In recent years, the business ethics literature has exploded in both volume and importance. Because of the sheer volume and diversity of this literature, a review article was deemed necessary to provide focus and clarity to the area. The present paper reviews the literature on business ethics with a special focus in marketing ethics. The literature is divided into normative and empirical sections, with more emphasis given to the latter. Even though the majority of the articles deal with the American (...) reality, most of the knowledge gained is easily transferable to other nations. (shrink)

There are four areas of concern in the ethical pursuit of tourism. Too often, tourism development is planned without consideration of the local environment's or community's needs and characteristics. An ethical treatment of the environment and community should involve consideration and participation in the planning and decision-making process, as well as implementing effective guidelines to assure fairness in employing both traditional and non-traditional employees. Finally, the industry must pay special attention to the target market: tourists.

Lapses in ethical conduct by those in corporate and public authority worldwide have given business researchers and practitioners alike cause to re-examine the antecedents to personal ethical values. We explore the relationship between ethical values and an individual’s long-term orientation or LTO, defined as the degree to which one plans for and considers the future, as well as values traditions of the past. Our study also examines the role of work ethic and conservative attitudes in the formation of a person’s (...) long-term orientation and consequent ethical beliefs. Empirically testing these hypothesized relationships using data from 292 subjects, we find that long-term perspectives on tradition and planning indeed engender higher levels of ethical values. The results also support work ethic’s role in fostering tradition and planning, as well as conservatism’s positive association with planning. Additionally, we report how tradition and planning mediate the influence of conservatism and work ethic on the formation of ethical values. Limitations of the study and future research directions, as well as implications for business managers and academics, are also discussed. (shrink)

This two country study examines the effect of corporate ethical values and enforcement of a code of ethics on perceptions of the role of ethics in the overall success of the firm. Additionally, the impact of organizational commitment and of individual variables such as ethical idealism and relativism was examined. The rationale for examining the perceived importance of the role of ethics in this manner is to determine the extent to which the organization itself can influence employee perceptions regarding ethics (...) and social responsibility. Results indicate that all of the variables tested, except relativism, impacted upon one’s perceptions of the importance of ethics and social responsibility. Perceptions of the importance of ethics and social responsibility also varied depending upon country of residence with the U.S. sample having somewhat higher perceptions concerning the importance of ethics and social responsibility than their counterparts in Spain. Furthermore, when comparing the two samples, the U.S. sample had significantly higher corporate ethical values, greater enforcement of ethical codes, less organizational commitment and both lower idealism and relativism. (shrink)

Prior research suggests that ownership structure is associated to corporate social responsibility (CSR) in developed countries. This article examines whether and how ownership structure affects CSR in emerging markets using Chinese firms' social responsibility ranking. Our empirical evidences show that for non-state-owned firms, corporate ownership dispersion is positively associated to CSR. However, for state-owned firms, whose controlling shareholder is the state, this relation is reversed. We attribute the reversed relationship to political interferences and further test this hypothesis by demonstrating that (...) regional economic development is negatively related to CSR for state-owned firms due to decreased political interference in more developed areas. This study is the first to directly examine the relationship between the dispersion of corporate ownership and CSR in emerging markets, and our results depict that it is important to consider ownership type in assessing CSR in emerging market where state ownership is still prevalent such as China. The results also reveal that firm size, profitability, employee power, leverage, and growth opportunity affect CSR in China. (shrink)

This paper, Study II, is the second in a series of papers investigating the relative importance of social responsibility criteria in determining organizational effectiveness, using student samples. A revised version of the Organizational Effectiveness Menu was used as a questionnaire with a sample of 182 senior undergraduate and the MBA students from three universities. Each respondent was asked to rate the importance of the criteria from a manager's perspective. The results support the earlier findings that students responding as managers rate (...) social responsibility criteria, individually and collectively, among the least important of the potential determinants of organizational effectiveness. (shrink)

Most models of corporate social responsibility revolve around the controversy as to whether business is a single dimensional entity of profit maximization or a multi-dimensional entity serving greater societal interests. Furthermore, the models are mostly descriptive in nature and are based on the experiences of western countries. There has been little attempt to develop a model that accounts for corporate social responsibility in diverse environments with differing socio-cultural and market settings. In this paper an attempt has been made to fill (...) this gap by developing a two-dimensional model of corporate social responsibility and empirically testing its validity in the context of two dissimilar cultures – Australia and Bangladesh. The two dimensions are the span of corporate responsibility and the range of outcomes of social commitments of businesses. The test results confirm the validity of the two-dimensional model in the two environments. The Factor analysis revealed two leading dimensions. Cluster analysis pointed to two distinctive clusters of managers in both Australia and Bangladesh, one consisting of managers with a broad contemporary concept of social responsibility, and the other with a limited narrow view. The paper concludes that corporate social responsibility is two-dimensional and universal in nature and that differing cultural and market settings in which managers operate may have little impact on the ethical perceptions of corporate managers. (shrink)

This paper investigates the differences in perceptions between business students and service-sector managers regarding the role that ethics and social responsibility serve in determining organizational effectiveness. An organizational effectiveness instrument containing business ethics and social responsibility items served as a questionnaire for a sample of 151 senior business undergraduates and 53 service-sector managers. The results indicated that while students acting as managers rate some social responsibility issues as more important than do managers, they also rate ethical conduct and a few (...) dimensions of social responsibility lower than do managers. The findings have direct implications for both business practitioners and educators. (shrink)

In recent years there have been evergrowing concerns regarding environmental decline, causing some companies to focus on the implementation of environmentally friendly supply, production and distribution systems. Such concern may stem either from the set of beliefs and values of the company's management or from certain pressure exerted by the market - consumers and institutions - in the belief that an environmentally respectful management policy will contribute to the transmission of a positive image of the company and its products. Sometimes, (...) however, ethics and market rules are not enough to deal with this situation and specific laws must be considered. This is the case when companies base their activity on the 'ethics of self-interest' concentrating their efforts on projecting an adequate image - e.g. environmental respect - rather than fundamentally behaving in environmentally respectful ways. This article, taking as reference the SME context, discusses the reasons for implementing environmentally friendly systems. Both ethics and business seem to be relevant and, therefore, a certain balance between market and interventionism seems to be necessary. (shrink)

Marketers have traditionally evaluated products and practices on the basis of whether something could be sold. It is also important to evaluate products and practices from a societal perspective, "Should a product be sold?" The first idea reflects a managerial orientation and what must be done to sell a product; the second idea reflects a societal orientation and the impact of selling a product. In relation to the second idea, the societal marketing concept was introduced in 1972. There has been (...) little advancement in our understanding of a societal orientation since that time. The current study presents a conceptualization of a societal orientation based on a review of literature and qualitative interviews. The construct was conceptualized as "attention to the long-term well-being of individuals and society at large by enhancing positive impacts from and reducing negative effects associated with production and consumption of a product." Five domains comprising a societal orientation are proposed: physical consequences, psychological well-being, social relationships, economic contribution, and environmental consciousness. (shrink)

Using a manually collected dataset on the overseas experiences of directors of Chinese listed firms, we examine the effects of returnee directors on firms’ corporate social responsibility engagement. Our results show that returnee directors significantly improve their firms’ CSR engagement. The positive relationship between the percentage of returnee directors and CSR engagement is more significant when a firm is in a competitive industry, when a firm has no government ownership, when a firm’s CEO is not politically connected, and when a (...) firm’s CEO is older. Furthermore, we find that only long-term foreign professional or academic experience matters, whereas short-term visiting experience does not. Finally, our results are robust after controlling for endogeneity. Therefore, this paper offers clear policy implications by suggesting that hiring more returnees as corporate directors is an efficient way to enhance firms’ CSR, which may be of particular interest to regulators in emerging markets. (shrink)

The material to follow challenges the conceptual uniqueness and contribution of the content of the field of marketing ethics. Based on a comprehensive inspection of the marketing ethics literature, this "review note" (an uncommon genre of academic manuscript – a briefly-presented review highlighting a specific point) concludes that, in terms of pragmatic behavioral guidance as well as conceptual content, marketing ethics has nothing new nor distinctive to offer. Though an initially unexpected conclusion, perhaps, explanation is provided for why marketing ethics' (...) absence of contribution is perfectly natural and appropriate. Evidence also is found to establish that the paper's contrarian-appearing position may not be extremist after all. (shrink)

No research thus far has attempted to examine ethical decision- making in corporate entrepreneurial organizations. Results of such study would provide management executives with insights on what action, if any, is essential for achieving business ethics and corporate entrepreneurship simultaneously. This paper argues, theoretically, that the work characteristics, organizational characteristics, and some individual characteristics in a corporate entrepreneurial organization are conducive to ethical decisions. These characteristics help mitigate the adverse impact of the turbulent environments on ethical decision- making behavior. Based (...) on these arguments, a tentative model of ethical decison-making in corporate entrepreneurial organization is constructed. (shrink)

The recent failures and scandals involving many large businesses have highlighted the importance of corporate social responsibility as a fundamental factor in the soundness of the free market system. The corporate social responsiveness orientation of business executives plays an important role in corporate decision making since managers make important decisions on behalf of their corporations. This paper explores whether there is a relationship between an individual's degree of religiousness and his or her corporate social responsiveness (CSR) orientation. The results of (...) a survey of 473 business students found a significant relationship between degree of religiousness and attitudes toward the economic and ethical components of CSR. Some explanations as well as limited generalizations and implications are developed. (shrink)

The managerial ethics literature is used as a base for the inclusion of Ethical Attribution, as an element in the consumer's decision process. A situational model of ethical consideration in consumer behavior is proposed and examined for Personal vs. Vicarious effects. Using a path analytic approach, unique structures are reported for Personal and Vicarious situations in the evaluation of a seller's unethical behavior. An attributional paradigm is suggested to explain the results.

Marketers must first perceive ethics and social responsibility to be important before their behaviors are likely to become more ethical and reflect greater social responsibility. However, little research has been conducted concerning marketers' perceptions regarding the importance of ethics and social responsibility as components of business decisions. The purpose of this study is to develop a reliable and valid scale for measuring marketers' perceptions regarding the importance of ethics and social responsibility. The authors develop an instrument for the measurement of (...) the perceived role of ethics and social responsibility (PRESOR). Evidence that the scale is valid is presented through the assessment of scale reliability, as well as content and predictive validity. Finally, future research needs and the value of this construct to marketing are discussed. (shrink)

This paper investigates the relative importance of social responsibility criteria in determining organizational effectiveness. The organizational effectiveness menu was used as a questionnaire with a sample of 151 senior undergraduates. Each respondent was asked to rate the importance of the criteria from three constituent perspectives within a service organization: (1) as a manager, (2) as an investor, (3) as an employee. Later, a subsample of students (n=61) responded to the same questionnaire acting as a manager in an assigned case study. (...) The results indicated that students acting as managers, investors, or employees rate social responsibility criteria among the least important of the determinants of organizational effectiveness. Moreover, while specific situations may call for changes in the relative importance of these criteria, social responsibility criteria were not viewed, generally, as the most important determinants of organizational effectiveness. (shrink)

Researchers have used attribution theory as a basis for exploring the relationship between consumers'' inferences of advertiser motivation (attributions) and advertising response. This study postulated the existence of two new types of attributions which relate to the perceived ethics of the advertiser (advertiser ethical attributions) and the advertising message (message ethical attributions). Research conducted among a nationally representative sample of 273 adults: (1) verified the existence of both advertiser and message ethical attributions, (2) demonstrated the independence of advertiser and message (...) ethical attributions both from each other and from other measures of advertiser and message evaluation, (3) identified the specific advertising characteristics which lead to the formation of each type of ethical attribution and (4) demonstrated a significant relationship between advertiser and message ethical attributions and measures of advertising response. (shrink)

The importance of ethical consumerism to many companies worldwide has increased dramatically in recent years. Ethical consumerism encompasses the importance of non-traditional and social components of a company's products and business process to strategic success - such as environmental protectionism, child labor practices and so on. The present paper utilizes a random utility theoretic experimental design to provide estimates of the relative value selected consumers place on the social features of products.

This paper investigates the relative importance of social responsibility criteria in determining organizational effectiveness as seen by managers of two service industries. The Organizational Effectiveness Menu (Kraft and Jauch, 1988) was used as a questionnaire with a sample of 53 firms. The conclusion is that while managers view ethical conduct as among the most important determinants of organizational effectiveness, numerous other social responsibility criteria are assigned relatively low priority. A question remains as to what managers will actually do when faced (...) with limited resources. (shrink)