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Wage Cuts and Managers’ Empathy: How a Positive Emotion Can Contribute to Positive Organizational Ethics in Difficult Times

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  • Joerg Dietz
  • Emmanuelle Kleinlogel

Abstract

Using the lens of positive organizational ethics, we theorized that empathy affects decisions in ethical dilemmas that concern the well-being of not only the organization but also other stakeholders. We hypothesized and found that empathetic managers were less likely to comply with requests by an authority figure to cut the wages of their employees than were non-empathetic managers. However, when an authority figure requested to hold wages constant, empathy did not affect wage cut decisions. These findings imply that empathy can serve as a safeguard for ethical decision making in organizations during trying times without generally undermining organizational effectiveness. We conclude by discussing the implications of our research. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Joerg Dietz & Emmanuelle Kleinlogel, 2014. "Wage Cuts and Managers’ Empathy: How a Positive Emotion Can Contribute to Positive Organizational Ethics in Difficult Times," Journal of Business Ethics, Springer, vol. 119(4), pages 461-472, February.
    • Handle: RePEc:kap:jbuset:v:119:y:2014:i:4:p:461-472
    DOI: 10.1007/s10551-013-1836-6
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    Cited by:

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    2. Ali Raza & Muhammad Farrukh & Muhammad Khalid Iqbal & Muhammad Farhan & Yihua Wu, 2021. "Corporate social responsibility and employees' voluntary pro‐environmental behavior: The role of organizational pride and employee engagement," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(3), pages 1104-1116, May.
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    5. Qing Tian & Jennifer L. Robertson, 2019. "How and When Does Perceived CSR Affect Employees’ Engagement in Voluntary Pro-environmental Behavior?," Journal of Business Ethics, Springer, vol. 155(2), pages 399-412, March.
    6. Jochen Theis & Marvin Nipper, 2021. "The Impact of Executives’ Gender, Financial Incentives, and Shareholder Pressure on Corporate Social and Ecological Investments," Schmalenbach Journal of Business Research, Springer, vol. 73(3), pages 307-338, December.
    7. Pasricha, Palvi & Nivedhitha, K.S. & Raghuvanshi, Juhi, 2023. "The perceived CSR-innovative behavior conundrum: Towards unlocking the socio-emotional black box," Journal of Business Research, Elsevier, vol. 161(C).
    8. Gao, Ning & Jiang, Wei & Jin, Jiaxu, 2024. "Unravelling investors’ diverging responses to U.S. firms' global ESG incidents," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    9. Reeta Raina, 2022. "Moving Crisis to Opportunities: A Corporate Perspective on the Impact of Compassionate Empathic Behaviour on the Well-Being of Employees," International Journal of Global Business and Competitiveness, Springer, vol. 17(2), pages 239-255, December.

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