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Emotional intelligence (EI) is thought to offer significant benefit to organizational productivity through enhanced employee performance and satisfaction, decreased burnout, and better teamwork. EI may also have implications for the incidence of counterproductive workplace behavior. Survey results suggest EI is a significant predictor of individuals’ ethicality and their perceptions of others’ ethicality. Further, EI explains incremental variance in perceptions of others’ ethics over and above that which is explained by individual ethicality. High EI employees may be more adept at interpreting the ethicality of others’ actions, which has positive implications for ethical decision-making. Implications for research and practice are discussed.

Jost et al. (2003) theorizes and finds that business students, on an average, hold a positive fair market ideology (FMI), which suggests that they believe in the power of market forces to reward ethical corporate behavior and punish unethical behavior; accordingly, they tend to make an implicit association between a company's financial performance relative to the stock market and the company's ethics. We suggest that audit education in professional skepticism and ‘red flag’ analysis will mitigate this implicit bias when a company's relative market performance is unusually distant from a referent benchmark, such as an industry average. In a between-participants experiment involving 94 non-audit and 94 audit business students, we measure their FMI, and examine how they perceive the ethicality of a company's management based on the referent direction (above or below the industry average) and referent magnitude (relatively close to or distant from the industry average) of the company's relative market performance. The results suggest that both non-audit and audit students indeed hold a positive FMI, and they ascribe favorable ethical perceptions to company performance that is relatively close to the industry average, irrespective of referent direction. When company performance is relatively distant from the industry average, neither group of students makes the implicit link. Overall, the findings do not indicate that audit education differentially affects business students’ perceptions of corporate ethics when a company's relative stock market performance deviates considerably from a referent benchmark.

An assessment of Axel Honneth’s reception and appropriation of Hegel’s theory of normative reconstruction as presented in his Freedom’s Right (Columbia University Press, 2014).

A comparative assessment of Honneth’s and Hegel’s approach to normative reconstruction focusing on three basic issues: general methodology, understandings of the logic and program of the Philosophy of Right, and analyses and assessments of modern market societies as detailed in Hegel’s account of civil society (bürgerliche Gesellschaft).

For Honneth, normative reconstruction consists in reworking modes of social rationality already realized in modern institutions. By contrast, Hegel is shown to advance an approach to reconstruction in which an account of social rationality is properly fashioned only in the reconstruction process itself. In this way Hegel is also shown to proffer an approach to normative reconstruction that is at once more robustly reconstructive and more robustly normative than is the case with Honneth.

The paper demonstrates the ongoing value of Hegel’s thought for social and political theory. It illuminates Hegel’s uniquely dialectical approach to immanent social critique, dedicated not only to explicating existing tensions and “bifurcations” (Entzweiungen) but – with the help of a distinctive account of Bildung (cultivation or formation) – to engaging those tensions and bifurcations in order to delineate the conditions for their constructive supersession. It also elucidates different ways in which critical social theorists, committed to notions of “immanent transcendence,” draw on the resources of market societies to mount normative challenges to the aporias of those societies.

Corporate reputation is a strategic asset leading to numerous positive firm-level outcomes. Motivated by the prediction that the translation of customer-based corporate reputation to customer-level outcomes (trust, customer–company identification, and word-of-mouth intentions) might be highly context-dependent, we investigate the moderating role of national culture (particularly, individualism–collectivism dimension) and individual trait (self-construal) in the association between reputational dimensions (product and service efficacy, market prominence, and societal ethicality) and their outcomes. Using survey data from two countries (US and India, N = 812), we estimate the effects of corporate reputation on focal outcomes, moderated by country as a proxy for individualism/collectivism and independent self-construal (IND)/interdependent self-construal (INTER). The results strongly suggest that when individual-level variables are taken into account, the country-level variable does not affect the translation of reputational dimensions to customer-level outcomes. Moreover, individuals high on IND are more responsive to utilitarian (egoistic) reputational dimensions of product and service efficacy, whereas individuals high on INTER are more sensitive to the group-oriented reputation for market prominence and society-oriented reputation for social ethicality. The reported findings have major implications for cross-country reputational research and global reputation management strategies.

In e-commerce, consumers have begun to rely on the opinions of fellow consumers who posted through online consumer reviews to a reputation management system. An ethical concern has arisen in the use and abuse of these new systems. We examine the underlying ethical issues that entrepreneurs are confronting in this time of surging e-commerce. Using 32 vignettes, one for each cross-section of our research construct framework, followed by two Likert scales for respondents to indicate their agreement with the action described from both the perspective of ethicality and professional acceptability, we received responses for 1,252 vignettes, which generated a dataset of 2,504 data points. The results of our pilot study suggest that the ethical considerations for business professionals conducting business online are more nuanced and complex than conventional wisdom on the subject might suggest. While 60 research subjects are small, the use of paired vignettes in our survey allowed us to measure at least 1,000 paired responses for each research construct. The results have the potential of revealing how young professionals have been conditioned by the prevalence of web-based interactions and the anonymity they afford participants, as well as the degree to which they rationalize the misrepresentation of information by business professionals for the purpose of manipulating consumers’ purchasing decisions in order to drive sales. If consumers’ trust in reputation management systems erodes, the result could be a collapse of the entire system as a meaningful source of information. We also demonstrate the tolerance of what is deemed ethical versus professionally acceptable with online business practices.

Earnings management is a common term in the academic community and is likely understood by managers and professional investors, but how the large community of non-professional investors interprets this term is less clear. We examine non-professional investors’ attitudes toward earnings management and their resulting investing behaviors using a 2 × 2 mixed design. We manipulate investor role (prospective vs current) between participants and the method of earnings management within participants. We believe that different investment goals (prevention vs promotion) between current and prospective investors should lead to different investing behaviors. Consistent with our expectations, we find that current investors are more likely to maintain an equity than prospective investors are to invest in the same opportunity. Further, the consistent link between investors’ attitudes and actual investment behavior is only present for prospective investors. The prevention goal drives the current investors to maintain their investment, while the prospective investors remain more objective and focus on a goal of promotion. Importantly, prior research examining investor attitude toward earnings management has failed to link investors’ attitudes with actual investing decisions; our study attempts to fill this void by examining attitudes toward earnings management as well as subsequent investment behavior.

This study examines the effects of incentive compensation and guanxi, a type of informal personal relationship between people, on the objectivity of Chinese internal auditors. Given that the objectivity of internal auditors is essential for promoting financial reporting quality, it is important to investigate the effectiveness of internal audit functions, especially in emerging markets where the corporate governance mechanisms designed to promote objectivity are less mature.

The research employs a 2 × 2 between participants experiment with 116 graduate accounting student participants.

After controlling for internal auditors’ ethicality, we find that close-guanxi between management and internal auditors and incentive compensation in the form of bonuses based upon meeting earnings targets both have the capacity to impair the objectivity of Chinese internal auditors. Participants were more tolerant of management’s attempts to manage earnings when there was close guanxi or bonus compensation. Further, compensation structure only influenced internal auditors’ support of management when guanxi was distant, but when there was close guanxi between internal auditors and management, internal auditors were unlikely to challenge management regardless of the compensation structure.