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Research supporting the empathy–altruism hypothesis suggests that the value assumption of the theory of rational choice is wrong. Apparently, humans can value more than their own welfare. Empathic concern felt for someone in need can produce altruistic motivation with the ultimate goal of increasing that person's welfare. But this altruistic motivation is not always good. Research also reveals that empathy-induced altruism can pose a threat to the collective good in social dilemmas. Indeed, in certain non-trivial circumstances, it can pose a more powerful threat than does self-interested egoism.

Empathy, or the process of feeling or knowing how another feels, is a critical component of social interactions, and may be of particular importance to organizational functioning. This chapter addresses a literature gap on empathy in organizational contexts by providing a review of empathy research in a management setting.

We integrate the developing field of empathy research and provide a conceptual framework built on Ashkanasy’s (2003) five levels of analysis in emotions research, emphasizing within-person, between-person, interpersonal, group-level, and organization-level processes.

Our model addresses the complaint that empathy definitions are not consistent by illustrating how the level of analysis alters the view of empathy’s role in organizations.

This multi-level model of empathy provides a framework to identify gaps in the empathy literature and make recommendations for future research.

This new model of empathy will help practitioners use and understand empathy by providing a structure of how empathy is manifested in organizational settings.

The field of empathy research has been limited by inconsistent definitions and a lack of a model that outlines how empathy is used in organizations. This multi-level model of empathy provides the necessary framework for researchers and practitioners to advance the research and practice of empathy in organizations.

In this chapter, we assume the following: (1) the root cause of most organizational problems is culture and leadership, (2) executives seldom want to deal with these root causes, (3) because life is uncertain, organizational change is an emergent process, (4) most change processes unfold by reconstructing social reality, (5) the change process is inherently relational, (6) effective change efforts are enhanced by increasing the virtue of the actors, (7) change is embedded in the learning that flows from high-quality relationships, and (8) change agents may have to transcend conventional, economic exchange norms in order to demonstrate integrity and to build trust and openness. Drawing on the field of positive organizational scholarship, we focus on the change agent. We review the literature on self-change and offer several paths for becoming a positive leader.

In this chapter, we examine employee prosocial rule breaking as a response to organizations’ unfair treatment of customers. Drawing on the deontic perspective and research on third-party reactions to unfairness, we suggest employees engage in customer-directed prosocial rule breaking when they believe their organizations’ policies treat customers unfairly. Additionally, we consider employee, customer, and situational characteristics that enhance or inhibit the relationship between employees’ perceptions of organizational policy unfairness and customer-directed prosocial rule breaking.

In a diverse society, empathy would intuitively seem to represent a powerful force for social good. In particular, we expect empathic people to tolerate (rather than reject) attitudes that might be different from their own, and to resolve and/or avoid (rather than escalate) potential disagreements with others. Some research supports this benign view of empathy, but somewhat surprisingly, there is a “dark” side to empathy, one that can sometimes exacerbate attitudinal conflict. That is, empathy can often be parochial, in the sense that people are inclined to reserve their compassion for others only when they are deemed to be worthy of such support. In this chapter we review classic and contemporary research on the light and dark side of empathy, and consider its implications for the kinds of dynamics that could potentially emerge when people encounter people and ideas that are different from their own.

Virtually all research on organizational citizenship behavior (OCB) is rooted in a social exchange based view of citizenship performance. While we do not dispute the significant role exchange motives play in citizenship performance, we nevertheless see what amounts to a preoccupation with and over-reliance on social exchange processes in extant OCB theory. With the goals of improving the prediction of citizenship performance and advancing human resource management practice, we outline several new directions for OCB theory and research.

Purpose – This chapter addresses the nature, formalization, and neural bases of (affective) social ties and discusses the relevance of ties for health economics. A social tie is defined as an affective weight attached by an individual to the well-being of another individual (‘utility interdependence’). Ties can be positive or negative, and symmetric or asymmetric between individuals. Characteristic of a social tie, as conceived of here, is that it develops over time under the influence of interaction, in contrast with a trait like altruism. Moreover, a tie is not related to strategic behavior such as reputation formation but seen as generated by affective responses.

Methodology/approach – A formalization is presented together with some supportive evidence from behavioral experiments. This is followed by a discussion of related psychological constructs and the presentation of suggestive existing neural findings. To help prepare the grounds for a model-based neural analysis some speculations on the neural networks involved are provided, together with suggestions for future research.

Findings – Social ties are not only found to be important from an economic viewpoint, it is also shown that they can be modeled and related to neural substrates.

Originality/value of the chapter – By providing an overview of the economic research on social ties and connecting it with the broader behavioral and neuroeconomics literature, the chapter may contribute to the development of a neuroeconomics of social ties.