Examining moral authority in the marketplace: A conceptualization and framework

Abstract

Business entities, such as CEOs, endorsers, brands and even firms, are more frequently being pressured to engage in social and political dialogue. Stakeholders want these entities to motivate change by taking a stance on various issues; i.e., to exert their moral authority. While mentioned in the popular press and consumer conversations, research has not yet examined the construct of moral authority. Drawing from current events and the extant business literature on morality, this article formally defines and conceptualizes the construct of moral authority and delineates a framework for examining if/how entities choose to exert their moral authority in the marketplace as well as identifying what the potential consequences could be. As a result, this article contributes to the literature by initiating a new research agenda into moral authority in the marketplace.