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Article
Publication date: 4 October 2021

Carolyn Jia’En Lo, Yelena Tsarenko and Dewi Tojib

Corporate scandals involving senior executives plague many businesses. Although customers and noncustomers may be exposed to news of the same scandal, they may appraise dimensions…

Abstract

Purpose

Corporate scandals involving senior executives plague many businesses. Although customers and noncustomers may be exposed to news of the same scandal, they may appraise dimensions of the transgression differently, thereby affecting post-scandal patronage intentions. The purpose of this study is to investigate whether and how consumer-firm affiliation affects future patronage intentions by examining nuances in customers’ vs noncustomers’ reactions toward the transgressor’s professional performance and immoral behavior.

Design/methodology/approach

Four between-subjects experimental studies were used to test whether performance-relevant and/or immorality-relevant pathways drive customers’ vs noncustomers’ post-scandal patronage intentions. The results were analyzed using analysis of variance, parallel mediation and serial mediation.

Findings

The results demonstrate that performance judgment, and not immorality judgment, drive the relationship between consumer-firm affiliation and post-scandal patronage intentions (Study 1a), regardless of the order of information presented (Study 1b). Customers form more positive performance judgments because they give more weight to performance-related information (Study 2), demonstrating a sequential effect of consumer-firm affiliation on post-scandal patronage intentions only through the performance-relevant, and not immorality-relevant, pathway (Study 3).

Research limitations/implications

This research contributes to the literature on social distance and moral judgments. Future research should examine other deleterious outcomes such as brand sabotage and negative word-of-mouth, as well as potential moderators including repeated transgressions and prevalence of the infraction in other firms.

Practical implications

This research offers important nuances for understanding how performance and immorality judgments differentially operate and affect post-scandal patronage intentions. The findings highlight the strategic value of communicating the leader’s performance (e.g. professional contributions) as a buffer against potential declining patronage.

Originality/value

Offering new insights into the extant literature and lay beliefs which contend that harsh moral judgment reduces patronage intentions, this research uncovers why and how exposure to the same scandal can result in varying moral judgments that subsequently influence patronage intentions. Importantly, this research shows that the performance-relevant pathway can explain why customers have higher post-scandal patronage intentions compared to noncustomers.

Details

European Journal of Marketing, vol. 55 no. 12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 May 2000

Anghel N. Rugina

States that a more humane society is the ultimate goal of modern society, along with economy and form of government. Posits that in this study the theory of cheating the masses…

Abstract

States that a more humane society is the ultimate goal of modern society, along with economy and form of government. Posits that in this study the theory of cheating the masses under capitalism and socialism‐communism, is valid ipso facto under fascism and any form of dictatorship. Looks at the problem of methodology and history and discusses: the use of deception; accumulation of illegitimate power; and the spreading of instability, and the exploitation of the masses. Concludes that the great transformation in the West and the East may develop of its own accord, but not necessarily without help, for the betterment of mankind unless pointed in the right direction.

Details

International Journal of Social Economics, vol. 27 no. 5/6
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 1 August 1988

Anghel N. Rugina

The unity of our spirit makes it impossible to work toward a certain end without thinking that this end can and must be achieved, even if only in the distant future and through…

Abstract

The unity of our spirit makes it impossible to work toward a certain end without thinking that this end can and must be achieved, even if only in the distant future and through the work of later generations… Objective examination in the ups and downs in the history of law cannot and must not extinguish our faith in justice as a supreme human ideal. Even in the face of events which represent a setback or a deviation, that ideal remains unshaken as a criterion of value; without it, deviation would be meaningless. Even if contradicted by empirical facts, this ideal does not lose its ethical and deontological truth. These contradictions between “is” and “ought to be” can be neither permanent nor general. Giorgio del Vecchio, Man and Nature

Details

International Journal of Social Economics, vol. 15 no. 8
Type: Research Article
ISSN: 0306-8293

Book part
Publication date: 20 May 2005

Glenn L. Johnson

Busch focuses on what he regards as the three broad causes of immorality in the modern world: scientism, statism, and marketism. He views these three “isms” pejoratively and…

Abstract

Busch focuses on what he regards as the three broad causes of immorality in the modern world: scientism, statism, and marketism. He views these three “isms” pejoratively and originating respectively with Francis Bacon, Thomas Hobbes and Adam Smith. Each is treated as a “leviathan” spewing immorality from its multiple heads in the form of undue faith in the three different kinds of social order they generate.

Details

A Research Annual
Type: Book
ISBN: 978-1-84950-316-7

Article
Publication date: 1 February 1989

Li‐Teh Sun

Introduction It is the purpose of this paper to examine the issue of federal deficits from a general, and thus, a broader perspective than is traditionally employed. It is…

Abstract

Introduction It is the purpose of this paper to examine the issue of federal deficits from a general, and thus, a broader perspective than is traditionally employed. It is maintained in this paper that the deficit is not simply a “government” problem — because a representative government can do little to balance the budget if the people are doing all they can, not only to reduce their tax liabilities but also to demand a continuous increase of benefits from government. The deficit should thus be considered as a problem of the entire society and analysed accordingly. Also, it is not merely an economic problem, but also a moral problem. More specifically, from a general equilibrium viewpoint (i.e. both the public and the private sectors are considered), the federal budget deficit can be regarded as a consequence of a society that places a high value on individual economic freedom, economic efficiency, as well as on competition for economic success. This is the case because economic freedom and competition tend to create economic insecurity and immorality, both of which incline to cause government expenditures to increase, taxes to decrease, or both. Hence, a long term solution for budget shortfalls would depend upon the possibility of whether the society as a whole can be made more economically secure and moral without the unnecessary encroachment upon individual liberty and upon the opportunity for competitive success.

Details

Humanomics, vol. 5 no. 2
Type: Research Article
ISSN: 0828-8666

Article
Publication date: 22 June 2012

Jörg Lindenmeier, Dieter K. Tscheulin and Florian Drevs

This study aims to investigate how unethical corporate behavior of pharmaceutical companies affects consumer behavior of German consumers, especially boycotts of over‐the‐counter…

3518

Abstract

Purpose

This study aims to investigate how unethical corporate behavior of pharmaceutical companies affects consumer behavior of German consumers, especially boycotts of over‐the‐counter drugs.

Design/methodology/approach

Borrowing from psychological theory as well as consumer behavior theory, the study develops a conceptual model that considers affective and cognitive determinants of boycotting behavior. Within the scope of the German pharmaceutical sector, the researchers conducted a survey to validate the research hypotheses using moderated regression analysis.

Findings

Individuals' inclination to join boycotts and engage in boycott communication results from anger about animal testing, perceived immorality of pharmaceutical companies' corporate behavior and negative corporate image of pharmaceutical companies. An empirical analysis reveals significant moderation effects.

Research limitations/implications

This research focuses on the pharmaceutical sector and the boycott of over‐the‐counter drugs.

Practical implications

The study results may help pharmaceutical companies develop communication responses to accusations of unethical corporate behavior.

Originality/value

The paper offers new insights on the effects of unethical corporate behavior on consumers, which may be useful to the crisis‐prone pharmaceutical sector.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 6 no. 2
Type: Research Article
ISSN: 1750-6123

Keywords

Article
Publication date: 23 June 2022

Heyao Yu, Tiffany S. Legendre and InHaeng Jung

Mergers and acquisitions (M&As) are typical corporate strategies that provide hospitality business competitiveness. However, some recent evidence shows that when the merged and…

Abstract

Purpose

Mergers and acquisitions (M&As) are typical corporate strategies that provide hospitality business competitiveness. However, some recent evidence shows that when the merged and acquired (M&Aed) restaurants have strong local characteristics, consumers feel betrayed and perceive the M&As, legitimate business activities, as immoral actions. Building upon expectancy violation theory and moral foundation theory, this study aims to examine the moderating role of locavorism on the indirect effects of preexisting relationship quality on desire for avoidance and psychological loss through brand betrayal and moral judgment.

Design/methodology/approach

This study used the M&A of Whataburger chain restaurant as the scenario and recruited 399 Texas Whataburger consumers. A moderated mediation model was developed to examine the mechanisms through which preexisting relationship quality on negative responses to M&A of local restaurants.

Findings

The results showed preexisting relationship quality influences desire for avoidance and psychological loss negatively through brand betrayal and moral judgment. The indirect effects of relationship quality on the desire for avoidance and psychological loss become more accentuated among locavores.

Practical implications

The results implied that merging and acquiring (M&Aing) companies should closely monitor consumer dialogues to promptly respond to post-M&A uncertainties when M&Aed company has a strong local identity.

Originality/value

The unique contribution of this study is showing why consumers have extreme negative emotions and judgment of immorality when M&A decisions are made for local hospitality brands through the lens of brand betrayal and moral foundation theory. The results can help M&Aing companies mitigate consumers’ negative responses to M&A of local restaurants.

Details

International Journal of Contemporary Hospitality Management, vol. 34 no. 12
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 1 June 2000

Terry L. Price

When an ethical failure of leadership is exposed, we are often disposed to look for an explanation of the leader’s behavior, not an analysis of the moral status of what was done…

10183

Abstract

When an ethical failure of leadership is exposed, we are often disposed to look for an explanation of the leader’s behavior, not an analysis of the moral status of what was done. On one such explanatory account, ethical failures are essentially volitional, not cognitive. Ethically fallen leaders knew that what they were doing was morally wrong but, nevertheless, were motivated to do it anyway. My thesis is that the volitional explanation of human immorality will not be sufficient to explain ethical failures of leadership. Simply applying the volitional explanation of human immorality to leadership contexts ignores the fact that leadership brings with it peculiar cognitive challenges that can lead to ethical failure. Specifically, leadership induces and maintains a leader’s belief that he is somehow excepted from the moral requirements that apply to the rest of us.

Details

Leadership & Organization Development Journal, vol. 21 no. 4
Type: Research Article
ISSN: 0143-7739

Keywords

Book part
Publication date: 31 October 2017

Anthony Keating

Sexual crime in the Irish Free State was more than an issue of law, it carried ideological importance in a nation that legitimised itself as a beacon of Celtic Catholicism whilst…

Abstract

Sexual crime in the Irish Free State was more than an issue of law, it carried ideological importance in a nation that legitimised itself as a beacon of Celtic Catholicism whilst struggling to maintain credibility in a contested post-colonial landscape. The nation’s police force, An Garda Síochána, had a central role in preserving the nation’s reputation for piety. This chapter explores the views of two of An Garda Síochána’s most senior officers regarding female sexuality and sexual crime; features that were to influence the level of protection and justice Ireland’s women and children were afforded under law.

Details

Environmental Criminology
Type: Book
ISBN: 978-1-78743-377-9

Keywords

Article
Publication date: 2 May 2022

David B. Carter, Rebecca Warren and Anne Steinhoff

This paper examines the 2012–2013 Starbucks tax crisis in the United Kingdom (UK) as an anatomy of tragedy. The tragedy in relation to Starbucks is the displacement of an…

1206

Abstract

Purpose

This paper examines the 2012–2013 Starbucks tax crisis in the United Kingdom (UK) as an anatomy of tragedy. The tragedy in relation to Starbucks is the displacement of an opportunity to examine the relationship between financial capital and national capitalisms. The paper illustrates how the crisis displaced opportunities for substantive critique concerning financial capital, national capitalisms, multinationals, taxation and society.

Design/methodology/approach

As a critical, discursive intervention, the paper examines how rhetoric was employed in 157 media articles published in six UK newspapers and on two news portals (both in print and online). The paper employs rhetorical redescription to the document archive, presenting the finding and analysis as a play in the style of an Aristotelian tragedy.

Findings

Analysis of the Starbucks approach to transfer pricing identifies misunderstandings of accounting, taxation transfer pricing, and ‘‘resolution” and how the media's construction of Starbucks as immoral, anti-British, potentially illegal operated to confuse the politics. The effect of these misunderstandings and confusion was to take attention away from a politics concerning financial capital valorisation and national capitalisms (jurisdictions raising tax revenue for government spending and social services).

Originality/value

First, the paper explores the politics of displacement to illustrate the metonymic concealment of the primary identity of the political. Second, Aristotelian tragedy is employed to study and present methods of displacement. Third, the empirics are depicted in a dramatic format to illustrate how rhetorical interventions by the media and actors displaced the political focus away from financial capital and national capitalisms.

Details

Accounting, Auditing & Accountability Journal, vol. 36 no. 1
Type: Research Article
ISSN: 0951-3574

Keywords

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