This book presents the necessary methods and resources for managers and directors to be successful in leading their corporations in a responsible and morally conscious manner and examining the dangers of unethical behavior.

The orientation of this paper is that there is no special science of "business ethics" any more than there is one of "medical ethics" or "legal ethics". While there may be issues that arise in medicine or law that require special treatment, the ways of relating to such issues are derived from a basic ethical stance. Once one has evolved such an ethical stance and thus has incorporated a fundamental mode of relating to her or his fellow human beings, (...) the "how" to deal with various ethical "issues" will follow as a natural consequence of one's ethical stance or modality. It is not necessary, in the formation of one's fundamental ethical stance to know if one is a utilitarian or a deontologist. It is doubtful whether Buddha knew what kind of ethics he was practising. If one conceives of ethics as something extrinsic to various disciplines and attempts to first practise a discipline and then to apply ethics to modify the results of that discipline it is entirely possible that conflicts will result between what is perceived of as the proper pursuit of that discipline and the ethical considerations. The argument of this paper is that it is more efficacious (in addition to being more true) to take ethical considerations into account in the construction of the definition of the discipline. This paper is devoted to showing that business and ethics are not two different and competing fields of interest (thus requiring a discipline of business ethics to be grafted onto the study of business enterprise), but that ethical concerns are part and parcel of the very concept of a business enterprise and the internal operation of a business organization. (shrink)

ABSTRACT:Little theoretical attention has been paid to the question of what obligations corporations and other business enterprises have to the four billion people living at the base of the global economic pyramid. This article makes several theoretical contributions to this topic. First, it is argued that corporations are properly understood as agents of global justice. Second, the legitimacy of global governance institutions and the legitimacy of corporations and other business enterprises are distinguished. Third, it is argued (...) that a deliberative democracy model of corporate legitimacy defended by theorists of political CSR is unsatisfactory. Fourth, it is argued that a Rawlsian theoretical framework fails to provide a satisfactory account of the obligations of corporations regarding global justice. Finally, an ethical conception of CSR grounded in an appropriately modest set of duties tied to corporate relationships is then defended. This position is cosmopolitan in scope and grounded in overlapping arguments for human rights. (shrink)

Based around a wide-ranging selection of real-life examples, this text focuses on how to make and explain "best choice" judgements in international business situations.

Extant business ethics literature available for application to international business demonstrates some variety but no comprehensive principles. While the domains of both international business and business ethics are expanding, they are also becoming increasingly divergent. At the same time, the primacy accorded to the multinational enterprise in both fields ignores the socio-cultural and political embeddedness of economic activities, and multiple agencies in international business (individuals, firms, nations, etc.). Some international business (...) theorists have offered the view that international exchange should be the central building block for theories on international business. In this paper, it is argued that international exchange could be the fundamental unit of analysis for international business ethics as well. The potentially unifying features of exchange norms and ethical principles leads the author to develop some core exchange ethics principles that are tested on three recent international business practices. (shrink)

Power is now measured by economic strength. The world is becoming more integrated. Europe and the Pacific are challenging US dominance. The debt crisis is a crisis in capital and job creation. In the future, key economic issues will be job creation, increased production, grassroots development and safeguarding the poor from the debt crisis. The most viable form of employment will be in small scale enterprises. These meet the real needs of the poorest, are locally owned and controlled, produce (...) products for a local market and use locally available resources. They contribute to economic stability, are not subject to international currency fluctuations and use an environmentally sustainable technology. (shrink)

Employing Porter and Kramer’s corporate social responsibility framework, we explored the strategic CSR programs of two Korean and two Japanese electronics multinational enterprises in Indonesia. We observed that the sample MNEs engage in strategic CSR either through investment in competitive context or the transformation of value chain activities. In addition, these firms strongly favor strategic CSR over responsive CSR, not just because of the economic benefits offered by the former, but also its advantages in managing the programs and communicating (...) with stakeholders. Furthermore, they have developed varied organizational methods and tend to manage their key CSR programs centrally to effectively link them to the competitive strategy. Lastly, the results of our analysis suggest that Korean MNEs have customized their strategic CSR programs for emerging countries more actively than Japanese MNEs. In sum, our analysis elucidates several important features of strategic CSR employed by the MNEs in emerging countries. (shrink)

We examine the extent to which host country income inequality influences multinational enterprises’ (MNE) expansion strategy for foreign production investment, depending on their specific strategic objectives. Applying a transaction cost framework, we predict that national income inequality has an inverted U-shaped relationship with foreign production investment. As inequality increases, MNEs accrue lower transaction costs arising from interactions with various local actors, leading to higher probability of investment. As income inequality increases further, its effect on location attractiveness will become negative, (...) as its attraction effect is increasingly offset by additional monitoring, bargaining, and security costs owing to the more fractious nature of high inequality societies. In addition, we suggest that the impact of income inequality is contingent on investment objectives: The inverted U-shaped relationship is stronger for efficiency-seeking investment but weaker for market-seeking and competence-enhancing investments. We find substantial support for our hypotheses through an analysis of 27 years (1986-2012) of data on Japanese MNEs’ overseas production entries. (shrink)

Corporate social responsibility, sustainability and acting ethically are all accepted business aims, but their meaning and implementation in a global context is far less clear-cut. Global Business Ethics cuts through the confusion to provide a coherent basis for ethical decision-making within the complications of the international business landscape. Underpinned by theory and including worked-through examples of ethical dilemmas and their solutions, this textbook will guide the reader beyond theory to real-world business decisions. Practical tools such (...) as decision trees and suggested principles to apply in dilemma situations give readers the skills and confidence to tackle the ethical challenges they face. A unique working code of ethics is provided as a model with guidance to readers for adaptation and implementation. Case studies include: Walmart, Hershey's, Citibank, Ford, Nike, Johnson & Johnson, Harley- Davidson, The Body Shop and Procter and Gamble. A chapter on the legal aspects of ethics provides clear guidance on the complex relationship between law and ethics in international business. The final part takes an in-depth look at the practical application of ethics in business life. Covering all the major theories of ethics, including an examination of the role of quantification of ethics, Global Business Ethics demonstrates how their principles can be applied to inform better business decisions. (shrink)

A shipping war has broken out between two friendly neighbouring countries: Estonia (a rather poor land; liberated of Soviet occupation in 1991), and Finland (a wealthy one; independent since 1918). Led by their trade union the Finnish dockers boycott Estonian ships demanding for Estonian sailors the salary in the same range as that is in wealthy West-European countries. Estonian Sailors'' Union finds that such a war is not for their better work-conditions but against their working possibilities: the cheap labour force (...) is the only possibility for a poor country to entice foreign investments in it.No matter how the shipping war will be solved – the problem will remain. This is the problem of two opposites – cheap labour force of poor countries and expensive one of wealthy countries –, and international enterprises standing between them. Could such an enterprise survive without using the cheap labour force? And if it could, how could the poor countries survive then? Could there be found a clear unambiguous ethical solution? What ought to be the role of trade unions in such international business conflicts? (shrink)

"Business Ethics and Values" introduces students to the complexities and principles of ethical issues by focusing on developing ethical awareness and the ability to argue business ethics matters. A proven resource, the second edition of this text continues to present a successful blend of concrete issues and academic theory, suitable for undergraduate and postgraduate students with or without practical experience of the world of organisations. It gives as much importance to individual conscience at work as it does to (...) socially responsible behaviour at the corporate level and within the global business world. Hallmark features: Broad coverage of the many issues in this subject ensures that students see the whole picture. The use of real-world case studies and simulations helps to stimulate debate and appreciate the multi-faceted aspects of ethical arguments. New to this edition: New material on the ethics of e-communication, sustainability and the ethical impact of globalisation ensures that students are learning from the most up-to-date material available. Further analysis of Anglo-American approaches to corporate governance and their ethical underpinnings. Short test and assignment questions at the end of each chapter help students to consolidate their learning. More simulation exercises and activities give students the opportunity to reflect on their attitudes to this engaging subject. A well-developed supplements package to support tutors and students includes an instructor's manual, PowerPoint slides and a companion website. Colin Fisher is Professorof Managerial Ethics and Values, Nottingham Business School, Nottingham Trent University. Alan Lovell is Professor of Organisational Accountability and Head of the Department of Accounting, Finance & Economics, Nottingham Business School, Nottingham Trent University. (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)

This article argues that the extension of the international regime of human rights to companies has not changed the essentially state-centric nature of the regime. The analysis focuses on three recent United Nations initiatives: (1) 'Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights', (2) the Global Compact, and (3) the work of the UN special representative on business and human rights. The analysis shows that, despite these initiatives, states (...) are the primary holders of human rights obligations and have a key role in the decision making and enforcement of the regime. Companies have participated to the regime, but they have done so mainly through lobbying governments and thus enforcing the role of states. The analysis also shows that the engagement of new actors to decision-making about the extension of regime norms is essential for norm adoption. Finally, the issue of non-compliant companies needs to be resolved before the regime can be considered established. (shrink)

This work is a brief yet comprehensive introduction to the thought-provoking field of business ethics. It is organized into three parts that cover the role of business in society, the ethics of internal management, and the challenges of international business.

There is a lack of theoretical consensus on how multinational enterprises (MNEs) should implement corporate social responsibility (CSR) to build legitimacy, particularly those operating in the smaller Asian emerging market context, where current growth in the global economy is being felt more acutely than elsewhere. This paper argues for theoretical integration of business ethics (BE) and international business (IB) research to address this concern. Hence, we explore the management of CSR strategies by MNE subsidiaries with specific (...) interest on their proactive adoption of strategic CSR to obtain legitimacy in a foreign host country. Drawing on the recent CSR literature and related theories, including stakeholder theory and institutional theory, propositions and a conceptual framework are developed and presented. The framework integrates BE and IB concepts on the different dimensions of CSR and provides a theoretical derived explanation of the process for strategic adoption of global through to more local CSR strategies by MNE subsidiaries to build legitimacy in an emerging market context. In addition, the framework provides valuable insights into the adoption of different ethical approaches or CSR strategies based on the level of ethical pressure in a host country and the degree of CSR ingrainedness in the parent company. (shrink)

Summing up, we note that the business environment has high dynamism, information uncertainty and unpredictability of events and results of their activities, which requires a revision of traditional approaches to the formation of competitive strategies and management in the global economic space.

This book concentrates on some leading questions in business ethics research in the last two decades and tries to find explanations concerning cultural issues. It focuses on the alignment or congruence between business ethics and cultural contexts with a special emphasis on Eastern European countries. The core of this book is doing business in Central and Eastern Europe (CEE) in order to throw light on the cultural issues related to business ethics. Its primary purpose is a (...) finer view of the impact of national, organizational and professional cultures in business ethics. The general questions encountered in this book are related to the nexus between culture and ethics in (CEE), national, organizational and professional cultures' link to (CEE) countries' ethics. The aim of this book is a deeper understanding of the cultural differences in Central and Eastern Europe. This might help organizations provide better opportunities for doing business across a wide cultural spectrum. With the increase of global mobility, cultural and ethical issues become more and more important. Multi-national corporations might garner a competitive advantage when they understand the importance of local culture and ethics. International business professionals may benefit from a deeper understanding of cultural values that affect the perceptions of individuals during negotiation and decision-making across cultures. Multinational companies that do not take into consideration or minimize the importance of cultural and ethical issues expose themselves to a higher risk of failure. The expectation of the authors of this book is that the conclusions would help alert international business scholars and practitioners of the need to thoroughly understand the cultural issues influencing ethics. (shrink)

This book concentrates on some leading questions in business ethics research in the last two decades and tries to find explanations concerning cultural issues. It focuses on the alignment or congruence between business ethics and cultural contexts with a special emphasis on Eastern European countries. The core of this book is doing business in Central and Eastern Europe (CEE) in order to throw light on the cultural issues related to business ethics. Its primary purpose is a (...) finer view of the impact of national, organizational and professional cultures in business ethics. The general questions encountered in this book are related to the nexus between culture and ethics in (CEE), national, organizational and professional cultures' link to (CEE) countries' ethics. The aim of this book is a deeper understanding of the cultural differences in Central and Eastern Europe. This might help organizations provide better opportunities for doing business across a wide cultural spectrum. With the increase of global mobility, cultural and ethical issues become more and more important. Multi-national corporations might garner a competitive advantage when they understand the importance of local culture and ethics. International business professionals may benefit from a deeper understanding of cultural values that affect the perceptions of individuals during negotiation and decision-making across cultures. Multinational companies that do not take into consideration or minimize the importance of cultural and ethical issues expose themselves to a higher risk of failure. The expectation of the authors of this book is that the conclusions would help alert international business scholars and practitioners of the need to thoroughly understand the cultural issues influencing ethics. (shrink)

The effective functioning of a modern enterprise necessitates the awareness of the owners and managers of its strategic orientations, the state of the internal and external environment, its competitive advantages, entrepreneurial potential and development prospects. A well-built business model of the enterprise helps to face these urgent and permanent challenges. However, the formation of a real business model of the enterprise necessitates mastering of theoretical and methodological bases and implementation of long-term practical measures in the field of assessment, (...) shaping, organization and control. This study offers a comprehensive business model of the enterprise that systematically identifies key factors which influence business activity of the enterprise and provide value logic for doing business in the global economic environment. (shrink)

SMEs are the driving force of economies. However, they face challenges that affect their long-term survival, such as developing ethical business environments. Business ethicsrelated research is underdeveloped in SMEs, thus limiting our understanding of business ethics in SMEs. The purpose of this qualitative study was to investigate how business ethics is conceptualised in SMEs, using the Delphi Technique. In SMEs, business ethics is viewed as doing the right thing, having integrity, being transparent, trustworthy, and behaving (...) responsibly towards internal and external parties. The contribution of this article is that business ethics is perceived as upholding quality, being transparent and trustworthy. (shrink)

The challenge -- No silver bullet -- Protect, respect and remedy -- Strategic paths -- Next steps.

The article analyzes and presents the results of international experience of integration development in the field of tourism and hospitality, modern and efficient methods of integration in the field of tourism. The effective ways of realization of integration development programs at tourist enterprises and hotel chains are determined. The main objectives of integration processes in the field of tourism are also defined. The analysis of the most famous multinational tour operators and the largest hotel chains in the world (...) in the form of a table and graph is shown. The processes that take place at the expense of integration processes in the tourism business are analyzed and identified. A promising direction for further research is the economic feasibility of the feasibility of international integration in the tourism sector and ways to improve the strategies of integration management. (shrink)

What can we learn about management ethics from other cultures and societies? In this textbook, cross-cultural management theory is applied and made relevant to management ethics. To help the reader understand different approaches that global businesses can take to operate successfully and ethically, there are chapters focusing on specific countries and regions. As well as giving the wider geographical, political and cultural contexts, the book includes numerous examples in every chapter to help the reader critique universal assumptions of what is (...) ethical. By taking a closer look at the way we view other cultures and their values, the author challenges us to rethink commonly held assumptions and approaches in cross-cultural management, and to apply a more critical approach. (shrink)

Hard Like Water represents a uniquely Canadian, and international, perspective in a field largely dominated by US writers. The accessible book sets up a "core ethic" that helps the reader to link a few, familiar core values: care for life, welfare, honest communication, and civil rights, with business practices. These values are supplemented by five performance maxims: do no harm; solve the problem; enable informed choice; act, learn, improve; and seek the common good. The book is designed to (...) show how ethical and social values are operative in business, both in North America and internationally, and to help both students and business people to understand how ethics can help solve business problems. (shrink)

International business enterprises face a number of ethical issues when conducting business in unfamiliar parts of the world, especially in places wherecorruption is deeply rooted. This is the situation in Latin America - a highly heterogeneous region characterized by cultural complexity, inconsistencies, andcontradictions at multiple levels of society, with implications for business ethics that are potentially as troubling to outsiders as they are opaque.We briefly indicate the relevant academic literature on this subject, noting that studies (...) of business ethics in Latin America are surprisingly sparse, fragmented, and uneven in comparison with the abundance of published research on business ethics and values in other world regions. Given the importance of Latin American markets, production capacity, raw materials, and economic growth, we identify this situation as a challenge and opportunity for business ethics researchers. Examination of these issues contributes new information and insight into the realities of doing business in emerging market countries and is critical on a theoretical as well as a practical level. (shrink)

Ethical Challenges to Business as Usual offers a fresh approach to the ethics of business, casting a critical eye on entrenched assumptions and practices. It includes central works from such thinkers as John Locke, Karl Marx, Milton Friedman, Naomi Klein, and Thomas Piketty, while also introducing new voices on a range of pressing practical topics including racial discrimination in the workplace, factory farming, climate change, affirmative action, and whistleblowing. A truly applied anthology, this book encourages students to see (...) the real-world applications of the theories at issue and to examine the consequences of business as usual. (shrink)

Combining perspectives on the interplay of two areas of primary importance to our lives--business and society--this anthology brings together a wide range of readings on the subject. Topics covered include the historical evolution of the business enterprise, the emergence and development of the labor force, and the impact of the international marketplace. Barry Castro concentrates on the moral and social aspects of business, the way it affects national economy, the environment, careers, the disadvantaged, government, and public (...) opinion. Considering the abundance of socioeconomic issues in everyday life, he shows that business ethics is particularly relevant to the business student of today, and that the historical, social and ethical dimensions of business are an inseparable and necessary component of business education. (shrink)

This study examines the perceptions of Chinese executives concerning corporate social responsibilities in their Chinese subsidiaries of foreign multinational corporations in China. These Chinese subsidiaries are found in the elementary stage of corporate citizen development even though their headquarters are in the advanced stage. The key challenges of moving Chinese subsidiaries to be better corporate citizens in China are specific Chinese business culture, intellectual property rights, internal due process, insufficient Chinese government support, and lack of knowledge of Chinese subsidiaries. (...) Through this study, foreign multinational corporations need to invest in social capital that facilitates the transfer of knowledge of comprehensive corporate responsible practices from the headquarters to their Chinese subsidiaries, and to encourage their Chinese subsidiaries to be more actively engaged with external business partners that support corporate social responsibility. (shrink)

In recent years, the “financial-like” behavior of non-financial enterprises has contributed to the “off real to virtual,” which has seriously restricted the virtuous cycle of finance and economy. This study selects non-financial enterprises listed on Chinese A-shares from 2008 to 2019 as the research sample, and empirically analyzes the impact of CEOs’ financial background on the shadow banking business of non-financial enterprises and its mechanism. The results show that: CEOs’ FB has a positive effect on shadow (...) banking business of non-financial enterprises; among which, the positive effect generated by non-banking FB is stronger. The conclusions still hold after robustness tests by replacing the measurement of variables, controlling for other shocks, changing the parameter estimation method, and considering the endogeneity problem. The mechanism analysis reveals the positive effect mainly by reducing the level of entity investment by enterprises. The heterogeneity analysis finds that, on the one hand, with respect to the internal micro characteristics of enterprises, the positive effect is more significant in state-owned enterprises, non-manufacturing enterprises, and non-growth stage enterprises. On the other hand, with respect to the external macro environment, the positive effect is more significant in periods of easy monetary policy, in industries with a higher competition or in regions with a better institutional environment. This study reveals the intrinsic mechanism of CEOs’ FB and non-financial enterprises’ shadow banking business, enriches the study of the influencing factors of non-financial enterprises’ shadow banking business, and provides micro-level empirical support to alleviate the “off real to virtual” of the economy. (shrink)

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

Can business be a moral enterprise? -- Employee rights and responsibilities : the internal constituencies of business -- Customers, community, and world : the external constituencies of business.

Through the personal stories of managers running global business, this book takes an inside look into the dilemmas of managers who are asked to make profits ethically according to the dictates of their company's ethics code. It examines what companies `think" they are doing to help managers in those situations and how those managers are actually affected. Thanks to the boost from the 1991 Sentencing Guidelines which minimizes penalties for companies with ethics codes caught in ethical wrongdoing, more than (...) 85% of US companies and two thirds of all Canadian companies and half of all European companies now have Codes of Ethics. Yet, over and over, we hear of stories of personal dilemmas and conflicts experienced by individual managers navigating those business waters in other cultures. "Eileen Morgan does an excellent job of mapping the course for navigating the previously uncharted global ethical waters. By identifying best practices, she leads the reader on a journey from Surviving, to Understanding to Knowing the ethical issues that frequently confront international business people. This is a must read for anyone who wants to successfully compete in world markets." -Michael J. Litwin, Executive Vice President, Chief Credit Officer, Heller Financial, Inc. "Eileen Morgan has combined the pragmatic concerns of the individual manager with the moral concerns that come from personal-life history, cultural roots, and corporate ethical culture …This book focuses on the constructive task of formulating and using an "ethical map," and is sure to be a tonic to conscientious managers who want to navigate cross-cultural commerce with integrity. It has done a superb job of creating order out of the complexity of cross-cultural moral experience by insisting that the complexity must be honored and appropriated rather than ignored or suppressed." -Dr. Richard Beauchamp, Professor of Ethics, Christopher Newport University "In this groundbreaking book, Eileen Morgan has provided scores of real-life examples and developed a framework for approaching ethical leadership in international business. This is mandatory reading for anyone involved in global management today...This is an important book on an important subject." -Stephen H. Rhinesmith, Ph.D. Author, A Manager's Guide to Globalization "Eileen Morgan provides us with a much needed roadmap for how to walk the path of ethical leadership with practical feet. She reminds us that ethical decision-making is a critical aspect of every day leadership, and that we can all choose to be 'ethical pioneers' in our companies and our communities. Every leader engaged in global business can benefit from the lessons and stories included in this book." -Christi A. Olson, Ph.D. Chair, Telecommunications Management Department, Golden Gate University "Eileen Morgan's thoughtful analysis of 'ethical capital' should be read by anyone who does business in a global environment…Morgan's book presents the issue clearly, comprehensively and compellingly, demonstrating that ethics is an indispensable aspect of individual leadership and organizational credibility. …It provides a clear roadmap for business leaders who need to communicate their commitment to integrity and accountability to their employees, their partners, and their customer, making their 'ethical capital' one of their most valuable assets." -Nell Minnow, Principal, Lens, The Corporate Governance Investors "Eileen Morgan gives excellent insight into ethical practices. She focuses on business but her insights have general application. This book also describes differences in ethical interpretation that can arise between diverse cultures. Ms. Morgan has made an excellent contribution to understanding the benefit of positive ethical practices." -David C. Lincoln, Sponsor, Lincoln Center for Applied Ethics, College of Business, Arizona State University President, Arizona Oxides, LLC · First in-depth look at how managers in global companies actually bridge the gap between their organizations and their daily decisions · Explains the need for internal and external ethical operations¦and how organizations often create confusion rather than clarity with the label of "ethics". (shrink)

In Australia as is the case elsewhere, ethics is a developing aspect of business behaviour. Many educational institutions and business enterprises have a strong interest in the subject, particularly from the practical viewpoint of creating an ethical culture in business that has substantial practical effects. In this paper, the codes of ethics of five large enterprises are examined. They were selected as being typical of a collection of corporate codes used in Australia held by the (...) Ethics Research Group at the University of Technology, Sydney. Two codes were from international companies: a chemical manufacturing company and a health, beauty and medical manufacturer. The other codes were from an Australian bank, an Australian federal government business agency, and an Australian mining company.Corporate codes of ethics rarely contain operational definitions to direct their addressees on situations of moral hazard and the required response, to achieve a particular desired ethical corporate culture. Consequently, addressees constitute the locus of ethical decision making in enterprises. By contrast, the language used in the corporate codes examined construct an authoritarian position in the writer/reader relationship from the overuse of grammatical structures such as relational clauses, the passive, nominalisation, grammatical metaphor and modality. Collectively, these structures communicate a strong sense of obligation and even powerlessness since a strong authoritarian tone is established which does not give the addressees the possibility of discretionary decision making. (shrink)

The 20th century produced overwhelming advances in biomedicine with the 1990s introducing 148,000 patents as part of the mapping and sequencing of the human genome. Bioethical realities and debates of prenatal genetic testing, new reproductive technologies, stem cell research, human cloning and DNA data banks have obscured the less provocative public and social issues of gun control, immunization, employee leave programs to assist care for dying relatives, emergency room use as primary care sites by the uninsured, and medical care provision (...) to the homeless. With the events of September 11, the focus has shifted to bioterrorism: an international and global concern that portends broad environmental consequences while requiring a local, community response of which the business enterprise is a part. The tension that results from a required local and global response to bioterrorism and biotechnology by the business community forms a dialectic and provides a venue for addressing business ethics in an international forum. This paper explores the relationship of events and its meaning for business. Part I provides the background of biotechnology and bioterrorism and how the two form a dialectic reality that shapes ethical debate. Part II presents provocations and questions for an emerging ethic based on the integrative response from the public health, medical, business and religious communities. Four areas for business contribution in shaping emerging ethics in the age of biotechnology—bioterrorism are suggested. (shrink)

The book aims to provide a comprehensive, new look at business ethics topics and models from a European perspective. Apart from theoretical arguments and empirical data, case studies and games are used to get closer to real life problematics of business. The book is written by leading business ethics professors of the Community of European Management Schools (CEMS). Chapters of the handbook first describe the central issue and the latest theories and practices. They then introduce new approaches (...) and analyze real world examples. Finally conclusions are provided, which include ethical warning signals, proposals for future research and suggested policy recommendations. (shrink)

The function of the state as a symbol of identity has become increasingly important as major powers of the pre-Cold War era have given way to self-determination. The conventional role of the state has, however, simultaneously been challenged by the process of globalization which transcends such national boundaries. In this book, Barbara Emadi-Coffin seeks to explain this contradiction through a radical new theory. Emadi-Coffin analyzes the increasing interaction of multinational corporations, international organizations and transnational interest groups, such as Greenpeace (...) and Amnesty International, in processess of the global political economy. (shrink)

Rivalry is an attempt to understand facets of entrepreneurial societies by integrating the economic analysis with historical, political and psychological considerations, customarily shunned by economists. The author argues that decisions to make new business ventures, and readiness to take risks are both related to concepts of ranking hierarchies on local, national or international levels. He then constructs a theory of business enterprise and of rivalry supported by evidence on entrepreneurship, innovation, advertising, all examined with their historical, political (...) or organisational concerns. This notion of rivalry among businessmen is used to derive guidelines for anti-trust legislation. Instead of pricing, profitability, concentration ratios and other criteria used today to infer non-competitive behaviour, he suggests using a measure of a firm's relative rate of innovation to infer it. By extending the notion of rivalry to the political sphere, national and international, guidelines are derived to evaluate the performance of state-owned enterprises and to examine policies related to free trade. (shrink)

Digital transformation of traditional enterprises can better develop new customer relationships and help mitigate the business risk of their over-reliance on single-customer relationships. However, little research has been conducted on the internal mechanisms of how enterprise digitalization reshapes corporate customer relationships. In this manuscript, from the perspective of dynamic capability theory, we construct conceptual models of enterprise digital transformation, innovation capability, operational cost, and customer satisfaction, and explore the internal mechanisms of enterprise digital transformation to reduce the dependence (...) of enterprises on large customers. The model is empirically studied by obtaining data on the degree of digital transformation of enterprises through “search statistics” of keywords in the annual reports of Chinese listed companies during 2011–2019. This manuscript finds that digital transformation significantly reduces the concentration of large customers and has become a powerful driver of business model innovation in the digital economy, and this finding remains robust to the use of PSM and instrumental variable methods to address endogeneity. Digital transformation reduces firms’ dependence on large customers through three mechanisms: improving firms’ innovation capabilities, reducing firms’ operating costs, and increasing customer satisfaction. The impact of digital transformation on reducing the dependence of non-state enterprises on large customers is greater than that of state-owned enterprises; the implementation of digital transformation strategies is more helpful for enterprises that have active interactions with customers to reduce their customer concentration; and the reduction of customer concentration is greater for enterprises in regions with higher levels of digital development compared to those in regions with lower levels of digital development. The economic consequence test finds that digital transformation diversifies customer structure and reduces business risks. The analysis of the innovation effect and customer satisfaction effect on reducing the concentration of large customers of enterprisesby implementing digital transformation enriches and expands the dynamic capability theory and provides important insights for enterprises to diversify their customer structure. (shrink)

Social enterprises are hybrid organizations that primarily pursue social missions while also seeking economic gains. Drawing on workplace diversity and conflict theories, this article addresses recent calls for further research to explore how employees within social enterprises experience internal conflicts arising from the organizational pursuit of dual, competing missions (i.e., social and economic), and how social enterprises manage, and potentially overcome, these challenges. In the context of Korean social enterprise, we conducted a quantitative study that built on (...) an initial explorative qualitative study. Our research examined whether perceived participatory human resource management practices and diversity climate increase employees’ affective commitment by reducing their relational conflict. We further explored a boundary condition, perceived social impact, which strengthened this mediation relationship. Our results offer significant insights into social enterprise, business ethics, and broader management literature. Implications for future research and practice are also discussed. (shrink)

This article examines the problems of forming a strategy for enterprise development in a post-industrial society. A characteristic feature of the contemporary post-industrial society is the constantly evolving new knowledge. Globalization processes and comprehensive digitalization affect the economic behavior of all economic entities and should be taken into account in the formation of strategies for their development. The driving force of progress in Contemporary conditions is closely related to the development of the abilities of a person, whose interests and needs (...) are becoming one level higher. New transformation processes require enterprises to carry out balanced investment activities, research markets, competitors, suppliers, and conduct an effective marketing policy. Businesses need to implement planning taking into account the prospects for its development. The enterprise development strategy should be long-term and contain a flexible plan of action in the direction of innovation based on a detailed analysis of the internal and external environment of the enterprise, available resources and potential of the enterprise. For the successful functioning of the enterprise, the objective necessity is the assessment of its competitiveness, which is based on identifying the strengths and weaknesses of the enterprise for its maximum improvement and finding hidden opportunities for development. The implementation of the development strategy requires efficient investments and optimal use of available resources to achieve the planned results. In the process of creating a development strategy, companies need to take into account the various characteristics that affect it. (shrink)

International codes of corporate behavior have been proposed, discussed, negotiated, and promulgated by governments, transnational corporations, and inter-corporate associations over the past few decades. It is not clear that they have been resoundingly as successful in changing corporate behavior – particularly as to corruption and environmental protection – as have national government requirements imposed on foreign enterprises and their own officials. This article arrays the many attempts to structure cooperative action to re-order corporate behavior on several dimensions – (...) restrictive business practices, labor conditions, human rights, environmental production, and corruption. It then assesses the extent to which behavior has been changed and what techniques are more effective in making corporate behavior more ethical. (shrink)

At the forefront of international concerns about global legislation and regulation, a host of noted environmentalists and business ethicists examine ethical issues in consumption from the points of view of environmental sustainability, economic development, and free enterprise.

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)

Among the many approaches to leadership, servant leaders stand out for the emphasis they place on the importance of service to their followers, the organization, and the broader community. We develop and test a multilevel mediation model, in which the relationship between servant leadership and team performance is sequentially transmitted through individual-level organizational citizenship behavior (OCB) and team-based internal social capital. Multilevel structural equation modeling was applied to a sample of 343 teams, reflecting 835 respondents from various departments at 171 (...) hotels in Spain; both top-down (between team leaders and individual employees) and bottom-up relationships (individual employee behavior and team outcomes) were assessed. As anticipated, individual-level OCB and group-level internal social capital fully mediated the positive effect of servant leadership on team performance. Our findings illustrate that servant leadership in the team-based business enterprise context can foster virtuous individual-level OCB to help build task-focused community, in which leaders, followers, and teams can flourish for the common good. Thus, managers should know that serving their team members first and foremost is a positive for the flourishing of all involved. As such, policymakers should pursue communication and training initiatives to encourage the practice of servant leadership. (shrink)

This study explores social enterprises’ strategies for addressing mission drift. Relying on an inductive comparative case study of two Italian social enterprises, we show how stakeholder engagement combined with social accounting can successfully support a social venture to re-balance its positioning between wealth generation and social value creation. Indeed, stakeholder engagement helps the internal actors of a social enterprise to rationalize and embody pro-social values previously abandoned, while social accounting reinforces this embodiment process by showing the reintroduced social (...) commitment of the social enterprise to external audiences. Conversely, strategies focused only on social accounting and without significant engagement of external stakeholders prove to be unsuccessful in counterbalancing mission drift because they fail to activate the necessary process of internal re-introduction and operationalization of pro-social values and objectives. (shrink)

“Political” corporate social responsibility involves businesses taking a political role to address “regulatory gaps” caused by weak or insufficient social and environmental standards and norms. The literature on political CSR focuses mostly on how large multinational corporations can address environmental and social problems that arise globally along their supply chains. This article addresses political CSR of small- and medium-sized enterprises. SMEs represent a major share of economic value creation worldwide and are increasingly exposed to regulatory gaps. Although SMEs differ (...) substantially from MNCs in terms of organizational characteristics, behavioral guiding principles, and financial and human resources, they should still tackle such regulatory gaps by accepting a political role. Drawing on Zadek’s model of CSR-based organizational learning and Young’s concept of social connection, this study develops a conceptual framework as the basis for discussing why SMEs should become involved in political CSR, how they can manage political CSR internally and systematically, and how their progress can be assessed by third-party observers externally. (shrink)

In this article, we contend that due to their size and emphasis upon addressing external social concerns, the corporate relationship between social enterprises, social awareness and action is more complex than whether or not these organisations engage in corporate social responsibility (CSR). This includes organisations that place less emphasis on CSR as well as other organisations that may be very proficient in CSR initiatives, but are less successful in recording practices. In this context, we identify a number of internal (...) CSR markers that may be applied to measuring the extent to which internal CSR practices are being observed. These considerations may be contrasted with the evidence that community based CSR activities is often well developed in private sector small to medium sized enterprises (SMEs) (Observatory of European SMEs, 2002), a situation which may be replicated in social enterprises especially those that have grown from micro-enterprises embedded in local communities. We place particular emphasis upon the implications for employee management. Underpinning our position is the Aristotelian-informed capabilities approach, a theory of human development and quality of life, developed by Sen (1992; 1999) and Nussbaum (1999) which has been developed further, in an organisational context, (e.g., Cornelius, 2002); Cornelius and Gagnon, 2004; Gagnon and Cornelius, 1999; Vogt, 2005. We contend that the capabilities approach offers additional insights into CSR in social enterprises in general and internal CSR activity in particular. Our article concludes with proposals for future research initiatives and reflections upon social enterprise development from a capabilities perspective. (shrink)