In this empirical study, we present two new models that are corporate ethics based. The first model numerically quantifies the corporate value index (CV-Index) based on a set of predefined parameters and the second model estimates the market-to-book values of equity in relation to the CV-Index as well as other parameters. These models were applied to Canadian companies listed on the Toronto Stock Exchange (TSX). Through our analysis, we found statistically significant evidence that corporate values (CV-Index) positively correlated with firm (...) performance. The results are even more significant for firms with low market-to-book values. Our empirical findings suggest that corporate ethics is vital for management, employees, shareholders, stakeholders, and the community at large. In addition, we have tested and confirmed five hypotheses that are used to illustrate corporate ethics behavior and performance. (shrink)

Insights from social science are increasingly used in the field of applied ethics. However, recent insights have shown that the empirical branch of business ethics lacks thorough theoretical grounding. This article discusses the use of the Rawlsian methods of wide reflective equilibrium and overlapping consensus in the field of applied ethics. Instead of focussing on one single comprehensive ethical doctrine to provide adequate guidance for resolving moral dilemmas, these Rawlsian methods seek to find a balance between considered judgments and intuitions (...) concerning particular cases on the one hand and general principles and theories on the other. In business ethics this approach is promissing because it enables decision-making in a pluralist context with different stakeholders who often endorse different or even conflicting cultural and moral frameworks without giving priority to any of them. Moreover, the method is well founded in political theory. A taxonomy of different kinds of applications is developed, and classified according to the purpose, the content, and the type of justification. On the basis of this taxonomy an inventory of 12 recent applications is made. In terms of the purpose and content of the method the applications are rather diverse. Two conceptual obstacles for applying Rawlsian methods are identified, viz. inclusiveness and the communitarian objection that people have to become detached from their personal life. It is found that methodological questions, such as the question how to retrieve the relevant empirical data, are scarcely addressed in the literature. To advance the use of empirical approaches in general, and that of Rawlsian approaches in particular, it is important not only to use empirical data but to use methodological insights from social sciences in order to further advance the field of empirical ethics. It is recommended that stakeholders be given a more active role in the assessment and justification of these methods. (shrink)

By synthesizing the argumentation theory of new rhetoric with research on heuristics and motivated reasoning, we develop a conceptual view of argumentation based on reasoning motivations that sheds new light on the morality of decision-making. Accordingly, we propose that reasoning in eristic argumentation is motivated by psychological (e.g., anxiety reduction) or material (e.g., vested interests) gains that do not depend on resolving the problem in question truthfully. Contrary to heuristic argumentation, in which disputants genuinely argue to reach a practically rational (...) solution, eristic argumentation aims to defeat the counterparty rather than seeking a reasonable solution. Eristic argumentation is susceptible to arbitrariness and power abuses; therefore, it is inappropriate for making moral judgments with the exception of judgments concerning moral taboos, which are closed to argumentation by their nature. Eristic argumentation is also problematic for strategic and entrepreneurial decision-making because it impedes the search for the right heuristic under uncertainty as an ecologically rational choice. However, our theoretical view emphasizes that under extreme uncertainty, where heuristic solutions are as fallible as any guesses, pretense reasoning by eristic argumentation may be instrumental for its adaptive benefits. Expanding the concept of eristic argumentation based on reasoning motivations opens a new path for studying the psychology of reasoning in connection to morality and decision-making under uncertainty. We discuss the implications of our theoretical view to relevant research streams, including ethical, strategic and entrepreneurial decision-making. (shrink)

Widespread enthusiasm for establishing scientific codes of conduct notwithstanding, the utility of such codes in influencing scientific practice is not self-evident. It largely depends on the implementation phase following their establishment—a phase which often receives little attention. The aim of this paper is to provide recommendations for guiding effective implementation through an assessment of one particular code of conduct in one particular institute. Based on a series of interviews held with researchers at the Department of Biotechnology of Delft University of (...) Technology, this paper evaluates how the Netherlands Code of Conduct for Scientific Practice is received by those it is supposed to govern. While respondents agreed that discussion of the guiding principles of scientific conduct is called for, they did not consider the code as such to be a useful instrument. As a tool for the individual scientific practitioner, the code leaves a number of important questions unanswered in relation to visibility, enforcement, integration with daily practice and the distribution of responsibility. Recommendations are provided on the basis of these questions. There is more at stake than merely holding scientific practitioners to a proper exercise of their duties; implementation of scientific society codes of conduct also concerns the further motives and value commitments that gave rise to their establishment in the first place. (shrink)

Nine codes of ethics from companies in the Swedish financial sector were subjected to a content analysis to determine how they address and treat employees. The codes say a great deal about employee conduct and misconduct but next to nothing about employee rights, their rightful expectations or their value to the firm. The normative analysis – echoing some of the value-based HRM literature – draws on the foundational values of respect, equality, reciprocity and care. The analysis shows that most of (...) the codes are in conflict with these values. Such a treatment is then in conflict with fairness and risks harming the employees. Some of the features that make these codes ethically problematic are typical of how corporate codes have been described in previous code studies. Consequently, the normative analysis reaches beyond the scope of this material and in the end, what is at stake, is a very typical code design. (shrink)

One field in ethics that has been developed during recent decades is virtue ethics, represented most importantly by Alasdair MacIntyre's work After Virtue. Virtue ethics is not opposed to principle-based ethics, but rather complements its task and develops it more fully. In the field of US bioethics, this option has proved to be even more fruitful, especially in the work of Edmund Pellegrino and David Thomasma. Virtue ethics is also being reappraised in relation to the ethics of organisations and business. (...) It is considered that the best way of running a company does not depend solely on a group of ethical principles or agreed criteria, but on the effective exercise of certain qualities of character. Indeed, minimal ethics do not guarantee the excellence of organisations, or even their correct development. They guarantee certain standards of coexistence, but this is not sufficient to carry forward a collective enterprise in a creative way. It is impossible to achieve the aims of an organisation without ambition, magnanimity, humility, prudence, responsibility and courage. This group of intangible elements are virtues. This article explores the process of decision-making in the light of Aristotelian ethics, in particular his work _Nicomachean Ethics_. Making decisions is a common task on the managerial agenda. The decisions of a manager affect individuals, the future of the organisation and, of course, they have consequences for the organisation and its surroundings. Aristotle dedicates Book III of the work in question to studying the art of deliberation and examining which virtues must be taken into account when reaching the best decision. Aristotle tells us that we deliberate about things that are within our power and can be done. There can be no deliberation upon exact and sufficient knowledge; however, we deliberate upon the things that are brought about by our own efforts, although not always in the same way. Leading an organisation is not a mechanical matter, but rather a process that requires creativity and responsibility. There are many different ways of doing it. Following the Aristotelian doctrine, this article aims to examine the elements that must be taken into consideration for correct decisions to be made. The following virtues play a fundamental role in this process: prudence, fortitude, justice and temperance, referred to below as called cardinal virtues. (shrink)

The Academy of Management formally adopted a Code of Ethical Conduct in 1990. During the subsequent 15 years, almost nothing had been published about it and its value as a formal document meant to guide professional practice. Rather surprisingly then, in December 2005 an entirely new Code of Ethics was introduced by the Academy’s Board, to take effect in February 2006. Why was a new code promulgated? More broadly, what do the contents of these codes, the processes of their promulgation, (...) and their expressed purposes, suggest about the value of such codes for similarly situated professional associations, in general? This article seeks to identify key strengths and weaknesses of the original code, begin an assessment of the potential value of the new code, and so stimulate debate. Further, not only is this a call to the members of the Academy to engage in some thoughtful debate and possible amendment of its new code, but also a caution to all such associations to take seriously the hurdles that must be jumped before any code can be developed and promulgated to worthwhile effect. (shrink)

The business environment has increasingly expanded outside single nations or regions of the world to encompass many differing countries. Along with this expansion come business opportunities and challenges when facing business practices and attitudes not so similar to our own. In studying how these national cultural differences affect ethical decision making, managers and employees alike gain an understanding and respect for those differing business practices. This study considers the national cultural dimension of collectivism versus individualism. Survey data were gathered from (...) 252 full-time employees working in the collective country of Taiwan and the individualist country of the United States of America. Results indicate that employees from the collective culture of Taiwan are more likely to indicate they would make an unethical decision that benefits the organization and less likely to openly question an unethical practice by their organization. Implications of these findings are discussed. (shrink)

Business schools are often thought of as being accountable for the individual student’s personal development and preparation to enter the business community. While true that business schools guide knowledge development, they must also fulfill a social contract with the business community to provide ethical entry-level business professionals. Three stakeholders, students, faculty, and the business community, are involved in developing and strengthening an understanding of ethical behavior and the serious impacts associated with an ethical lapse. This paper discusses the ways the (...) business schools may enhance the student’s ethical knowledge and understanding, and proposes a roadmap that business schools may use to develop or strengthen a strong ethical culture. (shrink)