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Organizations can motivate and coordinate work by socializing members to internalize organizational values. Existing theories posit that organizations achieve normative control through encapsulation, wherein peers and managers are primary sources of members' socialization. Drawing on ethnographic data from a not-for-profit school, I show how an external actor—beneficiaries—can become a source of normative control. I develop a multistage process that explains how teachers were socialized by parents, specifically by hearing these parent beneficiaries narrate their needs; engaging in collective storytelling about beneficiaries; experiencing episodic shaming centered on how teachers' daily performance met (or did not meet) beneficiaries' needs; and receiving validation from beneficiaries. Because these sequential stages establish beneficiaries as sources of control through social interactions set in specific times and places, and establish shared emotional states among organizational members, I theorize that these stages compose a ritual of integration. Although teachers initially arrived at the school with heterogeneous values, this ritual led many of them to internalize the organizational value of self-sacrifice. Teachers who were unmoved by parents' stories or came to see parents as exploitative did not internalize this value, and they tended to exit the organization. This study reveals how normative control can arise not only through socialization from in-group members but also from ritual interactions with and about beneficiaries. [ABSTRACT FROM AUTHOR]

This conceptual paper takes a dynamic view of culture to re-examine the tradeoffs between positive and negative aspects of guanxi in China. Because of cross-border collaboration and the wide use of the internet, Chinese employees are now exposed to more diverse values. Considering this cultural shift, the current paper discusses how the widely publicized negative aspect of guanxi relations in Chinese organizations can be mitigated. We suggest that employees are likely to withdraw from peer-to-peer guanxi relations that involve ethical concerns, and the likelihood and speed of this relation change would vary in part on the focal party's heritage of Confucian cultural values. This paper contributes to the literature by offering a dynamic approach to reconcile the controversy about peer-to-peer guanxi's role in Chinese organizations. This dynamic examination can invite further research on the complicated evolution of guanxi. [ABSTRACT FROM AUTHOR]

While the local government debts and local government financing vehicle (LGFV) bonds underwent reconstruction, in 2018 the new asset management regulation introduced some tighter measures to restrain shadow banking business and to mitigate the moral hazard issue that led to an ongoing boom of the LGFV market. This paper examines the impacts of the 2018 new asset management regulation on the credit spread of newly issued LGFV bonds and explores how the new asset management regulation affects the implicit guarantee of local governments in the LGFV market that has piled up systemic risks. We find that the release of the new asset management regulation has raised the credit spread of LGFV bonds at issuance. More importantly, the credit spread becomes increasingly sensitive to the local governments' financial capacity and credibility right after the introduction of the new asset management regulation. Therefore, investors are compensated by more risk premiums for holding LGFV bonds issued by the local governments with a weaker balance sheet. Consequently, the implicit guarantee problem in the LGFV bond market has worsened. [ABSTRACT FROM AUTHOR]

The underrepresentation of females on corporate boards is an important ethical issue that raises serious concerns about gender equality in senior management teams. Relying on a large sample of public firms from the Chinese market, we examine how social trust affects female board representation. We find that female board representation has a positive and significant relation with social trust. The effect is more pronounced in regions with a higher male-to-female sex ratio at birth, lower levels of education, lower GDP per capita, and in nonfamily firms. We also find that higher social trust is more likely to increase the number of non-independent female directors rather than independent ones. Further analyses show that increased female board representation is an important channel through which social trust improves corporate ESG ratings. Overall, our study suggests that social trust contributes positively to gender diversity in corporate management. [ABSTRACT FROM AUTHOR]

The way in which business ethics change over time will remain theoretically unclear unless we empirically reveal the temporal coevolution and coalignment among a changing environment, transitional institutions, strategic adaptations, and performance implications. To revitalize this coevolutionary perspective in business ethics research, in this special issue, we ask the following question: how do business ethics practices coevolve with a changing society and technology advancement as a result of the strategic choices of organizations in adapting to and shaping the environment? This special issue includes a collection of seven empirical studies of business ethics in China that differ in methodology and empirical context but collectively showcase the change in business ethics practices in an emerging economy and the processes underlying this change. Based upon the findings, we propose a conceptual model of the coevolution among business ethics practices, technological innovation, institutional transition and disruptive events; then, we pose questions for future research. [ABSTRACT FROM AUTHOR]

Multinational enterprises (MNEs) must often address moral conflicts given their responsibilities to meet conflicting demands from diverse stakeholders in transnational operations. Thus, this study constructs a comprehensive theoretical framework to understand the co-evolution between MNEs' ambidexterity strategies and moral conflicts by incorporating studies on institutional theory and strategic management. Through a longitudinal case study, we find that the balance of three dimensions of ambidexterity strategies influences the content and intensity of MNEs' moral conflicts by shaping the dual structure of stakeholders from home and host countries. Further, moral conflicts reshape the balance of ambidexterity strategies by the pressure of legitimacy and performance. Hence, to achieve better performance in transnational operations, MNEs must not only pay attention to the contingent ambidexterity strategies in dynamic environments, but also leverage the fitness among different dimensions of ambidexterity strategies. The findings provide implications for MNEs' transnational operations in the increasingly complex global business. [ABSTRACT FROM AUTHOR]

Industry reputation crises trigger producers and consumers to switch to certification as a signal of quality, especially in a weak institutional environment. In this paper, we posit that firm certification as a signaling mechanism involves the co-evolution of firms and consumers. We investigate the impact of industry reputation crises on firm certification as a response strategy. Feedback between producers and consumers causes producers to seek more certifications over time to differentiate themselves from competitors. However, the proliferation of certifications may dilute their credibility and reduce the effectiveness of the signal. Competition from imports that command higher trust from consumers exacerbates the problem in developing countries. We conduct empirical tests using firms in China's dairy industry after an industry reputation crisis. The findings support our hypotheses. This study provides insights on the certification mechanisms through which producers and consumers interact and the effect of institutional environments on this interaction. It also offers implications for managers on how to better respond to industry crises and for policymakers on how to manage the certification market. [ABSTRACT FROM AUTHOR]

The ethical controversies of firms in the sharing economy (SE) have recently drawn attention and caused debates. Ridesharing firms violate laws in many countries, but how they become legitimised remains underexplored. We apply the co-evolutionary perspective to examine how ethical controversies, legitimation and institutionalisation co-evolve in the ridesharing segment in the dynamic and changing institutional environment of China. We conducted a case study on Didi using firm-institution dual-level analysis based on stakeholder salience theory (SST) and the Orders of Worth framework. Our findings uncover ethical controversies among stakeholders with different levels of salience. We also reveal a dynamic interplay between the legitimacy work of Didi and the institutional-level market regulations on ridesharing firms. We develop a process model demonstrating the co-evolution among the changes in ethical controversies, new market category emergence and legitimation of ridesharing firms. These findings shed light on the application of the co-evolutionary perspective in analysing ethical controversies among multiple stakeholders' evolving interests in the SE context. [ABSTRACT FROM AUTHOR]

This study focuses on a traditional business ethics question and aims to use advanced techniques to improve the performance of corporate fraud prediction. Based on the GONE framework, we adopt the machine learning model to predict the occurrence of corporate fraud in China. We first identify a comprehensive set of fraud-related variables and organize them into each category (i.e., Greed, Opportunity, Need, and Exposure) of the GONE framework. Among the six machine learning models tested, the Random Forest (RF) model outperforms the other five models in corporate fraud prediction. Based on the RF model, we show that Exposure variables play a more important role in predicting corporate fraud than other input variables. These results highlight the importance of Exposure variables in corporate fraud prediction and promote the practical use of the machine learning model in solving business ethics questions. [ABSTRACT FROM AUTHOR]

Many companies have become aware of the importance of green creativity for sustainable development in the face of an increasingly critical global environmental situation. As employee's green creativity serves as an important foundation for corporate green creativity, we divide green creativity at the employee level into green incremental and radical creativity and construct a theoretical framework to assess the effects of corporate environmental ethics on these two types of green creativity. We distribute 195 valid leader–employee matching questionnaires to a variety of companies in China. We find that corporate environmental ethics has a positive effect on both incremental and radical green creativity. Furthermore, we discover that employee environmental commitment partially mediates the association between corporate environmental ethics and the two types of green creativity identified above. Sustainable human resources management (HRM) plays a moderating role between corporate environmental ethics and environmental commitment and moderates the indirect effects of corporate environmental ethics on the two types of green creativity through the promotion of environmental commitment. These findings suggest that companies should improve their corporate environmental ethics and sustainable HRM to encourage employees to enhance their own environmental commitment and, in turn, increase their green incremental and radical creativity levels. Our study has significant implications for enhancing business innovation and achieving sustainable development. Finally, we also address the theoretical and practical implications of our findings. [ABSTRACT FROM AUTHOR]

Corporate environmental responsibility, in response to the call for sustainable development, has become a critical ethical capital for companies to increase firm values and to obtain resources. However, this also gives rise to the concern of "greenwashing" that companies may selectively release environmental performance information to mislead the public and investors. Using the administrative environmental penalty data of all listed companies in China from 2017 to 2018, this research examines the corporate's greenwashing strategies. Our results show that greenwashing by listed companies in China is widespread, that only 13.6% environmental penalties have been disclosed by companies during our studied period. Companies choose to greenwash environmental performance mainly due to future demand for investment and financing, and companies with higher debt levels are found more likely to engage in greenwashing. Our findings suggest that it is not a rare practice for Chinese companies to risk their business ethics to pursue economic interests. It is necessary to enforce environmental information disclosure for listed companies in China and to increase their costs of unethical behaviors. [ABSTRACT FROM AUTHOR]

Drawing on ethnographic fieldwork on young white-collar women training bodies after work in Shanghai, I demonstrate that core muscles serve as visual indexes of discipline and hard-work, and that women create social spaces to collectively cultivate such dispositions. The socially sanctioned value of core muscles is connected to the discourse of 'having it all' increasingly popular among professional women in corporate, urban China. This paper elaborates on how bodily training transposes dispositions of work ethics beyond the workplace and on women's anxieties about their bodies at the intersection of productive and reproductive demands from the society. This paper builds on and critiques existing approaches to the body, and attends not only to the woman's body at the intersection of production and reproduction but also to the social aspect of bodily training in spaces between home and work. [ABSTRACT FROM AUTHOR]

This longitudinal case study identifies corporate governance responses in a Chinese state-owned enterprise facing institutional logic multiplicity and demands to shoulder sociopolitical responsibilities beyond economic responsibility. We find that overseas listing led to the incorporation of market logic into an enterprise in which party-state logic prevailed. The prioritization of sociopolitical responsibilities vis-à-vis economic responsibility has shifted through three phases, reflecting changes in institutional logic centrality amid changing politico-institutional and firm conditions. In response, the enterprise developed hybrid corporate governance structures based first on decoupling (2001–2011) and then on translation of a "foreign" corporate governance model to fit the domestic context (2012–2016) but has since sought to dehybridize by strengthening the state-controlled governance structure (2017–2019). Our study contributes to the varieties-of-capitalism approach to corporate governance and offers perspectives on institutional change, institutional logic, and hybrid organizing as well as the implicit ethical issue. [ABSTRACT FROM AUTHOR]

The study aimed to examine the effect of ethical leadership on employees' ethical work behavior. Furthermore, this study examined the mediating role of organizational commitment in the relationship between ethical leadership and employees' ethical work behavior. This study was conducted in a public-sector educational organization, and 500 questionnaires were distributed among targeted employees. Out of these, 400 valid responses were received from individuals working in the education sector in China. The findings showed a positive and significant impact of ethical leadership on employees' ethical work behavior. We found that organizational commitment also significantly mediates the relationship between ethical leadership and employees' ethical work behavior. The practical implications of the current study are useful for all organizations in the public sector. As ethical leadership is positively related to employees' work behavior, we recommend that organizations should develop and conduct such training programs to promote ethical work behavior. Leaders with a strong sense of ethics should be hired to encourage ethical work behavior within the organization. Furthermore, organizations can conduct management training programs, seminars, and workshops to encourage such behavior. Ethical behavior can be encouraged among employees by making it a clear requirement of their jobs. To achieve positive results, top management and leadership must educate employees on the value and importance of ethical behavior in the workplace. [ABSTRACT FROM AUTHOR]

Although corporate social performance has become an important measure of firm performance, there is little understanding about how firms respond to social performance feedback and how impression management may function as an important firm response to the feedback. Building upon and extending the literature on the behavioral theory of the firm and the strategic use of language, we examine how discrepancies between firms' social performance and their aspiration levels affect how firms use visual expressions in their CSR reports. In addition, we argue that the relationship between social performance discrepancies and the use of visual expressions in CSR reports is moderated by the extent to which firms conduct socially responsible activities to enhance legitimacy (reflected in the level of state ownership) and the extent to which firms engage in social activities to improve financial performance (reflected in foreign exposure). Using a sample of Chinese firms issuing CSR reports from 2009 to 2017, our empirical results provide strong support for these arguments. [ABSTRACT FROM AUTHOR]

The present study is aimed toward examining the attention received by research papers through social and electronic media in business research. In recent years, altmetrics has emerged as a complementary measure of the impact of research works besides citation analysis and bibliometrics. Using the altmetric attention score (AAS) the paper is the first research of its kind to shed light on the characteristics of 100 papers receiving the highest online attention. Various predictors of online engagement with articles in business research journals having an impact factor greater than 6 are discussed. Data was collected from the Dimensions.ai database and analyzed using R statistical software. It is found that the Journal of Business Ethics contributed maximum papers with the highest AAS followed by the Journal of Business Research. Using the Kruskal-Wallis rank-sum test it was determined that AAS in business research is dependent upon article type, topics, and journal of publication. Most of the papers in high impact factor business journals have been contributed by the authors of USA, UK and China. [ABSTRACT FROM AUTHOR]

The modern equity incentive system, which takes shareholders' interests first as the logic of governance, is based on material reward and short-term behavior, making it difficult to fundamentally build an economic interest community between enterprises and employees. How to avoid opportunistic behavior in equity incentive and stimulate employees' prolonged sense of organizational identity for enterprise sustainability is an important governance problem of modern enterprises. Based on the theory of social embeddedness, this study uses constructing grounded theory to explore the incentive theory of Qiaojiazihao, which means an exceptional family business owned and run in Shanxi Province but well known throughout China by a family surnamed Qiao in the Qing Dynasty. Qiaojiazihao takes the Confucian community thought as its foundation of social values, the Confucian concept of righteousness and interests as its business ethics, and the social factors, such as emotion and trust, are embedded in its economic organization. The labor sharing incentive thus forms the pathway to Geo-cultural community-social identity community-economic interests community. On this basis, it abstracts the internal mechanism of value generation-system coupling-interest strengthening as the logic of the communitybased labor sharing incentive of Chinese classical enterprises. This study deepens the understanding of the equity incentive system of Chinese classical enterprises, and is enlightening for revising the institutional logic of rational calculation of equity incentive based on material interests and improving corporate governance and employee shareholding methods from the perspective of social embeddedness. Therefore, this study is helpful to understand the role of employee incentive in securing for employment stability, comprehensiveness, and loyalty. [ABSTRACT FROM AUTHOR]

This study examines Chinese managers’ ethical evaluations of business-to-government guanxi in three regions of China. We conducted in-depth interviews with 20 senior Chinese managers in Beijing, Shanghai, and a county of Hebei, representing the urban northern, urban Southern, and rural northern regions of China, respectively. Based on the content analysis of these interviews, we found that the ethical evaluations of the managers in Beijing and Shanghai were more negative than those of the managers in Hebei. Our findings suggest that institutions play a more important role in shaping attitudes toward business-to-government guanxi than culture. [ABSTRACT FROM AUTHOR]

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Based on fieldwork carried out between 2016 and 2020 in three Chinese private companies, this article analyses the implementation of jiaohua, a key idea in Confucianism, within a "Confucian" company. In the first two sections, I analyse the main measures put in place by this type of company in their attempt to model and transform the behaviour and state of mind of their employees. I then study the way in which the educational vocation of these entrepreneurs fits into an educational project supported by the authorities at the national level, the aim of which is to create a morally sound citizen. Taking account of the current sociopolitical context in China, it might be considered that the commitment of certain private entrepreneurs to the promotion of a "Confucian education" reflects their contribution to the making of the modern citizen that the state desires, as well as their conviction that Confucianism offers resources that will enable the construction of a Chinese capitalist ethic. [ABSTRACT FROM AUTHOR]

This article locates one of the earliest charitable performances organized by prostitutes in 1907 in two cities, Shanghai and Beijing. It examines the ways in which each social group prostitutes in the name of jijie (prostitute circles)/huajie (circles of flowers), the male elites who helped them manage the performances, and the newspaper commentators who responded to these events in mass media reconceptualized the formation of their identities, the transformation of their businesses, and the negotiation of their relationship with the emerging society and the nation in the last decade of the Qing Dynasty (1644–1911). It argues that the charitable performances not only cultivated the civic virtue of every group involved within a newly restructured society that prioritized public morals and nationalistic devotion, they also promoted person gain in terms of social status and reputation. To a large extent, these performances help us understand such bigger issues as female sexuality, the prostitution business, elite dominance, and the reform of China within the larger urban, social, and ideological contexts. [ABSTRACT FROM AUTHOR]

We investigate whether air pollution harms business ethics from the perspective of earnings manipulation, which exerts a real effect on the economy and social welfare. Using a large sample and a comprehensive air quality index in China, we find that firms located in cities with more severe air pollution exhibit higher levels of discretionary accruals and are more likely to restate their financial statements, consistent with exposure to air pollution leading to more earnings manipulation. We further provide causal evidence using propensity score matching and a discontinuity regression design (RDD) exploiting the Qinling Mountain–Huai River Heating Policy Line, which exogenously leads to more air pollution to cities located immediately north of the Line but not those in the south. Our findings are robust to controlling for weather conditions and alternative samples and measures of air pollution and earnings manipulation. Overall, this study unveils how the ecological environment shapes business ethics. [ABSTRACT FROM AUTHOR]

This paper explores expatriates' ethical evaluations of and responses to guanxi in China through the lens of integrative social contracts theory. We conducted in-depth interviews with 14 expatriate managers who had spent, on average, 6.5 years working and living in China. Based on the content analysis of these interviews, we identified two different uses of guanxi: defensive and competitive. In general, the respondents found defensive guanxi moral in the Chinese context, while they considered competitive guanxi immoral. Based on our findings, we identified fair competition as the substantive hypernorm that governed most respondents' ethical evaluations of guanxi. The study has implications for all scholars who seek to utilize integrative social contracts theory to study the relationship between informal networks and corruption in developing countries. [ABSTRACT FROM AUTHOR]

It is generally accepted that cultural differences affect individuals' approaches to ethics, but how are the effects of culture manifested in perceptions of ethics? Further, how are cultural differences displayed in such ethics‐related actions as recommendations for business ethics education? Managers' responses from two starkly different cultures, China and Iceland, reveal, somewhat surprisingly, that one group's top business ethics concerns and business ethics education recommendations are at the bottom of the other group's rankings, and vice‐versa, yet each appears reasonable given the cultural background. This shows how nuanced the expression of cultural differences in the realm of ethics can be and how potential practical steps may rely on perceived "top" ethical issues. Together, these findings imply that there is more to explore about the role of culture on ethical reasoning and behavior than researchers have examined to date. We provide suggestions for further research and practical applications. [ABSTRACT FROM AUTHOR]

The purpose of this study is to explore whether a firm's unethical pro-organizational behaviour exerts a significant influence on its innovation strategy, particularly when the firm perceives business licencing and permits as an obstacle to its operations. Our study of the Chinese sample founds that unethical pro-organizational behaviour poses a positive effect on product innovation but no robustly significant impact on management innovation, and the obstacle caused by business licencing and permits plays a moderating role and can enhance the relationship between unethical pro-organizational behaviour and product innovation. [ABSTRACT FROM AUTHOR]

We formulate theory on the effect of board of director gender diversity on the broad spectrum of securities fraud, and generate three key insights. First, based on ethicality, risk aversion, and diversity, we hypothesize that gender diversity on boards can operate as a significant moderator for the frequency of fraud. Second, we advance that the stock market response to fraud from a more gender-diverse board is significantly less pronounced. Third, we posit that women are more effective in male-dominated industries in reducing both the frequency and severity of fraud. Results of our novel empirical tests, based on data from a large sample of Chinese firms that committed securities fraud, are largely consistent with each of these hypotheses. [ABSTRACT FROM AUTHOR]

A uniform is distinctive clothing worn by members of the same firm or organisation. In China, the market for professional garments is extremely large. However, as mandatory professional clothing, uniforms are frequently used, torn, and replaced, leading to textile waste. Further, the use of non-recyclable or non-biodegradable fabrics is bound to create greater environmental pressure. This study focuses on the textile material in the uniform market to analyse the motivational conditions behind sustainable fabric consumption. A total of 294 usable online surveys were obtained in 2019. Multi-item scales were adopted to measure five variables: corporate public image, corporate ethics, employee social status, environment awareness, and sustainable premium. Structural equation modelling was applied to test the hypothesises. Results reveal that the improvement of an employee's social status can effectively facilitate the probability of utilising eco-friendly fabrics. This study can thus help increase the usage of eco-friendly fabric in China's uniform market. [ABSTRACT FROM AUTHOR]

In this article I inquire into Confucian ethics from a non-ideal stance investigating the complex interaction between Confucian ideals and the reality of the modem workplace. I contend that even Confucian workers who regularly engage in social rites at the workplace have an internal, Confucian reason to appreciate the value of rights at the workplace. I explain, from a Confucian non-ideal perspective, why I disagree with the presumptuous idea that labor (or workplace) rights are necessarily incompatible with Confucian ideals and values. Specifically, I argue that if managers were "sages," the highest moral exemplars and authorities in the Confucian tradition, they would perceive that social rituals alone are often not a contextually intelligent and valued response for the development of intimate communities in the modem workplace. The sage perspective will lead Confucian managers to realize, from their own moral perspective, that they have good reason to balance rites with rights, so long as the adoption is extrinsically valuable and consistent with the Confucian ideal. This article contributes to the debates about Confucianism's compatibility with rights, helps Western human rights scholars better contextualize their arguments in Confucianism-influenced cultures, and contributes to the development of a Confucian or Chinese approach to business ethics. [ABSTRACT FROM AUTHOR]

This paper examines the changing dynamics of China's pharmaceutical industry since the early 1980s, focusing on the interplay between its developmental and social utilities. Two groups of pharmaceutical companies – globally established multinational companies and local Chinese companies – are compared in particular respect to business strategies, differentiated markets, and social and developmental contributions. Both Chinese and multinational companies have been required to establish and advance multi-dimensional corporate citizenship by respecting legal and regulatory codes, business ethics, developmental functions, and, not least importantly, corporate social responsibility pertaining to the particular public nature of pharmaceutical products. At least in public propaganda, the pharmaceutical industry's social function has been prioritized to its developmental utility. However, prevalent corporate opportunism, erratic administrative environments, as well as immediate developmental concerns have often coalesced to render the industry's corporate social responsibility frequently ineffectual. In particular, the developmental utility of local Chinese companies has often served a convenient pretext for ignoring their social responsibility. This was particularly evident when the Chinese authority dealt with serious corporate scandals such as the toxic capsule scandal in 2012 and the GlaxoSmithKline bribery case in 2013. [ABSTRACT FROM AUTHOR]

This article investigates how cultural businesses may facilitate contentious political activity in authoritarian contexts. Existing research in Western liberal democracies has shown the widespread political activism of actors in the cultural and creative industries. Whether such activism exists in authoritarian society, how it may differ in character and form, and what implications this will have for our understanding of relations between business, politics, and culture in authoritarian countries remain to be addressed. Drawing on data collected from 55 'independent bookshops' in China, I illustrate how these organisations perform 'cultural politics,' a type of political participation in which actors employ mainly symbolic means to express social and political concerns. The organisations' economic relations and conditions facilitate their efforts to create spaces in which contentious questions can be raised, sensitive topics explored, and alternative ideas expressed, despite the Chinese state's political regulation of the cultural sphere. The finding of the economic embeddedness of cultural politics sheds new light on our understanding of the political economy of cultural businesses in contemporary China. [ABSTRACT FROM AUTHOR]

The primary purpose of the paper is to examine how religiosity influences ethical attitude towards business and to compare and contrast this relationship for two populous Asian countries: India and China. The socio-cultural setting of both the countries resonates strongly weaved religious values and traditional ideology, though with a disparate political system. Using Attitude towards Business Ethics Questionnaire (ATBEQ) and 10-item Religious Commitment Inventory (RCI-10), data from 231, i.e., n(India)=122 and n(China)=109, respondents is collected, and research variables are compared based on gender and country of origin. Men demonstrate a higher ethical attitude towards business, higher religiosity, and higher score on ethical business philosophies than their women counterparts. Additionally, Indians score significantly higher than the Chinese on the three constructs. The results of regression analysis demonstrate that religiosity influences ethical attitude towards business for men, women, and Indians only. The relationship is not supported for China. The study further deconstructs religiosity into two subscales: intra (inner interpretive understanding) and inter (outer demonstrative action) religiosity to examine their influence on ethical attitude towards business. Individuals with higher intrareligiosity have a higher ethical attitude while no such relationship is evidenced for interreligiosity. Even further, items of ATBEQ are mapped to represent four ethical business philosophies and their differences compared on the basis of sub-constructs of religiosity. Variations in ethical business philosophies are shown by intra-religiosity only. Essentially, it is not about preaching religion, it is about practicing a religion that really matters. Freedom to practice religion, religion-based teaching, and ethical values embedded into business practices could help shape new virtue ethics as an inspiring point of reference and guidance for business leaders. [ABSTRACT FROM AUTHOR]

In this paper, we examine the relationship between water disclosure and firm risk. Specifically, based upon a panel dataset of 334 Chinese listed firms operating in highly water‐sensitive industries during 2010–2015, we use regression models to analyze the relationships between water disclosure and three types of firm risk (i.e., total risk, systematic risk, and idiosyncratic risk) and the moderating effects of media coverage on these relationships. Our empirical results show that (a) although there are no significant relationships between water disclosure and total risk and idiosyncratic risk, there is a significant negative relationship between water disclosure and systematic risk; (b) negative media coverage weakens the negative relationship between water disclosure and systematic risk, whereas nonnegative media coverage reinforces this negative relationship. Our cornerstone study examines the effect of a specific type of environmental disclosure (i.e., water disclosure) on firm risk, and our empirical findings are different from previous studies, which examined the effects of overall corporate social responsibility (CSR) disclosure on firm risk. We analyze the causes of the differences in detail. With this study, we make theoretical, empirical, and managerial contributions to CSR disclosure–firm risk research in business ethics literature. [ABSTRACT FROM AUTHOR]

Previous studies argue that religious firms are more ethical and thus engage less in accrual earnings management. At odds with the ethical view, we use a sample of Chinese listed firms and show that firms in religious regions use more real earnings management. We postulate that besides ethics, religion also proxies for risk aversion, which motivates firms to substitute accrual earnings management with real earnings management. Consistent with this view, we show that the positive (negative) association between religiosity and real (accrual) earnings management is more pronounced for firms with lower litigation risk and for firms with less reputable auditors. In addition, we use a mediation model introduced by Baron and Kenny (J Pers Soc Psychol 51(6):1173–1182, 1986) to show that religiosity affects earnings management through the channel of risk aversion. We conclude that firms choose real earnings management over accrual-based earnings management because of risk aversion, rather than ethical reasons. [ABSTRACT FROM AUTHOR]

Confucius's teachings fall under four headings: "culture, moral conduct, doing one's best, and being trustworthy in what one says" (7/25). Trust or, more precisely, being trustworthy, plays a central role in the Confucian ethic. This paper begins by examining the Confucian concept of trustworthiness. The second part of the paper discusses how the ideal of trustworthiness makes itself felt in business practices within China. The paper concludes by raising and addressing several objections to the Confucian emphasis on trustworthiness. [ABSTRACT FROM AUTHOR]

This paper deals with the ethical perceptions of business people and the current state of business ethics in east China. After surveying 800 business people in 59 enterprises and interviewing 42 chief executive officers, chairs and senior managers among them, the following conclusions can be drawn: First of all, business ethics has become a new and popular topic in east China. Second, quite a lot of business people are pessimistic about the ethical standards of their superiors and co-workers, and about the ethical climate of their enterprises. Third, more and more business leaders begin to realize the importance of business ethics. Finally, in east China, the establishment of the market economy and the improvement of business ethics will depend on each other In short, business people in east China have various ethical perceptions, and the current state of business ethics in east China is also complex and changeable. [ABSTRACT FROM AUTHOR]

This paper reports a phenomenological sub-study of a larger project investigating the way Hong Kong Chinese staff tackled their own ethical dilemmas at work. A special analysis was conducted of eight dilemma cases arising from a request by a boss or superior authority to do something regarded as ethically wrong. In reports of most such cases, staff expressed feelings of contractual or interpersonally based obligation to obey. They sought to save face and preserve harmony in their relationship with authority by choosing between "little potato" obedience, token obedience, and undercover disobedience. Only where no such obligation existed was face in relation to authority unimportant, and open disobedience chosen. In Kohlbergian terms, ethical reasoning at the conventional stages (three and four) predominated in dilemmas of obedience. Findings imply that if corruption were to originate at the top, codes of conduct recently introduced into Hong Kong may be of limited effect in stalling it. [ABSTRACT FROM AUTHOR]

If market transactions are optimal, why do so many transactions occur within firms themselves? Ronald H. Coase explains this phenomenon by arguing that market transaction costs differ from intra-company transaction costs and that clear intra-intra-firm property rights have the effect of reducing transaction costs. But what exactly are the relevant transaction costs, and what factors determine them? Oliver Hart argues that market contracts are incomplete, and that the key to improving efficiency is putting the power to deal with these unspecified circumstances into the hands of owners within the same entity.In this paper, I argued that, the development of the theory and practice of business ethics as well as China's innovative practice in recent decades provide a new perspective, one that is especially relevant to the issues raised by Case and Hart and that bear directly on the reform of China's state-owned enterprises. [ABSTRACT FROM AUTHOR]

China's current economic transition policies focus on shifting from export‐driven manufacturing towards high‐end, high‐tech research and development (R&D), and domestic consumption. Since the early 2000s the government has issued a series of policies and guidelines to encourage innovation. Both in‐house R&D investment and the number of patent grants/applications have seen considerable growth in recent years. More specifically, industry‐funded R&D was responsible for more than three quarters of total in‐house R&D investment. Despite the rapid growth in R&D expenditure and the number of patents, China's corporate innovation still faces many obstacles and challenges. To further stimulate corporate innovation, the government may need to create an environment of fair competition for domestic enterprises, encourage the growth of institutional investors and their active participation in corporate governance, and improve the efficiency of financial systems. The experience of China in promoting innovation provides policy approaches and implications from which other emerging economies can learn. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the effect of product market competition on firms' unethical behavior (FUB) in the Chinese insurance industry and to further explore the boundary conditions of the main effects. On the basis of China's commercial foundation, the study constructs a conceptual framework of FUB by drawing from the perspective of horizontal competition. Design/methodology/approach: Data were collected from 52 property insurance firms at the branch level observed over the six-year period, 2011-2016. Within this framework, market power and market concentration were used to describe product market competition at firm and industry levels, respectively. The moderating effect of market munificence was analyzed to reveal the theoretical boundaries of the main effect. By drawing upon cost–benefit analysis and social network theory, the study used negative binomial model and Poisson model to quantitatively examine the relationship. Findings: The relationship between product market competition and FUB is curvilinear. Especially at the firm level, market power exhibits a U-shape relationship with FUB; at the industry level, market concentration exhibits a U-shape relationship with FUB. In addition, market munificence positively moderates the impact of firm's market power on FUB, whereas, market munificence negatively moderates the impact of industrial market concentration on FUB. Research limitations/implications: This paper explored a new type of unethical behavior that concerns consumers or the third party by emphasizing horizontal competitive contexts; it also provides a better understanding of the FUB–financial performance relationship from the perspective of competition. The moderating effects suggest that when the cause of FUB is different (market power vs market concentration), firms may make opposite ethical choice. However, the sample is from a single industry; it will be fruitful to further verify these findings in other industries such as the manufacturing sector. Moreover, the definition of FUB is confined to explicit forms such as participation or collusion but there is no way to measure the implicit forms of FUB. Practical implications: First, the governance of FUB should not only focus on the firms themselves, but also take into account the industrial market structure. Second, proper use of governance measures for FUB can increase firms' benefits from "compliance with the law", enticing firms to decrease FUB. The third, firms with weak market positions, facing fierce competition, should not be involved in FUB for short-term benefit; indeed, a low-cost strategy can be adopted as the dominant competitive strategy. While, in cases of highly concentrated market structure, firms should strive to avoid involvement in FUB through collusion with other rivals. Social implications: As it is a very common phenomenon that firms in competitive relationships may adopt FUB toward third parties or consumers, this trend has become a hot topic in the economic and social development in China. The study's conclusions reveal that a more proactive and ambitious ethical decision is desirable for all kinds of firms; moreover, firms should make a rational choice between "short-term interest" and "long-term survival". When firms identify the compliance of business ethics as an opportunity to differentiate themselves and perceive the benefits of decreasing FUB as outweighing the costs, the level of FUB will be inhibited, and social welfare will increase. Originality/value: The primary contribution of this research resides in identifying product market competition as a previously unexplored predictor of FUB, thus revealing the dark side of product market competition. In addition, nonlinear relationships between product market competition and FUB indicate that situations of competition exert an important influence on FUB both at the firm and industry level. This paper's conclusion provides a more meticulous theoretical explanation for FUB. This research demonstrates that the traditional ethical framework is not sufficient to explain FUB in a horizontal competitive context. Indeed, resource constraints and competitive pressures should also be considered. [ABSTRACT FROM AUTHOR]

Despite its prevalence in emerging economies, everyday-life business deviance (EBD) and its antecedents have received surprisingly little research attention. Drawing on strain theory and the business-ethics literature, we develop a socio-psychological explanation for this deviance. Our analysis of 741 owners of Chinese small- and medium-sized enterprises (SMEs) suggests that materialism and trust in institutional justice affect EBD both directly and indirectly in a relationship mediated by the ethical standards of SME owners. These findings have important implications for researching deviant business behavior within SMEs. [ABSTRACT FROM AUTHOR]

Business ethics in China is highly politicized, both within China as well as on the global scene. Over the past years many issues of business ethics have arisen. It turns out that the Chinese often have a different set of ethical priorities with respect to the economy than do their Western counterparts. China possesses rich and well-developed ethical traditions that provide a meaningful basis for evaluating its own problems. This article reviews China's ethical heritage and, at the same time, takes note of Western ethical concerns of human rights, property and so forth that have been injected into the debate. The article further reviews the principal issues of ethical analysis and, within the context of China/U. S. inter-relations, suggests ethical paths to pursue on four levels: government to government, multinational corporations, interest groups and international fora, and individual initiatives and commitment. [ABSTRACT FROM AUTHOR]

While business ethics has generated a great deal of research internationally over the last few decades, academic reviews of the business ethics literature remain limited. Moreover, there has been little attempt to date to analyze this literature specifically in the Greater China region, which has been experiencing rapid socioeconomic growth and dynamic evolution of business ethics in recent decades. This paper addresses this research gap by undertaking a comprehensive and critical appraisal of the business ethics literature on Greater China. In particular, it maps out the existing research findings, identifies limitations in methodology, and suggests future directions for business ethics research in this region. The findings indicate that the scholarly interests cover 24 research themes, including corporate social responsibility and social performance; ethical beliefs, judgment, values, decision-making, and culture; workplace ethics and behavior; marketing ethics and consumer behavior; and sustainability. This review reveals a growing imbalance between empirical and conceptual/theoretical studies on business ethics. In addition, the published works covered in this review heavily rely on survey method and convenience sampling, with a predominant focus on a single individual level of analysis. Importantly, this study identifies four directions for future research: contextualized theoretical development, addressing multilevel research, developing research design tailored to the Chinese context, and ensuring more diversified and rigorous data collection. [ABSTRACT FROM AUTHOR]

Unethical behavior is under-examined in the workplace. To date, few studies have attempted to explore the antecedents of an employee’s ethical decisions, particularly with respect to unethical behavior and its effects. To capture an employee’s psychological perception of unethical behavior in the workplace, this paper integrates organizational factors (codes of conduct, likelihood of detection, and performance pressure) into the Theory of Reasoned Action. By conducting an empirical study in a Chinese firm, we found that codes of conduct and performance pressure have a significant influence on an employee’s attitude toward and social beliefs about unethical behavior. We also demonstrated that employees’ unethical behaviors affect the firm performance of an entrepreneurial venture. The insights gleaned from the findings on this Chinese company have a number of important implications for both research and practice. [ABSTRACT FROM AUTHOR]

With rapid growth in Far Eastern economies (in particular China’s), it is becoming imperative to understand the culturally driven ethical-value underpinnings of the management processes in this region of the world. In this study, we propose a broadened version of Hofstede’s and others’ conception of Confucian dynamics anchored in his teachings preserved in the Lunyu (or Analects), which form the foundation of individual-social moral interactions. Based on a content analysis of these Analects via a qualitative software, NVivo, we identified six work-based values (Leadership Attributes, Appropriate Conduct, Authority Protocol, Governance Policies, Long term Orientation and Collegiality and Teamwork) and six life-based values (Virtuousness and Appropriate Behavior, Handling Life’s Emotions, Learning and Teaching, Parent/Elder Relationship, Friendship and Worship) of the society, prescribed by Confucius in his Analects. These factors are further analyzed and mapped in the context of the three Confucian ethical dimensions (Yi or Righteousness, Li or Propriety, and Ren or Benevolence and Unbounded). The business implications of the results and directions for future research are finally discussed. [ABSTRACT FROM AUTHOR]

Despite the extensive research conducted on moral judgment, the role of moral foundations in moral judgment in business has largely been overlooked. Motivated by the increasing concern about the ethical issues observed in China, this study aims to examine the impact of moral foundations on Chinese managers’ moral judgment while simultaneously looking into the role of moral ideology and the level of managers’ moral development. A sample survey was conducted in Shanghai, China, which involved 451 practicing business managers who were pursuing their MBA degree in a nearby university at the time of data collection. Both structural equation modeling (SEM) and hierarchical regression were used in data analyses. The results reveal that individualizing moral foundations and moral idealism have significant positive impacts on moral judgment. Moreover, the findings indicate that moral relativism and levels of mangers’ moral development moderate the relationship between individualizing moral foundations and moral judgment with the impact of individualizing moral foundations being stronger when managers’ relativism is low rather high or when their moral development is high than it is low. The managerial implications of the research and future research direction are discussed. [ABSTRACT FROM AUTHOR]