This article delves into a potential mindset that may be responsible for the recent financial meltdown. Research relating to this mindset from different perspectives is reviewed. The findings from this literature review are used to create a conceptual framework for the empirical, ethical, and corporate social responsibility study of financial professionals. Data were collected from a survey of the professional membership of a large national association of financial professionals. This article reports the results of the analysis of data relative (...) to the relationships among the four constructs—financial professionals' perceived organizational value clusters, ethics, corporate social responsibility, and corporate performance. The findings indicate that organizational core values significantly affect corporate ethics, social responsibility, and financial performance. We propose that organizations in the financial industry can move toward being more ethical and socially responsible by adopting organic core values (e.g., democratic, open, trusting, enterprising, creative, stimulating) and moving away from mechanistic values (e.g., structured, regulated, procedural, authoritarian, closed, callous). We also found the adaptation of organic core values does not require the organization to suffer a loss in financial performance. (shrink)

This study is an extension of our recent ethics research in direct marketing and information technology. In this study, we investigated the relationships among core organizational values, organizational ethics, corporate social responsibility, and organizational performance outcome. Our analysis of online survey responses from a sample of IT professionals in the United States indicated that managers from organizations with organic core values reported a higher level of social responsibility relative to managers in organizations with mechanistic values; that managers (...) in both mechanistic and organic organizations which were perceived as more socially responsible were also perceived as more ethical; and that perceived ethical attitudes and social responsibility were significantly associated with organizational performance outcome measures. Our article discusses research premises, conceptual framework, hypotheses, research methodology, data analysis, recommendations for further research, and conclusions. (shrink)

In this paper we aim to show that based on an effective stakeholder management corporations are able to build and maintain three important licences tosuccessfully fulfil their fundamental value creation task, namely the licence to operate, the licence to compete and the licence to innovate. The corporation is regarded as an institution engaged in mobilizing resources for productive uses in order to create wealth with and for its stakeholders. Our concept of the three licences is based on the widely (...) discussed (e.g. Bracken, 2003; Buono, 2003; Caldwell, 2004; Jones, Wicks, & Freeman, 2002; Lamont, 2004; Walsh, 2005) “Stakeholder View” framework by Post, et al. (2002) which concerns the firm’s interactions with its stakeholders. Our concept of the three licences is supported by the results of our qualitative case research in the financial services and the telecommunications industry. (shrink)

Understanding the individual-level factors associated with sustainable behaviour in the workplace is important to advance corporate ethics and sustainability efforts. In two studies, we simultaneously assess the role of core values and personality traits in relation to a broad set of sustainability actions, both beneficial and harmful. Results from a student sample and then a national sample confirm that values and personality are distinct constructs that incrementally and differentially predict economic, social, and environmental outcomes. We successfully replicate previous (...) findings pertaining to values and find that, controlling for values, the personality dimension of Honesty–Humility is the strongest negative predictor of harmful actions. Our analyses highlight the unique characteristics of values and personality and their distinct implications for ethical and sustainable management practice. By assessing values and personality together, we also contribute to more general efforts within psychology to develop an integrative view of the person. (shrink)

We examine how corporate bribery is impacted by cultural distance between multinational enterprises home and host countries, and organizational distance to core values between MNE entry modes and MNE headquarters. Tension between external and internal legitimacy helps to explain why cultural and organizational distances will affect MNE bribery. The empirical analysis used data from cross-border transactions by MNEs that were sanctioned by US regulatory officials between 1978 and 2011. We find statistical support for all hypotheses capturing main and (...) moderating effects and suggest that MNEs may be seriously risking their legitimacies from transactions in corruption-prone host countries. (shrink)

What is the nature of the decision-related personal values of corporate management? Managers' attitudes and behaviors are built upon their personal value systems (PVS). Knowledge about the structure of management's PVS assists in understanding the attributes of corporate decision making. Utilizing a survey instrument developed and used by England (1967, 1975), this article updates this research into corporate managers' personal value systems. England's PVS consists of sixty-six pre-tested values clustered into five groups. As one could (...) expect with personal values, statistical tests reveal that even with dramatic changes in the business environment the overall personal values structure has not changed over the intervening three decades. The results also reveal that corporate managers retain their pragmatic value orientation as discussed by England. (shrink)

This article explores the nature of corporate social responsibility (CSR) and corporate reputation using qualitative research approach. Specifically, the relationship between CSR and corporate reputation is examined from the viewpoint of value theory. This paper brings up for discussion the various value priorities lying in the background of CSR actions. The aim is to form categories of value priorities around CSR and reputation, based on qualitative research approach. The main concepts in this paper – (...) CSR, reputation and value – are also defined. This paper further discusses the theory of value structure and content, which identifies certain principal values among different cultures. The data consist of eight interviews with employees of a newspaper company. The results suggest that value priorities play an influential role in CSR actions, influencing to the essence of certain reputation stories in the corporate context. (shrink)

How can one establish if a corporate code of ethics is ethical in terms of its content? One important first step might be the establishment of core universal moral values by which corporate codes of ethics can be ethically constructed and evaluated. Following a review of normative research on corporate codes of ethics, a set of universal moral values is generated by considering three sources: (1) corporate codes of ethics; (2) global codes of ethics; and (...) (3) the business ethics literature. Based on the convergence of the three sources of standards, six universal moral values for corporate codes of ethics are proposed including: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship. Relying on the proposed set of universal moral values, implications are discussed as to what the content of corporate codes of ethics should consist of. The paper concludes with its limitations. (shrink)

The objective of this paper is to examine the relationship between business model innovation, corporate sustainability, and the underlying organisational values. Moreover, the paper examines how the three dimensions correlate with corporate financial performance. It is concluded that companies with innovative business models are more likely to address corporate sustainability and that business model innovation and corporate sustainability alike are typically found in organisations rooted in values of flexibility and discretion. Business model innovation and corporate (...) sustainability thus seem to have their origin in the fundamental principles guiding the organisation. In addition, the study also finds a positive relationship between the core organisational values and financial performance. The analysis of the paper is based on survey responses from 492 managers within the Swedish fashion industry. (shrink)

The burgeoning literature on global value chains has recast our understanding of how industrial clusters are shaped by their ties to the international economy, but within this context, the role played by corporate social responsibility continues to evolve. New research in the past decade allows us to better understand how CSR is linked to industrial clusters and GVCs. With geographic production and trade patterns in many industries becoming concentrated in the global South, lead firms in GVCs (...) have been under growing pressure to link economic and social upgrading in more integrated forms of CSR. This is leading to a confluence of “private governance”, “social governance”, and “public governance”. This new form of “synergistic governance” is illustrated with evidence from recent studies of GVCs and industrial clusters, as well as advances in theorizing about new patterns of governance in GVCs and clusters. (shrink)

This article gives a practice-based overview of the implementation aspects of Corporate Responsibility. After discussing the success factors for implementing Corporate Responsibility, the article describes a model for implementing Corporate Responsibility. Special attention is given to the success factors in the subsequent phases of implementation (sensitivity to the organizational environment, awareness of core values and clear leadership), to ensure that the most optimal results attainable for the organization can be reached. The implementation-model is clarified by looking (...) at experiences in implementing Corporate Responsibility at Chiquita. (shrink)

This article gives a practice-based overview of the implementation aspects of Corporate Responsibility. After discussing the success factors for implementing Corporate Responsibility, the article describes a model for implementing Corporate Responsibility. Special attention is given to the success factors in the subsequent phases of implementation (sensitivity to the organizational environment, awareness of core values and clear leadership), to ensure that the most optimal results attainable for the organization can be reached. The implementation-model is clarified by looking (...) at experiences in implementing Corporate Responsibility at Chiquita. (shrink)

The Corporate Social Performance (CSP) model (Wood, Acad Manag Rev 164:691–718, 1991) assesses a firm’s social responsibility at three levels of analysis—institutional, organizational and individual—and measures the resulting social outcomes. In this paper, we focus on the individual level of CSP, manifested in the managerial discretion of a firm’s principles, processes, and policies regarding social responsibilities. Specifically, we address the human resources management of employees as a way of promoting CSR values and producing socially minded outcomes. We show that (...) applying the humanist philosophy to the managerial discretion of a business organization leads to the creation of an “autonomy supportive work environment”—as defined by the self-determination theory—which in turn, facilitates the internalization of social values, citizenship behaviors, and cooperation. The objective of promoting self-determination at work (i.e., the core of a humanist management) fits well with the ontology of social responsibility since autonomy and consideration of individuals as moral actors are central tenets. Furthermore, we show that applying humanistic management philosophy to the discretion of managers can lead to socially responsible outcomes. First, intra-organizational stakeholders (e.g., employees) are treated with respect and focus is put on their well-being, satisfaction, and self-actualization at work. Second, as employees’ need of self-determination is addressed by managers, it is likely that pro-social behaviors toward other stakeholders of the organization will be adopted, leading to socially responsible outcomes for extra-organizational stakeholders (Gagné, Motiv Emot 77:58–75, 2003). Thus, this paper ultimately posits that humanistic management applied to the HRM can be a solution for developing and maintaining socially responsible outcomes as determined at the individual level of the CSP model, through managerial discretion. (shrink)

Will the Sarbanes-Oxley Act of 2002 and the emerging EU auditing standards be adequate to stop major corporate scandals? Certainly they will help, but the best defence against fraud is a corporate culture strong enough to itself stop abuse internally. Activities imposed from the outside can never match the role of colleagues within a company who challenge one another to maintain the highest of ethical standards and good business practices. Boards must ensure a strong ethics framework of appropriate (...) behaviour. Since behaviour is based on values priorities, a mutual effort at all levels to deal with corporate ethics begins with a clear understanding of core values, both individually and organisationally. If a company wants to achieve a high Return on Capital Employed and Customers Engaged, a high Return on Competencies Enhanced, and a high Return on Co-Creative Energy, it is a major breakthrough to discover the interrelationship between: value, values, valuing and valuation. (shrink)

According to Dr. Clare Graves, mankind has developed eight core value systems,1 as responses to prevailing circumstances. Given different contexts and value systems, a one-solution-fits-all concept of corporate sustainability is not reasonable. Therefore, this paper presents various definitions and forms of sustainability, each linked to specific (societal) circumstances and related value systems. A sustainability matrix– an essential element of the overall European Corporate Sustainability Framework – is described showing six types of organizations at different (...) developmental stages, with different forms of corporate sustainability, each supported by specific institutional arrangements. (shrink)

This article employs Maak's framework of the seven "Cs" of Corporate Integrity to assess the problems faced by Chiquita Brands in dealing with extortion by left-wing guerilla and right wing paramilitary groups in Colombia from 1989 to 2004. Both types of organizations used Chiquita payments to engage in terrorist activity in Colombia. The extended and systematic dealings with these groups were antithetical to the process of corporate responsibility to which the firm was committed during the timeframe of 1998–2004, (...) revealing a "divided self" in which major corporate activities diverged dramatically from the core values of the firm. Maak's framework provides a useful tool in analyzing the division and the potential for applying lessons from the case to our understanding of corporate social responsibility. (shrink)

Corporations, which in the past have been hesitant to contribute to conversations regarding political and social issues, are increasingly speaking out on current issues such as race, sexual orientation, gender, immigration, and environmental issues. Despite this trend, limited academic research has focused on how corporate sociopolitical activism (CSA) efforts impact firm value. In addition, extant studies have not fully identified the extent to which the firm and their message influence the outcomes of this approach. The current study explores (...) how sociopolitical stances communicated on Twitter affect firms’ stock prices. Results from an event study of 260 incidents of CSA show that CSA efforts decrease firm value by an average of 0.22%, indicating that wading into social or political issues is a risky strategy. However, further analysis highlights the importance of clearly articulating stances on social issues that align with the firm’s core values. (shrink)

This article employs Maak's framework of the seven "Cs" of Corporate Integrity to assess the problems faced by Chiquita Brands in dealing with extortion by left-wing guerilla and right wing paramilitary groups in Colombia from 1989 to 2004. Both types of organizations used Chiquita payments to engage in terrorist activity in Colombia. The extended and systematic dealings with these groups were antithetical to the process of corporate responsibility to which the firm was committed during the timeframe of 1998–2004, (...) revealing a "divided self" in which major corporate activities diverged dramatically from the core values of the firm. Maak's framework provides a useful tool in analyzing the division and the potential for applying lessons from the case to our understanding of corporate social responsibility. (shrink)

Backdating of stock options is an example of an agency problem. It has emerged despite all the measures (i.e., new regulations and additional corporate governance mechanisms) aimed at addressing such problems? Beyond such negative controlling measures, a more positive empowering approach based on ethics may also be necessary. What ethical measures need to be taken to address the agency problem? What values and norms should guide the board of directors in protecting the shareholders' interests? To examine these issues, we (...) first discuss the role values and norms can play with respect to underlying corporate governance and the proper role of directors, such as transparency, accountability, integrity (which is reflected in proper mechanisms of checks and balances), and public responsibility. Second, we discuss various stakeholder approaches (e.g., government, directors, managers, and shareholders) by which conflicts of interest (i.e., the agency problem) can be addressed. Third, we assess the practice of backdating stock options, as an illustration of the agency problem, in terms of whether the practice is legally acceptable or ethically justifiable. Fourth, we proceed to an analysis of good corporate governance practice involving backdating options based on a series of ethical standards including: (1) trustworthiness; (2) utilitarianism; (3) justice; and (4) Kantianism. We conclude that while executive compensation schemes (e. g., stock options) were originally intended to help remedy the agency problem by tying together the interests of the executives and shareholders, these schemes may have actually become "part of the problem," and that the solution ultimately depends upon whether directors and executives accept that all of their actions must be based on a set of core ethical values. (shrink)

Because corporate social responsibility can be beneficial to both companies and its stakeholders, interest in factors that support CSR performance has grown in recent years. A thorough integration of CSR in core business processes is particularly important for achieving effective long-term CSR practices. Here, we explored the individual CSR-related competencies that support CSR implementation in a corporate context. First, a systematic literature review was performed in which relevant scientific articles were identified and analyzed. Next, 28 CSR directors (...) and managers were interviewed. The literature review complemented with interview data resulted in the following eight distinct CSR-related competencies: Anticipating CSR challenges; Understanding CSR-relevant systems and subsystems; Understanding CSR-relevant standards; CSR management competencies, including Leading CSR programs, Managing CSR programs, and Identifying and realizing CSR-related business opportunities; Realizing CSR-supportive interpersonal processes; Employing CSR-supportive personal characteristics and attitudes; Personal value-driven competencies, including Ethical normative competencies, Balancing personal ethical values and business objectives, and Realizing self-regulated CSR-related behaviors and active involvement; and Reflecting on personal CSR views and experiences. Based on these results, implications for further research on this topic, as well as implications for practitioners, are discussed. (shrink)

Despite a plethora of empirical evidence on the potential role of senior management in the success of corporate social responsibility in Western-dominated organizational contexts, little attempt has been made to document the various managerial mindsets toward CSR in organizations in Muslim-dominated countries in the Middle East region. To address this existing lacuna of theoretical and empirical research in CSR management, this paper offers a qualitative case study of CSR in three manufacturing firms operating in Iran’s auto industry. Based on (...) an inductive analysis of the qualitative data, three types of managerial mindset toward CSR are identified: conformist, self-seeker, and satisfier. While it is evident that these different mindsets of Iranian managers seek to serve managerial ends and short-term self-interests, they fall short of core values of Islamic ethics and CSR. (shrink)

This article explores how corporate governance processes and structures are being used in large Australian companies to develop, lead and implement corporate responsibility strategies. It presents an empirical analysis of the governance of sustainability in fifty large listed companies based on each company’s disclosures in annual and sustainability reports. We find that significant progress is being made by large listed Australian companies towards integrating sustainability into core business operations. There is evidence of leadership structures being put in (...) place to ensure that board and senior management are involved in sustainability strategy development and are then incentivised to monitor and ensure implementation of that strategy through financial rewards. There is evidence of a willingness to engage and communicate clearly the results of these strategies to interested stakeholders. Overall, there appears to be a developing acceptance amongst large corporations that efforts towards improved corporate sustainability are not only expected but are of value to the business. We suggest that this is evidence of a managerial shift away from an orthodox shareholder primacy understanding of the corporation towards a more enlightened shareholder value approach, often encompassing a stakeholder-orientated view of business strategy. However, strong underlying tensions remain due to the insistent market emphasis on shareholder value. (shrink)

This paper examines voluntary corporate social responsibility (CSR) reporting as a form of moral discourse. It explores how alternative stakeholder perspectives lead to differing perceptions of the process and content of responsible reporting. We contrast traditional stakeholder theory, which views stakeholders as external parties having a social contract with corporations, with an emerging perspective, which views interaction among corporations and constituents as relational in nature. This moves the stakeholder from an external entity to one that is integral to (...) class='Hi'>corporate activity. We explore how these alternative stakeholder perspectives give rise to different normative demands for stakeholder engagement, managerial processes, and communication. We discuss models of CSR reporting and accountability: EMAS, the ISO 14000 series, SA8000, AA1000, the Global Reporting Initiative, and the Copenhagen Charter. We explore how these models relate to the stakeholder philosophies and find that they are largely consistent with the traditional atomistic view but fall far short of the demands for moral engagement prescribed by a relational stakeholder perspective. Adopting a relational view requires stakeholder engagement not only in prescribing reporting requirements, but also in discourse relating to core aspects of the corporation such as mission, values, and management systems. Habermas’ theory of communicative action provides guidelines for engaging stakeholders in this moral discourse. (shrink)

Even though Corporate Social Responsibility (CSR) has become a widely accepted concept promoted by different stakeholders, business corporations' internal strategies, known as corporate self-regulation in most of the weak economies, respond poorly to this responsibility. Major laws relating to corporate regulation and responsibilities of these economies do not possess adequate ongoing influence to insist on corporate self-regulation to create a socially responsible corporate culture. This book describes how the laws relating to CSR could contribute to (...) the inclusion of CSR principles at the core of the corporate self-regulation of these economies in general, without being intrusive in normal business practice. It formulates a meta-regulation approach to law, particularly by converging patterns of private ordering and state control in contemporary corporate law from the perspective of a weak economy. It proposes that this approach is suitable for alleviating regulators' limited access to information and expertise, inherent limitations of prescriptive rules, ensuring corporate commitment, and enhance the self-regulatory capacity of companies. This book describes various meta-regulation strategies for laws to link social values to economic incentives and disincentives, and to indirectly influence companies to incorporate CSR principles at the core of their self-regulation strategies. It investigates this phenomenon using Bangladesh as a case study. (shrink)

The journal Environmental Values is thirty years old. In this retrospective, as the retiring Editor-in-Chief, I provide a set of personal reflections on the changing landscape of scholarship in the field. This historical overview traces developments from the journal's origins in debates between philosophers, sociologists, and economists in the UK to the conflicts over policy on climate change, biodiversity/non-humans and sustainability. Along the way various negative influences are mentioned, relating to how the values of Nature are considered in policy, including (...) mainstream environmental economics, naïve environmental pragmatism, the strategic role of corporations, neoliberalism and eco-modernism/techno-optimism. At the same time core value debates around intrinsic value in Nature and instrumentalism remain relevant, along with how plural environmental values can be articulated and acted upon. Naturalness, human relations to non-humans, and Nature as other, remain central considerations. The broadening of issues covered by the journal (e.g. covering social psychology, sociology and political science), reflect the need to address both human behaviour and the structure of social and economic systems to confront ongoing social-ecological crises. (shrink)

This paper explores the intersection between three processes associated with globalisation. First, the rise of emerging economies like China, Brazil and India, the so-called ‘Rising Powers’, and their potential to define the contours of globalisation, global production arrangements and global governance in the twenty-first century. Second, the importance of corporate social responsibility goals in the shaping of global trade rules and industrial practices. Third, the significance of small firm clusters as critical sites of industrial competitiveness. Some of the (...) most significant examples of successful, innovative and internationally competitive small firm clusters from the developing world are located in the ‘Rising Powers’ and cluster promotion is a core element of national industrial policy in some of these countries. There is also evidence of engagement by clustered actors with corporate social responsibility goals around labour and environmental impacts. While these three processes have been separately studied there has been no attempt to explore their intersections. This paper addresses this gap through a comparative analysis of secondary data, and a detailed reading of the literature, on CSR and clusters in Brazil, China and India. It assesses the evidence on small firm clusters in the Rising Power economies and considers how these Rising Power clusters engage with CSR goals pertaining to labour, social and environmental standards. It argues for a greater focus on the formal and informal institutional context, termed the ‘social contract’, in explaining divergent experiences and practices observed across these countries. This raises important questions for future academic and policy research on clusters, CSR and the Rising Powers. The paper concludes by outlining a research agenda to explore the local and global consequences of the relationship between Rising Power clusters and international labour and environmental standards. (shrink)

In today’s multi-cultural world and global economy, attention is often focused on the diversity of cultural values and practices and the need for management approaches to take these differing cultural environments into account. While there is much to be valued in this approach, the focus is often on how to navigate through distinct cultural practices in order to achieve a singular business aim, which falls within the current neoliberal paradigm of global trade. In addition, by focusing on differences in cultural (...) practices, rather than on similarities in underlying values, this approach fails to utilize an important way to achieve a greater degree of global integration in management. Despite striking cultural differences, it is possible to identify some enduring values that underlie what often appear to be quite discrete value paradigms, especially by looking at value paradigms that have endured for centuries, even millennia. This paper proposes to explore the values embedded in two such value paradigms or religious traditions, zen buddhism and Judaism, describing crucial core values in each and comparing and contrasting their ethical frameworks, in order to be able to evaluate their utility in today’s world and especially their significance for creating a more holistic, inclusive, and responsible management framework. The paper will begin by explicating the set of foundational values in each religious tradition. For example, zen buddhism, especially as expressed by Vietnamese monk Thich Nhan Hanh, utilizes the concepts of engaged mindfulness and inter-being to demonstrate the ways in which all global issues are linked together, and the collective responsibility that all humans bear for the state of our planet and the beings who live on it. This approach is inherently holistic and inclusive, and requires a management approach that takes into account the moral responsibility that we all carry. Likewise, the Jewish tradition, while using quite different terminology, also lays out a holistic and inclusive moral vision. Key concepts include the values of Tikkum Olam, to repair the world, and Tsedakah, which literally means justice or righteousness, but is commonly used to indicate charitable giving. The first value, to repair the world, emphasizes the collective moral responsibility to heal whatever damage has been done to the world in order to make the it a better place for all. It does not matter who has done the damage; what matters is each person’s obligation to improve the status quo, under the assumption that all our fates are linked together. The second value, justice and charity, is also considered to be a moral obligation, not simply a voluntary act of charity. The emphasis here is on anonymous giving, done in order to help others and without any expectation of receiving some benefit, such as positive publicity. As a moral obligation, it is not something that one should benefit from. Thus, the concept of tsekakah also emphasizes the inter-connectedness of all humanity. In addition, in the Torah, there are a series of rules about how to deal with others in business as well as the obligation, during harvest-time, to leave some grain in the fields for the less fortunate. In all, we see a focus on being mindful of others, on seeing our fates as interconnected, as in zen buddhism. The last section of the paper will explore some of the ways in which these moral imperatives can be utilized to undergird and buttress a more holistic, inclusive and responsible management approach. Some management models already include moral imperatives, such as corporal social responsibility, and this section will explore in greater detail how the above concepts have been more fully integrated into current management models. (shrink)

Social intrapreneurs can help corporations to address grand challenges and create hybrid value—that is simultaneous commercial and social value—by identifying and exploring entrepreneurial opportunities that address social or environmental issues. However, we still know little about how individuals assume social intrapreneurial roles in corporations. Based on a qualitative study of social intrapreneurs and their supporters, we identify variations in social intrapreneurial profiles along two dimensions: the role of the social intrapreneur in the entrepreneurial process (idea initiator versus idea (...) explorer), and their position (within core business departments versus within sustainability departments). We contribute to the literature by identifying four different types of social intrapreneurs as corporate change agents—the Visionary Business Insurgent, the Visionary Sustainability Transformer, the Enabled Business Expert, and the Enabled Sustainability Expert—and by shedding light on four pathways to social intrapreneurship that vary in initial levels of agency and ethical expression. (shrink)

This study explores the relevance of corporate social responsibility (CSR) as an element of the corporate identity of Spanish financial institutions. Specifically, it aims to analyze the CSR actions developed by financial entities through the analysis of all the available information disclosed in their websites. A content analysis applied to 82 banking institutions, followed by different quantitative analyses, reveals the multidimensionality of CSR. Findings show that, while the number of entities institutionalizing CSR values as core elements of (...) their identities is still reduced, most organizations disclose CSR information to construct communicated identities and legitimate behaviours. Besides, these dimensions are classified depending on the stakeholder the action is aimed to, and that entities favour the generation of distinctive identities through the implementation and communication of more visible CSR actions like those involving their customers or the community. In any case, results indicate that organizations with certain characteristics are more likely to construct distinctive identities through CSR activities and to establish ethical and social values within their corporate statements and cultures. (shrink)

This wide-ranging book examines the new dynamics of corporate social responsibility and the impact they have had on the transformation of business corporations. Written by an international group of distinguished experts in management and organization studies, economics and sociology, the book leads one to theoretically and practically rethink CSR, a movement that has developed into a strong and rich institutional domain since the mid 1990s. Through 14 chapters, the book shows the complexity, diversity and progression of the institutional work (...) performed by a large number of individual and organizational actors in specialized networks to develop this strategic field. Central to this book are: the core issues associated with the field of CSR; recent advances in the development, dissemination and implementation of public and private standards of social responsibility; the pressing challenges of developing sustainable strategies of value creation in the face of global warming and underdevelopment; and finally, examples of how CSR has been implemented and institutionalized within business organizations with special attention to the role played by a variety of social actors in organizational change. Conceived as a movement, corporate social responsibility spearheads a transformation project challenging traditional and outmoded forms of corporate governance that frequently pose troublesome ethical issues. From this standpoint, Corporate Social Responsibility and Corporate Change will serve as a reference point for academics, researchers, managers and practitioners. (shrink)

Although maintaining that Frederick’s book Values, Nature, and Culture in the American Corporation(1995) provides a new way to think about what often appear to be competing values of business and society generally, this article raises several questions about Frederick’s theory. In particular, the author challenges Frederick’s failure to develop a clear priority system between the value clusters he defines and the utilitarian approach he uses to balance interests. The article is critical of his apparent disagreement with a concept (...) of universal values as well as his related support of cultural relativism. (shrink)

Continual corporate malfeasance signals the need for obeying the law and for enhancing business ethics perspectives. Yet, the relationship between law and ethics and its integrative role in defining values are often unclear. While integrity-based ethics programs emphasize ethics values more than law or compliance, viewing ethics as being integrated with law may enhance understanding of an organization’s core values. The author refers to this integration of law and ethics as “substantive ethics,” analogous to the substantive law that (...) evolves over time, which is applied to ethical breaches and carries sanctions for non-compliance. This article describes the integration of law and ethics as a mid-point between two polar views that define law and ethics either as having no relation or as being one and the same. Since corporations expressly state which laws they follow, a sample of corporate compliance statements is used to demonstrate this integrative mid-point. The sample also reveals that corporate ethics codes rarely express ethics and law as being integrated per se. Therefore, the author creates an example of a securities law compliance statement that is introduced with an integrative perspective of law and ethics. Perhaps such revised corporate codes will encourage corporate respect for both law and ethics and enhance ethical sustainability. (shrink)

Corporate Social Responsibility is a label covering managerial checks and institutional balances introduced against the background of ethical values. Values are clearly formulated and organizational processes are designed with the inclusion of stakeholders and their voice in mind. In case of the post-communist societies designers of CRS cope with an additional level of complexity. Original sin of market reforms after the political fall of the communist regimes is the corrupt take-over of markets and democracies. Social institutions of capitalist markets (...) and democratic states have been subverted and invaded by the unpurged networks of the post-communist power elites. They privatized the wealth of state enterprises becoming new owners of economic resources and they drifted towards the top functions in state institutions becoming post-communist power brokers. Their long-term monopoly of the media left them in command of the mainstream PR communications long after their absolute political power was gone. Democratic institutions, and the right to free speech are daily challenged by influential image and market competition. They cannot be taken for granted. Some democratic institutions are undermined by subversive networks of the corrupt mafias often formed by ex-functionaries of the communist party and her secret services. Their tacit power is explicitly legitimized by media-clusters of cultural representatives of the communist ex-power elites exploiting leftist bias of media mainstreams. (shrink)

There is a long-standing discussion on the positive interactions between enterprise value creation and business competitiveness. The corporate value can be seen as being created from three major sources within the cycle - from employees, from processes, and from customers or investors through reinvestment. To achieve competitive advantages, a firm must create more value than its competitors in the industry. Emphasizing that, firms should explore the positive drivers of customer value creation, allowing for a true (...) value creation that will lead to increments in competitiveness. In reality, however, there are also barriers that hinder customer value creation. Targeting the above issues that have not yet been explored or analyzed, we have collected related literature at the first stage. Based on these presumable assumptions, this paper then conducts an empirical study by surveying and analyzing the relevance given by the investigated leading machinery measuring equipment firms in Taiwan, regarding the concerns as drivers and barriers in relation to customer value creation. This paper expecially aims to answer several key questions: What drivers revolving around employees and processes can facilitate the organization to create more value for its customers? Conversely, what barriers block the organization from creating value for customers in examining the same dimensions? Does value creation direct an organization's profitability and competitiveness? Our questionnaire survey results show that the most recognized and agreed drivers of customer value creation in consideration of employees are "distinctive skills", "personal experience", "learning and training", and "team work"; and, in regard to the firm's processes, the key drivers are "innovation and evolution", "R&D capability", and "capability for differentiation". Conversely, the most recognized and agreed barriers to customer value creation in relation to employees are a "distrustful environment" and "inadequate knowledge"; and, in terms of processes, they are "short of core technology", "poor resource support", and "bad services and attitudes". Furthermore, our in-depth interview outcomes reveal that "capital sufficiency" and "mergers and acquisitions" are in practice considered to be other important customer value creation drivers; in contrast, "cultural and structural barriers" and "short of mechanisms to measure customer value creation effectively" are viewed as additional critical barriers to customer value creation. (shrink)

Although personal attributes have gained recognition as an important area of effective corporate governance, scholarship has largely overlooked the value and implications of individual virtue in governance practice. We explore how authenticity—a personal and morally significant virtue—affects the primary monitoring and strategy functions of the board of directors as well as core processes concerning director selection, cultivation, and enactment by the board. While the predominant focus in corporate governance research has been on structural factors that influence (...) firm financial outcomes, this paper shifts attention to the role of authenticity and its relationship to individual board member qualities and collective board activities. We explore how authenticity has the potential to influence board dynamics and decision making and to enhance transparency and accountability. (shrink)

Corporate Reputation (CR) is essential to value generation and is co-created between a company and its stakeholders, including supply chain actors. Consequently, CR is a critical and valuable resource that should be managed carefully along supply chains. However, the current CR literature is fragmented, and a general definition of CR is elusive. Besides, the academic CR debate largely lacks a supply chain perspective. This is not surprising, as it is very difficult to collect reliable data along supply chains. (...) When supply chains span the globe, data collection is especially challenging, as the chain consists of multiple suppliers and subcontractors, positioned at different tier levels. Recognizing this, the paper examines firstly the current state of CR research through a systematic literature review from a business perspective. The review is combined with a bibliometric mapping approach to show the most influential research clusters, representative of CR research streams and their contributors. This process highlights that the connection between CR and supply chain issues represents a major research gap. Consequently, this paper introduces a research agenda connecting these the two traditionally separated research fields. (shrink)

Drawing on the core values of western civilization, the author refines the counterparts in Chinese civilization, summarized as four core principles: duty before freedom, obedience before rights, community before individual, and harmony before conflict. Focusing on guoxue or Sinology as the basis of his approach, the author provides detailed explanations of traditional Chinese values. Recent scholars have addressed the concept of guoxue since the modern age, sorting through it and piecing it together, which has produced an extremely abundant (...) range of information. However, given that the concepts and theories involved have been left largely unanalyzed, this book develops a theoretical treatment of them in several important respects. First, it analyzes the mindset of guoxue, examining the dominant ideas and values of the era from which the term "guoxue" arose, focusing on its connection to early changes and trends in society and culture, and distinguishing three key phases of development. Past scholars mainly had in mind the range of objects studied in guoxue when defining it, and what this book underscores is the meaning of guoxue as a modern body of research. Secondly, it assesses several phases in the modern evolution of the body of guoxue research from the beginning to the end of the 20th century, id est, ending with the later phase of the National Heritage movement. Third and lastly, the book explores the various main modes of modern guoxue, which correspond step by step with the evolutionary phases of guoxue research. (shrink)

The view that corporate psychopathy played a significant role in causing the global financial crisis, although insightful, paints a reductionist picture of what we present as the broader issue. Our broader issue is the tendency for psychopathy, narcissism and Machiavellianism to cluster psychologically and culturally as ‘dark leadership’ within global financial institutions. Strong evidence for their co-intensification across society and in corporations ought to alarm financial regulators. We argue that an ‘ethical revival’ of prudence within prudential regulation ought to (...) be included in any package of solutions. Referencing research on moral muteness and the role of language in framing thoughts and behaviours, we recommend that regulators define prudence in an explicitly normative sense, an approach that may be further strengthened by drawing upon a widely appealing ethic of intergenerational care. An ethical revival of prudence, we argue, would allow the core problems of greed and myopia highlighted by corporate psychopathy theory to be addressed in a politically sensitive manner which recognises the pitfalls of regulating directly against corporate psychopathy. Furthermore, it would provide a viable conceptual framework to guide regulators along the treacherous path to more intrusive cultural regulation. (shrink)

This chapter proposes the concept of the mindsponge and its underlying themes that explain why and how executives, managers, and corporations could replace waning values in their mindsets with those absorbed during their exposure to multicultural and global settings. It first provides a brief literature review on global mindset and cultural values, which suggests that not only can a mindset be improved, but that it is learning mechanism can also be developed. Then the chapter offers a conceptual framework, called the (...) 'mindsponge', which builds upon earlier works linking mindset to themes of multi-filtering. The process is proposed to help identify emerging values in the transition economy of Vietnam and also to reconfirm existing core values. The concept of mindsponge provides executives, managers, and organizations with not only a practical framework for improving their global mind-set by identifying and strengthening core values, but also capturing emerging opportunities. (shrink)

In most areas of our lives, legal protections are in place to ensure that we have autonomous control over what happens in and to our bodies. However, there are fewer protections in place for autonomous choice when it comes to the food we purchase and consume. In fact, the current trend in US legislation is pushing us away from autonomous food choice. In this paper, I discuss two examples of this trend: corporate resistance to GM labeling laws and farm (...) protection laws. These examples are quite different from a legislative point of view. In one case, laws that would promote autonomous choice are actively resisted, whereas in the other case, laws that undermine autonomy are enacted. The common core of the two examples is the effect: in both cases, we are unable to determine whether the food we purchase and consume is consistent with our values. In both cases, then, autonomous choice about the food we purchase and put into our bodies is undermined. (shrink)

Since China opened herself up to the world in the late 70s, privately-owned companies of different trades began to emerge along side with the state-owned enterprises. Among these successful private enterprises, a few have distinguished themselves from the rest by their distinct corporate cultures. Despite an increasing number of research on private enterprises in China, little has been done to unveil the ethical aspects of their corporate cultures. This paper attempts to fill the gap. This paper focuses on (...) one company named the Weizhi Group in Xian. The Weizhi culture is indeed the basis of a company which I refer to as "virtuous corporation". An empirical survey on the values and perceptions of the employees of Weizhi Group was conducted to probe the values and perceptions of business ethics of its employees. (shrink)

As the sensitivity to corporate social responsibility continues to grow, the goal of enterprises has expanded beyond the sole pursuit of economic value. Corporate social goal orientation has therefore come to occupy a central position in entrepreneurs’ psychology and the transition away from a market-only economy. This study uses secondary data from 4,288 samples of 725 Chinese-listed companies from 2009 to 2020 to explore the driving factors in social goal orientation based on the characteristics of sample companies (...) and their industry groups from the perspective of stakeholder relationships. The results can be summarized as follows: there is an inverted U-shaped relationship between government stakeholder relationships and social goal orientation, and there is a significant positive relationship between financial stakeholder relationships, market stakeholder relationships, and corporate social goal orientation. The correlation between single-dual stakeholder relationships and social goal orientation is not consistent. In light of the nature of the roles of government and the market, the correlation between the government–market dual relationship and corporate social goal orientation is not significant. However, there is a significant correlation between the finance–government dual stakeholder relationship and social goal orientation; that is, the dual stakeholder relationship maintains the existence of non-institutional capital and corporate financial capital. Moreover, there is no significant correlation between the market–finance dual relationship and corporate social goal orientation, and there is substitutability between market and financial stakeholder relationships. With the deepening of our understanding of CSR, the core goal of enterprises is no longer confined to the pursuit of economic value, and their social goal orientation has come to be regarded as a major driving force in sustainable development. This study enriches the research on the relationship between stakeholder relationships and shows that stakeholder relationships also have important significance to both achieving corporate goals and shaping entrepreneurs’ psychology. (shrink)

This article explores the relationship between corporate social responsibility and authenticity by developing a framework that explains the characteristics of CSR activities that lead to a perception by stakeholders that a firm’s CSR efforts are genuine. Drawing on the authenticity literature, we identify two core dimensions of authenticity that impact stakeholder perceptions of CSR: distinctiveness and social connectedness. Distinctiveness captures the extent to which a firm’s CSR activities are aligned with their core mission, vision and values while (...) social connectedness refers to the degree to which an organization’s CSR efforts are embedded in a larger social context. We use this framework to explore the question ‘when are a firm’s CSR efforts most likely to be perceived as authentic by stakeholders?’ and find that both of these dimensions are necessary; social connectedness or distinctiveness alone are necessary but insufficient conditions for perceptions of authenticity to occur. A detailed exploration of authenticity, therefore, advances research in the CSR domain that may help mend the growing divide between business and society. (shrink)

Business and Society Review, Volume 127, Issue 1, Page 69-96, Spring 2022.

When it comes to the establishment of an ethical corporate culture, there appear to be at least two inter-related foundational requirements: (1) the existence of an explicit set of core ethical values; and (2) the presence of ethical leadership, i.e., an ethical ‘tone at the top.’ Some companies appear, however, to have been more successful than others when it comes to establishing an appropriate ‘tone at the top’, i.e., leaders who behave according to an explicit set of (...) class='Hi'>core ethical values. Building on previous values-based leadership research, this study examines the process of one Canadian-based firm’s initial efforts, following a series of embarrassing scandals and negative publicity, to inculcate values-based leadership via a set of core ethical values. (shrink)

This paper presents the concept of character competence as a basis for creating ethical organizations. In view of the gaps between the 'statement' of values and the 'state' of values that have been witnessed recently in many corporates, the need to improve character competence of the corporates has become critical to the success of organizations. While corporates pay a lot of attention to core competence, they hardly pay much to character competence. Drawing upon various paradigms of ethics, this paper (...) suggests a holistic framework of business ethics rooted in ethical imperatives for individuals, organizations and markets. The framework developed in the paper forms the foundational basis for the concept of character competence. The author suggests the need for developing a character competence index and rating corporates on such an index. Further, it is suggested that ethical sensitivity can be inculcated through development of ethics-based management models with roots in character competence. (shrink)

The public debate on climate change is filled with moral claims. However, scientific knowledge about the role that morality, ethics, and values play in this issue is still scarce. Starting from this research gap, we focus on corporations as central decision makers in modern society and analyze how they respond to societal demands to take responsibility for climate change. While relevant literature on business ethics and climate change either places a high premium on morality or presents a strong skeptical bias, (...) our sociological model depicts morality as an indeterminate force: it can lead to both workable solutions or merely reinforce the status quo, depending on what different corporations make of it. We describe, on the one side, the diffusion of moral values in the media discourse on climate change and, on the other side, the specific responses of corporations. While the media discourse generates a pressure on corporations to act responsibly, their moral claims do not provide clear advice for action. As a result, morality becomes available to organizations as a medium that can be re-specified according to their internal dynamics. Corporations transform moral values into something compatible with their own structures through a variety of different responses: introducing formal ethical structures (e.g., codes of conduct), initiating value-oriented projects, or developing informal moral norms, and so on. In some occurrences, morality becomes a mere façade, while in others it serves as a decision-making criterion and deeply influences core activities in firms. (shrink)

This article seeks to expand business and society research in a number of ways. Its primary purpose is to redraw two core corporate social responsibility theories, enhancing their relevance for small business. This redrawing is done by the application of the ethic of care, informed by the value of feminist perspectives and the extant empirical research on small business social responsibility. It is proposed that the expanded versions of core theory have wider relevance, value, and (...) implications beyond the small firm context. The theorization of small business social responsibility enables engagement with the mainstream of CSR research as well as making a contribution to small business studies in scholarly, policy, and practice terms. (shrink)