Despite the detrimental consequences of corporate social irresponsibility (CSiR), the role of monitoring and incentive-based corporate governance (CG) mechanisms in mitigating stakeholder mismanagement has been largely neglected in the literature. At the same time, there has been growing interest in holding executives accountable for environmental, social, and governance (ESG) performance by linking their compensation to related targets. However, prior research provides scant and inconclusive evidence on the effectiveness of ESG pay in curbing CSiR. This study addresses these shortcomings (...) and contributes to the emerging CSiR/CG literature by harnessing an institution-based view on executive compensation. Specifically, it recognizes national culture as the “missing determinant” in comparative CG studies and investigates the culturally-driven boundary conditions for the relationship between ESG pay and CSiR. The hypotheses were tested on a data set of 4066 firms from 56 countries during 2010–2020. The analysis supports a negative, though modest, effect of ESG pay on CSiR. Furthermore, the study shows that this relationship varies in statistical and economic significance across cultural contexts. Particularly, incentives prove effective for firms headquartered in nations characterized by low power distance, individualism, low uncertainty avoidance, and masculinity. Conversely, in other settings, compensation linked to ESG may either lack motivational impact or even yield counterproductive outcomes. These findings have implications for both the CSiR and CG literature, as well as for practice. (shrink)

Australia’s monopoly grain exporter, AWB, was the largest provider of kickbacks to Saddam Hussein’s regime under the United Nations Oil-for-Food program.The full extent of AWB’s complicity and the failure of its corporate culture became apparent as a result of two inquiries, commissioned by the United Nations and the Australian Government, both of which operated with almost complete transparency. The paper examines the nature of transparency – as virtue, duty, technique and outcome – and uses the Oil-for-Food inquiries as (...) a case study to show how transparency has exposed unethical behavior and brought about organizational change. Some potentially damaging effects of transparency and the implications for business and society are also discussed. (shrink)

Considering the lack of substantive scientific or theoretical studies about ethics in small and medium sized enterprises (SMEs) in Latin America, this paper examines the context of an existent paradox, based upon the perspective of experts and academicians of Latin America and the Caribbean. These countries live different realities, due to their respective European cultural influences, as well as to racial and economic issues. Such facts impact the size and characteristics of their industries. On the other hand, the SMEs face (...) more similarities in the region, so they will be treated as a group in the discussion of ethics and corporate social responsibility (CSR) in Latin American SMEs. As this topic has not been sufficiently investigated in this geographic area, the objective of this exploratory study is to offer a contribution for future research. It raises the main dilemmas and intends to explain how legislation and common practices enable and perhaps lead SMEs to choose unethical strategies to survive and compete in the market. These enterprises are growing in number and in job creation, but do not participate in the Gross National Product in the same proportion. Informality, tax evasion and corruption are gradually caused or erode morality in business, but can contribute to corporate social responsibility in the region. The paper tries to show positive and negative aspects of apparently unethical practices and discusses challenging ways to solve complex problems that are common in most Latin America. (shrink)

In this article, we focus on the cross-cultural aspects of the implementation of an American company's code of ethics into its Swedish subsidiary. We identify the cross-cultural stories that the receivers in the subsidiary use when trying to explain the parent's code and conceptualize these stories as part of an emerging narrative of national belonging and differences. The receivers resisted the code by amplifying the importance of national identity. Rather than stimulating a discussion on ethics that might have (...) strengthened the ties between the parent and the subsidiary, the outcome of the code implementation had the opposite effect. The article concludes by stressing the process of implementing codes across cultures rather than code content. (shrink)

In this study, we use a mixed methods research design to investigate how national cultural forces may impede or enhance the positive impact of females’ economic and political empowerment on increasing gender diversity of corporate boards. Using both a longitudinal correlation-based methodology and a configurational approach with fuzzy-set qualitative comparative analysis, we integrate theoretical mechanisms from gender schema and institutional theories to develop a mid-range theory about how female empowerment and national culture shape gender diversity on (...) corporate boards around the world. With our configurational approach, we conceptually and empirically model the complexity that is associated with the simultaneous interdependencies, both complementary and substitutive ones, between female empowerment processes and various cultural dimensions. Our findings contribute unique insights to research focused on board gender diversity as well as provide information for firm decision makers and policymakers about possible solutions for addressing the continuing issue of the underrepresentation of women on corporate boards. (shrink)

This study uses a specific method to analyze the contents of the codes of ethics of the largest corporations in Australia, Canada and Sweden and compares the findings of similar content analyses in 2002 and 2006. It tracks changes in code contents across the three nations over the 2002–2006 period. There were statistically significant changes in the codes of the three countries from 2002 to 2006: the Australian and Canadian codes becoming more prescriptive, intensifying the differences between these and the (...) Swedish codes. The contents of these codes and the nature of the changes they have undergone over time are culturally driven: Australia's and Canada's reflecting their similar cultural profiles and Sweden's reflecting its differences from these countries on organizationally relevant cultural dimensions. The study reveals that corporate codes of ethics are living documents as reflected by the significant longitudinal changes in the frequencies of mention of several of the 60 items underpinning the content analysis of the codes of ethics. Consequently, and in light of their growing prevalence and importance as instruments of corporate governance, they should not be treated as static but as dynamic documents that are subject to various environmental factors. The clear implication of the findings of this study is that for corporate codes of ethics ‘one size does not fit all’ and that these instruments must be carefully monitored and revised to reflect changing conditions. (shrink)

An empirical study using two ethics-related and three sales force outcome variables was conducted in Taiwan and compared to an existing U.S. sample. Across the two national cultures, individual perceptions of corporate ethics appears to be a more direct determinant of organizational commitment than individual moral values. Differences between the two national cultures were found in ethics perception as it relates to moral values, job satisfaction, and turnover intention. Explanations for the differences are discussed.

Based on the 'Partnership Model of Corporate Ethics' (Wood, 2002), this study examines the ethical structures and processes that are put in place by organizations to enhance the ethical business behavior of staff. The study examines the use of these structures and processes amongst the top companies in the three countries of Australia, Canada, and Sweden over two time periods (2001–2002 and 2005–2006). Subsequendy, a combined comparative and longitudinal approach is applied in the study, which we contend is a (...) unique approach in the area of business ethics. The findings of the study indicate that corporations operating in Sweden have utilized ethical structures and processes differently than their Canadian and/or Australian counterparts, and that in each culture the way that companies fashion their approach to business ethics appears congruent with their national cultural values. There does, however, appear to be a convergence of views within the organizations of each culture, as the Swedish companies appear to have been more influenced in 2005–2006 by an Anglo-Saxon business paradigm than they have been in the past. (shrink)

Business leadership increasingly requires a master’s degree in business and graduate management admission test scores continue to be an important component of applications for admission to such programs. Given the ubiquitous use of GMAT scores as gatekeepers for business leadership, GMAT scores are likely to influence organizational ethical behavior through gender, cultural, and other biases in the GMAT. There is little prior literature in this area and we contribute by empirically documenting that GMAT scores are negatively related to the cultural (...) dimensions of masculinity and power distance and are positively related to math literacy, uncertainty avoidance, and individualism. We estimate that cultural factors may account for as much as an 80-point difference in cross-national mean GMAT scores which are also related negatively to local language literacy, national educational spending, wealth per capita, wealth inequality, and gender development. Most interestingly, we also find a significant negative association of GMAT scores with ethical orientation. These findings have important implications for business schools and corporate ethics and leadership. (shrink)

This article explores the dynamics of the discourse and practice of corporate social responsibility (CSR) in France to illustrate the interplay between endogenous and exogenous factors in the development of CSR in a country. It shows how the cultural, socioeconomic, and legal traditions influence the way ideas are raised, the kinds of questions considered relevant, and the sorts of solutions conceived as desirable and possible. Furthermore, the article traces how expectations and practices evolve as a result of various social (...) and economic factors within a country, and increasingly, as a result of global influences such as the international academic discourse, the international practices of multinational companies, nongovernmental organizations and trade unions, and initiatives of supranational organizations. The article closes with reflections about what can be learned from the French experience with CSR and how to stimulate such cross-border learning. (shrink)

In countries such as China, where Confucianism is the backbone of national culture, high-social-status entrepreneurs are inclined to engage in corporate social responsibility activities due to the perceived high stress from stakeholders and high ability of doing CSR. Based on a large-scale survey of private enterprises in China, our paper finds that Chinese entrepreneurs at private firms who have high social status are prone to engage in social responsibility efforts. In addition, high-social-status Chinese entrepreneurs are even more (...) likely to engage in social responsibility efforts as they become more politically connected and as the region becomes more market-oriented. These findings extend the upper echelons perspective of CSR into Chinese context by shedding light on antecedents of CSR from a new perspective and clarifying the boundary conditions of the social status–CSR link from the institutional perspective. (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)

This research aims to explore the relationship between corporate governance and CSR: What are the major factors that play a direct role in the establishment of this relationship? How does context and institutional background impact upon the relationship between CSR and Governance? Using in-depth semi-structured interviews from two types of governance systems in three countries over three years, this study has demonstrated that in practice, within different settings, CSR is being used both as a strategy as well as a (...) reaction to different drivers. We call this adaptive governance where governance can be defined as a flexible system of action incorporating strategic and monitoring activities that determines the way a company enacts its responsibilities to its shareholders and stakeholders and which is determined at any given time by the interrelationship of institutional drivers and behavioural norms. Governance systems and their interrelationships with CSR are demonstrated as fluid according to the national and institutional context, economic situation and industry impact. In the eyes of practitioners corporate governance includes both structural and behavioural factors as well as responsibilities and actions towards shareholders and stakeholders. Contextual factors that this research highlights to be important to the incorporation of CSR into governance include the economic environment, national governance system, regulation and soft law, shareholders, national culture, behavioural norms and industry impacts. Hypotheses on the impact of institutional contexts, industry impacts and economic situations on different types of CSR actions are proposed for further research. (shrink)

In the historical progress of nations, economic wealth plays an important role as well as prosperity in social and cultural make-up. When the entire Turkish history is considered, we come across with the institution of Akhism that is both related to the regulation of sociocultural life as well as to the operation of business life within the framework of certain principles and rules. Even though Akhism has aspects in parallel with today’s management philosophies, history has not been immutable and economical (...) activities have changed since the thirteenth-century establishment of Akhism. This theoretical study intends to introduce Akhism that stands as a turning point in Ottoman history in social, cultural and economical aspects. Then the purposes of the institution, its principles and historical progress will be outlined. Furthermore, Akhi associations as well as conflicts with total quality management, social responsibility and corporate culture will be diagnosed. (shrink)

It is no longer a revelation that companies have some responsibility to uphold human rights. However, delineating the boundaries of the relationship between business and human rights is more vexed. What is it that we are asking corporations to assume responsibility for and how far does that responsibility extend? This article focuses on the extent to which economic, social and cultural rights fall within a corporation's sphere of responsibility. It then analyses how corporations may be held accountable for violations of (...) such rights. Specifically, the article considers the use of soft law as a protective mechanism; it also details how victims of harmful corporate behaviour are using litigation (pursuant to ATCA and common law domestic causes of action) to seek redress and recognition of the harms they have directly or indirectly experienced. The article concludes with an analysis of Professor Ruggie's (the United Nations Special Representative on the issue of transnational corporations and human rights) 2008 and 2009 Reports in which it is suggested that a respect-based framework must be interpreted as imposing proactive requirements on companies to prevent the infringement of human rights. Future efforts must also be directed towards the recognition of a specialised complementary corporate responsibility to protect human rights. (shrink)

The objective of this paper is to empirically examine the impact of national culture on firm’s corporate social responsibility (CSR) across geographical regions. Empirical tests are based on CSR performance of 3055 corporations from 28 countries located in Eastern Asia and Europe. The findings suggest that the Hofstede’s cultural dimensions have significant impacts on CSR performance, both positively and negatively depending on a given dimension of CSR. In addition, corporations located in European countries tend to effectively outperform (...) those in Eastern Asian countries in every facet of socially responsible practice. (shrink)

Radio Nation is a methodologically sophisticated book on the mutual relationships among radio broadcasting, popular culture, and nationalism in Mexico at the local, regional, national, and global levels, covering the period from 1920 to the end of World War II. An epilogue continues the story through the radio‐based transition to television in the postwar era. The main social groups examined include the Mexican government, the U.S. Office of the Coordinator of Inter‐American Affairs , the Raul Azcárraga radio conglomerate, (...) and listeners.Joy Hayes carries out her ambitious project by developing a multilayered methodology. She brings together the concepts of antimodernism and hegemony from her mentor, T. J. Jackson Lears; recent literature on Mexican nationalism and nation‐building as a negotiated process; cultural studies work on the aural characteristics of the radio medium ; and the formation of culture and nation as a communications process. Hayes argues that “both radio and nation are social practices that interract to actively resist the concept of modernity” . Thoroughly modern as far as their both being forward looking, the radio and the nation are nevertheless antimodern institutions in overall effect, because they recreate premodern traditions of music, storytelling, and paternalism that can be developed into other forms of mass communication. In this regard, government station XEQ promoted a “musical nationalism,” but the “market nationalism” of Azcárraga's powerful, 200‐kilowatt, commercial station XEW eventually triumphed. Even though Azcárraga depended upon radio manufacturers and networks in the United States, his market nationalism was structured by the Mexican state.An intriguing diagram of power relations in Mexico during World War II shows triangular negotiations between the Azcárraga Group, U.S. media corporations and the CIAA, and the Mexican state—producing and influencing culture markets, U.S. politics, and national culture. Unfortunately from my point of view, the diagram shows radio content and radio audiences as groups outside these negotiations, even though the author pays attention to listening contexts, audience reactions, and the creation of new forms of “traditional” Mexican music for the aural needs of the radio.The book discusses other issues of interest to historians of science and technology, including government regulation , the agency of users , and the appropriation of a technology for use in another society. Very little is said about physical aspects of radio, except for the “presence” of the radio voice, problems with shortwave transmission, which hampered U.S. efforts to beam its message of Pan Americanism and consumer culture to Mexico during World War II, the high power of XEW, and Azcárraga's building a radio network by means of bicycle messengers because of the lack of telephone lines.Although Radio Nation is convincing, its brevity left me wanting to hear more about programming in the commercial and government stations, changes in regional culture and in Mexico City that might have influenced radio listening habits and vice versa, and more examples of antimodernist tendencies . Theory and context tend to crowd out discussions of radio programs, producers, and listeners. That said, Radio Nation is a stimulating book that significantly contributes to our understanding of the complex relationships between communications technology and cultures other than those in the United States and Europe. (shrink)

Using two national culture dimensions, we show that the influence of firms’ corporate social performance on corporate financial performance hinges on culture. Specifically, CFP is higher in those firms where CSR initiatives are congruent with the cultural environment. CSP has a negative impact on CFP for those firms domiciled in countries which are individualistic and favor flexibility. These findings are amplified for those firms with low levels of foreign influence in terms of institutional ownership and (...) sales. Using a dataset covering 5334 firms from 41 different countries, our results indicate that culture and CSR initiatives have a powerful interaction effect in determining CFP, suggesting that CSP’s impact is dependent upon the culture of the country where the firm resides. (shrink)

Corporate social responsibility (CSR) is a concept that has acquired a new resonance in the global economy. With the advent of globalization, managers in different contexts have been exposed to the notion of CSR and are being pressured to adopt CSR initiatives. Yet in view of vastly differing national cultures and institutional realities, mixed orientations to CSR continue to be salient in different contexts, oscillating between the classical perspective which considers CSR as a burden on competitiveness and the (...) modern perspective that views CSR as instrumental for business success. Capitalizing on the two‐dimensional CSR model developed by Quazi and O’Brien, Journal of Business Ethics, 25, 33–51 (2000), this article attempts to gauge managerial perspectives toward CSR in Lebanon. An empirical study of 119 Lebanese managers reveals that the majority of respondents (83 percent) are favorably inclined toward CSR with about 20 percent adhering to the modern paradigm, more than 50 percent adhering to a philanthropic view and 18 percent fitting into the classical camp. The findings are discussed and cross‐cultural implications drawn accordingly. (shrink)

The culture of ‘culture’ in National Health Service policy implementationThe widespread reference to ‘culture’ in UK NHS policy and organisational literature suggests that culture has, in itself, become a cultural phenomenon. This article draws on anthropological thought to explore this trend, and finds it stems from the way that the term ‘culture’ has become analytically empty. Lack of rigour in the way that culture is conceptualised allows it to be used both to suggest (...) an evolved consensus among the workforce, and to validate the imposition of values and beliefs by management. Such manipulation of ‘culture’ is evident in recent NHS policy demanding cultural change to ensure a flexible, empowered and self‐regulating workforce — the type of workforce not only valued by health services, but pivotal to a post‐Fordist economy. The findings from an ethnographic study are drawn upon to consider the relationship between nurses’ cultural practices, corporate culture shaped by NHS policy, and the requirements of the economic domain. It is suggested that a commitment to post‐Fordist priorities of flexibility, empowerment and self‐regulation is not necessarily matched by any shift in the traditional location of power. The article concludes that greater analytical rigour is necessary to challenge the way in which ‘culture’ is manipulated by policy makers. (shrink)

In this paper, I argue that there is an inconsistency between the content of some of the labour-related human rights articulated in documents such as the Universal Declaration of Human Rights and the International Covenant on Economic, Social and Cultural Rights and the obligations ascribed to various actors regarding those rights in the United Nations (UN) Guiding Principles on Business and Human Rights (UNGPs), in particular those ascribed to corporations. Recognizing the inconsistency, I claim, can help us see some of (...) the moral limitations of both familiar public responses to exploitative labour practices and influential philosophical accounts of the wrong of exploitation. In light of these limitations, I argue that there are reasons to accept a more expansive account of the human rights-related obligations of corporations than that found in the UNGPs, and in particular that we should accept that corporations have obligations to actively contribute to lifting people out of poverty. (shrink)

As more and more multi-national companies expand their operations globally, their responsibilities extend beyond not only the economic motive of profitability but also other social and environmental factors. The objective of this article is to examine the impact of national culture and geographic environment on firms’ corporate social performance (CSP). Empirical tests are based on a global CSP database of companies from 49 countries. Results show that the Hofstede’s cultural dimensions are significantly associated with CSP. In (...) addition, European companies are found to out-perform other regions and countries in CSP. (shrink)

With the expansion of multinational corporations, the alarming upsurge in widely publicized and notable corporate scandals involving MNCs in emerging markets has begun to draw both academic and managerial attention to look beyond home market practices to the pressing concern of CSR in emerging markets. Previous studies on CSR have focused primarily on Western markets, reserving limited discussions in addressing the issue of MNC attitudes and CSR practices in their emerging host markets abroad. Despite this incongruity in academic response (...) to CSR in emerging markets, managers of multinational companies continue to face mounting and most often conflicting pressures to weigh among multiple strategic CSR responses in emerging markets. Such a task is often further complicated by the complexity of varying business norms and standards, regulatory environments, and stakeholder demands for CSR across national boundaries. With such a challenge in mind, I attempt to examine the explanatory factors in leading MNCs, otherwise recognized for accountability and integrity in their home markets, to employ inconsistent or negligent practices under CSR pressure in Chinese emerging economy. Preliminary findings reveal that discrepancies exist in how MNCs perform in CSR in home countries versus in host countries. While MNCs do have much to improve, the institutional environment in the emerging market, including the legal framework and the ethical culture, also needs to be improved by the host country governments, the industry associations, and local firms. Meanwhile, media interest and journalists, NGOs, third party monitors, industry stakeholders as well as consumer advocacy groups can raise the visibility of MNC’s contradictory practices between their origin nations and countries with emerging economies and offer the pressures and incentives for MNCs to amend their ethical shortcomings. This article also suggests implications for both theory and practice. (shrink)

With the expansion of multinational corporations (MNCs), the alarming upsurge in widely publicized and notable corporate scandals involving MNCs in emerging markets has begun to draw both academic and managerial attention to look beyond home market practices to the pressing concern of CSR in emerging markets. Previous studies on CSR have focused primarily on Western markets, reserving limited discussions in addressing the issue of MNC attitudes and CSR practices in their emerging host markets abroad. Despite this incongruity in academic (...) response to CSR in emerging markets, managers of multinational companies continue to face mounting and most often conflicting pressures to weigh among multiple strategic CSR responses in emerging markets. Such a task is often further complicated by the complexity of varying business norms and standards, regulatory environments, and stakeholder demands for CSR across national boundaries. With such a challenge in mind, I attempt to examine the explanatory factors in leading MNCs, otherwise recognized for accountability and integrity in their home markets, to employ inconsistent or negligent practices under CSR pressure in Chinese emerging economy. Preliminary findings reveal that discrepancies exist in how MNCs perform in CSR in home countries versus in host countries. While MNCs do have much to improve, the institutional environment in the emerging market, including the legal framework and the ethical culture, also needs to be improved by the host country governments, the industry associations, and local firms. Meanwhile, media interest and journalists, NGOs, third party monitors, industry stakeholders as well as consumer advocacy groups can raise the visibility of MNC's contradictory practices between their origin nations and countries with emerging economies and offer the pressures and incentives for MNCs to amend their ethical short-comings. This article also suggests implications for both theory and practice. (shrink)

Corporate sustainability can be defined as organizations’ commitment to profitability, environment, and social well-being. This study uses a transactional culture analysis of CS reporting practices to explain why some Indian organizations conform to voluntary CS reporting guidelines and others do not. The literature contains two different perspectives on culture, defined broadly as a set of values that guide people’s behavior at a given time. Most past studies typically use national culture to explain differences in CS (...) practices across nations. This concept embeds corporate cultures within the larger national culture, neglecting intranation diversity. Conversely, according to the transactional culture approach used in this study, cultures are plural and independent of geoethnic boundaries, and emerge through social transactions. TCA encourages multilevel explorations of complex social phenomena. Since CS reporting preferences are the outcome of ongoing transactions among organizational stakeholders across different levels, TCA is more appropriate for this study. Since this application requires an understanding of social accountability, the authors use Mary Douglas’s Cultural Framework, a transactional framework of social accountability. A qualitative exploration of six Indian organizations using DCF reveals different dominant forms of social accountability in these organizations: either alone or as paired hybrids. Consequently, each organization prioritizes different stakeholders and reacts differently to voluntary CS reporting guidelines. Identifying the dominant form or forms of social accountability in their organizations and understanding their underlying reasons for resisting voluntary CS guidelines enables managers to secure better collaboration for their CS initiatives. (shrink)

Non-domestic companies are increasingly present on the London Stock Exchange. Such companies have specific governance requirements. They may seek to access capital in a more liquid market and to diversify ownership. The reputational ‘bonding’ to a prestigious exchange should be a statement to the market of a propensity to disclosure and a willingness to protect minority shareholders. Yet, many non-domestic companies retain tightly controlled shareholding structures and are based in emerging regions where national culture norms differ to the (...) UK. We hypothesise that non-domestic companies are likely to be less compliant with the principles of the UK Corporate Governance Code and suggest a correlation between lower levels of compliance and non-domestic companies from countries that demonstrate high power distance in the Hofstede cultural value framework. We find some encouraging signs of compliance with the reigning governance code principles in Board structures. However, we find only partial compliance in leadership and Board effectiveness measures in those companies from cultures high on the power-distance scale. Further, we include analysis into ownership characteristics and find companies from emerging markets are dominated by a single or controlling group of shareholders, which is likely to impact on attitudes to compliance and is particularly evidenced in terms of Board structures with no executive directors or led by an executive Chairman. Much of the prior research effort into the levels of compliance with the UK’s ‘comply-or-explain’ approach to governance has produced mixed results and focused on all companies. In our exploratory approach to analysing only the non-domestic subsample, we report some evidence linking cultural distance to lower levels of compliance with the UK standards. We develop a framework to guide future research into the context and cultural underpinnings of this sub-sample of companies, hypothesising that frequent market capitalisation-induced index changes may divert attention away from any potential compliance issues. On the one hand, our evidence is encouraging for governance regimes based on voluntary compliance disclosures such as the UK and similar European and international markets, as we report partial compliance with the principles of the current governance code. Our research may, however, be helpful in guiding future versions of the UK governance framework and other international governance regimes adopting the ‘comply-or-explain’ approach and in setting policy to improve disclosure. It contributes to the understanding of the specific context of non-domestic companies and any cultural tendencies to non-compliance. By demonstrating evidence of lower levels of compliance with key principles of the Code by non-domestic companies, we present a framework enabling lawmakers to further improve corporate governance codes. (shrink)

_Conscience and Corporate Culture_ advances the constructive dialogue on a moral conscience for corporations. Written for educators in the field of business ethics and practicing corporate executives, the book serves as a platform on a subject profoundly difficult and timely. Written from the unique vantage point of an author who is a philosopher, professor of business administration, and a corporate consultant A vital resource for both educators in the field of business ethics and practicing corporate executives (...) Forwards the constructive dialogue on a moral conscience for corporations Offers a philosophical and practical approach to considering business ethics. (shrink)

Multinational corporations face a litany of challenges regarding ethical decision-making as they traverse new variables in each country they operate in. Presented here is a new approach to ethical decision-making research for multinational corporations with the inclusion of moral virtues, national culture, and a feedback mechanism. The new proposed model builds off of the existing work by Trevino’s Person-Situated Interactionist Model. Hofstede’s work on individual national culture characteristics is used to move the conversation forward by explaining (...) the relationships between individual moderators in Trevino’s model and the effect of national culture on them. The new proposed model recommends the inclusion of moral virtues, with honesty and integrity as examples, as individual moderators in the decision-making process based on previous work. It contributes to the literature by introducing moral virtues into traditional ethical decision-making process models and introduces a new variable with a feedback mechanism for future learning. The paper concludes with recommendations for the future direction of research for ethical decision-making models for multinational organizations. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Diacritics 29.4 (1999) 58-83 [Access article in PDF] Imagi-Nation: The Imagined Community and the Aesthetics of Mourning Marc Redfield Of the many relics of the Romantic era that continue to shape our (post)modernity, the nation-state surely ranks among the most significant. Two decades ago Benedict Anderson commented that "'the end of the era of nationalism,' so long prophesied, is not remotely in sight" [IC 3], and the intervening years (...) have made it increasingly clear that the developments and processes we summarize as "globalization" operate in mingled synchrony and tension with the political form of the nation-state. 1 That the nation-state should remain the premier vehicle of political and economic legitimation in an era dominated by American imperialism and international capital--forces that, of course, regularly and flagrantly violate the sovereignty of disadvantaged nations--is unsurprising if one accepts the continuing pertinency and power of a Western master-narrative of modernity, according to which the nation represents the emergence of a people into history and prefigures the global achievement of universal human concord. As the proper subject of history, the nation-state can prefigure history's end because, as David Lloyd writes, "the particularism of [nationalism's] contents, potentially in contradiction with the universalism of modernity, is subsumed in the formal congruence between its own narratives of identity, directed at one people, and the narrative of identity that universal history represents for humanity in general" ["Nationalisms" 178]. Lloyd goes on to note that the nation's intermediate status in this narrative--halfway between primitive tribalism and modernity's ever-deferred perpetual peace--accounts for nationalism's irreducibly double association with modernization and atavism. In consequence, the modernist paradigm continues to rule many skeptical or hostile accounts of nationalism, for so long as the nation-state is taken to supersede other political or social formations, the cosmopolitan critique fails to challenge "the fundamental philosophy of universal history that underwrites nationalism's inscription in modernity" ["Nationalisms" 177]. Indeed, both in the corporate media and in mainstream Western political discourse generally, nations and nationalisms are commonly treated as atavistic or progressive depending on the degree to which their behavior harmonizes with globalizing imperatives. That these imperatives emanate quite blatantly from Wall Street in no way seriously troubles the effectiveness of modernity as a narrative paradigm. 2Seeking to discredit universalizing narrative, much cultural criticism in recent years has exchanged cosmopolitanism and the abstract question of "nationalism" for an emphasis [End Page 58] on the contextual construction of national movements or identities. 3 This valuable body of work has sought to recover the particularity of cultural and socioeconomic circumstance, stressed the fundamental role of racism in colonialist contexts, and noted ways in which nationalist movements draw on or unleash forms of resistance that challenge representationalist politics. The pages that follow, however, remain focused on the nationalist fantasy proper to the discourse of modernity. Cultural critique can only profit from knowing as much as possible about the favored turns of the universal-historicist model, particularly since, as Lloyd and others have emphasized, this model is an aesthetic one that grants a world-historical role to "culture." The state, in a tradition that in its main lines runs from Schiller through Hegel and Matthew Arnold and is still very much alive today, represents the community to itself, thereby giving the community form and in a certain sense giving it an ethical imperative and a future: the state represents "our best self" [Arnold 99, passim], "the archetype of a human being" [Schiller 17], because it signifies the formal unification both of the citizen with the community and of the community with universal humanity. Because this unification is ideal rather than actual, it can be projected as the ethical terminus of history (that is, as the ideal of an accomplished modernity). The state's core mission thus becomes pedagogical: its job is to acculturate its subjects into citizens. The production of a docile citizenry thereby obtains an ethical aura and an aesthetic character, insofar as the artwork and the domain of aesthetic or "cultural" experience generally become... (shrink)

While the literature on corporate social responsibility suggests that its form and content differ at least somewhat from country to country, it has not begun to address whether CSR practices converge or diverge over time as countries benefit from higher levels of economic development, or whether these practices relate to specific cultural values and institutional structures. This paper proposes an initial conceptual model and propositions to begin to assess whether and how the different levels of economic development, cultural values, (...) and institutional structures influence CSR behaviors. Mediating variables related to industry sector and executive moral development are also included in the model. The paper begins to lay the groundwork for empirical country and regional studies that cancontribute to a greater understanding of the factors that influence CSR behaviors. (shrink)

We address the issue of UK firms relatively poor record of corporate community contributions (CCCs) by subjecting them to formal comparison with those of US firms. To this end, we employ data on the top 100 UK, and top 100 US, contributors in 2001. Cross-country differences are described and discussed with reference to a stakeholder perspective on corporate social responsibility, and CCCs in particular. In this connection, we evaluate the role played by the sectoral composition of activities, as (...) well as national, cultural and institutional factors. Our findings highlight a number of significant cross-country differences in the pattern of CCCs and suggest that UK and US firms operate within significantly different stakeholder environments. (shrink)

This study described and analysed the circumstances surrounding a fatal car accident involving personnel of a multinational corporation in a developing country. For some companies, road accidents are the leading cause of work-related fatalities in developing countries. This reality highlights the ethical dilemmas encountered in a global workplace. Questions as to how a company addresses safety concerns outside the standard work environment, the ethics of operating in a risky environment and the requirements for international consistency in compensation standards for loss (...) of life were addressed. The authors argued that multinational companies should localize health and safety practices to address the important asymmetries between different regions of the world regarding social, cultural and infrastructural issues. Furthermore, the authors analysed the leadership role that should be played by multinational companies to help and support national governments to reduce traffic fatalities in developing countries. From this perspective, the article represents a contribution for the body of knowledge dealing with the business–society relations. The authors used an action research approach to address these issues, both in response to the particular incident and to contribute to the body of research in this field. (shrink)

Aiming to develop normative recommendations for preventing corporate irresponsibility (CiR), business and society scholars have adopted strategic approaches—exploring the causal links between corporate social responsibility (CSR) and profitability—and moral approaches—exploring the moral principles of CSR that guide managers. However, some business ethics scholars have recently argued that these studies are too simplistic as they disregard the systemic logics of broader institutional environments that generate ‘bad apples’ firms and managers. Drawing on literature that sheds light on the systemic origin (...) of CiR (i.e. the comparative institutionalist perspective and the critical management perspective), we conduct an in-depth case study on how Russian systems of institutional absences shape insensitive corporate environmental violence of a Russian extractive multinational corporation. In doing so, we develop a novel cultural approach to the analysis of CiR that advances knowledge about the systemic origin of CiR in two ways. First, this approach allows for identifying how the sources of CiR are located within firms’ home national systems of institutional absences, which shape systemic logics of CiR that make corporate violence less traceable by firms and broader society. Second, this approach allows for identifying how governments can sustain and perpetuate insensitive corporate violence through the deliberate and systemic absenting of national institutions that could pressure firms to be more socially and environmentally responsible, thus making negative consequences of corporate violence invisible to firms and broader society. We propose future research directions and suggest policy changes in Russia and other countries with similar systems of institutional absences. (shrink)

This article seeks to contribute to the thinking of forms of corporateness, sociality and authority in the context of, but also beyond, neoliberalism, the neoliberal state and neoliberal accounts of the corporation. It considers neoliberalism in relation to the theological genealogies of modernity, politics and economy, and the way in which neoliberalism itself functions as a secular religion—one which intensifies liberal individualism and involves a blind faith in the market redefining all social interactions in terms of contract. I turn to (...) the theological genealogies of sovereignty and economy, and of the corporation, as a way of grounding a radical consideration of collectivity and sociality. For, while the rise of neoliberalism is associated with the growth of multi-national or trans-national corporations, the privatisation of state assets and the corporatisation of public institutions, each of these involve not a diminishing of the state or the project of state sovereignty but rather its reformulation, reaffirmation and intensification. The corporation, despite being redefined as the interaction of fundamentally self-willing and contracting individuals operating in the market, is still fundamentally intertwined with state sovereignty. Attempts to address or respond to corporate power need to go beyond calls for greater regulation of corporations, increased corporate social responsibility or even the desire to eliminate corporate personhood. Rather, what is required is a greater emphasis on the notion of corporateness that undergirds the theological genealogy of the corporation—for if neoliberalism functions as a religion then part of the solution may be a theological one. (shrink)

The goals of this study are to test a pattern of ethical decision making that predicts ethical intentions of individuals within corporations based primarily on the ethical values embedded in corporate culture, and to see whether that model is generally stable across countries. The survey instrument used scales to measure the effects of corporate ethical values, idealism, and relativism on ethical intentions of Turkish, Thai, and American businesspeople. The samples include practitioner members of the American Marketing Association (...) in the U.S., and full-time businesspeople enrolled in executive MBA programs in Thailand and Turkey. The study is positioned within a fairly new stream that assesses patterns across countries, rather than differences between them, in a way that might be called “culture free.” The results show a generally positive influence between cultural ethical values and ethical intentions. The results also indicate that the positive effect of corporate ethical values on ethical intentions is greater for managers with low idealism and high relativism. We also discuss the implications of our results for managers of international businesses. (shrink)

This paper examines the status of Corporate Ethical Policies (CEP) in large companies in Argentina, Brazil and Spain, with a special emphasis on Corporate Ethics Statements (CES), documents that define the firms’ philosophy, values and norms of conduct. It is based on a survey of the 500 largest companies in these nations. The findings reveal many similarities between these countries. Among other things, it emerges that most companies give consideration to ethics in business and have adopted some kind (...) of formal or informal ethical policies. Regardless of whether or not they have a CES, companies agree that ethical conduct must be taken into account when selecting, appraising and promoting personnel as an important ethical policy. There is a growing tendency to draw up formal corporate ethics documents. These documents are perceived, first and foremost, as supporting the development of corporate culture. Most respondents believe that primary responsibility for ethical issues in the company rests with the CEO. Finally, the findings indicate that most companies that devote more resources to communicating and implementing CESs have two or more formal ethics documents. The main differences between the countries included in the study concern the emphasis given to specific aspects, such as avoiding misconduct or taking ethical criteria into account when selecting personnel. The emphasis is greatest in countries where corruption seems most prevalent. (shrink)

Most models of corporate social responsibility revolve around the controversy as to whether business is a single dimensional entity of profit maximization or a multi-dimensional entity serving greater societal interests. Furthermore, the models are mostly descriptive in nature and are based on the experiences of western countries. There has been little attempt to develop a model that accounts for corporate social responsibility in diverse environments with differing socio-cultural and market settings. In this paper an attempt has been made (...) to fill this gap by developing a two-dimensional model of corporate social responsibility and empirically testing its validity in the context of two dissimilar cultures – Australia and Bangladesh. The two dimensions are the span of corporate responsibility and the range of outcomes of social commitments of businesses. The test results confirm the validity of the two-dimensional model in the two environments. The Factor analysis revealed two leading dimensions. Cluster analysis pointed to two distinctive clusters of managers in both Australia and Bangladesh, one consisting of managers with a broad contemporary concept of social responsibility, and the other with a limited narrow view. The paper concludes that corporate social responsibility is two-dimensional and universal in nature and that differing cultural and market settings in which managers operate may have little impact on the ethical perceptions of corporate managers. (shrink)

Hofstede’s cultural values framework has been applied in a study looking at possible relations between migration streams and their country of destinations. The study is based on a model which consists of three factors: Human Resources Management, Culture Dimensions and Migration and it points out their non-linear relationship. Migration outflows from Poland in 2002 are measured against culture dimensions (both in Poland and destinations countries) and power distance emerges as the most influential possible “pull” factor. A list of (...) positive and negative implications of the Human Resources Management, Migration and Culture Dimensions relationship on a personal, corporate and national level is presented. (shrink)

Hofstede’s cultural values framework has been applied in a study looking at possible relations between migration streams and their country of destinations. The study is based on a model which consists of three factors: Human Resources Management, Culture Dimensions and Migration and it points out their non-linear relationship. Migration outflows from Poland in 2002 are measured against culture dimensions (both in Poland and destinations countries) and power distance emerges as the most influential possible “pull” factor. A list of (...) positive and negative implications of the Human Resources Management, Migration and Culture Dimensions relationship on a personal, corporate and national level is presented. (shrink)

This paper reflects on the possible relationship between organizational cultures and ethics. It begins by pointing out that viewing companies as cultures legitimates the creation of values and shared meanings as part of business practice. But it also points out that there is a risk involved: management by values can be a new form of manipulation and control. The author suggests that this danger can be averted and proposes that creation of corporate cultures be examined in the light of (...) Aristotelian thought. However, he stress that this return to Aristotelian tradition cannot ignore corporate social responsibility or the need to imbue corporate cultures with a post-conventional perspective. (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 research note examines the feasibility of using corporateWeb sites as an indicator of corporate culture. This is done by comparing theWeb sites of 12 multinational companies in two distinct business sectors—food services and pharmaceuticals—across 23 subdimensions of corporate culture. Differences in the corporate cultures of these companies, as observed in theirWeb sites, are then discussed.

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)

A cross-cultural empirical study is reported in this article which looks at ethical beliefs and behaviours among French and German managers, and compares this with previous studies of U.S. and Israeli managers using a similar questionnaire. Comparisons are made between what managers say they believe, and what they do, between managers and their peers' attitudes and behaviours, and between perceived top management attitudes and the existence of company policy. In the latter, significant differences are found by national ownership of (...) the company rather than the country in which it is situated. Significant differences are found, for both individual managers by nationality, and for companies by nationality of parents, in the area of organizational loyalty. The attitude towards accepting gifts and favours in exchange for preferential treatment, as a measure of societal values, is also found to show significant differences between national groups. However, no significant differences are found for measures for group loyalty, conflict between organizational and group loyalty and for conflicts between self and group/organization. The findings have implications for cross-border management decision strategies regarding such issues as receiving and giving of gifts, and the management of relations between local employees and international organizations which may be affected by differences in attitude to corporate loyalty. (shrink)

This book examines the development and adoption of corporate social responsibility in Polish businesses and social and environmental organizations, and analyzes the corresponding impact at the strategic and operational level in these fields. It presents the status quo of CSR in Poland from three main perspectives: The first presents theoretical works based on current research and recent advances, while the next takes a closer look at empirical findings in the different fields of CSR and presents best practices from major (...) international companies operating on the Polish market. Lastly, it presents a range of case studies from small and medium companies and NGOs in Poland and gives an outlook on the future development. Readers will benefit from an in-depth discussion of the opportunities and challenges that businesses and organizations in Poland are currently facing with regard to traditional national values and the influx of new cultural and social dimensions and patterns produced by international businesses entering the Polish market. Taken together, the lessons learned, case studies and snapshots of the latest developments provide a comprehensive overview of the state of the art of CSR in Poland, as well as a blueprint that can be applied to other Eastern European countries. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Reviewed by:Japan Unbound: A Volatile Nation's Quest for Pride and PurposeDaniel A. MetrauxJapan Unbound: A Volatile Nation's Quest for Pride and Purpose. By John Nathan. Boston: Houghton Mifflin Company, 2004.Immediately after my return from an eight-day visit to Japan in late March 2004, I happened upon a long article in the New York Times (March 27, 2004, p. A4) featuring Hitomi Kanehara, a twenty-year-old author of a novel about (...) her post-bubble generation. Her portrait of a radically changing society in Japan reflects what I learned from two dozen interviews with Japanese friends and colleagues over the course of my visit.The Times article praised Kanehara for the portrait of young people in Japan since the 1990 collapse of Japan's "bubble economy" of the 1970s and 1980s:It is a world of "freeters," young Japanese surviving on part-time jobs and unconcerned with their future; of unsentimental sex and a profound inability to communicate verbally; a world in which a killing is viewed with amorality. The institutions that built postwar Japan—the family, school and companies—are noticeable by their absence. In a nation known for its social cohesion, the characters have no interest in playing a role in society, but only in finding personal satisfaction among themselves. Unlike Japanese in, say, their 30s, the characters in the novel are not disillusioned at Japanese society, since they had few expectations to begin with. "There are many people who don't expect anything from society," Ms. Kanehara says. "That's precisely why they are looking inward or to people [End Page 678] closest to them. I never knew the bubble era, so my way of looking at things can't help being different. Since I was born, I've never experienced a time of prosperity. Without my being aware, it's possible that my writing reflects the era."The Japan that I observed ever so briefly in March 2004 after a four-year absence is a society that is undergoing revolutionary changes in values and behavior in every sphere of life from education and popular culture to business and government. The result is a process that is radically changing the Japanese cultural landscape, making it a place vastly different from its traditional and even recent past.This view of Japan is carefully chronicled in John Nathan's most recent work, Japan Unbound: A Volatile Nation's Quest for Pride and Purpose. Nathan, the Takashima Professor of Japanese Cultural Studies at the University of California at Santa Barbara and author of highly praised books on Mishima Yukio and Sony, explores many facets of contemporary Japanese society ranging from education and families to business, politics, and foreign relations.Nathan analyzes a nation experiencing dramatic change as Japan moves away from many of its traditional values toward a very uncertain future. A long and demeaning recession has weakened the foundations of the traditional family system and has contributed to the rapid rise of divorce and an increase in the physical abuse of children by their families. The recession has contributed to the weakening of the bond between Japan's corporations and their employees, who are losing their right to lifetime employment. More and more Japanese are growing skeptical of their nation's dependant relationship of over a half-century with the United States, and nationalistic and xenophobic books are climbing up the best-seller list.One matter that Nathan discusses brilliantly is the traumatic breakdown of order and cohesion in Japan's primary and secondary schools and the increasingly rebellious nature of Japanese youth. He writes about riotous conditions in classrooms in a country once famous for respectful children. His best chapter depicts chaos in the classroom, where teachers across the country have simply lost control of their students. Disruptive students rule the roost, bringing intolerable disorder and engaging in physical attacks on other students as well as teachers and administrators. Nathan writes:Classroom breakdown is only part of a larger crisis of anger and withdrawal that has bewildered parents and educators.... In the United States, suspension is a legal option; in Japan suspension and expulsion are taboo under any circumstances. Promotion is based... (shrink)