Multinational enterprises (MNEs) have long had a reputation of not doing enough for their host communities in developing countries. This study critically examines the role of MNEs in community development initiatives in developing countries, using the Nigeria oil industry and the South African mining industry as case study. Specifically, the study assessed the usefulness of MNE-supported community development projects as a means of demonstrating corporate social responsibility. The findings suggest that expectations for community development projects are greater in developing countries. (...) This study introduced new information on MNEs'local development programs that were drawn from interviews with MNEs'managers, government officials, and local communities. (shrink)

In the context of a crisis of confidence in executive leadership in corporate America, this paper examines the role of integrity as a mediator within strategic leadership and its impact on credibility in reputational capital. A tension can occur within strategic leadership between the elements of strategic planning and leadership vision. This tension can destroy the credibility of reputational capital unless strategic leadership is managed effectively. Integrity can be used as the glue providing for credible leadership vision amid a strategic (...) perspective oriented to competitive pressures, thereby enabling strategic leadership to contribute to a sustainable competitive advantage. A strategic leadership audit is presented as a tool by which strategic leadership and reputational capital can be managed. (shrink)

This article integrates theory and concepts from the business and society, business ethics, and labor relations literatures to offer a conceptualization of labor union social responsibility that includes activities geared toward three primary objectives: economic equity, workplace democracy, and social justice. Economic, workplace, and social labor union stakeholders are identified, likely issues are highlighted, and the implications of labor union social responsibility for labor union strategy are discussed. It is noted that, given the breadth of labor unions in a global (...) work environment, labor union social responsibility also has implications for NGOs, corporations, and how corporate social responsibility is viewed going forward. This article concludes by noting that the nexus of labor relations and corporate social responsibility warrants more attention in management and labor relations literatures. (shrink)

The shift in corporate strategy, from vertical integration to strategic alliances, has developed hand in hand with the evolution of organizational structure, from the vertically integrated firm to the network organization. The result has been the elimination of boundaries, more flexible organizations, and a greater interaction among individuals and organizations. On the negative side, the specialization of firms on single areas of competence has resulted in the disaggregation of the value chain and in the disaggregation of ethical and legal responsibility. (...) To illustrate this point, the paper considers some cases, such as the case of the "beer girls" of Southeast Asia, who are used unethically by distributors to sell beer and liquor. To deal with the problem of the disaggregation of ethical responsibility, managers can use organizational culture and ethical values to control the performance of employees and of other organizations. Contemporary developments in business ethics also offer tools for dealing with the problem. For example, "global corporate citizenship," integrated social contracting theory, and stakeholder learning dialogues provide ways of integrating the interests of all stakeholders. The task is now to use these new approaches to create a governance process that incorporates the voices of all stakeholders, especially the voices of those stakeholders that have legitimate and urgent moral claims, but lack the power to establish those claims. (shrink)

The study of Social Issues in Management (SIM) has exhausted its primary analytic framework based on corporate social performance (social science), business ethics (philosophy), and stakeholder theory (organizational science), and needs to move to a new paradigmatic level based on the natural sciences. Doing so would expand research horizons to include cosmological perspectives (astrophysics), evolutionary theory (biology, genetics, ecology), and non-sectarian spirituality concepts (theological naturalism, cognitive neuroscience). Absent this shift, SIM studies risk increasing irrelevance for scholars and business practitioners.

Managers in Peru, South Africa, and the United States were classified into four groups along Singhapakdi et al. (J Bus Ethics 15:1131–1140, 1996) Perceived Role of Ethics and Social Responsibility (PRESOR) scale. In Peru and the United States, individuals in the ethics and social responsibility first category reported greater satisfaction with organizational performance than did those in the profits first category. Moral capitalists—individuals who report high emphases on both social responsibility and profits—reported the highest satisfaction with performance in the United (...) States. Managers in the United States are more likely than their counterparts in Peru and South Africa to reject the mutual exclusivity of prioritizing social responsibility and profits simultaneously. Directions for future research are outlined. (shrink)

The authors propose the integrity capacity construct with its four dimensions (process, judgment, development and system dimensions) as a framework for analyzing and resolving behavioral, moral and legal complexity in business ethics' issues at the individual and collective levels. They claim that moral progress in business comes about through the increase in stakeholders who regularly handle moral complexity by demonstrating process, judgment, developmental and system integrity capacity domestically and globally.

The Perceived Role of Ethics and Social Responsibility (PRESOR) instrument was developed in the United States by Singhapakdi et al. (1996b) as a reliable and valid scale to measure the perceived role of ethics and social responsibility in achieving organizational effectiveness. This study was carried out to confirm the factorial structure of the instrument and to assess its reliability and validity for use in Hong Kong, the finance and service heart of the Asia-Pacific region and a culture with clear differences (...) in ethical attitudes and perceptions from those of the United States. Constructive replication of the exploratory factor analytic procedure of the original study with a representative sample of Hong Kong managers failed to support the hypothesized scale structure but instead suggested a different, two-factor, structure. Confirmatory factor analysis defined the alternative model which comprised two interpretable, negatively intercorrelated factorial scales, "Importance of ethics and social responsibility" and "Subordination of ethics and social responsibility in the achievement of organizational effectiveness". The model showed a high level of goodness-of-fit for the population and the two subscales, comprised of five items and four items respectively, were shown to have acceptable internal consistency reliability. Correlational and multiple regression analysis showed highly significant levels of association with the ethical ideology dimensions of the EPQ (Forsyth, 1980), used in the validation of the original scale, and with two ethical philosophy subscales derived from the ATBEQ (Preble and Reichel, 1988). The instrument is short, easily administered, is psychometrically sound and has considerable potential in the study of the perceived role of ethics and social responsibility in the achievement of organizational effectiveness. (shrink)

Extant business ethics literature available for application to international business demonstrates some variety but no comprehensive principles. While the domains of both international business and business ethics are expanding, they are also becoming increasingly divergent. At the same time, the primacy accorded to the multinational enterprise in both fields ignores the socio-cultural and political embeddedness of economic activities, and multiple agencies in international business (individuals, firms, nations, etc.). Some international business theorists have offered the view that international exchange should be (...) the central building block for theories on international business. In this paper, it is argued that international exchange could be the fundamental unit of analysis for international business ethics as well. The potentially unifying features of exchange norms and ethical principles leads the author to develop some core exchange ethics principles that are tested on three recent international business practices. (shrink)

This research examines the relationships between education in business ethics, Reynolds’s (J Appl Psychol 93:1027–1041, 2008) “moral attentiveness” construct, or the extent to which individuals chronically perceive and reflect on morality and moral elements in their experiences, and Singhapakdi et al.’s (J Bus Ethics 15:1131–1140, 1996) measure of perceptions of the role of ethics and social responsibility (PRESOR). Education in business ethics was found to be positively associated with the two identified factors of moral attentiveness, “reflective” and “perceptual” moral attentiveness, (...) and with the PRESOR “stakeholder view” factor. Also, reflective moral attentiveness was found to act as a mediator in the relationship between education in business ethics and the PRESOR stakeholder view factor. Evidence of gender and social desirability bias effects was also found. The implications of these relationships and social cognitive theory for improved understanding of the mechanisms by which a variety of variables have their effects on PRESOR in business are discussed. (shrink)

While ethical and moral issues have been widely considered in the general areas of marketing and sales, similar attention has not been given to the impact of strategic account management (SAM) approaches to handling the relationships between suppliers and very␣large customers. SAM approaches have been widely␣adopted by suppliers as a mechanism for managing␣relationships and partnerships with dominant customers␣– characterized by high levels of buyer–seller inter-dependence and forms of collaborative partnership. Observation suggests that the perceived moral intensity of␣these relationships is commonly (...) low, notwithstanding the underlying principles of benefiting the few (large, strategic customers) at the expense of the many (smaller customers and other stakeholders), and the magnitude of the consequences of concessions made to large customers, even though some such consequences may be unintended. Dilemmas exist also for executives implementing strategic account relationships regarding such issues as information sharing, trust, and hidden incentives for unethical behaviour. We propose the need for greater transparency and senior management questioning of the ethical and moral issues implicit in strategic account management. (shrink)

The so-called "Prisoner''s Dilemma" is often referred to in business ethics, but probably not well understood. This article has three parts: (1) I claim that models derived from game theory are significant in the field for discussions of prudential ethics and the practical decisions managers make; (2) I discuss using them as a practical pedagogical exercise and some of the lessons generated; (3) more speculatively, I suggest that they are useful in discussions of corporate personhood.

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)

Domestic violence is a growing societal concern that often spills over into the workplace. However, employers are not recognizing the spillover of domestic violence as a workplace issue. This is problematic considering the serious financial, legal, and ethical consequences for organizations. We analyzed six cases involving domestic violence that were litigated under specific legal bases: Violence Against Women Act, discrimination laws including Title VII, Family and Medical Leave Act, Americans with Disabilities Act, Social Security Disability, Occupational Safety and Health Act, (...) and associated state and municipal ordinances. We chose cases that illustrate the problems of companies meeting the legal standards but not necessarily reaching ethical expectations. Our approach is congruent with the perspective that both legal and ethical analyses should be used in organizational decision making. We suggest for future research the analysis of additional litigated cases, other ethical perspectives, and additional sources of data. In addition, we suggest that companies who are striving for corporate social responsibility should integrate the ethical treatment of domestic violence victims. (shrink)

Social responsibility is addressed to corporations, but can also be applied to other powerful organizations. This study tests the impact of labor union social responsibility on key measures of labor union attachment. After developing a scale of labor union social responsibility, craft union apprentice workers were surveyed and their responses analyzed with structural equation modeling. Labor union social responsibility was directly and positively related to union commitment and job satisfaction. Union commitment and job satisfaction fully mediated the negative relationship between (...) labor union social responsibility and propensity to withdraw from the union, and the positive relationship between labor union social responsibility and union participation. The results suggest that labor union social responsibility can enhance union attachment and inform union strategy. (shrink)