Improving corporate governance, business sustainability, and accountability for business organizations appears to be a global trend. Society is holding public companies responsible and accountable for their business activities and their financial reporting process. The public, regulators, accounting profession, and academic community are also taking a closer look at colleges and universities to find ways to hold these institutions more accountable for achieving their mission of providing higher education with relevant curriculum. Three areas that have recently (...) received long-awaited attention are business sustainability, professional ethics, and corporate governance. Business schools play an important and everlasting role in preparing the next generation of business leaders who possess life-long education and training of acting with integrity and upholding the highest level of ethical conduct and the heavy burden of public trust. These next generations of business leaders must understand the importance of ethical conduct, business sustainability and corporate governance corporations to our society and the complexity of financial reporting. Thus, business curriculum must reflect promotion of ethical behavior, professional accountability, and personal integrity taught to business students. Corporate governance, business sustainability, ethics including accountability, integrity, and transparency must be integrated throughout the business curriculum. The book is organized into three modules. Module I presents business sustainability, its importance, five dimensions of business sustainability performance including economic, governance, social, ethics and environmental (EGSEE), sustainability reporting and assurance and sustainability research and education. Module II provides the emergence of corporate governance, a framework for discussion of important functions of corporate governance including oversight, managerial, compliance, advisory, auditing, and monitoring as well as and integrating corporate governance into accounting research and business curricula. Module III discusses the importance of business and professional ethics, workplace ethics and trends in ethics research and education. (shrink)

The recent prominence of corporate governance was sparked by a decline in trust in business that followed on some spectacular corporate scandals. There is an expectation that adherence to the standards of good corporate governance can restore trust in business. This article examines the link between corporate governance and trust and finds that at least theoretically there is a positive correlation between corporate governance and trust in business. It (...) is however argued that not any form or model of corporate governance will enhance trust in business. An appropriate balance needs to be struck between a number of polarities that exist in the corporate governance reform agenda. Three such polarities are explored and the nature of the balance that needs to be found with regard to each of these sets of polarities is outlined. (shrink)

Volume 1. Perspectives -- Volume 2. Pragmatics.

. American businesses and corporate executives are faced with a serious problem the loss of public confidence. Public criticism, increased government controls, and growing expectations for improved financial performance and accountability have accompanied this decline in trust. Traditional approaches to corporate governance, typified by agency theory and stakeholder theory, have been expensive to direct and have focused on short-term profits and organizational systems that fail to achieve desired results. We explain why the organizational governance theories are (...) fundamentally, inadequate to build trust. We advance a conceptual framework based on stewardship theory characterized by “covenantal relationships” and argue that design of governance mechanisms using a covenantal approach is more effective in building trust in organizations. A covenantal relationship is a specialized form of a relational contract between an employee and his or her organization. We argue that regardless of incentives and control mechanisms carefully designed through contractual mechanisms, in the absence of covenantal relationships it is extremely difficult to build trust within organizations. We propose that organizations are more likely to build trust – both at the organizational level and at the interpersonal level – when they create reinforcing and integrated systems that honor implied duties of “covenantal relationships.”. (shrink)

There are various indications that corporations and their leaders are currently not perceived as trustworthy. This decline in trust is one of the factors that has contributed to the rise of interest in corporate governance. There is an explicit expectation that an adherence to the principles and practice of good corporate governance will bolster the trust of stakeholders in business. It is exactly this expectation that provides the focus for this article. The expectation that good (...) corporate governance will result in higher levels of trust will be critically examined. This will be done by first making some crucial distinctions regarding corporate governance in order to clarify what kind of corporate governance is at stake in the examination that is to follow. Also, with regard to the concept of 'trust', a number of important distinctions will be made to clarify what is meant by trust within the context of this paper. Against the backdrop of these distinctions regarding corporate governance and trust, the question will then be refined as to whether, specifically, internal corporate governance can bolster the perceptions of trustworthiness that stakeholders have of business. Principles and practices of internal corporate governance will then be critically examined to determine their potential for enhancing stakeholders' perceptions of the trustworthiness of corporations and their leaders. (shrink)

This paper discusses corporate governance issues from a compliance viewpoint. It makes a distinction between legal and ethical compliance mechanisms and shows that the former has clearly proven to be inadequate as it lacks the moral firepower to restore confidence and the ability to build trust. The concepts of freedom of indifference and freedom for excellence provide a theoretical basis for explaining why legal compliance mechanisms are insufficient in dealing with fraudulent practices and may not be addressing the (...) real and fundamental issues that inspire ethical behavior. The tendency to overemphasize legal compliance mechanisms may result in an attempt to substitute accountability for responsibility and may also result in an attempt to legislate morality which consequently leads to legal absolutism. The current environment of failures of corporate responsibility are not only failures of legal compliance, but more fundamentally failures to do the right (ethical) thing. (shrink)

This paper is a response to a recent colloquy among Professors David Messick, Donna Wold, and Edwin Harman. I defend Messick’s naturalist methodology, which suggests that people inherently categorize others and act altruistically toward certain people in a given person’s in-group. This paper suggests that an anthropological reason for this grouping tendency is a limited human neural ability to process large numbers of relationships. But because human beings also have the ability to modify, to some extent, their nature, corporate (...) law can organize small mediating institutions within large corporations in order to take ethical advantage of this groupingtendency. Within a corporate law taking seriously a mediating institution’s formulation of business communities, a virtue ethicsapproach can be integrated with a naturalist approach in a way that fosters ethical business behavior while mitigating the dangers of ingrouping tendencies. (shrink)

Corporate governance has resurfaced as a topic in the ongoing financial crises. This article frames the debate on corporate governance within the ongoing concerns about the corporate role in wider societal governance. It then maps out the context of the six scholarly contributions in this special issue by highlighting how the current debate moves towards a closer integration of governance at corporate and societal level.

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 article presents a theorized and conceptually informed method for the undertaking of an ethics audit organization. At an operational level, the overall integrity of an organization, it is argued, may be evaluated through the application of a conceptual frame-work that embraces the inter-related themes of individual responsibility, social equity and political responsibility. Finally, a method is presented for ethics audit which was developed in the auditing of a national public sector sports organization: sportscotland. This emphasizes the significance (...) of key personnel (individuals and in groups) in producing and reproducing the organizational ethos, whilst recognizing the importance of anonymity and confidentiality throughout the process. The theoretical terrain of the ethics audit is articulated through a consideration of ethics as applied moral philosophy, equity as social justice and corporate governance as the moral health (or otherwise) of a public sector sports organization. (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)

Although much has been written globally about the key issues of corporate governance in REITs, there are not enough studies inspired by the systematic literature review method. This study reviews the literature on corporate governance in real estate investment trusts (REITs) published after 2004 and addresses three interrelated research questions. We examined 77 peer-reviewed journal articles using a systematic literature review approach. We found that there has been a rise in studies since 2010, with a brief (...) decrease in 2015 and 2017 before increasing again in 2016. Moreover, the vast majority of the studies were published in the areas of economics/econometrics/finance and business/management/accounting. In addition, most of the papers are single-country studies, and the minority are multi-country. The majority of the papers are focused on the USA and Asia. Similarly, the majority of these analyses concentrate on developed countries and ignore emerging and frontier markets.Keywordscorporate governance, real estate investment trusts, REITs, systematic literature review, SLR. (shrink)

Abstract:Shareholders’ relationship to the firm is a central theme in corporate governance, yet the investors’ perspective has been virtually ignored in governance research. This paper attempts to explain the previously unexplored role of trust in the investor decision-making process. The proposed model suggests that trust acts as the antecedent of the risk variable in existing investor decision-making models. Stock ownership involves both financial and ethical risk, which by definition requires some level of implicit trust in management and (...) the market. (shrink)

Multinational corporations dominate the global business arena, but new expectations for MNC boards call to question how they might effectively manage global stakeholder relationships in this new era of accountability. Uniting political behavior theory, which describes a board’s international political orientation, and global operating governance systems outlining a set of board behaviors, we develop a typology of four types of boards. We then provide recommendations for the development of an integrative governance structure, taking into account the mechanisms, (...) structure, endorsements, and codes of conduct that MNCs can use to promote ethical behavior across MNC horizons. (shrink)

Abstract:Shareholders’ relationship to the firm is a central theme in corporate governance, yet the investors’ perspective has been virtually ignored in governance research. This paper attempts to explain the previously unexplored role of trust in the investor decision-making process. The proposed model suggests that trust acts as the antecedent of the risk variable in existing investor decision-making models. Stock ownership involves both financial and ethical risk, which by definition requires some level of implicit trust in management and (...) the market. (shrink)

This book argues that ethical business behavior can be enhanced by taking fuller account of human nature, particularly with respect to the need for creating relatively small communities within the corporation. Timothy Fort discusses this premise in relation to the three predominant theories of business ethics--stakeholder, virtue, and contract. Drawing heavily from philosophy, he analyzes traditional business ethics and legal theory. Overall, his work provides a good example of how to integrate normative and empirical studies (...) in business ethics, a task that often receives substantial discussion in academic journals. (shrink)

This paper seeks to explore the implementation of corporate ethical culture and policies as an adjunct to formal forms of corporate governance. The insurance industry utilises a variety of external governance structures, but is almost unique in that stock companies (which are exposed to an external market for corporate control) and mutual companies (which are owned by a subset of their customers) are in active competition. A questionnaire survey of senior executives in U.K. insurance companies (...) was undertaken to explore the implementation of ethical policies and codes, to investigate ethical attitudes, and to analyze the extent to which these policies and attitudes varied among companies. The results suggest that ethical policies have a higher profile and ethical attitudes and behaviour are more positive in mutual as opposed to stock insurance companies. These findings support the contention that a strong corporate ethical culture may be utilised to enhance formal corporate governance instruments. (shrink)

The key concept in Business Ethics has changed from ‘corporate social responsibility’ to ‘integrated risk‐management’. This change, first wrought by American laws, has been extended to other countries through globalization. The most important laws concern corruption, anti‐trust, consumer safety, environmental protection and insider‐trading. The ‘Federal Corporate Sentencing Guidelines’ have particularly been helpful in identifying and valuing business risks. The author proposes a ‘next‐generation’ Business Ethics integrating personal, professional and organizational ethics in the (...) context of an institutionalized, country‐sensitive ‘corporate culture’. (shrink)

Recent academic articles point to an increased vagueness and overlap in concepts related to business ethics and corporate responsibility. Further, the perception of these notions can differ in the smallbusiness world from the original academic definitions. This article focuses on the cognition of small-business owner-managers. Given the impact of small-business owner-managers on their ventures, corporate responsibility and ethical issues can take a different route in SMEs. The small-business owner-manager is able to shape the (...) corporate culture and to enact values other than profit. Adopting a cognitive perspective, we have identified how the small-business owner-manager makes sense of notions linked to corporate social responsibility (CSR) and business ethics. The concept of sensemaking has recently been applied to CSR (Basu and Pallazzo, 2008; Cramer et al., 2006). Applying a cognitive perspective to small-business owners may help in explaining specific phenomena found within smallbusiness ownership. For this research, the Repertory Grid Technique (RGT) is used, a method that has not previously been widely applied in the business and society field. Our findings to an extent invalidate the confusion in terminology found in the academic literature. Smallbusiness owner-managers, pragmatically and rather clearly, differentiate among the various concepts related to corporate responsibility and business ethics but, at the same time, they recognise the interrelationships and interdependencies of these concepts. These findings contribute to a better understanding of how small-business owners think and integrate corporate responsibility and ethical issues into their decisionmaking. (shrink)

Is business ethics a contradiction in terms? Absolutely not, says Robert Solomon. In fact, he maintains that sound ethics is a necessary precondition of any long-term business enterprise, and that excellence in business must exist on the foundation of values that most of us hold dear. Drawing on twenty years of experience consulting with major corporations on ethics, Solomon clarifies the difficult ethical choices all people in business are faced with from time to (...) time. He takes an "Aristotelian" approach to ethical questions, reminding readers that a corporation--like an individual--is embedded in a community, and that corporate values such as fairness and honesty are meaningless until transformed into action. Values--coupled with action--become virtues, and virtues make possible any good business corporate relationship. Without a base of shared values, trust and mutual benefits, today's national and international business world will fall apart. In keeping with his conviction that virtue and profit must thrive together, Solomon both examines the ways in which deficient values actually destroy businesses, and debunks the pervasive myths that encourage unethical business practices. Complete with a working catalog of virtues designed to illustrate the importance of integrity in any business situation, this compelling handbook contains a goldmine of wisdom for either the small business manager or the corporate executive struggling with ethical issues. (shrink)

Abstract:Social contracting has a long and important place in the history of political philosophy (Hardin, 1991; Waldron, 1989) and as a theory of justice (Baynes, 1989; Rawls, 1971). More recently, it has been developed into an individual rights-based theory of organizations (Keeley, 1980, 1988), and as a way to integrate ethics and moral legitimacy into corporate strategy and action (Donaldson, 1982; Freeman&Gilbert, 1988). Currently, it is being proposed as an integrative theory of economic ethics (Donaldson&Dunfee, forthcoming). This (...) paper will extend the Donaldson and Dunfee approach by arguing thatsocial contracting can best be understood and applied in organizational settings if it is perceived and treated as a network governance process. This insight can benefit management scholars and practitioners alike, since it calls attention to the processes by which trust is created and sustained in on-going contractual relationships. It also strongly suggests that a new approach to applying managerial discretion, asmoral agency, is needed to realize the full competitive and ethical potential of emerging network forms. (shrink)

The economic globalization process has integrated different competitive markets and pushes firms in different countries to improve their managerial and operational efficiencies. Given the recent empirical evidence for the benefits to firms and stakeholders of good corporate governance (CG) practice, it is expected that good CG practice would be a common strategy for firms in different countries to meet the increasingly intense competition; however, this is not the case. This study examines the differences in CG practices in firms (...) across different countries using the concept of ethical sensitivity. Through the regression analysis of 271 firms in 12 countries and regions, it is found that Hofstede’s cultural dimensions can explain the differences in CG practices. Furthermore, the results demonstrate the influence of culture on ethical sensitivity, which eventually determines the CG practices in different regions. (shrink)

This conceptual article introduces behavioral perspectives into the governance arena and undertakes a psychological assessment of managerial decision making in organizations by elaborating on the treatment of trust and pride in the extant literature. While trust is conceived by governance scholars as a device for monitoring relationships with others, we argue that authentic pride, contrary to hubris, could operate as an attribute of emotional self-regulation allowing corporate leaders to govern the social behavior of their own self. Contrasting (...) the features of trust and authentic pride, we advance several propositions to capture their relevance and simultaneous importance as viable governance mechanisms in light of a manager's level of cognitive moral reasoning. Our study builds a unified theoretical framework of governance which integrates human agency, psychological states, and moral judgment to foster a deeper understanding of complex self-regulatory processes that are activated by decision makers in the execution of their roles. (shrink)

Increasingly many business practitioners and academics are turning to religious sources as a way of approaching and answering difficult questions related to business ethics. There now exists a relatively large literature which attempts to integrate business decisions and religious values. The integration, however, is not without difficulties. For many, religious ethics provides the basis and the ultimate authority for a morally meaningful life. Yet, at the same time, in certain contexts, it is often inappropriate to (...) rely and to publicly justify action on the basis of these ethics. With this difficulty in mind, the main goal of this paper is to answer the following specific question: Is a religiously grounded business ethics consistent with the idea of political liberalism? While this question is fundamental and straight-forward, to date it has received little, if any, careful attention. The characterization of business corporations as quasi-public, discussed in the body of the paper, implies that political liberalism may dictate that there exist situations in which invoking religious business ethics is inappropriate. The point is that once one removes the assumption of business as a purely private matter, the justification of a religiously grounded ethics in the context of a politically liberal democracy becomes problematic. On the other hand, such an assumption should not be taken to imply that all religiously grounded business ethics are always inappropriate. As this paper demonstrates, it is far from obvious that even government officials need observe a complete separation between religion and state in formulating, justifying, or expressing public policies, even policies leading to so-called coercive results. If so, it follows that managers of quasi-public institutions may, under appropriate and limited circumstances, invoke and rely upon a religious, albeit private, world-view. (shrink)

The paper contrasts the economic, ethical, and organizational differences in the U.S. and Europe, as well as the differences in governance and leadership between U.S. and European managers, and how these differences impact decision-making and governance of U.S. and European businesses. In addition, the paper explores and contrasts select ethical and cultural issues between managers on both sides of the Atlantic. It is the authors' view that on both sides of the Atlantic we embrace the call for more (...) ethics in our lives and we expect it from our business leaders and our business dealings. However, in the markets we consistently have seen a short-term orientation of corporate outcomes. It is hoped that there will be a silver lining to the current economic crisis that will help move us away from this position which makes things like ethics, long-term virtues, fairness, all nice to talk about but somewhat estranged from the realities that are practiced in businesses. It remains to be seen if U.S. organizations, business schools and business leaders will change this current position more rapidly than in Europe. The authors are confident, however, that businesses and governments on both sides of the Atlantic will make all efforts for a pronounced transition to integrate ethics into the real strategic thrusts of conducting business. (shrink)

Current research on corporate social responsibility (CSR) illustrates the growing sense of discord surrounding the ‘business of doing good’ (Dobers and Springett, Corp Soc Responsib Environ Manage 17(2):63–69, 2010). Central to these concerns is that CSR risks becoming an over-simplified and peripheral part of corporate strategy. Rather than transforming the dominant corporate discourse, it is argued that CSR and related concepts are limited to “emancipatory rhetoric…defined by narrow business interests and serve to curtail interests of (...) external stakeholders.” (Banerjee, Crit Sociol 34(1):52, 2008). The paper addresses gaps in the literature and challenges current thinking on corporate governance and CSR by offering a new conceptual framework that responds to the concerns of researchers and practitioners. The limited focus of existing analyses is extended by a holistic approach to corporate governance and social responsibility that integrates company, shareholder and wider stakeholder concerns. A defensive stance is avoided by delineating key stages of the governance process and aligning profit centred and social responsibility concerns to produce a business-based rationale for minimising risk and mainstreaming CSR. (shrink)

ABSTRACT:The major aim of this article is to show that John Rawls’s theory of justice cannot be applied effectively to questions of business ethics and corporate governance. I begin with a reading of Rawls that emphasizes both the critical and pragmatic nature of his theory. In the second section I look more closely at the notion of society’s “basic structure” and its place within Rawls’s theory. In the third section, I argue that “the corporation” cannot be (...) understood as part of this basic structure and is not, therefore, a subject of justice for Rawls or his interpreters. Finally, I show that Rawls’s inability to speak to the corporation is a weakness, regardless of one’s particular view on the corporation. I conclude by considering what Rawls’s theory helps us to understand about the problems involved in integrating corporate governance, business ethics, and political philosophy. (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)

The author critiques the expedient application of market valuation principles by the transnational corporations and other large firms in the Indian pharmaceutical industry on a number of issues like patents, pricing, irrational drugs, clinical trials, etc. He contends that ethics in business is chiseled and etched within the confines of particular social structures of accumulation. An ascendant neo-liberal social structure of accumulation has basically shaped these firms' sharp opposition to the Indian Patents Act, 1970, government administered pricing, etc. (...) The author contends that the practice of neo-liberal economics is strongly associated with a "one dimensional" ethics that privileges market valuation principles over all others. This seems to inevitably generate a social counter-movement that struggles for social protections. He critiques neo-liberal business practices from a perspective that derives from the work of the economic anthropologist Karl Polanyi. Before the present phase of liberalization in India, markets were "managed", but without a "welfare state" in place. Moving toward deregulation of the markets without a welfare state in place is unethical. Keeping the debilities of the institutional framework of public policy in mind, the author adopts a Polanyian perspective that places its trust and hope in the growing social legitimacy of the counter-movement in opposition to both neo-liberal business practices and the degenerate behavior of state agencies. (shrink)

Recent evidence readily confirms that ethical conduct in human interaction has declined in the context of business, but also in virtually every phase of life. An alarming number of government leaders at all levels have demonstrated by their conduct that their primary goal is the pursuit of self-interest for themselves, their party, and their constituents - regardless of whether the choices they make are in the long-term best interests of those whom they are obligated to serve. Academic institutions and (...) their leaders similarly seem to be either tied to past assumptions and traditions that seem, or blatantly out of touch with the needs of their students and the communities that they serve. Increasingly, college and university academic programs are being taught by part-time and temporary faculty who are paid less than their elementary and high school counterparts who lack their educational preparation, level of knowledge, or responsibility in preparing students for their chosen careers. Non-governmental organizations also struggle to earn the respect of the public, and their trustworthiness has been called into question as chief executive officers and staff receive high salaries, but lack accountability for achieving results or acting with integrity. Those who work in the media are as a group no longer trusted to provide an objective and unbiased assessment of the news. Even religious institutions are under attack and their leaders are being asked to be accountable to the standards which their doctrines advocate. Implicit in ethical conduct is the responsibility to identify the far goals of human achievement - rather than short-term interests that undermine long-term value creation and outcomes that best serve society. Abraham Maslow has wisely noted that the pursuit of efficiency must be evaluated in terms of the specific goals intended to be achieved, but the ramifications of individual and collective actions often seem to be out of focus, misdirected, and short-sighted. (shrink)

The Yearbook 2021 for Global Ethics, Compliance & Integrity offers an upto- date overview of the recent and most significant developments in the interdisciplinary area of organizational Ethics, Compliance & Integrity Management. The 2021 Yearbook focuses on (but is not limited to) integrity and ethics and consists of 40 highly valuable articles submitted by 55 experts. The authors include excellent ethics, compliance and integrity professionals, scholars and advisors from 20 different countries. As conceived, the publication offers (...) exclusive insights both from practical and theoretical perspectives. This year's edition consists of seven carefully arranged chapters dealing with governance and compliance management, integrity management, organizational ethics and culture, anti-bribery management, whistleblowing, the challenges of digitalization, and - last but not least - corporate incentives and sanctions. In each chapter, the yearbook provides a comprehensive range of views and expertise regarding Ethics, Compliance and Integrity in all kind of organizations. (shrink)

This book looks at business ethics from the perspective of the business practitioner, but with the rigour of the moral philosopher. Intended for introductory students of business, commerce and management studies, Business Ethics at Work begins by setting business clearly in the context of creating value for its owners, and develops a practical ethical decision model which can be simply and relevantly applied to the hard moral choices with which business people are (...) faced day to day. Against this background, some of the major ethical issues which arise in business are explored, for example, in human resource management, finance, marketing and advertising, the management of the environment and corporate governance. In conclusion the book looks at the nature of ethical audit and argues that for the business of the future, the identification of its ethical values and their integration into its policies and practices will be a crucial ingredient of success. (shrink)

This Paper identifies seven positive elements of an _ethics system_, or framework, for public officials - namely, (1) the culture and values prevailing in a country; (2) codes and laws and their enforcement; (3) new institutions to uphold ethics in public life; (4) audit, public accountability and openness; (5) guiding principles and motivation to encourage good conduct; (6) external and internal education and training for public life; and (7) the views of the public in regard to their call for (...) greater trust, honesty, and integrity in public life. The Paper next discusses in detail each of these seven elements of an _ethics system_ in the context of British Central Government. However, these seven elements are deemed appropriate for the Public Service of any country seeking to strengthen its standards of conduct and uphold its ethical responsibilities. Finally, this Paper concludes with a reference to business companies and the relevance to them of an _ethics system_. For example, there is a defence in the new UK Bribery Act of 2010 (to be implemented on 1st July 2011 and applicable also to foreign corporations doing business in the UK) that, if a business company has procedures in place to prevent corruption (that is, an _ethics system_), it will be treated more leniently. (shrink)

Management has the opportunity to promote self-serving accounting practices, such as earnings management, when management can effectively avoid oversight by the audit committee. This article investigates the effects of financial knowledge and dispositional trust on the ability of audit committee members to recognize management attempts to avoid full disclosure to the board and potentially deceive board members. The results of a controlled laboratory experiment with 40 experienced audit committee member participants indicate that: Audit committee members with less financial knowledge are (...) more likely to accept insufficient client explanations for accounting judgments than are more knowledgeable audit committee members; Audit committee members with less financial knowledge are more likely to reject sufficient client explanations for accounting judgments than are more knowledgeable audit committee members; and Audit committee members that place higher levels of trust in others are more likely to accept insufficient client explanations for accounting judgments than are less trusting committee members. (shrink)

The 46 original case studies featured in this book demonstrate that in many business sectors, local people and foreigners are responding to the challenges of achieving business success while competing with integrity. Cases are divided into eight sub-topics discussing internet and social media issues, labor issues, corporate social responsibility, product and food safety, Chinese suppliers and production, environmental issues, corporate governance, as well as business and society in China. Each case is followed by a (...) discussion section, with questions to prompt reflection. This book is a valuable resource for students of International Business and Management, as well as entrepreneurs and business managers working and doing business in China. (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)

The mainstream literature on corporate governance is based on the premise of conflicts of interest in a competitive game played by variously defined stakeholders and thus builds explicitly and/or implicitly on masculinist ethical theories. This article argues that insights from feminist ethics, and in particular ethics of care, can provide a different, yet relevant, lens through which to study corporate governance. Based on feminist ethical theories, the article conceptualises a governance model that is (...) different from the current normative orthodoxy. (shrink)

Contemporary business trends in Africa portray a spate of paradoxes in her socio-economic development. For instance, there is a rapid increase of international interventions and establishment of multinational corporations as a result of globalization; yet not much of this has been domesticated. Industrial and infrastructural developments are sprawled around us; yet unemployment is on the increase. While financial institutions and government agencies take capricious interests and levies in businesses; the human community and environment are left out in tatters. The (...) media advertises business via any means possible, ignoring questions about moral values of individual persons in the society as well as companies that drive the economy. These happenings, no doubt, raise genuine cause for concern as it threatens African indigenous morality. This is a pointer to the fact that there is something lacking. That desideratum is a unifying business ethic. This paper is a research that attempts to fill that ethical gap. It is considered that the philosophical concept of Ubuntu – an African traditional philosophy of social existence is essential. It supports and encourages integral human development, and as such can serve as an ethical ideal in an ever-dynamic business operation in Africa. (shrink)

This is an important collection of works, from an international team of authors, on corporate power and its justification and authority. It highlights the growing importance of corporate governance issues, an area which now has unprecedented coverage by the media in the commercial sector and is increasingly important in business schools.