This article reports the results of research to develop a survey instrument and its use to validate an ethical business culture construct (CEBC Model). The reported three-stage quantitative study builds on our previous qualitative work, aimed at identifying dimensions of ethical business cultures. The research resulted in a parsimonious construct, covering five dimensions of ethical business cultures, and a ten-question instrument, measuring this construct. In this article, we report results of exploratory and confirmatory (...) factor analyses and convergent construct validity testing, discuss the potential applications of the construct and instrument in assessment and development of ethical business cultures, and provide recommendations for industry practitioners and for further research. (shrink)

The purpose of this study was to identify general characteristics attributed to ethical business cultures by executives from a variety of industries. Our research identified five clusters of characteristics: Mission- and Values-Driven, Stakeholder Balance, Leadership Effectiveness, Process Integrity, and Long-term Perspective. We propose that these characteristics be used as a foundation of a comprehensive model that can be engaged to influence operational practices in creating and sustaining an ethical business culture.

Richard Kyte offers a handbook for navigating the challenges of todays business world using proven and accessible methods for thinking through complicated problems on ones own, reaching consensus within groups, and communicating controversial decisions to others. By using real-life examples and case studies, providing discussion questions and additional resources at the conclusion of each chapter, Kyte demonstrates the way a virtuous office culture can yield ethical decision making.

The demand from society for organizations to be ethical and responsible is growing, and the cost of irresponsible behavior is often huge. Unethical action can dramatically affect the future of a company or destroy it all together.Ethical Leadership shines a light on the role of both culture and ethics in organizations by making the issues more transparent, accessible and above all, connected. Business leaders are now accountable for showing that they have the correct ethical policies (...) and culture in place. Cultural and behavioral change consultant Andrew Leigh focuses on the fact that ethical culture is manifest in the actual behavior and attitudes of all staff, rather than in policy documents.While there are very few absolutes when it comes to ethics, there are clear ways to be a responsible leader, and Ethical Leadership is full of practical strategies, case studies and action points which will help leaders to improve and manage ethical culture in their organizations. (shrink)

What is the impact of mission on ethical business culture? This question was analyzed through a qualitative case study of a large nonprofit organization in the human services industry with a solid history of ethical business practices and consistent use of a values-based decision-making model. This research explored ethical decision making, ethical business culture, and congruence between enacted and espoused institutional values. Institutional values were identified, and the following pair of research (...) questions was examined: To what extent were incongruent values found between espoused and enacted values? To what extent did incongruent values impact the ethical business culture? Incongruent enacted values were present in the culture, but negative impact was diminished by a larger number of congruent enacted values. Additional findings revealed that an intense commitment to the mission by all employees was the common thread that wound throughout the organization’s ethical business culture and essentially abrogated the undesirable effects of incongruent and negative values. (shrink)

Downsizing remains a topic of great interest to both academics and practitioners. Yet, the impact of layoff decisions on perceptions of corporate social responsibility (CSR) has hardly been studied. We examine the impact of responsibility of business leaders making these layoff decisions, and characteristics of the downsizing implementation on convergence and divergence in (1) CSR perceptions, (2) victims’ perceptions of fairness, and (3) survivor commitment, in four countries. Using an experimental design, sixteen scenarios were distributed to (1) 163 managers (...) in Estonia, (2) 152 MBA students in India and 125 MBA students in France, and (3) 186 (non-traditional) undergraduate students in the USA. Results suggest that when top managers are attributed with the responsibility for downsizing, the resulting perceptions of CSR are negative. A similar pattern of results is obtained for victims’ perceptions of fairness and survivor commitment. In addition, although there are differences in effect-size based on differences in power distance, these results hold good (are similar) across the four countries, from four different society clusters. We discuss implications, limitations, and future research directions. (shrink)

This study focuses on the cultural context of ethical decision making by considering the relationship between power distance and ethical judgment. Specifically, we propose that this relationship exists because of the influence of peers on ethical judgment and perceptions of justice. Considering the importance of peers in stage three of Kohlberg's model of moral development, we argue that peers are the basis for social comparisons, social cues and social identification and, hence, are critical to an individual's beliefs (...) about justice. Using scenarios developed by Reidenbach and Robin, data were collected from German and Italian graduate business students. Germany and Italy differ substantially in power distance, but not in the three other cultural dimensions of Hofstede. Results show that the ethical assessment of the respondents from the two countries differs when justice criteria are used. Theoretical and practical implications of the results are discussed. (shrink)

This study focuses on the cultural context of ethical decision making by considering the relationship between power distance and ethical judgment. Specifically, we propose that this relationship exists because of the influence of peers on ethical judgment and perceptions of justice. Considering the importance of peers in stage three of Kohlberg's model of moral development, we argue that peers are the basis for social comparisons, social cues and social identification and, hence, are critical to an individual's beliefs (...) about justice. Using scenarios developed by Reidenbach and Robin, data were collected from German and Italian graduate business students. Germany and Italy differ substantially in power distance, but not in the three other cultural dimensions of Hofstede. Results show that the ethical assessment of the respondents from the two countries differs when justice criteria are used. Theoretical and practical implications of the results are discussed. (shrink)

The authors of this article contend that traditional corruption, which was largely blamed for the current situation in the Icelandic economy, was perhaps not the most fundamental reason for the ensuing crisis. The weak business culture and a symbiosis of business and politics have actually allowed for the bulk of self-erving and unethical decisions made by the Icelandic business and political elite. In order to illustrate this point, 10 expert interviews have been conducted within the period (...) of 6 months in 2009 to support in-depth research carried out by the authors. The article also discloses questionable business practices that have recently come to the attention of the public both in Iceland and abroad and that ultimately facilitated the downfall of the Icelandic economy. While traditional corruption has probably played its role in this downfall, the measures currently employed to determine its level did not account for various peculiarities of Icelandic society. The article thus argues that there was a high level of corruption in Iceland, but it was outside of the traditional definition. This other corruption has ultimately prevented the government from acting appropriately upon the questionable business practices mentioned above. The article also offers some general recommendations which should be useful to both policy makers and business leaders wishing to engage in business activities in a transparent, ethical manner and learn from the tragic Icelandic experience. Among these recommendations are the necessity to recognize the limitations of current definitions of corruption, as well as a word of caution to commercial enterprises to pay a close attention not only to commonly accepted indices and mainstream reports but also to a country's history, culture, and political environment, prior to making any sort of investment decisions in that country. (shrink)

The array of literature on ethical behaviour tends to focus on what's happening at the extremes - either owner managers of start-ups on a strong moral crusade, or large corporations undergoing change due to the personal epiphany of a forward-thinking CEO. This book is directed at the middle ground - individuals who want their companies to adopt more ethical and sustainable practices. Each of the 50 thoughts provide direction to help society and the planet whilst preserving the bottom (...) line. A more thoughtful business practice is also highly commercial. An ethical journey should become central to the company's communications strategy - helping to set you apart from your competition. Ethical practices must be supported from the top down and be a true part of a company's culture, and this book will provide you with the tools to adopt a more ethical approach to the business. (shrink)

Even if there were widespread cross-cultural agreement on the normative issues of business ethics, corporate ethics management initiatives (e.g., codes of conduct, ethics telephone lines, ethics offices) which are appropriate in one cultural setting still could fail to mesh with the management practices and cultural characteristics of a different setting. By uncritically adopting widely promoted American practices for managing corporate ethics, multinational businesses risk failure in pursuing the ostensible goals of corporate ethics initiatives. Pursuing shared ethical goals by (...) means of culturally inappropriate management practices, in short, can undermine the effectiveness of ethics management efforts. This article explicates how several important dimensions of culture can influence the effectiveness of common ethics initiatives, and recommends the development and application of a culture-structure contingency analysis in the task of encouraging ethical behavior in global businesses. (shrink)

Investigates the intent, method and structural unity of Thomas Aquinas's Summa Contra Gentiles. The author of this study argues that the intended audience is Christian and that the subject is Christian wisdom.

This study focuses on comparison of perceptions of ethical business cultures in large business organizations from four largest emerging economies, commonly referred to as the BRICs (Brazil, Russia, India, and China), and from the US. The data were collected from more than 13,000 managers and employees of business organizations in five countries. The study found significant differences among BRIC countries, with respondents from India and Brazil providing more favorable assessments of ethical cultures of their organizations (...) than respondents from China and Russia. Overall, highest mean scores were provided by respondents from India, the US, and Brazil. There were significant similarities in ratings between the US and Brazil. (shrink)

Business ethics has become a very important concern in global business and understanding the effects of various factors on ethical judgments continues to attract research and practitioner attention. Using the Multidimensional Ethics Scale with its five generally accepted philosophical constructs, and vignettes developed by Cohen et al., current study investigates the relationship between cultural values, personality, religiosity and the ethical sensitivity of business students. We focus on a rapidly emerging country, Turkey, whose economic environment is (...) similar to that of the most Western nations but with a significantly different background and cultural values. Data for the study is collected from a major university in the southeastern Turkey. Although some significant relationships are identified between ethical sensitivity and cultural values and personality, our study findings confirm that MES dimensions had the highest influence on ethical sensitivity levels of business students. (shrink)

The aims of this study were to investigate what kinds of personal work goals managers have and whether ethical organisational culture is related to these goals. The sample consisted of 811 Finnish managers from different organisations, in middle and upper management levels, aged 25–68 years. Eight work-related goal content categories were found based on the managers self-reported goals: (1) organisational goals (35.4 %), (2) competence goals (26.1 %), (3) well-being goals (12.1 %), (4) career-ending goals (7.3 %), (5) (...) progression goals (6.8 %), (6) prestige/influence goals (4.2 %), (7) job change goals (4.2 %) and (8) employment contract goals (3.9 %). Ethical organisational culture operated as a context for personal goal setting: Those managers who evaluated their organisational culture as more ethical were more likely to report organisational goals (e.g. goals toward the success or performance of the organisation). However, if managers gave lower ratings regarding ethical culture, then they named job change and career-ending goals in more cases. Therefore, investing into ethical virtues of the organisational culture can promote managers’ personal work goals, which also benefit the organisation. (shrink)

Institutions are a kind of social infrastructure that facilitates – or hinders – human co-ordination and allocation of resources. Thus they function as a rationality context, which simultaneously emerges from and governs human interactions. Business institutions, as they are related to human expectations, should promote the values of their stakeholders and, consequently, they are subjects of social and ethical accounting, auditing and reporting procedures. Ethical institutions make the good of their stakeholder groups part of the institution’s own (...) good. They have a clear vision and picture of integrity throughout the institution which is owned and embodied by top management, over time. Such a practice presumes that business institutions, e.g. corporations, are social cultures with character, which can exercise good or bad influence, depending on goals, policies structures, strategies that formalize relations among the individuals who build up corporations. For developing an ethical culture, corporations need a large scale of instruments as codes of ethics and other kinds of support structures throughout the organization to insure their adequate communication, oversight, enforcement, adjudication, and review. Between all these instruments, a special role could be played by the ethics officer and the ethics committee, ethics trainings, ethics audits but also by the implementation of responsibility and participatory decision making at lower levels in the organisation. (shrink)

Business Ethics is often regarded as a low priority in newly formed democracies, because it seems there are more urgent demands that have to be dealt with first. In this paper it is argued that this perception is not only wrong, but also dangerous. A lack of morality in business can undermine exactly those priorities that newly formed democracies regard as most urgent.It starts by indicating why morality in business is a precondition for the legitimacy of a (...) market economy as well as for excellence in a global market economy. It continues to argue that ethics in business is also a precondition for establishing a legitimate political democracy. Once the necessity of moral business behaviour has been argued, the focus shifts to the main stumbling blocks that impede the development of moral business culture in newly formed democracies such as South Africa. (shrink)

Institute a proactive reputational management framework that matches individual behaviour to organizational values The Business Ethics Twin-Track is a practical guide to reputational risk management. A deep exploration of the concept of reputation, the ways in which it can suffer, and the consequences when it does, the book outlines an ethics controls framework that can mitigate risk and improve business performance. Readers will learn how to identify and manage weaknesses, and how to institute a system of governance that (...) embeds proper, ethical conduct into the corporate culture. A clear set of controls and procedures provides actionable instruction that can be customised to suit the organisational structure, and discussion of historical and international ethics provides the context for implementation. Case studies illustrate the real-world applications, while interviews with executives from a variety of sectors provide important practical insights into some of the key issues discussed in the book. The law regulates behaviour in health and safety and financial crime, but otherwise, conduct is largely determined by the culture, ethics and values of an organisation. Effective reputation management is complex, and often difficult to achieve, as much of the available information on the topic is more theoretical than practical. This book bridges the gap by providing the tools that will help managers to: Implement a modern ethics control framework, encompassing codes, officers, reporting lines and training Consider the role of the media and social media in reputational damage to individuals and organisations Analyse the key controls in responsibility and governance frameworks from around the world Determine the causes and controls of conduct risk, including incompetence, negligence and criminality Today's fast-paced media environment means corporate reputations can be obliterated in moments, and damage limitation is often too little, too late. Adopting the measures set out in this book will embed ethics into the culture, and match people's behaviours to the organisation's values. (shrink)

We live in a 'bimoral' society, in which people govern their lives by two contrasting sets of principles. On the one hand there are the principles associated with traditional morality. Although these allow a modicum of self-interest, their emphasis is on our duties and obligations to others: to treat people honestly and with respect, to treat them fairly and without prejudice, to help and are for them when needed, and ultimately, to put their needs above their own. On the other (...) hand there are the principles associated with the entrepreneurial self-interest. These also impose obligations, but of a much more limited kind. Their emphasis is competitive rather than cooperative: to advance our own interests rather than to meet the needs of others. Both sets of principles have always been present in society but in recent years, traditional moral authorities have lost much of their force and the morality of self-interest has acquired a much greater social legitimacy, over a much wider field of behavior, than ever before. The result of this is that in many situations it is no longer at all apparent which set of principles should take precedence. In this book, John Hendry traces the cultural and historical origins of the 'bimoral' society have also led to new, more flexible forms of organizing, which have released people's entrepreneurial energies and significantly enhanced the creative capacities of business. Working within these organizations, however is fraught with moral tensions as obligations and self-interest conflict and managers are pulled in all sorts of different directions. Managing them successfully poses major new challenges of leadership, and 'moral' management, as the technical problem-solving that previously characterized managerial work is increasingly accomplished by technology and market mechanisms. The key role of management becomes the political and moral one of determining purposes and priorities, reconciling divergent interests, and nurturing trust in interpersonal relationships. Exploring these tensions and challenges, Hendry identifies new issues of contemporary management and puts recognized issues into context. He also explores the challenges posed for a post-traditional society as it seeks to regulate and govern an increasingly powerful and global business sector. (shrink)

We analyze ethical policies of firms in industrialized countries and try to find out whether culture is a factor that plays a significant role in explaining country differences. We look into the firm’s human rights policy, its governance of bribery and corruption, and the comprehensiveness, implementation and communication of its codes of ethics. We use a dataset on ethical policies of almost 2,700 firms in 24 countries. We find that there are significant differences among ethical policies (...) of firms headquartered in different countries. When we associate these ethical policies with Hofstede’s cultural indicators, we find that individualism and uncertainty avoidance are positively associated with a firm’s ethical policies, whereas masculinity and power distance are negatively related to these policies. (shrink)

This book concentrates on some leading questions in business ethics research in the last two decades and tries to find explanations concerning cultural issues. It focuses on the alignment or congruence between business ethics and cultural contexts with a special emphasis on Eastern European countries. The core of this book is doing business in Central and Eastern Europe (CEE) in order to throw light on the cultural issues related to business ethics. Its primary purpose is a (...) finer view of the impact of national, organizational and professional cultures in business ethics. The general questions encountered in this book are related to the nexus between culture and ethics in (CEE), national, organizational and professional cultures' link to (CEE) countries' ethics. The aim of this book is a deeper understanding of the cultural differences in Central and Eastern Europe. This might help organizations provide better opportunities for doing business across a wide cultural spectrum. With the increase of global mobility, cultural and ethical issues become more and more important. Multi-national corporations might garner a competitive advantage when they understand the importance of local culture and ethics. International business professionals may benefit from a deeper understanding of cultural values that affect the perceptions of individuals during negotiation and decision-making across cultures. Multinational companies that do not take into consideration or minimize the importance of cultural and ethical issues expose themselves to a higher risk of failure. The expectation of the authors of this book is that the conclusions would help alert international business scholars and practitioners of the need to thoroughly understand the cultural issues influencing ethics. (shrink)

This book concentrates on some leading questions in business ethics research in the last two decades and tries to find explanations concerning cultural issues. It focuses on the alignment or congruence between business ethics and cultural contexts with a special emphasis on Eastern European countries. The core of this book is doing business in Central and Eastern Europe (CEE) in order to throw light on the cultural issues related to business ethics. Its primary purpose is a (...) finer view of the impact of national, organizational and professional cultures in business ethics. The general questions encountered in this book are related to the nexus between culture and ethics in (CEE), national, organizational and professional cultures' link to (CEE) countries' ethics. The aim of this book is a deeper understanding of the cultural differences in Central and Eastern Europe. This might help organizations provide better opportunities for doing business across a wide cultural spectrum. With the increase of global mobility, cultural and ethical issues become more and more important. Multi-national corporations might garner a competitive advantage when they understand the importance of local culture and ethics. International business professionals may benefit from a deeper understanding of cultural values that affect the perceptions of individuals during negotiation and decision-making across cultures. Multinational companies that do not take into consideration or minimize the importance of cultural and ethical issues expose themselves to a higher risk of failure. The expectation of the authors of this book is that the conclusions would help alert international business scholars and practitioners of the need to thoroughly understand the cultural issues influencing ethics. (shrink)

Does Christian faith matter in business? If so, how does it affect the way executives handle managerial issues, especially the ones that are ethically controversial? This paper reports a study of Chinese Christian executives in Hong Kong. The researchers followed an approach known as the Critical Incident Technique and conducted in-depth interviews with 119 Chinese Christian executives over a two year period from 1999 to 2001. Each interview covered four broad areas consisting of the interviewee''s description of his or (...) her Christian faith, business experience, reported critical incidents and general remarks on faith and work. For each reported critical incident, the interviewee deliberated on the incident and its background, his or her response, the rationale behind the response and its consequences. Each interview was tape recorded for transcription and analysis. The major contribution of this study is to propose and document a typology of the executives'' responses to ethical challenges in business. The typology is based on earlier work on Christ and culture and styles of negotiation. Preliminary research findings indicate that the proposed typology is an effective paradigm. It has the promise of enabling Christian executives to reflect critically on their ethical behavior and to guide their thought towards more effective responses to ethical challenges. (shrink)

Business relations rely on shared perceptions of what is acceptable/expected norms of behavior. Immense expansion in transnational business made rudimentary consensus on acceptable business practices across cultural boundaries particularly important. Nonetheless, as more and more nations with different cultural and historical experiences interact in the global economy, the potential for misunderstandings based on different expectations is magnified. Such misunderstandings emerge in a growing literature on "improper" business practices – articulated from a narrow cultural perspective. This paper (...) reports an ongoing research on the cultural and contextual aspects of business ethics. The objective is to investigate how the perception/attitudes of business students towards the ethical dimension of doing business varies in different countries; Whether there are socio-cultural factors that influence the perception of ethicality in business practices. Research findings among business students in six countries: China, Egypt, Finland, Korea, Russia, and the U.S.A. are reported. While all groups had basic agreement on what constitutes ethical business practices, differences are found in the respondents'' tolerance to damage resulting from "unethical" behavior. Without underestimating the role of national culture, variations in research results also point to the importance of current socio-political developments in the relevant countries. Implications for business teaching and management development are discussed. (shrink)

Recent events at Enron, K-Mart, Adelphia, and Tyson would seem to suggest that managers are still experiencing ethical lapses. These lapses are somewhat surprising and disappointing given the heightened focus on ethical considerations within business contexts during the past decade. This study is designed, therefore, to increase our understanding of the forces that shape ethical perceptions by considering the effects of business school education as well as a number of other individual-level factors (such as intra-national (...) culture, area of specialization within business, and gender) that may exert an influence on ethical perceptions. We found significant effects for business education, self-reported intra-national culture, area of specialization within business, and gender for some and/or all areas of ethics examined (i.e., deceit, fraud, self-interest, influence dealing, and coercion). One of our most encouraging findings is that tolerance for unethical behavior appears to decrease with formal business education. Despite the prevalent stereotype that business students are only interested in the bottom line or that business schools transform idealistic freshman into self-serving business graduates, our results suggest otherwise. Given the heightened criticism of the ethicality of contemporary managerial behavior, it is heartening to note that, even as adults, individuals can be positively affected by integration of ethics training. (shrink)

The aim of this literature-based study is to explore the influence of socio-cultural factors on business ethics in post-soviet countries with dissimilar cultural contexts. Specifically, this article seeks to identify and compare contextual influences on informal norms of morality in business in transitional post-soviet societies. In order to pursue this investigation, the countries of Belarus and Estonia were identified as being among the most noteworthy examples of culturally different post-soviet countries in transition. The study reveals contradictory manifestations of (...) mixtures of business norms in both Estonia and Belarus, which are conditioned by the merger of an autocratic bureaucratic soviet system with more participative and empowering forms of western management. The most persistent changes relate to moves from patriarchal and paternalistic types of relationship and low work motivation. The significance of these differences, which include nationality and religious legacies, will almost inevitably be overlooked should the countries be placed under the general umbrella of'former soviet states' when considering business ethics in these contexts. (shrink)

The United States Marine Corps (USMC) trains 40,000 recruits in ethical conduct each year. The Marines operate under highly stressful conditions and are perceived as moral exemplars. This study investigates their recruit training practices at Parris Island, SC and suggests applications consistent with ethical and psychological research that offer potential for building ethical corporate cultures and improving ethical behavior. The lessons were: 1) select values that fit the business, 2) use organizational-derived “hero stories”, 3) socialize (...) members with conviction and repetition, 4) utilize line leaders to conduct the training to provide specific guidelines for behavior, 5) closely monitor and reward ethical behavior, 6) add emotional control to the cognitive training, and 7) train with realistic business simulations. The seven lessons from the USMC can help business leaders earn a reputation for trustworthy leadership, a vital corporate asset. (shrink)

The United States Marine Corps (USMC) trains 40,000 recruits in ethical conduct each year. The Marines operate under highly stressful conditions and are perceived as moral exemplars. This study investigates their recruit training practices at Parris Island, SC and suggests applications consistent with ethical and psychological research that offer potential for building ethical corporate cultures and improving ethical behavior. The lessons were: 1) select values that fit the business, 2) use organizational-derived “hero stories”, 3) socialize (...) members with conviction and repetition, 4) utilize line leaders to conduct the training to provide specific guidelines for behavior, 5) closely monitor and reward ethical behavior, 6) add emotional control to the cognitive training, and 7) train with realistic business simulations. The seven lessons from the USMC can help business leaders earn a reputation for trustworthy leadership, a vital corporate asset. (shrink)

A key issue in the business ethics field is the design of effective measures for assessing the ethical culture of organizations. The Corporate Ethical Virtues Model (CEV), developed by Kaptein in 2008, is an instrument for measuring ethical culture, and has been applied, adapted and validated in different contexts. In 2013, DeBode, Armenakis, Field and Walker developed the CEV–S, a shortened version of the original scale. Both the CEV and CEV–S assess eight dimensions based (...) on corporate ethical virtues: clarity, congruency of supervisors, congruency of senior management, feasibility, supportability, transparency, discussability and sanctionability. The objective of this study is to present a Spanish version of the CEV–S and its validation process. The scale was applied to two samples of 114 and 193 Colombian employees from two companies operating in the services sector. The confirmatory factor analyses revealed a good fit for the eight-factor structure of the Spanish CEV–S and the statistical tests applied showed good levels of reliability and validity for this scale. The adequate psychometric properties shown by the Spanish CEV–S may support its use in future research to measure organizational ethical culture in Spanish-speaking settings. (shrink)

The purpose of this study is to determine whether there are cross-cultural differences between Chinese and Canadian business students with respect to their assessment of the ethicality of various business behaviors. Using a sample of 147 business students, the results indicate cultural crossvergence; the Chinese (72 students) and Canadians (75 students) exhibit different ethical attitudes toward questionable business practices at the individual level but not at the corporate level. A social desirability bias (a tendency to (...) deny socially unacceptable actions and to admit to socially desirable ones) is also found to be a cross-cultural phenomenon, with the Canadians demonstrating a greater bias than the Chinese. Finally, this bias causes respondents to increase their assessment of the un-ethicality of questionable business activities. (shrink)

What is the role of leadership in organisational ethics? How does one develop an ethics strategy? How can ethics be embedded within corporate culture? What are the implications of the Companies Act and King IV for business ethics? 'Business ethics' 6th edition offers an introduction to the theoretical underpinnings of the field of business ethics, as well as practical guidance on governing and managing ethics in organisations. The combination of theory and practice makes the book useful (...) for graduate and post-graduate teaching, managerial training and the ethical orientation of members of professional associations."--Back cover. (shrink)

This paper describes and discusses the Enron Corporation debacle. The paper presents the business ethics background and leadership mechanisms affecting Enron''s collapse and eventual bankruptcy. Through a systematic analysis of the organizational culture at Enron (following Schein''s frame of reference) the paper demonstrates how the company''s culture had profound effects on the ethics of its employees.

The COVID-19 pandemic underscored longstanding fissures in China's business relationships with the West. If the West is going to develop a relationship of mutual trust, and improve business relations with China in the coming decades, it is imperative to understand how to engage with Chinese thinking on ethics in business-this book explains how. Policy-makers, businesspeople and business-ethicists have trouble communicating about issues in ethics, policy and business across the China-West divide. This book shows how to (...) overcome the us-versus-them mindset plaguing China-West relations by presenting to Western audiences an easy-to-understand yet deeply informed primer on core ideas and perspectives in Chinese cultural and philosophical thought. The book considers original texts of Chinese philosophy and religion, and applies principles from those writings to three business ethics topics of enduring interest to business executives, policy makers, and academics, namely, the protection of intellectual property, assurance of product safety and quality in the pharmaceutical supply chain, and human rights. This book is a must-read for those who want to forge constructive relationships with their Chinese counterparts based on mutual trust and understanding. The book is specifically relevant to business executives, but it should also be of interest to policymakers, educators and students who seek to communicate more effectively with their Chinese counterparts, in particular about difficult and contentious business, policy, and ethical issues. (shrink)

Although a number of articles have addressed ethical perceptions and behaviors, few studies have examined ethics across cultures. This research focuses on measuring the job satisfaction, customer orientation, ethics, and ethical training of automotive salespersons in the U.S. and Taiwan. The relationships of these variables to salesperson performance were also investigated. Ethics training was found to be negatively related to perceived levels of ethicalness and performance. High performance U.S. salespeople reported high ethical behavior, while the opposite was (...) true in Taiwan. Customer orientation in both countries was influenced by ethics training. Managers should evaluate current ethics training programs to insure correct ethical behavior is taught and rewarded. (shrink)

This study examines the cultural roots of ethical conflicts in the global business environment. It begins with a brief look at worldviews on ethical behavior in general. Based on this, it is argued that an in-depth understanding of ethical conflicts has been hampered by an overreliance on Western models and viewpoints. Three common sources, or bases, of ethical conflicts are discussed as they relate to business practices, including conflicts over tastes and preferences, the relative (...) importance of moral imperatives compared to legal requirements, and people’s level of tolerance for different values among others. It is then argued that an understanding of ethical conflicts can be facilitated through different levels of understanding, including the meaning of universal values, the relationship between values and practices, and the existence of multiple levels of conflict within the same organizations or industries. These specific and interrelated ingredients in cross-cultural ethical conflicts form the basis for a broader discussion of the meaning of truth as it relates to such conflicts. The paper concludes with the need for more research that is cross-cultural and multidisciplinary in order to improve theory building and managerial practice. (shrink)

The aim of this longitudinal study was to investigate the temporal dynamics of ethical organisational culture and how it associates with well-being at work when potential changes in ethical culture are measured over an extended period of 6 years. We used a person-centred study design, which allowed us to detect both typical and atypical patterns of ethical culture stability as well as change among a sample of leaders. Based on latent profile analysis and hierarchical (...) linear modelling we found longitudinal, concurrent relations and cumulative gain and loss cycles between different ethical culture patterns and leaders’ well-being. Leaders in the strongest ethical culture pattern experienced the highest level of work engagement and a decreasing level of ethical dilemmas and stress. Leaders who gave the lowest ratings on ethical culture which also decreased over time reported the highest level of ethical dilemmas, stress, and burnout. They also showed a continuous increase in these negative outcomes over time. Thus, ethical culture has significant cumulative effects on well-being, and these longitudinal effects can be both negative and positive, depending on the experienced strength of the culture’s ethicality. (shrink)

This paper reports the results of a survey of 842 undergraduate business students in four nations - the United States of America, the Peoples' Republic of China, Japan, and the Republic of Korea. This survey asked students to respond to four scenarios with potentially unethical business behavior and a string of questions related to the importance of ethics in business strategy and in personal behaviors. Based on arguments related to differences in recent historical experiences, the authors suggest (...) that student responses may be as different within the East Asian environment as they are between this environment as a whole and the USA. Survey results indicate a greater perception of ethical problems and more importance placed on ethics per se in business practices, as well as less of an emphasis on social harmony on the part of USA students. At the same time, substantial national differences in response are also witnessed within the set of East Asian students. A priori expectations as to the manner in which these East Asian responses should vary based on differences in recent historical experiences are partially, but not fully, supported. The authors argue that the key value of the reported research rests on a demonstration that national differences within a common cultural area can be as great as differences across cultural areas and that practitioners of global business must fine-tune their expectations as to acceptable business and personal actions to accommodate specific national historical experiences to be effective. (shrink)

In the wake of ethical scandals and close ethical scrutiny throughout business and the accounting professional today, Brooks/Dunn's BUSINESS & PROFESSIONAL ETHICS, 9E provides the ethical insights and strategies you need for corporate and professional success. Learn why ethical behavior is so important and how to recognize potential pitfalls that involve much more than memorizing rules. You master the skills to develop a corporate culture of integrity that maintains stakeholder support and enables directors (...) and auditors to complete their jobs. You also learn how to use ethical strategies to make decisions, as this edition examines the latest information on governance scandals, legal liability and professional accounting and auditing issues. More than 130 cases and readings highlight new and classic cases of fraud, bankruptcy and unprofessional practices to help you better understand appropriate codes of conduct and sound ethical reasoning while strengthening your persuasive and leadership skills for success. (shrink)

This paper argues that an African business ethic should take the promotion of cultural justice as one of its major tasks. After an explanation of globalisation as homogenizing cultural force that shapes moral identity, the notion of cultural justice as "unselfconscious living" is explained. This is then set in the context of an agenda for business ethics in Africa that would require more work on how a narrative moral identity is constructed, and how trans-cultural business environments could (...) be created and sustained. (shrink)

This study examines the role of codes of ethics in reducing the extent to which managers act opportunistically in reporting earnings. Corporate codes of ethics, by clarifying the boundaries of ethical corporate behaviors and making relevant social norms more salient, have the potential to deter managers from engaging in opportunistic financial reporting practices. In a sample of international companies, we find that the quality of corporate codes of ethics is associated with higher earnings quality, i.e., lower discretionary accruals. Our (...) results are confirmed for a subsample of firms more likely to be engaging in opportunistic reporting behavior, i.e., firms that just meet or beat analysts’ forecasts. Further, codes of ethics play a greater role in reducing earnings management for firms in countries with weaker investor protection mechanisms. Our results suggest that corporate codes of ethics can be a viable alternative to country-level investor protection mechanisms in curbing aggressive reporting behaviors. (shrink)

ABSTRACT:U.S. Organizational Sentencing Guidelines provide firms with incentives to develop formal ethics programs to promote ethical organizational cultures and thereby decrease corporate offenses. Yet critics argue such programs are cosmetic. Here we studied bank employees before and after the introduction of formal ethics training—an important component of formal ethics programs—to examine the effects of training on ethical organizational culture. Two years after a single training session, we find sustained, positive effects on indicators of an ethical organizational (...) culture (observed unethical behavior, intentions to behave ethically, perceptions of organizational efficacy in managing ethics, and the firm’s normative structure). While espoused organizational values also rose in importance post-training, the boost dissipated after the second year which suggests perceptions of values are not driving sustained behavioral improvements. This finding conflicts with past theory which asserts that enduring behavioral improvements arise from the inculcation of organizational values. Implications for future research are discussed. (shrink)