IDEAS home Printed from https://ideas.repec.org/p/ent/wpaper/wp42.html
   My bibliography  Save this paper

Behavioral Business Ethics as a Method for Normative Business Ethics

Author

Listed:
  • Pedro FrancŽs-G—mez
  • Lorenzo Sacconi

    (Department of Economics, Universitˆ of Trento)

  • Marco Faillo

    (University of Trento - Faculty of Economics)

Abstract

This paper aims at discussing the role of behavioral business ethics as a methodological approach that is valuable for the construction of a robust normative foundation for business ethics. In particular, we will focus on experiments Ðand, to a lesser extent, surveys, field research, and even the study of cognitive and neural mechanismsÐ as a research method suitable to improve our appraisal and knowledge of the prescriptive side of business ethics. We contend that there are two basic gains from the use of experimental methods in normative business ethics. First, we can improve the psychological realism of normative theory -this goes hand in hand with supporting the new paradigm of the organization, based on a more realistic view of human agency. Second, we can experimentally check some theoretical assumptions about moral reasoning, thus providing quasi-empirical support (or falsification) for particular normative theories.

Suggested Citation

  • Pedro FrancŽs-G—mez & Lorenzo Sacconi & Marco Faillo, 2012. "Behavioral Business Ethics as a Method for Normative Business Ethics," Econometica Working Papers wp42, Econometica.
  • Handle: RePEc:ent:wpaper:wp42
    as

    Download full text from publisher

    File URL: http://econometica.it/wp/wp42.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stringham, Edward Peter, 2011. "Embracing morals in economics: The role of internal moral constraints in a market economy," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1), pages 98-109.
    2. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
    3. Charness, Gary & Dufwenberg, Martin, 2003. "Promises & Partnership," Research Papers in Economics 2003:3, Stockholm University, Department of Economics.
    4. Stefano DellaVigna & John A. List & Ulrike Malmendier, 2012. "Testing for Altruism and Social Pressure in Charitable Giving," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(1), pages 1-56.
    5. Koning, Lukas & Dijk, Eric van & Beest, Ilja van & Steinel, Wolfgang, 2010. "An Instrumental Account of Deception and Reactions to Deceit in Bargaining," Business Ethics Quarterly, Cambridge University Press, vol. 20(1), pages 57-73, January.
    6. Hosmer, LaRue Tone & Kiewitz, Christian, 2005. "Organizational Justice: A Behavioral Science Concept with Critical Implications for Business Ethics and Stakeholder Theory," Business Ethics Quarterly, Cambridge University Press, vol. 15(1), pages 67-91, January.
    7. Falk, Armin & Fischbacher, Urs, 2006. "A theory of reciprocity," Games and Economic Behavior, Elsevier, vol. 54(2), pages 293-315, February.
    8. Wasieleski, David M. & Hayibor, Sefa, 2009. "Evolutionary Psychology and Business Ethics Research," Business Ethics Quarterly, Cambridge University Press, vol. 19(4), pages 587-616, October.
    9. Ernst Fehr & Klaus M. Schmidt, "undated". "Theories of Fairness and Reciprocity - Evidence and Economic Applications," IEW - Working Papers 075, Institute for Empirical Research in Economics - University of Zurich.
    10. Fischbacher, Urs & Gachter, Simon & Fehr, Ernst, 2001. "Are people conditionally cooperative? Evidence from a public goods experiment," Economics Letters, Elsevier, vol. 71(3), pages 397-404, June.
    11. Dewatripont,Mathias & Hansen,Lars Peter & Turnovsky,Stephen J. (ed.), 2003. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521818728.
    12. James Konow, 2009. "Is fairness in the eye of the beholder? An impartial spectator analysis of justice," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(1), pages 101-127, June.
    13. Marco Faillo & Stefania Ottone & Lorenzo Sacconi, 2008. "Compliance by believing: an experimental exploration on social norms and impartial agreements," Department of Economics Working Papers 0810, Department of Economics, University of Trento, Italia.
    14. McFerran, Brent & Aquino, Karl & Duffy, Michelle, 2010. "How Personality and Moral Identity Relate to Individuals’ Ethical Ideology," Business Ethics Quarterly, Cambridge University Press, vol. 20(1), pages 35-56, January.
    15. Dewatripont,Mathias & Hansen,Lars Peter & Turnovsky,Stephen J. (ed.), 2003. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521524131.
    16. Phillips, Robert, 2003. "Stakeholder Legitimacy," Business Ethics Quarterly, Cambridge University Press, vol. 13(1), pages 25-41, January.
    17. Lorenzo Sacconi & Marco Faillo, 2010. "Conformity, reciprocity and the sense of justice. How social contract-based preferences and beliefs explain norm compliance: the experimental evidence," Constitutional Political Economy, Springer, vol. 21(2), pages 171-201, June.
    18. Gary Charness & Martin Dufwenberg, 2006. "Promises and Partnership," Econometrica, Econometric Society, vol. 74(6), pages 1579-1601, November.
    19. Urs Fischbacher & Simon Gachter, 2010. "Social Preferences, Beliefs, and the Dynamics of Free Riding in Public Goods Experiments," American Economic Review, American Economic Association, vol. 100(1), pages 541-556, March.
    20. Abbink, Klaus & Irlenbusch, Bernd & Renner, Elke, 2000. "The moonlighting game: An experimental study on reciprocity and retribution," Journal of Economic Behavior & Organization, Elsevier, vol. 42(2), pages 265-277, June.
    21. Rosenthal, Sandra B. & Buchholz, Rogene A., 2000. "The Empirical-Normative Split in Business Ethics: A Pragmatic Alternative," Business Ethics Quarterly, Cambridge University Press, vol. 10(2), pages 399-408, April.
    22. Fort, Timothy L., 2000. "On Social Psychology, Business Ethics, and Corporate Governance," Business Ethics Quarterly, Cambridge University Press, vol. 10(3), pages 725-733, July.
    23. Sabine Frerichs, 2011. "False Promises? A Sociological Critique of the Behavioural Turn in Law and Economics," Journal of Consumer Policy, Springer, vol. 34(3), pages 289-314, September.
    24. Dewatripont,Mathias & Hansen,Lars Peter & Turnovsky,Stephen J. (ed.), 2003. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521818742.
    25. Dewatripont,Mathias & Hansen,Lars Peter & Turnovsky,Stephen J. (ed.), 2003. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521524117.
    26. Rupp, Deborah E. & Bell, Chris M., 2010. "Extending the Deontic Model of Justice: Moral Self-Regulation in Third-Party Responses to Injustice," Business Ethics Quarterly, Cambridge University Press, vol. 20(1), pages 89-106, January.
    27. Simon Gachter & Ernst Fehr, 2000. "Cooperation and Punishment in Public Goods Experiments," American Economic Review, American Economic Association, vol. 90(4), pages 980-994, September.
    28. Wempe, Ben, 2005. "In Defense of a Self-Disciplined, Domain-Specific Social Contract Theory of Business Ethics," Business Ethics Quarterly, Cambridge University Press, vol. 15(1), pages 113-135, January.
    29. Heugens, Pursey P. M. A. R. & Scherer, Andreas Georg, 2010. "When Organization Theory Met Business Ethics: Toward Further Symbioses," Business Ethics Quarterly, Cambridge University Press, vol. 20(4), pages 643-672, October.
    30. James Konow, 2003. "Which Is the Fairest One of All? A Positive Analysis of Justice Theories," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1188-1239, December.
    31. Garcia, Stephen M. & Bazerman, Max H. & Kopelman, Shirli & Tor, Avishalom & Miller, Dale T., 2010. "The Price of Equality: Suboptimal Resource Allocations across Social Categories," Business Ethics Quarterly, Cambridge University Press, vol. 20(1), pages 75-88, January.
    32. Bicchieri,Cristina, 2006. "The Grammar of Society," Cambridge Books, Cambridge University Press, number 9780521574907, January.
    33. Craig Smith, N. & Simpson, Sally S. & Huang, Chun-Yao, 2007. "Why Managers Fail to do the Right Thing: An Empirical Study of Unethical and Illegal Conduct," Business Ethics Quarterly, Cambridge University Press, vol. 17(4), pages 633-667, October.
    34. Amitai Etzioni, 2011. "Behavioural Economics: Next Steps," Journal of Consumer Policy, Springer, vol. 34(3), pages 277-287, September.
    35. Croson, Rachel & Konow, James, 2009. "Social preferences and moral biases," Journal of Economic Behavior & Organization, Elsevier, vol. 69(3), pages 201-212, March.
    36. Binmore, Ken & Shaked, Avner, 2010. "Experimental economics: Where next?," Journal of Economic Behavior & Organization, Elsevier, vol. 73(1), pages 87-100, January.
    37. Clavien, Christine & Klein, Rebekka A., 2010. "Eager For Fairness Or For Revenge? Psychological Altruism In Economics," Economics and Philosophy, Cambridge University Press, vol. 26(3), pages 267-290, November.
    38. Dewatripont,Mathias & Hansen,Lars Peter & Turnovsky,Stephen J. (ed.), 2003. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521818735.
    39. Dewatripont,Mathias & Hansen,Lars Peter & Turnovsky,Stephen J. (ed.), 2003. "Advances in Economics and Econometrics," Cambridge Books, Cambridge University Press, number 9780521524124.
    40. Sandberg, Joakim, 2008. "Understanding the Separation Thesis," Business Ethics Quarterly, Cambridge University Press, vol. 18(2), pages 213-232, April.
    41. Wempe, Ben, 2008. "Understanding the Separation Thesis: Precision after the Decimal Point?: A Response to Joakim Sandberg," Business Ethics Quarterly, Cambridge University Press, vol. 18(4), pages 549-553, October.
    42. Timo Tammi, 2011. "Contractual preferences and moral biases: social identity and procedural fairness in the exclusion game experiment," Constitutional Political Economy, Springer, vol. 22(4), pages 373-397, December.
    43. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
    44. Bishop, John Douglas, 2000. "A Framework for Discussing Normative Theories of Business Ethics," Business Ethics Quarterly, Cambridge University Press, vol. 10(3), pages 563-591, July.
    45. Binmore, Ken, 2005. "Natural Justice," OUP Catalogue, Oxford University Press, number 9780195178111, Decembrie.
    46. Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
    47. Mathias Dewatripont & Lars Peter Hansen & Stephen Turnovsky, 2003. "Advances in economics and econometrics :theory and applications," ULB Institutional Repository 2013/9557, ULB -- Universite Libre de Bruxelles.
    48. Steven Scalet, 2006. "Prisoner’s Dilemmas, Cooperative Norms, and Codes of Business Ethics," Journal of Business Ethics, Springer, vol. 65(4), pages 309-323, June.
    49. James Andreoni & John Miller, 2002. "Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism," Econometrica, Econometric Society, vol. 70(2), pages 737-753, March.
    50. De Cremer, David & van Dijk, Eric & Pillutla, Madan M., 2010. "Explaining Unfair Offers in Ultimatum Games and their Effects on Trust: An Experimental Approach," Business Ethics Quarterly, Cambridge University Press, vol. 20(1), pages 107-126, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barmettler, Franziska & Fehr, Ernst & Zehnder, Christian, 2012. "Big experimenter is watching you! Anonymity and prosocial behavior in the laboratory," Games and Economic Behavior, Elsevier, vol. 75(1), pages 17-34.
    2. Hoppe, Eva I. & Schmitz, Patrick W., 2011. "Can contracts solve the hold-up problem? Experimental evidence," Games and Economic Behavior, Elsevier, vol. 73(1), pages 186-199, September.
    3. Fischbacher, Urs & Fong, Christina M. & Fehr, Ernst, 2009. "Fairness, errors and the power of competition," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 527-545, October.
    4. Đula, Ivan & Größler, Andreas, 2021. "Inequity aversion in dynamically complex supply chains," European Journal of Operational Research, Elsevier, vol. 291(1), pages 309-322.
    5. Weimann Joachim, 2015. "Die Rolle von Verhaltensökonomik und experimenteller Forschung in Wirtschaftswissenschaft und Politikberatung," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(3), pages 231-252, October.
    6. Jacquemet Nicolas & Zylbersztejn Adam, 2013. "Learning, Words and Actions: Experimental Evidence on Coordination-Improving Information," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 13(1), pages 1-33, July.
    7. Casal, Sandro & Fallucchi, Francesco & Quercia, Simone, 2019. "The role of morals in three-player ultimatum games," Journal of Economic Psychology, Elsevier, vol. 70(C), pages 67-79.
    8. Simon Gaechter, 2006. "Conditional cooperation: Behavioral regularities from the lab and the field and their policy implications," Discussion Papers 2006-03, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    9. Ernst Fehr & John A. List, 2004. "The Hidden Costs and Returns of Incentives-Trust and Trustworthiness Among CEOs," Journal of the European Economic Association, MIT Press, vol. 2(5), pages 743-771, September.
    10. Dinky Daruvala, 2009. "Would The Right Social Preference Model Please Stand Up!," Post-Print hal-00744366, HAL.
    11. Dominique Demougin & Claude Fluet & Carsten Helm, 2006. "Output and wages with inequality averse agents," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(2), pages 399-413, May.
    12. Germán Reyes & Leonardo Gasparini, 2017. "Perceptions of Distributive Justice in Latin America During a Period of Falling Inequality," CEDLAS, Working Papers 0209, CEDLAS, Universidad Nacional de La Plata.
    13. Simon Cornée & Marc Jegers & Ariane Szafarz, 2018. "A Theory of Social Finance," Working Papers halshs-01717167, HAL.
    14. Eva I. Hoppe & Patrick W. Schmitz, 2013. "Contracting under Incomplete Information and Social Preferences: An Experimental Study," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(4), pages 1516-1544.
    15. Simon Cornée & Ariane Szafarz, 2014. "Vive la Différence: Social Banks and Reciprocity in the Credit Market," Post-Print CEB, ULB -- Universite Libre de Bruxelles, vol. 125(3), pages 361-380.
    16. Bogliacino, Francesco & Codagnone, Cristiano, 2021. "Microfoundations, behaviour, and evolution: Evidence from experiments," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 372-385.
    17. Lorenz Goette & David Huffman & Stephan Meier & Matthias Sutter, 2010. "Group Membership, Competition, and Altruistic versus Antisocial Punishment: Evidence from Randomly Assigned Army Groups," Working Papers 2010-24, Faculty of Economics and Statistics, Universität Innsbruck.
    18. Abeler, Johannes & Altmann, Steffen & Kube, Sebastian & Wibral, Matthias, 2006. "Reciprocity and Payment Schemes: When Equality Is Unfair," Ratio Working Papers 109, The Ratio Institute.
    19. Fehr, Ernst & Hoff, Karla, 2011. "Tastes, castes, and culture : the influence of society on preferences," Policy Research Working Paper Series 5760, The World Bank.
    20. Ponti, Giovanni & Carbone, Enrica, 2009. "Positional learning with noise," Research in Economics, Elsevier, vol. 63(4), pages 225-241, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ent:wpaper:wp42. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Matteo Rizzolli (email available below). General contact details of provider: https://edirc.repec.org/data/ecoetit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.