Normative myopia, executives' personality, and preference for pay dispersion: Toward implications for corporate social performance

Business and Society

Volumn 45, Issue 2, 2006, Pages 149-177

  Orlitzky, Marc ^a   Swanson, Diane L ^b   Quartermaine, Laura Kate ^c  

^a UNIVERSITY OF AUCKLAND   (New Zealand)

^b KANSAS STATE UNIVERSITY   (United States)

^c WESTPAC BANKING CORPORATION   (Australia)

Author keywords

Business and society; Compensation structure; Corporate social performance; Executive compensation; Normative myopia; Personality; Value neglect

Indexed keywords

EID: 33646684076     PISSN: 00076503     EISSN: 14678594     Source Type: Journal    
DOI: 10.1177/0007650306286739     Document Type: Article

References (115)

1. Baron, J. N., & Kreps, D. M. (1999). Strategic human resources: Frameworks for general managers. New York: John Wiley.
2. Baron, R., & Kenny, D. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51, 1173-1182.
3. Barrick, M. R., & Mount, M. K. (1991). The Big Five personality dimensions and job performance: A meta-analysis. Personnel Psychology, 44, 1-26.
4. Barrick, M. R., & Mount, M. K. (1996). Effects of impression management and self-deception on the predictive validity of personality constructs. Journal of Applied Psychology, 81, 261-272.
5. Beltramini, R. F., Peterson, R., & Kozmetsky, G. (1984). Concerns of college students regarding business ethics. Journal of Business Ethics, 3, 195-200.
6. Benhabib, S. (1987). The generalized and the concrete other: The Kohlberg-Gilligan controversy and feminist theory. In S. Benhabib & D. Cornell (Eds.), Feminism as critique (pp. 77-95). Minneapolis: University of Minnesota Press.
7. Beutel, A. M., & Marini, M. M. (1995). Gender and values. American Sociological Review, 60, 436-448.
8. Bird, F., & Waters, F. (1989). The moral muteness of managers. California Management Review, 32 (1). 73-88.
9. Blockson, L. C. (1998). "E for effort" or distributive justice? Business & Society, 37, 111-112.
10. Bloom, M. (1999). The performance effects of pay dispersion on individuals and organizations. Academy of Management Journal, 42, 25-40.
11. Bloom, M., & Michel, J. G. (2002). The relationships among organizational context, pay dispersion, and managerial turnover. Academy of Management Journal, 45, 33-42.
12. Borkowski, S., & Ugras, Y. J. (1998). Business students and ethics: A meta-analysis. Journal of Business Ethics, 17, 1117-1127.
13. Bretz, R. D., Jr., & Judge, T. A. (1994). The role of human resource systems in job applicant decision processes. Journal of Management, 20, 531-551.
14. Buss, A. H. (1989). Personality as traits. American Psychologist, 44, 1378-1388.
15. Byrne, B. M. (2001). Structural equation modeling with AMOS: Basic concepts, applications, and programming. Mahwah, NJ: Lawrence Erlbaum.
16. Cable, D. M., & Judge, T. A. (1994). Pay preferences and job search decisions: A person-organization fit perspective. Personnel Psychology, 47, 317-348.
17. Carroll, A. B. (1979). A three-dimensional conceptual model of corporate social performance. Academy of Management Review, 4, 497-506.
18. Carroll, A. B. (1987, March/April). In search of the moral manager. Business Horizons, pp. 7-15.
19. Carroll, A. B. (2000). A commentary and an overview of key questions on corporate social performance measurement. Business & Society, 39, 466-478.
20. Carroll, A. B. (2001). Models of management morality for the new millennium. Business Ethics Quarterly, 11, 365-371.
21. Cohen, D., & Prusak, L. (2001). How social capital makes organizations work. Boston: Harvard Business School Press.
22. Colvin, G., Harrington, A., & Hjelt, P. (2001, June 25). The great CEO pay heist. Fortune, 143, 64-70.
23. Costa, P. T., Jr., & McCrae, R. R. (1992). Revised NEO personality inventory (NEO-PI-R) and NEO five-factor (NEO-FFI) inventory professional manual. Odessa, FL: PAR.
24. Costa, P. T., Jr., Terracciano, A., & McCrae, R. R. (2001). Gender differences in personality traits across cultures: Robust and surprising findings. Journal of Personality & Social Psychology, 81, 322-331.
25. Craig, S. (2003, March 4). Wall Street pain stops at the top - CEOs of big financial firms still pull down fat paychecks despite a dismal environment. The Wall Street Journal, p. C1 - C1.
26. Crampton, S. M., & Wagner, J. S. (1994). Percept-percept inflation in micro-organizational research: An investigation of prevalence and effect. Journal of Applied Psychology, 79, 67-76.
27. Crystal, G. S. (1991). In search of excess: The overcompensation of American executives. New York: Norton.
28. De George, R. T. (1986). Business ethics (2nd ed.). New York: Macmillan.
29. Derry, R. (1989). An empirical study of moral reasoning among managers. Journal of Business Ethics, 8, 855-862.
30. Digman, J. M. (1990). Personality structure: Emergence of the five-factor model. Annual Review of Psychology, 41, 417-440.
31. Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20, 65-91.
32. Du, L., Bakish, D., & Hrdina, P. D. (2000). Gender differences in association between serotonin transporter gene polymorphism and personality traits. Psychiatric Genetics, 10, 159-164.
33. Epstein, E. M. (1987). The corporate social policy process: Beyond business ethics, corporate social responsibility, and corporate social responsiveness. California Management Review, 29 (3). 99-114.
34. Etzioni, A. (1988). The moral dimension: A new economics. New York: Free Press.
35. Eynon, G., Hill, N. T., & Stevens, K. (1997). Factors that influence the moral reasoning abilities of accountants: Implications for universities and the profession. Journal of Business Ethics, 16, 1297-1309.
36. Feenstra, R. C., & Hanson, G. (1996). Globalization, outsourcing, and wage inequality. American Economic Review, 86, 240-245.
37. Feingold, A. (1994). Gender differences in personality: A meta-analysis. Psychological Bulletin, 116, 429-456.
38. Ferraro, F., Pfeffer, J., & Sutton, R. I. (2005). Economics language and assumptions: How theories can become self-fulfilling. Academy of Management Review, 30 (1). 8-24.
39. Fiske, D. W. (1949). Consistency of the factorial structures of personality ratings from different sources. Journal of Abnormal Social Psychology, 44, 329-344.
40. Fox, J. (2002, June 24). Pay CEOs, yeah - but not so much. Fortune, 145 (13). 54-56.
41. Frank, R. H., Gilovich, T., & Regan, D. T. (1993). Does studying economics inhibit cooperation? Journal of Economic Perspectives, 7, 159-171.
42. Franke, G. R., Crown, D. F., & Spake, D. F. (1997). Gender differences in ethical perceptions of business practices: A social role theory perspective. Journal of Applied Psychology, 82, 920-934.
43. Frederick, W. C. (1987). Theories of corporate social performance. In S. P. Sethi & C. Falbe (Eds.), Business and society: Dimensions of conflict and cooperation. New York: Lexington Books.
44. Frederick, W. C. (1994). The virtual reality of fact vs. value: A symposium commentary. Business Ethics Quarterly, 4, 171-174.
45. Frederick, W. C. (1995). Values, nature, and culture in the American corporation. New York: Oxford University Press.
46. Frederick, W. C. (1998). Moving to CSR4: What to pack for the trip. Business & Society, 37, 40-59.
47. Gerde, V. W. (2001). The design dimensions of the just organization: An empirical test of the relation between organization design and corporate social performance. Business & Society, 40, 472-477.
48. Ghoshal, S. (2005). Bad management theories are destroying good management practices. Academy of Management Learning & Education, 4 (1). 75-91.
49. Gilligan, C. (1982). In a different voice. Cambridge, MA: Harvard University Press.
50. Goldberg, L. R. (1992). The development of markers for the Big-Five factor structure. Psychological Assessment, 4, 26-42.
51. Goldberg, L. R. (2001). International Personality Item Pool. Retrieved March 29, 2004, from http://ipip.ori.org/new_home.htm
52. Greening, D. W., & Turban, D. B. (2000). Corporate social performance as a competitive advantage in attracting a quality workforce. Business & Society, 39, 254-280.
53. Hofstede, G. (2001). Culture's consequences (2nd ed). Thousand Oaks, CA: Sage.
54. Hogan, R., Hogan, J., & Roberts, B. W. (1996). Personality measurement and employment decisions: Questions and answers. American Psychologist, 51, 469-477.
55. Hoppe, M. H. (2004). An interview with Geert Hofstede. Academy of Management Executive, 18, 75-79.
56. Jackall, R. (1988). Moral mazes: The world of corporate managers. New York: Oxford University Press.
57. Jaffee, S., & Hyde, J. S. (2000). Gender differences in moral orientation: A meta-analysis. Psychological Bulletin, 126, 703-726.
58. Jones, T. M. (1983). An integrating framework for research in business and society: A step toward the elusive paradigm. Academy of Management Review, 8, 559-564.
59. Jones, T. M., & Gautschi, F. H. II. (1988). Will the ethics of business change? A survey of future executives. Journal of Business Ethics, 7, 231-248.
60. Judge, T. A., & Cable, D. M. (1997). Applicant personality, organizational culture, and organization attraction. Personnel Psychology, 50, 359-394.
61. Juhn, C., Murphy, K. M., & Pierce, B. (1993). Wage inequality and the rise in returns to skill. Journal of Political Economy, 101, 410-442.
62. Kohlberg, L. (1981). Essays in moral development: The philosophy of moral development. New York: Harper & Row.
63. Kreitler, S., & Kreitler, H. (1990). The cognitive foundations of personality traits. New York: Plenum.
64. Law, K., Wong, C.-S., & Mobley, W. H. (1998). Toward a taxonomy of multidimensional constructs. Academy of Management Review, 23, 741-755.
65. Leana, C. R., & Van Buren, H. J. (1999). Organizational social capital and employment practices. Academy of Management Review, 24, 538-555.
66. Lifton, P. D. (1985). Individual differences in moral development: The relation of sex, gender, and personality to morality. Journal of Personality, 53, 306-334.
67. Loomis, C. J. (2001, June 25). This stuff is wrong. Fortune, 143 (14). 72-84.
68. May, D. R., & Pauli, K. P. (2002). The role of moral intensity in ethical decision making. Business & Society, 41, 84-117.
69. McClelland, J. N., & Rhodes, F. (1969). Prediction of job success for hospital aides and orderlies from MMPI scores and personal history data. Journal of Applied Psychology, 53, 49-54.
70. McCrae, R. R., & Costa, P. T., Jr. (1997). Personality trait structure as a human universal. American Psychologist, 52, 509-516.
71. Mishel, L., Bernstein, J., & Schmitt, J. (1996). The state of American workers. Challenge, 39 (6). 33-42.
72. Morgenson, G. (2005, October 9). Companies not behaving badly. The New York Times. Retrieved October 14, 2005, from http://www.nytimes.com
73. Nelson, A. K., & Buchholz, E. S. (2004). Adolescent girls' perceptions of goodness and badness and the role of will in their behavioral decisions. Adolescence, 38 (151). 421-440.
74. Nocera, J. (2002, June 24). System failure. Fortune, 145 (13). 62-65.
75. Noddings, N. (1984). Caring: A feminine approach to ethics and moral education. Berkeley: University of California Press.
76. Nunnally, J. C., & Bernstein, I. H. (1994). Psychometric theory (3rd ed.). New York: McGraw-Hill.
77. O'Reilly, C. A., Chatman, J. A., & Caldwell, D. (1991). People of organizational culture: A profile comparison approach to assessing person-organization fit. Academy of Management Journal, 34, 487-516.
78. Orlitzky, M., & Benjamin, J. D. (2001). Corporate social performance and firm risk: A meta-analytic review. Business & Society, 40, 369-396.
79. Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies, 24, 403-441.
80. Peabody, D., & Goldberg, L. R. (1989). Some determinants of factor structures from personality-trait descriptors. Journal of Personality & Social Psychology, 57, 552-567.
81. Perrow, C. (1986). Complex organizations: A critical essay (3rd ed.). New York: Random House.
82. Pfeffer, J. (1998). The human equation: Building profits by putting people first. Boston: Harvard Business School Press.
83. Quinn, J. B. (2002, June 10). In search of "clean" stocks. Newsweek, 139 (23). 43-43.
84. Rest, J. R. (1986). Moral development: Advances in theory and research. New York: Praeger.
85. Ruegger, D., & King, E. W. (1992). A study of the effect of age and gender upon student business ethics. Journal of Business Ethics, 11, 179-186.
86. Rynes, S. L., & Milkovich, G. T. (1986). Wage surveys: Dispelling some myths about the "market wage." Personnel Psychology, 39, 71-90.
87. Schein, E. H. (1992). Organizational culture and leadership (2nd ed.). San Francisco: Jossey-Bass.
88. Schwab, D. P., & Packard, G. L. (1973). Response distortion on the Gordon Personal Inventory and the Gordon Personal Profile in a selection context: Some implications for predicting employee tenure. Journal of Applied Psychology, 58, 372-374.
89. Sethi, S. P. (1979). A conceptual framework for environmental analysis of social issues and evaluation of business response patterns. Academy of Management Review, 4, 63-74.
90. Sharma, S. (1996). Applied multivariate techniques. New York: John Wiley.
91. Shaw, J. D., Gupta, N., & Delery, J. E. (2002). Pay dispersion and workforce performance: Moderating effects of incentives and interdependence. Strategic Management Journal, 23, 491-512.
92. Shaw, W. H., & Barry, V. (2004). Moral issues in business. Belmont, CA: Wadsworth.
93. Sloan, A. (2003, September 22). A case of big greed at the big board. Newsweek, 142 (12). 33-33.
94. Snarey, J. R. (1985). Cross-cultural universality of social-moral development: A critical review of Kohlbergian research. Psychological Bulletin, 97, 202-232.
95. Spector, P. E. (1987). Method variance as an artifact in self-reported affect and perceptions at work: Myth or significant problem? Journal of Applied Psychology, 72, 438-443.
96. Swanson, D. L. (1995). Addressing a theoretical problem by reorienting the corporate social performance model. Academy of Management Review, 20, 43-64.
97. Swanson, D. L. (1996). Neoclassical economic theory, executive control, and organizational outcomes. Human Relations, 49, 735-756.
98. Swanson, D. L. (1999). Toward an integrative strategy of business and society: A research strategy for corporate social performance. Academy of Management Review, 24, 506-521.
99. Swanson, D. L., & Frederick, W. C. (2005). Denial and leadership in business ethics education. In O. C. Ferrell & R. A. Peterson (Eds.), Business ethics: The new challenge for business schools and corporate leaders (pp. 222-240). New York: M.E. Sharpe.
100. Swanson, D. L., & Orlitzky, M. (in press). Executive preference for compensation structure and normative myopia: A business and society research project. In R. W. Kolb (Ed.), The ethics of executive compensation. Malden, MA: Blackwell.
101. Szwajkowski, E. (2000). Simplifying the principles of stakeholder management: The three most important principles. Business & Society, 39, 379-396.
102. Tajfel, H., & Turner, J. C. (1985). The social identity theory of intergroup behavior. In S. Worchel & W. G. Austin (Eds.), Psychology of intergroup relations (pp. 7-24). Chicago: Nelson-Hall.
103. Toffler, B. (1986). Tough choices. New York: John Wiley.
104. Triandis, H. C. (2004). The many dimensions of culture. Academy of Management Executive, 18, 88-93.
105. Useem, J., & Florian, E. (2003, April 28). Have they no shame? Fortune, 147 (8). 38-43.
106. Van Buren, H. J. (2005). An employee-centered model of corporate social performance. Business Ethics Quarterly, 15, 687-709.
107. Waddock, S. (2002). Leading corporate citizens: Vision, values, value added. Boston: McGraw-Hill.
108. Waddock, S. A. (2003, August). A radical agenda for business in society education. Paper presented at the Academy of Management, Social Issues in Management Division, Seattle.
109. Waddock, S. A., & Graves, S. B. (1997). Quality of management and quality of stakeholder relations: Are they synonymous? Business & Society, 36, 250-279.
110. Wartick, S. L., & Cochran, P. L. (1985). The evolution of the corporate social performance model. Academy of Management Review, 10, 758-769.
111. Weaver, G. R., & Treviño, L. K. (1999). Compliance and values orientated ethics programs: Influences on employees' attitudes and behavior. Business Ethics Quarterly, 9, 315-335.
112. Weber, M. (1947). The theory of social and economic organization (A. H. Henderson & T. Parsons, Trans.). New York: Oxford University Press. (Original work published 1922)
113. Weber, J., & Wasieleski, D. (2001). Investigating influences on managers' moral reasoning: The impact of context and personal and organizational factors. Business & Society, 40, 79-111.
114. Wood, D. J. (1991). Corporate social performance revisited. Academy of Management Review, 16, 691-718.
115. Wood, D. J. (2000). Theory and integrity in Business and Society. Business & Society, 39, 359-378.