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Shareholder Theory allows management to ignore the interests of the other constituencies while pursuing its own narrow self‐interest under the guise (the ethical facade) of promoting the interests of the shareholder owners. The Shareholder Theory does not provide any relistic counterweight against management abuse. The Enron example strengthens the arguments for the use of Stakeholder theory and exposes the utter failure of the Shareholder Theory.

How can large international financial firms go green in authentic ways? What enhances ‘Net Zero action’? Changes in global banks, fund managers, and insurance firms are at the heart of green finance. External change pressures – combined with problematic firm predispositions – exacerbate barriers to change and promote scepticism about authentic Net Zero change. Field research reveals main elements, connections, and interactions of this question by considering financial firms as complex socio-technical systems (Mitleton-Kelly, 2003). An interdisciplinary/holistic narrative approach (De Bakker et al., 2019) is adopted to design a conceptual framework that can support a green ‘behavioural theory of the financial firm’ (green BTFF). The BTFF presents an international version (Peng, 2001) of the resource-based view (RBV) of the firm (Barney, 1991; Hart, 1995; Teece et al., 1997).

The approach of this chapter is aimed at closing knowledge gaps and realign values in financial markets and society. By raising awareness about organised hypocrisy and facades (Brunsson, 1993; Cho et al., 2015; Schoeneborn et al., 2020) in financial firms the chapter aims at overcoming the gap between ‘talking’ and ‘walking’ in the financial sector. The chapter defines testable firm-level hypotheses for ‘Green Finance’ (Poterba, 2021) as well as – by implication – tests for ‘greenwashing’.

A significant and increasing number of graduate recruits take up employment for specific companies by virtue of their ethical reputation and profiles. As such, ethical fit has become an important dimension of the attraction and retention of graduates. However, preconceived notions of a company’s ethical orientation obtained through the media and initial recruitment exercises may be challenged during the induction and socialization phases of organizational entry, such that people may find that the reputation is just an external façade leading to disappointment and a reassessment of the employer. The paper aims to discuss these issues.

The study’s essential focus is on building a conceptual ethical fit model and to underline the need for further conceptual development in the area. The analysis of extant secondary data and the methodology of serendipity were used.

The model’s conceptual cogency and practical utility for human resource management are analyzed in the light of specific secondary data and specific propositions described.

A major concern with conceptual models is empirical validity and practical utility which requires empirical testing. However, this limitation has been mitigated by the use of a serendipitous approach from a qualitative empirical study with a generalized person–organization (P–O) focus.

Various practical implications of the model described in the paper for HR management are evident from empirical studies in the area which have dealt with particular aspects of the model. For example, Bauer et al. (1998) found that socialization effects employee turnover. And, Cable and Parsons (2001) indicate that organizational socialization is critical in generating committed employees whose values are congruent with those of the organization. Since committed employees are critical for the success of the organization, they suggest training programs for hiring managers and criteria in performance appraisals that include the development of employee value congruence through specific formal socialization tactics.

The paper contributes to the extant literature by building a dynamic conceptual model with attendant testable propositions that explore the implications of employee misalignment in pre-socialization anticipatory organizational ethical fit and post-socialization organizational ethical fit. More specifically, the study contributes to the extant literature by considering the socialization process in relation to ethical fit dynamics. It also considers from the point of view of specific moral development theory and changing perceptions of ethical climate that occur during organizational socialization. Serendipitous material obtained from a qualitative study of P–O fit puts flesh on the bones of the effects of the socialization process on ethical fit described by the paper’s conceptual model while providing circumstantial evidence for the propositions and their practical utility for HR management.

The paper discusses ethical issues related to the adaptive reuse of ruin heritage on the example of the so-called ruin bars in Budapest's District VII. It explores how heritage discourse can contribute to the sustainable development of urban neighborhoods. The authors address the question by focusing on how a processual approach can be instrumental in identifying responsible and socially sustainable ways to reuse dilapidated heritage in a residential area.

The problem is analyzed through a case study based on field observation, participant observation, stakeholder interviews, policy analysis and media and social media content analysis.

The authors argue that ethical reuse of ruin heritage must take into consideration the values and interests of multiple stakeholders and the broadest range of consequences at the level of neighborhood and city. An integrated heritage and planning policy should consider and involve as active participants all the heritage communities concerned. Importantly, these groups, comprising both new and longtime residents, must include the vulnerable and marginalized.

The findings can be used by heritage managers for identifying and addressing ethical issues in their adaptive heritage reuse practices and by policymakers for integrating heritage management in urban development and making cities more inclusive (SDG #11).

The paper explores how ethical it is for business enterprises to build on the ruin esthetics in a residential district and what the ethical implications of this reuse process are for various stakeholders.

An individual engages in a façade of conformity by attempting to appear to embrace their organization's values when, in truth, they do not. While numerous studies investigate the negative outcomes associated with facades of conformity, fewer studies consider its antecedents. Therefore, this study aims to investigate the association between diversity-related influences – including individuals' beliefs, other unit members' beliefs, unit gender diversity and unit racial diversity – and individuals' propensities to engage in a façade of conformity.

This paper administered an online survey to 2,122 employees nested within 151 units located at a hospital site located in the southeastern United States. Hierarchical linear modeling and relative weights analyses were used to test the study hypotheses which aimed to determine how objective diversity and perceptions associated with diversity increase or diminish facades of conformity.

In this paper individuals' and other unit members' beliefs that their organization values diversity were negatively associated with facades of conformity; however, there was a positive association between unit gender diversity and facades of conformity. There were no statistically significant associations involving unit racial diversity or interactive effects. Overall, the results indicate that it is less likely that employees will engage in façades of conformity when diversity is valued within organizations.

By further expanding understanding of the concept of façades of conformity within the humanities and social sciences literature, this study highlight the importance of allowing and encouraging employees to “be themselves.”

The present work aimed to present the perception of Tunisian professionals towards companies engaged in social responsibility practices and describe the tax evasion strategies of socially responsible Tunisian companies following the coronavirus disease 2019 (COVID-19) pandemic (COVID-19) shock.

A survey was sent to 119 Tunisian tax administration auditors. Data analysis methods principal component analysis (PCA) and regression analysis were used. The data were collected through a questionnaire after the general containment of Tunisia from September 2020 to February 2021. These quantitative data were analysed using processing software (STATA).

Professionals of the tax authorities, particularly those in charge of the audit mission, aim for corporate profitability from the perspective of stakeholders that seek to integrate ethics and social responsibility into companies and consider employee morale a top priority. The results show that highly ethical and socially responsible professionals are far from practising aggressive strategies. Thus, an auditor from the tax administration is far from engaging in social responsibility to justify fraudulent acts. During the COVID-19 period, the role of these professionals was to prevent and detect fraud in the tax sector to fight corruption and investigate taxes based on sound regulations.

The results are consistent with optimal taxation theory, which postulates that a tax system should be chosen to maximise a social welfare function subject to a set of constraints. Professionals seek to make taxation much simpler for taxpayers by providing advice and consultation to manage tax obligations. The minimisation of tax or the play of tax values requires expertise in the field to respect legal constraints. Therefore, these professionals play a crucial role in tax collection, as the professionals' advice and suggestions can influence taxpayers' decision-making.

In recent years, academic researchers, policy makers and the public have become increasingly interested in corporate tax evasion behaviour. At the same time, companies are under increasing pressure to integrate CSR into the companies' decision-making processes, which has led to increased academic interest in CSR. Opportunistic tax minimisation reduces state resources and funds needed for government programmes to improve the social welfare of the entire community. This study represents an overriding concern not only for legal and tax authorities and companies, but also for shareholders and stakeholders.

The authors' study contributes to the existing literature by determining the state of play on corporate social responsibility (CSR) practices amongst Tunisian tax authorities' professionals. In Tunisia, an executive of the tax authorities in charge of the verification mission is required to verify the proper application of the accounting and tax legislation in force, follow up on tax control operations on declared taxes and validate the sincerity of the accounts. This study focussed on the tax evasion of companies engaged in social responsibility practices according to the judgements of Tunisian tax authorities' auditors during the global COVID-19 pandemic.

This study aims to presents the article regarding the influential role of moral inefficacy and moral disengagement to address green intention and behaviour gap among consumers, and how they attain self-exoneration because of the moral dilemma if any exist.

The present study is based on semi-structured interviews, using constructivist grounded theory, which offers a platform to investigate, explore and discover psychosocial mechanism that operates among the consumers regarding the dimension of morality and green practices. In-depth exhaustive dialogues with Indian green consumers are set up to stimulate dialogue on the study.

Findings of the study shed light on the moral dilemma arising from internal and external inefficacy of consumers and disengagement of morality to save consumers from self-condemnation. Also, the study proffers the potential conceptual framework of moral inefficacy, moral disengagement and green buying behaviour of consumers. Eventually, the study mapped the morality matrix to explore the consequents of moral inefficacy and moral disengagement.

The idiographic nature of qualitative research, particularly grounded theory may be considered as a research limitation as it follows limited generalizability. Moreover, the present research work is exploratory in nature and depends on the candour of researchers’ reactivity and understanding.

The study subjectively concludes the green behaviour of consumers and discusses the rationality behind green intentions and behaviour gap. Marketers can strategize consumer morality as an approach to enhance green buying behaviour of consumers by removing moral inefficacies and disengagements.

It is crucial for marketers and society to understand the reasons behind non-green consumerism and accordingly cope up with the situation.

The study has been designed in a way to discuss the philosophy of morality and psychology of consumers on green consumption. To elicit the crux and conceptualization of morality and green purchasing framework using constructivist grounded theory is the exclusivity of this study. This paper explores green consumption pattern using moral orientation and processes in detail.

This study, based on the moderated-mediation model, investigates the indirect effect of facades of conformity in the relationship between supervisor ostracism and unethical work behaviour. Furthermore, this study tested the moderating role of perceived organizational obstruction in the aforementioned relationship through facades of conformity.

Employing a multi-wave and two-source data from employees and peers (n = 264) of the services sector in Pakistan, the authors tested the proposed framework using Hayes and Preacher moderated-mediation technique.

The findings reflect that supervisor ostracism encourages unethical behaviour at the workplace. Further, results revealed that facades of conformity mediated this direct relationship. Moreover, the authors found that perceived organizational obstruction moderated the relationship between supervisor ostracism and facades of conformity. Results also confirm that perceived organizational obstruction moderates the mediated relationship.

The paper concludes with a discussion, managerial implications, limitations and directions for future research.

This study added value in the literature of supervisor ostracism, facades of conformity, unethical work behaviour and perceived organizational obstruction.

After reading and analyzing the case study, the students would be able to identify the main stakeholders and decision-makers and their importance and influence on the environment for a product, evaluate the value chain of the product and critical decision-makers, evaluate the various ways to avoid falling into the trap of greenwashing and examine the marketing strategy to market an environmentally friendly product.

LIKO-S is a Czech manufacturing and construction company. The company has been designing and creating intelligent solutions, such as green facades or vertical greenery systems, to save energy in building heating and cooling systems. The company launched green facades in the Czech market. However, the main obstacle was the need for supporting data to showcase the positive environmental impact of green facades. Under these circumstances, Libor Musil’s main objective was to overcome prevalent misconceptions about green facades and find a suitable market segment. The situation worried the company, as LIKO-S had heavily invested in developing and marketing the green walls. The management had to tackle this challenge as soon as possible to recover the substantial research and development and marketing investments. Furthermore, owing to lack of information, even genuinely sustainable products were seen as greenwashing. In addition, bad or wrong customer perceptions of these walls might spill over to other products, tarnishing the company’s image and threatening its survival in the domestic market. Under these circumstances, competitors might enter the Czech market, jeopardizing the company’s overall profits. Consequently, Libor was in a great dilemma about managing the financial and reputational risk of the company. Should Libor close the green walls unit, explore different markets/uses or help increase awareness among the general population about green walls by finding a suitable marketing strategy?

The case study was designed for graduate-level students in the strategic management (CSR and innovation module) courses. However, the case could also be an excellent addition to marketing courses dealing with customers’ perceptions of innovative products and strategies to improve the adoption of the product.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship

The study draws upon three accounts to examine post-truth politics and its link to accounting. In studying Petrobras, a Brazilian petrochemical company embroiled in a corruption scandal, the authors draw upon a politics of falsity to understand how different depictions of similar events can emerge. The authors depict Petrobras' corporate social responsibility (CSR) disclosures during the period of corruption juxtaposed against the Brazilian Federal Police investigation (the Lava Jato/Car Wash Operation) and Petrobras' response to the allegations of institutional corruption.

The data set consisted of 56 Petrobras reports including Annual Reports, Financial Statements, Sustainability Reports and Form 20-Fs from 2004 to 2017, information disclosed by the Brazilian Federal Police concerning the Lava Jato Operation and media reports concerning Petrobras and the corruption scandal. The paper employs a discourse analysis approach to depict and interpret the accounts.

Through examining the connection between ontic accounts and ontological presuppositions, the authors illustrate a post-truth logic underpinning accounting, due to the interpretive, contestable and contingent nature of accounting information. Consequently, the authors turn to the “ethics of the real” as a response, as citizen subjects must be cautious in how they approach accounting and CSR disclosures.

Rather than relying on simplistic true/false dualities, the authors argue that the “ethics of the real” provides a courageous position for citizen subjects to interrogate the organisation by recognising the role of discourse and disclosure expectations on organisations in a post-truth environment. The study also illustrates how competing, contingent accounts of the same timeframe and events can emerge.