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U.S. CEOs of SBUs in Luxury Goods Organizations: A Mixed Methods Comparison of Ethical Decision-Making Profiles

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  • Jacqueline C. Wisler

Abstract

This study involved using a mixed method research design to examine the moral philosophy difference between the ethical decision-making process of CEOs in U.S.-led and non-U.S.-led within the luxury goods industry. The study employed a MANOVA to compare the ethical profiles between the two leader types (US and non-US led) and a phenomenological qualitative process to locate themes that give indication as to the compatibility of the luxury strategy values and practices with the principles and concepts of responsible leadership and conscious capitalism. As the luxury goods industry is facing the first slowdown since 2000, pressure to achieve sales targets in the U.S. to make up for losses in other markets will place these CEOs under extreme pressure from their headquarters. These leaders must possess the ethical decision-making capability to balance legal and moral dilemmas unique to multinational luxury goods organizations while delivering business results in a challenging environment. Results of the study show no evidence of difference in the ethical decision-making profiles between the two groups of leaders. The themes and emergent findings resulting from the qualitative analysis indicate a profound incompatibility between the values informing decision-makers using the luxury strategy and those employed by leaders operating within the principles and parameters of responsible leadership and conscious capitalism. Recommendations for future research include replicating the study with a larger sample, within a different geographic region or comparing leaders using the luxury strategy to those using conscious capitalism.

Suggested Citation

  • Jacqueline C. Wisler, 2018. "U.S. CEOs of SBUs in Luxury Goods Organizations: A Mixed Methods Comparison of Ethical Decision-Making Profiles," Journal of Business Ethics, Springer, vol. 149(2), pages 443-518, May.
    • Handle: RePEc:kap:jbuset:v:149:y:2018:i:2:d:10.1007_s10551-016-3069-y
    DOI: 10.1007/s10551-016-3069-y
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    3. Cuervo-Cazurra, Alvaro & Dieleman, Marleen & Hirsch, Paul & Rodrigues, Suzana B. & Zyglidopoulos, Stelios, 2021. "Multinationals’ misbehavior," Journal of World Business, Elsevier, vol. 56(5).
    4. Matej Drašček & Adriana Rejc Buhovac & Dana Mesner Andolšek, 2021. "Moral Pragmatism as a Bridge Between Duty, Utility, and Virtue in Managers’ Ethical Decision-Making," Journal of Business Ethics, Springer, vol. 172(4), pages 803-819, September.

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