Experts Matter. Find Yours.

Ethics Quandary? Women in PR More Apt to Seek Allies Before Giving Execs Advice

Women in public relations are more likely than men to seek allies and form coalitions before they give ethics counsel to senior leaders, while men are more likely to rely on presenting research, according to a Baylor University study. The study also showed that while senior public relations executives in the study overall tend to use “rational approaches,” such as research, case studies and appeals about what is right and lawful, success depends on building relationships with colleagues in other departments so that they have backup when ethical issues arise. “A PR person can be the conscience, but are they listened to? Are they respected? Are they at the table?” one woman said. “You can be doing everything right, but if nobody is listening to you, it really doesn’t matter a whole lot. Except that you can sleep at night.” The study — “The Use of Influence Tactics by Senior Public Relations Executives to Provide Ethics Counsel” — is published in the Journal of Media Ethics. The article highlights the need for younger PR practitioners to seek out senior PR executives as mentors before and during confrontation of ethics issues, said lead author Marlene Neill, Ph.D., assistant professor of journalism, public relations and new media in Baylor’s College of Arts & Sciences and author of the book “Public Relations Ethics: PR Pros Tell Us How to Speak Up and Keep Your Job.” “What inspired us to conduct this research were findings from a study I conducted in 2016 with Millennials working in public relations,” Neill said. “Survey results indicated that Millennials did not feel prepared to provide ethics counsel, were unlikely to speak up and did not even expect to face ethical dilemmas. We decided to conduct this study to instruct them how to do this effectively based on the experiences of senior executives working in our industry.” Researchers conducted through in-depth interviews with an elite selection of 55 public relations executives, many of them with Fortune 500 companies. They included members of the *Public Relations Society of America (PRSA) College of Fellows and The Arthur W. Page Society, with the combined sample averaging 33 years in PR. They represented 19 states and industries including government, healthcare, telecommunications, financial services and energy. Interviewees discussed ways to exert influence, ethics training and whether they are of value as an ethics counselor. “Some see it as being of little use; some recommend the PR practitioner take a modest role in encouraging consideration of ethics among multiple leaders,” Neill said. But others felt strongly that they should be an “organizational conscience” when they think company actions might pose an ethical dilemma with troubling consequences. One reason to do so is that without “boat-rocking” with straightforward tactics   an organization, some may turn outside the company by whistleblowing or leaking information to stakeholders, media or government officials. “Our study found that building relationships was critical for practitioners to ensure that other executives would listen to and respect their counsel,” Neill said. “That doesn’t mean they always won the debate, but relationship building has to do with building respect and trust.” While the interviewees’ most common approach to influencing was rational, followed by coalition-building, “some said they relied on persistence and assertiveness if they felt an issue was so objectionable they could not stay silent,” Neill said. “A few people turn to ingratiation, such as flattery.” When it comes to differences in how genders approach the role of ethics counselor, one reason women may recruit allies is that they tend to be outnumbered by men in the boardroom, Neill said. One woman said that “Going in force can help your case. But sometimes it can backfire . . . you know, if somebody wants to kill the messenger. But if several people come to you with the same messaging, I think you take notice.” Another woman said that she was “reprimanded for being so forthright. So, I didn’t do it that way anymore.” Some women were wary of using emotional appeals. Because of stereotypes about women being emotional in the workplace, “I probably erred in the other direction,” one woman said. Men, meanwhile, were more likely to prefer informational sources of power such as research and case studies, Neill said. But both genders said they ask questions, discuss, listen, share alternatives or solutions and recommend. A few men and women used more confrontational descriptions, such as saying, “We absolutely put our foot down” and “Tell them it’s wrong.” But in the case of women, “some of these more confrontational accounts were used in connection with allies or coalitions,” Neill said. In a few cases, men and women gave examples of resigning accounts or refusing to accept new clients if they decided the client’s business was not worth the ethical cost. Many interviewees said they had received ethics training through PRSA. A few said they had received training through their employer, college courses, personal study and mentors. A few pointed to their religious upbringing. Some of the more common ethics issues centered around communication, such as open disclosure of information, inaccurate information or sending fake letters to an editor. But others were business challenges, such as abusive behavior toward subordinates, misuse of public funds, smear campaigns and conflicts of interest. Neill said that because the study was limited to 55 individuals, a larger study and surveys of senior PR executives in other nations would be valuable. She and a colleague next plan to study to women’s leadership experiences. *PRSA College of Fellows is an exclusive group of approximately 350 senior professionals, each with a minimum of 20 years of experience in PR, Accreditation in Public Relations and recognition for distinguished careers. The Arthur W. Page Society is open by invitation to chief communications officers of Fortune 500 corporations and leading nonprofit organizations, chief executive officers of PR agencies and senior professors from business and communications schools. The study was funded by The Arthur W. Page Center for Integrity in Public Communication and supported by the PRSA Board of Ethics and Professional Standards and PRSA College of Fellows. Co-author is Amy Barnes, associate professor in the School of Mass Communications at the University of Arkansas at Little Rock and co-author of “Public Relations Ethics: PR Pros Tell Us How to Speak Up and Keep Your Job.” ABOUT BAYLOR UNIVERSITY Baylor University is a private Christian University and a nationally ranked research institution. The University provides a vibrant campus community for more than 17,000 students by blending interdisciplinary research with an international reputation for educational excellence and a faculty commitment to teaching and scholarship. Chartered in 1845 by the Republic of Texas through the efforts of Baptist pioneers, Baylor is the oldest continually operating University in Texas. Located in Waco, Baylor welcomes students from all 50 states and more than 80 countries to study a broad range of degrees among its 12 nationally recognized academic divisions. ABOUT BAYLOR COLLEGE OF ARTS & SCIENCES The College of Arts & Sciences is Baylor University’s oldest and largest academic division, with 25 academic departments and seven academic centers and institutes. The more than 5,000 courses taught in the College span topics from art and theatre to religion, philosophy, sociology and the natural sciences. Faculty conduct research around the world, and research on the undergraduate and graduate level is prevalent throughout all disciplines.

Focus on extreme polluters

In recent years, several scholars have recommended that countries reduce their energy-related CO2 emissions by setting carbon intensity targets for their electricity generating plants. Other research suggests that countries could substantially cut their emissions simply by focusing on lowering the carbon emissions of the most extreme polluters. Using a unique international data source on power plants, researchers Don Grant (U. Colorado); Wesley Longhofer, assistant professor of organization and management; and Andrew Jorgenson (U. Utah) inform this issue by analyzing the distribution of CO2 emissions and intensities within the electricity sectors of 20 countries. They find that the dirtiest 5 percent of power plants are responsible for huge shares of their sectors’ total emissions, noting that “if these plants continued generating the same amount of electricity but met particular intensity targets, the world’s total electricity-based CO2 emissions could be reduced by as much as 44 percent.” Source:

Going about business . . . and helping change

Politically oriented organizations, such as those advocating equal rights for lesbians and gays, have long been credited with effecting changes in public policy that reduce discrimination. But what about the role of “ordinary” commercial organizations, such as dry cleaners or insurance agencies or clothing stores, that are affiliated with a “challenger” group that has limited recognition in a political system? A recent article by Giacomo Negro, associate professor of organization and management; Glenn Carroll (Stanford); and Fabrizio Perretti (Bocconi) examines such organizations, which are often overlooked in the study of policy outcomes. The researchers find that “politically mundane” commercial enterprises linked to lesbians and gays can contribute distinctly to local enactment of nondiscriminatory policies. The researchers attribute this to the bridges created between these businesses and the larger community, and to the normalcy and legitimacy signaled by their familiar organizational forms. They find that the more diverse in nature these commercial organizations are, the greater their potential to bring about nondiscriminatory policies. But this potential is diminished, they note, in communities where political organizations, particularly those engaging in contentious action, have a larger presence. The authors conclude that commercial organizations are an important complement to political action and can helpfully challenge discrimination while enhancing community connections and awareness. Source:

The role of the economy on individualism

Past work has shown that as countries become wealthier, people often become more individualistic. In new research, Emily Bianchi, assistant professor of organization & management, takes the investigation a step further and finds that even subtle fluctuations in the economy are associated with changes in individualism. She finds that during good economic times, Americans are more likely to seek out ways to signal their uniqueness and individuality. For instance, during boom times, Americans tend to give their children more uncommon names and are more likely to prize autonomy and independence in child-rearing. They are also more likely to favor music featuring self-oriented lyrics. Conversely, during recessions, Americans tend to focus more on fitting in and tend to give their children more common names, listen to more relationally oriented music, and encourage their children to get along with others. Additionally, Bianchi discovered that recessions engender uncertainty, which, in turn, decreases individualism and encourages interdependence. The study results indicated that the “link between wealth and individualism is driven not only by differences in how people live, work, and learn but also by their sense of the predictability, orderliness, and certainty of the surrounding environment.” Source:

The impact of behavioral bias on decision-making

For business leaders, the ability to make critical decisions in a dynamic work and industry environment is essential to the success of an organization. However, Diwas KC, associate professor of information systems & operations management, and coauthors Francesca Gino (Harvard U) and Bradley R. Staats (UNC) note that behavioral traits can sometimes impact the ability to weigh new information and make a logical decision, even in the face of negative news. KC, Gino, and Staats analyze 147,000 choices made by cardiologists during a six-year period when they were presented with negative news from the FDA about drug-eluting stents used in angioplasty. The experienced cardiologists were more likely to continue using the questionable stents than their less-experienced peers, even after being informed of the problem. The role of influence also played a factor in the decision-making. They add, “Given that those who feel they are expert are less likely to react to negative news, those around them show the same tendency, thus making worse decisions than those in groups with less perceived expertise.” The seasoned cardiologists were better able to “generate counterexamples to the negative news and thus be susceptible to confirmation bias.” The authors note managers should be aware that more experience and the perception of expertise may bias decision-making. Source:

The impact of economic prosperity on CEO ethics

Prior research suggests that economic booms are associated with overconfidence and risk-taking. In a new paper, Emily Bianchi, assistant professor of organization & management, and coauthor Aharon Mohliver (London Business School) build on that research by showing that prosperous times are also associated with more ethical lapses. The authors examined whether CEOs were more likely to backdate their stock options during prosperous economic times. Backdating stock options was relatively common during the late 1990s to early 2000s. It was also unethical. A backdating CEO would receive a stock option grant on one day but report that the options were assigned on an earlier date when the stock price was lower. This would allow the CEO to realize greater gains when he or she sold the stock. Also, it required lying to the SEC and came at the expense of company profits. To test their theory, Bianchi and Mohliver looked at the backdating patterns of 2,139 CEOs of US publically traded companies between 1996 and 2005. They found that CEOs were more likely to backdate in good economic times. They also found that “CEOs who began their careers in prosperous times were more likely to backdate stock option grants later in their careers.” The findings indicate that economic prosperity influences the likelihood of corporate misconduct. Source:

Misreporting in securitized loans

Nonagency mortgage-backed securities (MBSs) and collateralized debt obligations (CDOs) derived from MBSs and their role in the recent financial and housing crisis remain a subject of discussion. An MBS is an asset-backed security secured by a mortgage or grouping of mortgages. Non-agency MBSs are not guaranteed by any government-sponsored organization, such as Freddie Mac or Fannie Mae, or the federal government. According to research from Gonzalo Maturana, assistant professor of finance, and John Griffin (U of Texas), the complexity of these structured products made it difficult to learn the true value of the underlying assets. They analyzed “apparent fraud among securitized nonagency loans, looking at unreported second liens, owner occupancy misreporting, and appraisal overstatements.” The study data comes from Lewtan’s ABSNet Loan and HomeVal data sets, along with DataQuick’s Assessor and History files, for the time period between January 2002 and December 2011. The researchers discovered that “48% of loans exhibited at least one indicator of misrepresentation.” The level of misreporting was similar for low- and full-documentation loans. Also, loans with a misreporting were 51% more likely to be delinquent. Maturana and Griffin’s research points to apparent fraud by loan originators and MBS underwriters, and it also suggest that MBS underwriting banks were aware of some of the MBS representations at issuance. Source:

The impact of corporate vs. independent foundations

Debate continues as to whether corporate or independent foundations are more impactful, despite the shared interest in supporting charitable services. In research from Justin Koushyar, doctoral candidate in organization and management (2017), Wesley Longhofer, assistant professor of organization and management, and Peter Roberts, professor of organization and management, the trio determines that the answer is mixed. They used data from a matched random sample of corporate and independent foundations that operated across the United States in 2005 and 2009. With deeper pockets, corporate foundations were able to raise more funds than their nonprofit counterparts. Company sponsorship of a philanthropic foundation also meant that they could operate with lower overhead. However, Koushyar, Longhofer, and Roberts found that corporate foundations are “more dispersed and less relational, and they tend to be governed by more ephemeral groups of officers and trustees.” Simply put, corporate foundations have fewer longterm attachments to the charitable organizations they support. Additionally, “market-based motivations” may influence how they give. Corporate foundations do tend to provide smaller individual grant amounts than independent foundations. These “stakeholder effects” are even more dramatic for the foundations linked to larger publicly traded companies. Source:

Why negotiations fail

For business leaders engaged in negotiations, it’s essential to constantly analyze and revisit their negotiation strategy to avoid many of the errors typically made in the process. In the Handbook of Conflict Management Research, Erika Hall, assistant professor of organization & management, and coauthors Brian Lucas (U of Chicago) and Leigh Thompson (Northwestern U) offer a window into negotiation methods and some of the mistakes negotiators make along the way. The trio discovered and defined three specific errors that occur in negotiations, including what they label as domain myopia, the self-preoccupation effect, and the script hijack effect. Domain myopia is described as the “tendency for negotiators to fail to see meaningful parallels across negotiation situations that might appear different on the surface, but have meaningful underlying similarities.” Hall and her coauthors also describe the self-preoccupation effect, where negotiators let their emotions win the day and subsequently lose perspective. The third scenario that they define is the script hijack effect, which they describe as “the tendency for negotiators to feel compelled to follow a script, often based on stereotypes.” According to the authors, the problems they document apply across a variety of industries. Source:

Understanding self-serving behavior in leaders

In a new research paper, Melissa Williams, assistant professor of organization & management, developed a framework to better understand when and why leaders use their power for personal gain. She discovered that a variety of traits, characteristics, and values, such as feeling less of a sense of guilt, made leaders more likely to exhibit self-interested behaviors. Individuals who were more narcissistic, less humble and honest, and generally less agreeable also had an increased chance of abusing their power. Leaders with an individualistic and competitive streak as well as those with a lower sense of morality were also more likely to act on self-interest. Threats to power especially increased self-serving behavior for those with a propensity for it. Williams added that “because positions of leadership are desirable and hedonically pleasurable, leaders facing threats to their power will prioritize self-interested actions that secure their own power over behaviors that serve shared goals.” Interestingly, for the individuals who did not have self-interested traits and values, power actually decreased the likelihood that they would become self-interested. Source: