Transition from a planned command economy to a market economy means tearing down a socio-economic setting where everybody follows orders and nobody bears individual responsibility for anything. The absence of personal responsibility does not promote ethical behavior in any walk of life. Today, the malnourished business ethics in the former Soviet Union creates a critical obstacle to economic development. The paucity of new official rules governing the conduct of business makes the transition process painful and difficult to people habituated to (...) numberless rules and regulations. The first part of this paper surveys the most visible unethical business practices that have been reported by the Western media and those that are causing the largest number of complaints by the local governments and businessmen. The second part of the paper looks at ethical problems that have been under-reported. (shrink)

Business relations rely on shared perceptions of what is acceptable/expected norms of behavior. Immense expansion in transnational business made rudimentary consensus on acceptable business practices across cultural boundaries particularly important. Nonetheless, as more and more nations with different cultural and historical experiences interact in the global economy, the potential for misunderstandings based on different expectations is magnified. Such misunderstandings emerge in a growing literature on "improper" business practices – articulated from a narrow cultural perspective. This paper reports an ongoing research (...) on the cultural and contextual aspects of business ethics. The objective is to investigate how the perception/attitudes of business students towards the ethical dimension of doing business varies in different countries; Whether there are socio-cultural factors that influence the perception of ethicality in business practices. Research findings among business students in six countries: China, Egypt, Finland, Korea, Russia, and the U.S.A. are reported. While all groups had basic agreement on what constitutes ethical business practices, differences are found in the respondents'' tolerance to damage resulting from "unethical" behavior. Without underestimating the role of national culture, variations in research results also point to the importance of current socio-political developments in the relevant countries. Implications for business teaching and management development are discussed. (shrink)

The results of our research, obtained from a survey of 50 Western managers working in Romania, show that differences exist between Western managers' ethics and those of their Romanian counterparts, especially with regard to bribery. Different backgrounds are at the basis of such divergence. Beyond the communist era and its heritage, the cultural aspect of bribery has been analyzed. Nevertheless, the results of our research suggest that culture may play a double role and the influence could come from both the (...) home environment of Western managers and their new environment. Some Western managers who adapt to the Romanian environment appear to have been already conditioned to bribery from their home environment. (shrink)

North American and West European academics are accepting offers to speak or teach about business ethics to audiences in countries with transitional economies. Such engagements should not be accepted without an appreciation for the challenges involved. This paper outlines the dynamics of business ethics in these former communist countries and describes circumstances relating to ethical training, and course content and pedagogy. A concluding section of the paper identifies some guidelines that instructors should consider before becoming involved with ethical training in (...) transitional economies. The principle message to be received from this paper is that instructors should avoid being ethics missionaries with preconceived ideals. (shrink)

This study examined the impact of gender on perceptions of various business practices by male and female Russian managers. Female managers considered various activities such as doing personal business on company time, falsifying time/quality/quantity reports, padding an expense account more than 10 percent, calling in sick to take a day off, and pilfering organization materials and supplies more unethical than male managers. Female managers also perceived the acceptance of gifts and favors in exchange for preferential treatment more unethical than male (...) managers. (shrink)

The present study describes the development of an ongoing and systematic index to measure consumers’ sentiments towards business ethical practices. The Business Ethics Index (BEI) is based on the well established measurements of consumer sentiments, namely the ICS (Index of Consumer Sentiment) and CBCCI (Conference Board Consumer Confidence Index). The BEI is comprised of 4 measurements representing the dimensions of “personal-vicarious” and “past-future.” Data from 503 telephone interviews were used to calculate a BEI of 107. This indicates an overall positive (...) consumer sentiment towards the ethical behavior of business. Future calculations of the BEI are planned which will allow for the estimation of the latent dynamics of trends in consumer sentiments toward American business ethics. (shrink)

Contemporary HRM was introduced into Poland by the arrival of international corporations with their professional systems of Human Resource Management, which emphasizes ethical personnel management. This research is based on data collected from a questionnaire and interview of 40 women and men professional graduates of the 2004 Weekend MBA Program at Poznan University of Economics eliciting their perceptions of ethical issues in Polish HRM. The present Polish economic situation, with 19% unemployment, precipitates many ethical challenges. The questionnaire and interviews resulted (...) in 217 observations and specific examples of ethical HRM issues. Examples fall in two broad categories and five specific Human Resource areas. The broad external categories are: History and cultural attitudes and Exploitation of the current unemployment situation. Historical and cultural attitudes influence attitudes toward work; company discipline; property and ownership; law and social expectations at work. The history of personnel departments in Socialistic Poland explains many of these attitudes. The five specific categories are: Ethical issues in recruitment; Ethical issues in hiring ; Ethical issues in performance appraisals and promotions; Abuse of authority, and “Mobbing”. Ethical issues in these categories include correlation with appropriate Polish Labor and Penal Laws. This research reveals some HRM ethical challenges unique to Polish HRM. The research emphasizes professional HRM and ethical expectations, which are now being recognized and accepted as a strategic component of Polish management. (shrink)

Using Reidenbach and Robin‘s ( Journal of Business Ethics 7, 871–879, 1988) multi-criteria ethics instrument, we carried out the first empirical test of Robertson and Crittenden‘s (Strategic Management Journal 24, 385–392, 2003) cross-cultural map of moral philosophies to examine what ethical criteria guide business people in Russia and the U.S. in their intention to behave. Competing divergence and convergence hypotheses were advanced. Our results support a convergence hypothesis, and reveal a common emphasis on relativism. Americans are also influenced by the (...) justice criterion while Russians tend to emphasize utilitarianism. (shrink)

This article deals with the relations in the triangle state–society–business in modern Russia. It is shown against Russian historical background, that the absolutist state in this country could never be identified with the society and these relations were shaped under its strong domination. The ethics of rule-following characteristic for market economy in general did not develop in Russia. The breakdown of communist Russia and market reforms proceeding since 1992 did not change this situation significantly. The period of political alliance between (...) big business and government was followed by restoration of state dominance in somewhat modified forms. Both periods were characterized by corruption, which contrary to Putin’s slogans, increases in Russia. In the article I show the evolution of Putin administration’s policy which changed from emphasizing and improving legal institutions to selective use of legal norms depending on personal loyalty. Main forms of state exploitation of Russian business are described. The conclusion is that Russian experience of balancing state and market should be called negative. (shrink)