A comparison of five business philosophies

While the media and public opinion polls suggest that the state of business ethics is declining, surveys of corporate managers on the subject are less than conclusive. This study presents results of a survey of 487 adult, MBA, and undergraduate business students on the business philosophies of Machiavellianism, Darwinism, Objectivism, Relativism, and Universalism. The findings were consistent with earlier research which showed prospective managers to be less ethical than practicing ones and that women and those reporting a strong religious conviction tend to be more ethical. Explanations and several recommendations for improving the situation are offered. ‘If you saw Atlas... trying to hold the world aloft with the last of his strength, and the greater his effort the heavier the world bore down upon his shoulders — what would you tell him to do?’ ‘To shrug.’ —Ayn Rand, Atlas Shrugged     

Normative contexts and moral decision

This paper attempts to explain the significance of the ‘ideologies’ — or ‘middle-level’ normative discourse — described by Kenneth Goodpaster in his paper ‘Business Ethics, Ideology, and the Naturalistic Fallacy’. It is argued that the propositions constitutive of this discourse are not invokable moral principles (i.e. principles which generate solutions to actual moral problems). Rather, they are characterizations of the normative contexts in which moral decisions are made. As such, they place limits on the ways in which the abstract moral principles of traditional moral theory may be applied or interpreted in making real-life moral decisions.     

The leverage of foreigners: Multinationals in South Africa

This article argues that foreign multinational corporations (MNCs) in South Africa cannot evade an ethical choice, how best to exercise their leverage against apartheid? Disinvestment is only one, ambiguous option. MNCs need clear ethical goals and an effective strategy. Both arise from the political economy of the MNC (1). It involves 3 relationships, between the MNC parent and its subsidiary; the MNC home society and host society; and the MNC home state and host state. That political economy explains the MNC's dependency (1a) and modernization effects (1b). Those effects give foreigners some leverage against apartheid; but an effective and ethical MNC strategy is needed (2). It involves four goals: dismantling apartheid, a mixed economy, full democracy, and a negotiated peace (2a). It suggests a sequence of MNC/home state options from Do Nothing or Divest to More Corporate Activism, Home State Support, and International Sanctions (2b). But victory is not around the corner; rather, we are all condemned to freedom.     

The corporation and its employees: A case story

One of the main objectives in the information society is to improve the quality of life. — Paying attention to the needs of people seems to be a key element in good ethical behaviour, says Tor Dahl, Managing Director of Manpower Scandinavia. In defining these needs, Manpower used Abraham Maslow's famous pyramid, his hierarchy of needs, as a model for trying to satisfy in practise the needs on each level. However, they went a step further, asking; what comes after Maslow? To mean something for others; togetherness and that people can be trusted and that they seek a purpose with their work, came out as answers. In his paper Mr. Dahl tells us how Manpower Scandinavia has developed a written set of values, which function as a basis for action and guidelines for behaviour, and where the key idea behind it all is to let people be self-managed. Furthermore, he shows us how Manpower has organised the company according to this conviction. — If your really have faith in people and show them trust, they will show you trust in return. Then you have a good basis for ethical behaviour, Tor Dahl concludes his paper.     

Alliances Between Corporate and Fair Trade Brands: Examining the Antecedents of Overall Evaluation of the Co-branded Product

This research investigates the potential for a “fair” co-branding operation. A major corporate brand is fictitiously allied with a Fair Trade labelling organization brand. The sample for the study is composed of 540 respondents, representative of the French population. By considering commercial brands and Fair Trade labels as dissimilar in terms of customers’ perceived Fair Trade orientations, this article studies (1) how this lack of similarity impacts perceived congruence between both entities (i.e. perceived relevancy and expectancy of the alliance) and (2) how prior brand attitudes and congruence influence customers’ evaluation of the co-branded product. The results of this research demonstrate that: (1) Consumer prior brand attitudes toward the partner brands influence very little customers’ evaluation. (2) Perceived similarity of the partner brands has a strong influence toward congruence of the co-branding operation. Results also indicate that congruence (measured as relevancy and expectancy) has a strong influence upon customers’ evaluation. (3) An inverted U-shaped relationship exists between perceived similarity and relevancy of the alliance, and between expectancy and customers’ evaluation. The results obtained through the test of a partial least square model, and inverted U-shaped hypothesis, represent a new insight into co-branding theory. The high discursive power of fair co-branding is a key issue: the corporate brand provides the alliance with its leading position, while the Fair Trade brand provides the ethical attribute.     

The role of multinationals in the NIEO

In the context of the New International Economic Order (NIEO) the developing countries are expressing more and more frequently a wish for stricter control over the multinational enterprises. What should be the features of a Code of Conduct for Multinationals?     

Collective Self-Reliance: Concept and reality

The concept of Collective Self-Reliance (CSR) has been of increasing political importance since the early seventies in the North-South negotiations and also at the South-South conferences (of non-aligned and Group of 77 countries), especially in connection with the discussions on a New International Economic Order (NIEO). Development researchers in poor and rich countries have at the same time begun to pay more attention to the concept of Self-Reliance (SR) in both its individual and its collective dimension. The concept of Collective Self-Reliance is examined in the following article as are its chances of realization.     

Ethics in bioengineering

Bioengineering, as the decisive extension of engineering action to human life itself, constitutes a fundamental enlargement of the technical realm, and calls for a commensurate expansion of ethical reflection. In fact, the engineering profession has been actively pursuing the development of new ethical codes, and the promotion of ethics by bioengineers both in the United States and on the international level deserves philosophical recognition and support.     

Karma-Yoga: The Indian Model of Moral Development

A comprehensive model of moral development must encompass moral sensitivity, moral reasoning, moral motivation, and moral character. Western models of moral development have often failed to show validity outside the culture of their origin. We propose Karma-Yoga, the technique of intelligent action discussed in the Bhagawad Gita as an Indian model for moral development. Karma-Yoga is conceptualized as made up of three dimensions viz. duty-orientation, indifference to rewards, and equanimity. Based on survey results from 459 respondents from two large Indian organizations, we show that the dimensions of Karma-Yoga are related to moral sensitivity, moral motivation, and moral character.     

EC reform inch by inch

After ratification by member countries, the “Luxembourg reform package” worked out by the European Council at the end of 1985 is to provide the basis for the development of the European Community into the nineties. What are the challenges facing the EC? What opportunities do the Luxembourg reforms open up?     

A concept for an Open World Economy

One of the many new publications dealing with the reform of the International trade system is the report of the Trade Policy Research Centre “Towards an Open World Economy”. The following article analyses and criticlses the main proposals of the report.     

Aid and donor countries’ GNP

The authors try to test statistically whether the flow of resources between poor and rich countries has in fact conformed to the “1 per cent” target defined by the United Nations. Basis for testing several hypotheses are data published by the Development Assistance Committee (DAC) of the OECD.     

Tunisia’s development perspectives

Tunisia is at the beginning of the second decade of its development planning. The first decade (1961–1972) was put under the heading of Socialism. The influence of the socialist conception on development planning was reflected by a high share of public investments in total investments as well as intensified furthering of agricultural cooperatives.     

International raw material policy in the agricultural and industrial sphere

The demands in the sphere of raw material policy are a cardinal element of the “New International Economic Order” on which the developing countries are insisting. Dr Hermes, Secretary of State in the Foreign Office of the Federal Republic of Germany, discusses the Common Fund and other issues concerning raw material policy from the German point of view.     

The “pipeline” problem in bilateral financial cooperation

It has been observed since about 1976 that financial commitments to developing countries have been disbursed more slowly than in the past. At the same time there have been increasing complaints from recipients that the commitment, appraisal and disbursement procedures of the donor countries were excessively complicated, resulting in a delay of disbursements. The Western industrialized countries, both individually and jointly in the Development Assistance Committee of the OECD, therefore initiated investigations into the importance to be assigned to this phenomenon as well as into the question of whether there are any possible ways of simplifying the administrative procedures. The following article sums up the results of such a study by the German Institute for Development Policy in respect of the Federal Republic of Germany.     

Modeling Support for Role-Based Delegation in Process-Aware Information Systems

In the paper, an integrated approach for the modeling and enforcement of delegation policies in process-aware information systems is presented. In particular, a delegation extension for process-related role-based access control (RBAC) models is specified. The extension is generic in the sense that it can be used to extend process-aware information systems or process modeling languages with support for process-related RBAC delegation models. Moreover, the detection of delegation-related conflicts is discussed and a set of pre-defined resolution strategies for each potential conflict is provided. Thereby, the design-time and runtime consistency of corresponding RBAC delegation models can be ensured. Based on a formal metamodel, UML2 modeling support for the delegation of roles, tasks, and duties is provided. A corresponding case study evaluates the practical applicability of the approach with real-world business processes. Moreover, the approach is implemented as an extension to the BusinessActivity library and runtime engine.     

Islamic Corporate Governance: Risk-Sharing and Islamic Preferred Shares

The recent financial crises (including the Asian and subprime crises) indicated the need to reinforce corporate governance mechanisms in emerging and developing market economies. Corporate governance refers to all the factors that affect firm processes (including, among others, financing strategies). Firms must avoid debt financing instruments and adopt financing instruments that allow for “risk-sharing” rather than “risk-shifting” because all recent financial crises were, in essence, debt crises. The primary objective of this paper is to examine the principles of risk-sharing promoted by Islamic finance and study their implications for corporate governance. The secondary objective of this paper is to propose a pricing model for a new risk-sharing financial instrument (Islamic preferred shares, IPS) that was recently discussed by Zarka and Al-Suhaibani (Shariah-compatible preference shares: The Sharia Basis and Economic Rationale. Working paper, SABIC Chair for Islamic Financial Market Studies, 2012). We study the implications of this new instrument as a powerful tool for corporate governance in the case of Islamic markets. We explain the possible contribution of IPS to agency cost reduction, Sharia screening costs and ethical corporate governance.     

GATT’s role in East-West trade

After a phase of stagnation in East-West trade lasting several years, both sides have more recently been at pains to intensify economic relations between East and West, the reasons being both economic and political. What part can the General Agreement on Tariffs and Trade (GATT) play in this regard?