving the numerous problems that arise from the massification of higher education rather than trying to reverse the trend and return to some golden age of academia. (shrink)

The relationship between gender and ethics has been extensively researched. However, previous studies have assumed that the gender–ethics association is constant; hence, scholars have seldom investigated factors potentially affecting the gender–ethics association. Thus, using managers as the research target, this study examined the relationship between gender and ethics and analyzed the moderating effect of cultural values on the gender–ethics association. The results showed that, compared with female managers, their male counterparts are more willing to justify business-related unethical behaviors (...) such as bribery and tax evasion, and that the gender difference in ethics becomes more pronounced under the cultural dimensions of collectivism, humane orientation, performance orientation, and gender egalitarianism. This study used data obtained through surveying 2,754 managers in 27 nations. (shrink)

Richard Konrad claims that businessmen are guilty of adhering to a vicious form of ethical relativism. In practice, the relativism takes the form of doing an act which ordinarily would be called wrong and then claiming that the act is right or justified because it falls under a special set of codes (business ethics) which preempt ordinary ones. These codes or business ethics establish moral sanctuaries for businessmen. Konrad examines three versions of the sanctuary position, argues that they fail, and (...) concludes that the position is untenable. In this article it is claimed that Konrad is in error, that upon closer examination the three versions do provide justification for businessmen claiming relief from moral criticism. (shrink)

This study investigates how social capital affects managers’ use of corporate resources. We find that for firms located in U.S. counties with a high level of social capital, (i) corporate cash holdings have higher marginal value, (ii) the contribution of capital expenditures to shareholder value is higher, and (iii) acquirers experience higher announcement-period abnormal stock returns. We further find that social capital decreases both over- and under-investment, and thus improves ex post corporate investment efficiency. Our evidence suggests that in (...) communities with a high level of social capital, strong social norms and dense social networks constrain unethical corporate behavior, which induces more efficient use of corporate resources. (shrink)

The globally generated concepts of environment and sustainability are fast gaining currency in international business discourse. Sustainability concerns are concurrently becoming significant to business planning around corporate social responsibility and integral to organizational strategies toward enhancing shareholder value. The mindset of corporate managers is a key factor in determining company approaches to sustainability. But what do corporate managers understand by sustainability? Our study explores discursive meaning negotiation surrounding the concepts of environment and sustainability within business discourse. The study (...) is based on qualitative interpretive research drawing from symbolic interactionism which postulates that meaning in discourse is an essentially contested domain dependent upon negotiation in the Habermasian tradition of mutually respectful dialogue. Data from semi-structured intensive interviews of a small sample of senior corporate managers was analyzed to examine how corporate elites in India frame their approach to sustainability issues and respond to external pressures for deeper corporate responsibility. The findings point to the existence of a distinctively local narrative with strong potential for the discursive negotiation of personal and collective understanding of ethical and socio-cultural values that may help internalize broader sustainability considerations into corporate decision-making processes. (shrink)

This investigation applies a social cognition framework to examine moral awareness in business situations. Using a vignette-based instrument, the investigation compares the recall, recognition, and ascription of importance to moral-versus strategy-related issues in business managers (n = 86) and academic professors (n = 61). Results demonstrate that managers recall strategy-related issues more than moral-related issues and recognize and ascribe importance to moral-related issues less than academics. It also finds an inverse relationship between socialization in the business context and (...) moral awareness. Future directions for moral awareness research and the practical implications for these findings are discussed. (shrink)

Through the personal stories of managers running global business, this book takes an inside look into the dilemmas of managers who are asked to make profits ethically according to the dictates of their company's ethics code. It examines what companies `think" they are doing to help managers in those situations and how those managers are actually affected. Thanks to the boost from the 1991 Sentencing Guidelines which minimizes penalties for companies with ethics codes caught in ethical (...) wrongdoing, more than 85% of US companies and two thirds of all Canadian companies and half of all European companies now have Codes of Ethics. Yet, over and over, we hear of stories of personal dilemmas and conflicts experienced by individual managers navigating those business waters in other cultures. "Eileen Morgan does an excellent job of mapping the course for navigating the previously uncharted global ethical waters. By identifying best practices, she leads the reader on a journey from Surviving, to Understanding to Knowing the ethical issues that frequently confront international business people. This is a must read for anyone who wants to successfully compete in world markets." -Michael J. Litwin, Executive Vice President, Chief Credit Officer, Heller Financial, Inc. "Eileen Morgan has combined the pragmatic concerns of the individual manager with the moral concerns that come from personal-life history, cultural roots, and corporate ethical culture …This book focuses on the constructive task of formulating and using an "ethical map," and is sure to be a tonic to conscientious managers who want to navigate cross-cultural commerce with integrity. It has done a superb job of creating order out of the complexity of cross-cultural moral experience by insisting that the complexity must be honored and appropriated rather than ignored or suppressed." -Dr. Richard Beauchamp, Professor of Ethics, Christopher Newport University "In this groundbreaking book, Eileen Morgan has provided scores of real-life examples and developed a framework for approaching ethical leadership in international business. This is mandatory reading for anyone involved in global management today...This is an important book on an important subject." -Stephen H. Rhinesmith, Ph.D. Author, A Manager's Guide to Globalization "Eileen Morgan provides us with a much needed roadmap for how to walk the path of ethical leadership with practical feet. She reminds us that ethical decision-making is a critical aspect of every day leadership, and that we can all choose to be 'ethical pioneers' in our companies and our communities. Every leader engaged in global business can benefit from the lessons and stories included in this book." -Christi A. Olson, Ph.D. Chair, Telecommunications Management Department, Golden Gate University "Eileen Morgan's thoughtful analysis of 'ethical capital' should be read by anyone who does business in a global environment…Morgan's book presents the issue clearly, comprehensively and compellingly, demonstrating that ethics is an indispensable aspect of individual leadership and organizational credibility. …It provides a clear roadmap for business leaders who need to communicate their commitment to integrity and accountability to their employees, their partners, and their customer, making their 'ethical capital' one of their most valuable assets." -Nell Minnow, Principal, Lens, The Corporate Governance Investors "Eileen Morgan gives excellent insight into ethical practices. She focuses on business but her insights have general application. This book also describes differences in ethical interpretation that can arise between diverse cultures. Ms. Morgan has made an excellent contribution to understanding the benefit of positive ethical practices." -David C. Lincoln, Sponsor, Lincoln Center for Applied Ethics, College of Business, Arizona State University President, Arizona Oxides, LLC · First in-depth look at how managers in global companies actually bridge the gap between their organizations and their daily decisions · Explains the need for internal and external ethical operations¦and how organizations often create confusion rather than clarity with the label of "ethics". (shrink)

This article explores managers’ views on various ways in which business schools can contribute to providing solid ethics education to their students, who will ultimately become the next generation of business leaders. One thousand top level managers of Icelandic firms were approached and asked a number of questions aimed at establishing their view on the relationship between ethics education and the role of business schools in forming and developing business ethics education. Icelandic businesses were badly hurt by the (...) 2008 crisis, and therefore Iceland provides an interesting foundation for an empirical study of this sort as the aftermath of the crisis has encouraged managers to consciously reflect on the way their business was and should be conducted. Based on the results of the survey, a few main themes have developed. First, it appears that according to practicing managers, business schools should not be held responsible for employees’ unethical behavior. Nevertheless, managers believe that business schools should assist future employees in understanding ethics by including business ethics in teaching curricula. Second, managers believe that the workplace is not where ethics are learned, while also insisting that former students should already have strong ethical standards when entering the workplace. Third, managers call for business schools not only to contribute more to influencing students’ ethical standards, but also to reshape the knowledge and capabilities of practicing managers through re-training and continuous education. Based on the results of the study, the article also offers some recommendations on how to begin reformulating the approach to business ethics education in Iceland, and perhaps elsewhere. (shrink)

Recent academic articles point to an increased vagueness and overlap in concepts related to business ethics and corporate responsibility. Further, the perception of these notions can differ in the smallbusiness world from the original academic definitions. This article focuses on the cognition of small-business owner-managers. Given the impact of small-business owner-managers on their ventures, corporate responsibility and ethical issues can take a different route in SMEs. The small-business owner-manager is able to shape the corporate culture and to enact (...) values other than profit. Adopting a cognitive perspective, we have identified how the small-business owner-manager makes sense of notions linked to corporate social responsibility (CSR) and business ethics. The concept of sensemaking has recently been applied to CSR (Basu and Pallazzo, 2008; Cramer et al., 2006). Applying a cognitive perspective to small-business owners may help in explaining specific phenomena found within smallbusiness ownership. For this research, the Repertory Grid Technique (RGT) is used, a method that has not previously been widely applied in the business and society field. Our findings to an extent invalidate the confusion in terminology found in the academic literature. Smallbusiness owner-managers, pragmatically and rather clearly, differentiate among the various concepts related to corporate responsibility and business ethics but, at the same time, they recognise the interrelationships and interdependencies of these concepts. These findings contribute to a better understanding of how small-business owners think and integrate corporate responsibility and ethical issues into their decisionmaking. (shrink)