Integrative social contracts theory (ISCT) uses empirical methods to develop guidelines for international business ethics. This article criticizes ISCT in terms of the way people actually think about contracts and agreements around the globe. Differences in orientations to communications context, moral reasoning, and institutional and structural conditions make the identification of authentic norms, hypernorms, and relevant communities problematic. The difficulties of the empirical methods suggest recourse to more traditional theoretical approaches for the identification of hypernorms as well as a stronger (...) test for the compatibility of authentic norms with hypernorms. (shrink)

Applying social contract theory to business ethics is a relatively new idea, and perhaps nobody has pursued this direction better than Thomas Donaldson and Thomas W. Dunfee. Their "Integrative Social Contracts Theory" manages to combine culturally sensitive decision making capacities with trans-cultural norms by setting up a layered system of social contracts. Lurking behind their work is a concern with the problems of relativism. They hope to alleviate these problems by introducing three concepts important to the ISCT: "authentic norms," which (...) clarify culturally specific norms, "priority rules," which determine the rules of engagement when authentic norms clash, and "hypernorms," which measure the value of authentic norms against a thin set of universally upheld values. This paper traces the genealogy of these hypernorms and challenges their value for the ISCT. It argues that well-conceived priority rules can do everything hypernorms can, and can do so more simply. (shrink)

Contractualism conceives of firm-stakeholder relations as cooperative schemes for mutual benefit. In essence, contractualism holds that these schemes, as well as the normative principles that guide and constrain them, are ultimately ratified by the consent and endorsement of those subject to them. This paper explores the empirical validity of a contractualist perspective on firm-stakeholder relations. It first develops a typology of firm-stakeholder contracting problems. It subsequently confronts this typology with empirical data collected in an interview study of concrete stakeholder management (...) practices, involving in-depth research interviews with forty-four managers working in the Dutch financial services industry. The findings of this theory-building study suggest that there are limits to the applicability of the contract model in the context of stakeholder management, and that disregarding either the model or its limitations may lead to highly ineffective firm-stakeholder relations. (shrink)

First published in 1982. Routledge is an imprint of Taylor & Francis, an informa company.

'At last one of the most famous generalizing works in anthropology by the field's most stimulating and controversial contemporary figure has been translated, beautifully, and with the enlightening preface of the second French edition.

This essay reviews six different approaches to intellectual property. It and argues that none of these accounts provide an adequate justification of intellectual property laws and policies because (1) there are many different types of intellectual property, and (2) a variety of incommensurable values play a role in the justification of intellectual property. The best approach to intellectual property is to assess and balance competing moral values in light of the particular facts and circumstances.

Private property forms the bedrock of the business/society relationship in a market economy. In one way or another most societies limitwhat people can claim as property as well as theextent of claims they can make regarding it. In the international arena today intellectual property rights are a focal point of debate. Many developing countries do not recognize the monopoly claims of patents and copyrights asserted by business as legitimate. This paper reviews contemporary areas of dispute and then presents the tasks (...) facing the construction of a fair intellectual property rights regime. (shrink)

This paper uses two recentworks as a springboard for discussing theproper contours of intellectual propertyprotection. Professor Lessig devotes much ofThe Future of Ideas to demonstrating howthe expanding scope of intellectual propertyprotection threatens the Internet as aninnovation commons. Similarly, ProfessorLitman''s message in Digital Copyright isthat copyright law is both too complicated andtoo restrictive. Both authors contend that asa result of overprotecting individual rights,creativity is stifled and the vitality of theintellectual commons is in jeopardy. It isdifficult to evaluate the claims and policyprescriptions (...) of these books without someappreciation for the moral foundations ofintellectual property. The utility and labordesert theories remain the two most prominentin the Anglo-American tradition. Afterexploring those theories, we argue for a secureregime of protection based on the Lockeanvision that property rights are justly deservedas a reward for labor that creates value. However, as Locke''s famous proviso implies,even a natural property right is not absoluteand must be balanced by regard for the publicdomain. But a natural right cannot besacrificed simply to advance technologicalinnovation or to achieve marginal social andeconomic gains. While we agree with Lessig andLitman that recent legislation goes too far weconclude the essay by attempting to illustratethat some of their policy recommendations errin the opposite direction by underprotectingvalid property rights. (shrink)

Unethical business in India became a recognized phenomenon during the second World War. Academic/journalistic/legal concern with ethics has become visible only during the nineties. Corruption-of-the-poor and corruption-of-the-rich need to be distinguished - especially in the context of globalization. The danger of attributing unethical practices to system failure is recognized. It is also important to bring to bear on intellectual property rights the more fundamental principle of natural property rights. Consciousness ethics will be more crucial than just intellectual ethics.

Contractualism conceives of firm-stakeholder relations as cooperative schemes for mutual benefit. In essence, contractualism holds that these schemes, as well as the normative principles that guide and constrain them, are ultimately ratified by the consent and endorsement of those subject to them. This paper explores the empirical validity of a contractualist perspective on firm-stakeholder relations. It first develops a typology of firm-stakeholder contracting problems. It subsequently confronts this typology with empirical data collected in an interview study of concrete stakeholder management (...) practices, involving in-depth research interviews with forty-four managers working in the Dutch financial services industry. The findings of this theory-building study suggest that there are limits to the applicability of the contract model in the context of stakeholder management, and that disregarding either the model or its limitations may lead to highly ineffective firm-stakeholder relations. (shrink)

This paper examines the impact of the level of economic development, income inequality, and five cultural variables on the rate of software piracy at the country level. The study finds that software piracy is significantly correlated to GNP per capita, income inequality, and individualism. Implications for anti-piracy programs and suggestions for future research are developed.

The new economy is a technological revolution involving the information and communication technologies and which affects almost all aspects of the economy, business, and our personal lives. The problems it raises for businesses are not radically new, and even less so from an ethical viewpoint. However, they deserve particular attention, especially now, in the first years of the 21st century, when we are feeling the full impact of the changes brought about by this technological revolution. In this article, I will (...) try to draw a "map" of the main, positive and negative ethical challenges raised by the new economy, concentrating on its three basic features: (1) a knowledge- and information-based technological change, (2) which is taking place in real time on a planetary scale (globalization), and (3) which entails a new, flexible, network-based business organization. (shrink)

This article reviews Thomas Donaldson and Thomas Dunfee's new book Ties That Bind. The article argues that the book is a helpful elaboration of Donaldson and Dunfee's Integrative Social Contracts Approach, particularly with regard to their specification of hypernorms. The article also presents Donaldson and Dunfee's argument with regard to how the hypernorm of necessary social efficiency applies to bribery and raises questions about the extent to which human moral behavior might be hardwired.

Substantive scientific letter writing is a cost-effective mode of complementing observational and experimental research. The value of such philosophically uncommitted and unsponsored well-balanced scientific activity has been relegated. Critical letter writing entails the abilities to: maintain rational scepticism; refuse to conform in order to explain data; persist in keeping common sense centre-stage; exercise logic to evaluate the biological significance of mathematical figures, including statistics, and the ability to sustain the will to share insights regarding disease mechanisms on an ostensibly lower (...) research platform. During peer review, innovative letter writing may share the occasionally unfortunate fate of innovative research. Rejected scientific letters do not automatically lose copyright. Periodicals with high letter loads will see some valuable contributions wasted, but that is the price for maintaining autonomy in scientific publication. The scientific community is an integrated whole that must respect the rights of authors at all levels. Unauthorised forwarding of rejected letters sets the dangerous precedent of justifying unjust means. (shrink)

Extant social contracts, deriving from communities of individuals, constitute a significant source of ethical norms in business. When found consistent with general ethical theories through the application of a filtering test, these real social contracts generate prima facie duties of compliance on the part of those who expressly or impliedly consent to the terms of the social contract, and also on the part of those who take advantage of the instrumental value of the social contracts. Businesspeople typically participate in multiple (...) communities and, as a consequence, encounter conflicting ethical norms. Priority rules can be devised to resolve such conflicts. The framework of extant social contracts merges normative and theoretical research in business ethics and specifies a domain for empirical studies. (shrink)

Over the last twenty years the organization of business activity appears to have shifted from an emphasis on bureaucratic organizations toward an emphasis on market structures. Economic self-interest has acquired a new social legitimacy, and the force of traditional moral authorities has waned. In these circumstances the work of Emile Durkheim on the problematics of business ethics and the impact of a culture of self-interest on the stability of society, work that has hitherto been neglected by the business ethics community, (...) acquires a new relevance. In this paper we review Durkheim''s problematization of business ethics, establish its relevance for the contemporary world, and use it to develop an empirical research agenda for the contemporary sociology of business ethics. (shrink)

Software piracy has become recognized as a major problem for the software industry and for business. One research approach that has provided a theoretical framework for studying software piracy has been to place the illegal copying of software within the domain of ethical decision making assumes that a person must be able to recognize software piracy as a moral issue. A person who fails to recognize a moral issue will fail to employ moral decision making schemata. There is substantial evidence (...) that many individuals do not perceive software piracy to be an ethical problem. This paper applies social exchange theory, in particular equity theory, to predict the influence of situational factors on subjects' intentions to participate in software piracy. Consistent with the predictions of equity theory this study found that input and outcome situational variables significantly effect a person's intentions to commit software piracy. (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 paper discusses basic concepts and recentdevelopments in intellectual property ownership in theUnited States. Various philosophical arguments havepreviously been put forward to support the creation andmaintenance of intellectual property systems. However, in an age of information, access toinformation is a critical need and should beguaranteed for every citizen. Any right of controlover the information, adopted as an incentive toencourage creation and distribution of intellectualproperty, should be subservient to an overriding needto ensure access to the information. The principlesunderlying intellectual property regimes (...) in the UnitedStates recognize and embody this. In addition, thephilosophical/ethical dimensions of this debate couldalso be structured to support this attitude as well. Intellectual property is fast becoming digitalproperty. New technologies allow owners to extendtheir control of both legitimate uses and misuses ofthe intellectual property. Recent trends demonstratethat the access principle has not always beenparamount in judicial or legislative applications. Thetrend rather is to allow a proprietarianism factor todominate the analysis. Finally, several principles areforwarded which would assist adjudicators and policymakers in reaffirming the basic purpose of theintellectual property law, which is to benefit thepublic at large. (shrink)

This paper briefly examines the topic of business ethics and attempts to suggest a code of ethics for multinational firms. While most companies have basic policies on employee integrity, confidentiality and sexual harassment, relatively few have established policies regarding bribery, exploitive child labor, human rights violations and other issues they may encounter in the global market place (Drake, 1998). Until recently, very few companies had truly global operations. Consequently little attention was paid to the issue of ethical guidelines in a (...) global context. Recent changes in international markets have led to an explosion of corporations with global operations, and the need for a global code of ethics has grown commensurately. In this paper we explore the issue of global business ethics and attempt to provide a framework for future discussion. We also examine some of the unique difficulties surrounding the development of any set of global business standards. Key among these difficulties is the issue of competing ethical values in home and host countries. (shrink)

This paper investigates the ethical challenges facing managers in Western Australia. It identifies the ethical issues that managers confront in international business. Managers in this research have identified a number of significant ethical issues when discussing the ethical incidents that occurred in their international dealings. The research shows a degree of congruence between managers'' experiences and establishes the main ethical dilemmas encountered, how they felt and actions taken when confronted with an ethical dilemma.

We sent a questionnaire survey to a random sample of 125 correspondents to the BMJ who had previously sent a letter which had been rejected. The objective was to evaluate the policy of sending on some unpublished letters to the authors of the articles to which they referred. There were 94 replies, a response rate of 75%. The key finding was that although most respondents agreed with the policy, a third thought it unconstructive. A quarter of the respondents said that (...) the BMJ policy would discourage them from sending a letter to the journal for publication. This survey has led to a change of policy at the BMJ. Letters which are not published are not now sent on to the authors of the original articles. (shrink)