Given the pervasive influence of neoclassical economic theory on the field of business, the opposition of the standard economists to the inclusion of moral factors in economic decisions provides an intellectual resistance to the ideas of many business ethicists. Etzioni (1988) offers a theoretical alternative to the neoclassical model, an alternative that includes a moral dimension. This article: (1) highlights the differences between Etzioni''s proposed model and the neoclassical economic paradigm; (2) describes and critically evaluates Etzioni''s proposed theory in view (...) of his objective of synthesizing the neoclassical paradigm with a duty-based morality; and (3) discusses the implications of Etzioni''s proposed paradigm for the field of business ethics. (shrink)

Collectively, institutions own an increasing proportion of outstanding corporate equities. As an emergent force in shaping corporate America, the linkages between institutional ownership and corporate social performance (CSP) require empirical examination. Not only do corporate policy makers need to know those areas where social performance may lure or inhibit capital infusions, lawmakers also need a better understanding of the social forces guiding corporate policy. As anticipated, this study found a positive relationship between the amount of institutional ownership of corporate stock (...) and a company's social responsiveness as measured by the representation of women on its board of directors; however, no statistically significant relationship with social responsibility as measured by charitable giving was found. The exemplar of social issues management — compliance with the Sullivan principles — showed an unexpected, negative relationship with the level of institutional ownership. (shrink)

The paper challenges a minimalist strategy in business ethics that maintains if it's legal, it's moral. In hard cases, judges decide legal issues by appealing to moral ideals. Investigation shows that the bedrock concept is fairness. Often judges define fairness in terms of non-coerciveness or equality of bargaining power. The prudent manager must look beyond the legal department to the ethical notion of fairness. Moreover, if the courts were to consistently appeal to non-coerciveness and equality of bargaining power, some practices (...) now considered morally acceptable would be neither moral nor legal. (shrink)

One of the most controversial issues to face any industry has been the infant formula problem, especially in the less-developed countries (LDCs). Producers of infant formula were confronted with a boycott which evolved from a grass-roots level to one which involved many nations, international and national public agencies, non-profit organizations, scientific research institutions, large church denominations, and every company in the industry. An international boycott was aimed at Nestlé, one of the largest producers of infant formula.The aim of this paper (...) is (1) to examine both sides of the controversy, and (2) to analyze the results of the boycott, specifically the introduction of product codes and changes in industry and company strategies. In both areas ethical implications were involved. (shrink)