It is no secret that employees leave their organizations because of bad managers- but what about the good ones? How can researchers and organizations differentiate individuals in terms of the interpersonal skills needed to perform well in the managerial role? Although these are fundamentally important questions to organizational psychologists, there exists no conceptual model, definition, or measure of interpersonal skills specific to the managerial role. We address these questions and research gaps by developing a conceptual model and validating (...) a concomitant measure of managerial interpersonal skills through a research program that included four studies across three phases: First, through a review of the literature and structured interviews with practicing managers; next, three quantitative studies in which we develop, refine and validate our MIPS scale; and finally, in a fourth validation study with matched supervisor-employee data from a large healthcare organization. Results suggest that MIPS are best represented by a three-dimensional model comprised of supporting, motivating and managing conflict all indicating a higher-order latent MIPS factor. Results also indicate the MIPS Scale predicts job attitudes and performance among both employees and managers above and beyond personality traits and leader-member exchange, as well as constructs closely related to MIPS, such as social support and conflict management style. (shrink)

The goal of this paper is to connect managerial behavior on the “agent-steward” scale to managerial moral development and motivation. I introduce agent- and steward-like behavior: the former is self-serving while the latter is others-serving. I suggest that managerial moral development and motivation may be two of the factors that may predict the tendency of managers to behave in a self-serving way (like agents) or to serve the interests of the organization (like stewards). Managers at (...) low levels of moral development are more likely to behave like agents, while managers at higher levels of moral development are more likely to behave like stewards. I also argue that managers at the highest level of moral development may serve the interests of people other than the firm’s owners and thereby transfer wealth from the firm’s owners to third parties. Moral motivation is likely to be a factor that moderates the proposed relationships. Finally, I develop propositions that address the role of material incentives in controlling behavior of managers at different levels of moral development. (shrink)

The purpose of the research is to develop a new methodological basis for identifying, analyzing and solving problems of international corporations export-import activities and to ground the directions for ensuring their business excellence. The approach originality provides introduction of a conceptual model that aims to eliminate the negative symptoms of international corporations export-import activities based on the results of comprehensive market research, effectiveness of export-import activities and calculation of the integrated indicator of business excellence. The leading corporations of Slovakia and (...) India in the production of bi-axially oriented polypropylene (BOPP) films were the primary basis for this study. The results of the research showed the need to implement a system of managerial innovation for reasoning the directions of ensuring international corporations business excellence. This is achieved because of using logically formalized methods and provides the improvement of organizational and structural interaction of management entities in the process of solving export-import activity problems. Important factors for ensuring business excellence are also the optimization of export and import costs, as well as an increase in export revenue for Slovak companies, and an increase in market share and cost optimization for Indian companies. The practical value of the obtained results is to develop a set of managerial innovations that can improve the efficiency of export-import activities and improve international corporations business. (shrink)

A line of research is emerging investigating the private sector impacts and dependencies on critical biodiversity and ecosystem services, and related business risks and opportunities. While the ecosystem services narrative is being forwarded globally as a key paradigm for promoting business sustainability, there is scarce knowledge of how these issues are considered at managerial level. This study thus investigates managerial views of corporate sustainability after the ecosystem services concept. We analyse interviews conducted with 20 managers from domestic and (...) international forestry companies operating with a plantation-based business model in China. Content analysis was employed to analyse the data, with a focus on four key areas: interviewee familiarity with the ecosystem services concept; their views of corporate dependencies and impacts on ecosystem services; related business risks and opportunities; and viability of existing instruments and practices that can be employed in detecting and addressing business impacts and dependencies on ecosystem services. Through an inductive approach to the empirical findings, we refined a framework that holds operational value for developing company response strategies to ecosystem services impact/dependence assessment, ensuring that all issues are addressed comprehensively, and that related risks and opportunities are properly acknowledged. (shrink)

The paper outlines an indigenous approach to managerial transformation for TQM primarily based on the classical wisdom literature of India. It lays emphasis on the transformation of the subjective domain of the individual as a prior requirement for ensuring quality in other dimensions of the organization. An indepth exploration of a model of the human being, purpose of life and meaning of work have been attempted with specific methodological implications for the individual and the organization. Finally, it provides directions (...) for a transformational HRD endeavour covering issues like personality development, leadership, teamwork and communication for TQM effectiveness. (shrink)

This study examines whether truth-telling in the form of honest reporting is associated with cognitive moral development. Conventional agency theory assumes that people are self-interested and willing to tell a lie to increase their personal payoffs, while recent empirical evidence shows that some people give up monetary rewards to tell the truth. The social psychology literature suggests that cognitive moral development influences individuals’ ethical decisions. We carried out an experiment whereby participants submitted managerial reports in which truth-telling (...) decreased their monetary payoff. Despite the fact that their decisions were not subject to monitoring, auditing, or reputation effects, some participants reported honestly or partially honestly. We find the relationship between honest reporting and cognitive moral development to be both positive and linear. Compared with those at lower stages of cognitive moral development, participants at higher stages of cognitive moral development were more likely to submit an honest report and give up potential monetary gains from lying. We further examine the economic impact of honest reporting on the firm’s profit. With the assumption of self-interest and profit maximization, Antle and Eppen suggest that a contract with a hurdle-rate feature reduces managers’ information rent. We find that in comparison with the expected outcome of a hurdle contract, the firm can yield higher profits with a trust contract by hiring managers with a P-score higher than 16.67. (shrink)

There is a need of further research to understand how social capital in the organization can be fostered. Existing literature focuses on the design of reciprocity norms, procedures and stability employment practices as the main levers of social capital in the workplace. Complementary to these mechanisms, this paper explores the impact of ethical managerial behaviour on the development of social capital. We argue that a managerial behaviour based on the true concern for the well-being of employees, as (...) well as their motivational and ethical development, can be particularly important for the generation of social capital in the organization. It is suggested that manager's behaviour should be based on three principles: following examplary behaviour, helping the employees to value the consequences of their actions in other persons, and not betraying employee's trust. When the manager conforms to those principles, he can ease the process through which employees develop associability and identification-based trust with the firm, the two main components of 'Organizational Social Capital'. Bringing ethics into the debate of social capital creation seems to us fundamental, as social capital in the firm is likely to be influenced by the ethical and motivational development of its members. (shrink)

Aristotle’s philosophical insights into ethics, wisdom and practice have drawn the attention of scholars. In the current professional context where ethics are often compromised, this debate assumes a necessary urgency. This subject is highly relevant to business schools, given the general neglect of this quality in executive management development. Our research involved an analysis of contemporary literature on phronesis in the management scholarship, practice and teaching domains. Our definition of phronesis identifies themes and paradoxes distilled from this literature. Stories (...) are by nature multi-layered and paradoxical, embracing ambiguity and contradiction, so we incorporate narrative as essential to our enquiry. While it appears to be easily grasped, phronesis is complex, nuanced and paradoxical, seen as an unorganised set of characteristics in the management scholarship domain. We argue that the neglect of phronesis in modernity flows from the challenging nature of developing it, itself the consequence of its indistinctness. It calls for Einstein’s words “I would give my life for the simplicity on the other side of complexity”. This article argues that developing this virtue as a form of practical wisdom, should be an integral part of executive management development if we are to cultivate morally responsible leadership. A typology of managerial phronesis will encourage contextually appropriate leadership excellence based on the virtue-attributes of managers-as-scholars. The typology we propose is based on a Grounded Theory synthesis of relevant literature. We adopt a phenomenological stance. Through incorporating Grounded Theory second order themes, we offer a grainier understanding of the qualities of managerial phronesis. (shrink)

This study examines the direct impact of three dimensions of the institutional environment on managerial attitudes toward the natural environment and the direct influence of the latter on the environmental sustainability orientation (ESO) of small firms. We contend that when the institutional environment is perceived by owner–managers as supportive of sound natural environment management practices, they are more likely to develop a positive attitude toward natural environment issues and concerns. Such owner–manager attitudes are likely to lead to a positive (...) and proactive orientation of their firms toward environmental sustainability. The study uses survey data from 166 small manufacturing firms located in three Philippine cities. First, the study develops and tests the measurement models to examine the validity of the constructs representing the firm’s institutional environment, managerial attitudes toward the natural environment and the ESO of firms. Second, the study develops and tests the structural models examining the institutional environment–managerial attitudes–ESO linkages. Multi-sample invariance structural model analysis shows the mediating role of managerial attitudes in the institutional environment–ESO nexus. The findings show that ESO is a construct comprising three dimensions: knowledge of environmental issues, sustainable practices and commitment toward environmental sustainability. The cognitive, regulatory and normative elements of the institutional environment are strongly linked to positive managerial attitudes toward environmental sustainability, which in turn, positively influences the firm’s overall ESO. Managerial attitudes play a mediating role in the institutional environment–ESO linkages. The managerial, practical, research and policy implications of the research findings are discussed. (shrink)

We examined whether and how managerial ability affects the relationship between customer concentration and corporate performance. Based on a novel measure of managerial ability, we found that customer concentration has a significant negative effect on corporate performance, while managerial ability can mitigate this effect. The negative effect of customer concentration is only significant in the subsample of low ability and lower efficiency in asset utilization, while the moderating effect of managerial ability is significant for all levels (...) of asset utilization efficiency and more significant for firms with a lower gross margin. The results are robust to numerous robustness tests and endogeneity concerns. Additional analysis of mechanisms shows that in addition to superior operating ability, competent managers select major customers who are more beneficial to their company and decrease the sensitivity of their research and development investment to customers. These findings indicate that the heterogeneity of managerial ability plays an important role in the supplier–customer context when the supplier firm generally faces one or more concentrated customers. (shrink)

This study uses judgment and decision-making (JDM) perspective with the help of framing and schema literature from cognitive psychology to evaluate how managers behave when problems with unethical overtones are presented to them in a managerial frame rather than an ethical frame. In the proposed managerial model, moral judgment of the situation is one of the inputs to managerial judgment, among several other inputs regarding costs and benefits of various alternatives. Managerial judgment results in managerial (...) intent leading to managerial action. The model and the effects of taking an ethics course on ethical and managerial judgment and managerial intent were then indirectly tested in this study, wherein subjects judged the ethical wrongness, managerial badness, and the managerial intent regarding decisions made in a case. Forty-nine MBA students analyzed a case involving budget-based bonuses and production, in which the ethical issue evolved over three stages. It appears from the Path-analysis results that managerial judgment mediated between moral judgment and the judgment of managerial intent as suggested by the proposed model, and that taking an ethics course directly affected managerial judgment but did not affect the moral judgment. Additionally, in the first stage of decision-making (early stage of a developing “ethical slippery slope”), moral judgment did not significantly influence managerial judgment. However, students with ethics course still were more inclined to judge the decision as managerially bad as compared to others, indicating that they were more aware or sensitive to the moral issues involved. (shrink)

While previous authors have broadly examined the motivations and outcomes of the philanthropic activities of organizations, the present study extends Miska et al.’s rationalistic approach to examine the degree to which managerial philanthropic decision-making behaviour is dominated by morality. This study also tackles the question of whether this relationship is moderated by the strength of the geographical proximity and amount of the donation within an agency framework. To probe the radical agency problem and the effect of intervention, an alternative (...) heuristic scenario is also developed to provide evidence that managers under the same moral level show significant differences in donation intention under a variety of agency conditions. The results indicate a significant difference between the existence and non-existence of agency problems in charitable decision-making by managers high in idealism and relativism; however, at the same time, philanthropic behaviour is intertwined with various dilemma-related contexts. These findings bridge the gap in the literature on ethics and corporate social responsibility, and challenge current thinking on corporate governance mechanisms in this area by offering researchers and practitioners an integrated model that responds to a strong sceptical bias or a high premium placed on morality. (shrink)

Background Managerial ethical principles and behaviours guide the roles, duties, responsibilities, behaviours, and relationships of nurse managers in healthcare institutions. Research objectives The aim of this study was to establish the managerial ethical principles and behaviours for nurse managers. Research question What are the managerial ethical principles and behaviours for nurse managers? Research design The Delphi method, one of the qualitative research methods, was used in this study. The Delphi process consisted of two rounds. Data were collected (...) by e-Delphi technique. Participations 42 experts were included in the first Delphi round and 39 in the second Delphi round. These experts consisted of nurse managers, academicians studying in the field of ethics and nursing management. Ethical considerations Participation in the study was voluntary and informed consent of the experts was obtained before the study. Approval was obtained from the ethics committee of the university at which the researcher worked (Approval date: 24.07.2020, Decision No: 2020/12-16). Findings At the end of the Delphi rounds, eight managerial ethical principles and 29 ethical behaviours of these principles were identified. The distribution of these behaviours and principles were: justice (six behaviours), equality (two behaviours), honesty (two behaviours), fairness (two behaviours), responsibility (eight behaviours), confidentiality (two behaviours), clarity (two behaviours), and humanity (five behaviours). Conclusion These managerial ethical principles and behaviours are intended to guide nurse managers when providing nursing services but should be updated accordingly in line with changing conditions and developments. (shrink)

Managers face an ethical dilemma in the allocation of scarce resources to corporate social responsibility (CSR) because the underlying managerial incentives behind such CSR spending can range from pure altruism to complete financial orientation. Despite the importance of the managerial role in implementing CSR, prior studies generally have treated the role of managers as an exogenous factor. This study builds on recent studies on the managerial characteristics in studies on CSR by examining how managerial efficiency influences (...) the outcomes of CSR. Using a newly developed measure of managerial efficiency, we find that, on average, managerial efficiency is positively associated with a subsequent change in corporate social performance (CSP), although the association is weak in the level of total CSP. We find that efficient managers are more likely to engage in the product-related CSR that directly connects to corporate financial performance (CFP) but are less likely to engage in environment-related CSR. We also find that CSP is positively associated with CFP with efficient managers. Our findings contribute to management and other stakeholders’ understanding of the association of CSR to its outcomes, CSP and/or CFP, which is hinged by the indispensable moderating role of managerial efficiency. (shrink)

In this paper I discuss the managerial template that has become the normative model for the organization of the university. In the first part of the paper I explain the corporatization of academic life in terms of the functional relationships that make up the organizational components of the commercial enterprise and their inappropriateness for the life of the academy. Although there is at present a significant body of literature devoted to this issue, the goal of this paper is to (...) explain the genesis of this phenomenon through a reference to the ideology that characterizes our modern secular age. This is the subject of the second part of the paper. Most texts seek to explain this ideological development either through the ever increasing dominance of economic rationalism, perceived conservatism of collegial forms of governance, the necessity to transfer fiscal responsibility in tight budgetary periods, the decline of the Keynesian ‘welfare consensus’, or the legacy of the power regimes that began to take shape in the liberal societies of the 19th century. I trace this development to the beginnings of Modernity and the Cartesian bifurcation that separated the material world from its spiritual and intellectual source and thereby overthrew the hierarchy of related values that informed both nature and human organization. In articulating this argument I make reference to the thought of Jacques Maritain, Charles Taylor and René Guénon. (shrink)

Green innovation plays an important role in reducing pollution and promoting sustainable development. However, not all managers, as decision-makers of enterprises, have a long-term vision to implement green innovation. The impact of managerial myopia on firm green innovation has not been examined by existing literature. Drawn on time-oriented theory in social psychology and upper echelon theory in management, this paper puts forward the relationship between managerial myopia and firm green innovation, and then constructs a managerial myopia (...) index by text analysis and machine learning. Using a sample of publicly listed Chinese firms from 2009 to 2020, this paper finds that managerial myopia is significantly negatively associated with firms’ green innovation. Every one standard deviation increase in managerial myopia makes enterprise green innovation decrease by about 1.9% standard deviation. Further analysis reveals that equity incentives and institutional investors both weaken the negative effect of managerial myopia on green innovation. This study contributes to the literature on green innovation and upper echelons theory and it also has several implications for firms’ engagement in green innovation. (shrink)

Professional Ethics, viewed as a managerial challenge and opportunity in this study, deals with the often overlooked conceptions, actions and behavior of individuals who see themselves both as members of a profession and as members of an organization. Managers have to deal with this dual loyalty and inherent potential for conflict. This is of particular importance for new types of organizations when wanting to develop and sustain an ethical platform for the ultimate goal – assuring that future business decisions (...) of individuals are in "ethical balance" with the organization's own values and goals. (shrink)

Who a manager is, as a person of moral character, has been only of tangential interest in social science definitions of management, which have focused on functions, roles, behaviors, and environmental influences. But how do managers themselves speak of managerial excellence? This paper answers this for a particular corporation, based on a three-phased research process that deliberately imposes no descriptive or normative categories, but allows the answer to emerge, listening to what managers themselves say when discussing excellent managers and (...) their behaviors. This approach finds that: (1) virtue ethics and virtue language is fluently used by practicing managers, (2) virtue language is important to understanding managerial excellence, and (3) whereas the set of virtues defining the excellent manager can be expected to be dependent on the societal, industry, and organizational context, such a set of manager virtues can be identified and prioritized within a particular organizational milieu. The implication is that, once an organization's management better understands the meaning of the excellent manager in terms of the virtue language already used by its own employees, it is better equipped to implement a practical ethic of virtues, one helpful toward recognizing and developing excellent managers. Ethics researchers are challenged to increase their understanding of extant virtue language as the basis for a renewed development of virtue ethics theory and applications. (shrink)

“Confucianism⋯ is a universal ethic in which the rules and imperatives of behavior hold for all individuals.” (Peter F. Drucker, Forbes, 1981). Peter Drucker is credited as the founder of modern American management. In his distinguished career he has written widely and authoritatively on the subject and to a large extent his work possesses a distinctive ethical tone. This paper will argue that Confucian ethics underlie much of Drucker's writing. Both Drucker and Confucius view power as the central ethical issue (...) in human relations. They emphasize authority, leadership, legitimacy, hierarchy, interdependence and individual ethical responsibility in their analysis of human affairs. Drucker views the development of large-scale formal organizations and the concomitant rise of the managerial class as the most significant developments of the 20th century, which makes the management of interdependent roles and relationships a central ethical challenge. Confucius, and the early Confucians, understood human relationships as based upon hierarchy, interdependence and personal ethics. The paper will analyze Drucker's work in light of the early Confucian Classics (The Analects, The Mencius, The Great Learning and The Doctrine of the Mean). Drucker, himself, considers The End of Economic Man (1939), The Future of Industrial Man (1942), Concept of the Corporation (1983), and The Essential Drucker (2001) as his most important and influential works. The paper will analyze these along with other works by Drucker as appropriate. (shrink)

Continual pressure on managers, their efficiency, and the need to search for novel solutions to problems can lead to psychologically demanding situations. In efforts to understand the main obstacles to work and to effectively manage work-related processes, and in the need to achieve personal development, new approaches that are based on existential philosophies emerge. The aim of this article is to highlight the ways in which existential approaches have been used or discussed in management and to show that existential (...) themes and their applications in management can also be found in the Eastern tradition of thought. The paper presents six case vignettes from management practice that use Western and Eastern existential insights and offer recommendations for self-development of managers. The paper concludes that although it is difficult or impossible to create a unified framework of existential philosophy of management because of the diversity of existential approaches and because of the problematic nature of comparing Eastern and Western philosophies, it is possible to work towards gathering applicable insights and values. (shrink)

Managerial myopia occurs when executives value short-term benefits to the extent that firm long-run development will be obstructed. Recent studies have shown that the locality effect plays an important role in managerial myopia—local United States chief executive officers who work near their home states are less likely to behave myopically because of more effective monitoring and greater reputation concern. In an emerging market, government policies play a more important role in the strategic planning enterprises. A local CEO (...) may have better understanding of local government’s policies thus makes less short-term decisions. This article adds to this literature by testing whether local-province CEOs in China, i.e., the CEO’s native place or birthplace is in the same province as her company’s headquarters, are also far-sighted. Using data on 470 publicly listed non-state-owned Chinese firms from 2014 to 2018, supportive evidence has been found that non-local-province CEOs in China tend to cut R&D expenses for beating analyst forecasts, reversing earnings decline, or pursuing higher returns. This article also confirms social capital as one mechanism of Chinese local-province CEOs behaving less myopically. This investigation also adds to the literature by revealing a new mechanism that CEO locality in China has a positive and direct bearing on how governments support corporate innovation. (shrink)

There is growing interest in the positive organizational literature in the complex interplay between the positive and negative facets of organizations, individuals, and situations. The concept of courage provides fertile ground to study this interplay, since it is generally understood to be a positive quality that is manifested in challenging situations. The empirical study presented here looks at courage in a strategic decision-making context and takes an interpretive perspective; it focuses on the cognitive structures and subjective understandings of managers and (...) administrators involved in merger projects as a way to understand the dynamics surrounding managerial courage. Our study makes several contributions: it shows that managers consider courage to have a moral dimension, e.g., to be a positive and ethical response to a risky or difficult situation in which there is an interplay between organizational and personal interests; it identifies two kinds of managerial moral courage; it proposes a conceptual model with which to understand how evaluations of what is courageous and what is not are made; and finally, it offers four schemas developed from the data that add to our understanding of moral courage in management. (shrink)

This paper examines deviant managerial behavior, and compares such behavior to the clinical psychological sociopathic model. The scope of a multinational corporate operation can enhance or degrade the quality of life for individuals with more impact than at any previous time in history. Social costs are compared to the results of sociopathic behavior and examined as the result of amoral or immoral behavior. The idea of the sociopathic manager is discussed, and theoretical causes of sociopathic development are examined (...) with bases in behavioral, economic and criminological literature. Future research and recommendations for prevention of sociopathic behavior are advanced. (shrink)

The Corporate Social Performance (CSP) model (Wood, Acad Manag Rev 164:691–718, 1991) assesses a firm’s social responsibility at three levels of analysis—institutional, organizational and individual—and measures the resulting social outcomes. In this paper, we focus on the individual level of CSP, manifested in the managerial discretion of a firm’s principles, processes, and policies regarding social responsibilities. Specifically, we address the human resources management of employees as a way of promoting CSR values and producing socially minded outcomes. We show that (...) applying the humanist philosophy to the managerial discretion of a business organization leads to the creation of an “autonomy supportive work environment”—as defined by the self-determination theory—which in turn, facilitates the internalization of social values, citizenship behaviors, and cooperation. The objective of promoting self-determination at work (i.e., the core of a humanist management) fits well with the ontology of social responsibility since autonomy and consideration of individuals as moral actors are central tenets. Furthermore, we show that applying humanistic management philosophy to the discretion of managers can lead to socially responsible outcomes. First, intra-organizational stakeholders (e.g., employees) are treated with respect and focus is put on their well-being, satisfaction, and self-actualization at work. Second, as employees’ need of self-determination is addressed by managers, it is likely that pro-social behaviors toward other stakeholders of the organization will be adopted, leading to socially responsible outcomes for extra-organizational stakeholders (Gagné, Motiv Emot 77:58–75, 2003). Thus, this paper ultimately posits that humanistic management applied to the HRM can be a solution for developing and maintaining socially responsible outcomes as determined at the individual level of the CSP model, through managerial discretion. (shrink)

Corporate social responsibility (CSR) is a concept that has acquired a new resonance in the global economy. With the advent of globalization, managers in different contexts have been exposed to the notion of CSR and are being pressured to adopt CSR initiatives. Yet in view of vastly differing national cultures and institutional realities, mixed orientations to CSR continue to be salient in different contexts, oscillating between the classical perspective which considers CSR as a burden on competitiveness and the modern perspective (...) that views CSR as instrumental for business success. Capitalizing on the two‐dimensional CSR model developed by Quazi and O’Brien, Journal of Business Ethics, 25, 33–51 (2000), this article attempts to gauge managerial perspectives toward CSR in Lebanon. An empirical study of 119 Lebanese managers reveals that the majority of respondents (83 percent) are favorably inclined toward CSR with about 20 percent adhering to the modern paradigm, more than 50 percent adhering to a philanthropic view and 18 percent fitting into the classical camp. The findings are discussed and cross‐cultural implications drawn accordingly. (shrink)

Part of the _Managing in the Early Years_ series, this book provides practical advice about management theory and practice. Tracking the career development of a nursery nurse into a managerial role, this book: Clearly identifies and explains the managerial roles of team leader, senior supervisor, deputy and manager Focuses on the sudden change that takes place as you transcend from colleague to boss Offers advice on what is expected from you as you move into a managerial (...) role provides case-studies that challenge readers to develop their own views whilst learning about management theory gives Links to relevant Early Years management qualification frameworks and the NVQ and Btec National Diploma in the Early Years. Easy to use and apply, this is a must-have for students, assessors, nursery nurses with an interest in career development into management and anyone working within a early-years environment in a managerial role. (shrink)

Professional Ethics, viewed as a managerial challenge and opportunity in this study, deals with the often overlooked conceptions, actions and behavior of individuals who see themselves both as members of a profession and as members of an organization. Managers have to deal with this dual loyalty and inherent potential for conflict. This is of particular importance for new types of organizations when wanting to develop and sustain an ethical platform for the ultimate goal - assuring that future business decisions (...) of individuals are in "ethical balance" with the organization's own values and goals. (shrink)

ABSTRACT:We develop the concept of stakeholder salience to account for stakeholders who should matter to the firm, even when managers do not perceive them as important. While managers are responsible for attributing salience to stakeholders, they can overlook or ignore stakeholder importance because of market frictions that affect managerial perceptions or induce opportunism. When this happens, corporate financial and social performance can suffer. Thus, we propose that the perceptions of organizational and societal stakeholders should also codetermine the salience of (...) the focal stakeholder to the firm. We also propose that stakeholder dialogue can reduce the impacts that market frictions can have on managerial perceptions of stakeholder interests that should matter to the firm. Finally, we discuss how the refined conceptualization of stakeholder salience might have better predictive validity, be more normative, and make instrumental and normative stakeholder theory more convergent. (shrink)

This article reports on the development of the managerial ethical profile (MEP) scale. The MEP scale is a multilevel, self-reporting scale measuring the perceived influence that different dimensions of common ethical frameworks have on managerial decision making. The MEP scale measures on eight subscales: economic egoism, reputational egoism, act utilitarianism, rule utilitarianism, self-virtue of self, virtue of others, act deontology, and rule deontology. Confirmatory factor analysis (CFA) was used to provide evidence of scale validity. Future research needs (...) and the value of this measure for business ethics are discussed. (shrink)

In a globalizing world, cross-national differences in values and business culture and understanding these differences become increasingly central to a range of organizational issues and ethical questions. However, various concerns have been raised about extant empirical research on cross-national dissimilarities in the cultural values of managers (what we refer to as managerial values) and the development of a unified business culture. This paper seeks to address three such concerns with the literature on convergence versus divergence of cultural values. (...) It develops an empirical approach to the study of changing business cultures that revolves around birth cohorts and intergenerational values shifts and aims to advance empirical knowledge of the dynamics of cross-national differences in the cultural values of managers. We use time-series data covering 68,708 managers and are able to consider a sample of 32 countries that represent more than half of the cultural clusters recognized in the literature. Results reveal diverse shifts in managerial values across birth cohorts with cross-national dissimilarities waning for some basic cultural dimensions (“convergence”), remaining stable for other dimensions (“cultural stability”), and becoming more pronounced for other dimensions still (“divarication”). Moving beyond the standard convergence/divergence taxonomy, we conclude that a full-fledged convergence–stability–divarication perspective provides the best basis for thinking about the subtle ways in which business cultures are changing. (shrink)

In a globalizing world, cross-national differences in values and business culture and understanding these differences become increasingly central to a range of organizational issues and ethical questions. However, various concerns have been raised about extant empirical research on cross-national dissimilarities in the cultural values of managers and the development of a unified business culture. This paper seeks to address three such concerns with the literature on convergence versus divergence of cultural values. It develops an empirical approach to the study (...) of changing business cultures that revolves around birth cohorts and intergenerational values shifts and aims to advance empirical knowledge of the dynamics of cross-national differences in the cultural values of managers. We use time-series data covering 68,708 managers and are able to consider a sample of 32 countries that represent more than half of the cultural clusters recognized in the literature. Results reveal diverse shifts in managerial values across birth cohorts with cross-national dissimilarities waning for some basic cultural dimensions, remaining stable for other dimensions, and becoming more pronounced for other dimensions still. Moving beyond the standard convergence/divergence taxonomy, we conclude that a full-fledged convergence–stability–divarication perspective provides the best basis for thinking about the subtle ways in which business cultures are changing. (shrink)

Introduction. The relevance of the topic of the article is conditioned, on the one hand, by the necessity to assess the effectiveness of using the managerial potential of the key employees at the coal industry enterprises in Russia, on the other hand, by the lack of a scientific and methodological basis for solving the problem. The gap will not allow Russian coal companies to master the trajectory of sustainable economic development in the near future. The purpose of the (...) article is to develop a methodological approach to assessing the effectiveness of using the managerial potential of key employees in the coal industry. Methods. The author uses the methods of systemic, semantic and retrospective analysis, as well as benchmarking. Scientific novelty of the research. The author proposes a methodological approach to assessing and forecasting the effectiveness of using the managerial potential of key employees, a distinctive feature of which is determining the congruence of the internal competitive environment of a coal mining enterprise to its external environment. Results. The outlined approach to assessing the effectiveness of using the managerial potential of key employees makes it possible to predict and plan the trajectory of its development, taking into account the congruence of the internal competitive environment of an enterprise to the external environment, an innovative market economy. Conclusions. On the basis of the obtained quantitative results of assessing the effectiveness of using the managerial potential of key employees, the author concludes that there are significant opportunities to increase the level of managers’ competitiveness and the sustainable operation of coal industry enterprises in Russia, the implementation of which is achieved by the balanced development of managerial potential and strengthening the congruence of the internal competitive environment of an enterprise. (shrink)

The moral philosophy of Levinas offers a stark prospectus of impossibility for corporate ethics. It differs from most traditional ethical theories in that, for Levinas, the ethical develops in a personal meeting of one with the Other, rather than residing in some internal deliberation of the moral subject. Levinasian ethics emphasises an infinite personal responsibility arising for each of us in the face of the Other and in the presence of the Third. It stresses the imperious demand we experience to (...) be open to, prepared for and impassioned with that which we may not know, or recognise, about ourselves or about the Other. Such a demand transcends our intellectual and/or rational potential; it involves us in a carnal and somatic bodily experience of otherness. If we are to speak of Levinasian ethics in a business context, it cannot be a matter of corporate ethics but only a matter of individual managerial ethics. What such an ethics would be like is yet to be outlined. This paper proposes a series of questions and suggestions that will explicate some key terms of a practice organised around a Levinasian vocabulary of otherness, responsibility, proximity, diachrony and justice. (shrink)

Corporate social responsibility (CSR) has become an increasingly significant managerial concept, yet the manager as an agent of corporate bureaucracy has been substantially missing from both the analytical and conceptual literature dealing with CSR. This article, which is both interpretative in nature and specific in reference to the U.K. cultural context, represents an attempt at addressing this lacuna by utilising qualitative data to explore the perceptions of managers working in corporations with developed CSR programmes. Exploring managerial perceptions of (...) motives for CSR initiatives, methods of stakeholder engagement, organisational integration of CSR and its impact on managerial work, this study concludes that an instrumental approach dominates, which indicates an external-internal organisational paradox in the design and execution of CSR initiatives. (shrink)

This study examines the impact of returnee executives on top management teams' (TMTs') unethical management behavior (e.g., excess perquisite consumption). Synthesizing insights from upper echelons theory and the psychological entitlement literature, this study proposes that returnee executives cause TMTs to generate a high degree of psychological entitlement, which subsequently leads to a high degree of excess perquisite consumption in their firms. In addition, this study proposes that returnee chief executive officers, product diversification, and regional institutional development moderate the aforementioned (...) relationships by influencing managerial discretion. This study provides empirical evidence for the above view using a dataset that was constructed based on 1960 listed Chinese manufacturing companies from 2010 to 2019. From a psychological entitlement perspective, this study confirms, for the first time, that the introduction of returnee executives may have unintended negative consequences, for example, in promoting the excess perquisite consumption activities of TMTs. (shrink)

Corporate social responsibility (CSR) is a concept that has acquired a new resonance in the global economy. With the advent of globalization, managers in different contexts have been exposed to the notion of CSR and are being pressured to adopt CSR initiatives. Yet, in view of vastly differing national cultures and institutional realities, mixed orientations to CSR continue to be salient in different contexts, oscillating between the classical perspective which considers CSR as a burden on competitiveness and the modern perspective (...) that views CSR as instrumental for business success. Capitalizing on the two-dimensional CSR model developed by Quazi and O'Brien (Journal of Business Ethics 25, 33-51, 2000), this article assesses managerial perspectives towards CSR in three neighboring Middle Eastern countries (Lebanon, Syria and Jordan) through an empirical study involving 333 managers. The findings lend support to the Quazi and O'Brien model (2000), suggesting some commonalities in CSR orientations as well as minor divergences. The findings are discussed and cross-cultural implications drawn accordingly. (shrink)

The aim of this article is to provide an overview of various discourses relevant to developing a construct of collective _phronesis_, from a (neo)-Aristotelian perspective, with implications for professional practice in general and business practice and business ethics education in particular. Despite the proliferation of interest in practical wisdom within business ethics and more general areas of both psychology and philosophy, the focus has remained mostly on the construct at the level of individual decision-making, as in Aristotle’s _Nicomachean Ethics_. However, (...) he also made intriguing remarks about _phronesis_ at the collective level in his _Politics_: remarks that have mostly eluded elaboration. The aim of this article is practical and revisionary, rather than exegetical and deferential, with respect to Aristotle. Nevertheless, just as most of the literature on individual _phronesis_ draws on Aristotle’s exposition in the _Nicomachean Ethics_, the obvious first port of call for an analysis of collective _phronesis_ is to explore the resources handed down to us by Aristotle himself. The lion’s share of this article is, therefore, devoted to making sense of Aristotle’s somewhat unsystematic remarks and the lessons we can draw from them about collective managerial _phronesis_ and business ethics education. (shrink)

In today's world, businesses are involved in several different initiatives to gain sustainable performance, which can discourse the expectations and demands of society. Emerging economics faces numerous challenges in terms of social, relational, governance, and financial, which made it necessary for firms to perform responsibly in order to make positive contributions toward sustainability. Therefore, this study based on upper-echelon theory constructs a comprehensive framework on responsible leadership, corporate social responsibility, and managerial discretion to provide the guideline for business sustainability. (...) To fulfill the study purpose, an empirical analysis was performed on 382 Pakistani respondents' data by using PLS-SEM through SmartPLS. Outcomes of the study indicated that responsible leadership entails enormous importance in corporations to influence their impact on society, environment, and economy, which leads to business sustainability. Moreover, the study provides insights into that more responsible and experienced leaders are better able to identify the concerns of their firm's stakeholders in the manners of relational, governing, and orientational perspectives, which help them in satisfying the stakeholders' and society's demands. Hence, responsible leadership enables the firm to better strive for sustainability by applying better CSR activities and directing the decisions by maintaining the compliance of the managers. Furthermore, the current study concluded that the managers and leaders of firms need to develop their business models in such a way that it supports the triple bottom line performance of the firm so that they can achieve sustainability. This study would help managers of firms to realize that they should reexamine their leadership practices and behaviors with the consideration of the triple bottom line framework and integrate the sustainable approach and CSR practice into their business strategy so that they can accomplish the goal of sustainability for business and fulfill the social demands and expectations. (shrink)

This paper explores the managerial context surrounding fairness promotion using a multi-method examination that employs interviews and a survey of practicing managers. The results of these examinations describe how managers tend to focus their efforts to promote fairness on fairly allocating rewards and responsibilities, accurately and consistently applying organizational policies and providing representation and understanding to their subordinates around key organizational issues. Analyses of the interview and survey data show how managers’ efforts to promote employee development, enact (...) class='Hi'>managerial propriety, and demonstrate moral leadership mediate relationships between their fundamental desires to develop positive working relationships with their subordinates and the efforts they make to promote fairness. This paper concludes with a discussion about how this work refines and extends research on how and why managers promote fairness. (shrink)

In 1978, 16 months after Mao Zedong's death, China's new leader, Deng Xiaoping, introduced market reforms and an "opening" to the West that allowed the US company Hewlett-Packard (HP) to enter China in 1981. Shortly thereafter, HP began a partnership with the Chinese company Legend Computer (now Lenovo), through which HP transferred its technology in four main areas: (1) product technology, (2) business model, (3) management practices, and (4) strategic planning processes. This technology transfer seems to be a "just exchange" (...) in that HP received access to China's market while China received key managerial, marketing, and product technologies. Although multinationals are often criticized for their dealings with developing nations, the HP–Legend case provides an illustration of how a company from an industrialized nation can deal justly with a developing nation and assist in advancing its development. The transfer of technology from HP to Legend was facilitated by several factors, including HP's historical willingness to help startups, its strategic posture, a favorable local environment, Legend's recognition of its own needs, its willingness to learn from a foreign company, and the incentives to share technology that the Chinese government provided. (shrink)

The article deals with the influence of organizational ethics program components on managerial ethical behavior. The main aim was to establish which EP components are perceived as valuable and useful to foster the ethical behavior of managers. Moreover, we also aimed to investigate the role of ethics training in this context and to explore whether it can potentially increase managers’ trust in EP components as effective tools for the promotion of ethical behavior. The article advances the EP theory in (...) several ways. It offers novel insights into both business ethics and EP development in the specific cultural and social circumstances of a former socialist country in the Central and Eastern European region, Slovakia. It shows that codes of ethics and related reporting and control mechanisms are perceived as the most effective EP components to shape managerial ethical behavior. Furthermore, based on empirical evidence, and to some extent contrary to prior theory, the article unveils three EP functions, namely the ‘compliance with group norms,’ the ‘ethics education through collective discussion,’ and the ‘counselling and resolving of ethical issues’ at workplace. In addition, the article shows that ethics trainings can help to boost the trust of managers toward EP components and might be conceptualized as a precursor for an effectively functioning EP. (shrink)

Amidst growing calls for environmentally sustainable practices, this study delves into the nuanced relationship between CEO trustworthiness, managerial ability, and green innovation. Departing from surface-level examinations, we propose that managerial ability serves as the link between CEO trustworthiness and green innovation initiatives. Moreover, we contend that the influence of CEO trustworthiness on managerial ability is accentuated under specific contextual conditions including higher social capital, crisis situations, and state-owned firms. Drawing on a comprehensive analysis of Chinese firms over (...) 12 years, this study provides robust support for these propositions. Our findings not only offer insights into the essential traits that CEOs should possess to foster competitiveness but also shed light on their role in driving sustainable innovation. By illuminating the intricate dynamics between CEO trustworthiness, managerial ability, and green innovation, our research contributes significantly to the literature offering novel perspectives and enriching the understanding of sustainable development strategies in organizational contexts. (shrink)

Although the literature on corporate social responsibility has discussed the scope and meaning of CSR extensively, confusion still exists regarding how to define the concept. One controversial issue deals with the changing legal status of CSR. Based on a review of CSR definitions and meta-studies on CSR definitions, we find that the majority of definitions leans toward voluntary CSR. However, some recent regulatory amendments toward mandatory CSR have called into question the established idea of CSR as merely a managerial (...) tool of self-regulation. In this paper, we juxtapose the evolution of CSR in India against the scholarly literature discussing voluntary-versus-mandatory CSR to understand the recent shift toward a new conceptualization of CSR as a form of co-regulation that includes elements of both voluntary and mandatory regulation. The Indian Companies Act 2013 is a remarkable example in that it replaced an older version from 1956, taking a bold step toward the integration of voluntary and mandatory aspects in the application of CSR. We present practical implications of the Indian case for businesses and discuss implications for CSR theory development; we particularly consider the evolution of the business and society relationship from a voluntary soft law approach to CSR to an increasingly hard law approach and transitory hybrid forms in-between like soft–hard law and hard–soft law. (shrink)

Although ethical decision‐making theory has evolved over the years, within the field of management, research still revolves around James Rest’s (1986) four‐step framework, dominated by a positivist epistemology and a quantitative methodology. Given that currently there is a call for a theoretical, epistemological, and methodological renovation for the enlargement and enrichment of knowledge about how decisions are morally made in organizations, this paper has a double aim. First, by showing the models’ main flaws and limitations, it critically assesses the prominent (...) theoretical models of Rest, Trevino, and Jones. Then, for decision making in organizations, the paper aims to posit a fresh moral theory that addresses the phenomenon from a comprehensive epistemological perspective. To do so, it steps back from those prominent models in order to review John Dewey’s “theory of moral life.” At the core of the proposed comprehensive theoretical framework are Dewey’s concepts of a “moral standard” and “valuation.” Finally, the paper shows how the Dewey‐based framework can both overcome the flaws and limitations that are identified in those prominent models and can enrich empirical research, therefore contributing to developing as a whole the ethical decision‐making field. (shrink)

Despite the rising interest in environmental strategies, few studies have examined how managerial cognition of such strategies influences actual innovation capability development. Taking a managerial cognition perspective, this study investigates how managers’ perceptions of institutional pressures relate to their focus on proactive environmental strategy, which in turn affects firms’ realized innovation capability. The findings from a primary survey and three secondary datasets of publicly listed companies in China reveal that managers’ perceived business and social pressures are positively (...) associated with their focus on proactive environmental strategy, which consequently fosters innovation capability development. Moreover, state ownership and government administrative control weaken the impact of managerial focus on proactive environmental strategy on innovation capability. These findings have important implications for how managerial cognition supports environmental strategy and organizational capability building under the influence of institutional pressures and government intervention. (shrink)

This article discusses Alfred Chandler’s intellectual journey, in which he dedicated himself to understanding the role of management in developing and utilizing productive resources. During the first part of that journey, from the 1950s through the 1980s, Chandler viewed the role of management almost entirely in terms of the utilization of productive resources, as evidenced in Strategy and Structure and The Visible Hand. During the 1980s, as Chandler wrote Scale and Scope, his attention shifted from the utilization to the (...) class='Hi'>development of productive resources. He delved into organization and competition in the consumer electronics, computers, chemicals, and pharmaceuticals industries. An understanding of the dynamics of industrial capitalism requires, as Chandler ultimately showed, a theoretical analysis of the role of management in ensuring both the development and utilization of productive resources. This dual focus is important for business strategy, organizational structure, and industrial finance. (shrink)

The ArgumentIn this paper I challenge the “uncertainty reduction” argument — the dominant explanation for the rise of bureaucratic firms in the late nineteenth century. In contradiction to the agrument that “uncertainty” was a barrier to rational economic order and therefore needed to be reduced, I argue that “uncertainty” was manufactured, objectified, and reified in the course of developing industrial bureacracies. Using an alternative historical narrative I demonstrate that “uncertainty” was used to increase the “rationality” — i.e., control — of (...) hierarchies and to enhance the legitimacy of “rational planning.” In other words, strategies to “reduce uncertainty” increased the “certainty” — i.e., control and centrality — of rational planners but increased the “uncertainty” of their subordinates. I point to the fact that the “uncertainty reduction” argument became a central element in the professional idelogy of management and a focal point in management education programs. Furthermore, the canonical organization theory in the social sciences adopted the rhetoric, logic, and epistemlogy produced by the agents under its study and disseminated their ideology. Through their interrelationship in organization theory, “uncertainty” and “rationality” were enacted as two binary opposites that reproduce each other and construct one “coherent” scheme. (shrink)