Public pressure is essential for providing multinational enterprises (MNEs) with motivation to follow the standards of human rights conduct set in soft-law instruments, such as the United Nations Guiding Principles on Business and Human Rights. But how does the public judge MNE involvement in human rights violations? We empirically answer this question drawing on an original survey of American adults. We asked respondents to judge over 12,000 randomly generated scenarios in which MNEs may be considered to have been (...) involved in human rights violations. Our findings reveal substantial gaps between public judgments and the standards set in soft law and the normative literature. We identify the attributes of episodes of human rights violations involving MNEs that influence public judgments, including the relationship between the MNE and the perpetrator, the practice of due diligence, and the type of abuse. These results provide insights as to when we might expect public pressure to drive MNE compliance with soft-law instruments, and they direct attention to specific standards that will likely require stronger, ‘hard’ law approaches or broader efforts to shift the public’s view. (shrink)

Over the last two decades there has been a proliferation of partnerships between business and government, multilateral bodies, and/or social actors such as NGOs and local community organizations engaged in promoting development. While proponents hail these partnerships as an important new approach to engaging business, critics argue that they are not only generally ineffective but also serve to legitimate a neo-liberal, global economic order which inhibits development. In order to understand and evaluate the role of such partnerships, it (...) is necessary to appreciate their diversity with respect to not only the activities that they engage in, but also the degree to which they are subject to social control. This paper distinguishes four different types of business partnerships, based upon differing degrees of social control: conventional business; corporate social responsibility; corporate accountability; and social economy. Each type of partnership is described, their basic forms are noted, and the conditions and prospects for them contributing to development are examined. By way of conclusion, an analysis is offered of how the different types of business partnerships relate to different conceptions of development and function as policy paradigms to promote different globalization agendas. (shrink)

Almost two decades ago, Prahalad and Hammond [Harv Bus Rev, 80(9):48–59, 2002] introduced the base/bottom of the pyramid (BOP) approach to profitably serving the poor with business models adapted from developed markets while alleviating poverty. In response to disappointing results and ethical criticism, the BOP approach evolved from a just-for-profit approach with a passive role of the poor to an inclusive development approach that integrates the principles of the triple bottom line. A recent review of the BOP literature [Dembek (...) et al., J Bus Ethics 165(3):365–382, 2020], however, reveals a lack of empirical evidence to support the sustainable BOP approach. In this paper, we specify the assumptions underlying the sustainable BOP approach and test them using structural equation modeling with clustered robust standard errors on a unique dataset of 212 firms. Our findings show that BOP business model involvement and adaptive capacity are significant drivers of the triple bottom line at the BOP; however, business model adaptive capacity does not guarantee an ecologically sustainable performance at the BOP. We find that there is a need for further extension of the ethical foundations of the sustainable BOP approach. (shrink)

The Operation Lava Jato, initiated in 2014 by the Ministry of Finance and carried out by the Brazilian Government Agency for Law Enforcement and Prosecution of Crimes, brought to light the unethical practices of several national contractors, despite their declared commitment to social responsibility and ethical management—a corporate conduct epitomized in the popular saying: “Do what I say; don’t do what I do”. In this chapter, we analyze such disconnection between discourse and practice vis-a-vis the literature on leadership and (...) class='Hi'>business ethics, Brazilian culture and historical analyses of the Brazilian contractors industry. We examine the official discourse of a Brazilian contractor, as observed in documents retrieved from websites and statements to the press, and its practices, as depicted in the media and documented in testimonies already conducted by the federal courts and attached to the original case-files. Specifically, we aim to contribute to the reflection on management and ethics in Brazil by identifying and discussing the factors that seem to have promoted such disconnection, including aspects of national culture and the institutional environment, together with organizational culture and leadership. (shrink)

Expedition of the growth of a country’s economy in the wake of entrepreneurial activity is significant. As skills are utilized and knowledge is applied, the entrepreneurs establish new businesses, and the enhancement of the latter is brought about through their sagacious decision-making and ingenuity. At one end, where entrepreneurial activities have been a boon to the societal progress; they have sped up development of economies worldwide. This can be attributed to a gamut of factors, which include, societies’ expansion on the (...) grounds of industrialization and urbanization; nurture of a culture of more information and awareness; formal training of the entrepreneurs; and, relaxed legal procedures. This study lays down emphasis on how upholding stable business policies can positively impact an entrepreneurial venture. Employing a well-developed and verified scale, data collection from 230 respondents was done on a convenience basis. The respondents chosen for this survey among whom the distribution of questionnaires was conducted were all situated in various localities of the District Central of Karachi, Pakistan; and descriptive statistics were applied on the variables pertinent for this study such as the establishment of stable business policies, continuation of the existing business policies, and achievement of the business targets based on the stable policies. It is intended that this research article shall serve to augment the scholarly literature that already exists on the subject matter that pinpoints the significance of the stable and continuous policies for an entrepreneurial business involved in the primary schooling businesses across the District Central of Karachi, Pakistan. This research paper addresses the need of having stable business policies for Pakistani entrepreneurs, and envisions itself to be one of the blueprints that can be considered by the relevant regulatory bodies while they make informed decisions. A well sketched out itinerary of initiatives could then be composed, which can assist in the meeting of the targets of entrepreneurial ventures, and eventually help in eradicating poverty from Pakistan. (shrink)

This paper attempts to mediate between the extremes of a managerial conception of business ethics which subordinates it to management and a political conception which subordinates it to political philosophy. The mediated position arrived at sees the central focus of business ethics in the intersection of micro-managerial concerns with macro-political ones provided by the task of determining morally optimum forms of business. Involvement with the macro rules out subordination to management while, conversely, involvement with the (...) micro rules out subordination to political philosophy. Moreover, such is the (increasing) social importance of business, that business ethics can have at least co-equal explanatory status with political philosophy as a discipline. (shrink)

One of the most influential ideas in the field of business ethics has been the suggestion that ethical conduct in a business context should be analyzed in terms of a set of fiduciary obligations toward various “stakeholder” groups. Moral problems, according to this view, involve reconciling such obligations in cases where stakeholder groups have conflicting interests. The question posed in this paper is whether the stakeholder paradigm represents the most fruitful way of articulating the moral problems that arise (...) in business. By way of contrast, I outline two other possible approaches to business ethics: one, a more minimal conception, anchored in the notion of a fiduciary obligation toward shareholders; and the other, a broader conception, focused on the concept of market failure. I then argue that the latter offers a more satisfactory framework for the articulation of the social responsibilities of business. (shrink)

We present an inventory of business ethics-related content to supplement and reinforce classroom education. The 23 films and documentaries introduced here allow the instructor to illustrate ethical issues in a manner which resonates with students. While sixteen of these selections involve fictitious plots, three selections (The Corporation, Enron: The Smartest Guys in the Room, and Inside Job) are documentaries, and four selections (Barbarians at the Gate, Rogue Trader, The Pursuit of Happyness, and Too Big to Fail) are based on (...) a dramatization of actual events. For each selection, we present a contextual synopsis and leading questions to help instructors demonstrate the existence of ethical issues so that students may gain a better understanding of the need for ethical behavior and practices in business. We also categorize various ethical breaches by functional business areas. (shrink)

Building on prior research in Confucianism and business, the current study examines the effects of Confucianism on consumer trust of government involvement with products and company brands. Based on three major ideas of Confucianism – meritocracy, loyalty to superior, and separation of responsibilities – it is expected that consumers under the influence of Confucianism would perceive products from government-involved enterprises to have more desirable attributes and show preference for their company brands. Findings from an empirical study in the (...) Chinese automobile market support the hypotheses. The results suggest that small firms doing business in China would especially benefit from some association with the government. These results also provide managerial implications for enterprises in other countries with a Confucian cultural background. (shrink)

NEW EDITION, REVISED AND UPDATED This is a pragmatic, hands-on, up-to-date guide to determining right and wrong in the business world. Joseph Weiss integrates a stakeholder perspective with an issues-oriented approach so students look at how a business’s actions affect not just share price and profit but the well-being of employees, customers, suppliers, the local community, the larger society, other nations, and the environment. Weiss uses a wealth of contemporary examples, including twenty-three customized cases that immerse students directly (...) in recent business ethics dilemmas and ask them to consider how they would resolve them. The recent economic collapse raised ethical issues that have yet to be resolved—there could not be a better time for a fully updated edition of Weiss’s classic, accessible blend of theory and practice. New to the Sixth Edition! New Cases! Fourteen of the twenty-three cases in this book are brand new to this edition. They touch on issues such as cyberbullying, fracking, neuromarketing, and for-profit education and involve institutions like Goldman Sachs, Google, Kaiser Permanente, Walmart, Ford, and Facebook. Updated Throughout! The text has been updated with the latest research, including new national ethics survey data, perspectives on generational differences, and global and international issues. Each chapter includes recent business press stories touching on ethical issues. New Feature! Several chapters now feature a unique Point/Counterpoint exercise that challenges students to argue both sides of a contemporary issue, such as too-big-to-fail institutions, the Boston bomber Rolling Stone cover, student loan debt, online file sharing, and questions raised by social media. (shrink)

Labelling schemes are practical arrangements aimed at making 'ethical' products widely available and visible. They are crucial to expanded development of ethical markets and hence to the addition of moral dimensions to the normally amoral behaviour linking consumers and retail and production businesses. The study reported here attempts to assess the contribution of UK ethical, social and environmental certification and labelling initiatives to 'sustainable' consumption and production. The research sought to assess the overall potential of initiatives to inject human values (...) into the supply-distribution chains, through a qualitative survey of 15 of the 26 main UK initiatives: in social justice, animal welfare and environmental sustainability from the agriculture, food processing, timber, aquaculture, textiles and personal care sectors. By analysing the basic characteristics and concepts of these labels and investigating the emergence of labelling initiatives, we assess whether labels help add an ethical dimension, or whether, in some respects, they also reduce such missions to the technical management of adding only another 'utility' to a product. The analysis assesses whether the gradual 'mainstreaming' of ethical initiatives such as 'Fairtrade' risks subsuming ethical goals within business participants' competitive and profit-oriented logics. However, the contrasting perspectives revealed between rival labelling initiatives show that the scope and functions of labelling projects go beyond the manifest ones of information communication between consumers and producer and actually introduce elements of socio-political regulation. These are essential for more sustainable and ethical business practices and are an integral part of any humanisation of business involvement. (shrink)

The role of the business leader is key to develop the culture of an enterprise. To exemplify its importance in the national and globalcontext, the Muslim author from Indonesia points with admiration to Konosuke Matsushita, founder of Matsushita Electric Corporation, who already in the 1930s set up the seven ethical principles for healthy business growth, which also are commended by the Islamic imperative. Due to the current dynamic business environment, Muslims find themselves confronted with serious dilemmas and (...) need guidance from a clearly developed Islamic business ethics. For this purpose the author offers, first, the essentials of such an ethics: the utmost importance of all sort of productive work and the distribution of wealth in society; the vocation of trade; the fundamental principles of freedom and justice for business conduct; the prescription of certain manners such as leniency, service-motive, and consciousness of Allah; and mutual consultation. He, then, presents his personal view on leadership in business. It involves three basic ingredients: an inspiring vision of high and achievable standards; a value system based on the principles of freedom and justice and promoting fairness, business integrity, and efficiency; and courage to face tough decisions while putting one’s complete trust in Allah. (shrink)

Traditionally, books on business ethics focus on CSR, companies' relations with their stakeholders, and corporate citizenship. More recently, green credentials and sustainability have been added to that agenda. Unconventionally, this book argues that business ethics are basic to running business, not a separate subject. They are inherent to the governance and management of every organization, not an optional exercise in corporate citizenship. Business ethics concern behaviour in business and the behaviour of business. Decisions at (...) every level in a company have ethical implications - strategically in the board room, managerially throughout the organization, and operationally in all of its activities. The use, and sometimes the abuse, of corporate power, the process of corporate governance, raises ethical issues. Business involves risk-taking, whether decisions are at the strategic, managerial, or operational level. Exposure to ethical risk needs to be part of every organization's strategy formulation, policy making, and enterprise risk management. Designed to be read by both undergraduates and postgraduates, this book is a primer on ethics in business. It is also relevant to ethics courses that are now part of many legal, accountancy and other professional examinations. The book is not about moral philosophy, nor does it prescribe appropriate standards of behaviour or recommend economic, legal or political solutions. Rather it enables readers to recognize ethical issues in business, to respond appropriately, and to embed ethics in business processes. The book not only considers what business ethics are, and why they are important, but offers practical approaches on how to develop a successful corporate ethics culture. (shrink)

_Business Cases in Ethical Focus_ is a new collection of in-depth case studies from around the world, covering all major areas of business ethics. Thirty-six cases are included, with a broad range of topics such as the ethics of entrepreneurship and finance, the challenges that diversity raises for business, and the moral issues involved in selling cannabis. The cases are provocative yet sufficiently complex to convey the difficulty of moral dilemmas and the potential for reasonable disagreement. This book (...) can be used on its own or as a supplemental text for group discussions and assignments. (shrink)

Responsible business conduct (RBC)—the corporate activities and initiatives that proactively address corporate involvement in human rights, environmental, and governance threats—has become an increasingly used means to counteract and prevent adverse effects of global businesses. Unlike other business sectors whose adverse impacts and RBC efforts (or lack thereof) are well documented, a comprehensive understanding of the state of commodity trading (CT), has been missing. In response, this paper uses a multidisciplinary literature review to provide an integrative understanding of (...) the current state of research on the relationship between CT and RBC. Based on a review of 131 articles, we advance a granular understanding of the current and prospective role of commodity traders in RBC by grouping extant research into three overarching themes: (1) industry self-regulation and co-regulatory initiatives, (2) government-led regulatory initiatives and policy responses, and (3) company-level management strategies impacting RBC practices. In addition to illustrating the themes through existing research and identifying gaps along the overarching themes, we use our literature review to suggest avenues for future research. The paper’s overarching contribution is, first, to synthesize previously fragmented findings into a coherent framework of CT and RBC. And second, to offer guidance on how scholarship in this important domain can be developed into a more mature, legitimate and practical stream of research. (shrink)

Business actors create and operate in global production networks that bring them in contact with regulatory frameworks across multiple levels and domains. Importantly, they also participate in shaping those regulatory frameworks. But what are the specific interests they pursue in their involvement in regulation? Traditionally, scholars tended to assume that the focus of business actors is primarily on avoiding (stringent) public regulation. Recent developments have highlighted a broader range of business interests, however. Accordingly, this paper investigates (...) business positions on the ascription of duties and rights in regulation, specifically in the fields of due diligence, supply chain liability, and extraterritorial jurisdiction. The paper explores these issues in the context of business regulation in the field of Human Rights, looking at the United Nations Guiding Principles on human rights, their German implementation in the ‘Nationaler Aktionsplan Wirtschaft und Menschenrechte’ and the associated processes, in particular. (shrink)

As a consequence of the changing conditions of doing business, we can observe the emergence of an increasing number of industrial and company-specific codes of conduct, as well as social and environmental standards. This paper considers these initiatives as being self-regulating governance mechanisms, which are characterized by a process of voluntary adherence on the part of firms to certain mechanisms or principles that seek to promote a “good society.” Two specific internationally established standards are discussed: Social Accountability 8000 and (...) AccountAbility 1000. These institutionalized approaches are described and then contrasted in relation to a number of different factors, particularly the degree to which they foster “reflexivity,” in terms of how businesses think about these issues, and “dialog,” in terms of how businesses interact with stakeholders. Such questions are relevant to the ways in which these standards might be introduced and implemented, and which of these institutionalized approaches are the most promising for international businesses in developing countries. (shrink)

The widespread association of business with maximising profit has tended to obscure its social dimension. Indeed some writers doubt whether business can ever be socially engaged and others claim that it should not. This paper seeks to show that besides seeking profit businesses can properly practise social responsibility, defined as involving themselves in their communities and engaging in non-profit activities. It explores the ways in which business social responsibility can contribute to social capital, the resources created by (...) social bonds which members of a society can draw upon and which make it possible to achieve otherwise unattainable ends.2. (shrink)

This paper examines two issues about professionalism and business that appear at first blush to be entirely separate. The first is the question of who counts as a “professional,” and whether, in particular, business people are “professionals.” The second issue is howacknowledged professionals that regularly interact with business, such as accountants, lawyers, and physicians, can find the moral free space necessary to maintain professional integrity in the face of financial pressures. Conflicts of interest for professionals working incorporations (...) recur with disturbing regularity, and often have serious consequences. In the end I will show how both issues share a common solution. The solution involves understanding the normative function of the manager in the modern corporation, a function, I will argue, made more conspicuous by work over the last two decades done in the areas of stakeholder theory, corporate social performance (CSP), and social contract theory. The remainder of the paper is devoted to articulating these two problems and clarifying their common solution. (shrink)

This book addresses an essential need felt by many who seek to promote best business practices in China and East Asia - namely the need for culturally appropriate instructional materials (basic information, case studies and ethical perspectives) that will allow managers and entrepreneurs to understand and embrace the challenge of moral leadership in business. In an era characterized by globalization and the increasing importance of the economies of China, India, Japan, and SE Asia, international business ethics must (...) reflect the concerns of the people living and working in this area, the moral and spiritual traditions that have nurtured them, and their specific contributions to sustainable development. This book presents twenty important case studies, taken from newsworthy events of the past few years, in which Asians and others have attempted to respond to this challenge. Each case study has been selected and shaped in order to highlight various aspects of doing business in Asia, starting with basic principles and moving on to the specific responsibilities that businesses have towards their various stakeholders. The authors contend that the best way to appreciate the relevance of Asian moral and spiritual traditions is to determine their specific contribution to virtue ethics, where the ancient traditions of both East and West converge in their focus on the qualities of moral leadership that form the basis of best business practice. Exploring the case studies will enable readers to appreciate the continued relevance of these ethical perspectives in Asian business. Best business practice clearly involves learning to do business and playing the game according to the rules; but the necessity of playing by the rules is not likely to become clear until one takes up the path that leads to a virtuous life in business, developing a moral character chiefly based on integrity. (shrink)

Per definition business sustainability demands the integration of environmental, social, and economic outcomes. Yet, managerial decision-making involving sustainability objectives is fraught with tension and the way managerial decision-makers frame sustainability issues in their mindset influences how sustainability tensions are managed at the organisational level. In the bid to better understand what types of managerial mindsets, or cognitive frames, foster integrative business sustainability practices that simultaneously advance environmental, social, and economic objectives, extant research has focussed on the underlying logics (...) that drive the acknowledgement of sustainability tensions. However, the existing logics-based constructs do not sufficiently explain this link, and it has been suggested that managers perceive and manage sustainability tensions based on the values that they hold. To clarify the roles of managerial values and logics as antecedents in business sustainability decision-making, we integrate Keeney’s value-focussed thinking approach with managerial and organisational cognition perspectives. Drawing on data from a survey with 169 senior procurement managers in Australia we found three types of cognitive frames which demonstrate that stronger sustainability values are associated with a more holistic perception of sustainability tensions and vice versa. We also found that managers’ cognitive framing of sustainability is strengthened by more holistic organisational cognitive frames and discuss according implications for managerial decision-making in theory and practice. (shrink)

This article describes the theory and process of global business citizenship (GBC) and applies it in an analysis of characteristics of company codes of business conduct. GBC is distinguished from a commonly used term, “corporate citizenship,” which often denotes corporate community involvement and philanthropy. The GBC process requires (1) a set of fundamental values embedded in the corporate code of conduct and in corporate policies that reflect universal ethical standards; (2) implementation throughout the organization with thoughtful awareness (...) of where the code and policies fit well and where they might not fit with stakeholder expectations; (3) analysis and experimentation to deal with problem cases; and (4) systematic learning processes to communicate the results of implementation and experiments internally and externally. We then identify and illustrate the three attributes of a code of conduct that would reflect a GBC approach. The three attributes are orientation, implementation, and accountability. The various components of these attributes are specified and illustrated, using website examples from six global petroleum companies. (shrink)

Popular press headlines frequently reveal unethical or illegal activity in business and sports. Given these parallel ethical lapses in business and sport, our study examines potential relationships between student sport involvement (active and passive) and ethical judgments regarding issues in sport and business. Our results, based on a sample of 202 undergraduates in an upper-division management class, indicate a significant negative relationship between high passive sport involvement and ethical judgments about sport issues as well as (...) a consistent significant positive relationship between female gender and ethical judgments about sport and business issues. (shrink)

Recognition is a fundamental good that corporations ought to give to employees, a good that is essential to their well-being, and thus, recognition should be among the central notions in our understanding of organizations and in any theory of business ethics. Drawing upon the work of Philip Pettit and Robert Brandom as well as themes from instrumental stakeholder theory, I develop a complex notion of recognition involving both status recognition and capacity recognition and argue that this account meets three (...) fundamental desiderata of any adequate account of business ethics: It makes salient key normative features of the practice of business. It articulates a genuine ethical demand that is not reducible to the economic imperatives typical of self-interested actors. And it is compatible with the strategic demands that organizations face to remain competitive. Status recognition involves treating others as persons whose rights are legally enshrined. Capacity recognition involves treating others as persons possessing specific capacities. When corporations accord these forms of recognition to employees, they promote their well-being in a fundamental way and they promote the long-term success of the firm. Thus, recognition represents an underappreciated concept that may further contribute to theory development in business ethics and organization studies and more ethical business practice. (shrink)

This book broadens the range of theoretically informed empirical research on business ethics (using data from major American corporations) and addresses the underlying questions about business ethics scholarship. It culminates a decade’s work by the authors—individually, jointly, and with others. The first part of the book addresses the major theoretical questions involved in doing empirical research about normative issues. It addresses the boundaries—methodological, conceptual, and institutional—that too easily separate philosophical and social scientific approaches to business ethics and (...) reviews various ways in which those approaches can be brought close together to benefit research and practice. The second part of the book describes and explains the increasing institutionalization of formal systems designed to manage ethics in organizations. It reviews the state of the art initiatives to foster ethical business conduct and also looks at the relative roles of executives and external policies (e.g., government regulations) in creating meaningful ethical initiatives. In the third part, the focus shifts to individual ethical behavior and how organizations influence it, describing in detail some of the outcomes of organizational ethics initiatives. It also looks at successes, failures, and new prospects in the effort to identify and explain the multiple factors that influence individual ethical behavior. (shrink)

‘Client involvement’ has been a mantra within health policies, education curricula and healthcare institutions over many years, yet very little is known about how ‘client involvement’ is practised in home‐care services. The aim of this article is to analyse ‘client involvement’ in practise seen from the positions of healthcare professionals, an elderly person and his relative in a home‐care setting. A sociologically inspired single case study was conducted, consisting of three weeks of observations and interviews. The study (...) has a focus on the relational aspects of home care and the structural, political and administrative frames that rule home‐ care practice. Client involvement is shown within four constructed analytical categories: ‘Structural conditions of providing and receiving home care’; ‘Client involvement inside the home: performing a professional task and living an everyday life’; ‘Client involvement outside the home: liberal business and mutual goal setting’; and ‘Converting a home to a working place: refurnishing a life’. The meaning of involvement is depending on which position it is viewed from. On the basis of this analysis, we raise the question of the extent to which involvement of the client in public home‐care practice remains limited. (shrink)

Micro and small businesses contribute the majority of business activity in the most developed economies. They are typically embedded in local communities and therefore well placed to influence community wellbeing. While there has been considerable theoretical and empirical analysis of corporate citizenship and corporate social responsibility (CSR), the nature of micro-business community responsibility (mBCR) remains relatively under-explored. This article presents findings from an exploratory study of mBCR that examined the approaches, motivations and barriers of this phenomenon. Analysis of (...) data from 36 semi-structured interviews with micro-business owner-operators in the Australian city of Brisbane revealed three mBCR approaches, suggesting an observable mBCR typology. Each mBCR type was at least partly driven by enlightened self-interest (ESI). In addition to a pure ESI approach, findings revealed ESI combined with philanthropic approaches and ESI combined with social entrepreneurial approaches. The combination of doing business and doing good found amongst participants in this study suggests that many micro-business owner-operators are supporters of their local communities and, therefore, driven by more than profit. This study provides a fine-grained understanding of micro-business involvement in community wellbeing through a lens of responsible business behaviour. (shrink)

This study explores the role that business schools have in developing favorable attitudes toward business involvement in corporate social responsibility. Two cohorts of incoming students from two internationally accredited MBA programs in Chile and two cohorts of graduating students from the same institutions were compared in terms of their attitudes toward the role of business in alleviating social ills and the role they assigned to business schools in preparing managers to effectively address social issues. The (...) attitudes expressed by graduates of the two programs changed after program completion. Faculty attitudes toward business involvement in CSR may play a role in the observed differences between the graduates of both institutions. (shrink)

Without question “business ethics” is one of the hot topics of the day. Over the past months we have seen business after business charged with improper practices that violate commonly-accepted ethical norms. This has led to a loss of confidence in corporate management, and has had severe economic consequences. From many quarters business educators have heard the call to put more emphasis on ethical practices in their business courses and curricula. Engineering educators are also heeding (...) this call, since the practice of engineering usually involves working for (or leading) a business and/or engaging in business transactions. In the summer of 2002, Auburn University’s Engineering Professional Development program made the decision to produce—based on the author’s Executive MBA course in Business Ethics—a distance-delivered continuing education program for professional engineers and surveyors. Participants across the USA now may use the course to satisfy continuing education requirements with respect to professional licensing and certification. This paper outlines the purpose and content of the course and describes its production, distribution, application, and evaluation. (shrink)

This article analyzes business power in the context of noisy politics by comparing business involvement in two British referendum campaigns: one about membership in the European Communities in 1975, and the Brexit referendum about European Union membership in 2016. By exploring these two contexts, the article seeks to identify the conditions under which business elites can and cannot be effective in a context of noisy politics. Three key factors are identified as determinants of business influence (...) during periods of noisy politics: the incentives to get directly involved in noisy politics; the legitimacy of business involvement; and, finally, the capacity to act in a cohesive way. The article shows that these factors have changed substantially over the last four decades because of wider changes in the nature of capitalism, and their impact on business power in the United Kingdom and more generally is discussed. (shrink)

This article first describes some of the chief contrasts between Judaism and American secularism in their underlying convictions about the business environment and the expectations which all involved in business can have of each other—namely, duties vs. rights,communitarianism vs. individualism, and ties to God and to the environment based on our inherent status as God’s creatures rather than on our pragmatic choice. Conservative Judaism’s methodology for plumbing the Jewish tradition for guidance is described and contrasted to those of (...) Orthodox and Reform Judaism.One example of how Conservative Judaism can inform us on a current matter is developed at some length—namely, privacy in the workplace. That section discusses (1) the reasons for protecting privacy; (2) protection from intrusion, including employer spying; (3) protection from disclosure of that intended to remain private; (4) individualistic vs. communitarian approaches to grounding the concern for privacy; and (5) contemporary implications for insuring privacy in business. (shrink)

Today, business corporations across the globe are moving beyond the short-term myopic goal of profit maximization to long-term sustainability goals involving environmental, social and corporate governance goals. This is due to the growing realization that ESG factors constitute a significant source of risk for the business and can affect their financial returns. Academic research has shown that improved ESG performance has lowered risk and enhanced financial performance but results seemed to vary widely across countries. Regrettably, this subject remains (...) largely un-researched in the context of emerging economies, including India. This paper attempts to fill this much needed gap in sustainability literature in one of the largest emerging market economies, India. It empirically examines the impact of environmental, social and corporate governance performance of companies on their financial performance, in India, using panel regression models. The findings of the study indicate that good corporate ESG performance enhances financial performance. The findings of this study have important implications for investors, corporate management as well as policymakers and regulators. (shrink)

The notion that the firm, and economic activity in general, is inherently amoral is a central feature of positive economics that is also widely accepted in business ethics. Theories as disparate as stockholder and stakeholder theory both leave this central assumption unchallenged. Each theory argues for a different set of external ethical restrictions, but neither adequately provides an internal connection between business and the ethical rules business people are obliged to follow. This paper attempts to make this (...) connection by arguing that the purpose of business is to produce a good or service for trade. Trade involves both a respect for individual autonomy and property rights and squarely places moral norms internal to the practice of business. Trade is not a contingent activity of business, it is a practice rule which also provides the common sense boundary between business and charity on the one hand, and crime on the other. Business and those who engage in it are, from the internal point of view, bound by the purpose of trade and not just the laws of the land. (shrink)

Some business schools have come under considerable criticism for what observers see as their complicit involvement in the corporate scandals and financial crises of the last 15 years. Much of the discussion about changes that schools might undertake has been focused on curriculum issues. However, revisiting the curriculum does not get at the root cause of the problem. Instead, it might create a new challenge: the risk of decoupling the discussion of the curriculum from broader issues of institutional (...) purpose. In this article, we argue that the most pressing need facing business schools is not to teach new courses to be responsive to social demands and stay relevant. Instead, it is to revisit their basic mission—the principles and beliefs on which they were founded—and then to re-evaluate their curriculum design choices in this light. We contrast the Spartan and Athenian educational paradigms as a way of shedding light on the nature of a coherent response. (shrink)

This paper explores the level of obligation called for by Milton Friedman’s classic essay “The Social Responsibility of Business is to Increase Profits.” Several scholars have argued that Friedman asserts that businesses have no or minimal social duties beyond compliance with the law. This paper argues that this reading of Friedman does not give adequate weight to some claims that he makes and to their logical extensions. Throughout his article, Friedman emphasizes the values of freedom, respect for law, and (...) duty. The principle that a business professional should not infringe upon the liberty of other members of society can be used by business ethicists to ground a vigorous line of ethical analysis. Any practice, which has a negative externality that requires another party to take a significant loss without consent or compensation, can be seen as unethical. With Friedman’s framework, we can see how ethics can be seen as arising from the nature of business practice itself. Business involves an ethics in which we consider, work with, and respect strangers who are outside of traditional in-groups. (shrink)

Businesses and business scholars interested in tackling climate change can benefit by engaging with the innovative but nascent movement of climate assemblies. I articulate three promising ways they can meaningfully engage with this movement.

This paper addresses the question of the existence of corporate philanthropy. It proposes a framework for analysing corporate philanthropy along the dimensions of business/society interest and primary/secondary stakeholder focus. The framework is then applied in order to understand business involvement with the arts in the U.K. A unique dataset of 60 texts which describe different firms' involvement with the Arts is analysed using formal content analysis to uncover the motivations for business involvement. Cluster analysis (...) is then used in order to identify motivational groupings. Two broad types of involvement are identified – advertisers and legitimators. Only in one case of the 60 is there the potential to observe pure altruism. The contribution of this paper is twofold. First, it provides a clear framework to understand the motivations for corporate giving and applies this using empirical data. Secondly, this research finds little evidence, if at all, of corporate philanthropy in the context of firms giving to the Arts in the U.K. (shrink)

This book helps us in undertsanding ethics, business ethics and organizational ethics, issues relating to business ethics and the key players involved. It explains the challenges involved in developing an ethical culture within an organization and what lies ahead for companies as they grow on an international and global scale.

Abstract:This paper outlines three conceptions of the relationship between normative and empirical business ethics, views we refer to asparallel, symbiotic, andintegrative. Parallelism rejects efforts to link normative and empirical inquiry, for both conceptual and practical reasons. The symbiotic position supports a practical relationship in which normative and/or empirical business ethics rely on each other for guidance in setting agenda or in applying the results of their conceptually and methodologically distinct inquiries. Theoretical integration countenances a deeper merging ofprima faciedistinct (...) forms of inquiry, involving alterations or combinations of theory, metatheoretical assumptions, and methodology. This paper explicates these positions, summarizes arguments for and against each, and considers their implications for the future of business ethics research. (shrink)

Political theories in general and deliberative democracy in particular have become quite popular in business ethics over the past few years. However, the model of deliberative democracy as generally referred to in business ethics is only appropriate for conceptualizing interaction between business and society which occurs within a context which is more or less institutionalized. The model cannot account for “unregulated” interaction between business and civil society. The authors argue that scholars need to resort to the (...) so called “critical strand” of deliberative democracy if we want to conceptualize interaction that happens without the involvement of decision-making institutions as political action in a deliberative sense. Adopting this approach allows us to identify cases in which unregulated interaction between business and civil society is preferable over institutionalization. (shrink)

There seems to be a proliferation of prizes and rankings for ethical business over the past decade. Our principal aims in this article are twofold: to initiate an academic discussion of the epistemic and normative stakes in business-ethics competitions; and to help organizers of such competitions to think through some of these issues and the design options for dealing with them. We have been able to find no substantive literature — academic or otherwise — that addresses either of (...) these two broad topics and audiences. Our modest aim, therefore, is to suggest an agenda of issues, and to begin to explore and analyse some of the possible arguments for and against various philosophical or practical solutions. Part I explores the challenges facing a prize-organizing committee, including problems derived from what Rawls calls the "fact of pluralism" in democratic societies (reasonable people will always disagree over some basic values, including those relevant to evaluating business practices), and epistemic issues about how we can justify qualitative judgments on the basis of incomplete quantitative data. We also try to identify risks and opportunity costs for ethics-prize granters. In Part II we spell out (a) a range of design options and (b) some advice about how any particular prize-awarding committee might select among these options to best achieve its goals (which typically involve highlighting and publicizing best practices for ethical business). (shrink)

The purpose of the article is to encourage (and in certain ways to initiate) an intellectual debate on how business schools can meet the intellectual challenge resulting from the financial crisis. We argue that this will involve questioning the traditional paradigms of management research, will require broadening the intellectual foundation of business school activities, and will trigger revision processes to incorporate the derived learning points into degree and non-degree programs. European business schools have to cope with these (...) challenges during a phase of intense financial pressures, which may create the temptation of adopting myopic development strategies. The points made in this article may appear to be explicitly prescriptive, but they should be taken as an attempt to foster an open debate on the issues vital for the future development of the business school sector. (shrink)

Corporate community involvement is attracting increasing interest in Britain, but what do shareholders feel about this use of company assets? This timely survey of top UK corporate donors provides interesting data on current practice and explores the degree to which shareholders are consulted. The author is a member of the Department of Business Studies in the Faculty of Management and Business of The Manchester Metropolitan University, Aytoun Building, Aytoun Street, Manchester M1 3GH; e–mail j.clarke@mmu.ac.uk.

This paper summarized the findings of a qualitative study that examines the perceptions of ethical leadership held by those who perceived themselves to be ethical leaders, and how life experiences shaped the values called upon when making ethical decisions. The experiences of 28 business executives were shared with the researcher, beginning with the recollection of a critical incident that detailed an ethical issue with which each executive had been involved. With the critical incident in mind, each executive told the (...) personal story that explained the development of the values he or she called upon when resolving the ethical issue described. The stories were analyzed through the use of constant comparison, which resulted in the development of two models: (1) a framework for ethical leadership illuminating valued aspects of ethical leaderships and the value perspectives called upon when making ethical decisions, and (2) a model explaining how the executives’ ethical frameworks developed. The paper concludes with a brief discussion on virtue ethics, experiential learning, and human resource development. (shrink)

Business ethics is more than making the right decision. This book outlines the concepts and stages involved in addressing the ethical challenges of the corporate world.

Engineering, as a profession and business, is at the sharp end of the ethical practice. Far from being a bolt on extra to the ‘real work’ of the engineer it is at the heart of how he or she relates to the many different stakeholders in the engineering project. Engineering, Business and Professional Ethics highlights the ethical dimension of engineering and shows how values and responsibility relate to everyday practice. Looking at the underlying value systems that inform practical (...) thinking the book offers a framework for ethical decision-making. Covering global corporate responsibility to the increasing concern for the environment within the engineering business, the book offers ways in which value conflict can be handled. Integrating practice, value and diversity the book helps to prepare the engineer for the ethical challenges of the 21st century. This book is essential reading for all students on courses accredited by the Engineering Council e.g. Civil, Chemical, Mechanical and Environmental Engineering who need to be aware of ethics. Also of interest to practicing engineers and professionals such as Sustainability Managers and Community Workers involved in engineering projects. The authors have worked together in the area of engineering, professional and business ethics for many years and are all members of the National Centre for Applied Ethics at the University of Leeds. •Integrates ethical considerations into everyday decision-making •Shows how to review and overcome professional ethical problems •Practical case studies and examples throughout. (shrink)