This paper documents that business ethics has positive impacts upon the development of intellectual capital. Knowledge has become the most important asset of modern businesses, and this study argues that business ethics is associated with the development of intangible knowledge resources—intellectual capital. Businesses with ethical values at the core reinforce ethical conducts and successfully build trust with their various stakeholders, leading to the formation of an ethical and trustworthy corporate culture and a positive corporate environment. Thus, in this reasoning, an (...) ethical approach to business can encourage open communication, problems solving, knowledge sharing and creativity among employees to increase organisational capital; enhance interactions and relationships with suppliers, customers and other stakeholders to increase social capital; attract and retain good talent to increase human capital. Questionnaire survey is adopted as the research method with businesses in the electronic and information technology industries in Taiwan as sample. The results suggest that business ethics is associated with increased intellectual capital. Thus, this study demonstrates that the development of intellectual capital is in line with strengthened ethics. It contributes to the literature through combining research on business ethics with intellectual capital theories and extends the extant intellectual capital literature. (shrink)

Human resource management (HRM) education has tended to focus on specific functions and tasks within organizations, such as compensation, staffing, and evaluation. This task orientation within HRM education fails to account for the bigger questions facing human resource management and employment relationships, questions which address the roles and responsibilities of the HR function and HR practitioners. An educational focus on HRM that does not explicitly address larger ethical questions fails to equip students to address stakeholder concerns about how employees are (...) treated or the ethical dilemmas facing employers with regard to the employment relationship, and ironically makes the HRM function less strategic to the organization. In this paper, we identify some of the key ethical issues within the employment relationship, discuss how extant HRM education often fails to address these issues or help students to become aware of them, and offer a framework for integrating ethics into HRM education. (shrink)

This study investigated effects of codes of ethics on perceptions of ethical behavior. Respondents from companies with codes of ethics (n = 465) rated role set members (top management, supervisors, peers, subordinates, self) as more ethical and felt more encouraged and supported for ethical behavior than respondents from companies without codes (n = 301). Key aspects of the organizational climate, such as supportiveness for ethical behavior, freedom to act ethically, and satisfaction with the outcome of ethical problems were impacted by (...) the presence of an ethics code. The mere presence of a code of ethics appears to have a positive impact on perceptions of ethical behavior in organizations, even when respondents cannot recall specific content of the code. (shrink)

This paper analyses the use of strategies and instruments for organising ethics by small and large business in the Netherlands. We find that large firms mostly prefer an integrity strategy to foster ethical behaviour in the organisation, whereas small enterprises prefer a dialogue strategy. Both large and small firms make least use of a compliance strategy that focuses on controlling and sanctioning the ethical behaviour of workers. The size of the business is found to have a positive impact on the (...) use of several instruments, like code of conduct, ISO certification, social reporting, social handbook and confidential person. Also being a subsidiary of a larger firm has a significant positive influence on the use of instruments. The most popular instrument used by small firms is to let one member of the board be answerable for ethical questions, which fits the informal culture of most small firms. With respect to sectorial differences, we find that firms in the metal manufacturing and construction sectors are more actively using formal instruments than firms in the financial service sector and retail sector. The distinction between family and non-family firms hardly affects the use of instruments. (shrink)

Companies offer ethics codes and training to increase employees’ ethical conduct. These programs can also enhance individual work attitudes because ethical organizations are typically valued. Socially responsible companies are likely viewed as ethical organizations and should therefore prompt similar employee job responses. Using survey information collected from 313 business professionals, this exploratory study proposed that perceived corporate social responsibility would mediate the positive relationships between ethics codes/training and job satisfaction. Results indicated that corporate social responsibility fully or partially mediated the (...) positive associations between four ethics program variables and individual job satisfaction, suggesting that companies might better manage employees’ ethical perceptions and work attitudes with multiple policies, an approach endorsed in the ethics literature. (shrink)

This paper describes and discusses the Enron Corporation debacle. The paper presents the business ethics background and leadership mechanisms affecting Enron''s collapse and eventual bankruptcy. Through a systematic analysis of the organizational culture at Enron (following Schein''s frame of reference) the paper demonstrates how the company''s culture had profound effects on the ethics of its employees.

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)

The charged debate on the ‘C‐S‐R‐ization’ of organizational practices seems to have produced two opposing and seemingly incompatible explanations for why organizations should engage in corporate social responsibility (CSR): one, the normative rationale based on an appeal to ethics; and the other, the instrumental rationale, based on an appeal to business pragmatism. This paper argues that a missing link in this debate is the failure to recognize that the normative and instrumental approaches to corporate social responsibility are underpinned by substantively, (...) differentiating, relative logics of emotional rationalism on the one hand, and instrumental rationalism on the other. The paper makes a case that for CSR as a management practice to be practicable and actionable within a sustainable business agenda, it will need to be stripped of its current normative undertone and reconstructed in the instrumentally, pragmatic (utlish) language of business. Otherwise, the whole concept of CSR may continue to dwell in the realm of abstract theorizing without yielding many beneficial and practicable outcomes. The paper concludes that such an approach that situates CSR within a pragmatic business lingua, rather than a non‐business lingua, will help in legitimizing CSR as a ‘neutral’ management practice. (shrink)

This paper analyses the use of strategies and instruments for organising ethics by small and large business in the Netherlands. We find that large firms mostly prefer an integrity strategy to foster ethical behaviour in the organisation, whereas small enterprises prefer a dialogue strategy. Both large and small firms make least use of a compliance strategy that focuses on controlling and sanctioning the ethical behaviour of workers. The size of the business is found to have a positive impact on the (...) use of several instruments, like code of conduct, ISO certification, social reporting, social handbook and confidential person. Also being a subsidiary of a larger firm has a significant positive influence on the use of instruments. The most popular instrument used by small firms is to let one member of the board be answerable for ethical questions, which fits the informal culture of most small firms. With respect to sectorial differences, we find that firms in the metal manufacturing and construction sectors are more actively using formal instruments than firms in the financial service sector and retail sector. The distinction between family and non-family firms hardly affects the use of instruments. (shrink)

Using information collected from a convenience sample of graduate and undergraduate students affiliated with a Midwestern university in the United States, this study determined the extent to which gender (defined as sex differences) is related to consumers' moral philosophies and ethical intentions. Multivariate and univariate results indicated that women were more inclined than men to utilize both consequence-based and rulebased moral philosophies in questionable consumption situations. In addition, women placed more importance on an overall moral philosophy than did men, and (...) women had higher intentions to behave ethically. The marketing and practical implications of these findings are discussed, and the limitations of the research are presented along with several suggestions for future inquiry, which could advance current understanding of consumer ethics. (shrink)

This article reviews the concept of moral responsibility in business ethics and examines the seven previous articles using several types of responsibility in business as the overriding construct to gain a fuller understanding of the ethical impact of these articles. The types of responsibility that are used in this analysis are: legal, corporate, managerial, social, stakeholder, and societal. Observations about how normative ethical principles might also be applied to these articles are also advanced. This article concludes with a call for (...) more conceptual and empirical research into the notion of responsibility in business. (shrink)

Role conflict occurs when a job possesses inconsistent expectations incongruent with individual beliefs, a situation that precipitates considerable frustration and other negative work outcomes. Increasing interest in processes that reduce role conflict is, therefore, witnessed. With the help of information collected from a large sample of individuals employed at an education-based healthcare institution, this study identified several factors that might decrease role conflict, namely mindfulness and organizational ethics. In particular, the results indicated that mindfulness was associated with decreased role conflict, (...) and that perceived ethical values and a shared ethics code were associated with decreased role conflict and increased mindfulness. Despite the study's limitations, these findings imply that companies might better manage role conflict through the development of mindfulness and organizational ethics. (shrink)

Several studies have been conducted on ethical leadership and workplace ethical behavior but little is known about the role of organizational justice and each of its dimensions in this relationship. This study predicts that ethical leadership enhances organizational justice perceptions, including each of its specific dimensions, which in turn enhances employee ethical behavior. The results from two-wave survey data obtained from 270 employees in the Malaysian manufacturing industry confirm that ethical leadership has a positive impact on employee ethical behavior, and (...) that organizational justice and each of its justice dimensions mediate this relationship, both individually and together. Importantly, interpersonal and informational dimensions show the strongest mediation effects. This paper highlights the actions and strategies that can help managers to effectively elevate the moral tone in their organizations. In particular, our findings show where managers must put more emphasis to foster an ethical workplace: on providing fair treatment and honest information. (shrink)

Socrates’ inquiry into the nature of the virtues and human excellence led him to experience Socratic ignorance, a practical puzzlement experienced by his recognition that his central life commitments were conceptually problematic. This practical perplexity was not, however, an epistemic weakness but a reflection of his wisdom. I argue that Socratic ignorance, a concept that has not received scholarly attention in business ethics, is a central aim that business practitioners should seek. It is what a truthful, thorough, and courageous inquiry (...) into their professional roles and commitments leads to. It wakes them up from the moral complacency engendered by organizations, forcing them to become much more critical of their day-to-day activities and more intentional about living virtuously. It curbs the corrupting potential of authority positions and prevents the tendency of subordinates to routinely conform to sanctioned norms and expectations. Finally, it opens up novel and creative moral avenues and provides a promising model to deal with the conflicts posed by our globalized and increasingly polarized world. (shrink)

Ethical leadership has become a popular subject of empirical research in recent years. Most studies follow Brown et al.’s definition of ethical leadership, which consists of two components: the moral person and the moral manager. In this paper, I argue for a third relevant component: i.e., the moral entrepreneur who creates a new ethical norm. Viewing moral entrepreneurship as a new component of ethical leadership opens up avenues for studying various antecedents and outcomes of ethical leadership that have not been (...) acknowledged so far, or at least, not adequately. (shrink)

Public accounting firms can build integrity within their organizations through early detection of fraud. One way to reduce and detect fraud is to encourage whistleblowing as a prosocial behavior. We explore the impact of mentoring on intention to report fraud. A survey with 120 responses from the US public accountants suggests that quality mentoring relationships, a common feature in the profession, and caring ethical climate positively relate to internal reporting of fraud. Two intermediate variables, trust and affective commitment, mediate these (...) effects. Mentor-relationship quality also increases perceptions of caring ethical climate. The study contributes to two bodies of research by finding extended benefits from mentoring, beyond those typically discussed in academic literature; and identifying a previously unexplored firm intervention capable of positively influencing prosocial behavior and combating fraud. (shrink)

This study assesses the relationships among unethical corporate values, bullying experiences, psychopathy, and selling professionals’ ethical evaluations of bullying. Information was collected from national/regional samples of selling professionals. Results indicated that unethical values, bullying, and psychopathy were positively interrelated. Psychopathy and unethical values were negatively associated with moral intensity, while moral intensity was positively related to ethical issue importance. Psychopathy and unethical values were negatively related to issue importance, and issue importance and moral intensity were positively related to ethical judgment. (...) Finally, ethical judgment and moral intensity were positively linked to ethical intention; psychopathy was negatively associated with ethical intention. (shrink)

Using information collected from a convenience sample of graduate and undergraduate students affiliated with a Midwestern university in the United States, this study determined the extent to which gender is related to consumers’ moral philosophies and ethical intentions. Multivariate and univariate results indicated that women were more inclined than men to utilize both consequence-based and rule-based moral philosophies in questionable consumption situations. In addition, women placed more importance on an overall moral philosophy than did men, and women had higher intentions (...) to behave ethically. The marketing and practical implications of these findings are discussed, and the limitations of the research are presented along with several suggestions for future inquiry, which could advance current understanding of consumer ethics. (shrink)

Originally delivered at a conference of Marxist philosophers in China, this article examines some links, and some tensions, between business ethics and the traditional concerns of Marxism. After discussing the emergence of business ethics as an academic discipline, it explores and attempts to answer two Marxist objections that might be brought against the enterprise of business ethics. The first is that business ethics is impossible because capitalism itself tends to produce greedy, overreaching, and unethical business behavior. The second is that (...) business ethics is irrelevant because focusing on the moral or immoral conduct of individual firms or businesspeople distracts one’s attention from the systemic vices of capitalism. I argue, to the contrary, that, far from being impossible, business requires and indeed presupposes ethics and that for those who share Marx’s hope for a better society, nothing could be more relevant than engaging the debate over corporate social responsibility. In line with this, the article concludes by sketching some considerations favoring corporations’ adopting a broader view of their social and moral responsibilities, one that encompasses more than the pursuit of profit. (shrink)

The literature acknowledges a distinction between immoral, amoral and moral management. This paper makes a case for the employee (at any level) as a moral agent, even though the paper begins by highlighting a body of evidence which suggests that individual moral agency is sacrificed at work and is compromised in deference to other pressures. This leads to a discussion about the notion of discretion and an examination of a separate, contrary body of literature which indicates that some individuals in (...) corporations may use their discretion to behave in a socially entrepreneurial manner. My underlying assumption is that CSR isn’t solely driven by economics and that it may also be championed as a result of a personal morality, inspired by employees’ own socially oriented personal values. A conceptual framework is put forward and it is suggested that individuals may be categorized as Active or Frustrated Corporate Social Entrepreneurs; Conformists or Apathetics, distinguished by their individualistic or collectivist personal values. In a discussion of the nature of values, this paper highlights how values may act as drivers of our behavior and pays particular attention to the values of the entrepreneur, thereby linking the existing debate on moral agency with the field of corporate social responsibility. (shrink)

The aim of this paper is to explore the possibilities for an immanent ethics for business. The paper has three parts. In the first part, I make some general and critical comments about the nature of business ethics. In the second part, I outline the immanent ethics as presented by the French philosopher Gilles Deleuze. Then, I positioning immanent ethics within business, primarily in relation to the terms "best practice" and "best fit." The main claim here is that an immanent (...) ethics encourages a shift from a merely reactive approach toward an active. This shift opens up the field for an affirmative practice that aims at enlarging the discussion within business ethics as such. (shrink)

The paper discusses the role that ethics theory might play in business ethics teaching. It is noted that little attention is devoted to the explanation and application of ethics theory in business ethics textbooks, which suggests that ethics theory is held in low esteem by business ethics educators. This relative disregard has been justified by some critics on the basis of the limited usefulness of ethics theory to business ethics pedagogy. Notwithstanding these criticisms, the paper argues that ethics theory can (...) play an important role in business ethics teaching which conforms to a speculative agenda. A speculative agenda is described, and a contribution that ethics theory can make to it is explained. This constitutes a form of immanent critique, which enables putative statements of business ethicality to be subjected to critique against the cultural values upon which their credibility rests. Ethics theory is offered as a mediating resource to facilitate such critique. Some criteria that the presentation of ethics theory needs to meet if it is to fulfill this speculative agenda are also outlined. (shrink)

This study provides a comparison of the ethical perceptions of managers and non-managers, including professionals, teachers, sales persons and clerks, as well as technical and plant workers. Data of working individuals were collected in Hong Kong in the form of questionnaires which contain vignettes of questionable ethical issues. Factor analysis was used to identify the major ethical dimensions which were then used as the basis of comparison. Regression analyses were used to study the effect of various variables on ethical perceptions (...) in terms of the identified dimensions. Our study reviews that managers tend to possess deontological views that are more ethical than that found in other occupations. The gap between managers and professionals in perceiving unethical behavior is narrower compared to that between the former and individuals in other occupations. The acceptability of unethical behavior tends to decline with income. Besides, there are indications that people working in non-profit organizations tend to have higher ethical standards. Based on our results, recommendations are made to improve the ethical culture of organizations. (shrink)

While previous authors have broadly examined the motivations and outcomes of the philanthropic activities of organizations, the present study extends Miska et al.’s rationalistic approach to examine the degree to which managerial philanthropic decision-making behaviour is dominated by morality. This study also tackles the question of whether this relationship is moderated by the strength of the geographical proximity and amount of the donation within an agency framework. To probe the radical agency problem and the effect of intervention, an alternative heuristic (...) scenario is also developed to provide evidence that managers under the same moral level show significant differences in donation intention under a variety of agency conditions. The results indicate a significant difference between the existence and non-existence of agency problems in charitable decision-making by managers high in idealism and relativism; however, at the same time, philanthropic behaviour is intertwined with various dilemma-related contexts. These findings bridge the gap in the literature on ethics and corporate social responsibility, and challenge current thinking on corporate governance mechanisms in this area by offering researchers and practitioners an integrated model that responds to a strong sceptical bias or a high premium placed on morality. (shrink)

A multidimensional measure of ethical culture was examined for its relationship to person–organization fit, ethical intent and organizational citizenship behavior, using a sample of 525 employees from the financial industry in Spain. As hypothesized, relative to studies using unidimensional assessments, our measure of EC was more strongly related to ethical intent and organizational citizenship. Also, significant differences were found in the degree to which each the EC dimensions related to both ethical intent and OCB. Finally, in a first for the (...) literature, we demonstrated the important role of overall P–O fit in connection with EC, ethical intent, and organizational citizenship. Specifically, as hypothesized, P–O fit moderated positively the association between EC and ethical intent, but mediated the EC–OCB relationship. (shrink)

This discussion is about the neglected concepts of trust and social responsibility on the Internet. I will discuss and explain the concepts and their implications to people and society. I then address the issue of moral and social responsibilities of ISPs and web-hosting companies. I argue that ISPs and web-hosting companies should aspire to take responsibility for content and that they should respect and abide by their own terms of conduct.

While a number of studies have examined the impact of gender/sex on ethical decision-making, the findings of this body of research do not provide consistent answers. Furthermore, very few of these studies have incorporated cross-cultural samples. Consequently, this study of 222 American and Spanish business executives explored sex differences in ethical judgments and intentions to act ethically. While no significant differences between males and females were found with respect to ethical judgments, females exhibited higher intentions to act more ethically than (...) males. This difference was true of both U.S. and Spanish executives. Further research is warranted to develop a clearer understanding of the linkage between ethical judgment and intention to act in an ethical manner. These findings have implications for global firms, particularly regarding codes of conduct and ethics training. (shrink)

While a number of studies have examined the impact of gender/sex on ethical decision-making, the findings of this body of research do not provide consistent answers. Furthermore, very few of these studies have incorporated cross-cultural samples. Consequently, this study of 222 American and Spanish business executives explored sex differences in ethical judgments and intentions to act ethically. While no significant differences between males and females were found with respect to ethical judgments, females exhibited higher intentions to act more ethically than (...) males. This difference was true of both U.S. and Spanish executives. Further research is warranted to develop a clearer understanding of the linkage between ethical judgment and intention to act in an ethical manner. These findings have implications for global firms, particularly regarding codes of conduct and ethics training. (shrink)

Increased globalisation has also seen increased scrutiny of corporate behaviour by the communities. Clearly managers are under increased pressure from stakeholders not only to outperform their competitors, but also are expected to do so in an ethical manner. In order to act ethically an individual is expected to have a well-developed moral imagination and moral reasoning. Literature on ethical reasoning research indicates a positive relationship between higher levels of moral reasoning and ethical behaviour. This paper presents the findings of a (...) study of the moral reasoning/moral development of managers working in large manufacturing enterprises situated in the state of Punjab in India. Kohlberg’s theory of Cognitive Moral Development forms the basis of the study. Moral Judgement Interview (MIG) developed by Weber, on the basis of Kohlberg’s theory was used for the study. Moral Reasoning Scores were calculated using Abbreviated Scoring Guide. More than half of the managers scored at post-conventional level of reasoning while assessing the moral dilemmas. The reasoning scores varied for the three dilemmas. (shrink)

Using a sample of multinational firms in Germany, we develop and empirically examine a model to test the effects of ethical climate and its antecedents on purchasing social responsibility (PSR). Our results show different effects of benevolence dimensions of ethical climate on PSR: employee-focused climate has no effect, but community-focused climate is a significant driver of PSR. The results also show that top management ethical norms and code of conduct implementation impact PSR directly as well as indirectly through ethical climate.

Turning around and changing an organization's culture does not happen by chance. The purpose of this paper is to offer insights into what is needed for an organization to successfully transform itself from a culture and experience that does not support individual ethical behavior. The recent bond trading scandal at Salomon Brothers will be used to demonstrate that a successful ethical turnaround does not just happen spontaneously. In particular, we argue that new leadership, altering policies, structure, behavior, and beliefs are (...) paramount to successfully change to an organizational culture that supports ethical behavior. Schein's five primary mechanisms available to leaders for embedding and reinforcing culture will be used to systematically analyze efforts to change Salomon Brothers' culture. (shrink)

This paper reexamines the perceived ethical issues and roles of employment managers based on their responses to a recent "Ethical Issues in Human Resource Management Survey." This research addresses five major questions including: 1) Whether employment managers' perceptions of the factors influencing unethical behavior vary according to gender, job position, and company size, 2) What are the perceived frequency and seriousness of misconduct among HR functional areas, 3) Whether groups of employment managers (i.e., males and females) vary significantly in their (...) perceptions of the seriousness of unethical events, 4) Whether gender and organizational level influence how often particular ethics roles are played, and 5) What particular roles are being played by employment managers as they respond to ethical dilemmas. The findings show that regardless of gender, position, or company size, employment managers' ethical behavior is influenced most by the behavior of senior managers and their immediate supervisors. In addition, the respondents believe that ethical misconduct occurs more often and is most serious in specialties such as employment, health, safety, and security, and compensation. Gender, industrial category, and company size have a significant impact on how serious unethical practices were perceived to be. Finally, seven of the eight ethics roles were matched with the ethical dilemmas submitted by the survey respondents. (shrink)

Companies offer ethics codes and training to increase employees' ethical conduct. These programs can also enhance individual work attitudes because ethical organizations are typically valued. Socially responsible companies are likely viewed as ethical organizations and should therefore prompt similar employee job responses. Using survey information collected from 313 business professionals, this exploratory study proposed that perceived corporate social responsibility would mediate the positive relationships between ethics codes/training and job satisfaction. Results indicated that corporate social responsibility fully or partially mediated the (...) positive associations between four ethics program variables and individual job satisfaction, suggesting that companies might better manage employees' ethical perceptions and work attitudes with multiple policies, an approach endorsed in the ethics literature. (shrink)

This paper argues Confucianism is a compelling managerial ethic for several reasons: 1) Confucianism is compatible with accepted managerial practices. 2) It requires individuals and organizations to make a positive contribution to society. 3) Recognizes hierarchy as an important organizational principle and demands managerial moral leadership. 4) The Confucian "golden Rule" and virtues provide a moral basis for the hierarchical and cooperative relationships critical to organizational success. The paper applies Confucianism to the H. B. Fuller in Honduras: Street Children and (...) Substance Abuse case. (shrink)

This study explores differences between executives in the U.S. and Spain in their perceptions of ethical issues in pricing, specifically comparing a domestic firm's actions affecting a foreign market versus a foreign firm's actions affecting the domestic market. Overall, Spanish and American executives provided somewhat different responses to the scenarios. Findings indicate that ethical judgments and intentions among Spanish executives did not vary based on which country was harmed. U.S. executives generally perceived that a morally questionable act directed at a (...) foreign country was more unethical than a morally questionable act directed at the United States. Possible explanations for these findings are suggested. (shrink)

The Trompenaars database (1993) updated with Hampden-Turner (1998) has been assembled to help managers structure their cross cultural experiences in order to develop their competence for doing business and managing across the world. The database comprises more than 50,000 cases from over 100 countries and is one of the world's richest sources of social constructs. Woolliams and Trompenaars (1998) review the analysis undertaken by the authors in the last five years to develop the methodological approach underpinning the work. Recently Trompenaars (...) with Hampden-Turner (Trompenaars and Woolliams, 1999) have extended the concepts into a new model on dilemma reconciliation of cultural differences. This paper reviews these latest updates in relation to dilemmas of cross-cultural business ethics. The paper asserts that knowledge in relation to business ethics is culturally specific; and that ethnocentrism is not easy to avoid. Too great an emphasis on rational-analytic conceptions of reality may mean that syntheses, emotion, and intuition, are not adequately developed. This presents implications for doing business and managing across cultures and for resolving ethical dilemmas. (shrink)

I challenge the appropriateness of the discourse of managerial control of employees in four ways. First, I question arguments which suggest that employees are always subject to organizational control. Second, I contrast workplace conditions which support employee self-determination and autonomy with conditions which permit control of employees. Third, I provide an ethical assessment of the normative use of control talk and fourth, I suggest an alternative discourse, a discourse of accountability which appropriately highlights the reciprocity necessary to build ethical organizations.

Corporate America is institutionalizing ethics through a variety of structures, systems, and processes. This study sought to identify managerial perceptions regarding the institutionalization of ethics in organizations. Eighty-six corporate level marketing and human resource managers of American multi-national corporations responded to a mail survey regarding the various implicit and explicit ways by which corporations institutionalize ethics. The results revealed that managers found ethics to be good for the bottom line of the organizations, they did not perceive the need for additional (...) formalization of ethics, and that they perceived implicit forms of institutionalizing ethics (e.g., leadership, corporate culture, top management support) to be more effective than the explicit forms of institutionalizing ethics (e.g., ethics ombudspeople, ethics committees, ethics newsletters). Implications of the survey and future research directions conclude the paper. (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)

Many ethical issues facing managers of multinational corporations are polycentric problems. That is, they involve a number of distinct centers -- each of which define rights and obligations of a multiplicity of affected parties -- and resolving matters around one center typically creates unpredictable repercussions around one or more of the other centers. Polycentricity is a normative phenomenon especially unsuited for adjudication, often requiring recourse to alternative processes of contract (or reciprocal adjustment) and managerial direction. This study explores how such (...) concerns about the limits of adjudication (and its various moral counterparts) apply to international decisionmaking connected to human rights obligations of multinational companies. The focus is on ethical problems such as controlling child labor in LDCs such as Bangladesh, India and Pakistan; setting wages in developing countries like Honduras; and conducting business transactions with rights-violating regimes, such as the governments of Nigeria and Myanmar. (shrink)

This article addresses the issue of moral compunction among a sample of senior managers set against the background of their routine organizational participation. In considering what factors influence their moral sensibilities these managers were interviewed using an approach designed to elicit their perceptions concerning both the ethical and commercially imperative dimensions of their working lives. The qualitative data resulting from this inquiry, while tentative, indicates the primacy of the normative appeal of shareholder value, conditioned by the exigencies of engagement in (...) corporate bureaucracies, including the maintenance of career and livelihood responsibilities. These conclusions indicate the magnitude of the obstacle that the normative business ethics project requires to overcome in order to fulfil its promise. (shrink)

This article addresses the issue of moral compunction among a sample of senior managers set against the background of their routine organizational participation. In considering what factors influence their moral sensibilities these managers were interviewed using an approach designed to elicit their perceptions concerning both the ethical and commercially imperative dimensions of their working lives. The qualitative data resulting from this inquiry, while tentative, indicates the primacy of the normative appeal of shareholder value, conditioned by the exigencies of engagement in (...) corporate bureaucracies, including the maintenance of career and livelihood responsibilities. These conclusions indicate the magnitude of the obstacle that the normative business ethics project requires to overcome in order to fulfil its promise. (shrink)

Using measures developed by Singhapakdi et al. (1996, Journal of Business ethics 15, 1131–1140) the perceived importance of ethics and social responsibility (PRESOR) is measured among MBA students in the United States, Malaysia and Ukraine revealing a stockholder view and two stakeholder views. Relativism and Idealism are also measured. The scores of MBA students are compared among each other and with those of the U.S. managers who were part of the original study. Managers'' scores tend to be significantly higher on (...) the Stockholder and Stakeholder II views, and much lower on Relativism than the MBA students. The Malaysian MBA students scored higher than did the American MBA students on Relativism, Idealism and the Stockholder view. The Ukrainian MBA students'' scores on the three PRESOR factors are generally similar to those of the American MBAs, while they had the highest scores of any group on the Relativism scale. Overall, the patterns of responses, as much as the significant differences on specific scales, support the notion that culture, however defined, affects both values and ethics. Several directions for future research are identified.''. (shrink)

The charged debate on the ‘C‐S‐R‐ization’ of organizational practices seems to have produced two opposing and seemingly incompatible explanations for why organizations should engage in corporate social responsibility (CSR): one, the normative rationale based on an appeal to ethics; and the other, the instrumental rationale, based on an appeal to business pragmatism. This paper argues that a missing link in this debate is the failure to recognize that the normative and instrumental approaches to corporate social responsibility are underpinned by substantively, (...) differentiating, relative logics of emotional rationalism on the one hand, and instrumental rationalism on the other. The paper makes a case that for CSR as a management practice to be practicable and actionable within a sustainable business agenda, it will need to be stripped of its current normative undertone and reconstructed in the instrumentally, pragmatic (utlish) language of business. Otherwise, the whole concept of CSR may continue to dwell in the realm of abstract theorizing without yielding many beneficial and practicable outcomes. The paper concludes that such an approach that situates CSR within a pragmatic business lingua, rather than a non‐business lingua, will help in legitimizing CSR as a ‘neutral’ management practice. (shrink)

Unethical behavior coordinated and concealed by teams continues to represent a troubling and all-too-frequent occurrence in organizations. Unfortunately, those who are most knowledgeable about this behavior and thereby best suited to report it to authorities—the complicit members themselves—are susceptible to unique pressures that often discourage them from blowing the whistle. Team members rely on their teammates for relational and other beneficial resources, making it more difficult to potentially break those ties by snitching. However, we argue that the pressure to stay (...) silent is alleviated for members who are ostracized by their team members. Drawing on social exchange theory, we theorize that ostracism decreases positive affect and increases negative affect, decreasing individuals’ communion striving motivation and, in turn, increasing the propensity to blow the whistle. In Study 1, we examined the link between ostracism and whistleblowing utilizing a field sample of diverse employees surveyed over time. In Study 2, we built upon Study 1 and conducted a lab study to examine affect and communion striving motivation as serial mediators. Results were generally supportive of our arguments, although we did not find support for the mediating effect of negative affect. (shrink)

Moral purism is a commonly held view on moral worthiness and how to identify it in concrete cases. Moral purists long for a moral world in which (business) people—at least sometimes—act morally worthy, but in concrete cases they systematically discount good deeds as grounded in self-interest. Moral purism evokes moral cynicism. Moral cynicism is a problem, both in society at large and the business world. Moral cynicism can be fought by refuting moral purism. This article takes issue with moral purism. (...) The common strategy to tackle moral purism is to reject the exclusion thesis which states that self-interest and the ‘pure’ moral motive (and thus moral worthiness) exclude each other. We develop a different strategy. We argue that moral purists are mistaken in the way they judge moral worthiness in concrete cases. They employ the wrongprocedureand the wrongcriteria.We develop a proper procedure and proper criteria. We build on Kant, who we argue is unfairly regarded as the champion of moral purism. In order to see how Kant can develop a consistent (non-purist) philosophy, the exclusion thesis must be embedded in Kant’s transcendental philosophy. Properly embedded, Kant turns out to be both anti-purist and anti-cynical. (shrink)

Drawing on social comparison theory, we investigate employees’ ethical and performance comparisons relative to a similar coworker and subsequent emotional and behavioral responses. We test our theoretically driven hypotheses across two studies. Study 1, a cross-sectional field study, reveals that employees who perceive they are more ethical than their coworkers experience negative emotions toward the comparison coworkers and those feelings are even stronger when the employees perceive they are lower performers than their coworkers. Results also reveal that negative emotions mediate (...) the indirect relationship between being more ethical than a coworker, but also being a lower performer than that coworker onto social undermining and ostracism. Study 2, a 2 × 2 between-subjects experimental design, provides further support for our moderated mediation model. Results reveal that participants experience negative emotions when they receive information that they are more ethical than a comparison participant. Negative emotions are amplified if the participant is told they were a lower performer than the comparison participant. Those participants indicate their desire to mistreat and ignore the comparison participant if given the opportunity. Thus, we find support for our hypotheses using a multi-method design. (shrink)