In management theory and business practice, the dealing with diversity, especially a diverse workforce, has played a prominent role in recent years. In a globalizing economy companies recognized potential benefits of a multicultural workforce and tried to create more inclusive work environments. However, many organizations have been disappointed with the results they have achieved in their efforts to meet the diversity challenge [Cox: 2001, Creating the Multicultural Organization (Jossey-Bass, San Francisco)]. We see the reason for this in the fact that (...) while much attention has been paid to the strategic dimension of diversity policies, systems, and processes, much less thought has been given to the normative dimension, the norms and values involved. Given the fact that diversity is essentially about cultural norms and values, appropriate reflection work becomes a fundamental task to create a truly inclusive work environment where people from diverse backgrounds feel respected and recognized. Therefore, we focus in this article on the challenge of building an inclusive diversity culture showing that such a culture of inclusion has to be built on solid moral grounds. We present a conceptual framework of inclusion based on a moral theory of recognition and introduce the founding principles of reciprocal understanding, standpoint plurality and mutual enabling, trust and integrity. After revealing barriers that hinder a culture of inclusion from emerging we shed light on the process of developing such a culture which involves four essential transformational stages: The first phase focuses on raising awareness, building understanding and encouraging reflection. The second phase deals with the development of a vision of inclusion as an important step to define the change direction. In a third phase key management concepts and principles should be re-thought. This leads to the fourth, action-oriented phase, that focuses on an integrated Human Relations Management (HRM)1 system that helps implement change by doing both, translating the founding principles via competencies into observable and measurable behavior and fostering the development, reinforcement and recognition of inclusive behavior. (shrink)

The increasing pressure from different facets of society exerted on multinational companies (MNCs) to become more philanthropic and claim ownership of their impacts is now becoming a standard practice. Although research in corporate social responsibility (CSR) has arguably been recent (see subsequent section), the application of activities taking a voluntary form from MNCs seem to vary reflecting a plethora of factors, particularly one obvious being the backwater local communities of developing countries where most of the natural extraction projects are located. (...) This chapter examines views of two Papua New Guinea (PNG) local communities hosting large-scale mining operations and explains the demands arising from situational relativities, which are becoming too conspicuous for mine developers not to ignore. The research undertaken with several assertions highlights the perceived imperativeness allowing companies to integrate the CSR into the essential management pursuits of running mines in PNG. (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)

This article introduces and summarizes selected papers from the first World Business Ethics Forum held in Hong Kong and Macau in November 2006, co-hosted by the Hong Kong Baptist University and by the University of Macau. Business Ethics in the East remain distinct from those in the West, but the distinctions are becoming less pronounced and the ethical traffic flows both ways.

This article first addresses the question of “why” we teach business ethics. Our answer to “why” provides both a response to those who oppose business ethics courses and a direction for course content. We believe a solid, comprehensive course in business ethics should address not only moral philosophy, ethical dilemmas, and corporate social responsibility – the traditional pillars of the disciple – but also additional areas necessary to make sense of the goings-on in the business world and in the news. (...) These “new pillars,” that we advocate include moral psychology, organizational design and behavior, motivational theory, and a unit on how society, business, and law interact. This last unit builds upon the work of Francis P. McHugh (1988) who urged an integration of “disciplines related to business ethics.” Our seventh pillar would encompass an integration of law, socio-political theory, and policy to demonstrate how business helps construct its own regulatory framework. The concluding recommendation is for a comprehensive “Seven Pillars” of business ethics approach. (shrink)

Since its inception, Stakeholder Management Capability (SMC) has constituted a powerful hermeneutic through which business organizations have understood and leveraged stakeholder relationships. On this model, achieving a high level of capability largely depends on managerial ability to effectively bargain with stakeholders and establish solidarity vis-à-vis the successful negotiation, implementation, and execution of "win–win" transactional exchanges. Against this account, it is rightly pointed out that a transactional explanation of stakeholder relationships, regarded by many as the bottom line for stakeholder management, fails (...) to provide managerial direction regarding how to resolve a variety of normative stakeholder claims that resist commoditization. In response to this issue, this paper has two overlapping goals. It seeks to elaborate a discourse theoretical approach to the problem by first drawing out Jurgen Habermas’ theory of communicative action and delineating the various types of rational discourse. Second, the paper attempts to present concrete implications for SMC relative to reshaping the contours of rational, process, and transactional analysis in light of central discourse theoretical conclusions. (shrink)

The present study expands the systematic measurement of consumers’ sentiments towards business ethical practices to the international arena. Data for the Business Ethics Index (BEI) were gathered in three countries of the European Union (UK, Germany, Spain). The Germans were the most pessimistic while the British were the most optimistic about the future ethical behaviour of businesses.

The increasing pressure from different facets of society exerted on multinational companies to become more philanthropic and claim ownership of their impacts is now becoming a standard practice. Although research in corporate social responsibility has arguably been recent, the application of activities taking a voluntary form from MNCs seem to vary reflecting a plethora of factors, particularly one obvious being the backwater local communities of developing countries where most of the natural extraction projects are located. This chapter examines views of (...) two Papua New Guinea local communities hosting large-scale mining operations and explains the demands arising from situational relativities, which are becoming too conspicuous for mine developers not to ignore. The research undertaken with several assertions highlights the perceived imperativeness allowing companies to integrate the CSR into the essential management pursuits of running mines in PNG. (shrink)

Combining principles of individual rational choice with a sociological conception of collective action, James Coleman recasts social theory in a bold new way. The result is a landmark in sociological theory, capable of describing both stability and change in social systems. This book provides for the first time a sound theoretical foundation for linking the behavior of individuals to organizational behavior and then to society as a whole. The power of the theory is especially apparent when Coleman analyzes corporate actors, (...) such as large corporations and trade unions. He examines the creation of these institutions, collective decision making, and the processes through which authority is revoked in revolts and revolutions. Coleman discusses the problems of holding institutions responsible for their actions as well as their incompatibility with the family. He also provides a simple mathematical analysis corresponding to and carrying further the verbal formulations of the theory. Finally, he generates research techniques that will permit quantitative testing of the theory. From a simple, unified conceptual structure Coleman derives, through elegant chains of reasoning, an encompassing theory of society. It promises to be the most important contribution to social theory since the publication of Talcott Parsons' Structure of Social Action in 1936. (shrink)

This paper addresses the role of integrity in global leadership. It reviews the philosophy of ethics and suggests that both contractarianism and pluralism are particularly helpful in understanding ethics from a global leadership perspective. It also reviews the challenges to integrity that come through interactions that are both external and internal to the company. Finally, the paper provides helpful suggestions on how global leaders can define appropriate ethical standards for themselves and their organizations.

Drawing on a small sample of writings from distinguished philosophers and poets living in the Middle East in the period from the eighth to the first century BCE, it is shown that a variety of business practices provided familiar examples of how people ought to act and live, morally speaking, to enjoy the best sort of life and to be the best sort of person. The writings reveal that we share a common heritage and humanity with people living 20 to (...) 28 hundred years ago, and that some of the observations are as important and useful today as they were when they were originally made. (shrink)

Multinational corporations' international staffing policies have been evaluated in terms of cost and efficiency arguments. Research has not addressed, however, the ethical impact of these policies on diverse stakeholder groups. This paper presents a conceptual framework by which ethnocentric, polycentric and geocentric staffing policies are theoretically linked to underlying decision-making modes of instrumentality, bounded rationality and economic rationality, respectively. It goes on to describe the ethical rationales associated with each policy type, namely, distributive justice, moral rights of man, and utilitarianism. (...) An investigation of resulting ethical dilemmas affecting relevant MNC stakeholder groups is incorporated and offered as a tool for analyzing the true and full costs of trade-offs when choosing one policy over another. The paper concludes with a discussion of the implications of the conceptual framework for theory and practice and directions for future research. (shrink)