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"Gerechtigkeit"
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\Justice\ and \fairness\ are not the same thing
Organizational justice researchers tend to treat as synonyms the terms “justice” and “fairness”. We discuss different definitional arguments, concluding that these two concepts are distinct. Justice should be defined as adherence to rules of conduct, whereas fairness should be defined as individuals’ moral evaluations of this conduct.
Journal Article
Ethical Implications and Accountability of Algorithms
Algorithms silently structure our lives. Algorithms can determine whether someone is hired, promoted, offered a loan, or provided housing as well as determine which political ads and news articles consumers see. Yet, the responsibility for algorithms in these important decisions is not clear. This article identifies whether developers have a responsibility for their algorithms later in use, what those firms are responsible for, and the normative grounding for that responsibility. I conceptualize algorithms as value-laden, rather than neutral, in that algorithms create moral consequences, reinforce or undercut ethical principles, and enable or diminish stakeholder rights and dignity. In addition, algorithms are an important actor in ethical decisions and influence the delegation of roles and responsibilities within these decisions. As such, firms should be responsible not only for the value-laden-ness of an algorithm but also for designing who-does-what within the algorithmic decision. As such, firms developing algorithms are accountable for designing how large a role individual will be permitted to take in the subsequent algorithmic decision. Counter to current arguments, I find that if an algorithm is designed to preclude individuals from taking responsibility within a decision, then the designer of the algorithm should be held accountable for the ethical implications of the algorithm in use.
Journal Article
Negative Reviews, Positive Impact
This research documents how negative reviews, when perceived as unfair, can activate feelings of empathy toward firms that have been wronged. Six studies and four supplemental experiments provide converging evidence that this experienced empathy for the firm motivates supportive consumer responses such as paying higher purchase prices and reporting increased patronage intentions. Importantly, this research highlights factors that can increase or decrease empathy toward a firm. For instance, adopting the reviewer’s perspective when evaluating an unfair negative review can reduce positive consumer responses to a firm, whereas conditions that enhance the ability to experience empathy—such as when reviews are highly unfair, when the identity of the employee is made salient, or when the firm responds in an empathetic manner—can result in positive consumer responses toward the firm. Overall, this work extends the understanding of consumers’ responses to word of mouth in the marketplace by highlighting the role of perceived (un)fairness. The authors discuss the theoretical and practical implications of the findings for better management of consumer reviews.
Journal Article
Balancing the Scales of Justice: Do Perceptions of Buyers' Justice Drive Suppliers' Social Performance?
A major challenge for supply chain managers is how to manage sourcing relationships to ensure reliable and predictable actions of distant suppliers. The extant research into sustainable supply chain management (SSCM) has traditionally focused on the transactional and collaboration approaches through which buyers encourage suppliers to act responsibly. However, little eifort has been devoted to investigating the factors that underpin and enable effective implementation of these two approaches, or to exploring alternative approaches to help sustain an acceptable level of social performance from suppliers. Building on organisational justice theory, we developed a framework in which we propose that buyers' justice (i.e. distributive, procedural and interactional) as perceived by suppliers can serve as an alternative and complementary vehicle to the conventional sustainability governance approaches for driving the social justice exhibited by suppliers. The paper sheds new light on an alternative relational approach to help to restrain potentially harmful acts of suppliers. It provides a foundation for new research avenues in the SSCM context and supports more informed decision making by practitioners.
Journal Article
Justice and Corporate Governance: New Insights from Rawlsian Social Contract and Sen's Capabilities Approach
By considering what we identify as a problem inherent in the 'nature of the firm'—the risk of abuse of authority—we propound the conception of a social contract theory of the firm which is truly Rawlsian in its inspiration. Hence, we link the social contract theory of the firm (justice at firm's level) with the general theory of justice (justice at society's level). Through this path, we enter the debate about whether firms can be part of Rawlsian theory of justice showing that corporate governance principles enter the \"basic structure.\" Finally, we concur with Sen's aim to broaden the realm of social justice beyond what he calls the 'transcendental institutional perfectionism' of Rawls' theory. We maintain the contactarian approach to justice but introduce Sen's capability concept as an element of the constitutional and post-constitutional contact model of institutions with special reference to corporate governance. Accordingly, rights over primary goods and capabilities are (constitutionally) granted by the basic institutions of society, but many capabilities have to be turned into the functionings of many stakeholders through the operation of firms understood as post-constitutional institutional domains. The constitutional contact on the distribution of primary goods and capabilities should then shape the principles of corporate governance so that at post-constitutional level anyone may achieve her/his functionings in the corporate domain by exercising such capabilities. In the absence of such a condition, post-constitutional contacts would distort the process that descends from constitutional rights and capabilities toward social outcomes.
Journal Article
Fairness in Bankruptcies: An Experimental Study
The pari passu principle of awarding claimants proportionally to their pre-insolvency claims is the most prominent principle in the law of insolvency. We report from a lab experiment designed to study whether people find this principle a fair solution to the bankruptcy problem. The experimental design generates situations where participants work and accumulate claims in firms, some of which subsequently go bankrupt. Third-party arbitrators are randomly assigned to determine how the liquidation value of the bankrupt firms should be distributed between claimants. Our main finding is that there is a striking support for the pari passu principle. We estimate a random utility model that allows for the arbitrators to differ in what they consider a fair solution to the bankruptcy problem and find that about 85% of the participants endorse the proportional rule. We also find that a nonnegligible fraction of the arbitrators follow the constrained equal losses rule, while there is almost no support in our experiment for the constrained equal awards rule or other fairness rules suggested in the normative literature.
Journal Article
Three Paths to Feeling Just: How Managers Grapple with Justice Conundrums During Organizational Change
Managers tasked with organizational change often face irreconcilable demands on how to enact justice—situations we call justice conundrums. Drawing on interviews held with managers before and after a planned large-scale change, we identify specific conundrums and illustrate how managers grapple with these through three prototypical paths. Among our participants, the paths increasingly diverged over time, culminating in distinct career decisions. Based on our findings, we develop an integrative process model that illustrates how managers grapple with justice conundrums. Our contributions are threefold. First, we elucidate three types of justice conundrums that managers may encounter when enacting justice in the context of planned organizational change (the justice intention-action gap, competing justice expectations, and the justice of care vs. managerial-strategic justice) and show how managers handle them differently. Second, drawing on the motivated cognition and moral disengagement literature, we illustrate how cognitive mechanisms coalesce to allow managers to soothe their moral (self-) concerns when grappling with these conundrums. Third, we show how motivated justice intentions ensuing from specific justice motives, moral emotions, and circles of moral regard predict the types of justice conundrums managers face and the paths they take to grapple with them.
Journal Article
Warm Glow or Extra Charge? The Ambivalent Effect of Corporate Social Responsibility Activities on Customers' Perceived Price Fairness
Prior research has firmly established that consumers draw benefits from a firm's engagement in corporate social responsibility (CSR), especially the feeling of a \"warm glow.\" These benefits positively affect several desirable outcomes, such as willingness to pay and customer loyalty. The authors propose that consumers do not blindly perceive benefits from a firm's CSR engagement but tend to suspect that a firm's prices include a markup to finance the CSR engagement. Taking customers' benefit perceptions and price markup inferences into account, the authors suggest that CSR engagement has mixed effects on consumers' evaluation of price fairness and, thus, on subsequent outcomes such as customer loyalty. The authors conduct one qualitative study and four quantitative studies leveraging longitudinal field and experimental data from more than 4,000 customers and show that customers indeed infer CSR price markups, entailing mixed effects of firms' CSR engagement on price fairness. The authors find that perception critically depends on customers' CSR attributions, and they explore the underlying psychological mechanisms. They propose communication strategies to optimize the effect of CSR engagement on perceived price fairness.
Journal Article
From Reality to World. A Critical Perspective on AI Fairness
Fairness of Artificial Intelligence (AI) decisions has become a big challenge for governments, companies, and societies. We offer a theoretical contribution to consider AI ethics outside of high-level and top-down approaches, based on the distinction between “reality” and “world” from Luc Boltanski. To do so, we provide a new perspective on the debate on AI fairness and show that criticism of ML unfairness is “realist”, in other words, grounded in an already instituted reality based on demographic categories produced by institutions. Second, we show that the limits of “realist” fairness corrections lead to the elaboration of “radical responses” to fairness, that is, responses that radically change the format of data. Third, we show that fairness correction is shifting to a “domination regime” that absorbs criticism, and we provide some theoretical and practical avenues for further development in AI ethics. Using an ad hoc critical space stabilized by reality tests alongside the algorithm, we build a shared responsibility model which is compatible with the radical response to fairness issues. Finally, this paper shows the fundamental contribution of pragmatic sociology theories, insofar as they afford a social and political perspective on AI ethics by giving an active role to material actors such as database formats on ethical debates. In a context where data are increasingly numerous, granular, and behavioral, it is essential to renew our conception of AI ethics on algorithms in order to establish new models of responsibility for companies that take into account changes in the computing paradigm.
Journal Article