. This paper explores the relationship between gift giving, guanxi and corruption through a study of the relationships between UK manufacturing companies in China and their local component suppliers. The analysis is based on interviews in the China-based operations of 49 UK companies. Interviews were carried out both with senior (often expatriate) staff and with local line managers who were responsible for everyday purchasing decisions and for managing relationships with suppliers. The results suggest that gift giving is perceived to be (...) a significant problem in UK-owned companies in China. However the relationship between these payments and established understanding of gift giving within guanxi-networks appears to be weak. Gift giving appears to be associated with illicit payments, corruption and the pursuit of self-interest. Firms seek to reduce the incidence of illicit transactions by changing staff roles, instituting joint responsibilities, which include the separation of different aspects of sourcing/purchasing, ineasing the involvement of senior staff in the process and through the education of employee and suppliers. (shrink)

This study examines unethical purchasing practices from the perspective of buyer–supplier relationships. Based on a review of the inter-organizational literature and qualitative data from in-depth interviews with purchase managers from diverse industries, a conceptual framework is proposed, and theoretical arguments leading to propositions are presented. Taking into consideration the presence or absence of an explicit or implicit company policy sanctioning ethically questionable activities, unethical purchasing practices are conceptualized as a three-tiered set. Three broad themes emerge from the analysis toward (...) explaining purchasing ethics from a buyer–seller perspective: Inter-organizational power issues, Inter-organizational relational issues, and Interpersonal relational issues. Theoretical and managerial implications of the conceptual framework are discussed. (shrink)

This study examines unethical purchasing practices from the perspective of buyer-supplier relationships. Based on a review of the inter-organizational literature and qualitative data from in-depth interviews with purchase managers from diverse industries, a conceptual framework is proposed, and theoretical arguments leading to propositions are presented. Taking into consideration the presence or absence of an explicit or implicit company policy sanctioning ethically questionable activities, unethical purchasing practices are conceptualized as a three-tiered set. Three broad themes emerge from the analysis toward (...) explaining purchasing ethics from a buyer— seller perspective: (a) Inter-organizational power issues (inter-organizational power and idiosyncratic investments), (b) Inter-organizational relational issues (long-term orientation and satisfaction), and (c) Interpersonal relational issues (interpersonal ties and trust). Theoretical and managerial implications of the conceptual framework are discussed. (shrink)

Western buying companies impose Supplier Codes of Conduct (SCC) on their suppliers in developing countries; however, many suppliers cannot fully comply with SCC and some of them even cheat in SCC. In this research, we link contract characteristics - price pressure, production complexity, contract duration - to the likelihood of supplier's commitment to SCC through a mediating process: how the buying companies govern their suppliers. Our structural equation model analysis shows that the hierarchy/relational norms governance is a perfect (...) mediator of contract characteristics' effects on the likelihood of supplier's commitment; the market governance, an insignificant one. The managerial implications are provided for successfully implementing SCC in global supply chains. (shrink)

Despite increased academic and practitioner interest in codes of conduct, there has been little research into the actual compliance of suppliers in developing countries with the codes of conduct of multinational corporations (MNCs). This paper addresses this lack by analysing Chinese suppliers’ level of compliance with Swedish toy retailers’ codes of conduct. Based on unannounced and unofficial interviews with employees of Chinese suppliers, the study shows that all of the nine studied suppliers breached some of the standards in the toy (...) retailers’ codes, with over two-thirds of the suppliers not complying with the majority of the studied standards. While there are different explanations of this lack of compliance, the main explanation seems to be that Chinese suppliers successfully deceive toy retailers’ monitoring organisations by decoupling the formal monitored part of their organisation from the actual operational part of their organisation. The paper concludes with a discussion of how to increase compliance with MNCs’ codes of conduct. (shrink)

This study investigates the interaction between suppliers and fraudulent customer firms from the perspective of reputation damage and reputation recovery. Specifically, reputation damage from the regulatory penalty for corporate fraud induces the trust crisis and suppliers respond to fraudulent firms by reducing the trade credit supply. To repair a damaged reputation and rebuild the trust, fraudulent firms raise the ratio of prepayment to purchase volume when purchasing from small suppliers and increase the proportion of purchase from large suppliers in the (...) next year. Channel analysis shows that the declining trust is one of potential mechanisms to reduce the trade credit. Furthermore, the negative effect is more pronounced for fraudulent firms with non-related party suppliers, higher supplier concentration, less analyst coverage, and for fraudulent firms located in regions with less-developed financial environment. Additionally, supplier sanctions have a spillover effect on non-fraudulent customer firms in the same industry. The conclusions are robust to a series of checks, including PSM–DiD, firm and year fixed effect, the alternative measure for trade credit financing, the industry-year fixed effect and the consideration of the monetary policy and financial crisis. (shrink)

Supplier diversity programs were created in the United States nearly 50 years ago to encourage private sector companies to provide business opportunities to underutilized minority business enterprises. In order to assess the experiences that minority business enterprise CEOs have with large purchasing organizations and their perceptions of justice and commitment of large purchasing organizations to the buyer–supplier relationship (BSR), this study utilizes survey data collected from 206 minority business enterprise CEOs who supply large purchasing organizations that espouse a (...) strong commitment to supplier diversity. The theoretical framework of organizational justice is utilized to establish testable hypotheses. The results from hierarchical linear regression show minority business enterprise CEOs’ perception of large purchasing organizations’ commitment to the BSR is positively related to the distributive and informational dimensions of organizational justice. Surprisingly, the procedural dimension was found to have a significantly negative relationship. This research also found a significant, negative relationship between minority firm CEOs’ perception of distributive and informational justice and their perceptions of unethical behavior by large purchasing organizations. (shrink)

Despite the growing public awareness of social sustainability issues, little is known about what drives firms to emphasize social criteria in their supplier management practices and what the precise benefits of such efforts are. This is especially true for relationships with international suppliers from the world's emerging economies in Asia, Latin America, and Eastern Europe. Building on stakeholder theory, we address the issue by examining how pressures from customers, the government, and employees as primary constituencies of the firm determine (...) the extent to which firms consider social aspects in the selection of emerging economy suppliers. Further, we analyze how such socially sustainable supplier selection relates to the capabilities of the firm's suppliers, its market reputation, and the learning in its supply management organization. We test the developed research framework empirically using data from 244 U. S. and German corporations. Our findings, consistent with our hypothesized model, suggest that middle-level supply managers as internal stakeholders play a major driving role for firms' socially sustainable supplier selection, and that strong positive links exist between that selection and the investigated outcomes. (shrink)

Despite an abundance of research on inter-organizational trust, researchers are only beginning to understand the process of trust deterioration as an inter-organizational phenomenon. This paper presents a case study examining the deteriorating relationship between two international high-tech firms. We surveyed respondents from the supplier firm to identify major elements that reduced the supplier's trust in its customer, using the dimensions of trust identified by Mayer et al. (1995). While violations of ability, integrity, and benevolence all contributed to trust (...) reduction, early violations of trustee benevolence contributed importantly to trust deterioration. Over time, the relationship became "sensitive," and respondents reported many incidents of trust violation. Managers reported primarily integrity- and benevolence-related incidents, while no pattern emerged among operations personnel. We examine the results in light of Hosmer's (1995) ethically-based trust principles. The supplier and customer would likely differ in their opinion of whether the customer was acting "ethically." This suggests that scholars need to examine how many principles can be violated before trust is eliminated, and whether any of the principles are particularly salient in business relationships. (shrink)

The implementation of socially sustainable practices in suppliers situated in challenging institutional contexts is examined using institutional theory, both in terms of how institutional pressures affect implementation and what explains the decoupling of practices from the day-to-day reality. A multi-case study approach is employed based on seven apparel industry suppliers in Bangladesh. Cross-case analysis highlights the coercive, mimetic, and normative pressures on suppliers to implement socially sustainable practices. A key pressure identified that has not previously been highlighted in the literature (...) is horizontal collaboration between buyers, which intensifies coercive pressure on suppliers and increases the consequences of non-compliance. The factors that contribute to decoupling are categorized into firm-, supply chain-, and environment-related factors. Further, six propositions are developed on how specific forms of institutional pressure can tackle particular decoupling factors to support implementation. The paper responds to recent calls for greater scrutiny of why and how firms decouple ethical practices and supports the development of the literature specifically on social sustainability, which lags behind that on environmental sustainability and has been largely focused on the Western buyer perspective. The findings have implications for the diffusion of ethical practices into supply chains, especially distant suppliers in very different and challenging institutional contexts. (shrink)

A major challenge for supply chain managers is how to manage sourcing relationships to ensure reliable and predictable actions of distant suppliers. The extant research into sustainable supply chain management has traditionally focused on the transactional and collaboration approaches through which buyers encourage suppliers to act responsibly. However, little effort has been devoted to investigating the factors that underpin and enable effective implementation of these two approaches, or to exploring alternative approaches to help sustain an acceptable level of social performance (...) from suppliers. Building on organisational justice theory, we developed a framework in which we propose that buyers’ justice as perceived by suppliers can serve as an alternative and complementary vehicle to the conventional sustainability governance approaches for driving the social justice exhibited by suppliers. The paper sheds new light on an alternative relational approach to help to restrain potentially harmful acts of suppliers. It provides a foundation for new research avenues in the SSCM context and supports more informed decision making by practitioners. (shrink)

Corporate social responsibility (CSR) is gaining momentum in the business world, but several issues continue to challenge managers in charge of sustainability. Supply chain management is one area in which CSR-related activities could potentially drive the process of sustainability within firms. This case presents the way that illycaffè, an Italian coffee producer, has approached CSR. Since 1991, the company has focused on developing a new relationship with Brazilian coffee producers based on networking translated into knowledge transfer—Brazilian producers became responsible for (...) their operations all along the supply line—and innovation translated into quality—one supplier talks about how illycaffè persuaded him he was capable of producing a Ferrari among coffees instead of a Fiat. These two factors not only drive the supplier relationship, but also serve as the drivers of illycaffè’s sustainability strategy. Lessons for managers relate to benefits for the business, for society and for stakeholders, and questions arise about how to replicate illycaffè’s success and create value through values. (shrink)

The implementation of socially sustainable supply chain management (SSCM) practices (i.e. assessment and collaboration) to tackle suppliers’ social deficiencies (e.g. the use of child labour) often requires a level of cooperation that can be difficult to establish. Despite this daunting challenge, scant scholarly attention has been paid to explore how the implementation of socially SSCM practices can be effectively facilitated and enhanced. Drawing on social capital theory, this study examines the individual impact of assessment and collaboration practices on suppliers’ social (...) performance and explores whether and how these effects can be moderated (strengthened) by the level of social capital (i.e. relational, cognitive, and structural) embedded in the buyer–supplier relationship. Based on a survey of 119 manufacturing companies in the UK, we found that assessment practices are less likely to influence suppliers to improve social performance compared to collaboration practices. However, when relational and structural capital are manifested in the relationship, assessment practices become significant in driving suppliers’ social performance. We also found that the positive impact of collaboration practices is more pronounced when relational and cognitive capital are established in the relationship. This paper contributes to the growing socially SSCM literature by disentangling the vital and relative importance of social capital dimensions on the implementation of socially SSCM practices. (shrink)

This study examines the social impacts of labor-related corporate social responsibility policies or corporate codes of conduct on upholding labor standards through a case study of CSR discourses and codes implementation of Reebok - a leading branded company enjoying a high-profiled image for its human rights achievement - in a large Taiwanese-invested athletic footwear factory located in South China. I find although implementation of Reebok labor-related codes has resulted in a "race to ethical and legal minimum" labor standards when notoriously (...) inhumane and seriously illegal labor rights abuses were curbed, Chinese workers were forced to work harder and faster but, earned less payment and the employee-elected trade union installed through codes implementation operated more like a "company union" rather than an autonomous workers' organization representing worker' interests. In order to explain the paradoxical effects of Reebok labor-related codes on labor standards, I argue the result is determined by both structural forces and agency-related factors embedded in industrial, national and local contexts. To put it shortly, I find the effectiveness of Reebok labor-related codes is constrained not only by unsolved tension between Reebok's impetus for profit maximization and commitment to workers' human rights, but also by hard-nosed competition realities at marketplace, and Chinese government's insufficient protection of labor rights. Despite drawing merely from a single case study, these findings illuminate key determinants inhibiting the effectiveness of labor-related CSR policies or codes in upholding labor standards, and hence two possible way-outs of the deadlock: sharing cost for improving labor standards among key players in global supply chain; and combining regulatory power of voluntary codes and compulsory state legislations. (shrink)

This article investigates, based on in-depth interviews and mail surveys, the different ways liberal market regimes are constituted by looking at two small market societies, the U.S. and German automotive parts markets. In a situation in which neoliberal paradigm is being challenged and prior norms about contracts and contractual relations do not work either, this article explores how different conceptions of fairness and divergent market regimes are constituted. This article claims that divergent market regimes result from different kinds of (...) problem-solving practices in a novel context among reflexive agents—public deliberation versus isolated dyadic deliberation of conflicts. (shrink)

This study examines the social impacts of labor-related corporate social responsibility (CSR) policies or corporate codes of conduct on upholding labor standards through a case study of CSR discourses and codes implementation of Reebok – a leading branded company enjoying a high-profiled image for its human rights achievement – in a large Taiwanese-invested athletic footwear factory located in South China. I find although implementation of Reebok labor-related codes has resulted in a “race to ethical and legal minimum” labor standards when (...) notoriously inhumane and seriously illegal labor rights abuses were curbed, Chinese workers were forced to work harder and faster but, earned less payment and the employee-elected trade union installed through codes implementation operated more like a “company union” rather than an autonomous workers’ organization representing worker’ interests. In order to explain the paradoxical effects of Reebok labor-related codes on labor standards, I argue the result is determined by both structural forces and agency-related factors embedded in industrial, national and local contexts. To put it shortly, I find the effectiveness of Reebok labor-related codes is constrained not only by unsolved tension between Reebok’s impetus for profit maximization and commitment to workers’ human rights, but also by hard-nosed competition realities at marketplace, and Chinese government’s insufficient protection of labor rights. Despite drawing merely from a single case study, these findings illuminate key determinants inhibiting the effectiveness of labor-related CSR policies or codes in upholding labor standards, and hence two possible way-outs of the deadlock: (1) sharing cost for improving labor standards among key players in global supply chain; and (2) combining regulatory power of voluntary codes and compulsory state legislations. (shrink)

This study examines the relationship between cooperative business relations in small businesses and environmental protection, one of the most important policies of social responsibility in manufacturing. We reviewed the literature and carried out an empirical study of 930 small manufacturing firms in Spain. Results indicate that small businesses that maintain and improve their cooperative relations through business networking with universities, competitors, suppliers and customers spend more on environmental protection. The managerial, practical, research and policy implications of the obtained (...) research findings are discussed. (shrink)

In the context of the widening trade gap between Japan and the U.S.A. and the increasing numbers of missions visiting Japan aimed at a better understanding of the Japanese market and Japanese business, topics such as Just in Time and TQC have received the most prominence, along with discussions of Japanese-style management and labor relations. The weakness of most discussions has been their inability to set these into the context of the highly complex Japanese value-system that runs through both (...) business and society. Once understood, it becomes apparent that there is a system of values and value-related strategies at work that have a re-inforcing effect in the directions of cooperation and efficiency. The paper will identify a number of these and indicate their areas of influence. Four are discussed: (1) the formation of corporate philosophy (2) management philosophy (3) corporate work ethic (4) supplier/customer relations. (shrink)

Conflicts between labor unions and nongovernmental organizations often impede private labor regulatory attempts to protect worker rights at supplier factories. Based on a study of a failed private regulatory attempt for Swedish garment retailers, we contribute to existing research into union–NGO relations by demonstrating how conflict arises because unions and NGOs act upon different institutional logics. We also contribute to the institutional logics perspective by challenging the current emphasis on either coexistence or conflict among multiple logics, and showing (...) the heterogeneity in how multiple logics manifest on a local level, how this could shift over time, and suggesting an empirically derived typology of manifestations of multiple logics. (shrink)

In a supply chain system, the prices with which the suppliers supply its local commodity to the retailers should satisfy the requirements of the retailers and the consumers. The supply and demand scheme satisfying these requirements is reduced into fuzzy relation inequalities with min-product composition. Due to the difference between the min-product composition and the classical max-t-norm one, we first study the resolution of such min-product FRI system. For optimization management in the supply chain system, we further investigate a maximin (...) programming problem subject to the min-product FRIs. An algorithm is proposed to obtain the optimal solution based on the quasi-maximal matrix and corresponding index set. To illustrate the efficiency of our proposed algorithm, we provide a simple numerical example. The obtained optimal solution reflects an optimal pricing scheme, which maximizes the minimum prices of the commodity from the suppliers. (shrink)

The philosophies of education serve as the guide of the teachers in handling the teaching-learning process. However, a belief will remain as a belief unless it is practiced. This study aimed to find the relationship between the philosophical beliefs and practices of the 30 teachers of the schools in San Roque, Mabini, Bohol - San Roque Elementary School and San Roque National High School, S.Y. 2019-2020. The study utilized a quantitative method descriptive survey research design. The research instrument used was (...) a self-constructed questionnaire in which the reliability was tested by a Cronbach’s Alpha using Statistical Package for the Social Science (SPSS) software. Simple percentage and weighted mean were some of the statistical treatments used. Kendall’s tau_b, a non-parametric test, was used to determine the correlation between philosophical beliefs and their equivalent pedagogical practices. All of the statistical treatments were also run using the SPSS software. Further, the researcher assured the proper observation of the research ethics protocol. Based on the results, the philosophies of Progressivism (3.63) and Perennialism (3.31) were the most and least prevailing philosophical beliefs, respectively. On the other hand, the most and least prevailing philosophies practiced are Progressivism (3.69) and Essentialism (3.19), respectively. Moreover, research findings revealed that there was a significant relationship between the philosophical beliefs of teachers and their pedagogical practices. In conclusion, this study claims that teachers’ pedagogical practices are dependent to their philosophical beliefs; and as the teachers believed on a particular philosophy of education, they practice it accordingly to the extent of their adherence to the belief. (shrink)

Barbarism was by no means unique to the past 100 years, Jonathan Glover tells us, but ''it is still right that much of 20th-century history has been a very unpleasant surprise.'' This was the century of Passchendaele, Dresden, Nanking, Nagasaki and Rwanda; of the Final Solution, the gulag, the Great Leap Forward, Year Zero and ethnic cleansing -- names that stand for killings in the six and seven figures and for suffering beyond comprehension. The technological progress that inspired the optimism (...) of the Victorians turned out also to multiply the effects of old-fashioned evil and criminal stupidity. (shrink)

Presents the fundamental ideas of Indian thinkers that have shaped the mind of Indian from 1770 to the post-modern era in the middle of 20th century in India. Lists the most Indian influential figures in the field of philosophy, political theory, activicism such as Rabindranath Tagore, Ram Mohan Roy, Swami Vivekananda, and Mohandas Karamchand Gandhi.

In the current era, governments are playing smaller roles in regulating workers’ rights internationally, and transnational corporations (TNCs), non-governmental organisations (NGOs) involved in the struggle for workers’ rights, and labour/trade unions have started to fill this governance gap. This paper focuses on the least researched of the relationships among these three actors, the union–NGO relationship, by analysing the ways in which it affects definitions of TNC responsibility for workers’ rights at their suppliers’ factories. Based on a qualitative study of the (...) union–NGO relationship in the Swedish garment industry between 1996 and 2005, we propose that there are six main configurations of union–NGO relationships. By linking these configurations to their effects on TNC responsibility, we propose that co-ordination relationships between unions and NGOs, particularly high-commitment co-ordination relationships, are likely to result in a broadening of the definition of TNC responsibility, while conflictual relationships, both high and low commitment, result in a narrowing of the definition of TNC responsibility. The study indicates that co-operation is generally more beneficial for both unions and NGOs than is any form of conflictual relationship, in terms of broadening the definition of TNC responsibility. (shrink)

The protection of workers' rights is at the heart of the ongoing debate on business ethics. In balancing transnational corporations' (TNCs) influence in private regulatory systems intended to protect workers' rights in emerging economies, several authors have emphasized the importance of cooperative relationships between unions and NGOs. In practice, however, conflict has often entered into union-NGO relations, weakening the protection of workers' rights. We argue that cooperative union-NGO relationships are difficult to form in part because of the differences existing (...) between how unions and NGOs organize. More specifically, based on two qualitative studies, we demonstrate that the problems stem from differences in organizing related to (i) identity construction, (ii) governance systems, and (iii) resources. The article concludes with a discussion on the possibility of successful union-NGO cooperation and improved protection of workers' rights in emerging economies. (shrink)

While cross-sectoral partnerships are frequently presented as a way to achieve sustainable development, some corporations that first tried using the strategy are now changing direction. Growing tired of what are, in their eyes, inefficient and unproductive cross-sectoral partnerships, firms are starting to form post-cross-sectoral partnerships (‚post-partnerships’) open exclusively to corporations. This paper examines one such post-partnership project, the Business Social Compliance Initiative (BSCI), to analyse the possibility of post-partnerships establishing stable definitions of ‚corporate responsibility’. We do this by creating a (...) theoretical framework based on actor-network theory (ANT) and institutional theory. Using this framework, we show that post-partnerships suffer from the paradox of striving to marginalise those stakeholders whose support they need␣for establishing stable definitions of ‚corporate responsibility’. We conclude by discussing whether or not post-partnership strategies, despite this paradox, can be expected to establish stable definitions of ‚corporate responsibility’. (shrink)

Self-regulation has become a mantra for both governments and private industry in the neoliberal era. Yet, problems remain in terms of supermarket accountability and control. Governments everywhere appear to be under increasing pressure to move beyond the self-regulatory model by enacting legislation which better monitors and polices supermarket-supplier relations. In most cases, the appointment of an oversight authority—known variously as an ombudsman, watchdog, or adjudicator—with the power to set standards and apply sanctions, and to whom suppliers can appeal (...) in cases of perceived abuse, has been advocated. This paper investigates the role of watchdogs and ombudsmen as potential governance mechanisms for overseeing supermarket-supplier relations and explores, in detail, escalating pressure for their appointment within the UK and Australia over the last 20 years. The pursuit of regulatory frameworks to monitor, and adjudicate on, problems arising out of changing power relationships along agri-food supply chains in these two countries has been met with strong resistance from supermarkets; however, after 20 years of debate, it appears that these governments may be on the path towards legislating for an independent body to handle disputes. This paper critically examines ‘self-regulation’ and concludes that watchdogs and ombudsmen are only a partial solution, at best, to the problems that are arising from the neoliberal settings which govern relations between food suppliers and food retailers. (shrink)

There is a growing body of research on the theory and practice of sustainable supply chain management (SSCM). However, relatively little research has been conducted on the extent to which corporations have integrated sustainability principles into the management of their supply chain and the evaluation of supplier performance. The purpose of this article is to explore the extent to which corporate sustainability principles are integrated into supply chain management (SCM) in corporations. Canada is used as a case study in (...) this article. The study included a content analysis of one hundred Canadian corporate sustainable development reports and in-depth interviews with 18 Canadian experts on SSCM. The article highlights the wide array of ways in which Canadian corporations address SSCM issues. Amongst other topics, issues associated with supply chain governance, standards for SSCM, collaboration with suppliers, performance measurement, and accountability within the supply chain are explored. The findings reveal that there are many challenges in integrating sustainability into SCM. These challenges shed light on possible future directions for research in SSCM. This article underlines the need for research that reflects the interconnected nature of the economic, environmental, and social dimensions of sustainability, particularly as it relates to measuring supplier performance on sustainability initiatives. (shrink)

This article is the final one in a series of four papers investigating the stakeholder approach to running businesses. It argues that the optimally viable version of that approach is one in which employees have a co-equal status as stakeholders with shareholders (the maximum allowed for under stakeholder theory) while other groupings only have a minimal status as stakeholders and are generally restricted to just customers, suppliers, and lenders. This version is argued for on the grounds that it both overcomes (...) the implementation problems attendant upon having to serve the interests of a range of groupings and is justified in terms of stakeholder membership being confined to those groupings with a claim on the services of a business in virtue of directly contributing to its economic functioning. The ranking of non-shareholder stakeholders in the recommended version and, in particular, the maximal ranking granted to employees is argued to reflect the scale of the various contributions as measured by the degree to which making it exposes those stakeholders to both financial risk and a non-financial “work-related” risk peculiar to employees. It is concluded that although this is the best available version of the stakeholder approach it may not be the best of all possible ways of running a business. (shrink)

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

Water is the major contributor to the eating and keeping qualities and structure of baked products. Its management and control during preparation, processing, baking, cooling and storage is essential for the optimisation of product quality. This successful and highly practical volume describes in detail the role and control of water in the formation of cake batters, bread, pastry and biscuit doughs, their subsequent processing and the baked product. Now in a fully revised and updated second edition, the book has been (...) expanded and developed through the inclusion of new information and references related to the formation and processing of batters and dough into baked products. The new edition includes a selection of case studies based on practical experience in the manufacture and optimisation of baked products. Each case study, illustrated as appropriate, considers the various roles that water may play in different manufacturing contexts. The book is aimed at food scientists and technologists in bakery companies; ingredient suppliers; flour millers; researchers and students in academic food science departments. (shrink)

With increasing awareness of environmental issues, there has been rising demand for environmental-friendly business practices. Prior research has shown that the implementation of environmental management practices is influenced by existing and potential stakeholder groups in the form of external pressures from legislators, environmental groups, financial institutions and suppliers, as well as internally by employees and owner/manager attitudes and knowledge. However, it has been reported that despite business owner/managers having strong “green” attitudes, the level of implementation of environmental-friendly practices is low. (...) In order to explore the connection between pressures for improved practices and the management actions taken, this article examines how influence from various stakeholders is related to awareness of environmental issues, and how this awareness relates to actions taken within the businesses to reduce the environmental impact of their operations. The results indicate that legislation does result in general environmental awareness, and that organizations are then willing to␣change their business processes and environmental strategies. However, despite their actions they have little awareness of the benefits that might arise from cost reductions from their environmental-friendly practices. Those influenced by their suppliers act to reduce waste, but do not put into place formal environmental management systems, or use environmental messages to market their goods or services. Nevertheless, it can be argued that they have a real commitment to environmental issues, as evidenced by a willingness to voluntarily contribute to environmental organizations. (shrink)

In this article, we examine the link between board composition and an enterprise strategy outcome, stakeholder relations. Because a firm’s enterprise strategy is set at the highest level of the organization, we expect the presence of stakeholder directors (suppliers, customers, employees, and community representatives) to be positively associated with stakeholder performance.Results from an analysis of 3,268 board members representing 250 firms are discussed in the context of both corporate governance and stakeholder management literatures.

This article explores the influence that an organisation’s corporate values have on employees’ behaviour and values both within and outside the work environment. In particular, it focuses on the impact of these values on the personal buying behaviour of employees. The empirical research was undertaken within a case study organisation that produces wine in Spain and involved interviews with senior management, an analysis of company documentation, as well as group discussions with employees supported by an employee survey. The article argues (...) that an organisation’s corporate values influence not only its employees’ behaviour within the work environment, but also impacts on their global values system outside of the work environment. In particular, this was evident within the employees’ buying behaviour practices in relation to supplier loyalty and environmental concern. This has implications for business ethics as an organisation’s value system may go beyond the purely business context. Organisations need to be aware of their impact on employees’ behaviour outside of the work environment; this is particularly the case for multinational companies working across many cultures. (shrink)

Global production networks connect multiple producers involved in fragmented manufacturing processes. Major brands and retailers, considered as lead firms, are under increasing pressure to ensure products made through GPNs are produced sustainably. Theories of governance developed to understand dynamics in outsourced production can provide insight into this issue. However, these theories and related empirical research have often focused on relationships between lead firms and upper-tier suppliers. When manufacturing involves multiple fragmented stages, understanding the role of lead firms becomes more difficult. (...) This article considers new governance roles that lead firms, as buyers, are playing when attempting to promote sustainable practices across all stages of production for buyer-driven industries. The focus is exploring the nature of new governance approaches which lead firms have developed in order to address diverse sustainability challenges found within GPNs, particularly related to lower-tier suppliers. These approaches can involve lead firms working through vertical buyer–seller links or developing new horizontal relationships, which link lead firms with lower-tier suppliers and governance processes in these suppliers’ local productive systems. The findings draw from field research examining how top UK garment retailers provide governance to producers involved in creating cotton garments in India and a review of publicised policies and practices of these retailers related to promoting sustainable production. Five types of governance mechanisms that can involve vertical or horizontal links are identified. Considering the growth of new governance relationships expands previous conceptions of the roles of lead firm governance. (shrink)

This article explores the influence that an organisation's corporate values have on employees' behaviour and values both within and outside the work environment. In particular, it focuses on the impact of these values on the personal buying behaviour of employees. The empirical research was undertaken within a case study organisation that produces wine in Spain and involved interviews with senior management, an analysis of company documentation, as well as group discussions with employees supported by an employee survey. The article argues (...) that an organisation's corporate values influence not only its employees' behaviour within the work environment, but also impacts on their global values system outside of the work environment. In particular, this was evident within the employees' buying behaviour practices in relation to supplier loyalty and environmental concern. This has implications for business ethics as an organisation's value system may go beyond the purely business context. Organisations need to be aware of their impact on employees' behaviour outside of the work environment; this is particularly the case for multinational companies working across many cultures. (shrink)

A variety of stakeholders including investors, corporate managers, customers, suppliers, employees, researchers, and government policy makers have long been interested in the relationship between the financial performance of a corporation and its commitment to business ethics. As a subject of research, the relations between business ethics and corporate valuation has yet to be thoroughly quantified and investigated. This article is an effort to amend this inadequacy by demonstrating a statistically significant association between ethical commitment and corporate valuation measures. Consistent (...) with anecdotal evidence, we have found a significant association between the ethical commitment of Korean companies and their valuation on the Korean stock market. However, the result reveals that the association between ethical commitment and financial performance is not significantly supported. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Organizational Ethics and Health Care: Expanding Bioethics to the Institutional Arena **Laura Jane Bishop (bio), M. Nichelle Cherry (bio), and Martina Darragh* (bio)In 1995, the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) expanded its patient rights standards to include requirements for assuring that hospital business practices would be ethical. Renamed “Patient Rights and Organization Ethics,” these standards are based on the realization that a hospital’s obligation to its (...) patients is derived from two relationships: the patient-provider relationship governed by “clinical ethics,” and the customer-supplier relationship governed by “business ethics.” “[This] boundary between ‘clinical’ ethics and ‘business’ ethics is not clear and in many cases is nonexistent. While marketing and admission practices are seen as issues related to ‘business’ ethics, they can lead to unneeded admissions or demand for unneeded services, both of which can unnecessarily expose the patient to the risk of side effects or complications. Likewise, underutilization of needed services is likely to lead to less than optimal health outcomes” (I. Schyve 1996, p. 17). “These new standards arose out of well-publicized concerns about abuses in which patients were admitted to hospitals unnecessarily and were discharged or transferred only after their insurance expired” (I. Schyve 1996, pp. 15–16).These abuses also sparked eloquent protests against threats to patient well-being and to the nature of the patient-provider relationship in the bioethics literature. The fiduciary responsibility of the provider to inform and to protect the patient was fragmented by insurer business practices such as gag clauses and economic credentialing of providers (VII. Scope Note 31, 1996). The background role that the institution plays, though poorly articulated historically, has been brought sharply into focus by the explosive growth of the managed practice of medicine. The context of medical ethics is no longer limited to the resolution of individual cases, but instead encompasses the adoption of institutional structures to protect and promote patient welfare (IV. Emanuel 1995, p. 335). In this new configuration, the institution and the providers are co-fiduciaries for populations [End Page 189] of patients, and the medicine that is practiced is “appropriately economically disciplined.” The expression “My patient always comes first” is no longer “... intellectually serious or morally responsible.” But, “... to be sure, both conceptually and in practice, being an economically disciplined fiduciary professional or institution is ethically unstable.... The task is to identify the boundaries outside of which institutional policy and behavior will not count as an ethically defensible form of being... [a] fiduciary.” (IV. McCullough 1997, pp. 143–44). This process of delimiting and enforcing boundaries requires the development of “... a language for talking about the ethical values of the organization. If such a language does not exist, discussions about ethics become cumbersome and unlikely to occur” (IV. Cleveland Clinic Foundation 1998, p. 2).As with bioethics generally, the literature addressing organizational ethics is multidisciplinary. JCAHO’s compliance guide for its revised standards, Ethical Issues and Patient Rights, draws on a wealth of ideas from both clinical ethics and business ethics. This is often an awkward alliance. “Because the study of organizational ethics is in its infancy compared to other areas of healthcare ethics, discussions about it often seem like hot air with no palpable payoff” (I. Boyle 1998, p. 2). The fact that “... there is an ancient history that reflects widespread doubt about the moral probity of business” (II. Frederick 1995, p. 209) does not help. To begin, “Aristotle had rude things to say about business” (II. Jackson 1998, p. 401). A brief review of introductions to several of the business ethics textbooks cited in this bibliography reveals that a rebuttal of “business ethics as an oxymoron” is the standard opening paragraph. This stigma is unfounded, and “increased stability” has characterized the state of business ethics literature during the 1990s (II. Beauchamp and Bowie 1997, p. ix). Significant attention has been given to elaborating two often overlapping theories—stakeholder and social contractarian.Originating in the 1960s as a pun on “stockholder,” proponents of stakeholder theory claim that a corporation’s fiduciary responsibility extends beyond increasing its profitability to protecting the rights of individuals or groups affected by its actions. Popular as a strategic planning tool in the... (shrink)

This article examines the unique ethical concerns faced by small nature-based entrepreneurs in their everyday business operations. By using qualitative, empirical data, six kinds of business situations were identified to bring about moral consideration for all the entrepreneurs in this study. The business situations identified were the selection of raw material suppliers, reconciling the quality of production and the lack of resources, the pricing process, the content of marketing information, the close relationships to employees and the collaboration with other entrepreneurs. (...) The ethical argumentation used in these business situations was examined in relation to three ethical theories: utilitarian ethics, deontology and virtue-ethics. This article shows that typical for the decision-making of the small nature-based entrepreneurs in an ethical sense is the variety of ethical arguments used and the important role of customers and employees influencing the ethical views of the entrepreneurs. (shrink)

This paper analyses the arguments for two competing ethical models of business. On the one hand there are theorists like Milton Friedman who claim that the sole social responsibility of business leaders is to maximise stockholder profits. On the other, there are those who argue that a business has ethical responsibilities to many stakeholders: employees, stockholders, retailers, customers, and so on. I argue that a business has ethical responsibility over those functions and purposes over which it has the most autonomous (...) control. The production and selling of products and services for customers is the primary purpose of a business. The generation of profit is a contingent purpose dependent on the exchange between the business and the customer. I define excellent functioning businesses as those that synergise the purposes of stakeholders to provide products and services with ethical outcomes. When ethical considerations and business interests between stakeholders conflict, the responsibility of a business to its customers has primacy over those related to business input stakeholders such as employees, stockholders and suppliers. (shrink)