This article builds theory at the intersection of ecological sustainability and strategic management literature—specifically, in relation to dynamic capabilities literature. By combining industrial organization economics–based, resource-based, and dynamic capability–based views, it is possible to develop a better understanding of the strategies that businesses may follow, depending on their managers’ assumptions about ecological sustainability. To develop innovative strategies for ecological sustainability, the dynamic capabilities framework needs to be extended. In particular, the sensing–seizing–maintaining competitiveness framework should operate not only within (...) the boundaries of a business ecosystem but in relation to global biophysical ecosystems; in addition, two more dynamic capabilities should be added, namely, remapping and reaping. This framework can explicate core managerial beliefs about ecological sustainability. Finally, this approach offers opportunities for managers and academics to identify, categorize, and exploit business strategies for ecological sustainability. (shrink)

The focus of this article is on multi-organizational cross-sector social partnerships (CSSP), an increasingly common means of addressing complex social and ecological problems that are too extensive to be solved by any one organization. While there is a growing body of literature on CSSP, there is little focus on collaborative strategic management, especially where implementation and outcomes are concerned. This study addresses these gaps by offering a conceptual model of collaborative strategic management, which is then tested (...) through the use of two qualitative empirical cases of collaborative regional sustainable development strategies (CRSDS). The model augments previous collaboration models by highlighting two levels of implementation (the collaboration and the organizational levels) and by considering the different types of outcomes, and the feedback loops. (shrink)

ABSTRACT:This essay attempts to provide a useful research agenda for researchers in both strategic managementandbusiness ethics. We motivate this agenda by suggesting that the two fields started with similar interests, diverged, and are beginning to converge again. We then identify several streams that hold particular promise for developing our understanding of the relationship between strategy and ethics: stakeholder theory, managerial discretion, behavioral strategy, strategy as practice, and environmental sustainability.

ABSTRACT:This essay attempts to provide a useful research agenda for researchers in both strategic managementandbusiness ethics. We motivate this agenda by suggesting that the two fields started with similar interests, diverged, and are beginning to converge again. We then identify several streams that hold particular promise for developing our understanding of the relationship between strategy and ethics: stakeholder theory, managerial discretion, behavioral strategy, strategy as practice, and environmental sustainability.

Individualized customer information is at the heart of on-line commerce. Using increasing amounts of customer-specific data enhances the success and value of one-to-one on-line marketing; but the extensive gathering and use of data specific to individuals also causes alarm over the loss of digital privacy, setting up a confrontation between e-commerce and society. Governments and nations, particularly in Europe, have reacted with a reliance on sweeping laws governing digital privacy protection while other nations such as the U.S. have generally preferred (...) to allow companies and industry associations to regulate themselves. This tenuous balance is under attack from both sides. In this paper, we set up a framework which incorporates the environmental context, ethical perspectives and firm-specific considerations to help firms develop a strategy for handling digital privacy concerns. (shrink)

While ethical and moral issues have been widely considered in the general areas of marketing and sales, similar attention has not been given to the impact of strategic account management (SAM) approaches to handling the relationships between suppliers and very␣large customers. SAM approaches have been widely␣adopted by suppliers as a mechanism for managing␣relationships and partnerships with dominant customers␣– characterized by high levels of buyer–seller inter-dependence and forms of collaborative partnership. Observation suggests that the perceived moral intensity of␣these relationships (...) is commonly low, notwithstanding the underlying principles of benefiting the few (large, strategic customers) at the expense of the many (smaller customers and other stakeholders), and the magnitude of the consequences of concessions made to large customers, even though some such consequences may be unintended. Dilemmas exist also for executives implementing strategic account relationships regarding such issues as information sharing, trust, and hidden incentives for unethical behaviour. We propose the need for greater transparency and senior management questioning of the ethical and moral issues implicit in strategic account management. (shrink)

This paper is the Introduction to the Special Issue comprising a selection of papers submitted to the 19th IESE International Symposium on Ethics, Business and Society. The main topic of the Symposium was “Ethical Challenges in Strategic Management.” The paper presents the rationale and context of the Symposium. We begin with a brief historical overview of the evolution of the relationship between ethics and strategy. We propose four pillars that are at the core of a definition (...) of strategy and elaborate on how ethics can contribute to strategy. We present the six papers that make up this selection within the framework of the four aspects introduced in the previous section. We conclude with some proposals for further research that consider the content of the papers. (shrink)

Fulfilling consumer expectations of corporate social responsibility can bring strategic advantage to firms. However, research on the topic is fragmented across disparate disciplines, and a comprehensive framework to connect CSR supply and demand is missing. As a result, firms often supply CSR that does not attract demand, as signified by pessimism about ethical consumerism in recent years and the inconclusive link between corporate financial and social performance. In this study, we propose a framework of strategic CSR management (...) to define how a company’s supply of CSR could meet consumer demand for ethical products by aligning managerial and consumer perspectives. We then investigate empirically whether such a strategic approach, which integrates potential demand in CSR management, would influence consumer choice of products with CSR components. Our hybrid choice modeling allows the inclusion of psychological biases caused by social desirability and cynicism to increase result validity. The findings support the explanatory power of the framework and reveal that consumers prefer some CSR elements while others adversely affect choices. This study advances the understanding of strategic CSR management and its impact on consumer choice and helps managers include the right mix of CSR characteristics in their products to satisfy ethical consumers. (shrink)

Although business ethics has a long history as a core theme within the realm of strategic management it has not received considerable attention in top strategy journals until recently. In this paper, we assess the state of business ethics research published over a 5-year period (2006–2010) in Strategic Management Journal to ascertain whether there has been an increase in business ethics research published in the top strategy outlet. The results of our content analysis (...) reveal that ethics research in SMJ is indeed on the rise yet this research stream is still underrepresented with only 5.8 % of all articles published over the five-year period having an ethics theme. Moreover, the link between Corporate Social Performance and Financial Performance was identified as the top theme during the review period. (shrink)

This article explores the links between strategic goals, enterprise risk management, and ethics. We offer a typology of managerial attitudes toward strategic goals and rationality and explore the interaction between strategic and ethical decision making. In so doing, we offer a practical framework for managers to approach ethical dilemmas in the highly complex, volatile, and risky economy that we currently find ourselves in.

From a corporate governance perspective, one of the most important jobs of a firm's top management team is to create and maintain a positive moral environment. Business ethics has long been considered a cornerstone in the field of strategic management and a number of scholars have called for more research in this area over the years. In this paper 658 articles that appeared in "Strategic Management Journal" over the 10-year period between 1996 and 2005 (...) are reviewed for business ethics focus and content. The results reveal that while business ethics research in "Strategic Management Journal" is on the rise, the overall focus on this research stream has been limited. The most prominent ethics theme during the review period was environmentalism, accounting for 30% of all ethics articles. Author affiliations, future research directions, and implications are also discussed. (shrink)

We examine the role of religious identity in promoting strategic renewal in privately held founder family firms. Religious identity in these firms refers to their collective sense of being that reflects their founders’ and owner family members’ espoused religious values and beliefs, thereby distinguishing themselves from others in what is central, distinct, and enduring about their organization. We propose that such a religious identity determines family firms’ spiritual capital, which influences strategic renewal activities such as conflict resolution and (...) resource allocation. Specifically, we argue that spiritual capital can be a double-edged sword when family firms pursue strategic renewal. We discuss the implications of our work for future research. (shrink)

We examine the role of religious identity in promoting strategic renewal in privately held founder family firms. Religious identity in these firms refers to their collective sense of being that reflects their founders’ and owner family members’ espoused religious values and beliefs, thereby distinguishing themselves from others in what is central, distinct, and enduring about their organization. We propose that such a religious identity determines family firms’ spiritual capital, which influences strategic renewal activities such as conflict resolution and (...) resource allocation. Specifically, we argue that spiritual capital can be a double-edged sword when family firms pursue strategic renewal. We discuss the implications of our work for future research. (shrink)

Confidence in Australian business was severely shaken by the corporate scandals and collapses of the 1980s. Many commentators called for more emphasis on ethics education. This paper surveys the initiatives of Australian business schools and professional bodies and finds them superficial and ineffective. It then presents a case study in Quality Improvement which highlights the need to take a strategic and integrated approach to the development of core values such as quality, trust, ethics and social responsibility. In (...) exploring the process of cultural change, the paper identifies a number of key leadership roles, responsibilities and competencies which are distinguished from the more traditional management functions. (shrink)

The book examines ethics and employment issues in contemporary Human Resource Management (HRM). Written by an international team of academics from universities in the UK, the US, Australia and New Zealand, it examines the problems and opportunities facing employers and employees. The book subdivides into three sections: Part I assesses the context of HRM; Part II analyses contemporary debates, continuity and change in HRM, and Part III proposes likely developments for the future seeking to identify a more proactive (...) HRM approach towards ethical issues arising in employment. Distinctive features include: -/- -Comprehensive analysis of continuity and change in employment and HRM -In-depth assessment of the ethical contribution and potential of HRM -Timely evaluation of the ethical achievements to-date of HRM in: individualized employment relations, HRM partnerships, HRM and employee performance, and strategic HRM -Detailed recommendations for HR managers and general managers encouraging more ethically aware practice -Guidance on ethical approaches to leadership, knowledge management and collective employment relations -Analysis of alternative futures for HRM as a profession and advice on how to create more rigorous and independent professional practice -A vision of a more innovative, cooperative and ethically sensitive set of HRM practices -Clear proposals for HRM on how to attain more ethical conduct. (shrink)

The purpose of this paper is to analyze the role of values in strategic management. We discuss recent criticisms of the concept of strategy and argue that the concept of value helps reconcile these criticisms with traditional models of strategy. We show that Andrews' model of corporate strategy rightly takes morally significant values to be essential to effective management. We show how the notion of value can be clarified and used in research into various conceptions of corporate (...) morality. (shrink)

From a corporate governance perspective, one of the most important jobs of a firm's top management team is to create and maintain a positive moral environment. Business ethics has long been considered a cornerstone in the field of strategic management and a number of scholars have called for more research in this area over the years. In this paper 658 articles that appeared in "Strategic Management Journal" over the 10-year period between 1996 and 2005 (...) are reviewed for business ethics focus and content. The results reveal that while business ethics research in "Strategic Management Journal" is on the rise, the overall focus on this research stream has been limited. The most prominent ethics theme during the review period was environmentalism, accounting for 30% of all ethics articles. Author affiliations, future research directions, and implications are also discussed. (shrink)

In a series of joint papers, Teppo Felin and Nicolai J. Foss recently launched a microfoundations project in the field of strategic management. Felin and Foss observe that extant explanations in strategic management are predominantly collectivist or macro. Routines and organizational capabilities, which are supposed to be properties of firms, loom large in the field of strategic management. Routines figure as explanantia in explanations of firm behavior and firm performance, for example. Felin and Foss (...) plead for a replacement of such macro-explanations by micro-explanations. Such a replacement is needed, Felin and Foss argue, because macro-explanations are necessarily incomplete: they miss out on crucial links in the causal chain that connect macro phenomena with each other. I argue that this argument is flawed. It is based on a doubtful if not outright incorrect understanding and use of Coleman’s diagram. In a sense to be explained below, only if Coleman’s diagram is squared it can accurately account for the relations between individual action and interaction, routines and firm behavior and firm performance. Once Coleman’s diagram is squared, one can see why and how macro-explanations need not miss out on any link in the causal chains that connect macro phenomena. Micro-analyses are still needed, not to highlight and specify causal links that macro-explanations miss out on, but to check whether the many properties that are ascribed to routines in macro-explanations of firm behavior are warranted. (shrink)

Strategic managers today are faced with five critical judgment calls when formulating strategies for their companies: (1) Approaching strategy as an art or as a science, (2) publicizing the strategy or maintaining its secrecy, (3) seeking strategic consistency over the long term or maintaining flexibility, (4) embracing strategic risk or avoiding it, and (5) adopting a top-down or a bottom-up approach to strategic planning. This paper compares American and Mexican managers along these five areas. Findings suggest (...) that conventional wisdom on differences between American and Mexican managers in strategy formulation may not be true. Future research directions are also provided. (shrink)

This paper expands the focus of ethical analysis to look at the basic approaches to strategy used by business firms. Using a set of criteria historically used to judge ethical issues, three strategy paradigms are evaluated in terms of their likely effects on society as well as the firm. From this analysis, recommendations are offered regarding the ethical pursuit of profit and suggestions made for future research into the relationship between strategy and ethics.

This book presents an academic introduction, presentation and argument of stakeholder theory as as a model for strategic management of business firms and corporations and public organizations and institutions. The concept of stakeholder is generally used for the parties that affect or are affected by the activities of private or public organizations. Stakeholders are those interested parties who, other than shareholders, have a connection with the activities of a corporation, a firm or an organization. The reference to the (...) stakeholders refers to a conception of a business firm as founded on negotiated governance, where the maximization of the value for the shareholder is not the ultimate criterion. In this model the stakes and the interests that are not those of shareholders or investors, and which go beyond capital and include civil society, are important. This book presents this theory and makes it known as an ethical model for strategic management that is both concrete and useful for developing democracy in the firm, and making it possible to present elements of a social contract in the context of global capitalism. (shrink)

This paper contributes to a growing body of literature analyzing the social responsibilities of SMEs (Sarbutts, 2003, Journal of Communication Management 7(4), 340-347; Castka et al., 2004, Corporate Social Responsibility and Environmental Management 11, 140-149; Enderle, 2004, Business Ethics: A European Review 14(1), 51-63; Fuller and Tian, 2006, Journal of Business Ethics 67, 287-304; Jenkins, 2006, Journal of Business Ethics 67, 241-256; Lepoutre and Heene, 2006, Journal of Business Ethics 67, 257-273; Roberts, 2003, Journal (...) of Business Ethics 44(2), 159-170; Williamson et al., 2006, Journal of Business Ethics 67, 317-330) by designing a conceptual framework based on the Strategic Management Theory, which links social issues to the creation of sustained competitive advantages for SMEs. Firstly, the paper reviews literature on corporate social responsibility (CSR) and especially on the creation of social capital for SMEs. An exploration of Strategic Management Theory follows, focusing on the Positioning and Competence Based Schools, with the objective to find an answer to the question: how do social and environmental issues fit in the logic of creation of competitive advantage and what role do they play during strategic planning? The contributions of Hart (natural resourced based view) and Porter and Kramer (development of strategic intent in social responsible actions) are then related to the framework of possible growth paths of SMEs (Hong and Jeong, 2006, Journal of Enterprise Information Management 19(3), 292-302) in order to answer this question. Strategies that could trigger or lever these growth paths are then discussed. Following the recommendation Thompson and Smith (1991, Journal of Small Business Management 29(1), 30-44) gave to focus on the "study of CSR behaviors instead of perceptions," a medium-sized Austrian company in the food producing industry has been identified for an exploratory case study analysis to test the applicability of this theoretical framework for the description of the actual responsible business behavior (RBB) of an SME. This company is typical of one of the 250.000 SMEs which account for 99.6% of the Austrian economy. Based on the findings and the discussion, this paper presents a strategic planning tool for SMEs aiming to embed RBB into the corporate strategy. (shrink)

Abell, Felin and Foss argue that "macro-explanations" in strategic management, explanations in which organizational routines figure prominently and in which both the explanandum and explanans are at the macro-level, are necessarily incomplete. They take a diagram (which has the form of a trapezoid) from Coleman, Foundations of Social Theory, The Belknap Press of Harvard University Press, Cambridge (Mass.)/London, (1990) to task to show that causal chains connecting two macro-phenomena always involve "macro-to-micro" and "micro-tomacro" links, links that macro-explanations allegedly (...) fail to recognize. Their plea for micro-foundations in strategic management is meant to shed light on these "missing links". The paper argues that while there are good reasons for providing micro-foundations, Abell, Felin and Foss's causal incompleteness argument is not one of them. Their argument does not sufficiently distinguish between causal and constitutive relations. Once these relations are carefully distinguished, it follows that Coleman's diagram has to be squared. This in turn allows us to see that macroexplanations need not be incomplete. (shrink)

The research about strategic human resource management (SHRM) has suggested that human resource professionals (HRPs) have the opportunity to play a greater role in contributing to organizational success if they are effective in developing systems and policies aligned with the organization's values, goals, and mission. We suggest that HRPs need to raise the standard of their performance and that the competitive demands of the modern economic environment create implicit ethical duties that HRPs owe to their organizations. We define (...) ethical stewardship as a model of governance that honors obligations due to the many stakeholders and that maximizes long-term organizational wealth creation. We propose that if HRPs adopt an ethical stewardship framework and the qualities of transformative leaders, they will be more aware of their ethical duties to their organizations and more effective in helping their organizations to create increased wealth, achieve desired organizational outcomes, and establish work environments that are more satisfying to employees. (shrink)

A significant voice in encouraging the theoretical development and practical implementation of humanistic management is Pope Benedict XVI. In his Encyclical Letter Caritas in Veritate, published in 2009, he proposed a new humanistic synthesis to realign the economy with its social purpose. The aim of this book is to interpret, comment, and develop aspects of this Encyclical Letter which are significant for economic and business activity and contribute to humanistic management. The authors, specialists in their different fields, provide (...) an interdisciplinary dialogue between their repsective areas and the Encyclical. The first, theoretical, part of the book focuses on the relationship between ethics and economics to advance toward a holistic view of business and managerial activity. The second part is oriented more toward the practical and managerial aspects, and discusses how the Encyclical can contribute to more humanistic ways of management. (shrink)

While scholarly research on the relationship between female board representation and strategic decision-making has gained momentum, employee policy outcomes have remained relatively understudied. Integrating theory from the ethics of care perspective with research on the glass ceiling and workplace voice, we seek to understand the circumstances under which female directors influence policy changes for firm employees. We argue that firms with increasing female board representation are more likely to enact human capital development policies benefiting firm employees. However, this (...) positive relationship will ultimately diminish as boards accrue an increasing number of female directors. We further predict that the presence of a female leader at the firm (serving in the role of either the CEO or the board chair) will moderate this diminishing effect. Using a sample of S&P 1500 firms, we find support for our hypotheses. The findings from this study provide evidence that while female board representation is positively related to human capital development policies, this effect is nuanced and impacted by the presence of female leadership at the top of organizations. Our paper extends existing research on the nature of female directors’ influence on ethical decisions, emphasizing the impact of these directors on employees. (shrink)

Much has been written about stakeholder analysis as a process by which to introduce ethical values into management decision-making. This paper takes a critical look at the assumptions behind this idea, in an effort to understand better the meaning of ethical management decisions.A distinction is made between stakeholder analysis and stakeholder synthesis. The two most natural kinds of stakeholder synthesis are then defined and discussed: strategic and multi-fiduciary. Paradoxically, the former appears to yield business without ethics (...) and the latter appears to yield ethics without business. The paper concludes by suggesting that a third approach to stakeholder thinking needs to be developed, one that avoids the paradox just mentioned and that clarifies for managers (and directors) the legitimate role of ethical considerations in decision-making. (shrink)

Risk, ethics and compliance requirements are a daily reality for most organisations. Regulators and stakeholders (including employees) demand more of most organisations, from equality, to anti-corruption, to supply chain ethics. Start-ups stutter and unicorns crash to earth when they get risk wrong. What should be done? Where should you start? How can risk management enable, not hinder, the organization's strategic goals? This book answers these questions -- rightsizing risk for every organization -- using frontline-tested tools, tips, (...) and techniques. Whether you're a purpose-driven changemaker or just struggling to comply with a seemingly unending stream of regulation, we will make risk work for you. (shrink)

This article is currently available as a free download on ingentaconnect.

In lieu of an abstract, here is a brief excerpt of the content:Organizational Ethics and Health Care: Expanding Bioethics to the Institutional Arena **Laura Jane Bishop (bio), M. Nichelle Cherry (bio), and Martina Darragh* (bio)In 1995, the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) expanded its patient rights standards to include requirements for assuring that hospital business practices would be ethical. Renamed “Patient Rights and Organization Ethics,” these standards are based on the realization that a hospital’s obligation (...) to its patients is derived from two relationships: the patient-provider relationship governed by “clinical ethics,” and the customer-supplier relationship governed by “business ethics.” “[This] boundary between ‘clinical’ ethics and ‘business’ ethics is not clear and in many cases is nonexistent. While marketing and admission practices are seen as issues related to ‘business’ ethics, they can lead to unneeded admissions or demand for unneeded services, both of which can unnecessarily expose the patient to the risk of side effects or complications. Likewise, underutilization of needed services is likely to lead to less than optimal health outcomes” (I. Schyve 1996, p. 17). “These new standards arose out of well-publicized concerns about abuses in which patients were admitted to hospitals unnecessarily and were discharged or transferred only after their insurance expired” (I. Schyve 1996, pp. 15–16).These abuses also sparked eloquent protests against threats to patient well-being and to the nature of the patient-provider relationship in the bioethics literature. The fiduciary responsibility of the provider to inform and to protect the patient was fragmented by insurer business practices such as gag clauses and economic credentialing of providers (VII. Scope Note 31, 1996). The background role that the institution plays, though poorly articulated historically, has been brought sharply into focus by the explosive growth of the managed practice of medicine. The context of medical ethics is no longer limited to the resolution of individual cases, but instead encompasses the adoption of institutional structures to protect and promote patient welfare (IV. Emanuel 1995, p. 335). In this new configuration, the institution and the providers are co-fiduciaries for populations [End Page 189] of patients, and the medicine that is practiced is “appropriately economically disciplined.” The expression “My patient always comes first” is no longer “... intellectually serious or morally responsible.” But, “... to be sure, both conceptually and in practice, being an economically disciplined fiduciary professional or institution is ethically unstable.... The task is to identify the boundaries outside of which institutional policy and behavior will not count as an ethically defensible form of being... [a] fiduciary.” (IV. McCullough 1997, pp. 143–44). This process of delimiting and enforcing boundaries requires the development of “... a language for talking about the ethical values of the organization. If such a language does not exist, discussions about ethics become cumbersome and unlikely to occur” (IV. Cleveland Clinic Foundation 1998, p. 2).As with bioethics generally, the literature addressing organizational ethics is multidisciplinary. JCAHO’s compliance guide for its revised standards, Ethical Issues and Patient Rights, draws on a wealth of ideas from both clinical ethics and business ethics. This is often an awkward alliance. “Because the study of organizational ethics is in its infancy compared to other areas of healthcare ethics, discussions about it often seem like hot air with no palpable payoff” (I. Boyle 1998, p. 2). The fact that “... there is an ancient history that reflects widespread doubt about the moral probity of business” (II. Frederick 1995, p. 209) does not help. To begin, “Aristotle had rude things to say about business” (II. Jackson 1998, p. 401). A brief review of introductions to several of the business ethics textbooks cited in this bibliography reveals that a rebuttal of “business ethics as an oxymoron” is the standard opening paragraph. This stigma is unfounded, and “increased stability” has characterized the state of business ethics literature during the 1990s (II. Beauchamp and Bowie 1997, p. ix). Significant attention has been given to elaborating two often overlapping theories—stakeholder and social contractarian.Originating in the 1960s as a pun on “stockholder,” proponents of stakeholder theory claim that a corporation’s fiduciary responsibility extends beyond increasing its profitability to protecting the rights of individuals or groups affected by its actions. Popular as a strategic planning tool in the... (shrink)

Humility is increasingly recognized as an essential attribute for individuals at top management levels to build successful organizations. However, research on CEO humility has focused on how humble chief executive officers (CEOs) shape collective perceptions through their interactions and behaviors with other organizational members while overlooking CEOs’ critical role in making strategic decisions. We address this unexplored aspect of CEO humility by proposing that humble CEOs influence decision-making decentralization at the top management team (TMT) and subsequently promote (...) an organizational ethical culture. Using a sample of CEOs and TMT members from 120 small- and medium-sized enterprises, we find strong support for our hypotheses. We discuss important implications for research on CEO humility and strategic leadership. (shrink)

Business and Society: Ethics and Stakeholder Management, 5th edition employs a stakeholder management framework, emphasizing business' social and ethical responsibilities to both external and internal stakeholder groups. A twin theme of business ethics to illustrate how ethical or moral considerations are included the public issues facing organizations and the decision making process of managers. The text is written from a managerial perspective that along with the twin themes of stakeholders and ethics, shows how to identify (...) stakeholders, incorporate their concerns into the organization's strategy and operations, and also integrate ethical wisdom into their decision making process. In addition, 35 case histories are included to help connect theory and practice through timely and interesting examples. (shrink)

An organizing framework is set out for the diverse literature on business ethics in relation to strategic management. It consists of sets of bi-polar components, spanning themes and topical themes, with a derived typology of contributions. Then, in the spirit of classical pragmatism, the organizing framework is re-cast as an integrative conceptual model of the strategy–ethics relationship. The approach recognizes that both pragmatism and dialectics can underpin progress towards integration, encompassing both normative and empirical aspects.

This article investigates conceptual and strategic relationships between corporate identity, organizational identity and ethics, utilizing the Benetton Corporation as an illustrative case study. Although much attention has been given to visual aspects of Benetton's renowned ethical brand building efforts, few studies have looked at how Benetton's employees, retail environments, and trade events express ethical aspects of their well-known corporate identity. Operational identity emerged as a useful complement to models of corporate identity. A multi-method case study, including interviews at (...) retail outlets and trade events, sheds light on several important yet under-studied components of corporate identity, including stakeholders such as retail managers and contract employees. Analysis of Benetton's operations revealed disconnection and inconsistency, as well as a failure to communicate ethical values and socially responsible attributes throughout organizational identity. We demonstrate the way in which organizations may fail to capitalize on positive aspects of their organizational identity by neglecting their operational identity. (shrink)

This article focusses on corporate attitudes to stakeholder environmental pressures in Argentina. It uses a cross section survey of 505 CEOs of Argentinean firms to gather information on environmental attitudes and a stakeholder theory framework to design and interpret the statistical analyses. It is underpinned by theoretical and empirical findings in the literature on stakeholder management, targeting in particular studies that deal with corporate social responsibility (CSR) in Latin America. Its general aim is to gain a deeper empirical understanding (...) of the coherence between managers' perceptions of stakeholder pressures and the importance they are given in corporate CSR strategies through an empirical investigation of environmental management (EM) decisions. In doing so, it uncovers general differences in the way firms perceive and treat groups of stakeholders. It also detects variations across firms, observing that some are typically proactive in their response to stakeholder pressures whilst others are less responsive. Profiling the various stakeholder networks and the corporate response strategies in this way encourages the development of stakeholder-focussed policies and corporate strategies that emphasise communications, awareness and a clear sense of direction. It concludes that CSR appears to be more effective in the protection of the environment than previously reported. Although this study focusses on EM in Argentina, the findings are more generally applicable. (shrink)

In the wake of the current financial crises triggered by risky mortgage-backed securities, the question of ethics and risk-taking is once again at the front and center for both practitioners and academics. Although risk-taking is considered an integral part of strategic decision-making, sometimes firms could be propelled to take risks driven by reasons other than calculated strategic choices. The authors argue that a firm's risk-taking propensity is impacted by its ethical climate (egoistic or benevolent) and its emphasis (...) on output control to manage its marketing function. The firm's long-term orientation is argued to moderate the control–risk propensity relationship. The authors also extend research on risk and performance and argue that the association of risk-taking propensity and firm performance is contingent on the ownership (publicly traded versus privately held) structure of the firm. Based on survey data from a sample of manufacturing industries in the United States, the results show significant impact of ethical climate and marketing output control on a firm's risk-taking propensity; also risk-taking propensity shows a stronger association with firm performance in privately held firms than in publicly traded firms. (shrink)

The research about strategic human resource management (SHRM) has suggested that human resource professionals (HRPs) have the opportunity to play a greater role in contributing to organizational success if they are effective in developing systems and policies aligned with the organization’s values, goals, and mission. We suggest that HRPs need to raise the standard of their performance and that the competitive demands of the modern economic environment create implicit ethical duties that HRPs owe to their organizations. We define (...) ethical stewardship as a model of governance that honors obligations due to the many stakeholders and that maximizes long-term organizational wealth creation. We propose that if HRPs adopt an ethical stewardship framework and the qualities of transformative leaders, they will be more aware of their ethical duties to their organizations and more effective in helping their organizations to create increased wealth, achieve desired organizational outcomes, and establish work environments that are more satisfying to employees. (shrink)

This study contributes to the micro-credit literature by addressing the lack of philosophical dialogue concerning the issue of trust between micro-credit NGOs and rural poor women. The study demonstrates that one of the root causes of NGOs’ contested roles in Bangladesh is the norm that they use (i.e., trust) to rationalize their micro-credit activities. I argue that Bangladeshi micro-credit NGOs’ trust in poor village women is not genuine because they resort to group responsibility sustained through aggressive surveillance. I maintain so (...) by drawing on a trust-based theoretical framework that uses various philosophical insights. Drawing on the same conceptual framework, I also contend, somewhat softening the previous claim, that if micro-credit trust is trust at all, it is at most strategic, not generalized. For being strategic, it has many undermining effects on local social solidarity norms, rendering Bangladeshi micro-credit NGOs and strategic trust an odd couple with no moral compass. To bring forth the moral impetus in micro-credit activities, I lay out some recommendations intended for organizations, managers, and policymakers, consistent with normative corporate social responsibility initiatives. However, further studies can be initiated based on this paper, suggesting its importance for future research. (shrink)