The unethical behavior of a business founder often leads to negative publicity which substantially affects positive corporate image. The amount of negative publicity relating to business founders’ unethical behavior is on the rise in the age of online social media in China. Based on the stimulus–response theory and balance theory, this paper developed a theoretical model to examine how negative publicity about a business founder’s unethical behavior affects corporate image. The proposed model was tested by (...) the partial least squares technique. Results show that perceived severity, publicity intensity and recovery performance are predictors of corporate image: perceived severity has a negative impact on positive corporate image; publicity intensity and recovery performance have positive impacts on positive corporate image; and founder image mediates the relationships between the three predictors and corporate image. Moreover, initial consumer impression of business founders has a positive impact on positive corporate image. (shrink)

This issue of Business & Society contains the transcripts of 12 oral history interviews with founders of and early contributors to the business and society/social issues in management field. The publication of these interviews is the culmination of a very long-term project, with the first interview having been conducted in 1993 with Lee Preston and the most recent interview having been conducted in 2011 with Jim Post. This project has been very much of a team effort with Sandra (...) Waddock, John Steiner, Mary Mallott, Ariane Berthoin Antal, and, of course, our interviewees all playing important roles. (shrink)

As the need for more diversity in business ethics is becoming more pressing in our global world, we provide an historical study of a Fair Trade (FT) movement, born in rural Mexico. We first focus on the basic assumptions of its founders, which include a worker–priest, Frans van der Hoff, a group of native Indians and local farmers who formed a cooperative, and an NGO, Max Havelaar. We then review both the originalities and challenges of the FT movement and (...) its potential contributions to the current theories and practices in business ethics. (shrink)

Although the simultaneous presence of multiple ambitions is inherent in hybrid venturing, pursuing social and/or environmental missions while securing commercial viability can generate ambivalence among stakeholders. In this study, we draw on the notion of “holism” to show how venture founders both embrace tensioned ambitions and sustain hybridity during critical venture development phases. Based on 6 years of data on The People’s Supermarket in the United Kingdom, we identify three distinct practices— fantasizing, bartering, and conjuring—used by founders to harness tensions (...) productively, without compromising their venture’s multiple ambitions. These practices demonstrate the founders’ ability to maintain a venture’s hybrid nature throughout the ideation, organizational, and scale-up phases, thereby shedding light on the application of “holism” within the realm of hybrid venturing. (shrink)

Business Ethics, the Environment & Responsibility, EarlyView.

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)

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)

Business Ethics, the Environment & Responsibility, Volume 31, Issue 1, Page 17-32, January 2022.

This study adds to the emergent stream of work examining the micro-level antecedents of pay dispersion by focusing on how business founders’ personal characteristics influence pay dispersion in their organizations. We leverage stakeholder theory and the motivated information processing perspective to predict pathways between founders’ self- versus other-oriented motivations, their perceptions of employee and shareholder salience, and pay dispersion in their organizations. We test our hypotheses on data from a two-wave survey of founders. We find that a high level (...) of motivation to benefit others on the part of a founder reduces the salience of shareholder concerns in decision-making, which in turn reduces pay dispersion. In contrast, a high level of motivation to benefit oneself heightens the salience of shareholder concerns in decision-making, increasing pay dispersion. Our results inform the debate on pay dispersion by elucidating the role played by founders’ self- versus other-oriented motivations and stakeholder salience perceptions. (shrink)

The current literature expands the existing knowledge of the antecedents of proactive environmental strategies (PES) in family firms from the perspectives of institutional, market and family involvement logics. However, scholars have not considered the influence of key family decision-makers and their characteristics in this regard. Based on the ability and willingness framework, this study focuses on how founders' religiosity affects family firms' PES. Using data from the 2010 Chinese Private Enterprise Survey conducted by Chinese officials, we found that founders' religiosity (...) drives family firms to implement PES. Altruistic and long-term orientation are the internal mechanisms of this effect. Founders' political status enhances the positive impact of their religiosity on PES, whereas the founders' need for socioemotional wealth protection weakens the relationship between founders' religiosity and family firms' PES. We also found that Eastern and Western founders' religiosity has an asymmetric effect on family firms' PES. This study contributes to the literature on the PES of family firms, the family firm's ability and willingness framework, and family business heterogeneity. (shrink)

In a series of papers Geoff Moore has applied Alasdair MacIntyre’s much cited work to generate a virtue-based business ethics. Central to this project is Moore’s argument that business falls under MacIntyre’s concept of ‘practice’. This move attempts to overcome MacIntyre’s reputation for being ‘anti-business’ while maintaining his framework for evaluating social action and replaces MacIntyre’s hostility to management with a conception of managers as institutional practitioners (craftsmen). I argue however that this move has not been justified. (...) Given the importance MacIntyre places on the protection of practices, the result is that much of Moore’s contribution is misplaced. Business cannot name a practice but business institutions certainly do house practices. The task then is to try to understand the circumstances under which practices might flourish and those under which they might founder in a business context. This is not aided by Moore’s redescription of all businesses as practices. (shrink)

This article examines the business practices of Jamsetji Nusserwanji Tata, the founder the Tata group of business in India in the 19th century, from the perspective of stakeholder welfare. Jamsetji Nusserwanji Tata was concerned about the welfare of all major stakeholder constituents. His business practices promoted the welfare of employees, customers, society, owners, competitors, environment and other stakeholders. He implemented several measures even before law mandated them thus acting as a forerunner in promoting stakeholder welfare. His (...) business plans became the foundation for an economically strong India. This article, after an initial overview of the stakeholder framework, describes the business practices of Jamsetji Nusserwanji Tata with regard to major stakeholder constituents. Relevant research findings regarding each stakeholder constituent studied have been cited to show that the practices of Jamsetji Nusserwanji Tata have relevance to business even today. (shrink)

What would happen if you made your business decisions by the book? By the Bible that is. This updated version of the best-selling Business by the Book offers radical principles of business management that go beyond the Ten Commandments and other biblical maxims. Business by the Book is a step-by-step presentation of how businesses should be run according to the Creator of all management rules: God. Larry Burkett, founder and president of Christian Financial Concepts, provides (...) business principles from his own experience as well as what God’s Word says on topics such as: Hiring and Firing Decisions Pay Increases and Promotions Management Selection Employee Pay Decisions Borrowing and/or Lending Decisions Forming Corporations and Partnerships Business Tithing Retirement Whether you are the owner of a business, a corporate executive, or a manager, this best-selling classic is for you. (shrink)

Non-Humean accounts of lawhood are said to founder on the Inference Problem, which is the problem of saying how laws that go beyond the regularities can entail the regularities. I argue that the Inference Problem has a simple solution – the Axiomatic Solution – on which the non-Humean only needs to outfit her laws with a law-to-regularity axiom. There is a remaining Epistemic Bulge, as to why one should believe that the posit-so-axiomatized is to be found in nature, but (...) the non-Humean can flatten the bulge. Lawhood serves as a case study of how fundamental posits can do their business. (shrink)

In order to provide context and ground for a future assessment of the manifold overlap and possible differences between the Humanistic Management Project and the Weltethos Project, this article offers a comprehensive assessment of the history, arguments, and relevance of the Weltethos Project as applied to economics and business. A literature review of foundational documents on “Weltethos” and “Weltethos for business” outlines essential elements and arguments from two main Weltethos Project pioneers. It first recounts how its founder, (...) the theologian Hans Küng, has launched a fruitful academic and public discourse spanning almost three decades since 1990, including the presentation of the Manifesto for a Global Economic Ethic by world leaders at a joint event with the UN Global Compact at the UN headquarters in New York in 2009, calling for business to serve human dignity. Then, the agenda of Claus Dierksmeier, Küng’s academic successor and a philosopher with foundational contributions to the Humanistic Management Project, is assessed both in regard to Weltethos motifs and Humanistic Management arguments, spanning from Dierksmeier’s conception of qualitative freedom as the foundation of unity in diversity to his effort to reframe economic theory and ethics, the inclusive and innovative practices of Humanistic Management, and to the capability approach. The article ends by highlighting how these two different approaches to Weltethos commitments converge in their care for human dignity, the idea of globally responsible freedom, and the capacity for dialogue as a learning process for creative change leadership. (shrink)

This volume brings together a selection of papers written by Patricia Werhane during the most recent quarter century. The book critically explicates the direction and development of Werhane’s thinking based on her erudite and eclectic sampling of orthodox philosophical theories. It starts out with an introductory chapter setting Werhane’s work in the context of the development of Business Ethics theory and practice, along with an illustrative time line. Next, it discusses possible interpretations of the papers that have been divided (...) across a range of themes, and examines Werhane’s contribution to these thematic areas. Patricia H. Werhane is a renowned author and innovator at the intersection of philosophy and Applied Business Ethics. She is professor emerita and a senior fellow at the Olsson Centre for Applied Ethics at Darden and was formerly the Ruffin Professor of Business Ethics. She is also professor emerita at DePaul University, where she was Wicklander Chair in Business Ethics and director of the Institute for Business and Professional Ethics. A prolific author whose works include Moral Imagination and Management Decision-Making and Organization Ethics for Health Care, Werhane is an acclaimed authority on employee rights in the workplace, one of the leading scholars on Adam Smith and founder and former editor-in-chief of Business Ethics Quarterly, the leading journal of Business Ethics. She was a founding member and past president of the Society for Business Ethics and, in 2001, was elected to the executive committee of the Association for Practical and Professional Ethics. Before joining the Darden faculty in 1993, Werhane served on the faculty of Loyola University Chicago and was a Rockefeller Fellow at Dartmouth College and Senior Fellow at Cambridge University. (shrink)

This encyclopedia, edited by the past editors and founder of the Journal of Business Ethics, is the only reference work dedicated entirely to business and professional ethics. Containing over 2000 entries, this multi-volume, major research reference work provides a broad-based disciplinary and interdisciplinary approach to all of the key topics in the field. The encyclopedia draws on three interdisciplinary and over-lapping fields: business ethics, professional ethics and applied ethics although the main focus is on business (...) ethics. The breadth of scope of this work draws upon the expertise of human and social scientists, as well as that of professionals and scientists in varying fields. This work has come to fruition by making use of the expert academic input from the extraordinarily rich population of current and past editorial board members and section editors of and contributors to the Journal of Business Ethics. (shrink)

We examine the issue of entrepreneurial gender bias by focusing on the underlying mechanisms that impact the likelihood of receiving external venture-capital financing. We claim that gender bias negatively affects socially attributed dimensions (such as the stigma ascribed to entrepreneurs who have previously suffered a failure), while it has no effect on objective dimensions (such as the experience gained by entrepreneurs). Our results, based on 2088 US firms, show that female entrepreneurs are less likely to attract external funds if they (...) have previously encountered failure. This negative effect becomes less impactful when novel or serial successful entrepreneurs are considered. Consequently, novel or serial successful entrepreneurs are expected to suffer less from gender bias if compared to peers who experienced a failure during their entrepreneurial career. (shrink)

This article contributes to the emerging discussion on responsible leadership by providing an analysis of the inner theatre of a responsible leader. I use a narrative approach for analyzing the biography of Anita Roddick as a widely acknowledged prototype of a responsible leader. With clinical and normative lenses I explore the relationship between responsible leadership behavior and the underlying motivational systems. I begin the article with an introduction outlining the current state of responsible leadership research and explaining the kind of (...) magnifying glasses used to examine the case. I continue with a brief summary of Anita Roddick’s development from childhood to adulthood, which provides the biographical background for exploring her motivational systems as a leader. Against this backdrop, I analyze the relationship between motivational drivers and a responsible leadership identity as revealed by Roddick in different behavioral leadership roles. I conclude the article by providing a number of lessons learned for responsible leadership and the development of future global leaders. (shrink)

Abstract What do we mean to say when we call some person a good business manager? And where do the criteria flow from by which we judge people good business managers? I answer these questions by drawing on von Wright's distinction between several varieties of goodness. We can then discriminate between instrumental, technical and moral senses of the expression ?to be a good business manager?. The first two senses presume that business managers have a characteristic task (...) or that they engage in typical activities. It is natural to specify this task and these activities by appealing to goods and to the good of a business. These goods may then be identified as goods for people. Insofar as the welfare of people is of moral value, we obtain a morally loaded account of business management. I argue against this account and plead for a more sober understanding of economic goods and of the good of a business. The latter can be understood in analogy to the good of an individual person, but is largely determined by the goals of the founders and owners. Economic goods are things that are wanted by some people and thus exchanged on markets. If this is so, then there is no direct conceptual path from instrumentally or technically good business managers to morality even though there are certain affinities. To conclude, I trace the consequences for our understanding of business ethics. (shrink)

By drawing on extensive interviews with business founders and CEOs this book explores the complexities and dynamics of business and social relations responsible for present-day China's economic vibrancy. It makes an original contribution both through its empirical richness and theoretical innovations on trust, social networks, crisis and gender.

This two-part study analyzed some of the ethical choices made by founding entrepreneurs during the creation and development of their ventures in order to identify the areas in which founding entrepreneurs must make decisions related to ethics or social responsibility during venture creation and development. Content analysis was used to identify decisions with ethical components and/or implications from in-depth interviews with 10 successful business founders. The research for part one of the study was guided by the following research question: (...) In what areas must entrepreneurs make decisions with ethical and/or social responsibility implications during new venture creation and development? The authors identified four distinct categories of decisions where ethical or social responsibility components exist: (1) individual entrepreneurial values-related decisions, (2) organizational culture/employee well-being decisions, (3) customer satisfaction and quality decisions, and (4) external accountability decisions. In the second part of the study, the decisions identified in part one were analyzed using a framework derived from prior research in ethics. This framework was developed from the work of Kant (1964) who theorized about human morals and Rawls (1971) who developed theories about justice. Part two of the study was guided by the following research questions: Do entrepreneurs have values and ethics similar to those held by society in general? If they don’t, how do their values and ethics differ? The comparison revealed that the ethics and/or values that the entrepreneurs either explicitly or implicitly acknowledged were in fact similar to those of society in general. (shrink)

Jay Coen Gilbert, co-founder of B Lab, discusses his vision for a “new economy” where business is a “force for good.” In this interview, Coen Gilbert provides an overview of how B Lab’s various initiatives—Certified B Corporations, the B Impact Assessment, B Analytics, GIIRS, and Benefit Corporations—function interdependently to accelerate a culture shift to redefine success in business. Coen Gilbert then focuses on the role of benefit corporations in this larger movement. The benefit corporation is a new (...) legal form of business that requires a corporate purpose dedicated to “general public benefit” and the delivery of demonstrable “material positive impact on society and the environment.” Novel fiduciary and reporting requirements differentiate the benefit corporation from the traditional corporation founded on shareholder primacy. Coen Gilbert explains how the benefit corporation is better suited to create long-term shareholder value as well as sustainable value for society, the environment, and other stakeholders. He addresses critiques of and challenges to the benefit corporation as an agent of change for business. (shrink)

This book answers the question of how soft factors such as corporate cultures and individual and corporate values can be transparently steered. With its C4 management tool and reflecting the seven driving forces of corporate culture, the Values Cockpit is a powerful solution designed to steer all dimensions and processes of a company, pursuing a lean approach. The book links strategic approaches on how to steer a company towards excellence with insights into the driving forces of human thoughts and actions. (...) It subsequently introduces the Values Cockpit, which allows individual corporate cultures to be developed and controlled on the basis of a rational approach. "This intriguing book breaks new ground in suggesting that values can be managed quite as systematically as any other centrally important asset" Rebecca Henderson, John and Natty McArthur Professor, Harvard University "... a deeply articulate, profoundly relevant explication of the role played by the culture of commerce... rich with actionable tools, insights and clear examples..." Richard J Hill IV, Founder, Gabriel Consulting Group, LLC "One seldom sees practical advice on HOW strong values can be automatically practiced on a daily basis by all concerned. That is what makes this remarkable book so refreshing... his book is taking the seminal findings of Jim Collins on building great companies a step further..." Julian Clarke, Chartered Accountant and Management Consultant, European Business Ethics Network Ireland "... a brilliant yet succinct guide to teach the significance of values-development in sustainable business management..." Professor Dr. Haifeng Huang, Assistant Dean, Peking University HSBC Business School, Shenzhen, China "He admirably rejects the fatalist interpretation of the immoral might of markets and replaces it with a counter-narrative of why and how companies can be part of the solution rather than part of the problem." Professor Dr. Claus Dierksmeier, Director of the Global Ethic Institute, Eberhard Karls University of Tübingen "The values cockpit gives readers a coherent and comprehensive toolkit to help them prepare their companies for lasting success." Dr. Kurt Schmalz, C.E.O and Managing Partner J. Schmalz GmbH, Glatten, Germany. (shrink)

As founder of modern political economics and prominent theorist of the commercial society, Adam Smith’s importance is universally recognized. Little, however, has been done so far to develop Adam Smith’s virtue ethics in the context of modern business, characterized by digitalization. This article aims to rediscover Adam Smith’s virtue of prudence and its relevance for the “e-commercial society”: It presents a framework that considers the central place of prudence in the relationship between a prosperous e-commercial system and societal (...) flourishing. In Smith’s view of the commercial society, prudence enables people to develop habits of character related to industriousness, genuineness, spirit of sacrifice, and self-command, which help in the conduct of a prosperous business activity. This article translates Smith’s virtue of prudence into a language typical of consumers in the current e-commerce scenario, considering their development as persons and the contribution of their activities to the good of society. (shrink)

Grenada Chocolate Company (GCC) is the world’s smallest chocolate factory. After being hit with several hurricanes, the founders of GCC must decide the best way to continue their business. This case addresses the possibilities GCC has while exploring the benefits and pitfalls of a small business.

This book celebrates the work of Patricia Werhane, an iconic figure in business ethics. This festschrift is a collection of articles that build on Werhane’s contributions to business ethics in such areas as Employee Rights, the Legacy of Adam Smith, Moral Imagination, Women in Business, the development of the field of business ethics, and her contributions to such fields as Health Care, Education, Teaching, and Philosophy. All papers are new contributions to the management literature written by (...) well-known business ethicists, such as Norman Bowie, Richard De George, Ronald Duska, Edwin Hartman, Michael Hoffman, Mollie Painter-Morland, Mark Schwartz, Andrew Wicks, and others. The volume is comprised of articles that reflect on Werhane’s work as well as build on it as a way to advance further research. At the end of the festschrift, Pat Werhane provides responses to each chapter. The first chapter of the book also includes the overview of Patricia Werhane’s work and her academic career. The book is written to appeal to management scholars and graduate students interested in the areas of Business Ethics, Modern Capitalism, and Human Rights. Patricia Werhane is one of the most distinguished figures in the field of business ethics. She was a founder of the field, she is one of its leading scholars, and she has had a profound impact on the world of business practice. Among her many accomplishments, Pat is known for her original work on moral imagination, she is an acclaimed authority on employee rights in the workplace, and she is one of the leading scholars on Adam Smith. Having been active in Academia for over 50 years, Werhane is a prolific author of over a hundred articles and book chapters, and the author or editor of twenty-seven books, including Adam Smith and his Legacy for Modern Capitalism, Moral Imagination and Management Decision-Making, and co-authored books Organization Ethics in Health Care, Alleviating Poverty Through Profitable Partnerships, Obstacles to Ethical Decision-Making, Corporate Responsibility: The American Experience, and Research Approaches to Business Ethics and Corporate Responsibility. (shrink)

Michael Hannigan is the CEO and co-founder of Give Something Back Office Supplies, the third largest office supply company on the west coast of the United States. Hannigan began his business in 1991, long before any benefit corporation legislation was enacted. He reincorporated his business as a benefit corporation after California passed such legislation in 2011. On April 23, 2015, he spoke at the 22nd Annual Stakeholder Dialogue Speaker Series convened at the University of St. Thomas, Minneapolis, (...) by Daryl Koehn and the Veritas Institute. His remarks cover the genesis of his interest in socially responsible business and the start of his company. Hannigan also discusses the arc of what he refers to as the “fourth sector”—the emergence of the social enterprise sector. He evaluates where benefit corporations began and shares his reflections on how they may develop in the future. Hannigan’s talk concludes with a short question and answer session with audience members at the event. (shrink)

This study investigates the processes involved in the shaping of a society's economic ethos. The discussion of ethics and economics has a very long history across multiple disciplines. The founder of modern economics, Adam Smith, likewise had a keen interest in this topic. However, with the development of economic science, scholarly assessment has shifted toward positive analysis while normative analysis has been left mainly to philosophers. By utilizing the newly developed morality of profit-making scale, the authors sought to understand (...) how respondents' economic ethical worldview shifts over time. Specifically, we theorized that the news media's copious negative coverage of the gasoline price crisis of 2006 would significandy impact individuals' MPM worldview. The results show that respondents' explicit attitudes toward MPM were significantly impacted. However, respondents' more deeply held, implicit economic ethical worldview was only slightly impacted. The authors argue that only patient, long-term explanation and argumentation can permanently affect a society's economic ethos. Implications and future research directions for business researchers are oudined. (shrink)

The pursuit of social goals and ethics in business creates challenges. Sustained efforts to address poverty, environmental degradation or health/wellbeing require meaningful and transformative responses that impact across multiple levels—individual, community and the global collective. Shifting predominant paradigms to facilitate change entails a renegotiation of business strategy—between organizations, their purpose(s), individual and collective stakeholders and ultimately with society at large. Hybrid organizations such as social enterprises are positioned to affect such change. However, in balancing divergent goals such organizations (...) encounter tensions and paradox, creating a duality of ethics. Utilizing in-depth interviews to develop a case within the sustainable fashion industry, we identify tensions and paradox within women-oriented hybrid organizations. Significantly, managing these tensions and paradox results in multiple dualities of ethics, often with a wider impact on organizational founders/managers. We find three interrelated ethical dualities: business strategy and personal values; financial sustainability and holistic sustainability; and business, employee, societal wellbeing, and personal wellbeing. This insight is noteworthy when looked at within the broader context of sustainability and highlights the importance of sustainability in women-oriented hybrid organizations. (shrink)

It is common today that organizations have their own distinctive cultures, even in cases when they may not have willfully attempted to create them. Rather, cultures have most likely been created unconsciously, forced by the values of top level managers, the founder, or core people who have built or direct the organization. Leaders frequently attempt to change the culture of their organizations to suit their own preferences. The resulting culture will influence the decision-making process, market demand, and nature of (...) the business. It affects management styles and what everyone determines as success. This study is an attempt to discover how culture influences management styles and decisions, with special reference to the local environment in Oman. (shrink)

innocent drinks was a three-man start-up in the UK in 1998. It now operates in a number of European countries and has become an iconic brand. From its early years, innocent has made sustainability and ethical business practices, an integral part of its identity, alongside its wholesome fruit smoothie products, viral marketing campaigns and humorous, self-deprecating advertising. It has built strong consumer loyalty and become a powerful role model for other young entrepreneurs. As it starts its second decade, with (...) more competition from own labels and global drinks companies; and as it expands in to more continental European markets, it is challenged to maintain and develop further its ethical business practices and commitment to sustainability. Do the three founders who retain majority ownership of their company sell their stake—and if they stay, how do they keep innocent, innocent? (shrink)

innocent drinks was a three-man start-up in the UK in 1998. It now operates in a number of European countries and has become an iconic brand. From its early years, innocent has made sustainability and ethical business practices, an integral part of its identity, alongside its wholesome fruit smoothie products, viral marketing campaigns and humorous, self-deprecating advertising. It has built strong consumer loyalty and become a powerful role model for other young entrepreneurs. As it starts its second decade, with (...) more competition from own labels and global drinks companies; and as it expands in to more continental European markets, it is challenged to maintain and develop further its ethical business practices and commitment to sustainability. Do the three founders who retain majority ownership of their company sell their stake—and if they stay, how do they keep innocent, innocent? (shrink)

This study proposes and tests a model that integrates ethical leadership, internal social capital, and firm performance in small- and medium-sized family firms at different generational stages. Using the upper echelons theory and the social capital perspective of familiness, this study shows that ethical leadership can explain the effectiveness of certain behaviors in relation to family firm performance. Moreover, social capital helps spread a leader's business ethics to firm members, thus improving the family firm's performance. Our results show that (...) founders' personalities and identities determine high internal social capital, which decreases over generations. The study also shows that internal social capital is a communicative element crucial to ethical leadership, facilitating the absorption of the culture and values of the family in the firm. This powerful resource should be promoted and supported by coherent behavior over time by senior leaders. (shrink)

University spin-outs, creating businesses from university intellectual property, are a relatively common phenomena. As a knowledge transfer channel, the spin-out business model is attracting extensive attention. In this paper, the impacts of six equities on the acquisition of USOs, including founders, university, banks, business angels, venture capitals, and other equity, are comprehensively analyzed based on theoretical and empirical studies. Firstly, the average distribution of spin-out equity at formation is calculated based on the sample data of 350 UK USOs. (...) According to this distribution, a radial basis function neural network model is employed to forecast the effects of each equity on the acquisition. To improve the classification accuracy, the novel set-membership method is adopted in the training process of the RBF NN. Furthermore, a simulation test is carried out to measure the effects of six equities on the acquisition of USOs. The simulation results show that the increase of university’s equity has a negative effect on the acquisition of USOs, whereas the increase of remaining five equities has positive effects. Finally, three suggestions are provided to promote the development and growth of USOs. (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)

This study investigates why successful companies have pursued creating shared value (CSV) during the COVID-19 pandemic and the immediately ensuing post-COVID-19 era. The paper aims to achieve a better understanding of the triggers that induce companies to pursue CSV initiatives. A qualitative thematic analysis of cases of CSV involving 54 companies honored by Fortune magazine within its 2022 Change the World list was investigated and systematically reviewed. Based on the analysis, we identified and classified the motivators of CSV projects according (...) to various internal and external triggers. The qualitative results revealed seven types of internal triggers for CSV initiatives. These are: (1) following founder/leader philosophy or experience, (2) foreseeing customer growth and profit potential, (3) enhancing employee loyalty and commitment, (4) developing a future talent pool, (5) improving operational efficiency and cutting costs, (6) building differentiation weapons, and (7) becoming an industry pioneer. Seven types of external triggers for CSV initiatives were also identified. These comprise (1) economic benefits, (2) environmental protection, (3) human rights, (4) public health, (5) social justice, (6) partnership availability, and (7) government stimuli. This study contributes to the CSV literature by providing analyses of the motivators that have induced CSV initiatives during the COVID-19 era. We conclude by discussing the implications for business academics and practitioners. (shrink)

Breaking down complex philosophical issues into a step-by-step self-help guide, the founder of the Institute for Global Ethics shows us how to grapple with everyday issues and problems: Should I take my family on a much-needed vacation or save money for my children's education? Should we protect the endangered owl or maintain jobs for loggers? This is a unique, anecdote-rich, and articulate program that teaches us to think for ourselves rather than supplying us with easy, definitive answers. Offering concrete (...) guidelines and principles, Kidder enables us to resolve ethical dilemmas and to make the tough choice between what are usually two "right" values. (shrink)

The book contains thirty original articles dealing with important aspects of theoretical as well as applied economic theory. While the principal focus is on: the computational and algorithmic nature of economic dynamics; individual as well as collective decision process and rational behavior, some contributions emphasize also the importance of classical recursion theory and constructive mathematics for dynamical systems, business cycles theories, growth theories, and others are in the area of history of thought, methodology and behavioural economics. The contributors range (...) from Nobel Laureates to the promising new generation of innovative thinkers. This volume is also a Festschrift in honour of Professor Kumaraswamy Vela Velupillai, the founder of Computable Economics, a growing field of research where important results stemming from classical recursion theory and constructive mathematics are applied to economic theory. The aim and hope is to provide new tools for economic modelling. This book will be of particular appeal to postgraduate students and scholars in one or more of the following fields: computable economics, business cycles, macroeconomics, growth theories, methodology, behavioural economics, financial economics, experimental and agent based economics. It might be also of importance to those interested on the general theme of algorithmic foundations for social sciences. (shrink)

We examine the role of religious identity in promoting strategic renewal in privately held founder family firms. Religious identity in these firms refers to their collective sense of being that reflects their founders’ and owner family members’ espoused religious values and beliefs, thereby distinguishing themselves from others in what is central, distinct, and enduring about their organization. We propose that such a religious identity determines family firms’ spiritual capital, which influences strategic renewal activities such as conflict resolution and resource (...) allocation. Specifically, we argue that spiritual capital can be a double-edged sword when family firms pursue strategic renewal. We discuss the implications of our work for future research. (shrink)

We examine the role of religious identity in promoting strategic renewal in privately held founder family firms. Religious identity in these firms refers to their collective sense of being that reflects their founders’ and owner family members’ espoused religious values and beliefs, thereby distinguishing themselves from others in what is central, distinct, and enduring about their organization. We propose that such a religious identity determines family firms’ spiritual capital, which influences strategic renewal activities such as conflict resolution and resource (...) allocation. Specifically, we argue that spiritual capital can be a double-edged sword when family firms pursue strategic renewal. We discuss the implications of our work for future research. (shrink)

In considering what it means to lead organizations effectively and ethically, the literature comprising spirituality at work and spiritual leadership theory has become highly influential, especially in the USA. It has also attracted significant criticism. While in this paper, we endorse this critique, we argue that the strand of literature which purportedly takes a Christian standpoint within the wider SAW school of thought, largely misconstrues and misapplies the teaching of its founder, Jesus. As a result, in dismissing the claims (...) and application of SAW and SLT, there is a real risk that we lose the vital contribution of Christian thought, not least some of the timeless counter-cultural wisdom of Jesus which, we contend, offers a vital foundation to the practice of ethical leadership and business ethics in organizations. In proposing a way forward, two thorny issues which face all leaders are addressed: dealing with ego and closing the gap between what we say and what we do. The more we understand about the dynamics of human nature, the more we learn about the profundity of Jesus’ teachings. We then propose a number of ways in which Jesus-centred ethical leadership can be practised. Each is radical and each implies risk: both the personal risk of inner renewal arising from repentance as a doorway to personal integrity, as well as the risk of opposing unethical practices and promoting the excellence of core practices in the workplace. (shrink)

Philanthropic venture capital, like traditional venture capital, provides funding and value-added services to a portfolio of entrepreneurial firms. However, TVC differs from PhVC, as the primary goal of TVC is to maximize the economic return of its investments. In contrast, PhVC firms expect their portfolio companies to perform well in terms of both social and economic returns. Using both American and European firms, this paper explores and compares the human capital in PhVC and TVC firm founders. Our results show that (...) there are key differences in both general and specific human capital between these firm types. While both TVC and PhVC firm founders have high levels of commercial experience, TVC firm founders tend to hold degrees in science, engineering, business, and law more frequently than PhVC firm founders. PhVC founders also differ from TVC founders by having greater work experience in the social sector. (shrink)

We examine the impact of employing a female, versus a male, leader on future (t + 1) donations and operating margin using a sample of 4387 unique nonprofit organizations (NPOs) between 2011 and 2014. Using two-stage and matched sample designs, we find that NPOs headed by female leaders report higher future operating margins but lower future donations. We interpret these findings to mean that female leaders are more focused on fiscal responsibility than fundraising. We also find that female leaders with (...) past fundraising experience attenuate lower future donations, and at commercial nonprofits, female leaders with prior for-profit experience contribute to even higher operating margins. Moreover, while female leaders identified as the founder of the organization increase future donations, they have no effect on future operating margins. Collectively, the results of our study should increase nonprofit boards’ confidence in hiring female leaders thereby narrowing the gender disparity in leadership in the nonprofit sector. This study expands the extant literature by providing initial evidence on the effects of female leaders in NPOs thereby contributing to research exploring gender, diversity, management, and nonprofit executives. (shrink)

Investment Management makes heavy ethical demands which are not an optional add‐on, but part of the job of being a financial agent and fiduciary. The author is founder and President of Skandia Fonds, the Norwegian mutual funds management company affiliated with Skandia Group which pioneered the concept of green mutual funds in Norway. This paper was delivered at the Sixth Annual Conference of the European Business Ethics Network, held in Oslo last month. Its views are those of the (...) author, and do not necessarily represent his company's policy. (shrink)

Although Auguste Comte is conventionally acknowledged as one of the founders of sociology and as a key representative of positivism, few new editions of his writings have been published in the English language in this century. He has become virtually dissociated from the history of modern positivism and the most recent debates about it. Gertrud Lenzer maintains that the work of Comte is, for better or for worse, essential to an understanding of the modern period of positivism. This collection provides (...) new access to the work of Comte and gives practitioners of various disciplines the possibility of reassessing concepts that were first introduced in Comte's writings. Today much of the ordinary business of academic disciplines is conducted under the assumption that the realm of science is essentially separate from the realms of politics and science. A close reading of Comte will reveal how deeply such current ideas and theories were originally embedded in a particular political context. One of his central methodological principles was that the theory of society had to be removed from the arena of political practice precisely in order to control that practice by means of these same sciences. It is in Comte's work that the reader will be able to observe how the forces of social and political reaction began to be powerfully organized to combat the critical forces in its own and later eras. Auguste Comte and Positivism will be of importance to the work of philosophers, sociologists, political theorists, and historians. (shrink)

In considering what it means to lead organizations effectively and ethically, the literature comprising spirituality at work and spiritual leadership theory has become highly influential, especially in the USA. It has also attracted significant criticism. While in this paper, we endorse this critique, we argue that the strand of literature which purportedly takes a Christian standpoint within the wider SAW school of thought, largely misconstrues and misapplies the teaching of its founder, Jesus. As a result, in dismissing the claims (...) and application of SAW and SLT, there is a real risk that we lose the vital contribution of Christian thought, not least some of the timeless counter-cultural wisdom of Jesus which, we contend, offers a vital foundation to the practice of ethical leadership and business ethics in organizations. In proposing a way forward, two thorny issues which face all leaders are addressed: dealing with ego and closing the gap between what we say and what we do. The more we understand about the dynamics of human nature, the more we learn about the profundity of Jesus’ teachings. We then propose a number of ways in which Jesus-centred ethical leadership can be practised. Each is radical and each implies risk: both the personal risk of inner renewal arising from repentance as a doorway to personal integrity, as well as the risk of opposing unethical practices and promoting the excellence of core practices in the workplace. (shrink)

This study examines whether and how a CEO’s personal traits (gender, altruism, age, and founder) influence organizational performance. Building upon upper echelons theory, this study develops a conceptual framework that gives explicit recognition to how the institutional environment surrounding the CEOs shapes their characteristics, which, in turn, are reflected in the different organizational strategies and performance. This study moves beyond the existing focus on for-profit corporations and conducts the empirical analysis on a novel, hand-collected, longitudinal dataset of 1342 firm-year (...) observations of 128 faith-based charity organizations operating in a major developing, Muslim-majority country in the period 1996–2019. This study reveals that those faith-based charity organizations led by CEOs with specific personal traits (woman, altruistic, young, and founder) exhibit better organizational performance. Importantly, CEOs’ personal traits, however, do not have a uniform, systematic effect; their effect is generally strengthened when the CEO is also the founder of the faith-based charity organization, given the greater latitude of managerial discretion that a CEO has in managing the organization. Our findings have important implications for individual charity organizations; their board of directors; and their stakeholders, in particular the communities they serve, as well as the whole society where they operate. (shrink)