A variety of stakeholders including investors, corporate managers, customers, suppliers, employees, researchers, and government policy makers have long been interested in the relationship between the financial performance of a corporation and its commitment to business ethics. As a subject of research, the relations between business ethics and corporate valuation has yet to be thoroughly quantified and investigated. This article is an effort to amend this inadequacy by demonstrating a statistically significant association between ethical commitment and corporate valuation measures. Consistent with (...) anecdotal evidence, we have found a significant association between the ethical commitment of Korean companies and their valuation on the Korean stock market. However, the result reveals that the association between ethical commitment and financial performance is not significantly supported. (shrink)

A critical literature on mulitnational corporate social responsibility has developed in recent years. Many authors addressed the issue in the Third World countries. This paper reviews the literature, focusing on the relationship between the multinational corporations (MNCs) and Third World governments in fulfilling the social responsibility, based on the underlying ethical imperative.There is a growing consensus that both corporations and governments should accept moral responsibility for social welfare and individual interests in their economic transactions. A collaborative relationship is proposed where (...) the MNCs share information based on global experiences and offer input into host government developmental policies, and aid their implementation. The government, in turn, provides a reasonable regulatory environment. This calls for ongoing interactions among officials at all levels of the two institutions, with the local corporate subsidiary playing a pivotal role. The desired conduct of the parties is reinforced by international organizations and other constituents, representing common human concerns across cultures. These relationships are examined and an agenda for policy and action by the MNCs and the Third World governments is developed. (shrink)

This research examines the relationship between corporate social responsibility (CSR) and company stock valuation across three regions of the world. After a brief introduction, the article gives an overview of the evolving definition of CSR as well as a discussion of the ways in which this construct has been operationalized. Presentation of the potential impact of corporate social performance on firm financial performance follows, including investor characteristics, the rationale behind their choices, and their influence on the marketplace for securities worldwide. (...) The unique method used to select socially responsible investments is then provided that also includes a description of the quantitative techniques employed in the analyses. Results are offered subsequently, and the close describes implications for global enterprises as socially responsible investments. (shrink)

This paper examines the association between board characteristics and the ethical reputation of financial institutions. Given the pivotal governance role of the board of directors and the value-relevance of ethical corporate behavior, we postulate a positive relationship between ethical reputation and board features that foster more effective monitoring and oversight. Using a sample of large financial institutions from 13 different countries, we run several alternative panel regressions of ethical reputation on board characteristics and firm-specific controls. Our results demonstrate that the (...) ethical reputation of financial institutions is positively associated with board size, gender diversity, and CEO duality, while being negatively related to the busyness of the board members and a composite index reflecting poor monitoring. Nevertheless, inconsistent with our hypothesis, we also document that financial institutions with less frequent board meetings have better ethical reputation. Overall, our empirical findings suggest that stronger board oversight may promote ethical behavior in the financial industry. (shrink)

Abstract:Comparatively few studies have analyzed the social behavior of multinational corporations (MNCs) at a cross-national level. To address this gap in the literature, we propose a “transnational” model of corporate social responsibility (CSR) that permits identification of universal domains, yet incorporates the flexibility and adaptability demanded by international research. The model is tri-dimensional in that it juxtaposes: 1) Bartlett and Ghoshal’s (1998, 2000) typology of MNC strategies (multinational, global, “international,” and transnational); 2) the three conceptual domains of CSR (human rights, (...) labor, and the environment) proposed by the UN Global Compact (Compact 2003); and 3) Zenisek’s (1979) description of three CSR perspectives (ideological, societal, and operational). The end result is a multidimensional typology that permits the organization and development of empirical CSR research in an international setting. (shrink)

This article discusses issues of social and distributive justice in the context of global capitalism in the twenty-first century and the necessity of incorporating values-clarification and ethical leadership as part of the core curriculum for university graduates.

Abstract:Comparatively few studies have analyzed the social behavior of multinational corporations (MNCs) at a cross-national level. To address this gap in the literature, we propose a “transnational” model of corporate social responsibility (CSR) that permits identification of universal domains, yet incorporates the flexibility and adaptability demanded by international research. The model is tri-dimensional in that it juxtaposes: 1) Bartlett and Ghoshal’s (1998, 2000) typology of MNC strategies (multinational, global, “international,” and transnational); 2) the three conceptual domains of CSR (human rights, (...) labor, and the environment) proposed by the UN Global Compact (Compact 2003); and 3) Zenisek’s (1979) description of three CSR perspectives (ideological, societal, and operational). The end result is a multidimensional typology that permits the organization and development of empirical CSR research in an international setting. (shrink)

The paper describes the approach by which ethics are integrated into the undergraduate curriculum at Northern Illinois University''s College of Business. Literature is reviewed to identify conceptual frameworks for, and issues associated with, the teaching of business ethics. From the review, a set of guidelines for teaching ethics is developed and proposed. The objectives and strategies implemented for teaching ethics is discussed. Foundation and follow-up coursework, measurement issues and ancillary programs are also discussed.

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)

Corporate Social Responsibility (CSR) has existed in name for over 70 years. It is practiced in many countries and it is studied in academia around the world. However, CSR is not a universally adopted concept as it is understood differentially despite increasing pressures for its incorporation into business practices. This lack of a clear definition is complicated by the use of ambiguous terms in the proffered definitions and disputes as to where corporate governance is best addressed by many of the (...) national bodies legislating, mandating, or recommending CSR. This article explores the definitions of CSR as published on the Internet by governments in four countries (United Kingdom (UK), France, the United States, and Canada). We look for a consensus of understanding in an attempt to propose a more universal framework to enhance international adoption and practice of CSR using the triple bottom line. Our results concur with the findings of both national and international bodies and suggest that both within and among the countries in our study there exists no clear definition of the concept of CSR. While there are some similarities, there are substantial differences that must be addressed. We present a number of proposals for a more universal framework to define CSR. (shrink)

This paper documents that business ethics has positive impacts upon the development of intellectual capital. Knowledge has become the most important asset of modern businesses, and this study argues that business ethics is associated with the development of intangible knowledge resources—intellectual capital. Businesses with ethical values at the core reinforce ethical conducts and successfully build trust with their various stakeholders, leading to the formation of an ethical and trustworthy corporate culture and a positive corporate environment. Thus, in this reasoning, an (...) ethical approach to business can encourage open communication, problems solving, knowledge sharing and creativity among employees to increase organisational capital; enhance interactions and relationships with suppliers, customers and other stakeholders to increase social capital; attract and retain good talent to increase human capital. Questionnaire survey is adopted as the research method with businesses in the electronic and information technology industries in Taiwan as sample. The results suggest that business ethics is associated with increased intellectual capital. Thus, this study demonstrates that the development of intellectual capital is in line with strengthened ethics. It contributes to the literature through combining research on business ethics with intellectual capital theories and extends the extant intellectual capital literature. (shrink)

Adequate discussion of individuals' moral deliberation is notably absent from much of the literature on corporate social responsibility (CSR). We argue for a refocusing on the role of the individual in that context. In particular we regard this as important in CSR course design, for practical, pedagogical and moral reasons. After addressing some of the theoretical background to our argument, and noting some respects in which individual action features in the context of CSR, we consider the usefulness (or otherwise) of (...) academic ethical theory in relation to CSR issues and dilemmas in practice. It is suggested that, without dispensing entirely with ethical theory, emphasis should be placed on informed debate and moral judgement among members of organisations (or seminar groups) and some short case examples are provided. Finally we suggest that such approaches may be appropriate if trends towards ‘mainstreaming’ concern for CSR throughout business school curricula are realised. (shrink)

In recent years, the stakeholder approach has been widely applied in the debate on corporate social responsibility (CSR). Although many authors of this approach have reviewed many elements of the model, they have unconditionally accepted several criteria assumed by Freeman ( 1984 ) to identify stakeholders. In general, stakeholder authors have assumed that (a) the company establishes dyadic relationships with other agents, and (b) decisions made by a company only have foreseen and direct effects on other agents. These criteria have (...) enabled researchers to understand simple processes. However, they have also prevented researchers from explaining how action comes about, and how responsibility is shared, in many complex processes taking place in contemporary societies. Such complex processes involve many agents, and each decision can generate unexpected effects which accumulate or disseminate. Furthermore, the normative structure governing these processes can affect and/or be affected by the actions of agents. In this study, we propose new criteria to expand the stakeholder model and facilitate the study of CSR in such processes. (shrink)

Despite the emergence of corporate social responsibility, the impact of CSR efforts on customer relationships remains decidedly unclear. Moreover, previous studies have examined CSR in cross-sectional, experimental, and/or artificial settings. Through field survey data collected at both the beginning (n = 750) and conclusion (n = 469) of the 2007-2008 NBA season, the authors investigate linkages between customers' perceptions of the CSR performance of an NBA team and the strength of their relationship with this same organization. With all respondents of (...) the latter survey participating in both samples, the authors assess how CSR performance impacts customer relationships over time. The findings show how a firm that engages in CSR initiatives may reap rewards by building trusting and committed customer relationships which, in turn, help forge desirable customer behaviors. The results also demonstrate how CSR's influence strengthens over the course of the tested business cycle, thus yielding revealing insights to academics and practitioners when it comes to understanding the real-world impact of CSR performance for strengthening customer relationships. (shrink)

In the mid-1960s and 1970s the field of business ethics saw a basic shift in emphasis from personal responsibility to corporate responsibility. While the notion of corporate responsibility has come to be a dominant concept in the field of business ethics since that time, it is a contested concept that admits of a range of conceptions. A concern underlying this paper is that many of these conceptions are less adequate than they might be. This paper has two overlapping goals. First, (...) it seeks to elaborate a more adequate conception of corporate responsibility by drawing upon critical theory to distinguish three different normative realms (viz., legitimacy, morality and ethics). Second, the paper attempts to indicate from a critical theory perspective the nature of corporate responsibilities in each of these realms. The paper begins with a short introduction to German critical theory and an explanation of the different normative realms. The following three sections elaborate in turn the responsibilities of corporations in each on the three normative realms. Finally, the conclusion attempts to indicate some of the advantages of a critical theory conception of corporate responsibility. (shrink)

The concept of the Transitional Economy denotes the problematic processes of change confronting nations wishing to achieve levels of economic development comparable with that of Western nations. Such an objective is problematic, as these nations may also be said to be in a state of transition. Globalization and E-commerce have necessitated a reconsideration of the nature of business activity and its implications for both society and the individual.Writers such as Gray (1998) warn against the "refashioning" of other nations in the (...) image of the American free market. Business ethics can be seen as a symbolic expression of Beck''s (1992) concern with the implications of Risk Society and the uncertainties arising from the realization that scientific, technological, and economic progress are not necessarily concomitant with social, cultural, and political progress. Locating business ethics within the theoretical context of Reflexive Modernity provides a means of evaluating the contribution that it can make to providing a critical forum for considering the ways in which business organisations are responding to concerns regarding business activity. (168). (shrink)

The conceptual literature increasingly portrays corporate philanthropy (CP) as an old-fashioned and ineffective operationalization of a firm’s corporate social responsibility. In contrast, empirical research indicates that corporations of all sizes, and both in developed and emerging economies, actively practice CP. This disadvantaged status of the concept, and research, on CP, complicates the advancement of our knowledge about the topic. In a systematic review of the literature containing 122 journal articles on CP, we show that this business practice is loaded with (...) unique characteristics, strengths, and weaknesses, and both conceptual and practical challenges that require renewed attention. We identify six interrelated but distinctive research themes in the literature: concept, motives, determinants, practices, business outcomes, and social outcomes. Dividing the literature on CP into six research themes creates an insightful comprehensive map of this intellectual terrain. Moreover, we distinguish among the level at which CP is analyzed: individual, organizational, institutional, or any combination of these levels. The review reveals significant gaps in the knowledge on CP. Most importantly we find that the conceptualization is limited, the research is mostly quantitative, the effects of CP on society are severely under-researched, and there is a lack of multilevel analyses. A detailed future research agenda is offered, including specific suggestions for research designs and measurements. (shrink)

Adequate discussion of individuals' moral deliberation is notably absent from much of the literature on corporate social responsibility (CSR). We argue for a refocusing on the role of the individual in that context. In particular we regard this as important in CSR course design, for practical, pedagogical and moral reasons. After addressing some of the theoretical background to our argument, and noting some respects in which individual action features in the context of CSR, we consider the usefulness (or otherwise) of (...) academic ethical theory in relation to CSR issues and dilemmas in practice. It is suggested that, without dispensing entirely with ethical theory, emphasis should be placed on informed debate and moral judgement among members of organisations (or seminar groups) and some short case examples are provided. Finally we suggest that such approaches may be appropriate if trends towards ‘mainstreaming’ concern for CSR throughout business school curricula are realised. (shrink)

This study focuses on why some companies in developing countries go beyond environmental regulations when implementing their corporate environmental social responsibilities or citizenship behavior. Drawing mainly upon the new institutional theory, this study develops a conceptual framework to explain three institutional factors: companies’ market orientations, industrial characteristics, and corporate identities. Accordingly, we suggest that companies from developing countries that are oriented to markets in developed countries, operate in highly concentrated industries, and have missionary identities adopt corporate environmental citizenship behavior by (...) going beyond environmental regulations. The study also discusses the theoretical, policy, and managerial implications of the conceptual framework. (shrink)