Proactive corporate social responsibility (CSR) involves business practices adopted voluntarily by firms that go beyond regulatory requirements in order to actively support sustainable economic, social and environmental development, and thereby contribute broadly and positively to society. This empirical study examines the role of the economic, social and environmental dimensions of proactive CSR on the association between three specific capabilities—shared vision, stakeholder management and strategic proactivity—and financial performance in small and medium enterprises (SMEs). Using quantitative data collected from a sample of (...) 171 Australian SMEs in the machinery and equipment manufacturing sector and employing structural equation modelling, we find that the adoption of practices in each CSR dimension by SMEs is influenced slightly differently by each capability, and affects financial performance differentially. The study also demonstrates the importance of the interaction between the three dimensions of proactive CSR in positively moderating the deployment of each individual CSR dimension to generate financial performance. Paying primary attention to the economic dimension of proactive CSR and selectively focusing on social and environmental elements of proactive CSR that drive and support the economic dimension are of key importance to sustainable long-term financial success for SMEs. (shrink)

How can one in practice go about introducing ethical values systematically into a business organisation? The process described here was presented to the annual meeting of European Business Ethics Centres, held in Prague in 1993. Dr Di Toro is Research Fellow in Business Administration, Environmental and Social Sciences Department, School of Economics, University of Siena, Piazza S. Francesco 17, 53100 Siena, Italy.

This article draws attention to the importance of enchantment in business ethics research. Starting from a Weberian understanding of disenchantment, as a force that arises through modernity and scientific rationality, we show how rationalist business ethics research has become disenchanted as a consequence of the normalization of positivist, quantitative methods of inquiry. Such methods absent the relational and lively nature of business ethics research and detract from the ethical meaning that can be generated through research encounters. To address this issue, (...) we draw on the work of political theorist and philosopher, Jane Bennett, using this to show how interpretive qualitative research creates possibilities for enchantment. We identify three opportunities for reenchanting business ethics research related to: moments of novelty or disruption; deep, meaningful attachments to things studied; and possibilities for embodied, affective encounters. In conclusion, we suggest that business ethics research needs to recognize and reorient scholarship towards an appreciation of the ethical value of interpretive, qualitative research as a source of potential enchantment. (shrink)

This study compares the different emphases on virtuous characters presented in their values, across global firms considering country and industry of origin. It presents a content analysis of the 122 codes of conduct statements from Fortune Global 500 firms, drawn from four sectors and using correspondence analysis. American firms tend to emphasize courage, while European firms emphasize integrity and empathy, surprisingly with Asian firms being closer to European ones. Retailers and pharmaceutical firms emphasize empathy, while banks and petroleum emphasize courage. (...) This study extends the newly emerging strategic paradigm of organizational virtue, by introducing an empirical study of ethical values. Implications for multinational companies are then discussed. (shrink)

While business ethics has generated a great deal of research internationally over the last few decades, academic reviews of the business ethics literature remain limited. Moreover, there has been little attempt to date to analyze this literature specifically in the Greater China region, which has been experiencing rapid socioeconomic growth and dynamic evolution of business ethics in recent decades. This paper addresses this research gap by undertaking a comprehensive and critical appraisal of the business ethics literature on Greater China. In (...) particular, it maps out the existing research findings, identifies limitations in methodology, and suggests future directions for business ethics research in this region. The findings indicate that the scholarly interests cover 24 research themes, including corporate social responsibility and social performance; ethical beliefs, judgment, values, decision-making, and culture; workplace ethics and behavior; marketing ethics and consumer behavior; and sustainability. This review reveals a growing imbalance between empirical and conceptual/theoretical studies on business ethics. In addition, the published works covered in this review heavily rely on survey method and convenience sampling, with a predominant focus on a single individual level of analysis. Importantly, this study identifies four directions for future research: contextualized theoretical development, addressing multilevel research, developing research design tailored to the Chinese context, and ensuring more diversified and rigorous data collection. (shrink)

This editorial offers new ways to ethically practice, evaluate, and use quantitative research. Our central claim is that ready-made formulas for QR, including ‘best practices’ and common notions of ‘validity’ or ‘objectivity,’ are often divorced from the ethical and practical implications of doing, evaluating, and using QR for specific purposes. To focus on these implications, we critique common theoretical foundations for QR and then recommend approaches to QR that are ‘built for purpose,’ by which we mean designed to ethically address (...) specific problems or situations on terms that are contextually relevant. For this, we propose a new tool for evaluating the quality of QR, which we call ‘relational validity.’ Studies, including their methods and results, are relationally valid when they ethically connect researchers’ purposes with the way that QR is oriented and the ways that it is done—including the concepts and units of analysis invoked, as well as what its ‘methods’ imply more generally. This new way of doing QR can provide the liberty required to address serious worldly problems on terms that are both practical and ethically informed in relation to the problems themselves rather than the confines of existing QR logics and practices. (shrink)

In our age of globalization, we need a theory of global management consistent with our common human nature. The place to begin in developing such a theory is the philosophy of traditional cultures. The article focuses on African philosophy and its fruitfulness for contributing to a theory of management consistent with African traditional cultures. It also looks briefly at the Confucian and Platonic-Aristotelian traditions and notes points of agreement with African traditions. It concludes that the needed theory of global management (...) should regard the firm as a community, not a collection of individuals, and should understand the purpose of management as promoting the common good. (shrink)

Some virtue ethicists are reluctant to consider principles and standards in business ethics. However, this is problematic. This paper argues that realistic Personalism can be integrated into virtue-based business ethics, giving it a more complete base. More specifically, two principles are proposed: the Personalist Principle (PP) and the Common Good Principle (CGP). The PP includes the Golden Rule and makes explicit the duty of respect, benevolence, and care for people, emphasizing human dignity and the innate rights of every human being. (...) The CGP entails cooperation to promote conditions which enhance the opportunity for the human flourishing of all people within a community. Both principles have practical implications for business ethics. (shrink)

This paper describes a live ethics case project that can be used to teach ethics in a broad variety of business classes. The live case differs from regular cases in that it involves a current situation. Students select an on-going or current event that involves ethical violations and write a case about it. They then present their case and run a debate about the challenges and issues outlined in the case and the actions that could have or should have been (...) taken. The dynamic project fulfills the key criteria for effective ethics education since it increases awareness of the complexity of ethical challenges, allows application of concepts, creates a personal emotional engagement in the case, is relevant, holds students accountable for their position, and creates a setting that encourages students to think critically about ethics. (shrink)

How can one in practice go about introducing ethical values systematically into a business organisation? The process described here was presented to the annual meeting of European Business Ethics Centres, held in Prague in 1993. Dr Di Toro is Research Fellow in Business Administration, Environmental and Social Sciences Department, School of Economics, University of Siena, Piazza S. Francesco 17, 53100 Siena, Italy.

China is currently experiencing rapid economic growth. The price of this, however, is environment pollution. Many Chinese corporations are lacking in corporate environmental responsibility (CER). Therefore, this study employs data from Chinese and multinational corporations to identify why Chinese corporations seldom engage in CER by investigating their motivations and stakeholders. The results show that the most important reason why Chinese corporations do not engage in CER is the fact that their competitive strategy of cost cutting makes them limited in resources, (...) such as money, employees, information, or added value. Further study implies that Chinese corporations face more survival pressure, though they are willing to take environmental responsibilities as multinational corporations do. The results also imply that government and social surroundings can play an important role to arouse CER consciousness of Chinese corporations in all stakeholders. Consequently, Chinese government has a heavy duty to promote corporations to respond to their CER in the long run. (shrink)

This is a study of 288 Korean and 323 Japanese Business executives. The result indicates that, (1) the business executives believe basically in higher level business ethics, but (2) they occasionally have to make unethical business decisions which conflict with their personal values, because of prevailing business practices. (3) However, they think higher ethical standards is useful for long-term profit and for improving workers' attitudes, and the standards can be improved, and (4) to improve ethical standards, model setting by superiors (...) is the most important and clear-cut company policies and code of ethics are essential. (shrink)

The conflict between agency and stakeholder theories of the firm has long been entrenched in organizational and management literature. At the core of this debate are two competing views of the firm in which assumptions and process contrast each other so sharply that agency and stakeholder views of the firm are often described as polar opposites. The purpose of this paper is to show how agency theory can be subsumed within a general stakeholder model of the firm. By analytically deconstructing (...) the assumptions of agency theory, it is argued that agency theory: (1) must include a recognition of stakeholders; (2) requires a moral minimum to be upheld, which places four moral principles above the interests of any stakeholders, including shareholders; (3) consists of contradictory assumptions about human nature and which give rise to the equally valid assumptions of trust, honesty and loyalty to be infused into the agency relationship. In this way, stakeholder theory is argued to be the logical conclusion of agency theory. Empirical hypotheses are presented as a means to substantiate this claim. (shrink)

This research article analyses the influence of micro-enterprise managers' perception of their relationship to their environment on the nature of their ethics. We carried out a survey with the head managers of 125 French MEs, providing a large set of primary data. Two types of variables were defined: variables related to the nature and intensity of the relationships between ME managers and their social environment, and variables related to the ethical framework that the managers used. The results of univariate and (...) bivariate analyses show significant statistical relationships between the variables that indicated perceived embeddedness in the community and ethical variables. This result underlines the idea that "communities of ethics" may have an important influence in MEs. (shrink)

Reflection on the state of business ethics as academic field in Africa has been largely neglected, partly because there existed no overall picture of what is happening in this field of study. This paper reports the findings of the first comprehensive survey on the state of business ethics as academic field on the African continent. It has both a descriptive and reflective component. In the descriptive part of the paper the research strategy and methodology used to conduct this survey is (...) outlined as well as the difficulties encountered in the research project. Then the findings with regard to how academics perceived the purpose of this field of study, what academic activity there is within this field, where it is being done, and how it is institutionalised are reported. In the reflective part of the paper, the implications of these findings are considered and some directives for the further development of business ethics as academic field are proposed. (shrink)

Does environmental management help foreign firms outperform local firms in emerging economies? While existing research suggests that environmental management may or may not benefit firm performance, the question is particularly under-investigated in the emerging economy context. Using the data on foreign investment into China, this study explores whether foreign firms that are under greater environmental pressure, at home or at the host, outperform comparable local firms in an emerging host country. In making this comparison, we use propensity-score matching and a (...) difference-in-differences approach to handle the problem of endogeneity inherent in comparing the performances of foreign versus local firms. We find empirical support that foreign firms perform better than local firms when they are under high environmental pressure in the emerging host country, and this result is driven by the foreign firms originating from countries with high environmental pressure. (shrink)

Until recently, businesses and corporations could argue that their only real commitments were to maximise the return to their shareholders whilst staying within the law. However, the world has changed significantly during the last ten years and now most major corporations recognise that they have significant responsibility to local and global societies beyond simply making profit. This means that there is now an increasing concern with the question of how corporations, and their employees, ought to behave, and this leads us (...) to consider ethics as the appropriate theoretical and philosophical domain.I will bring into the debate two relatively recent approaches to ethics: Jürgen Habermas's discourse ethics ; and the critical realist approach of Roy Bhaskar. These are interesting for several reasons: they both draw on traditional ethical theories, although different ones; they bring in innovations of practical relevance; and they both share an over-arching critical perspective. After a critical introduction to both ethical theories, their similarities and differences are explored. The article ends by considering the extent to which they may be practically useful within business. (shrink)

Management and business literature affirm the role played by stakeholders in corporate social responsibility practices as crucial, but what constitutes a true business–society partnership remains relatively unexplored. This paper aims to improve scholarly and management understanding beyond the usual managers’ perceptions on salience attributes, to include how stakeholders can acquire missing attributes to inform a meaningful partnership. In doing this, a model is proposed which conceptualises CSR practices and outcomes within the frameworks of stakeholder salience via empowerment, sustainable corporate social (...) performances and partnership quality. A holistic discussion leads to generation of propositions on stakeholder salience management, corporate social performance, corporate–community partnership systems and CSR practices, which have both academic and management implications. (shrink)

The article protests against the usage of ethical codes by business organisations. It asserts that professionals are in a different situation to that of employees; and that with the latter ethical codes are used by management to ensure compliance and are devoid of ethical content. Ethical codes it is argued are part of management's control system in a time of flatter organisational structures with a far wider span of control. It is also asserted that the ambitions of some to utilise (...) ethical codes so that the business organisation is able to engender societal change is dangerous and likely, if successful, to return us to an age which we could not seriously desire to re-visit. (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)

One of the most striking findings of the study by Foglia and colleagues (2009) was that clinicians and managers were most concerned with limited resources while ethics committee chairpersons focuse...