Global distributive justice and the corporate duty to aid

This article challenges an argument from Tom Donaldson's recent bookThe Ethics of International Business with a claim that distributive justice, deemed in many circles to impose a duty of mutual aid on individuals and nations, establishes a basis for holding multinational corporations to such a duty as well. The root idea I advocate is that Rawls' theory of justice can be deployed — beyond its original intent yet in line with its spirit — to underwrite aprima facie obligation of international business to render aid to ameliorate suffering on behalf of the inhabitants of developing countries in which they operate.Kevin T. Jackson is Assistant Professor of Ethics in the Department of Legal and Ethical Studies at the Graduate School of Business, Fordham University in New York City. He holds a J.D. degree and a Ph.D. degree in Philosophy. Formerly a Legal Aid attorney, Visiting Assistant Professor at Georgetown University, and a business consultant, Dr. Jackson currently teaches courses in business ethics and legal philosophy.     

Executive attitudes,organizational size and ethical issues: Perspectives on a service industry

Responding to Randall and Gibson's (1990) call for more rigorous methodologies in empirically-based ethics research, this paper develops propositions — based on both previous ethics research as well as the larger organizational behavior literature — examining the impact of attitudes, leadership, presence/absence of ethical codes and organizational size on corporate ethical behavior. The results, which come from a mail survey of 149 companies in a major U.S. service industry, indicate that attitudes and organizational size are the best predictors of ethical behavior. Leadership and ethical codes contribute little to predicting ethical behavior. The paper concludes with an assessment of the relevant propositions, as well as a delineation of future research needs.Dr. Paul R. Murphy is currently Associate Professor of Business Logistics at John Carroll University. His previous publications have appeared in journals such as theTransportation Journal, Transportation Research, Journal of Business Logistics, Journal of Global Marketing, andIndustrial Marketing Management.Dr. Jonathan E. Smith is Associate Professor of Management and Marketing at John Carroll University. He teaches courses in organizational behavior and human resource management. His current research interests are in business ethics, leadership and organizational uses of information. Dr. Smith consults with organizations regarding management development, ethics and business/organizational communications.Dr. James M. Daley is Associate Dean at John Carroll University and is a consultant to business, government, and academia; his publications include one book and over 40 articles.     

Individual privacy and computer-based human resource information systems

The proliferation of computers in the business realm may lead to ethical problems between individual and societal rights, and the organization's need to control costs. In an attempt to explore the causes of this potential conflict, this study examined the varying levels of sensitivity 223 respondents assigned to different types of information typically stored in computer-based human resource information systems. It was found that information most directly related to the job — pay rate, fringe benefits, educational history — was considered to be the most sensitive. Participants, however, were more concerned about certain types of individuals/groups accessing these systems than about the kinds of information contained in them. Implications of these findings are discussed.G. Stephen Taylor is an Assistant Professor of Management at Mississippi State University. He teaches in the areas of personnel administration and human resource management. His research interests include the application of computers to personnel management, the study of ethical issues surrounding the use of computers, and performance appraisal.J. Steve Davis is an Assistant Professor in the Department of Management at Clemson University, where he teaches courses in management information systems. His research interests include human factors in computer systems, and the impact of computer systems on society.     

A framework for organizational success

The contention of this paper is that the marketing concept is but one aspect of a philosophy of business referred to by the authors as the framework for organizational success. This framework maintains that the marketing concept must work together with good management approaches and with ethical business practices in order to satisfy the needs and wants of the various publics of the organization — customers, employees, suppliers, society — and, in the long run, ensure the satisfaction of the needs of the organization itself. The authors propose that focusing on one concept, and ignoring the other two aspects, is not likely to promote organizational success. Hershey H. Friedman is Professor of Marketing at Brooklyn College. He has published in the Journal of Advertising Research, Journal of Applied Psychology, Akron Business and Economic Review, Journal of the Academy of Marketing Science, Simulation, Journal of the Market Research Society, Journal of Public Policy and Marketing, and the Journal of Business Ethics. Linda Weiser Friedman is Associate Professor of Statistics and Computer Information Systems at Baruch College. She has published in Computers and Operations Research, Behavioral Science, Omega, Simulation, Journal of Statistical Computation and Simulation, Journal of Advertising Research, Interface, and the Journal of the Academy of Marketing Sciences.     

A comparison of Nigerian to American views of bribery and extortion in international commerce

This study investigates the differences in the way bribery and extortion is perceived by two different cultures — American and Nigerian. Two hundred and forty American business students and one hundred and eighty Nigerian business students were presented with three scenarios describing a businessman offering a bribe to a government official and three scenarios describing a businessman being forced to pay a bribe to an official in order to do business. The Reidenbach-Robin instrument was used to measure the ethical reactions of the two samples to these scenarios. Results indicate that ethical reactions to bribery and extortion vary by (a) the nationality of the person offering the bribe, and (b) the country where the bribe is offered. In addition, Nigerians perceived some of the scenarios as being less unethical than did Americans. John Tsalikis is an Assistant Professor of Marketing at Florida International University. His research interests include marketing ethics, international marketing, and direct marketing. His articles have appeared in the Journal of the Academy of Marketing Science, Journal of Business Ethics, Psychology and Marketing, and the Journal of International Consumer Marketing. Osita Nwachukwu is an Assistant Professor of Management at Western Illinois University. His research interests include marketing ethics, and business policy. His articles have appeared in the Journal of Business Ethics, and the Journal of International Consumer Marketing.     

Bribery and extortion in international business: Ethical perceptions of Greeks compared to Americans

This study investigates the differences in he way bribery and extortion is perceived by two different cultures — American and Greek. Two hundred and forty American business students and two hundred and four Greek business students were presented with three scenarios describing a businessman offering a bribe to a government official and three scenarios describing a businessman being forced to pay a bribe to an official in order to do business. The Reidenbach-Robin instrument was used to measure the ethical reactions of the two samples to these scenarios. Results indicate that ethical reactions to bribery and extortion vary by (a) the nationality of the person offering the bribe, and (b) the country where the bribe is offered. In addition, Greeks perceived some of the scenarios as being less unethical than did Americans.John Tsalikis is an Associate Professor of Marketing at Florida International University. His research interests include marketing ethics, international marketing, and direct marketing. His articles have appeared in theJournal of the Academy of Marketing Science, Journal of Business Ethics, Psychology and Marketing, and theJournal of International Consumer Marketing.Michael S. LaTour is an Associate Professor of Marketing at Auburn University. His research interests include marketing ethics, and emotional responses to advertising. His articles have appeared in theJournal of Business Ethics, Psychology and Marketing, Journal of Health Care Marketing, and theJournal of Advertising.The authors contributed equally to this article.     

An experimental assessment of alternative teaching approaches for introducing business ethics to undergraduate business students

This study employs a pretest-posttest experimental design to extend recent research pertaining to the effects of teaching business ethics material. Results on a variety of perceptual and attitudinal measures are compared across three groups of students — one which discussed the ethicality of brief business situations (the business scenario discussion approach), one which was given a more philosophically oriented lecture (the philosophical lecture approach), and a third group which received no specific lecture or discussion pertaining to business ethics. Results showed some significant differences across the three groups and demonstrated that for a single lecture, the method used to teach ethics can differentially impact ethical attitudes and perceptions. Various demographic and background variables did not moderate the relationship between the teaching method and the dependent variables, but the sex of the student was strongly associated with the ethical attitude and perception measures. Scot Burton is Assistant Professor of Marketing at Louisiana State University. His research has appeared in the Journal of Marketing Research, the Journal of Consumer Research, and the Journal of Marketing, among others. Mark. W. Johnston is Assistant Professor of Marketing at Louisianna State University. His research has been published in journals such as the Journal of Marketing Research, the Journal of Applied Psychology, and the Journal of Business Research. Elizabeth J. Wilson is Assistant Professor of Marketing at Louisiana State University. Her research has been published in the Journal of Advertising Research and Industrial Marketing Management.     

The American marketing association code of ethics: Instructions for marketers

This article addresses the two main obstacles — ignorance and conflict — that block the pathway to ethically proper conduct, both generally in business and specifically in marketing. It begins with a brief examination of theories of the moral good which emphasizes the Greco-Roman humanistic tradition and the Judeo-Christian religious tradition. A professional code of ethics, such as the code of the American Marketing Association, is meaningful only if human beings are regarded as making moral judgments that, objectively speaking, are morally wrong, that is only when the code is considered a set of moral absolutes.Following that, the question of ignorance is dealt with utilizing the American Marketing Association code of ethics. The specific items in that code are related to the three central principles of economic justice: equivalence, contributive justice, and distributive justice. In the second section, the question of conflict is encountered in the context of four other ethical principles — double effect, culpability, good end and bad means, self-determination — that are likely to be helpful in dealing with two cases that are especially instructive because they are limiting cases: the dilemma and the hard case. The role of the hero or champion in conflicts is underscored.Edward J. O'Boyle is Research Associate and Associate Professor of Economics at Louisiana Tech University. His current research interests include quality-productivity-ethics, ethics in marketing, and improved pedagogies for teaching ethics. His articles have been published inMonthly Labor Review, Review of Social Economy, Linacre Quarterly, Louisiana Economy, International Journal of Social Economics, Marketing Education Review, andBusiness Insights.Lyndon E. Dawson, Jr., is Professor of Marketing at Louisiana Tech University and Lecturer at the Poznan School of Management in Poland. He received his Ph.D. in 1967. His current research interests focus upon ethical issues in business and the application of current marketing theory and practice in Eastern Europe. His recent co-authored works in ethics appear inJournal of the Academy of Marketing Science, Business Insights, andMarketing Education Review.     

Ethical congruency of constituent groups

This research investigates the perceptions of five constituent groups of an accredited business school — their perceptions of others' ethics, of their own ethics and ideal values, and of how business ethics can be improved. Self-described behavior from the constituent groups is quite similar, yet is decidedly different from that which respondents felt others would do. Undergraduate business students tended to have the lowest estimation of others' ethics in addition to the least ethical self-described behavior compared with other constituent groups. All constituents were solidly in favor of improving ethics by developing principles of business ethics, requiring ethics courses in business schools and introducing industry codes of ethics. People are much more ethical than they are perceived to be. Knowing that others are more ethical may in turn cause other people to act more ethically. Similarly, believing that others are less ethical may encourage less ethical behavior.Harriet Stephenson, Professor of Management in the Albers School of Business and Economics, Robert D. O'Brien Chair, is Director of The Entrepreneurship Center at Seattle University. She teaches Entrepreneurship, Small Business Management, and Business Policy and Organization, and does research in the areas of business ethics, entrepreneurship, and marketing for small business.Sharon Galbraith, is an Assistant Professor in the Albers School of Business and Economics at Seattle University, Seattle Washington. She teaches Marketing and Marketing Research and does research in the areas of consumer information processing, pedagogy, business ethics, and small business.Robert B. Grimm, an Associate Professor of Management in the Albers School of Business and Economics, and also currently Rector of the Seattle University Jesuit Community, teaches and consults in the area of business ethics. He has published inConsultation and a number of proceedings.     

A paradigm for design,promulgation and enforcement of ethical codes

The paper explores the promise of ethical codes as a means to control unethical behavior in business. After a review of arguments for ethical codes from outside the business system, the paper outlines the arguments for codes from inside the business system at the level of the industry, firm and individual executive.The paper then discusses the problems of code design — the dilemma between specific practices and general precepts — and offers a model for a thoroughgoing code. This is followed by a discussion of the problems of promulgation and code enforcement.In conclusion, the paper summarizes the limitations of ethical codes and the arguments which have been made against them. Earl A. Molander is Associate Professor of Management at Portland State University. He is the author of Responsive Capitalism,and co-author of Is the Ethics of Business Changing, which appeared in Harvard Business Review.     

Are the elderly really machiavellian? A reinterpretation of an unexpected finding

In an article published recently in theJournal of Business Ethics, Vitellet al. (1991) found that elderly respondents scored surprisingly high on a measure of Machiavellianism. This paper offers an alternative explanation for this unexpected result — it may be an artifact of the survey format employed — and recommends additional research to help clarify the issues raised by Vitell and his colleagues.Peter E. Mudrack is an Assistant Professor in the Department of Management and Organization Sciences at Wayne State University's School of Business Administration. His publications have appeared inHuman Relations, Journal of Business Ethics, andJournal of Organizational Behavior.     

A study of the effect of age and gender upon student business ethics

The present survey was voluntarily and anonymously completed by 2,196 students enrolled in business courses at the University of Southern Mississippi. The intent of the survey was to determine whether or not age or gender played a role in a person's perception of proper ethical conduct.The findings suggests that gender is a significant factor in the determination of ethical conduct and that females are more ethical than males in their perception of business ethical situations.Students were divided into groups according to age as follows: under 21 years, 22–30 years, 31–40 years, and 40 plus years. The results of this survey also suggest that age is a determining factor in making ethical decisions. The statistics suggest that those students falling in the 40 plus years age group were the most ethical, followed in order by the 31–40 group, the 22–30 group and those of 21 years of age and under.Durwood Ruegger is currently an Associate Professor of Finance and General Business at the University of Southern Mississippi. Prior to joining the University, he was a practicing attorney and former municipal judge. His publications have appeared in theJournal of Health and Human Resources Administration, Labor Law Journal, Business Insights, andThe Practical Real Estate Lawyer.Ernest W. King is an Assistant Professor of Finance and General Business at the University of Southern Mississippi. He is a member of the Florida and Washington, D.C. Bars. His publications have appeared inBusiness Insights, Nursing Administration Quarterly, and theCPCU Journal.     

A comparison of ethical perceptions of business and engineering majors

Previous research has reported that ethical values of business students are lower than those of their peers in other majors. The purpose of this study was to investigate whether a self-selection bias with respect to ethical values exists among students enrolled as business majors when compared with students planning to enter the engineering profession. Engineering students are exposed to a similar technical orientation in academic curricula and also supply the market for managers.A survey instrument was administered to 195 students enrolled in undergraduate business and engineering programs and a graduate business program. The research instrument measured how business and engineering students perceive their own ethical beliefs and actions and how they perceived the ethical beliefs and actions of their peers.The results indicate a perceptual trap, or the self-versus-others disparity exists for the entire sample. However, there was a divergence between the two groups on the issue of whistle blowing. Engineers may be more sensitive to this issue. It was concluded that if a self-selection process exists, it is present for both business and engineering professional tracks with implications for educators in both disciplines.It is not enough to teach a man a specialty. Through it he may become a kind of useful machine, but not a harmoniously developed personality. It is essential that the student acquire an understanding of and a lively feeling for values. He must acquire a vivid sense of the beautiful and of the morally good. Otherwise he — with his specialized knowledge — more closely resembles a trained dog than a harmoniously developed person. He must learn to understand the motives of human beings, heir illusions, and their sufferings in order to acquire a proper relationship to individual fellow men and to the community.— Albert EinsteinPriscilla O'Clock, Ph.D., 1991, CPA, Assistant Professor, Xavier University.Marilyn Okleshen, Ph.D., 1991, CPA, Associate Professor, Mankato State University.     

The relationship between moral decisions and their consequences: A tradeoff analysis approach

While at one level, the literature in ethics for some issues is broad, deep, and complex, for others it appears limited and lacking in sophistication. This cross — cultural study deals not only with the moral reasoning behind moral dilemmas in business but also with the magnitudes these dilemmas in concert with their possible outcomes and consequences. While many studies discuss the effect of these outcomes, we have found none that have explicitly examined them.The methodology and analysis use a novel approach for this topic, and is a major contribution of the paper: that of tradeoff analysis. Tradeoff analysis is capable of revealing both the nature of an individual's moral reasoning as well as interactions between this and the rewards or consequences for the moral action. These interactions are illustrated with a cross — cultural pilot study conducted in Singapore and the United States, which reveal noteworthy differences in moral decision making.William R. Swinyard is a Professor of Business Management at Brigham Young University, Provo, Utah, USA, 84602.Thomas J. Delong is a Professor of Education at the same university.Peng Sim Cheng is a Senior Tutor at the National University of Singapore, School of Management, Singapore 0511. Correspondence should be addressed to the first author.     

Ethical implications of business format franchising

Franchising in the business format sector accounted for approximately 35 percent of retail sales in the U.S. in 1991. Consequently, the franchising industry has a clear ethical responsibility to the public. At the same time, there exists an ethical obligation of the two major factors in the industry — the franchisor and the franchise — toward each other. Because the franchise agreement, which is the basis of the relationship, is originated by the franchisor, an asymmetrical distribution of power often exists, resulting in opportunistic behavior by the franchisor. In other cases, questionable or unethical practices by franchisees likewise result in conflict. This paper examines some of the basic areas of the franchise relationship which result in conflict, and discusses the situation analysis in business format franchising, which shows promise for reduction of conflict and unethical behavior for the future.Gordon Storholm is Associate Professor of Marketing at St. John's University, New York, N.Y. He is an active member of the Society of Franchising and has published several articles in the franchising field. He has contributed to this Journal and has several years' experience as a consultant in the Franchising and Marketing fields.Eberhard E. Scheuing is Professor of Marketing at St. John's University, New York, N.Y. He is Director of the Business Research Institute and has published several books and articles in the marketing field. He is widely recognized as a leading authority in the field of ethics in service quality.     

What is the American business value system?

The model of free enterprise that has developed in the United States presupposes a value system. The central value is freedom. Next come goods and the means of acquiring them, viz., money and profit. Competition is central. But fairness of transactions is presupposed, and this implies honesty, truthfulness, and general respect for persons. Optimism and faith in the future have been ingredients from the start. Each of these values can be abused, and such abuses characterize the seamy side of capitalism. The Myth of Amoral Business helps undermine the values. Yet the changes American society is demanding of business can be seen as reaffirming the values the system presupposes. The imperative is for business to live up to its own best traditions — a social demand that business can and should meet if it wishes to continue as a system of free enterprise. Richard T. De George is University Distinguished Professor of Philosophy and Co-Director of the Center for Humanistic Studies at the University of Kansas. He is author or editor of thirteen books, including Ethics and Society; Ethics, Free Enterprise and Public Policy; and Business Ethics.     

Managerial morality and behavior: The questionable payments issue

This research examined the effect of managers' value systems and personality traits on ethical decision behavior, in the context of questionable payments to foreign officials to assure business. Using a complex international management game to simulate the real-world competitive business environment, the study measured the instrumental and terminal value systems of the game participants as well as their tendencies towards Machiavellianism. It then observed their decision behavior in response to what was clearly a demand for an illegal payment.The findings indicate that ethical values, in most instances, were subordinated to the manager's duty to achieve company goals. They also revealed that the inner conflict between what was professed as right, and what had to be done in practice, was generally resolved on the basis of utility rather than on ethical or moral grounds. Richard D. Rosenberg is Senior Lecturer at the Faculty of Industrial Engineering and Management at Technion — Israel Institute of Technology. He has written several articles which have been published e.g., Industrial and Labor Relations Review; Industrial Relations; and Industrial Marketing Management.The guidance and suggestions of Professor Y. Rim and Dr. M. Erez of the Faculty of Industrial Engineering and Management at the Technion are gratefully acknowledged.     

Political actions in business networks a Swedish case

In international business studies, as well as in political science, the influence of political rules on business firms is assumed to be homogeneous and unidirectional. However, if the relationship between the political and the business actors is seen as an interaction, a different conclusion will be reached. We would like to add more knowledge to international business studies by analysing the interaction between governmental bodies and business units using a network model. In this paper, we study a ‘political case’ — the Bofors-India case — and analyse how this affair influenced other Swedish companies and their way of doing business in India. The question addressed is how the interaction between some parts of the government and a company — the development of one business relationship — is interwoven with other relationships. One conclusion reached is that a political act toward one MNC will affect other companies, although not in the same way. The degree to which and the way in which the other companies will be influenced depends on where they are positioned within the networks in relation to the problematic relationship.     

Some perspectives of managerial ethical leadership

If managerial leadership means deciding responsibly in a complex situation, the ethical dimension of leadership — besides its analytical and instrumental aspects — has to be clarified. I present and discuss several essential aspects of managerial ethical leadership: (a) some major presuppositions (the concepts of leadership and responsibility), (b) three normative-ethical tasks of the activity of leadership (perceiving, interpreting and creating reality — being responsible for the effect of one's decisions on the human beings concerned — being responsible for the implementation of corporate goals) and (c) some claims on the leader as a subject responsible for his or her own activities. I shall conclude by adding some reflections on the limits of managerial ethical leadership. Georges Enderle is a private tutor for business ethics at the University of St. Gallen, Switzerland. Since 1983 he has been Director of the Institute for Business Ethics. He is the author of Sicherung des Existenzminimums im nationalen und internationallen Kontext — eine wirtschaftsethische Studie,and he has written various articles on business ethics.     

Business ethics: Micro and macro

As in the field of economics, the questions of business ethics can be divided into two distinguishable types — micro and macro. Micro-ethical questions arise primarily for subordinates in an organization and concern what should be done when the demands of conscience conflict with perceived occupational requirements. Macro-ethical questions arise principally for superiors and concern the setting of policy for the organization in general. The present article elaborates upon this distinction and advances a line argument for resolving micro-ethical problems when their affinity to macro-ethical issues is noted. James Brummer holds a joint appointment as Adjunct Assistant Professor in the Philosophy Departments of the University of Wisconsin-Eau Claire and the University of Wisconsin-Stout. He has published articles in the Journal of Business Ethics, Educational Forum, and the Business and Professional Ethics Journal in the areas of personal and professional ethics.