Environmental degradation and extractive industry are inextricably linked, and the industry’s adverse impact on air, water, and ground resources has been exacerbated with increased demand for raw materials and their location in some of the more environmentally fragile areas of the world. Historically, companies have managed to control calls for regulation and improved, i.e., more expensive, mining technologies by (a) their importance in economic growth and job creation or (b) through adroit use of their economic power and bargaining leverage against (...) weak national governments, regional and international regulatory bodies. More recently, the industry has had to contend with another set of challenges that involved treatment of indigenous people and their traditional land rights, fair treatment of workers, human rights abuses, and bribery and corruption involving local officials and political leaders. These challenges currently fall outside the traditional areas of regulation and control. Nevertheless, they pose serious threat to the industry’s business practices because of their global scope, threat to company’s reputation, and long-term risks of political instability leading to increasing cost of capital. Industry has responded to these challenges by creating voluntary codes of conduct that would signify their intent to comply with higher standards of conduct, and assuage public opinion that no further action is called for. These codes, however, lack any monitoring mechanism and reporting integrity to assure the public that the industry members are indeed meeting their commitments. Consequently, pressure on the industry continues unabated and with ever increasing calls for mandatory regulation and oversight. This article examines the activities of one mining company, Freeport-McMoRan Copper & Gold, Inc., which has taken a radically different approach in responding to these challenges at its mining operations in West Papua, Indonesia. While cooperating with industry-based efforts of voluntary codes of conduct, Freeport also initiated a radically different response through its own voluntary code that would directly focus on issues of human rights, treatment of indigenous people on whose traditional land its mine was located; economic development and job creation and, improvements in health, education, and housing facilities, to name a few. Additionally, the company earmarked large sums of money and involved representatives of the indigenous people in their management and disbursement. The company took an even more radical action when it committed itself to independent external audits of the company’s compliance with the code, and that these findings and company’s responses would be made public without prior censorship by the company. We analyze the nature of corporate culture, vision and risk-taking propensities of its management that would impel the company to embark on a high risk strategy whose outcomes could not be predicted with any degree of certainty before the fact. The parent company also had to confront discontent among the management ranks at the mine site because of cultural differences and management styles of expatriates and local (Indonesian) managers. Finally, we discuss in some detail the extensive and intensive character of a two phase audit conducted by the outside monitors, their findings, and the process by which they were implemented and reported to general public. We also evaluate the strengths and challenges posed by such audits, their importance to the company’s future, and how such projects might be undertaken by other companies. (shrink)

In the wake of the current financial crises triggered by risky mortgage-backed securities, the question of ethics and risk-taking is once again at the front and center for both practitioners and academics. Although risk-taking is considered an integral part of strategic decision-making, sometimes firms could be propelled to take risks driven by reasons other than calculated strategic choices. The authors argue that a firm's risk-taking propensity is impacted by its ethical climate (egoistic or benevolent) (...) and its emphasis on output control to manage its marketing function. The firm's long-term orientation is argued to moderate the control–risk propensity relationship. The authors also extend research on risk and performance and argue that the association of risk-taking propensity and firm performance is contingent on the ownership (publicly traded versus privately held) structure of the firm. Based on survey data from a sample of manufacturing industries in the United States, the results show significant impact of ethical climate and marketing output control on a firm's risk-taking propensity; also risk-taking propensity shows a stronger association with firm performance in privately held firms than in publicly traded firms. (shrink)

Are risk-takers more likely to engage in unethical behaviors? We examined the relationship between risk-taking propensity and cheating in two experimental studies. In Study 1, we examined the relationship between subjects’ risk-taking propensity and their actual self-serving dishonesty using a gambling-like task. The results suggested that risk-taking propensity, measured using a behavioral approach, was positively correlated with actual self-serving dishonest behavior. In Study 2, we measured participants’ performances using a matrices test and found (...) that the positive correlation still held. We found that participants with high risk-taking propensity reported a lower perceived probability of being detected, which might drive their dishonest behavior. (shrink)

This article examines whether and how the participation of women in the firm’s board of directors and senior management enhances financial performance. We use the Fama and French (1992, 1993) valuation framework to take the level of risk into consideration, when comparing firm performances, whereas previous studies used either raw stock returns or accounting ratios. Our results indicate that firms operating in complex environments do generate positive and significant abnormal returns when they have a high proportion of women (...) officers. Although the participation of women as directors does not seem to make a difference in this regard, firms with a high proportion of women in both their management and governance systems generate enough value to keep up with normal stock-market returns. These findings tend to support the policies currently being discussed or implemented in some countries and organizations to foster the advancement of women in business. (shrink)

Extant research notes a tendency to propound the idea that female managers are secondary to men. Gender differences constitute an ethical issue and the discursive constructions of gender management are central to research in business ethics. Drawing on evidence gathered from a time–space intersection that has been widely neglected by research in this area, we address whether female business leaders develop gender-stereotypic management styles as well as their propensity to adopt masculine management patterns such as making risky (...) decisions and implementing formal management systems. Our findings suggest that gender-stereotypic management styles are chosen strategically and target-driven, which implies a selective use of masculine and feminine management styles. Furthermore, as part of the masculine approach, female business owners adopt risk-taking decisions and implement formal management systems. Our results provide support for the argument that gender is context dependent and, hence, the findings of this study may be useful for contemporary jurisdictions featuring male-dominated societies and a strong intervention by the State in the economy. (shrink)

Figner, Mackinlay, Wilkening, and Weber (2009) developed the Columbia Card Task (CCT) to measure risk-taking attitudes. This tool consists of two versions: in the COLD version the decision maker needs to state in advance how many cards (out of 32) they want to turn over (so called static risk taking), in the HOT version they have the possibility of turning over all 32 cards one-by-one until they decide to finish (dynamic risk taking). We argue (...) that the HOT version confounds an individual’s willingness to accept risk with their beliefs in trend continuation vs. trend reversal in a prognostic task. In two experimental studies we show that people believing in trend continuation (momentum subjects) turn over more cards than those believing in trend reversal (contrarians) in the HOT version of the task. However, this is not the case in the COLD version. Thus, we provide evidence that, when considered as a dynamic risk propensity measure, the number of turned over cards in the HOT version of the CCT is a contaminated measure and reflects two phenomena: (1) risk preference and (2) the decision-maker’s belief in trend continuation. We speculate that other dynamic risk taking measures can also be biased by a momentum strategy. (shrink)

A top management team (TMT) has been identified as one of the key factors driving changes in tax planning strategy. Based on upper echelons theory, this study investigates whether configurations of TMT characteristics influence enterprise tax planning strategy by using the fuzzy-set qualitative comparative analysis (fsQCA). Using a panel data of China public companies, we found three configurations conducive to aggressive tax planning and two combinations conducive to low tax planning. Specifically, the level of education, tenure, age, career experience, (...) and size of the top management team affect a firm’s propensity to engage in tax planning. Further, the results show that top management teams are not alike and highlight the differences in how these characteristics combine to impact tax planning. (shrink)

Critics point to four issues as presenting barriers to the use of virtue in the context of business. They focus on the relationship between management and practice, the potential for virtuous behaviour in a competitive environment, the ability to develop a reflexive critique of management that can be acted on, and the differentiation between work and wider social roles and people's propensity to take responsibility for them. In this paper we propose a solution to criticisms levelled at the (...) use of virtue within Business Ethics. We examine the critiques of management in the context of Virtue Ethics and the application of these to business. In arguing for a role for business in being virtuous and promoting virtue we accept that the concept of management that is based on the type of liberalism founded on personal preference and benefit is deeply problematic and that management that is driven solely by profit is not compatible with the development of practice based virtue. However, we argue that to exclude those activities in which management is involved as a result would be wrong and dangerous. Instead we see the great advantage of a Virtue Ethic is that it conjures up an alternative vision to the dominant practice, and such an alternative vision is urgently needed in business today. (shrink)

This volume explores various aspects of risk taking. It offers an analysis of financial, entrepreneurial and social risks, as well as a discussion of the ethical implications of empirical findings. The main issues examined in the book are the financial crisis and its implications for business ethics. The book discusses unethical behaviour as a reputational risk (e.g., in the case of Goldman Sachs) and the question is raised as to what extent the financial crisis has changed the (...) banks’ entrepreneurial strategy. The book presents an analysis of the reasons leading to the crisis and identifies them as ethical dilemma structures. In addition, it looks at general questions regarding ethical behaviour and risk taking, such as: To what extent does the social embeddedness or abstraction play a role in guaranteeing ethical behaviour? What conclusions can be drawn from institutional or evolutionary perspectives on risk management? Finally, the book discusses further issues that become factors of risk within and between societies, such as work insecurity, corruption or the problem of facilitation payments as a risk in international transactions. (shrink)

Ambidextrous firms are those that can simultaneously manage exploitative and explorative innovation, which is why ambidexterity is key for firms that desire to pursue strategic entrepreneurship. Researchers have explored many of the reasons why some firms are more ambidextrous than others. However, little attention has been devoted to understanding how attributes of top decision makers can influence their firms' ambidexterity. By drawing on upper echelons theory and goal orientations research, we explain how firms' ambidexterity can be affected by top decision (...) makers' motivations in achievement situations. Testing our hypotheses on a sample of 274 top decision makers of firms in the United States, we find that top decision makers' learning goal orientation – their desire to take risks and maximize learning–has an inverted U-shaped relationship with ambidexterity while top decision makers' performance prove goal orientation – their desire to demonstrate competence with existing skills – has a U-shaped relationship with ambidexterity. These effects are weaker for top decision makers who have greater role experience. (shrink)

Holistic thinking involves four subconstructs: causality, contradiction, attention to the whole, and change. This holistic perspective varies across Eastern–Western cultures and genders. We theorize that holistic thinking reduces three domain-specific risk-taking behavioral intentions (ethical, financial, and health/safety) directly and indirectly through enhanced risk-taking attitudes. Our formative theoretical model treats the four subconstructs of holistic thinking as yoked antecedents and frames it in a proximal context of causes and consequences. We simultaneously explore the direct and indirect paths (...) and test our model across cultures, genders, and the combination of the two. For the entire sample (N = 531), holistic thinking negatively relates to risk intentions via enhanced risk perceptions. Across cultures, the indirect paths prevail among Chinese people (n = 284), and both direct and indirect paths triumph for Americans (n = 247). Across genders, the indirect paths exist for females, whereas the negative direct path (risk-raking attitudes → behavioral intentions) succeeds for males. Across cultures and genders, holistic thinking negatively relates to American males’ ethical risks the most but Chinese males’ financial risks the least. Risk-taking perceptions are negatively related to Chinese males’ ethical risks the most, but Chinese people’s (males/females) financial risks the least. Causality and change are vital for all contexts, attention to the whole for all males and Chinese males, and contradiction for Americans and all females. Holistic thinking has limits and is less robust than risk-taking perceptions in reducing risky behavioral intentions. Our practical implications help people make ethical, healthy, and wealthy decisions. (shrink)

The experience of good fortune and misfortune often reveals itself in the context of risk. We posed the question of whether there are differences between the lucky and the unlucky in perceiving and undertaking risky behaviours, and if these differences constitute predictors of good or ill fortune. A range of instruments were applied in the research to examine groups of lucky and unlucky individuals in respect of their propensity for taking risk, attitudes towards the risk occurring (...) in various domains, the functions of risky behaviours and manner of taking risky decisions depending on the adopted perspective. The research results indicate a number of differences between the differentiated groups. It occurred that the lucky have a greater tendency than the unlucky to take risks, especially in the social and financial domains; they prefer instrumental risk; and they are more flexible in applying perspectives for potential outcomes when making risky decisions. We conclude that the results received can be interpreted in the context of predictors of good and bad luck. (shrink)

We use variation in corruption convictions across judicial districts in the US to examine the relationship between political corruption and risk-taking of public firms. Firms headquartered in regions with high levels of political corruption have lower total risk and lower idiosyncratic risk on average. Further analysis shows that corruption tends to encourage firms to pursue risk-decreasing investments, lower the riskiness of their operations, and decrease asset liquidity. While managerial ownership is intended to align the interests (...) of managers and shareholders, the presence of corruption appears to encourage undiversified managers to decrease risk-taking. Our evidence is consistent with agency theory and the asset-shielding argument that political corruption discourages managers from taking risks that expose firms to expropriation by politicians, resulting in suboptimal corporate policies. (shrink)

Risky behaviour may be associated with visceral experiences, such as increased heart rate. Previous studies examining the relationship between perception of such signals (interoception) and risk-taking typically used behavioural tasks with potential for monetary reward. This approach may be less informative for understanding general risk propensity. In addition, such research does not usually consider the varied ways individuals engage with interoceptive signals. However, examining these different forms of engagement may help us understand how subjective experience of interoception (...) influences risk-taking. As such, we performed two surveys (n = 471, primarily young adults) to examine the relationship between self-reported engagement with interoceptive signals (measured using the Multidimensional Assessment of Interoceptive Awareness) and a generalised measure of risk propensity (the General Risk Propensity Scale). Results indicated that different ways of interpreting or engaging with interoceptive signals were differentially associated with risk propensity. In particular, they provide preliminary evidence that those with the ability to ignore or not worry about visceral signals when they are uncomfortable display greater risk propensity (and these effects may possibly be gender-specific). (shrink)

Open theism denies that God has definite exhaustive foreknowledge, and affirms that God takes certain risks when creating the universe. Critics of open theism often complain that the risks are too high. Perhaps there is something morally wrong with God taking a risk in creating a universe with an open future. Open theists have tried to respond by clarifying how much risk is involved in God creating an open universe, though we argue that it remains unclear how (...) much risk is actually involved. We claim that open theists need to start developing theories about how God manages risks in order to bring about His purposes for the universe. In this article, we will take a philosophical and biological perspective on risk management that adds plausibility to open theism. We will consider how God can use different risk‐management, surveillance, and redundancy systems in the natural world in order to accomplish His goals. (shrink)

Teams are pervasive in the history of mankind. Particularly in our fast-growing modern society, teams composed of members from different cultures and disciplines are quite often used at workplace. Though widely used, the effectiveness of teams is inconsistent. Meta-analyses show a double-edged effect of diversity on creativity and innovation, suggesting that diversity needs to be tactfully managed if we want to leverage the creative potential of teams. The current paper strives to meet this challenge and makes suggestions on how to (...) foster creativity in intercultural and interdisciplinary teams. It discusses the concepts of teams vs. groups and creativity vs. innovation. Drawing upon the sociocultural theories of creativity and innovation, particularly literature reviews and meta-analyses, this paper attempts to identify motivational, cognitive and environmental enablers of team creativity. These enablers can be summarized as a VICTORY model, which focuses on team (T) and synthesizes the sociocultural (Vision), motivational (Openness, Risk-taking, Yes-mindset) and cognitive (Ideation, Combination) antecedents of team creativity. (shrink)

The sex ratio at birth in China exhibits a major occurrence of “missing women” due to the high son preference in Chinese culture. Clearly, the large gender discrepancy in China can be explained not only by ethical, moral, or social fairness theories but also by the economic benefits of women's particular abilities, experiences, and talents. This article examines the influence of female chief financial officers on information disclosure violations in order to highlight women's positive contributions. Our data imply that having (...) a female CFO can dramatically lower the number of companies that fail to disclose information. The results are strong after controlling endogeneity with propensity score matching, Heckman's two-stage self-selection model, and CFO change, as well as controlling the gender of the chairman and chief executive officer, utilizing different study periods, and using exogenous shock. We further examined the moderate effects of CFO power and external monitoring, and we found that CFO power magnifies the negative effect of female CFO on violations; the more the power, the more the negative effect of female CFO on violations. We also found that when the firm has effective external monitoring, there are fewer future infractions of information disclosure. (shrink)

The functional separation of risk assessment and risk management has long been at the heart of risk analysis structures. Equally long it has been criticized for creating technocratic risk management due to valuations being done in the risk assessment to which the stakeholders do not have access. The criticism has mostly been of an ethical nature. Arguably, in separating risk assessment and risk management, one hopes to fulfil two requirements: Social (...) requirement: we want risk management to meet the goals and needs of society. Scientific requirement: we do not want political views to influence the assessment of facts. We ask in this paper whether it is, in principle, possible to separate risk assessment from risk management. The crucial distinction between risk assessment and risk management we take to be between what kinds of values are involved in them and that separation is meant to shield risk assessment from risk management values and vice versa. Risk assessment is judged to be a scientific activity that should only involve scientific values. We go through a paradigmatic example of good science to see what those scientific values are and whether they are the only ones influencing science. We also present an example of a risk assessment in order to compare it to science. We conclude that the values involved in both science and risk assessment are of the same kind and that they both involve extra-scientific values. The paper ends with a short discussion of whether the above requirements can be met even though risk assessment and risk management are interdependent. (shrink)

This volume explores the concept of the honest merchant, taking a broad perspective and covering a wide range of aspects. It looks at the different types of “honest merchant” conceptions originating from different cultures and literary traditions. The book covers Japanese, Islamic, Scandinavian, Russian, German, Spanish, as well as other aspects, and studies different disciplinary backgrounds of the honest merchant, such as philosophical, economic, neuroethical, sociological and literary ones. The concept of the honest merchant has a long tradition in (...) business ethics. In the Hanseatic League and in medieval Italy, the ideal of the honest businessman was taught since the late Middle Ages. It originated during a time when travelling merchants were often regarded with a sceptical eye. The honest merchants of their time however held clear principles in their business and took responsibility for their community. In later times, the religious notions of the concept lost their pivotal place to reason and morality. This book goes beyond the tradition of discussing business ethics in association with concepts from the Hanseatic League and medieval Italy, and puts the central concept of business ethics in a much greater perspective. (shrink)

Industry 5.0 and Healthcare 5.0 converge towards a human centered society, having technological advancement as a lever. In Society 5.0, decentralized autonomous cities and a convergence of physical and cyberspace are the foundations of the new chapter of society’s development. The idea of creating digital replicas and legitimate representatives of human beings in cyberspace has become a pillar of digitalization. Society 5.0 introduces Human Digital Twins as a central element of Cyber Physical Systems that include human factors or are designed (...) to interact with humans in a personalized fashion. Overall, the HDT and neighboring concepts are applied to depict how humans can be represented in a cyberspace. However, there are clear challenges in determining which human characteristics should take precedence, how much autonomy should be granted to HDTs to optimize their functionality and how to conceptualize the digital environment in which HDTs interact with various entities, including other digital agents and stakeholders with agency and decisional power. To harness similarities and differences of current approaches, we propose a classification of HDTs based on meta-characteristics and ethical implications. We discuss ethical implication by focusing on emerging risks and paradigm shifts and anchor the previous discussion in the vision for Society 5.0, questioning whether societal development relying on disruptive technologies, instead of leading to more human-centered societies might be driving humanized societies away from humanity. (shrink)

The widespread and elaborate use of new financial instruments among corporate entities and financial institutions requires justification. It faces the charge of increasing both the level and complexity of risk in the financial system under the pretext of reducing it. It is a prodigious user of management resources and IT. It obscures the integrity of the nature of the non-financial user.It is not mere academic argument to question the ethics of certain instruments. Both in the US and the (...) UK certain forms of financial instrument are deemed too risky to be used by all and sundry. Other forms of instrument may be banned outright, even though many financial professionals will be perfectly capable of measuring the risk involved. The force of this attack is recognized in the financial industry. One defence frequently put forward is similar to that of the National Rifle Association in the US about guns. It is the users, not the product, that are the problem. “One misconception is that derivatives are risky instruments that are used for speculation. It is more accurate to say that derivatives are instruments that can be used to alter risk profiles”. The mere fact of an instrument existing is no reason to use it. The biggest advocates of exotic options are bankers. Practising Treasurers spend much time seeking to distinguish between the fascinating idea which the bank’s rocket scientist wants to try, and the derivative that will genuinely benefit the company. The fact that many of these instruments are harmful or spurious does not mean they should be banned, but neither does the absence of a ban make them ethical.The ethical question to ask for the non-financial corporation has to do with the proper balance of courage and prudence. Will this instrument enable the company to carry out its proper task with more focus and self-awareness, or is it an attempt to neutralize the proper risks that we are paid to take? For financial corporations the inevitable presence of derivatives poses two issues. First, are they intrinsically valuable or simply so complicated that no client could use them and monitor the new exposures involved? Secondly, will the active management of our positions created by this activity result in a change in the nature of our business, and if so, has this been clearly communicated to the world around?On reading this again I am once more struck by a remark made to me by a clergyman long before I was ordained. “What is an ethical Treasurer?” One of the major challenges in the field of financial ethics is the development of an adequate, and clearly communicated, measure of the intrinsic ethics of finance.This paper is not arguing that derivatives are wrong, but that they are powerful, and power needs monitoring and controlling. The events of October 1987 are often referred to as the meltdown of the markets. My clear memory is of the whole executive board of directors standing in my office gazing in awe at a Topic Screen as waves of red chased across the screen. The use of nuclear metaphors was apt. A system that seemed safe had assumed a life of its own. There is little doubt that derivatives fuelled the reaction. (shrink)

Willingness to take risk is one of the most important aspects of personal financial decisions, especially those regarding investments. Recent studies show that one’s perception of time, specifically the individual level of Present Hedonistic and Future Time Perspectives (TPs), influence risky financial choices. This was demonstrated for both, Time Perspective treated as an individual trait and for experimentally induced Time Perspectives. However, on occasion, people might find themselves under the joint influence of both, chronic and situational Time Perspectives and (...) little is known about interactions between them. The paper focuses on the interplay between chronic and induced levels of Future and Present Hedonistic TPs in explaining people’s propensity to take investment risks. An experimental study using a Polish national random-quota sample was conducted. The results showed that situationally induced Future TP lowered the preferred level of portfolio riskiness while situationally induced Present Hedonistic TPs resulted in exactly the opposite effect, and that the higher level of chronic Present Hedonistic TP was linked to higher investment risk preferences. The role of the chronic Present Hedonistic TP was moderated by the situationally induced Future (approaching significance) and Present Hedonistic TPs. The induction of these TPs resulted in reduction of the propensity to take investment risks. The study adds to the literature on psychological factors influencing the propensity to take financial risk. The results are also important for researchers who experimentally manipulate variables that might be also considered as chronic traits. They indicate that whether the manipulation is congruent with one’s natural tendencies may have a differential impact on subsequent measures. (shrink)

Risk taking is a component of the decision-making process in situations that involve uncertainty and in which the probability of each outcome – rewards and/or negative consequences – is already known. The influence of cognitive and emotional processes in decision making may affect how risky situations are addressed. First, inaccurate assessments of situations may constitute a perceptual bias in decision making, which might influence RT. Second, there seems to be consensus that a proneness bias exists, known as (...) class='Hi'>risk proneness, which can be defined as the propensity to be attracted to potentially risky activities. In the present study, we take the approach that risk perception and risk proneness affect RT behaviours. The study hypothesises that locus of control, emotion regulation, and executive control act as perceptual biases in RT, and that personality, sensation seeking, and impulsivity traits act as proneness biases in RT. The results suggest that locus of control, emotion regulation and executive control influence certain domains of RT, while personality influences in all domains except the recreational, and sensation seeking and impulsivity are involved in all domains of RT. The results of the study constitute a foundation upon which to build in this research area and can contribute to the increased understanding of human behaviour in risky situations. (shrink)

This paper explores the potential for systematic scrutiny of the language of top management to reveal signals of possible deceptive conduct. The language used in letters signed by Ramalinga Raju, Chair of the Indian multi-national company Satyam, are analysed using a multi-method quantitative approach. We explore the language in Raju’s annual report letters from 2002–2003 to 2007–2008; and in his letter of January 7, 2009 in which he confessed to deceptive conduct. We analyse the frequency of personal pronouns, the (...) tone of positivity or negativity, the frequency of words of extreme emotion and aspects of the characteristics of language use indicated by the DICTION 5.0 text analysis master variable, CERTAINTY. The text of Raju’s letters appears to have been influenced by his self-confessed deceptive behaviour. Raju’s word choice changed noticeably in his five annual report letters prior to the collapse of Satyam as the scale and impact of his financial misstatements increased. The methods presented should be considered for adoption by auditors and regulators—as a way of assessing whether signals emerging from language use warrant closer (including audit) scrutiny of a firm’s financial reporting and governance. They should also be considered for use by monitors of entity risk, such as credit rating agencies and financial analysts. (shrink)

An issue that affects the academic engagement, performance, health and wellbeing of university undergraduates is bullying. Substantial literature has examined the predictors of bullying perpetration, but there is little research on the contributions of internet-related factors and the propensity to take risks in bullying. We examined the roles of IGD, risk-taking behavior, and internet addiction in social bullying. Four instruments were used for data collection, namely: Young Adult Social Behavior Scale, the Internet Gaming Disorder Scale, Domain-Specific Risk- (...) class='Hi'>Taking Scale, and the Internet Addiction Test Scale. Participants were 552 undergraduate students from the University of Nigeria, Nsukka consisting of 143 males and 409 females. Results of regression analysis showed that gaming disorder and risk-taking behavior had positive associations with social bullying. Thus, the more people grow addicted to internet gaming and takes more risks, the more they are likely to become bullies. Internet addiction had no significant association with social bullying. Efforts should be made to minimize the rate of dysfunctional internet use, GD and risk-taking behaviors of undergraduates in order to curtail bullying perpetration. (shrink)

We examine the implications of the US government’s too-big-to-fail policy as it has been applied to banks. Using alternative measures of risk, we compare the risk-taking behavior of 11 TBTF banks, identified by the Comptroller of the Currency in 1984, to a number of non-TBTF banks. We provide both theory and new empirical evidence to support our argument that the TBTF policy leads management to significantly increase risk-taking, with no corresponding increase in performance. While (...) prior studies have considered the effects of the TBTF policy on limited, but risk-related aspects of bank behavior, such as the cost of funds, our study provides direct evidence about the risk-taking behavior associated with the TBTF policy. Our study has important implications for the current political debate regarding the too-big-to-fail policy. (shrink)

101 real couples participated in a controlled experimental risk-taking task involving variations in household and individual income risks, while controlling for ex-ante income inequality. Our design disentangles the effects of household risk, intra-household risk inequality, and ex-post payoff inequality. We find that most couples (about 79%) pooled their risk at the household level when risks were borne symmetrically, but a significant proportion of couples (about 36%) failed to do so when individual risks were borne asymmetrically. (...) Additionally, within the scope of the control variables we have utilized, we find that intra-household risk inequality has a larger impact on non-married couples compared to married ones. These results remain robust when the analysis is limited to couples in which both spouses are risk-averse. Lastly, we find that preferences for household efficiency are significantly correlated across both certain and risky situations. However, couples consisting of two income-maximizing spouses do not show greater aversion to risk inequality compared to couples with other compositions. (shrink)

Both the Sarbanes–Oxley Act of 2002 and the Dodd-Frank Act of 2010 include clawback provisions that require executives to pay back incentive compensation earned on financial statements that are restated in a subsequent period. Such provisions intend to reduce unethical reporting behavior by executives who otherwise might be more inclined to misstate financial statements to boost incentive-based compensation. However, such provisions could promote rather than deter unethical behavior. In particular, Pyzoha :2515–2536, 2015) finds that, under certain conditions, executives are less (...) willing to restate financial statements in the presence of a clawback policy. Similarly, auditors might also act unethically by being less likely to propose restatements in the presence of clawbacks to avoid upsetting management. To examine this possibility, this study reports the results of three experiments that examine the effect of clawback provisions on auditor judgment. Contrary to expectations, our three experiments, along with supplemental qualitative evidence consistently indicate that clawbacks do not affect auditors’ propensity to propose restatements. These results suggest that a decrease in the number of restatements in a clawback environment will not be due to auditors acting unethically to appease management. The effects of clawbacks on auditors’ risk assessments, however, are less conclusive. As such, we offer potential post hoc explanations to guide future research. (shrink)

Cinematic fictions often depict characters who face a remarkable variety of natural and otherworldly dangers, such as attacks by aliens, dinosaurs, zombies, killer puppets, and swarms of insects. The risk of physical injury and death is the staple of the horror, crime, war, and action genres, while in art films, the focus tends to be on psychological and moral perils. Risk is such a pervasive subject in fi lm that one is tempted to conjecture that this is the (...) main attraction of that seemingly low-risk activity, fi lm spectatorship. In what follows I investigate several issues related to this conjecture, beginning with the problem of identifying and classifying risk, both in the actual world and as it is represented in cinematic works. In my first section I introduce a distinction between taking and running risks and discuss epistemic problems related to the classification of events as risks or rewards. Next I discuss some of the challenges—and artistic risks—that filmmakers confront as they attempt to represent risks in works of fiction. With regard to artistic tradeoff s related to the representation of risk, in the third section I provide a more detailed discussion of two cases: Pleasantville and La visione del sabba. Finally I ask how we might explain why risk is such a pervasive subject in the cinema. What is at stake in the spectator’s seemingly low-risk engagement in spectacles of extreme risk? (shrink)

The interaction between environment and individual personality determines career. Over the past decades, the role of personality traits in explaining entrepreneurship cannot get much attention of researchers. To fill this gap, this study aims to investigate the effect of personality traits on the entrepreneurial intentions along with the mediating role of financial risk taking. Sample size consists of 500 students of business and management of different universities of Pakistan, out of which 466 useable questionnaires were collected and (...) analyzed. The results of the study are consistent with conventional wisdom as explored by past studies. In line with past studies and proposed hypothesis, we found that both extraversion and openness to experience have a positive association with FRT, whereas neuroticism, conscientiousness, and agreeableness have negative association with FRT. The results also revealed that there is positive association between FRT and EI; however, FRT did not mediate the relationship between agreeableness and EI. (shrink)

We hypothesize that CSR serves as a control mechanism to reduce deviations from optimal risk taking, and therefore, CSR curbs excessive risk taking and reduces excessive risk avoidance. Based on the stakeholder theory, firms with CSR focus must balance the interests of multiple stakeholders, and therefore, managers must allocate resources to satisfy both investing and non-investing stakeholders’ interests. Using five measures of corporate risk taking and a sample of 1718 US firms during 1998 (...) to 2011, we find that stronger CSR performance is associated with smaller deviations from optimal risk taking levels. We examine the mechanism through which CSR has an impact on firm value and find a positive indirect impact of CSR on firm value through the impact of CSR on risk taking. CSR performance is positively associated with firm value because CSR reduces excessive risk taking and risk avoidance. (shrink)

In the biblical Book of Ruth, Boaz instructs his workers not to molest Ruth. We draw insights on the problem of workplace sexual harassment in the family-firm setting from the Book of Ruth. We then integrate these insights with several discrete findings in the literatures on workplace sexual harassment and family firms: First, family firms are relatively strong when it comes to a culture of fairness and respect. Second, family firms sometimes lack formal codes of ethics, which could hamper integrity. (...) Third, religious exemplars can reinforce the positive culture of family firms and even substitute for a formal code of ethics. Fourth, religious exemplars can also attenuate excessive risk-taking behavior in family firms. (shrink)

The purpose of this article is to provide a quick survey of William James’s views on the plurality of visions that humans have regarding reality, as a background for more extensive discussions of his views on the plurality of values that orient human thoughts, feelings, and behaviors, as well as his views on the enactment of those values through active resistance to the ways things are and the risk-taking involved in striving to improve the human condition. Consonant with (...) pluralism itself, I intend this discussion to open up rather than close off further considerations of James’s views on ethics. (shrink)

Performance-contingent compensation by means of stock options may induce risk-taking in agents that is excessive from the point of view of the company or the shareholders. We test whether increasing shareholder control may be an effective checking mechanism to rein in such excessive risk-taking. We thus tell one group of experimental CEOs that they may have to justify their decision-making processes in front of their shareholders. This indeed reduces risk-taking and increases the performance of (...) the companies they manage. Implications are discussed. (shrink)

Relations between individual traits and frequency of causing accidents have been analyzed. On the basis of results from 465 women and 277 men it has been found that the causing of accidents correlates with risk propensity and with risk taking influenced by self-destructive motivation. Persons often causing accidents are also absent minded to a greater degree, and experience depressive moods more frequently than persons rarely involved in accidents.

Risk-taking behaviors in adolescents have traditionally been analyzed from a psychopathological approach, with an excessive emphasis on their potential costs. From evolutionary theory we propose that risk-taking behaviors can be means through which adolescents obtain potential benefits for survival and reproduction. The present study analyses sex differences in three contexts of risk in the evolutionary specific domains and the predictive value of these domains over risk-taking behaviors, separately in female and male adolescents. 749 (...) adolescents valued their risk perception, expected benefits and risk propensity through the Evolutionary Domain-Specific Risk Scale, as well as their engagement in risk-taking behaviors through the Risky Behavior Questionnaire. Male adolescents showed lower risk perception in two evolutionary domains, expected higher benefits in two other domains and showed higher risk propensity in six domains. Female adolescents showed lower risk perception in two domains. Additionally, risk perception, expected benefits and risk propensity in the evolutionary domains predicted the engagement in risk-taking behaviors in male adolescents, whereas in female adolescents only expected benefits and risk propensity showed a predictive effect over risk-taking behaviors. These results suggest the potential role of evolutionary mechanisms on risk-taking behaviors in adolescents. Results have practical implications for interventions programs aimed at reducing risk-taking behaviors. In addition to considering sex differences, intervention programs should consider alternative behaviors through which adolescents can reach their evolutionary goals, and handle the risks related to those behaviors that cannot be replaced but have potential benefits for adolescents. (shrink)

We report the results of an experiment on how individual risk taking clusters together when subjects are informed of peers’ previous risk taking decisions. Subjects are asked how much of their endowment they wish to allocate in a lottery in which there is a 50% chance the amount they invest will be tripled and a 50% chance their investment will be lost. We use a 2 × 2 factorial design varying: (i) whether the subjects initially observed (...) high or low investment social anchors, (ii) whether information about the investment decisions of other subjects in their social group is provided. We find strong evidence that individuals' risk taking decisions are malleable to that of their peers, which in turn leads to social clustering of risk taking. Social anchors shape initial risk taking, with mean investment then converging to a high level across treatments. (shrink)

As technology advances, and the life and death consequences of its failure become more and more removed from proximate human action, technology management requires greater degrees of ethical awareness and the management of safety becomes a matter of corporate ethical imperative. The corporate ethical imperative includes ethical mandates to take no action which places the lives of others at risk and to inform persons of dangers to their physical safety of which they may otherwise be unaware when (...) one possesses information relevant to the safety of others such that, with the possession of that knowledge, the others can make decisions relevant to protecting their safety, or if others fail to take such action, to take upon oneself the responsibility of taking such action. The ethical duty of primum non nocere implies the corresponding right of the life risking participant to be informed of the kind and degree of risk to which they are to be exposed and the freedom to refuse to take such risk without prejudice. The corporate ethical imperative is to hold human life precious and to uphold that imperative through selectively non-acting, properly informing and acting. The case of the Challenger disaster is utilised as an illustration of decision making which violated these ethical precepts. (shrink)

The debate over the benefits of female representation in top management is ongoing, with some arguing it enhances decision-making quality by bringing diverse perspectives, while others seeing it as symbolic or even detrimental. To make progress on the debate, this study takes an institutional perspective to develop a theoretical account examining the gender norms that constraining the effect of female representation in top management teams (TMTs) on corporate financial fraud. We offer two main insights: (a) female TMT representation (...) is associated with lower incidence of corporate fraud, and (b) the relationship becomes weaker for firms domiciled in regions with gender inegalitarian norms or gender stereotypical norms that are more gender stratified. Results based on archival data about Chinese public firms, and simultaneous estimation of fraud commitment and detection probabilities, support our predictions. Several alternative econometric specifications, including (but not limited to), instrumental variable analysis and matched sample analysis, enhance confidence in the robustness of our findings. The findings of this study make important contributions to the literatures of managerial diversity, corporate fraud, and institutional norms. (shrink)

Biobanks act as the custodians for the access to and responsible use of human biological samples and related data that have been generously donated by individuals to serve the public interest and scientific advances in the health research realm. Risk assessment has become a daily practice for biobanks and has been discussed from different perspectives. This paper aims to provide a literature review on risk assessment in order to put together a comprehensive typology of diverse risks biobanks could (...) potentially face. Methodologically set as a typology, the conceptual approach used in this paper is based on the interdisciplinary analysis of scientific literature, the relevant ethical and legal instruments and practices in biobanking to identify how risks are assessed, considered and mitigated. Through an interdisciplinary mapping exercise, we have produced a typology of potential risks in biobanking, taking into consideration the perspectives of different stakeholders, such as institutional actors and publics, including participants and representative organizations. With this approach, we have identified the following risk types: economic, infrastructural, institutional, research community risks and participant’s risks. The paper concludes by highlighting the necessity of an adaptive risk governance as an integral part of good governance in biobanking. In this regard, it contributes to sustainability in biobanking by assisting in the design of relevant risk management practices, where they are not already in place or require an update. The typology is intended to be useful from the early stages of establishing such a complex and multileveled biomedical infrastructure as well as to provide a catalogue of risks for improving the risk management practices already in place. (shrink)

This article reconsiders the presence and value of danger in outdoor and adventurous activities and sports in safety-conscious societies, especially in relation to the education of children and youth. Based on an original analysis of the relation between the concepts of ‘risk’ and ‘danger’, we offer an account of the relation between challenge, adventure, risk and danger, and emphasise the importance of teaching risk recognition, risk assessment, risk management and risk avoidance to children (...) and youth, without the necessity of exposing them to jeopardy in dangerous situations. Our conclusion is that ‘Safe Danger’ describes what educators should seek, namely: the educational benefits of the challenges set by risk-taking and the demands of risk-facing, including those in adventurous situations, which are obtainable in the absence of significant danger, and which contribute to risk education. The educational value of adventurous and outdoor pursuits lies elsewhere than in the opportunities that they present for danger-facing, for example in their promotion of self-reliance, confidence, ability to team-work, and especially in their promotion of risk education, as an integral aspect of everyday life planning, as preparation for the day’s adventurous challenges, and as an instrument of task completion. (shrink)

This paper examines the ethical issues faced by health workers managing a fictional case of a female sex worker who is hepatitis B positive with a high level of virus but is asymptomatic. According to guidelines she does not require treatment herself, but is potentially highly infectious to others. Recent legal cases in the UK show it can be criminal to pass on HIV or hepatitis B infection sexually if the risk is known and the partner has not been (...) informed. However, there is no statute or case law showing that health workers are required to intervene to prevent such a potential ‘crime’, particularly when the partners are unknown, as in this case. The health workers could respond in various ways. They could do nothing, thus making further infection probable. They could advise the sex worker to use condoms and to inform her clients. They could treat the sex worker to reduce her level of infectivity, although there is no benefit to her. They could disclose the sex worker's status, although breaking confidentiality is a serious matter ethically and may be of no benefit to the unknown client group. Regulating prostitution might help; but sex workers with infection may work off licence. This paper discusses the clinical, moral and ethical issues associated with such a scenario and concludes that the most beneficial course is to target clients, through health education, to recognise the potential risks of infection from a sex worker and to take suitable precautions including immunisation against hepatitis B. (shrink)

This study examines the role of corporate philanthropy in the management of reputation risk and shareholder value of the top 100 ASX listed Australian firms for the 3 years 2011–2013. The results of this study demonstrate the business case for corporate philanthropy and hence encourage corporate philanthropy by showing increasing firms’ investment in corporate giving as a percentage of profit before tax, increases the likelihood of an increase in shareholder value. However, the proviso is that firms must also (...) manage their reputation risk at the same time. There is a negative association between corporate giving and shareholder value which is mitigated by firms’ management of reputation. The economic significance of this result is that for every cent in the dollar the firm spends on corporate giving, Tobin’s Q will decrease by 0.413 %. In contrast, if the firm increase their reputation by 1 point then Tobin’s Q will increase by 0.267 %. Consequently, the interaction of corporate giving and reputation risk management is positively associated with shareholder value. These results are robust while controlling for potential endogeneity and reverse causality. This paper assists both academics and practitioners by demonstrating that the benefits of corporate philanthropy extend beyond a gesture to improve reputation or an attempt to increase financial performance, to a direct collaboration between all the factors where the benefits far outweigh the costs. (shrink)

The Enron debacle, the demise of Arthur Andersen, questionable practices at Tyco, Qwest, WorldCom, and a seemingly endless list of others have pushed public regard for business and business leaders to new lows. The need for smart leaders with vision and integrity has never been greater. Things need to change-- and it will not be easy. We can take a first step toward producing better business leaders by changing some of our own ideas about what it means to "win." (...) Noel M. Tichy and Andrew R. McGill have brought together a stellar group of contributors from a variety of perspectives-- including General Electric CEO Jeffrey Immelt, former Secretary of State James A. Baker III, and renowned management gurus Robert Quinn and C. K. Prahalad, among others-- to offer insights that will help build better leaders, communities, and organizations. They show how to present a "Teachable Point of View" about business ethics that will help all leaders within an organization: Internalize core values Build a values-based culture across the organization Become engaged to teach the same values lessons to their staff Take action and raise the ethical bar Successful business leaders must be able to articulate their own unique Teachable Point of View on business ethics and drive it through their organization to ensure that everyone knows the ethical line and is neither shy nor silent if others risk crossing it. (shrink)

Corporate social responsibility (CSR) is a comprehensive concept that aims at the promotion of responsible business practices closely linked to the strategy of enterprises. Although there is no single accepted definition of CSR, it remains an inspiring, challenging and strategic development that is becoming an increasingly important priority for companies of all sizes and types, particularly in Europe. Promotion of well-being at work is an essential component of CSR; however, the link between CSR, working conditions and work organisation is still (...) found to be unfamiliar to stakeholders. As CSR is strategic and is regarded by many companies and corporate leaders as an important development, it offers opportunities for psychosocial risk management, an area that is currently among the top priorities in working environment and well-being at work debates. However, the link between CSR and psychosocial risk management has not been addressed clearly before. This paper aims to explore the potential role of CSR in promoting well-being at work through the development of a framework for the management of psychosocial risks. As part of the research, key stakeholders [including the World Health Organization (WHO), the International Labour Organization (ILO), the European Agency for Safety and Health at Work (EU-OSHA), the European Commission (EC), employers’ associations, trade unions and other policy experts] across Europe participated in a survey, interviews and focus groups to assess and clarify the link between CSR and psychosocial risk management. On the basis of the findings, a CSR-inspired approach to the management of psychosocial issues at work is proposed. Such an approach can be a useful tool in contexts where, up until now, expertise and tradition in dealing with psychosocial issues have been lacking. (shrink)

A ‘bonus culture’ among financial traders has been blamed for the excessive risk-taking in the run-up to the latest financial crisis. I show that when individuals are more social gain seeking than social loss averse, social comparison predicts more risk-taking as well as a preference for negatively correlated gambles. Testing these two joint propositions in a laboratory experiment, I find that preference for positively or negatively correlated outcomes is highly correlated with risk-taking in a (...) social risky investment task. While only a third of subjects prefer negatively correlated outcomes in a peer comparison setting, in line with relatively stronger social gain seeking, those subjects invest on average 50 % more in a risky gamble in their peer comparison setting than a reference group that made the same decision in an isolated individual setting. Subjects with a preference for positively correlated outcomes, in line with relatively stronger social loss aversion, do not show a higher propensity to invest in a risky gamble compared to the individual reference group. (shrink)

Previous research suggests a higher perceived risk associated with a risky behavior predicts a lower likelihood of involvement in that behavior; however, this relationship can vary based on personality characteristics such as impulsivity and behavioral activation. During the COVID-19 pandemic, individuals began to re-evaluate the level of risk associated with everyday behaviors. But what about risks associated with “typical” risk-taking behaviors? In the present study, 248 undergraduate student participants completed measures of impulsivity, behavioral activation and inhibition, (...) propensity to take risks, numeracy, and perceptions of and involvement in both risk-taking behavior and health promoting behavior. Our study revealed that higher behavioral inhibition and greater propensity to take risks predicted greater likelihood of involvement in COVID-19-related risk behaviors, even after accounting for perceived risks and benefits of the behavior. Greater likelihood of involvement in social risk behaviors was predicted by greater numeracy and risk-taking propensity. Identifying as male, a greater propensity to take risks, and greater impulsivity predicted increased health/safety risk behaviors. Younger age, lower risk-taking propensity, and lower impulsivity were associated with a greater likelihood of donating blood. For the likelihood of registering to become an organ donor, increasing risk perception, both before and during the pandemic, was associated with greater likelihood of registering, but greater risk-taking propensity was associated with a decreased likelihood of organ donation registration. For flu vaccination, a greater propensity to take risks was associated with a greater likelihood of flu vaccination during the 2020–2021 flu season. Both cognitive and personality factors can predict involvement in risk-taking and health-promotion behaviors, warranting their continued examination. (shrink)

For the purpose of this analysis, risk assessment becomes the primary term and risk management the secondary term. The concept of risk management as a primary term is based upon a false ontology. Risk management implies that risk is already there, not created by the decision, but lies already inherent in the situation that the decision sets into motion. The risk that already exists in the objective situation simply needs to be (...) “managed”. By considering risk assessment as the primary term, the ethics of responsibility for risking the lives of others, the environment and future generations in the first place comes into the forefront. The issue of risk heeding is especially important as it highlights the need to pay attention to warnings of danger and to take action to redress problems before disasters occur. In this paper, the decision making that led to the choice of technology utilized and the implementation of such technology in the case of the space shuttle Challenger disaster will be used as a model to illustrate the need to take ethical factors into account when making decisions regarding the safety of technological systems and the heeding of danger warnings. While twenty-five years separates the decision to launch the Challenger and the Fukushima Daiichi nuclear plant disaster, the lessons of the Challenger disaster are still to be learned. (shrink)

Fallacious anthropomorphic attributions such as 'risky technology' take ethical accountability out of the hands of managers and relegate it to the deterministic or accidental outcomes of complex 'high risk technology'. Equally fallacious mechanistic terms such as 'organisational inertia' are borrowed from physics to apply to human organisations. The responsibility for ethically accountable decision-making is taken out of human hands and either ascribed to the mythological entity "Technology" or to the mythological bureaucratic organisation which functions as if it follows the (...) laws of physics. I argue in contrast that disasters can be prevented by demythologising the belief systems that pervade risk management literature. Risk management must reclaim ethical accountability by replacing notions such as 'risky technology', 'high risk technology', 'risky work' and 'bureaucratic drift' with 'risky assessment', 'risky management', 'risky choice' and 'multiple responsibility'. (shrink)