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Does a company’s origin matter in moral judgment?

Author

Listed:
  • Hind Dib-Slamani

    (University of International Business and Economics [Beijing, China], MDI Algiers Business School)

  • Gilles Grolleau

    (CEREN - Centre de Recherche sur l'ENtreprise [Dijon] - BSB - Burgundy School of Business (BSB) - Ecole Supérieure de Commerce de Dijon Bourgogne (ESC), CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier)

  • Naoufel Mzoughi

    (ECODEVELOPPEMENT - Ecodéveloppement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

We blend the institutional and social identity theories to explain why foreign companies may endure a differentiated treatment compared to domestic ones. We extend the "liability of foreignness" (LOF) reasoning to the moral domain. Using a survey experiment in Algeria and France, we examine whether observers judge similarly or differently the same ethical and unethical practices by manipulating the doers' origin. Each treatment corresponds to a specific combination of company behavior (ethical vs. unethical) and company origin (no origin mentioned vs. domestic origin vs. foreign origin). We found that company origin matters for the ethical and some unethical scenarios. However, the foreignness consequences in the moral domain are not always consistent with a simplistic application of LOF-based arguments, leading us to consider a more complex picture than initially expected. In the Algerian sample, we found that foreign companies can even benefit from an advantage compared to domestic ones.

Suggested Citation

  • Hind Dib-Slamani & Gilles Grolleau & Naoufel Mzoughi, 2023. "Does a company’s origin matter in moral judgment?," Post-Print hal-03134106, HAL.
    • Handle: RePEc:hal:journl:hal-03134106
    DOI: 10.1177/2340944420981597
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-03134106
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    Keywords

    CSR; liability of foreignness (LOF); business ethics; moral judgment; experimental survey;
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