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 purpose of this article is to demonstrate, based on an extensive study of the Shell-led Camisea gas project in Peru, how what we believe to be a new approach to dealing with stakeholders, focusing on sense-making and combining industry dynamics and stakeholder empowerment, was developed. The project’s success was measured by the fact that, unlike similar projects around the world, it did not meet with major opposition during its 4-year life span. Those involved in the Camisea project succeeded in (...) creating an open approach to building stakeholder relationships, allowing them to navigate through a number of diverse and challenging socio-political and ecological issues. An integral part of Shell’s approach was acting upon its commitment to high standards of operation and values. The insights from this case clearly indicate that stakeholder management and theorizing can profit from a less controlled, open and sense-making oriented strategizing with stakeholders. (shrink)

The current globalization process excludes a significant part of humanity, but organizations can contribute to a more inclusive form by means of dialogue with other organizations to create economic and social value. This article explores the main leadership traits (visions, roles and virtues) necessary for this dialogue. This exploration consists of a comparison between two theoretical approaches and their illustration with two cases. The theoretical approaches compared are Responsible Leadership, a management theory focused on the contribution of business leaders to (...) create a better society as developed by Maak and Pless; and the Work of Translation, a sociological theory which stresses the need for dialogue between organizations to build an alternative to hegemonic or the so-called neo-liberal globalization as formulated by Santos. Both approaches, in what seems an unlikely pairing at first, are compared in terms of their perspectives, diagnoses of the present situation, the main task to be performed by leaders, styles of this task and leadership outcomes. The illustrative cases include a federation of co-ops in Nicaragua and an employer organization in the Democratic Republic of the Congo. We contend that, although these economic development organizations are not private firms, the leadership characteristics of their respective leaders are highly valuable and inspiring for business leaders and multinational corporations wishing to act responsibly at the local and global levels, thus contributing to this more inclusive form of globalization. (shrink)

The current study is designed to propose and test a model about the ethical reputation of a target manager who must decide whether to engage in earnings management. We employ an experimental approach to examine the potential negative reputation effects within the internal labor market of a firm that occur as a consequence of earnings management. We examine participants’ responses to a hypothetical (target) manager when both the target’s behavior and the corporate incentives were manipulated. Participants assessed how ethical they (...) believed a target manager to be, based on the target’s decision regarding earnings management and the nature of the corporate incentives. Participants also assessed the target’s managerial ability. Participants’ judgments regarding the target’s morality were significantly affected by the target’s behavior, but were not affected by the incentive structure. Ability judgments were significantly and positively related with morality assessments. Further analysis indicates that morality assessments mediate the relationships between the target’s behavior and the participants’ willingness to extend work-related opportunities to the target. Implications of these results for management control systems design and for future research are discussed. (shrink)

The concept of integrity appears in many arguments and theories in business ethics and organizational behavior where it plays multiple roles. It has been shown to have desirable organizational outcomes and is held as important by the academic and practitioner alike. Yet despite its prominence there are a variety of approaches to defining and conceptualizing it and little existent theory to explain its nature. We offer integrative social contracts theory (ISCT) as a framework that can anchor integrity in ethical theory (...) and also encompass aspects of integrity such as wholeness, consistency, and authenticity. In addition we show how ISCT can resolve some of the challenges to definitions of integrity that have been raised in the literature and hence we provide some suggestions for future academic research and suggestions for the practitioner. (shrink)

This article presents an alternative rationale for corporate philanthropy based on managerial values of benevolence and integrity. On the one hand, top managers with benevolence and integrity values are more likely to spread their intrinsic concern for others into the wider society in the form of corporate philanthropy. On the other hand, top managers high in benevolence and integrity are likely to contribute to improved managerial credibility and trusting firm-stakeholder relationships, thereby improving corporate financial performance. Therefore, the article makes the (...) argument that both corporate philanthropy and corporate financial performance can better be interpreted as resulting from managers’ benevolence and integrity values. (shrink)

Trust within a secular or organizational context is much like the concept of faith within a religious framework. The purpose of this article is to identify parallels between trust and faith, particularly from the individual perspective of the person who perceives a duty owed to him or her. Betrayal is often a subjectively derived construct based upon each individual's subjective mediating lens. We analyze the nature of trust and betrayal and offer insights that a wise believer might use in understanding (...) his or her relationship with the divine. We suggest that the parallels between trust and faith involve a willingness to relinquish one's power or control in the expectant hope that our needs will be met. Betrayal, however, is often profoundly misunderstood. (shrink)

Archetypal psychology suggests the possibility of a leadership archetype representing the unconscious preferences of human beings as a species about the appropriate relationships between leaders and followers. Mythological analysis compared God’s leadership in the Abraham myth with modern visionary, ethical and situational leadership to find similarities reflecting continuities in human thinking about leadership over as long as 3600 years. God’s leadership behavior is very modern except that God is generally more relationship oriented. The leadership archetype that emerges is of a (...) leader that develops his/her follower by reliably maintaining a vision, behaving according to firm ethical values even when it weakens the leader’s authority, accepting suffering when the follower is unreliable, and always forgiving even when the follower behaves with hubris in an attempt to overthrow the leader. If God’s leadership principles were mandatory in management, many dysfunctional leaders would be disqualified and many of the negative consequences of poor leadership might be averted. (shrink)