Journal of Business Ethics

Hornby, Elizabeth

doi: 10.1007/s10551-024-05868-9pmid: N/A

The importance of clarity in the effective embedment of corporate ethical cultures is well established. But if we are concerned with the efficacy of corporate cultures, we must also be concerned with how clearly they are communicated. The main way in which ethical cultures are communicated to employees is in ethical texts, such as codes of conduct and ethical policies and procedures. If these ethical texts do not achieve clarity, they risk undermining rather than embedding the ethical cultures that they seek to document. But, can ethical texts achieve clarity? This article builds on Kaptein’s Corporate Ethical Virtues Model by extending the corporate ethical virtue of clarity to the formal context of ethical texts and offers valuable insights into how and why clarity is enabled or obstructed in such texts. A practical tool, the ethical clarity Framework, is developed for the analysis and mapping of clarity in ethical texts and then applied in the exemplar setting of whistleblowing texts in the UK banking sector. The findings suggest that the drivers for inconsistency and ambiguity in ethical texts lie in the difficulty of naming and framing ethical concepts, incoherence in the external landscape, and the need to satisfy the competing interests of multiple actors. The article concludes that ethical texts may not be able to achieve clarity and should, perhaps, not attempt to do so.

Arroyo, Paulina; Berger, Leslie; Smaili, Nadia

doi: 10.1007/s10551-024-05807-8pmid: N/A

Whistleblowing is the most effective way to unveil wrongdoings. Indeed, whistleblowers often protect their organizations by providing crucial information. While existing research about whistleblowing focuses on the intentions of whistleblowers to report a wrongdoing after a wrongdoing is observed, we seek to understand how individuals view whistleblowing before a wrongdoing is observed. Drawing on self-determination theory our findings of 34 interviews at diverse Canadian nonprofit organizations support our framework and highlight that when a congruence of shared values exists, trust functions as a core belief of the organization, which positively influences an autonomous view of whistleblowing. Based on our findings, we propose a conceptualization of whistleblowing mindset as the root of whistleblowing behaviours that can be influenced by shared or divergent values. We define a whistleblowing mindset as a mental disposition that predetermines individual interpretations and reactions to the witness of a wrongdoing. Our research contributes to the literature by establishing the importance of the whistleblowing mindset in the implementation of whistleblowing programs and providing insights into how shared values can influence the autonomous view in individuals’ whistleblowing mindsets.

Vandekerckhove, Wim; Demuijnck, Geert

doi: 10.1007/s10551-024-05842-5pmid: N/A

Key whistleblowing legislation in the US and EU remains ambiguous about protection for a specific (but important) group of employees, namely Role-Prescribed Reporters (RPR). An RPR is any worker who reports wrongdoing as part of their normal job duties, also known as duty speech. These workers are not whistleblowers when they report wrongdoing as part of their normal job. When they are neglected or experience retaliation they may report the same wrongdoing through a formally designated whistleblowing channel. We demonstrate how such situations amount to loopholes in whistleblower protection legislation. We discuss loopholes in the US (Whistleblower Protection Act, False Claims Act, Dodd-Frank Act) and the EU (Ireland, France, the Netherlands), in which an RPR does not enjoy whistleblower protection for any retaliation that occurred prior to using a formal channel. We argue the RPR exerts their function in a setting of uncertainty that, if they are unlucky, can lead to unfairness and situations of painful ‘agent-regret’ (which is an essential aspect of ‘moral luck’). Insofar as this uncertainty is perfectly avoidable, it is ethically unacceptable. We evaluate possible solutions and argue that reducing the scope of moral luck for RPRs (duty speech professionals) by retroactively attributing them a whistleblower status in the case of retaliation would close the currently prevailing legal loophole.

Olesen, Thomas

doi: 10.1007/s10551-024-05852-3pmid: N/A

Who is the whistleblower, and how do they reach the difficult decision to blow the whistle? The article argues that the extant literature has not paid sufficient attention to the profound moral reflexivity in this transition from employee to whistleblower. What is missing, in particular, is a better, sociologically informed, understanding of the various social domains in which whistleblowers are embedded. These domains are important because they provide different kinds of resources for the whistleblower’s moral reflexivity. To pursue this idea, the article conducts a qualitative analysis of 14 whistleblower autobiographies. The analysis is structured around four social domains, which are prevalent in the material: Childhood and adolescence, professional ethics, organizational loyalty, and societal and civic duty values. The autobiographical data clearly demonstrate how whistleblowers actively draw on these domains, and often several of them, as they justify and give meaning to their actions. Such a multidimensional understanding of the whistleblower’s social embeddedness opens up to new ways of analysing the deep personal and moral challenges that most whistleblowers experience.

Zhang, Bulin; Liu, Xiangmin; Zhang, Zhengtang

doi: 10.1007/s10551-024-05802-zpmid: N/A

Prior research in behavioral ethics suggests that supervisors may influence employees’ ethical decision-making. However, the extent to which supervisors shape the recurrence of employees’ unethical behaviors remains underexplored. By integrating cognitive dissonance theory with social information processing theory, we provide new insights into how supervisors influence employees’ responses to their past ethical violations. We hypothesize that when supervisors exhibit a high level of perspective taking, employees are less likely to perceive organizational intolerance of unethical behaviors and, in turn, are more likely to repeat these behaviors in the future. To test our hypotheses, we conducted a field investigation using objective data from organizational records and survey responses collected from 276 sales professionals and 108 supervisors in a large firm over a nine-month period. Our results support our predictions. We discuss theoretical and practical implications, limitations, as well as future directions.

Al-Shammari, Marwan; Banerjee, Soumendra Nath; Rasheed, Abdul; Al-Shammari, Hussam; Swimberghe, Krist

doi: 10.1007/s10551-024-05819-4pmid: N/A

The purpose of the current paper is to introduce the theoretical arguments of optimal distinctiveness literature in studying the relationship between CEO narcissism and corporate social responsibility. We focus on CSR scope conformity and CSR emphasis differentiation and introduce CEO narcissism as an important determinant of the extent to which the firm responds to these two types of strategic pressures. Our analysis is based on a sample of 509 firm-year observations over the 2006–2013 period. Fixed effects regression technique is used to test our hypotheses. Our findings provide evidence that CEO narcissism is negatively related to CSR conformity and positively related to CSR differentiation strategies. We also find evidence that firm prior performance will moderate the relationship between CEO narcissism and CSR conformity but not CSR differentiation.

Dong, Wang; Meng, Yuan; Chen, Jun; Ke, Yun

doi: 10.1007/s10551-024-05825-6pmid: N/A

This paper examines the effect of financial shared service centers (FSSCs) on corporate misconduct. Using a sample of Chinese public companies with hand-collected FSSC data, we find that the adoption of FSSCs is negatively associated with the likelihood and frequency of corporate misconduct. The results hold to a battery of robustness tests. Moreover, we show that the negative association between FSSCs and corporate misconduct is more pronounced in firms that have no management equity ownership, disclose internal control weaknesses, and have more subsidiaries. Additional analyses indicate that FSSCs can help mitigate both disclosure-related and nondisclosure-related misconduct.

Oh, Eun-Ji; Kim, Youngsang; Wang, Yangxin

doi: 10.1007/s10551-024-05791-zpmid: N/A

Integrating the categorization-elaboration model (CEM), resource complementarity, and human capital perspectives, we investigate whether the founder CEO’s human capital resources can influence the effect of workforce gender diversity, an untapped strategic resource, on venture firm performance. Our main focus lies on knowledge- and technology-intensive venture firms, and we propose that both workforce gender diversity and the CEO’s human capital resources jointly influence venture firm performance. We identify the specific functional impacts of the founder CEO's human capital, encompassing entrepreneurial experience, human resource (HR) management experience, and same-industry experience. Analyzing 1413 venture firms utilizing multilevel analysis (random coefficient modeling), we find that gender diversity does not significantly affect venture firm performance. Nevertheless, the founder CEO’s entrepreneurial experience exerts a positive impact on the interplay between gender diversity and venture firm performance. These findings underscore the strategic role of the founder CEO’s human capital resources in moderating the effects of gender diversity, making significant contributions to the diversity and strategic human capital resource literature.

Chen, Lixin; Weng, Qingxiong; Popelnukha, Anastasiia; Jiang, Hui

doi: 10.1007/s10551-024-05710-2pmid: N/A

Integrating norms of reciprocity, affect theory of social exchange, and ambivalence literature, we investigated how leader-member exchange (LMX) ambivalence influences employees’ interpersonal behaviors toward supervisors. Study 1, with a time-lagged field method, revealed that LMX ambivalence was positively related to both employee-rated supervisor-directed helping and deviant behaviors and that such relationships were mediated by emotional ambivalence toward supervisors. We also confirmed the amplification effects of workplace gossip about supervisors (WGS). Specifically, while receiving more positive WGS (PWGS) or less negative WGS (NWGS) could strengthen the positive relationship between emotional ambivalence and supervisor-directed helping behaviors, receiving less PWGS or more NWGS would accentuate the positive effect of emotional ambivalence on supervisor-directed deviant behaviors. Study 2 replicated our results with a scenario-based method and offered evidence for the mediating effect of emotional ambivalence toward supervisors. Study 3 included supervisor-rated helping and deviant behavior and a subjective measure of emotional ambivalence and again confirmed the mediating role of emotional ambivalence. Our findings extend knowledge of the interpersonal consequences of LMX ambivalence.

Qin, Ni; Kong, Dongmin; Zhu, Ling; Xiong, Mengxu

doi: 10.1007/s10551-024-05676-1pmid: N/A

This study examines whether and how board gender diversity can affect corporate wage inequity by drawing on diversity theory and gender socialization and ethicality theories. Building on an exogenous relaxation of China’s one-child policy (OCP) in 2013, which led to a substantial decline in the female labor force participation rate. Our empirical analysis suggests that board gender diversity is negatively associated with corporate wage inequity. This result is robust to various endogeneity and sensitivity analyses. We find that the OCP relaxation only increases average executive pay; it does not affect employee pay. One potential mechanism driving our results is that the decline in board gender diversity caused by the OCP relaxation reduces supervision, restriction, and fairness within the firm, which increases executives’ pursuit of personal interests and ultimately leads to the rise of wage inequity. Our findings are particularly significant for firms in capital-intensive industries, firms with a low level of employee bargaining power, and large firms.