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Article
Publication date: 13 October 2022

Munir A. Abbasi, Azlan Amran and Noor e Sahar

Drawing on expectancy violation theory, this study aims to assess the impact of corporate environmental irresponsibility (CEI) on workplace deviant behaviors (WDB) of Generation Z…

Abstract

Purpose

Drawing on expectancy violation theory, this study aims to assess the impact of corporate environmental irresponsibility (CEI) on workplace deviant behaviors (WDB) of Generation Z and Millennials through the mediation of moral outrage.

Design/methodology/approach

The data were collected from 328 nonmanagerial employees working in the refinery, petroleum and power distribution companies who have been convicted for committing environmental irresponsibility by a court of law. Multigroup analysis (MGA) was used to estimate the hypothesized relationships.

Findings

Results revealed that CEI affects WDBs positively. Moreover, the MGA results demonstrated that the deviant behavior of Generation Z in response to environmental irresponsibility is higher than of the Millennials.

Research limitations/implications

Theoretically, the findings implicate that harming the environment will cost organizational performance through deviant behaviors.

Practical implications

This study provides a new lens for the executive management that eliminating social irresponsibility is more important than incurring sustainability initiatives, especially from the new generation’s perspective.

Originality/value

The originality of this study is that it confirmed the impact of CEI on employees’ deviant behaviors; and extended the scope of expectancy violation theory to the field of human resources.

Details

International Journal of Ethics and Systems, vol. 40 no. 1
Type: Research Article
ISSN: 2514-9369

Keywords

Article
Publication date: 31 October 2023

Grzegorz Zasuwa and Grzegorz Wesołowski

This study examines how potentially irresponsible banking operations affect organisational reputation. A moderated mediation model is applied to explain how major aspects of…

Abstract

Purpose

This study examines how potentially irresponsible banking operations affect organisational reputation. A moderated mediation model is applied to explain how major aspects of social irresponsibility affect the relationship between consumer awareness of allegedly irresponsible operations, blame and bank reputation. The empirical context is the Swiss franc mortgage crisis that affected the banking industry in most Central and Eastern European countries.

Design/methodology/approach

The research study uses data collected from a large survey (N = 1,000) conducted among Polish bank consumers, including those with mortgage loans in Swiss francs. To test the proposed model, the authors use Hayes' process macro.

Findings

The findings show that blame fully mediates the effects of corporate social irresponsibility (CSI) awareness on organisational reputation. Three facets of social irresponsibility moderate this relationship. Specifically, the perceived harm and intentionality of corporate culprits cause people to be more likely to blame a bank for the difficulties posed by indebted consumers. At the same time, the perceived complicity of consumers in misselling a mortgage reduces the level of blame and its subsequent adverse effects on bank reputation.

Originality/value

Although a strong reputation is crucial in the financial industry, few studies have attempted to address reputational risk from a consumer perspective. This study helps to understand how potentially irresponsible selling of a financial product can adversely affect a bank's reputation.

Details

International Journal of Bank Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 31 January 2024

Munir A. Abbasi, Azlan Amran, Noor e Sahar and Chia Yon Lim

This study aims to investigate the effects of both internal and external corporate social irresponsibility (CSI) on organizational workplace deviant behaviours (OWDB) by using…

Abstract

Purpose

This study aims to investigate the effects of both internal and external corporate social irresponsibility (CSI) on organizational workplace deviant behaviours (OWDB) by using social cognitive theory. The study also explores the role of moral disengagement as a mediator in this relationship.

Design/methodology/approach

Data was collected from a sample of 321 individuals employed in the textile industry of Pakistan. The study used partial least square-structural equation modelling (PLS-SEM) to estimate the relationships within the model.

Findings

The findings indicate that both internal and external CSI have a positive impact on moral disengagement. Secondly, moral disengagement drives OWDB positively. Thirdly, moral disengagement is a significant mediator that mediates between both internal and external CSI and OWDB positively.

Practical implications

This research offers novel perspectives to organizational leaders, highlighting the significance of addressing CSI in conjunction with sustainability endeavours. It is imperative for business managers to prioritize the morality of their employees.

Originality/value

This study’s novelty lies in its confirmation of the mediating role of moral disengagement in the relationship between internal and external CSI and OWDB.

Details

International Journal of Ethics and Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9369

Keywords

Open Access
Article
Publication date: 30 October 2023

Grzegorz Zasuwa

This study aims to outline the role of causal attributions in consumer responses to irresponsible corporate behaviour. Specifically, this paper presents a moderated mediation…

Abstract

Purpose

This study aims to outline the role of causal attributions in consumer responses to irresponsible corporate behaviour. Specifically, this paper presents a moderated mediation model that explains how four types of perceived motives behind an irresponsible action shape corporate blame and word-of-mouth recommendations.

Design/methodology/approach

To test the hypotheses, the study uses data from a large survey assessing consumer reactions to a real case of corporate socially irresponsible behaviour in the banking industry.

Findings

The findings show that market-, unethicality- and rogue employee-driven attributions increase corporate blame and subsequently make people more likely to spread negative comments regarding the culprit. The difficult situation of a bank, as a perceived reason for wrongdoing, does not reduce the blame attributed to the irresponsible organisation.

Originality/value

The literature offers little information on the attributions people make following egregious corporate behaviour; however, such cognitions can play an important role in stakeholders’ reactions to wrongdoing. This study therefore extends the understanding of how irresponsibility attributions affect consumers’ responses to misbehaviour. Given the empirical context, the findings might be particularly important for communication and bank managers.

Details

Social Responsibility Journal, vol. 20 no. 5
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 23 August 2023

Grzegorz Zasuwa and Magdalena Stefańska

This paper has a twofold objective: (1) to examine how trust and distrust mediate the relationship between corporate social responsibility (CSR) and irresponsibility (CSI…

Abstract

Purpose

This paper has a twofold objective: (1) to examine how trust and distrust mediate the relationship between corporate social responsibility (CSR) and irresponsibility (CSI) perceptions and word of mouth recommendations; and (2) to show that moral norms moderate this mediating relationship.

Design/methodology/approach

Two experimental studies test the proposed model. Study 1 performs a single-factor experiment with three levels of corporate social responsibility (positive, neutral, negative) to test the mediation hypothesis (N = 180, 66% females, mean age = 22.3). Study 2 validates the mediation findings and examines the role of moral norms as moderators (N = 240, 50% females, mean age = 39.5).

Findings

Study 1 reveals that trust in the company partially mediates the effects of CSR on word of mouth (WOM) recommendations. Study 2 shows that consumers who adhere to higher moral standards follow distinct paths to negative WOM. Specifically, these consumers tend to spread negative comments when they expect the firm to behave irresponsibly. When unsure about future corporate behaviour, they are less likely to spread negative WOM.

Originality/value

This is the first study, to the authors' knowledge, to demonstrate how moral norms shape the effects of distrust in the corporate culprit on word of mouth recommendations. Accordingly, this research proves that conceptualising trust and distrust as separate constructs is useful in explaining consumer reactions to corporate social irresponsibility.

Details

Corporate Communications: An International Journal, vol. 28 no. 6
Type: Research Article
ISSN: 1356-3289

Keywords

Article
Publication date: 31 October 2023

Yongyuan Ma and Liguo Xue

Today's business world has been tarnished with numerous corporate irresponsible behaviors. It is thus of great importance for firms to carry out crisis management on the condition…

Abstract

Purpose

Today's business world has been tarnished with numerous corporate irresponsible behaviors. It is thus of great importance for firms to carry out crisis management on the condition of corporate social irresponsibility (CSI). Taking a contingent social media crisis management perspective, the authors aim to investigate the relation between CSI and firm value while also examining the moderating effects of being known in social media and generalized favorability in social media on this relation.

Design/methodology/approach

The empirical analysis conducted in the authors' research is based on a sample of 203 CSI events that occurred within publicly listed firms in China between 2011 and 2015. During the process of the authors' data collection, the authors initially verified the occurrence of CSI events in publicly listed firms by reviewing reports from reputable sources such as the 21st Century Business Herald and China Securities Journal. Subsequently, the authors collected the information pertaining to media coverage of these CSI events from the China Core Newspapers Full-text Database (CCND). Additionally, the authors obtained the remaining data from reliable sources such as Guba, the China Stock Market and Accounting Research Database (CSMAR) and the Chinese News Analytics Database (CNAD). To test the authors' hypotheses, the event study and multiple-regression analysis methods are adopted.

Findings

The authors find CSI generates a negative impact on firm value. Moreover, while being known in social media strengthens the negative relation between CSI and firm value, generalized favorability in social media weakens such relation.

Research limitations/implications

There are two streams of limitations that present promising avenues for future studies. Theoretically, the authors explore the mechanisms of CSI affecting firm value from a contingent social media crisis management perspective. Consequently, the authors' study does not encompass other potential mechanisms that may exist in the CSI–firm value linkage. In terms of empirical analysis, three issues arise that provide opportunities for further investigation. First, the authors have not accounted for all potential factors that could influence the link between CSI and firm value. Second, the authors' data are subject to limitation since it comes from manual collection. At last, because the authors confirm the sample based on the actual CSI events of publicly listed firms in China, the authors' sample size is small.

Originality/value

The authors' findings contribute to a more comprehensive understanding of the relation between CSI and firm value, as well as effective strategies for responding to CSI through the utilization of social media. Consequently, the authors' results have the potential to stimulate further research on the implications of CSI and the management of corporate crises through social media platforms.

Details

Management Decision, vol. 61 no. 12
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 4 August 2023

Anita Mendiratta, Shveta Singh, Surendra S. Yadav and Arvind Mahajan

This paper aims to assess the impact of corporate social irresponsibility (CSiR) media coverage on firm performance in India. It also analyses the effects of the environment…

Abstract

Purpose

This paper aims to assess the impact of corporate social irresponsibility (CSiR) media coverage on firm performance in India. It also analyses the effects of the environment, social, governance, and cross-cutting issues on firm performance.

Design/methodology/approach

The paper utilizes a sample of Indian firms from the Reprisk® database, amounting to 1,103 CSiR media coverage counts for 693 firm-year annual observations from 2008 to 2015. Further, Reprisk® segregates comprehensive CSiR coverage counts into the environment, social, governance and cross-cutting issues, for which the study runs the fixed effects panel regression. The study takes year-fixed effects, industry-fixed effects and clustered standard errors at the industry level.

Findings

The results of this study indicate that CSiR coverage negatively influences the firm performance of Indian firms. All issues, including social, governance and cross-cutting, except environmental issues, negatively impact firm value in India.

Practical implications

The involvement of firms in CSiR costs the firms financially and drives down firm performance. Social issues, including community and employee-related matters, governance issues and cross-cutting issues, also reduce the firm performance.

Social implications

The insignificant environmental impact on firm performance does not indicate that environmental issues have no detrimental consequences. Instead, it might need more stakeholders' awareness to understand the harmful implications of environmental issues on society.

Originality/value

Limited studies have explored CSiR in India so far. The study is novel as it analyses the Reprisk® database and its segregation of media counts into the environment, social, governance and cross-cutting issues in the Indian context.

Details

Journal of Advances in Management Research, vol. 21 no. 1
Type: Research Article
ISSN: 0972-7981

Keywords

Article
Publication date: 21 December 2023

Rick Hardcopf and Rachna Shah

This study investigates whether a firm that has experienced an environmental accident (EA) is less likely to conduct a product recall. If true, it would indicate that EAs tempt…

Abstract

Purpose

This study investigates whether a firm that has experienced an environmental accident (EA) is less likely to conduct a product recall. If true, it would indicate that EAs tempt firms to hide operational problems that need to be revealed. The logic is that both events are operational failures that damage a firm's reputation and share price. Following an EA, a firm may avoid a discretionary product recall to avoid providing additional evidence of operational incapability and social irresponsibility and thereby triggering amplified reputational and market penalties.

Design/methodology/approach

The dataset is compiled from several public and private sources and includes 4,355 product recalls, 153 EAs and 120 firms from the industries that often recall products, including automotive, pharma, medical device, food and consumer products. The study timeframe is 2002–2013. Empirical models are evaluated using hazard modeling.

Findings

Results show that EAs reduce the probability of a product recall by 32%, on average. Effect sizes are larger when accidents are more frequent or more severe and when recalls are less severe. Through post hoc analyses, the study finds support for the proposed mechanism that firms avoid recalls due to reputational concerns, provides evidence that EAs can have a lengthy impact on recall behavior, and shows that firms are more likely to avoid recalls managed by the CPSC and NHTSA than recalls managed by the FDA.

Originality/value

Prior studies in operations management (OM) have not examined the impact of one negative event on another. This study finds that EAs tempt firms to hide operational problems that need to be revealed. While recalling fewer defective products is of concern to consumers and regulators, should EAs influence a broader set of discretionary operational decisions, such as closing/relocating a production facility, outsourcing production or conducting a layoff, study implications increase significantly.

Details

International Journal of Operations & Production Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3577

Keywords

Content available
Article
Publication date: 23 November 2023

Martina Topic

209

Abstract

Details

Corporate Communications: An International Journal, vol. 28 no. 6
Type: Research Article
ISSN: 1356-3289

Article
Publication date: 5 July 2023

Brinda Sampat, Emmanuel Mogaji and Nguyen Phong Nguyen

FinTech offers numerous prospects for significant enhancements and fundamental changes in financial services. However, along with the myriad of benefits, it also has the…

1993

Abstract

Purpose

FinTech offers numerous prospects for significant enhancements and fundamental changes in financial services. However, along with the myriad of benefits, it also has the potential to induce risks to individuals, organisations and society. This study focuses on understanding FinTech developers’ perspective of the dark side of FinTech.

Design/methodology/approach

This study conducted semi-structured interviews with 23 Nigerian FinTech developers using an exploratory, inductive methodology The data were transcribed and then thematically analysed using NVivo.

Findings

Three themes – customer vulnerability, technical inability and regulatory irresponsibility – arose from the thematic analysis. The poor existing technological infrastructure, data management challenges, limited access to data and smartphone adoption pose challenges to a speedy integration of FinTech in the country, making customers vulnerable. The lack of privacy control leads to ethical issues. The lack of skilled developers and the brain drain of good developers present additional obstacles to the development of FinTech in Nigeria.

Research limitations/implications

FinTech operation in a developing country differs from that in developed countries with better technological infrastructure and institutional acceptance. This study recognises that basic banking operations through FinTech are still not well adopted, necessitating the need to be more open-minded about the global practicalities of FinTech.

Practical implications

FinTech managers, banks and policymakers can ethically collect consumer data that can help influence customer credit decisions, product development and recommendations using the mobile app and transaction history. There should be strict penalties on FinTech for selling customers’ data, sending unsolicited messages or gaining unnecessary access to the customer’s contact list. FinTech can offer to educate consumers about their financial management skills.

Originality/value

Whereas other studies have focused on the positive aspects of FinTech to understand client perceptions, this study offers new insights into the dark side of FinTech by analysing the viewpoints of FinTech developers. Furthermore, the study is based in Nigeria, an emerging economy adopting FinTech, adding a new dimension to the body of knowledge.

Details

International Journal of Bank Marketing, vol. 42 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

1 – 10 of 180