Effects of globalization have amplified the magnitude and frequency of corporate abuses, particularly in developing economies where weak or absent rules undermine social norms and principles. Improving multinational enterprises’ (MNEs) ethical conduct is a factor of both the ability of firms to change behaviors in the direction of the moral good, and their willingness to do so. Constraints and enablers of a firm’s ability to act ethically emanate from the external environment, including the industry environment of which the firm is (...) a resident, and the host country environment in which it operates. A firm’s willingness to engage in ethical conduct is determined by the effective bundling of internal resources and the commitment of those resources to social ends. The interaction of external and internal conditions carves out categories of expected firm behaviors and suggests interventions that would push these behaviors in a more positive ethical direction. With reference to integrative social contracts theory (ISCT), these categories of firms are examined, and a conceptual model for analysis is developed to explain the drivers of corporate choices in the adoption and implementation of codes of conduct, and the relative power of relevant communities to the process. (shrink)

The present study expands on the growing literature concerning organizational politics by assessing the impact of team-level OP on employee performance outcomes as well as investigating the degree to which these effects are mediated by team conflict. The results, based on multilevel structural equation modeling with a sample of 349 employees from 78 firms in China, lent support for a cross-level mediating role for team conflict between political climate and employee performance. Further, moderator analyses demonstrated that political climate acted as (...) a condition for task conflict to trigger relationship conflict. Thus, the results of this study contribute to both the political climate literature and the conflict literature by clarifying the processes by which climate can influence employee performance. (shrink)

Although detailed studies of code adoption and impact have already been conducted in Hong Kong, there has as yet been no critical analysis of why there has been a gap between the normative and positive factors underlying codes of ethics in Hong Kong. The purpose of this paper is to consider why Hong Kong companies adopting codes of ethics have failed to adhere closely to the best practice prescriptions for code adoption when it would likely be in their best interests (...) to do so. This paper identifies some cultural factors, such as power distance and traditional Legalist assumptions approximating Theory X, that appear to be involved in creating this gap, and offers some practical recommendations for closing the gap, which are presented in the form of hypotheses for further testing. (shrink)

Today’s international business environment is complicated by human rights abuses and social and economic repression in variouscountries. This paper introduces controversies with foreign investment in Burma to develop and describe alternative terms of global business engagement in ethically challenging settings. Two forms of engagement—unrestricted and constructive—and two forms of non-engagement—principled and sanctioned—are discussed. All four alternatives are examined for their ethical, social change, andcultural foundations. Additional considerations are posed in respect to constructive engagement, moral leadership by global businessexecutives, needs for (...) model building and evaluative research, and realities in the ethical context of global business. (shrink)

ABSTRACT Although scholars have long been interested in distinguishing gift giving from bribery, the impact of the degree of guanxi between a giver and a recipient on this distinction remains unclear. Drawing on a bystander perspective, this paper investigates how people distinguish between two types of giving behavior: gift giving and bribing. In three studies, we examined how guanxi, the price of a present, and the motivation for giving a present influence people’s perception of a present. The results largely supported (...) our expectation that presents were more likely to be considered a bribe when guanxi utility was high, if the present held high economic value, and if the giving motivation was instrumental-oriented. Implications of our findings for future research and business practitioners in Chinese culture are discussed. (shrink)

Confucian ethics as applied to the study of business ethics often relate to the micro consideration of personal ethics and the character of a virtuous person. Actually, Confucius and his school have much to say about the morals of the public administration and the market institutions in a more macro level. While Weber emphasizes the role of culture on the development of the economy, and Marx the determining influence of the material base on ideology, we see an interaction between culture (...) – specifically Confucian business ethics – and the economy. In this paper, we are going to study this interaction in several crucial stages of development of Confucianism. The paper concludes by postulating the relevance of Confucian business ethics to the global knowledge economy. (shrink)