The main concern of this paper is the moral responsibility of the firm, as well as of the individuals in a firm, to uphold environmental protection. Much of the business ethics literature defines corporate social responsibility in terms of stakeholder relationships, and the emphasis is frequently on collective as opposed to individual responsibility. This paper has three objectives. The first is to clarify the nature of moral responsibility, and the distinction between legal and moral responsibility. The second objective is to (...) steer academicians and others towards a new vision of the firm. We argue that a firm is not just a singular legal entity but also a collectivity of morally responsible individuals who are liable for immoral acts of the firm. By expanding the boundary of responsibility of action from an intangible collectivity – the firm, to all the individuals within it, this vision moves beyond the typical emphasis on the firm as being the only moral agent responsible for corporate actions. The paper emphasizes not simply the responsibility of top echelon managers, but of every employee across ranks. The third goal of this paper is to examine the circumstances where application of moral responsibility becomes crucial, for instance, in the context of protection of the natural environment by a firm and its employees. (shrink)

In this paper the exclusive focus on large firms in the field of business ethics is challenged. Some of the idiosyncrasies of small firms are explained, and links are made between these and potential ethical issues. A review of the existing literature on ethics in small firms demonstrates the lack of appropriate research, so that to date we can draw no firm conclusions in relation to ethics in the small firm. Recommendations are made as to the way forward for small (...) firm business ethics research. Questions for investigation are suggested using micro, meso and macro perspectives. Much exploratory work needs to be done to lay the groundwork for this important area of social and commercial research in the future. (shrink)

To date, the study of business ethics has been largely the study of the ethics of large companies. This paper is concerned with owner/managers of small firms and the link between the personal ethics of the owner/manager and his or her attitude to ethical problems in business. By using active membership of an organisation with an overt ethical dimension as a surrogate for personal ethics the research provides some, though not unequivocal, support for the models of Trevino and others that (...) suggest a link between personal ethics and business ethics. (shrink)

This paper reviews and develops the ethical analysis of human resource management (HRM). Initially, the ethical perspective of HRM is differentiated from the "mainstrea" and critical perspectives of HRM. To date, the ethical analysis of HRM has taken one of two forms: the application Kantian and utilitarian ethical theories to the gestalt of HRM, and the application of theories of justice and fairness to specific HRM practices. This paper is concerned with the former, the ethical analysis of HRM in its (...) entirety. It shows that numerous theoretical shortcomings exist, least of which is the disregard of stakeholder theory. These deficiencies are explored and, as such, the analysis is advanced. It is argued that such ethical analysis is outside the scope of the modern corporation. A third way in which ethics may be applied to HRM is suggested. Ethical concerns are used as a basis to develop minimum standards against which HRM, in its various guises and practice, may be evaluated. Yet, even when judged by these standards, HRM is seriously lacking. This begs the question, not of whether HRM is ethical, but of whether HRM can be ethical. (shrink)

The Corporate Social Responsibility (CSR) field presents not only a landscape of theories but also a proliferation of approaches, which are controversial, complex and unclear. This article tries to clarify the situation, mapping the territory by classifying the main CSR theories and related approaches in four groups: (1) instrumental theories, in which the corporation is seen as only an instrument for wealth creation, and its social activities are only a means to achieve economic results; (2) political theories, which concern themselves (...) with the power of corporations in society and a responsible use of this power in the political arena; (3) integrative theories, in which the corporation is focused on the satisfaction of social demands; and (4) ethical theories, based on ethical responsibilities of corporations to society. In practice, each CSR theory presents four dimensions related to profits, political performance, social demands and ethical values. The findings suggest the necessity to develop a new theory on the business and society relationship, which should integrate these four dimensions. (shrink)

Whilst there is a growing volume of literature exploring the ethical implications of organisational change for HRM and the ethical aspects of certain HRM activities, there have been few published U.K. studies of how HR managers actually behave when faced with ethical dilemmas in their work. This paper seeks to enhance the foundations of such knowledge through an examination of the influence of organisational values on the ethical behaviour of Human Resource Managers within a sample of charities in the U.K. (...) and the Republic of Ireland. A qualitative research design is adopted utilising semi-structured interviews. Findings highlight ethical inconsistency in people management in the charity sector arising from the clear application of strong and explicit organisational values to external client groups but their limited influence on people management strategies and practices within the organisation. Many of the ethical issues faced by HRM professionals in both countries arise from this inconsistency. In their handling of ethical dilemmas, the HRM professionals exhibit a combination of a care ethic and a concern for justice but it is also clear that in situations of management intransigence, a desire to be conscience driven often gives way to a contingent approach. Whilst respondents considered it inappropriate for the HRM function to be the conscience of the organisation, it is seen to have a key role in providing management with advice on ethical action. However, the ability of HRM to influence ethical behaviour is highly dependent on the status of the function within the organisation. (shrink)

One explanation that may be given for why nonprofit organizations pay lower wages than do other organizations is that nonprofits are more pleasant places to work. Indeed, some authors have proposed that nonprofit organizations should make an effort to promote a working environment that reflects the beliefs of the organization. This paper uses several proxies for whether an organization is a pleasant place in which to work, and tests for whether nonprofits are more likely to offer such pleasant working conditions. (...) Analysis shows that nonprofits are not more likely to offer these conditions in many instances. (shrink)

In this paper we review recent UK literature on HRM and ethics and suggest that implicit in many accounts is a perception of a ‘moral hole’ appearing within the employee relations landscape which is based on external, reflective observations of HRM policies and practices. We argue that the investigation of HRM and ethics could be broadened by locating HRM and ethics research more explicitly within the social and cultural realities of organizations and their employees. Finally, we outline and illustrate what (...) a social constructivist approach might add to research in this field and how it might provide insights that help bridge the gap between theory and practice. (shrink)

The study examines the relationship between the strength of an organizationÕs ethical climate and ethical problems involving human resource management. Data were collected through a survey of 1078 human resource managers. The results indicate a statistically significant negative relationship between the strength of an organization'ss ethical climate and the seriousness of ethical violations and a statistically significant positive relationship between an organization'ss ethical climate and success in responding to ethical issues. Thus, interventions that strengthen an organization'ss ethical climate may help (...) manage ethical behavior within organizations. (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)

The European Corporate Sustainability Framework (ECSF) is, among other concepts, based on a phase-wise development approach as described by Clare Graves' Levels of Existence Theory. As much as corporate sustainability has a sequence of adequate interpretations, aligned with each development level, also the notion of business excellence can be defined at multiple levels, as this paper demonstrates. Furthermore, the authors analyze the current EFQM Excellence Model for particular biases towards various development levels and suggest a new and innovative two-step approach (...) to assessing organizational performance with respect to organizational excellence (OE) and corporate sustainability. According to the organization's ambition, the assessment is either limited to a shareholder approach, mainly focusing at optimal usage of resources, or it also includes an additional assessment format based on the stakeholder approach, with specific reference to the organization's performance on the financial, social and ecological bottom line. This paper demonstrates the need and feasibility of an EFQM-Based assessment tool with a combined focus on corporate sustainability and OE. (shrink)

The European Corporate Sustainability Framework (ECSF) is, among other concepts, based on a phase-wise development approach as described by Clare Graves' Levels of Existence Theory. As much as corporate sustainability has a sequence of adequate interpretations, aligned with each development level, also the notion of business excellence can be defined at multiple levels, as this paper demonstrates. Furthermore, the authors analyze the current EFQM Excellence Model for particular biases towards various development levels and suggest a new and innovative two-step approach (...) to assessing organizational performance with respect to organizational excellence (OE) and corporate sustainability. According to the organization's ambition, the assessment is either limited to a shareholder approach, mainly focusing at optimal usage of resources, or it also includes an additional assessment format based on the stakeholder approach, with specific reference to the organization's performance on the financial, social and ecological bottom line. This paper demonstrates the need and feasibility of an EFQM-Based assessment tool with a combined focus on corporate sustainability and OE. (shrink)

. Human capabilities theory has emerged as an important framework for measuring whether various social systems promote human flourishing. The premise of this theory is that human beings share some nearly universal capabilities; what makes a human life fulfilling is the opportunity to exercise these capabilities. This essay proposes that the use of human capabilities theory can be expanded to assess whether a company has organized the work environment in such a way that allows workers to develop a variety of (...) human capabilities. This mode of analysis is put forward as a complement to the work of Mihaly Csikszentmihalyi, who has suggested that the key to promoting human well-being in the workplace is the maximization of flow experiences. (shrink)

The study examines the relationship between the strength of an organizationÕs ethical climate and ethical problems involving human resource management. Data were collected through a survey of 1078 human resource managers. The results indicate a statistically significant negative relationship between the strength of an organization'ss ethical climate and the seriousness of ethical violations and a statistically significant positive relationship between an organization'ss ethical climate and success in responding to ethical issues. Thus, interventions that strengthen an organization'ss ethical climate may help (...) manage ethical behavior within organizations. (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)

A recent literature applies economic reasoning to restrict corporate social responsibility (CSR) to profitable opportunities. The underlying theory of the firmassumes widespread public company ownership and a net positive contribution to social welfare in relatively unfettered markets. This modern economic approach posits strict fiduciary responsibility of agents. Management, in this fiduciary role, should have no CSR discretion beyond the requirements of minimalist laws and customary ethics. Any profitable CSR option can be undertaken. Any unprofitable CSR action is defined as discretionary (...) altruism prohibited to fiduciary agents and recommended against for shareowners acting through the corporate form. The modern economic position shifts all unprofitable social issues into the sphere of public policy—which is then influenced by business on the basis of economic self-interest. There are two points of relaxation in this position. First, a firm may need to practice prudential altruism to forestall more costly action by governments and stakeholders. Second, management must consider productivity effects of employee sentiments about social issues and stakeholders. (shrink)

This book contains a cohesive overview of the most important theories and insights in the field of business ethics. At the same time, it further tailors these theories to the situation in which organizations function, presenting criteria that can be used to measure, assess, improve and report on corporate integrity.

In these eloquent essays, articles and lectures, Rorty gives a stimulating summary of his central philosophical beliefs and how they relate to his political ...

. The aim of this paper is to put forward an ethical framework for the conceptualization and development of ethics audits, here understood as a catalyst for company dialogue and in general, for management of ethics in the company. Ethics auditing is understood as the opportunity and agreement to devise a system to inform on ethical corporate behavior. This system essentially aims to increase the transparency and credibility of the companys commitment to ethics. At the same time, the process of (...) elaborating this system allows us to introduce the moral dimension into company actions and decisions, thereby completing a key dimension of the production, maintenance and development of trust capital. To this end, the following four steps are taken. First, we analyze the relation between ethics auditing and trust as a basic moral resource in the dialogue between the company and its various stakeholders. Second, we examine the social balance sheet as a precursor to ethics auditing and focus on what prevents it from going further. Third, we attempt to reconstruct the basic moral assumptions underlying the companys social responsibility from the discourse ethics approach. Finally, we present a methodological framework from which to carry out our proposal, which embraces two basic theoretical perspectives stakeholder theory and the values derived from discourse ethics as a normative framework. (shrink)

Several authors have pointed at opportunities to develop the well-established Business Balanced Scorecard into a Scorecard that enables companies to integrate sustainability into their strategy. Recent case studies and research experiences show that social and environmental targets are more widely recognized as strategic drivers for management. However, experiments also show that the traditional Scorecard has its limits when it comes to e.g. stakeholder management and product chain management. The European Corporate Sustainability Framework(ECSF) program distinguishes several ambition levels for Corporate Sustainability/corporate (...) Responsibility. The traditional Balanced Scorecard is suitable for companies that aim for Compliance-driven CS/cror for Profit-driven CS/cr, where the financial bottom line is the ultimate indicator for success. More ambitious companies want to balance economic, social and ecological targets in a Community-driven CS/sror Synergy-driven CS/cr.For ambitious companies, we propose a format of a Responsive Business Scorecard (RBS). The Responsive Scorecard enables companies to score at Profit, People and Planet, at the same time to integrate stakeholder demands into internal programs to improve performance. The RBS includes five Perspectives: Customers&Suppliers, Financiers&Owners, Society&Planet, Internal Process and Employees&Learning.We assessed the practical feasibility of a Responsive Scorecardin food and tourist industries. In the food industry, we analyzed whether existing business priorities of Italian companies can adequately fill a Responsive scorecard.Our conclusion is that traditional topics like finance, customers and employees are readily filled, but that sustainability topics like chain management (suppliers) and environmental performance (planet) need further elaboration. The tourist sector is dominated by Small and Medium Sized Enterprises. We investigated whether existing eco-labels for camping-sites and marinas can be developed into Responsive Scorecards. Our conclusion is that such a sector specific development of a Responsive Scorecard is possible. Further research has to show what is the value added of the new scorecard for companies in the tourist sector. (shrink)

In this paper we review recent UK literature on HRM and ethics and suggest that implicit in many accounts is a perception of a ‘moral hole’ appearing within the employee relations landscape which is based on external, reflective observations of HRM policies and practices. We argue that the investigation of HRM and ethics could be broadened by locating HRM and ethics research more explicitly within the social and cultural realities of organizations and their employees. Finally, we outline and illustrate what (...) a social constructivist approach might add to research in this field and how it might provide insights that help bridge the gap between theory and practice. (shrink)

The main concern of this paper is the moral responsibility of the firm, as well as of the individuals in a firm, to uphold environmental protection. Much of the business ethics literature defines corporate social responsibility in terms of stakeholder relationships, and the emphasis is frequently on collective as opposed to individual responsibility. This paper has three objectives. The first is to clarify the nature of moral responsibility, and the distinction between legal and moral responsibility. The second objective is to (...) steer academicians and others towards a new vision of the firm. We argue that a firm is not just a singular legal entity but also a collectivity of morally responsible individuals who are liable for immoral acts of the firm. By expanding the boundary of responsibility of action from an intangible collectivity – the firm, to all the individuals within it, this vision moves beyond the typical emphasis on the firm as being the only moral agent responsible for corporate actions. The paper emphasizes not simply the responsibility of top echelon managers, but of every employee across ranks. The third goal of this paper is to examine the circumstances where application of moral responsibility becomes crucial, for instance, in the context of protection of the natural environment by a firm and its employees. (shrink)

In April this year a Conference on Ethical Issues in Contemporary Human Resource Management was held at the Management School, Imperial College, London, and jointly sponsored by the British Universities Industrial Relations Association (BUIRA) and the UK Chapter of the European Business Ethics Network (EBEN‐UK). We are indebted to the organisers of the Conference, Dr Diana Winstanley, Lecturer in Human Resource Management at Imperial College Management School, Dr Jean Woodall, Reader in Human Resource Management at Kingston Business School, and Professor (...) Edmund Heery, Professor of Human Resource Management at Cardiff Business School, for the following overview of the ethics agenda emerging for modern HRM as this figured in contributions to the Imperial College Conference. All the papers delivered at the Conference are obtainable from Dr Diana Winstanley, Imperial College Management School, 53 Prince's Gate, Exhibition Road, London SW7 2PG, tel: (44)(0) 171‐594‐9114. (shrink)

This paper examines informal networks that support the British Asian business community. Ethnic communities have been crucial to facilitating the economic development of their migrant members, as they make the transition from economic refugees to citizens. The basis of this informal support is the notion of social capital offered to kinsmen who arrived with finite resources. However, as successive generations have become more integrated with the wider community reliance on these resources is forecast to decrease. Research has shown that subsequent (...) Asian generations are developing complex relations in their attitudes and reliance towards their ethnic community (Janjuha-Jivraj and Woods, 2002) it is still an area that is very active in providing crucial informal business support. There is however, a distinct difference in attitudes between first and second generations in terms of accepting business support from the ethnic community. This issue is further compounded by difficulties among external support agencies in penetrating ethnic businesses. This leads to the following questions: • What forms of social capital are evident and how important are they in sustaining relationships within the religious-ethnic community? • How crucial is the ethnic community in providing an infrastructure to offer support. This paper is based on a network of businesses that are members of a sub-group across Greater London. It is anticipated that the findings will help to unravel the impact of migratory bonds on community members. This in turn will provide useful information for service providers when considering how to successfully target ethnic businesses. (shrink)

Several authors have pointed at opportunities to develop the well-established Business Balanced Scorecard into a Scorecard that enables companies to integrate sustainability into their strategy. Recent case studies and research experiences show that social and environmental targets are more widely recognized as strategic drivers for management. However, experiments also show that the traditional Scorecard has its limits when it comes to e.g. stakeholder management and product chain management. The European Corporate Sustainability Framework (ECSF) program distinguishes several ambition levels for Corporate (...) Sustainability/Corporate Responsibility. The traditional Balanced Scorecard is suitable for companies that aim for Compliance-driven CS/CR or for Profit-driven CS/CR, where the financial bottom line is the ultimate indicator for success. More ambitious companies want to balance economic, social and ecological targets in a Community-driven CS/SR or Synergy-driven CS/CR. For ambitious companies, we propose a format of a Responsive Business Scorecard (RBS). The Responsive Scorecard enables companies to score at Profit, People and Planet, at the same time to integrate stakeholder demands into internal programs to improve performance. The RBS includes five Perspectives: Customers & Suppliers, Financiers & Owners, Society & Planet, Internal Process and Employees & Learning. We assessed the practical feasibility of a Responsive Scorecard in food and tourist industries. In the food industry, we analyzed whether existing business priorities of Italian companies can adequately fill a Responsive scorecard. Our conclusion is that traditional topics like finance, customers and employees are readily filled, but that sustainability topics like chain management (suppliers) and environmental performance (planet) need further elaboration. The tourist sector is dominated by Small and Medium Sized Enterprises. We investigated whether existing eco-labels for camping-sites and marinas can be developed into Responsive Scorecards. Our conclusion is that such a sector specific development of a Responsive Scorecard is possible. Further research has to show what is the value added of the new scorecard for companies in the tourist sector. (shrink)

In April this year a Conference on Ethical Issues in Contemporary Human Resource Management was held at the Management School, Imperial College, London, and jointly sponsored by the British Universities Industrial Relations Association (BUIRA) and the UK Chapter of the European Business Ethics Network (EBEN‐UK). We are indebted to the organisers of the Conference, Dr Diana Winstanley, Lecturer in Human Resource Management at Imperial College Management School, Dr Jean Woodall, Reader in Human Resource Management at Kingston Business School, and Professor (...) Edmund Heery, Professor of Human Resource Management at Cardiff Business School, for the following overview of the ethics agenda emerging for modern HRM as this figured in contributions to the Imperial College Conference. All the papers delivered at the Conference are obtainable from Dr Diana Winstanley, Imperial College Management School, 53 Prince's Gate, Exhibition Road, London SW7 2PG, tel: (44)(0) 171‐594‐9114. (shrink)