Codes of conduct are a conspicuous feature of modern business organization, but doubts have been raised regarding their efficacy in ensuring high standards of behavior. Although some of the issues involved have been discussed at some length in the business ethics literature, the amount of systematic empirical evidence on the impact of codes is very limited. This paper seeks to make a contribution to that body of knowledge by studying the policies and procedures of a sample of banks which have (...) signed a statement on banking and the environment promulgated by the United Nations Development Programme. Although some differences are found when compared with a sample of banks which did not sign the Statement, they are not extensive. The implications of the findings, for codes of conduct and for future empirical studies, are then discussed. (shrink)

The paper documents the post-war retrenchment and failure of the post-war British Consumer Co-operative Movement. In contrast to the general failure one CEO, Terry Thomas stands out both for his success in co-operative rebranding and returning to profitability the UK Co-operative Bank and because he alone amongst the top echelons of the Co-operative Groups Management based his strategies on a clearly articulated philosophy based on his understanding of the values and purpose of the co-operative movement rooted in its historical traditions (...) grounded in the writings and achievements of Robert Owen, The paper goes on to provide a case study of the bank’s process of transformation from loss-making subsidiary to the first positive co-operative national brand in the post-war period of its history. The author argues that lack of appropriate vision based on the founding values and purposes of the Co-operative Movement is the principal reason for the management’s and governance failures that have beset the UK Co-operative Group. Instead of using the past to help in understanding the present and planning for the future, the UK Co-operative Group Leadership ignored it or worse used the past successes to congratulate itself and disguise its manifest failures. In this, they were supported by an uncritical Co-operative Union. Davis argues large co-operatives cannot be managed by a civil service responsible to an elected board. Co-operatives need a servant-leadership model of professional management dedicated to the transformational goals set by the founders of the co-operative movement. This needs a radical rethink and promotion of co-operative management education and a dedicated executive recruitment that seeks out value-based professionals whose attitudes and values are compatible with Co-operative values, ownership and purpose. (shrink)

Banks play a unique role in society. They not only maximize profits but also consider the interests of stakeholders. We investigate whether banks consider firms’ pollution records in their lending decisions. The evidence shows that banks offer significantly higher loan spreads, higher total borrowing costs, shorter loan maturities, and greater collateral to firms with higher levels of chemical pollution. The costly effects are stronger for borrowers with greater risk and weaker corporate governance. Further, the results show that banks with higher (...) social responsibility account for their borrowers’ environmental performance and charge higher loan spreads to those with poor performance. These results support the idea that banks with higher social responsibility can promote the practice of business ethics in firms. (shrink)

Policy statements on ethical issues abound. If all organisations which produce mission statements, codes of practice or ethical codes were, therefore, ethical in conduct and performance, business ethics would be non-problematic. However, the effectiveness of corporate codes of ethics is dependent, inter alia, on the day-to-day behaviour of managers.Interest in the impact of ethical codes and mission statements on managerial behaviour has grown in recent years. The assumption underlying this paper is that one way of enriching our understanding of the (...) ethical behaviour of managers is to focus on actual behaviour in real organisations. (shrink)

This paper introduces a refined approach to conceptualising the commons in order to shed new light on cooperative practices. Specifically, it proposes the novel concept of Common-Property Assets. CPAs are exclusively human-made resources owned under common-property ownership regimes. Our CPA model combines quantity and quality. While these two dimensions are largely pre-existing in the conventional case of natural common-pool resources, they directly depend on members’ collective action in CPAs. We apply this theoretical framework to farm machinery sharing agreements—a widespread grassroots (...) cooperative phenomenon in agriculture—using a systematic literature review to generalise the findings from a sample of 54 studies published from 1950 to 2018. Our findings show that in successful CPAs, members endorse and do not deviate from a quantity-quality equilibrium that is collectively agreed upon. Despite the existence of thresholds for both quantity and quality due to membership heterogeneity, qualitative changes in respect of the common good are possible in CPAs that promote democratic practices. Our study has potentially strong implications for developing ethics in cooperatives and the sustainable development of communities worldwide. (shrink)