The American regulatory model of corporate governance rests on the theory of self-regulation as␣the most effective and efficient means to achieve corporate self-restraint in the marketplace. However, that model fails to achieve regular compliance with baseline ethical and legal behaviors as evidenced by a century of repeated corporate debacles, the most recent being Enron, WorldCom, and Refco. Seemingly impervious to its domestic failure, Congress imprinted the same self-regulation paradigm on legislation restraining global business behavior, the Foreign Corrupt Practices Act. This (...) anti-bribery initiative prohibits unethical and illegal payments made to foreign public officials in an effort to eradicate bribery as a rational-choice global market entry strategy. However, this paper illustrates, using newly complied statistics from 1977 to 2008, that the FCPA has not had a dramatic impact on U.S. global corporate behavior despite its recent high profile coverage and the tough regulatory rhetoric about corporate compliance. The paper also extends the prior Cragg and Woof FCPA efficiency study and provides current empirical evidence to resolve several unanswered questions raised by that earlier study. (shrink)

Advertising by health care institutions has increased steadily in recent years. While direct-to-consumer prescription drug advertising is subject to unique oversight by the Federal Drug Administration, advertisements for health care services are regulated by the Federal Trade Commission and treated no differently from advertisements for consumer goods. In this article, we argue that decisions about pursuing health care services are distinguished by informational asymmetries, high stakes, and patient vulnerabilities, grounding fiduciary responsibilities on the part of health care providers and health (...) care institutions. Using examples, we illustrate how common advertising techniques may mislead patients and compromise fiduciary relationships, thereby posing ethical risks to patients, providers, health care institutions, and society. We conclude by proposing that these risks justify new standards for advertising when considered as part of the moral obligation of health care institutions and suggest that mechanisms currently in place to regulate advertising for prescription pharmaceuticals should be applied to advertising for health care services more broadly. (shrink)

This paper reports on the findings of the third in a series of surveys of large U.S.-based and multinational corporations on their ethics statements. Focusing on four types – values statement, corporate credo, code of ethics and Internet privacy policy – we find growth in the use of these statements over the last decade. We discuss the external communication of these statements, including the avenues that are now used for promotion and their intended audiences. The paper concludes with a number (...) of research issues to be addressed. (shrink)

This essay provides an overview of business ethics. I describe important issues, identify some of the normative considerations animating them, and offer a roadmap of references for those wishing to learn more. I focus on issues in normative business ethics, but discuss briefly the growing body of work in descriptive business ethics. I conclude with a comment on the changing nature of the field.

Although the societal advantages of responsible advertising are self-evident, no detailed vision of responsible ads exists. Without this vision, stakeholders have no framework for identifying, preventing, and remedying non-conforming ads. To address this problem, the four basic properties of responsible ads – consistent with an everyday-language, business-oriented definition of responsibility and the assumption that ads are not inherently bad – are posited. Then, the best milieu for creating such ads is identified.

Consumer autonomy is a fundamental topic for marketing ethics scholars. Nonetheless, autonomy’s philosophical treatment may have compromised its conceptual clarity. After reviewing the relevant ethics literature on consumer autonomy, the benefits of formally defining consumer autonomy are illustrated, and a novel formalization is adapted from potential performance theory mathematics. The goal is to transfigure a hitherto amorphous topic via a mathematical formalization that defines true autonomy, actual autonomy, reliability of wills, and reliability of product choice. The crucial and surprising result: (...) an action that decreases true autonomy can increase actual autonomy if that action engenders a sufficient increase in one or both types of reliability. Relating the insights from the formalization to the long-standing debates in consumer autonomy suggests fruitful avenues for future research. (shrink)

ABSTRACT:Increasing research attention to the ways that firms seek to influence the emotions of employees, consumers, and other stakeholders has not been accompanied by systematic attention to the ethical dimensions of emotion management. In this article we review and discuss research that informs the morality of influencing and regulating the emotions of others. What are the moral limits of the use of emotion as a management tool for shaping workplace behavior and influencing the thoughts and actions of consumers? Do the (...) ethics of emotional labor and emotional appeals (e.g., in consumer advertising) depart from moral rules that apply in “non-emotional” contexts? To explore these questions we examine research on the means by which individuals’ emotions are shaped and on the organizationally relevant consequences of individual emotional experience. We then discuss a number of potential ethical issues that are implicit or explicit in the organizationally sanctioned use of emotion management, incorporating existing literature in management and business ethics that has addressed the moral obligations of organizations in this context, and highlighting areas where there is yet work to be done. We conclude by discussing the implications of our analysis. (shrink)

The use of airbrushed “thin ideal” models in advertising creates major ethical challenges: This practice deceives consumers and can be harmful to their emotional state. To inform consumers they are being deceived and reduce these negative adverse effects, disclaimers can state that the images have been digitally altered and are unrealistic. However, recent research shows that such disclaimers have very limited impact on viewers. This surprising result needs further investigation to understand how women who detect that images have been airbrushed (...) are still harmed by them. Three studies reported in this article address this question. The authors identify a typology, based on a combination of three emotional reactions experienced by women who are exposed to the airbrushed thin ideal. In further analyses, they investigate how detection of airbrushing—whether spontaneous or with the help of a disclaimer—relates to these emotional reactions and women’s attitudes to altered images. Results show that detection of airbrushing does not systematically protect women from either wanting to look like airbrushed thin models or the negative emotions triggered by exposure to thin ideal images, nor does it always generate defensive reactions toward ads using such images. Women who detect that images have been airbrushed may still process these images as realistic. In addition to discussing this irrational process of self-deception, this article suggests policy interventions to prevent it. (shrink)

Recent research suggests that women react to idealized female models in advertising as they would react to real-life sexual rivals. Across four studies, we investigate the negative consequences of this imaginary competition on consumers’ mate-guarding jealousy, indirect aggression, and drive for thinness. A meta-analysis of studies 1–3 shows that women exposed to an idealized model report more mate-guarding jealousy and show increased indirect aggression, but do not report a higher desire for thinness. Study 4 replicates these findings and reveals that (...) the main driver of aggression is the sexually provocative attitude of the model, rather than her thin body size. The ethical implications of these findings for advertising are discussed in light of recent concerns about female bullying, online, and in the workplace. (shrink)

This article provides an overview of the field of business ethics.