Ethics instructors often use cases to help students understand ethics within a corporate context, but we need to know more about the impact a case-based pedagogy has on students’ ability to make ethical decisions. We used a pre- and post-test methodology to assess the effect of using cases to teach ethics in a finance course. We also wanted to determine whether recent corporate ethics scandals might have impacted students’ perceptions of the importance and prevalence of (...) ethics in business, so we used in-depth case studies of several of the major scandals (e.g., Enron, Tyco, Adelphia). Our results are somewhat surprising since studying ethics scandals positively impacts students’ ethical decision making and their perceptions of the ethics of businesspeople. (shrink)

ABSTRACT Dr. Nancy Olivieri has become an icon of research integrity for her insistence on publishing adverse data about a drug she was investigating. She has been celebrated world‐wide as a hero of biomedical ethics for her bravery in disclosing potential dangers to research subjects, in the face of both drug company threats and coercive pressures from her hospital and university. Like so many other ‘whistle‐blowers’ however, she now faces both personal vilification and disturbing accusations of scientific error. The (...) case against Olivieri is assessed and found to be baseless. (shrink)

This article explores the issue of rebuilding an organization’s reputation following an ethical scandal. We divide our discussion into four parts. First, we discuss the concept of reputation. We note its relevance to today’s organizations, offer several contemporary definitions along with highlighting its benefits and downsides. In the second section, we offer the work of anthropologist, Victor Turner, on social drama along with other views on organizational efforts to rebuild their reputation to include reputation management routines. In the third section, (...) Turner’s redressive actions are integrated with Edgar Schein’s leadership mechanisms for building or changing culture to provide further understanding of organizational efforts to rebuild reputation following ethical scandals. Finally, in the fourth section of the article, we extend the integration of the Turner and Schein work with single- and double-loop redressive actions for rebuilding reputation. (shrink)

This paper explores how a particular form of regulation—prior ethical review of research—developed over time in a specific context, testing the claims of standard explanations for such change against more recent theoretical approaches to institutional changes, which emphasize the role of gradual change. To makes its case, this paper draws on archival and interview material focusing on the research ethics review system in the UK National Health Service. Key insights center on the minimal role scandals play in shaping (...) changes in this regulatory setting and how these depend upon the absence of a single coherent profession associated with biomedical research. (shrink)

The recent accounting scandals at Enron, WorldCom, and other corporations have helped to fuel a massive loss of confidence in the integrity of American business and have contributed to a very sharp decline in the U.S. stock market. Inasmuch as these events have brought ethical questions about business to the forefront in the media and public consciousness as never before, they are of signal importance for the field of business ethics. I offer some observations and conjectures about the (...) bearing of the recent scandals on the literature on business ethics. I defend the following contentions: 1. Recent events reveal serious weaknesses of the stakeholder theory about the social responsibilities of business which lacks prohibitions against fraud and deception. This is a glaring deficiency of standard versions of the stakeholder theory, but it is easily remedied by adding explicit prohibitions against fraud and deception. In addition, recent events highlight the stakeholder theory's very naive and unrealistic hopes and expectations for business executives as moral arbiters and agents of social improvement. 2. Recent events do not constitute an objection to the shareholder theory about the social responsibilities of business, however, these events make evident the implausibility of strong versions of the invisible hand theory. 3. Schemes of payment and reward often create perverse incentives for individuals to engage in unethical conduct. 4. Both the shareholder theory and the stakeholder theory need to add a constraint that requires executives to respect the professional obligations of employees. (shrink)

We draw on the concept of dignity to consider the ethics of the disposal of amputated limbs. The ethics of the management and disposal of human tissue has been subject to greater scrutiny and discussion in recent years, although the disposal of the limbs often remains absent from such discourses. In light of the recent UK controversy regarding failures in the medical waste disposal and the stockpiling of waste, the appropriate handling of human tissue has been subject to (...) further scrutiny. Although this scandal has evoked concern regarding procurement and supply chain issues, as well as possible health and safety risks from such a ‘stockpile’, the dignity of those patients’ implicated in this controversy has been less widely discussed. Drawing at Foster’s work, we argue that a dignity framework provides a useful lens to frame consideration of the disposal of limbs after amputation. Such a framework may be difficult to reconcile with the logic of business and the ‘biovalue’ of the medical waste, but would we argue afford more patient-centred approaches towards disposal. It may also facilitate better practices to help mitigate future stockpiling incidences. (shrink)

I want to argue here that certain Buddhist and Jewish thinkers say scandalous things on purpose. More scandalously still, I suggest that these statements are infused with deeply transformative ethical power, intended specifically as a way of relating to the dreadful fact of suffering. As scandals, these special responses to suffering intentionally rupture normal semantic patterns and sequences of thought, often through statements or actions which appear paradoxical. These scandalous statements are, in fact, always communicative in function, structure, and (...) intent, but they are designed to create a kind of 'cognitive dissonance'. The thinkers I consider here say scandalous things in order to cause a breaking-open in the consciousness of the hearer and practitioner, which produces compassion, transformation, and liberation. Counter-intuitively, this rupture highlights intersubjectivity and language. In thus talking about scandal and about ethical responses to suffering, this essay brings into dialogue ideas from two very different source traditions . I engage Mahayana Buddhist ideas in conversation with the modern Jewish philosopher of ethics, Emmanuel Levinas. (shrink)

This essay attempts to examine the difficult question of sex scandals both in public school settings and in the academy. It raises issues over the way authority in the classroom is unequally exercised by both male and female teachers in terms of power and seduction. However, the Law remains explicit when it comes to judging who is at fault within a-student relationship that collapses into the bedroom. The ethics that surround such sexual affairs is raised through the psychoanalytic (...) and philosophical writings of Jacques Lacan. The essay ends by offering a surprised perspective over the question whether an ethics of diabolical evil is possible, given that such affairs are differentiated as post-Oedipal relationships where age differentiations have become blurred. (shrink)

For 15 years, former assistant football coach Jerry Sandusky used his Penn State University perquisites to lure young and fatherless boys by offering them special access to one of the most revered football programs in the country. He repeatedly used the football locker room as a space to groom, molest, and rape his victims. In February 2001, an eye-witness alerted Penn State’s top leaders that Sandusky was caught sexually assaulting a young boy in the showers. Instead of taking swift action (...) against Sandusky, leaders began a cover-up that is considered one of the worst scandals in sports history. While public outcry has focused on the leaders’ silence, we focus on the talk that occurred within the organization by key personnel. Drawing from court documents and internal investigative reports, we examine two euphemism clusters that unfolded in the scandal. The first cluster comprises reporting euphemisms, in which personnel used coded language to report the assault up the chain of command. The second cluster comprises responding euphemisms, in which Penn State’s top leaders relied on an innocuous, but patently false, interpretation of earlier euphemisms as a decision-making framework to chart their course of action. We use this case to demonstrate how euphemistic language impairs ethical decision-making, particularly by framing meaning and visibility of acts, encouraging mindless processing of moral considerations, and providing a shield against psychological and material consequences. Further, we argue that euphemism may serve as a disguised retort to critical upward communication in organizations. (shrink)

This case study explores the ethical dimensions of the South Korean news media's coverage of the Dr. Woo Suk Hwang scandal and the extant journalism criticism. The study discusses the ethical issues associated with claims that Korean journalists acted too humanely, overemphasized scientific evidence, and were too culturally sensitive in their coverage of the Hwang scandal, and notes the broader implications for journalism ethical theory and criticism suggested by the study's findings. The case explores the differences in the ethical foundations (...) that underlay the press' efforts and the Korean-based criticism of the news media. Among other conclusions, the Hwang scandal illustrates the challenges of universalizing ethical standards in international journalism criticism. (shrink)

We analyze whether companies involved in a security class action suit (SCAS) exhibit differential capital structure decisions, and if the information revealed by a corporate scandal affects the security issuances and stock prices of industry peers. Our findings show that before a SCAS is filed, companies involved in a scandal show a greater amount of security offerings than their peers and, due to equity mispricing, are more likely to use equity as a financing mechanism. Following a SCAS filling, these companies (...) exhibit a decreasing amount of total external finance raised and lower levels of book and market leverage. Industry peers' issuance patterns exhibit significant contagion, with reduced debt and equity issuance following the SCAS filing. Corporate scandals also have meaningful negative effects on stock prices and bond ratings. Similar to capital structure, we document contagion at the industry level with peers' share prices yielding negative returns as well. (shrink)

I apply stigma-management strategies to corporate scandals and expand on past research by (a) describing a particular type ofstigma management strategy that involves accepting responsibility while denying it, (b) delineating types of stigma that occur in scandals (demographic versus character), and (c) considering the moral implications of shifting stigmas that arise from scandals. By emphasizing the distinction between character and demographic stigma, I make progress in evaluating the moral implications of shifting different types of stigma.

I apply stigma-management strategies to corporate scandals and expand on past research by (a) describing a particular type ofstigma management strategy that involves accepting responsibility while denying it, (b) delineating types of stigma that occur in scandals (demographic versus character), and (c) considering the moral implications of shifting stigmas that arise from scandals. By emphasizing the distinction between character and demographic stigma, I make progress in evaluating the moral implications of shifting different types of stigma.

Ethical scandals in business are all too common. Due to the increased public awareness of the transgressions of business executives and the potential costs associated with these transgressions, ethical leadership is among the top qualities sought by organizations as they hire and promote managers. This search for ethical leaders intersects with a labor force that is becoming more racially diverse than ever before. In this paper, we propose that the ethical leadership qualities of business leaders may be perceived differently (...) depending upon the race of the leader. Using two experimental studies in the USA, we examine the difference in ethical leadership perceptions between a Black hypocritical CEO and an ethical CEO. Next, we consider a Black ethically ambiguous CEO and an ethical CEO. The findings indicate that a Black leader faces larger negative impact in hypocritical and ambiguous conditions than a similar White leader. There were no significant race effects in the ethical conditions in which a leader demonstrated a personal commitment to ethics through words or actions. We discuss the implications of these findings. (shrink)

Ethical scandals, as well as unethical behaviour, are becoming major concerns in recent times. Thus, this study focused on the role of ethical climate and employees’ moral identity. Specifically, this study examined the mediation effect of ethical climate on the relationship between ethical leadership and employees’ ethical behaviour. Also, the study investigated the moderating role of employee moral identity on the relationship between ethical climate and employees’ ethical behaviour. Data were collected from 620 full-time employees working at thirty-three Iraqi (...) organisations from five Iraqi provinces. These organisations were from various industry sectors such as manufacturing, retailing, medical, insurance, information technology, legal, finance, and telecommunication sectors. The study found that ethical leadership impacted on the ethical behaviour of employees and the ethical climate also significantly mediated the relationship between ethical leadership and employees’ ethical behaviour. The moderating role of moral identity on the relationship between ethical climate and ethical behaviour was found to be insignificant in this context. (shrink)

Beyond Scandal will give you the resources to talk to your kinds about: Sex, Gossip, Lying, Politics, Scandal, Friendship, Values, Leadership, Dirty Jokes.

When the terms ?women? and ?violence? are used, it is usually in the context of women as victims and rarely as perpetrators of violence, and yet women do behave aggressively ? for instance, as female suicide bombers. An ethical analysis of this role, however, has tended to be somewhat overlooked, partly because of the gender stereotypes at play, with little (or spurious) focus on the agency and autonomy of the women. This has resulted in an incomplete understanding of the unique (...) ways in which societies treat female political aggressions, and the consequences of this for their agency. This paper seeks to redress these issues by evaluating two different societal portrayals of female suicide bombers; that of the ?scandalous subwoman? and the ?sublime superwoman?. It argues that violent women's agency is often distorted to extremes beyond that of their male counterparts, and that it is imperative to avoid misrepresenting them either as agentless victims (?subwomen?) or wholly agentic (?superwomen?) since, even in times of political instability, they can rarely be dichotomised in this binary way. (shrink)

Classical liberalism stipulates that individuals may only reliably escape a state of war by joining a body politic whose unity is consolidated and preserved by the formation of a sovereign government. Frederick Douglass, through his own experience of slavery and then as a radical abolitionist critiquing the racialized laws and society of the United States, shows that there is an inherent scandal, a schism in the very idea of a body politic. This scandal cannot be overcome, but Douglass enacts a (...) treatment for it through a polemical ethic that endeavors to reconstruct political community, expansively and inclusively understood, by ever again bringing the ideal, as a regulative idea, into confrontation with the real. By putting Douglass and the historical situation of his time into dialogue with the natural law tradition of Aquinas, Locke, and the American Founding, this essay argues that Douglass’s thought and example provide a fresh way to address the crisis of liberal democracy in our time. This requires understanding the instability of the body politic as a source of strength rather than weakness, if properly confronted in a polemical ethics. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Reviewed by:The Scandal of White Complicity in US Hyper-Incarceration: A Nonviolent Spirituality of White Resistance by Alex Mikulich, Laurie Cassidy, and Margaret PfeilNancy M. RourkeThe Scandal of White Complicity in US Hyper-Incarceration: A Nonviolent Spirituality of White Resistance Alex Mikulich, Laurie Cassidy, and Margaret Pfeil new york: palgrave macmillan, 2013. 203 pp. $90.00As a white American Catholic ethicist, I often envy my Protestant counterparts’ legacy of acknowledging and fighting (...) racism. Catholic moral theology lacks Protestantism’s bodies of literature, activism, and bold ecclesial statements addressing racism in the United States. (For more on this, see Bryan Massingale’s Racial Justice and the Catholic Church.) The Scandal of White Complicity in US Hyper-Incarceration demonstrates how Catholicism might approach American racism using several elements of Catholic theology.The book opens with series editor Mary Jo Iozzo’s introduction to the Content and Context in Theological Ethics series, of which this is the fifth book. A personal and reflective foreword by Sr. Helen Prejean follows. Then the book’s argument begins with a description of the United States’ practice of mass incarceration and brief discussions of what is meant by “whiteness” and “complicity.” This book employs a phenomenological understanding of race and of whiteness, taking whiteness as habitus. The literature about this approach to race and to identity is enormous, but familiarity with that literature is not necessary to follow this book’s presentation, argument, or use of the idea.Each of the book’s three authors has written a two-chapter section. Alex Mikulich’s explanation of white habitus speaks on levels of social thought and of the individual’s experience. Laurie Cassidy’s section looks at the culture of hyperincarceration and the development of the “dangerous black man” myth, and Margaret Pfeil’s section on spirituality works from the beatitudes, John of the Cross, and a wide array of other sources to describe a political spirituality of resistance for white Christians.This book would be most useful to masters-level graduate students in theological ethics or anyone preparing to begin teaching in areas of ethics related to racism or criminal justice (particularly in Catholic institutional settings). Rather than drawing exclusively on Catholic social teaching to talk about white participation in racism, these authors more satisfyingly put many Catholic traditions into action. For example, the book demonstrates careful use of the concepts of complicity, responsibility, participation, and intention; it considers specific [End Page 195] actions while maintaining focus on systems’ structures; and it uses a wide range of Catholic thinkers, including Metz, Copeland, Soelle, Gutiérrez, Carmelite Sr. Constance FitzGerald, Lonergan, Day, and John of the Cross.This book assumes and asserts that racism still exists, that whiteness exists and aims to make itself invisible, and that racism is kept alive through social structures that flow from white habitus. However, the book does not assume the reader’s agreement with any of these. Instead, the book first makes the case that these things are true and then takes next steps toward responsive practices of resistance. Rhetorically tinged homiletic shortcuts are not used to bolster this argument. For example, in similar works, the question of moral culpability for racist social structures is sometimes managed only with a discussion of how such structures distribute benefits and harms unequally. In this book, that argument is not used alone but in tandem with a careful look at the intention of one’s participation in such structures.Minor problems exist. The book would have benefited from one more round of editing to eliminate minor punctuation and writing problems, and the Catholic moral concept of “scandal” receives little systematic attention despite its presence in the title. Otherwise, the book demonstrates well what Catholic moral theology could do if applied to American white racism. Here’s hoping that this is just the beginning of more such scholarship.Nancy M. RourkeCanisius CollegeCopyright © 2015 Society of Christian Ethics... (shrink)

Throughout the evolution of public political discourse we have repeatedly seen the effects of scandals on the careers of many politicians. Although the cultural and societal norms that have traditionally dictated the results of such scandals have changed dramatically within the last two centuries, I believe that the aftermath of these scandals may be better understood by analyzing and comparing the politician’s previously established public image to the scandal at hand. I will argue that a negative impact (...) only occurs if and when there is a clear contradiction of character that presents the politician as a deceitful or hypocritical person in the media sphere and therefore the eyes of the public. (shrink)

I apply stigma-management strategies to corporate scandals and expand on past research by (a) describing a particular type ofstigma management strategy that involves accepting responsibility while denying it, (b) delineating types of stigma that occur in scandals (demographic versus character), and (c) considering the moral implications of shifting stigmas that arise from scandals. By emphasizing the distinction between character and demographic stigma, I make progress in evaluating the moral implications of shifting different types of stigma.

Like many corporations, the Catholic Church in the United States and Ireland has tried to move beyond scandal. In this case, the scandal was the failure of church leaders to protect minors from clergy sexual abuse, particularly in Boston and Dublin. Like corporate leaders, church leaders have faced the challenge of restoring trust after scandal. Influenced by corporate trends toward codes of conduct, the archdioceses of both Boston and Dublin provide codes of conduct, but the differences between them are worth (...) noting. In 2015, the Catholic Church in both the United States and Ireland highlighted the need for a culture of accountability that does not succumb to complacency, and in the United States the bishops have once again been encouraged to learn from business. This paper will demonstrate that the Catholic Church is in dialogue with and learns from codes of conduct and cultural practices in business. At the same time, it will highlight that the Catholic Church must also be attentive to its own mission since a simple adoption of other corporations’ practices can be detrimental to sharing the Gospel. The appropriation of codes of conduct and cultural practices from business reflects the church’s attentiveness to the signs of the times, and this appropriation needs to be evaluated in the light of the church’s mission to share the Gospel with the world. (shrink)

Recent scandals in the business world have intensified the demand for an explanation of the causes of corporate wrongdoing. This study empirically tests the effects of mutual fund management fees and control structures on the likelihood of illegal activity within mutual fund organizations. Specific attention is given to the presence of agency duality issues in the mutual fund industry and how this influences the motivations and decisions of fund managers. Findings provide support for the hypothesized relationship that higher levels (...) of management fees decrease the likelihood of illegal behavior. Additionally, control of the mutual fund by external management is found to have a negative impact on the likelihood of illegal activity while also acting as a moderator of the management fee-illegal behavior relationship. (shrink)

Of recent time, there has been a proliferation of concerns with ethical leadership within corporate business not least because of the numerous scandals at Enron, Worldcom, Parmalat, and two major Irish banks – Allied Irish Bank (AIB) and National Irish Bank (NIB). These have not only threatened the position of many senior corporate managers but also the financial survival of some of the companies over which they preside. Some authors have attributed these scandals to the pre-eminence of a (...) focus on increasing shareholder value in Western business schools and/or to their failure to inculcate ethical standards. In this paper, we challenge these accounts and the aetiological view of knowledge from which they derive but are grateful for the consensus that they convey regarding the importance of business ethics. The paper focuses on different approaches to ethical leadership concluding with a view that some hybrid of MacIntyre’s virtue ethics and Levinas’s ethics of responsibility may serve as an inspiration for both educators and practitioners. (shrink)

Cet article se veut une illustration de nos recherches sur les scandales et la production de connaissance concernant les vulnérabilités organisationnelles. Il présente un segment des résultats de l’analyse découlant de la recherche exploratoire faite au sein de la nouvelle administration municipale de la Ville de Laval. Cette recherche voulait valider l’utilité des diagnostics des risques éthiques pour les organisations qui tentent de se sortir de la tourmente d’un scandale. Notre chantier de recherche sur la gestion des risques éthiques dans (...) les organisations publiques a été développé pour pallier les limites du champ d’intervention traditionnel de l’éthique appliquée, c’est-à-dire une éthique purement individuelle qui se limite trop souvent à mettre en doute la responsabilité professionnelle des acteurs et faire la promotion de la stricte compétence éthique des acteurs. Nous embrassons ici plutôt une démarche de recherche orientée vers une éthique dite institutionnelle, c’est-à-dire une éthique qui invite à remettre en question les actions individuelles et collectives en les mettant en contexte dans les situations d’actions. L’éthique institutionnelle qui est sous-jacente à l’approche défendue dans ce texte nous amène à réfléchir tant sur la qualité des conduites professionnelles que sur les facteurs qui, dans l’environnement du travail, ont une incidence négative sur la qualité des conduites. Le but de cet article est de démontrer que la recherche sur l’éthique dans les services publics ne peut plus se faire en vase clos autour de l’analyse des valeurs éthiques et la résolution des dilemmes éthiques, elle doit plutôt s’ouvrir à des analyses plus systémiques en jetant un regard analytique tant sur le cadre normatif, les instances régulatoires, la culture organisationnelle, le design institutionnel et les processus de gestion ; tout cela pour mieux saisir toutes les dimensions institutionnelles qui influencent la qualité des conduites des acteurs organisationnels. (shrink)

The paper advances an interpretation of political scandal and its place in democratic politics, taking the scandals of the ‘Watergate era’ in American politics as its evidential basis. The interpretation focuses on an aspect of political scandal that has been neglected in existing treatments, namely the politically constructed rather than epistemologically simple nature of scandalous ‘exposure’. The career of the ‘smoking gun’ in the Watergate era provides illustration. The paper goes on to relate political scandal as both symptom and (...) stimulus to trends in late-modern democratization concerning ‘hyperpolitics’ and ‘metainformation’ . On this basis, the generalization of scandal politics as a typical mode of democratic politics is suggested. (shrink)

We began writing the first edition of this textbook in 2006, soon after a wave of major corporate scandals had shaken the financial world. Headlines made the companies involved in these ethical scandals household names: Enron, WorldCom, Arthur Andersen, KPMG, J.P. Morgan, Merrill Lynch, Morgan Stanley, Citigroup, Salomon Smith Barney. At that time, we suggested that, in light of such significant cases of financial fraud, mismanagement, criminality, and deceit, the relevance of business ethics could no longer be (...) questioned. (shrink)

In 2014, a large archive of hacked nude photos of female celebrities was released on 4chan and organized and discussed primarily on Reddit. This paper explores the ethical implications of this celebrity nude photo leak within a frame of gendered privacy violations. I analyze a selection of a mass capture of 5143 posts and 94,602 comments from /thefappening subreddit, as well as editorials written by female celebrities, feminists, and journalists. Redditors justify the photo leak by arguing the subjects are privileged (...) because they are celebrities; that the celebrities are at fault for failing to appropriately protect their information; and that the only person ethically responsible for the leak is the hacker. The popular press primarily took a feminist perspective, linking the photo leak to institutionalized sexism and misogyny. I argue that the Reddit participants frame the privacy violations within a context of geek masculinity, in which references to masturbation and pornography and casually misogynist language are used to signify a normative masculine self. Privacy violations are de-emphasized when the victims are women and gender or feminist concerns are rejected. Entitlement to viewing women’s bodies and male sexual desire are prioritized over ethical concerns over privacy violations. The paper contributes to understanding how privacy violations are normatively gendered and reinforced by gender inequality. (shrink)

Following the landmark corporate scandals of the early 21st century, there appeared to be a tremendous increase in the U.S. business media's emphasis on issues of ethics in corporate leadership. The purpose of this research was to examine whether that apparent increase was reflected in an actual change in that media's portrayals of successful leaders. We content analyzed the text of a total of 180 articles in Business Week, Fortune, and Forbes magazine, 90 from the five years preceding (...) the landmark scandals and 90 from the five years following the scandals. We found no evidence that the landmark scandals had any impact on the media's incorporation of ethics in their portrayals of leaders. We attribute this substantially to the persistence of a world-view in the U.S. business press that emphasizes leader traits and actions that have a direct impact on corporate profits. Additionally, we found some interesting consistencies and differences in media portrayals across the two time periods, likely related to the rise and fall of dot-com businesses. We discuss the implications of these findings for researchers and corporate leaders. (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)

The scandals of the 1980s, extending into the 1990s, came as a profound shock to Australians and New Zealanders. Both countries have prided themselves – somewhat smugly and naively – on being open, fair and honest societies. So it was very disillusioning to see both corruption and gross dereliction of duty exposed in virtually every sphere of public life. Perhaps the most positive outcome, however, amidst an almost daily diet of amazing revelations, has been the ability of the system (...) – and especially the judiciary and the media – to expose and deal with corruption even at the highest level.Following an extensive survey and literature review, it is clear that there is now widespread awareness of the need for reform in many areas of public administration, corporate governance and professional behaviour. However, a continuing cause for concern is the lack of leadership in identifying and addressing complex ethical dilemmas, particularly in the areas of conflict of interest and disclosure. (shrink)

This study examines the antecedents of corporate scandals. Corporate scandals are defined as rare events occurring at the apex of corporate fame when managerial fraud suddenly emerges in conjunction with a significant gap between perceived corporate success and actual economic conditions. Previous studies on managerial fraud have examined the antecedents of illegal acts in isolation from strategic decisions and in terms of CEOs’ individual responses to the external context. This study frames the antecedents of corporate scandals in (...) terms of the interplay of CEOs’ personal traits with corporate strategy and stakeholders’ cohesion. With this aim, this study builds on extant theory to examine the case of Banca Popolare di Lodi, an Italian bank involved in a corporate scandal in year 2005. The model contributes to advance understanding of the complex dynamics underlying the emergence of corporate scandals. (shrink)

Scandals in companies such as Enron have been a source of great concern in the last decade. The events that led to a global financial crisis in 2008 have heightened this concern. How does one account for executive behaviors that led to such a crisis? This article argues that a conjunction of motive, means, and opportunity creates ‘an ethical hazard’ making questionable executive decisions more probable. It then suggests that corporate unethical behavior can be minimized by creating a process (...) to identify and remove such ethical hazards, and by appointing an ‘ethical hazards marshal.’. (shrink)

This paper presents a comparative analysis of three American and three European corporate failures. The first part of the analysis is based on a theoretical framework including six areas of ethical climate; tone at the top; bubble economy and market pressure; fraudulent financial reporting; accountability, control, auditing, and governance; and management compensation. The second and third parts consider the analysis of these cases from fraud perspective and in terms of firm-specific characteristics and environmental context. The research analyses shed light on (...) the fact that, despite major differences between Europe and U.S. in terms of political institutions, laws and regulations as well as managerial practices, there are significant similarities between six groups. The analysis also demonstrates that, the ethical dilemma has been coupled with ineffective boards, inefficient corporate governance and control mechanisms, distorted incentive schemes, accounting irregularities, failure of auditors, dominant CEOs, dysfunctional management behavior and the lack of a sound ethical tone at the top. Significant similarities were also observed in the analysis from the fraud triangle perspective. However, there are several major differences between the six corporate failure cases particularly with regard to ownership structure, coverage in media, and legal, regulatory and governance frameworks. This research study may have several academic and practical contributions, particularly because of multidisciplinary, international features, and comparative analyses used in the paper. (shrink)

Given the recent ethics scandals in the United States, there has been a renewed focus on understanding the antecedents to ethical decision-making in the research literature. Since ethical norms and standards of behavior are not universally consistent, an individual’s choice of referent may exert a large influence on his/her ethical decision-making. This study used a social identity theory lens to empirically examine the relative influence of the macro- and micro-level variables of national culture and peers on an individual’s (...) intention to behave ethically. Our sample consisted of respondents from Germany, Italy, and Japan. The results indicated that both national culture and peers were found to act as significant referents in ethical decision-making dilemmas. Although peers exerted a much stronger influence on an individual’s ethical decision-making, the impact of peers varied depending on the national culture levels of individualism and power distance. (shrink)

Recent ethical breeches by corporate governorsat the highest levels have called into questionwhether ethical attitudes have changed sincethe Corporate Raider scandals of the mid-1980s. We exploit a unique opportunity to follow-up ona previous investigation of college students inthe mid-1980s to analyze this question. Usinga similar survey instrument, we find thatstudents surveyed in 2001 are significantlyless accepting of the ethically questionablesituations in seven of 15 scenarios and moreaccepting in only one. Seven scenarios showedno significant change. We conclude that,overall, ethical attitudes (...) of students in 2001appear to have become higher over time. To theextent that current students are futurebusiness leaders, we find these results to beencouraging for the long term. (shrink)

Business ethics have become an important topic globally for both policy-makers and businesses. This paper first discusses the conceptual framework for business ethics followed by ethical management and corporate social responsibility as well as relevant theories. Within this conceptual framework, Korea is used as a country context as to the development of EM and CSR. An important example of an ethical scandal is the major steel manufacturer, POSCO as it was held up as an exemplar and role model (...) of ethical management. However, in 2015, it faced allegations that the engineering and construction overseas unit chief of its Vietnamese subsidiary created a slush fund by overstating payments to Vietnamese contractors. This conceptual paper discusses the factors that created this situation referring to the theory of connection. It locates the case in the EM and CSR literature and analyses what went wrong and what the parent company could have done to prevent this from happening. (shrink)