Many business ethicists assume that if a type of conduct is illegal, then it is also unethical. This article scrutinizes that assumption, using the rideshare company Uber’s illegal operation in the city of Philadelphia as a case study. I argue that Uber’s unlawful conduct was permissible. I also argue that this position is not an extreme one: it is consistent with a variety of theoretical commitments in the analytic philosophical tradition regarding political obligation. I conclude by showing why business ethicists (...) would have a better rejoinder to the “dominant view” of business ethics associated with Milton Friedman if they dispensed with the assumption that illegal implies unethical. (shrink)

This paper documents that business ethics has positive impacts upon the development of intellectual capital. Knowledge has become the most important asset of modern businesses, and this study argues that business ethics is associated with the development of intangible knowledge resources—intellectual capital. Businesses with ethical values at the core reinforce ethical conducts and successfully build trust with their various stakeholders, leading to the formation of an ethical and trustworthy corporate culture and a positive corporate environment. Thus, in this reasoning, an (...) ethical approach to business can encourage open communication, problems solving, knowledge sharing and creativity among employees to increase organisational capital; enhance interactions and relationships with suppliers, customers and other stakeholders to increase social capital; attract and retain good talent to increase human capital. Questionnaire survey is adopted as the research method with businesses in the electronic and information technology industries in Taiwan as sample. The results suggest that business ethics is associated with increased intellectual capital. Thus, this study demonstrates that the development of intellectual capital is in line with strengthened ethics. It contributes to the literature through combining research on business ethics with intellectual capital theories and extends the extant intellectual capital literature. (shrink)

The employee owned company (EOC) might be the ideal blend of capitalism and communitarianism that vitalizes the global economy. EOCs – based on the concepts of employee participation and control – have sprung up in the United Kingdom, some parts of the European Union, the United States, Japan, and the former Eastern Bloc countries. Research has shown that they are able to compete effectively with more traditional companies. However, in addition to the pressures of business competition, EOCs face two other (...) key problems as they strive to survive: (1) degeneration and (2) human nature and the abuse of power. After introducing the idea of the EOC and describing briefly these two key problems, this article presents seven recommendations for sustaining employee owned companies. These recommendations – grounded in sound organizational theory and the writings of experts in the field of employee ownership – are offered as hypotheses to be examined empirically by future researchers. (shrink)

A variety of stakeholders have long been interested in the factors that are related to firm valuation. This article investigates why companies with more comprehensive corporate governance (CG) have a value premium over companies with less comprehensive CG. We posit and find that the cost of equity capital (COC) decreases with the strength of CG, suggesting that the value premium stems from the lower COC for more comprehensive CG. We also find that the COC is lower for companies with strong (...) commitment to business ethics (BE) than for those with weak commitment to BE and that the beneficial effect of CG on the COC is more pronounced for companies with weak commitment to BE than for those with strong commitment to BE. Companies with more comprehensive CG tend to exhibit strong commitment to BE, but the beneficial effect of corporate ethical commitment is not completely subsumed by CG. Our results suggest that companies could lower their cost of equity capital and increase firm value by adopting more comprehensive CG practices and committing to higher standards of BE. (shrink)

This article introduces a theoretical framework that combines institutional and stakeholder theories to explain how firms choose their corporate social responsibility (CSR) strategy. Organizational researchers have identified several distinct CSR strategies (e.g., obstructionist, defensive, accommodative, and proactive), but did not explain the sources of divergence. This article argues that the divergence comes from the variability in the configuration of external influences that consists of institutional and stakeholder pressures. While institutions affect firms’ social behavior by shaping the macro-level incentive structure and (...) sources of legitimacy (distal mechanisms), firms’ stakeholders can amplify or buffer the institutional forces by acting as mediators (proximate mechanisms). The two dimensions are interdependent in that stakeholders draw legitimacy and power from institutions, and institutions are often actualized through stakeholder mechanisms. Together, they form a particular configuration of external influences that shapes how focal firms construct their CSR strategy. (shrink)

This study viewed students majoring in public relations as prospective public relations practitioners and explored their perceptions about corporate social responsibility (CSR) as their job attraction condition. The results showed that the students perceived CSR to be an important ethical fit condition of a company. One of the significant findings is that CSR can be an effective reputation management strategy for prospective employees, particularly when a company’s business is suffering. In examining the effect of CSR efforts on attitudinal and behavioral (...) outcomes, person–organization (P–O) fit appeared to serve as a mediator between CSR performances and organizational attractiveness. (shrink)

This research was undertaken to explore audience members learning ethics from two national museum exhibitions: The Return of Sherlock Holmes (RSH) and Human Body Exploration (HBE) in Taiwan. Based on literature review of ethics for museums, there are four dimensions related to exhibition ethics: environment, marketing, education, and services. Therefore, the purpose of this research was to examine the relationships within the dimensions of environment, marketing, education, and services of exhibition ethics and to understand the differences in exhibition ethics between (...) RSH and HBE. The total number of valid questionnaires was 191 for RSH and 152 for HBE. The research method analysis of variance was applied to examine whether there were significant differences between individual's basic data and four different dimensions of exhibition ethics in museums. As survey data revealed, exhibition ethics had significant relationships with four dimensions (serviceability, education, environment, and marketing) and significant differences to the demographic variable, such as age. We suggest that exhibition agents should emphasize exhibition contents more than relative commodities, thereby possibly attracting audiences to visit the museum exhibitions. In addition, the exhibitions that were related to sensible issues should be divided into different levels regulated in terms of audience age and the degree to which parents, teachers, or narrators at the museum could negatively influence a younger visitor's perception of an exhibition and thereby museums. Finally, during busy periods, the museums should control visitor numbers to maintain visiting quality. Therefore, the museums should be able to create added value to attract more audience members to visit the exhibition. (shrink)

A variety of stakeholders including investors, corporate managers, customers, suppliers, employees, researchers, and government policy makers have long been interested in the relationship between the financial performance of a corporation and its commitment to business ethics. As a subject of research, the relations between business ethics and corporate valuation has yet to be thoroughly quantified and investigated. This article is an effort to amend this inadequacy by demonstrating a statistically significant association between ethical commitment and corporate valuation measures. Consistent with (...) anecdotal evidence, we have found a significant association between the ethical commitment of Korean companies and their valuation on the Korean stock market. However, the result reveals that the association between ethical commitment and financial performance is not significantly supported. (shrink)

Although the political and consumer consciousness has turned increasingly green, many firms continue to resist the adoption of environment-friendly technological innovations—even in the face of higher costs, negative health effects, and stricter government oversight. This article examines how business owners weigh the trade-offs associated with environment-friendly innovations by examining the role of prosocial motivation in their decision-making process. We use primary data to overcome a common restriction in studying environmental innovations—the scarcity of relevant data—to analyze how business owners’ expectations, perceptions, (...) and motivations affect innovation in organizational processes and, consequently, the level of environmental friendliness of their products or services. We found that prosocial motivation had a significant negative impact on innovation adoption and that it is expressed differently under high and low levels of customer compatibility—possibly because business owners have a larger number of competing social objectives and priorities. Our results further showed that the innovation’s ability to satisfy downstream customer demands has the greatest impact on environment-friendly innovation adoption decisions by business owners. This study enhances our understanding of how business owners make innovation decisions based on competing business, environmental and social objectives and provides a foundation for future research in this area. (shrink)

Banks have a central role and importance in all commerce and hence in all societies. This thesis investigates the ethical basis of banking practice with the aim of developing an account of the virtues appropriate to bankers and banking. One central issue concerns a conflict between the interests of banks and their customers, and how this conflict plays out in relation to the lending policies and fee structure of banks. Such lending policies can have a significant effect on banks, their (...) customers and a range of stakeholders. This research project investigated empirical evidence through qualitative interviews with senior bankers in two locations, Australia and Hong Kong, to elicit their thoughts on banking areas that involve customer interaction, namely, deposit-taking, credit cards, home mortgage loans, corporate finance, and foreign exchange. The institutions selected hold a substantial segment of banking business in their respective countries and are thus representative of bankers’ perspectives. The dissertation also entailed a case study of the causes and consequences of the American sub-prime crisis that was precipitated by the financial sector. The interviews revealed an assertion of good ethical conduct based on adherence to peer-determined codes of conduct and compliance with regulations. There was also a common predisposition to claims of corporate social responsibility and reputation preservation but these have tended to mask the powerful underlying sales thrust. A key finding of the study points to a lapse in ethical values in banks due to excessive reliance on self-interest. Although self-interest is not in itself wrong, there has been a lack of moderation vis-à-vis the interests of less powerful customers. A related finding is a prevailing resistance to regulation that is necessary to curtail selfish and irresponsible behaviour by banks. The interview subjects prefer industry self-regulation to government supervision. However, the banks in Australia and Hong Kong, which have been subjected to tighter regulation, have survived the global financial crisis better than their American counterparts despite complaints about the severity of their regulatory climate. There is a strong case to ascribe ethical failure to American practices that triggered the sub-prime calamities, which have devastated homeowners and the global economy. American banks and regulators both operated on the erroneous supposition that the quest after extreme profits would be restrained by free market forces. The conclusions allude to virtues that are necessary for banks to espouse moral conduct. These virtues can be embedded through leadership and cultural change. (shrink)