Germany is at the leading edge of European reflection on the nature and requirements of ethical business. Two scholars in the field provide a survey of the main lines of discussion in the current German business ethics scene, and discuss three important books which are helping set the scene for further developments. Prof. Dr. Horst Steinmann holds the Chair for Business Administration and Management at the University of Erlangen‐Nürnberg, Lange Gasse 20, D‐90403 Nürnberg, and Dipl.‐Hdl. Brigitte Kustermann is research assistant (...) to the same chair. (shrink)

Although personal attributes have gained recognition as an important area of effective corporate governance, scholarship has largely overlooked the value and implications of individual virtue in governance practice. We explore how authenticity—a personal and morally significant virtue—affects the primary monitoring and strategy functions of the board of directors as well as core processes concerning director selection, cultivation, and enactment by the board. While the predominant focus in corporate governance research has been on structural factors that influence firm financial outcomes, this (...) paper shifts attention to the role of authenticity and its relationship to individual board member qualities and collective board activities. We explore how authenticity has the potential to influence board dynamics and decision making and to enhance transparency and accountability. (shrink)

Codes of ethics are directly aimed at behavioral control, but they also affect a company’s ethical culture, which in turn concerns compliance and ethical behavior. To positively influence a company’s ethical culture, employees must be familiar with its code of ethics, perceive that top management is committed to the code, and believe that their peers also comply with the code. The evidence on whether a code’s design affects a company’s ethical culture is limited. This study’s factorial survey experiment contributes to (...) this gap in two ways: first, it investigates whether a code’s design affects how easily the code can be learned and, therefore, contributes to code familiarity. Second, it examines how a code can convey expectations regarding top management’s commitment and peers’ behavior, both of which are part of ethical culture. The results indicate that a positive tone increases code familiarity, and a code signed by top managers sends a strong signal of their commitment to the code. Finally, various implications of the results for research and practice are discussed. (shrink)

ABSTRACT:Whether at the executive or the line-management levels, businesspeople face moral decisions that cannot be easily resolved with reference to a shared ethos, whether because of diversity of ethea in the organization or its environment, or because the organization's ethos is inadequate for the problem at hand. These decisions are made more common by the changing norms of a pluralistic business environment, and require collective moral deliberation to be adequately resolved. Discourse ethics ideally characterizes the form of valid collective moral (...) deliberation. I argue that accommodation for the limitations of actual discourse makes discourse ethics, conceived in terms of the rules of practical discourse, practical for realizing improvements in the openness and validity of moral decision-making over states in which these rules are flagrantly violated. These rules have normative implications at the organizational level for the integrity approach to corporate ethics programs, and at the individual level for ethical leadership. (shrink)

ABSTRACT:We analyze corporate ethics programs as control systems, arguing that how control is exercised may have pernicious consequences and be morally problematic. In particular, the control cultivated by ethics programs may weaken employees’ ability and motivation to exercise their own moral judgment, especially in novel situations. We develop this argument first by examining how organization theorists analyze control as an instrument of management coordination, and by addressing the political implications of control. We discuss coercive and enabling control as variations that (...) help account for the distinction between compliance-based ethics programs and values-based ethics programs. We then explore three potential drawbacks of ethics programs: the specter of indoctrination, a politicization of ethics, and an atrophy of competence. Ethics programs that rely on coercive control may undermine their own effectiveness at stemming misbehavior. (shrink)

What does it look like when an organization tentatively steps away from an exclusively rules-based regime and begins to attend to both rules and principles? What insights and guidance can ethicists and ethical theory offer? This paper is a case study of an organization that has initiated such a transition. The American Institute of Certified Public Accountants has begun a turn toward the promotion of ethical principles and best practices by adding a “conceptual framework” to its existing Code of Professional (...) Conduct. This conceptual framework calls upon its members to intentionally increase their awareness of significant threats to their compliance with its rules of conduct and to establish safeguards to offset or eliminate those threats. To this end, each member is required to regard every questionable situation, circumstance, transaction or relationship by attempting to view it through the eyes of an imagined reasonable third party. This paper examines this protocol theoretically and practically. First, we frame this analysis within the principles and ethical concepts that inform the professional ethics of accountants. Second, we critique the AICPA’s long-standing rules-based approach to its Code. Third, we examine the new conceptual framework with a view toward its potential for the promotion of a more principles-based approach to the professional ethics of the accounting profession. Fourth, we give attention to the notion of the “reasonable and informed third party,” which has been embedded in the new conceptual framework, and consider how two schools of thought—Adam Smith’s modernist “impartial spectator” concept and Emmanuel Lévinas’ postmodern phenomenology in regard to “the Other”—may offer theoretical support and clarity for this epistemic exercise. Finally, we point out several ways in which the AICPA’s commitment to its new conceptual framework could be strengthened and enhanced. (shrink)

Abstract:The purpose of this paper is to present an understanding of business ethics based on a theory of internal social criticism. Internal social criticism focuses on how members of a business organization debate the meanings of their shared traditions for the purpose of locating and correcting hypocrisy. Organizations have thick moral cultures that allow them to be self-governing moral communities. By considering organizations as interpretive moral communities, I challenge the conventional notion that moral criticism is based primarily on exogenous moral (...) principles delivered by outside critics. I describe an interpretive process of business ethics and develop a theoretical model of internal social criticism. I also propose that organizational identification serves as a mechanism for inducing ethical behavior. I conclude by calling for more research that understands the development and use of existing moral principles inside of organizations. (shrink)

Institutional investors control almost 60% of all assets under management worldwide and encompass a wide variety of organizations. Despite this reach, however, institutional investors have not received the normative scrutiny they merit beyond general discussions around their legally grounded fiduciary obligations to their beneficiaries. This paper offers a discussion of institutional investor ethical obligations in light of their specific attributes. We propose that the different characteristics of institutional investors and the diverse roles they play in the marketplace inform the scope (...) of their activities, and, in turn, the different ways in which their basic ethical obligations can be fulfilled. (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)

A study was conducted in order to examine the relationship between corporate codes of ethics and behaviour. Fifty-seven interviews of employees, managers, and ethics officers were conducted at four large Canadian companies. The study found that codes of ethics are a potential factor influencing the behaviour of corporate agents. Reasons are provided why codes are violated as well as complied with. A set of eight metaphors are developed which help to explain how codes of ethics influence behaviour.

This article assesses some of the implications of globalization for the scholarly debate on business ethics, CSR and related concepts. The argument is based, among other things, on the declining capacity of nation state institutions to regulate socially desirable corporate behavior as well as the growing corporate exposure to heterogeneous social, cultural and political values in societies globally. It is argued that these changes are shifting the corporate role towards a sphere of societal governance hitherto dominated by traditional political actors. (...) This leads to a discussion of the ambivalent results of such a process for a responsible corporate role in a globalized world. While assessing the current reception these changes have received in the management literature, the contributions of the four articles in this Special Issue are framed and evaluated. The argument closes by highlighting avenues of future research on this new challenge. (shrink)

In order to enable firms to successfully deal with issues of corporate sustainability, the firms' stakeholders would need to participate in sustainability accounting and management. In practice, however, participative sustainability accounting and management are often unfeasible. The resulting consequence is the risk of misbalancing single aspects of sustainability. The purpose of this article is to show that reflexivity in sustainability accounting and management, that is, an ongoing reflection on the relationship between the goals of corporate sustainability and the overarching objective (...) of sustainable development can, at least, mitigate this problem. Reflexivity has the potential to initiate processes of collective learning and could eventually bring about the realization of business models that integrate economic, ecological, and social considerations. (shrink)

This article assesses some of the implications of globalization for the scholarly debate on business ethics, CSR and related concepts. The argument is based, among other things, on the declining capacity of nation state institutions to regulate socially desirable corporate behavior as well as the growing corporate exposure to heterogeneous social, cultural and political values in societies globally. It is argued that these changes are shifting the corporate role towards a sphere of societal governance hitherto dominated by traditional political actors. (...) This leads to a discussion of the ambivalent results of such a process for a responsible corporate role in a globalized world. While assessing the current reception these changes have received in the management literature, the contributions of the four articles in this Special Issue are framed and evaluated. The argument closes by highlighting avenues of future research on this new challenge. (shrink)

In view of the scope and scale of the latest scandals, e.g. Enron's maximum breaking bankruptcy, the re-discovery of ethics in business has received an impressive boost. By now even car salesmen have written ethics, a Code of Conduct, e.g. in the USA or Poland. But there is no clear aim of the role ethics obtains in organizational settings as we may show in some small cases of practical approaches to deal with ethics in organizations. We discuss how ethics is (...) the prerequisite to conduct any business and what advantages may be realized if a clear set of ethics is followed. We will discuss three practical examples. In cases of ethics-based values-added management of Siemens (Germany), Boeing (U.S.) and SAP (Germany) we explain the mechanisms of ethics in management to strengthen organizational success. We emphasize the importance of clear ethics-related communication processes in organizations. We explain the use of communication theories inside organizational processes to clarify communication about such an abstract topic as ethics. Finally, we point out how a management of ethical ideas and cultural values should be designed in business enterprises. (shrink)

The study examines employee, managerial, and ethics officer perceptions regarding their companies codes of ethics. The study moves beyond examining the mere existence of a code of ethics to consider the role that code content and code process (i.e. creation, implementation, and administration) might play with respect to the effectiveness of codes in influencing behavior. Fifty-seven in-depth, semi-structured interviews of employees, managers, and ethics officers were conducted at four large Canadian companies. The factors viewed by respondents to be important with (...) respect to code effectiveness include: provisions of examples; readability; tone; relevance; realism; senior management support; training; reinforcement; living up to standards; reporting requirement; anonymous phone line; communicating violations; and enforcement. The factors found to be potentially important include: justification for provisions; employee involvement; and sign-off requirements. Factors found not to be important include: objectives for the code; prior distribution; testing; and relating ones performance review to compliance with the code. (shrink)

Abstract:Extrapolating from Carroll’s four domains of corporate social responsibility (1979) and Pyramid of CSR (1991), an alternative approach to conceptualizing corporate social responsibility (CSR) is proposed. A three-domain approach is presented in which the three core domains of economic, legal, and ethical responsibilities are depicted in a Venn model framework. The Venn framework yields seven CSR categories resulting from the overlap of the three core domains. Corporate examples are suggested and classified according to the new model, followed by a discussion (...) of limitations and teaching and research implications. (shrink)

Among critics of corporate social responsibility (CSR), there is growing concern that CSR is largely ineffective as a corrective to the shortcomings of capitalism, namely, the negative effects of business on society and the undersupply of public goods. At the same time, researchers suggest that despite the shortcomings of CSR, it is possible to make it more effective in a stepwise manner. To explain the frequent failures of current CSR practices and to explore the possibilities of remedying them, I examine (...) the close relationship between CSR, the persistent expansion of capitalism, and the pressure that capitalism puts on companies to legitimize their business operations. My analysis shows that the failure of CSR to serve as a corrective to the problematic effects of capitalism is, in fact, an inevitable consequence of the problematic dynamics of the capitalist system. On this basis, I suggest that capitalism limits the possibilities of making CSR more effective, argue for change on the systemic level of capitalism, and explore the ways in which CSR research can contribute to this political endeavor. (shrink)

Three ethics program components, a code of ethics, ethics training initiatives and ethics-oriented performance appraisal content, were examined for their relationship to ethical intent using a sample of 525 employees from the Spanish financial services industry. As expected, all three components contributed to the prediction of ethical intent. Importantly, clusters of employees who reported experiencing distinct combinations of the program components were identified and compared for their level of ethical intent. Employees who perceived all three components to be strongly implemented (...) reported significantly higher levels of ethical intent relative to those who viewed the components as either all weakly implemented or not present. Combinations including training initiatives plus one other element had a similar impact to the fully implemented approach. Contrary to expectations, ethics-oriented performance appraisal content did not relate more strongly to ethical intent than codes of ethics. (shrink)

We explore two dimensions of situational factors expected to influence decision-making about ethical issues among sales representatives – universal vs. particular and direct vs. indirect. We argue that these distinctions are important theoretically, methodologically, and managerially. We test our hypotheses by means of a survey of 252 sales representatives. Our results confirm that considering universal and particular and direct and indirect situational factors contributes to our understanding of decision-making about ethical issues within a sales context, specifically willingness to engage in (...) an unethical act. We also find that personal factors act independently and interact with situational factors in decision-making about ethical issues. Both demographic factors, age and gender, and personality factors, Machiavellianism and self-monitoring, have main effects on decision-making, and some of these factors interact with situational factors to affect decision-making. For example, age of the decision-maker (younger) and size of commission (larger) interact such that the likelihood of choosing an unethical alternative is greater. (shrink)

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

Applying the sensemaking perspective in the field of corporate social responsibility is a recent but promising development. Using an in-depth exploratory case study, we analyze and discuss the CSR character of British American Tobacco Switzerland. Our findings indicate that BAT Switzerland does not follow traditional patters of building CSR. BAT Switzerland can be classified as a “legitimacy seeker,” characterized mainly by a relational identity orientation and legitimation strategies that might provide pragmatic and/or cognitive legitimacy. We conclude that understanding the cognitive (...) processes underlying the CSR decision-making process is of fundamental value when analyzing and changing the CSR approach of a firm. We discuss boundary conditions of the CSR character framework and expand it by differentiating between process and product legitimacy, as both perspectives have important but possibly different implications for the firm. (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)

For several decades, most discussion on financial fraud has centered on the fraud triangle, which has evolved over time through various extensions and re-interpretations. While this has served the profession well, the articulation of the human side of the act is indirect and diffused. To address this limitation, this research develops a model to explain the role of human desires, intentions, and actions in indulgence of, or resistance to, the act of financial fraud. Evidence from religion, philosophy, sociology, neurology, behavioral (...) economics, and social psychology is integrated to develop and support an alternative fraud model, called the disposition-based fraud model. To articulate the model, its two primary components, disposition and temptation, are further developed and extended. Although the DFM is generally applicable to any act of fraud, this paper focuses on executive fraud. The similarities and differences between the DFM and extant fraud models are discussed. Importantly, in light of the DFM, a re-interpretation of the fraud triangle is made to improve our understanding of the human element in it. Additionally, potential implications of the model for corporate governance are discussed, suggestions for further research are offered, and the DFM’s strengths and limitations are noted. (shrink)

Disclosure of medical and errors to patients has been increasingly mandated in the U. S. and Canada. Thus, some health systems are developing formal disclosure policies. The present study examines how disclosure training may impact staff and the organization. We argue that organizations that support "disclose and apologize" activities, as opposed to "deny and defend," are demonstrating values-based ethics. Specifically, we hypothesized that when health care clinicians are trained and supported in error disclosure, this may signal a valuesbased ethical environment, (...) and staff may be more committed to the organization. We surveyed 325 clinical care providers employed by a large hospital that had recently begun implementing disclosure policies and training. Disclosure training explained significant variance in perceptions of the ethical environment, and the ethical environment mediated the relationship between disclosure training and organizational commitment. Although this study explored disclosure of medical errors, organizational support for error disclosure is a concept that could be relevant for many types of organizations. (shrink)

Disparate attempts exist to identify the key components that make an ethics pedagogy more effective and efficient. To integrate these attempts, a review of 408 articles published in leading journals is conducted. The key foci of extant literature are categorized into three domains labeled as approach, content, and delivery, and a comprehensive framework for ethics pedagogy developed. Within each of these domains, binaries that reflect two alternatives are identified. Approach, the philosophical standpoint, can be theory-laden or real-world connected. Content, the (...) constituencies addressed, can have a focus on breadth or depth. Delivery, the execution of the adopted pedagogy, can be traditional or innovative. The review of articles also identifies the lack of pedagogies that comprehensively focus on all the binaries across domains. The other substantive contribution of this article addresses this gap by developing a generic pedagogy—Integrative Live Case—based on the ACD framework. Based on an incident that is currently unfolding, this pedagogy allows integration of binaries across the three domains. It also allows for a modular course plan that can accommodate varied pedagogical preferences. Volkswagen Dieselgate is presented as a stylized example to showcase the significant advantages of using this pedagogy. (shrink)

The authors identify the challenge of holding contemporary business leaders accountable for enhancing the intangible strategic asset of integrity capacity in organizations. After defining integrity capacity and framing it as part of a strategic resource model of sustainable global competitive advantage, the stakeholder costs of integrity capacity neglect are delineated. To address this neglect issue, the authors focus on the cultivation of judgment integrity to handle behavioral, moral and hypothesized economic complexities as key dimensions of integrity capacity. Finally, the authors (...) recommend two leadership practices to build competence in business leaders to enhance integrity capacity as an organizational strategic asset. (shrink)

For four decades, research on the role and responsibilities of business in society has centered on the business case for corporate social responsibility (CSR) and an increasing number of studies on the corporate social performance (CSP)—corporate financial performance (CFP) link emerged leading to controversial results. Heeding the call for a deeper understanding of the mechanisms linking certain CSR efforts to certain performance outcomes, this study provides a stakeholder-based organizing framework rooted in an extensive review of existing literature on the link (...) between CSP and CFP. In so doing, we aim at guiding research and practice toward less simplistic understandings of the CSP–CFP connection, thus advancing the debate over the consequences of voluntary integrating CSR into business operations and into relationships with stakeholders. By disentangling specific drivers and outcomes of the CSP–CFP link, we underline the importance of setting clear boundaries and specifying levels of analysis to generate comparable results. (shrink)

This article focuses on the issue of data mining as it relates to the consumer and to the issue of whether the consumer's private information has any proprietary status. A brief review of data mining is provided as a background for a better understanding of the purposes and uses of data mining. Also examined are several issues of the ethics of data mining, including a review of stakeholders, who they are and which may be most seriously affected by unethical data (...) mining practices. Several suggestions for the improvement of data mining as it relates to the consumer are further presented: suggestions that would allow for data mining that would be beneficial to both the business community and the consumer. (shrink)

This article focuses on the issue of data mining as it relates to the consumer and to the issue of whether the consumer's private information has any proprietary status. A brief review of data mining is provided as a background for a better understanding of the purposes and uses of data mining. Also examined are several issues of the ethics of data mining, including a review of stakeholders, who they are and which may be most seriously affected by unethical data (...) mining practices. Several suggestions for the improvement of data mining as it relates to the consumer are further presented: suggestions that would allow for data mining that would be beneficial to both the business community and the consumer. (shrink)

The last years have seen a surge of scandals in financial intermediation. This article argues that the agency structure inherent to most forms of financial intermediation gives rise to conflicts of interest. Though this does not excuse scandalous behavior it points out market imperfections. There are four types of conflicts of interest: personal-individual, personal-organizational, impersonal-individual, and finally, impersonal-organizational conflicts. Analyzing recent scandals we find that all four types of conflicts of interest prevail in financial intermediation.

We present an analysis of over 400 comments about complying with tax obligations extracted from online discussion forums for freelancers. While the topics investigated by much of the literature on taxpayer behaviour are theory driven, we aimed to explore the universe of online discussions about tax in order to extract those topics that are most relevant to taxpayers. The forum discussions were subjected to a qualitative thematic analysis, and we present a model of the ‘universe’ of tax as reflected in (...) taxpayer discussions. The model comprises several main actors and describes the multiple ways in which they relate to taxpayers’ behaviour. We also conduct a more focused analysis to show that the majority of taxpayers seem unconcerned with many of the variables that have been the focus of tax behaviour research, and that most people are motivated to be compliant and are more concerned with how to comply than whether to comply. Moreover, we discuss how these ‘real-world’ tax discussions question common assumptions in the study of tax behaviour and how they inform our understanding of business ethics more generally. (shrink)

Corporate responsibility has often been criticised as a decoupled organisational phenomenon: a publicly espoused rule that is not followed in daily organisational practices. We argue that a crucial reason for this criticism arises from the dominant in-house assumption of CR literature, which mitigates tensions and contradictions in organisational life by claiming that integrated rules result in coupled practices. We aim to provide new insights by problematising this in-house assumption and by examining how members of two organisations discursively make sense of (...) CR, as a daily rule-bound practice, via three strategies: integration, differentiation and fragmentation. We elaborate the contemporary literature on CR as a daily organisational practice by examining the significance of discursive sensemaking for organisational rules for further development and learning regarding CR. We then discuss the significance of our results for understanding CR as a coupled/decoupled phenomenon. (shrink)

The relationship between unethical peer behavior and observers’ unethical behavior traditionally has been examined from a social learning perspective. We employ two additional theoretical lenses, social identity theory and social comparison theory, each of which offers additional insight into this relationship. Data from 600 undergraduate business students in two universities provide support for all the three perspectives, suggesting that unethical behavior is influenced by social learning, social identity, and social comparison processes. Implications for managers and future research are discussed.

Theories of business ethics or corporate responsibility tend to focus on justifying obligations that go above and beyond what is required by law. This article examines the curious fact that most business ethics scholars use concepts, principles, and normative methods for identifying and justifying these beyond-compliance obligations that are very different from the ones that are used to set the levels of regulations themselves. Its modest proposal—a plea for a research agenda, really—is that we could reduce this normative asymmetry by (...) borrowing from the normative framework of “regulation” to identify and justify an important range of beyond-compliance obligations. In short, we might think of “self-regulation” as a language and a normative framework with some distinct advantages over other frameworks like stakeholder theory, corporate social responsibility, corporate citizenship, and the like. These other frameworks have been under attack in the business ethics literature of late, primarily for their vagueness and their disappointing inability to distinguish clearly between genuine beyond-compliance moral obligations, on the one hand, and charitable acts that are laudable but not morally obligatory, on the other. (shrink)

Most professionals have the arduous task of managing their own dual loyalty: in one contextual relationship, they are members of a profession while simultaneously they are employed as members of a locally established organisation. This sense of a dual loyalty has to be taken into account when professional bureaucracies develop ethics programmes. This article focuses on universities. Accounting for the dual loyalty of academic professionals, it is the objective of the study to contribute to the most appropriate ethics programmes in (...) such an academic context. Based on a review of the literature, we identify which ethical issues commonly emerge in educational and research activities. Then we offer a conceptual analysis of the conditions required for each different strategy of ethics management. We argue that none of the four theoretically derived strategies is applicable solely on its own. For universities it is most promising to design ethics programmes based on the guiding values of the academic community, including integrity measures for universities and corrective measures for students. The argument developed in this article is assumed to be widely applicable in assessing the appropriateness of ethics management strategies in other professional settings. (shrink)

The aim of this study is to increase our understanding of the ethical climate of entrepreneurial firms as they grow and develop. A developmental framework is introduced to describe the formal and informal ethical structures that emerge in entrepreneurial firms over time. Factors influencing where firms are within the developmental framework are posited, including the entrepreneur's psychological profile, lifecycle stage of the business, and descriptive characteristics of the venture. It is also proposed that the implementation of ethical structures will impact (...) perceptions of the clarity and adequacy of the ethical standards of the firm and the firm's preparedness to deal with ethical challenges as they arise. Results are reported of a cross-sectional survey of small firms at different stages of development. The findings indicate the existence of four distinct clusters of firms based on their formal and informal ethical structures: Superlatives, Core Proponents, Pain and Gain, and Deficients. Evidence is also provided of statistically significant relationships between the proposed antecedent and outcome variables. Implications are drawn from the results, and priorities are established for future research. (shrink)

Stakeholder theory scholars have recently addressed two crucial calls: the first is for the integration of strategy and ethics, of stakeholder theory and strategic management, and the second call is for the development of a dynamic approach to stakeholder management. I have attempted to answer these calls by developing a theoretical framework that links together stakeholder management, stakeholder commitment to cooperate with the firm, key decision makers’ ethical commitment, and firm strategy. Starting from the basic assumption that managers cannot meet (...) all stakeholders’ demands immediately and in a tailored manner, I contend, first, that an ambidextrous approach to stakeholder management is conducive to stakeholders’ commitment to cooperate for the sustainable well-being of the firm and, second, that firm strategy and key decision makers’ ethical commitment moderate the relationship between an ambidextrous stakeholder management and stakeholder commitment to cooperate. Furthermore, drawing on this theoretical framework, I attempt to address the call for the integration of strategy and ethics by proposing a three-level conceptual model that distinguishes the objectives, the field, and the levers of integration. Finally, I outline a set of propositions that, taken together, represent a first attempt to develop a dynamic approach to stakeholder management. (shrink)

Aristotle saw ethics as a habit that is modeled and developed though practice. Shelly's Victor Frankenstein, though well intentioned in his goals, failed to model ethical behavior for his creation, abandoning it to its own recourse. Today we live in an era of unfettered mergers and acquisitions where once separate and independent media increasingly are concentrated under the control and leadership of the fictitious but legal personhood of a few conglomerated corporations. This paper will explore the impact of mega-media mergers (...) on ethical modeling in journalism. It will diagram the behavioral context underlying the development of ethical habits, discuss leadership theory as it applies to management, and address the question of whether the creation of mega-media conglomerates will result in responsible corporate citizens or monsters who turn on their creators. (shrink)

Media stories of ethical lapses in business are relentless. The general public vacillates between revulsion, impatience, cynicism, and apathy. The role of the Business School in Moral Development is debated by scholars, accrediting agencies, and Schools of Businesses. It is a question to which there is no easy answer and one with which Business Schools continue to grapple. This article places the concept of "moral imagination," theories of moral development, and ethics in a behavioral context. It then discusses a staple (...) of business education, the case study, as a form of ethics narrative that provides ethical modeling within that context. Finally, in discussing the narrative role of the classroom professor in ethical modeling, it provides a framework for further discussion of the role of business education in moral development. (shrink)

Leo Tolstoy was on to behavioral ethics before there was such as a thing as behavioral ethics. Three scenes from his magnum opus, War and Peace, demonstrate that Tolstoy diagnosed some of the same problems that occupy modern behavioral ethics: confirmation bias, slippery-slope reasoning, and illusions of control. However, whereas modern behavioral ethics has done more to diagnose problems than to prescribe solutions, Tolstoy’s theories of moral psychology and leadership provide direction for human moral self-cultivation. This analysis of War and (...) Peace also suggests that literary fiction can depict worlds at least as fertile as the real world for studying business ethics. Building upon this example, in an age and field which seems too often to prioritize scientific wisdom over that of the humanities, I speculate about how literary fiction can expand our research into more diverse actors and worlds of modern capitalism. (shrink)

It has become common for business practitioners and management scholars to distinguish between compliance and ethics. According to the conventional distinction as expressed in Paine’s formulation of Integrity Strategy, compliance is ordinarily a necessary but insufficient condition for ethics. Now that this distinction has been institutionalized in the most significant judicial, legislative, and regulatory developments in American business conduct management since the Enron failure, it is worth asking whether the current emphasis on ethics represents progress. Does it make logical and (...) practical sense to impose ethics as a compliance requirement, or have we come full circle? I argue that assertions of organizational ethical progress, usually involving an increase in the number and or severity of compliance restrictions, do not get the conventional distinction quite right. Moreover, under the consensus distinction, there can be no such thing as organizational ethical progress. However, our ordinary ways of talking about business conduct management often betray logical confusions about the ethics–compliance relationship. While the metaphors we employ – “higher standards,” “raising the bar,” “gray areas,” and “crossing the line,” etc. – perform a worthwhile function as standards for external evaluation of business conduct, they also have a tendency to limit and impoverish our conception of what it is to be ethical. The idea that ethics matters is fundamental to Integrity Strategy’s implicit claim, consistent with conventional wisdom and moral theory, that the objective of responsible conduct cannot be achieved solely by imposing from outside what is required but must also appeal to what is desired. (shrink)

This paper critically reviews and discusses the concept of organizational virtuousness as presented in positive organizational scholarship. It identifies Kim S. Cameron, David S. Bright, and Arran Caza as the most influential researchers within this field and portrays commonalities, differences, and inconsistencies among the various notions of organizational virtuousness offered in positive organizational literature throughout the last 15 years. While the commonalities refer to attributes, levels of analyses, outcomes, and methodology, the variances concern the locus of residence, the priority of (...) outcomes, indicators, supporting features and the virtues included in positive organizational virtuousness. The analysis further discusses the strengths and weaknesses of these differences and stresses the challenges which the POS movement needs to face in order to clarify its definition of organizational virtuousness and, maybe, converge on one unified meaning. Finally, these challenges are summarized and linked to future research proposals which offer potential ideas on how to further develop the concept of positive organizational virtuousness. (shrink)

This paper documents the development and implementation of an ethically valid code of ethics in a newly formed national professional organization. It describes the experience and challenges faced by the National Association of Senior Move Managers (NASMM) and its leaders as they worked to establish ethics as an organizing framework early in its evolution. Designed by the investigators and supported by the NASMM Board, the process took place over a 2 year period and more than 130 people participated. It provides (...) a model for code development that is both practical and grounded in theory. Although the content of a code of ethics (the "product") provides guidance to organizational members in the conduct of everyday business, especially when they face ethically challenging situations, how the code is developed (the "process") influences its ethical validity. Few published cases document an organization's experience developing a code, and this is the first case, to our knowledge, that provides a first-hand longitudinal account of an effective code development process. (shrink)

Corporate codes of ethics, which have spread in the last decades, have shown a limited ability to foster ethical behaviors. For instance, they have been criticized for relying too much on formal compliance, rather than taking into account sufficiently agents and their moral development, or promoting self-reflexive behaviors. We aim here at showing that a code of ethics in fact has meaning and enables ethical progress when it is interpreted and appropriated with practical wisdom. We explore a model that represents (...) an uncommon organizational code of ethics: the monastic Rule of St. Benedict, written in the sixth century and still used today. Our empirical study—conducted in several monasteries living under this rule—shows that organization members interpret this rule, both hermeneutically and ethically, to adapt it to situations. They also appropriate this rule as a way of life and treat it as a dynamic framework that helps them to follow their purpose within their organization. This exceptional code actually offers an alternative model for practicing codes of ethics, in a virtue-ethical manner, beyond mere compliance with the text. The way in which reflexive and active agents practice the code, both individually and collectively, shapes their organizational experience and fosters their moral development. (shrink)