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1 – 10 of over 17000Irfan Butt, Shoaib Ul-Haq, Mahmud A. Shareef, Abdul Hannan Chowdhury and Jashim Uddin Ahmed
In this study, the authors examine how a retail bank's positive, neutral, and negative prior ethical reputations influence customers' perceptions and attitudes, leading to their…
Abstract
Purpose
In this study, the authors examine how a retail bank's positive, neutral, and negative prior ethical reputations influence customers' perceptions and attitudes, leading to their bank selection decisions and also analyze whether there is a trade-off between a bank's negative prior ethical reputation and its functional benefits to customers.
Design/methodology/approach
The authors followed a sequential exploratory mixed-methods research design with two studies. The authors’ first study was qualitative, in which the authors conducted interviews and focus groups with banking customers in Pakistan. The results of this study were used to generate hypotheses that were tested in the second study using random choice experiments.
Findings
The results indicate that positive and neutral prior ethical reputations do not significantly impact customers' choices; however, a negative reputation does affect selection. The results also show that customers punished negative reputations, even when the associated functional benefits were higher than the alternatives.
Originality/value
This is one of the first mixed-methods studies in an emerging economy context to consider the impact of ethical reputation on consumer orientation and bank selection decisions.
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Peter A. Stanwick and Sarah D. Stanwick
This study examines the relationship between ethical reputation, CEO compensation and firm performance for the top corporate citizens as rated by Business Ethics magazine. The…
Abstract
This study examines the relationship between ethical reputation, CEO compensation and firm performance for the top corporate citizens as rated by Business Ethics magazine. The results show that there was not a direct relationship between CEO compensation and firm performance, that a high level of CEO compensation combined with a high ethical reputation did not impact the financial performance of the firm, and firms with a high ethical reputation had only average financial results, while firms with low ethical reputations displayed both high and low financial performance. Furthermore, CEOs of unfirms had, on average, higher compensation levels than firms that were profitable. These findings bring useful inputs for CEO on how they can justify high levels of compensation even during periods when the firm is not profitable or has a low level of profitability. An interesting sidelight of the study is that three CEOs in the sample whose firms were profitable did not accept any compensation during 2002, probably because the financial performance was below expectations.
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Lays out a framework for analysing ethics in organizations. Relying on methodological individualism, introduces five building blocks for the framework: self‐interest, individual…
Abstract
Lays out a framework for analysing ethics in organizations. Relying on methodological individualism, introduces five building blocks for the framework: self‐interest, individual rationality, sequential rationality, incentive compatibility, and reputation. Uncritical use of the self‐interest model may induce framing effects, blinding less cautious users to important ethical dimensions. Illustrates the richness and “ethical flavour” of an appropriately considered self‐interest model through focusing one of the individual agent’s real interests in a broad sense, through the use of the time factor in the building blocks, and through suggesting how the individual agent can interpret the value systems in her surroundings.
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Arts organisations, unsure of the level of continued government funding available and confronted with the need ever to improve, are seeking new ideas upon which they can focus. At…
Abstract
Arts organisations, unsure of the level of continued government funding available and confronted with the need ever to improve, are seeking new ideas upon which they can focus. At a time when leadership and governance in arts organisations have changed in line with cultural expectations, how is their ethical stance assessed? How does their ethical stance impact on reputation? The challenge to build a good reputation starts at the top of the organisation; however, traditionally, one type of arts organisation, art museums, has focused on the activities level. In an age of globalisation, economic restructuring and technological change, museums therefore may be seen as a contradiction. Traditionally seen as temples for the muses, today’s museums are being challenged to be ethical for society and to build their reputation. As a solution, proposes a cooperative model of cultural organisational ethics that attempts to provide a framework by which arts organisations can put in place ethical artefacts that enhance organisational reputation, rather than detract from it.
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Jay Prakash Mulki and Fernando Jaramillo
This research seeks to explore the role played by ethical reputation in amplifying the positive impact of value received by the customer on satisfaction with the supplier and…
Abstract
Purpose
This research seeks to explore the role played by ethical reputation in amplifying the positive impact of value received by the customer on satisfaction with the supplier and ultimately loyalty.
Design/methodology/approach
Survey responses derived from 299 customers, concerning two large financial institutions within Chile, are used to test relationships among ethical perceptions, customer value, satisfaction, and loyalty. Hypotheses are tested with a structural equation model.
Findings
Results show that ethical perceptions about the organization amplify the impact of customer value on customer satisfaction and eventually loyalty.
Research limitations/implications
This study contributes to the existing literature by showing that ethical perceptions from customers can help financial institutions achieve higher levels of satisfaction and loyalty. Study findings rely on customer survey responses collected in one country and one industry. Generalizability of findings is yet to be tested.
Practical implications
Ethical reputation helps financial institutions retain their customers.
Originality/value
This is the first study showing that customer perceptions about company ethics amplify the positive impact of customer value on customer satisfaction.
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Reham A. Eltantawy, Gavin L. Fox and Larry Giunipero
There is a lack of extensive research related to the immediate consequences of supply management ethical responsibility (SMER) and the moderating and/or mediating factors that…
Abstract
Purpose
There is a lack of extensive research related to the immediate consequences of supply management ethical responsibility (SMER) and the moderating and/or mediating factors that strengthen or weaken its consequences. Although the underlying presumption is that companies no longer have the luxury of ignoring the importance of SMER, the lack of empirical research of SMER's impact on supply management performance (SMP) reflects the need for research that draws on and empirically tests established theories concerning the role of corporate ethics within the context of supply management (SM). Therefore, the purpose of this study is to determine the impact of SMER and strategic supply management skills on SM perceived reputation and performance.
Design/methodology/approach
Structural equation modeling is employed to investigate the hypothesized relationships. A sample of 162 purchasing managers provided the data via survey.
Findings
Strategic supply management skills and perceived reputation have a positive direct impact on performance. SMER is not directly affected by skills and has an indirect impact on performance through its positive relationship with perceived reputation.
Practical implications
The findings suggest that SMER is limited in its ability to predict performance, but is a valuable component of building SM perceived reputation. Firms should not ignore SMER, as it may provide strategic marketing advantage as an order qualifier or limiting criterion.
Originality/value
This paper investigates the interplay among several important determinants of supply chain performance, including the greatly under‐studied ethics construct.
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The study investigated the strategic contribution of COVID-19 preventive measures in building corporate reputation in the hospitality industry when mediated with ethical branding.
Abstract
Purpose
The study investigated the strategic contribution of COVID-19 preventive measures in building corporate reputation in the hospitality industry when mediated with ethical branding.
Design/methodology/approach
The hypothesized model was developed and tested using a cross-sectional research design among 404 customers of hospitality organizations (i.e. hotels and restaurants). The collected data were analyzed quantitatively using structural equation modeling.
Findings
The results showed that COVID-19 preventive measures are important drivers in building or rebuilding corporate reputation during and after the COVID-19 pandemic. The study also showed that ethical branding acts as a mediator between COVID-19 preventive measures and corporate reputation.
Research limitations/implications
The study used a nonprobability sampling technique, i.e. convenience sampling and a cross-sectional survey research design. It is therefore necessary to be careful when generalizing the findings.
Practical implications
The study recommends that managers in hospitality organizations should ensure proper and effective compliance with COVID-19 preventive measures during service delivery. Among others, the study highlighted areas for further study to include an investigation using a longitudinal approach to observe behavioral changes toward COVID-19 preventive measures and their consequences on the overall corporate reputation of the hospitality industry. This recommendation is based on the fact that, currently, new cases and mortality rates have decreased considerably. As a result, customers in the hospitality industry have started to have different opinions about complying with COVID-19 preventive measures.
Originality/value
The study is among new endeavors to investigate drivers that can rebuild and sustain the corporate reputation of hospitality organizations during a pandemic like COVID-19.
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Diana C. Sisson and Shannon A. Bowen
Following a report released by the UK Parliament’s Public Accounts Committee, multinational corporations like Starbucks, Google, and Amazon found themselves in a firestorm of…
Abstract
Purpose
Following a report released by the UK Parliament’s Public Accounts Committee, multinational corporations like Starbucks, Google, and Amazon found themselves in a firestorm of criticism for not paying or paying minimal taxes after earning significant profits in the UK for the past three years. Allegations of tax evasion led to a serious crisis for Starbucks in the UK, which played out in a public forum via social media. The researchers explored whether Starbucks’ corporate ethics insulated its reputation from negative media coverage of alleged tax evasion evidenced in its “hijacked” social media “#spreadthecheer” campaign. The paper aims to discuss these issues.
Design/methodology/approach
Using an exploratory case study analysis of news articles, Starbucks’ annual reports, #spreadthecheer Tweets, and David Michelli’s The Starbucks Experience, data collection helped to inform the discussion of authenticity and whether it helped to insulate Starbucks’ reputation during its crisis in the UK.
Findings
Authenticity is key when organizations face a turbulent environment and active publics and stakeholder groups. Findings from this study also suggested proactive reputation management strategies and tactics, grounded in the organization’s corporate culture and transparency, could have diffused some of the uproar from its key publics.
Originality/value
Authentic corporate cultures should align with corporate business practices in order to reduce the potential for crises to occur. It is possible that ethical core values and a strong organizational approach to ethics help to insulate its reputation among publics during a crisis.
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J. Graham Spickett‐Jones, Philip J. Kitchen and Jon D. Reast
Providing a framework for integrating aspects of externally directed corporate and marketing communication efforts, this paper makes a case for the communication of positive and…
Abstract
Providing a framework for integrating aspects of externally directed corporate and marketing communication efforts, this paper makes a case for the communication of positive and credible ethical values as a potentially critical component in communications strategy and sustainable competitive advantage. Using an uncertainty‐reduction model adapted from the diffusion literature, it is suggested that appropriately communicated moral and ethical values can have a role in underpinning an organisation’s reputation and “trusted capacities”, thereby heightening confidence in likely future actions, offering a predictive mechanism for lowering uncertainty in market transactions, and facilitating a potential to trade by offering a rationale for an organisation’s secure market position. Underpinned by ethical principles, the paper proposes implications for the role of “reputation for trustworthiness” and its symbolic evocation. It is argued that a reputation can become accepted as a social “fact”, able to endure critical interrogation in its social environment.
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Shivani Raheja and Max Chipulu
This paper aims to examine whether Twitter messaging can help mitigate the harm corporations suffer in the aftermath of ethical scandals.
Abstract
Purpose
This paper aims to examine whether Twitter messaging can help mitigate the harm corporations suffer in the aftermath of ethical scandals.
Design/methodology/approach
This paper applies Web Application Programming Interfaces (API) on the Guardian and New York Times news archives to find corporations that suffered scandals between 2014 and 2019, revealing 92 publicly listed companies in the UK. Using Twitter API and the Python library, Getoldtweets, this paper extracts historical, pre-scandal – i.e. pre-2014 – tweets of the 92 firms. The paper topic-models the tweets data using Latent Dirichlet Allocation (LDA). This paper then subjects the topics to multidimensional scaling (MDS) to examine commonalities among them.
Findings
LDA reveals 10 topics, which group under 5 themes; these are product marketing, urgent signalling of “greenness”, customer relationship management, corporate strategy and news feeds. MDS suggests that the topics further congregate into two meta-themes of future-oriented versus immediate and individual versus global.
Practical implications
Provided they are sincere and legitimate, corporations’ tweets on global issues with a green agenda should help cushion the impact of ethical scandals. Overall, however, the findings suggest that Twitter messaging could be a double-edged sword, and underscore the importance of strategy.
Originality/value
The paper offers a first exploration of the relevance of corporate Twitter messaging in mitigating ethical scandals.
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