This article examines whether ethical business practice enhances financial performance with respect to interorganizational favour exchange. We argue that the link between the ethicality and economic utility of interorganizational favour exchange is governed by: (1) organizational–individual interest alignment/conflict and (2) the fairness or justifiability of favour exchanges from the perspective of third parties. We classify interorganizational (IO) favour exchange into four types (Business–Personal, Personal–Business, Personal–Personal and Business–Business favour exchange). Our analysis shows that the first three types of favour exchange are (...) unethical as they involve conflicts between organizational and individual interests in one or both participating organizations that negatively affect organizational value creation. The last type of favour exchange involves organizational–individual interest alignment in both participating organizations and positively affects the capacity of those involved in the exchange to create value. Favour exchanges of this fourth variety are ethically justifiable unless they unfairly damage the legitimate interests of third parties. In the latter case, these favour exchanges create the risk of negative third party reactions, which in turn affect the sustainability of the benefits of the favour exchanges to the focal group (the dyad). Our research results advance understanding of the ethical and economic implications of IO favour exchange, counter the prejudice against this behaviour in organizations, provide ethical guidance for management and business practice, and have implications for the relationship between doing well and doing good. (shrink)

. The management of ethics within organisations typically occurs within a problem-solving frame of reference. This often results in a reactive, problem-based and externally induced approach to managing ethics. Although basing ethics management interventions on dealing with and preventing current and possible future unethical behaviour are often effective in that it ensures compliance with rules and regulations, the approach is not necessarily conducive to the creation of sustained ethical cultures. Nor does the approach afford (mainly internal) stakeholders the opportunity to (...) be co-designers of the organisations ethical future. The aim of this paper is to present Appreciative Inquiry (AI) as an alternative approach for developing a shared meaning of ethics within an organisation with a view to embrace and entrench ethics, thereby creating a foundation for the development of an ethical cul- ture over time. A descriptive case study based on an application of AI is used to illustrate the utility of AI as a way of thinking and doing to precede and complement problem-based ethics management systems and interventions. (shrink)

The current environment of business and financial corruption in Spain has increased in recent years. In order to reduce the scope of this problem, the Spanish Criminal Code has introduced codes of conduct and ethics to encourage a new culture of respecting laws for companies and employees. An Educational Innovation Group at the University of Extremadura has proposed a cross-sectional model to study ethics, in an effort to address concerns about the consequences of illegal acts in society and companies. Students (...) in Business, Finance and Accounting are required to practice ethical decision-making through court judgments in order to develop “ethical competences”. These competences are included in the European Higher Education Area and the Official University Education in Spain, specifically in the Royal Decree 1393/2007, of 29 October through cross-sectional competences within the academic programmes. The results of the study show that a high percentage of students validate this methodology as a way of improving ethical decision-making skills at University that will be applied to future business practices. (shrink)

This study examined individual difference characteristics as predictors of business students’ attitudes toward sustainable business practices. Three types of predictors were considered: personal values, individualism–collectivism, and leadership styles. Data were collected from 248 business students attending a mid-sized university in western United States using self-reported questionnaires. Few gender differences were present. Hierarchical regression analyses, controlling for personal demographic characteristics, indicated that business students scoring higher on Rokeach’s social value scale, collectivism, and transformational leadership also reported more positive attitudes toward sustainable (...) business practices. Implications for research and practice are discussed. (shrink)

The purpose of this paper is to examine the various guidelines presented in the literature for instituting an ethics curriculum and to empirically study their effectiveness. Three questions are addressed concerning the trainability of ethics material and the proper integration and implementation of an ethics curriculum. An empirical study then tested the effect of ethics training on moral awareness and reasoning. The sample consisted of two business classes, one exposed to additional ethics curriculum (experimental), and one not exposed (control). For (...) the experimental group, ethics exercises and discussion relevant to each topic were completed. Findings suggested gender differences such that, relative to other groups, women in the experimental group showed significantly improved moral awareness and decision-making processes. An explanation of the underlying cognitive processes is presented to explain the gender effect. (shrink)

I assessed change in students’ moral reasoning following five 75-min classes on business ethics and two assignments utilizing a novel pedagogical approach designed to foster ethical reasoning skills. To minimize threats to validity present in previous studies, an untreated control group design with pre- and post-training measures was used. Training (n = 114) and control (n = 76) groups comprised freshmen business majors who completed the Defining Issues Test before and after the training. Results showed that, controlling for pre-training levels (...) of moral reasoning, students in the training group demonstrated higher levels of post-training principled moral judgment than students in the control group. (shrink)

In recent years there has been a substantial amount of research on emotional intelligence (EI) across a wide range of disciplines. Also, this term has been receiving increasing attention in the popular business press. This article extends previous research by seeking to determine whether there is a relationship between emotional intelligence and ethical judgment among practicing managers with respect to questions of ethical nature that can arise in their professional activity. It analyzes the results of a survey of 324 managers (...) enrolled in executive MBA programs from five universities in the southeastern and northeastern United States. This study is based on a model presented by Forsyth showing two dimensions that play an important role in ethical evaluation and behavior. Respondents were classified into one of four groups according to their idealism and relativism levels—situationists, subjectivists, absolutists, and exceptionists. The four ideological group’s scores were compared. The results indicate significant differences between the situationists and absolutists on the one hand, and subjectivists and exceptionists on the other. The former’s emotional intelligence scores were significantly higher thus demonstrating a strong relationship between emotional intelligence and ethical ideology. The results raise important implications for practitioners and educators. (shrink)

ABSTRACT:Central to the United Nations Framework setting out the human rights responsibilities of corporations proposed by John Ruggie is the principle that corporations have a responsibility to respect human rights in their operations whether or not doing so is required by law and whether or not human rights laws are actively enforced. Ruggie proposes that corporations should respect this principle in their strategic management and day-to-day operations for reasons of corporate (enlightened) self-interest. This paper identifies this as a serious weakness (...) and argues that identifying the responsibility to respect human rights as an explicitly ethical obligation to be respected for that reason would provide a much stronger justificatory foundation for respecting the principle seen from a corporate perspective, given that corporations are accountable to their shareholders for their deployment of the firm’s financial resources. (shrink)

Communicating ethical values is a serious issue for a number of organizations. While ethical codes are useful, they cannot exist alone. Organizations must make certain codes reflect the ideals of individuals in the organization and the ethical expectations must be clearly communicated. This study examined the sources (people) and channels (ways messages were received) that affected how employees learned about ethics. Results showed that training and orientation programs were affirmed as sources of learning along with teaching others. Codes and handbooks (...) were also identified as ways employees learned about ethics in their organization. Ethical issues were discussed more frequently with fellow employees than with supervisors suggesting that managers could be more proactive about discussing ethics with employees. (shrink)

The management of ethics within organisations typically occurs within a problem-solving frame of reference. This often results in a reactive, problem-based and externally induced approach to managing ethics. Although basing ethics management interventions on dealing with and preventing current and possible future unethical behaviour are often effective in that it ensures compliance with rules and regulations, the approach is not necessarily conducive to the creation of sustained ethical cultures. Nor does the approach afford (mainly internal) stakeholders the opportunity to be (...) co-designers of the organisation's ethical future. The aim of this paper is to present Appreciative Inquiry (AI) as an alternative approach for developing a shared meaning of ethics within an organisation with a view to embrace and entrench ethics, thereby creating a foundation for the development of an ethical culture over time. A descriptive case study based on an application of AI is used to illustrate the utility of AI as a way of thinking and doing to precede and complement problem-based ethics management systems and interventions. (shrink)

This research examines the relationships between education in business ethics, Reynolds’s (J Appl Psychol 93:1027–1041, 2008) “moral attentiveness” construct, or the extent to which individuals chronically perceive and reflect on morality and moral elements in their experiences, and Singhapakdi et al.’s (J Bus Ethics 15:1131–1140, 1996) measure of perceptions of the role of ethics and social responsibility (PRESOR). Education in business ethics was found to be positively associated with the two identified factors of moral attentiveness, “reflective” and “perceptual” moral attentiveness, (...) and with the PRESOR “stakeholder view” factor. Also, reflective moral attentiveness was found to act as a mediator in the relationship between education in business ethics and the PRESOR stakeholder view factor. Evidence of gender and social desirability bias effects was also found. The implications of these relationships and social cognitive theory for improved understanding of the mechanisms by which a variety of variables have their effects on PRESOR in business are discussed. (shrink)

While mainstream CSR research has generally explored and argued for positive ethical, social and environmental performance, critical CSR scholars argue that change has been superficial—at best, and not possible in any substantial way within the current capitalist system. Both views, however, only address the role of business within larger systems. Little attention has been paid to the everyday material CSR practice of individual managers. We go inside the firm to investigate how the micro-level acts of individual managers can aggregate to (...) drive transformation of the macro-level business logic. We draw on the strategy-as-practice approach to organize our research. The study reveals two orientations towards the integration of personal ethics into the workplace: abdication and activism. These orientations are supported by managerial practice such as reproductive and coping tactics and covert and overt tactics ; and, three enabling conditions of activist practice: empowerment and psychological safety, moral shock, and morality praxis. While our findings illustrate the tremendous challenges managers face when attempting to influence organizational practices towards their ethical and environmental aspirations, we also show that under specific conditions, individual managers can become fully engaged advocates and drivers of positive change from the inside. In so doing, our individual-level analysis of intrapreneurship provides a more complex picture of the possibilities for positive change than have been previously put forth by mainstream and critical CSR research. (shrink)

The article briefly reviews the external pressures for teaching business ethics. It then summarizes why teaching business ethics across the curriculum is essentially a necessity in the current environment. This leads to a discussion of six commonly adopted elements used when seeking to improve a business ethics curriculum. The case study uses these six elements to provide insights into contemporary challenges facing many business schools. The particular contribution of this article is in the area of methods to assess the status (...) of the curriculum. The case study provides details about a faculty survey used as a compelling tool to kick-start a business ethics curriculum upgrade, not only based on the information that it yields, but the potent opportunity for conversation and collaboration. The conclusion summarizes the contemporary challenges and opportunities that business schools face. The instrument itself is in the appendix. (shrink)