This work offers a possible Foucaultian interpretation of Corporate Compliance Management. It is motivated by the so-called "failure" of ethical training. This research pursues a critical and local perspective. The aim is to endorse and strengthen the ethical potentiality of a Compliance Program. In the first part, metaphors produced by corporate employees are presented. These images symbolize the power relationships with their employers and illustrate some Foucaultian concepts. In the second part, Compliance Management is interpreted as an exercise of corporate (...) power validated by an intentioned discourse. In the third part, Compliance Program is interpreted as a possibility of power resistance. In the fourth part, it provides a discussion with some authors who have tried to rescue Foucault's contribution to business ethics. It is reached to the conclusion that a Compliance Program contains potentialities for the individual´s empowerment. This empowerment is mainly granted through dialogue in training workshops. (shrink)

There has been a longstanding controversy in research as to whether moral judgment is the result of an analytical or an intuitive process. Today, researchers increasingly recognize that moral judgments can be the result of both intuition and analysis, and that the two paths can lead to different results. This raises the question as to which of the two processes leads to a better moral judgment. The article develops a typology of moral problems depending on their moral uncertainty and moral (...) equivocality and links the derived types with analysis and intuition effectiveness. The typology considers four types of moral problems: compliance problems (low uncertainty, low equivocality), professional ethics problems (high uncertainty, low equivocality), conformity problems (low uncertainty, high equivocality) and ethical dilemmas (high uncertainty, high equivocality). The article argues that compliance and professional ethics problems are best solved analytically, whereas intuition is assumed to be more suitable for conformity problems and ethical dilemmas. Moreover, the article shows that it is not sufficient to contrast intuition with analysis alone. The higher the moral uncertainty, the more important the interplay of intuition and analysis becomes in making moral judgments. (shrink)

ABSTRACT:This article assesses the proliferation of international accountability standards (IAS) in the recent past. We provide a comprehensive overview about the different types of standards and discuss their role as part of a new institutional infrastructure for corporate responsibility. Based on this, it is argued that IAS can advance corporate responsibility on a global level because they contribute to the closure of some omnipresent governance gaps. IAS also improve the preparedness of an organization to give an explanation and a justification (...) to relevant stakeholders for its judgments, intentions, acts and omissions when appropriately called upon to do so. However, IAS also face a variety of problems impeding their potential to help address social and environmental issues. The contribution of the four articles in this special section is discussed in the context of standards’ problems and opportunities. The article closes by outlining a research agenda to further develop and extend the scholarly debate around IAS. (shrink)

ABSTRACT:This article assesses the proliferation of international accountability standards (IAS) in the recent past. We provide a comprehensive overview about the different types of standards and discuss their role as part of a new institutional infrastructure for corporate responsibility. Based on this, it is argued that IAS can advance corporate responsibility on a global level because they contribute to the closure of some omnipresent governance gaps. IAS also improve the preparedness of an organization to give an explanation and a justification (...) to relevant stakeholders for its judgments, intentions, acts and omissions when appropriately called upon to do so. However, IAS also face a variety of problems impeding their potential to help address social and environmental issues. The contribution of the four articles in this special section is discussed in the context of standards’ problems and opportunities. The article closes by outlining a research agenda to further develop and extend the scholarly debate around IAS. (shrink)

The paper examines the contribution of the French philosopher Michel Foucault to the subject of ethics in organizations. The paper combines an analysis of Foucault’s work on discipline and control, with an examination of his later work on the ethical subject and technologies of the self. Our paper argues that the work of the later Foucault provides an important contribution to business ethics theory, practice and pedagogy. We discuss how it offers an alternative avenue to traditional normative ethical theory that (...) both converges and diverges with other extant alternatives. By situating ethics as practices of the self, and by demonstrating the conditions under which freedom in organizations can be exercised, Foucault’s ethics attempt to connect an understanding and critique of power with a personal project of self. He therefore provides a theory of subjectivity that potentially informs a reshaping of contemporary virtue ethics theory, value-based management, and business ethics teaching. (shrink)

The paper examines the contribution of the French philosopher Michel Foucault to the subject of ethics in organizations. The paper combines an analysis of Foucault’s work on discipline and control, with an examination of his later work on the ethical subject and technologies of the self. Our paper argues that the work of the later Foucault provides an important contribution to business ethics theory, practice and pedagogy. We discuss how it offers an alternative avenue to traditional normative ethical theory that (...) both converges and diverges with other extant alternatives. By situating ethics as practices of the self, and by demonstrating the conditions under which freedom in organizations can be exercised, Foucault’s ethics attempt to connect an understanding and critique of power with a personal project of self. He therefore provides a theory of subjectivity that potentially informs a reshaping of contemporary virtue ethics theory, value-based management, and business ethics teaching. (shrink)

To date, theory and research on corruption in organizations have primarily focused on its static antecedents. This article focuses on the spread and growth of corruption in organizations. For this purpose, three downward organizational spirals are formulated: the spiral of divergent norms, the spiral of pressure, and the spiral of opportunity. Social Identity Theory is used to explain the mechanisms of each of these spirals. Our dynamic perspective contributes to a greater understanding of the development of corruption in organizations and (...) opens up promising avenues for future research. (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)

‘The loss of a stable state’ (Schon 1973 ) in organizational transformation can both be regarded as lamentable and inevitable. Transformation causes disruption and invasions of comfort zones to those affected by it, but it is nevertheless inevitable. The article maintains that while the loss of a stable state is inevitable in the stream of change confronting organizations today, points of stability and methods of dealing with instability are attainable through responsible management. The article postulates that steps taken by responsible (...) leadership in response to specific business crises will reduce the effects of instabilities brought about by such transformational situations and reassert a stable state more rapidly. Utilizing Weber’s ‘ideal type’ model format (Morrison 2006 ) with a specific example of international best practice of remedial steps taken by management in reaction to a specific crisis experienced by an organization, the article uses a qualitative historical case study analysis and quantitative time series research design to investigate South African firms which had recently faced crises impinging on their current corporate reputations. Findings suggest that both the number of remedial steps taken by companies and the speed in which they are implemented in conformance with the model are negatively associated with the size of the share price falls immediately post crises. The findings also suggest that larger share price appreciations over 6-month post-crises are associated with greater perceived corporate reputations and brand strengths. Tentative conclusions and possibilities for further research are briefly discussed. (shrink)

This article examines the role of social context in corporate social responsibility research. The authors direct attention to three major perspectives in organization studies—institutional, cultural, and cognitive—that bear on the social context and explore how these perspectives are used in CSR research. These perspectives are framed as representative of the levels at which CSR may be analyzed, and each perspective is associated with a certain level of social context: the institutional perspective relates to the external social context, the cultural perspective (...) relates to the organizational level, and the cognitive perspective relates to the individual level. The authors demonstrate how the CSR field can benefit by combining or integrating multiple perspectives that bear on the social context, and by engaging in more explicit multilevel analysis of the social context within which CSR practicesunfold. Three promising avenues for future CSR research are outlined: social ecology, cross-sector social partnerships, and strategy-as-practice. The authors argue that these avenues transcend levels and perspectives and offer the prospect of more context-sensitive CSR research. (shrink)

Corporate malpractice and malfeasance on an unprecedented scale have brought ethical issues to the fore and accentuated demands from activists, governments, and the public for greater corporate social responsibility (CSR). The predominant response of researchers and policymakers has been to focus on the external impact of business operations and the merits of regulation or persuasion in achieving more responsible practice in these areas. In this article, we focus on a less well explored aspect of CSR, namely the evaluation of an (...) organization's CSR activities by its internal stakeholders (i.e., employees). Salient CSR literature is reviewed to differentiate between CSR and ethical business practice (EBP), conceptualizing the latter as the internal manifestation of CSR as represented by an organization's values and vision, strategy and policy, systems and procedures, and people management practices. This article assesses organizational espousal of EBP in three ways: how successfully it is communicated to employees, how closely espousal aligns with employee expectation, and how this evaluation impacts on employee commitment. Our research approach aligns with and extends previous work in this area that identifies the likelihood of a “false consensus bias” by managers in assuming congruence between organization espousal of EBP and employee expectation. A conceptual model is offered to explain possible employee responses to an organization's EBP. This relates organization espousal of EBP to employee assessment of its salience to identify three positions on commitment that employees can adopt—abrogated, continuance, and affective commitment—together with their likely behavioral implications. The analysis generates a series of research questions and related areas of exploration to empirically test the conceptual model. (shrink)

The purpose of this present research is to expand upon the foundation that codes of ethics are more useful guides to managers in their behavior and decision-making when managers are more familiar with code content and intentions. We explore whether the impact of code familiarity on code usefulness differs: (a) under varying conditions of turbulence and (b) between persons with relativist versus idealist personal values. Data have been collected from a sample of 1700 executives in member companies of the U.S. (...) Direct Selling Association, and responses were received from 286 (16.8% returned). Perceptions of ethics code familiarity and usefulness decline as business turbulence increases. The decline in familiarity/usefulness was more pronounced for managers with a relativistic ethical orientation. (shrink)

Managers with different cultural backgrounds and under different circumstances have different views on what is acceptable ethical behaviour. This study attempts to determine whether major companies in Hong Kong share the same views as North American academics on what management ethical standards ought to be, and if so, whether any control mechanisms have been established to instill ethical behaviour within their organizations. Notable differences between the practice in these companies and those from a similar survey conducted in North America are (...) identified and explained. The management accountant''s role in the development and implementation of such mechanisms is investigated. (shrink)

As we transition to the 21st century, it is useful to think about some of the most important challenges business and other organizations will face as the new millennium begins. What will constitute “business as usual” in the business ethics arena as we start and move into the new century? My overall thought is that we will pulsate into the future on our current trajectory and that the new century will not cause cataclysmic changes, at least not immediately. Rather, the (...) problems and challenges we face now we will face then. Undoubtedly, new issues will arise but they will more likely be extensions of the present than discontinuities with the past. (shrink)

Using exploratory factor analysis on a unique dataset of global executives, we find that their perceptions of their national government’s risk management effectiveness are largely driven by two latent factors: leadership virtue, and governance. We show that the leadership virtue signal is potentially a stronger signal. We hypothesize that this may be because making decisions and taking actions to manage risk is a continuous process requiring inter alia foresight and moral discipline in looking to the interests of others and acting (...) in service to those interests above self-interest. This suggests at least two propositions for further testing, for which, we offer rhetorical argument and anecdotal evidence at the end of this paper and suggest methodologies for further testing. To our knowledge, this is the first paper to uncover this connection empirically between national risk management and leadership virtue. (shrink)

This empirical study explores the characteristics and degree of implementation of so-called ethics hotlines in transnational companies (TNCs), which allow employees to present allegations of wrongdoing and ethical dilemmas, as well as to report concerns. Ethics hotlines have not received much attention in literature; therefore, this paper aims to fill that gap. Through the analysis of conduct/ethics codes and the compliance programs of the top 150 transnational companies ranked by the United Nations Conference on Trade and Development (UNCTAD) ( 2007 (...) ), we carry out a descriptive and taxonomic study of these companies’ ethics hotlines. We analyze: (1) the basic characteristics of the mechanism, (2) the degree of exigency and the provision of safeguards, (3) the matters reported and the systems for reporting, and (4) the relationships between hotlines and economic characteristics of the firm. Our study compares financial and nonfinancial TNCs as well as North American and European TNCs. Our results show that many firms (especially from North America) have established these procedures. We also find some disparities between European and North American ethics hotlines that suggest differences in the orientation of the procedures. (shrink)

The compliance-based approach and the integrity approach have been the mainstream responses to corporate scandals. This paper proposes that, despite each approach comprising necessary elements, neither offers a comprehensive solution. Compliance and integrity, far from being mutually exclusive, reinforce each other. Working together, in a correct relationship, they build a harmonized system that yields positive synergies and which also advocates prudence. It enables the generation of a culture of compliance that tends to minimize the technical and ethical errors in decision (...) making. In order to explore an applied harmonized approach, we analyze the audit committee, a specific and broadly accepted regulatory instrument. Formed by non-executive members, regulation requires these members to be dedicated, qualified, and independent as a guarantee of efficiency. We show how the compound of those elements produces positive effects in a context of solid governance. We conclude that it is the strong relationship between efficiency and prudence, in the creation of a culture of compliance, which enables the minimization of errors. (shrink)

To commemorate 40 years since the founding of the Journal of Business Ethics, the editors in chief of the journal have invited the editors to provide commentaries on the future of business ethics. This essay comprises a selection of commentaries aimed at creating dialogue around the theme The Ethics and Politics of Academic Knowledge Production. Questions of who produces knowledge about what, and how that knowledge is produced, are inherent to editing and publishing academic journals. At the Journal of Business (...) Ethics, we understand the ethical responsibility of academic knowledge production as going far beyond conventions around the integrity of the research content and research processes. We are deeply aware that access to resources, knowledge of the rules of the game, and being able to set those rules, are systematically and unequally distributed. One could ask the question “for whom is knowledge now ethical’”? (See the Burrell commentary.) We have a responsibility to address these inequalities and open up our journal to lesser heard voices, ideas, and ways of being. Our six commentators pursue this through various aspects of the ethics and politics of academic knowledge production. Working with MacIntyre’s scheme of practices and institutions, Andrew West provides commentary on the internal good of business ethics learning and education. Inviting us to step out of the cave, Christopher Michaelson urges a clear-eyed, unblinking focus on the purposes and audiences of business ethics scholarship. As developmental editor, Scott Taylor uncovers some of the politics of peer review with the aim of nurturing of unconventional research. Mike Hyman presents his idiosyncratic view of marketing ethics. In the penultimate commentary, Julie Nelson attributes difficulties in the academic positioning of the Business Ethics field to the hegemony of a masculine-centric model of the firm. And finally, Gibson Burrell provides a powerful provocation to go undercover as researcher-investigators in a parallel ethics of the research process. (shrink)

In the early 1990s, managers at Exxon decided to seek lower cost disposal in Louisiana for oil-field wastes declared hazardous in Alabama. This decision resulted in injuries to the residents of Grand Bois, Louisiana; the disposal company; Exxon; and the oil industry in the state. Given the need for business and society to manage business operations for mutual benefit, it is essential to understand why businesses injure the public so that similar incidents do not happen again. The authors use three (...) analytical perspectives to suggest how corporations may make unethical decisions without purposefully setting out to do so: their managers may fail to understand changing social expectations for corporate behavior; they may adopt organizational structures, policies, and procedures that block ethical action in the name of efficiency; and they may follow unwritten rules of behavior for career success that exclude ethics. These perspectives suggest that individual Exxon managers may not have been making greed-based decisions, weighing corporate gains against harms to others. The situation more likely involved a failure, for the reasons discussed, to raise ethics questions in making business decisions. This explanation does not make much difference to those injured nor does it absolve those who made the decisions. It does make a difference to society and to companies seeking to understand factors that have to be overcome in any large corporation that wishes to prevent such events from occurring. (shrink)

How can codes of ethics acquire legitimacy—that is, how can they lay down obligations that will be seen by their subjects as morally binding? There are many answers to this question, reflecting the fact that moral agents have a host of different bases on which they may acknowledge code duties as ethically binding—or, alternatively, may reject those duties as morally irrelevant or actively corrupt. Drawing on a wide literature on legitimacy in other practical fields, this paper develops a multidimensional legitimacy (...) framework, describing ten distinct sources of legitimacy. It illustrates how these sources can be seized, not only by the code’s content, but by opportunities presented in the main stages of code development, adoption and implementation. In so doing, it aims to provide practical resources for code developers and ethics reformers in organizations and industries to avoid critical missteps, and to maximize the impact and efficacy of their work. (shrink)

International business faces a host of difficult moral conflicts. It is tempting to think that these conflicts can be morally resolved if we gained full knowledge of the situations, were rational enough, and were sufficiently objective. This paper explores the view that there are situations in which people in business must confront the possibility that they must compromise some of their important principles or values in order to protect other ones. One particularly interesting case that captures this kind of situation (...) is that of Google and its operations in China. In this paper, I examine the situation Google faces as part of the larger issue of moral compromise and integrity in business. Though I look at Google, this paper is just as much about the underlying or background views Google faces that are at work in business ethics. In the process, I argue the following: First, the framework Google has used to respond to criticisms of its actions does not successfully or obviously address the important ethical issues it faces. Second, an alternative ethical account can be presented that better addresses these ethical and human rights questions. However, this different framework brings the issue of moral compromise to the fore. This is an approach filled with dangers, particularly since it is widely held that one ought never to compromise one’s moral principles. Nevertheless, I wish to propose that there may be a place for moral compromise in business under certain conditions, which I attempt to specify. (shrink)

Abstract:The literature contains many recommendations, both explicit and implicit, that suggest how an ethics program ought to be designed. While we recognize the contributions of these works, we also note that these recommendations are typically based on either social scientific theory or data and as a result they tend to discount the moral aspects of ethics programs. To contrast and complement these approaches, we refer to a theory of the right to identify the characteristics of an effective ethics program. We (...) draw from Kant’s ethical theory to identify three guiding principles of a moral ethics program and then apply those principles to the specific components of ethics programs as discussed in the Federal Sentencing Guidelines. Doing so provides insights as to how an ethics program ought to be designed from a moral point of view and sparks discussion of the moral aspects of ethics programs. (shrink)

How can organisations ‘manage for integrity’?1 Two differing approaches have been called the compliance strategy and the integrity strategy. While the first seeks to instil compliance with externally imposed standards, the integrity strategy seeks to teach ethical decision-making and values as well, so that ‘ethical thinking and awareness…[are]…part of every manager’s mental equipment’. In this paper the Dutch consultant philosopher Hans Bolten reports on how Socratic dialogue has helped managers develop ethical capacities and responsibility. Drawing on research with dialogue members (...) he concludes that organisations that care about ethics cannot rely on abstract moral codes and rules. He argues that they need Socratic dialogue as an instrument if their managers are to shape moral guidelines they both agree upon and can apply in practice. And he shows how dialogue can foster in managers the readiness to give an account of their actions, a readiness implicit in the idea of moral action itself. Thus Socratic dialogue can help create a culture in which morally accountable action is the rule, not the exception, and in which the responsibility to give an account of one’s actions has its rightful place.2. (shrink)

Continual corporate malfeasance signals the need for obeying the law and for enhancing business ethics perspectives. Yet, the relationship between law and ethics and its integrative role in defining values are often unclear. While integrity-based ethics programs emphasize ethics values more than law or compliance, viewing ethics as being integrated with law may enhance understanding of an organization’s core values. The author refers to this integration of law and ethics as “substantive ethics,” analogous to the substantive law that evolves over (...) time, which is applied to ethical breaches and carries sanctions for non-compliance. This article describes the integration of law and ethics as a mid-point between two polar views that define law and ethics either as having no relation or as being one and the same. Since corporations expressly state which laws they follow, a sample of corporate compliance statements is used to demonstrate this integrative mid-point. The sample also reveals that corporate ethics codes rarely express ethics and law as being integrated per se. Therefore, the author creates an example of a securities law compliance statement that is introduced with an integrative perspective of law and ethics. Perhaps such revised corporate codes will encourage corporate respect for both law and ethics and enhance ethical sustainability. (shrink)

As a consequence of the changing conditions of doing business, we can observe the emergence of an increasing number of industrial and company-specific codes of conduct, as well as social and environmental standards. This paper considers these initiatives as being self-regulating governance mechanisms, which are characterized by a process of voluntary adherence on the part of firms to certain mechanisms or principles that seek to promote a “good society.” Two specific internationally established standards are discussed: Social Accountability 8000 and AccountAbility (...) 1000. These institutionalized approaches are described and then contrasted in relation to a number of different factors, particularly the degree to which they foster “reflexivity,” in terms of how businesses think about these issues, and “dialog,” in terms of how businesses interact with stakeholders. Such questions are relevant to the ways in which these standards might be introduced and implemented, and which of these institutionalized approaches are the most promising for international businesses in developing countries. (shrink)

Findings from prior research show that there is a general tendency to discipline top sales performers more leniently than poor sales performers for engaging in identical forms of unethical selling behavior. In this study, the authors attempt to uncover moderating factors that could override this general tendency and bring about more equal discipline for top sales performers and poor sales performers. Surprisingly, none were found. A company policy stating that the behavior in question was unacceptable nor a repeated pattern of (...) unethical behavior offset the general tendency to treat top sales performers more leniently than poor sales performers. In an attempt to dig deeper to find a significant moderating effect, two follow-up experiments were conducted. In the first follow-up experiment, a specific training program designed to communicate top management's desire to treat ethical matters equally based on the severity of the act had no effect on equalizing the discipline between top sales performers and poor sales performers. In the second follow-up experiment, a stronger company policy that specified a prescribed level of punishment also failed to equalize the discipline. A superior sales performance record appears to induce more lenient forms of discipline, despite the presence of other factors and managerial actions that are specifically instituted to produce more equal forms of discipline. The answer to the question posed in the article title is, "apparently very strong!". (shrink)

Early strategy scholars have pointed to the importance of reflecting on moral issues within the scope of strategic management. Although strategy content and context have been discussed in relation to ethical reflection, the third aspect, strategy process, has found only little or no attention with regard to ethics. We argue that by emphasizing the process perspective one can understand the related character of strategic management and ethical reflection. We discuss this relatedness along formal, functional, and procedural similarities. Whereas formal aspects (...) refer to the conditions under which both processes occur, functional aspects look at the role that strategy process and ethical reflection fulfill. Procedural aspects account for similarities in the nature of both processes insofar as the activities that are conducted within each process phase share common characteristics. We claim that ethical reflection can be thought of as an integrative part of strategic management – either explicitly or implicitly. (shrink)

Early strategy scholars have pointed to the importance of reflecting on moral issues within the scope of strategic management. Although strategy content and context have been discussed in relation to ethical reflection, the third aspect, strategy process, has found only little or no attention with regard to ethics. We argue that by emphasizing the process perspective one can understand the related character of strategic management and ethical reflection. We discuss this relatedness along formal, functional, and procedural similarities. Whereas formal aspects (...) refer to the conditions under which both processes occur, functional aspects look at the role that strategy process and ethical reflection fulfill. Procedural aspects account for similarities in the nature of both processes insofar as the activities that are conducted within each process phase share common characteristics. We claim that ethical reflection can be thought of as an integrative part of strategic management – either explicitly or implicitly. (shrink)

The tension between external forces for better ethics in organizations, represented by legislation such as the Sarbanes–Oxley Act (SOX), and the call for internal forces represented by increased educational coverage, has never been as apparent. This study examines business school faculty attitudes about recent corporate ethics lapses, including opinions about root causes, potential solutions, and ethics coverage in their courses. In assessing root causes, faculty point to a failure of systems such as legal/professional and management (external) and declining personal values (...) (internal). We also found that faculty recommend external forces as a remedy more often than increased ethics educational coverage; we contextualize this finding with recent ethics education literature. We conclude by proposing that neither legislation nor ethics education alone are complete when addressing widespread unethical corporate acts and offer a multi-faceted approach to ethics educational opportunities. (shrink)

The corporate citizenship (CC) concept introduced by Dirk Matten and Andrew Crane has been well received. To this date, however, empirical studies based on this concept are lacking. In this article, we flesh out and operationalize the CC concept and develop an assessment tool for CC. Our tool focuses on the organizational level and assesses the embeddedness of CC in organizational structures and procedures. To illustrate the applicability of the tool, we assess five Swiss companies (ABB, Credit Suisse, Nestlé, Novartis, (...) and UBS). These five companies are participants of the UN Global Compact (UNGC), currently the largest collaborative strategic policy initiative for business in the world (www.unglobalcompact.org). This study makes four main contributions: (1) it enriches and operationalizes Matten and Crane’s CC definition to build a concept of CC that can be operationalized, (2) it develops an analytical tool to assess the organizational embeddedness of CC, (3) it generates empirical insights into how five multinational corporations have approached CC, and (4) it presents assessment results that provide indications how global governance initiatives like the UNGC can support the implementation of CC. (shrink)

Ethics researchers advise managers of organizations to link rewards and punishments to ethical and unethical behavior, respectively. We build on prior research maintaining that organizations operate at Kohlbergs stages of moral reasoning, and explain how the over-reliance on rewards and punishments encourages employees to operate at Kohlbergs lowest stages of moral reasoning. We advocate designing organizations as ethical communities and relying on different assumptions about employees in order to foster ethical reasoning at higher levels. Characteristics associated with ethical communities are (...) identified and AES Corporation and Semco S/A serve as examples of corporations exhibiting the design characteristics and assumptions of ethical organizations. (shrink)

Academic cheating has become a pervasive practice from primary schools to university. This study aims at investigating this phenomenon through a nomological network which integrates different theoretical frameworks and models, such as trait and social-cognitive theories and models regarding the approaches to learning and contextual/normative environment. Results on a sample of more than 200 Italian university students show that the Amoral Manipulation facet of Machiavellianism, Academic Moral Disengagement, Deep Approach to Learning and Normative Academic Cheating are significantly associated with Individual (...) Academic Cheating. Moreover, results show a significant latent interaction effect between Normative Academic Cheating and Amoral Manipulation Machiavellianism: "amoral Machiavellians" students are more prone to resort to Academic Cheating in contexts where Academic Cheating is adopted as a practice by their peers, while this effect is not significant in contexts where Academic Cheating is not normative. Results also show that Academic Moral Disengagement and Deep Approach to learning partially mediate the relationship between Amoral Manipulation and Academic Cheating. Practical implications of these results are discussed. (shrink)

The purpose of this paper is to highlight the importance and impact of terminology used to describe corporate social responsibility (CSR). Through a review of key literature and concepts, we uncover how the economic business case has become the dominant driver behind CSR action. With reference to the literature on semiotics, connotative meaning and social marketing we explore how the terminology itself may have facilitated this co-opting of an ethical concept by economic interests. The broader issue of moral muteness and (...) its relation to ethical behaviour is considered. We conclude by proposing a number of important attributes for any proposed terminology relating to ethical/socially responsible/sustainable business. (shrink)

This article examines how employees form their perceptions of managerial responsibility in a concrete organizational setting. Drawing on negotiated order theory, it shows that these perceptions are the result of complex processes of social construction and negotiation, rather than the application of predetermined ethics models or norms. Employees’ perceptions appear to be unstable; they are subject to constant alterations, fluctuating with the organizational circumstances, and are likely to create considerable organizational perturbations, especially when managers make complex and ambiguous decisions. This (...) process is illustrated through an ethnographic study that analyzed the evolution of employee perceptions during a three-year crisis—one that led managers to repeatedly postpone salary payments to save jobs. The process approach adopted by the study highlights important dynamics that traditional business ethics approaches overlook, such as the fragility of the construct of managerial responsibility, which cannot be coherent unless it is constantly renegotiated among an organization’s various employee groups. (shrink)

Integrity is a central topic in business ethics, and in the world of business it is quite possibly the most commonly cited morally desirable trait. But integrity is conceived in widely differing ways, and as often as it is discussed in the literature and given a central place in corporate ethics statements, the notion is used so variously that its value in guiding everyday conduct may be more limited than is generally supposed. Two central questions for this paper are what (...) work the notion does and whether it does any ethical work that is not done better by other concepts. In pursuing these questions the paper explores the most plausible range of understandings of integrity found in recent literature, considers in what sense it is a virtue, and proposes a strategy of clarification and interpretation that can facilitate both ethical reflection and the guidance of moral conduct in business. (shrink)

Several recent studies and initiatives have emphasized the importance of a strong ethical organizational DNA (ODNA) to create and promote an effective corporate governance culture of trust, integrity and intellectual honesty. This paper highlights the drawbacks of an excessively heavy reliance on rules-based approaches that increase the cost of doing business, overshadow essential elements of good corporate governance, create a culture of dependency, and can result in legal absolutism. The paper makes the case that the way forward for effective corporate (...) governance is to strike an optimal balance between rules-based and principles-based approaches. The recent corporate scandals have demonstrated that the ethical ODNA is critical to the driving force and basis of legal and regulatory requirements. Effective governance means adhering to ethical principles, not merely complying with rules, and is a crucial guardian of a firm’s reputation and integrity. It is through an effective corporate governance program (that is, one that optimally captures and integrates the appropriate aspects of rules-based and principles-based approaches, and identifies and assesses the related risks) that an organization can reconfigure its ODNA for improved performance. Focusing on the ethical ODNA as the basis of new governance measures provides an opportunity to develop a competitive advantage as it represents a potential source of differentiation, strengthens the relationship with all stakeholders of the organization by building a culture of trust and integrity, and re-instills investor confidence. This paper employs dialectical reasoning that links the ODNA through principles-driven rules in developing a risks-based approach. A comparison from a risk assessment perspective between rules-based and principles-based approaches is presented. Although there have been few applications employing dialectical reasoning in business research, this methodology can be extremely useful in isolating ethical issues and integrating them into the business process. The risks-based approach captures the benefits of both rules-based and principles-based approaches, and incorporates trust-based principles such␣as solidarity, subsidiarity and covenantal relationships. (shrink)

This paper discusses corporate governance issues from a compliance viewpoint. It makes a distinction between legal and ethical compliance mechanisms and shows that the former has clearly proven to be inadequate as it lacks the moral firepower to restore confidence and the ability to build trust. The concepts of freedom of indifference and freedom for excellence provide a theoretical basis for explaining why legal compliance mechanisms are insufficient in dealing with fraudulent practices and may not be addressing the real and (...) fundamental issues that inspire ethical behavior. The tendency to overemphasize legal compliance mechanisms may result in an attempt to substitute accountability for responsibility and may also result in an attempt to legislate morality which consequently leads to legal absolutism. The current environment of failures of corporate responsibility are not only failures of legal compliance, but more fundamentally failures to do the right (ethical) thing. (shrink)

There are three types of solutions to the problems deriving from companies' ethical, social and environmental responsibilities: those based on regulation by an authority or agency; those deigned to create market incentives; and those that rely on self-regulation by companies themselves. In the specific field we are concerned with here, regulation has significant costs and drawbacks that make it particularly desirable that companies should set up their own ethical, social and environmental management systems or programmes. The purpose of this article (...) is twofold. On the one hand, it explains how implementing voluntary ethical, social and environmental management systems or programmes may help to develop and sustain ethical behaviour in organizations, overcoming the conflict between compulsory regulation and occasional ethical practices. On the other hand, it shows that conditions must be met for an ethical management programme to be effective. (shrink)

From the Hippocratic Oath on, deontological codes and other professional self-regulation mechanisms have been used to legitimize and identify professional groups. New technological challenges and, above all, changes in the socioeconomic environment require adaptable codes which can respond to new demands.We assume that ethical codes for professionals should not simply focus on regulative functions, but must also consider ideological and educative functions. Any adaptations should take into account both contents (values, norms and recommendations) and the drafting process itself.In this article (...) we propose a process for developing a professional ethical code for an official professional association (Colegio Oficial de Ingenieros Industriales de Valencia (COIIV) starting from the philosophical assumptions of discursive ethics but adapting them to critical hermeneutics.Our proposal is based on the Integrity Approach rather than the Compliance Approach. A process aiming to achieve an effective ethical document that fulfils regulative and ideological functions requires a participative, dialogical and reflexive methodology. This process must respond to moral exigencies and demands for efficiency and professional effectiveness.In addition to the methodological proposal we present our experience of producing an ethical code for the industrial engineers’ association in Valencia (Spain) where this methodology was applied, and we evaluate the detected problems and future potential. (shrink)

From the Hippocratic Oath on, deontological codes and other professional self-regulation mechanisms have been used to legitimize and identify professional groups. New technological challenges and, above all, changes in the socioeconomic environment require adaptable codes which can respond to new demands.We assume that ethical codes for professionals should not simply focus on regulative functions, but must also consider ideological and educative functions. Any adaptations should take into account both contents (values, norms and recommendations) and the drafting process itself.In this article (...) we propose a process for developing a professional ethical code for an official professional association (Colegio Oficial de Ingenieros Industriales de Valencia (COIIV) starting from the philosophical assumptions of discursive ethics but adapting them to critical hermeneutics.Our proposal is based on the Integrity Approach rather than the Compliance Approach. A process aiming to achieve an effective ethical document that fulfils regulative and ideological functions requires a participative, dialogical and reflexive methodology. This process must respond to moral exigencies and demands for efficiency and professional effectiveness.In addition to the methodological proposal we present our experience of producing an ethical code for the industrial engineers’ association in Valencia (Spain) where this methodology was applied, and we evaluate the detected problems and future potential. (shrink)

Ethical codes have been hailed as an explicit vehicle for achieving more sustainable and defensible organizational practice. Nonetheless, when legal compliance and corporate governance codes are conflated, codes can be used to define organizational interests ostentatiously by stipulating norms for employee ethics. Such codes have a largely cosmetic and insurance function, acting subtly and strategically to control organizational risk management and protection. In this paper, we conduct a genealogical discourse analysis of a representative code of ethics from an international corporation (...) to understand how management frames expectations of compliance. Our contribution is to articulate the problems inherent in codes of ethics, and we make some recommendations to address these to benefit both an organization and its employees. In this way, we show how a code of ethics can provide a foundation for ethical sustainability, while addressing management intentions and employees’ ethical satisfaction. (shrink)

A genuine commitment to ethics and compliance (E&C) programs means that top management adopt them for what they represent and not for other purposes. Only then can they truly build socially responsible behavior and a successful and sustainable business, as stated in the latest international standard for compliance management practice (ISO 37301:2021), which we found to be consistent with a new business narrative as conceptualized in Freeman's work. However, it also requires that top managers place a moral value on these (...) practices, rather than simply using them for instrumental reasons. Building on Kohlberg's six stages of moral development as applied to managers' moral thinking, this manuscript offers a model to explain how top managers' moral valuing of these practices varies along a moral reasoning continuum, resulting in four distinct modes. It also theorizes that each mode of moral valuing yields an archetype of E&C programs. It thus offers a new approach that contributes to the business ethics and management literature by incorporating a morally grounded perspective on the adoption and implementation of E&C practices and how it might shape their features and characteristics. It also aims to improve professional practice and business contributions to Freeman's ideas through genuine ethics‐based E&C programs. (shrink)

In this study, we propose and test a model of the effects of organizational ethical culture and organizational architecture on the perceived unethical behavior of employees towards customers. This study also examines the relationship between organizational ethical culture and moral acceptability judgment, hypothesizing that moral acceptability judgment is an important stage in the ethical decision-making process. Based on a field study in one of the largest financial institutions in Europe, we found that organizational ethical culture was significantly related to the (...) perceived frequency of unethical behavior towards customers and to the moral acceptability judgment of this type of unethical behavior. No support was found for the claim that features of organizational architecture are associated with the perceived frequency of unethical behavior towards customers. This is the first study to document the differential effects of organizational architecture and organizational ethical culture on perceived unethical behavior of employees towards customers, in wholesale banking. Implications for managers and future research are discussed. (shrink)

This article contends that Ayn Rand 's version of virtue ethics can supply a powerful foundation for operating a successful business. Rand 's Objectivist virtues can provide an underpinning for a firm's long-term sustainable success, as well as for the flourishing and happiness of its employees. In order to attain a company's goals, values, and purpose, these virtues need to be integrated with the firm's culture and climate. The Objectivist virtues can supply an integrated framework for employees' decisions and actions. (...) Leaders are encouraged to link these virtues to the survival and success of both the firm and its employees. (shrink)

In this essay, we demonstrate that the field of computer ethics shares many core similarities with two other areas of applied ethics, Academicians writing and teaching in the area of computer ethics, along with practitioners, must address ethical issues that are qualitatively similar in nature to those raised in medicine and business. In addition, as academic disciplines, these three fields also share some similar concerns. For example, all face the difficult challenge of maintaining a credible dialogue with diverse constituents such (...) as academicians of various disciplines, professionals, policymakers, and the general public, Given these similarities, the fields of bioethics and business ethics can serve as useful models for the development of computer ethics. (shrink)

Abstract:This article addresses the issue of whether and to what extent moral values can be attributed to collective actors. The paper starts from the premise that business ethics as the ethics of an organization is to be distinguished from the virtues of its members. This point is elaborated in both economic- and organization-theoretic terms within the framework of the New Economics of Organization. The result is the development of a concept of governance ethics. The ethics of governance is about the (...) incorporation of moral conditions and requirements in the management, governance, and control structures of a firm. This is the contextual precondition for the long-lasting and beneficial effects of the virtues of individuals within the organizations. (shrink)

Abstract:This paper utilizes a qualitative case study of the health care industry and a recent legal case to demonstrate that stakeholder theory’s focus on ethics, without recognition of the effects of incentives, severely limits the theory’s ability to provide managerial direction and explain managerial behavior. While ethics provide a basis for stakeholder prioritization, incentives influence whether managerial action is consistent with that prioritization. Our health care examples highlight this and other limitations of stakeholder theory and demonstrate the explanatory and directive (...) power added by the inclusion of the interactive effects of ethics and incentives in stakeholder ordering. (shrink)