The project Euroscreen 2 has examined genetic screening and testing with particular reference to implications for insurance, commercialization through marketing of genetic tests direct to the public, and issues surrounding raising public awareness of these and other developments in genetics, including the practical experiment of a Gene Shop. This paper provides a snapshot of the three year project. The study groups work included monitoring developments in different European countries and exploring possibilities for regulation in insurance and commercialization together with public (...) attitudes to regulation. The success or failure of different strategies is not independent of public awareness. Exploration of policy, however, also requires examination of fundamental concepts such as solidarity and geneticization. (shrink)
This paper examines the impact of the level of economic development, income inequality, and five cultural variables on the rate of software piracy at the country level. The study finds that software piracy is significantly correlated to GNP per capita, income inequality, and individualism. Implications for anti-piracy programs and suggestions for future research are developed.
Increasingly research in the field of business and society suggests that ethics and corporate social responsibility can be profitable. Yet this work raises a troubling question: Is it ethical to use ethics and social responsibility in a strategic way? Is it possible to be ethical or socially responsible for the wrong reason? In this article, we define a strategy concept in order to situate the different approaches to the strategic use of ethics and social responsibility found in the current literature. (...) We then analyze the ethics of such approaches using both utilitarianism and deontology and end by defining limits to the strategic use of ethics. (shrink)
The relationship of corporate social responsibility to risk management has been treated sporadically in the business society literature. Using real options theory, I develop the notion of corporate social responsibility as a real option its implications for risk management. Real options theory allows for a strategic view of corporate social responsibility. Specifically, real options theory suggests that corporate social responsibility should be negatively related to the firm’s ex ante downside business risk.
In this article, we examine the relationship of the multinational firm’s market environment, stakeholders, resources, and values to the development of strategic social planning and strategic social positioning. Using a sample of multinational enterprises in Mexico, we examine the relationship of these different ways of conducting social strategy to the creation of value by the firm. The market conditions of munificence and dynamism, and the resource for continuous innovation are found to be related to strategic social positioning. The social responsibility (...) orientation of the firm is related to strategic social planning. Positioning is related to value creation for the multinational firm, but planning is not. We discuss the implications of these findings for research and practice. (shrink)
In this paper, we explore the impact of individualism and collectivism on three basic aspects of ethical decision making - the perception of moral problems, moral reasoning, and behavior. We argue that the inclusion of business practices within the moral domain by the individual depends partly upon individualism and collectivism. We also propose a pluralistic approach to post-conventional moral judgment that includes developmental paths appropriate for individualist and collectivist cultures. Finally, we argue that the link between moral judgment and behavior (...) is related to individualism and collectivism. (shrink)
This paper looks broadly at the theme of corporate governance in Mexico. It begins with a brief analysis of the historical corporate governance model in Mexico, including the governance structures, the banking and financial systems, ownership and control patterns, industrial policy, and industrial relations. The paper then examines how and why these various aspects of corporate governance have been changing with processes of economic liberalization currently under way. Finally, it analyzes the consequences of changes in the model of corporate governance (...) for the country's development (e.g. increased consumer goods for middle class consumers, increased disclosure by domestic corporations, less support for corporate social programs, etc.). (shrink)
Integrative social contracts theory (ISCT) uses empirical methods to develop guidelines for international business ethics. This article criticizes ISCT in terms of the way people actually think about contracts and agreements around the globe. Differences in orientations to communications context, moral reasoning, and institutional and structural conditions make the identification of authentic norms, hypernorms, and relevant communities problematic. The difficulties of the empirical methods suggest recourse to more traditional theoretical approaches for the identification of hypernorms as well as a stronger (...) test for the compatibility of authentic norms with hypernorms. (shrink)
Despite the appeal of the stakeholder concept, little work had been done with respect to the development of specific structures for the management of stakeholder relations. This paper draws upon the organizational justice literature to demonstrate how many of its concerns coincide with those of the stakeholder management literature. It shows that organizational justice can provide specific advice for the design of stakeholder relations, while stakeholder theory can broaden the scope of current inquiries into organizational justice.
Analysis and comparison of genetic screening programs shows that the extent of development of programs varies widely across Europe. Regional variations are due not only to genetic disease patterns but also reflect the novelty of genetic services. In most countries, the focus for genetic screening programs has been pregnant women and newborn children. Newborn children are screened only for disorders which are treatable. Prenatal screening when provided is for conditions for which termination may be offered. The only population screening programs (...) for adults are those for thalassaemia carrier status in Cyprus, Greece and Italy. Social responses to genetic screening range from acceptance to hostility. There is a fundamental tension between individual and communi ty in the debates in various European countries about implementation of screening programs. Opposition to genetic screening is frequently expressed in terms of arguments about "eugenics" with insufficient regard to the meaning of the term and its implications. Only a few countries have introduced explicit legislation on genetic screening. Legislation to address discrimination may provide more safeguards than legislation protecting genetic information itself. (shrink)
This paper analyzes the likelihood that recent conventions against corruption signed by the OECD and the OAS will be effective in Latin America. It begins by looking at the cultural context of corruption in Latin America and examines efforts by Latin American signatories to implement both agreements. It then evaluates the extent to which these efforts will prove successful. It concludes with suggestions for the development of culturally sensitive policies that will be effective in the fight against corruption in Latin (...) America. (shrink)
This article analyzes the adoption of voluntary environmental management programs by firms operating in Mexico. Mexican firms can obtain national certification (Clean Industry) and/or international certification (ISO 14001). Based on institutional entrepreneurship theory, we posit that the role played by first movers as institutional entrepreneurs is crucial if these programs are to become established with sufficient strength and appeal. This understanding is especially important in an environment where more than one program can be adopted. We tested several hypotheses on the (...) behaviors of 1328 facilities operating in Mexico, half of which (664) had certified environmental management programs. Of the 664 certified facilities, 217 were classified as early adopters. Three variables predicted the likelihood of a facility being an early adopter: (1) connected to international market, (2) in the maquila sector, and (3) linked to an industry association that offers free resources. (shrink)
Corporate social performance (CSP) has become a widely applied concept, discussed in most large firms’ corporate reports and the academic literature alike. Unfortunately, CSP has largely been employed as a way of demonstrating corporate social responsibility (CSR) in practice, or to justify the business case for CSR in academia by relating some measure of CSP to some measure of financial performance. In this article, we discuss multiple shortcomings to these approaches. We argue that (1) CSR activities need to be managed (...) and measured as projects and aggregated to the business or corporate level using a project portfolio; (2) appropriate measures need to be identified that move away from reporting the firm’s activities toward quantifying actual social outcomes achieved; and (3) given the types of projects prevalent in CSR, statistical evaluation methods common in other fields (ideally, pre-test post-test control group designs, such as used in medicine or propensity score matching for ongoing or past projects) should be employed to properly measure outcomes. We make a first, albeit imperfect, attempt at using such an approach with data collected on behalf of the Patrimonio Hoy project, a well-publicized CSR initiative carried out by Cemex in Mexico. We show that the results from this data reinforce concerns voiced earlier in this article. (shrink)
This article defines and analyzes the nature of a trust relation. It specifically examines the internal and external morality of trustrelations and the ethical limits of those relations. It examines both the ends pursued by trust relations as well as the means by whichtrust is developed. It shows that the ends need to be evaluated by traditional ethical theories, while the ethical constraints of the trustprocess depend upon the specific bases of trust. In addition, the consequences of the trust process (...) differ in their impact on the trustorand third parties. Despite the popularity of trust in the literature, this study recommends caution in the use of trust as an ethical basisfor economic organization. The optimal form of trust, although still subject to limitations, is fairness-based trust. (shrink)
This article argues that one of the principal difficulties in measuring CSR performance lies with the unit of analysis and that its social, environmental and economic impacts need to be examined at a project level. Using a quasi-experimental research approach the paper shows an evaluation of the Patrimonio Hoy (PH) a CSR program of CEMEX, one of the largest cement manufacturers inthe world.
The decision to internalize corporate social responsibility (CSR) activities, to outsource them in the form of corporate philanthropy, or to collaborate with otherorganizations is of great significance to the ability of the firm to reap benefits from such activity. Using insights provided by the new institutional economics and the resourcebased view of the firm, this paper describes how the variables of centrality and specificity affect CSR governance choice. This framework is tested using data collected from Central America and Mexico. Support (...) is found for the relevance of centrality, but not for specificity. The paper discusses directions for future research and concludes with the managerial implications of this research. (shrink)
This paper views corruption as a form of contracting amenable to analysis from the viewpoint of transaction-cost economics. Concepts such as transaction, bounded rationality, opportunism, and asset specificity are shown to apply to cases of corruption. Both market and parochial corruption are hypothesized to vary in accordance with changes in the specificity of assets invested to support the corruption transaction. Evidence from a number of different studies tends to support the hypothesized relation. The implications of the transaction-cost perspective are developed (...) for policy makers and directions for future research are suggested. (shrink)
This paper argues that the concept of reliability provides a useful framework for analyzing defects in organizational design and for prescribing changes that will facilitate ethical decision making. Reliability becomes an ethical concern when the individual or organizational interest diverges from the collective interest. Redundancy and requisite variety provide two design tools which can enable organizations to act reliably in the collective interest. The paper then discusses potential disadvantages to the use of a reliability framework as well as possible problems (...) of implementation. It concludes by examining avenues for future research. (shrink)
The literatures of business ethics and international business have generally had little influence on each other. Nevertheless, the decline in the power of nation states, the emergence of non-governmental organizations, the proliferation of self-regulatory bodies, and the changing responsibilities, roles, and structure of multinational corporations make constructive engagement between these two disciplines imperative. This changing institutional landscape creates many areas of common concern. In this article, we describe the changing institutional context of global business and suggest ways in which both (...) business ethics and international business may inform each other more fruitfully. (shrink)
This study analyzes the adoption and performance implications of two certified management standards in Mexico. Basing our predictions on strategic balance theory we find that those firms seeking for higher levels of differentiation or legitimacy show inferior environmental performance that firms demonstrating higher strategic balance.
The goal of the workshop is to bring IABS performance measurement researchers together, so that they can improve the quality of their research, develop new ideas and projects, strengthen and enlarge their networks, and increase collaboration. During the workshop four discussion sessions were facilitated, all discussion a specific issue related to performance measurement; (1) evaluation methods for CSP, (2) measurement metrics, (3) level of analysis, and (4) relation between motivations and impact.
Corporate social performance (CSP) has been studied extensively by business and society scholars, yet most approaches to its measurement continue to be ambiguous, controversial and difficult to use (Wood, 2010). In this paper, we propose measuring CSP via the construct of stakeholder satisfaction through social media like Facebook and Twitter. We argue that the satisfaction of stakeholder expectations can be explained with organizational justice theory particularly in the exercise of voice by stakeholders when they perceive unjust behavior on the part (...) of the firm. We test our idea using event study methodology with a sample of 5,440 observations from ten U.S. companies: We found some evidence for the sensitivity of social media to social events of interest to Twitter users. (shrink)
. Management scholars and practitioners often believe that individuals and organizations benefit by trusting their work contacts. (Husted, 1998; Sonnenberg, 1994) Trust is generally viewed as “good” and imperative to a modern functioning economy (Blau, 1964; Hosmer, 1995; Zucker, 1986) Consequently, scholars and practitioners have given scant attention to the “downside” of trust, despite the fact that trust involves taking risk under conditions of uncertainty (Rousseau et al., 1998) Recent corporate scandals show that people suffer when they misplace trust (...) in untrustworthy organizations and individuals. This paper develops a model of the causes and consequences of “over-trust,” which we define as a state where a trustor’s trust exceeds that which is warranted given the conditions. The antecedents of overtrust related to characteristics of the trustee, the trustor, and situational characteristics. We examine the role played by self-monitoring and perceived power base of the trustee as two key trustee characteristics. Among trustor characteristics, we examine the role (played by trustor’s core evaluation, core values). based on cultural affiliation), prior experiences with trustees, and use of habitual thinking behavior. Under characteristics of the situation, we examine the role played by uncertainty inherent in the situation, perceived threat from the context, degree of task interdependence, and organizational systems and routines. Next, we examine three consequences of over-trust – leniency in judging the trustee, delay in perceiving exploitation, and increased risk-taking. We conclude our paper by developing a set of guidelines that organizational members may employ to avoid over-trust. (shrink)