This paper seeks to identify a mid-level unifying ethical principle that may help clarify and articulate the ethical responsibilities of business firms in the field of marketing ethics. The paper examines critically the main principles which have been proposed to date in the literature, namely consumer sovereignty, preserving the conditions of an acceptable exchange, paternalism, and the perfect competition ideal, and concludes that all of them are vulnerable to damaging criticisms. The paper articulates and defends the mutuality principle as the (...) most plausible candidate for the role of master principle in the relations between a firm and its customers. This principle requires that sellers look for reciprocity in their relations with their customers, seeking to provide to their customers something that helps them improve in some way their well-being and is commensurate with what they receive from them. (shrink)

The purpose of this paper is to investigate the changes in Finnish managers' corporate responsibility perceptions from 1994 to 2004. Following earlier research, the concept of corporate responsibility is operationalised using the stakeholder approach. Empirically, we ask how managers' views on stakeholder issues have changed during the 10-year research period, and how managers' stakeholder orientation compares with their economic orientation. The data were collected using a survey research instrument in the years 1994, 1999 and 2004. The research results show a (...) positive change in managers' corporate responsibility perceptions during this time period. In addition, managers' stakeholder orientation seems to be in balance with their economic orientation. However, the economic context – in terms of both their own company's economic position and the general economic situation – has an effect on managers' stakeholder orientation. (shrink)

The 1980s witnessed a dramatic increase in hostile takeovers in the United States. Proponents argue that well- planned mergers enhance the value of the firm and the value of the firm to society. Critics typically argue that undesired takeovers ultimately harm society due to external costs not borne by the acquiring firm. To be socially responsible, the manager must consider the effects of the merger/acquisition on all stakeholders. Different traditional ethical frameworks for decision making are proposed and reviewed. A model (...) is proposed. (shrink)

This paper examines the dynamics of hostile takeovers as a form of corporate warfare. There are a number of compelling reasons for believing this to be an accurate approximation to corporate reality and therefore an appropriate analogy. In circumstances where it is all-too easy for either of the protagonists to act unethically, there is an evident need for an appropriate template through which to analyse and evaluate the ethical dilemmas that HT's inevitably raise —whilst also, where possible, employing its prescriptions (...) as a means of corporate conflict resolution. This paper evaluates just war theory as one such template. In seeking a conceptually adaptable framework for analysing, interpreting and articulating antagonistic behaviour during a HT, it became apparent in the course of the research that JWT provided a potentially useful and viable template within which to pursue the above. The research questions centre not necessarily on whether this template could in some way be a substitute for statutory and regulatory constraints on unethical conduct but, rather, whether it might better inform all stakeholders of the importance of ethically informed restraint in the interest of the greater good. (shrink)

This research examines how two dimensions of moral intensity involved in a corporation’s external crisis response—magnitude of effectiveness and interpersonal proximity—influence observer perceptions of and behavioral intentions toward the corporation. Across three studies, effectiveness decreased negative perceptions and increased pro-organizational intentions via ethical judgment of the response. Moreover, the two dimensions interacted such that a response high in proximity but low in effectiveness led to more negative perceptions and to less pro-organizational intentions. This interaction was particularly pronounced if the corporation (...) portrayed itself as communal-oriented. The interaction was mediated by individuals’ ethical judgment, which was a function of the corporation’s perceived benevolent concern. We termed the interaction the Strategic Samaritan, for it was when the corporation tried to appear like a Good Samaritan, displaying proximity with victims but not accompanying it with effective help, that it was seen as acting with less benevolent concern. (shrink)

Abstract:This study tests the usefulness of a person-situation interactionist framework in examining the willingness of a salesperson to lie to get an order. Using a survey of 389 salespersons, our results demonstrate that organizational relationships influence willingness to lie. Specifically, salespersons are less willing to lie to their own company than to their customer, than to a channel partner, and finally, than to a competitor firm. Furthermore, respondents from firms with a clear and positive ethical climate are less willing to (...) lie. Finally, our study finds that interactions between personality factors, such as high Machiavellianism and high self-monitoring, and situational factors have an impact on willingness to lie. Our results suggest that firms can take steps to influence employee ethical behavior. (shrink)

Lifeboat ethics is an anomalous concept that has been applied to many different situations, such as overpopulation. In thispresentation, Lifeboat Ethics is applied to plant closings (Darlington, Amoco/Neodesha, Chrysler/Kenosha) and downsizing (BP Amoco). The power of the decision maker—not the rights of the employees—determines who will remain, who will be forced overboard, and who will be invited in.

Prior literature on ethical concerns in mergers and acquisitions (M&As) has often concluded that many stakeholders, such as workers and communities, have unjustly suffered as a result of takeovers and associated defences and that their rights as stakeholders have been violated. However, very few papers provide any guidance on how to evaluate a merger or acquisition from an ethical standpoint. This study looks at how ethical frameworks could be used to assess the ethical impact of a merger or acquisition and (...) gives practical guidance. It is proposed that decision makers should consider the impact on four stakeholder groups: shareholders, employees, customers and directors. We call the proposed method for doing this Partial Utilitarian analysis. We suggest two possible ways of applying the Partial Utilitarian analysis. One approach could rely on the evidence from a sample of recent deals. For this, empirical analysis is conducted on a sample of large M&As in the United Kingdom in the period 1993–2003. Alternatively, a better approach, requiring considerable management time, requires forecasting of the economic impact on the four groups of stakeholders. The paper shows how to do this. (shrink)

s This paper reports studies designed to examine perceptions of preferential selection. Subjects evaluated the fairness of hypothetical cases of selection decisions based on either candidate sex or ethnic origin. A within-subjects design and a between-subjects design yielded convergent results showing that (1) preferential selection was perceived as unfair, irrespective of respondent sex or the basis for the preferential treatment (i.e., candidate sex or ethnic origin), (2) the level of perceived injustice was directly related to the discrepancy in merits between (...) the successful minority candidate and the more qualified yet unsuccessful majority candidate, and (3) the provision of either an ethical or legislative justification for the selection decisions further exacerbated feelings of injustice. Possible interpretations for the findings and practical implications of the study were then discussed. (shrink)

In our global economy knowledge-based industry is takingmore importance. Recent years have seen the success of anincreasing number of start-up companies, most technology-basedenterprises financed by private persons or companies, or through venture capital funds and public offering. In manyyears, those companies are faced at certain critical momentswith matters involving intellectual property rights, insiderinformation and raising money. These facts all have an ethicaldimension. There is an increasing need for ethical behaviourfrom all parties involved. A code of conduct of all partiesshould be (...) applied. This paper describes the growth processof a company and the valuation of an innovation project. Itwill overview a number of ethical issues, at different stagesin the innovation business, and in the lifetime of a start-upcompany, such as the problems of intellectual property, theconfidentiality of information, the negotiation processbetween the entrepreneur and the financier, the marketingof raising funds and of an IPO, and finally the informationand insider trading. The paper concludes with aplea for increased ethical ethical behaviour and the needfor rules of best practice for all parties: the inventor,the entrepreneur, the financial investor, and other stakeholders. (shrink)