This paper examines the flow of thoughts on ethics in finance both from academic experts and from published contributions that constitute an alternative view of the financial field from an ethical point of view. A Delphi method was used to achieve consensus about the perceptions and opinions academic experts hold about ethics in financial matters and in the research agenda. This approach permits the early detection of emerging lines, narrowing the research line and shortening subject selection time. An active research (...) map of researchers, countries and lines of investigation was drawn up, and recommendations made of areas that could be highlighted or moderated. (shrink)

Research into the proper mission of business falls within the context of theoretical and applied ethics. And ethics is fast becoming a part of required business school curricula. However, while business ethics research occasionally appears in high‐profile venues, it does not yet enjoy a regular place within any top management journal. I offer a partial explanation of this paradox and suggestions for resolving it. I begin by discussing the standard conception of human nature given by neoclassical economics as disseminated in (...) business schools; showing it is a significant obstacle to an accurate conception of ethics and how this limits consideration of sustainability and corporate social responsibility. I then examine the scope of the top management journals, showing how their empirical and descriptive focus leaves little room for ethics, which is an essentially conceptual and prescriptive discipline. Finally, I suggest avenues for research into the ethical mission of business, generally—and sustainability and CSR, in particular—by appeal to the precepts of Harvard Business School’s Master’s in Business Administration ethics oath modeled on the medical and legal professions. (shrink)

In spite of its commercial importance and signs of clear concern in public policy arenas, trade credit has not been subjected to systematic, extended analysis in the business ethics literature, even where suppliers as a stakeholder group have been considered. This paper makes the case for serious consideration of the ethics of trade credit and explores the issues surrounding slow payment of debts. It discusses trade debt as a kind of promise, but—noting that not all promises are good ones—goes on (...) to develop an analysis of the ethics of trade credit grounded in an understanding of its fundamental purpose. Making a distinction between “operating” trade credit and “financial” trade credit, the paper provides an account of the maximum period for which it is appropriate for one company to delay payment to another from which it has purchased goods or services. The concern of commentators and policy makers that companies should not take too long to pay their debts is affirmed, but the understanding of what timely payment means is significantly finessed, with one conclusion being that, if debts have not already been settled according to acceptable standard terms of trade, cash should pass quickly back along the supply chain once the customer in the final product market has paid. The analysis has implications not only for companies that take credit but also for external parties that seek to rate companies or set regulations according to speed of payment—an approach that is shown to be misleadingly simplistic, albeit well intentioned. A corresponding important responsibility for suppliers, not to extend excessive credit, also follows from the analysis developed. Having provided a novel analysis of an important business problem, the paper then discusses some of the related practical issues and makes suggestions for further research. (shrink)

This paper is an essay based on many years of reviewing journal submissions and discussions with business ethics scholars on a range of themes regarding methods. To some extent, it contains condensed thoughts from two experienced scholars in the field, which we hope will be useful, especially to emerging scholars who, to some extent, may still be wrestling with some of the issues raised in the paper. The validity and reliability of research methods in business ethics research is discussed in (...) terms of legitimate methods to employ in the discipline, the epistemic challenges in the discipline, the debate between qualitative and quantitative methods, and some considered comments on ‘researching well’ in this discipline. Within each theme, we attempt to convey our distilled thoughts in the hope that methods employed in future studies will avoid some of the failures we have observed in the past. (shrink)

In a society where the ideology of shareholder value maximization prevails, how do evaluators make appraisal and bonus decisions when corporate social responsibility measures and financial measures in the balanced scorecard point in different directions? To explore this question, we conducted two studies to develop and test a conceptual framework. Participants were asked to evaluate the performance of two managers, using a case we wrote about a commercial bank. We found that evaluators are more willing to drop CSR performance measures (...) than financial measures from the evaluations; perceived CSR relevance is influenced by where evaluators stand in regard to CSR and also by where evaluators believe shareholders stand ; and there is a financial bias in appraisal and bonus decisions when CSR measures are used in the BSC, consistent with SVM ideology. We conclude by discussing the implications of the influence of SVM ideology on the use of CSR measures in terms of business research, practice, and education. (shrink)

The proportion of business ethics literature devoted to accounting and the proportion of academic accounting literature devoted to ethical issues are both small, yet over the past two decades there has been a steady accumulation of research devoted to ethical issues in accounting. Based on a database of more than 500 articles gathered from a wide range of accounting and business ethics academic journals, this paper describes and analyses the characteristics of what has been published in the past 20 years (...) or so. It identifies and explores patterns and trends in publication outlets and the type of research conducted. Furthermore, through a comparison with issues that have been raised in the general business ethics literature, it offers guidance to researchers who intend to take the field of accounting ethics forward using empirical methods. (shrink)

Not for the first time, the banks and other financial institutions have got themselves – and the rest of us – into a mess, this time on an unprecedented financial and geographical scale. It is no surprise that opinions about causes, consequences and cures abound with ethical issues, as well as technical and economic concerns, a focus of attention. It is to be hoped that useful lessons for the future will be learned. In this chapter, however, we step back from (...) a direct engagement with the stated ills of the financial system itself, whether actual or perceived, chronic or acute. Our starting point is that crisis in the financial system not only makes us stop and think; but it might also, particularly under conditions of moral panic, prevent us from thinking well. Our contention is that a further impediment to thinking well about financial crises is the lack of a substantial body of academic knowledge that might be termed ‘financial ethics’ – a corpus of well developed conceptual insights and appropriate empirical evidence. We identify some of the reasons for this situation and proffer some suggestions regarding what might be done to remedy it – including the development of knowledge that is as relevant to everyday practices during periods of normality as it is to providing perspectives on crisis. The chapter is structured as follows: the next section provides a perspective on debate during times of crisis; the middle section seeks to explain why academic financial ethics is not a significant constituent element of debate on the financial crisis post-2007; and the final two main sections explore ways in which an academic agenda for financial ethics might be constructed. In a curious way this chapter echoes some of the themes and especially the conclusion of David Bevan’s chapter in this work although the reasoning to the conclusion that finance ethics is an empty set follows a rather different Badiou-inspired path in chapter 18. (shrink)