This study investigated students’ perceptions of ethical organizational climates, attitudes towards ethical issues, and the perceived relationship between ethical behavior and success in business organizations. Comparisons were made between the attitudes of these future managers with previously published studies of Russian managers’ attitudes. A survey of 100 business students in three Moscow universities showed that their attitudes toward ethical behavior were more negative than those of Russian managers. No significant differences were found in the perceptions or attitudes of students who (...) had attended an ethics course and those that did not. The implications for both managers and researchers were reported. (shrink)

The paper is based on the New Institutional Economic Theory, which emphasizes institutions as a vital component in the creation of wealth and economic growth. It is widely accepted that formal institutions change rapidly through political and legislative decisions. Informal institutions are deeply embedded in customs, tradition and inherited behavioral norms. Thus, change comes at a very slow pace. This research is focused on the business ethics segment of informal institutions.The paper is based on the effects of institutional changes (...) on the position and the slope of demand curve for ethical business behavior. Business people faced with opportunity costs that influenced their behavior. Additional statistical analyses provide evidence of business ethics perception, which is more expressed in the group of managers than in the administration group. Behavior of the middle-aged population differs significantly in comparison to other groups when deciding on ethical dilemmas in real business situations.Cet article s’inspire de la Nouvelle Economie Institutionnelle qui met l’accent sur les institutions en tant que composante fondamentale du processus de création de richesses et de la croissance économique, Il est généralement reconnu que les institutions formelles se modifient rapidement sous l’impulsion de décisions politiques et législatives. Les institutions informelles, quant à elles, sont profondément ancrées dans les coutumes, les traditions, et les normes de comportement héritées d’anciennes générations. Ainsi, dans le cas de ces institutions, le changement est beaucoup plus lent. Cet article met l’accent sur l’éthique des affaires en tant qu’une des composantes des institutions formelles.Une des idées qui sous-tend l’article est l’analyse des effets des changements institutionnels sur la position et la pente de la courbe de demande pour des comportements éthiques dans les affaires. Les hommes d’affaires font face à des coûts d’opportunité qui influencent leur comportement. Des analyses statistiques supplémentaires donnent la preuve de la perception de l’éthique des affaires, perception qui est plus aiguë parmi les managers que parmi les administratifs. Le comportement de la population d’âge intermédiaire diffère de manière significative de celui des autres groupes face à des dilemmes éthiques que suscitent certaines situations concrètes du monde des affaires. (shrink)

This article theoretically proposes and empirically verifies an understudied issue in the business ethics and corporate social responsibility literature—how moral degradation in a society influences the relationship between BE or CSR and firm performance. Building on strategic choice theory, we propose that both BE and CSR become more important in enhancing business success when the perceived MD is heightened. Our analysis of 300 firms operating in China statistically confirms our hypotheses: first, under high MD, firms’ engagement in CSR results (...) in higher corporate legitimacy and competitive advantage, and second, their adherence to ethical business codes leads to higher corporate legitimacy. We conclude the article by outlining the implications for both theory and practice. (shrink)

"Small treasuries" (xiaojinku) are off-book accounts found in many large enterprises in China for the purpose of rewarding managers and their subordinates, building up guanxi (personal networks), and even financing the business operations of their danwei (work units). We analyze CESTs with reference to their antecedents, constructs, and consequences. Our analysis indicates that while CESTs can, in some cases, help organizations deal with immediate financial problems, they have negative impacts on organizational performance in relation to the moral hazard of managers, (...) as well as the allocation of organizational resources, in respect of sustainability of strategic advantages and growth, and mismanagement of organizations. Because of the involutionary behavior of managers in Chinese enterprises, we propose that it will require not only organizational controls, but also a fundamental change in these managers' ideology for solving the problems of CESTs. (shrink)

Perceived integrity of managers affects employee attitudes. Yet its impact on employee behavior and organizational performance is unknown. Addressing this gap, we examine the effect of perceived integrity in leadership on both subjective firm performance and objective employee productivity. Applying dynamic capabilities theory, we propose that perceived integrity in leadership may not only directly affect the outcome variables but also moderate the effect of the firm’s multiple-strategy implementation on outcome variables. We test the hypotheses using multiple informants from a transitional (...) economy with an ineffective legal and incomplete institutional environment, which could seriously challenge the leader’s commitment to integrity. As hypothesized, perceived integrity is associated with manager’s perception of firm performance directly and objective employee productivity through its moderating role in the firm’s implementation process of dual strategies. The results illustrate that perceived integrity in leadership plays as an important driver for employee productivity in dual-strategy and non-strategy firms. We provide detailed discussions about the integrity challenge and call for additional future research on this topic. (shrink)

This study focuses on CEO hubris and its effect on corporate unethical behaviour—pollution in particular, and in addition examines critical institutional contingencies [state ownership, political connection and industrial competition] which may moderate this effect. With data from over-polluting listed firms based on the real-time pollution monitoring system in transitional China from 2015 to 2017, we find that CEO hubris is significantly positively related to firm pollution, and that the moderating role of SO is not significant, that PC positively moderates the (...) hubris–pollution relationship and that industrial competition negatively moderates this relationship. These findings contribute to research on the upper echelon theory, institutional theory and the growing literature on emerging economies. (shrink)

The concept of the Transitional Economy denotes the problematic processes of change confronting nations wishing to achieve levels of economic development comparable with that of Western nations. Such an objective is problematic, as these nations may also be said to be in a state of transition. Globalization and E-commerce have necessitated a reconsideration of the nature of business activity and its implications for both society and the individual.Writers such as Gray (1998) warn against the "refashioning" of other nations (...) in the image of the American free market. Business ethics can be seen as a symbolic expression of Beck''s (1992) concern with the implications of Risk Society and the uncertainties arising from the realization that scientific, technological, and economic progress are not necessarily concomitant with social, cultural, and political progress. Locating business ethics within the theoretical context of Reflexive Modernity provides a means of evaluating the contribution that it can make to providing a critical forum for considering the ways in which business organisations are responding to concerns regarding business activity. (168). (shrink)

Corruption as a non-market strategy for firms has gained increasing attention in the field of strategy management. However, the effect of corruption on innovation is unclear, especially in the context of transition economies. Using institutional theory, we examine the relationship between corruption and new product innovation and identify the contextual conditions of the relationship. Using the World Bank Enterprise Survey data from China, our empirical results show that corruption has a positive effect on firms’ new product innovation. Moreover, we (...) find that policy instability and competitive threats from the informal sector positively moderate the relationship between corruption and new product innovation. Using post hoc analysis, we find that the potentially positive effect of corruption on new product innovation is the consequence of inherent institutional weaknesses in transition economies; as the level of institutional development increases, the effect of corruption on firms’ new product innovation will gradually decrease. Overall, our findings provide new insights into understanding corrupt behaviors in transition economies and present managerial implications for firms’ ethical dilemmas in a transition economy context. We argue that the key to overcoming these ethical dilemmas lies in promoting pro-market institutional reform to reduce the potential benefits of corruption. (shrink)

Should animal farmers be paid compensation for their loss of property when transitioning to a vegan economy? To answer this question, the following article compares the transition away from a carnist economy with the compensation paid when abolishing (human) slavery in the 19th century. Three arguments are considered to justify the direct compensation of lost human/animal property. This article argues that all three accounts lack the grounds to authorize compensation as just. Instead, an alternative principle is proposed (...) that justifies supporting anyone made vulnerable during economic transitions, encompassing a wider group of individuals than former proprietors alone. (shrink)

This paper introduces the special issue of papers selected from those presented at the International Conference on Business Ethics in Transitional Economies, held March 20–22, 2002 in Celakovice and Prague, Czech Republic. A brief background on the conference is given, and a summary of the papers offered in this special issue is provided.

Slovene agriculture is going throughdrastic changes. Most of the land is stillowned by small farmers. The production isoriented to the market and is based on modernWestern technology. It is associated withincreasing pollution and is becoming a seriousthreat to biodiversity. Many of the wild plantsare endangered due to genetic erosion withinspecies. The traditional crops and varietiesare being replaced by imported materials andthe use of chemicals has been increasing. Manyof the traditional varieties have beenneglected and/or lost. The existing germplasmcollections are incomplete and (...) frequently donot include traditional varieties. There areonly a few breeding organizations with limitedcapacities and collections. The legislation isnot efficient enough to protect the environmentand biotic diversity. Schools, media,religious, sport, tourist, and otherorganizations should be more active inpromoting the respect for biodiversity. (shrink)

North American and West European academics are accepting offers to speak or teach about business ethics to audiences in countries with transitional economies. Such engagements should not be accepted without an appreciation for the challenges involved. This paper outlines the dynamics of business ethics in these former communist countries and describes circumstances relating to ethical training, and course content and pedagogy. A concluding section of the paper identifies some guidelines that instructors should consider before becoming involved with ethical (...) training in transitional economies. The principle message to be received from this paper is that instructors should avoid being ethics missionaries with preconceived ideals. (shrink)

This paper examines several key aspects of the ethical environment facing the insurance industries of Poland, The Czech Republic and Hungary as they complete the transition from Communist insurance systems built upon state-owned monopolies to viable private domestic insurance markets, and then seek to harmonize their markets with the single insurance market of the European Union. Since many types of ethical problems encountered during the transition are unlikely to diminish significantly as a result of either privatization or regulation (...) of the insurance markets of these countries, measures are identified that should help to improve the ethical environments of these markets. (shrink)

What are the ethical concerns among the growing populations of business people in Central & Eastern Europe, and how might they be dealt with practically in the course of business life? David Murray has been a management consultant since 1979 working primarily with the Hay Group in the area of strategic organisational change. Since founding Maine Consulting Services in 1991 he spends most of his time in the field of business and professional ethics, also holding a Visiting Fellowship at (...) the University of Central Lancashire. He is chairman of the Professional & Technical Board at the (British) Institute of Quality Assurance and a coordinating editor of the quarterly Organisations & People. Marek Kucia is a social researcher operating his own research agency (which organised the Polish part of this exercise) and an academic teaching sociology, and conducting and co‐ordinating Central European Studies at the Jagiellonian University, Krakow. He studied political science, sociology and philosophy at Krakow and studied for his PhD at Oxford. He has also worked for Gallup, London, in opinion and market research. This survey report is based on presentations made in April 1994 to the EBEN Research Centres Conference in Prague, and in June 1994 to the conference on “Ethics in Transition” organised in Gödöllö, Hungary, by the Democracy after Communism Foundation, Budapest. The authors wish to acknowledge the major contribution to this work of Mr Juraj Kusnierik of the Central European Foundation, SEN, Bratislava, who co‐ordinated the survey exercise. The project was sponsored by The Ethics Development Initiative, CARE, London; the Central European Foundation, SEN, Bratislava, Slovakia; SIS Ltd., Bratislava, Slovakia; and Maine Consulting Services, 16 Acrefield, Blackburn, Lancashire, England BB2 7BJ, to which all correspondence connected with this report should be addressed. (shrink)

What are the ethical concerns among the growing populations of business people in Central & Eastern Europe, and how might they be dealt with practically in the course of business life? David Murray has been a management consultant since 1979 working primarily with the Hay Group in the area of strategic organisational change. Since founding Maine Consulting Services in 1991 he spends most of his time in the field of business and professional ethics, also holding a Visiting Fellowship at (...) the University of Central Lancashire. He is chairman of the Professional & Technical Board at the (British) Institute of Quality Assurance and a coordinating editor of the quarterly Organisations & People. Marek Kucia is a social researcher operating his own research agency (which organised the Polish part of this exercise) and an academic teaching sociology, and conducting and co‐ordinating Central European Studies at the Jagiellonian University, Krakow. He studied political science, sociology and philosophy at Krakow and studied for his PhD at Oxford. He has also worked for Gallup, London, in opinion and market research. This survey report is based on presentations made in April 1994 to the EBEN Research Centres Conference in Prague, and in June 1994 to the conference on “Ethics in Transition” organised in Gödöllö, Hungary, by the Democracy after Communism Foundation, Budapest. The authors wish to acknowledge the major contribution to this work of Mr Juraj Kusnierik of the Central European Foundation, SEN, Bratislava, who co‐ordinated the survey exercise. The project was sponsored by The Ethics Development Initiative, CARE, London; the Central European Foundation, SEN, Bratislava, Slovakia; SIS Ltd., Bratislava, Slovakia; and Maine Consulting Services, 16 Acrefield, Blackburn, Lancashire, England BB2 7BJ, to which all correspondence connected with this report should be addressed. (shrink)

This paper builds on a debate between Velasquez and Fleming: Do multinational enterprises (MNEs) have ethical obligations to their host countries? Velasquez applies Thomas Hobbes' realism approach in arguing that MNEs have no special moral obligations to host countries: (a) obligations do not exist independently in a "state of nature," (b) MNEs exist in a "state of nature" independent of any sovereign authority or power, (c) therefore, MNEs cannot be compelled toward moral or ethical behavior. Fleming counters that the lack (...) of an international authority to compel morality from MNEs is irrelevant. MNEs are for-profit entities making rational economic decisions based on their perceived self-interest. Since they operate in "the goldfish bowl of international media," MNEs are very aware of the stakeholder model. First, the paper supports Fleming's position: Even if a philosophical case cannot be established for MNEs to act ethically - they still should. Being unethical in any arena, but especially in the international arena, is both bad-for-business and bad business. Applying stakeholder theory, if stakeholders perceive the MNE as unethical (which may or may not be true), the firm will ultimately lose business. (shrink)

Central Asia presents a unique configuration of historical experience and societal responses that have been interacting and evolving for thousands of years. The current era of economic, political, and societal transformation in Central Asia began with the peaceful devolution of the Soviet Union and transition to the Commonwealth of Independent States in December 1991. Expectations about the natural social order based on western beliefs and experience may not apply in this part of the world, for—like all transitional and emerging (...) market economies—Central Asia has inherited another social order that predates recent history. The field of Business Ethics provides an arena in which these issues can be explored. In this article, an overview of the current standing of Business Ethics as a field for teaching, training, and research in Central Asia is provided. Suggestions for further consideration and future research are presented in the concluding section. (shrink)

With the expansion of multinational corporations (MNCs), the alarming upsurge in widely publicized and notable corporate scandals involving MNCs in emerging markets has begun to draw both academic and managerial attention to look beyond home market practices to the pressing concern of CSR in emerging markets. Previous studies on CSR have focused primarily on Western markets, reserving limited discussions in addressing the issue of MNC attitudes and CSR practices in their emerging host markets abroad. Despite this incongruity in academic response (...) to CSR in emerging markets, managers of multinational companies continue to face mounting and most often conflicting pressures to weigh among multiple strategic CSR responses in emerging markets. Such a task is often further complicated by the complexity of varying business norms and standards, regulatory environments, and stakeholder demands for CSR across national boundaries. With such a challenge in mind, I attempt to examine the explanatory factors in leading MNCs, otherwise recognized for accountability and integrity in their home markets, to employ inconsistent or negligent practices under CSR pressure in Chinese emerging economy. Preliminary findings reveal that discrepancies exist in how MNCs perform in CSR in home countries versus in host countries. While MNCs do have much to improve, the institutional environment in the emerging market, including the legal framework and the ethical culture, also needs to be improved by the host country governments, the industry associations, and local firms. Meanwhile, media interest and journalists, NGOs, third party monitors, industry stakeholders as well as consumer advocacy groups can raise the visibility of MNC's contradictory practices between their origin nations and countries with emerging economies and offer the pressures and incentives for MNCs to amend their ethical short-comings. This article also suggests implications for both theory and practice. (shrink)

This article compares the ethical attitudes of Ukrainian business professionals with those of United States business professionals. A widely used survey instrument consisting of 16 hypothetical situations involving ethical dilemmas was employed to gather information on ethical attitudes in the two countries. On 13 of 16 vignettes, Ukrainian respondents demonstrated less stringent ethical attitudes than did their United States counterparts. Possible reasons for these differences are discussed, with primary emphasis on the transition from one economic system to another that (...) is underway in Ukraine. Comments from Ukrainian respondents are presented so as to give an indication of the thought processes behind the questionnaire responses. (shrink)

Transition from a planned command economy to a market economy means tearing down a socio-economic setting where everybody follows orders and nobody bears individual responsibility for anything. The absence of personal responsibility does not promote ethical behavior in any walk of life. Today, the malnourished business ethics in the former Soviet Union creates a critical obstacle to economic development. The paucity of new official rules governing the conduct of business makes the transition process painful and (...) difficult to people habituated to numberless rules and regulations. The first part of this paper surveys the most visible unethical business practices that have been reported by the Western media and those that are causing the largest number of complaints by the local governments and businessmen. The second part of the paper looks at ethical problems that have been under-reported. (shrink)

In this paper, we criticize the current focus of the bio-based economy (BBE) on efficiency and control and demonstrate the contradictions that this causes. We elucidate these tensions by comparing the BBE to alternative conceptions of economy that emphasise the relevance of both the human condition and unfathomable nature in the macro ecological transition project. From Emmanuel Levinas’s philosophy, we take and extrapolate two major concepts—il y a and enjoyment—that help to re-evaluate the status of both nature (...) and the human subject involved in environmental instability. From this analysis, we evaluate current economic practice in close relation to the deteriorating environment to contribute to a conception of an economy that is truly based on principles of the biosphere. We conclude that humankind and nature are notions that must be always considered in this encompassing and topical effort and explain how they have been fundamentally overlooked in current thought on the bio-based and circular economy. (shrink)

The state of national economies development varies and is characterized by many indicators. Economically developed countries are known as doubtless leaders that are in progress and form political stability, social and economics standards, scientific and technical progress and determine future priorities. It is worth mentioning that the progressive development of national economies in conditions of globalization can take place only in case of the increase of their intellectualization level, through saturation of people`s life, economic relations and production by brain activity, (...) knowledge, creativity, innovation, culture, ethical considering of the historical heritage. The main aim of the research is national economies intellectualization evaluating in globalization conditions. In order to gain this aim, the following tasks were defined: to identify existing indices of the national economies intellectualization level evaluation, develop the authors’ methodological approach to the national economies intellectualization level, determine the areas of measurement results application. While conducting the research, systematic approach, the methods of analysis, synthesis, grouping, abstracting, generalization, imaginary experiment and grounding were used. In the modern world, there are a large number of indicators which characterize differences in intellectual state of the national economy. When comparing the state of national economies intellectualization, the problems arise with different number of countries, duplication of indicators, disproportionate number of the components of indicators, various years of publication, etc. Therefore, to ensure comparability, we choose four general indicators – the index of human development, the global innovation index, the global competitiveness index and the knowledge economy index. Using these indices, we do the research and determine the state of national economies intellectualization in the world economy. According to the calculated results, as of 2013, we have divided 190 national economies by level of intellectualization into five groups: countries with the highest (30 countries), high (30 (countries), low (30 countries), the lowest (35 countries) and the countries with uncertain state of intellectualization (65 countries). The leaders in the state of intellectualization are Switzerland, Sweden, The Netherlands, Finland and the USA. The countries with the highest level of intellectualization serve as an example to all other countries of the world. These countries are characterized by developed market economy; a dominant position in the international economy, which allows actively engaging own and imported resources in the economic turnover; the shift of the center of gravity of economic activity into the services sector and the dominance of service economy; the greatest exhaustion of sources and factors of industrial development; advanced post-industrial development. The economic policy of the first group of countries has a decisive influence on the state and dynamics of the global economy, defining the main directions of its scientific and technological development and structural adjustment. The average index of the national economy intellectualization (AINEI), calculated by the authors, shows the place of each country in the world community as to their intellectual capital. Considering the continued deployment of R&D progress, the growing role of high-tech production and the complexity of social and economic relations, AINEI can serve as a reliable indicator of the macroeconomic environment intellectualization state. Therefore, the following organizations, bodies and individuals can use the comparative results of this study: the international organizations while developing international economic development programs; the state authorities of the countries in foreign and domestic policy forming; companies that create innovative and investment policy; migrants, tourists and persons who perform professional and transit activity for the formation of human potential and capital; scientists and teachers who develop mechanisms of intellectualization. (shrink)

Chinese people attach importance to intuition and imagery in ways of thinking that are quite sensible, but the result, i.e. the thoughts that are popularized in virtue of political power, are rather rational. These rational thoughts, which were influenced by Buddhism and continually became introspective, had been growing more irrational factors. Up to the middle and late Ming Dynasty, when the economy was developed, they merged with the growing emphasis on daily needs of food and clothes and the envisagement (...) to the utilitarian circumstances, and finally broke through the threshold of rationalism. Under the attack of Geng Dingxiang, Li Zhi who emphasized these thoughts was forced beyond his previous boundaries and led a whole variation in how he viewed a series of issues including values, humanity, ethics and aesthetics. This indicated a historical change from rationalism to irrationalism in Chinese humanism and aesthetics thoughts. (shrink)

The fall of the former Soviet Union and the opening of the countries of Eastern Europe has prompted examination of why central planning failed, why capitalism with all its faults is succeeding, and what actions and institutions are necessary to move command economies toward successful, sustainable market economic systems. As they privatize State Owned Enterprises (SOE's) expectations are that the companies will function with the success experienced by western companies. Governments hope to derive tax revenue from company profits and expect (...) companies to provide jobs. Effecting the change is, however, far greater than changing the name plate on the door. Transition success will hinge upon institutional and infrastructure changes that need to be wide-spread. The ethical quagmire is that without changes in the infrastructure of the command economy system private enterprise is doomed to fail. Governments will then be deprived of the anticipated revenue streams emanating from businesses. Governments may then not be able to fulfill the economic and social expectations of their citizens. This would be not only counter-productive for businesses and government but also confusing and bewildering to the general populous. This paper explores structural impediments in transition economies and discusses how each blocks and distorts the formation of a true market economy. (shrink)

:International business norms do not exist. Content and development of such norms is a significant research question for business ethics scholarship. Any norms must address difficult practical and moral problems facing multinational enterprises. The author’s thesis is as follows. A key circumstance is that international relations remain a Hobbesian state of nature. The theoretical solution of a global sovereignty for norm formulation and enforcement is unlikely. The business ethics literature proposes other insightful but theoretical and conflicting solutions to (...) abstract wealth-responsibility and universalism-relativism controversies. Theoretical convergence seems unlikely. Evolution of multiple international policy regimes fragmented by policy arena is more probable. Regimes will typically be neither morals by agreement nor a morality of the marketplace. Regime development can occur in various other ways. Moral leadership, by firms, stakeholders, nongovernmental organizations or governments, can be a vital force. Formal ethical theories can inform and guide such leadership initiatives. This process perspective is applied to several recent case examples cited here as supporting evidence: anti-corruption, labor, environmental, human rights, and fiduciary responsibility initiatives. (shrink)

Tax compliance is an important issue for governments and the public alike. To meet public needs and fund public mandates, firms around the world are expected to comply with tax laws. Factors that are related to organizational (firm) tax compliance have not been sufficiently examined in the literature. Owing to the increasing global influence of transition economies, factors associated with firm tax compliance in transition economies are particularly of interest. Based on a sample of over 5,000 firms from (...) 22 former Soviet Bloc transition economies, we find that higher levels of corruption and higher levels of particularized trust (reliance on friends and family) are associated with lower levels of tax compliance. Interestingly, we also find that the negative relationship between corruption and tax compliance is weakened in situations of higher generalized trust (trust in strangers). Overall, our study’s results suggest that institutional factors play an important role and are related to firm tax compliance behavior in transition economies. (shrink)

Bribery in international business has become a priority concern among business, government, and community leaders. While discussions among philosophers often emphasize the ethical justification for banning bribery, policy-makers around the world are challenging it on the basis of its effects for economic development. In this paper we define bribery, trace recent efforts by the public, private, and civil society sectors to curb it, and attempt to answer the question: Will bribery become less common?

The President of the European Bank for Reconstruction and Development examines three major ethical problems in the transition from post‐Communist Europe to a market economy and spells out the only real option for Western Europe. He delivered this address, which is reprinted with permission, at a Conference on Business and Moral Standards in Post Communist Europe held in London in November last year under the auspices of the Archdiocese of Westminster and sponsored by the Sedgwick Group and KPMG (...) Peat Marwick. (shrink)

Our aim was to describe Chinese nurses' experiences of workplace distress and ethical dilemmas on a neurological ward. Qualitative interviews were performed with 20 nurses. On using latent content analysis, themes emerged in four content areas: ethical dilemmas, workplace distress, quality of nursing and managing distress. The ethical dilemmas were: (1) conflicting views on optimal treatment and nursing; (2) treatment choice meeting with financial constraints; and (3) misalignment of nursing responsibilities, competence and available resources. The patients' relatives lacked respect for (...) the nurses' skills. Other dilemmas could be traced to the transition from a planned to a market economy, resulting in an excessive workload and treatment withdrawal for financial reasons. Lack of resources was perceived as an obstacle to proper patient care in addition to hospital organization, decreasing the quality of nursing, and increasing moral and workplace distress. The nurses managed mainly by striving for competence, which gave them hope for the future. (shrink)

The UN Global Compact is a voluntary initiative designed to help fashion a more humane world by enlisting business to follow ten principles concerning human rights, labor, the environment, and corruption. Although the four-year-old Compact is a relatively successful initiative, having signed up over eleven hundred companies and more than two hundred of the large multinationals, and having begun some important projects on globalization issues, there is a serious problem in that very few of the major U.S. companies have joined. (...) While the premier U.S. companies are interested in meeting the legitimate expectations of society, there is concerncentering around accountability issues. The accountability issues are in four major areas: 1. Accountability showing that the globalization of the economy actually helps the poor. 2. Accountability showing the corporate performance matches rhetoric. 3. Accountability that provides legitimacy to a two-tier pricing system and other measures that are designed to assist the poor in developing countries. 4. Accountability in the human rights area; what societal expectations are multinational companies accountablefor? The article outlines the problems that the Compact brings to the fore and offers some insight from the ethical literature that may address U.S. company concerns or provide new ways of thinking about the issues. It further argues that the forum provided by the Compact may be the most effective means to gain consensus of the role of business in society. (shrink)

:Building on John Rawls’s account of the Law of Peoples, this paper examines the grounds and scope of the obligations of transnational corporations that are owned by members of developed economies and operate in developing economies. The paper advances two broad claims. First, the paper argues that there are conditions under which TNCs have obligations to fulfill a limited duty of assistance toward those living in developing economies, even though the duty is normally understood to fall on the governments of (...) developed economies. Second, by extending Rawls’s account to include a right to protection against arbitrary interference, the paper argues that TNCs can be said to have negative and positive obligations in the areas of human rights, labor standards, and environmental protection, as outlined in the U.N. Global Compact. More generally, the paper aims to further our understanding of the implications of Rawls’s account of justice. (shrink)

:Opportunism impacts the behavior of firms in market situations where they purchase goods and services externally and create dependency relationships with other firms. Opportunism as a business issue is addressed in economics and marketing literature as an important factor in transaction cost analysis and market governance. Management and business ethics scholars, however, do not address this issue in depth, if at all.The recent bankruptcy of MCI WorldCom highlights some of the risks inherent in a world economy where customers (...) and companies of one society are dependent upon the business practices of partner companies in other societies. Telecommunications customers and companies in Asia, Europe and other places, who depended upon MCI WorldCom for connections to North America, now have important areas of their business in jeopardy because of the uncertainty about the fate of a critical business partner.MCI WorldCom’s situation appears to be the result of an attempt to obtain personal gain, at the expense of others, by at least one senior manager. This is called opportunism. Williamson defined opportunism as “self-interest seeking with guile.” It can wreak havoc with companies, customers, stock markets and economies and is demonstrated regularly in press accounts of misstatements on financial reports and other ways senior managers use their positions to enhance their personal wealth and influence.This paper will focus on the ethical issues surrounding business relationships and how Confucianism, with its focus on trust, reciprocity and mutual benefit in relationships, can offer a moral foundation to the inter-firm arrangements that are so much a part of the contemporary business landscape. (shrink)

The present study analyzes the key drivers facilitating corporate social responsibility practices in large-scale organizations of North-West region of India. Further research is using Carroll’s model of CSR responsibility as a basis to develop a strategic framework that demonstrates transition from economic to holistic approach. Carroll’s CSR model focuses on four aspects: economic, legal, ethical, and philanthropic responsibilities. This research has been taken to understand whether there is a transition in Indian large-scale organizations from its primary focus on (...) economic responsibilities to legal, ethical, and philanthropic responsibilities to adopt holistic approach. Results are indicative of the fact that Indian economy has given considerable importance to social responsibility practices, and clear transition can be observed from economic to holistic approach. (shrink)

:War has broken out in the technological global economy, principally in battles over intellectual property. A particularly fierce aspect of this battle sets people who guard proprietary software against hackers, who want information to be free. The key challenge today is to produce an adequate conceptual lens for seeing what ethically is at stake in this battle. Toward this end, this paper uses the just war tradition to analyze differences between proponents of Free Software and proponents of Open Source (...) Software. This paper’s use of three just war criteria—Just Cause, Right Intention, and Discrimination—illustrates how the just war tradition can raise the level of ethical awareness about the intellectual property wars that continue to rage in the technological global economy.The division between the two [open source and free software] is often bitterly contested, both from inside and outside the communities. The holiest of holy wars are not fought over word processors, operating systems, or compilers. They are all about software licenses.—Joe Barr. (shrink)

:Three strategies for developing just and consistent global business practices are examined: 1) international treaties and agreements, 2) global codes of business conduct, and 3) voluntary self-restraint. International agreements investigated are: NAFTA, Global Warming Treaty, OECD Anti-Bribery Treaty and Infant Formula Agreement. The codes examined are the Caux Round Table’sPrinciples for Business, The Global Sullivan Principlesand The United NationsGlobal Compact with Business. Each of these three strategies is probed for its relative strengths and weaknesses, and its prospects for developing ethical (...) business practices—especially in the areas of improving the environment, human rights and working conditions. (shrink)

Drawing on stakeholder theory and the evolutionary approach to institutions, this paper investigates the channels through which corporate social responsibility (CSR) is developed in post‐communist economies by focusing on the employee background factors that shape the employees' expectations with regard to corporate socially responsible behaviour. We identify three channels through which exogenous and endogenous CSR are developed: employees with work experience in multinational enterprises (MNEs) (leading to exogenous CSR), employees with CSR knowledge (leading to exogenous CSR) and employees with experience (...) of the socialist system (leading to endogenous CSR). Furthermore, we argue that the interactions between these channels lead to hybrid CSR in transition economies. We use a questionnaire‐based survey with employees of domestic and MNEs in Romania and we conduct regression analysis. We find that employees with work experience in MNEs act as channels for exogenous CSR, while employees with experience of the socialist system act as channels for endogenous CSR. Furthermore, employees with experience of the socialist system and CSR knowledge or work experience in an MNE act as channels for hybrid CSR in transition economies. Based on our results, we put forward implications for theory, managers and policy makers. (shrink)

Shell’s efforts to integrate the stakeholder management approach into its business practice worldwide involved the gradual development of a long-term, comprehensive strategy. This paper draws on stakeholder management theory and Shell’s experience to identify critical factors that contribute to the process of institutionalizing the principle of stakeholder management in a global company. A key lesson to be drawn from the case is the necessity of ensuring that the process allows for continuous learning, adaptation, and refinement.

Drawing on stakeholder theory and the evolutionary approach to institutions, this paper investigates the channels through which corporate social responsibility (CSR) is developed in post-communist economies by focusing on the employee background factors that shape the employees' expectations with regard to corporate socially responsible behaviour. We identify three channels through which exogenous and endogenous CSR are developed: employees with work experience in multinational enterprises (MNEs) (leading to exogenous CSR), employees with CSR knowledge (leading to exogenous CSR) and employees with experience (...) of the socialist system (leading to endogenous CSR). Furthermore, we argue that the interactions between these channels lead to hybrid CSR in transition economies. We use a questionnaire-based survey with employees of domestic and MNEs in Romania and we conduct regression analysis. We find that employees with work experience in MNEs act as channels for exogenous CSR, while employees with experience of the socialist system act as channels for endogenous CSR. Furthermore, employees with experience of the socialist system and CSR knowledge or work experience in an MNE act as channels for hybrid CSR in transition economies. Based on our results, we put forward implications for theory, managers and policy makers. (shrink)

Drawing on stakeholder theory and the evolutionary approach to institutions, this paper investigates the channels through which corporate social responsibility (CSR) is developed in post‐communist economies by focusing on the employee background factors that shape the employees' expectations with regard to corporate socially responsible behaviour. We identify three channels through which exogenous and endogenous CSR are developed: employees with work experience in multinational enterprises (MNEs) (leading to exogenous CSR), employees with CSR knowledge (leading to exogenous CSR) and employees with experience (...) of the socialist system (leading to endogenous CSR). Furthermore, we argue that the interactions between these channels lead to hybrid CSR in transition economies. We use a questionnaire‐based survey with employees of domestic and MNEs in Romania and we conduct regression analysis. We find that employees with work experience in MNEs act as channels for exogenous CSR, while employees with experience of the socialist system act as channels for endogenous CSR. Furthermore, employees with experience of the socialist system and CSR knowledge or work experience in an MNE act as channels for hybrid CSR in transition economies. Based on our results, we put forward implications for theory, managers and policy makers. (shrink)

Workers in distant nations who produce the products we buy frequently suffer from accidents, managerial malfeasance, and injustice. Are consumers who bought the products made by these workers in any way morally responsible for those injustices? And what about the far more frequent, less severe injustices, such as the withholding of wages, the denial of bathroom breaks, forced overtime, and harassment of various sorts? Could buying a shirt at the local department store create for you some responsibility for the horrendous (...) death in a factory fire of the women who sewed it half a planet away? (shrink)

The shift from the conventional agri-food system to alternative practices is a challenging transition for agricultural producers, yet surprisingly under-studied. Little research has examined the social and cultural processes in rural communities that mobilize producers and construct and sustain producer-driven alternative food networks (AFNs). For AFNs to go beyond just offering “alternative foods” or “alternative networks” and to be constructed as “alternative economies”, this transformation in the producer community is indispensable. This paper presents a case study of a rural (...) cooperative in Shanxi, China. The discontent with both productivist agriculture and the social decay in communities motivated a group of women to engage in a decade-long process of social mobilization, cultural reconstruction, and learning by experimentation. Through this, they developed an alternative vision and successfully created a localized alternative socio-economic model, which I call “anti-productivism”. It prioritizes ecological sustainability, self-reliance, reciprocity, and cultural values over output maximization, productivity growth, commodity exchange, and monetary gains. This case contrasts sharply with the urban-initiated, consumer-driven AFNs studied in the China literature, which mostly just offered alternative foods but brought little change to the producer community. It shows that the alternative economy must be embedded in an alternative community united by strong social bonds and shared cultural values. (shrink)

The world’s current model for economic development is unsustainable. It encourages high levels of resource extraction, consumption, and waste that undermine positive environmental outcomes. Transitioning to a circular economy (CE) model of development has been proposed as a sustainable alternative. Artificial intelligence (AI) is a crucial enabler for CE. It can aid in designing robust and sustainable products, facilitate new circular business models, and support the broader infrastructures needed to scale circularity. However, to date, considerations of the ethical implications (...) of using AI to achieve a transition to CE have been limited. This article addresses this gap. It outlines how AI is and can be used to transition towards CE, analyzes the ethical risks associated with using AI for this purpose, and supports some recommendations to policymakers and industry on how to minimise these risks. (shrink)

Japan’s economy has stagnated since the bursting of the twin real estate and stock bubbles in 1990. Construction employment rose after the bubbles burst despite a real estate glut.Systemic corruption is delaying recovery. The key is thedango—Japan’s system of bid rigging, which is pervasive in public construction. The firms rotate who will win the “competitive” bid. The bureaucrats leak the highest price bid that will be accepted in return for favors from the industry and lucrative sinecures when they retire. (...) The ruling politicians get kickbacks and ensure the adoption of enormous public construction programs.The result is that Japanese public and private capital flows are corruptly routed to uses that are not simply inefficient, but outright harmful to society. Pervasive corruption is the primary obstacle to Japanese economic health and political reform. (shrink)

The advent of the sharing/gig economy has created new forms of employment embedded in new labor practices. Advocates of the sharing economy frame it in salutary terms, lauding its sustainability, decentralization, and employment-generation capabilities. The workers of the gig economy are seen as independent contractors under law rather than employees, and the owners of the gig economy platforms celebrate this categorization as a form of entrepreneurship. In this paper, we use insights from the entrepreneurship literature to (...) examine this claim critically. Taking Uber as an exemplar, we look at the arguments behind the company’s contention that its drivers are actually “partners” who are engaged in entrepreneurship, and demonstrate why these claims are problematic. We utilize a stakeholders’ theory framework that initiates a dialogue between ethics and entrepreneurship in order to focus on the mechanisms that help ensure ethical practices in the sharing economy and to examine the efficacy of these mechanisms. We also discuss the role of the entrepreneurship literature in promoting entrepreneurial behaviors that lead to income inequality. We conclude by arguing that the sharing economy reflects the intensification of an ongoing neoliberal trend that misuses the concept of entrepreneurship in order to justify certain forms of employment practices, and make a case for regulatory oversight. (shrink)