This article analyzes the issue of organizational transparency through the lens of Thomas Aquinas’ ethics. It provides moral justification for current claims about corporate transparency and sheds light on the ethical values and virtues affecting information disclosure decisions. Transparency is conceptualized as an informational mechanism necessary for performing the virtues of truthfulness, justice, and prudence. This article extends the organizational transparency and corporate social responsibility literatures by providing an alternative moral justification grounded in virtue-based theory, which extends our understanding of (...) the information disclosure decisions made by management. (shrink)

Over the last generation, American Business Ethics has focused excessively on the process of managerial decision-making while ignoring the collective impact of these decisions and avoiding other approaches that might earn the disapproval of corporate executives. This narrowness helped the field establish itself during the 1980s, when American management, under pressure from finance and heightened competition, was unreceptive to any limitations on its autonomy. Relying, however, on top-down approaches inspired by Aristotle, Locke, and Kant, while ignoring the consequentialism of Mill (...) and Rawls, made the field totally reliant upon the good will of these same corporate executives for generating any impact. Trends in employee compensation, finance, regulation, government procurement, and taxpayer subsidies suggest that Business Ethics has failed to significantly influence corporate behavior, a result that would have not surprised the realists of the post-war generation of Business and Society scholars. If Business Ethics is to prove relevant in the contemporary world, the field needs to acknowledge past failures and develop new approaches. The decline of American economic hegemony coupled to the increased internationalization of the discipline may create the opportunity to do so. (shrink)

From their inception, the social issues in management (SIM) field and the SIM Division within the Academy of Management have provided venues to examine the complex, dynamic, two-way relation between economic institutions of our society and the social systems in which they operate. They have blended the normative with the scientific, the speculative with the empirical, and the philosophical with the pragmatic. The field and the Division have served, perhaps most importantly, as the conscience of management education and the Academy. (...) Their enduring quest and raison d’étre is to foster corporate capitalism that is accountable, ethical, and humane. (shrink)

This article analyzes the issue of organizational transparency through the lens of Thomas Aquinas’ ethics. It provides moral justification for current claims about corporate transparency and sheds light on the ethical values and virtues affecting information disclosure decisions. Transparency is conceptualized as an informational mechanism necessary for performing the virtues of truthfulness, justice, and prudence. This article extends the organizational transparency and corporate social responsibility literatures by providing an alternative moral justification grounded in virtue-based theory, which extends our understanding of (...) the information disclosure decisions made by management. (shrink)

Three hundred forty middle-level managers from two private and two public sector manufacturing companies in India rated their superiors on 22 items of ethical leadership. Factor analysis of the scores on such items yielded two dimensions of ethical leadership: (a) empowerment, and (b) motive and character. Items of the scale had high reliability, validity, and discriminative power. On two dimensions of ethical leadership, the superiors self-rated themselves more favorably than their subordinates rated them. This justified the proposal to consider the (...) subordinates' ratings to their superiors in assessing ethical leadership. Subordinates perceived their superiors more ethical in private sector than in public sector. Subordinates' manipulative behavior, and cheating in performance and misuse of finance were less frequent in the presence of ethical superiors. Also, ethical superiors enhanced the job performance, job involvement and affective commitment of their subordinates but not their continuance commitment. (shrink)

In the years since Enron corporate social responsibility, or “CSR,” has become a ubiquitous phenomenon in both research and business practice. CSR is used as an umbrella term to describe much of what is done in terms of ethics-related activities in firms around the globe to such an extent that some consider it a “tortured concept” (Godfrey and Hatch 2007, Journal of Business Ethics 70, 87–98). Addressing this skepticism, I argue in this article that the focus on CSR is indeed (...) problematic for three main reasons: (1) the term carries a lot of historical baggage – baggage that is not necessarily conducive to the clarity of the concept; (2) it is the object of increasing ethical instrumentalism; and (3) given the multiple ethical challenges that corporations face, and given the fact that the “social” responsibilities of business are but one set of corporate responsibilities, a suitable term would have to be more inclusive and integrative. I therefore suggests moving instead toward a sound definition of corporate integrity and aim in this article to develop a working definition by fleshing out “7 Cs” of integrity: commitment, conduct, content, context, consistency, coherence, and continuity. I then discuss how these 7 Cs impact our understanding of CSR or, more broadly, corporate responsibility in general. (shrink)

Abstract:Although the concept of corporate social performance (CSP) has become more clearly specified in recent years, an analysis of CSP from the perspective of one particular stakeholder group has been largely ignored in this research: employees. It is proposed that employees merit specific attention with regard to assessments of corporate social performance. In this paper, a model for evaluating and measuring CSP at the employee level is proposed, and implications for evaluating contemporary employment policies and practices are offered. An iterative (...) process for systematically including normative content in the CSP model across stakeholder groups is also offered. (shrink)

As a criterion of a good firm, a lucrative and growing business has been said to be important. Recently, however, high profitability and high growth potential are insufficient for the criteria, because social influences exerted by recent firms have been extremely significant. In this paper, high social relationship is added to the list of the criteria. Empirical corporate social performance versus corporate financial performance (CSP–CFP) relationship studies that consider social relationship are very limited in Japan, and there are no definite (...) conclusions for the studies in the world, because of scant data and the inappropriate methods, especially for supporting linear hypothesis which these studies are based on. In this paper, the CSP–CFP relationship is analyzed by an artificial neural networks model, which can deal with a non-linear relationship, using 10-year follow-up survey data. (shrink)

Although a reasonable understanding of corporate social responsibility exists, one dimension remains largely ignored. That is, the cultural impacts of corporations, or the bearing, at various levels of their business models, activities, and outcomes on the value systems and enduring beliefs of affected people. We introduce the notion of corporate cultural responsibility. The way corporations address CCR concerns can be reflected according to three stances: cultural destructiveness, cultural carelessness, and cultural prowess. Taken sequentially, they reflect a growing comprehension and increasingly (...) active consideration of CCR concerns by corporations. In turn, we explicitly address issues related to the complex question of determining the cultural responsibilities of corporate actors; specify key CCR-related conceptualizations; and lay a foundation for discussions, debates, and research efforts centered on CCR concerns and rationales. (shrink)

Three characteristic problems in the measurement of corporate social performance (CSP) center around the need to measure three “metrics”: the metric of performance evaluation (M1), the metric of performance measurement (M2), and the metric of performance perception and belief (M3). The central issues in each metric are commitment, revelation, and belief, respectively. This article discusses each metric and provides sets of theoretical propositions under M2 and M3 describing behavior in those contexts. Some of the propositions inM2form an explicit partial theory (...) of factors affecting the likelihood of CSP measurement. Those under M3 are developed from more general ones in the theory of testaments. (shrink)

Transparency in business and society is one of the challenges raised in the encyclical Caritas in Veritate by Benedict XVI. This paper focuses on the issue by extending the literature on business ethics, corporate social responsibility, and corporate transparency in two dimensions. First, it reviews the understanding and framing of the transparency issue in Caritas in Veritate and in a selection of relevant Catholic Social Teaching (CST) publications. Second, this paper provides normative indications for corporate transparency decisions which reflect four (...) permanent principles of CST, that is, the common good, solidarity, subsidiarity, and respect for the human being. Inasmuch as human beings are worthy of love for their own sakes, the dimension of gift should always be present in relationships among them. This paper also provides insights for further studies on corporate transparency and the impact of religion on business ethics and corporate social responsibility. (shrink)

Does stakeholder theory constitute an established academic field? Our answer is both “yes” and “no.” In the more than quarter-century since Freeman’s seminal contribution in 1984, this domain has acquired some of the administrative, social, and disciplinary trappings of an established field. Stakeholder research has coalesced around a unique intellectual position: that corporations must be understood within the context of their stakeholder relationships and that this understanding must grow out of the interplay between normative and social scientific insights. Yet, much (...) of this domain remains an unexplored territory. In this article, the authors assess the progress to date toward field status and outline future directions for stakeholder research. (shrink)

Abstract:From their inception, the Social Issues in Management (SIM) field and the SIM Division within the Academy of Management have provided the essential venues to examine the complex, dynamic, two-way relationship between economic institutions of our society and the social systems in which they operate. They have blended the normative with the scientific, the speculative with the empirical, and the philosophical with the pragmatic. The field and the Division have served, perhaps most importantly, as the conscience of management education and (...) the Academy. Their enduring quest andraison d’êtreis to foster corporate capitalism that is accountable, ethical, and humane. (shrink)

Although the concept of corporate social performance (CSP) has become more clearly specified in recent years, an analysis of CSP from the perspective of one particular stakeholder group has been largely ignored in this research: employees. It is proposed that employees merit specific attention with regard to assessments of corporate social performance. In this paper, a model for evaluating and measuring CSP at the employee level is proposed, and implications for evaluating contemporary employment policies and practices are offered. An iterative (...) process for systematically including normative content in the CSP model across stakeholder groups is also offered. (shrink)

With the growth in income inequality now regarded as a crucial social issue, business and society scholars need to prepare themselves for the ambitious task of studying how corporate practices, intentionally or not, contribute to this trend. This article offers starting points for scholars wishing to explore this topic but lacking the necessary background for doing so. First, it offers suggestions as to finding the extant empirical work necessary for informed analysis. This is followed by an examination of alternate methods (...) of theory construction relevant to this topic, which transcend the limitations of the experimental science model of theory building. It then provides an example of a social science theory that exemplifies how empirically informed open theory can illuminate the dynamics behind growing inequality. The article concludes by suggesting that progress in this area requires embracing the spirit of earlier approaches to business and society scholarship while abandoning some outdated assumptions. (shrink)

Bill Frederick’s work calls on business ethicists to consider religion as well as nature. Because there are naturally wired religious impulses in human beings and because of the fairness of including normative approaches meaningful for business people, Frederick suggests that the “R” in CSR4 should represent religion. This article takes up the theme in terms of the emerging field of naturalist theology, particularly (although embryonically) as stated by theologian Paul Tillich. Doing so creates (a) connections between “God as Life” and (...) nature and (b) linkages of the notions of symbol, culture, and transcendence. In addition to avoiding the socalled “naturalistic fallacy,” this integration can foster ethical business behavior. (shrink)

The purpose of this study is to analyse the effects of personal demographic factors on Chinese university students’ values and perceptions of Corporate Social Responsibility (CSR) issues, and to identify the link between personal values and perceptions of CSR. The quantitative data consisted of 980 Chinese university students, and were collected by using a structured self-completion questionnaire. This study found that: 1) the importance of values education should be stressed, because we found that altruistic values associate negatively with perception of (...) CSR, in contrast, egoistic values associate positively; 2) a CSR education programme should be designed accordingly to fit different student characteristics and needs such as gender and major differences; 3) values should be used as criteria for education and recruitment purposes, e.g., we found that female students represent more ethical values than male students, and have a more negative perception of the CSR performance; 4) the importance of environment performance should be recognised by Chinese corporations and policy-makers, because we found that Chinese corporations perform better in economic and social responsibilities than environmental responsibility. It provides an insight of the value structures of Chinese university students and the forces that shape ethical perceptions. It offers a comprehensive study of Chinese companies’ CSR performance, and the results improve the awareness of scholars and managers in solving the current problems and developing their CSR performances further. (shrink)

The idea that socially responsible investments can be viewed in terms of real options is relatively new. We expand on this notion by demonstrating how real option theory, within a Bayesian decision-making framework, can be used by managers to help when making green technology investment decisions. The Bayesian decision framework provides a more flexible approach to investment decision making because it adjusts for new information. Responding to a call for multidisciplinary and multifaceted research in environmental sustainability, this paper integrates ethics, (...) finance, and information technology by viewing investments in environmentally friendly technology as a profit-driven CSR real option. Our model provides managers with the analytic tool needed to make the business case for CSR initiatives providing an opportunity for firms to create economic, social, and ecological solutions that benefit all stakeholders. The practical applicability of our model is demonstrated in an illustrative case scenario based on real data. (shrink)

In this article, I argue that conventional reasoning on corporate social responsibility (CSR) is based on the assumption of a liberal market economy in the context of a nation state. I build on the study of Scherer and Palazzo (Acad Manage Rev 32(4):1096-1120, 2007), developing a number of criteria to identify elements of liberal philosophy in the ongoing CSR debate. I discuss their occurrence in the CSR literature in detail and reflect on the implications, taking into account the emerging political (...) reading of the firm. I conclude that the apolitical framework in the mainstream CSR literature has to be overcome since it does not reflect recent changes in the socio-economic conditions for economic actors in a globalizing world. (shrink)

Global health and environmental wellbeing are mutually reinforcing and interdependent. This mutuality invokes two major analytical orientations: it emphasizes a direct nexus between ecological strategies and global health outcomes. These in turn revitalize the essential quest for comprehensive policies and responsible strategies for enhancing both ecology and health within the discourse of sustainability. With orientation towards political conception of corporate responsibility, I problematize the root questions of the democratic embeddedness of the firm under conditions of weakened institutional structures. I highlight (...) the inherent power relations in global health and ecological governance through literature mapping. I address the question: Why and how might ecological strategies be embedded in corporate day-to-day actions to produce optimal outcomes that have positive effects on global health and human dignity? Besides resource and ethical/political constraints, there are several micro-political, geopolitical, industrial, institutional and structural impediments to ecological and health sustainability. This grim diagnosis is clearly a description of a ‘disturbingly fascinating’ pathology of global capitalism whose industrial effects culminate in the accumulation of more profits for a few at the expense of the ecological sustainability of the majority. That notwithstanding, there are several grounds for optimism with a move from anthropocentrism to humanistic eco-centrism via deliberative democratic procedures. Here, the centrality of human dignity is emphasized. This study provides an interdisciplinary theoretical model that seeks to reorient strategies towards restoration, protection, mitigation, adaptation, harm avoidance and innovative sustainability of the whole economic gamut and biodiversity that supports global health. Thus, I rearticulate ecological sustainability in terms of its most fundamental means and end: sustainable global health and the tutelage of human dignity. (shrink)