Journal of Business Ethics

Pelegrín-Borondo, Jorge; Arias-Oliva, Mario; Murata, Kiyoshi; Souto-Romero, Mar

doi: 10.1007/s10551-018-3970-7pmid: N/A

Today, technological implants to increase innate human capabilities are already available on the market. Cyborgs, understood as healthy people who decide to integrate their bodies with insideable technology, are no longer science fiction, but fact. The cyborg market will be a huge new business with important consequences for both industry and society. More specifically, cyborg technologies are a unique product, with a potentially critical impact on the future of humanity. In light of the potential transformations involved in the creation of “superhuman” cyborgs, ethics must be a cornerstone of cyborg marketing decisions. Businesses need to take ethics into account, not only to ensure they behave ethically, as always, but also because ethics will be an important factor in buyers’ decisions in the emerging cyborg market. This is because the decision to become a cyborg is determined, among many other factors, by ethical judgment. Our research focuses on how the dimensions of the Composite Multidimensional Ethics Scale (Composite MES) influence an individual’s decision to become a cyborg. To test our hypotheses, we surveyed a total of 1563 higher-education students in seven different countries. The results of the survey show that ethical judgment will be a keystone in individual cyborgization. Specifically, ethical dimensions explained 48% of the intention to use cyborg technologies. The ethical analysis showed that not all MES dimensions have the same influence on the ethical judgment regarding this decision. Egoism was the most influential dimension, while contractualism was the least. These findings have important implications for both academia and business.

Ahsan, Mujtaba

doi: 10.1007/s10551-018-3975-2pmid: N/A

The advent of the sharing/gig economy has created new forms of employment embedded in new labor practices. Advocates of the sharing economy frame it in salutary terms, lauding its sustainability, decentralization, and employment-generation capabilities. The workers of the gig economy are seen as independent contractors under law rather than employees, and the owners of the gig economy platforms celebrate this categorization as a form of entrepreneurship. In this paper, we use insights from the entrepreneurship literature to examine this claim critically. Taking Uber as an exemplar, we look at the arguments behind the company’s contention that its drivers are actually “partners” who are engaged in entrepreneurship, and demonstrate why these claims are problematic. We utilize a stakeholders’ theory framework that initiates a dialogue between ethics and entrepreneurship in order to focus on the mechanisms that help ensure ethical practices in the sharing economy and to examine the efficacy of these mechanisms. We also discuss the role of the entrepreneurship literature in promoting entrepreneurial behaviors that lead to income inequality. We conclude by arguing that the sharing economy reflects the intensification of an ongoing neoliberal trend that misuses the concept of entrepreneurship in order to justify certain forms of employment practices, and make a case for regulatory oversight.

Lips-Wiersma, Marjolein; Haar, Jarrod; Wright, Sarah

doi: 10.1007/s10551-018-3967-2pmid: N/A

The present study extends the meaningful work and ethics literature by comparing three ethics-related antecedents. The second contribution of this paper is that in using a multi-dimensional MFW construct we offer a more fine-tuned understanding of the impact of ethical antecedents on different dimensions of MFW, such as expressing full potential and integrity with self. Using an international data set from 879 employees and structural equation modelling, we confirmed an updated seven-dimension Comprehensive Meaningful Work Scale (CMWS). The structural model found that fairness, responsible leadership and worthy work are all significant and positively related to the majority of meaningfulness dimensions. However, different antecedents are related to different dimensions of MFW, showing that a complex and multi-level combination of ethics-related practices are required to cultivate MFW. All relationships were in the expected positive direction except responsible leadership, which was negatively related to the MFW dimension of integrity with self. Across the seven dimensions of MFW, only the dimension ‘Service to Others’ was uniformly not predicted by any antecedent. However, all three antecedents significantly related to important dimensions of MFW not usually measured in the ethics literature, such as ‘Unity with Others’ and ‘Expressing Full Potential’. In addition, we conducted dominance analysis to test the relative importance of the three antecedent across the MFW dimensions, and found that worthy work is the most dominant antecedent, although all three antecedents are the most dominant for at least one MFW dimension—further highlighting the importance of exploring MFW as a multi-dimensional construct. We discuss the implications for MFW theory and practice.

DiFonzo, Nicholas; Alongi, Anthony; Wiele, Paul

doi: 10.1007/s10551-018-3984-1pmid: N/A

Using forgiveness theory, we investigated the effects of organizational apology and restitution on eliciting forgiveness of a transgressing organization after transactional psychological contract breach. Forgiveness theory proposes that victims are more likely to forgive offenders when victims’ positive offender-oriented emotions replace negative ones. Three pre-post laboratory experiments, using vignettes about a broken promise of financial aid, found that while apology-alone and restitution-alone each increased likelihood of forgiving, restitution-alone was the more effective of the two responses. When combined with an apology, restitution boosted the effect of apology-alone. However, restitution was unnecessary if positive emotions replaced negative ones; third-party blame accomplished this negative-to-positive emotion replacement. Consistent with forgiveness theory, offender-oriented negative-to-positive emotion replacement partially mediated all effects, and negative emotion reductions were strongly correlated with positive emotion gains. We discuss implications for the repair of damaged norms and relationships within an organizational community. These include reparative effects of apology and restitution, dual-process conceptions of violation and repair, repair after psychological contract breach, and emotion replacement models of forgiveness.

Cai, Guilong; Li, Wenfei; Tang, Zhenyang

doi: 10.1007/s10551-018-3971-6pmid: N/A

Previous studies argue that religious firms are more ethical and thus engage less in accrual earnings management. At odds with the ethical view, we use a sample of Chinese listed firms and show that firms in religious regions use more real earnings management. We postulate that besides ethics, religion also proxies for risk aversion, which motivates firms to substitute accrual earnings management with real earnings management. Consistent with this view, we show that the positive (negative) association between religiosity and real (accrual) earnings management is more pronounced for firms with lower litigation risk and for firms with less reputable auditors. In addition, we use a mediation model introduced by Baron and Kenny (J Pers Soc Psychol 51(6):1173–1182, 1986) to show that religiosity affects earnings management through the channel of risk aversion. We conclude that firms choose real earnings management over accrual-based earnings management because of risk aversion, rather than ethical reasons.

Isaacs, Daniel

doi: 10.1007/s10551-018-3947-6pmid: N/A

Some leading economists maintain that corporate managers have no social responsibilities other than to maximize profits and obey the law. To support that thesis, they rely, in part, on the agency theory of the firm. The theory provides that managers are agents of shareholders and must do what shareholders want, which is generally to make as much money as possible. For purposes of this article, I accept that managers are agents of shareholders, but I reject the conclusion that the relationship dilutes their moral obligations. Managers, as agents, cannot justify immoral decisions on the grounds that their shareholders direct their actions. Similarly, shareholders, as principals, lack moral bases to authorize managers to take actions the shareholders could not justify taking themselves. I apply this thesis to the ethical challenges managers of government contracting businesses face when they consider whether to make independent political expenditures. I argue that where it is in the interests of government contractors to publicly disclose, limit, or forego making independent political expenditures, they can legally do so, and that in the absence of financial advantage or legal obligation, agency theory highlights the ethical obligations of shareholders and their managers agents. It does not grant them an ethical free pass.

Kelly, Simon; Riach, Kathleen

doi: 10.1007/s10551-018-3945-8pmid: N/A

This article examines the relationship between organizational ethics, the uncanny, and the annual celebration of Halloween. We begin by exploring the traditional and contemporary organizational function of Halloween as ‘tension-management ritual’ (Etzioni, Sociol Theory 18(1):44–59, 2000) through which collective fears, anxieties, and fantasies are played out and given material expression. Combining the uncanny with the folkloric concept of ostension, we then examine an incident in which UK supermarket retailers made national news headlines for selling offensive Halloween costumes depicting ‘escaped mental patients’. Rather than treating this incident as a problem of moral hygiene—in which products are removed, apologies made, and lessons learned—we consider the value of Halloween as a unique and disruptive ethical encounter with the uncanny Other. Looking beyond its commercial appeal and controversy, we reflect on the creative, generous, and disruptive potential of Halloween as both tension-management ritual and unique organizational space of hospitality through which to receive and embrace alterity and so discover the homely within the unheimlich.

Love, Ed; Salinas, Tara; Rotman, Jeff

doi: 10.1007/s10551-018-3937-8pmid: N/A

The ethical frameworks of consequentialism and formalism predict moral awareness and behavior in individuals, but current measures either do not treat these frameworks as independent or lack sufficient theoretical underpinnings and statistical dependability. This paper presents the development and validation of a new scale to measure consequentialism and formalism that is well grounded in prior research. The Ethical Standards of Judgement Questionnaire (ESJQ) is validated via six studies (total n > 2400). Measurement items are developed in the first three studies, which also confirm the need to eliminate a unidimensional measure and evaluate these frameworks separately. The fourth study addresses discriminant validity and the two remaining studies provide insight into how consequentialism and formalism predict the degree to which behaviors are deemed acceptable by individuals in the context of consumer beliefs and religious beliefs. Suggested uses for the scale in both academia and organizations are presented.

Yang, Yuan; Tang, Min

doi: 10.1007/s10551-018-3934-ypmid: N/A

In China, many private entrepreneurs have obtained political offices in the government. In this study, we argue that Chinese private entrepreneurs who are formally connected with government institutions, compared to other Chinese private entrepreneurs, tend to contribute more to philanthropic causes not only for instrumental concerns but also out of altruistic values. We submit this argument to an empirical test through a secondary data analysis of a representative sample of Chinese entrepreneurs collected by a coalition of government and industry groups. The results of this analysis show that politically connected entrepreneurs are more likely to make major philanthropic donations and, at the same time, hold a stronger sense of the responsibility for doing so. The most important contribution of this research is that it reveals the ethical basis of the philanthropic activities of Chinese private entrepreneurs, especially those with political connections, that has been unappreciated by extant literature.

Jagannathan, Srinath; Bawa, Anupam; Rai, Rajnish

doi: 10.1007/s10551-018-3931-1pmid: N/A

Extant literature romanticizes frugality as a lifestyle trait that helps in the spiritual evolution of consumers, which in turn enables them in overcoming the negative consequences of materialism and over-consumption. Extant studies have not paid attention to cultural contexts, such as caste and gender, which could outline the non-volitional enactment of frugality in societies such as India. We draw from the work of the political philosopher Alain Badiou to argue that frugality embodies non-volitional subjectivities and is linked to processes of responsibilization and de-politicization. We engage with layered narratives from three story-sites and conceptualize frugality as a socio-political subjectivity that disenfranchises consumers and normalizes inequality. Our study provides evidence of how consumers are made to adopt frugality to conform to political conservatism and unequal orders of caste and gender.