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This paper aims to outline how certain lessons from ethical systems can be relevant and applicable to tackling unethical behavior, including financial crime, within the finance profession.

This paper adopts a pragmatic perspective while acknowledging that there is a myriad of reasons managers act unethically, including the reality that many do so knowingly and deliberately. The matter is further complicated by human nature, given an individual’s behavior (ethical or unethical) is not easily discernable from their psychological, sociological, theological or cultural attributes.

Although such systems may not solve the problem of corrupt behavior, research suggests that industry professionals can learn to act in a more responsible and ethical manner. Given the wounded reputation of the financial sector, owing to their role in committing financial crimes such as money laundering, advances in ethical conduct would elevate both the effectiveness of the sector, as well as its reputation.

It is impractical to think we can completely resolve the problem of unethical behavior. Improvement, however, seems possible through promoting virtuous character traits and ethical behavior in individuals and organizations. Virtue ethics can play a significant role in combating financial crime and supporting anti-money laundering initiatives.

This study explores family firms' ex ante conflict management strategies to preserve their socioemotional wealth (SEW) under predictable conflict through the succession process. Specifically, the authors examine how family firms leverage the insurance-like benefits of corporate social responsibility (CSR) to mitigate the threat of foreseeable family feuds among the sons of firms' family heads.

The authors focus on the charitable donations pledged by Korean family business groups (chaebols). Using the data of 62 chaebols with generalized least squares (GLS) models, the authors analyze 711 observations from 2005 to 2017.

The authors find a positive relationship between the number of sons of a family firm's head and the firm's CSR activities such as spending on charitable donations. Furthermore, the number of daughters of heads in executive positions strengthens such a positive relationship, whereas the number of business and political marriage ties weakens this relationship.

Family heads of family businesses may leverage CSR activities and marriage ties to elite families interchangeably to ward off negative impacts from foreseeable family feuds and preserve their SEW. Thus, a policy-based incentive for CSR that encourages more family heads to use CSR as insurance would serve the public interest.

The authors contribute to the family business literature by suggesting that CSR activities can be used by family firms as an instrument to mitigate foreseeable damage to the SEW caused by family feuds. The authors also shed new light on CSR research by finding that marriage ties to elite families may reduce the strategic value of CSR activities.

Customer participation (CP) in service recovery is one of the ways to co-create value with the service provider. Most existing studies assume that customers are willing to participate in service recovery, provided the firm offers them the opportunity. In this study, the authors propose the construct named customer intention to participate in service recovery (CIPSR), develop a scale for it and argue that it is not always implicit but rather is dependent on the consumer's perceived control.

A multi-method approach was used with a combination of qualitative interviews, literature review, unaided dimension identification, correspondence analysis, exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and structural equation modelling to develop the CIPSR scale. The authors used structural equation modelling to test the proposed effect of perceived control on CIPSR.

The study proposes a four-dimensional scale for CIPSR. The authors also found support for the effect of perceived control on CIPSR, with anxiety and failure controllability attribution as intermediate variables.

This study develops a comprehensive scale to measure CIPSR using a rigorous multi-method technique, as well as establishes its importance in the existing literature.