Sins of the Father's Firm: Exploring Responses to Inherited Ethical Dilemmas in Family Business

How do individuals respond when they perceive that their family business has been built upon unethical business conduct? Drawing on an expanded version of Hirschman's typology of generic responses to declining situations (Exit, Voice and Loyalty: Responses to Decline in Firms, Organizations, an...

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Veröffentlicht in:Journal of business ethics 2013-03, Vol.113 (2), p.297-315
Hauptverfasser: Litz, Reginald A., Turner, Nick
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container_title Journal of business ethics
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creator Litz, Reginald A.
Turner, Nick
description How do individuals respond when they perceive that their family business has been built upon unethical business conduct? Drawing on an expanded version of Hirschman's typology of generic responses to declining situations (Exit, Voice and Loyalty: Responses to Decline in Firms, Organizations, and States, Harvard University Press, Cambridge, MA, 1970), which includes responses of Exit, Voice, Loyalty, and Neglect, we offer a model that predicts probability of intended response behavior as a function of normative obligation (i.e., what one perceives ought to be done), managerial discretion (i.e., what one perceives can be done), and successor commitment to the firm. The model is tested on 124 business school students exposed to a scenario depicting an inherited ethical dilemma occurring in a family business from Arthur Miller's play All My Sons, and shows support for elements of the proposed framework. Most notable is a significant negative relationship between normative firm-directed commitment and the response of Neglect.
doi_str_mv 10.1007/s10551-012-1305-7
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source SpringerLink Journals; EBSCOhost Business Source Complete; JSTOR Archive Collection A-Z Listing; Education Source
subjects Business
Business and Management
Business Ethics
Business practices
Business structures
Education
Ethical dilemmas
Ethics
Family
Family firms
Fathers
Inheritance
Management
Modeling
Normativity
Philosophy
Quality of Life Research
Relational ethics
Social generations
Sociology
Sociology of work
Sociology of work and sociology of organizations
Sons
Students
Typology
Work organization. Working relations
title Sins of the Father's Firm: Exploring Responses to Inherited Ethical Dilemmas in Family Business
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