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How do organizations respond to negative feedback regarding their innovation activities? In this chapter, the authors reconcile contradictory predictions stemming from behavioral learning and from the escalation of commitment (EoC) perspectives regarding persistence under negative performance feedback. The authors core argument suggests that the seemingly contradictory psychological processes indicated by these two perspectives occur simultaneously in decision makers but that the design of organizational roles and reward systems affects their prevalence in decision-making tasks. Specifically, the authors argue that for decision makers responsible for an individual project, responses given to negative performance feedback regarding a project are dominated by self-justification and loss-avoidance mechanisms predicted by the EoC literature, while for decision makers responsible for a portfolio of projects, responses to negative performance regarding a project are dominated by an under-sampling of poorly performing alternatives that behavioral learning theory predicts. In addition to assigning decision-making authority to different organizational roles, organizational designers shape the strength of these mechanisms through the design of reward systems and specifically by setting more or less ambiguous goals, aspiration levels, time horizons of incentives provided, and levels of failure tolerance.

Research in psychology and accounting suggest that affect (client likeability) toward a person can impact human judgment, resulting in more favorable treatment for likeable than dislikeable individuals. This study investigates whether two debiasing mechanisms, justification and self-review, mitigate the impact of affect (client likeability) on fraud risk assessments. Consistent with prior research on nonfraud audit judgments, this study finds that in absence of any debiasing mechanism, inexperienced auditors are susceptible to affect biases in fraud judgments. Extending prior research, we find justification is not sufficient to mitigate likeability, but self-review is an effective mechanism to mitigate the effect of client likeability in a fraud judgment task. Supplemental findings indicate that general accounting experience, in itself, does not mitigate client likeability; however, the effectiveness of the self-review mechanism extends to these participants.

In this article, we make the point that managerial domination as described by pragmatic sociology is an appropriate notion to make sense of complex forms of domination in contemporary organizations. Based on Lemieux’s work on ‘grammars’, we complement approaches of complex domination put forward by pragmatic sociologists such as Boltanski and Thévenot. We illustrate these ideas by means of an ethnographic study of the financial intermediation industry. Our analysis sketches out an alternative conceptualization of power in such environments, and by so doing, helps us delineate the features that characterize complex financial domination. We conclude by arguing that this type of domination is the result of specific contradictions inherent to the grammars of financial intermediation.

This paper seeks to understand the role of financial accounting regulations in a less developed country in transition, Egypt. It explores the social, political as well as economic contexts that underlie the processes of setting the Egyptian Financial Accounting Regulations (EFAR) in a harmony with International Accounting Standards (IASs).

The paper is based on in‐depth interviews and an analysis of documents. It relies on Habermas' notions of society's lifeworld, institutional steering mechanisms and systems in order to link the changes in EFAR to the changes in the wider social, political and economic contexts wherein organizations operate. The paper also explores the role of EFAR, as “regulative” or “constitutive” steering mechanisms, throughout two longitudinal episodes; starting with the beginning of socialism and extending to liberalism.

The paper finds that the EFAR have had a constitutive tendency during the Egyptian transformation towards a market‐based economy. Although there are remarkable changes in political philosophy in Egypt, the regulators' motivations and the processes of the accountancy profession that mobilized the formulation of EFAR in harmony with IASs, those regulations were acted upon to constitute organizational members' values, norms and knowledge in order to overcome the persistence of the socialist accounting practices. The regulations were also aimed at enhancing professional conduct and, at same time, increasing organizational members' adherence to the processes of privatization as a part of a wider movement towards transparency, democracy, full disclosure and liberalisation.

The paper emphasises the interface between a macro social transformation and micro organizational responses in order to understand the role of EFAR. However, it does not stress how the actual implementation of those regulations is implicated at a micro organizational change level. Furthermore, the paper covers a timeframe – 1952 to 2000 – that extends from the start of socialism extending to liberalism. Although the IASs are now known as International Financial Reporting Standards (IFRS), the paper covers a period in which such IFRS were not applicable in Egypt.

The paper contributes to the understanding of the social, political as well as economic role(s) of financial accounting regulations in a transitional country during that country's transformation towards the market economy.

This paper aims to propose mechanisms of the dark side of interorganizational relationships from a social psychological perspective. The purpose is to understand the role of boundary spanners’ social psychological processes that may trigger the dark side effects.

Multple mechanisms are developed through three social psychological theories, namely, social identity theory, system justification theory and social learning theory.

Boundary spanners’ social psychological processes can trigger the dark side of interorganizational relationships via mechanisms such as excessive cooperation, reification, system justification and path dependence in learning.

This paper concludes with a discussion that offers a new perspective on research on dark side effects and the managerial implications of the present analysis.

This paper contributes to the current literature by extending the interpersonal social psychological processes that could explain the dark side of interorganizational relationships. This paper is a step forward to answer the calls for multilevel considerations of the dark side effects and inspire future research on the role of social psychological processes in dark side effects.

In the aftermath of the financial crisis, the influence of competitive compensation systems on employee risk taking has gained increasing attention. As the renouncement of such incentive schemes might entail severe disadvantages regarding employee motivation, standard setters have proposed adding nonmonetary instruments of control. This paper aims to examine the influence of two of the most common instruments: a risk-sensitizing code of conduct and justification.

A laboratory experiment with 136 business students is conducted to test the hypotheses and answer the research question. The presence and absence of a risk-sensitizing code of conduct and a justification system is manipulated between subjects. The experiment consists of ten rounds, with round as the third factor manipulated within subjects.

Consistent with the paper’s hypothesis and the underlying theory, both instruments are found to offset higher risk taking. The paper shows that the motivation of individuals triggered by justification depends on a risk-sensitizing code of conduct, and insights into the psychological mechanisms behind the findings are provided.

As justification is considered more costly than a risk-sensitizing code of conduct, establishing the latter instead of the former seems preferable in most situations. However, if organizational citizenship behavior is unlikely to evolve, justification can substitute it for managing employee risk taking.

This paper identifies the risk-sensitizing code of conduct as an informal instrument of control for managing risk taking. Prior research mainly focuses on potentially more costly formal instruments of control.

The purpose of this paper is to test the explanatory effects of the system justification theory on reactions to new employee hazing.

Three studies (N = 107, 121 and 128), all using experimental assignment, vignettes of workplace hazing and two-level repeated measures ANCOVA designs, with dispositional variables included as covariates and justification of workplace hazing processes as dependent variables, were conducted.

Onlookers are more likely to justify long-standing (cf. recently adopted) hazing systems and hazing systems used by highly cohesive (cf. loosely cohesive) teams, supporting the application of the system justification theory to workplace hazing reactions.

The use of vignette research and onlookers (cf. hazed employees) may limit inferences drawn about employee reactions in workplaces that use hazing.

Despite its negative associations, hazing at work persists, with 25 percent of current sample reported being hazed at work. The system justification theory, which the authors applied to hazing, offers an explanation for stakeholders’ willingness to sustain and perpetuate hazing, and onlookers’ seeming blind-spot regarding outrage over workplace hazing. This theory holds promise for combatting passive responses to workplace hazing.

This is the first paper to empirically test explanations for workplace hazing’s perpetuation, by applying the system justification theory to the social system of workplace hazing. Moreover, it is the first paper to offer empirical evidence of hazing’s prevalence across at least 25 percent of sampled industries and organizational rank.

This paper aims to address how adding food ingredients to a packaged base food affects consumers’ calorie estimation of the new augmented product.

The four performed experiments and analyses of variance demonstrate an underlying psychological mechanism, explained below.

Results show that the healthiness of the added food ingredient (AFI) does not matter if the base food is healthy, and consumers’ calorie estimates of the augmented packaged food product are accurate. When, however, the food base is unhealthy, and the AFI is healthy, consumers underestimate the new product calories. This underestimation effect increases further when the healthy ingredients multiply. This underestimation effect endures when these ingredients are presented in a visual form, but it becomes smaller when these ingredients are presented in a verbal form. A justification mechanism is relevant.

Further research should test across the broader range of the food product matrix. There is a great diversity of AFI presentations, and further research may deal with the impact of AFIs of these different forms on consumers’ calorie estimation and healthiness perceptions. Research may also test sensory-arousing mechanisms that can help understand how consumers perceive the calories of the augmented food.

The findings suggest that consumers should be cautious of the judgment bias caused by the presence of an AFI on food packages and raise their awareness regarding nutrition implications and dietary effects. From the perspective of food manufacturers, although adding healthy AFIs to unhealthy base foods may increase consumers’ purchase intention and bring higher profits, it may not be sustainable as a marketing strategy in the long term and has immediate ethical implications.

Policymakers should introduce voluntary schemes to monitor and restrict the improper presentation of AFIs, aiming to rule out the abuse of healthy AFIs on unhealthy packaged food.

This work offers three major original and valuable contributions. It explains the effects of AFIs on calorie estimation and consumer healthiness perceptions in a context not studied before, namely, packaged food products. Next, it advances the literature on consumer judgment error and heuristics concerning product package attributes. As adding ingredients is integral to product line extension decisions, the results also clarify how marketing can safeguard firm social responsibility in combating obesity.

This paper aims to investigate the mediating and moderating roles of mindfulness in explaining the influences of performance goal attributes (e.g. difficulty, specificity and performance pressure), moral justification and peer unethical sales behavior on unintentional unethical behavior in the sales context. In this study, goal attributes and peer unethical sales behavior are proposed to positively impact unethical selling behavior. Especially, mindfulness and moral justification are explored as mediators of these relationships. Moreover, mindfulness also moderates the influence of peer’s unethical sales behavior on moral justification.

A sample of 188 salespeople working in companies in Vietnam is included to test the conceptual framework. Partial least squares structural equations modeling and SmartPLS v3 were implemented to test the path model.

This study highlights the mediating and moderating roles of mindfulness in explaining unintentional unethical behavior. The findings indicate that sales performance goals negatively influence mindfulness and positively influence unethical behavior. In the mediating role, mindfulness mediates the relationships between goal attributes and moral justification. Further, moral justification also mediates the influence of mindfulness on unethical behavior. In the moderating role, mindfulness plays a significant impact on the positive relationships between peers’ unethical selling behavior and moral justification.

Data are collected from salespeople in Vietnam. Therefore, the results are limited.

While many organizations use goal-setting as a tool to promote employees’ performance, it is warned that goal variables (e.g. difficulty, specificity and performance pressure) may lead to unethical behavior. Interestingly, people may fail to notice moral dilemmas because of focusing on the goals. Furthermore, ethical erosion in organizations may spur unethical selling behavior. Therefore, salespeople sell unethically without intention to do so. Proposing mindfulness as self-regulation, these findings may explain the reasons people display unintentional unethical behavior. Therefore, it is crucial to set performance goals for employees not only to promote their performance but also to prevent unethical behaviors.

By focusing on the roles of mindfulness that foster unintended unethical practices, this study provides important implications for governments and policymakers. For example, governments may emphasize ethical codes to clearly definite which practices are unethical. Moreover, ethics training should be considered to enhance ethical cognition in people.

Emphasizing unintentional unethical selling behaviors in sales context, this study tests a research framework which highlights the roles of mindfulness in explaining the dark effects of performance goals on people’s cognition and behavior. Therefore, this paper contributes to a deeper understanding of ethical blind spots in people’s cognition.

Through an analysis of the leaders of the 1960s Student Nonviolent Coordinating Committee (SNCC) this paper highlights the importance of individual identity work, and argues for an expanded theoretical treatment of social movement identity processes that takes account of partial identity correspondence (a partial alignment between an individual identity and the movement identity) to include degrees of identity congruence. Actors can embrace a movement, but remain in a state of conflict regarding some dimensions of its identity. Extending James Jasper's ((1997). The art of moral protest: Culture, biography, and creativity in social movements. Chicago: The University of Chicago Press) identity classifications, the data suggest that participants engage in identity justification work when incongruence among personal identity (biographical), collective identity (ascribed, i.e. race, gender), and movement identities exist. This work may not reflect the organization's efforts to frame or reframe the movement identity. This study finds that individuals manage incongruence with organizational and tactical movement identities by employing three identity justification mechanisms: (1) personal identity modification of the movement's identity; (2) individual amplification of the common cause dimension of collective identity; and (3) individual amplification of the activist identity through pragmatic politics. Rather than dismantling the past, as Snow and McAdam ((2000). In: S. Stryker, T. J. Owens, & R. W. White (Eds), Self, identity, and social movements (pp. 41–67). Minneapolis: University of Minnesota Press) propose, actors incorporate their biographies as a mechanism to achieve feelings of community and belonging. It is not so much an alignment with the organization's proffered movement identity as it is a reordering of the saliency hierarchy of their identities. Unlike Snow and McAdam's conceptualization of identity amplification, the reordering of an identity hierarchy and the amplification of certain identities is precipitated by the actor's, not the organization's, efforts to align her/his personal identity, collective identity, and movement identities.