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The paper aims to review the current state of the knowledge in an attempt to renew the interest in studying cognitive side of entrepreneurial ethics. The paper explores how the two streams of the literature — entrepreneurial cognition and entrepreneurial ethics — can possibly be integrated to guide future research. It also reviews the literature at the intersection of entrepreneurial cognitions and ethics. In doing so, the paper draws upon the extant literature to propose a set of questions for future research. Given the ethical implications of entrepreneurial behavior, this paper calls for future interdisciplinary work among entrepreneurial cognition scholars and business ethicists. The extant literature has generally focused on exploring the linkages among entrepreneurial cognitions, moral awareness, and moral judgment. It appears that relatively sparse attention is paid to explore the underlying cognitive patterns of an entrepreneur's actions pertaining to unethical business practices. This gap in the literature at the intersection of cognitions and ethics holds significant potential for future research. The proposed questions for future research include the following: How do cognitive biases and heuristics make an entrepreneur more susceptible to immoral judgment and reasoning? Which of the cognitive schemas is more likely to enhance moral intentions of entrepreneurs? How does distributed cognition shape socially responsible entrepreneurial behavior? Do entrepreneurs prefer rule-based or cost/benefit-based reasoning approach while making moral judgment? Which of the cognitive dimensions of socially responsible behavior — utilitarianism, just, and rights — is more common among entrepreneurs in developed countries in comparison to the entrepreneurs in developing and emerging economies? Do immigrant and/or ethnic entrepreneurs experience identity ambiguity and how does it relate to their unethical actions? How does the level of motivation affect an entrepreneur's reliance on heuristics rather than employing a systematic response to process information for ethical judgment? The proposed questions potentially offer insights into the way in which entrepreneurial cognitions and entrepreneurial ethics are interconnected. Entrepreneurship scholars may enrich their future research efforts by exploring how might insights from entrepreneurial ethics better inform the theoretical developments of entrepreneurial cognitions.
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This paper involves developing financial utility function that considers compliance to a certain qualitative characteristic and studies the impact on market equilibrium prices, should this criterion be Sharia compliance, fair-trade, environmental, social and governance principles or other ethical aspect. The goal is to show that individual utility can depend on other parameters than wealth and risk aversion, that therefore influence equilibrium market prices. This has been done by examining a possible utility function that takes into account individual sensitivity to the criterion and the intrinsic quality of compliance of this parameter. In order to prove the effectiveness of the proposed utility function, a simulation is made using agent-based approach with NetLogo platform. Upon examination of the impact of these parameters, it becomes clear that compliance to a qualitative characteristic would impact individual utility, supply and demand and result in equilibrium prices. This research highlights the importance of ethical arguments on individual decision making and how markets behave to this.
Understanding the ethical conduct of entrepreneurs is becoming increasingly important. Previous research has focused on the differences between entrepreneurs and managers in terms of their ethical values and behaviors and has investigated the antecedents of ethical behaviors. However, the question that whether entrepreneurs' ethical behaviors contribute to or hamper crucial aspects of new venture development, such as effective information acquisition, has remained unanswered. In this paper, we extend previous research on ethics and entrepreneurship by examining the impact of entrepreneurs' ethically suspect behaviors on information acquisition. Data from 139 entrepreneurs in China revealed the negative influence of ethically suspect behaviors on information acquisition. Further, this relationship is weakened by entrepreneurs' impression management tactics such as ingratiation and self-promotion. Implications of these findings for entrepreneurs and research at the interface of entrepreneurship and ethics are discussed.
The study aims to show how organisation's corporate ethics and social responsibility have influence on satisfaction with management and workers' attitudes and behaviours, especially in terms of organisational commitment (OC), innovative behaviour (IB) and performance. To systematise this reality, was used a self-reported sample of 223 Portuguese individuals. Structural equation modelling (SEM) was used to test the hypotheses. On the influence on satisfaction with management, the results showed that employees value the ethical component and also workforce social responsibility practices. Concerning OC, statistical evidence was found on the influence of satisfaction with management, ethical values and also workforce practices. It was also found that OC influences IB, and that this attitude had strong positive relationships with in-role performance. The empirical evidence suggests that organisation's corporate ethics and social responsibility are important to workers, so should be taken in account by managers and be subject of research by academics.
Entrepreneurial firms, which include the new-age start-ups and an emerging era of Small and Medium Enterprises (SMEs), have a central role to play in the economic growth of a country. Moreover, they have a central role in the economy and are imperative for employment generation and boosting technological advancement. It is well established that the management of established large-sized firms is significantly different from the challenges faced in the management of the small-sized entrepreneurial firms. Also, out of the numerous factors that influence the growth of SMEs and start-ups, one of the key differentiating factors is the leadership and the team/people that drive organisational growth. It has been seen that attracting, hiring and retaining key employees has always been challenging for any organisation, but in the case of small-scale entrepreneurial firms, it is even more daunting. In the context of this, the objective of the present chapter is to develop a framework for understanding the factors that affect employee retention in entrepreneurial firms using a systematic literature review. This chapter is an effort to find evidence from the past that indicates the factors affecting the employee retention in entrepreneurial firms. The findings from this study suggested that the HR policies can play the major role in retention practices.
This chapter explores the concepts of ethics, morals and social responsibility from organisational and societal perspectives covering both marketing that is focused on profit and marketing focused on bringing about social benefit. It discusses the meanings of social responsibility from different paradigmatic viewpoints and highlights the advantages and limitations of particular approaches. The chapter also considers some aspects of legal and regulatory frameworks and the potential for the development of codes of conduct for socially responsible for-profit marketing and social marketing. The discussion is positioned in a global context and is grounded by intercultural considerations and the diversity of ethical perspectives and norms across cultures.
This chapter unpacks the challenges faced in marketing sustainable fashion products within an industry fuelled by perpetual reinvention and growth. In recent decades, the fashion industry, but most notably fast fashion, has been mired in controversies ranging from environmental sustainability to the exploitation of cheap labour and disregard for workers’ health and safety. In parallel, increasing consumer demand has emerged for sustainable fashion options, which has led to a rapidly growing but diverging market. Adopting the three R’s — Reduce, Reuse and Recycle — this chapter explores the complexities involved in (1) the promotion of reduced consumption and demarketing, (2) the rising popularity of second-hand/vintage clothing, fashion libraries and the use of deadstock fabrics, and (3) recycling and upcycling. Barriers faced by marketers in promoting these more sustainable options are examined in considering paths forward to more sustainable practices.
Studies in information security policy compliance (ISPC) have used a number of behavioral theories from criminology, public health, and economics research to understand why individuals inside organizations commit security policy violations. These theories and empirical studies have broadened our understanding of some of the most prevalent and most difficult to address causes of information security incidents: non-malicious and malicious acts of policy violations. However, there are a number of issues with current studies and certain observations that may be fruitful to address, both for future research as well as for practitioners in organizations. In this chapter, I summarize some of the major behavioral frameworks used in ISPC research, indicating the main causal variables studied, the results of these investigations, as well as practical implications for organizations. Given that many of the studies that adopt a rational actor perspective and a cost–benefit calculus have not obtained consistent results, I suggest a set of variables and behavioral effects that highlight how individuals commit a plethora of non-rational acts in their day-to-day activities, and that this basic understanding of human biases may be fruitful in the information security context. Moreover, I point to methodological challenges regarding self-reported studies and the problem of non-malicious acts being mixed with malicious acts. Lastly, I identify ethical challenges in controlling employee behavior and the importance of understanding behavioral ethics in the information security context and organizational settings.
Gamification found acceptance as an intriguing business tool, especially in the marketing domain wherein game-like processes encourage human engagement with products or services. Several studies have highlighted various uses of gamified approaches not only in marketing but also in other domains. However, what is unexplored is the “dark side” of gamification for various users across various businesses. Though gamification incentivizes customers to repeatedly play for more chances to win, it is covert in nature, which can lead to stress or strain on individuals and may have a huge impact in terms of ethics, privacy, and health monitoring on the users. As gamification engages users on psychological levels, it can be associated with privacy invasion, social overload, and negative health conditions, thereby revealing shocking exhaustion scenarios. These have huge ethical, privacy, surveillance, and monitoring impacts as gamification is in a way manipulating human minds and continuously keeping people addicted to an opaque and nonexistent world for materialistic benefits and pleasure. This chapter explores the impact of the false transparency creation, unethical interactions, and worst-case scenarios that gamification can cause. This can have huge ramifications on human beings as gamified systems are really complex processes. This chapter further highlights that businesses need to understand their limitations before gamification becomes a more powerful psychological tool with serious consequences, including life-threatening ones, for its users.