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)

Driven by recent accreditation mandates, a changing legal environment, and multiple high-visibility corporate ethics scandals, many business schools are responding to the growing movement within higher education to integrate ethics into the curricula. The literature suggests that the amount of attention given to ethics varies widely among institutions, and has not been coherently developed. Moreover, institutions have struggled to tie related projects and instruction to the overall concept of assurance of student learning. The purpose of this (...) paper is to provide a framework for institutions interested in creating an interdisciplinary business ethics program that combines critical success factors, assurance of student learning and continuous quality improvement. Using a nationally recognized business school’s ethics program, we provide an example of how our model can be applied at other institutions based on their own unique vision, mission and goals. (shrink)

What do corporations look like when they have integrity, and how can we move more companies in that direction? Corporate Integrity offers a timely, comprehensive framework- and practical business lessons - bringing together questions of organizational design, communication practices, working relationships, and leadership styles to answer this question. Marvin T. Brown explores the five key challenges facing modern businesses as they try to respond ethically to cultural, interpersonal, organizational, civic and environmental challenges. He demonstrates that if corporations (...) are to meet the needs of civil society, they must facilitate inclusive communication patterns based on mutual recognition and civic cooperation. Corporate Integrity is essential reading for professionals in organizational ethics, business leaders, and graduate students looking for practical and reflective insights into doing business with integrity and purpose. (shrink)

ABSTRACT:We analyze corporate ethics programs as control systems, arguing that how control is exercised may have pernicious consequences and be morally problematic. In particular, the control cultivated by ethics programs may weaken employees’ ability and motivation to exercise their own moral judgment, especially in novel situations. We develop this argument first by examining how organization theorists analyze control as an instrument of management coordination, and by addressing the political implications of control. We discuss coercive and (...) enabling control as variations that help account for the distinction between compliance-based ethics programs and values-based ethics programs. We then explore three potential drawbacks of ethics programs: the specter of indoctrination, a politicization of ethics, and an atrophy of competence. Ethics programs that rely on coercive control may undermine their own effectiveness at stemming misbehavior. (shrink)

Unethical behavior on the part of business corporations and their leaders has led many business executives and university administrators to call for the inclusion of ethics in MBA programs. This paper reviewed studies and commentary relating to the teaching of ethics in MBA programs in the United States. The results showed that ethics has not yet gained an integral place in the curricula of business schools. A plan of action for the systematic incorporation of (...) class='Hi'>ethics into the MBA curriculum was proposed based on the system model of training commonly used in the training field. In concluding, a question about the total responsibility of the business schools toward the promotion of ethical behavior on the part of their graduates was raised. (shrink)

Managers often ask why their firm should have an ethics program, especially if no one has complained about unethical behavior. The pursuit of business ethics can cost money, they say. It can lose sales to less scrupulous competitors and can drain management time and energy. But as Harvard business professor Francis Aguilar points out, ethics scandals (such as over Beech-Nut's erzatz "apple juice" or Sears's padded car repair bills) can severely damage a firm, with punishing legal penalties, (...) bad publicity, and irreparably injured customer relations. Equally important if less obvious, unethical behavior can undermine a firm's organizational spirit. On the other hand, Aguilar argues, in a well run firm, ethical programs can actually enhance corporate performance, strengthening the company at every level and supercharging employee risk taking and innovation. In Managing Corporate Ethics, Aguilar shows managers how to create ethical programs within their organizations that not only discourage large-scale wrongdoing, but can contribute substantially to the achievement of corporate excellence. Aguilar's program is down-to-earth and comprehensive, and based on his extensive research on highly successful, ethical companies, both large and small. He recommends action on three fronts: first, get senior management to provide effective ethical leadership; second, set up an ethics program that promotes concern for the interests of people affected by the firm's operations and that provides safeguards against corrupting business pressures; and third, staff the company with ethical people and surround the organization with ethical advisors (including legal, financial, accounting, tax, and marketing consultants). To illuminate this three-step program, Aguilar incorporates the lessons learned in his in-depth study of ten prominent firms with proven successful ethics programs--among them Hewlett-Packard, Johnson & Johnson, Nucor Steel, Cray Research, ServiceMaster, and Texas Instruments. He examines Lincoln Electric's attention to compensation and job security to ensure quality products and to reduce the pressure or temptation to act unethically. He shows how General Mills, while pushing product line managers to compete aggressively, uses corporate staff units to guard against illegal or unacceptable claims (testing cake recipes, for example, to see if a product's quality fails under the less-than-perfect conditions of a normal kitchen). And he details how Armstrong World Industries uses pep talks, inspirational stories, role models, and ready access to management to promote ethical standards among employees. Throughout, Aguilar demonstrates convincingly that an ethical program pays dividends: that employees, suppliers, customers, and the community at large know when they are being treated in a positive and constructive manner, and are likely to respond in kind. Packed with real life examples of successful (and failed) ethical programs, Managing Corporate Ethics is a valuable roadmap to an often overlooked source of business success. (shrink)

Environmental disasters like Bhopal have a way of calling attention to environmental and corporate ethical issues. This paper discusses these issues in terms of a livable environment as an inalienable right and of corporate responsibility as an philosophical and social psychological disposition that enables corporations to respect that right. The corporate conscience is compared to the individual conscience and analyzed according to the moral development theories of Lawrence Kohlberg. Its moral development is recognized as problematic from the (...) cited performance records of some leading multinational corporations and from the anti-environmental lobbying efforts of the chemical industry itself. Outreach programs in environmental health associated with research projects in corporate ethics are suggested to develop the corporate conscience for preserving environmental integrity through corporate responsibility. (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)

In this project, we explore perceptions of the social and ethical implications of nanotechnology among US scientists who work at the nanoscale, and develop and pilot test an online training module to foster consideration of social and ethical implications in the lab. To meet our first goal, we drew qualitative insights from open-ended survey data collected from scientists affiliated with the National Nanotechnology Infrastructure Network. Our data suggest that while the survey participants responded positively to the idea that consideration of (...) SEI should be a part of the work they do, there was confusion about whether SEI refers to lab safety, research integrity, or something more. This is something we sought to address in the online training module that we developed based on that qualitative data and on feedback collected from experts in nanoethics and lab management. We then pilot tested the module with undergraduate students studying nanotechnology in the National Science Foundation’s Research Experiences for Undergraduates program and with scientists registered to use a National Nanotechnology Coordinated Infrastructure-funded microelectronics research lab. The undergraduate data suggested that students appreciated the SEI training but wished professors and scientists would begin integrating the ideas therein into coursework and mentoring. The scientist data suggested that the module increased understanding of “social and ethical implications,” increased the perceived need to implement SEI into workplace routines, and, interestingly, heightened perceptions of risk associated with the scientists’ own work. The practical and theoretical implications of this work are discussed. (shrink)

Several recent studies and initiatives have emphasized the importance of a strong ethical organizational DNA (ODNA) to create and promote an effective corporate governance culture of trust, integrity and intellectual honesty. This paper highlights the drawbacks of an excessively heavy reliance on rules-based approaches that increase the cost of doing business, overshadow essential elements of good corporate governance, create a culture of dependency, and can result in legal absolutism. The paper makes the case that the way (...) forward for effective corporate governance is to strike an optimal balance between rules-based and principles-based approaches. The recent corporate scandals have demonstrated that the ethical ODNA is critical to the driving force and basis of legal and regulatory requirements. Effective governance means adhering to ethical principles, not merely complying with rules, and is a crucial guardian of a firm’s reputation and integrity. It is through an effective corporate governance program (that is, one that optimally captures and integrates the appropriate aspects of rules-based and principles-based approaches, and identifies and assesses the related risks) that an organization can reconfigure its ODNA for improved performance. Focusing on the ethical ODNA as the basis of new governance measures provides an opportunity to develop a competitive advantage as it represents a potential source of differentiation, strengthens the relationship with all stakeholders of the organization by building a culture of trust and integrity, and re-instills investor confidence. This paper employs dialectical reasoning that links the ODNA through principles-driven rules in developing a risks-based approach. A comparison from a risk assessment perspective between rules-based and principles-based approaches is presented. Although there have been few applications employing dialectical reasoning in business research, this methodology can be extremely useful in isolating ethical issues and integrating them into the business process. The risks-based approach captures the benefits of both rules-based and principles-based approaches, and incorporates trust-based principles such␣as solidarity, subsidiarity and covenantal relationships. (shrink)

Metaphors from strategic management can be applied effectively to business ethics programs. While effective strategies help implement ethical decisions that are formulated in good faith, ostensibly value-neutral control mechanisms can indirectly affect the substantive nature of policies and decisions themselves. This article examines the effectiveness of various corporate social responsibility implementation strategies. It also addresses the effects of implementation choices on the substantive formulation of ethical decisions and policies.Implementation and evaluation of corporate social responsibility programs (...) through models of responsiveness are integrated into the social policy cycle using four tools: strategic control and performance control approaches, and hierarchical control and contractual control structures. The choices made among these forms of control approaches and structures, which as implementation mechanisms are typically considered to be value-free devices, may affect the substance of corporate social responsibility content. Hierarchical control structures, which use outside directors, tend to be associated with performance control approaches, and are biased towards applying utilitarian approaches to ethical decision making. Contractual control structures are compatable with strategic control approaches, and generally favor the application of principle-based approaches to ethical decision-making. Both the content and the quality of ethical decisions will be affected by differences between hierarchical and contractual control. (shrink)

The goals of this study are to test a pattern of ethical decision making that predicts ethical intentions of individuals within corporations based primarily on the ethical values embedded in corporate culture, and to see whether that model is generally stable across countries. The survey instrument used scales to measure the effects of corporate ethical values, idealism, and relativism on ethical intentions of Turkish, Thai, and American businesspeople. The samples include practitioner members of the American Marketing Association (...) in the U.S., and full-time businesspeople enrolled in executive MBA programs in Thailand and Turkey. The study is positioned within a fairly new stream that assesses patterns across countries, rather than differences between them, in a way that might be called “culture free.” The results show a generally positive influence between cultural ethical values and ethical intentions. The results also indicate that the positive effect of corporate ethical values on ethical intentions is greater for managers with low idealism and high relativism. We also discuss the implications of our results for managers of international businesses. (shrink)

Even though management scholars have offered several views on the process of corporate sustainability, these efforts have focused mainly on the technical aspects of sustainability while omitting the fundamental role played by individual moral competences. Therefore, previous work offers an incomplete and somewhat reductionist view of corporate sustainability. In this article, we develop a holistic framework of corporate sustainability in which both the moral and technical aspects of sustainability are considered. We do so by integrating the ethical, (...) normative perspective of the Catholic social teaching with the competitive view of the natural resource-based view. This framework highlights the importance of CST principles and ideas in developing executive moral competences such as moral sensitivity and awareness, and moral cognition and motivation. Moral competences, in turn, influence the organizational selection of environmental strategies, giving leaders the intrinsic motivation to promote both a longer-term stance on corporate sustainability efforts and a relentless search for greener business models. Such strategies move the firm closer towards achieving environmental sustainability. Hence, by bridging the individual, normative-ethical with the organizational, implementational levels of corporate sustainability, our framework provides a more realistic, coherent, and complete perspective on the complex process of achieving corporate sustainability. (shrink)

Even though management scholars have offered several views on the process of corporate sustainability, these efforts have focused mainly on the technical aspects of sustainability while omitting the fundamental role played by individual moral competences. Therefore, previous work offers an incomplete and somewhat reductionist view of corporate sustainability. In this article, we develop a holistic framework of corporate sustainability in which both the moral and technical aspects of sustainability are considered. We do so by integrating the ethical, (...) normative perspective of the Catholic social teaching with the competitive view of the natural resource-based view. This framework highlights the importance of CST principles and ideas in developing executive moral competences such as moral sensitivity and awareness, and moral cognition and motivation. Moral competences, in turn, influence the organizational selection of environmental strategies, giving leaders the intrinsic motivation to promote both a longer-term stance on corporate sustainability efforts and a relentless search for greener business models. Such strategies move the firm closer towards achieving environmental sustainability. Hence, by bridging the individual, normative-ethical with the organizational, implementational levels of corporate sustainability, our framework provides a more realistic, coherent, and complete perspective on the complex process of achieving corporate sustainability. (shrink)

Organizations continue to show renewed focus on managing their ethics programs by developing organizational infrastructures to support their ethics implementation efforts. An important part of this process has been the creation of an ethics officer position. Whether individuals appointed to the position are successful in the role or not may depend on a number of factors. This study presents a suggested framework for their effectiveness. The framework includes a focus on personal, organizational and situational factors to (...) predict performance in the role. The study examines the complex nature of the role. These include task complexity, low task visibility, role conflict, and role ambiguity. Personal, organizational and situational factors that can serve as buffers against the complexities associated with the role are presented. The study suggests that individuals with certain competencies and orientations may be better suitable for the ethics position, and firms need to consider key organizational and situational issues critical to the performance of an ethics officer. The research and practice implications of the study are given. (shrink)

While a corporate ethics program is expected to reduce employees’ unethical behavior, understanding the effects of the ethics program elements on reducing the unethical behavior is a crucial issue. This study aims to explore how a corporate ethics program with multiple control elements, including punishment, monitoring, internal reporting, code of ethics, ethics support service and ethics training, influence employees’ threat appraisal process, coping appraisal process and unethical behavior at workplaces. The data to (...) verify proposed research hypotheses were collected by administering questionnaire survey on four autonomous government organizations in Bangladesh. Research findings show that only punishment and monitoring have significantly negative relationships with unethical behavior. Monitoring and internal reporting have significantly positive relationships with threat appraisal. The code of ethics, ethics support service and ethics training are associated positively with coping appraisal. The mediation results reveal that coping appraisal mediates the relationship between ethics program elements and unethical behavior; but the mediation effects of threat appraisal are not significant. This study provides valuable insights into how a corporate ethics program with multiple control elements reduces employees’ unethical behavior as well as how employees’ threat and coping appraisal processes are related to the corporate ethics program and unethical behavior in organizations. (shrink)

. Recent corporate scandals have focused the attention of a broad set of constituencies on reforming corporate governance. Boards of directors play a leading role in corporate governance and any significant reforms must encompass their role. To date, most reform proposals have targeted the legal, rather than the ethical obligations of directors. Legal reforms without proper attention to ethical obligations will likely prove ineffectual. The ethical role of directors is critical. Directors have overall responsibility for the (...) class='Hi'>ethics and compliance programs of the corporation. The tone at the top that they set by example and action is central to the overall ethical environment of their firms. This role is reinforced by their legal responsibilities to provide oversight of the financial performance of the firm. Underlying this analysis is the critical assumption that ethical behavior, especially on the part of corporate leaders, leads to the best long-term interests of the corporation. We describe key components of a framework for a code of ethics for corporate boards and individual directors. The proposed code framework is based on six universal core ethical values: (1) honesty; (2) integrity; (3) loyalty; (4) responsibility; (5) fairness; and (6) citizenship. The paper concludes by suggesting critical issues that need to be dealt with in firm-based codes of ethics for directors. (shrink)

The Patient Protection and Affordable Care Act of 2010 (ACA) contains many provisions intended to increase access to and lower the cost of health care by adopting public health measures. One of these promotes the use of at-work wellness programs by both providing employers with grants to develop these programs and also increasing their ability to tie the price employees pay for health insurance for participating in these programs and meeting specific health goals. Yet despite ACA's specific (...) alteration of three different statues which had in the past shielded employees from having to contribute to the cost of their health insurance based on their achieving employer-designated health markers, it chose to leave alone recently enacted rules implementing the Genetic Non-Discrimination Act (GINA), which prohibits employers from asking employees about their family health history in any context, including assessing their risk for setting wellness targets. This article reviews how both the changes made by ACA and the restrictions recently put place by GINA will affect the way employers are likely to structure Wellness Programs. It also considers how these changes reflect the competing social goals of both ACA, which seeks to expand access to the population by lowering costs, and GINA, which seeks to protect individuals from discrimination. It does so by analyzing both positive theories about how these new laws will function and normative theories explaining the likelihood of future friction between the interests of the population of the United States as a whole who are in need of increased and affordable access to health care, and of the individuals living in this country who risk discrimination, as science and medicine continue to make advances in linking genetic make-up to risk of future illness. (shrink)

The passing of the Patient Protection and Affordable Care Act is a triumph for the field of public health. Its inclusion of many provisions intended to prevent illness and promote health endorses the core belief of public health as expressed by Dr. Georges Benjamin, the long-time executive director of the American Public Health Association, in a Washington Post opinion piece praising ACA for “provid[ing] care as far upstream as possible… [in order to] reduce costs by identifying problems early and then (...) managing them to reduce or eliminate the need for more costly care in the future.” In this article, I consider the conflict between ACA’s adoption of public health goals seeing population health and societal interests in protecting individuals from discrimination based on their health. The article focuses on one aspect of ACA which seeks to lower the costs to employers who provide health insurance for their employees by making it easier for them to offer their employees substantial incentives for participating in and meeting the goals of employer-sponsored Wellness Programs. (shrink)

Dance, as aesthetic self-expression, is a unique arts-based program that combines the physical benefits of exercise with psychosocial therapeutic benefits. While dance has also been shown to support empowerment, meaningful self-expression, and pleasurable experience, it is rarely adopted to support these aspects of engagement in the context of dementia care. The instrumental reduction of dance to its application as a therapeutic tool can be traced to the contemporary movement towards cognitive science with an emphasis on embodied cognition. This has (...) effectively elided a consideration of how the body itself, separate and apart from cognition, could be a source of intelligibility, inventiveness, and creativity. We argue for the need to broaden the therapeutic model of dance to more fully support embodied and creative self-expression by persons living with dementia. To achieve this, we explore how a relational model of citizenship that recognizes corporeality and relationality as fundamental to human existence brings a new and critical dimension to understanding the importance of dance in the context of dementia. Drawing on this model, we articulate a new kind of ethic characterized by a pre-reflective intercorporeal sensibility that requires the mobilization of public structures and practices to cultivate a relational environment for individuals living with dementia that supports human flourishing. (shrink)

Over the past few years, the business world has been wracked by corporate scandals. With news of a new scandal an almost weekly occurrence, one cannot help but wonder: “Is business success synonymous with a lack of morality?” With a resounding “no,” Bowen H. “Buzz” McCoy, former partner at Morgan Stanley, shows that ethical business leadership is possible and, moreover, desirable. Seeking inspiration from an eclectic range of sources, such as Dante, Kant, and Peter Drucker, and drawing from his (...) own career as a successful investment banker, the author examines how business leaders—and those who aspire to be business leaders—can flourish in a corporate environment without shedding personal values or compromising integrity. Living Into Leadership: A Journey in Ethics is based on the author’s actual life experiences, personal ethical dilemmas, and concerns. This groundbreaking work incorporates classroom materials developed by the author for ethics programs at various business schools, including Stanford, UC Berkeley, the University of Southern California, UCLA, and Notre Dame. The central question this book considers is how to pursue an engaged business career while living a balanced life and continuing to grow as an integrated person. McCoy acts as a “mentor” for readers, providing personal and professional guidance on the development of a personal business plan for life. The book presents the case for creating a moral compass that allows one to make decisions under uncertainty, lead a life of integrity, establish the practice of ethics both personally and in society, and know when to embrace change and when to hold one’s ground. It includes an abbreviated version of the author’s acclaimed work, the seminal Harvard Business Review article, “The Parable of the Sadhu,” and shows readers how to prepare in advance for dilemmas they may face, both in their private and professional lives. (shrink)

Education in the responsible conduct of research (RCR) in the United States has evolved over the past decade from targeting trainees to including educational efforts aimed at faculty and staff. In addition RCR education has become more focused as federal agencies have moved to recommend specific content and to mandate education in certain areas. RCR education has therefore become a research-compliance issue necessitating the development of policies and the commitment of resources to develop or expand systems for educating faculty and (...) staff and for assuring compliance. These changes implied the need to develop a program evaluation model that could be applied to institutional RCR education programs, which were expected to differ from traditional academic credit-bearing courses targeting trainees. Information gleaned from the examination of corporate compliance models was analyzed in order to create a program evaluation module that could be used to document and assess educational programs focused on teaching RCR. A programmed series of questions for each of the nine RCR content areas identified by the United States Office of Research Integrity was created based on a performance-monitoring evaluation model. The questions focus on educational goals, resources provided to support the educational efforts, educational content, content delivery, educational outcomes, compliance requirements and feedback. Answers collected in response to the questions could be used to both document and continually improve the quality of RCR educational programs through on-going formative assessment and feedback. (shrink)

Establishing a cosmopolitan ethical culture for a multinational company requires special effort above and beyond that needed for standard domestic ethics initiatives. This articles discusses some of the perils and prospects involved in international corporate ethics programs, and recommends some key guiding principles.

Corporate philanthropy describes the action when a corporation voluntarily donates a portion of its resources to a societal cause. Although the thought of philanthropy invokes feelings of altruism, there are many objectives for corporate giving beyond altruism. Meeting strategic corporate objectives can be an important if not primary goal of philanthropy. The purpose of this paper is to share insights from a strategic corporate philanthropic initiative aimed at increasing the pool of frontline customer contact employees who (...) are performance-ready, while supporting curriculum development and infrastructure improvement for selected university business programs, creating a win-win situation for the company and the universities. This paper will address three objectives. First, we will examine the evolution of strategic philanthropy from the traditional view to its current position as a strategic option. Second, we will address the recruitment of front line talent needs (customer facing jobs in sales, customer service, and marketing) based on the profit maximization model of strategic philanthropy. Finally, we will offer conclusions and issues for future research. (shrink)

Ethics and Business: An integrated approach for business and personal success equips students with business ethics concepts and pragmatic knowledge they need to identify and solve ethical dilemmas, understand their own and others' ethical behavior, promote ethical behavior in their organization, and begin the process of living a life rich in meaning and happiness. Ethics and Business: An integrated approach for business and personal success provides a systematic and logical framework for understanding ethical challenges and thinking about (...) how to respond. The chapters build on each other. Part 1 (chapters 2-4) lay a foundation for a holistic view of individual ethics. Part 2 (chapters 5-7) provide important knowledge and language about organizational realities and how they deal with issues of ethics and compliance. Part 3 (chapters 8-12) offer students the opportunity to apply what they've learned around four common ethical challenges in business: Conflict of Interest, Bribery, Honesty/ Integrity, the Use and Abuse of Power, and Corporate Social Responsibility. Part 4 takes up some larger issues of ethics: the role of ethics in a market-based or planned economy and the ethical challenges that come with technological innovation. (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)

In the December 2006 edition of Harvard Business Review, Michael Porter and Mark Kramer argue that by approaching corporate social responsibility (CSR) based on corporate priorities, strengths and abilities, firms can develop socially and fiscally responsible solutions to current CSR issues, which will provide operational and competitive advantages. We agree that an effective approach to CSR includes a mapping of strategy, risk and opportunity. However, we also caution that the identification of these to the exclusion of societal (...) input may not be to the corporation's advantage. Instead, an investment in both strategic analysis and social capital can pay off from a social and an organizational standpoint. Compared with their larger counterparts, small‐ and medium‐sized enterprises (SMEs) frequently have stronger relationships with their internal and external stakeholders that foster the development of social capital. As such, we believe that the sector offers a unique opportunity to identify additional models and frameworks in order to approach a strategic CSR model as espoused by Porter and Kramer. This paper explores a case study of one Canadian SME that uses a community development framework called Asset Based Community Development (ABCD) for its CSR programming. Because ABCD relies heavily on the development and maintenance of social capital and can be utilized to attain set objectives, we propose that it provides a supplementary framework through which the arguments of Porter and Kramer can be expanded. In applying the ABCD framework for CSR, we can begin to establish a programme that supports strategy, integrates employees and stakeholders towards a common vision, and creates unique and sustainable alternatives towards the resolution of social and corporate goals. (shrink)

Corporate Social Responsibility (CSR) programs are increasingly popular corporate marketing strategies. This paper argues that CSR programs can fall along a continuum between two endpoints: Institutionalized programs and Promotional programs. This classification is based on an exploratory study examining the variance of four responses from the consumer stakeholder group toward these two categories of CSR. Institutionalized CSR programs are argued to be most effective at increasing customer loyalty, enhancing attitude toward the company, (...) and decreasing consumer skepticism. Promotional CSR programs are argued to be more effective at generating purchase intent. Ethical and managerial implications of these preliminary findings are discussed. (shrink)

In the December 2006 edition of Harvard Business Review , Michael Porter and Mark Kramer argue that by approaching corporate social responsibility (CSR) based on corporate priorities, strengths and abilities, firms can develop socially and fiscally responsible solutions to current CSR issues, which will provide operational and competitive advantages. We agree that an effective approach to CSR includes a mapping of strategy, risk and opportunity. However, we also caution that the identification of these to the exclusion of (...) societal input may not be to the corporation's advantage. Instead, an investment in both strategic analysis and social capital can pay off from a social and an organizational standpoint. Compared with their larger counterparts, small- and medium-sized enterprises (SMEs) frequently have stronger relationships with their internal and external stakeholders that foster the development of social capital. As such, we believe that the sector offers a unique opportunity to identify additional models and frameworks in order to approach a strategic CSR model as espoused by Porter and Kramer. This paper explores a case study of one Canadian SME that uses a community development framework called Asset Based Community Development (ABCD) for its CSR programming. Because ABCD relies heavily on the development and maintenance of social capital and can be utilized to attain set objectives, we propose that it provides a supplementary framework through which the arguments of Porter and Kramer can be expanded. In applying the ABCD framework for CSR, we can begin to establish a programme that supports strategy, integrates employees and stakeholders towards a common vision, and creates unique and sustainable alternatives towards the resolution of social and corporate goals. (shrink)

Are corporate codes of ethics necessarily ethical? To challenge this notion, an initial set of universal moral standards is proposed by which all corporate codes of ethics can be ethically evaluated. The set of universal moral standards includes: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship. By applying the six moral standards to four different stages of code development (i.e., content, creation, implementation, administration), a code of ethics for corporate (...) codes of ethics is constructed by which companies can be ethically audited for compliance. The newly proposed code of ethics for corporate codes of ethics was then applied to four large Canadian companies representing a variety of industries: telecommunications; banking, manufacturing, and high technology. The ethical audit of the four companies' ethics programs based on the proposed code indicates that all four companies have room to improve the ethical nature of their codes of ethics (i.e., content, creation, implementation, administration). (shrink)

Multinational corporations face a litany of challenges regarding ethical decision-making as they traverse new variables in each country they operate in. Presented here is a new approach to ethical decision-making research for multinational corporations with the inclusion of moral virtues, national culture, and a feedback mechanism. The new proposed model builds off of the existing work by Trevino’s Person-Situated Interactionist Model. Hofstede’s work on individual national culture characteristics is used to move the conversation forward by explaining the relationships between individual (...) moderators in Trevino’s model and the effect of national culture on them. The new proposed model recommends the inclusion of moral virtues, with honesty and integrity as examples, as individual moderators in the decision-making process based on previous work. It contributes to the literature by introducing moral virtues into traditional ethical decision-making process models and introduces a new variable with a feedback mechanism for future learning. The paper concludes with recommendations for the future direction of research for ethical decision-making models for multinational organizations. (shrink)

This paper proposes a systematic framework for the analysis of tensions in corporate sustainability. The framework is based on the emerging integrative view on corporate sustainability, which stresses the need for a simultaneous integration of economic, environmental and social dimensions without, a priori, emphasising one over any other. The integrative view presupposes that firms need to accept tensions in corporate sustainability and pursue different sustainability aspects simultaneously even if they seem to contradict each other. The framework (...) proposed in this paper goes beyond the traditional triad of economic, environmental and social dimensions and argues that tensions in corporate sustainability occur between different levels, in change processes and within a temporal and spatial context. The framework provides vital groundwork for managing tensions in corporate sustainability based on paradox strategies. The paper then applies the framework to identify and characterise four selected tensions and illustrates how key approaches from the literature on strategic contradictions, tensions and paradoxes—i.e., acceptance and resolution strategies—can be used to manage these tensions. Thereby, it refines the emerging literature on the integrative view for the management of tensions in corporate sustainability. The framework also provides managers with a better understanding of tensions in corporate sustainability and enables them to embrace these tensions in their decision making. (shrink)

Very little has been done to find out what corporations have done to build ethical values into their organizations. In this report on a survey of 1984 Fortune 1000 industrial and service companies the Center for Business Ethics reveals some facts regarding codes of ethics, ethics committees, social audits, ethics training programs, boards of directors, and other areas where corporations might institutionalize ethics. Based on the survey, the Center for Business Ethics is (...) convinced that corporations are beginning to take steps to institutionalize ethics, while recognizing that in most cases more specific mechanisms and strategies need to be implemented to make their ethics efforts truly effective. (shrink)

The aim of the paper is to study the stages of development of corporate responsibility global standards and initiatives based on the development of integratednetworked governance. I propose a matrix based on four development stages built along a continuum and in crescendo collaboration among different global standards and multistakeholder initiatives. The research is based on the concept of the analysis of the integrated networked governance on an analysis of the Global Action Network (Waddell, 2011).

This research aims at exploring the status of integrating Education for Sustainable Development (ESD) in higher management education in the Arab region. The universities in the Arab region have lately emphasized internationalization in their educational policies, aiming at improving their regional and global presence, as a major part of their national reforms. Such transformations will never take hold if education systems are not reformed to foster citizenship, ethics, and social responsibility. Therefore, the study adopted qualitative content analysis of the (...) top 40 business schools that are ranked based on the Quacquarelli Symonds (QS) University Rankings in the Arab Region in 2016, as well as schools acting as signatories of the United Nations Principles for Responsible Management Education (PRME). To analyze the integration of ESD at all educational levels, the relevant literature commonly emphasized upon the adoption of Ethics, Corporate Social Responsibility, and Sustainability (ECSRS). Hence, the content analysis involved critical identification of pre-selected keywords under the ECSRS theme throughout the sampled universities’ online content and “Sharing Information on Progress” reports, in light of institutional, curricular, and instrumental levels, expanding the work of Setó-Pamies and Papaoikomomou (2016). The results revealed that ECSRS is outlined in the sampled universities’ strategies mainly through their mission statements. ECSRS is incorporated to a great extent in the curriculum of undergraduate and postgraduate programs in the form of obligatory and elective courses. Yet, student extracurricular activities did not receive equivalent devotion. As for ECSRS research, over half of sampled universities had dedicated research centers mainly focusing on environmental sustainability, in addition to issuing sporadic publications on various ECSRS topics. Integrating ECSRS in university outreach is still considered marginalized. (shrink)

Companies offer ethics codes and training to increase employees’ ethical conduct. These programs can also enhance individual work attitudes because ethical organizations are typically valued. Socially responsible companies are likely viewed as ethical organizations and should therefore prompt similar employee job responses. Using survey information collected from 313 business professionals, this exploratory study proposed that perceived corporate social responsibility would mediate the positive relationships between ethics codes/training and job satisfaction. Results indicated that corporate social responsibility (...) fully or partially mediated the positive associations between four ethics program variables and individual job satisfaction, suggesting that companies might better manage employees’ ethical perceptions and work attitudes with multiple policies, an approach endorsed in the ethics literature. (shrink)

. In this paper, we consider the nature of recent corporate abuses both in the U.S. and in Europe, and how globalization has had an impact on amplifying their consequences. We discuss the rules-based and principles-based remedies that have been proposed in each region, respectively. With a focus on the U.S. Sarbanes-Oxley Act (SOA), we examine the principles forwarded by this act, and how it addresses those principles with specific rules and governance mechanisms. Invoking Integrative Social Contracts (...) Theory (ISCT), we conclude with a reconciliation of the principles and rules-based approaches to corporate governance as suggested by theory. (shrink)

In recent years, much discussion has taken place regarding the social role of firms and their responsibilities to society. In this context, the role of universities is crucial, as it may shape management students’ attitudes and provide them with the necessary knowledge, skills and critical analysis to make decisions as consumers and future professionals. We emphasise that universities are multi-level learning environments, so there is a need to look beyond formal curricular content and pay more attention to implicit dimensions of (...) the learning process in order to create significant learning. With this in mind, we propose an integrative and holistic approach to guide the integration of ethics, corporate social responsibility and sustainability in management education that aims to improve students’ knowledge and attitudes. In this model, we consider three interdependent levels of analysis–the institutional level, the curricular level and the instrumental level–which together produce a leverage effect on student learning. For each level, we identify the main issues and aspects that need to be considered, based on an extensive literature review in this field. (shrink)

Board composition, insider participation on compensation committees, and director compensation practices can potentially cause conflicts of interest between directors and shareholders. If these corporate governance structures result in situations where actions beneficial to directors do not also benefit shareholders, then shareholders may suffer.Corporate ethics programs usually address conflicts of interest that may arise in the firm''s activities. Some boards of directors take active roles in their firms'' ethics programs by actively overseeing the programs. (...) This paper empirically examines the relationship between ethics programs and potential conflicts of interest and the relationship between board involvement in a firm''s ethics program and potential conflicts of interest. (shrink)

Companies offer ethics codes and training to increase employees' ethical conduct. These programs can also enhance individual work attitudes because ethical organizations are typically valued. Socially responsible companies are likely viewed as ethical organizations and should therefore prompt similar employee job responses. Using survey information collected from 313 business professionals, this exploratory study proposed that perceived corporate social responsibility would mediate the positive relationships between ethics codes/training and job satisfaction. Results indicated that corporate social responsibility (...) fully or partially mediated the positive associations between four ethics program variables and individual job satisfaction, suggesting that companies might better manage employees' ethical perceptions and work attitudes with multiple policies, an approach endorsed in the ethics literature. (shrink)

Writing in the Business and Politics, Santos and Laczniak (Business and Politics 14(1) 2012) formulated a normative, ethical approach to be followed when marketers e ngage impoverished market segments. It is labeled the integrative justice model (IJM). As noted below, that approach called for authentic engagement, co-creation, and customer interest representation, among other elements, when transacting with vulnerable market segments. Basically, the IJM derived certain operational virtues, implied by moral philosophy, to be used when marketing to the poor. But this (...) well-intentioned approach raises a significant “So what?” question. Are such sentiments anything but lofty aspirations for idealists or are there steps to be taken by society and business managers of goodwill to make the adaptation of the IJM by corporations more likely and pragmatic? This paper begins to layout a roadmap that shows “how and why” the IJM might more likely be vitalized. The crux, as described below, is found in the transformational justice dimensions that are embedded in institutions (and supporting institutional arrangements); such external institutions provide a “power” impetus to assure the ethical rights claims that impoverished consumers have owed to them. In this way, the ideal exchange characteristics for bottom (or base) of the pyramid (BoP) markets argued for in the IJM can become actively transformational. The main contribution of this paper is that it begins to chart out the institutional system elements that need to exercise power in order to deliver a “fairer” marketplace for BoP consumers. (shrink)

In this article we discuss what are the implications for improving the design of corporate ethics programs, if we focus on the moral motivation accounts offered by main ethical theories. Virtue ethics, deontological ethics and utilitarianism offer different criteria of judgment to face moral dilemmas: Aristotle's virtues of character, Kant's categorical imperative, and Mill's greatest happiness principle are, respectively, their criteria to answer the question "What is the right thing to do?" We look at ethical (...) theories from a different perspective: the question we ask is "Why should I do the right thing?" In other words, we deal with the problem of moral motivation, and we examine the different rationale the main ethical theories provide. We then point out the relation between moral motivation and the concept of rationality in the different approaches - is acting morally seen as an expression of rational behavior? Our analysis of moral motivation provides a useful framework to improve the understanding of the relationships between formal and informal elements of corporate ethics programs, emphasizing the importance of the latter, often overlooked in compliance-focused programs. We conclude by suggesting that the concept of moral imagination can provide a unifying approach to enhance the effectiveness of corporate ethics programs, by providing an intangible asset that supports the implementation of their formal components into management decision making. (shrink)

Ethical training in graduate programs is an important part of the professional development process. Such training has taken a position of prominence in both counseling and clinical psychology but seems to be lagging behind in the field of sport psychology. A debate exists about whether such training is necessary and, if so, how it should be provided. An important step in better understanding these issues is to identify how such training is currently taking place. This study surveyed the program (...) directors of sport psychology programs listed in the Directory of Graduate Programs in Applied Sport Psychology about the ethical training that takes place in their programs and their perceptions of the preparedness of the students in their programs. Of those contacted, 54% responded to the e-mail based survey. The results from these respondents indicated that 64.4% of programs require training in ethics and that the training was most commonly integrated into other nonethics courses. Overall, respondents did not feel as if students were completely prepared for either the ethical or legal issues that they will face in their professional careers. The importance of ethical training and suggestions for improving ethical training are discussed. (shrink)

Ethics have taken a center stage in business curriculum development over the past 5 years. Sustainable business practices are an important issue when it comes to adequately educating the next generation of marketing professionals. A variety of approaches in how to achieve such goals have been proposed as ideal methodologies. This paper presents a case study on curriculum development for a study abroad trip in Cambodia for marketing students. Furthermore, this article represents one method to incorporate the role of (...) NGOs in international business into business ethics courses. Results show that values-based curriculum serve as an appropriate learning pedagogy for the advancement of ethics in business educational scenarios. Through the use of values-based format, results demonstrate that when students are presented in constructive ethical situations it induces critical self-reflection necessary for more effective ethics education. Furthermore, with the additional cross-cultural component of the research design, students were also exposed to ethics as a component of culture. The current study extends both the pedagogy and ontological development and application of ethics education, specifically, the values-based curriculum providing a pragmatic approach to ethics teachings, and also presents an empirical study of how to integrate NGOs into international business educational platforms. (shrink)

Ethical training in graduate programs is an important part of the professional development process. Such training has taken a position of prominence in both counseling and clinical psychology but seems to be lagging behind in the field of sport psychology. A debate exists about whether such training is necessary and, if so, how it should be provided. An important step in better understanding these issues is to identify how such training is currently taking place. This study surveyed the program (...) directors of sport psychology programs listed in the Directory of Graduate Programs in Applied Sport Psychology (Burke, Sachs, & Schrader, 2002) about the ethical training that takes place in their programs and their perceptions of the preparedness of the students in their programs. Of those contacted, 54% (n = 47) responded to the e-mail based survey. The results from these respondents indicated that 64.4% of programs require training in ethics and that the training was most commonly integrated into other nonethics courses. Overall, respondents did not feel as if students were completely prepared for either the ethical or legal issues that they will face in their professional careers. The importance of ethical training and suggestions for improving ethical training are discussed. (shrink)

Ethical training in graduate programs is an important part of the professional development process. Such training has taken a position of prominence in both counseling and clinical psychology but seems to be lagging behind in the field of sport psychology. A debate exists about whether such training is necessary and, if so, how it should be provided. An important step in better understanding these issues is to identify how such training is currently taking place. This study surveyed the program (...) directors of sport psychology programs listed in the Directory of Graduate Programs in Applied Sport Psychology (Burke, Sachs, & Schrader, 2002) about the ethical training that takes place in their programs and their perceptions of the preparedness of the students in their programs. Of those contacted, 54% (n = 47) responded to the e-mail based survey. The results from these respondents indicated that 64.4% of programs require training in ethics and that the training was most commonly integrated into other nonethics courses. Overall, respondents did not feel as if students were completely prepared for either the ethical or legal issues that they will face in their professional careers. The importance of ethical training and suggestions for improving ethical training are discussed. (shrink)

Why and how does a multinational corporation adapt its strategy and organizational capabilities to address markets at the base of the pyramid? This paper builds on the results of a 3-year action research program conducted with Lafarge, a global building materials company, during which it started to consider the BOP segment as a strategic business opportunity. The article shows how pilot projects and global action networks created as part of the action research in the Indonesian subsidiary and the firm’s head (...) office contributed to this change. The paper then discusses the implications of BOP strategies in terms of organizational capabilities. (shrink)