This paper reports on the results of an experiment conducted with experienced corporate directors. The study findings indicate that directors employ prospective rationality cognition, and they sometimes make decisions that emphasize legal defensibility at the expense of personal ethics and social responsibility. Directors recognize the ethical and social implications of their decisions, but they believe that current corporate law requires them to pursue legal courses of action that maximize shareholder value. The results suggest that additional ethics education will have little (...) influence on the decisions of many business leaders because their decisions are driven by corporate law, rather than personal ethics. (shrink)

Gives politics the following meaning: the organization of dissent.

Building on earlier work on the relationship between corporate social performance (CSP) and a firm’s financial performance, this integrative empirical study supports the theoretical argument that the higher a firm’s CSP the lower its financial risk. Specifically, the relationship between CSP and risk appears to be one of reciprocal causality, because prior CSP is negatively related to subsequent financial risk, and prior financial risk is negatively related to subsequent CSP. Additionally, CSP is more strongly correlated with measures of market risk (...) than measures of accounting risk. Of all CSP measures, reputation for social responsibility appears to be the most important one in terms of its risk implications. (shrink)

This book is an original discussion of key problems in moral theory. The author argues that the work of recent feminist theorists in this area, particularly that of Carol Gilligan, marks a radically new departure in moral thinking. Gilligan claims that there is not only one true, moral voice, but two: one masculine, one feminine. Moral values and concerns associated with a feminine outlook are relational rather than autonomous; they depend upon interaction with others. In a far-reaching examination and critique (...) of Gilligan's theory, Hekman seeks to deconstruct the major traditions of moral theory which have been dominant since the Enlightenment. She challenges the centrepiece of that tradition: the disembodied, autonomous subject of modernist philosophy. Gilligan's approach transforms moral theory from the study of abstract universal principles to the analysis of moral claims situated in the interactions of people in definite social contexts. Hekman argues that Gilligan's approach entails a multiplicity of moral voices, not just one or even two. This book addresses moral problems in a challenging way and will find a wide readership among philosopher's, feminist thinkers and psychologists. (shrink)

This article extends earlier research concerning the relationship between corporate social performance and corporate financial performance, with particular emphasis on methodological inconsistencies. Research in this area is extended in three critical areas. First, it focuses on a particular industry, the chemical industry. Second, it uses multiple sources of data-two that are perceptual based (KLD Index and Fortune reputation survey), and two that are performance based (TRI database and corporate philanthropy) in order to triangulate toward assessing corporate social performance. Third, it (...) uses the five most commonly applied accounting measures in the corporate social performance and corporate financial performance (CSP/CFP) literature to assess corporate financial performance. The results indicate that the a priori use of measures may actually predetermine the CSP/CFP relationship outcome. Surprisingly, Fortune and KLD indices very closely track one another, whereas TRI and corporate philanthropy differentiate between high and low social performers and do not correlate to the firm's financial performance. (shrink)

There is a tendency in the business ethics literature to think of ethics in restrictive terms: what one should not do, and how to control this. Drawing on Lawrence Kohlberg''s theory of moral development, the paper focuses on, and draws attention to, another more positive aspect of ethics: the capacity of ethics to inspire and empower individuals, as well as groups. To understand and facilitate such empowerment, it is argued that it is necessary to move beyond Kohlberg''s justice reasoning so (...) as to appreciate the value and importance of feeling and care. Accordingly, we draw upon case study material to review the meaning of Kohlberg''s higher stages — 5, 6 and 7 — to question the meaning of ethical reasoning. With such deeper understanding of particular ethical codes or practices, it is thought that members of organisations may come closer to thespirit, as opposed to the letter, of ethical conduct in organisations. This, we argue, is consistent with the degree of trust and integrity demanded by leaner, post-bureaucratic ways of organizing and conducting business as well as being personally beneficial to the people involved. (shrink)

This study investigates the hypothesis that the advantage corporate social performance (CSP) yields in attracting human resources depends on the degree of job choice possessed by the job seeking population. Results indicate that organizational CSP is positively related to employer attractiveness for job seekers with high levels of job choice but not related for populations with low levels suggesting advantages to firms with high levels of CSP in the ability to attract the most qualified employees.

This paper offers an alternative to deontological and utilitarian approaches to making ethical decisions and taking good actions by organisational leaders. It argues that the relational and context-dependent nature of leadership necessitates reference to an ethical approach which explicitly takes these aspects into account. Such an approach is offered in the re-conceptualisation of ethical action on the part of leaders as a process of "coming into right relation" vis-à-vis those affected by their decisions and actions. Heidegger's notion of "dwelling" is (...) explored as a means of "coming into right relation". Three aspects of dwelling: "staying with", "comportment" and "active engagement" are described and ways in which they might be practically enacted by leaders are suggested. The paper concludes by reflecting on the ways adopting a "dwelling" approach to resolving ethical issues implies a re-conceptualisation of leadership itself. (shrink)

This article extends earlier research concerning the relationship between corporate social performance and corporate financial performance, with particular emphasis on methodological inconsistencies. Research in this area is extended in three critical areas. First, it focuses on a particular industry, the chemical industry. Second, it uses multiple sources of data-two that are perceptual based (KLD Index and Fortune reputation survey), and two that are performance based (TRI database and corporate philanthropy) in order to triangulate toward assessing corporate social performance. Third, it (...) uses the five most commonly applied accounting measures in the corporate social performance and corporate financial performance (CSP/CFP) literature to assess corporate financial performance. The results indicate that the a priori use of measures may actually predetermine the CSP/CFP relationship outcome. Surprisingly, Fortune and KLD indices very closely track one another, whereas TRI and corporate philanthropy differentiate between high and low social performers and do not correlate to the firm's financial performance. (shrink)

This paper offers an alternative to deontological and utilitarian approaches to making ethical decisions and taking good actions by organisational leaders. It argues that the relational and context-dependent nature of leadership necessitates reference to an ethical approach which explicitly takes these aspects into account. Such an approach is offered in the re-conceptualisation of ethical action on the part of leaders as a process of “coming into right relation” vis-à-vis those affected by their decisions and actions. Heidegger’s notion of “dwelling” is (...) explored as a means of “coming into right relation”. Three aspects of dwelling: “staying with”, “comportment” and “active engagement” are described and ways in which they might be practically enacted by leaders are suggested. The paper concludes by reflecting on the ways adopting a “dwelling” approach to resolving ethical issues implies a re-conceptualisation of leadership itself. (shrink)

This paper reads Deleuze through a Spinozist lens to conceive of the human being as a dynamic and complex whole in constant interchange with its environment. The author thus moves beyond philosophical dualisms, and challenges the assumption that a hierarchical normative organization is the only possible world. Using the example of rape, she argues that micropolitical strategies might disrupt and "pass" the juridical order and open up alternative, more equitable, forms of sociability.

This paper reads Deleuze through a Spinozist lens to conceive of the human being as a dynamic and complex whole in constant interchange with its environment. The author thus moves beyond philosophical dualisms, and challenges the assumption that a hierarchical normative organization is the only possible world. Using the example of rape, she argues that micropolitical strategies might disrupt and “pass” the juridical order and open up alternative, more equitable, forms of sociability.

Owners of businesses represent an interesting case in the study of the intersection of personal and corporate philanthropic values. Because individuals who own businesses have the means and the ability to act on philanthropic motivations through the medium of their businesses, it is interesting to explore the extent to which their corporate contributions to nonprofits are philanthropic in nature or instrumentally motivated, as in the instance of cause related marketing. The trade-offs between cause related marketing and corporate support of nonprofits (...) are complex. Although larger firms are increasing their investments in cause related marketing, the extent of and motivations for adoption of cause related marketing among privately held businesses is less well understood. This study of 478 businesses which are supporters of arts organizations shows that privately held businesses of medium size (300 to 500 employees) are participating in cause related marketing to a significant degree. The adoption rate of cause related marketing is about 40%, and the primary benefits sought are company image enhancement and product marketing support. Adoption of cause related marketing among privately held and smaller enterprises will grow as CEOs exhibit satisfaction with the results of their program, intend to engage in positive word of mouth about it, and plan to allocate more resources to it. (shrink)

Collectively, institutions own an increasing proportion of outstanding corporate equities. As an emergent force in shaping corporate America, the linkages between institutional ownership and corporate social performance (CSP) require empirical examination. Not only do corporate policy makers need to know those areas where social performance may lure or inhibit capital infusions, lawmakers also need a better understanding of the social forces guiding corporate policy. As anticipated, this study found a positive relationship between the amount of institutional ownership of corporate stock (...) and a company's social responsiveness as measured by the representation of women on its board of directors; however, no statistically significant relationship with social responsibility as measured by charitable giving was found. The exemplar of social issues management — compliance with the Sullivan principles — showed an unexpected, negative relationship with the level of institutional ownership. (shrink)

This paper analyzes the determinants of corporate reputation within a sample of large UK companies drawn from a diverse range of industries. We pay particular attention to the role that philanthropic expenditures and policies may play in shaping the perceptions of companies among their stakeholders. Our findings highlight that companies which make higher levels of philanthropic expenditures have better reputations and that this effect varies significantly across industries. Given that reputational indices tend to reflect the financial performance of organizations above (...) other factors (Fryxell, G. E. and J. Wang: 1994, Journal of Management 20, 1–14) and that elements of the literature emphasise that discretionary aspects of social responsibility, including corporate donations, may not be in the financial interests of organizations (e.g. Friedman, M.: 1970, “The Social Responsibility of Business is to Increase its Profits”, New York Times Magazine, September 13), this is a significant finding. It suggests that philanthropic expenditures may play a significant role in stakeholder management and may, in particular, lead to stakeholders holding more positive impressions of philanthropic corporations. (shrink)

To date, research into socially responsible investment (SRI), and in particular the socially responsible investment funds industry, has focused on whether investing in SRI assets has any differential impact on investor returns. Prior findings generally suggest that, on a risk-adjusted basis, there is no difference in performance between SRI and conventional funds. This result has led to questions about whether SRI funds are really any different from conventional funds. This paper examines whether the portfolio allocation across industry sectors and the (...) stock-picking ability of SRI managers are different when compared to conventional fund managers. The study finds that SRI funds exhibit different industry betas consistent with different portfolio positions, but that these differences vary from year to year. It is also found that there is little difference in stock-picking ability between the two groups of fund managers. (shrink)