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.
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Acknowledgments
I would like to express my sincerest gratitude to Dr. Tom Kemp, whose unending patience and ongoing interest in the topic made the dissertation process a rewarding intellectual experience as it fostered enormous personal healing and growth. I further extend to my sister, Jamie Boles, the deepest appreciation for her ongoing, loving support for me during a difficult period, which offered the strength and stability needed to complete this work. I also wish to thank the interview participants who opened themselves to offer their personal experiences and perspectives on a complicated and often politically challenging industry. Their insights shed much-needed light on delicate topics, which may lead to evolution in a creative and powerful industry.
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Dedication I dedicate this work to my parents, Bruce and Gloria Kollath, each of whom provided deeply valuable core values and ethical principles for life, which prove more valuable with each passing year. Both Bruce and Gloria overcame significant personal challenges offering a role model for true strength and perseverance, which I drew upon throughout this dissertation process. They each, in their personal and unique way, were ever-present and supportive, providing guidance and encouragement along the way. My spirit fills with heartfelt gratitude to have the good fortune of their presence in my life to share in this accomplishment.
This manuscript is a Doctoral Dissertation Research submitted to the Graduate Faculty of Argosy University, Phoenix Campus College of Business in Partial Fulfillment of the Requirements for the Degree of Doctor of Education Organizational Leadership.
Appendices
Appendix 1: Eight Facets of Managerial Ethical Profile
Item | |
---|---|
Economic egoism | 1. Providing the highest economic return (profit) for the organization 2. Minimizing costs for the organization 3. Optimizing resources of the organization |
Reputational egoism | 4. Protecting the reputation of the organization 5. Being in line with the organizational mission |
Rule utilitarianism | 6. Not harming the clients 7. Respecting organizational rules and regulations that have been created for the greatest benefit for all stakeholders |
Act utilitarianism | 8. Creating the greatest overall benefit for the local community 9. Creating the greatest overall benefit for the wider community |
Virtue of self | 10. Being most in line with your core personal values 11. Being most in line with the person you want to be |
Virtue of others | 12. Respecting dignity of those affected by the decision 13. Being able to empathize with clients 14. Acting openly when making decision 15. Making ‘care for the sick’ paramount in determining decision alternatives |
Act deontology | 16. Giving the opportunity to all affected parties or their representatives to have input into the decision making process 17. Treating others as you want others to treat you 18. Treat people as ends not as means |
Rule deontology | 19. Ensuring that confidentiality is maintained at all times 20. Maintaining a fair process at all times 21. Ensuring that the organization ‘duty of care’ is maintained at all times |
Appendix 2: Permission to Use the Managerial Ethical Profile
Appendix 3: Demographic and Managerial Ethical Profile Survey Questions
Appendix 4: Informed Consent Releases
Informed Consent—Interview
This study is being conducted by Jacqueline Wisler who is a student working on a dissertation in the Graduate School of Business and Management at Argosy University-Online. This study is a requirement to fulfill the researcher’s degree and will not be used for decision-making by any organization.
The title of this study is U.S. CHIEF EXECUTIVE OFFICERS OF STRATEGIC BUSINESS UNITS IN GLOBAL LUXURY GOODS ORGANIZATIONS: A MIXED METHODS COMPARISON OF U.S. AND FOREIGN LED ETHICAL DECISION-MAKING PROFILES
The purpose of the study is to compare the ethical decision-making processes of U.S.-led and non-U.S.-led chief executive officers of strategic business units (SBUs) in global luxury goods organizations.
I have been asked to be a part of this study because I am considered to be or have been in a Chief Executive role in the last 3 years working in a United States (U.S.) based Strategic Business Unit of a Luxury Goods Organization.
A total of 12–20 people have been asked to participate in this study.
If I agree to be in this study, I will be asked to agree to this informed consent form, sign the document indicating my consent, then participate in a one-on-one telephone or videophone interview with the Principle researcher, Jacqueline Wisler.
This study will take between 15 and 30 min to complete.
The risks associated with this study are the time it takes to complete the interview and the remote possibility that the completion of the survey poses some threat to temporary increased stress levels.
The potential benefits of participation are: Participants may derive intrinsic rewards by being asked their thoughts and opinions on a subject for which they may have interest and appreciate an opportunity to offer their views. The questions could also prompt the participant to think more deeply about ethical decision-making. Potential benefits could also extend into the leadership identification and development within the luxury goods industry.
I will receive no monetary compensation for participating in the interview.
The information I provide will be treated confidentially, which means that nobody other than the Principal Researcher, Jacqueline Wisler, will be able to tell who I am.
The records of this study will be kept private. No words linking me to the study will be included in any sort of report that might be published.
The records will be stored securely and only the Principal Researcher, Jacqueline Wisler, will have access to the records.
I have the right to get a summary of the results of this study if I would like to have them. I can get the summary by contacting the Principal Researcher, Jacqueline Wisler.
I understand that my participation is strictly voluntary. If I do not participate, it will not harm my relationship with Argosy University—Online or Jacqueline Wisler. If I decide to participate, I can refuse to answer any of the questions that may make me uncomfortable. I can quit at any time without my relations with the university, job, benefits, etc., being affected.
I can contact Jacqueline Wisler at jwisler@aii.edu.edu or Dr. Thomas Kemp at tkemp@argosy.edu with any questions about this study.
I understand that this study has been reviewed and Certified by the Institutional Review Board, Argosy University—Online. For problems or questions regarding participants’ rights, I can contact the Institutional Review Board Chair, Dr. Nancy Hoover, at nhoover@argosy.edu.
I have read and understand the explanation provided to me. I have had all my questions answered to my satisfaction, and I voluntarily agree to participate in this study. By signing this form, I consent to participate in the study.
Informed Consent-Survey
Thank you for participating in our survey. Your input is valuable
This study is being conducted by Jacqueline Wisler who is a student working on a dissertation in the Graduate School of Business and Management at Argosy University-Online. This study is a requirement to fulfill the researcher’s degree and will not be used for decision-making by any organization.
The title of this study is U.S. CHIEF EXECUTIVE OFFICERS OF STRATEGIC BUSINESS UNITS IN GLOBAL LUXURY GOODS ORGANIZATIONS: A MIXED METHODS COMPARISON OF U.S. AND FOREIGN LED ETHICAL DECISION-MAKING PROFILES.
-
The purpose of the study is to compare the ethical decision-making processes of U.S.-led and non-U.S.-led chief executive officers of strategic business units (SBUs) in global luxury goods organizations.
-
I have been asked to be a part of this study because I am considered to be or have been in a Chief Executive role in the last 3 years working in a United States (U.S.)-based Strategic Business Unit of a Luxury Goods Organization.
-
A total of one hundred and fifty people have been asked to participate in this study
-
If I agree to be in this study, I will be asked to agree to this informed consent form, check the on-line box indicating my consent, then participate in an on-line survey administered via the U.S.-based research company SurveyMonkey.
-
This study will take between 4 and 8 min to complete.
-
The risks associated with this study are the time it takes to complete the survey and the remote possibility that the completion of the survey poses some threat to temporary increased stress levels.
-
The potential benefits of participation are: Participants may derive intrinsic rewards by being asked their thoughts and opinions on a subject for which they may have interest and appreciate an opportunity to offer their views. The questions/could also prompt the participant to think more deeply about ethical decision-making. Potential benefits could also extend into the leadership identification and development within the luxury goods industry.
-
I will receive no monetary compensation for participating in the survey.
-
The information I provide will be treated confidentially, which means that nobody including the Principal Researcher, Jacqueline Wisler, will be able to tell who I am by person or name unless I choose to reveal it.
-
The records of this study will be kept private. No words linking me to the study will be included in any sort of report that might be published.
-
The records will be stored securely and only the Principal Researcher, Jacqueline Wisler, will have access to the records.
-
I have the right to get a summary of the results of this study if I would like to have them. I can get the summary by contacting the Principal Researcher, Jacqueline Wisler.
-
I understand that my participation is strictly voluntary. If I do not participate, it will not harm my relationship with Argosy University—Online or Jacqueline Wisler. If I decide to participate, I can refuse to answer any of the questions that may make me uncomfortable. I can quit at any time without my relations with the university, job, benefits, etc., being affected.
I can contact Jacqueline Wisler at jwisler@aii.edu.edu or Dr. Thomas Kemp at tkemp@argosy.edu with any questions about this study.
I understand that this study has been reviewed and Certified by the Institutional Review Board, Argosy University—Online. For problems or questions regarding participants’ rights, I can contact the Institutional Review Board Chair, Dr. Nancy Hoover, at nhoover@argosy.edu
I have read and understand the explanation provided to me. I have had all my questions answered to my satisfaction, and I voluntarily agree to participate in this study. By checking the accept box on the survey, I consent to participate in the study.
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1.
I have read the statement above and consent to participate in the survey
-
Accept
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Do Not Accept
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Appendix 5: Quantitative Research Tables
Demographics
Descriptive Statistics
See Tables 26, 27, 28, 29, 30, 31, 32, 33.
Skewness and Kurtosis Statistics
See Tables 34, 35, 36, 37, 38, 39, 40, 41.
Multicollinearity
See Tables 42, 43, 44, 45, 46, 47, 48.
Kruskal–Wallis Tests
See Tables 49, 50, 51, 52, 53, 54, 55, 56.
Appendix 6: Quantitative Research Interview Questions
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1.
When you are protecting the reputation of the organization what are you protecting it from and what types of actions or decisions do you make to ensure this?
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2.
What does the phrase “optimizing organizational resources” mean to you and what types of actions and decisions does it entail?
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3.
What does the phrase “greatest overall benefit for the organization” mean to you, what does it look like?
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4.
What does the phrase “greatest overall benefit for the local community” mean to you/how do you define the local community?
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5.
What does the phrase “greatest overall benefit for the wider community” mean to you/how do you define the wider community?
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6.
What are your core personal values?
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7.
Describe how you interpreted “the person you would like to be when you answered question 14 on the survey.
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8.
How do you allow for others who will be impacted by a decision to have input into the decision-making process?
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9.
What does “ensuring you treat people as ends and not means” mean to you/how do you define that phrase?
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10.
How do you ensure there is fairness in your decision-making process?
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11.
What question should I have asked you that I did not?
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Wisler, J.C. U.S. CEOs of SBUs in Luxury Goods Organizations: A Mixed Methods Comparison of Ethical Decision-Making Profiles. J Bus Ethics 149, 443–518 (2018). https://doi.org/10.1007/s10551-016-3069-y
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DOI: https://doi.org/10.1007/s10551-016-3069-y
Keywords
- Moral philosophies
- Ethics
- Value
- Business ethics
- Ethical decision making
- Moral development
- Corruption
- Unethical and corrupt behavior causes
- Cross-cultural differences
- MNC characteristics
- Luxury goods
- The luxury strategy
- The luxury experience
- Anti-corruption legislation
- Leadership ethical leadership
- Responsible leadership
- Conscious capitalism