The role of the business leader is key to develop the culture of an enterprise. To exemplify its importance in the national and globalcontext, the Muslim author from Indonesia points with admiration to Konosuke Matsushita, founder of Matsushita Electric Corporation, who already in the 1930s set up the seven ethical principles for healthy business growth, which also are commended by the Islamic imperative. Due to the current dynamic business environment, Muslims find themselves confronted with serious dilemmas and need guidance from (...) a clearly developed Islamic business ethics. For this purpose the author offers, first, the essentials of such an ethics: the utmost importance of all sort of productive work and the distribution of wealth in society; the vocation of trade; the fundamental principles of freedom and justice for business conduct; the prescription of certain manners such as leniency, service-motive, and consciousness of Allah; and mutual consultation. He, then, presents his personal view on leadership in business. It involves three basic ingredients: an inspiring vision of high and achievable standards; a value system based on the principles of freedom and justice and promoting fairness, business integrity, and efficiency; and courage to face tough decisions while putting one’s complete trust in Allah. (shrink)

Archetypal psychology suggests the possibility of a leadership archetype representing the unconscious preferences of human beings as a species about the appropriate relationships between leaders and followers. Mythological analysis compared God’s leadership in the Abraham myth with modern visionary, ethical and situational leadership to find similarities reflecting continuities in human thinking about leadership over as long as 3600 years. God’s leadership behavior is very modern except that God is generally more relationship oriented. The leadership archetype that emerges is of a (...) leader that develops his/her follower by reliably maintaining a vision, behaving according to firm ethical values even when it weakens the leader’s authority, accepting suffering when the follower is unreliable, and always forgiving even when the follower behaves with hubris in an attempt to overthrow the leader. If God’s leadership principles were mandatory in management, many dysfunctional leaders would be disqualified and many of the negative consequences of poor leadership might be averted. (shrink)

As in other professions, such as law and medicine, accounting has a Code of Professional Conduct (Code) that members are expected to abide by. In today''s legalistic society, however, the question of what is the right thing to do, is often confused with what is legal? In many instances, this may present a conflict between adhering to the Code and doing what some may perceive as proper ethical behavior. This paper examines (1) the reasoning process that CPAs use in resolving (...) ethical issues related to confidentiality; and, (2) whether or not there is a perceived conflict in adhering to the Code and the moral values of some CPAs. The results indicate that although most CPAs sampled resolve ethical issues in accordance with the Code, such decisions do not always reflect their belief of what is morally right. Although the results are useful in understanding how some CPAs reason in making moral choices involving confidentiality decisions, care should be exercised in drawing further inferences from this study due to the limited sample size. (shrink)

My name is Doug Adam. I am a convicted felon. I turned myself in, in mid-1987, to a U.S. attorney in New York, pleading guilty to felony charges of tax fraud and fraud on a mutual fund. It leftme scared to death, millions of dollars in debt, with no job, and at the age of37 back living with my parents while I awaited sentencing. What began then was a painful process of self discovery. After thriving on competition and perfection all (...) my life, how could I admit I wasn't perfect? Perfection wasn't even close. I was a felon. (shrink)

Despite a wealth of prior research (e.g., Wynd and Mager, 1989; Weber, 1990; Harris, 1991; Harris and Guffey, 1991; McCabe et al., 1991; Murphy and Boatright, 1994; Gautschi and Jones, 1998), little consensus has arisen about the goals and effectiveness of business ethics education. Additionally, accounting academics have recently been questioned as to their commitment to accounting ethics education (Gunz and McCutcheon, 1998). The current study examines whether accounting students' perceptions of business ethics and the goals of accounting (...) ethics education are fundamentally different from the perceptions of accounting faculty members. The study uses a survey instrument to elicit student and faculty responses to various questions concerning the importance of business ethics and accounting ethics education. Statistical analyses indicate that students consider both business ethics and the goals of accounting ethics education to be more important than faculty members. Implications of these results for accounting faculty members interested in accounting ethics education are discussed. (shrink)

This paper is an attempt to address the limited amount of research in the realm of organizational ethical climate in the not-for-profit sector. The paper draws from Victor and Cullen's (1988) theoretical framework which, combines the constructs of cognitive moral development, ethical theory, and locus of analysis. However, as a point of departure from Victor and Cullen's work, the authors propose an alternative methodology to extract ethical climate dimensions based on theoretical considerations. Using the Ethical Climate Questionnaire (ECQ), an exploratory (...) factor analysis is conducted followed by a confirmatory factor analysis using LISREL. The resulting five dimensions are labelled as: individual caring, machiavellianism, independence, social caring, and law and code. Findings provide a somewhat disparate perspective of the ethical climates in a not-for-profit context. First, there is a more discriminating perception of benevolent climate than its for-profit counterpart. Second, the dimensions are polarized between the individual and the cosmopolitan loci of analysis. These findings are then discussed with implications and direction for future research. (shrink)

Many jobs today are alienating: they damage the working person in psychological, mental, intellectual or psychosomatic ways; the psychosomatic damage may be permanent. This ill is due to a disregard for the basic psychological needs not gratified in a large number of workroles. It can be remedied without revolutionizing either the political or the economic-legal systems of pluralist democratic societies. Rather, we should revolutionize the image of the rank-and-file working person and attempt radical experiments in implementing new and democratic structures (...) in the workplace. The feasibility of all this is demonstrated by many successful and viable reforms. These are system-atically overlooked by backward-looking social scientists (Taylorist traditionalists, neo-Marxists and technological determinists). (shrink)

A quick look at what is happening in the corporate world makes it clear that the stakeholder idea is alive, well, and flourishing; and the question now is not “if ” but “how” stakeholder theory will meet the challenges of its success. Does stakeholder theory’s “arrival” mean continued dynamism, refinement, and relevance, or stasis? How will superior stakeholder theory continue to develop? In light of these and related questions, the authors of these essays conducted an ongoing dialogue on the current (...) state and future of stakeholder thinking. Beginning with a review of research and theory that has developed since the majorstakeholder theorizing efforts of the 1990s, the authors individually offer their perspectives on the key issues relevant today to stakeholder thinking, and to suggest possible approaches that might lead toward and enable the continuing development of superior stakeholder theory. (shrink)

Lately, the field of business ethics has begun to take an intense interest in the relationship between religion and business ethics. Various books and articles are being produced at an increasing rate using theoretical and qualitative research methods. However, todate, almost no data exist quantifying relationships between religion and business ethics. This paper begins to provide such data by testing the relationships between religious upbringing, religious practice, Christian beliefs, and attitudes toward corporate social responsibility. Analysis of our sample demonstrates that (...) religious practice and Christian beliefs have a weak relationship to attitudes toward corporate social responsibility. (shrink)

An extensive theoretical and research literature on organizational change and its implementation has been accumulating over the past fifty years. It is customary in this literature to find resistance to change mentioned as an inevitable consequence of organizational change initiatives. Yet there has been little discussion of the nature and forms of resistance that is institutionalized in organizational structure and processes. Furthermore, organization development perspectives on organizational change address management-initiated change, but not change proposed by advocates for the powerless and (...) disadvantaged. Focussing on institutionalized resistance from the standpoint of the advocate of fundamental change, this discussion proposes a typology consisting of a sequence of forms of active resistance to change, from denial through inaction to repression. The typology is illustrated by referring to responses of organizational decision makers to the efforts of employment equity change agents to address issues of systemic discrimination in the work place. The purpose of the typology is to assist change advocates, such as equality seekers, to name, analyze and think strategically about the institutionalized resistance they encounter, and about effective responses to the resistance. (shrink)

Managers often ask why their firm should have an ethics program, especially if no one has complained about unethical behavior. The pursuit of business ethics can cost money, they say. It can lose sales to less scrupulous competitors and can drain management time and energy. But as Harvard business professor Francis Aguilar points out, ethics scandals (such as over Beech-Nut's erzatz "apple juice" or Sears's padded car repair bills) can severely damage a firm, with punishing legal penalties, bad publicity, and (...) irreparably injured customer relations. Equally important if less obvious, unethical behavior can undermine a firm's organizational spirit. On the other hand, Aguilar argues, in a well run firm, ethical programs can actually enhance corporate performance, strengthening the company at every level and supercharging employee risk taking and innovation. In Managing Corporate Ethics, Aguilar shows managers how to create ethical programs within their organizations that not only discourage large-scale wrongdoing, but can contribute substantially to the achievement of corporate excellence. Aguilar's program is down-to-earth and comprehensive, and based on his extensive research on highly successful, ethical companies, both large and small. He recommends action on three fronts: first, get senior management to provide effective ethical leadership; second, set up an ethics program that promotes concern for the interests of people affected by the firm's operations and that provides safeguards against corrupting business pressures; and third, staff the company with ethical people and surround the organization with ethical advisors (including legal, financial, accounting, tax, and marketing consultants). To illuminate this three-step program, Aguilar incorporates the lessons learned in his in-depth study of ten prominent firms with proven successful ethics programs--among them Hewlett-Packard, Johnson & Johnson, Nucor Steel, Cray Research, ServiceMaster, and Texas Instruments. He examines Lincoln Electric's attention to compensation and job security to ensure quality products and to reduce the pressure or temptation to act unethically. He shows how General Mills, while pushing product line managers to compete aggressively, uses corporate staff units to guard against illegal or unacceptable claims (testing cake recipes, for example, to see if a product's quality fails under the less-than-perfect conditions of a normal kitchen). And he details how Armstrong World Industries uses pep talks, inspirational stories, role models, and ready access to management to promote ethical standards among employees. Throughout, Aguilar demonstrates convincingly that an ethical program pays dividends: that employees, suppliers, customers, and the community at large know when they are being treated in a positive and constructive manner, and are likely to respond in kind. Packed with real life examples of successful (and failed) ethical programs, Managing Corporate Ethics is a valuable roadmap to an often overlooked source of business success. (shrink)

Corruption poisons corporations in America and around the world, and has devastating consequences for the entire social fabric. In this article, we focus on organizational corruption, described as the abuse of authority for personal benefit, and draw on Weber’s three ideal-types of legitimate authority to develop a theoretical model to better understand the antecedents of different types of organizational corruption. Specifically, we examine the types of business misconduct that organizational leaders are likely to engage in, contingent on their legitimate authority, (...) motives, and justifications. We conclude by suggesting managerial implications of our theoretical model and propose directions for future research. (shrink)

The rise in ethical and social responsibility awareness in contemporary businesses has led to assumptions that the associated behaviours would enable competitive advantage to be attained as a firm distinguishes itself from its competitors through such practices. This paper reports on a study conducted on the prevalence of such practices among entrepreneurial ventures in an emerging economy (Malaysia), and the effect of such practices on both financial and non-financial performance. A sequential inter-method mixing design was employed in which during stage (...) 1, a series of semi-structured interviews with ten Malaysian SME founder-owners were conducted. Stage 2 involved a survey in which a total of 212 usable questionnaires were received. The results of the first phase of the research (qualitative) found evidence that entrepreneurial ventures in Malaysia do generally engage in both ethical and socially responsible practices. The subsequent model testing using SEM, however, revealed that while ethical practices were positively associated with venture performance, socially responsible practices were not. This may indicate that while entrepreneurial ventures in emerging economies like Malaysia become quickly aware of the more serious consequences of not adopting ethical practices, the concern for social issues may still be lacking, i.e., in terms of motivations, they may be closer to the profitable end of the philanthropy versus profitability spectrum. While the findings may be equivocal, we believe that the paper makes the following two significant contributions: (1) it provides an empirical test of the importance of ethical and socially responsible practices to entrepreneurial venture performance and (2) it furthers understanding of how and why this may be different in an emerging economy context. (shrink)

Recognizing the immense purchasing power of children, marketing researchers often gather information from them. Given the vulnerability of these children as research subjects, this paper explores the different ethical standards that marketing researchers could adopt in their research efforts. The Paternalistic Ethical Standard and the Limited Paternalistic Ethical Standard are discussed and the ethical quandary known as the Pontius Pilate Plight is identified in the context of the latter standard. An enhanced version of the Limited Paternalistic Standard is suggested as (...) an ethical guide for marketing researchers. Based on interviews with professional marketing researchers to gauge the applicability of the proposed standard, managerial implications are identified. (shrink)

In recent years, international economic pressures have induced Nigeria to adopt a program of economic liberalization and deregulation. Advocates of the reforms tout their potential not only for generating greater economic growth, but also for contributing to more responsible corporate governance. Sceptics abound. This paper provides an account of the nature of corporate governance in Nigeria and investigates the prospects for recent reforms contributing to more responsible governance and development.

The author examines empirically the extent to which marketing professionals of different organizational ranks (lower versus upper) and roles (executive versus research) differ in ethical judgments. For organizational rank, the results indicate that marketing professionals of lower organizational rank do not differ from those of upper organizational rank in ethical judgments. For organizational role, the results suggest that marketing professionals of executive role differ in an overall sense from marketing professionals of research role in ethical judgments. In general, marketing professionals (...) of executive role reflect higher ethical judgments than those of research role. (shrink)

The author examines, in the context of Litwin and Stringer''s (1968) operationalization, the influence of social inclusion (organizational warmth and organizational identity) as a marketing ethics correlate. The results indicate that both organizational warmth and organizational identity underlie marketing professionals'' ethical behavior. Furthermore, the influence pattern for each variable is consistent witha priori hypothesis.

The study reported here examines, in the context of Crawford's (1970) items, differences in research ethics attitudes among marketing professionals in Australia, Canada, Great Britian, and the United States. The study results indicate the lack of significant differences in research ethics attitudes among marketing professionals in the four countries. This finding is interpretable as implying the generalizability of the results of previous research ethics studies involving domestic (United States) marketing professionals as respondents.

The study examines, in the context of Crawford's (1970) study items, the influence of non-anonymity deriving from feedback of research results on marketing professionals' research ethics judgements, particularly that of response patterns (social desirability of responses) and item omissions. The results indicate that such non-anonymity does not significantly influence the social desirability of responses or item omissions — thus suggesting the appropriateness of its use to stimulate research ethics responses.

s With the unprecedented increase in the number of females holding executive positions in business, there has arisen interest in issues pertaining to the role of women in business organizations, including that of malefemale differences in ethical attitudes/behavior. To add to the research evidence on the issue, this paper examines differences in research ethics judgments between male and female marketing professionals. The results indicate that female marketing professionals evince higher research ethics judgments than their male counterparts.

The authors examine empirically the influence of personal and organizational values on marketing professionals'' ethical behavior. The results indicate that personal and organizational values underlie differences in marketing professionals'' ethical behavior, albeit small terms of the proportion of explained variance. The results also suggest the relationship between organizational values and ethical behavior to be significant. However, the same is not the case for the relationship between personal values and ethical behavior.

This article explores the ethics sensitivity and awareness of a sample of employees in six organizations in Kuwait. We identify which sorts of questionable organizational behaviors are believed to be most unethical by these employees, as well as which behaviors are reported to occur most often within the organizations. On the whole, the employees evidence a high level of ethical sensitivity, perceiving the moral hazards of all of the behaviors presented to them. At the same time, the reported occurrence of (...) these behaviors within the sampled organizations is relatively high. We produce conclusions about the correspondence between moral theory and moral practice within the Kuwaiti workplace. We find a basic correspondence between what is believed to be wrong within these organizations, and the types of unethical behavior reported within them. In general, behaviors thought to be most unethical occur less frequently within the organizations. (shrink)

A new form of software piracy known as digital piracy has taken the spotlight. Lost revenues due to digital piracy could reach $5 billion by the end of 2005.Preventives and deterrents do not seem to be working – losses are increasing. This study examines factors that influence an individual’s attitude toward pirating digital material. The results of this study suggest that attitude toward digital pirating is influenced by beliefs about the outcome of behavior (cognitive beliefs), happiness and excitement (affective beliefs), (...) age, the perceived importance of the issue, the influence of significant others (subjective norms), and machiavellianism. Given these results, measures can be developed which could alter attitudes toward digital piracy. (shrink)

This study is carried out to assess the state of business ethics in New Zealand organisations from the point view of middle and lower level managers. The survey results clearly indicate that companies in New Zealand give low priorities to ethics with other values in the corporate culture. A significant number of respondents also believe that pressures from the top to achieve results and the organisational climate and ruthless competition help create an unethical environment. A greater emphasis on ethical content (...) in the business curricula has been overwhelmingly supported by the respondents. Moreover, the majority of respondents also think that the ethical standard in New Zealand businesses has declined in the past decade.Finally, a number of suggestions have been put forward by the respondents to develop and maintain a high standard of ethical environment. These include mandatory moral/ethical education both in the educational institutions and in commerce and industry, commitment of top management and written and published code of ethics. (shrink)

The main objective of this paper is to assess the attitude of a group of Malaysian business students towards business ethics. The survey results indicate that the respondents in general are of the opinion that the businesses in Malaysia consider ethics as secondary. A greater emphasis on ethical values in the business curricular has been strongly supported by the respondents. Moreover, the majority of the respondents believe that moral/ethical education and top management attitudes are the most important factors influencing ethical (...) standards in business practices. (shrink)

The main objective of this study is to assess the state of business ethics in New Zealand organisations. The survey results suggest that top New Zealand companies give low priorities to ethical values. A number of suggestions have been put forward by the respondents to improve the corporate ethical environment. These include commitment of top management, written and published codes of ethics, comprehensive accounting standards and annual reporting and monitoring and an efficient legal and education system.

A comparative study of business related values among business students was conducted over the last 10 years in two neighbouring countries. Although Estonia and Finland are culturally related, according to an empirical study of managerial values, including the ethical values of business students, the two countries display significant differences. During the last decade, Estonia has changed from being a country characterised by an authoritarian, centralized, totalitarian state socialism, to a democratic country with a free market economy and different attitudes and (...) values. At the same time Finland has experienced almost a century of capitalism and democracy. It is argued that the differences in values exhibited by these two countries could be explained by using the institutional and historical context. The authors propose a model of value hierarchies in relation to institutionalism. (shrink)

This study contributes to our understanding of how work-related values, including ethics, are connected with the readiness to change in Estonian organizations. Research in Estonian companies involved 747 respondents. The author examined the influence of work-related values on attitude towards change and organizational learning. Empirical research in Estonian organizations indicates that work-related values predict attitude towards change and organizational learning. This study indicates the need for ethical conduct to achieve a competitive advantage in Estonia. Guidelines for managers and a model (...) of value-based change management are subsequently developed. (shrink)

This paper compares ethics in countries with different cultural dimensions based on empirical data from 12 countries. The results indicate that dimensions of national culture could serve as predictors of the ethical standards desired in a specific society. The author divided societal cultural practices into desired and undesired practices. According to this study, ethics could be seen as the means for achieving a desired state in a society: for reducing some societal characteristics and increasing others. Finally, a model of the (...) impact of cultural dimensions on desired ethical standards is proposed. (shrink)

During the last decade and a half, Estonia has concentrated predominantly on economic development in its narrowest sense. Currently, the emphasis is gradually moving towards a broader approach, including an increasingly social agenda. The research question here concerns the awareness of corporate social responsibility among Estonian owners and managers. Empirical research in Estonia indicates that there has been a shift towards recognizing the importance of social responsibility, but this primarily concerns the “lower layers” of social responsibility, recognizing the importance of (...) economic responsibility and in some respects also public responsibility. Responses in interviews show a certain amount of personal initiative, but these are single examples rather than a general trend and are not enough to change the overall picture. Still, in any assessment of the current situation regarding social responsibility in Estonia, emphasis should be laid on the fact that changes are taking effect and will continue to do so. In transition economies, including Estonia, we should not overlook the fact that, at least in the early years of transition, the focus is on a rapid economic development where the social side will inevitably be left in the background and economic development will take place at the expense of social and environmental development. (shrink)

This study in 29 Chinese organizations contributes to our understanding about work-related values in China. Empirical research in Chinese organizations indicates differences in work-related values between different age groups. The authors compared people (older age group) with work experience from the pre-reform period – pre-1978 China, with those who started their work life in a society that had already changed and become open to foreign investments (younger age group). The authors created a model of institutionally sensitive work-related values. The results (...) could help multinational companies achieve competitive advantage. (shrink)

The aim of this article is to contribute to understanding the changing role of government in promoting corporate social responsibility (CSR). Over the last decade, governments have joined other stakeholders in assuming a relevant role as drivers of CSR, working together with intergovernmental organizations and recognizing that public policies are key in encouraging a greater sense of CSR. This paper focuses on the analysis of the new strategies adopted by governments in order to promote, and encourage businesses to adopt, CSR (...) values and strategies. The research is based on the analysis of an explanatory framework, related to the development of a relational analytical framework, which tries to analyze the vision, values, strategies and roles adopted by governments, and the integration of new partnerships that governments establish in the CSR area with the private sector and social organizations. The research compares CSR initiatives and public policies in three European countries: Italy, Norway and the United Kingdom, and focuses on governmental drivers and responses. The preliminary results demonstrate that governments are incorporating a common statement and discourse on CSR, working in partnership with the private and social sectors. For governments, CSR implies the need to manage a complex set of relationships in order to develop a win–win situation between business and social organizations. However, the research also focuses on the differences between the three governments when applying CSR public policies. These divergences are based on the previous cultural and political framework, such as the welfare state typology, the organizational structures and the business and social and cultural background in each country. (shrink)

Over the last decade, Corporate Social Responsibility (CSR) has been defined first as a concept whereby companies decide voluntarily to contribute to a better society and cleaner environment and, second, as a process by which companies manage their relationship␣with stakeholders (European Commission, 2001. Nowadays, CSR has become a priority issue on governments’ agendas. This has changed governments’ capacity to act and impact on social and environmental issues in their relationship with companies, but has also affected the framework in which CSR (...) public policies are designed: governments are incorporating multi-stakeholder strategies. This article analyzes the CSR public policies in European advanced democracies, and more specifically the EU-15 countries, and provides explanatory keys on how governments have understood, designed and implemented their CSR public policies. The analysis has entailed the classification of CSR public policies taking into consideration the actor to which the governments’ policies were addressed. This approach to the analysis of CSR public policies in the EU-15 countries leads us to observe coinciding lines of action among the different countries analyzed, which has enabled us to propose a ‹four ideal’ typology model for governmental action on CSR in Europe: Partnership, Business in the Community, Sustainability, and Citizenship, and Agora. The main contribution of this article is to propose an analytical framework to analyze CSR public policies, which provide a perspective on the relationships between governments, businesses, and civil society stakeholders, and enable us to incorporate the analysis of CSR public policies into a broader approach focused on social governance. (shrink)

This paper compares the ethical standards reported by consumers and managers with different attachment styles (secure, preoccupied, fearful, or dismissing). We conducted two studies of consumer ethical beliefs and a third managerial survey. In Study 1, we used a questionnaire that we constructed, and in Study 2, we used the Muncy–Vitell Consumer Ethics Scale. The results in both the studies were consistent and showed that men reported a greater indifference to ethical transgressions than women. Based on the two studies, the (...) results indicate that␣among male consumers, the dismissing participants reported the greatest overall indifference to ethical transgressions and the secure participants expressed the most ethical beliefs. The two intermediate groups did not differ significantly from each other. In Study 1, none of the women consumers reported a dismissing attachment style. Women with a secure style reported more ethical beliefs than those in the other two groups. However, the sample in Study 2 included dismissing women. The dismissing women reported the greatest overall indifference to ethical transgressions and the secure women expressed the most ethical beliefs. The illegal profit subscale described the most severe ethical transgressions, and for both men and women, the secure participants were less apt than the other participants to report a willingness to transgress. In Study 3, the Newstrom and Ruch (1975, MSU Business Topics, Winter, 31) Questionnaire was administered to 227 managers. All four attachment patterns were represented among the participants of both genders. In all cases, the participants with a dismissing attachment style showed the greatest readiness to transgress. (shrink)

THE GODS OF BUSINESS is, as the MIDWEST BOOK REVIEW writes, "A 'must-have' primer for anyone unfamiliar with basic tenets of world religions in today's era of ...

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.

In the last two decades the composition of the labor force in the United States has changed significantly. Today, most employeesare mothers or fathers of children under eighteen in families where both parents are employed or where the employed parent is a single mother. This represents a reversal of the older family ideal in which a father worked to provide income and a mother performed the domestic work that sustained families. The practices of business and much of the attention of (...) business ethicists have assumed the older ideal. However, the wage work of mothers raises serious concerns about how business should view their parent-employees. Business has responded with family friendly corporate policies. This article analyzes these policies in light of two particular values: The social equality of women and the well-being of families. Finding current policies inadequate to meet these values, this paper calls for renewed ethical attention to the issues of time demands on employees and just wages. (shrink)

Business Ethics is designed to serve as a textbook for first year students of MBA and diploma students of management courses. The book provides a deep insight into the crucial role played by ethical choices in managerial decision making within an organization as well as the impact of such decisions on the world at large. Starting with a broad overview of the meaning and scope of ethics and the development of ethical thought, the book puts forward the applications of ethical (...) standards to business areas such as corporate governance, marketing and brand management, advertising, and finance. The discussion shifts to a more human level with the various issues of workplace ethics as well as consumer rights. Special focus is given to ethical choices related to the environment, cyber space and criminal intimidation. Contemporary issues like corporate code of ethics, political correctness and the role played by NPO and NGO in upholding moral values are discussed in detail. Finally, several open-ended issues like Intellectual Property. The book follows a debate-based approach where both for and against views are presented, followed by concept analysis and logical deductions. This approach is well aided with a number of caselets, case studies and end chapter review questions. This book will also serve as a useful reference for BBA faculty and professionals. (shrink)

A review of research addressing correlates of attitudes toward social responsibility of business leads to the conclusion that little can currently be confidently stated concerning such correlates and that progress toward the understanding of relevant linkages is largely dependent on the development of psychometrically adequate indices of social attitudes. Using a sample of high level executives from a large number of industries, this paper examines various psychometric properties of an index of social attitudes, the Social Attitudes Questionnaire (SAQ) (Aldag and (...) Jackson, 1977) and considers relationships of SAQ subscale scores to multiple measures of firm size and economic performance and to managerial demographic and social psychological characteristics. Results of this study reflect favorably on psychometric integrity of the SAQ and reveal a complex set of correlates of its subscales. (shrink)

Extensive and growing use of electronic performance monitoring in organizations has resulted in considerable debate. Advocates of electronic monitoring approach the debate in teleological terms arguing that monitoring benefits organizations, customers, and society. Its critics approach the issue in deontological terms countering that monitoring is dehumanizing, invades worker privacy, increases stress and worsens health, and decreases work-life quality. In contrast to this win-lose approach, this paper argues that an approach which emphasizes communication in the design and implementation of monitoring systems (...) offers a win-win solution that should satisfy both deontological and teleological ethicists. (shrink)

Since the passage of Title VII of the Civil Rights Act of 1964 and more recent Federal legislation, managers, regulators, and attorneys have been busy in sorting out the legal meaning of fairness in employment. While ethical managers must follow the law in their hiring practices, they cannot be satisfied with legal compliance. In this article, we first briefly summarize what the law requires in terms of fair hiring practices. We subsequently rely on multiple perspectives to explore the ethical meaning (...) of fairness in hiring. Ethical fairness underlies the law and regulations in this area, but goes beyond them as well. We conclude by demonstrating that ethical hiring practices enable managers to make better hiring decisions. (shrink)

In recent years, the practices of work organizations have raised increasing concerns regarding individual privacy at work. It is clear that people expect and value privacy in their personal lives. However, the extent to which privacy perceptions influence individuals’ work attitudes is less clear. Research has explored the extent to which employee perceptions of privacy derive from characteristics of the programs themselves. However, there is a paucity of research that examines how the characteristics of the individual employee may influence perceptions (...) of these programs. In this study we seek to shed light on this issue, as we examine how the individual ethical orientation of employees influences perceptions of a variety of human resource programs that have the potential to be perceived as invasive. Results indicate that ethical orientation exerts direct effects on perceived invasiveness of programs and exerts both direct and indirect effects on perceived appropriateness of programs. Implications for research and for managers adopting privacy-related programs are discussed. (shrink)

Research has demonstrated that employee reactions to monitoring systems depend on both the characteristics of the monitoring system and how it is implemented. However, little is known about the role individual differences may play in this process. This study proposes that individuals have generalized attitudes toward organizational control and monitoring activities. We examined this argument by assessing the relationship between employees’ baseline attitudes toward a set of monitoring and control techniques that span the employment relationship. We further explore the effects (...) of employees’ generalized attitudes toward monitoring and their individual ethical orientations on their attitudinal reactions to an Internet monitoring system implemented in their workplace. Results of a longitudinal study indicate that as expected, prior beliefs and ethical orientation interact to affect employees’ reactions to monitoring systems. Implications for research and practice are discussed. (shrink)

Ethical business practices have been widely prescribed, but why? Consumers views on unethical business practices have been studied, but possibly more important to marketers and researchers are consumer actions and reactions to unethical business practices and the businesses themselves. Do consumers react negatively, or in such a way as to "punish" the unethical business? If so, what is the nature and extent of the punishment? This research seeks answers to these questions by examining consumer reactions, such as complaining and switching, (...) to instances of unethical business practices. Using equity theory, this research proposes that consumers should be willing to tolerate some unethical behavior as long as they feel their investments and outcomes remain proportionately equal. Consumers who perceive that their outcome/investment ratio is proportionately unequal to their comparison other will respond by switching or complaining. In this research consumers were exposed to two types of service failures with different levels of service recovery in vignettes. Costs incurred by the consumer during the service transaction were also manipulated in the vignettes. Significant differences were found for complaint behavior in the failure recovery vignettes tested. Specifically, voice complaint was higher in the high cost service encounters in both types of services tested. The recovery attempt used (ethical, unethical, or none) led to significance differences in the variables of complaint, voice complaint, satisfaction, and quality. Higher satisfaction and quality ratings were found for the ethical recovery attempt and higher intentions to use complaint and voice complaint in the unethical recovery attempts. One significant interaction between cost and recovery attempt was found. Intentions to use voice complaint were higher in the high cost situations of ethical and unethical recovery, while approaching equality at the no recovery attempt. (shrink)

In this paper I describe and analyze an economic situation involving two competitive organizations. I put forth the argument that because of the systemic nature of decision making relative to managing the requirements of utilizing a descriptive equation that determines how many people an economic system can support, that even if all the players in the situation act ethically, the results will still be harmful, and necessarily so, to the system and to many innocent people. I will demonstrate that harming (...) innocent people is required and morally defensible given the choices available. The best one can do is slow down the increase in disutilities and possibly operate the system within a range of acceptable behavior that minimizes the resulting harm to innocent people, even if we cannot entirely remove this harm. In this context ethics becomes the study of the acceptable as opposed to the preferable. (shrink)

There is a systemic condition inherent in contemporary markets that compel managers not to pursue more morally preferable initiatives if those initiatives will require actions that conflict with profit maximization. Normative arguments for implementing morally preferable practices within the existing system fail because they are insufficient to counter-act the systemic conditions affecting decision-making that is focused on maximizing profit as the primary operational value. To overcome this constraint we must elevate a more normatively preferable value, ‚ideal environmental sustainability,’ to the (...) level of being the primary filtering value through which other competing values are evaluated, prioritized, and implemented. In order for this to occur in practice, a change must be made relative to the laws, rules, and regulations that define and guide the market. This can be done by suitably defining the epistemic constraint of impartiality utilizing Rawls’ notion of a ‚veil of ignorance’ as a heuristic device. (shrink)

Managers have the primary role responsibility to protect and promote the economic viability of their organizations. Utilizing a formula that demonstrates the inherently unstable nature of economic systems, I argue that managers are sometimes morally required to make adjustments that result in harming people who work for them in order to reestablish the equilibrium necessary to remain viable. The question of who is going to be harmed and how this harm is morally justified is the focal point of this paper. (...) I argue that utilizingtraditional methods associated with our common morality cannot solve the issue of who is going to be harmed, and that the traditionalmethods for reestablishing equilibrium promote a distribution of harm that cannot be justified from a rationally defensible moral pointof view. Utilizing the constraint of impartiality and the concept of the health of the organization, I argue that an equal distribution of harmamong everyone affected by the decision is the only one that is rationally defensible. (shrink)

Work values and the loyalty (commitment to hard work, profession, and principles) of 762 managers in Kuwait were investigated. The results indicated that managers scored high on work values and loyalty. Furthermore, there was a high positive correlation between the two measures. Demographic and organizational variables had significant influence on managerial orientations. Specifically, expatriates and female managers showed a high commitment to work values and loyalty.

Managerial value systems along with individualism-collectivism concepts were examined among 768 managers in Iran. The sample was randomly selected from state, private, and mixed organizations. The participants ranked conformist and sociocentric values high. In addition, the participants displayed a high tendency toward collectivism and a weak commitment to individualism. Furthermore, existential value was highly correlated with individualism-collectivism measures.

The current debate on “free agency” seems to highlight the romantic aspects of free agent and considers it a genuine response to changing economic conditions (e.g., high-unemployment rate, importance of knowledge in the labor market, the eclipse of organizational loyalty, and self pride). Little attention, if any, has been given to the religious root of the free agency concept and its persistent existence across history. In this paper, the current discourse on free agency and the conditions that have led to (...) its emergence are briefly discussed. The paper focuses on the theological perspectives of Judaism, Christianity, and Islam on the concept. Implications for management and business organizations are provided. (shrink)

Power and authority in terms of the Ten Commandments (TCs) are discussed. The paper reviews the TCs in Christianity, Judaism, and Islam. The treatment and basis for power and authority in each religion are clarified. Implications of power and authority using the perspective of the TCs are provided. The paper suggests that in today's business environment people tend to be selective in identifying only with certain elements of the TCs that fit their interest and that the TCs should be viewed (...) as general moral guidelines. (shrink)

The rise of international businesses' self-regulation regimes offers a challenging case study for those interested in the relationship between ethics and business. Regulation without external enforcement has always been a focal point for explorations into the relationship between morality and economic behaviour. Are self-regulatory arrangements viable? Are they stable? What are the factors and conditions that determine their stability and viability? Using these questions as a vehicle, the article explores the functional anatomy of self-regulation. As such, it is an attempt (...) to offer a broad conceptual picture in a way that creates a bridge between the current developments in the literature and the intellectual traditions that have framed the setting of the current intellectual efforts exploring the issue. Therefore the article may be seen as a conceptual and theoretical introduction to the topic as well as an attempt to frame it in a way that connects and integrates it to a broader intellectual perspective. (shrink)

A random sample of 207 national business consultants is employed to test the effects of individual values and professional ethics on consulting behavior. The results suggest that the individual values held by consultants are positively correlated with professional ethics, but are negatively correlated with consulting behavior. Moreover, there appears to be no significant relationship between the professional ethics of consultants and business consulting behavior. Findings and issues regarding the effectiveness of codes of ethics and implications for both the provider and (...) recipient of professional consulting services are discussed. (shrink)

In 1990, the Federal Trade Commission (FTC) issued a consent order to the American Institute of Certified Public Accountants (AICPA). The order decreed the AICPA to lessen its longstanding ethics code which had until then banned the receipts of commissions, referral fees and contingent fees. The FTC alleged that the AICPA banned receipt of the fees as an attempt to restrain trade (FTC, 1990).In the present study, we sought to determine if CPAs'' preference for bans on commissions, referral fees and (...) contingent fees is related to their moral reasoning whereby CPAs perceive the bans to serve as a means of resolving ethical issues. While determining this matter cannot prove whether the bans did or did not actually result in restrained trade, it can offer insight into the perceived ethical importance to CPAs of the overturned rules. Based on a random sample of AICPA members and using Rest''s Defining Issues Test (DIT) to measure moral reasoning, we did not find a CPA''s moral reasoning to be related to his/her preference for ethics rules which ban commissions, referral fees or contingent fees. However, our results did indicate that most CPAs prefer banning commissions, referral fees and contingent fees, with those CPAs holding a higher financial stake in public accounting, namely partners, favoring banning referral fees and contingent fees significantly less than CPAs with a lesser stake. Further, we noted a significant negative relationship between financial stake and moral reasoning. These results seem to suggest that self-interest among CPAs may influence their moral reasoning.Further study is needed to examine the relationship between self-interest of CPAs and their moral reasoning. If self-interest clouds moral judgments made by CPAs, capital markets are in danger. Rendering an independent audit opinion must exclude self-interest. (shrink)

On the one hand, bluffing in business seems to bear a strong resemblance to lying, and therefore might be thought to be prima facie impermissible. On the other, many people have the intuition that bluffing is an appropriate and morally permissible negotiating tactic. Given this tension, what is the moral standing of bluffing in business? In this paper, I will consider influential accounts of both Albert Carr and Thomas Carson, and I will present my criticisms thereof. Drawing off of these (...) accounts, I will then develop my own argument as to why bluffing in business is morally permissible, which will be that bluffing is a practice that should be endorsed by all rational negotiators. (shrink)

Business Ethics is a three-volume collection which provides students and researchers with the historically most important of the classic articles in business ethics, as well as the best of the contemporary and trendsetting work in this burgeoning area. The collection will serve as a sourcebook for academics and researchers entering or already established in the area of business ethics. The editors bring together a breadth of articles across business ethics, with an orientation that is diverse as well as international. The (...) three volumes are well organized to focus on the main topics in business ethics and are divided into corporate social responsibility , the employee-employer relationship, and distributive justice & dilemmas. Courses and research programmes in business ethics have multiplied in recent years alongside a growing concern with the ethical practices of business. This multi-volumed work provides a focused and well-balanced reference for academics and their students to acquire a thorough understanding of this now central topic. The SAGE Library in Business and Management is a first-class series of major works that brings together the most influential and field-defining articles, both classical and contemporary, in a number of key areas of research and inquiry in business and management. Each multi-volume set represents a collection of the essential published works collated from the foremost publications in the field by an Editor or Editorial Team of renowned international stature. They also include a full introduction, presenting a rationale for the selection and mapping out the discipline’s past, present and likely future. This series is designed to be a ‘gold standard’ for university libraries throughout the world with a programme or interest in business and management studies. (shrink)

The orientation of this paper is that there is no special science of "business ethics" any more than there is one of "medical ethics" or "legal ethics". While there may be issues that arise in medicine or law that require special treatment, the ways of relating to such issues are derived from a basic ethical stance. Once one has evolved such an ethical stance and thus has incorporated a fundamental mode of relating to her or his fellow human beings, the (...) "how" to deal with various ethical "issues" will follow as a natural consequence of one's ethical stance or modality. It is not necessary, in the formation of one's fundamental ethical stance to know if one is a utilitarian or a deontologist. It is doubtful whether Buddha knew what kind of ethics he was practising. If one conceives of ethics as something extrinsic to various disciplines and attempts to first practise a discipline and then to apply ethics to modify the results of that discipline it is entirely possible that conflicts will result between what is perceived of as the proper pursuit of that discipline and the ethical considerations. The argument of this paper is that it is more efficacious (in addition to being more true) to take ethical considerations into account in the construction of the definition of the discipline. This paper is devoted to showing that business and ethics are not two different and competing fields of interest (thus requiring a discipline of business ethics to be grafted onto the study of business enterprise), but that ethical concerns are part and parcel of the very concept of a business enterprise and the internal operation of a business organization. (shrink)

How can a business institution function as an ethical institution within a wider system if the context of the wider system is inherently unethical? If the primary goal of an institution, no matter how ethical it sets out to be, is to function successfully within a market system, how can it reconcile making a profit and keeping its ethical goals intact? While it has been argued that some ethical businesses do exist, e.g., Johnson and Johnson, the argument I would like (...) to put forth is that no matter how ethical a business institution is, or how ethical its goals are, its capacity to act in an ethical manner is restricted by the wider system in which it must operate, the market system. Unless there is a fundamental change in the notion of the market system itself, the capacity for individual businesses to act in an ethical manner will always be restricted. My argument is divided into two parts. The first part is to show the inherent bias towards unethical outcomes that is inherent in the market system. The second part is to suggest how to reorient the general economic framework in order to make ethical institutions more possible. The question then becomes, how to define economic behavior in terms other than competition for profit. (shrink)

This study provides an evaluation of ethical business perception of busIness students from three countries: Australia, Taiwan and the United States. Although statistically significant differences do exist there is significant agreement with the way students perceive ethical/unethical practices in business. The findings of this paper indicate a universality of business ethical perceptions.

This study evaluates responses to the Real Estate Ethical Code. Voice Stress Analysis (VSA) is used to evaluate the responses of real estate sales people to ethically-based questions. The process and the responses given enabled the authors to gain insight into pressure-causing ethical situations and to explore new uses of VSA. Some respondents were stressed while following the ethical code guidelines. Others showed no stress about breaking the formal code. The study reaffirms that the presence of formal ethical guidelines does (...) not assure that the rules will be willingly followed. (shrink)

A sample of 227 business students from the United States and Australia was used to evaluate factors that impact business students' ethical orientation and factors that impact students' perceptions of ethical classroom behaviors. Perceptions of classroom behaviors was considered a surrogate for future perceptions of business behaviors. Independent factors included age, gender, religious orientation, country of origin, personality, and ethical orientation. A number of factors were related to ethical orientation, but only age and religious orientation exhibited much impact upon perceptions (...) of ethical classroom behaviors. (shrink)

In this essay we defend the view that from a purely rule-utilitarian perspective there is no sound argument favoring the immorality of hostile liquidating buyouts. All arguments favoring such a view are seriously flawed. Moreover, there are some good argument favoring the view that such buyouts may be morally obligatory from the rule-utilitarian perspective. We also defend the view that most of the shark repellents in the market are immoral. If we are right in our arguments there is no justification, (...) moral or otherwise, for any form of legislation that would constrain the practice of hostile liquidating buyouts. (shrink)

The frequency of earnings restatements has been increasing over the last decade. Restating previous earnings erodes perceived trustworthiness and competence of management, giving firms strong incentives to take actions to enhance perceived credibility of future financial reports [Farber, D. B.: 2005, The Accounting Review 80(2), 539–561.]. Using an experimental case, we examine the ability of post-restatement actions taken by a firm to positively influence non-professional investors’ perceptions of management’s financial reporting credibility. Our examination considers credibility judgments following two types of (...) restatements – those resulting from fraud in which the character, ethics, and values of an organization may be called into question [cf. Copeland, Jr., J. E.: 2005, Accounting Horizons 19(1), 35–43.], and those resulting from non-fraud (i.e., aggressive accounting). Based on the information in the experimental case, non-professional investors take the role of potential equity investors and make a judgment about management’s financial reporting credibility after reviewing a set of post-restatement actions taken by a firm. The possible actions include changes in four corporate governance mechanisms (i.e., internal audit function, external audit firm, board of directors, CFO) and a buyback of company stock. Our results provide an important contribution to the literature by demonstrating that among non-professional investors, perceptions of management’s financial reporting credibility are affected both by the post-restatement action taken and the nature of the restatement. These results offer insight into the formation of a key credibility judgment made by non-professional investors following a trust-destroying event, an earnings restatement. (shrink)

Flexible work arrangements (FWAs) are widely offered in public accounting as a tool to retain valued professional staff. Previous research has shown that participants in FWAs are perceived to be less likely to succeed in their careers in public accounting than individuals in public accounting who do not participate in FWAs (Cohen and Single, 2001). Research has also documented an increasing backlash against family–friendly policies in the workplace as placing unfair burdens on individuals without children. Building directly on a previous (...) study in this journal (Cohen and Single, 2001), this study addresses the issue of whether the documented perceptions toward FWA participants are the result of electing to take part in the FWA or the result of bias against employees with children. The research questions are addressed in a 3 × 2 experimental setting in which we manipulate FWA participation, along with family status and gender of a hypothetical manager in a public accounting firm. Our findings indicate that FWA participants are viewed as less likely to advance and as less committed than individuals without children or individuals who had children but who were not taking part in a FWA. Male FWA participants are viewed as less likely to succeed than female FWA participants. This effect appears to arise from a perception that FWA participants are willing to make sacrifices in their careers to accommodate family needs and thus may not be as committed to making the sacrifices perceived as necessary to meet the rigorous demands of the public accounting environment. This raises the ethical question of what could be done to change the culture in public accounting to foster a substantive support system for individuals who want to balance a family and a career. (shrink)

Kant is gaining popularity in business ethics because the categorical imperative rules out actions such as deceptive advertising and exploitative working conditions, both of which treat people merely as means to an end. However, those who apply Kant in this way often hold businesses themselves morally accountable, and this conception of collective responsibility contradicts the kind of moral agency that underlies Kant's ethics. A business has neither inclinations nor the capacity to reason, so it lacks the conditions necessary for constraint (...) by the moral law. Instead, corporate policies ought to be understood as analogous to legal constraints. They may encourage or discourage certain actions, but they cannot determine a person's maxim - which for Kant is the focus of moral judgment. Because there is no collective intention apart from any intentions of the individual agents who act as members of the corporation, an organization itself has no moral obligations. This poses a dilemma: either apply the categorical imperative to the actions of particular businesspeople and surrender the notion of collective responsibility, or apply a different moral theory to the actions of businesses themselves. Given the diffusion of responsibility in a bureaucracy, the explanatory usefulness of collective responsibility may force business ethicists to abandon Kant's moral philosophy. (shrink)

Fair trade is an ethical alternative to neoliberal market practices. This article examines the development of the fair trade movement, both in Mexico and abroad, beginning with the experience of UCIRI (Unión de Comunidades Indígenas de la Región del Istmo – Union of Indigenous Communities of the Isthmus Region), an association of small coffee growers in Mexico and a main actor in the creation of the first fair trade seal in the world, Max Havelaar, in 1988. Future success of the (...) fair trade movement depends mainly on resolving the tension between the capitalist business goals and the activist transformation goals of its diverse practitioners. (shrink)

Using evidence from experimental psychology, some social psychologists, moral philosophers and organizational scholars claim that character traits do not exist and, hence, that the philosophical tradition of virtue ethics is empirically inadequate and should dispose of the notion of character to accommodate the empirical evidence. In this paper, I systematically address the debate between dispositionalists and situationists about the existence, status and properties of character traits and their manifestations in human behavior, with the ultimate goal of responding to the question (...) whether virtue ethicists need to abandon the very enterprise of building a character-based moral theory in business ethics and organizational behavior. In the course of this paper, I shall defend the claim that the situationist argument relies on a misinterpretation of the experimental evidence. (shrink)

The moral justification of intellectual property is often called into question when placed in the context of pharmaceutical patents and global health concerns. The theoretical accounts of both John Rawls and Robert Nozick provide an excellent ethical framework from which such questions can be clarified. While Nozick upholds an individuals right to intellectual property, based upon its conformation with Lockean notions of property and Nozicks ideas of just acquisition and transfer, Rawls emphasizes the importance of basic liberties, such as an (...) individuals right to health, superceding such secondary rights as intellectual property rights. From a policy perspective, patent protection for pharmaceutical products necessarily entails the balancing of corporate intellectual property interests and public interests in healthcare. The moral dilemma that occurs when these two interests clash is not easily resolved. Aside from corporate and public interests, the state maintains an interest in creating and preserving policies that regulate the moral dilemma itself. This paper analyzes the economic and ethical factors surrounding the production and distribution of the anti-HIV medication, AZT. Potential policy implications and recommendations are also discussed. (shrink)

Corporate social responsibility (CSR) is increasingly becoming a popular business concept in developed economies. As typical of other business concepts, it is on its way to globalization through practices and structures of the globalized capitalist world order, typified in Multinational Corporations (MNCs). However, CSR often sits uncomfortably in this capitalist world order, as MNCs are often challenged by the global reach of their supply chains and the possible irresponsible practices inherent along these chains. The possibility of irresponsible practices puts global (...) firms under pressure to protect their brands even if it means assuming responsibilities for the practices of their suppliers. Pressure groups understand this burden on firms and try to take advantage of the situation. This article seeks to challenge the often taken-for-granted-assumption that firms should be accountable for the practices of their suppliers by espousing the moral (and sometimes legal) underpinnings of the concept of responsibility. Except where corporate control and or corporate grouping exist, it identifies the use of power as a critical factor to be considered in allocating responsibility in firm-supplier relationship; and suggests that the more powerful in this relationship has a responsibility to exert some moral influence on the weaker party. The article highlights the use of code of conducts, corporate culture, anti-pressure group campaigns, personnel training and value reorientation as possible sources of wielding positive moral influence along supply chains. (shrink)

Drawing from the varieties of capitalism theoretical framework, the study explores the home country influences of multinational corporations (MNCs) on their corporate social responsibility (CSR) practices when they operate outside their national/regional institutional contexts. The study focusses on a particular CSR practice (i.e. corporate expressions of code of conducts) of seven MNCs from three varieties of capitalism – coordinated (2), mixed (2) and liberal (3) market economies – operating in the oil and gas sector of the Nigerian economy. The study (...) concludes that the corporate codes of conduct of these MNCs operating in Nigeria, to a large extent, reflect the characteristics of their home countries' model of capitalism, respectively, albeit with certain degree of modifications. The home countries' model of capitalism is also found to have implications for the degree of adaptability of these MNCs' CSR practices to the Nigerian institutional context – with the mixed market economy model of capitalism adapting more flexibly than the liberal and coordinated market economies, respectively. The findings of this study will contribute to the emerging literature on the institutional embeddedness of CSR practices in transnational social spaces, understanding of varieties of capitalism, and CSR in developing economies. (shrink)

Recent downward trends in corporate giving have renewed interest in the factors that shape corporate philanthropy. This paper examines the relationships between charitable contributions, firm size and industry. Improvements over previous studies include an IRS data base that covers a much broader range of firm sizes and industries as compared to previous studies and estimation using an instrumental variable technique that explicitly addresses potential simultaneity between charitable contributions and profitability. Important findings provide evidence of a cubic relationship between charitable giving (...) and firm size and evidence of strong industry effects. The plus-minus-plus regression coefficient sign pattern for the cubic firm size model suggests that small and large firms give more relative to total receipts with lower giving ratios among medium size firms. One interpretation for this finding is that small firms are close to the communities they serve while high visibility creates a need for large firm philanthropy. Strong industry effects provide evidence of inter-industry differences in giving culture and/or different public relations requirements across industries. (shrink)

A critical literature on mulitnational corporate social responsibility has developed in recent years. Many authors addressed the issue in the Third World countries. This paper reviews the literature, focusing on the relationship between the multinational corporations (MNCs) and Third World governments in fulfilling the social responsibility, based on the underlying ethical imperative.There is a growing consensus that both corporations and governments should accept moral responsibility for social welfare and individual interests in their economic transactions. A collaborative relationship is proposed where (...) the MNCs share information based on global experiences and offer input into host government developmental policies, and aid their implementation. The government, in turn, provides a reasonable regulatory environment. This calls for ongoing interactions among officials at all levels of the two institutions, with the local corporate subsidiary playing a pivotal role. The desired conduct of the parties is reinforced by international organizations and other constituents, representing common human concerns across cultures. These relationships are examined and an agenda for policy and action by the MNCs and the Third World governments is developed. (shrink)

Over the past two decades, Victor and Cullen’s (Adm Sci Q 33:101–125, 1988 ) typology of ethical climates has been employed by many academics in research on issues of ethical climates. However, little is known about how managerial practices such as communication and empowerment influence ethical climates, especially from a functional perspective. The current study used a survey of employees from Taiwan’s top 100 patent-owning companies to examine how communication and empowerment affect organizational ethical climates. The results confirm the relationship (...) between these two managerial practices and organizational ethical climates. We discuss our results and their implications for both future academic research and practice. (shrink)

This research examines how the fit between employees moral development and the ethical work climate of their organization affects employee attitudes. Person-organization fit was assessed by matching individuals' level of cognitive moral development with the ethical climate of their organization. The influence of P-O fit on employee attitudes was assessed using a sample of 304 individuals from 73 organizations. In general, the findings support our predictions that fit between personal and organizational ethics is related to higher levels of commitment and (...) job satisfaction and lower levels of turnover intent. Ethical P-O fit was related to higher levels of affective commitment across all three ethical climate types. Job satisfaction was only associated with ethical P-O fit for one of the three P-O fit variables and turnover intentions were significantly associated with two of the ethical P-O fit variables. The most consistent effect was found for the Conventional - Caring fit variable, which was significantly related to all three attitudes assessed. The weakest effect was found for the Preconventional - Instrumental fit variable, which was only predictive of affective commitment. The pattern of findings and implications for practice and future research are discussed. (shrink)