Abstract
It appears that in the 30 years that business ethics has been a discipline in its own right a model of business ethics has not been proffered. No one appears to have tried to explain the phenomenon known as ‚business ethics’ and the ways that we as a society interact with the concept, therefore, the authors have addressed this gap in the literature by proposing a model of business ethics that the authors hope will stimulate debate. The business ethics model consists of three principal components (i.e. expectations, perceptions and evaluations) that are interconnected by five sub-components (i.e. society expects; organizational values, norms and beliefs; outcomes; society evaluates; and reconnection). The introduced model makes a contribution to the creation of a conceptual framework for business ethics. A few tentative conclusions may be drawn from the introduced model of business ethics. The model aspires to be highly dynamic. The ultimate outcome is dependent upon the evolution of time and contexts. It is also dependent upon and provides reference to the behaviours and perceptions of people. The model proposes business ethics to be a continuous and an iterative process. There is no actual end of the process, but a constant reconnection to the initiation of successive process iterations of the business ethics model. The principals and sub-components of the model construct the dynamics of this continuous process. They provide guidance on what and how to explore our common efforts to understand the phenomenon known as business ethics. The model provides opportunities for further research in the field of business ethics.
Similar content being viewed by others
References
Arnold D. G. (2003) Libertarian Theories of the Corporation and Global Capitalism, Journal of Business Ethics 48:155–173
Asgary N., Mitschow M. C. (2002) Toward a Model for International Business Ethics, Journal of Business Ethics 36:239–246
Benson G. C. S. (1989) Codes of Ethics, Journal of Business Ethics 8:305–319
Cadbury, A.: 1987, ‚Ethical managers make their own rules’, Harvard Business Review September–October, 69–73
Campbell D., Moore G., Metzger M. (2002) Corporate Philanthropy in the U.K. 1985–2000: Some Empirical Findings, Journal of Business Ethics 39:29–41
Carringer P.T. (1994) Not Just a Worthy Cause: Cause-related Marketing Delivers the Goods and the Good, American Advertising 10(1):16–19
Carroll A. B. (1979) A Three-Dimensional Conceptual Model of Corporate Performance, Academy of Management Review 4(4):497–505
Carroll A. B., Meeks M. D. (1999) Models of Management Morality: European Applications and Implications, Business Ethics: A European Review 8(2):108–116
Carson T. L. (2003) Self-Interest and Business Ethics: Some Lessons of the Recent Corporate Scandals, Journal of Business Ethics 43:389–394
Chang S. J., Ha D. (2001) Corporate Governance in the Twenty-first Century: New Managerial Concepts for Supranational Corporations, American Business Review 19(2):32–44
Cohan J. A. (2002) “I Didn’t Know” and “I Was Only Doing My Job”: Has Corporate Governance Careered Out of Control? A Case Study of Enron’s Information Myopia, Journal of Business Ethics 40:275–299
Collier J. (2000) Editorial: Globalization and Ethical Global Business, Business Ethics: A European Review 9(2):71–75
Cornell, A. and M. Mellish: 2002, ‚Senate to Hold New Inquiry on Rural Banking’, Australian Financial Review 10th July
Cragg W. (2000) Human Rights and Business Ethics: Fashioning a New Social Contract, Journal of Business Ethics 27:205–214
Crane A., Matten D., Moon J. (2004) Stakeholders as Citizens? Rethinking Rights, Participation, and Democracy, Journal of Business Ethics 53:107–122
Creedy, S.: 2005, ‚Qantas to Lift Foreign Hirings’, The Weekend Australian 16th January
Davidson J. (1997) Cancer Sells, Working Woman 22(5):36–39
Davies H. (2001) Ethics in Regulation, Business Ethics: A European Review 10(4):280–287
Drucker, P. F.: 1981, ‚What is ‚business ethics’? The Public Interest Spring, 18–36
Flanagan W. G. (2003) Dirty Rotten CEOs: How Business Leaders are Fleecing America Citadel Press Books, New York
Fraedrich, J. P.: 1992, ‚Signs and Signals of Unethical Behaviour’, Business Forum Spring, 13–17
Freeman R. E. (1984) Strategic Management: A Stakeholder Approach Pitman Publishing Inc., Marshfield, MA
Freire P. (1972) Pedagogy of the Oppressed Penguin Books, USA
Friedman M. (1962) Capitalism and Freedom University of Chicago Press, Chicago
Graham J. W. (1995) Leadership, Moral Development, and Citizenship Behavior, Business Ethics Quarterly 5(1):43–54
Grant C. (1991) Friedman Fallacies, Journal of Business Ethics, 10:907–914
Grit K. (2004) Corporate Citizenship: How to Strengthen the Social Responsibility of Managers, Journal of Business Ethics 53:97–106
Grönroos C. (1994) From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing, Management Decision 32(2):4–20
Grönroos C. (2004) The Relationship Marketing Process: Communication, Interaction, Dialogue, Value, Journal of Business and Industrial Marketing 19(2):99–113
Gummesson E. (1994) Making Relationship Marketing Operational, International Journal of Service Industry Management 5(5):5–20
Gummesson E. (2004) Return on Relationships (ROR): The Value of Relationship Marketing and CRM in Business-to-business Contexts, Journal of Business and Industrial Marketing 19(2):136–148
Hadreas P. (2002) Aristotle on the Vices and Virtue of Wealth, Journal of Business Ethics 39:361–376
Handelman J. (2000) How Marketers can ‚Do Well While Doing Good’: The Institutional Theory Framework. In Spotts H. E., Meadow H. L. (eds) Developments in Marketing Science Volume XX111 Academy of Marketing Science, Montreal, p 350
Handelman J. M., Arnold S. J. (1999) The Role of Marketing Actions with a Social Dimension: Appeals to the Institutional Environment, Journal of Marketing 63(July) 33–48
Heath J., Norman W. (2004) Stakeholder Theory, Corporate Governance and Public Management: What can the History of State-Run Enterprises teach us in the Post-Enron era?, Journal of Business Ethics 53:247–265
Hemphill T. A. (2004) Antitrust, Dynamic Competition and Business Ethics Journal of Business Ethics 50:127–135
Hoffman K. D., Czinkota M., Dickson P., Dunne P., Griffin A., Hutt M., Krishnan B., Lindgren J., Lusch R., Ronkainen I., Rosenbloom B., Seth J., Shimp T., Sigauw J., Simpson P., Speh T., Urbany J. (2003) Marketing Best Practice 2nd edition. Thomson, Ohio
Hoffman W. M. (1991) Business and Environmental Ethics, Business Ethics Quarterly 1(2):169–184
Hoffman W. M., Moore J. M. (1982) What is Business Ethics? A Reply to Peter Drucker, Journal of Business Ethics, 1:293–300
Hood J. N. (2003) The Relationship of Leadership Style and CEO Values to Ethical Practices in Organizations, Journal of Business Ethics 43:263–273
Joyner B. E., Payne D. (2002) Evolution and Implementation: A Study of Values, Business Ethics and Corporate Social Responsibility, Journal of Business Ethics 41:297–311
Lea D. (1999) Corporate and Public Responsibility, Stakeholder Theory and the Developing World, Business Ethics: A European Review 8(3):151–162
Le Menestrel M. (2002) Economic Rationality and Ethical Behaviour: Ethical Business Between Venality and Sacrifice, Business Ethics: A European Review 11(2):157–166
Levitt, T.: 1958, ‚The Dangers of Social Responsibility’, Harvard Business Review Sept–Oct, 41–50
Litzinger, W. D. and T. E. Schaefer: 1987, ‚Business Ethics Bogeyman: The Perceptual Paradox’, Business Horizons March–April, 16–21
Lovell A. (2002) Ethics as a Dependent Variable in Individual and Organizational Decision Making, Journal of Business Ethics 37:145–163
Lozana J. F., Boni A. (2002) The Impact of the Multinational in the Development: An Ethical Challenge, Journal of Business Ethics 39:169–178
Maclagan P. (1992) Management Development and Business Ethics: A View from the U.K, Journal of Business Ethics 11:321–328
Mahoney J. (1990) An International Look at Business Ethics: Britain, Journal of Business Ethics 9:545–550
McCall J. J. (2002) Leadership and Ethics: Corporate Accountability to Whom, for What and by What Means?, Journal of Business Ethics 36:133–139
McKendall M., DeMarr B., Jones-Rikkers C. (2002) Ethical Compliance Programs and Corporate Illegality: Testing Assumptions of the Corporate Sentencing Guidelines, Journal of Business Ethics 37:367–383
McMurtry J. (2002) Why the Protestors Are Against Corporate Globalization, Journal of Business Ethics 40:201–205
Metcalfe C. E. (1998) The Stakeholder Corporation, Business Ethics: A European Review 7(1):30–36
Miller R. A. (2002) The Frankenstein Syndrome: The Creation of Mega-Media Conglomorates and Ethical Modeling in Journalism, Journal of Business Ethics 36:105–110
Milton-Smith J. (1995) Ethics as Excellence: A Strategic Management Perspective, Journal of Business Ethics 14:683–693
Moore G. (1999) Tinged Shareholder Theory: Or What’s so Special About Stakeholders?, Business Ethics: A European Review 8(2):117–127
Olsen J. E. (2001) Environmental Problems and Ethical Jurisdiction: The Case Concerning Texaco in Ecuador, Business Ethics: A European Review 10(1):71–77
Pacini C., Swingen J. A., Rogers H. (2002) The Role of the OECD and EU Conventions in Combating Bribery of Foreign Public Officials, Journal of Business Ethics 37:385–405
Paine, L. S.: 1994, ‚Managing for Organizational Integrity’, Harvard Business Review March/April, 106–117
Pearson G. (2000) Making Profits and Sweet Music, Business Ethics: A European Review 9(3):191–199
Piety M. G. (2004) The Long Term: Capitalism and Culture in the New Millennium Journal of Business Ethics 51:103–118
Porter M. E. (1980) Competitive Strategy Free Press, New York
Post J. E., Lawrence A. T., Weber J. (2002) Business and Society 10th edition. McGraw-Hill Irwin, Boston
Ptacek J. J., Salazar G. (1997) Enlightened Self-interest: Selling Business on the Benefits of Cause-related Marketing, Nonprofit World 15(4):9–13
Richardson G. (2001) A Tale of Two Theories: Monopolies And Craft Guilds in Medieval England and Modern Imagination, Journal of History of Economic Thought 23(2):232–238
Robin D. P., Reidenbach R. E. (1987) Social Responsibility, Ethics, and Marketing Strategy: Closing the Gap Between Concept and Application, Journal of Marketing 51:44–58
Rodgers W., Gago S. (2004) Stakeholder Influence on Corporate Strategies Over Time, Journal of Business Ethics 52:349–363
Rondinelli D. A. (2003) Transnational Corporations: International Citizens or New Sovereigns?, Business Strategy Review, 14(4):13–21
Rosthorn J. (2000) Business Ethics Auditing – More Than a Stakeholder’s Toy Journal of Business Ethics 27:9–19
Rushton K. (2002) Business Ethics: A Sustainable Approach, Business Ethics: A European Review 11(2):137–139
Serpa R. (1985) Creating a Candid Corporate Culture, Journal of Business Ethics 4:425–430
Sethi S. P. (2003) Globalization and the Good Corporation: A Need for Proactive Co-existence, Journal of Business Ethics 43:21–31
Shor I. (1980) Critical Teaching and Everyday Life The University of Chicago Press, Chicago
Sims R. R., Brinkmann J. (2003) Enron Ethics (Or: Culture Matters More than Codes), Journal of Business Ethics 45:243–256
Solomon R. C., Martin C. (2004) Above the Bottom Line: An Introduction to Business Ethics 3rd edition. Harcourt Brace, Fort Worth
Sørensen A. (2002) Value, Business and Globalization – Sketching a Critical Conceptual Framework, Journal of Business Ethics 39:161–167
Sparkes R. (2001) Ethical Investment: Whose Ethics, Which Investment?, Business Ethics A European Review 10(3):194–205
Spiller R. (2000) Ethical Business and Investment: A Model for Business and Society, Journal of Business Ethics 27:149–160
Svensson G., Wood G., Callaghan M. (2004) A Comparison Between Corporate and Public Sector Business Ethics in Sweden, Business Ethics: A European Review 13(2/3):166–184
Swift T. (2001) Trust, Reputation and Corporate Accountability to Stakeholders, Business Ethics: A European Review 10(1):16–26
Thomas T., Schermerhorn J. R., Dienhart J. W. (2004) Strategic Leadership of Ethical Behaviour in Business, Academy of Management Executive 18(2):56–66
Tullberg J. (2004) Illusions of Corporate Power: Revisiting the Relative Powers of Corporations and Governments, Journal of Business Ethics 52:325–333
Wallace, C. P.: 2004, ‚Scandal Heads North’, Time Europe Magazine 163(9), March 1
Warren R., Tweedale G. (2002) Business Ethics and Business History: Neglected Dimensions in Management Education, British Journal of Management 13:209–219
Westra L. (1995) The Corporation and the Environment, Business Ethics Quarterly 5(4):661–673
Whawell P. (1998) The Ethics of Pressure Groups, Business Ethics: A European Review 7(3):178–181
Wheeler D., Fabig H., Boele R. (2002) Paradoxes and Dilemmas for Stakeholder Responsive Firms in the Extractive Sector: Lessons from the Case of Shell and the Ongoni, Journal of Business Ethics 39:297–318
Wiley, C.: 1995, ‚The ABC’s Of Business Ethics: Definitions, Philosophies and Implementation’, IM January/February, 23–27
Wood D. J. (1991) Corporate Social Performance Revisited, Academy of Management Review 18(4):691–718
Wood G. (2002) A Partnership Model of Corporate Ethics, Journal of Business Ethics 40(1):61–73
Wood G., Callaghan M. (2003) Communicating the Ethos of Codes of Ethics in Corporate Australia: 1995–2001: Whose Rights, Whose Responsibilities?, Employee Responsibilities and Rights Journal 15(4):209–221
Zyglidopoulos S. C. (2002) The Social and Environmental Responsibilities of Multinationals: Evidence from the Brent Spar Case, Journal of Business Ethics 36:141–151
Author information
Authors and Affiliations
Corresponding author
Additional information
Göran Svensson is a Professor at the Osla School of Management in Norway. He holds a Ph.D. at the School of Economics and Commerical Law, Göteborg University, Sweden. He is the editor of European Business Review (Emerald) and the regional editor for Europe of Management Decision (Emerald). He is also a member of numerous editorial boards of other academic journals. During the 1980s he was an entrepreneur in South America. He has published in areas such as Business Ethics, Business Logistics, Supply Chain Management, Services Marketing, Industrial Marketing, Leadership, Quality Management, Human Resource Management, Public Sector Management, Higher Education, History of Management/Marketing, Academic Publishing/Journals, Cause Related Marketing and General Management.
Greg Wood is an Associate Professor in the Bowater School of Management and Marketing at Deakin University, in Warrnambool, Australia. He holds a Ph.D. from Deakin University in the area of Management. His thesis was in the field of Business Ethics. His work experience has been in Business and in Education. In the 1980s, he worked for a large multinational energy and resources company in national and international roles. These roles included commercial marketing management, national marketing training and general management of an international green fields operation. His main focus for research is in the field of Business Ethics. He has published also in the area of Services Marketing, Leadership, Human Resource Management, Public Sector Management, Higher Education, Academic Publishing/Journals, Cause Related Marketing and General Management.
Rights and permissions
About this article
Cite this article
Svensson, G., Wood, G. A Model of Business Ethics. J Bus Ethics 77, 303–322 (2008). https://doi.org/10.1007/s10551-007-9351-2
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-007-9351-2