We examined Confucian moral philosophy, primarily the Analects, to determine how Confucian ethics could help managers regulate their own behavior (self-regulation) to maintain an ethical standard of practice. We found that some Confucian virtues relevant to self-regulation are common to Western concepts of management ethics such as benevolence, righteousness, wisdom, and trustworthiness. Some are relatively unique, such as ritual propriety and filial piety. We identify seven Confucian principles and discuss how they apply to achieving ethical self-regulation in management. In addition, (...) we examined some of the unique Confucian practices to achieve self-regulation including ritual and music. We balanced the framework by exploring the potential problems in applying Confucian principles to develop ethical self-regulation including whistle blowing. Confucian moral philosophy offers an indigenous Chinese theoretical framework for developing ethical self-regulation in managers. This is relevant for managers and those who relate to managers in Confucian-oriented societies, such as China, Korea, Japan, and Singapore. We recommend further research to examine if the application of the Confucian practices outlined here actually work in regulating the ethical behavior of managers in modern organizations. (shrink)

This research aims to fill a major gap in the relevant literature on small businesses in developing countries, specifically concerning the development of models to better explain economic and environmental performance as a result of environmental compliance, thus moving toward an explanation of the sustainable behavior of these businesses. Data from 186 pottery craft businesses located in three Mexican states (Oaxaca, Puebla and Tlaxcala) reveal that environmental compliance significantly influences economic and environmental performance, with the mediating role of environmental innovation, (...) confirming the Porter hypothesis in the context of small businesses in an emerging economy. Environmental compliance is an important factor in improving the economic and environmental performance of small businesses in emerging economies. (shrink)

Design ethics has been offered as a course in undergraduate design programs in Taiwan for over a decade, but research on teaching design ethics and the results of teaching these courses is scant. We conducted two tests to examine the effect of an ethics course, and the differences among the effects of design department, gender, and study year on student opinions regarding ethical design standards at the National Yunlin University of Science and Technology in Taiwan. The participants comprised 934 undergraduates (...) from the five design departments at YunTech’s College of Design from Years 1–4. The results confirmed the effect of an ethics course on student EDS opinions. In addition, we observed significant variations among students according to design departments, suggesting that the characteristics of the design departments also affected students’ EDS opinions. The results indicated that gender did not significantly affect design students’ EDS opinions; however, students in their early years of study produced higher scores than those in their advanced years of study did, based on the six EDS opinions. The implications of these results for teaching design ethics and future research are discussed in this paper. (shrink)

This article makes first use of a set of databases that are authoritative, independent, and consistent to examine an old research question: do firms hurt their financial performance by damaging stakeholder interests? The databases are US government on-line listings of fines for environmental breaches, unsafe workplaces, fraudulent accounting standards, and product recalls. These measures are assumed to proxy for signals to stakeholders of the environmental, social, and governance (ESG) risks in transacting with the firm and appear to have fewer biases (...) than conventional measures of stakeholder standards. Using a sample of all non-financial S& P 500 firms during the most recent 1998-2003 full cycle in the market, after controlling for firm-specific differences, sales margins of firms fell by 0.8% if they announced a product recall and by 0.4% if cited by OSHA for an unsafe workplace; and shareholder return was significantly reduced by an EPA or SEC prosecution. This study links the risk of transaction uncertainty, information signaling theory, and the resource-based view of the firm to company financial performance. Results support the normative assumption that a firm's sales margin will be damaged by unethical treatment of stakeholders as evidenced by ESG breaches, presumably because risk-averse customers and suppliers are alert to signals of counterparty risk. (shrink)

As a field spanning interests among researchers and business professionals, business ethics aims to provide guidance on what can be considered morally right, socially acceptable and legally transparent dealings in the human activity of providing goods or services for trade. Yet, cohesive theory of the ethics of business is lacking, and current ethical practices often fall victim to fluctuating business conditions and circumstances. Thus, stewardship theory is proposed as a more enduring and empowering orientation to more mindful business ethics that (...) is borne out of organizational character, and knowledge stewardship is introduced as a set of practices that can support improved ethical behavior in organizations from an ethos-driven perspective. A definition of knowledge stewardship is provided in this article, and its associated outcomes of authenticity, authority and advocacy are highlighted. Practical recommendations are put forward to assist organizations in their development of stronger stewardship behavior, and exploratory research questions that heighten attentiveness to knowledge stewardship are presented. (shrink)