In this paper, we present an ethical and strategic approach to managing organizational crises. The proposed crisis management model (1) offers a new approach to guide an organization’s strategic and ethical response to crisis, and (2) provides a two-by-two framework for classifying organizational crises. The ethically rational approach to crisis draws upon strategic rationality, crisis, and ethics literature to understand and address organizational crises. Recent examples of corporate crises are employed to illustrate the theoretical claims advanced. Finally, the paper provides (...) guidelines for a morally optimal outcome for the organization and its stakeholders. (shrink)

Prior studies have provided explanations for the presence, use and dissemination of codes of corporate ethics or codes of corporate conduct of business corporations. Most such explanations are functional in nature, and are descriptive as they are derived from the codes and their associated documents. We search for more underlying explanations using two complementary theories: first, social contract theories explaining the exogenous and endogenous reasons of organizational behavior, and then institutional theory explaining why organizations take similar measures in response to (...) institutional pressures. Based on our explanations, we contend that the codes and their use and dissemination are arising from underlying social and institutional pressures for firms to continuously validate their existence in the face of increasing changes and recurrent uncertainties. (shrink)

In addition to a person's character and training, the organization's ethical work climate (EWC) can assess how the organization influences an individual's ethical decision-making process by examining the individuals' perception of "what is the right thing to do" in a particular organizational environment. Relatively little research has explored which EWCs dominate military units and the impact of organizational role and environmental uncertainty on individuals in the military and their ethical decision making. In this study, we examined the predominant EWCs among (...) military units and found that certain organizational influences are associated with the specific EWCs. Based on these discoveries, we discuss the implications of EWC studies and the influence of organizational role and environmental uncertainty for researchers, as well as military leaders. (shrink)

This study examines the effects of individual ethical values and organizational factors on the professional ethics of PR practitioners in Korea by considering a person–situation interactionist model. Individual ethical values are used as individual factors, and organizational factors consist of an organization’s reward and punishment for ethical/unethical behavior, the behavior of peers, and the ethical integrity of the chief ethics officer. The professional ethics of PR practitioners (the dependent variable) are classified into the following three dimensions: professional ethics for the (...) public, the client, and the PR industry. The results indicate that agency practitioners were more likely to be committed to their profession than to their organization, whereas in-house practitioners were more likely to be committed to their organization than to their profession. That is, in-house practitioners showed weak professional commitment, indicating that they perceived themselves as employees, not as PR professionals. Organizational factors such as reward, punishment, and peers’ ethical behavior had considerable influence on the professional ethics of in-house practitioners, whereas they had little influence on agency practitioners. Organizational factors as well as individual ethical values were more likely to influence the professional ethics of in-house practitioners than that of agency practitioners. Thus, to foster in-house practitioners’ professional ethics and commitment, professional associations in the PR industry should make efforts to provide in-house practitioners with more information on the PR industry and more opportunities for interacting and maintaining communication with their colleagues in the industry. (shrink)

In this article two important organizational concepts - lean production and sociotechnical systems design - are evaluated on their reflective capacity and their (moral) outcomes. At least in theory both concepts entail a promise of overcoming some of the irreflexive pitfalls of rational organization. As will be shown, both concepts do have short-comings too. It is argued that the meaning and value of the concepts is related to the context in which the systems are implemented.

Commentators on empirical research in business ethics have recommended that use should be made of meta-analysis – the quantitative analysis of a group of research studies. This paper elaborates upon those recommendations by conducting, as a "case study" for further reflection, a meta-analysis of studies of accountants' organizational-professional conflict (OPC) previously published in accounting and psychology journals. Of five variables capable of analysis, only the population correlation coefficient between OPC and organizational tenure is identified. It was not possible to find (...) the population correlation coefficient of the other four variables, for which several possible reasons are suggested. The paper then shows how meta-analysis can make a valuable contribution, even when the substantive findings are limited, by providing guidance for future research and a safeguard against the drawing of unjustified conclusions, to which the more usual narrative reviews of literature are prone. (shrink)

The role of uncertainty within an organization’s environment features prominently in the business ethics and management literature, but how corporate investment decisions should proceed in the face of uncertainties relating to the natural environment is less discussed. From the perspective of ecological economics, the salience of ecology-induced issues challenges management to address new types of uncertainties. These pertain to constraints within the natural environment as well as to institutional action aimed at conserving the natural environment. We derive six areas of (...) ecology-induced uncertainties and propose ecology-driven real options as a conceptual approach for systematically incorporating these uncertainties into strategic management. We combine our results in an integrative investment framework and illustrate its application with the case of carbon constraints. (shrink)

“It is this distancing of personal relationships, combined with their replacement by written contractual terms and conditions, which make the discussion of ethics within a corporate institutionalised context highly limited and problematic.’ The challenge is to find means of personalising modern corporations so as to encourage ethical behaviour. Atul K. Shah PhD ACA gained his doctorate from the London School of Economics and is Lecturer in the Department of Accounting and Financial Management, at the University of Essex, Wivenhoe Park, Colchester (...) CO4 3SQ; e‐mail [email protected]. This article was conceived while he was Visiting Assistant Professor at the College of Business, University of Maryland, USA. The author wishes to thank Dan Ostas, Lee Preston and Stephen Loeb for helpful comments on earlier drafts. (shrink)

This study examines corporate publications of U.K. firms to investigate the nature of corporate social responsibility disclosure. Using a stakeholder approach to corporate social responsibility, our results suggest a hierarchical model of disclosure: from general rhetoric to specific endeavors to implementation and monitoring. Industry differences in attention to specific stakeholder groups are noted. These differences suggest the need to understand the effects on social responsibility disclosure of factors in a firm's immediate operating environment, such as the extent of government regulation (...) and level of competitiveness in the industry. (shrink)

The moral reasoning capacity of managementstudents in Fiji and in Singapore, twoculturally distinct nations, was examinedusing the Defining Issue Test (DIT). Statistical analyses of the data revealed amarked difference in the reasoning capacity of thetwo groups. In the Fiji sample, religion andrace were found to have a moderating effect onmoral judgment. In the Singapore sample, age,race and religion were found to have asignificant correlation with moral judgment. The data were subjected to paired-samplest-tests using p-score as a dependent variable. The results (...) showed significant differences onthe p-score, recording a comparatively weakerreasoning capacity among the Fiji subjects. Theresults overwhelmingly confirms the assumptionthat culture plays a definite role indetermining one's moral judgment over andabove other variables. The implications offindings for cross-cultural management arediscussed. (shrink)

PurposeThe purpose of this paper is to examine whether, when teaching professional ethics, the educational interventions have any effect on improving students' moral decisions. One method often used to measure change is the well‐established defining issues test – an American test based on Kohlberg's stage theory.Design/methodology/approachUsing this test, two before‐and‐after studies were carried out on cross‐cultural cohorts of first year computing undergraduates which both received the same lectures, debates and moral‐decision‐making exercises.FindingsOne study showed a significant increase in moral judgment whilst (...) the other showed a decrease. Both studies indicated mean scores far below the American averages.Research limitations/implicationsAs both studies involved relatively small sample sizes, the results are indicative rather than conclusive. However, they bring to light issues associated with the test, in both American and non‐American research, indicating that lower than average mean scores could be due to cross‐cultural and situational variations.Practical implicationsThe paper questions the premise of stage theory as a method for measurement within a cross‐cultural context; and the usefulness of measuring one component of moral development in isolation.Originality/valueThe paper proposes that tests based on more discipline‐specific skills, rather than stage theory, would be of greater use in evaluating student levels of moral development. (shrink)

R. Sennett, en su libro La corrosión del carácter, expuso la dificultad de mantener un carácter personal en entornos empresariales donde impera "la flexibilidad", por ello habló de "corrosión del carácter" como una de las consecuencias del trabajo en el nuevo capitalismo. En este escrito nos proponemos vislumbrar la posibilidad real de un ethos corporativo en esos mismos entornos empresariales flexibles que caracterizan al mundo empresarial actual, y ello con la intención de averiguar si nos hallamos también ante su corrosión. (...) Para ello analizaremos en la primera parte de este trabajo qué es el ethos corporativo, para pasar, en una segunda parte, a analizar cuáles pueden ser sus condiciones de posibilidad y advertir de la corrosión que éstas pueden estar sufriendo.R. Sennett in his book The Corrosion of Character. The Personal Consequences o Work in the New Capitalism exposed the dificulty of keeping a personal character in a "flexible" business context. That's why he spoke about "the corrosion of char acter" as one of the consequences ofwork within new capitalism. Here we intend to see the real possibility of a corporative ethos in these flexible business contexts that define today's business world in orderto findout if we are also exposed to its corrosion. In the first part we will analize what is corporative ethos to, in the second part,to analize which are its conditions of possibility and warn about the corrosion they can be undergoing. (shrink)