ALBERT

Description: The explosion of health-related costs in U.S. firms over more than a decade is a huge concern for managers. The initiation of Health and Safety (H&S) programs at the firm level is an adequate Corporate Social Responsibility (CSR) initiative to contain this evolution. However, in spite of their documented efficiency, firms underinvest in those programs. This appears as a puzzle for health economists. In this paper, we uncover a strong negative relation of financial leverage to the implementation of H&S programs. The negative impact of debt on investment and CSR activities is generally interpreted as an efficient disciplinary effect of debt on managers. H&S are particularly well suited to revisit this evidence, given their strong profitability and homogeneity across firms. Very interestingly, the negative effect is stronger for firms with high free cash flows, for which debt is used to prevent overinvestment. This strongly suggests that debt, while disciplining managers, also discourages investments which are valuable both for firms and society.

Description: This paper explores the strategies organizations use to demonstrate their accountability for biodiversity and legitimize their impact in this area through the use of techniques of neutralization. Neutralization aims to manage stakeholder impressions on very socially sensitive issues. Based on the content analysis of 148 sustainability reports from mining organizations, the study sheds light on the successful use of rhetoric in reports on non-measurable and potentially unaccountable issues. Specifically, the study shows that mining organizations use four main techniques of neutralization when they explain their impact on biodiversity. When they address stakeholders, they defend their social legitimacy and environmental responsiveness using one of the four techniques: they claim of a net positive or neutral impact on biodiversity, they deny that they have a significant impact, they distance themselves from the impact of their actions, and they play down their responsibilities. The study contributes to the literature on corporate sustainability and accounting for stakeholders. It focuses on under-researched issues such as the management of biodiversity and the tactics used to rationalize negative impacts. The study also bridges the gap between theories about organizational legitimacy, impression management, and techniques of neutralization.

Description: Historical scientists frequently face incomplete data, and lack direct experimental access to their targets. This has led some philosophers and scientists to be pessimistic about the epistemic potential of the historical sciences. And yet, historical science often produces plausible, sophisticated hypotheses. I explain this capacity to generate knowledge in the face of apparent evidential scarcity by examining recent work on Thylacoleo carnifex , the ‘marsupial lion’. Here, we see two important methodological features. First, historical scientists are methodological omnivores, that is, they construct purpose-built epistemic tools tailored to generate evidence about highly specific targets. This allows them to produce multiple streams of independent evidence and thus maximize their epistemic reach. Second, investigative scaffolding: research proceeds in a piece-meal fashion, information only gaining evidential relevance once certain hypotheses are well supported. I illustrate scaffolding in a discussion of the nature of functional ascription in paleobiology. Frequently, different senses of ‘function’ are not discriminated during paleobiological investigation—something which can mar adaptationist investigations of extant organisms. However, I argue that, due to scaffolding, conflating senses of ‘function’ can be the right thing to do. Coarse-grained functional hypotheses are required before it is clear what evidence could discriminate between more fine-grained ones. I draw on omnivory and scaffolding to argue that pessimists make a bad empirical bet. It is a bad idea to bet against the epistemic fortunes of such opportunistic and resourceful scientists, especially when we have reason to think we will systematically underestimate the amount of evidence ultimately available to them.

Description: The paper documents the post-war retrenchment and failure of the post-war British Consumer Co-operative Movement. In contrast to the general failure one CEO, Terry Thomas stands out both for his success in co-operative rebranding and returning to profitability the UK Co-operative Bank and because he alone amongst the top echelons of the Co-operative Groups Management based his strategies on a clearly articulated philosophy based on his understanding of the values and purpose of the co-operative movement rooted in its historical traditions grounded in the writings and achievements of Robert Owen, The paper goes on to provide a case study of the bank’s process of transformation from loss-making subsidiary to the first positive co-operative national brand in the post-war period of its history. The author argues that lack of appropriate vision based on the founding values and purposes of the Co-operative Movement is the principal reason for the management’s and governance failures that have beset the UK Co-operative Group. Instead of using the past to help in understanding the present and planning for the future, the UK Co-operative Group Leadership ignored it or worse used the past successes to congratulate itself and disguise its manifest failures. In this, they were supported by an uncritical Co-operative Union (later renamed Co-operatives UK). Davis argues large co-operatives cannot be managed by a civil service responsible to an elected board. Co-operatives need a servant-leadership model of professional management dedicated to the transformational goals set by the founders of the co-operative movement. This needs a radical rethink and promotion of co-operative management education and a dedicated executive recruitment that seeks out value-based professionals whose attitudes and values are compatible with Co-operative values, ownership and purpose.

Description: While most studies dealing with waste reduction at the consumer level focus on recycling, this paper rather concentrates on precycling strategies and purchasing behaviors in order to understand how to promote waste reduction at the source. More specifically, the purpose of this work is to grasp consumers’ perceptions of overpackaging and understand the mechanisms underlying their choice of overpackaged versus non-overpackaged food products. Based on the different themes that emerged from a qualitative study (study 1, n  = 11), a quantitative research was conducted among French interviewees (study 2, n  = 327) in order to identify relevant groups of consumers. Five profiles emerged from the cluster analysis: the supporters, the self-sacrificing, the detractors, the indifferent, and the self-centered. Finally, an experiment was conducted (study 3, n  = 808) that highlights the influence of range positioning and salience of non-overpackaging on consumer choice. Implications for public policy makers and companies are discussed.

Description: The notion of shared value presents business with a challenge: to generate social benefit and profit simultaneously. This challenge involves resolving tensions/paradoxes inherent when integrating the apparent contradictory elements of social and economic values. Unfortunately, resolving such tensions is difficult due to the habitual, automatic nature of sensemaking. This paper offers a mechanism whereby individuals can, over time, begin to overcome habitual sensemaking and potentially resolve tensions inherent in shared value. The mechanism is labeled inner knowledge creation (IKC). IKC is described and its role in creating shared value for businesses is illustrated through a conceptual model. The model shows how IKC develops metacognitive capabilities, builds capacities to resolve tensions/paradoxes, and cultivates openness to others’ perspectives.

Description: We develop and use an integrated individual-level model to explain the driving forces behind digital piracy (DP) practice in two nations. The proposed model combines the Norm Activation model and Unified Theory of Acceptance and Use of Technology models. This study also explores the effect of culture on intention (INT) to practice DP in two nations: US (individualistic) and India (collectivistic). A survey instrument was used to collect data from 231 US and 331 Indian participants. Use of the integrated model proves to be a powerful and a viable approach to understanding DP across cultures. In each nation, all 10 path coefficients on the research model are statistically significant thereby establishing the fact that personal norm, together with other factors, influences INT to engage in DP, which in turn, may influence the actual practice. The results reveal a support for cross-cultural generalizability and applicability of the proposed model. Culture clearly plays a strong moderating role in two out of the three paths tested. The implications of the findings are discussed.

Description: While research has focused on why certain entrepreneurs elect to create innovative solutions to social problems, very little is known about why some social entrepreneurs choose to scale their solutions while others do not. Research on scaling has generally focused on organizational characteristics often overlooking factors at the individual level that may affect scaling decisions. Drawing on the multidimensional construct of moral intensity, we propose a theoretical model of ethical decision making to explain why a social entrepreneur’s perception of moral intensity of the social problem, coupled with their personal desire for control, can significantly influence scaling decisions. Specifically, we propose that higher levels of perceived moral intensity will positively influence the likelihood of scaling through open as opposed to closed modes in order to achieve greater speed and scope of social impact. However, we also propose this effect will be negatively moderated by a social entrepreneur’s higher levels of desire for control. Our model has implications for research and practice at the interface of ethics and social entrepreneurship.

Description: Ethical debate exists on the effect of gender diversity of the top management teams (TMTs) on organizations. This study aims to contribute to this debate by analyzing the effects of gender diversity of TMTs on the relationship between knowledge combination capability and organizations’ innovative performance. We use a sample of 205 small- and medium-sized enterprises (SMEs) belonging to the sector of Spanish technology-based firms (TBFs). Our results indicate that gender diversity positively moderates the relationship between knowledge combination capability and innovation performance. Implications for theory and practice are discussed—among them, ways to contribute to more equal gender distribution and to the benefits of gender diversity in top management positions.

Description: It is widely assumed that emotions have particular intentional objects. This assumption is consistent with the way that we talk: when we attribute states of anger, we often attribute anger at someone, or at something. It is also consistent with leading theories of emotion among philosophers and psychologists, according to which emotions are like judgments or appraisals. However, there is evidence from the social psychology literature suggesting that this assumption is actually false. I will begin by presenting a criterion for determining whether a mental state has a particular object. It is not sufficient for that state to be caused by an object or by a representation of a given object—the state must influence the subject’s thought and behavior in ways that are specific to that object. I will present evidence that emotions fail this test, and describe some of the reasons why we persistently attribute objects to our emotions. My view may seem untenable, because the literature on various aspects of emotional life such as normativity, linguistic expression, and behavioral influence consistently appeals to intentional objects. I will conclude by presenting a sketch of how I could address this concern.

Description: When I think of the single change that would most successfully transform our teaching practice and leverage truly significant benefits, it would be to bring much more of what learners already know into the classroom so that it can be shared, examined, refined and improved. At present, it would seem that the majority mode of teaching in the areas of ethics and social responsibility does a rather poor job of this, tending instead towards silencing the wisdom that is in the room in order that external perspectives can be more easily “instilled”. From many years of experimenting with a wide variety of approaches to teaching the subject, I find this to be deeply suboptimal and would seriously suggest that we ought to shift our practices in ways that make learners’ perspectives our primary material of interest.

Description: A growing body of literature documents the important role played by moral outrage or moral anger in stakeholders’ reactions to cases of corporate social irresponsibility. Existing research focuses more on the consequences of moral outrage than a systematic analysis of how appraisals of irresponsible corporate behavior can lead to this emotional experience. In this paper, we develop and test, in two field studies, an extended model of moral outrage that identifies the cognitions that lead to, and are associated with, this emotional experience. This research contributes to the existing literature on reactions to corporate social irresponsibility by explaining how observers’ evaluation of irresponsible corporate behavior leads to reactions of moral anger. The paper also helps clarify the difference between moral outrage and other types of anger and offers useful insights for managers who have to confront public outrage following cases of irresponsible corporate behavior. Finally, the analysis of the causes of stakeholders’ anger at irresponsible corporations opens important avenues for future research that are presented in the paper.

Description: Motivated by contemporary debates concerning whether directors inappropriately deploy corporate funds for corporate political donations and the limited research into managerial influence on corporate political donations, we examine the impact of director influences from a network perspective. Using a sample of large listed Australian corporations and their political party donation activity during 2000–2007, we find that both the professional and non-professional networks of directors influence corporate political donations. We observe these influences in relation to donations at the federal and state levels, and with respect to the choice of recipient political parties.

Description: This study examines whether corporate social responsibility performance is associated with corporate tax avoidance. Employing a matched sample of 434 firm-year observations (i.e., 217 tax-avoidant and 217 non-tax-avoidant firm-year observations) from the Kinder, Lydenberg, and Domini database over the period 2003–2009, our logit regression results show that the higher the level of CSR performance of a firm, the lower the likelihood of tax avoidance. Our results indicate that more socially responsible firms are likely to display less tax avoidance. Finally, the results from our additional analysis show that the CSR categories community relations and diversity represent particularly important elements of CSR performance that reduce tax avoidance.

Description: Recent work in the philosophy of biology has attempted to clarify and defend the use of the biodiversity concept in conservation science. I argue against these views, and give reasons to think that the biodiversity concept is a poor fit for the role we want it to play in conservation biology on both empirical and conceptual grounds. Against pluralists, who hold that biodiversity consists of distinct but correlated properties of natural systems, I argue that the supposed correlations between these properties are not tight enough to warrant treating and measuring them as a bundle. I additionally argue that deflationary theories of biodiversity don’t go far enough, since a large proportion of what we value in the environment falls outside bounds of what could reasonably be called “diversity”. I suggest that in current scientific practice biodiversity is generally an unnecessary placeholder for biological value of all sorts, and that we are better off eliminating it from conservation biology, or at least drastically reducing its role.

Description: Does honesty result from the absence of temptation or the active resistance of temptation? The “will’’ hypothesis suggests that honesty results from the active resistance of temptation, while the ”grace” hypothesis argues that honesty results from the absence of temptation. We examined reaction time and measured the cheating behavior of individuals who had a chance to lie for money. In study 1, we tested the “grace” hypothesis that honesty results from the absence of temptation and found a priming effect of moral constructs on increasing honest behavior. In study 2, we investigated the individual’s moral identity in the same context, articulating different mechanisms that lead people to behave ethically. The result confirms that the “grace” hypothesis was valid for people who had a high moral identity, while the “will” hypothesis was accurate for individuals who had a low moral identity.

Description: Current organizations are underpinned by utilitarian ethics of Modernity. Pure economic motive driven organizations detach themselves from larger societal interest. Rising number of corporate scandals and intraorganizational income inequalities are breeding similar trends in society at large. Current organizations base their competitive advantage on resources and capabilities which boils down to economic supremacy at all cost whether it is named I/O or RBV of the firm. This theoretical article posits Ethics-based Trust as the main competency and capability for attaining sustained competitive advantage. It in no way condemns utility view of the firms but treats it as a natural yet secondary outcome of genuine ethicality of the firm. Cultivating an ethical culture in the firm through identifying antecedents, organizational practices, and the outcomes where profitability is an automatic but secondary outcome under the supremacy of ethics is detailed in the multilevel model presented in this article. The main call of this article is to posit ethics and morality over and above short-term profits so that organizations fulfill their trustee role for society through enacting socio-humanistic theories within organizations. A brief analysis of the proposed ethical theory of firm is undertaken in light of the “schooling” notion in the contemporary organization theory literature.

Description: Using a policy-capturing approach with a broad student sample we examine how individuals’ economic, social and environmental values influence their propensity to engage in a broad range of sustainability-related corporate actions. We employ a multi-dimensional sustainability framework of corporate actions and account for both the positive and negative impacts associated with corporate activity—termed strength and concern actions, respectively. Strong economic values were found to increase the propensity for concern actions and the willingness to work in controversial industries. Individuals with balanced values were as likely as those with strong economic values to pursue positive economic outcomes, but without the same downside potential for concern actions. We also found significant gender effects, with females being less likely to engage in concern actions and more supportive of social and environmental strength actions.

Description: This paper argues that since the last decades of the twentieth century the discipline of modern finance has directed fiduciaries to act "rationally"—that is, in the sole financial interest of their funds--downplaying the effects of their investments on others. This approach has deemphasized a previous, more "reasonable" interpretation of fiduciary duty that drew on a conception of prudence characterized by wisdom, discretion and intelligence—one that accounts to a greater degree for the relationship between one's investments and their effects on others in the world. The reasonable approach allows fiduciaries to a greater degree to assess the objective well-being of beneficiaries, to recognize fundamental sources of investment reward in the economy, and to fulfill their obligations to allocate benefits impartially between current and future generations. Reason and rationality can work in a complementary fashion to make investment long-term in its perspective and beneficial to society and the economy as well as to specific funds or portfolios. Determining how to accomplish this challenging task is part of the obligation of fiduciaries as they seek to realize the full potential of the investment assets entrusted to their care.

Description: As it has become more and more urgent to solve the problems of environmental protection, we consider it necessary to conduct multilevel studies to examine the impact of business strategy on both employees’ and firms’ performances in environmental protection. Synthesizing the perspectives of strategic orientation, corporate strategy, and firm performance, we propose a comprehensive theoretical model linking market orientation and environmental performance. Based on a survey of 134 matched chief executive officers, senior marketing managers and frontline workers from Chinese firms, we found that market orientation positively affects environmental strategy which, in turn, influences both environmental product quality and employees’ environmental involvement. These latter two variables consequently have a positive influence on environmental performance. At the same time, environmental commitment moderates the link between market orientation and environmental strategy.

Description: Drawing on both a managerial discipline perspective and an information intermediary perspective, we explore how media coverage of a firm’s controlling shareholder influences firm valuation in corporate China. Using 366 listed family firms in China from 2003 to 2006, we find that firms in which controlling shareholders receive more neutral media reports enjoy higher valuation, whereas negative media reports on controlling shareholders impose adverse effects on firm valuation. Interestingly, favorable media coverage of the controlling shareholders does not enhance firm value. Further analyses reveal that ownership structure and audit quality moderate the relationship between media coverage and firm valuation. Our study complements the emerging literature on the monitoring role of the media on the stock markets.

Description: In this article, we investigate the relationship between religion, spirituality, and sustainability ethics. We focus on the sustainability efforts and channels that a Catholic Jesuit university employs in defining sustainability for business education and the global community through a consideration of the themes of social justice and the value of life. Specifically, we examine the model embraced by Loyola University Chicago (LUC), which promotes sustainability ethics and initiatives through their campus infrastructure, academic curriculum, and institutional culture. We examine emerging student-run businesses and their impact on the environment from a social justice perspective. Sustainability initiatives include on-campus biodiesel production, bottled water bans, sustainable farming, water conservation, and the creation of a sustainability dashboard.

Description: In this paper we reconsider Adam Smith’s ethics, what he means by self-interest and the role this plays in the famous “invisible hand.” Our efforts focus in part on the misreading of “the invisible hand” by certain economists with a view to legitimizing their neoclassical economic paradigm. Through exegesis and by reference to notions that are developed in Smith’s two major works, we deconstruct Smith’s ideas of conscience, justice, self-interest, and the invisible hand. We amplify Smith’s insistence, through his notions of the virtues, that as human beings, and by analogy, organizations, we are intrinsically social, rather than selfish and or egoistically self-centered. Thus, we have responsibilities to and because of others. We conclude that such a managerialist preoccupation with shareholder value is challenged, if not completely refuted, by taking seriously the social character of Smith’s complex vision of commerce.

Description: This study seeks to understand how consumers make unethical decisions and how unethical consumer behavior (UCB) is formed in a relational society. By taking a relational interactive perspective and adopting a grounded theory approach, we have developed a theoretical framework for examining UCB’s developmental process in a relational society. The framework reveals 4 levels (i.e., the socio-cultural, individual psychological, situational, and individual behavioral levels) and 12 paths of UCB formation. Importantly, this study finds that UCB in a relational society is influenced by guanxi -oriented social culture so deeply that it cannot be considered the result of a purely individual behavior choice.

Description: There has been increasing interest in the relevance of virtue approaches to ethics over the past 15 years. However, debate surrounding the virtue approach in the business, management and organisational studies literature has lacked progress. First, this literature focuses on a narrow range of philosophers, and, second, it has failed to analyse properly the consequences of virtue theory for action in practical settings other than in abstract terms. In order to begin addressing these issues, this paper compares what two virtue frameworks—one focused on virtue in the context of community and the other on individuals as virtuous agents—lead to when evaluating the actions of parties to the 2002–2004 UK Fire Service dispute. The analysis argues that the virtue frameworks proposed by MacIntyre and Slote offer different but complimentary evaluations. Both not only point to potential problems with industrial disputes, but also recognise the legitimacy of action that is based in good motivations and carried out with regard for the virtues. It seems that fire fighters and their immediate supervisors, on the whole, met the conditions of virtue, but that it is open to question if the leaders of the Fire Brigades Union and the Government did the same. The analysis goes on to suggest which modes of negotiation would be acceptable under the virtue frameworks, and the implications for those involved in industrial dispute.

Description: The authors describe the intensity and orientation of the corporate social responsibility (CSR) reporting in four Spanish industries and explore the relationship that exists between both concepts and an independent measurement of reputation for CSR (CSRR). The results demonstrate that the CSR reporting is especially relevant and useful in the finance industry. Finance companies report significantly more CSR information than most industries in Spain, and this reporting is more closely linked to their CSRR than the CSR reporting of basic, consumer goods and services industries.

Description: Family firms are ubiquitous and play a crucial role across all world economies, but how they differ in the disclosure of social and environmental actions from non-family firms has been largely overlooked in the literature. Advancing the discourse on corporate social responsibility reporting, we examine how family influence on a business organization affects CSR reporting. The arguments developed here draw on institutional theory, using a rich body of empirical evidence gathered through a content analysis of the CSR reports of 98 large- and medium-sized Italian firms. The grounded theory analysis informs and contextualizes several differences in the type and content of corporate social responsibility reports of family and non-family firms. Our findings show that in comparison to non-family firms, family firms disseminate a greater variety of CSR reports, are less compliant with CSR standards and place emphasis on different CSR topics. We, thus, contribute to the family business and corporate social responsibility reporting literatures in several ways, offering implications for practice and outlining promising avenues for future research.

Description: The aim of this paper is to explore the role of ethical climate on the relationship between the paternalistic leadership and team identification at the team level. In contrast to the prior studies which tended to focus on ethical climate as a whole dimension, this paper further classified the domain of construct into the categories of egoism, benevolence, and principle using a sample from 143 teams in Mainland China and Taiwan. Hierarchical regression results showed that the average paternalistic leadership had a significant impact on the team identification at the team level. Moreover, the results indicated that the ethical climate of benevolence fully mediated while the ethical climate of egoism partially mediated the relationship between authoritarian leadership and team identification. Also, the ethical climates of benevolence and principle had a partial mediating effect on the relationship between benevolent leadership and team identification as well as moral leadership and team identification, respectively, but the ethical climate of egoism did not play a significant role. The major findings, theoretical contributions, practical implications, and the limitations were discussed.

Description: This experimental study extends prior capital market and environmental accounting research by utilizing the theoretical underpinnings of legitimation through impression management, source credibility bias, perceived trust, and ideology in assessing the influence of discretionary environmental accounting narratives on jurors’ punitive damage award assessments. We utilize mock jurors as environmental stakeholders and find that: (1) jurors in a court case involving corporate environmental malfeasance assess lower punitive damage awards against a firm that provides discretionary disclosure on its website regarding future abatement and control narratives, (2) environmental sensitivity of the firm’s industry moderates the negative relationship between the discretionary disclosure and jurors’ punitive damage award assessments, and (3) juror’s perceived trust toward firm management mediates the prior moderation effect. Further, juror political ideology is found to affect the punitive damage award assessments, with liberal jurors levying comparatively higher awards than conservative jurors.

Description: This article explores whether political corporate social responsibility (PCSR) may be better understood through its inclusion into the realm of high politics instead of its current characterization as belonging to low politics . The key argument is that the growing role of private companies in the provision of security is too widespread and its implications are too important to be ignored by the PCSR literature. By extending the scope of its inquiry into high politics, the insights from PCSR research could enrich the debates in several other social sciences that also study political roles of private companies. An interdisciplinary dialog about the numerous inroads of private companies into high politics could help the PCSR scholars in their quest to reach beyond an instrumental view of corporate politics.

Description: Concern for NGO accountability has been intensified in recent years, following the growth in the size of NGOs and their power to influence global politics and curb the excesses of globalization. Questions have been raised about where the sector embraces the same standards of accountability that it demands from government and business. The objective of this paper is to examine one aspect of NGO accountability, its discharge through annual reporting. Using Habermas’ ( 1984 ; 1987 ) theory of communicative action, and specifically its validity claims, the research investigates whether NGOs use their annual reporting process to account to the host societies in which they operate or steer stakeholder actions toward their own self-interests. The results of the study indicate that efforts by organizations to account are characterized by communicative action through the provision of truthful disclosures, generally appropriate to the discharge of accountability and in a manner intended to improve their understandability. At the same time, however, some organizations exhibit strategically oriented behaviors in which the disclosure content is guided by the opportunity to present organizations in a particular light and there appears a lack of rhetor authenticity. The latter findings cast doubt on the ethical inspiration of NGOs and the values they demand from business communities, and questions arise as to why such practices exist and what lessons can be learnt from them.

Description: Ethological theories usually attribute semantic content to animal signals. To account for this fact, many biologists and philosophers appeal to some version of teleosemantics. However, this picture has recently came under attack: while mainstream teleosemantics assumes that representational systems must cooperate, some biologists and philosophers argue that in certain cases signaling can evolve within systems lacking common interest. In this paper I defend the standard view from this objection.

Description: How is the human tendency and ability to collaborate acquired and how did it evolve? This paper explores the ontogeny and evolution of human collaboration using a combination of theoretical and empirical resources. We present a game theoretic model of the evolution of learning in the Stag Hunt game, which predicts the evolution of a built-in cooperative bias. We then survey recent empirical results on the ontogeny of collaboration in humans, which suggest the ability to collaborate is developmentally stable across a range of environments. Lastly, we use an account of innateness developed by Ariew (Philos Sci 63:S19–S27, 1996 ) and Sober (Routledge encyclopedia of philosophy. Routledge, London, pp 794–797, 1998 ) to assess the extent that (1) the model predicts the fixation of innate collaboration and (2) the empirical studies show a human’s ability to collaborate to be innate.

Description: Because previous scholars have offered few comprehensive models to understand the benefits of corporate social responsibility image in terms of customer behaviour, the authors of this paper propose a hierarchy of effects model to study how customer perceptions of the social responsibility of companies influence customer affective and conative responses in a service context. The authors test a structural equation model using information collected directly from 1,124 customers of banking services in Spain. The findings demonstrate that corporate social responsibility image influences customer identification with the company, the emotions evoked by the company and satisfaction positively. Identification also influences the emotions generated by the service performance and customer satisfaction determines loyalty behaviour. The findings have significant implications for service managers because they demonstrate that there are two paths to explain the satisfaction and loyalty of service customers. The first path is composed of the beliefs and emotions generated by the company at the institutional level. The second path is composed of the thoughts, attitudes, emotions and feelings generated by the company’s services.

Description: Interest in credit ratings agencies and their role in financial markets is at an all-time high. Concerns about a lack of transparency concerning process, conflicts of interest, and limited competition are frequently discussed by politicians, regulators and other commentators. These issues we term the credit ratings agency (CRA) trinity of solicitude. We shed some light on this trinity by considering the unique relationship that exists between corporate borrowers (debt issuers) and the CRAs they engage to rate their securities. The exchange relationships literature is used to create a model where commitment plays a central role. Technical qualities, relationship qualities and dependence are theorised as antecedents of commitment, which is described by two constructs of affective commitment and calculative commitment. The issuer’s intention to remain with the CRA, their loyalty, is the consequence of commitment. The model is operationalized by means of a survey questionnaire administered to issuers of corporate debt in the United Kingdom. As expected, perceptions of the quality of the relationship and affective commitment play an important role in CRA-issuer relations. However, contrary to expectations, the technical quality of the rating and issuer dependence on the CRA play little role in determining commitment and continuance. The implications of these findings are discussed along with areas for future research.

Description: This article explores the transition to integrated reporting by a customer-owned bank (referred to as Goodbank) and identifies the drivers of this transition, thereby providing insights for other businesses seeking to engage in such reporting. Practice theory provides a theoretical lens for this study. A case study approach encompassing in-depth interviews and documents analysis enabled the data to be collected for this research. This study finds that a customer-owned business context enables innovative approaches to reporting. An understanding of reporting and recognition of the potential value of integrated reporting, basic guidelines for such a practice, and organisational ethical values and goals based on a combination of economic, social and environmental considerations matched by an organisational structure that embeds economic, social and environmental responsibilities rather than treating these as separate silos, enabled Goodbank to transition to integrated reporting and differentiate itself from its competitors and other organisations.

Description: Quantitative analysts or “Quants” are a source of competitive advantage for financial institutions. They occupy the relatively powerful but often misunderstood role of modeling, structuring, and pricing complex financial instruments in the capital markets. But Quants often function in a discipline free from ethical burdens. Models used to price complex instruments are usually beyond the mathematical understanding of financial sector participants who rely heavily on the integrity of the Quant who built them. Although there has been some attempt to cover the ethics of mathematics applied to the capital markets, designing a set of rules to guide the ethical behavior of Quants cannot be made explicit and remains inexpressible. Because Quants generally experience a sense of detachment from moral obligation, there is a growing need to convert moral detachment into engagement. Our framework is indebted to key elements of Wittgenstein’s practical ethics philosophy and Rawls’ justice principle. The burden of balancing justice as fairness as defined by Rawls with the inability to explicitly articulate ethical rules as defined by Wittgenstein must fall to the Quant. We propose that the threshold delineating the barrier between ethical detachment and engagement can only be defined by the Quants themselves. It is their moral duty to disclose their level of ethical engagement when their models are put into practice.

Description: To explain agent-identification behaviours, universalist theories in the biological and cognitive sciences have posited mental mechanisms thought to be universal to all humans, such as agent detection and face recognition mechanisms. These universalist theories have paid little attention to how particular sociocultural or historical contexts interact with the psychobiological processes of agent-identification. In contrast to universalist theories, contextualist theories appeal to particular historical and sociocultural contexts for explaining agent-identification. Contextualist theories tend to adopt idiographic methods aimed at recording the heterogeneity of human behaviours across history, space, and cultures. Defenders of the universalist approach tend to criticise idiographic methods because such methods can lead to relativism or may lack generality. To overcome explanatory limitations of proposals that adopt either universalist or contextualist approaches in isolation, I propose a philosophical model that integrates contributions from both traditions: the psycho-historical theory of agent-identification. This theory investigates how the tracking processes that humans use for identifying agents interact with the unique socio-historical contexts that support agent-identification practices. In integrating hypotheses about the history of agents with psychological and epistemological principles regarding agent-identification, the theory can generate novel hypotheses regarding the distinction between recognition-based, heuristic-based, and explanation-based agent-identification.

Description: In its last round of publications in September 2012, the Encyclopedia Of DNA Elements (ENCODE) assigned a biochemical function to most of the human genome, which was taken up by the media as meaning the end of ‘Junk DNA’. This provoked a heated reaction from evolutionary biologists, who among other things claimed that ENCODE adopted a wrong and much too inclusive notion of function, making its dismissal of junk DNA merely rhetorical. We argue that this criticism rests on misunderstandings concerning the nature of the ENCODE project, the relevant notion of function and the claim that most of our genome is junk. We argue that evolutionary accounts of function presuppose functions as ‘causal roles’, and that selection is but a useful proxy for relevant functions, which might well be unsuitable to biomedical research. Taking a closer look at the discovery process in which ENCODE participates, we argue that ENCODE’s strategy of biochemical signatures successfully identified activities of DNA elements with an eye towards causal roles of interest to biomedical research. We argue that ENCODE’s controversial claim of functionality should be interpreted as saying that 80 % of the genome is engaging in relevant biochemical activities and is very likely to have a causal role in phenomena deemed relevant to biomedical research. Finally, we discuss ambiguities in the meaning of junk DNA and in one of the main arguments raised for its prevalence, and we evaluate the impact of ENCODE’s results on the claim that most of our genome is junk.

Description: Organisms can be treated as optimizers when there is consensus among their genes about what is best to be done, but genomic consensus is often lacking, especially in interactions among kin because kin share some genes but not others. Grafen adopts a majoritarian perspective in which an individual’s interests are identified with the interests of the largest coreplicon of its genome, but genomic imprinting and recombination factionalize the genome so that no faction may predominate in some interactions among kin. Once intragenomic conflicts are recognized, the individual organism can be conceptualized as an arbiter among competing interests within a collective. Organismal adaptation can be recognized without phenotypes being optimized.

Description: This paper is a commentary on the focal article by Grafen and on earlier papers of his on which many of the results of this focal paper depend. Thus it is in effect a commentary on the “formal Darwinian project”, the focus of this sequence of papers. Several problems with this sequence are raised and discussed. The first of these concerns fitness maximization. It is often claimed in these papers that natural selection leads to a maximization of fitness and that this view is claimed in Fisher’s “fundamental theorem of natural selection”. These claims are refuted, and various incorrect statements about the meaning and interpretation of the fundamental theorem of natural selection, in this sequence and in other papers by other authors, are discussed. Next, much of the work in this sequence rests on the first Price equation. In the deterministic (infinite population) case this equation is no more than the standard classical equation relating to changes in gene frequencies. In the stochastic case the equation gives the change in gene frequencies as the sum of two terms (the second of which vanishes in the deterministic case). These two terms are of essentially equal importance in the situation considered in the focal article, yet one of Grafen’s results ignores the second term in the stochastic analysis. This is associated with a wavering between deterministic and stochastic analyses and the use of the Price fitness concept and the classical fitness concept. These comments cast doubts on Grafen’s optimization theory.

Description: This paper uses the framework of Formal Darwinism (FD) to evaluate organism-centric critiques of the Modern Synthesis (MS). The first section argues that the FD project reconciles two kinds of selective explanations in biology. Thus it is not correct to say that the MS neglects organisms—instead, it explains organisms’ design, as argued in the second section. In the third section I employ a concept of the organism derived from Kant that has two aspects: the parts presupposing the whole, and the productivity of the parts in relation to the whole. The first aspect corresponds to the “design” that FD explains, whereas the second aspect is something about which the MS is largely silent.

Description: One key aim of Grafen’s Formal Darwinism project is to formalize ‘modern biology’s understanding and updating of Darwin’s central argument’. In this commentary, I consider whether Grafen has succeeded in this aim.

Description: The Formal Darwinism Project is an attempt to use mathematical theory to prove the claim that fitness maximization is the outcome of evolution in nature. Grafen’s ( 2014 , p. 12) conclusion from this project is that “….there is a very general expectation of something close to fitness maximisation, which will convert into fitness-maximisation unless there are particular kinds of circumstances—and further, that fitness is the same quantity for all genetic architectures.” Grafen’s claim appears to mean to him that natural populations are expected to contain individuals whose traits are optimal, i.e., any given trait outperforms all reasonable alternatives. I describe why Grafen’s attempt can never provide a meaningful expectation as to the ubiquity of optimal traits in nature. This is so because it is based upon a misconception of the relationship between theory and empirical analysis. Even if one could use theory in the way Grafen proposes, I describe how his theory is causally incomplete. Finally, I describe how Grafen’s conceptual framework is ambiguous. The Formal Darwinism Project has been inspired by “On The Origin of Species” by Darwin. The great lesson of this book was Darwin’s demonstration of the necessary dialog between theory and data, with each influencing and being influenced by the other. Grafen’s Formal Darwinism Project, an attempt to create understanding of nature by removing data from this dialog, reflects a failure to understand Darwin’s great lesson.

Description: I argue that Grafen’s formal darwinism project could profitably incorporate a gene’s-eye view, as informed by the major transitions framework. In this, instead of the individual being assumed to maximise its inclusive fitness, genes are assumed to maximise their inclusive fitness. Maximisation of fitness at the individual level is not a straightforward concept because the major transitions framework shows that there are several kinds of biological individual. In addition, individuals have a definable fitness, exhibit individual-level adaptations and arise in a major transition, only to the extent that the inclusive-fitness interests of genes within them coincide. Therefore, as others have suggested, the fundamental level at which fitness is maximised is the gene level. Previous reconciliations of the concepts of gene-level fitness and individual-level fitness implicitly recognise this point. Adaptations always maximise the fitness of their causative genes, but may be simple or complex. Simple adaptations may be controlled by single genes and be maladaptive at higher levels, whereas complex adaptations are controlled by multiple genes and rely on those genes having coinciding fitness interests at a higher level, for a given trait.

Description: Two questions are raised for Grafen’s formal darwinism project of aligning evolutionary dynamics under natural selection with the optimization of phenotypes for individuals of a population. The first question concerns mean fitness maximization during frequency-dependent selection; in such selection regimes, not only is mean fitness typically not maximized but it is implausible that any parameter closely related to fitness is being maximized. The second question concerns whether natural selection on inclusive fitness differences can be regarded as individual selection or whether it leads to a departure from the central motivation that led to the formal darwinism project, viz., to show that “Darwinian” evolution through individual selection leads to “good design” or phenotypic adaptation through trait optimization.

Description: We critically examine a number of aspects of Grafen’s ‘formal Darwinism’ project. We argue that Grafen’s ‘selection-optimality’ links do not quite succeed in vindicating the working assumption made by behavioural ecologists and others—that selection will lead organisms to exhibit adaptive behaviour—since these links hold true even in the presence of strong genetic and developmental constraints. However we suggest that the selection-optimality links can profitably be viewed as constituting an axiomatic theory of fitness. Finally, we compare Grafen’s project with Fisher’s ‘fundamental theorem of natural selection’, and we speculate about whether Grafen’s results can be extended to a game-theoretic setting.

Description: The Formal Darwinism project probes the connections between the dynamics of natural selection and the design of organisms. Here, I explain why this work should be of interest to philosophers, arguing that it is the natural development in a long-running scholarly enquiry into the meaning of life. I then review some of my own work which has applied the tools of Formal Darwinism to address issues concerning the units of adaptation in social evolution, leading to a deeper understanding of the adaptation of individual organisms. Finally, I sketch some directions Formal Darwinism to explore beyond the biological sciences, with a focus upon cosmology.

Description: The broader context for the formal darwinism project established by two of the commentators, in terms of reconciling the Modern Synthesis with Darwinian arguments over design and in terms of links to other types of selection and design, is discussed and welcomed. Some overselling of the project is admitted, in particular of whether it claims to consider all organic design. One important fundamental question raised in two commentaries is flagged but not answered of whether design is rightly represented by an optimisation program, and another from one commentary of whether the coreplicon dissolves in the face of multi-generational imprinting. Calls for the project to be extended to design at levels above and below the individual are considered sympathetically, but judged impractical at the high level of abstraction of the project. All claims of substantive technical error are emphatically rejected. Close technical readings are welcomed that, among other things, represent the project as 'axiomatizing fitness'. The prospects for the project are set out in the light of this highly varied set of commentaries.

Description: Individual-as-maximizing agent analogies result in a simple understanding of the functioning of the biological world. Identifying the conditions under which individuals can be regarded as fitness maximizing agents is thus of considerable interest to biologists. Here, we compare different concepts of fitness maximization, and discuss within a single framework the relationship between Hamilton’s (J Theor Biol 7:1–16, 1964 ) model of social interactions, Grafen’s (J Evol Biol 20:1243–1254,  2007a ) formal Darwinism project, and the idea of evolutionary stable strategies. We distinguish cases where phenotypic effects are additive separable or not, the latter not being covered by Grafen’s analysis. In both cases it is possible to define a maximand, in the form of an objective function ϕ ( z ), whose argument is the phenotype of an individual and whose derivative is proportional to Hamilton’s inclusive fitness effect. However, this maximand can be identified with the expression for fecundity or fitness only in the case of additive separable phenotypic effects, making individual-as-maximizing agent analogies unattractive (although formally correct) under general situations of social interactions. We also feel that there is an inconsistency in Grafen’s characterization of the solution of his maximization program by use of inclusive fitness arguments. His results are in conflict with those on evolutionary stable strategies obtained by applying inclusive fitness theory, and can be repaired only by changing the definition of the problem.

Description: Agency work is one of the most rapidly growing forms of employment in leading economies over the past two decades, signifying a global shift towards non-standard flexible employment modes. The rapid growth of agency work has become one of the most notable global employment trends and is set to become a permanent feature of the modern workplace. The growth of agency employment raises a number of ethical challenges for governments and businesses. A key emerging challenge is to identify firm-level HRM strategies to effectively manage and protect agency employees. Based on an extensive review of the existing research on agency work, this article develops an organizational-level flexicurity model of HRM as a promising answer to effectively manage agency employees in responsible ways within the context of increasing employment flexibilization. This article also develops a research agenda, providing a platform to inform future research.

Description: The formal darwinism project aims to provide a mathematical framework within which important fundamental ideas in large parts of biology can be articulated, including Darwin's central argument in The Origin (that mechanical processes of inheritance and reproduction can give rise to the appearance of design), modern extensions of evolutionary theory including ESS theory and inclusive fitness, and Dawkins' synthesis of them into a single structure. A new kind of argument is required to link equations of motion on the one hand to optimisation programs on the other, and a major point is that the biologist's concept of fitness maximisation is not represented by concepts from dynamical systems such as Lyapunov functions and gradient functions. The progress of the project so far is reviewed, though with only a brief glance at the rather complicated mathematics itself, and the centrality of fitness maximisation ideas to many areas of biology is emphasised.

Description: Corporate social responsibility (CSR) is a recognised and common part of business activity. Some of the regularly cited motives behind CSR are employee morale, recruitment and retention, with employees acknowledged as a key organisational stakeholder. Despite the significance of employees in relation to CSR, relatively few studies have examined their engagement with CSR and the impediments relevant to this engagement. This exploratory case study-based research addresses this paucity of attention, drawing on one to one interviews and observation in a large UK energy company. A diversity of engagement was found, ranging from employees who exhibited detachment from the CSR activities within the company, to those who were fully engaged with the CSR activities, and to others who were content with their own personal , but not organisational, engagement with CSR. A number of organisational context impediments, including poor communication, a perceived weak and low visibility of CSR culture, and lack of strategic alignment of CSR to business and personal objectives, served to explain this diversity of employee engagement. Social exchange theory is applied to help explore the volition that individual employees have towards their engagement with CSR activities, and to consider the implications of an implicit social, rather than explicit economic, contract between an organisation and its employees in their engagement with CSR.

Description: We develop a theoretical model of income and pay comparison satisfaction with two mediators (love of money and pay comparison standards), examine the direct and the indirect paths of our model, and treat culture (the US vs. Spain) as a moderator. Based on 311 professors in the US and Spain, we demonstrate a positive direct path and a negative indirect path. Our subsequent multi-group analysis illustrates: For American professors, their direct path shows that income is directly related to high pay comparison satisfaction. Their indirect path reveals the following new insights: Professors with high income have a strong love of money orientation, set their pay equity comparison standards (deserved pay and other’s salary) significantly higher than their own salary, and as a consequence, have low pay comparison satisfaction. For Spanish professors, love of money is not related to their pay comparison standards which are slightly (non-significantly) higher than their own self-reported income. Neither the direct nor the indirect path is significant. The standardized total effect of income to pay satisfaction is positive for American professors, but negligible for Spanish professors. Are you satisfied with your pay when you compare? Our results demonstrate that pay comparison satisfaction depends on not only one’s income but also one’s love of money and pay equity comparison standards which may vary across cultures.

Description: Meaningful work is both a moral issue and an economic one. Studies show that workers’ experience of meaninglessness in their jobs contributes to job dissatisfaction which has negative effects to business. If having a meaningful work is essential for the well-being of workers, providing them with one is an ethical requirement for business establishments. The essay aims to articulate an account of meaningful work in the Catholic social teachings (CST). CST rejects the subjectivist and relativist notion of work which affirms the absolute freedom of individuals to choose their commitment and goals, even if this includes experiencing satisfaction in dehumanizing work. First, the paper will present a summary account of some of the current views on meaningful work from the objective-normative approach. This will be followed by a systematic treatment of the meaning and value of work in the CST, the similarities and differences it has with alternative views, and its implications for the way we promote meaningful work. The paper will argue that by recognizing the subjective and objective dimensions of work and affirming that although the two are inseparable, the former takes priority over the latter; CST develops a holistic, comprehensive, and coherent account of meaningful work which overcomes some of the difficulties that are usually encountered in dealing with this issue from a purely objective approach.

Description: Addiction is almost universally held to be characterized by a loss of control over drug-seeking and consuming behavior. But the actions of addicts, even of those who seem to want to abstain from drugs, seem to be guided by reasons. In this paper, I argue that we can explain this fact, consistent with continuing to maintain that addiction involves a loss of control, by understanding addiction as involving an oscillation between conflicting judgments. I argue that the dysfunction of the mesolimbic dopamine system that typifies addictions causes the generation of a mismatch between the top-down model of the world that reflects the judgment that the addict ought to refrain from drugs, and bottom-up input caused by cues predictive of drug availability. This constitutes a powerful pressure toward revising the judgment and thereby attenuating the prediction error. But the new model is not stable, and shifts under the pressure of bottom-up inputs in different contexts; hence the oscillation of all-things-considered judgment. Evidence from social psychology is adduced, to suggest that a similar process may be involved in ordinary cases of weakness of will.

Description: The literature is replete with articles emphasizing the importance of corporate social responsibility. However, few, if any, of these articles discuss the role of the consumer in achieving corporate social responsibility. It is the premise of the current paper that it may be difficult for corporate social responsibility to succeed without the assistance of consumers. That is, for corporate social responsibility to flourish, it needs to be accompanied by consumer social responsibility (CnSR). This paper examines this proposition, makes the distinction between consumer ethics and CnSR, and presents research in these two expanding areas of inquiry, examining literature which supports the role of CnSR in complementing corporate social responsibility.

Description: This article examines the contribution of one Islamic scholar, Fetullah Gülen to the debate about the meaning and practice of responsibility. It analyses Gülen’s thinking in terms of three inter-connected modes of responsibility: relational accountability (the framework for responsibility), moral agency (teleological, virtue focused and action centred) and liability. This view of responsibility is contrasted with major western philosophers such as Levinas, Buber and Jonas, Islamic tradition and the major views about corporate responsibility, including stakeholder theory. The role of dialogue in embodying the three modes of responsibility is then analysed. The social responsibility practice of business leaders who are part of Gülen’s Hizmet Movement is briefly surveyed to illustrate the embodiment of responsibility. This focuses on the contribution of business to education and peace building, and includes the example of Zaman Daily .

Description: This study examined the relationship between CEO ethical leadership and corporate social responsibility by focusing on the mediating role of organizational ethical culture and the moderating role of managerial discretion (i.e., CEO founder status and firm size). Based on a sample of 242 domestic Chinese firms, we found that CEO ethical leadership positively influences corporate social responsibility via organizational ethical culture. In addition, moderated path analysis indicated that CEO founder status strengthens while firm size weakens the direct effect of CEO ethical leadership on organizational ethical culture and its indirect effect on corporate social responsibility. Theoretical and managerial implications of these results are discussed.

Description: Drawing on insights from evolutionary psychology and modern neuroscience, this paper highlights propositions about human nature that have far reaching consequences, when applied to leadership. We specifically examine the main factors of human survival and extend them to a model for leadership in the twenty-first century. The discussion concludes with an outlook on the organizational and structural conditions that would allow for better and more balanced leadership.

Description: Consumer surveys repeatedly suggest that corporate social responsibility (CSR) and products’ social, environmental, or ethical attributes enhance consumers’ purchase intentions. The realization that CSR still has only a minor impact on consumers’ actual purchase decisions thus represents a puzzling paradox. Whereas prior literature on consumer decision making provides valuable insights into the factors that impede or facilitate consumers’ socially responsible consumption decisions, such elements may be only the tip of the iceberg. To gain a fuller understanding of the CSR–consumer paradox, this study proposes investigating the phenomenon through additional theoretical lenses, namely, a clinical psychology, an evolutionary psychology/biology, a social psychology, and an economic and economic psychology lens. From these four unique theoretical lenses, the authors derive an integrative framework and draw several propositions for further research.

Description: Understanding good design requires addressing the question of what units undergo natural selection, thereby becoming adapted. There is, therefore, a natural connection between the formal Darwinism project (which aims to connect population genetics with the evolution of design and fitness maximization) and levels of selection issues. We argue that the formal Darwinism project offers contradictory and confusing lines of thinking concerning level(s) of selection. The project favors multicellular organisms over both the lower (cell) and higher (social group) levels as the level of adaptation. Grafen offers four reasons for giving such special status to multicellular organisms: (1) they lack appreciable within-organism cell selection, (2) they have multiple features that appear contrived for the same purpose, (3) they possess a set of phenotypes, and (4) they leave offspring according to their phenotypes. We discuss why these rationales are not compelling and suggest that a more even-handed approach, in which multicellular organisms are not assumed to have special status, would be desirable for a project that aims to make progress on the foundations of evolutionary theory.

Description: This essay reviews a collection of thirteen critical essays on the work of Ruth Millikan. The collection covers a broad range of her work, focusing in particular on her account of simple intentionality, her theory of concepts and her metaphysical views. I highlight and briefly discuss three issues that crop up repeatedly though the collection: (1) Millikan’s externalism (and in particular, her emphasis on how intentional states are used, rather than how they are produced); (2) the nature of intentional explanation; and (3) the normativity of meaning.

Description: In this article, we discuss and compare various positions in leadership theory through the perspective of Kierkegaard’s modes of existence. After a brief presentation of the three modes of existence—aesthetic, ethical and religious—and a description of the ironic–reflective interpretation of the change process (expanding contexts), we synthesize leadership theories into the three main positions of instrumental, responsible and spiritual. Later, we compare and integrate the different positions in leadership theory with the three modes of existence. We argue that the various positions in leadership theory represent different modes of existence. This means that leaders (or cultures) anchored within the aesthetical mode of existence tend to prefer the instrumental position, leaders (or cultures) anchored in the ethical mode of existence tend to prefer the responsible position, and leaders (or cultures) anchored in the religious mode of existence tend to prefer the spiritual position. In accordance with this line of reasoning the ironic–reflective interpretation of Kierkegaard’s three modes of existence gives a relevant explanation for development of leadership theory, and we delve deeper into some key dimensions in the expanding contexts of ontology, epistemology, ethics, the image of man and organizational ends. We conclude that it is necessary to start a process of transition in the mode of existence and in leadership theory in order to cope with the underlying patterns of the natural, cultural and economic crises we are facing today.

Description: Research shows that commitment-based interventions are among the most effective strategies to encourage pro-environmental behaviors, but methods to elicit commitments from a large number of individuals (i.e., door-to-door or phone campaigns) are often costly and unrealistic. Predictions requests—a commitment-type strategy—are an effective mass-communication strategy and have the potential to influence pro-environmental behavior among large audiences. This research is the first to demonstrate that prediction requests in a consumer behavior context influence preference for environmentally friendly products. In addition, this research examines the role of individual and contextual factors in influencing the efficacy of prediction requests. Study 1 shows that exposure to an advertisement with a prediction request leads to increased preferences for environmentally sustainable (vs. traditional) household cleaning products, compared to a control advertisement, and that this effect is greater when the prediction request is paired with an audience cue (vs. prediction request only). Study 2 indicates that the effect of prediction requests on preference for sustainable products is greater for individuals with interdependent (vs. independent) self-construal. Substantive implications and directions for future research are discussed.

Description: This policy-capturing study, conducted in China, investigated the cognitive basis of managerial decisions to make a corporate charitable donation, a global issue in the context of corporate social responsibility (CSR) research and practice. Participants ( N  = 376) responded to a series of scenarios manipulating pressure from the five stakeholders (government, customers, competitors, employees, and shareholders) most commonly addressed by CSR research. The independent variables examined included organizational factors (industry, ownership, previous company donation, firm size, firm age, and perceived CEO attitudes toward charity) and the participants’ personal values. Results indicate a large positive effect of shareholder and governmental pressure on the decision with lesser positive effects from customers and competitors. Surprisingly, employee pressure had a negative effect on the decision to make a charitable donation. Further, personal values and perceived CEO attitudes toward charity were significantly related to the decisions participants made. In line with our theorizing, the findings indicate that a combination of personal, organizational, and institutional factors was salient in the minds of decision makers.

Description: Considerable interest exists regarding the media’s influence on corporate reactions, but the link between media visibility and corporate philanthropic response (CPR) is not clear. Natural disasters thus provide an environment that makes visible the general processes relevant to that link. Based on agenda-setting theory, stakeholder theory, and impression-management theory, we propose that corporations that are highly visible in the news media are more likely to engage in CPR and donate more money. We also propose that companies with reputations for irresponsibility or vulnerability strengthen that tendency. Data from Chinese firms after the Wenchuan earthquake on May 12, 2008, and the corresponding empirical results support our hypotheses. This study also shows that CPR is an active conduit for deflecting undesired reputations.

Description: This paper argues that the literature examining the role that MNCs play in ‘political CSR’—an emerging area of management research concern—can be enhanced by more a fulsome examination of the ‘varieties of capitalism’ that currently exist in the global economy. We argue that the willingness and capacity of a particular MNC to participate in governance activity—which we broadly equate to political CSR—are contingent, at least in part, upon the national systems of government-business relations present in its home market. We argue that the decisions MNCs make in terms of whether and how to participate in governance are predicated in part on the domestic system of business-government relations out of which they emerge. The paper then asserts that our current conceptions of political CSR are limited, because they do not take fully into account the increasingly important corporate form of statism, in which home governments maintain a large ownership position in the country’s MNCs, even as they expand abroad. We posit that a key question this reality poses is whether such companies will reinforce established patterns of ‘political CSR’, whether they will challenge those established patterns, or whether some mutual adaptation will occur. We conclude the article with some suggestions for how this question might be explored in future work by interested scholars.

Description: Non-domestic companies are increasingly present on the London Stock Exchange. Such companies have specific governance requirements. They may seek to access capital in a more liquid market and to diversify ownership. The reputational ‘bonding’ (Coffee, Northwest Univ Law Rev 93:641–708, 1999 ; Columbia Law Rev 102:1757–1831, 2002 ) to a prestigious exchange should be a statement to the market of a propensity to disclosure and a willingness to protect minority shareholders. Yet, many non-domestic companies retain tightly controlled shareholding structures and are based in emerging regions where national culture norms differ to the UK. We hypothesise that non-domestic companies are likely to be less compliant with the principles of the UK Corporate Governance Code and suggest a correlation between lower levels of compliance and non-domestic companies from countries that demonstrate high power distance in the Hofstede (Culture’s consequences: International differences in work-related values, 1980a ) cultural value framework. We find some encouraging signs of compliance with the reigning governance code principles in Board structures. However, we find only partial compliance in leadership and Board effectiveness measures in those companies from cultures high on the power-distance scale. Further, we include analysis into ownership characteristics and find companies from emerging markets are dominated by a single or controlling group of shareholders, which is likely to impact on attitudes to compliance and is particularly evidenced in terms of Board structures with no executive directors or led by an executive Chairman. Much of the prior research effort into the levels of compliance with the UK’s ‘comply-or-explain’ approach to governance has produced mixed results and focused on all companies. In our exploratory approach to analysing only the non-domestic subsample, we report some evidence linking cultural distance to lower levels of compliance with the UK standards. We develop a framework to guide future research into the context and cultural underpinnings of this sub-sample of companies, hypothesising that frequent market capitalisation-induced index changes may divert attention away from any potential compliance issues. On the one hand, our evidence is encouraging for governance regimes based on voluntary compliance disclosures such as the UK and similar European and international markets, as we report partial compliance with the principles of the current governance code. Our research may, however, be helpful in guiding future versions of the UK governance framework and other international governance regimes adopting the ‘comply-or-explain’ approach and in setting policy to improve disclosure. It contributes to the understanding of the specific context of non-domestic companies and any cultural tendencies to non-compliance. By demonstrating evidence of lower levels of compliance with key principles of the Code by non-domestic companies, we present a framework enabling lawmakers to further improve corporate governance codes.

Description: The main aim of this study is to undertake a critical examination of the ethical and developmental performance of an Islamic bank as communicated in its annual reports over a period of 28 years (1983–2010). Islami Bank Bangladesh Limited’s (IBBL hereafter) ethical performance and disclosures are further analyzed through interviews conducted with the bank’s senior management. The key findings include an overall increase in ethical disclosures during the study period. However, the focus on various stakeholders’ needs has varied over time reflecting the evolving nature of the Islamic finance industry over the last three decades. Based on a secular economy, IBBL focused in the first two decades on the “Particular” Shariah compliance disclosure as a way of establishing its reputation and differentiating itself from conventional banks in a dual banking system. Post 2005, the ethical performance and disclosure shifted to more “Universal” disclosures such as sustainability, charity, employees, and community related disclosures signaling responsible conduct and the bank’s adoption of a “wider stakeholder approach.” However the bank is still failing to provide full disclosure on certain significant categories such as sources and uses of disposable income, thereby contradicting the principles of full and comprehensive disclosure and accountability. In addition, the structure of IBBL’s investment portfolio reveals an overreliance on debt-based financial instruments and a shortcoming in fulfilling the developmental and social objectives of Islamic finance. This is evidenced by the “qualified” Shariah Supervisory Board reports that the bank consistently received. This research provides further evidence that Islamic banking and Finance in its current practices reflect the “global” and the “local” influences in an era dominated by global conventional finance.

Description: This study explores how Islamic business ethics and values impact the way in which Muslim women entrepreneurs conduct their business in the Arab world. Guided by institutional theory as a theoretical framework and social constructionism as a philosophical stance, this study uses a qualitative, interview-based methodology. Capitalizing on in-depth, face-to-face interviews with Muslim Arab women entrepreneurs across four countries in the Arab Middle East region, the results portray how Islamic work values and ethics are embedded in the entrepreneurial activities of these Arab women. The results also illustrate how Muslim women entrepreneurs seek well-being ( falah ) in their life and excellence ( itqan ) in their work while running their businesses. The Muslim women entrepreneurs adhered to the Islamic work-related values of good and hard work ( amal salih ), honesty and truthfulness ( sidik and amanah ), fairness and justice ( haqq and adl ), and benevolence ( ihsaan ) and perceived them as instrumental to the survival and success of their enterprises. The agency of the Muslim Arab women allowed them to construct and navigate their entrepreneurial careers away from the traditional, doctrinaire interpretations of Islam. This study, therefore, contributes to theory development on the interrelationship between gender and business ethics within entrepreneurial contexts and in relation to Muslim values. It also contributes to studies on entrepreneurship and business ethics by showing how Arab women practice entrepreneurship and project their faith in their enterprises. The implications of the study for academics, multinational corporations, and globalization are numerous and important for understanding how business is conducted in Islamic countries.

Description: Business students appear predisposed to select disciplines consistent with pre-existing worldviews. These disciplines (e.g., economics) then further reinforce the worldviews which may not always be adaptive. For example, high levels of Social Dominance Orientation (SDO) is a trait often found in business school students (Sidanius et al., Political Psychol 12(4):691–721, 1991 ). SDO is a competitive and hierarchical worldview and belief-system that ascribes people to higher or lower social rankings. While research suggests that high levels of SDO may be linked to lower levels of empathy, research has not established the potential relationship between another related adaptive trait in the workplace, compassion. Compassion facilitates workplace performance by lowering levels of litigation, easing stress, and facilitating cooperation. Accordingly, the following study aimed to examine the relationship between SDO and compassion while hypothesizing Economic Systems Justification (ESJ) would mediate this relationship. Because of the importance of compassion in the workplace, the prevalence of SDO in the business academic community (Sidanius et al. 1991 ) and the topicality of ESJ, we conducted our study with business school students. Results confirmed all but one hypothesis.

Description: Smith defines the business enterprise primarily as the endeavor of an individual who remains fully embedded in the broader society and subject to its moral demands. For him, the conceptions of the local community and its normative framework, of the enterprise, and of the individuals within it need to be aligned with each other and developed together. Over time, four processes have, however, led to a widening gap between the business world and the local community. These are (1) the dissemination of the corporate model, (2) the transformation of the entrepreneurial role toward an agency role, (3) changes in the ownership structure, and (4) changes in the relation to the local community. This article presents Smith’s integrative conception of business and its contributions to the development of integrative theories of organizations and of business–society relations in the twenty-first century. Among others, it discusses the necessity to develop a normative-relational dimension of organizations that addresses the relations between the organization, its members (e.g., owners and managers), and the normative framework of the local community. This integrative approach of business–society relations challenges current business ethics research which often suggests that solutions to the current scandals lie either within the framework, the organization, or the individuals.

Description: 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.

Description: In business ethics, there is a large body of literature focusing on the conditions, factors, and influences in the ethical decision-making processes. This work builds upon the past critical reviews by updating and extending the literature review found in Craft’s (J Bus Ethics 117(2):221–259, 2013 ) study, extending her literature review to include a total of 141 articles. Since past reviews have focused on categorizing results based upon various independent variables, we instead synthesize and look at the trends of these based upon the four ethical decision making categories: Awareness, Behavior, Judgment, and Intention. We focus on the moderation (30 studies) and mediation (23 studies) effects found within these studies and provide an in-depth analysis of future trends. Furthermore, we also highlight key statistical and methodological concerns, outline overarching trends, and directions of future research in empirical ethical decision making.

Description: The leader integrity literature has described how professional behavior influences perceptions of integrity, yet behavior in leaders’ personal lives potentially affects those perceptions. The present paper examined how personal life behavior affects leaders. We assessed high profile political sex scandals to explore the research questions of how indiscretions in personal life affect leaders and how leaders recover from public revelations of sexual indiscretions. The results revealed that whether politicians survived the scandal depended on (a) the degree to which the indiscretion deviated from accepted norms, (b) the degree to which the behavior departed from the politician’s expressed values, (c) the leader’s political power (or value), and (d) whether the leader fully engaged in atonement under conditions when denying the allegations is not possible. These components were inter-related such that atonement was possible if the behavior was neither too extreme nor out of character and the leader had sufficient political power. The model was then tested with a sample of business executives engaged in sex scandals, finding support for its elements.

Description: Islamic finance is gaining greater attention in the finance industry, and this paper analyses how Islamic financial institutions (IFIs) are responding to the welfare needs of society. Using interview data with managers and content analysis of the disclosures, this study attempts to understand management perceptions of corporate social responsibility (CSR) in IFIs. A thorough understanding of CSR by managers, as evident in the interviews, has not been translated fully into practice. The partial use of IFIs’ potential role in social welfare would add further challenges in the era of financialisation.

Description: Using exploratory factor analysis on a unique dataset of global executives, we find that their perceptions of their national government’s risk management effectiveness are largely driven by two latent factors: leadership virtue, and governance. We show that the leadership virtue signal is potentially a stronger signal (3.19 times more correlated with risk management perceptions than the governance indicator). We hypothesize that this may be because making decisions and taking actions to manage risk is a continuous process requiring inter alia foresight and moral discipline in looking to the interests of others and acting in service to those interests above self-interest. This suggests at least two propositions for further testing, for which, we offer rhetorical argument and anecdotal evidence at the end of this paper and suggest methodologies for further testing. To our knowledge, this is the first paper to uncover this connection empirically between national risk management and leadership virtue.

Description: I present and defend a novel version of the homeostatic property cluster (HPC) account of natural kinds. The core of the proposal is a development of the notion of co-occurrence , central to the HPC account, along information-theoretic lines. The resulting theory retains all the appealing features of the original formulation, while increasing its explanatory power, and formal perspicuity. I showcase the theory by applying it to the (hitherto unsatisfactorily resolved) problem of reconciling the thesis that biological species are natural kinds with the fact that many such species are polymorphic.

Description: Labor unions are key stakeholders in the field of corporate social responsibility but researchers have paid surprisingly little attention to their CSR strategies. This article extends stakeholder theory by treating unions as having stakeholders that influence their CSR strategies. Drawing on qualitative data from a longitudinal study on selected unions in France between 2006 and 2013, this paper analyzes the underlying reasons for the differences in their approaches. It finds connections between the unions’ CSR strategy, and the perception of and cooperation with stakeholders.

Description: Previous behavioral research on advertising deception has focused on the extent to which consumers would be misled by claims and implications of advertisements. The present research examines the effect of an important, but largely neglected, dimension: the severity of anticipated harm as a result of being deceived. Two experiments disentangle the effect of anticipated harm on consumer brand attitudes and purchase intentions from that of perceived deception. Interestingly, greater harmfulness increases diagnosticity of perceived deception, which partially accounts for consumers’ negative reactions to deceptive advertising. Theoretical, methodological, and ethical implications are discussed.

Description: The current literature shows great interest in the issue of gender diversity on boards of directors. Some studies have hypothesized a direct relationship between diversity and the value of the firm, but not many examine the intermediate mechanisms that may exert an influence on such relationships. We employ two stages of GMM estimation methodology to exhibit evidences of the relationship between gender diversity and compensation of top managers in the Spanish context. Results show that gender diversity positively affects the effectiveness of boards—in terms of composition, structure, size and functioning—influencing a proper design of top managers compensation linked to company performance. Evidences suggest that legislative actions aimed at increasing the presence of women on boards of directors are justified not only for ethical reasons, but also for reasons of economic efficiency.

Description: In response to numerous recent cases involving materially misstated financial information arising from fraudulent financial reporting, companies, auditors, and academics have increased their focus on strengthening internal controls as a means of deterring such unethical behaviors. However, prior research suggests that stronger controls may actually exacerbate the very opportunistic behavior the controls are intended to curb. The current study investigates whether the efficacy of an implemented control is conditioned on not only the strength of the control (weaker or stronger), but also on how the firm frames the purpose for implementing the control (e.g., monitoring or coordinating). A monitoring purpose frames controls as reducing managers’ opportunities to engage in self-interested behavior, while a coordinating purpose frames controls as facilitating coordination between the firm and its managers. We posit that the efficacy of stronger controls to reduce unethical fraudulent reporting depends on the control frame. Using an experiment, this study investigates the interactive effect of control strength and control frame on managers’ fraudulent reporting decisions. As predicted, our results show that when controls are framed for monitoring purposes, stronger controls result in less fraudulent reporting than weaker controls. Conversely, when controls are framed for coordinating purposes, stronger controls result in more fraudulent reporting than weaker controls. Our results suggest that an inconsistency between the firm’s choice of the control strength and the control frame reduces the efficacy of the implemented control to curb unethical reporting behaviors. Furthermore, supplemental analysis shows that managers’ rationalization helps explain the interactive effect of control strength and communicated control purpose on fraudulent reporting.

Description: All kinds of fraud are costly for the people engrossed both financially and often in terms of the time needed to clear their name when illegal use has been made of their personal details. The relationship among ethics, internal control, and fraud is important in the understanding of corporate social responsibility (CSR). This article uses an Ethical Process Throughput Model embedded in the Fraud triangle in order to better understand the interconnectedness of ethical positions and internal control systems that handle fraudulent situations. Ethical positions are utilized to underscore how ethical behavioral control systems can be appropriately applied, which can provide unparalleled security, enhanced convenience, heightened accountability, better fraud detection and is very effective in depressing fraud, thereby improving CSR among organizations.

Description: This article examines the role of Islamic ethics in the marketing field. It presents Islamic contributions to the field by referencing original sources and concepts that are often not easily available to researchers and practitioners alike. In foundational texts, Islamic ethics have their own marketing practice prescriptions, practices that are driven by a discipline which shuns any dichotomy between organizational and societal interests. The paper underscores the role of marketers in improving the well-being of individuals and the community and presents a framework for analyzing the link between Islamic ethics and societal welfare vis-a-vis marketing. Several marketing issues are identified and the contributions of Islamic teachings are presented. This paper, too, identifies emerging ethical dilemmas and the necessity to tackle them in a way that strengthens the role of marketing in societal affairs and ensures morally driven conduct.

Description: Based on case studies and qualitative interviews conducted with 40 stakeholders in five SMEs, or so called Anatolian tigers, in Turkey, this article has explored what collective spirituality and Turkish Islamic business ethics entail and how they shape organizational values using diverse stakeholder perspectives. The study has revealed six emergent discourses around collective spirituality and Islamic business ethics: Flying with both wings; striving to transcend egos; being devoted to each other; treating people as whole persons; upholding an ethics of compassion; and leaving a legacy for future generations. These discourses are organized around three themes of collective spirituality, respectively: Transcendence, connectedness, and virtuousness.

Description: The paper develops a critique of the prevailing essentialist and homogenizing approach to business ethics that dominates the field with regard to Islam and proposes a constructivist perspective to the study of religion. It demonstrates the possibilities of this approach with the study of hizmet, a community business network from Turkey that has established itself in over 130 countries over the last 20 years. The implications for business ethics from the study of this movement is that the notion of corporate social responsibility needs to be adjusted in order to accommodate the hizmet approach but that there are limits to this adjustment due to gender and labor rights considerations. The paper sees itself as a contribution to an alternative approach for Islamic business ethics very much in need of further development and encourages further research along these lines.

Description: James Shapiro’s view of evolution is inspired by looking at the molecular mechanisms of mutation. Finding these systems to be intelligent and the mutations non-gradual, Shapiro concludes that neither the role of DNA in development, nor and the role of natural selection in evolution are what we thought them to be. The cases discussed are interesting and may require some modification of theory in biology, but this reviewer finds many of Shapiro’s conclusions unwarranted.

Description: Drawing from research on ethical leadership, psychological capital, and social learning theory, this study investigated the mediating effects of goal congruence and psychological capital in the link between supervisors’ ethical leadership style and followers’ in-role job performance. Data captured from 171 employees and 24 supervisors showed that ethical leadership has a positive effect on followers’ in-role job performance, yet this effect is explained through the role of psychological capital and follower–leader goal congruence, providing evidence of mediation. These findings have significant implications for research and practice.

Description: Moral responsibility for outcomes in corporate settings can be ascribed either to the individual members, the corporation, or both. In the latter case, the relationship between individual and corporate responsibility has been approached as inversely proportional, such that an increase in individual responsibility leads to a corresponding decrease in corporate responsibility and vice versa. In this article, we develop a non-proportionate approach, where, under specific conditions, individual and corporate moral responsibilities interact dynamically, leading to a mutual enhancement of responsibility: the more the corporation is responsible, the more the individuals become responsible and vice versa. We develop this mutually enhancing approach in terms of normative ascriptions of responsibility, while leaving aside empirical implications in terms of mutual awareness of responsibility between individuals and corporations. We explore conceptually the conditions and mechanisms that generate this mutual enhancement and also discuss the implications for research and practice.

Description: The dominant approach to understanding Islamic Business Ethics (IBE) has been based almost exclusively on either interpretations of the Qur’an and Sunna or influenced by Western understanding of Islam and ethics. However, there is a rich—largely ignored-tradition of ethical analysis conducted by Muslim philosophers which would broaden our understanding of Islamic ethics and hence IBE. We seek to correct this imbalance by examining works of Al-Ghazali, an early Muslim philosopher, scholar, and mystic. His approach to Sufism , combining an interpretation of revelation with reason, can contribute to new developments in business ethics (BE) scholarship and practice especially in Muslim communities. His thought portrays a vibrant work ethic that, while based in Sufism , has important practical implications for business. We argue that including such historically and contextually recognized perspectives in our understanding of BE, both in theory and in practice, would work well with an audience that looks to Islam as a source of justice and proper moral conduct.

Description: Organizational corruption is a wide-spread negative aspect of economic activity, and a seemingly never-ending series of corruption scandals has been made public around the globe. Although research is performed in a broad variety of disciplines, ranging from psychology to management to law, a fully satisfactory explanation for the causes of organizational corruption has not been found. By looking at organizational factors as potential triggers for corruptive behavior, this study draws upon the concept of entrepreneurial orientation (EO). Diverse studies have shown that EO, as an antecedent to company performance, has a positive effect. Recent EO literature, however, indicates that EO has not only positive but also negative consequences. In this line of reasoning, this study builds upon principal agent theory and makes a first step in exploring the impact of EO on a negative aspect of business behavior, namely organizational corruption. We gathered survey data and publicly available data from 411 firms, inquiring for both acts of corruption from within the top management team over the last 3 years and the level of entrepreneurial orientation within the organization. Results show diverging effects along the individual dimensions of EO; they point to risk orientation as the dark side of EO, as it significantly increases the likelihood of corrupt behavior in companies. In contrast, innovation orientation, to a certain extent, counterbalances by reducing the likelihood of corrupt behavior.

Description: This paper interrogates the relation between reciprocity and ethics as it concerns participation in the world of work and organizations. Tracing discussions of business and organizational ethics that concern themselves, respectively, with the ethics of self-interest, the ethics of reciprocity, and the ethics of generosity, we explore the possibility of ethical relations with those who are seen as radically different, and who are divested of anything worth exchanging. To address this we provide a reading of Franz Kafka’s famous novella The Metamorphosis and relate to it as a means to extend our understanding of business and organizational ethics. This story, we demonstrate, yields insight into the unbearable demands of ethics as they relate to reciprocity and generosity. On this basis, we draw conclusions concerning the mutually constitutive ethical limitations of reciprocity and generosity as ethical touchstones for organizational life while simultaneously accepting the seemingly insurmountable difficulties of exceeding those limits. In such a condition, we argue, ethics is not best served by adopting idealistic or moralizing positions regarding generosity but rather by working in the indissoluble tensions between self and other.

Description: The popular press is often fraught with high-profile illustrations of leader unethical conduct within corporations. Leader unethical conduct is undesirable for many reasons, but in terms of managing subordinates, it is particularly problematic because leaders directly influence the ethics of their followers. Yet, we know relatively little about why leaders fail to apply ethical leadership practices. We argue that some leaders cognitively remove the personal sanctions associated with misconduct, which provides them with the “freedom” to ignore ethical shortcomings. Drawing on moral disengagement theory (Bandura 1986 , 1999 ), we examine the relationship between supervisor moral disengagement and employee perceptions of ethical leadership. We then examine the moderating role of employee moral disengagement, such that the negative relationship between supervisor moral disengagement and employee perceptions of ethical leadership is stronger when employee moral disengagement is low versus high. Finally, we examine ethical leadership as a conditional mediator (based on employee moral disengagement) that explains that relationship between supervisor moral disengagement and employee job performance and organizational citizenship behavior (OCB). Results from a multi-source field survey provide general support for our theoretical model.