Ethical decision-making descriptive theoretical models often conflict with each other and typically lack comprehensiveness. To address this deficiency, a revised EDM model is proposed that consolidates and attempts to bridge together the varying and sometimes directly conflicting propositions and perspectives that have been advanced. To do so, the paper is organized as follows. First, a review of the various theoretical models of EDM is provided. These models can generally be divided into rationalist-based ; and non-rationalist-based. Second, the proposed model, called (...) ‘Integrated Ethical Decision Making,’ is introduced in order to fill the gaps and bridge the current divide in EDM theory. The individual and situational factors as well as the process of the proposed model are then described. Third, the academic and managerial implications of the proposed model are discussed. Finally, the limitations of the proposed model are presented. (shrink)
Extrapolating from Carroll’s four domains of corporate social responsibility and Pyramid of CSR, an alternative approach to conceptualizing corporate social responsibility is proposed. A three-domain approach is presented in which the three core domains of economic, legal, and ethical responsibilities are depicted in a Venn model framework. The Venn framework yields seven CSR categories resulting from the overlap of the three core domains. Corporate examples are suggested and classified according to the new model, followed by a discussion of limitations and (...) teaching and research implications. (shrink)
Business codes are a widely used management instrument. Research into the effectiveness of business codes has, however, produced conflicting results. The main reasons for the divergent findings are: varying definitions of key terms; deficiencies in the empirical data and methodologies used; and a lack of theory. In this paper, we propose an integrated research model and suggest directions for future research.
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 study examines employee, managerial, and ethics officer perceptions regarding their companies codes of ethics. The study moves beyond examining the mere existence of a code of ethics to consider the role that code content and code process (i.e. creation, implementation, and administration) might play with respect to the effectiveness of codes in influencing behavior. Fifty-seven in-depth, semi-structured interviews of employees, managers, and ethics officers were conducted at four large Canadian companies. The factors viewed by respondents to be important with (...) respect to code effectiveness include: provisions of examples; readability; tone; relevance; realism; senior management support; training; reinforcement; living up to standards; reporting requirement; anonymous phone line; communicating violations; and enforcement. The factors found to be potentially important include: justification for provisions; employee involvement; and sign-off requirements. Factors found not to be important include: objectives for the code; prior distribution; testing; and relating ones performance review to compliance with the code. (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)
Business codes are a widely used management instrument. Research into the effectiveness of business codes has, however, produced conflicting results. The main reasons for the divergent findings are: varying definitions of key terms; deficiencies in the empirical data and methodologies used; and a lack of theory. In this paper, we propose an integrated research model and suggest directions for future research.
. 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 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)
This is an anthology that discusses issues in contemporary business ethics. The book presents the issues from different perspectives, encouraging students to think through topics and come to their own conclusions. It includes 69 readings and 23 cases.
There appears to be an implicit assumption by those connected with the ethical investment movement (e.g., ethical investment firms, individual investors, social investment organizations, academia, and the media), that ethical investment is in fact ethical. This paper will attempt to challenge the notion that the ethical mutual fund industry, as currently taking place, is acting in an ethical manner. Ethical issues such as the transparency of the funds and advertising are discussed. Ethical mutual fund screens such as tobacco, alcohol, gambling, (...) and the military are preliminarily examined to better determine whether they can actually be defined as "ethical" screens as opposed to merely social, political, or religious screens. A code of ethics for ethical investment is constructed by which ethical mutual fund firms can be audited for ethical compliance. (shrink)
Can or should God be considered a managerial stakeholder? While at first glance such a proposition might seem beyond the norms of stakeholder management theory or traditional management practice, further investigation suggests that there might be both theoretical and practical support for such a notion. This paper will make the argument that God both is and should be considered a managerial stakeholder for those businesspeople and business firms that accept that God exists and can affect the world. In doing so, (...) part one of the paper first discusses the growth of religion and spirituality within the business and academic communities. Part two raises several arguments based on stakeholder theory and business reality to support the notion of God as a managerial stakeholder. Part three addresses the arguments against God as a managerial stakeholder. Part four discusses the managerial implications of considering God as a managerial stakeholder. The paper concludes with its limitations. (shrink)
In November, 1991, the U.S. Congress enacted the U.S. Federal Sentencing Guidelines legislation which had a dramatic impact on corporate America. Can the Guidelines be used as a model or framework by other countries? Could other countries in the world benefit from adopting a similar piece of legislation? Are there any limitations to consider? In addressing these issues, the authors make the argument that the time has arrived for other countries to consider the development of legislation similar to the Guidelines (...) in order to improve organizational ethics. (shrink)
The paper explores the ongoing debate between the narrow version of CSR proposed by Milton Friedman and the broader version of CSR, which includes additional ethical and/or philanthropic obligations. Implications are then discussed.
Thomas W. Dunfee, in addition to his many other contributions to business ethics literature, has (along with several co-authors) generated a stream of research that attempts to tackle the issue of corruption. Dunfee's research on corruption includes three primary contributions: (1) the introduction of "Integrative Social Contract Theory" which provides a normative theoretical framework by which to judge the morality of global business activity including corruption; (2) the "C2 Principles" (Combating Corruption), which outline specific content and implementation measures that corporations (...) can voluntarily adopt to combat corruption; and (3) a normative evaluation of "guanxi," a concept which can lead to questionable corruption practices in China. The article will highlight Dunfee's contribution to the literature and suggest future research directions based on his academic work. (shrink)
Thomas W. Dunfee, in addition to his many other contributions to business ethics literature, has generated a stream of research that attempts to tackle the issue of corruption. Dunfee's research on corruption includes three primary contributions: the introduction of "Integrative Social Contract Theory" which provides a normative theoretical framework by which to judge the morality of global business activity including corruption; the "C2 Principles", which outline specific content and implementation measures that corporations can voluntarily adopt to combat corruption; and a (...) normative evaluation of "guanxi," a concept which can lead to questionable corruption practices in China. The article will highlight Dunfee's contribution to the literature and suggest future research directions based on his academic work. (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)
Whether the nation of Israel has become a “light unto the nations” in terms of ethical behavior among its business community remains in doubt. To examine the current state of business ethics in Israel, the study examines the following: (1) the extent of business ethics education in Israel; (2) the existence of formal corporate ethics program elements based on an annual survey of over 50 large Israeli corporations conducted over 5 years (2006–2010); and (3) perceptions of the state of business (...) ethics based on interviews conducted with 22 senior Israeli corporate executives. In general, and particularly as a young country, Israel might be considered to have made great improvements in the state of business ethics over the years. In terms of business ethics education, the vast majority of universities and colleges offer at least an elective course in business ethics. In terms of formal business ethics program elements, many large companies now have a code of ethics, and over time continue to add additional elements. Most respondents believed they worked in ethical firms. Despite these developments, however, there appears to be significant room for improvement, particularly in terms of issues like: nepotism/favoritism; discrimination; confidentiality; treatment of customers; advertising; competitive intelligence; whistle-blowing; worker health and safety; and the protection of the environment. When compared with the U.S. or Europe, most believed that Israeli firms and their agents were not as ethical in business. A number of reasons were suggested that might be affecting the state of business ethics in Israel. A series of recommendations were also provided on how firms can better encourage an ethical corporate culture. The paper concludes with its limitations. (shrink)
Food safety problems in China, such as deadly tainted milk, have attracted growing attention from a corporate social responsibility perspective. To examine the forces that potentially drive CSR behavior within the Chinese food industry, our study is organized as follows. First, a review is conducted on the unique history of CSR in China as well as some of the major Chinese food scandals that have taken place. The primary drivers of CSR in China that have been suggested in the literature (...) are then summarized. Next, new institutional theory perspectives are drawn upon to analyze three forces that potentially affect the behavior of Chinese firms: coercive isomorphism, mimetic processes, and normative pressures. Based on a questionnaire survey of 164 Chinese managers and employees, the CSR behavior of firms operating in the Chinese food industry is found to only be significantly affected by the institutional factor of normative pressures. The study concludes with its limitations as well as the implications of the findings. (shrink)
The term corporate social responsibility is often used in the boardroom, classroom, and political platform, but what does it really mean? Do corporations have ethical or philanthropic duties beyond their obligations to comply with the law? How does CSR relate to business ethics, stakeholder management, sustainability, and corporate citizenship? Mark Schwartz provides a concise, cutting-edge introduction to the topic, analyzing many case studies with the help of his innovative “Three Domain Approach” to CSR. _Corporate Social Responsibility_ also provides a chronology (...) of landmark contributions to the concept of CSR and includes CSR resources on organizations, global codes and criteria, corporate CSR reports, and websites and blogs. It is an invaluable resource for students, instructors, and business leaders looking to master the basics of CSR. (shrink)
This paper attempts to build on the contribution to moral imagination theory by Patricia Werhane by further integrating moral imagination with new theoretical developments that have taken place in the business ethics field. To accomplish this objective, part one will review the concept of moral imagination, from its definitional origins to its full theoretical conceptualization. Part two will provide a brief literature review of how moral imagination has been applied in empirical research. Part three will analyze and apply the construct (...) of moral imagination as it relates to the key process stages of ethical decision making including awareness, judgment, intention, and behavior. Immoral imagination is then discussed, along with other behavioral ethics concepts as they relate to moral imagination. The paper concludes with potential future research directions, as well as teaching and managerial implications for the moral imagination construct. (shrink)
This paper evaluates Porter and Kramer’s ‘creating shared value’ approach against the value, balance, and accountability business and society model proposed by Schwartz and Carroll. The analysis finds that while CSV potentially meets the requirement of creating value, their approach fails to properly address the balance and accountability elements of the VBA model. As a result, the CSV approach cannot presently be considered as an underpinning or overarching construct for the business and society field.
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 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)
When it comes to business ethics training, several alternative approaches are available. This study examines the use of one particular case, “The Difficult HiringDecision,” for training business executives as well as MBA students. The study finds that the process of analyzing the case can lead to new insights regarding the importance of business ethics and ethical values in a firm’s ethical corporate culture.
