Bolstering Managers’ Resistance to Temptation via the Firm’s Commitment to Corporate Social Responsibility. Abstract Behavioral ethics research has focused predominantly on how the attributes of individuals influence their ethicality. Rela- tively neglected has been how macro-level factors such as the behavior of firms influence members’ ethicality.

Bolstering Managers’ Resistance to Temptation via the Firm’s Commitment to Corporate Social Responsibility.
Abstract Behavioral ethics research has focused predominantly on how the attributes of individuals influence their ethicality. Rela- tively neglected has been how macro-level factors such as the behavior of firms influence members’ ethicality.

Cathy A. Beaudoin1 · Anna M. Cianci2 · Sean T. Hannah3 · George T. Tsakumis4

Received: 1 November 2016 / Accepted: 15 January 2018 © Springer Science+Business Media B.V., part of Springer Nature 2018

Abstract Behavioral ethics research has focused predominantly on how the attributes of individuals influence their ethicality. Rela- tively neglected has been how macro-level factors such as the behavior of firms influence members’ ethicality. Researchers have noted specifically that we know little about how a firm’s CSR influences members’ behaviors. We seek to better merge these literatures and gain a deeper understanding of the role macro-level influences have on manager’s ethicality. Based on agency theory and social identity theory, we hypothesize that a company’s commitment to CSR shifts managers’ focus away from self-interests toward the interests of the firm, bolstering resistance to temptation. We propose this occurs through self-categorization and collective identification processes. We conduct a 2 × 2 factorial experiment in which managers make expense decisions for a company with commitment to CSR either present or absent, and temptation either present or absent. Results indicate that under temptation, managers make decisions consistent with self-interest. More importantly, we find when commitment to CSR is present, managers are more likely to make ethical decisions in the presence of temptation. Overall, this research highlights the interactive role of two key contextual factors—temptation and firm CSR commitment—in influ- encing managers’ ethical decisions. While limited research has highlighted the positive effects that a firm’s CSR has on its employees’ attitudes, the current results demonstrate CSR’s effects on ethical behavior and imply that through conducting and communicating its CSR efforts internally, firms can in part limit the deleterious effects of temptation on managers’ decisions.

Keywords Corporate social responsibility · Temptation · Agency theory · Social identity theory

Introduction

With their control or influence over firms’ resources, man- agers’ unethical behavior can cause serious damage to organizations and potentially undermine the credibility of the financial system. The Association for Certified Fraud Examiners estimates that organizations lose approximately 5% of their annual revenues to various types of unethical behavior (e.g., asset misappropriation, corruption) (ACFE 2016). Several ethical failures involving international cor- porate scandals (e.g., Enron, VW, WorldCom) have resulted

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