As concepts of corporate social responsibility (CSR) continue to evolve, the predicament facing CSR managers when attempting to balance the differing interests of various stakeholders remains a persistent management challenge. A review of the extensive literature in this field reveals that the conceptualisation of corporate approaches to responsible stakeholder management remains underdeveloped. In particular, CSR practices within the specific context of the pharmaceutical industry, a sector which particularly dramatically depicts the stakeholder management dilemmas faced by business managers, has been under-researched. (...) To address this gap, this paper utilises qualitative, exploratory data, obtained via multiple research methods, to investigate the CSR practices of major pharmaceutical companies in the UK and Germany. The data are employed to critically re-examine and revise a previously published explanatory framework which identifies the management steps involved in CSR stakeholder engagement. The resulting revised explanatory framework is the main contribution of this paper. By abstracting those factors which influence CSR practice, it provides an analytical tool which is designed to be of practical use for business decision-makers when managing their stakeholder engagement activities. Given that the research addresses values and ideals and prescribes practical recommendations for practitioners, it is essentially applied and normative in nature. Ultimately, the framework proposes a set of steps for developing CSR strategies which could help CSR professionals to make a ‘mindset transition’ from a narrower ‘traditional’ approach to CSR to a more innovative way of thinking. (shrink)

The paper examines the education and training of adults in ethics. It applies to courses at universities and colleges as well as in the work place. The paper explores the evidence on our ability to strengthen moral behaviour through courses on ethics, finds it to be weak, so starts with the assumption that we cannot teach people to be ethical. The paper asks therefore what the objectives of a course could be and how best to achieve them. It examines the (...) different theories in the literature, eventually settling on four objectives: increasing moral cognition; teaching a widening and strengthening of ethical practices; adopting teaching approaches that maximise learning impact, and developing the personal skills of individuals in negotiation and persuasion. All four objectives are of value to people who seek an ethical work environment. The paper then explores the theories and differing approaches used for achieving each objective, including among others, public interest disclosures, structuring and using codes of ethics, case problems and other experiential learning techniques, organisational and institutional approaches to ensuring ethical behaviour, classroom interaction, the role of theory, team teaching and tailoring the courses to meet an ethical needs analysis for that discipline, profession or organisation. (shrink)

Across two studies the hypotheses were tested that stressful situations affect both leadership ethical acting and leaders' recognition of ethical dilemmas. In the studies, decision makers recruited from 3 sites of a Swedish multinational civil engineering company provided personal data on stressful situations, made ethical decisions, and answered to stress-outcome questions. Stressful situations were observed to have a greater impact on ethical acting than on the recognition of ethical dilemmas. This was particularly true for situations involving punishment and lack of (...) rewards. The results are important for the Corporate Social Responsibility (CSR) of an organization, especially with regard to the analysis of the Stressors influencing managerial work and its implications for ethical behavior. (shrink)

Mary Gentile’s Giving Voice to Values presents an approach to ethics training based on the idea that most people would like to provide input in times of ethical conflict using their own values. She maintains that people recognize the lapses in organizational ethical judgment and behavior, but they do not have the courage to step up and voice their values to prevent the misconduct. Gentile has developed a successful initiative and following based on encouraging students and employees to learn how (...) to engage in communication or action to express their values within an organization’s formal and informal value system. The purpose of this analysis is to examine the Giving Voice to Values approach to empowering the individual to take action to deal with lapses in organizational ethics. We examine the role of Giving Voice to Values in business ethics education, considerations for implementing GVV, and recommendations for business educators and corporate ethics officers. We conclude that while GVV is an effective tool, it is not a comprehensive or holistic approach to ethics education and organizational ethics programs. (shrink)

Driven by recent accreditation mandates, a changing legal environment, and multiple high-visibility corporate ethics scandals, many business schools are responding to the growing movement within higher education to integrate ethics into the curricula. The literature suggests that the amount of attention given to ethics varies widely among institutions, and has not been coherently developed. Moreover, institutions have struggled to tie related projects and instruction to the overall concept of assurance of student learning. The purpose of this paper is to provide (...) a framework for institutions interested in creating an interdisciplinary business ethics program that combines critical success factors, assurance of student learning and continuous quality improvement. Using a nationally recognized business school’s ethics program, we provide an example of how our model can be applied at other institutions based on their own unique vision, mission and goals. (shrink)

This article reports on the development of the managerial ethical profile (MEP) scale. The MEP scale is a multilevel, self-reporting scale measuring the perceived influence that different dimensions of common ethical frameworks have on managerial decision making. The MEP scale measures on eight subscales: economic egoism, reputational egoism, act utilitarianism, rule utilitarianism, self-virtue of self, virtue of others, act deontology, and rule deontology. Confirmatory factor analysis (CFA) was used to provide evidence of scale validity. Future research needs and the value (...) of this measure for business ethics are discussed. (shrink)

Previous work suggests that moral intensity and the perceived importance of an ethical issue can influence individual ethical decision making. However, prior research has not explored how the various dimensions of moral intensity might differentially affect PIE, or how moral intensity might function together with (or in the presence of) PIE to influence ethical decision making. In addition, prior work has also not adequately investigated how the operational context of an organization, which may embody conditions or practices that create barriers (...) to ethical decision making, may differ from other functional areas of an organization. Consequently, this study investigated the relationships among moral intensity, perceived ethical issue importance, and three stages of the ethical reasoning process: recognition of an ethical issue, ethical judgment, and ethical intention. Using an internet-based, self-report survey containing two operations management scenarios and various ethics measures, information was collected from business professionals working for a Midwestern financial services organization. The hierarchical regression results indicated that some dimensions of moral intensity were positively related to PIE, ethical issue recognition, and ethical judgment, and that PIE was associated with increased ethical issue recognition and ethical judgment. The steps of ethical reasoning were also positively interrelated. (shrink)

How do business leaders make ethical decisions? Given the significant and wide-spread impact of business people’s decisions on multiple constituents, how they make decisions matters. Unethical decisions harm the decision makers themselves as well as others, whereas ethical decisions have the opposite effect. Based on data from a study on strategic decision making by 16 effective chief executive officers, I propose a model for ethical decision making in business in which reasoning and intuition interact through forming, recalling, and applying moral (...) principles necessary for long-term success in business. Following the CEOs in the study, I employ a relatively new theory, rational egoism, as the substantive content of the model and argue it to be consistent with the requirements of long-term business success. Besides explaining the processes of forming and applying principles, I briefly describe rational egoism and illustrate the model with a contemporary moral dilemma of downsizing. I conclude with implications for further research and ethical decision making in business. (shrink)

Disparity in consumer ethics reflects cultural variations; these are differences in the collective programming of the mind that distinguishes one culture from another. This study explores the differences in consumer ethics across cultural dimensions using Hofstede's (in Culture's consequences: international differences in work-related values, Sage, Beverly Hills, 1980) model (collectivism, masculinity, power distance, and uncertainty avoidance) and Muncy and Vitell (in J Bus Res 24(4): 297-311, 1992) consumer ethics model (i.e., illegal, active, passive, and no harm). This is the first (...) study to empirically explore consumer ethics using these two major constructs. Seven hundred sixty one African American consumers were used to test the four major hypotheses developed in this study. Current research has revealed that there are significant differences in ethics between consumers who score high and consumers who score low on Hofstede's four cultural dimensions. In general, this research revealed that consumers who score high on collectivism, high on uncertainty avoidance, low on masculinity, and low on power distance scales reject questionable activities more than consumers who score low on collectivism, low on uncertainty avoidance, high on masculinity, and high on power distance. This study should prove valuable to international marketers because the Hofstede cultural model allows managers to identify differences in consumer ethics across different cultures and thus provides a theoretical base for designing effective marketing strategies. (shrink)

Role conflict occurs when a job possesses inconsistent expectations incongruent with individual beliefs, a situation that precipitates considerable frustration and other negative work outcomes. Increasing interest in processes that reduce role conflict is, therefore, witnessed. With the help of information collected from a large sample of individuals employed at an education-based healthcare institution, this study identified several factors that might decrease role conflict, namely mindfulness and organizational ethics. In particular, the results indicated that mindfulness was associated with decreased role conflict, (...) and that perceived ethical values and a shared ethics code were associated with decreased role conflict and increased mindfulness. Despite the study's limitations, these findings imply that companies might better manage role conflict through the development of mindfulness and organizational ethics. (shrink)

Managers often encounter situations that require them to make decisions with ethical implications that affect the organization as well as the managers themselves. The issue we address in this study concerns whether the ethical consistency of managerial decisions is situation dependent. That is, are the decisions managers make ethically consistent when they are faced with different ethical situations? We hypothesize that managerial decisions will vary depending on the type of ethical situation they encounter. We also hypothesize that gender plays a (...) role in determining the ethical consistency of managerial decisions. Results of statistical analyses support our hypotheses. (shrink)

This paper highlights the potential harms in the current state of business ethics education and presents an alternative new model of business ethics education. Such potential harms in business ethics education is due largely to restricted cognitive level of reasoning, a limited level of ethical conduct which remains only responsive and adaptive, and the estrangement between strategic thinking and ethical thinking. As a remedy for business ethics education, denatured by these potential harms, a new dynamic model of business ethics education (...) is proposed. The new model is composed of a basic foundation for business ethics education and three practical components of business ethics education. The basic foundation comprises of ethical reasoning, moral sentiments, and ethical praxis. Three practical components of business ethics education are, respectively, to intensify moral imagination, to develop ethical wisdom and courage, and to enhance meta-strategic competences. The ultimate purpose of these practical components is to help moral subjects to conduct ethical leadership, to actualize integrity between individuals and organization, and to fulfill the social responsibility of business firms. This new model is expected to attract attention to the effective business ethics education both in college and in industry, and to be used as a benchmark for new curriculum designs and development of teaching methods. Finally, some teaching methodologies and pedagogical experiments are introduced and discussed according to this new model of business ethics educaiton. (shrink)

This research examines the extent to which similarities and differences exist in the codes of professional conduct of certified (chartered) accountants across the following countries: the United States, Taiwan, South Korea, Malaysia, Ontario (Canada), Australia, India, and Hong Kong. These eight countries exemplify some of the diversity in economic, political, legal, and cultural environments in which public accountants practice. The professional codes of ethics establish the ethical boundary parameters within which professional accountants must operate and they are a function of (...) these environments.The results of the study reveal that commonalities exist on some ethical rules indicating that some rules are indeed "culture free". Cross-country variations, however, exist as to the specificity and elaborateness of the rules. Such variations can be attributed to cultural and legal differences, as well as the length of time each professional organization has been in existence. An understanding of the similarities and differences in the codes is important to individuals who may work in these countries. Professional accountants involved in international business must understand the implications of the decisions they make in light of the ethical codes and moral values of their counterparts in foreign countries. After a discussion of the similarities and differences in the codes, the implications of these comparisons for accounting practice are discussed. (shrink)

In Australia as is the case elsewhere, ethics is a developing aspect of business behaviour. Many educational institutions and business enterprises have a strong interest in the subject, particularly from the practical viewpoint of creating an ethical culture in business that has substantial practical effects. In this paper, the codes of ethics of five large enterprises are examined. They were selected as being typical of a collection of corporate codes used in Australia held by the Ethics Research Group at the (...) University of Technology, Sydney. Two codes were from international companies: a chemical manufacturing company and a health, beauty and medical manufacturer. The other codes were from an Australian bank, an Australian federal government business agency, and an Australian mining company.Corporate codes of ethics rarely contain operational definitions to direct their addressees on situations of moral hazard and the required response, to achieve a particular desired ethical corporate culture. Consequently, addressees constitute the locus of ethical decision making in enterprises. By contrast, the language used in the corporate codes examined construct an authoritarian position in the writer/reader relationship from the overuse of grammatical structures such as relational clauses, the passive, nominalisation, grammatical metaphor and modality. Collectively, these structures communicate a strong sense of obligation and even powerlessness since a strong authoritarian tone is established which does not give the addressees the possibility of discretionary decision making. (shrink)

The growing body of whistleblowing literature includes many studies that have attempted to identify the individual level antecedents of whistleblowing behavior. However, cross-cultural differences in perceptions of the ethicality of whistleblowing affect the judgment of whistleblowing intention. This study ascertains how Chinese managers/professionals decide to blow the whistle in terms of their locus of control and subjective judgment regarding the intention of whistleblowing. Hypotheses that are derived from these speculations are tested with data on Chinese managers and professionals. Statistical analysis (...) largely supports the hypotheses, which suggests that an individual''s locus of control does moderate the relationship between ethical judgment and whistleblowing. (shrink)

In 2001 soon after the Asian Crises of 1997-1998, the DotcomBubble, 9/11, the Enron crises triggered a fraud crisis in Wall Street that impacted the market to the core. Since then scandals such as the Lehman Brothers and WorldCom in 2007-2008 and the Great Recession have surpassed it, Enron still remains one of the most important cases of fraudulent accounting. In 2000’s even though the financial industry had become highly regulated, deregulation of the energy industry allowed companies to place bets (...) on future prices. At the peak of the dotcom bubble Enron was named as a star innovator but when the dotcom bubble burst, Enron’s plan to build high speed internet did not flourish and investors started to realize losses. Furthermore, the financial losses of the operations were hid using the market to market accounting technique instead of book value and using special purpose entities to hide debt. The root cause that was identified as a company with a toxic corporate culture focused on officer compensation rather than social responsibility and hence faulty leadership. Is it possible then that; ethical accounting practices, social responsibility and ethics all become inferior goods as income rises in an ‘irrationally exuberant’era? (shrink)

This paper attempts to delineate the interaction between trust, emotion, and ethical decision making. The authors first propose that trust can either incite an individual toward ethical decisions or drag him or her away from ethical decisions, depending on different situations. The authors then postulate that the feeling of guilt is central in understanding how trust affects the ethical decision making process. Several propositions based on these assumptions are introduced and implications for practice discussed.

The role of uncertainty within an organization’s environment features prominently in the business ethics and management literature, but how corporate investment decisions should proceed in the face of uncertainties relating to the natural environment is less discussed. From the perspective of ecological economics, the salience of ecology-induced issues challenges management to address new types of uncertainties. These pertain to constraints within the natural environment as well as to institutional action aimed at conserving the natural environment. We derive six areas of (...) ecology-induced uncertainties and propose ecology-driven real options as a conceptual approach for systematically incorporating these uncertainties into strategic management. We combine our results in an integrative investment framework and illustrate its application with the case of carbon constraints. (shrink)

In this paper, we outline some of the connections between the literatures of organizational storytelling, spirituality in the workplace, organizational culture, and authentic leadership. We suggest that leader storytelling that integrates a moral and spiritual component can transform an organizational culture so members of the organization begin to feel connected to a larger community and a higher purpose. We specifically discuss how leader role modeling in authentic storytelling is essential in developing an ethically and spiritually based organizational culture. However, we (...) also acknowledge a potential dark side to leader storytelling. Implications for authentic storytelling research and practice are discussed. (shrink)

A corporate culture strengthened by ethical values and other positive business practices likely yields more favorable employee work responses. Thus, the purpose of this study was to assess the degree to which perceived corporate ethical values work in concert with group creativity to influence both job satisfaction and turnover intention. Using a self-report questionnaire, information was collected from 781 healthcare and administrative employees working at a multi-campus education-based healthcare organization. Additional survey data was collected from a comparative convenience sample of (...) 127 sales and marketing employees working for a variety of firms operating in the south-central United States. The results indicated that group creativity and corporate ethical values were positively related, and that both variables were associated with increased job satisfaction. Conversely, corporate ethical values and job satisfaction were associated with decreased turnover intention. Sales managers should create work cultures that precipitate increased ethical values and group creativity, and suggestions about how they may institutionalize these factors are provided. (shrink)

Individualized customer information is at the heart of on-line commerce. Using increasing amounts of customer-specific data enhances the success and value of one-to-one on-line marketing; but the extensive gathering and use of data specific to individuals also causes alarm over the loss of digital privacy, setting up a confrontation between e-commerce and society. Governments and nations, particularly in Europe, have reacted with a reliance on sweeping laws governing digital privacy protection while other nations such as the U.S. have generally preferred (...) to allow companies and industry associations to regulate themselves. This tenuous balance is under attack from both sides. In this paper, we set up a framework which incorporates the environmental context, ethical perspectives and firm-specific considerations to help firms develop a strategy for handling digital privacy concerns. (shrink)

The purpose of this study was to assess the relationships among ethical context, organizational commitment, and person-organization fit using a sample of 304 young working adults. Results indicated that corporate ethical values signifying different cultural aspects of an ethical context were positively related to both organizational commitment and person-organization fit. Organizational commitment was also positively related to person-organization fit. The findings suggest that the development and promotion of an ethical context might enhance employees' workplace experiences, and companies should consider adopting (...) ethical policies that support principled conduct, punish unethical actions, and increase individual perceptions of an ethical company environment. (shrink)

This paper examines the role of community norms and values in determining employees' ethical perceptions. The local community is viewed as a microculture which contributes to the ethical framework within which firms operate. Research findings indicate the existence of a community-based microculture that potentially moderates an organization's ability to create homogenous organizational ethical cultures in various geographical locations.

This paper examines the impact of Chinese business managers’ moral philosophies on the perception of corrupt payments such as bribery, kickbacks and gift giving. Business managers from Mainland China were selected as target respondents. As hypothesized the survey results generally indicate that moral relativism is a significant predictor of Chinese business managers’ favorable perception of bribery and kickbacks. In examining the attitude toward gift giving, the survey showed that an individual’s attitude toward gift giving was neither affected by their moral (...) relativism nor by their moral idealism, which implies that gift giving is widely accepted as legal practice in business in Chinese cultural society. (shrink)

Business codes are a widely used management instrument. Research into the effectiveness of business codes has, however, produced conflicting results. The main reasons for the divergent findings are: varying definitions of key terms; deficiencies in the empirical data and methodologies used; and a lack of theory. In this paper, we propose an integrated research model and suggest directions for future research.

In this article we discuss whether it pays to invest ethically. Our aim is to examine corporate social responsibility from philosophical, moral and practical points of views. We focus on two main issues related to ethical investments. Firstly we discuss the moral dilemma of how capitalism has changed its shape in today's world and from 'blaming the business' there is a general attempt to use the markets to promote ethics values and corporate social responsibility. Secondly, we analyze the growth of (...) ethical investment funds in the UK today, and their performance, and highlight some of the institutional investors involved in the management of ethical funds. We discuss whether ethical investments really succeed in reducing the conflict between profit-making and social responsibility as they promise or whether they use commercial rhetoric and market mechanism to merely sell us our own perceived values back. We conclude that the paper has a key contribution in setting the scene for future research in an area that is evolving and of fundamental importance to companies, investors and various stakeholder groups. (shrink)

There is a fundamental tension in business ethics between the apparent need to ensure ethical conduct through hierarchical control, and the encouragement of individuals' potential for autonomous moral judgement. In philosophical terms, these positions are consequentialist and Kantian, respectively. This paper assumes the former to be the dominant position in practice, and probably in theory also, but regards it as a misplaced extension of the more general managerial tendency to seek and maintain control over employees. While the functions of such (...) control are recognized, the arguments in favour of individuals' moral autonomy are pursued from both a Kantian and a social–theoretic perspective. Reference is made to Kohlberg's research on moral development that provides an insight into how individuals, through participation in debate with colleagues, might become more effective moral agents within organizational settings. This is contrasted with a managerial perspective, which pays lip service to individuals' right to such genuine involvement. The paper considers psychological manipulation and the legitimacy of managerial authority on matters of ethics, as opposed to in the purely technical context. The wider societal significance of such hierarchical power in organizations constitutes an important background to the paper. It is concluded that genuine, non‐manipulative, participation by employees (and others) is the way forward for the ethical management of business ethics. (shrink)

The discussion of moral dilemmas is often proposed as one way to teach ethics. But can ethics be taught to everyone? Do participants’ value orientations predict the acquisition of moral competence in an educational context? This study presents data from an evaluation of a course on the social consequences of information technology. IT-related dilemma discussions were used extensively in the course. The participants answered questionnaires at the beginning of the course and before their final exam at the end of term. (...) Moral competence was measured with the Moral Judgment Test. A questionnaire on individual reflexive values was used for the assessment of value orientations. Although the participants’ average level of moral competence did not change significantly, there was evidence that participants with a high degree of materialistic values were less likely to acquire moral competence during the course. (shrink)

There is a fundamental tension in business ethics between the apparent need to ensure ethical conduct through hierarchical control, and the encouragement of individuals' potential for autonomous moral judgement. In philosophical terms, these positions are consequentialist and Kantian, respectively. This paper assumes the former to be the dominant position in practice, and probably in theory also, but regards it as a misplaced extension of the more general managerial tendency to seek and maintain control over employees. While the functions of such (...) control are recognized, the arguments in favour of individuals' moral autonomy are pursued from both a Kantian and a social–theoretic perspective. Reference is made to Kohlberg's research on moral development that provides an insight into how individuals, through participation in debate with colleagues, might become more effective moral agents within organizational settings. This is contrasted with a managerial perspective, which pays lip service to individuals' right to such genuine involvement. The paper considers psychological manipulation and the legitimacy of managerial authority on matters of ethics, as opposed to in the purely technical context. The wider societal significance of such hierarchical power in organizations constitutes an important background to the paper. It is concluded that genuine, non‐manipulative, participation by employees is the way forward for the ethical management of business ethics. (shrink)

In light of grand societal challenges, most recently the global Covid-19 pandemic, there is a call for research on responsible leadership. While significant advances have been made in recent years towards a better understanding of the concept, a gap exists in the understanding of responsible leadership in emerging countries, specifically how leaders resolve prevalent moral dilemmas. Following Werhane, we use moral imagination as an analytical approach to analyze a dilemmatic stakeholder conflict through the lense of different responsible leadership mindsets and (...) in light of different ethical principles and moral background theories. Based on this analysis, we arrive at a tentative moral judgement, concluding that the instrumental approach is morally inferior and recommending the integrative approach as the morally superior choice. In the subsequent discussion—focussed on what “could” be done, we apply the integrative script and use moral imagination as a pathway for generating morally justifiable solutions. Through this analysis, we provide novel insights on how to apply an integrative responsible leadership approach to a stakeholder conflict situation, using the single case study to expand the responsible leadership discussion to emerging markets. (shrink)

Leadership studies on corporate ethical behavior and practices have grown considerably, contributing significant knowledge on ethical leadership challenges that are organizational and industry focused. However, complex socio-ecological systems are placing pressure on organizational culture and old patterns of leadership behavior that play a role in organizational justice. In this study, we argue that scholars of business ethics must consider the role of organizational justice and use person-organization fit (P–O fit). To address this, our study investigates the mediating effect of organizational (...) justice on the relationship between ethical leadership and employees’ ethical behavior. We also examine the moderating role of P–O fit on the relationship between organizational justice and employee’s ethical behavior. The study survey focused on 295 employees belonging to organizations in Iraq. We show that ethical leadership positively influences employees’ ethical behavior, and this relationship is shaped by organizational justice. The findings reflect the positive impact of organizational justice on ethical behavior, and this relationship is more pronounced in employees with high rather than low P–O fit. This study clarifies the importance of employee’s P–O fit and its impact on organizational processes for creating a positive impact on ethical behavior in the workplace. We also share practical implications of the study and recommend systemic research that explores this area. (shrink)

The aim of this Web-based survey of 15 German companies with an international profile was to identify which higher-level values serve as a basis for a company culture that promotes integrity and can thereby also be used to promote crime prevention. Results on about 2000 managers in German parent companies and almost 600 managers in Central and North European branch offices show that a major preventive role can be assigned to a company culture that promotes integrity. This requires a ‘tone (...) from the top’, ‘ethical leadership’ from the direct superior, and a general set of values that can be encouraged through training courses. Moreover, employees have to perceive these values as promoting their careers. The survey reveals that the companies in this study have basically succeeded in establishing their system of values in their Central and North European as well as their Asian branch offices. Moreover, it shows that the main values preventing crime on the management level are trustworthiness and consistency. Open communication is an important value on all levels of a company, and this is supplemented by transparency, compliance with the rules, and a rejection of behaving in one’s own interest. It is concluded that in spite of regional differences, major international companies can possibly make an important contribution to bringing about cultural change in regions with an affinity for corruption by implementing a culture that promotes integrity in both their company and their daily business. (shrink)

Originally delivered at a conference of Marxist philosophers in China, this article examines some links, and some tensions, between business ethics and the traditional concerns of Marxism. After discussing the emergence of business ethics as an academic discipline, it explores and attempts to answer two Marxist objections that might be brought against the enterprise of business ethics. The first is that business ethics is impossible because capitalism itself tends to produce greedy, overreaching, and unethical business behavior. The second is that (...) business ethics is irrelevant because focusing on the moral or immoral conduct of individual firms or businesspeople distracts one’s attention from the systemic vices of capitalism. I argue, to the contrary, that, far from being impossible, business requires and indeed presupposes ethics and that for those who share Marx’s hope for a better society, nothing could be more relevant than engaging the debate over corporate social responsibility. In line with this, the article concludes by sketching some considerations favoring corporations’ adopting a broader view of their social and moral responsibilities, one that encompasses more than the pursuit of profit. (shrink)

We analyze ethical policies of firms in industrialized countries and try to find out whether culture is a factor that plays a significant role in explaining country differences. We look into the firm’s human rights policy, its governance of bribery and corruption, and the comprehensiveness, implementation and communication of its codes of ethics. We use a dataset on ethical policies of almost 2,700 firms in 24 countries. We find that there are significant differences among ethical policies of firms headquartered in (...) different countries. When we associate these ethical policies with Hofstede’s cultural indicators, we find that individualism and uncertainty avoidance are positively associated with a firm’s ethical policies, whereas masculinity and power distance are negatively related to these policies. (shrink)

This paper explores research in educational psychology and learning theory in a search for insights to enhance business ethics training Useful educational principles uncovered are then applied to the development of an ethics training initiative for sales professionals. The paper concludes with suggestions for future research to help enrich business ethics training.

We investigate the entrepreneurial opportunities and ethical dilemmas presented by technological turbulence. More specifically we investigate the line between Baumol’s [J. Polit. Econ. 98 (1990) 893] productive (e.g. innovation), unproductive (e.g. rent seeking) and destructive (e.g. criminal) entrepreneurship through three examples of Internet innovation – spam (destructive), music file sharing (unproductive), and Internet pharmacies (potentially productive). The emergence of accessible Internet technologies, under present norms, has created the potential for all three entrepreneurial activities. Because of the propensity for self-serving biases (...) and for bending the rules, the need for creativity in overcoming obstacles and overall liabilities of newness, entrepreneurs are likely to challenge established industrial morals and laws. Unlike new entrants, incumbents must abide by the currently accepted norms, and thus suffer from “liabilities of oldness”. The challenge for new entrants is to change sociopolitical legitimacy, whereas incumbents need to defend the established norms. We discuss competitive and other issues that result from technological turbulence and innovation. (shrink)

Businesses that maintain ethical standards have an advantage in the marketplace based on the increasing interest of consumers in products that have a social and ethical component. Fair trade organisations that adopt environmental, social and ethical principles in trading are in a good position to make the most of this growing interest in the market. However, it is unclear whether fair trade organisations are taking full advantage of emerging market opportunities for ethically traded products. This research explores this issue by (...) describing the business strategies of three fair trade organisations that import and sell craft goods into Western countries and evaluates them in the context of this growing market. The research findings indicate that in order to remain in business, fair trade craft organisations have had to adopt better business practices in recent years, improving quality, customer service and product offerings to customers. However, growth appears to be limited, as distribution remains focused on a small, niche market. This paper explores the distribution strategies of two fair trade commodity organisations that are successfully reaching a wider customer base, demonstrating that fair trade products have a unique selling advantage in the mainstream marketplace. In conclusion, fair trade craft organisations are not exploiting this market opportunity to the degree they should and will need to explore wider distribution and alternative business strategies to expand their market share. (shrink)

The research purpose of the study is to investigate and identify correlates of ethical behaviour and attitudes of individuals currently working or pursuing a business‐related graduate degree in Cyprus. Analysis of the quantitative questionnaire revealed that the majority of the respondents had a concept of ‘ethical behaviour’, consider ethics important, and hold attitudes that are conducive to ethical behaviour in business. In addition, findings revealed significant differences in three correlates: age, gender and position. Finally, reflecting the findings, the authors suggest (...) specific actions that aim to improve ethical decision making in the Cyprus business environment. (shrink)

Public relations is often perceived as unethical, yet professional associations and educators position the industry as an ethical profession. The aim of this paper is to investigate the perceptions of public relations students in a communication school in Australia towards ethics. Research involving a survey and a focus group found that students perceived public relations ethics depended on a negotiation between practitioners’ responsibilities to stakeholders and theirclient or employer organisation, and broader societal expectations. They perceived professional codes of ethics to (...) be of limited value and the development of ethical understanding as incremental over the course of their studies. The findings suggest ethics should be scaffolded in public relations education, the social impact of public relations activity should be emphasised and the limitations of professional codes highlighted. (shrink)

The international economy is changing at a rapid rate. The alteration and reduction of both geographical and political borders, coupled with the growing interdependence of socially, politically, economically, and legally diverse countries, have caused multinational corporate entities to revise various policies. These revisions include revisions in marketing strategies, strategic alliances, product and service strategies and, perhaps most importantly as it affects all strategies, a MNC's approach to ethical systems. The truly global company must come to grips with the legal and (...) moral atmosphere in which it operates. The concept of moral rights, those transcending legal or political rights, drives us to review four international codes of conduct and to attempt to develop one international uniform code that might be applicable to any business, in any country or culture. (shrink)

The purpose of this study was to investigate the relationship between organizational ethical context and the individual ethical decision-making process. In addition, a new statistical approach combining cluster and discriminant analyses was developed to overcome violations of regression assumptions, which are commonly not identified and/or ignored in behavioral and psychological research. Using regressions and this new alternative method, the findings indicated that ethical context does indeed influence the various components of ethical reasoning. However, social desirability was the strongest predictor of (...) ethical decision making, which raises new concerns about how this bias can confound business ethics research. Finally, the findings showed that the alternative method provided more useful and interpretive results, indicating that it has the capacity to influence future empirical work in the field of business ethics, particularly when dealing with data that do not satisfy regression assumptions. The implications and limitations of the study are discussed, and several noteworthy suggestions for future research are provided. (shrink)

Empirical analyses of the ethics of corporations with the aim to improve the state of corporate ethics are rare. This paper develops an integrated, normative model of corporate ethics by conceptualizing the ethical quality of organizations and by relating this contextual quality to various expressions of immoral behavior. This so-called Ethics Qualities Model for organizations, which contains 21 ethical qualities, allows one to assess the ethical content of institutional groups of individuals. A proper conceptualization is highly relevant both for the (...) empirical corroboration of business ethics theories and for managerial purposes, such as judging individual and group performance or informing external stakeholders. The empirical applicability of the model is illustrated by an explorative case study of a large, globally operating financial institution. This case-study demonstrates that the corporate ethical qualities differ with respect to their perceived optimality as well as to their estimated impact on (un)ethical conduct. The various results provide managers with many clues to understand their organization and to take effective measures to improve the ethical content of their organization. (shrink)

This paper highlights the potential harms in the current state of business ethics education and presents an alternative new model of business ethics education. Such potential harms in business ethics education is due largely to restricted cognitive level of reasoning, a limited level of ethical conduct which remains only responsive and adaptive, and the estrangement between strategic thinking and ethical thinking. As a remedy for business ethics education, denatured by these potential harms, a new dynamic model of business ethics education (...) is proposed. The new model is composed of a basic foundation for business ethics education and three practical components of business ethics education. The basic foundation comprises of ethical reasoning, moral sentiments, and ethical praxis. Three practical components of business ethics education are, respectively, to intensify moral imagination, to develop ethical wisdom and courage, and to enhance meta- strategic competences. The ultimate purpose of these practical components is to help moral subjects to conduct ethical leadership, to actualize integrity between individuals and organization, and to fulfill the social responsibility of business firms. This new model is expected to attract attention to the effective business ethics education both in college and in industry, and to be used as a benchmark for new curriculum designs and development of teaching methods. Finally, some teaching methodologies and pedagogical experiments are introduced and discussed according to this new model of business ethics education. (shrink)

The use of technology in marketing has become an increasingly important competitive tool in developing and maintaining efficient and productive customer relationships. However, the ethics of using this technology has received little attention. This study investigates how and if marketing organizations are adapting their ethics policies to incorporate use of sales technology (ST). Based on in-depth interviews with executives from a variety of highly regulated to nonregulated business-to-business and business-to-consumer industries, our results show that, although most organizations indeed have codes (...) of ethics, there appears to be a gray area of how these codes address ST. Further, it appears that monitoring the ethical use of ST varies and can be a frustrating and time-consuming issue for marketing and sales executives. Implications of our findings are discussed for the benefit of marketing practitioners, ethics managers, and researchers. (shrink)

Expert systems are knowledge-based information systems which are expected to have human attributes in order to replicate human capacity in ethical decision making. An expert system functions by virtue of its information, its inferential rules, and its decision criteria, each of which may be problematic. This paper addresses three basic reasons for ethical concern when using the currently available expert systems in a decisions-making capacity. These reasons are (1) expert systems' lack of human intelligence, (2) expert systems' lack of emotions (...) and values, and (3) expert systems' possible incorporation of intentional or accidental bias. For these reasons artificial ethics seems to be science fiction. Consequently, expert systems should be used only in an advising capacity and managers should not absolve themselves from legal and ethical responsibility when using expert systems in decision making. (shrink)

This study investigates ethical decision-making by considering the differences in ethical judgments between undergraduate business and MBA students on selected ethical issues facing employees and managers of today's businesses. The study further investigates differences in ethical judgments between undergraduates and MBAs in terms of a perceived position as an employee or as a manager. The findings indicate that undergraduate students tend to be more ethical than MBA students and that both groups tend to be more ethical when they perceive themselves (...) as managers rather than employees. The authors discuss the implications for both business practitioners and educators. (shrink)

Codes of ethics are directly aimed at behavioral control, but they also affect a company’s ethical culture, which in turn concerns compliance and ethical behavior. To positively influence a company’s ethical culture, employees must be familiar with its code of ethics, perceive that top management is committed to the code, and believe that their peers also comply with the code. The evidence on whether a code’s design affects a company’s ethical culture is limited. This study’s factorial survey experiment contributes to (...) this gap in two ways: first, it investigates whether a code’s design affects how easily the code can be learned and, therefore, contributes to code familiarity. Second, it examines how a code can convey expectations regarding top management’s commitment and peers’ behavior, both of which are part of ethical culture. The results indicate that a positive tone increases code familiarity, and a code signed by top managers sends a strong signal of their commitment to the code. Finally, various implications of the results for research and practice are discussed. (shrink)