The paper investigates the ethics of information transparency (henceforth transparency). It argues that transparency is not an ethical principle in itself but a pro-ethical condition for enabling or impairing other ethical practices or principles. A new definition of transparency is offered in order to take into account the dynamics of information production and the differences between data and information. It is then argued that the proposed definition provides a better understanding of what sort of information should be disclosed and what (...) sort of information should be used in order to implement and make effective the ethical practices and principles to which an organisation is committed. The concepts of “heterogeneous organisation” and “autonomous computational artefact” are further defined in order to clarify the ethical implications of the technology used in implementing information transparency. It is argued that explicit ethical designs, which describe how ethical principles are embedded into the practice of software design, would represent valuable information that could be disclosed by organisations in order to support their ethical standing. (shrink)

This study examines the relation between firms' corporate philanthropic giving and their performance in three other social domains - employee relations, environmental issues, and product safety. Based on a sample of 384 U.S. companies and using data pooled from 1998 through 2000, we find that worse performers in the other social areas are both more likely to make charitable contributions and that the extent of their giving is larger than for better performers. Analyses of each separate area of social performance, (...) however, indicate that the relation between giving and negative social performance only holds for the environmental issues and product safety areas. We find no significant association between corporate philanthropy and employee relations concerns. In general, these findings suggest that corporate philanthropy may be more a tool of legitimization than a measure of corporate social responsibility. (shrink)

This article analyzes the issue of organizational transparency through the lens of Thomas Aquinas’ ethics. It provides moral justification for current claims about corporate transparency and sheds light on the ethical values and virtues affecting information disclosure decisions. Transparency is conceptualized as an informational mechanism necessary for performing the virtues of truthfulness, justice, and prudence. This article extends the organizational transparency and corporate social responsibility literatures by providing an alternative moral justification grounded in virtue-based theory, which extends our understanding of (...) the information disclosure decisions made by management. (shrink)

The term “corporate transparency” is frequently used in scholarly discussions of business ethics and corporate social responsibility (CSR); however, it remains a volatile and imprecise term, often defined incompletely as “information disclosure” accomplished through standardized reporting. Based on the results of empirical studies of organizational behaviors, this paper identifies a new set of managerial practices based on the use of information and communication technologies (ICT) and particularly Internet-based tools. These practices are resulting in what can be termed “dynamic transparency.” ICT (...) allows for an informational environment characterized by two-way exchange between corporations and their stakeholders, which fosters a more collaborative marketplace. It is proposed that such dynamic information sharing, conducted by means of ICT, drives organizations to display greater openness and accountability, and more transparent operations, which benefit both the corporations and their constituents. One of the most important outcomes that will accrue to consumers and other individuals is the “right to know,” especially about corporate strategies and activities that might directly affect their quality of life. This paper demonstrates that dynamic transparency is more desirable and more effective than the more common “static transparency” where firms’ information disclosure is one-way, usually in response to government regulation. We present three ethical arguments to justify the implementation by business firms of dynamic transparency and demonstrate that their doing so is related to CSR and to augment and complement stakeholder engagement and dialogue. The paper concludes with a summary of the possible limits to and the problems involved in the implementation of dynamic transparency for corporations, and suggests some strategies to counter them. (shrink)

This article analyzes the issue of organizational transparency through the lens of Thomas Aquinas’ ethics. It provides moral justification for current claims about corporate transparency and sheds light on the ethical values and virtues affecting information disclosure decisions. Transparency is conceptualized as an informational mechanism necessary for performing the virtues of truthfulness, justice, and prudence. This article extends the organizational transparency and corporate social responsibility literatures by providing an alternative moral justification grounded in virtue-based theory, which extends our understanding of (...) the information disclosure decisions made by management. (shrink)

Information theorists often construe new Information and Communication Technologies (ICTs) as leveling mechanisms, regulating power relations at a distance by arming stakeholders with information and enhanced agency. Management theorists have claimed that transparency cultivates stakeholder trust, distinguishes a business from its competition, and attracts new clients, investors, and employees, making it key to future growth and prosperity. Synthesizing these claims, we encounter an increasingly common view: If corporations voluntarily adopted new ICTs in order to foster transparency, trust, and growth, while (...) embracing the redistributions of power they bring about, both corporations and stakeholders would benefit. The common view is short-sighted, however. In order to realize mutual benefit, transparency can not be conceived merely as efficient or economical. The implementation and use of new ICTs will be morally unsatisfactory unless they stably protect stakeholders. Moreover, without such protections, transparency is unlikely to produce lasting trust and growth. More specifically, corporate disclosures ought to be guided by a theory of stakeholder rights to know about threats or risks to stakeholders’ basic interests. Such rights are necessary moral protections for stakeholders in any business environment. Respect for transparency rights is not simply value added to a corporation’s line of goods and services, but a condition of a corporation’s justifiable claim to create value rather than harm, wrong, or injustice in its dealings. (shrink)

Motivated by contemporary debates concerning whether directors inappropriately deploy corporate funds for corporate political donations and the limited research into managerial influence on corporate political donations, we examine the impact of director influences from a network perspective. Using a sample of large listed Australian corporations and their political party donation activity during 2000–2007, we find that both the professional and non-professional networks of directors influence corporate political donations. We observe these influences in relation to donations at the federal and state (...) levels, and with respect to the choice of recipient political parties. (shrink)

Although corporate decision makers may justify charitable contributions on strategic grounds, extremely large corporate philanthropic contributions may beperceived by shareholders as unnecessary. If stockholders attempt to limit corporate philanthropy, then governance mechanisms should put a cap on giving amounts. Using a matched-paired sample to control for industry and company size, theauthors compared big givers and small givers. The authors find that blockholders and institutional owners limit corporate philanthropy. This suggests that high levels of corporate philanthropy may be perceived as excessive (...) by influentialstockholders, and some governance mechanisms act to curtail it. (shrink)

This study examines the relation between firms’ corporate philanthropic giving and their performance in three other social domains – employee relations, environmental issues, and product safety. Based on a sample of 384 U.S. companies and using data pooled from 1998 through 2000, we find that worse performers in the other social areas are both more likely to make charitable contributions and that the extent of their giving is larger than for better performers. Analyses of each separate area of social performance, (...) however, indicate that the relation between giving and negative social performance (cited concerns) only holds for the environmental issues and product safety areas. We find no significant association between corporate philanthropy and employee relations concerns. In general, these findings suggest that corporate philanthropy may be more a tool of legitimization than a measure of corporate social responsibility. (shrink)

This paper briefly reviews the theories that seek to explain the phenomenon of corporate charitable donations and then provides a review of the empirical issues that have arisen in previous studies in this area. The findings of an analysis of charitable donations data from the entire U.K. FTSE index for the years 1985–2000 are then reported. These findings include the observation of a time-related increase in charitable donations, which is compared with an earlier study to give a 24 year history (...) of charitable donations in the U.K. The findings note little responsiveness of the monetary value of charitable donations to the economic performance of firms. An international comparison over time against U.S. trends is also reported and shows how U.S. corporations have traditionally been more generous than U.K. firms, but that the trend in the U.S. is downwards. Membership of a U.K.-based "tithing" club (the PerCent Club) is shown to be associated with higher profit performance against non-members. Members' charitable contributions against profit are shown to be higher than the FTSE mean although short of the 0.5% target figure in "cash" terms. The paper concludes with a brief discussion of these findings in relation to the theoretical positions advanced for corporate philanthropy. (shrink)

Tuition and government funding does not adequately support the mission of many colleges and universities, and increasingly, corporations are responding to this need by making payments to institutions of higher learning with significant contracted expectations, including influence of the curriculum and content of college courses. One large, public banking corporation, BB&T, has funded grants to more than 60 colleges and universities in the United States to address what the corporation refers to as the “moral foundations of capitalism.” These grants vary (...) in size but average $1.1 million and typically require design of a new course that includes discussion of Atlas Shrugged, one of the novels of the author Ayn Rand. With many of the participating universities, the agreement with BB&T also stipulates the creation of chaired faculty positions, library reading rooms, designated capitalism centers, speaker series, scholarships, and the distribution of free student copies of Atlas Shrugged. Several ethics concerns about these grants, including their threat to academic freedom, are discussed in this article, as well as the need for focused guidance for university administrators regarding the temptation of large donations with attached questionable expectations. (shrink)

Transparency is a quality of corporate social responsibility communication that enhances the relationship between the investors and the company. The objective of this paper is to analyze if the transparency of the sustainability reports is affected by the relationship of companies in different industries with their stakeholders. If this were the case, it would indicate that the pressure of significant stakeholders determines the required level of transparency of the reports. We find that the pressure of some groups of stakeholders improves (...) the quality of transparency of the reports. We extend previous research by studying the effect of stakeholder group pressure on transparency when reporting sustainability. Our results show that transparency is affected by ownership, along with size and global region. (shrink)

To develop this study of strategic philanthropy in the United Kingdom, voluntary charitable donations policy disclosures were captured from the annual reports of two samples of U.K. companies: one of the entire Financial Times Stock Exchange 100 at year-end 2002 and another of 14 selected companies over a 15-year period. Post and Waddock's descriptions of “philanthropy strategy” and “strategic philanthropy” were employed to establish the extent to which these concepts were conveyed to readers of annual reports based on the belief (...) that high disclosure serves both agency accountability to shareholders and the information needs of soliciting charities. Conclusions drawn include that although there is a relatively high level of policy disclosure, the detail of narrative in, and consistency (over time) of, these disclosures is very patchy, and only a minority of companies show evidence of adopting a fully strategic approach to philanthropy. (shrink)

This paper posits that differences in corporate governance structure partly result from differences in institutional arrangements linked to business systems. We developed a new international triad of business systems: the Anglo-American, the Communitarian and the Emerging system, building on the frameworks of Choi et al. (British Academy of Management (Kynoch Birmingham) 1996, Management International Review 39, 257–279, 1999). A common factor determining the success of a corporate governance structure is the extent to which it is transparent to market forces. Such (...) transparency is more than pure financial transparency; as it can also be based on factors such as governmental, banking and other types of institutional transparency mechanism. There may also be a choice for firms to adopt voluntary corporate disclosure in situations where mandatory disclosure is not established. The Asian financial crisis of 1997–1999 and the more recent corporate governance scandals such as Enron, Andersen and Worldcom in the United States and Ahold and Parmalat in Europe show that corporate governance and business ethics issues exist throughout the world. As an illustration we focus on Asia’s emerging1 markets, as, both in view of the pressure of globalization and taking into account the institutional arrangements peculiar to the emerging business system, these issues are important there. Particularly for those who have to find an accommodation between the corporate governance structures and disclosure standards of the Emerging system and those of the Anglo-American and Communitarian systems. (shrink)

The increasing demands placed on private welfare services and calls for business to fulfil its social responsibilities have heightened interest in corporate charitable donations in the United Kingdom. Adjustments to the corporation tax system have been made to encourage companies to give more. The article outlines the legal and fiscal background to company giving, examines its magnitude and reports on a survey of company practice.

Virtue-based research in business ethics has increased over the last two decades, but most of the research has focused on the actions of an individual person. In this article, we examine the associations among team-level virtues using data from two studies. Specifically, we investigate whether transparency (usually thought to be an organizational-or collective-level construct), behavioral integrity (usually thought to be an individuallevel construct), and trust (usually thought to be an individual-level construct) can be conceptualized and operate at the team level (...) of analysis and, if so, what their relationships are to team performance. Using Partial Least Squares (PLS) analysis, we found in both studies that team transparency was positively related to team behavioral integrity, which in turn was positively related to team trust. We also found evidence of a positive relationship between team trust and team performance. Implications of these findings for future teams and ethics research are discussed. (shrink)