Journal of Business Ethics

Why do marketing managers in the transitional economies of Eastern Europe and China often engage in competitively irrational behavior, choosing pricing strategies that damage competitors’ profits, rather than choosing pricing strategies that improve their firm’s profits? We propose one possible reason, the moral vacuum created by the collapse of communist ideology. We hypothesize and find that managers who experienced formal communist moral ideological indoctrination are less likely to be competitively irrational than the post-communist managers who did not. Implications are discussed.

Based on the experience of a course taught by the authors, this paper seeks to show that an adequate use of IT in the teaching of a Business Ethics (BE) course depends on clarifying the assumptions about ethics and the place of the course within a programme. For this purpose it explains how IT can be used to strengthen a view of BE based on dialogue and mutual learning and it encourages the combination between virtual and face-to-face teaching. Finally, the paper examines the relationship between the use of IT, individual learning processes and communities of practice.

The literature on error sharing has focused on employees’ cost–benefit assessment to predict whether employees will disclose self-made errors. Our study advances this line of research by adopting a different theoretical lens and examining leaders’ role in promoting employee error sharing. Drawing primarily upon social learning theory, we expected that when team leaders openly talk about their own errors within teams, through their behavior, they would set an example for team members and encourage members’ error sharing with team leaders. Based on a sample of 353 employees within 95 teams, we found a positive link between leader error sharing and team member error sharing; in addition, we found that ethical leadership evaluation partially mediates this positive link. Moreover, we found that leader error sharing was positively related to the team error management climate, which moderated the relationship between ethical leadership evaluation and team member error sharing in such a way that the positive relationship becomes stronger under a higher error management climate. Our findings highlight the critical roles played by leaders in promoting employees’ error sharing.

Four real-life dilemma cases collected from Hong Kong managers were included, along with two other cases previously used by Weber (1991), in an instrument designed to assess ethical reasoning capacity. This was completed by 86 part-time post-graduate students, all of whom were managers with at least four years working experience. Respondents' measured ethical reasoning capacity appeared to be at least as high as comparable samples in the U.S.A. The mean ethical reasoning stage varied between cases. Contrary to expectations, the unfamiliarityper se of a case did not affect ethical reasoning which instead tended toward higher measured stages when issues of public hazard or environmental pollution were introduced, and toward lower measured stages where personal or family finances were at stake. Two methodological points were made signalling the need for caution in research of this kind. First, because of reservations about the adequacy of the standard Kohlbergian model of ethical reasoning development, a scoring guide based on a revised Kohlbergian model of ethical reasoning was used to analyze the replies, rendering comparisons with other samples inexact. Second, the possible phenomenon of quasi Stage Five reasoning renders problematic the identification of “true” Stage Five ethical reasoning.

The concept of the Transitional Economy denotes the problematic processes of change confronting nations wishing to achieve levels of economic development comparable with that of Western nations. Such an objective is problematic, as these nations may also be said to be in a state of transition. Globalization and E-commerce have necessitated a reconsideration of the nature of business activity and its implications for both society and the individual. Writers such as Gray (1998) warn against the "refashioning" of other nations in the image of the American free market. Business ethics can be seen as a symbolic expression of Beck's (1992) concern with the implications of Risk Society and the uncertainties arising from the realization that scientific, technological, and economic progress are not necessarily concomitant with social, cultural, and political progress. Locating business ethics within the theoretical context of Reflexive Modernity provides a means of evaluating the contribution that it can make to providing a critical forum for considering the ways in which business organisations are responding to concerns regarding business activity. (168)

In this comparative survey of 191 Egyptian and 92 U.S. executives, we explore the relationship between national culture and ethical decision-making within the context of business. Using Reidenbach and Robin’s (1988) multi-criteria ethics instrument, we examine how differences on two of Hofstede’s national culture dimensions, individualism/collectivism, and power distance, are related to the manner in which business practitioners make ethical decisions. Egypt and the U.S. provide an interesting comparison because of the extreme differences in their economies and related business development. Our results indicate that respondents from the U.S, individualistic and low in power distance, were likely to view the decision making outcome in ethics scenarios as more unethical than the more collectivistic and high power distance Egyptians, when applying ethical criteria based on justice, utilitarianism, relativism, and (contrary to our predictions) egoism. However, we also found that both Egyptians and Americans rely on justice, utilitarianism, and relativism in predicting their intentions to behave ethically, and that Americans substitute egoism for justice, when the behavioral intentions of peers are examined.

Global sourcing largely occurs from so-called emerging markets and developing economies (EMDEs). In these contexts, substantial leverage effects for sustainability in supply chains (SCs) can be expected by reducing adverse impacts on society and minimising related risks. For this ethical end, an adequate understanding of the respective sourcing contexts is fundamental. This case study of South Africa’s (SA) mining sector uses institutional theory and the notion of institutional uncertainty to empirically analyse the challenges associated with establishing social sustainability. The case study research is informed by 39 semi-structured interviews with top management representatives and various state and non-state decision makers in SA. Our findings suggest that (social) sustainability in the institutional field is mainly shaped by the Social and Labour Plan institution, induced by state actors and mining companies’ practices. However, four weakening factors were identified that adversely affect this regulative institution, drive institutional uncertainty and allow for mining companies’ gradual decoupling. Contrastingly, complementing pressures of non-state actors limit institutional uncertainty and push toward mainstreaming the stipulations of the institution. This study contributes to the business ethics literature by providing an in-depth exploration of institutional uncertainty’s drivers and barriers within an upstream SC setting and shedding light on multiple actors’ interplay and relevance in sector-wide sustainability. The findings are condensed into three main propositions as well as an analytical framework as a basis for follow-up research. This case study helps practitioners understand and manage complexity that results from actor plurality and institutional uncertainty in EMDEs.

In this paper, we explore the consumer experience of responsibilization, wherein consumers are tasked with addressing social issues via their consumption choices. We study an approach to responsibilization which we label conscious pricing. Conscious pricing asks consumers to place a price on morality: How much would they pay for their lunch to combat the social issue of food insecurity? Conscious pricing stems from the broader movement of conscious capitalism, defined by its chief architects as an approach to business wherein the goal is to create value for all stakeholders: financial, ecological, ethical, and spiritual. Strategies such as conscious capitalism rely on consumers acting responsibly, assuming that consumers, when presented with the opportunity to “do good,” will do so, and that consumers will prefer companies who provide them this opportunity. Using a case study approach and online reviews, in our analysis of Panera Cares, we find that consumers in fact experience discomfort when asked to address social issues via how much they choose to pay for their meal. Because food insecurity is embodied by homeless people eating with them in the café, eating in the café is perceived as unpleasant, and the homeless also feel demoralized. This discomposure leads consumers to resist the subject position of being responsibilized by not supporting the organization that is tasking them to do so. This study is the first empirical examination of the consumer experience of consumer responsibilization and allows us to contribute to a deepened understanding of consumer ethics.

What factors in the organizational culture of an ethically exemplary corporation are responsible for encouraging ethical decision making? This question was analyzed through an exploratory case study of a top pharmaceutical company that is a global leader in ethics. The participating organization is renowned in public opinion polls of ethics, credibility, and trust. This research explored organizational culture, communication in issues management and public relations, management theory, and deontological or utilitarian moral philosophy as factors that might encourage ethical analysis. Our understanding of organiza tional ethics is enhanced by elucidating factors the case revealed as encouraging ethical analysis an organizational culture that emphasizes the importance of ethics, Theory Y management, a symmetrical worldview valuing innovation and dialogue, a counseling role for issues management or public relations in the dominant coalition, rewarding ethical behavior, ethical analysis using moral philosophy, consistency between individual values and organizational philosophy, and ethics training. These factors, and perhaps others as yet unidentified, worked together to create an environment that encouraged ethical decision making at the exemplar organization.