An extensive body of literature in sociology and anthropology has shown that different societies have developed different structures for exchange of items such as goods, status and information. The purpose of this paper is to demonstrate how social exchange theory can help illuminate many of the underlying bases of different ethical perspectives in debates about social exchanges. Social exchange theory is applied to three common types of knowledge exchange – R&D joint ventures, commercial intellectual property exchange and academic exchange. Two (...) key factors that underlie different ethical perspectives are shown to be differences in structures for social exchange and differences in views of the alienability of knowledge from its originator. (shrink)

This paper posits that differences in corporate governance structure partly result from differences in institutional arrangements linked to business systems. We developed a new international triad of business systems: the Anglo-American, the Communitarian and the Emerging system, building on the frameworks of Choi et al. (British Academy of Management (Kynoch Birmingham) 1996, Management International Review 39, 257–279, 1999). A common factor determining the success of a corporate governance structure is the extent to which it is transparent to market forces. Such (...) transparency is more than pure financial transparency; as it can also be based on factors such as governmental, banking and other types of institutional transparency mechanism. There may also be a choice for firms to adopt voluntary corporate disclosure in situations where mandatory disclosure is not established. The Asian financial crisis of 1997–1999 and the more recent corporate governance scandals such as Enron, Andersen and Worldcom in the United States and Ahold and Parmalat in Europe show that corporate governance and business ethics issues exist throughout the world. As an illustration we focus on Asia’s emerging1 markets, as, both in view of the pressure of globalization and taking into account the institutional arrangements peculiar to the emerging business system, these issues are important there. Particularly for those who have to find an accommodation between the corporate governance structures and disclosure standards of the Emerging system and those of the Anglo-American and Communitarian systems. (shrink)

The gulf between multinational enterprises’ focus on high income countries and the reality of 80% of the world living in developing, bottom of pyramid (Hahn, J Bus Ethics 84:313–324, 2009 ) economies could magnify the anti-globalisation movement and political backlashes in the twenty-first century. The global financial crisis of 2008 and 2009 has increased such social tensions throughout the world and creates greater challenges for, responsible leadership. In this conceptual article, the authors analyse the value and identity of local managers, (...) and the liability of foreignness caused by over-reliance on expatriate managers and under-reliance on local managers in bottom of pyramid countries (Hahn, 2009 ). It is argued that multinational enterprises need to assess local managers’ knowledge and contributions as having not only operational and market value, but also institutional value, such as access to local knowledge and local social capital; such a holistic approach will ensure fairer, equal treatment of all managers in the multinational enterprise. Responsible leadership in the twenty-first century requires a greater appreciation of local managers’ institutional value and the overcoming of any psychological distance towards local managers of bottom of pyramid countries. (shrink)

The global corporate scandals such as Enron, Worldcom and Global Crossing have raised fundamental issues of business ethics as well as economic, social and anthropological questions concerning the nature of business competition and global capitalism. The purpose of this conceptual paper is to introduce the concept of "welfare exchange" to the existing notions of economic, social and anthropological notions of business and exchange in markets and society in the 21st century. Global competition and business success in the 21st century continue (...) to raise the nature of economic value and the interaction among diverse actors in international markets, institutions and society. We believe that the nature of such exchange between consumers and organizations, which can also be termed social marketing, need to increasingly take into account a welfare and ethical component. In this paper, we introduce our concept of welfare exchange to emphasize the importance of such welfare and ethical issues in the global business environment of the 21st century. (shrink)

One of the greatest problems facing luxury goods firms in a globalizing market is that of counterfeiting. The purpose of this paper is to analyze the different types of counterfeiting that take place in thefashion industry and the ethical issues raised. We argue that the problem partly lies in the industry itself. Copying of designs is endemic and condoned, which raises several ethical dilemmas in passing judgment on the practice of counterfeiting. We analyze the ethical issues in a number of (...) different types of counterfeiting encountered in the fashion industry. We conclude with some observations on the general implications for ethics in intellectual property rights. (shrink)

A majority of the countries in the world are still considered "developing," with a per capita income of less than U$1,000. Hahn (2008, Journal of Business Ethics 78, 711–721) recently proposed an ambitious business ethics research agenda for integrating the "bottom-of-the-pyramid" countries (Prahalad and Hart, 2002, Strategy and Competition 20, 22–14) through sustainable development and corporate citizenship. Hahn's work is among the growing field of research in comparative business ethics including the global business ethics index (Michalos, 2008, Journal of Business (...) Ethics 79(1), 9–19; Scholtens and Dam, 2008, Journal of Business Ethics 75(3), 273–284; Tsalikis and Seaton, 2008, Journal of Business Ethics 75(3), 229–238). This article is complementary to Hahn's work and it advocates an urgent need for business ethics researchers to globally integrate the bottom-of-thepyramid countries through a fundamental re-definition of the global economic triad, including the United States, Western Europe, and Japan [Ohmae, 1985, Triad Power: The Coming Shape of Global Competition (New York: Free Press)]. The definition that we propose is based on business systems and institutional perspectives that include the bottom-of-the-pyramid countries. We also propose to broaden the research in business ethics to enable comparisons across business systems indifferent income levels. (shrink)

The ethical governance of the global Internet is an accelerating global phenomenon. A key paradox of the global Internet is that it allows individual and collective decision making to co-exist with each other. Open source software (OSS) communities are a globally accelerating phenomenon. OSS refers to groups of programs that allow the free use of the software and further the code sharing to the general and corporate users of the software. The combination of private provision and public knowledge and software, (...) and the seeming paradox of economic versus social motivations have stimulated a wide debate between researchers and policymakers. In this article, we analyze OSS communities from the viewpoint of "intrinsic motivation," knowledge creation, and collective Internet governance. We believe that the growth of global OSS has fundamental implications for business ethics and the governance of the global Internet in the twenty-first century. (shrink)

Networks and the World Wide Web seem to provide an answer to efficiently creating and disseminating knowledge resources. Knowledge, however, is ambiguous in character, and contains both explicit (information) and tacit dimensions - the latter being difficult to value as well as to transfer. Participant identity, commitment and behaviour within the network also affect the sharing of knowledge. Hence, existing laws and norms (including property rights) which have been established on the basis of discrete transactions and monetary value-oriented exchange may (...) not be adequate to deal with the whole spectrum of knowledge transfer. A model is needed to address transfer across a large heterogeneous network. We introduce the concept of sub-networks where tacit knowledge resides and argue that considering social norms underlying trust and other informal mechanisms provides a more suitable basis for understanding the exchange of tacit knowledge. Norm establishment is complicated by the fact that values differ across cultures; however, the social norms that underpin sub-networks can sustain knowledge transfer within them. The purpose of this conceptual article is to introduce the concept of sub-networks and to identify the sub-network/network relationship as an area in which it is necessary to look beyond property rights and raise the issue of norms. We believe that an analysis of the role of social norms in knowledge sub-networks and their interaction with global networks points to a key element in understanding networks and any emerging theory of network ethics in the twenty-first century. (shrink)

The influence of celebrities in the 21st century extends far beyond the traditional domain of the entertainment sector of society. During the recent Palestinian presidential elections, the Hollywood actor Richard Gere broadcast a televised message to voters in the region and stated, “Hi, I’m Richard Gere, and I’m speaking for the entire world”. Celebrities in the 21st century have expanded from simple product endorsements to global political and international diplomacy. The celebrities industry is undergoing, “mission creep”, or the expansion of (...) an enterprise beyond its original goals (Hyde, 2009 ). The global internet is one of the major drivers of this phenomenon. The contribution of this paper is to analyse this global phenomenon and the potential implications for business ethics research. (shrink)

In today''s business environment, the knowledge-based society, globalisation, and information and communication technologies (ICT) have increased the role of "intangible" values of assets and resources for all industries. As a result there is an increased role for knowledge intermediaries; one of these, advertising, plays an important role in affecting consumer choice and knowledge. Ethical issues which arise for traditional purveyors of intangibility – cultural industries such as art, music, or film, spread to advertising. Building on our perspective of the measurement (...) of intangibles we propose a new categorisation of types of goods or services, and a framework for identifying some future ethical challenges in today''s global knowledge based society. (shrink)

Robert Putnam in his book Bowling Alone and subsequent works has analysed the phenomenon that American society increasingly avoids various community driven activities, such as civic associations, activities with friends and family (Putnam, Bowling Alone. Simon and Schuster, New York; 2006). In this paper we introduce the idea that a counterpart to this social trend is a global addiction to fame and celebrity. We believe that the global internet is one of the major drivers of this search for fame for (...) the sake of being famous. However, most people aspiring to be famous celebrities will not succeed in this quest, and become disappointed. The purpose of this paper is to analyse the ethical implications of such social contagion, bandwagon effects in today's global business environment towards fame and celebrity. The contribution of this paper is to provide a future direction for research on business ethics in terms of this growing global phenomenon of fame and celebrity addiction. (shrink)

The topic of women and globalization raises fundamental questions on the impact of globalization on women, ethnic minorities and other socio-demographically under-represented actors in global organizations. This article seeks to integrate theories of procedural justice, psychological contracts, motivation and psychological ownership in knowledge transfer in global organizations, and the implications for women, and other under-represented actors. Our analysis concurs with current research on the need for a relativist perspective in business ethics research and one that encompasses the critical processes of (...) exchange from a cognitive perspective. Our contribution is to show that globalization is a complex process, that has different impacts on actors, an impact that can vary widely depending on, whether the actors are in a dominant situation, or as in the case of women and ethnic minorities, in a relatively socio-demographic and geo-politically under represented situation. (shrink)

There has been an intellectual debate at least since the 1960s in business ethics on the role of the media in relation to consumer choice driven by either habits or rationality. If consumers are totally rational, then the global media and global corporations provide just information and knowledge. If consumers are influenced by habit then large corporations and global media can greatly influence consumer choice and create problems of self-control (Ainslie, 1992, Pico Economics: The Strategic Interaction of Successive Motivational States (...) Within the Person, Cambridge University press, Cambridge). In this article, we provide a synthesis and integrated approach to this continuing debate. We provide a more institutional approach to consumer choice based on social conventions, rather than just on individual habits and lapses in self-control. (shrink)

This article analyses MNCs, worker identity and the ethical vulnerability caused by over-reliance on expatriate managers and under-reliance on local managers, who are often undervalued. It is argued that MNCs not only need but also have an obligation to assess local managers’ knowledge and contributions as having not only operational and market values, but also institutional value. Local managers both give access to and form part of local social capital and the treatment they receive is an element in the CSR (...) performance of the MNCs. Recognition of the value of equal treatment creates an ethical imperative that the barriers of cultural difference be overcome. We see such an approach towards local managers as more fully taking into account the human rights of these local managers. Such a holistic approach is increasingly relevant for MNCs in the 21st century, as MNCs increasing globalize into new large emerging markets such as Brazil, Russia, India and China. (shrink)