Abstract: In this article, I offer a proposal to clarify what I believe is the proper relation between value maximization and stakeholder theory, which I call enlightened value maximization. Enlightened value maximization utilizes much of the structure of stakeholder theory but accepts maximization of the long-run value of the firm as the criterion for making the requisite tradeoffs among its stakeholders, and specifies long-term value maximization or value seeking as the firm’s objective. This proposal therefore solves the problems that arise (...) from the multiple objectives that accompany traditional stakeholder theory. I also discuss the Balanced Scorecard, which is the managerial equivalent of stakeholder theory, explaining how this theory is flawed because it presents managers with a scorecard that gives no score—that is, no single-valued measure of how they have performed. Thus managers evaluated with such a system (which can easily have two dozen measures and provides no information on the tradeoffs between them) have no way to make principled or purposeful decisions. The solution is to define a true (single dimensional) score for measuring performance for the organization or division (and it must be consistent with the organization’s strategy), and as long as their score is defined properly, (and for lower levels in the organization it will generally not be value) this will enhance their contribution to the firm. (shrink)

After providing an overview of Corporate Social Responsibility (CSR) research in different contexts, and noting the varied methodologies adopted, two robust CSR conceptualizations – one by Carroll (1979, ‘A Three-Dimensional Conceptual Model of Corporate Performance’, The Academy of Management Review 4(4), 497–505) and the other by Wood (1991, ‘Corporate Social Performance Revisited’, The Academy of Management Review 16(4), 691–717) – have been adopted for this research and their integration explored. Using this newly synthesized framework, the research critically examines the CSR (...) approach and philosophy of eight companies that are considered active in CSR in the Lebanese context. The findings suggest the lack of a systematic, focused, and institutionalized approach to CSR and that the understanding and practice of CSR in Lebanon are still grounded in the context of philanthropic action. The findings are qualified within the framework of existing contextual realities and relevant implications drawn accordingly. (shrink)

This paper suggests a framework for determining the ethicality of disguised and obtrusive advertising. While most discussions of advertising ethics deal with deception or fraud, the proposed framework is based on the way messages are presented to audiences. Suggestions for measurement and future research are given.

Concerns about children's ability to fully comprehend and evaluate advertising messages has stimulated substantial research and heated debate among scholars, business leaders, consumer advocates, and public policy makers for more than three decades. During that time, some very fundamental questions about the fairness of marketing to children have been raised, yet many remain unresolved today. With the emergence of increasingly sophisticated advertising media, promotional offers and creative appeals in recent years, new issues have also developed. This paper provides a basis (...) for further examination of some the key questions in this area, and suggests how children's advertising research can be employed to illuminate them. (shrink)

This paper identifies the ethical issues involved with women's advertising, and argues that ads can be successful in generating sales without portraying women as things or as mere sex objects, and without perpetuating various weakness stereotypes. A paradigm shift in advertising appears to be at hand. This new model replaces images of women as submissive or constantly in a need of alteration, with a move to reinstate beauty as a natural thing, not an unattainable ideal. This paper also reviews general (...) ethical issues of the advertising industry, including: (1) that advertising equates the pursuit of material gain with human happiness; (2) that advertising pushes its own values, artificial or false as they may be, as to what is "good" for the consumer; (3) that advertising plays on physical appetites and the body; (4) that advertising strives to bypass rational thinking, by desensitizing the viewer and playing on group dynamics. (shrink)

After providing an overview of Corporate Social Responsibility research in different contexts, and noting the varied methodologies adopted, two robust CSR conceptualizations - one by Carroll, 497-505) and the other by Wood, 691-717) - have been adopted for this research and their integration explored. Using this newly synthesized framework, the research critically examines the CSR approach and philosophy of eight companies that are considered active in CSR in the Lebanese context. The findings suggest the lack of a systematic, focused, and (...) institutionalized approach to CSR and that the understanding and practice of CSR in Lebanon are still grounded in the context of philanthropic action. The findings are qualified within the framework of existing contextual realities and relevant implications drawn accordingly. (shrink)

Although ads with subtle racist imagery can reinforce negative stereotypes, advertisers can eliminate this problem. After a brief overview of predominantly U.S.-based research on the racial mix of models/actors in ads, a theoretical framework for unmasking subtle racial bias is provided and dimensional qualitative research is introduced as a method for identifying and rectifying such ad imagery. Results of a DQR-based study of 622 U.K. television ads with at least one Black actor indicate subtle racially biased imagery now supersedes overt (...) forms, and the most popular ad appeals often mask negative stereotypes. Implications for public policy and advertisers, as well as recommendations for future research, are discussed. (shrink)

China is a country that has undertaken a great transformation since the late 1970' s, and among these changes, has seen a massive growth in the advertising industry with the influx of foreign advertisers, and the development of regional and global media, such as satellite television and the Internet. This has resulted in the Chinese people of all ages having a greater opportunity of exposure to different types of advertising, including the advertising of potentially controversial products, which could clash with (...) traditional Chinese values. Using a stakeholder theory approach, this study analyzes the responses of 630 Chinese respondents to discover who is offended by controversial advertisements and determine ways potentially offensive advertising messages can be reduced, thereby assisting marketers in being more socially responsible in their advertising messages. (shrink)

We critique a series of recent papers in which Reidenbach and Robin developed a multidimensional ethics scale. Our critique raises four problems for the scale. First, it is not clear what the scale measures. Second, the semantic differential items used in the scale seem problematic. Third, the scale omits several important ethical rationales. Finally, no caveats accompany the scale to alert managers about its proper and improper use.

Although the societal advantages of responsible advertising are self-evident, no detailed vision of responsible ads exists. Without this vision, stakeholders have no framework for identifying, preventing, and remedying non-conforming ads. To address this problem, the four basic properties of responsible ads – consistent with an everyday-language, business-oriented definition of responsibility and the assumption that ads are not inherently bad – are posited. Then, the best milieu for creating such ads is identified.

Corporate social responsibility (CSR) is a concept that has acquired a new resonance in the global economy. With the advent of globalization, managers in different contexts have been exposed to the notion of CSR and are being pressured to adopt CSR initiatives. Yet, in view of vastly differing national cultures and institutional realities, mixed orientations to CSR continue to be salient in different contexts, oscillating between the classical perspective which considers CSR as a burden on competitiveness and the modern perspective (...) that views CSR as instrumental for business success. Capitalizing on the two-dimensional CSR model developed by Quazi and O'Brien (Journal of Business Ethics 25, 33-51, 2000), this article assesses managerial perspectives towards CSR in three neighboring Middle Eastern countries (Lebanon, Syria and Jordan) through an empirical study involving 333 managers. The findings lend support to the Quazi and O'Brien model (2000), suggesting some commonalities in CSR orientations as well as minor divergences. The findings are discussed and cross-cultural implications drawn accordingly. (shrink)

This paper capitalizes on an institutional perspective to analyze corporate social responsibility (CSR) orientations in the Lebanese context. Specifically, the paper compiles a new theoretical framework drawing on a multi-level model of institutional flows by Scott (Institutions and organizations: ideas and interests, 2008 ) and the explicit/implicit CSR model by Matten and Moon (Acad Manag Rev 33(2):404–424, 2008 ). This new theoretical framework is then used to explore the CSR convergence versus divergence question in a developing country context. The findings (...) highlight the usefulness of the compiled multi-layered institutional framework and the varied nuances and profound insights it offers in analyzing CSR in context. They also suggest that a cosmetic level of global convergence in explicit CSR may materialize in light of mimetic isomorphic pressures, but that the path dependence hypothesis is indeed salient in light of national history trajectories and socio-politico configurations. The findings correspond most closely to patterns of CSR crossvergence, combining elements of both convergence and divergence, and reflecting in complex hybridized CSR expressions. The findings and their implications are presented and assessed. (shrink)

This paper suggests a framework for determining the ethicality of disguised and obtrusive advertising. While most discussions of advertising ethics deal with deception or fraud, the proposed framework is based on the way messages are presented to audiences. Suggestions for measurement and future research are given.

This study reports on the development of scale items derived from the pluralistic moral philosophy literature. In addition, the manner in which individuals combine aspects of the different philosophies in making ethical evaluations was explored.

Many of today's ads work by arousing the viewer's emotions. Although emotion-arousing ads are widely used and are commonly thought to be effective, their careless use produces a side-effect: the psychoactive ad. A psychoactive ad is any emotion-arousing ad that can cause a meaningful, well-defined group of viewers to feel extremely anxious, to feel hostile toward others, or to feel a loss of self-esteem. We argue that, because some ill-conceived psychoactive ads can cause harm, ethical issues must arise during their (...) production. Current pretesting methods cannot identify the potentially psychoactive ads; therefore, we offer some tentative guidelines for reducing the number of viewers harmed by psychoactive ads. (shrink)

Disparity in consumer ethics reflects cultural variations; these are differences in the collective programming of the mind that distinguishes one culture from another. This study explores the differences in consumer ethics across cultural dimensions using Hofstede's (in Culture's consequences: international differences in work-related values, Sage, Beverly Hills, 1980) model (collectivism, masculinity, power distance, and uncertainty avoidance) and Muncy and Vitell (in J Bus Res 24(4): 297-311, 1992) consumer ethics model (i.e., illegal, active, passive, and no harm). This is the first (...) study to empirically explore consumer ethics using these two major constructs. Seven hundred sixty one African American consumers were used to test the four major hypotheses developed in this study. Current research has revealed that there are significant differences in ethics between consumers who score high and consumers who score low on Hofstede's four cultural dimensions. In general, this research revealed that consumers who score high on collectivism, high on uncertainty avoidance, low on masculinity, and low on power distance scales reject questionable activities more than consumers who score low on collectivism, low on uncertainty avoidance, high on masculinity, and high on power distance. This study should prove valuable to international marketers because the Hofstede cultural model allows managers to identify differences in consumer ethics across different cultures and thus provides a theoretical base for designing effective marketing strategies. (shrink)