Journal of Business Ethics

Godos-Díez, José-Luis; Fernández-Gago, Roberto; Martínez-Campillo, Almudena

doi: 10.1007/s10551-010-0609-8pmid: N/A

Drawing on the Agency–Stewardship approach, which suggests that manager profile may range from the agent model to the steward model, this article aims to examine how important CEOs are to corporate social responsibility (CSR). Specifically, this exploratory study proposes the existence of a relationship between manager profile and CSR practices and that this relation is mediated by the perceived role of ethics and social responsibility. After applying a mediated regression analysis using survey information collected from 149 CEOs in Spain, results show that those closer to the steward model are more inclined to attach great importance to ethics and social responsibility, and to implement CSR practices in their companies. Results also provide support for the suggested mediating effect. Thus, this article extends research in understanding top managers as drivers for CSR and suggests new ways to deal with this issue empirically.

Shum, Paul; Yam, Sharon

doi: 10.1007/s10551-010-0608-9pmid: N/A

Tokenistic short-term economic success is not good indicia of long-term success. Sustainable business success requires sustained existence in a corporation’s political, economic, social, technological, legal and environmental contexts. Far beyond the traditional economic focus, consumers, governments and public interest groups alike increasingly expect the business sector to take on more social and environmental responsibilities. Corporate social responsibility (CSR) is the model in which economic, social and environmental responsibilities are fulfilled simultaneously. However, there is insufficient empirical evidence that demonstrates genuine widespread adoption of CSR in practice, and its underlying reasons. Though research in CSR has been rapidly growing, its commercial reality and implications need to be further improved if it is to inspire corporations to voluntarily adopt CSR. In the literature, Carroll’s four-dimensional (economic, legal, ethical and discretionary) CSR framework offers a theoretical basis for developing an empirically based model to explain why and how profit-motivated managers take up CSR voluntarily. Our study has developed a structural equation model to identify the key factors and their interactions that influence economically motivated managers to take on voluntary CSR, and validate Carroll’s four-dimensional construct. The results support Carroll’s four-dimensional CSR framework, with the exception of the link pertaining to the relationship between economic and discretionary/voluntary responsibility. This characterises the economic reality that financial market-driven economic responsibility does not automatically translate into social responsibility. Nevertheless, the empirical results demonstrate that corporations can be led to engage in more voluntary CSR activities to achieve social good when appropriate legal and ethical controls are in place.

Avey, James; Palanski, Michael; Walumbwa, Fred

doi: 10.1007/s10551-010-0610-2pmid: N/A

The authors examined the effects of ethical leadership on follower organizational citizenship behavior (OCB) and deviant behavior. Drawing upon research related to the behavioral plasticity hypothesis, the authors examined a moderating role of follower self- esteem in these relationships. Results from a field study revealed that ethical leadership is positively related to follower OCB and negatively related to deviance. We found that these relationships are moderated by followers’ self-esteem, such that the relationships between ethical leadership and OCB as well as between ethical leadership and deviant behavior are weaker when followers’ self-esteem is high than low. Implications of these findings for research and practice are discussed.

Gunz, Sally; Laan, Sandra

doi: 10.1007/s10551-010-0639-2pmid: N/A

Drawing on calls by researchers to examine corporate scandals involving potential conflicts of interest or compromise to professional independence involving the actuarial profession, this article outlines one such case. The consulting actuaries – to a large Australian listed company, James Hardie Industries Limited – found themselves advising two parties in a corporate restructuring where the interests of each were sometimes competing and the interests of the public appeared to be ignored. The James Hardie case is instructive in a number of ways: first, it demonstrates the subtlety with which conflicts of interest or pressures on professional independence can arise; second, it demonstrates how important professional issues can be obfuscated by more obvious and pressing financial and strategic issues; and finally it demonstrates that adherence to professional codes of conduct and the ease with which professional ethics can be compromised when those codes are vague and transgressions are rarely actionable. The James Hardie case highlights structural issues in the employment of consulting actuaries which presents risks to the profession. It demonstrates that the combination of an aggressive corporate management with a strategic agenda reliant on consulting actuaries that have a vested interest in promoting and maintaining valuable relationships, both financially and professionally, results in ethical challenges.

Bray, Jeffery; Johns, Nick; Kilburn, David

doi: 10.1007/s10551-010-0640-9pmid: N/A

Although consumers are increasingly engaged with ethical factors when forming opinions about products and making purchase decisions, recent studies have highlighted significant differences between consumers’ intentions to consume ethically, and their actual purchase behaviour. This article contributes to an understanding of this ‘Ethical Purchasing Gap’ through a review of existing literature, and the inductive analysis of focus group discussions. A model is suggested which includes exogenous variables such as moral maturity and age which have been well covered in the literature, together with further impeding factors identified from the focus group discussions. For some consumers, inertia in purchasing behaviour was such that the decision-making process was devoid of ethical considerations. Several consumers manifested their ethical views through post-purchase dissonance and retrospective feelings of guilt. Others displayed a reluctance to consume ethically due to personal constraints, a perceived negative impact on image or quality, or an outright negation of responsibility. Those who expressed a desire to consume ethically often seemed deterred by cynicism, which caused them to question the impact they, as an individual, could achieve. These findings enhance the understanding of ethical consumption decisions and provide a platform for future research in this area.

Schwepker, Charles; Good, David

doi: 10.1007/s10551-010-0641-8pmid: N/A

For many years, researchers and practitioners have sought out meaningful indicators of sales performance. Yet, as the concept of performance has broadened, the understanding of what makes up a successful seller, has become far more complicated. The complexity of buyer–seller relationships has changed therefore as the definition of sales performance has expanded, cultivating a growing interest in ethical/unethical actions since they could potentially have impacts on sales performance. Given this environment, the purpose of this study is to explore the impact of moral judgment on sales performance and sellers engaging in a customer-oriented selling approach. Specifically, by utilizing a sample of 345 business-to-business salespeople, this study examines the relationships between moral judgment, customer-oriented selling, and outcome and behavior based performance. Results, managerial implications, and opportunities for future research are provided.

Herremans, Irene; Isaac, Robert; Kline, Theresa; Nazari, Jamal

doi: 10.1007/s10551-010-0642-7pmid: N/A

This research, couched in the resource-based view of the firm, investigates the potential for reducing an organization’s decision uncertainty within its intellectual capital (IC) operating environment. Using structural equation modeling, we empirically test if organizational design can reduce the perceived uncertainty related to an IC context, which we refer to as knowledge uncertainty. We found evidence that decentralization and technology infrastructure support a results-based IC management control system which in turn is associated with reduced internal decision uncertainty. Finally, our statistics support a good overall fit for our model. Our findings suggest that if managers structure their organizational control systems appropriately for developing IC capabilities, these systems can lead to reduced internal uncertainty regarding human, structural, and relational capital.

Wartiovaara, Markus

doi: 10.1007/s10551-010-0643-6pmid: N/A

This article evaluates alternative models for explaining human behavior. In particular, it compares the resourceful, evaluative, maximizing model (REMM) with the economic (or money maximizing) model of human behavior. The theoretical framework is developed to enhance our understanding of “individual value creation” and to seek an economically rational explanation to: Why Warren Buffett is giving his money away to charity? The article develops a framework of biological, material, and immaterial sources of value. The article additionally extends the existing REMM and finds several economically rational reasons for him to give away his money including the present value of help and goodwill, gained control, and lowered transaction costs.

Martín-de-Castro, Gregorio; Delgado-Verde, Miriam; López-Sáez, Pedro; Navas-López, José

doi: 10.1007/s10551-010-0644-5pmid: N/A

Economic and social activities are undergoing radical changes, which can be labelled as ‘knowledge economy and/or society’. In this sense, intellectual capital (IC), or knowledge assets, as the fourth factor of production, is replacing the other ones – job, land and capital. This article tries to offer the origins and nature of the firm’s IC that can be labelled as ‘An Intellectual Capital-Based View of the Firm Competition’. This framework tries to highlight the strategic role of different intangible assets like talented and committed workers, cultural values, or long-term relationships among the firm and its stakeholders – customers, allies, suppliers and society in general – in gaining and sustaining competitive advantages, being the management of IC a key issue in the management agenda.

Aleassa, Hassan; Pearson, John; McClurg, Scott

doi: 10.1007/s10551-010-0645-4pmid: N/A

Software piracy, the illegal and unauthorized duplication, sale, or distribution of software, is a widespread and costly phenomenon. According to Business Software Alliance (2008), over 41% of the PC software packages installed worldwide were unauthorized copies. Software piracy behavior has been investigated for more than 30 years. However, after a review of the relevant literature, there appears to be two voids in this literature: a lack of studies in non-Western countries and a scarcity of process studies. This study contributes to literature by developing a software piracy model to better understand the decision-making process that underlies this unethical behavior. The model was tested using data collected from a sample of 323 undergraduate business students. Consistent with the Theory of Reasoned Action (TRA), attitudes toward software piracy and subjective norms were significant predictors of intention to pirate software. Also, the results suggested that ethical ideology, public self-consciousness, and low self-control moderated the effect of these variables on intention to pirate software. The results have important practical implications for the software industry and governments hoping to curtail software piracy. Limitations of the study and recommendations for future studies are discussed as well.