As a field spanning interests among researchers and business professionals, business ethics aims to provide guidance on what can be considered morally right, socially acceptable and legally transparent dealings in the human activity of providing goods or services for trade. Yet, cohesive theory of the ethics of business is lacking, and current ethical practices often fall victim to fluctuating business conditions and circumstances. Thus, stewardship theory is proposed as a more enduring and empowering orientation to more mindful business ethics that (...) is borne out of organizational character, and knowledge stewardship is introduced as a set of practices that can support improved ethical behavior in organizations from an ethos-driven perspective. A definition of knowledge stewardship is provided in this article, and its associated outcomes of authenticity, authority and advocacy are highlighted. Practical recommendations are put forward to assist organizations in their development of stronger stewardship behavior, and exploratory research questions that heighten attentiveness to knowledge stewardship are presented. (shrink)

The 2008 financial crisis exposed the dark side of the financial sector in the UK. It brought attention to the contaminated culture of the business, which accommodated the systemic malpractices that largely contributed to the financial turmoil of 2008. In the wake of the crisis there seems to be a wide consensus that this contaminated culture can no longer be accepted and needs to change. This article examines the ills of the UK financial market, more specifically the cultural contamination problem, (...) which was uncovered by the 2008 financial crisis, in order to explore its genesis and the suitable solutions for it. In this regard, the article analyses the ethical finance sector from theoretical and practical perspectives in order to assess its role in addressing the cultural contamination problem of the UK financial market. (shrink)

This study investigates whether financial performance is affected by corporate violations of laws and regulations. In a sample of 128 publicly traded banks that were subject to enforcement actions by US regulatory authorities over a 20-year period, we observed a significant negative market reaction pursuant to the violations. However, the market reaction did not vary meaningfully in accordance with the severity or repetitiveness of the violation. The results of this study are in conformity with previous research on industries other than (...) banking, notably with regard to negative market reaction. This confirms that shareholders in the banking industry react in a manner considerably similar to their counterparts in other industries. (shrink)

We examined Confucian moral philosophy, primarily the Analects, to determine how Confucian ethics could help managers regulate their own behavior (self-regulation) to maintain an ethical standard of practice. We found that some Confucian virtues relevant to self-regulation are common to Western concepts of management ethics such as benevolence, righteousness, wisdom, and trustworthiness. Some are relatively unique, such as ritual propriety and filial piety. We identify seven Confucian principles and discuss how they apply to achieving ethical self-regulation in management. In addition, (...) we examined some of the unique Confucian practices to achieve self-regulation including ritual and music. We balanced the framework by exploring the potential problems in applying Confucian principles to develop ethical self-regulation including whistle blowing. Confucian moral philosophy offers an indigenous Chinese theoretical framework for developing ethical self-regulation in managers. This is relevant for managers and those who relate to managers in Confucian-oriented societies, such as China, Korea, Japan, and Singapore. We recommend further research to examine if the application of the Confucian practices outlined here actually work in regulating the ethical behavior of managers in modern organizations. (shrink)

AbstractMultinationals’ aggressive tax lobbying that involves free-riding behaviour and results in disproportional benefits to the disadvantage of other taxpayers, is problematic for several reasons. Such lobbying undermines the legitimacy of tax legislation and has a negative impact on trust in the tax system. Based on Immanuel Kant’s ethical theory, this article first suggests a new normative basis for a moral duty that requires multinationals and their leaders to be transparent about their political activities and tax lobbying. Next, it introduces a (...) new concept of transparency in respect of tax lobbying. ‘Deliberative transparency’ requires multinationals and their leaders not only to be open about their reasons for tax lobbying, but also to deliberate with stakeholders and, maybe even more importantly, to provide evidence supporting their lobbying positions. Finally, based on these new understandings, additional government interventions against aggressive tax lobbying are suggested, for example mandatory stakeholder consultation, reporting on stakeholder attitudes and perception, and evidence-based lobbying requirements. (shrink)

This research aims to fill a major gap in the relevant literature on small businesses in developing countries, specifically concerning the development of models to better explain economic and environmental performance as a result of environmental compliance, thus moving toward an explanation of the sustainable behavior of these businesses. Data from 186 pottery craft businesses located in three Mexican states (Oaxaca, Puebla and Tlaxcala) reveal that environmental compliance significantly influences economic and environmental performance, with the mediating role of environmental innovation, (...) confirming the Porter hypothesis in the context of small businesses in an emerging economy. Environmental compliance is an important factor in improving the economic and environmental performance of small businesses in emerging economies. (shrink)

Design ethics has been offered as a course in undergraduate design programs in Taiwan for over a decade, but research on teaching design ethics and the results of teaching these courses is scant. We conducted two tests to examine the effect of an ethics course, and the differences among the effects of design department, gender, and study year on student opinions regarding ethical design standards at the National Yunlin University of Science and Technology in Taiwan. The participants comprised 934 undergraduates (...) from the five design departments at YunTech’s College of Design from Years 1–4. The results confirmed the effect of an ethics course on student EDS opinions. In addition, we observed significant variations among students according to design departments, suggesting that the characteristics of the design departments also affected students’ EDS opinions. The results indicated that gender did not significantly affect design students’ EDS opinions; however, students in their early years of study produced higher scores than those in their advanced years of study did, based on the six EDS opinions. The implications of these results for teaching design ethics and future research are discussed in this paper. (shrink)

The concept of people’s memory maintains the finiteness of time and capacity. However, with the advancement in technology, the amount of storage memory a person can use has increased dramatically. Given that digital traces can hardly be erased or forgotten, individuals have begun to express their desire to be forgotten in the digital world, and governments and academia are considering methods to fulfill such wishes. Capturing the difficulties in terms of a cultural lag between technological advancements and regulations on individuals’ (...) data privacy needs, we identify six motives for individuals wishing to be forgotten online and investigate its expected effects on online content generation through a qualitative content analysis of 222 responses from open-ended surveys in Korea. Our findings provide implications for the literature on individual privacy and the right to be forgotten employing the cultural lag, as well as, elaborate further on the relationship between being forgotten online and the legitimacy of such requests of individuals. Additionally, implications for data providers, data controllers/processors, and governments to address this lag and build a balanced system of personal information are provided. (shrink)

ABSTRACT:Legal scholars and business ethicists are interested in many of the same core issues regarding human and firm behavior. The vast amount of legal research being generated by nearly 10,000 law school and business law scholars will inevitably influence business ethics research. This paper describes some of the recent trends in legal scholarship and explores its implications for three significant aspects of business ethics research—methodology, theory, and policy.