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)

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)

We propose, in this article, a pluralistic theory of ethics programs orientations, empirically derived from the statistical analysis of responses to an ad hoc questionnaire on organizational ethics practices. The results of our research identify six different orientations to ethics programs, corresponding to as many types of organizational ethics practices. This model goes beyond the traditional opposition between a compliance orientation, focused on the regulation of behavior and the detection of deviance, and a values-based orientation, which is said to be (...) more reflective and enabling, and allows for a more sophisticated understanding of the composition of ethics programs. Drawing from the theory of requisite variety, we suggest that these six orientations are not to be considered in opposition but rather as complementary and even synergistic. In doing so, this pluralism has the potential to counter the potential deleterious effects of dominant logics and ideologies in organizations. Our model thus allows for a more empirical analysis of organizational ethics practices and programs and provides a new analytical framework for research and practice in considering the principle of requisite variety in ethics management. This represents, in our opinion, a contribution to the advancement of knowledge and practice in organizational ethics. (shrink)

Abstract:Psychological forces in play across individual, group, and organizational levels of analysis increase the likelihood that people in business organizations will engage in misconduct. Therefore, it is argued, we must turn our attention from dominant normative and empirical trends in business ethics, which revolve around boundaries and constraints, and instead concentrate on methods for promoting ethical behavior in practice, exploiting psychological forces conducive to ethical conduct. This calls for a better understanding of how organizations and their inhabitants function, and, in (...) turn, it points to pragmatic solutions. Ethical conduct can be promoted by (1) normatively justifying vivid aims worthy of pursuit alongside economic objectives, and (2) empirically identifying the conditions and practices that advance those aims in firms. This approach challenges us to bring empirical and normative inquiry together—in ways unsettling to both. It pushes us to move beyond an empirical preoccupation with decision making and judgment, and it requires us to cope with political liberalism’s legitimate qualms about discussions of the good. (shrink)

Abstract:Psychological forces in play across individual, group, and organizational levels of analysis increase the likelihood that people in business organizations will engage in misconduct. Therefore, it is argued, we must turn our attention from dominant normative and empirical trends in business ethics, which revolve around boundaries and constraints, and instead concentrate on methods for promoting ethical behavior in practice, exploiting psychological forces conducive to ethical conduct. This calls for a better understanding of how organizations and their inhabitants function, and, in (...) turn, it points to pragmatic solutions. Ethical conduct can be promoted by (1) normatively justifying vivid aims worthy of pursuit alongside economic objectives, and (2) empirically identifying the conditions and practices that advance those aims in firms. This approach challenges us to bring empirical and normative inquiry together—in ways unsettling to both. It pushes us to move beyond an empirical preoccupation with decision making and judgment, and it requires us to cope with political liberalism’s legitimate qualms about discussions of the good. (shrink)

In this article, I explore how the ideas of French philosopher Emmanuel Levinas offer insights into a debate often held today in the field of corporate governance, concerning the relative merits of statutory and voluntary approaches to the regulation of business. The philosophical position outlined by Levinas questions whether any rule-based systematisation of ethical responsibility, either statutory or voluntary, can ever equate to a genuine responsibility for the other person. I reflect on how various authors have adapted Levinas’s philosophy to (...) form a critique of bureaucracy and rule following in business, and the lack of ethical authenticity in corporate codes. However, this article also considers the question of whether a theoretical separation can be made between an ethical responsibility based on sensibility (as is suggested by Levinas) and a rational conceptualisation of how one is required to act. Considering the difficulty of disentangling these notions of ethics, I return to the problem of corporate governance and suggest an approach to stakeholder conflict based on mediation and dialogue, which rules out neither principles of conduct nor an openness of responsibility to the Other. (shrink)

Drawing on the theoretical insights from the resource-based view of the firm, this paper explores how human resource systems may contribute to competitive advantage by facilitating the development and maintenance of five types of ethical climates, and conversely, how HR systems may hinder competitive advantage by inhibiting the development and maintenance of these climate types. In so doing, this paper contributes to the literature by highlighting the resource worthiness of a firm's ethical climates and showing how HR systems may influence (...) that value. In addition, it advances theory that underpins the concept of competitive advantage sustainability and provides a platform for future empirical research. (shrink)

Research on behavioral ethics is thriving and intends to offer advice that can be used by practitioners to improve the practice of ethics management. However, three barriers prevent this research from generating genuinely useful advice. It does not sufficiently focus on interventions that can be directly designed by management. The typical research designs used in behavioral ethics research require such a reduction of complexity that the resulting findings are not very useful for practitioners. Worse still, attempts to make behavioral ethics (...) research more useful by formulating simple recommendations are potentially very damaging. In response to these limitations, this article proposes to complement the current behavioral ethics research agenda that takes an ‘explanatory science’ approach with a research agenda that uses a ‘design science’ approach. Proposed by Joan van Aken and building on earlier work by Herbert Simon, this approach aims to develop field-tested ‘design propositions’ that present often complex but useful recommendations for practitioners. Using a ‘CIMO-logic’, these propositions specify how an ‘intervention’ can generate very different ‘outcomes’ through various ‘mechanisms’, depending on the ‘context’. An illustration and a discussion of the contours of this new research agenda for ethics management demonstrate its advantages as well as its feasibility. The article concludes with a reflection on the feasibility of embracing complexity without drowning in a sea of complicated contingencies and without being paralyzed by the awareness that all interventions can have both desirable and undesirable effects. (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)

We examine the occurrence of ethicsrelated terms in 10-K annual reports over 1994-2006 and offer empirical observations on the conceptual framework of Erhard et al. 2007). We use a pre-Sarbanes-Oxley sample subset to compare the occurrence of ethics-related terms in our 10-K data with samples from other studies that consider virtue-related phenomena. We find that firms using ethics-related terms are more likely to be "sin" stocks, are more likely to be the object of class action lawsuits, and are more likely (...) to score poorly on measures of corporate governance. The consistency of our results across these alternative measures of ethical behavior suggests that managers who portray their firm as "ethical" in 10-K reports are more likely to be systematically misleading the public. These results are consistent with the integrity-performance paradox. (shrink)

The Samenleving and Bedrijf (S&B) network of Dutch organizations seeks to embed corporate social responsibility (CSR) within business practices but faces challenges with regard to how to do so across various organizational practices, processes, and policies. The integration of CSR demands cultural change driven by senior management and other change agents, who push CSR principles throughout the organization. This study examines the change processes that S&B member organizations have initiated, with a particular focus on the role of high potentials—those persons (...) who have been selected for the fast track into senior management. Interviews with nine S&B organizations document their levels of CSR integration and implementation, the role of senior managers, and the effects of high potentials’ competencies on the realignment process. High potentials have the ability and opportunity to act as CSR change agents, but organizations’ expectations of their purposes as future senior managers prevented them from doing so. In the existing organizational cultures, leadership focused on economic success, and the CSR implementation process had just initiated. Therefore, a measure of CSR embeddedness might refer to the performance measurement and expectations of high potentials as potential CSR change agents. (shrink)

Organizations increasingly rely on algorithm-based HR decision-making to monitor their employees. This trend is reinforced by the technology industry claiming that its decision-making tools are efficient and objective, downplaying their potential biases. In our manuscript, we identify an important challenge arising from the efficiency-driven logic of algorithm-based HR decision-making, namely that it may shift the delicate balance between employees’ personal integrity and compliance more in the direction of compliance. We suggest that critical data literacy, ethical awareness, the use of participatory (...) design methods, and private regulatory regimes within civil society can help overcome these challenges. Our paper contributes to literature on workplace monitoring, critical data studies, personal integrity, and literature at the intersection between HR management and corporate responsibility. (shrink)

Little is known and understood about ethics management or the development of formal, systematic, and goal-directed initiatives to improve ethics in the public relations workplace. This study found little ethics training and written guidelines in the public relations workplace. Organizational ethics initiatives are poorly communicated to practitioners and rely mostly on punitive restraints with little reward for ethical behavior. For many practitioners, ethics is not learned through workplace ethics initiatives but rather is mostly informed by external influences including personal values, (...) family upbringing, and professional work experiences. (shrink)

Business Ethics: A European Review, EarlyView.

In the face of the business community’s widening concern about corporate ethical behavior, business schools are reexamining how they ensure that students appreciate the ethical implications of managerial decision making and have the analytical tools necessary to confront ethical dilemmas. The current approaches adopted by colleges vary from mere ‘lip service’ to embedding ethics at the core of the curriculum. This paper examines the experience of several US universities that have incorporated business ethics into their curricula. In particular, the paper (...) describes the issues facing Central Washington University as it seeks to integrate ethical decision making into its core undergraduate business curriculum. Issues addressed include the technical challenges of establishing a common element of curriculum across the various business disciplines, determining the major conceptual foundations of ‘ethical thinking’ while recognizing students’ existing value systems, and how to obtain ‘buy in’ by faculty to the initiative. (shrink)

Applying evidence from recently available public information on Enron, I defined Enron’s culture as one rooted in agency theory by asserting that Enron’s members were predominantly agency-reasoning individuals. I then identified conditions present at Enron’s collapse: a strong agency culture with collectively non-compliant norms, a munificent rare-failure environment, and new hires with little business ethics training. Turning to four possible antidotes (selection, objectivist integrity, integrity capacity, and stewardship reasoning) to an agency culture under these conditions, I argued that the currently (...) available ethics literature would have made little difference toward averting Enron’s collapse if any of the recommendations from the relevant ethics literature had been implemented. I conclude by identifying new directions for business ethics literature in order to make it more implementable under the conditions identified at Enron. Essentially, we need a way to clearly determine (1) the difference between connivance and commitment, (2) what is meant by balance with regard to the multiple dimensions of ethics and legal theories, and (3) the proper balance between agency and stewardship reasoning. (shrink)

Notwithstanding empirical evidence that combining ethics and compliance into one function or programme is likely to erode an ethical culture in organisations, the praxis to coalesce ethics and compliance conceptually and structurally remains attractive and continues in many organisations. Drawing on systems psychodynamic theory, this study enquires into unconscious complexities and drivers that may contribute to adverse consequences when combining ethics and compliance. Whereas previous research demonstrates that compliance dominates ethics because of self‐regulation issues, this research provides deeper insight into (...) why this happens. On explicating the unconscious dynamics that underlie the apparent lure of combination, it becomes clear that this praxis remains attractive because of its function to repress anxieties, maintain phantasies, and provide psychological comfort. In recognising the role of unconscious dynamics in the decision to combine ethics and compliance and the consequences thereof, cognition of this combination and its outcomes is moved beyond a conscious rational process. This elucidates the commanding opposing unconscious forces potentially at play in this decision. Insights could lessen adverse outcomes by prompting organisations to think of the combination of ethics and compliance as unconsciously motivated systemic processes that require sincere consideration before pursuing them. (shrink)

Academic dishonesty among students is not confined to the dynamics of the classrooms in which it occurs. The institution has a major role in fostering academic integrity. Ways that institutions can have a significant impact on attitudes toward and knowledge about academic integrity as well as reducing the incidence of academic dishonesty are described. These include the content of an effective academic honesty policy, campus-wide programs designed to foster integrity, and the development of a campus-wide ethos that encourages integrity.

Organizations are faced with the question, not only whether to adopt an ethics program, but also which components to adopt when. This study shows that unethical behavior occurs less frequently in organizations that have an ethics program than in organizations that do not have an ethics program. Nine components of ethics programs were identified and examined. The results show that there is a direct relationship between the number of components adopted and the frequency of observed unethical behavior. No relationship was (...) found between pre-employment screening and unethical behavior, while the strongest relationship was discerned between accountability policies and unethical behavior. The study further reveals that the best sequence for adopting components of an ethics program is a code of ethics, ethics training and communication, accountability policies, monitoring and auditing, and investigation and correction policies—all of which are directly related to less unethical behavior—followed by an ethics office, ethics report line, and incentive policies—all of which are indirectly related to less unethical behavior. With the exception of pre-employment screening, this sequence corresponds closely to the pattern of adoption of organizations in the U.S. (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)

A business code of ethics is widely regarded as an important instrument to curb unethical behavior in the workplace. However, little is empirically known about the factors that determine the impact of a code on unethical behavior. Besides the existence of a code, this article studies five determining factors: the content of the code, the frequency of communication activities surrounding the code, the quality of the communication activities, and the embedment of the code in the organization by senior management as (...) well as local management. The full model explains 32% of observed unethical behavior while the explanatory value of a code alone is very modest. The study shows when codes are effective, and even when they become counter effective. (shrink)

This article uses a sample of 3076 employees working in the USA to examine the relationship between the frequency of unethical behavior that employees observe in their organization and their intention to whistleblow. The results confirm the expected curvilinear relationship based on the Focus Theory of Normative Conduct. This relationship is a combination of a diminishing negative relationship between the frequency of observed unethical behavior and the intention to whistleblow internally and a linear positive relationship between the frequency of observed (...) unethical behavior and the intention to whistleblow externally. The beliefs of employees about how supportive their management is when handling whistleblowing reports moderates the relationship between the frequency of unethical behavior employees observe and their intention to whistleblow. (shrink)

Large organisations are especially advised to consider the possibility of an Ethics Helpdesk in which all employees and managers can report with all suspected cases of unethical conduct, critical comments, dilemmas and advice for which there is insufficient room within the organisational hierarchy. A helpdesk is a central contact point where it is decided who the most appropriate person is to dealing with a given case. The helpdesk model is characterised by low barriers in its easy accessibility, positive approach and (...) the simple procedures employees need to follow. It offers employees consistent support while relying on the responsibilities of the individual employee as much as possible and it facilitates adequate monitoring and reporting. A helpdesk increases the chances of detecting unethical conduct which enables management to take adequate and timely measures against improper conduct. This article formulates principles, discusses critical factors and considers three models for adopting a sound and integrated ethics safety net. It also presents a case study and shows why organisational openness needs to be institutionalised. (shrink)

One of the main objectives of an ethics program is to improve the ethical culture of an organization. To date, empirical research treats at least one of these concepts as a one-dimensional construct. This paper demonstrates that by conceptualizing both constructs as multi-dimensional, a more in-depth understanding of the relationship between the two concepts can be achieved. Through the employment of the Corporate Ethical Virtues Model, eight dimensions of ethical culture are distinguished. Nine components of an ethics program are identified. (...) To assess the relationship between ethics programs and ethical culture, a survey was conducted of 4,056 members of the U. S. working population. The results show that the relationships between the components of an ethics program and the dimensions of ethical culture differ in strength, nature, and significance. Implications for research and practice are discussed. (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)

Mutual perceptions of ethical behaviour among managers in nine EU-countries were quantatively measured and related to perceptions concerning "ease of cooperation". A strong positive correlation obtains: the more ethical a country is perceived to be, the higher it is valued as an international business partner. Germany, however, is a typical exception to this rule: German managers are perceived as the most ethical, but are considered relatively difficult to cooperate with.

Alternative dispute resolution (ADR) is a collective noun for all kinds of alternative methods to formal dispute resolution. Business ethics attempts to theorize the different forms of normative coordination of corporate acts that remain within the lifeworld and outside the formal sphere of the legal system. In this context, business ethics could offer a positive approach to ADR, as ADR would be an effective, practical form of casuistry ethics. In this manner, concrete conflicts of interest and disagreements between economic actors (...) could be resolved based on moral intentions and moral validity claims. This approach of ADR through business ethics is confirmed by many articles in business ethical journals. In two important aspects, namely justice and autonomy, law is contrary to ethics. ADR lacks exactly these ethical characteristics; thus the idea that ADR belongs to the discourse of business ethics is misleading. This article will argue that ADR is not in the realm of the ethical, but in the realm of the legal. This critical analysis of ADR will show a deeper dimension in the relationship between business ethics and law, namely the systematic colonization of ethical methods by law. (shrink)

In this paper I examine how the constituent elements of a firm's organizational structure affect the ethical behavior of workers. The formal features of organizations I examine are the compensation practices, performance and evaluation systems, and decision-making assignments. I argue that the formal organizational structure, which is distinguished from corporate culture, is necessary, though not sufficient, in solving ethical problems within firms. At best the formal structure should not undermine the ethical actions of workers. When combined with a strong culture, (...) however, the organizational structure may be sufficient in promoting ethical conduct. While helpful, ethics training and corporate codes are neither necessary nor sufficient in promoting ethical behavior within firms. (shrink)

The purpose of this research is to present the major factors that lead to ethical dissolution in an organization. Specifically, drawing from a wide spectrum of sources, this study explores the impact of organizational, individual, and contextual factors that converge to contribute to ethical dissolution. Acknowledging that ethical decisions are, in the final analysis, made by individuals, this study presents a model of ethical dissolution that gives insight into how a variety of elements coalesce to draw individuals into decisions that (...) result in the ethical undoing of an otherwise healthy organization. ENRON, TYCO and WorldCom did not happen in a vacuum. Nor can such debacles be explained as simply one or two individuals who were morally corrupt. The ethical breakdowns that occurred in these companies happened over a period of time, involved numerous individuals both inside and outside of the organization, and brought about the implosion of viable companies. Seeking to extend the work of previous researchers, this study attempts to tie together a disparate set of factors into a cohesive explanation of ethical breakdowns in organizations. (shrink)

Spirituality, in the broad sense, provides a deeper foundation for principles of international business ethics than legalistic, command-based ethics programs. Spiritual-based principles and values are presupposed and endorsed by established legal and ethical principles for international business. Identifying such spiritual-based principles and values requires the exercise of moral imagination and an openness to values embraced by the world's religions. Once identified, a new realm of moral freedom is attained for multinational corporations which may help them move beyond an "ethics for (...) sale" orientation. (shrink)

Establishing a cosmopolitan ethical culture for a multinational company requires special effort above and beyond that needed for standard domestic ethics initiatives. This articles discusses some of the perils and prospects involved in international corporate ethics programs, and recommends some key guiding principles.

Creativity and morality are key attributes that stakeholders demand of organizations. Accordingly, higher education institutions and professional training programs also seek to cultivate these attributes in future leaders. However, research has hitherto shown that, under certain conditions, creativity may conflict with morality. This complicates the development of creative individuals who are also moral. We examined the complex relationship between creativity and moral reasoning with data collected from a group of undergraduate students. By considering the cognitive processes behind creativity and moral (...) reasoning, we propose perspective taking as a moderating factor. Specifically, we found that while creative individuals might not necessarily adopt a lower level of moral reasoning, there was a more nuanced moderating relationship among creativity, perspective taking, and moral reasoning. That is, individuals who were weak in perspective taking tended to adopt a lower level of moral reasoning if they were also creative. Perspective taking was also directly and positively associated with moral reasoning. We explore the implications of our findings for future research and curriculum/program design. (shrink)

PurposeThe purpose of this paper is to present a four component model of ethical behavior that integrates literature in moral psychology, computing ethics, and virtue ethics as informed by research on moral exemplars in computing. This is part 2 of a two part contribution, part 1 having appeared in Vol. 6 No. 3.Design/methodology/approachThis psychologically based and philosophically informed model argues that moral action is grounded in relatively stable personality characteristics, guided by integration of morality into the self‐system, shaped by the (...) context of the surrounding moral ecology, and facilitated by morally relevant skills and knowledge.FindingsThe model seeks to explain the daily successful (and unsuccessful) performance of moral action by computing professionals and to provide groundwork for a pedagogy that emphasizes ethically effective performance.Practical implicationsThe model has significant implications for how ethical action to computer professionals and other design professionals might be taught. It also makes recommendations about what need to be measured to construct a complete picture of sustained ethical action in a profession.Originality/valueMost accepted models of ethical behavior are unidimensional, emphasizing either principled reasoning or a simplistic model of integrity/character. This model brings together a variety of disparate literatures in the light of its emphasis on sustained moral action in the profession. It thereby provides researchers and educators with a picture of what is needed to construct a complete understanding of moral action in the profession. (shrink)

Recent corporate disgraces and corruption have heightened concerns about ethically questionable behavior in business. The construct of ethically questionable behavior is an under-portrayed area of management field research, and deserves further studying, especially in sales positions. This study uses four variables from the human resource management field to explain the ethically questionable behavior of sales representatives in the pharmaceutical industry. These variables include frame pattern, commission structure, behavior control type, and marketing norm perceptions. This work uses a 2  2 (...)  2  2 subject experimental design, and 328 fully completed questionnaires for logistic regression analysis. Results suggest that a medical representative in a loss frame (compared with a gain frame), in a high commission structure (compared with a low commission structure), in loose behavior control (compared with strict behavior control), and in a low perception of marketing norm (compared with a high perception of marketing norm), is more likely affected by heuristic biases and make an ethically questionable choice. (shrink)

While attention to research integrity has been growing over the past decades, the processes of signalling and denouncing cases of research misconduct remain largely unstudied. In this article, we develop a theoretically and empirically informed understanding of the causes and consequences of reporting research misconduct in terms of power relations. We study the reporting process based on a multinational survey at eight European universities. Using qualitative data that witnesses of research misconduct or of questionable research practices provided, we aim to (...) examine actors’ rationales for reporting and not reporting misconduct, how they report it and the perceived consequences of reporting. In particular we study how research seniority, the temporality of work appointments, and gender could impact the likelihood of cases being reported and of reporting leading to constructive organisational changes. Our findings suggest that these aspects of power relations play a role in the reporting of research misconduct. Our analysis contributes to a better understanding of research misconduct in an academic context. Specifically, we elucidate the processes that affect researchers’ ability and willingness to report research misconduct, and the likelihood of universities taking action. Based on our findings, we outline specific propositions that future research can test as well as provide recommendations for policy improvement. (shrink)

This article examines how culture influences Chinese managers’ perception of some western management instruments, such as codes of ethics and performance evaluation systems. The research is based on analyzing the tacit messages in “stories told” by managers and reviewing some of the barriers that may hinder understanding. Major obstacles lie in failing to ‘read’ each other’s cultures correctly. Assumptions and biases are left alone instead of being addressed openly. Western management systems and tools do not necessarily function equally well in (...) the Chinese culture, unless they are reassessed and adapted. Some recommendations for managers and further research are given. (shrink)

Due to the economic globalization which is characterized with business scandals, scholars and practitioners are increasingly engaged with the implementation of codes of ethics as a regulatory mechanism for stimulating ethical behaviours within an organization. The aim of this study is to examine various organizational practices regarding the effective implementation of codes of ethics within construction contracting companies. Views on ethics management in construction organizations together with the recommendations for improvement were gleaned through 19 semi-structured interviews, involving construction practitioners from (...) various construction companies in Hong Kong. The findings suggested some practices for effective implementation of codes of ethics in order to diffuse ethical behaviours in an organizational setting which include; introduction of effective reward schemes, arrangement of ethics training for employees, and leadership responsiveness to reported wrongdoings. Since most of the construction companies in Hong Kong have codes of ethics, emphasis is made on the practical implementation of codes within the organizations. Hence, implications were drawn from the recommended measures to guide construction companies and policy makers. (shrink)

This paper argues that the MBA, probably the most successful academic program of the last 50 years, negatively affects the theory and practice of management with regard to ethics through its pedagogy, structure, and its underlying epistemic assumptions. In particular I seek to demonstrate how the syllabus, the pedagogy and the epistemological assumptions of MBA programs together make managers/leaders unable and unwilling to deal with ethics. I also argue that while the what and the how play a very important role, (...) it was only the emergence of a radical philosophical underpinning that has put management education on a negative trajectory. The paper thus examines MBA education from a meta-level perspective, connecting the pedagogical model with epistemological beliefs. (shrink)

ABSTRACT:Organization theory and business ethics are essentially the positive and normative sides of the very same coin, reflecting on how human cooperative activities are organized and how they ought to be organized respectively. It is therefore unfortunate that—due to the relatively impermeable manmade boundaries segregating the corresponding scholarly communities into separate schools and departments, professional associations, and scientific journals—the potential symbiosis between the two fields has not yet fully materialized. In this essay we make a modest attempt at establishing further (...) connectivity by surveying the terrain covered by the two disciplines jointly, as if the boundaries between them did not matter. We commence by providing a concise overview of the organization theory discipline for interested non-specialists from the field of business ethics. Next, we proceed to point out four research themes commonly investigated by members of both communities, and also a variety of organization-theoretical perspectives on each. In the final part of this essay we explore what organization theory has to offer business ethics, and what the boundaries of that potential contribution are. We warn skeptical readers in advance that the spirit and tone of our essay is most definitely upbeat, as we are convinced that the potential for symbiosis between the two fields is vast and inspiring, even though it has only been unleashed partially and incidentally thus far. (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)

Medical ethics has become an important and recognized component of physician training. There is one area, however, in which medical students receive little guidance. There is practically no discussion of the financial aspects of medical practice. My objective in this paper is to initiate a discussion about the moral dimension of physician billing practices. I argue that physicians should expand their conception of professional responsibility in order to recognize that their moral obligations toward patients include a commitment to honest and (...) forthright billing practices. I argue that physicians should aspire to a standard of clinical accuracy—not legal adequacy—in describing their activities. More generally, physicians should strive to promote an integrity-based professional culture, first and foremost by stigmatizing rather than celebrating creative billing practices, as well as condemning the misguided sense of solidarity that currently makes it taboo for physicians to criticize each other on this score. (shrink)

In recent years, trade-control laws and regulations such as embargoes and sanctions have gained importance. However, there is limited empirical research on the ways in which small- and medium-sized enterprises (SMEs) respond to such coercive economic measures. Building on the literature on organizational responses to external demands and behavioral ethics, this study addresses this issue to better understand how external pressures and managerial decision-making are associated with the scope of trade-control compliance programs. Based on a sample of 289 SMEs, the (...) findings show that the organizational responses of SMEs reflect proportionate adjustments to regulatory pressures but only if decision-makers are well informed and aware of the prevailing rules and regulations. Conversely, uninformed decision-making leads to a disproportionate response resulting in an inadequately reduced scope of the compliance program. In addition, the results indicate that SMEs that are highly integrated into supply chains are susceptible to passing-the-buck behavior. (shrink)

Abstract:There is good reason to take a virtue-based approach to business ethics. Moral principles are fairly useful in assessing actions, but understanding how moral people behave and how they become moral requires reference to virtues, some of which are important in business. We must go beyond virtues and refer to character, of which virtues are components, to grasp the relationship between moral assessment and psychological explanation. Virtues and other character traits are closely related to (in technical terms, they supervene on) (...) personality traits postulated by personality psychologists. They may therefore be featured in respectable psychological explanations. But good character fits no familiar psychological pattern. A person of good character is sufficiently self-aware and rational that his or her virtues are not accompanied by the vices that psychologists find usually associated with them. A course in business ethics can help develop this self-awareness, which a good life in business requires. (shrink)

The United Nations Global Compact is one of the largest transnational governance schemes. Its success or failure, however, is a matter of debate. Drawing on research in cognitive linguistics, we argue that when evaluators discuss the UNGC, they apply the metaphorical concept of the family: the UNGC corresponds to the “family,” the UNGC headquarter to the “parent” and the business participants of the UNGC to the “children” of the family. As a corollary, evaluators’ implicit understanding of how a family is (...) best organized sets different benchmarks against which the governance structure of the UNGC is assessed. We describe two ideal models of “educating” UNGC business participants. Critics of the UNGC adopt a “strict father” model of transnational governance based on the idea that the proper education of inherently “bad” business firms necessitates obedience, discipline and punishment in case firms are non-compliant. In contrast, the UNGC’s advocates follow a “nurturant parent” model, which prioritizes empathy, learning and nurturance to support the moral development of “good” business firms. We develop the “UNGC-as-family” metaphor, explore its implications for transnational governance and discuss under what conditions these idealized models can serve as appropriate guidelines for TGSs. Specifically, we posit that following the behavioral prescriptions of the “strict father” model may, under certain conditions, jeopardize the organizational embedding and institutionalization of UNGC principles, and explain when and why it may be in the best interest of the UNGC and civil society to embrace the instructions of the “nurturant parent” model of transnational governance. (shrink)

In this article, I suggest and support a utilitarian approach to business ethics. Utilitarianism is already widely used as a business ethic approach, although it is not well developed in the literature. Utilitarianism provides a guiding framework of decision making rooted in social benefit which helps direct business toward more ethical behavior. It is the basis for much of our discussion regarding the failures of Enron, Worldcom, and even the subprime mess andWallStreetMeltdown. In short, the negative social consequences are constantly (...) referred to as proof of the wrongness of these actions and events, and the positive social consequences of bailouts and other plans are used as ethical support for those plans to right the wrongs.I believe the main cause of the neglect of the utilitarian approach is because of misguided criticisms. Here, I defend utilitarianism as a basis for business ethics against many criticisms found in the business ethics literature, showing that a business ethics approach relying onJohnStuartMill's utilitarianism supports principles like justice, is not biased against the minority, and is more reasonable than other views such as aKantian view when dealing with workers and making other decisions in business. I also explain utilitarian moral motivation and use satisficing theory to attempt to defend utilitarian business ethics from questions raised regarding utilitarian calculus. (shrink)

The increasing challenges faced by organizations have led to numerous studies examining human resource management (HRM) practices, organizational ethical climates and sustainability. Despite this, little has been done to explore the possible relationships between these three topics. This study, based on a probabilistic sample of 6,000 employees from six European countries, analyses how HRM practices with the aim of developing organizational ethics influence the benevolent, principled and egoistic ethical climates that exist within organizations, while also investigating the possible moderating role (...) played by their employees’ perception of corporate sustainability. Findings demonstrate that ability-enhancing practices (i.e. recruiting, selection and training) and opportunity-enhancing practices (i.e. job design, industrial relationships and employee involvement) improve benevolent and principled organizational ethical climates, while motivation-enhancing practices (i.e. performance management, compensation and incentives) rather than being related to these organizational ethical climates, are linked to the egoistic climate. In addition, the perceptions of the company’s employees in terms of corporate sustainability moderate these relationships, by reinforcing the positive relationships of ability-enhancing and motivation-enhancing HRM practices in terms of benevolent and principled ethical climates and by reducing the positive relationships between motivation-enhancing practices and egoistic climate. Specific implications for HRM research, teaching and practice are then advanced and discussed. (shrink)