Based on a community psychology perspective, this qualitative study explores the community-inclusion effort of one of the largest pulp and paper companies in the world. Extending the literature on workforce diversity/inclusion, we present the community-inclusive organizational framework, which signifies the dynamics of community inclusiveness of organizations highlighting key managerial accountabilities based on the community psychology perspective. Theoretical and practical implications are presented for promoting community-inclusive organizations, along with avenues for further research.

We use the U.S. Supreme Court’s decision in Citizens United v. Federal Election Commission to assess the reputational risks created by political investment opportunities that allow managers to spend unlimited and potentially undisclosed firm resources on independent political expenditures. This new opportunity raises important ethical questions, as it is difficult, and perhaps impossible, under current law for shareholders to hold managers accountable for this investment choice and the reputational risks it entails. Using firms’ known political activity as a proxy for (...) managers’ likely future use of independent political expenditures, we examine how market participants reacted to Citizens United, conditional on this prior activity and corporate governance attributes related to the concentration of decision rights in senior management and blockholders. The results of our analyses document that firms with both a high level of known political activity and CEO-chairperson of the board duality experienced negative abnormal returns in reaction to Citizens United. In contrast, firms with concentrated ownership experienced positive abnormal returns; however, as known political activity increased, investors discounted the benefits of concentrated ownership. These findings suggest that investors expect this expansion of firms’ political investment opportunities to amplify principal-agent problems inherent in corporate political activity. Additionally, our findings provide evidence for those deliberating the mandatory disclosure of firms’ investments in politics as a means of increasing managerial accountability to both shareholders and the public. (shrink)

This article provides a conceptual framework for studying the influence of mood on managerial ethical decision making. We draw on mood-congruency theory and the affect infusion model to propose that mood influences managerial ethical decision making through deliberate and conscious assessments of the moral intensity of an ethical issue. By accounting for proscriptive and prescriptive morality—i.e., harmful and prosocial behavior, respectively—we demonstrate that positive and negative mood may have asymmetrical and paradoxical effects on ethical decision making. Specifically, our (...) analysis suggests that individuals in a positive mood will be more likely to engage in prosocial behavior but less likely to refrain from activities that have harmful consequences for others, whereas individuals in a negative mood will be more likely to avoid activities that put others at risk or harm but at the same time less prone to engaging in activities that have positive consequences for others. Importantly, we account for the context within which managers make their decisions by examining how situational strength may moderate the influence of mood on managerial ethical decision making. Finally, we discuss how organizations can leverage the double-edged sword effect of mood on ethical decision making and prevent, control and manage the risk of unethical decision making on the part of managers. (shrink)

British higher education has undergone an unprecedented transformation over the past twenty years from an elite and individualised personal option embodied in historic universities (and their qualified institutional imitation in post-war expansion) to an industrialised, mass higher education system designed to produce a standard, reliable, predictable human ‘product’ suited to the putative needs of British industry and commerce. This ‘reform’ or ‘modernisation’ incorporates key features of ‘managerial modernity’ and it has been imposed without effective critique or resistance. In this (...) paper we outline and analyse aspects of the quasi-totalitarian ‘normalisation’ of the education system as a whole, and pose some basic questions about the adequacy of the result as means of intellectual maturation and fundamental socialisation. It is concluded that the limits of ‘accountability’ have been narrowly and prescriptively drawn, and that both the tacit assumptions and targeted outcomes of this facility for social reproduction may be held in part responsible for a reduced and diminished ‘post-humanity’. Some marginal figures offer material for creative resistance, but what resources, if any, do conventional Christian theology, ethics or pedagogic practice offer in the face of this forced homogenisation of the human? (shrink)

The managerial turn in academia is currently broadly discussed. Based on empirical data gathered from a sample that includes all German universities, we can give a broad and fine-grained account of this turn. What we can clearly see is that whole new categories of administrative management positions have been created over the last years. Furthermore, within the non-academic staff we can see a profound restructuration. Lower-level positions like those for clerical work decreased, while higher-level positions in the administration increased. (...) However, and in contrast to studies of countries, we do not observe a general shift from academic to non-academic positions. In addition to the statistical analysis of survey data and personnel data, we conducted seventy in-depth interviews with heads of administrative management units, in particular those being created over the last two decades, for example, on quality control, technology transfer, and career service. Although we clearly see important changes indicating a managerial turn in higher education, core characteristics of a professional organization whose basic processes are ultimately controlled by academics and not by administrators or managers have been retained. These findings call for further cross-national research. (shrink)

What can be learned from a small scale study of managerial work in a highly marginal and under-researched working community? This article uses the ‘goods–virtues–practices–institutions’ framework to examine the managerial work of owner–directors of traditional circuses. Inspired by MacIntyre’s arguments for the necessity of a narrative understanding of the virtues, interviews explored how British and Irish circus directors accounted for their working lives. A purposive sample was used to select subjects who had owned and managed traditional touring circuses (...) for at least 15 years, a period in which the economic and reputational fortunes of traditional circuses have suffered badly. This sample enabled the research to examine the self-understanding of people who had, at least on the face of it, exhibited the virtue of constancy. The research contributes to our understanding of the role of the virtues in organizations by presenting evidence of an intimate relationship between the virtue of constancy and a ‘calling’ work orientation. This enhances our understanding of the virtues that are required if management is exercised as a domain-related practice. (shrink)

Managerial doxastic agency is one species of indirect doxastic agency. In this article, the author builds on some earlier work and sketches an account of managerial doxastic agency. In particular, he argues that fairly robust doxastic agency can be exercised by performing metamental actions of non-doxastically accepting propositions as true as part of a general strategy involving various means of mental control. That the sort of control counts as a form of internal control and, hence, as a form (...) of genuine doxastic agency is defended against an objection. (shrink)

This paper examines the ethics of contemporary managerial compensation in the context of executive stock options. Economic considerations would dictate that executive stock options should be adjusted to eliminate the effect of overall stock market movements which are beyond the control of the executive. However, in practice, most executive stock options are not adjusted to control for these outside factors. Agency considerations are the most likely culprit. Adjusting for the influence of outside factors, such as a generally rising stock (...) market, from executive stock options sets a higher bar for managers to reach. Furthermore, traditional accounting standards permitted firms that did not adjust options to avoid reporting options as expenses. This presents CEOs and boards of directors with a major ethical dilemma. On the one hand, their duty to their shareholders and stakeholders dictates that executive stock options should be adjusted to eliminate outside noise from unrelated movements in the overall stock market. However, financial statements are presented in the language of accounting. If the overwhelming majority of the users of a language define a particular item in one way, then to deviate from the norm implies that the recipient of such a deviant statement may not properly interpret the statement. Likewise, if the standard practice is for firms to use unadjusted options and thus under-report expenses, to deviate from this industry norm risks that users of financial statements would not properly interpret the financial statements, with perhaps negative consequences for the shareholders. In short, if "everyone else does it," then it could be wrong for an individual firm to deviate from the norm as that would harm the shareholders. (shrink)

We use institutional-related theories and a unique natural experiment that enables an exogenous test of the influence of controlling shareholders on managerial accountability to corporate fraud. In China, prior to the Split Share Structure Reform, state shareholders held restricted shares that could not be traded. This restriction mitigated state-owned enterprise controlling shareholders’ incentives to monitor managers. The data examined show the SSSR strengthens incentives of state-owned enterprise controlling shareholders to replace fraudulent management. Our findings support the view that (...) economic incentives are important to promote corporate governance and deter fraud. (shrink)

Cet article constitue la réponse à une note critique publiée dans le n° 71 d’ Actuel Marx, dans laquelle Fabien Foureault discutait les travaux de G. Duménil et D. Lévy concernant l’actuelle transition entre le capitalisme et un nouveau mode de production, le managérialisme. Le premier argument est le fait que les hauts managers sont rétribués par la distribution de stock-options, considérés comme des revenus du capital par Foureault bien que ces options n’aient pas de rapport avec la détention antérieure (...) d’actions par les bénéficiaires. La forme de la rémunération l’emporte sur les pratiques qui la motivent. Foureault utilise, par ailleurs, les calculs réalisés au sein des Distributional National Accounts qui montrent que la part des revenus du capital au sein du revenu total du 1 % supérieur de la hiérarchie des revenus n’a pas décru. Ces nouvelles estimations sont, pour GD et DL, inutilisables hors des finalités comparatives pour lesquelles elles ont été conçues. Enfin, les auteurs considèrent que Foureault se méprend radicalement quant à la nature de leurs interprétations politiques. (shrink)

This study examines whether the delegated monitoring of main banks effectively decreases severe agency problems. For example, this includes accounting fraud in bank-dominated corporate governance. In this context, the fraud triangle specifies the three main factors of opportunity, incentive, and rationalization. Main banks may reduce the factor of opportunity through actions such as monitoring, which plays a moderating role by reducing the potential for managerial misconduct, whereas, the incentive factor may be enhanced through the subsequent pressure that influences managers (...) to force turnover when they do not repay debts. The potential influence that the main banks have on the fraud rationalization factor may be stronger in firms that are more dependent on main-bank borrowing. This study analyzed data from publicly listed firms in Japan for the period between 2008 and 2016 to determine how main-bank relationships affected accounting fraud, thus allowing an assessment of delegated monitoring practices. Findings showed that main-bank relationships were helpful for reducing accounting fraud, suggesting its overall effectiveness in delegated monitoring. Results also showed that large audit firms did not necessarily prevent accounting fraud, which implies that main banks can employ their own monitoring as a substitute for the roles typically played by these firms. Here, the main policy implication is that main-bank relationships may strengthen business ethics in the context of bank-dominated corporate governance. In conclusion, the continued analysis of bank monitoring may benefit stakeholders while strengthening business ethics in bank-centered economies. (shrink)

Neoliberalism’s relationship to New Public Management is well known but less is understood of how these ideas have become embedded in the state. This article explores one dimension of ‘how the state ‘changes its mind’ by exploring the ideological and cultural transformation within the senior management ranks of Canada’s largest provincial state, Ontario. A broadly Gramscian framework is used to develop greater insight into the process of cultural change within the state and the specific role of senior managers as the (...) ‘organic intellectuals’ of the neoliberal revolution. (shrink)

Values research generally confirms that personally held values influence an individual's decision processes and behavior. Yet this academic research often is limited to the individual or organizational level of analysis. This study utilizes social identity and personal values theories to search for the presence of superordinate identities emerging at the meso level from six different industries. The six selected industries—accounting, banking, construction, education, energy, and manufacturing—represent a mix of highly respected and disrespected industries, as well as industries that have an (...) ethical professional association and those that do not. Results provide evidence of meso‐level superordinate identities, distinguishing managers' personal value orientations from a generalized population, and across the six selected industries. Implications emanating from this research for the human resource practitioners and academic scholars are discussed. (shrink)

According to one prominent view of rationality, for the choice of alternative to be justified, it must be at least as good as other alternatives. Michael Jensen has recently invoked this view to argue that managers should act exclusively to maximize the long-run market value of economic enterprises. According to Jensen, alternative accounts of managerial responsibility, such as stakeholder theory, are to be rejected because they lack a single measure to compare alternatives as better or worse. Against Jensen’s account, (...) this paper argues that choosing the alternative that is at least as good as other alternatives need not preclude managers from respecting considerations in addition to long-run market value. The paper argues that such considerations may be incorporated into managerial decision-making by introducing constraints and priorities into the process of maximizing long-run market value and by allowing for “clumpy” values. (shrink)

This chapter links the rise of public accountability to the wave of New Public Management reforms. It argues that the relationship between increased managerial accountability and performance is contested and it is becoming increasingly clear that we have to operate with a multi-dimensional accountability concept going beyond hierarchical accountability. The chapter discusses tensions and dilemmas in the relationship between NPM and accountability, the volatile relationship between accountability and performance, and the ambiguities and appropriateness (...) of accountability under NPM. It also addresses accountability in relation to post-NPM reforms and challenges for future research. (shrink)

The dominant managerial discipline in U.K. companies is finance. Accountants are often viewed as being concerned with what is measurable, definite and controllable. The emphasis is on professional conduct, independence, objectivity, technical competence and confidentiality. This paper explores the concept that the growth of professionalism has created an environment in which functional specialists have different ethical perspectives. The pre‐eminence of accountants is now being challenged by the marketers, a profession that takes a much wider view of business ethics. This (...) development is bound to have implications for corporate perspectives on business ethics. The paper gives the views of a focus group of managers from other disciplines on the relations between accountants and marketers, and analyses the potential for better understanding between the two groups and the implications of this for business ethics. (shrink)

This chapter contains sections titled: The correspondence view Accounting for the two theses Implications.

This article evaluates effectiveness and costs of external regulation, in particular the Sarbanes-Oxley Act of 2002 (SOX) in restricting managerial malfeasance and safeguarding shareholder interests. It discusses the role of managerial ethics as an alternative corporate governance mechanism to protect shareholder value. This article builds a mathematical model to illustrate shareholders' choices of best corporate governance mechanisms, taking into account the influence of managerial ethics, effectiveness and costs of monitoring. We suggest that the best corporate governance design (...) and the optimal monitoring expenses are influenced by managerial types, monitoring efficiency, and effectiveness of ethics education. We conclude that stringent regulation and monitoring may not always enhance shareholder value. When managerial ethics could be improved by ethics education or social norms, ethics education may be a better alternative than stringent regulation. (shrink)

Introduction. The relevance of the topic of the article is conditioned, on the one hand, by the necessity to assess the effectiveness of using the managerial potential of the key employees at the coal industry enterprises in Russia, on the other hand, by the lack of a scientific and methodological basis for solving the problem. The gap will not allow Russian coal companies to master the trajectory of sustainable economic development in the near future. The purpose of the article (...) is to develop a methodological approach to assessing the effectiveness of using the managerial potential of key employees in the coal industry. Methods. The author uses the methods of systemic, semantic and retrospective analysis, as well as benchmarking. Scientific novelty of the research. The author proposes a methodological approach to assessing and forecasting the effectiveness of using the managerial potential of key employees, a distinctive feature of which is determining the congruence of the internal competitive environment of a coal mining enterprise to its external environment. Results. The outlined approach to assessing the effectiveness of using the managerial potential of key employees makes it possible to predict and plan the trajectory of its development, taking into account the congruence of the internal competitive environment of an enterprise to the external environment, an innovative market economy. Conclusions. On the basis of the obtained quantitative results of assessing the effectiveness of using the managerial potential of key employees, the author concludes that there are significant opportunities to increase the level of managers’ competitiveness and the sustainable operation of coal industry enterprises in Russia, the implementation of which is achieved by the balanced development of managerial potential and strengthening the congruence of the internal competitive environment of an enterprise. (shrink)

We investigate the relationship between the dark triad personality traits (Machiavellianism, narcissism, and psychopathy) of managers and the practice of reporting manipulation using a primary survey of 837 professionals working in accounting and finance departments. We find that (a) managers who exhibit dark personality traits are associated with a higher prevalence of fraudulent accounting practices in their accounting and finance departments and (b) traditional risk management mechanisms are only partially effective in mitigating this effect. Internal audits are effective in curtailing (...) the negative behavior of managers with dark triad traits only if these internal audits are outsourced and performed by independent external personnel but not if they are conducted by internal personnel. This suggests that managers with dark triad traits are able to manipulate other employees quite effectively. Consequently, having external personnel perform the auditing task provides a safeguard against such unethical practices and manipulation. This finding has strong practical implications, as it provides support for outsourcing internal audits rather than keeping them in-house. (shrink)

ABSTRACT:We develop the concept of stakeholder salience to account for stakeholders who should matter to the firm, even when managers do not perceive them as important. While managers are responsible for attributing salience to stakeholders, they can overlook or ignore stakeholder importance because of market frictions that affect managerial perceptions or induce opportunism. When this happens, corporate financial and social performance can suffer. Thus, we propose that the perceptions of organizational and societal stakeholders should also codetermine the salience of (...) the focal stakeholder to the firm. We also propose that stakeholder dialogue can reduce the impacts that market frictions can have on managerial perceptions of stakeholder interests that should matter to the firm. Finally, we discuss how the refined conceptualization of stakeholder salience might have better predictive validity, be more normative, and make instrumental and normative stakeholder theory more convergent. (shrink)

Recently, various studies have suggested that ethical leadership offers an important antecedent of fluid internal workplace relationships, which are conducive of internal social capital. Yet existing research has neither inquired into potential mediators of this relationship nor addressed the role of other distinct leadership strategies in encouraging such a valuable capital. This study advances previous research by examining if servant leadership, which seeks to put followers’ interests and needs first, can account for social capital variance within the work group, which (...) is the building block of organizations. New to the literature, we also investigate whether group citizenship behavior mediates this relationship. A sample of 352 work groups, spanning 187 hotels located in Spain, reveal that group citizenship behavior partially mediates the positive influence of servant leadership on group social capital. Managers can use these findings to lead their businesses in a more socially friendly direction while also building group social capital, which can improve the competitiveness of their work groups, and the entire business. (shrink)

The purpose of the study is to present the author's accounting mechanisms in relation to the transaction costs of a manufacturing enterprise in relation to the financial, managerial and strategic aspects of this process. The scientific novelty of the research lies in the fact that the paper systematizes views on the existing accounting and analytical support in relation to transaction costs, offers various options for constructing accounting, management and strategic accounting of transaction costs, depending on the assessment available for (...) reflection. As a result, the recommended accounting approaches using accounting, management and strategic accounting of transaction costs are presented on the example of an industrial company. Since transaction costs occupy a significant share in the cost structure of business units engaged in production, it is necessary to organize their reflection using modern accounting principles. The complexity of the monetary assessment of such costs causes the complexity of the management process associated with their accounting. This publication is devoted to the problems of accounting, management and strategic accounting of transaction costs at a manufacturing enterprise. The use of an integrated approach based on accounting principles makes it possible to ensure control over transaction costs for solving urgent tasks of management and owners. (shrink)

Following SOX, financial restatements increased dramatically. Prior research suggests that how investors respond to restatements, particularly those involving fraud, may mitigate or exacerbate damage suffered. We extend both accounting and management research by examining the joint effects of pre-restatement managerial reputation and the announcement of managerial corrective actions in response to a restatement on nonprofessional investors’ judgments. We find that pre-restatement managerial reputation and the announcement of managerial corrective actions jointly influence investors’ managerial fraud prevention (...) assessments, which mediate their trust in management. These trust perceptions in turn affect investors’ investment and CEO retention judgments. Our results have implications for firms that are concerned with lessening the negative consequences associated with issuing a restatement. (shrink)

The aim of this article is to briefly spell out why corporate moral agency is a fallacy and to show how this conclusion should shift the field of business ethics more in the direction of political philosophy and the rule of law. An argument based on a false assumption can be valid, but it cannot be sound. If corporate moral agency is a fallacy, and thus also moral prescriptions for corporations, how do we salvage the field of business ethics? To (...) the extent that business ethics is about corporate behaviour (rather than individual managerial behaviour), the field can shift its foundational paradigm from ethics (which requires the attributes of moral agency) to legal accountability (which can be imposed instrumentally on corporate legal agents). By letting our elected representatives legislate the norms of acceptable corporate behaviour we can hold corporate legal entities legally accountable. What these norms should be then becomes the central focus of business ethics seen through the lens of political philosophy. (shrink)

Is it helpful to model the idea of professional formation on ethical formation?ing from the specifically ethical interest of Aristotle's own doctrine, in the ?narrow?, ?moral? sense of ethical, and aiming at the same time for an inclusive, ?broad? formulation which extends to various types of métiers (occupations/professions), this paper argues that an Aristotelian perspective offers a more robust concept of personal, professional and civic responsibility??responsibleness??than any that our present ?managerial? rationality can promote. Drawing on some Aristotelian texts, I (...) show that the practical knowledge of one with ?formation? (appropriate to the métier in question) enables an agent to find the relevant end and the appropriate act in the name of that end?as if simultaneously. The end and the means to the end are perfectly suited to one another. Crucially, the structure of the agent's practical reasoning is grounded on the telos which guides the agent and this is summoned implicitly from formation. This Aristotelian model of practical rationality stands as a rival to the public rationality that now predominates, a rationality which sees the meeting of explicit, pre-specified outcomes, objectives or targets as the chief way in which the accountability of agents may be secured. (shrink)

This article will offer an alternative understanding of managerial decision-making drawing from Sartre’s Critique of Dialectical Reason rather than simply Being and Nothingness. I will begin with a brief explanation of Sartre’s account of freedom in Being and Nothingness. I will then show in the second section how Andrew West uses Sartre’s conception of radical freedom from Being and Nothingness for a managerial decision-making model. In the third section, I will explore a more robust account of freedom from (...) Sartre’s Critique of Dialectical Reason. I will attempt to show that freedom is not simply a matter of choosing (or not choosing) to perform an action, but entails external constraints—including other people. Finally, I will provide the implications of this account of freedom for managerial decision-making. I will show that it’s unreasonable to place full responsibility and/or blame on managers given their constraints. This does not absolve them from responsibility, but better accounts for the way in which we ought to hold them responsible. (shrink)

Alasdair MacIntyre’s critique of managerial capitalism is well known, with some arguing that MacIntyrean thought is antithetical to contemporary capitalist business. Nevertheless, substantial efforts have been taken to demonstrate how different business activities constitute MacIntyrean practices, which points to an incoherence at the heart of MacIntyrean business ethics scholarship. This article proposes a way of bridging these perspectives, suggesting a reimagined MacIntyrean approach to business that is thoroughly ‘practice-led.’ A detailed comparison of accounting and management shows that while neither (...) are practices in ‘good order,’ they differ in significant ways: where management does not meet the criteria for a MacIntyrean practice, accounting is a ‘distorted’ practice. This leads to a categorisation of practice-led business activity, whereby the traditional tasks of management are subsumed, shared or subordinated to practices and practitioners. Insights on how this can be implemented are drawn from the ‘communities of practice’ literature and a consideration of professions. (shrink)

This paper examines what managers ought to do when confronted with apparent moral conflicts between their managerial responsibilities and the general requirements of morality, specifically when those conflicts are driven by the institutional environment. I examine Google’s decision to enter the Chinese search engine market as an example of such a conflict. I consider the view that Google’s managers engaged in justifiable moral compromise in making the choice to engage in self-censorship and show how this view depends on the (...) idea of genuine moral dilemmas or irresolvable moral conflicts. I argue that there are serious reasons to doubt the existence of genuine moral dilemmas both in the abstract, as well as in the context of managerial responsibility. I propose an alternative account for what Google’s managers ought to do, as well as others who face relevantly similar situations. The account contains two conditions for permissibly contributing to another party’s failure to live up to their moral responsibilities. The first condition is that the manager must intend and act in such a way as to minimize the firm’s complicity in the other entity or actor’s failure, which in most cases will imply a duty for the manager to take actions that aim towards changing the institutional context. Under the second condition, managers ought to communicate to the firm’s constituents that they take seriously the importance of the interests at stake. (shrink)

Motivated by a large literature on how firm-specific resources drive firm performance, we propose and find that heterogeneity in investor optimism regarding firm-specific attributes plays a very important role in influencing the managerial propensity to manipulate financial statements. When firm-level investor optimism is moderate, the incidence of accounting misconduct increases, but it decreases when investors are highly optimistic. Further, market reaction to the announcement of financial restatements is more negative when investors held more optimistic firm-specific beliefs at the time (...) of initial misstatement. These findings are robust to alternative firm-specific optimism measures linked to analysts, general investors and unsophisticated individual investors, controls for market-wide consumer sentiment unexplained by macroeconomic factors, economy-wide and industry-level optimism, potential selection bias and reverse causality. Our analysis highlights the importance of firm-level investor optimism in predicting, preventing and detecting accounting misconduct. (shrink)

Corporations play a historic role in generating wealth but sometimes have a contentious impact on the environment and society as a whole. In recent years, corporations have become more sensitive to social issues and stakeholder concerns, and are collectively striving to become better corporate citizens. Business schools must prepare their graduates for success within these organizations by ensuring they are exposed to the best practices for implementing corporate sustainability initiatives and for measuring the social and financial impacts of these activities. (...) This article provides implications for curriculum by examining recent editions of Corporate Finance/Financial Management and Financial and Managerial Accounting textbooks commonly used by undergraduate students in North America to see how much space is devoted to these topics. The study finds that Cost/Managerial Accounting textbooks have the highest coverage related to sustainability and environmental topics. (shrink)

It is argued that the design of decisions is a process that in many ways is shaped by social factors such as identities, values, and influences. To be able to understand how these factors impact organizational decisions, the focus must be set on the management level. It is the management that shoulders the chief responsibility for designing collective actions, such as decisions. Our propositions indicate that the following measures must be taken in order to improve the quality of organizational decisions: (...) 1. The identity of the people, involved in organizational decision making, affects the quality of decisions and should be taken into account in the design of decisions. 2. The decision maker or designer of decisions should engage the members of an organization to create a shared vision. 3. Getting the members of an organization to express and share common values should improve the decision making process. 4. Being able to socially influence the members of an organization, or other stakeholders involved, as well as letting them participate in the process, should improve the quality of decisions. (shrink)

Within churches, congregational health and well-being require not only efficient church leadership, but also prudent church management. Good leadership structures influence governance and ministry tasks, and the awareness of accountability is a vital concept within organisations. It shapes the entire managerial progression influencing values, objectives and practices. This article reports on a study to establish the understanding of ministerial accountability in the New Prophetic Pentecostal churches. Findings reveal a unique understanding of leaders’ personal accountability, communal and (...) cultural ministry practices and public accountability towards the broader community. This article speaks to the normative task of the Church and creates a new reflection on ministerial accountability and ethical practices as well as implications for congregational development broadly.Contribution: This article highlights findings on how New Prophetic Pentecostal churches understand the concept of ministerial accountability with limited literature on the topic. Gaining insight into the African cultural heritage and values when examining the neo-Pentecostal perspective will enhance the understanding regarding their beliefs and principles. (shrink)

There are a number of well-established concepts explaining decision-making. The sociology of wise practice suggests that thinking preferences like the use of intuition form a cornerstone of administrators’ virtuous practice and phronesis is a likely candidate to explain this behaviour. This contribution uses conceptual and theoretical resources from the behavioural sciences, management science as well as philosophy to account for individual level differences of employees regarding thinking preferences in administrative professions. The analysis empirically investigates the behavioural dimension of the preference (...) for intuition vs the preference for deliberation to cast light on three different intuitive markers present among individuals who also prefer to use deliberation. We explore possible explanations for the differences and similarities of our global sample of 2227 workplace respondents who conceptually represent phronetic practitioners. The results show that many phronetic practitioners prefer the intuitive marker of unconscious thought, besides using deliberation. (shrink)

In a developing profession, emphasis is placed on two key ingredients for a successful climb to the executive suite — namely, interpersonal skills and an appropriate personality structure than can cope with forms of stress and uncertainty. The data presented in this study were collected from one of the major accounting firms and offers insights into men and women on the upward climb within the accounting profession. Analysis of this data shows that although appropriate personality characteristics are predicated on a (...) male managerial model, women and men perceive themselves similarly with respect to these characteristics. However, others' perceptions of women, male accountants as well as clients, seemed more skeptical of women's ability to succeed. Furthermore, there are indications that women and men have different job assignments along their career paths. Our data collected in the latter half of the seventies tend to corroborate many of the findings in the first half — in general women are not perceived as ready for the managerial climb. (shrink)

This paper surveys future managers’ cognitive framings of interconnected concerns for economic growth, social prosperity, and the natural environment across six countries in Latin America, and elaborates on implications for sustainability management education. Our cluster analysis unveils three cognitive types. Our findings show that whereas some future managers exhibit a ‘business case’ cognitive frame, prioritizing economic growth over the environment, the other two clusters of participants show signs of cognitive dissonance with some of the tenets of the current growth paradigm (...) while still not neatly fitting the definition of a paradoxical cognitive frame. In particular, individuals within the latter two groups do not visualize links among economic, social, and environmental dimensions that make up sustainable development. Following calls to enhance our understanding of sustainability micro-foundations, our study offers a more nuanced picture of the cognitive plurality beyond dichotomous characterizations of managerial cognitive frames as either business case or paradoxical. Moreover, results elucidate the cultural mediation that operates in the reproduction of business stances vis-à-vis nature, opening up possibilities for management education programs to engage with cognitive plurality to effect paradigmatic change. (shrink)

The aim of this article is to problematize the concept of school culture both as a concept and as a subject of investigation. It deals with the historical roots of this concept and the fact that it is shrinking—a consequence of the managerial imperatives of effectiveness and accountability in education. School culture, in relation to the quality of schools and the quality of education, has become the subject of audits, arrived at through a developed network of standardisation in (...) education, testing and evaluation. The methodology of evaluation currently lending particular substance to school culture, however, generates different methodological perspectives on investigating school culture and thus research is becoming an instrument of political power. In the research it is then necessary to either abandon the concept of school culture or to free it from spinning round the cycle of evaluation/self-evaluation—a change in school culture—improving the “quality of the school”—a new evaluation/self-evaluation. One way to do this is to employ ethnographic approaches in research into schools and to understand school culture as a system of texts. (shrink)

Financial and cost accounting information is processed by decision-makers guided by their particular need to support decisions. Recent technological advances impacting on information as well as organizations such as the European Community mandating financial reporting requirements for many countries is rapidly changing the landscape for decision making using accounting information. Hence, the importance of individuals'' decision making is more important than it was previously. These decisions are also influenced by individuals'' ethical beliefs. The Throughput Modeling approach to cultural and ethical (...) concerns provides a way of dealing with accounting information processed through various pathways by decision-makers. This modeling approach captures different philosophical perspectives from which to understand what is involved in "thinking scientifically." In the Throughput Modeling approach, pathways highlight the importance of how different philosophical perspectives may be used by individuals in arriving at a decision. This paper highlights key concepts involved in rethinking the basis of moral decision making in terms of an underlying process, rather than focusing on the application of principles or the development of a virtuous character. Examples are provided from both English and Spanish settings to help emphasize the importance of modeling ethical decision making globally. (shrink)

Most now recognize the inevitability of rationing in modern health care systems. The elastic nature of the concept of “health need,” our natural human sympathy for those in distress, the increased range of conditions for which treatment is available, the “greying” of the population; all expand demand for care in ways that exceed the supply of resources to provide it. UK governments, however, have found this truth difficult to present and have not encouraged open and candid public debate about choices (...) in health care. Indeed, successive governments have presented the opposite view, that “if you are ill or injured there will be a national health service there to help; and access to it will be based on need and need alone.” And they have been rightly criticized for misleading the public and then blaming clinical and managerial staffin the National Health Service when expectations have been disappointed. (shrink)

Abstract:In this paper we develop a categorization scheme for stakeholder research based on differences in studies’ primary level of analysis (managerial agency, organizational, or societal) and use this scheme to review and critique genres of stakeholder-based accounting research. We draw three primary conclusions: 1) stakeholder research in accounting should more clearly incorporate the business ethics stakeholder literature, 2) ethical issues are much less likely to be considered in stakeholder-based accounting research when a managerial agency level of analysis is (...) adopted, and 3) the accounting discipline can learn from debates within the business ethics literature concerning shareholder dominance and stakeholder legitimacy. These conclusions, taken together, demonstrate the need for accounting researchers to become more focused on ethical considerations in the design of accounting information systems, performance measurement criteria, and financial reporting models. (shrink)

Over the last 20+ years, globalization has made international trade and investment more efficient and productive. In the absence of coordinated global regulatory regimes, it has also made multinational corporations (MNCs) impervious to social concerns in the countries where they operate. There is considerable debate in the academic, political, and business arena as to the causes of the apparently inequitable distribution of benefits between labor and capital. Notwithstanding, the relative merits of this debate, and facing tremendous societal pressure, companies have (...) adopted voluntary codes of conduct to ensure that workers making products for them in poor and developing countries are protected from hazardous working conditions and receive wages that meet local laws and market conditions. These codes, however, suffer from a lack of credibility and proof of substantive compliance. A new type of nongovernmental organization (NGO) has emerged that monitors a company's compliance with prespecified standards and provides assurance to the external stakeholders that the company has fulfilled its voluntary obligations. From an historical perspective, this has been an innovative phenomenon where the monitoring organization purports to act as an honest broker to ensure all concerned that the company/industry has fulfilled its obligations. In this article, we undertake a thorough examination of two such organizations, that is, Fair Labor Association, and Social Accountability International, that have played a pioneering role in bridging the gap between societal expectations and corporate performance. We examine their governance structures, operating procedures, monitoring standards, and public disclosure of findings, and above all, their success in improving the level of corporate compliance with their self‐created codes or standards. Unfortunately, our findings and conclusions are disappointing. In our view, the two groups have mostly failed to meet their avowed goals. Rather than using their NGO status to help companies improve their code compliance, they have suffered from managerial capture and have been reduced to corporate apologists. (shrink)

Few issues seem to have more long-term impact upon the relations between business and society than those of corporate attitudes toward greater public accountability, corporate behaviours in response to such attitudes, and societal reaction to those behaviours. Nevertheless, there has been relatively little rigorous behavioural research of managerial attitudes toward corporate social accountability. This empirical study researches the attitudes of management in Britain toward corporate social accountability. It assesses the corporate concern for social responsibility during the (...) peak period of such concern by all interested parties (1974–1979). (shrink)

Key subordinate executives play the role of connecting superiors and subordinates within the top management team. Based on the heterogeneity of TMT preference, this article takes the data of Chinese A-share listed companies from 2010 to 2019 as a sample to examine whether key subordinate executive governance can affect the short-sighted behavior of CEOs. The empirical result shows that there is a positive relationship between key subordinate executive governance and accounting conservatism, and CEO overconfidence can positively moderate the relationship. The (...) study also shows that there is a significant positive relationship between key subordinate executive governance and accounting conservatism in private enterprises and enterprises with high market competition, that is, the key subordinate executives of these two types of enterprises can better enhance the conservatism under the stimulation of CEO overconfidence. This study contributes to the literature by examining how key subordinate executives affect accounting conservatism and link the prudential attitude of key subordinate executives with the behavioral tendency of CEO overconfidence, which has managerial implications for improving the power balance mechanism of TMT and strengthening the human resource incentive of key subordinate executives. (shrink)

This paper aims to integrate insights from psychoanalytic theory into business ethics research on the sources of ethical failures within organizations. We particularly draw from the analysis of sources and outcomes of neurotic processes that are part of human development, as described by the psychoanalyst Karen Horney and more recently by Manfred Kets de Vries; we interpret their insights from a stakeholder theory perspective. Business ethics research seems to have overlooked how “neurotic management styles” could be the antecedents of unethical (...) behavior within organizations. After showing the connection between five managerial neuroses and the corresponding potential ethical failures within organizations that have been already identified within business ethics research, we suggest three organizational strategies to counteract these failures. First, we argue that managers should pay greater attention at the complexity of human motivation, avoiding the simplistic view of compliance‐based approaches. Second, we discuss the importance of developing a conversation around values within organizations, enabling healthy individual growth and limiting the emergence of neurotic processes. Finally, we discuss the role of the business ethicist in facilitating such a process, suggesting a parallel between the role of the business ethicist and that of the psychoanalytic therapist. (shrink)

This paper aims to integrate insights from psychoanalytic theory into business ethics research on the sources of ethical failures within organizations. We particularly draw from the analysis of sources and outcomes of neurotic processes that are part of human development, as described by the psychoanalyst Karen Horney and more recently by Manfred Kets de Vries; we interpret their insights from a stakeholder theory perspective. Business ethics research seems to have overlooked how “neurotic management styles” could be the antecedents of unethical (...) behavior within organizations. After showing the connection between five managerial neuroses and the corresponding potential ethical failures within organizations that have been already identified within business ethics research, we suggest three organizational strategies to counteract these failures. First, we argue that managers should pay greater attention at the complexity of human motivation, avoiding the simplistic view of compliance‐based approaches. Second, we discuss the importance of developing a conversation around values within organizations, enabling healthy individual growth and limiting the emergence of neurotic processes. Finally, we discuss the role of the business ethicist in facilitating such a process, suggesting a parallel between the role of the business ethicist and that of the psychoanalytic therapist. (shrink)

This article uses institutional ethnography to investigate how accounting texts mediate the reshaping of managerial practice in the educational sector. The community college system in Ontario is currently undergoing an extensive process of restructuring. Operating grants have been reduced; government spending policies increasingly pull colleges into market relations. In this context, college administrators are working to develop new ways of "doing business." Integral to this are accounting procedures that play a powerful role in organizational restructuring by creating new patterns (...) of organizational visibility. One such, program costing, calculates the profitability rate of an academic department's various program offerings. As deans, department chairpersons, faculty and union representatives orient to this new visibility, the changes they introduce into their work routines bring market relevances into the local sites of college activity. (shrink)

This study adds to the empirical evidence supporting a significant connection between ethics and profitability by examining the connection between published reports of unethical behaviour by publicly traded U.S. and multinational firms and the performance of their stock. Using reports of unethical behaviour published in the Wall Street Journal from 1989 to 1993, the analysis shows that the actual stock performance for those companies was lower than the expected market adjusted returns. Unethical conduct by firms which is discovered and publicized (...) does impact on the shareholders by lowering the value of their stock for an appreciable period of time. Whatever their views on whether ethical behaviour is profitable, managers should be able to see a definite connection between unethical behaviour and the worth of their firm's stock. Stockholders, the press and regulators should find this information important in pressing for greater corporate and managerial accountability. (shrink)

This study examines whether religiosity is associated with the valuation multiples investors assign to fair-valued assets that are susceptible to managerial bias. Using a sample of U.S. banking firms, I find that the value relevance of such assets is higher for firms located in more religious counties than it is for firms located in less religious counties. Moreover, I find that this result is more consistent with the ethicality trait than the risk aversion trait of more religious individuals. Additional (...) tests show that the positive association between religiosity and value relevance of fair-valued assets is limited to firms with high fair value exposure, and it is stronger for firms with lower audit quality, lower institutional ownership, and lower analyst following. The results of this study suggest that investors perceive the role played by religiosity, in particular ethicality, in curbing managerial accounting biases and price accounting estimates accordingly. (shrink)

In the wake of recent corporate scandals, this paper traces the growing power of pension funds to provide managerial oversight of the firms they hold in their investment portfolios. Increasingly pension funds are exercising their legitimate rights as owners to raise the corporate governance standards of the firms they invest in. Within corporate governance generally, pension funds are shifting their attention away from managerial accountability and toward measures that increase transparency in firm-level decision-making. Pension funds use transparency (...) to ensure that shareholders are the primary interest being served by the firm. Transparency not only aligns managers and owners, it also raises issues of firm behaviour that allow other stakeholders to engage the corporation more broadly. I contend that secrecy is economically inefficient. When organizations are opaque and interests are secret, decision-making can and does distort efficiency. I examine recent pension fund corporate governance campaigns with particular reference to the California Public Employees Retirement System. (shrink)