Are corporations institutionalizing ethics?

Very little has been done to find out what corporations have done to build ethical values into their organizations. In this report on a survey of 1984 Fortune 1000 industrial and service companies the Center for Business Ethics reveals some facts regarding codes of ethics, ethics committees, social audits, ethics training programs, boards of directors, and other areas where corporations might institutionalize ethics. Based on the survey, the Center for Business Ethics is convinced that corporations are beginning to take steps to institutionalize ethics, while recognizing that in most cases more specific mechanisms and strategies need to be implemented to make their ethics efforts truly effective.Established in 1976, The Center for Business Ethics at Bentley College is dedicated to providing a nonpartisan forum for the exchange of ideas on business ethics in an industrial society. Special emphasis is placed on these ideas as they relate to the activities of corporations, labor, government, special interest groups, and the professions. The Center sponsors National Conferences on Business Ethics, publishes their proceedings, works with academic institutions and corporations to set up business ethics courses and programs, and generally serves as a clearing house for ideas and materials on business ethics.The report and survey were prepared by the following people from the Center for Business Ethics: W. Michael Hoffman, Director; Ann Lange, Research Associate; Jennifer Mills Moore, Research Associate; Karen Donovan, Graduate Assistant; Paulette Mungillo, Aileene McDonagh, Paula Vanetti, Linda Ledoux, Staff Assistants.     

The Unholy Alliance of Business and Science

This paper will build on a recent article appearing in the Harvard Business Review that blamed the alleged crisis in management education on the scientific model that has been adopted as the sole means of gaining knowledge about human behavior and organizations. The solution, they argue, is for business schools to realize that business management is not a scientific discipline but a profession, and deal with the things a professional education requires. We will expand on this article and discuss its implications by looking at the scientific model from a philosophical perspective and dealing with the issue of whether management is a profession. Our discussion of these issues has implications for our understanding of business in society and the design of the business school curriculum. Rogene A. Buchholz is the Legendre-Soule Chair in Business Ethics Emeritus in the College of Business Administration at Loyola University of New Orleans. He has published over seventy-five articles and is the author of ten books in the areas of business and public policy, business ethics, and the environment. He is on the editorial board of several journals and served as chair of the Social Issues in Management Division of the Academy of Management. Sandra B. Rosenthal is Provost Eminent Professor of Philosophy at Loyola University of New Orleans. She has published approximately 200 articles and 11 books on various dimensions of American pragmatism and its relevance for other areas of philosophy, and in both books and articles has applied pragmatism to a wide range of business ethics issues. She is a member of the editorial board of several journals, and has served as president of numerous philosophical societies.     

Predominant sources and contributors of influential business ethics research: evidence and implications from a threshold citation analysis

Influential or frequently cited business ethics research does not appear in a vacuum; our study reveals its predominant sources and contributors by discipline. By examining citations from articles published in three top business ethics journals (Journal of Business Ethics, Business Ethics Quarterly and Business Ethics: A European Review) over the period 2004–2008, we document that the preponderance of influential business ethics research comes primarily from the management faculty. In addition, management journals and management books are the predominant sources for influential business ethics research. Further, among the management fields, organizational behavior and organizational structure predominate leadership and strategy as the major subject areas for influential business ethics research, suggesting that this influential body of research is focused on a micro rather than on a macro context. These empirical results lend credence to the perception that there is a silo effect in influential business ethics research and suggest that business ethics research in a micro context might have permeated to the teaching of business ethics.     

Toward the development of a multidimensional scale for improving evaluations of Business Ethics

This study represents an improvement in the ethics scales inventory published in a 1988 Journal of Business Ethics article. The article presents the distillation and validation process whereby the original 33 item inventory was reduced to eight items. These eight items comprise the following ethical dimensions: a moral equity dimension, a relativism dimension, and a contractualism dimension. The multidimensional ethics scale demonstrates significant predictive ability.Dr Reidenbach is the Director of the Center for Business Development and Research and Professor of Marketing at the University of Southern Mississippi. He is the co-author of two books on business ethics and has contributed numerous articles on ethics to various academic and applied business journals. Dr Donald P. Robin, Professor of Business Ethics and Professor of Marketing, is co-author with Dr R. Eric Reidenbach of two recent books (1989) on business ethics. Both books, Business Ethics: Where Profits Meet Value Systems and Ethics and Profits: A Convergence of Corporate America's Economic and Social Responsibilities were published by Prentice-Hall. Dr Robin is a frequent lecturer on business ethics and has written several articles on the subject for both ethics and business journals.     

The ethical issue of international bribery: A study of attitudes among U.S. business professionals

Restrictions upon international bribery by U.S. business firms, as incorporated in the Foreign Corrupt Practices Act, have been controversial since this legislation was passed in 1977. Despite many attempts to repeal or change the law, it remains as originally enacted.This article reports on a survey of U.S. business professionals concerning international bribery. Response to our survey reveals a divided business community in terms of their opinions on the ethics of international payments prohibited by the present law.In addition to a lack of consensus about the morality of payments, the survey also reveals a diversity in the viewpoints of respondents. Moralism, pragmatism, cultural relativism, and legalism are four distinct underlying assumptions apparent in the attitudes of U.S. business professionals on the issue of questionable international payments. Justin G. Longenecker is an Emeritus Chavanne Professor of Christian Ethics in Business at Baylor University. He has written several articles and he is the co-author of two books: Small Business Management (1987) and Management (1984). Joseph A. McKinney is Professor of Economics and Co-Director of Master of International Management Program at Baylor University. His articles have been published in journals such as Atlantic Economic Journal and Columbia Journal of World Business. Carlos W. Moore is an Edwin W. Streetman Professor of Marketing at Baylor University. He is the co-author of Small Business Management (Cincinnati, South-Western Publishing Company, 1987).     

FOCUS: Business Ethics in Europe Current Developments in German Business Ethics

Germany is at the leading edge of European reflection on the nature and requirements of ethical business. Two scholars in the field provide a survey of the main lines of discussion in the current German business ethics scene, and discuss three important books which are helping set the scene for further developments. Prof. Dr. Horst Steinmann holds the Chair for Business Administration and Management at the University of Erlangen-Nürnberg, Lange Gasse 20, D-90403 Nürnberg, and Dipl.-Hdl. Brigitte Kustermann is research assistant to the same chair.     

Recent developments in European business ethics

In the first part of the paper, factual information is given about developments in European business ethics since it started on a more or less institutionalized basis, five or six years ago. In the second part some comments are presented on the meaning of the developments and the possible causes. Attention is given to resemblances and differences between American and European business ethics. In the short last part some suggestions are proposed about tasks business ethics will face in the next decade.Henk J. L. van Luijk is Professor of Ethics at Nijenrode, The Netherlands School of Business, Breukelen, The Netherlands, and at the University of Groningen, The Netherlands. He is chairman of the Executive Committee of EBEN, The European Business Ethics Network. His special field is business ethics. He is the author of three books on various philosophical subjects. In his special field he published several articles, mainly in Dutch philosophical and professional journals.     

A conceptual model of corporate moral development

The conceptual model presented in this article argues that corporations exhibit specific behaviors that signal their true level of moral development. Accordingly, the authors identify five levels of moral development and discuss the dynamics that move corporations from one level to another. Examples of corporate behavior which are indicative of specific stages of moral development are offered.R. Eric Reidenbach is Professor of Marketing and Director of the Center for Business Development and Research at the University of Southern Mississippi. He has written extensively on business and marketing ethics.Donald P. Robin, Professor of Business Ethics and Professor of Marketing at the University of Southern Mississippi, is coauthor with R. Eric Reidenbach of two recent books on business ethics with Prentice-Hall. He is a frequent lecturer on business ethics and is the author of several articles on the subject.     

The Effectiveness of Business Codes: A Critical Examination of Existing Studies and the Development of an Integrated Research Model

Business codes are a widely used management instrument. Research into the effectiveness of business codes has, however, produced conflicting results. The main reasons for the divergent findings are: varying definitions of key terms; deficiencies in the empirical data and methodologies used; and a lack of theory. In this paper, we propose an integrated research model and suggest directions for future research. Muel Kaptein is Professor of Business Ethics and Integrity Management at the Department of Business-Society Management at RSM Erasmus University. His research interests include the management of ethics, the measurement of ethics and the ethics of management. He has published papers in the Journal of Business Ethics, Business & Society, Organization Studies, Academy of Management Review, Business & Society Review, Corporate Governance, Policing, Public Integrity, and European Management Journal. He is the author of the books Ethics Management (Kluwer Academic Publishers, 1998),The Balanced Company (Oxford University Press, 2002), and The Six Principles of Managing with Integrity (Spiro Press, 2005). Muel is also director at KPMG Integrity, where he assisted more than 40 companies in developing their business code. Mark S. Schwartz is Assistant Professor of Goverance, Law and Ethics at the Atkinson School of Administrative Studies at York University (Toronto). His research interests include corporate ethics programs, ethical leadership, and corporate social responsibility. He has published papers in the Journal of Business Ethics, Business & Society, Business Ethics Quarterly, Professional Ethics, and the Journal of Management History, and is a co-author of the textbook Business Ethics: Readings and Cases in Corporate Morality (McGraw Hill). He is also a Research Fellow of the Center of Business Ethics (Bentley College) and the Business Ethics Center of Jerusalem (Jerusalem College of Technology).     

Identifying the gaps in ethical perceptions between managers and salespersons: A multidimensional approach

This research examines, in a general manner, the degree and character of perceptual congruity between salespeople and managers on ethical issues. Salespeople and managers from a diversity of organizations were presented with three scenarios having varying degrees of ethical content and were asked to evaluate the action of the individual in each scenario. Findings indicate that, in every instance, the participating managers tended (1) to be more critical of the action displayed in the scenarios, (2) to view the action as violating a sense of contract or promise, and (3) to view the action as less culturally acceptable than did the salespeople.Tony L. Henthorne is Associate Professor of Marketing at the University of Southern Mississippi. Dr. Henthorne has published in such journals asPsychology and Marketing andJournal of Professional Services Marketing.Donald P. Robin is Professor of Business Ethics and Professor of Marketing at the University of Southern Mississippi. Dr. Robin is coauthor with Eric Reidenbach of two recent books on business ethics. Dr. Robin has contributed several articles on business ethics in such journals asJournal of Marketing, Journal of the Academy of Marketing Science, andJournal of Business Ethics. He is also a frequent lecturer on the topic of business ethics.R. Eric Reidenbach is the Director of the Center for Business Development and Research and Professor of Marketing at the University of Southern Mississippi. Dr. Reidenbach has written numerous articles for such journals asJournal of Business Ethics, Journal of Marketing, Journal of Macromarketing, andJournal of the Academy of Marketing Science. Dr. Reidenbach has coauthored two books on business ethics.     

Consumer ethics: An empirical investigation of factors influencing ethical judgments of the final consumer

Business and marketing ethics have come to the forefront in recent years. While consumers have been surveyed regarding their perceptions of ethical business and marketing practices, research has been minimal with regard to their ethical beliefs and ideologies. This research investigates general attitudes of consumers relative to business, government and people in general, and compares these attitudes to their beliefs concerning various questionable consumer practices. The results show that consumers' ethical beliefs are determined, in part, by who is at fault in the unethical behavior (the seller or the buyer). The results also indicate that those with a more positive attitude toward business are less likely to engage in questionable consumer practices, but one's attitudes toward salespeople, the government and people in general arenot related to the consumer's ethical beliefs.Scott J. Vitell is an Associate Professor and the Michael S. Starnes Professor of Marketing and Business Ethics at the University of Mississippi. His publications have appeared in theJournal of Macromarketing, theJournal of Business Ethics, theJournal of the Academy of Marketing Science, theJournal of Business Research, Research in Marketing and numerous other journals and proceedings.James A. Muncy is Assistant Professor of Marketing at Clemson University. His publications have appeared in theJournal of Marketing, Journal of Business Research, Journal of Current Issues and Research in Advertising, Journal of Marketing Education, andAdvances in Consumer Research. He has also published in the National Proceedings of the American Marketing Association and the American Psychological Association and has published five chapters in books. He is active in the Association for Consumer Research, acting as its Publications Director and Newsletter Coeditor.     

Can a Business and Society course affect the ethical judgment of future managers?

This paper reports the results of a four year study to measure the effect of a Business and Society course on the ethical judgment of students. The research involves a matched pre/post survey with control design, with the Business and Society course functioning as the treatment variable. The subjects were undergraduate and graduate (M.B.A.) business students (n=460). The answer to the question posed by the title of this paper is yes, in a more ethical direction.James R. Glenn, Jr. is Professor of Management in the School of Business at San Francisco State University. His research focus is on the ethical dimensions of decisions made in business, professional and medical organizations. His writing on decision making, research and teaching business ethics has appeared in several periodicals and books. He is currently revisingEthics in Decision Making (John Wiley, 1985) for a second edition.     

Can business ethics be theological? What Athens can learn from Jerusalem

The work of philosophers in business ethics has been important in providing a systematic framework to analyze moral obligations of corporations and their many stakeholders. Yet the field of ethics as defined by the philosophers of the past two centuries is too narrow to do justice to what is at stake in the business world. Ethics in the theological perspective is not primarily concerned with analyzing situations so that one can make right decisions, but rather with reflecting on what is constitutive of the good life. Theological business ethics can apply a crucial corrective to the business ethics of philosophers by broadening the endeavor to include a vision of what constitutes a good life — of the kind of persons we want to be and the kind of communities we want to form. Oliver F. Williams, C.S.C., is on the faculty of the Department of Management at the University of Notre Dame where he teaches and researches in the field of business, society and ethics. He holds a Ph.D. in theology from Vanderbilt University and has had the experience of a research year at the Graduate School of Business Administration of Stanford University. His publications include five books, the most recent of which is The Apartheid Crisis: How We Can Do Justice in a Land of Violence (Harper & Row). He has published articles on business ethics in journals including Theology Today, California Management Review, Harvard Business Review and Business Horizons.     

Ethical decision-making in business: Behavioral issues and concerns

This article examines selected behavioral aspects of ethical decision making within a business context. Three categories of antecedents to ethical decision behaviors (individual differences, interpersonal variables, and organizational variables) are examined and propositions are offered. Moral development theory and expectancy theory are then explored as possible bases for a theory of ethical decision making. Finally, means of improving ethical decision making in firms are explored.Stephen B. Knouse is Professor of management at the University of Southwestern Louisiana. His research interests are in behavioral aspects of business ethics, employment selection, and impression management in organizations. His work has appeared in a number of journals includingJournal of Business Ethics, Personnel Psychology, andPersonnel.Robert A. Giacalone is Associate Professor of Management Systems at the E. Claiborne Robins School of Business, University of Richmond. His work has appeared inHuman Relations, Business and Society Review, Journal of Business Ethics, Group and Organization Studies, Journal of Social Psychology, as well as in a variety of other journals and books.     

An Optimally Viable Version of Stakeholder Theory

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. John Kaler is a Visiting Research Fellow at the University of Plymouth Business School. He is the co-author of the books An Introduction to Business Ethics and Essentials of Business Ethics, and was co-editor for Teaching Business Ethics, a website hosted by the Institute of Business Ethics. He is an ex-member of the Executive Committee of the European Business Ethics, U.K., and has published on a wide range of business ethics topics.     

Crucial issues in successful European business

Time has come to put business ethics explicitly on the agenda of those who bear responsibility in the business world and of the scholars working in the field of business administration sciences. Reflection should bear on specific issues of concern, but also on processes of decision in business practices and on patterns of thought at work inside issues and processes. What the issues are, which processes and patterns need scrutiny, is to be decided upon in the course of the public normative debate in which ethicists, as experts of conceptual analysis and argumentation, and corporate executives as experts in decision-making each take an equal and fair share, as people who are able and willing to proffer an argued personal standpoint in an open debate.Henk J. L. van Luijk is Professor of Ethics at Nijenrode, The Netherlands School of Business, Breukelen, The Netherlands, and at the University of Groningen, The Netherlands. He is chairman of the Executive Committee of EBEN, The European Business Ethics Network. His special field is business ethics. He is the author of three books on various philosophical subjects. In his special field he published several articles, mainly in Dutch philosophical and professional journals.     

Enhancing Learning Performance Through Classroom Response Systems: The Effect of Knowledge in a Global Economic Environment

ABSTRACT

The international business education literature suggests that a global mindset can be acquired and benefit students to embrace new ideas and improve their critical thinking. Using a sample of 1,448 undergraduate students in Corporate Finance, International Finance, and Business Law subjects during 2013–2015, our results indicate that students with better academic performance in the subject Global Economic Environment achieve a better learning outcome in advanced functional business subjects. However, students with a better global mindset do not benefit as much from the Classroom Response Systems (CRSs) as the weaker students do.     

A comment on ‘A Multidimensional Scale for Measuring Business Ethics: A Purification and Refinement’

This comment is offered in response to Hansen's A Multidimensional Scale for Measuring Business Ethics: A Purification and Refinement. Five issues arising from Hansen's purification and refinement efforts are addressed. These include the issues of parsimony, predictive validity, collinearity, reliability, and what we see as a confusion between normative and positive theory.Dr. R. Eric Reidenbach is Professor of Marketing, and Director of the Center for Business Development and Research at The University of Southern Mississippi. He has written extensively on business and marketing ethics.Dr. Donald P. Robin, Professor of Business Ethics and Professor of Marketing, is coauthor with R. Eric Reidenbach of two recent books on business ethics with Prentice-Hall. He is a frequent lecturer on business ethics and is the author of several articles on the subject.     

Perceptions of business ethics: Students vs. business people

The purpose of this study was to assess the perceptions of business students and of business practitioners regarding ethics in business. A survey consisting of a series of brief ethical situations was completed by 537 senior business majors and 158 experienced business people. They responded to the situations, first, as they believed the typical business person would respond and, second, as they believed the ethical response would be.The results indicate that both students and business people perceived a significant gap between the ethical response to the given situations and the typical business person's response. Students were significantly more accepting than business people of questionable ethical responses, and they also had a more negative view of the ethics of business people than did the experienced business people.The male students were more accepting of questionable ethical responses and saw less difference between typical and ethical responses than did the female students. However, male and female business people appeared to think alike with regard to both typical and ethical responses.Some suggested implications included the idea that businesses need to increase their efforts to promote ethical conduct and to make ethics a well-known priority in all actions and policies. Barbara C. Cole teaches Business Education classes at Foothills Technical Institute in Searcy, Arkansas. Her research is in the areas of business ethics and cooperative learning. She has published in Journal of Education for Business.Dennie L. Smith is Professor of Education at the University of Memphis, formerly Memphis State University. His writing on creativity, teaching strategies, and simulation systems has appeared in numerous journals and books. He has been a consultant to businesses for over 15 years in the areas of organizational development and decision making.