Due to the domain characteristics of business ethics, a contractarian theory for business ethics will need to be essentially different from the contract model as it is applied to other domains. Much of the current criticism of contractarian business ethics (CBE) can be traced back to autonomy, one of its three boundary conditions. After explaining why autonomy is so important, this article considers the notion carefully vis à vis the contracting partners in the contractarian approaches in business ethics. Autonomy is (...) too demanding a condition for the realm of CBE. But a less stringent version of the contract may be possible, a version which uses the contract as a heuristic device, which merely requires moral responsibility. Furthermore, it is argued that views of (human) agency and the moral subject should be made explicit in such a theory. (shrink)

Paying thorough attention to cynical action and integrity could result in a less naive approach to ethics and moral communication. This article discusses the issues of integrity and cynicism on a theoretical and on a more practical level. The first part confronts Habermas’s approach of communicative action with Sloterdijk’s concept of cynical reason. In the second part, the focus will be on the constraints and possibilities of moral communication within a business context. Discussing the corporate integrity approach of Kaptein and (...) Wempe will provide this focus. Their approach can be considered as a valuable contribution to the question of how to deal with (dilemmas of) conflicting interests, open discussion, fairness, and strategic decision-making in the context of stakeholder dialog. However, it is concluded that Kaptein and Wempe seem to overstretch the concept of corporate integrity by their inclination to make it an all-purpose remedy for corporate dilemmas. (shrink)

Nowadays many debates are going on that relate to the agricultural and food sector. It looks as if present technological and organizational developments within the agricultural and food sector are badly geared to societal needs and expectations. In this article we briefly present a toolkit for moral communication within the food chain. This toolkit is developed as part of a European research project. Next, we discuss what such a toolkit can bring about, given the characteristics of the present day agricultural (...) and food sector and its wider context. We defend that the toolkit can be seen as one of the mechanisms that can help enterprises in the agricultural and food sector to be accountable. It should, however, be complemented with other mechanisms, first, to empower the wider public and, second, to stimulate a dialogue, on a more equal footing, between public authorities, citizens, and economic actors. (shrink)

The frequency of discriminatory language in job advertisements placed by U. S. multinational corporations operating in Mexico was compared with that of Mexican companies using content analysis. A sample of 300 ads placed by companies from each culture was analyzed and coded by two groups of coders to calculate the frequency of discriminatory language in the job ads with respect to age, gender, physical appearance and marital status. Results of a chi square analysis revealed that U. S. multinationals firms in (...) Mexico utilize discriminatory language in job ads less frequently in the categories of age, gender and marital status. This result suggests that the legal and cultural framework of the country of origin of U. S. enterprises in Mexico may be influencing their actual recruitment practice in Mexico, and in turn, help them in setting a positive example of non-discrimination in recruitment among their Mexican counterparts. (shrink)

The frequency of discriminatory language in job advertisements placed by U. S. multinational corporations operating in Mexico was compared with that of Mexican companies using content analysis. A sample of 300 ads placed by companies from each culture was analyzed and coded by two groups of coders to calculate the frequency of discriminatory language in the job ads with respect to age, gender, physical appearance and marital status. Results of a chi square analysis revealed that U. S. multinationals firms in (...) Mexico utilize discriminatory language in job ads less frequently in the categories of age, gender and marital status. This result suggests that the legal and cultural framework of the country of origin of U. S. enterprises in Mexico may be influencing their actual recruitment practice in Mexico, and in turn, help them in setting a positive example of non-discrimination in recruitment among their Mexican counterparts. (shrink)

This article investigates how companies make sense of CSR. It is based on an explorative comparative case study of 18 companies in the Netherlands using background information, interviews and annual reports. Initially, the sensemaking process of CSR is guided and coordinated by change agents who are specifically appointed to explore the implementation of CSR in their company. These change agents initiate the CSR process within their own organisations. The meaning they develop stems from their personal and organisational values and frames (...) of reference. By attuning the vocabulary of CSR to the language of their colleagues, they aim to gain support for this undertaking in their organisation. This sensemaking procedure can be divided into pragmatic, external, procedural, policy‐oriented and value‐driven processes. The capability of an organisation to embed CSR is the result of trial and error, personal preferences and the use of language by the change agent that fits the (dynamic) situation at hand. Thus, each organisation needs a tailor‐made approach to implement CSR successfully. (shrink)

This article investigates how companies make sense of CSR. It is based on an explorative comparative case study of 18 companies in the Netherlands using background information, interviews and annual reports. Initially, the sensemaking process of CSR is guided and coordinated by change agents who are specifically appointed to explore the implementation of CSR in their company. These change agents initiate the CSR process within their own organisations. The meaning they develop stems from their personal and organisational values and frames (...) of reference. By attuning the vocabulary of CSR to the language of their colleagues, they aim to gain support for this undertaking in their organisation. This sensemaking procedure can be divided into pragmatic, external, procedural, policy‐oriented and value‐driven processes. The capability of an organisation to embed CSR is the result of trial and error, personal preferences and the use of language by the change agent that fits the (dynamic) situation at hand. Thus, each organisation needs a tailor‐made approach to implement CSR successfully. (shrink)

In this article, we contend that due to their size and emphasis upon addressing external social concerns, the corporate relationship between social enterprises, social awareness and action is more complex than whether or not these organisations engage in corporate social responsibility (CSR). This includes organisations that place less emphasis on CSR as well as other organisations that may be very proficient in CSR initiatives, but are less successful in recording practices. In this context, we identify a number of internal CSR (...) markers that may be applied to measuring the extent to which internal CSR practices are being observed. These considerations may be contrasted with the evidence that community based CSR activities is often well developed in private sector small to medium sized enterprises (SMEs) (Observatory of European SMEs, 2002), a situation which may be replicated in social enterprises especially those that have grown from micro-enterprises embedded in local communities. We place particular emphasis upon the implications for employee management. Underpinning our position is the Aristotelian-informed capabilities approach, a theory of human development and quality of life, developed by Sen (1992; 1999) and Nussbaum (1999) which has been developed further, in an organisational context, (e.g., Cornelius, 2002); Cornelius and Gagnon, 2004; Gagnon and Cornelius, 1999; Vogt, 2005. We contend that the capabilities approach offers additional insights into CSR in social enterprises in general and internal CSR activity in particular. Our article concludes with proposals for future research initiatives and reflections upon social enterprise development from a capabilities perspective. (shrink)

This article advances research on moral responsibility in organizations by drawing on both philosophical virtue ethics grounded in the Aristotelian tradition and Positive Organizational Scholarship research concerned with virtuousness. The article discusses the very conditions that make possible the realization of virtues and virtuousness, respectively. These conditions ground notions of moral responsibility and the resulting praise or blame on organizational contexts. Thus, we analyze the way individuals and organizations may be ascribed interconnected degrees of retrospective moral responsibility and blame as (...) depending on the interplay between the individual conditions leading to virtue and the organizational conditions leading to virtuousness. Based on this analysis, we develop a two‐level account of moral responsibility in organizations that connects individual and organizational moral responsibility through the concepts of virtue and virtuousness. This is further operationalized into practical guidelines to ascribe degrees of individual and organizational blame, which can be used as a tool by managers, policymakers, or industry regulators. (shrink)

This article researches how a corporate code of ethics (CCE) implemented in local government X has influenced the behavior of its employees, middle managers, and managers. Metaphors from the existing and desired CCE elicited by these three groups provided information on how to improve the effectiveness of the CCE. This method proved to be very fruitful. It appeared that continuous systematic attention needed to be paid to the CCE after the CCE had been implemented, particularly by management. Initiatives from management (...) to start discussions about relevant questions of integrity appeared to be also necessary to make the topic a “normal” topic which employees were no longer afraid to discuss. In this way, the possibility could be created to develop collectively a “practical” frame of reference concerning relevant questions of integrity that would help employees to make decisions in difficult situations during their work in the future. (shrink)

This article understands codes of ethics as written documents that represent social actors in specific ways through the use of language. It presents an empirical study that investigated the codes of ethics of the German Dax30 companies. The study adopted a critical discourse analysis-approach in order to reveal how the code-texts produce a particular understanding of the various internal social groups for the readers. Language is regarded as social practice that functions at creating particular understandings of individuals and groups, how (...) they are interrelated, and how they should behave. Findings show that codes of ethics do not represent employees as a group that is empowered or morally enlightened; instead they are positioned as passive receivers of rules and regulations. Furthermore, codes of ethics classify employees as having a need to be monitored and controlled by the higher levels of the corporate hierarchy. Overall, code language enforces compliance through maintaining existing and building new asymmetries between the different groups within a company. As a consequence, the article discusses a somewhat different understanding of code effectiveness. Reproducing and reemphasizing hierarchical relations could also lead to code compliance, perhaps without any need for developing the moral employee that is committed to ethical values. (shrink)

Can differences in corporate codes of ethics arise from the specific situation of transformation in Slovakia in contrast to the stable context of the firms in Western Germany? This paper compares codes of ethics of large‐scale enterprises in both countries in terms of ethical issues addressed. It demonstrates that codes of ethics of the Slovak companies mirror the specific transformational circumstances in the country. Compared with Western Germany the codes of these firms include multiple ethical issues, meaning that they experience (...) a broader range of relevant ethical problems. Furthermore, their codes are internally oriented, in terms of the ethical issues raised most often; they put more emphasis on committing employees, managers and shareholders/owners to the firm. Based on the differences discovered, it is proposed that negative experiences within the past process of transformation and in part the socialist heritage are the main reasons for differences between the two samples. (shrink)

Can differences in corporate codes of ethics arise from the specific situation of transformation in Slovakia in contrast to the stable context of the firms in Western Germany? This paper compares codes of ethics of large‐scale enterprises in both countries in terms of ethical issues addressed. It demonstrates that codes of ethics of the Slovak companies mirror the specific transformational circumstances in the country. Compared with Western Germany the codes of these firms include multiple ethical issues, meaning that they experience (...) a broader range of relevant ethical problems. Furthermore, their codes are internally oriented, in terms of the ethical issues raised most often; they put more emphasis on committing employees, managers and shareholders/owners to the firm. Based on the differences discovered, it is proposed that negative experiences within the past process of transformation and in part the socialist heritage are the main reasons for differences between the two samples. (shrink)

Due to several recent scandals, Business Ethics is now firmly embraced. Whereas in the 1980s and early 1990s there were serious doubts expressed about combining ethics and business, the link now seems to have become self-evident. Fundamental questions about the tensions between business and ethics however continue to receive little attention. In this paper, based upon a debate concerning the Fair Trade company, the strains between business and ethics are analyzed. The article shows how several great thinkers have already considered (...) this tension. Three ways to conceptualize the tension between business and ethics have been distinguished, and these are outlined in the paper. In one approach, ethical entrepreneurship, value tensions are perceived as a source for entrepreneurship. However, this approach presupposes pluralistic ethics. Thinking only in terms of black and white is seen as blocking the ability to adequately handle the tension between business and ethics. Opting for ‘‘ethical entrepreneurship’’, as by Fair Trade, has fundamental and important consequences for the company’s communication policy. (shrink)

This article shows that business ethics is not capable of explaining the responsibility of limited organised collectives such as chains, sectors and industries. The responsibility of the pharmaceutical industry to make AIDS blockers available for patients in Africa is an example of such a sector responsibility. By using system theory, it is possible to understand responsibility at the level of a social system. The Integrative Social Contracts Theory has been extended to determine this system's responsibility.

This paper analyzes the impacts of index inclusions and exclusions on corporate sustainable firms by studying a sample of US stocks that are added to or deleted from the Dow Jones Sustainability World Index over the period 2002-2008. The impacts are measured in terms of stock return, risk and liquidity. We cannot find any strong evidence that announcement per se has any significant impact on stock return and risk. However, on the day of change, index inclusion (exclusion) stocks experience a (...) significant but temporary increase (decrease) in stock return. Liquidity deteriorates after the announcement day and bounces back significantly near the day of change. Systematic risk shows little change after announcements. But, idiosyncratic risk is higher after announcements. The overall results support Harris and Eitan's (The Journal of Finance 41(4), 815-829, 1986) price pressure hypothesis, which posits that event announcement does not carry information and any shift in demand (and hence the corresponding price change and liquidity change) is temporary. (shrink)

This article argues that attempting to overcome moral silence in organizations will require management to move beyond a compliance-oriented organizational culture toward a culture based on integrity. Such cultural change is part of good corporate governance that aims to steer an organization to enhance creativity and moral excellence, and thus organizational value. Governance mechanisms can be either formal or informal. Formal codes and other internal formal regulations that emphasize compliance are necessary, although informal mechanisms that are based on relationship-building are (...) more likely to achieve moral excellence. Such a shift can be viewed as a transformative strategy for overcoming the destructive side effects and business risks of the tendency within corporate cultures to remain mute when faced with issues that violate personal or corporate values. Genuine dialogues and appropriate ethical decisionmaking training can deepen the understanding and create a mindful awareness (of ethical values) and induce trust that embrace both complying with rules and regulations, as well as inciting creative "ethical innovation" with respect to human interaction in multinational companies. (shrink)

This article argues that whilst the idea of whistleblowing as a positive duty to do good or to prevent harm may be defendable, legislating that duty is not feasible. We develop our argument by identifying rights and duties involved in whistleblowing as two clusters: one of justice and one of benevolence. Legislative arguments have evolved to cover the justice issues and the tendency exists of extending rights and duties into the realm of benevolence. This article considers the problematic assumptions and (...) implications of whistleblowing as a positive duty, by examining the extent to which the Good Samaritan argument holds with regard to whistleblowing. We argue that three criteria necessary for whistleblowing as a legally enforceable positive duty are not met, namely that we need to be able to (1) specify who should know what, (2) minimize the risk to the whistleblower and (3) adequately deal with mistaken concerns being raised. (shrink)

This article researches how a corporate code of ethics (CCE) implemented in local government X has influenced the behavior of its employees, middle managers, and managers. Metaphors from the existing and desired CCE elicited by these three groups provided information on how to improve the effectiveness of the CCE. This method proved to be very fruitful. It appeared that continuous systematic attention needed to be paid to the CCE after the CCE had been implemented, particularly by management. Initiatives from management (...) to start discussions about relevant questions of integrity appeared to be also necessary to make the topic a “normal” topic which employees were no longer afraid to discuss. In this way, the possibility could be created to develop collectively a “practical” frame of reference concerning relevant questions of integrity that would help employees to make decisions in difficult situations during their work in the future. (shrink)

This paper provides an overview of the contemporary debate on the concepts and definitions of Corporate Social Responsibility (CSR) and Corporate Sustainability (CS). The conclusions, based on historical perspectives, philosophical analyses, impact of changing contexts and situations and practical considerations, show that "one solution fits all"-definition for CS(R) should be abandoned, accepting various and more specific definitions matching the development, awareness and ambition levels of organizations.

This paper describes a set of ideal type organizations in a developmental sequence. As these descriptions are based on Spiral Dynamics (or Emerging Cyclical Levels of Existence Theory – ECLET), the types are labeled as Order, Success, Community and Synergy. Per type the author elaborated on the underlying value system and relating institutional structures, such as leadership role, governance and measurement format. As a summary, a Transition Matrix is presented which indicate the paradigm shifts per discipline/department, as manifested in the (...) subsequent ideal type organizations. As Order and Success generally describe the majority of corporations in Western Economies, the latter two types introduce new approaches to more innovative – and more sustainable/responsible – ways to doing business. Based on Community Values, the author introduces a new measurement format which is the foundation for a systemic and coherent set of management tools to be used in a stakeholder approach. These tools relate to the strategic, tactical and operational tasks of management and have been developed by researchers of the European Corporate Sustainability Framework (ECSF) consortium. The set includes two tools which are generic: the Strategic Sustainability Scan (Strategy) and the Sustainability Matrix, which is a self-assessment tool (tactics). Three operational tools are context and industry specific: These are the Community related Responsive Business Scorecard (RBS) and Benchmark Format for measuring and monitoring sustainability performance and a methodology – a Management Information System – to generate information on people, planet and profit in order to provide data for the set of key performance indicators. (shrink)

ABSTRACTThis article discusses the concept of integrity. Often, integrity is used as a characteristic of individuals showing a high fidelity to generally praised norms. Here, a more independent meaning is suggested so that the concept implies a clear distance to integration instead of mixing up the two concepts. Integrity implies integration within the individual of beliefs, statements, and action. To what degree can society and companies accommodate a pluralism created by individuals with integrity? Here, it is argued that integrity is (...) a useful virtue and that a more integrity‐friendly environment in companies would be beneficial by stimulating the empowered employee to make improved contributions. The concept is central for business ethics and crucial for the company's choice of such policies. A priority of integrity also affects organizational theory and the practical organizing of the company. Integrity is also vital for society at large for both citizens and companies, providing an ideological support for pluralism and a check on demands for conformism. The article also discusses how a virtue such as integrity can function as guidance for the individual operating in a complex world. (shrink)

This paper reviews studies of corporate ethical codes published since 2000 and concludes that codes be can effective instruments for shaping ethical behavior and guiding employee decision-making. Culture and effective communication are key components to a code’s success. If codes are embedded in the culture and embraced by the leaders, they are likely to be successful. Communicating the code’s precepts in an effective way is crucial to its success. Discussion between employees and management is a key component of successful ethical (...) codes. (shrink)

This article examines whether the degree of religiosity in an institutional environment can stimulate the emergence of a robust corporate governance system. This study utilizes the Nigerian business environment as its context and embraces a qualitative interpretivist research approach. This approach permitted the engagement of a qualitative content analysis (QCA) methodology to generate insights from interviewees. Findings from the study indicate that despite the high religiosity among Nigerians, religion has not stimulated the desired corporate governance system in Nigeria. The primary (...) explanation for this outcome is the presence of rational ordering over religious preferences thus highlighting the fact that religion, as presently understood and practiced by stakeholders, is inconsistent with the principles underpinning good corporate governance. (shrink)

This paper presents and illustrates the concept of sustainable corporate finance. Sustainability is a well-established concept in the disciplines of environmental economics and business ethics. The paper uses a broader definition of what is called the firm to pinpoint sustainability to the finance literature. The concept of sustainable finance is compared to traditional and behavioral finance. Four criteria are used to systematically analyze the basic differences. First on the order is the theory of the firm: the definition of the firm (...) is reconsidered by integrating behavioral aspects and by expanding financial analysis to a three-dimensional goal setting. Secondly, a closer look is taken at the assumed behavior of economic agents and its consequences for the applied methodology. The shareholders paradigm is discussed against the background of growing stakeholder importance. Finally, the fourth criterion deals with the different ethical framework and its implication for financial behavior. (shrink)

I study the diffusion of codes of conduct in the German textile and apparel industry between 1997 and 2010. Using a longitudinal case study design, I aim to understand how the diffusion of this practice was affected by the way important “infomediaries”—a trade journal and a professional association—shaped its understanding within the industry. My results show that time-consuming processes of meaning reconstruction by these infomediaries temporarily hampered but finally facilitated the broader material diffusion of codes of conduct within the industry. (...) These findings detail existing conceptualizations of code diffusion as they demonstrate how infomediaries—through creation, use, and reconstruction of explanatory accounts as well as frames of reference—participate in defining the relevance and meaning of CSR practices. I move beyond prior empirical work as I explicitly assess not only processes of meaning construction evolving around a CSR practice but also how these processes over time coincide with quantitative patterns of its material diffusion. Implications of my findings for existing research on the diffusion of codes of conduct specifically and CSR practices in general as well as for conceptualizations of diffusion from institutional theory are discussed. (shrink)

Recent research on corporate social responsibility (CSR) suggests the need for further exploration into the relationship between small and medium-sized enterprises (SMEs) and CSR. SMEs rarely use the language of CSR to describe their activities, but informal CSR strategies play a large part in them. The goal of this article is to investigate whether differences exist between the formal and informal CSR strategies through which firms manage relations with and the claims of their stakeholders. In this context, formal CSR strategies (...) seem to characterize large firms while informal CSR strategies prevail among micro, small, and medium-sized enterprises. We use a sample of 3,626 Italian firms to investigate our research questions. Based on a multistakeholder framework, the analysis provides evidence that small businesses* use of CSR, involving strategies with an important impact on the bottom line, reflects an attempt to secure their license to operate in the communities; while large firms rarely make attempts to integrate their CSR strategies into explicit management systems. (shrink)

The need to fill three gaps in ethics research in a business context sparked the current study. First, the distinction between the concepts of “ethical” and “legal” needs to be incorporated into theory building and empiricism. Second, a unifying theory is needed that can explain the variables that influence managers to emphasize ethics and legality in their judgments. Third, empirical evidence is needed to confirm the predictive power of the unifying theory, the discernable influence of personal and organizational variables, and (...) the importance of the issue to the managers in determining their emphasis on the ethical and legal values of their judgments. Focused on these needs, the current research combines social identity theory with empirical findings from business ethics research. This theory building initiative framed hypothesis-driven research to investigate the influences on managers’ emphasis on ethical and legal values in making business judgments. An empirical research study was conducted involving 252 practicing managers who judged 12 newsworthy business events. Data was collected on the managers’ individual factors, on the groups that influence their judgments, and on the importance that the managers place on ethics and legality in judging the 12 scenarios. The research findings contribute to theory development (1) By successfully utilizing a blended extension of social identity and issue-contingent theories to understand managers’ judgments, and (2) By providing evidence on the relationships between the perceived importance of an issue and the emphases managers place on ethical and legal values in their judgments. The analysis of the data was extended to provide insights on the needs of employers to tailor management training on legal and ethical decision-making. The participating managers were clustered according to their emphases on Ethical Importance and Legal Importance in judging business situations. Analysis of Variance was then combined with Scheffé Multiple Comparison Tests to assess whether the factors derived from a blended extension of social identity and issue-contingent theories were significantly different across the clusters. The product of this analysis is unique sets of attributes that describe each cluster of managers, and provide an empirical basis for determining training priorities. Finally, the carefully constructed and thoroughly tested 12 research scenarios that form the core of the survey instrument enable their redeployment in subsequent research and their use by practicing executives who wish to compare data provided by their managers to results from the study participants. (shrink)

Several researchers have identified codes of ethics as tools that stimulate positive ethical behavior by shaping the organisational decision-making process, but few have considered the information needed for code implementation. Beyond being a legal and moral responsibility, ethical behavior needs to become an organisational priority, which requires an alignment process that integrates employee behavior with the organisation’s ethical standards. This paper discusses processes for the responsible implementation of CoEs based on an extensive review of the literature. The internationally recognized European (...) Foundation for Quality Management Excellence Model is proposed as a suitable framework for assessing an organisation’s ethical performance, including CoE embeddedness. The findings presented herein have both practical and research implications. They will encourage construction practitioners to shift their attention from ethical policies to possible enablers of CoE implementation and serve as a foundation for further research on ethical performance evaluation using the EFQM model. This is the first paper to discuss the model’s use in the context of ethics in construction practice. (shrink)

Reports of ethical lapses in the business world have been numerous and widespread. Ethical awareness in business education has received a great deal of attention because of the number and severity of business scandals. Given Sarbanes-Oxley legislation and recent Association to Advance Collegiate Schools of Business International’s (AACSBI) recommendations, this study examined respective websites of Securities and Exchange Commission (SEC) regulated public companies and AACSBI-accredited business schools for ethical policy statement content. The analysis was accomplished by classifying ethical expressions into (...) a framework consisting of the attributes of thematic content and focus/themes partially based on the 2004 research of Gaumnitz and Lere. Findings indicate that public companies have been diligent in presenting website ethical content that closely follows authoritative recommendations. Business schools appear not to have prioritized such disclosure to the extent done so by public companies. Although there was improvement between two samples taken in 2005 and 2007, this study provides evidence that many accredited business schools have little or no disclosed ethical expectations in their mission, vision, goals, or other similar types of statements on their websites. Additional findings provide several opportunities for future research. (shrink)

This article employs Maak's framework of the seven "Cs" of Corporate Integrity to assess the problems faced by Chiquita Brands in dealing with extortion by left-wing guerilla and right wing paramilitary groups in Colombia from 1989 to 2004. Both types of organizations used Chiquita payments to engage in terrorist activity in Colombia. The extended and systematic dealings with these groups were antithetical to the process of corporate responsibility to which the firm was committed during the timeframe of 1998–2004, revealing a (...) "divided self" in which major corporate activities diverged dramatically from the core values of the firm. Maak's framework provides a useful tool in analyzing the division and the potential for applying lessons from the case to our understanding of corporate social responsibility. (shrink)

This article employs Maak's framework of the seven "Cs" of Corporate Integrity to assess the problems faced by Chiquita Brands in dealing with extortion by left-wing guerilla and right wing paramilitary groups in Colombia from 1989 to 2004. Both types of organizations used Chiquita payments to engage in terrorist activity in Colombia. The extended and systematic dealings with these groups were antithetical to the process of corporate responsibility to which the firm was committed during the timeframe of 1998–2004, revealing a (...) "divided self" in which major corporate activities diverged dramatically from the core values of the firm. Maak's framework provides a useful tool in analyzing the division and the potential for applying lessons from the case to our understanding of corporate social responsibility. (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)

This study investigates how firms in the gambling industry manage their corporate social disclosures about controversial issues. We performed thematic content analysis of CSDs about responsible gambling, money laundering prevention and environmental protection in the annual reports and stand-alone CSR reports of four USA-based multinational gambling firms and their four Macao counterparts. This study draws on impression management theory, camouflage theory and corporate integrity theory to examine the gambling firms’ CSDs. We infer that the CSD strategies of gambling firms in (...) Macao and the USA did not serve as vehicles for reflexivity about social responsibility or social responsiveness. Instead, the firms camouflaged legitimacy gaps about sensitive topics by adopting assertive or defensive façades, disclaiming ethical responsibility, curtailing disclosure, or offering zero disclosure. Differences between CSD strategies according to topic, location, time, and reporting channel appear to reflect four factors: pressure to report, availability of good news, whether a firm was assuming ethical responsibility for addressing the topic, and the prospective readership. This study extends our understanding of the contextual and topic-specific factors affecting the quantity and character of CSDs by firms in a contested industry. (shrink)

In both their external and internal communications, organizations tend to present diversity management approaches and corporate social responsibility initiatives as a kind of morally ‘good’ organizational practice. With regard to the treatment of employees, both concepts largely assume equality to be an indicator of organizational ‘goodness’, e.g. in terms of equal treatment, or affording equal opportunities. Additionally, research on this issue predominantly refers to prescriptive and imperative moralities that address the initiatives themselves, and values them morally. Schopenhauer opposes these moralities (...) by conceptualizing morality as exclusively being based on the incentives of acting instead of the actions themselves. He identifies egoism, compassion, and malice as the sole incentives for every human action, whereby only those actions solely motivated by compassion can be ascribed genuine moral worth. In this context, this article shows that from a Schopenhauerian perspective, CSR and DM initiatives only have a genuine moral worth in so far as the individuals who have initiated or supported their implementation were exclusively motivated by compassion. Stressing the narrative of a business case, if utilized as a façade for true compassion that attaches economic legitimacy to these initiatives, does not necessarily harm their moral worth. The approach and the findings developed in this paper contribute to the discourse on the ethical behavior of organizations, as well as to the discourse on CSR and DM. (shrink)

Most scholarly interest in codes of ethics or conduct has focused on traditional companies. Little is known about the codes of social enterprises or hybrid organizations such as microfinance institutions. Our paper provides a comparative case study of the codes of a Mexican microfinance network and seven MFIs. Using the corporate integrity model, we analyze the content of MFIs’ codes compared to those of traditional organizations. We then examine to what extent some specific features of MFIs such as their mission, (...) target group, and applied credit methodologies, are factors that determine the content of their code. We find that MFIs’ codes, like those of traditional companies, include traditional stakeholder principles. Nevertheless, they put greater emphasis on ‘socially-oriented’ principles or on terms such as ‘people’ and ‘common good’. MFIs’ codes differ with respect to the items they include and exclude and the size of the covered sections. We also find that these codes attempt to address prevailing concerns in microfinance but rarely tackle two critical debates, namely levels of interest rates and of profitability. We finally argue that it is difficult to move toward a global code, owing to regional disparities and the variety of organizational models and missions. (shrink)

This study was designed to examine the prevalence of a code of ethics and to analyze its content among public relations agencies in the United States. Of the 1,562 public relations agencies reviewed, 605 (38.7%) provided an ethical statement. Among the ethical statements provided by these public relations agencies, ‹respect to clients,’ ‹service,’ ‹strategic,’ and ‹results’ were the values most frequently emphasized. On the other hand, ‹balance,’ ‹fairness,’ ‹honor,’ ‹social responsibility,’ and ‹independence’ were the least frequently mentioned in the ethical (...) codes. Also, none of the sampled agencies included any sanctions regarding enforcement of their particular codes of ethics. (shrink)

Much has been written about the general moral duty to love one’s neighbors. In this article, I explore the specific application of this moral duty in the work setting. I argue from a secular perspective that individuals have the moral duty to love their stakeholders. Loving one’s stakeholders is an affective valuing of the stake-related values these stakeholders pursue and as such is the real recognition of one’s stakeholders as stakeholders and of oneself as a stakeholder of one’s stakeholders. This (...) moral concept of stakeholder love offers promising contributions to stakeholder theory, leadership theories, and ethical theories in general and business ethics theories in particular. (shrink)

The ethics of organizations has received much attention in recent years. This raises the question of whether the ethics of organizations has also improved. In 1999, 2004, and 2008, a survey was conducted of 12,196 U.S. managers and employees. The results show that the ethical culture of organizations improved in the period between 1999 and 2004. Between 2004 and 2008 unethical behavior and its consequences declined and the scope of ethics programs expanded while ethical culture showed no significant improvement during (...) the same period. The article concludes with a discussion of the implications of these findings for future research and practice. (shrink)

To be and to remain ethical requires struggle from organizations. Struggling is necessary due to the pressures and temptations management and employees encounter in and around organizations. As the relevance of struggle for business ethics has not yet been analyzed systematically in the scientific literature, this paper develops a theory of struggle that elaborates on the meaning and dimensions of struggle in organizations, why and when it is needed, and what its antecedents and consequences are. An important conclusion is that (...) the greater the ethics gap and opposing forces, the greater the struggle required. Viewing business ethics as struggle has several implications for theory and practice. (shrink)

Exploring the concept of citizenship from the history of political philosophy provides suggestions about what corporate citizenship could mean. The metaphor of corporate citizenship suggests an institutional approach to corporate social responsibility. Citizenship is a social role, characterized by an orientation towards the social contract, collective and active responsibility, as well as a positive attitude towards the juridical state. By analogy, corporate citizenship is a social role, characterized by the social contract of business, a participatory ethics of business, the precautionary (...) principle and the promotion of just international institutions. It is considered that corporate citizenship depends on a number of interacting institutional conditions that hold society partly responsible for the social performance of their companies. Finally, the problem of the dissolution of corporate social responsibility is reviewed in an institutional environment where everyone is considered responsible. (shrink)

This study reports on the hierarchy of organizational values in public and private sector organizations in Slovenia and the Netherlands. We surveyed 400 managers in Slovenia and 382 in the Netherlands using an identical questionnaire on the importance of a selection of values in everyday decision making. In Slovenia, impartiality, incorruptibility, and transparency were rated significantly higher in the public sector, while profitability, obedience, and reliability were rated more important in business organizations. In contrast, in the Netherlands, 11 values differed (...) significantly between the sectors. Thus, a greater value congruence exists between the sectors in Slovenia than in the Netherlands, with a larger “common core” of values in Slovenia (14) compared with the Netherlands (9), just as we hypothesized. Historical and cultural developments, such as the communist rule in Slovenia and the different influences of the Protestant work ethic in both countries, led to more similarities between business and government organizations in the “new” EU member state, Slovenia. (shrink)

This study reports on the hierarchy of organizational values in public and private sector organizations in Slovenia and the Netherlands. We surveyed 400 managers in Slovenia and 382 in the Netherlands using an identical questionnaire on the importance of a selection of values in everyday decision making. In Slovenia, impartiality, incorruptibility, and transparency were rated significantly higher in the public sector, while profitability, obedience, and reliability were rated more important in business organizations. In contrast, in the Netherlands, 11 values differed (...) significantly between the sectors. Thus, a greater value congruence exists between the sectors in Slovenia than in the Netherlands, with a larger “common core” of values in Slovenia (14) compared with the Netherlands (9), just as we hypothesized. Historical and cultural developments, such as the communist rule in Slovenia and the different influences of the Protestant work ethic in both countries, led to more similarities between business and government organizations in the “new” EU member state, Slovenia. (shrink)

The aim of this paper is to take normative aspects of animal welfare in corporate practice from a blind spot into the spotlight, and thus connect the fields of business ethics and animal ethics. Using insights from business ethics and animal ethics, it argues that companies have a strong responsibility towards animals. Its rationale is that animals have a moral status, that moral actors have the moral obligation to take the interests of animals into account and thus, that as moral (...) actors, companies should take the interests of animals into account, more specifically their current and future welfare. Based on this corporate responsibility, categories of corporate impact on animals in terms of welfare and longevity are offered, including normative implications for each of them. The article concludes with managerial implications for several business sectors, including the most animal-consuming and animal-welfare-threatening industry: the food sector. Welfare issues are discussed, including the issue of killing for food production. (shrink)

Contractualism conceives of firm-stakeholder relations as cooperative schemes for mutual benefit. In essence, contractualism holds that these schemes, as well as the normative principles that guide and constrain them, are ultimately ratified by the consent and endorsement of those subject to them. This paper explores the empirical validity of a contractualist perspective on firm-stakeholder relations. It first develops a typology of firm-stakeholder contracting problems. It subsequently confronts this typology with empirical data collected in an interview study of concrete stakeholder management (...) practices, involving in-depth research interviews with forty-four managers working in the Dutch financial services industry. The findings of this theory-building study suggest that there are limits to the applicability of the contract model in the context of stakeholder management, and that disregarding either the model or its limitations may lead to highly ineffective firm-stakeholder relations. (shrink)

Due to the domain characteristics of business ethics, a contractarian theory for business ethics will need to be essentially different from the contract model as it is applied to other domains. Much of the current criticism of contractarian business ethics (CBE) can be traced back to autonomy, one of its three boundary conditions. After explaining why autonomy is so important, this article considers the notion carefully vis à vis the contracting partners in the contractarian approaches in business ethics. Autonomy is (...) too demanding a condition for the realm of CBE. But a less stringent version of the contract may be possible, a version which uses the contract as a heuristic device, which merely requires moral responsibility. Furthermore, it is argued that views of (human) agency and the moral subject should be made explicit in such a theory. (shrink)