The Effects of the Recession on Attitudes toward Business Ethics: An Inter‐temporal Study of Business Students in 2001, 2009, and 2010

This inter‐temporal study compares the ethical attitudes of business students at three points: in 2001, when the economy was relatively healthy; in 2009, near the beginning of the current recession; and in 2010, when the economy was worse. Ethical attitudes were measured by replicating a popular survey consisting of 25 ethically charged vignettes. The survey measures willingness to engage in white‐collar crime behaviors, some clearly illegal; others marginally unethical. Findings show an increase in tolerance for clearly illegal behaviors from 2001 to 2009 and an increase in tolerance for an even broader array of unethical acts from 2009 to 2010. As compared with 2001 respondents, 2009 respondents were more tolerant of seriously illegal behaviors but less tolerant of marginally unethical ones. In 2010, respondents were more accepting of both kinds of unethical behaviors. The results also suggest that the change in ethical attitudes from 2009 to 2010 was larger than the average annual change in ethics from 2001 to 2009. These findings are discussed within the framework of classical strain theory, Agnew's General Strain Theory, and the legitimacy of social institutions.     

中国企业管理人员对创业的态度

本文调查了三组中国企业管理人员的态度。内容涉及他们对创业的兴趣以及他们对于创业成功机会的预期,并试图通过此类调查找到一些普遍性。这些将对企业家领域的政策制定者有所帮助。     

Corporate Citizenship and Managerial Motivation: Implications for Business Legitimacy

In 2000, Business and Society Review published a Special Issue of the journal to explore scholars’ ideas about how the practice of corporate citizenship would evolve in the 21st century. Contributors to the volume predicted a change in business motives for engaging in social initiatives, suggesting that managers would begin to see corporate citizenship as a strategic necessity to preserve organizational legitimacy in the face of changing social values. This article uses data from a study of corporate citizenship practices in over 500 Norwegian companies to explore the validity of the Special Issue predictions. We begin by reviewing the foundations of organizational legitimacy theory and examine recent research documenting the growing importance of corporate citizenship for assessments of business legitimacy. We describe our study methods, present our results, and discuss the implications of our findings in this context.     

分隔机制与创业孵化型平台企业合法性保护

立足于合法性溢出视角和组织场域治理视角,提出两组关于分隔机制的竞争性假设,探讨“创业孵化型平台企业在给创业企业共享合法性过程中,如何避免反受其害”。研究表明:分隔机制可以作为一种调节因素,缓解创业企业不愿创新或不端行为对创业孵化型平台企业合法性的破坏,但不能通过直接约束创业企业的意愿或行为,来保护创业孵化型平台企业的合法性。     

Communicating Earthquake Preparedness: The Influence of Induced Mood,Perceived Risk,and Gain or Loss Frames on Homeowners’ Attitudes Toward General Precautionary Measures for Earthquakes

Despite global efforts to reduce seismic risk, actual preparedness levels remain universally low. Although earthquake‐resistant building design is the most efficient way to decrease potential losses, its application is not a legal requirement across all earthquake‐prone countries and even if, often not strictly enforced. Risk communication encouraging homeowners to take precautionary measures is therefore an important means to enhance a country's earthquake resilience. Our study illustrates that specific interactions of mood, perceived risk, and frame type significantly affect homeowners’ attitudes toward general precautionary measures for earthquakes. The interdependencies of the variables mood, risk information, and frame type were tested in an experimental 2 × 2 × 2 design (N = 156). Only in combination and not on their own, these variables effectively influence attitudes toward general precautionary measures for earthquakes. The control variables gender, “trait anxiety” index, and alteration of perceived risk adjust the effect. Overall, the group with the strongest attitudes toward general precautionary actions for earthquakes are homeowners with induced negative mood who process high‐risk information and gain‐framed messages. However, the conditions comprising induced negative mood, low‐risk information and loss‐frame and induced positive mood, low‐risk information and gain‐framed messages both also significantly influence homeowners’ attitudes toward general precautionary measures for earthquakes. These results mostly confirm previous findings in the field of health communication. For practitioners, our study emphasizes that carefully compiled communication measures are a powerful means to encourage precautionary attitudes among homeowners, especially for those with an elevated perceived risk.     

Risky Business: Perceived Behavior of Local Scientists and Community Support for Their Research

Attracting new technologies to a region can mean significant economic growth, so understanding why some communities may not favor becoming “the next Silicon Valley” merits consideration. This study investigates the relationship among the perceived behavior of local scientists and community members' attitudes toward their research. Drawing on theories from organizational justice, it hypothesizes that when local residents consider scientists as more just in their behavior, they will also have more favorable attitudes toward the scientists and their research. Just, in this sense, refers to whether scientists are perceived as fair in terms of outcomes, procedures, interpersonal treatment, and explanations in their dealings with the community. Favorable attitudes are measured in terms of concern about new technologies and satisfaction with research. Data were collected via a mail survey of residents in two upstate New York counties (N= 1,306) that host substantial technology research facilities. Controlling for demographics, media use, basic science knowledge, and technology awareness, the results show that distributive justice (i.e., fairness of outcomes) had a consistent, negative relationship with technology concern. In comparison, all four justice variables were positively related with research satisfaction. The findings suggest that the perceived behavior of local scientists may indeed impact community support for their research.     

An Empirical Investigation of Terrorism-induced Stress on Expatriate Attitudes and Performance

Despite international terrorism's increasing relevance for international business, the effects of terrorism that confront employees during assignments abroad have hardly been investigated. Applying a stress perspective, this article analyzes the impact of terrorism-induced stress on attitudes and the performance of expatriates. Employing data from 143 expatriate managers in high-risk countries, the study shows that several terrorism-related stressors create a significant stress level for the individual, causing negative work attitudes and attitudes towards host country nationals (disaffection). This eventually leads to worse performance. We applied partial least squares (PLS) structural equation modeling (SEM) to analyze the entire impact path and found substantial support for our hypotheses. Of all the relevant stressors, intra-family conflicts due to terrorism have the greatest impact.     

In Defense of a Utilitarian Business Ethic

In this article, I suggest and support a utilitarian approach to business ethics. Utilitarianism is already widely used as a business ethic approach, although it is not well developed in the literature. Utilitarianism provides a guiding framework of decision making rooted in social benefit which helps direct business toward more ethical behavior. It is the basis for much of our discussion regarding the failures of Enron, Worldcom, and even the subprime mess and Wall Street Meltdown. In short, the negative social consequences are constantly referred to as proof of the wrongness of these actions and events, and the positive social consequences of bailouts and other plans are used as ethical support for those plans to right the wrongs. I believe the main cause of the neglect of the utilitarian approach is because of misguided criticisms. Here, I defend utilitarianism as a basis for business ethics against many criticisms found in the business ethics literature, showing that a business ethics approach relying on John Stuart Mill's utilitarianism supports principles like justice, is not biased against the minority, and is more reasonable than other views such as a Kantian view when dealing with workers and making other decisions in business. I also explain utilitarian moral motivation and use satisficing theory to attempt to defend utilitarian business ethics from questions raised regarding utilitarian calculus.     

Introducing Discriminant Analysis to the Business Statistics Curriculum*

Recently a good deal of interest and effort has been directed toward making statistics courses more effective in business schools. It is believed that a key to success in this area involves giving a more prominent role to statistical tools which are useful in actual business practice. If the research literature is any indication, discriminant analysis (DA) has many potential applications in virtually all areas of business. Yet, DA is rarely taught in undergraduate business and/or M.B.A. statistics courses. This is partially due to the fact that most presentations of DA are relegated to multivariate statistics texts that assume an advanced knowledge of linear algebra. This paper attempts to rectify this situation by proposing a simplified pedagogical approach for introducing linear DA in undergraduate and/or M.B.A. business statistics courses.     

Cultural Differences: A Cross-cultural Study of Urban Planners from Japan,Mexico, the U.S., Serbia-Montenegro,Russia, and South Korea

This study evaluates the efficacy of Hofstede’s indexes of national culture in the context of public planning agencies across six countries—US, Mexico, Serbia-Montenegro, Russia, Japan, and South Korea. We surveyed 343 planning employees and computed separate one-way, between groups analyses of variance to test for overall differences in Hofstede’s indexes. We found that public planning officials across countries are significantly different on all five dimensions of culture. We comment on how cultural differences might factor into urban planners’ attitudes toward advocacy and social equity planning, market-based planning, citizen participation, rational planning, and other issues relevant to planners’ roles.     

Trust, the Asymmetry Principle, and the Role of Prior Beliefs

Within the risk literature there is an ongoing debate on whether trust is vulnerable or enduring. Previous research on nuclear energy by Slovic in 1993 has shown that negative events have much greater impact on self-reported trust than do positive events. Slovic attributes this to the asymmetry principle: specifically, that trust is much easier to destroy than to create. In a questionnaire survey concerning genetically modified (GM) food in Britain (n= 396) we similarly find that negative events have a greater impact on trust than positive events. Because public opinion in Britain is skewed in the direction of opposition toward GM food, the pattern of results could either be caused by the fact that negative information is more informative than positive information (a negativity bias) or reflect the influence of people's prior attitudes toward the issue (a confirmatory bias). The results were largely in line with the confirmatory bias hypothesis: participants with clear positive or negative beliefs interpreted events in line with their existing attitude position. However, for participants with intermediate attitudes, negative items still had greater impact than the positive. This latter finding suggests that, congruent with the negativity bias hypothesis, negative information may still be more informative than positive information for undecided people. The study also identified the labeling of GM products, consulting the public, making biotechnology companies liable for any damage, and making a test available to detect GM produce as being particularly important preconditions for maintaining trust in the regulation of agricultural biotechnology.     

International Business,Human Rights,and Moral Complicity: A Call for a Declaration on the Universal Rights and Duties of Business

The purpose of this article is to call for the formulation and adoption of a declaration on the universal rights and duties of business. We do not attempt to define the specific contents of such a declaration, but rather attempt to explain why such a declaration is needed and what would be some of its general characteristics. The catalyst for this call was the recognition that even under optimal conditions, good companies sometimes are susceptible to moral lapses, and when companies undertake ventures in authoritarian countries with poor human rights records, even those with the best intentions may find themselves drawn into complicity in human rights abuses. There, market exigencies may persuade them to leave their codes of ethics and commitments to human rights at home. Pragmatism, it would seem, requires thatthey accept the ethical inconsistencies that follow from a “When in Rome, do as they Romans do” outlook. When facing the moral dilemma about whether or not to invest in human rights abusing countries, companies are offered two alternatives: they can operate in those countries and accept potential complicity or they can stay away. We suggest, however, that a preferable option is to address the underlying problem, and to this end we advocate the promulgation of a declaration for business that is comparable to the Universal Declaration of Human Rights. Our proposed name for this is the “Declaration on the Universal Rights and Duties of Business.” To be effective, such a declaration would require enforcement mechanisms. To illustrate this issue, we focus on China, not because China is unique in its human rights abuses, but because China occupies such a central place in the globalization efforts of the major companies from around the world. A robust international declaration is needed to provide a common framework for the practice of consistent and fair business competition everywhere.     

Climate change,consumer lifestyles and legitimation strategies of sustainability-oriented firms

This study explores the links between climate change, consumer lifestyles, and legitimation strategies of sustainable firms. Our findings offer new insight into this under-researched area based on qualitative case studies of four Nordic firms operating in industrial and consumer contexts. We find that climate change consciousness is a major driver for all case firms’ sustainability-focused operations, but the dynamics differed. Achieving sociopolitical legitimacy emerges as an important factor for the case firms operating in the energy sector, especially as it connects to government incentives and regulative pressures. However, cognitive legitimacy is increasingly important for them also, and the firms are trying to connect to their consumers’ lifestyles as well. In turn, for the case firms operating in the consumer (clothing) industry, functionality and the use of products are highlighted even though cognitive legitimacy based on linking to their consumers’ lifestyle is visible. Finally, the findings reveal that despite the sustainable lifestyles are increasingly important and better recognized in firm strategies and practices, other practicalities of running the business successfully in a highly competitive marketplace are relevant. Building legitimacy in such a way that captures and justifies different approaches, therefore, emerges as the connecting factor between the changing consumer behavior and pro-environmental firm practices.     

A Business Model Innovation Typology

An effective business model is the core enabler of any company's performance. Business model innovation is not only becoming more and more important due to increasing and globalizing competition, but also an enormous challenge, both theoretically and practically. Although many managers are eager to consider more disruptive changes to their business model, they often do not know how to articulate their existing or desired business model and, even less so, understand the possibilities for innovating it. One of the steps toward developing more theoretical insight and practical guidelines is the identification of types and the development of a typology of business model innovations. Ten retrospective case studies of business model innovations undertaken by two industrial companies provide the empirical basis for this article. We analyzed the characteristics of these innovations as well as their success rates. The findings suggest that there are indeed various business model innovation types, each with its own characteristics and challenges.     

Business ethics and philosophical pragmatism

Today it is common for business people to refer to themselves as pragmatists. There is, however, at least one significant difference between business pragmatism and traditional philosophical pragmatism: the attitude towards ethics. In this paper we discuss several approaches business pragmatists have taken toward ethics in business. We then describe the approach taken by one philosophical pragmatist, William James. We conclude that, pragmatically speaking, philosophical pragmatism is the superior view.     

顾客授权与新企业合法性关系实证研究

从互动导向与合法性视角,基于中国转型情景下的大样本数据验证了政治网络对于顾客授权与组织合法性关系的负向调节作用。这一结论说明转型背景下的新企业可以借助政治网络行为获得一定的成长资源并缓冲制度压力,其依赖顾客授权式互动获取合法性的市场动机与行为下降,从而表现出顾客授权与组织合法性关系强度上的减弱。     

Codes, Stakeholders and Business Philosophy

Two concepts that business ethics has made its own are codes of practice and stakeholding. They pre-date the self-conscious, organised business ethics effort. Codes are standard in large businesses in the United States, but are not so widely used elsewhere. Stakeholder models remain largely aspirational. Both concepts have critics, and their practical value has yet to be proved. Despite this, they have the potential to transform the quality of business life. Their main strength is in combination with an appropriate business philosophy, which does not yet exist. Widely respected business values can be identified, but they need to be founded on basic principles, which is a requirement for any discipline to move from ideology to maturity. Some possible principles are suggested. An illustration is taken from financial services regulation, where markets are generally seen (to borrow Rousseau's phrase) as having to be ‘forced to be free.’ This revised version was published online in July 2006 with corrections to the Cover Date.     

Developing alliances between U.S. and Portuguese executives: The impact of executive courage

This study represents an effort to gain insights into the differences between U.S. and Portuguese executives with regard to their attitudes toward the role of executive courage in the business organization. Eighty Portuguese and 40 American executives participated in the study. Four research questions were formulated and investigated. Results show that the two groups of executives tended to be more similar than different. However, some statistically significant differences between the two samples were detected. Portuguese organizations exhibited significantly more control over the actions of their executives and rewarded efficiency rather than effectiveness, when compared to American business organizations. Implications for strategic alliances between Portuguese and American executives are discussed and recommendations for future research are provided.     

Harnessing Customer Mindset Metrics to Boost Consumer Spending: A Cross-Country Study on Routes to Economic and Business Growth

The relationship between customer mindset metrics (CMMs) and consumer spending has been extensively investigated at the consumer and firm level, but little is known about it at the national level, nor about how it differs between countries. Drawing on five publicly available datasets gathered in 10 European countries over 20 years, our study traces the connections between three CMMs – customer satisfaction, perceived service quality and loyalty intentions – and consumer spending, as well as examining the moderating cross-country effects of culture, socioeconomic factors, economic structure and political–economic elements. The results show that the CMMs significantly influence consumer spending in all the countries studied, with the effects most pronounced in societies with relatively low education levels, a dominant service sector, fewer barriers to business and international trade and a foundation of survival values rather than self-expressive values. Our findings suggest that CMMs can be used to boost not just business performance but also economic growth, and therefore have significant implications for policymakers as well as practitioners and companies.     

International Evidence on the Determinants of Organizational Ethical Vulnerability

This paper proposes a model to explain what makes organizations ethically vulnerable. Drawing upon legitimacy, institutional, agency and individual moral reasoning theories we consider three sets of explanatory factors and examine their association with organizational ethical vulnerability. The three sets comprise external institutional context, internal corporate governance mechanisms and organizational ethical infrastructure. We combine these three sets of factors and develop an analytical framework for classifying ethical issues and propose a new model of organizational ethical vulnerability. We test our model on a sample of 253 firms that were involved in ethical misconduct and compare them with a matched sample of the same number of firms from 28 different countries. The results suggest that weak regulatory environment and internal corporate governance, combined with profitability warnings or losses in the preceding year, increase organizational ethical vulnerability. We find counterintuitive evidence suggesting that firms’ involvement in bribery and corruption prevention training programmes is positively associated with the likelihood of ethical vulnerability. By synthesizing insights about individual and corporate behaviour from multiple theories, this study extends existing analytical literature on business ethics. Our findings have implications for firms’ external regulatory settings, corporate governance mechanisms and organizational ethical infrastructure.