Stakeholder management devices (SMDs) are the mechanisms through which organizations respond to stakeholder concerns. Given that SMDs serve as organizational control systems for employees and managers, this research investigates the internal rather than the external effects of a firm's SMDs. Unlike most previous research, I examined the effects of these formal structures, processes, and procedures in the aggregate, rather than focusing attention on a single type of device. The study investigates the effects of a firm's stakeholder management devices, in the (...) aggregate, on three factors that influence individual behavior in organizations: expectations, attitudes, and perceived organizational climates. Respondents were managers in 112 for-profit businesses located throughout the United States. Results suggest that a firm's stakeholder management devices affect the perceived moral climates in the firm, and affect managers' expectations about the consequences of good corporate social performance, but do not affect organization members' attitudes about corporate social responsibility. (shrink)

Many ethical issues facing managers of multinational corporations are polycentric problems. That is, they involve a number of distinct centers -- each of which define rights and obligations of a multiplicity of affected parties -- and resolving matters around one center typically creates unpredictable repercussions around one or more of the other centers. Polycentricity is a normative phenomenon especially unsuited for adjudication, often requiring recourse to alternative processes of contract (or reciprocal adjustment) and managerial direction. This study explores how such (...) concerns about the limits of adjudication (and its various moral counterparts) apply to international decisionmaking connected to human rights obligations of multinational companies. The focus is on ethical problems such as controlling child labor in LDCs such as Bangladesh, India and Pakistan; setting wages in developing countries like Honduras; and conducting business transactions with rights-violating regimes, such as the governments of Nigeria and Myanmar. (shrink)

To survive and be successful in today's setting of globalisation and complexity, companies are obliged to think in wider strategic terms, developing active and enterprising strategies that include social, political and ecological elements, besides the economic ones. The analysis of the relationship between companies and society is especially interesting when these companies operate in international markets. Countries demand that large corporations contribute to local, regional and national development in such a way that their resources are exchanged for a significant increase (...) in their citizens' quality of life. Faced with that fact, the aim of this work is to establish what actions the subsidiaries will take in order to offer a response to the needs of their stakeholders in the host countries. Secondly, we attempt to identify the factors explaining the different levels of social response of the subsidiaries established in a particular country by different parent companies. The empirical study was carried out on a sample of Spanish subsidiaries in the two manufacturing industries with most foreign investment (the chemical and automobile industries) and the results obtained both confirmed the validity of the tool used to measure social response and permitted us to determine which factors influence the institutionalisation of social responsiveness. (shrink)

The public accounting profession has long relied on its reputation for integrity and veracity as justification for its professional status and monopoly privilege predicated on claims of acting in the public interest. If such status and privilege are to be justified and sustained, serious consideration of what constitutes ethical behavior, how such behavior is motivated as well as an explicit recognition of the rights and interests of affected parties constitutes an ethical imperative for the profession. Traditionally, work on ethics and (...) auditing is quite narrow, failing to recognize the social context of individual actions, failing to identify the relevant constituencies of the profession, and failing to articulate processes through which the constituencies interests can be identified. Generally, the accounting literature has taken a cognitive perspective on ethical decision making which views the resolution of ethical dilemmas as primarily a function of the moral makeup of the actor responding within the context of the Code of Professional Conduct. The purpose of this paper is to broaden the theoretical base of ethical research, specifically within the area of professional accounting and more generally in the area of business. We propose the application of structuration theory in conjunction with stakeholder theory and a responsibility ethic. The application of stakeholder theory is a means for identifying affected constituencies. A responsibility ethic recognizes the situatedness of an individual within an ongoing professional community. Structuration theory provides a theoretical framework for articulating and investigating both the structures within which action is carried out as well as the interaction between the social structures and the actors. Taken together, the theories allow for an enhanced ability to define ethical behavior within a business context and to understand the contextual antecedents and consequences of ethical acts. (shrink)