Tone at the Top: An Ethics Code for Directors?

Recent corporate scandals have focused the attention of a broad set of constituencies on reforming corporate governance. Boards of directors play a leading role in corporate governance and any significant reforms must encompass their role. To date, most reform proposals have targeted the legal, rather than the ethical obligations of directors. Legal reforms without proper attention to ethical obligations will likely prove ineffectual. The ethical role of directors is critical. Directors have overall responsibility for the ethics and compliance programs of the corporation. The tone at the top that they set by example and action is central to the overall ethical environment of their firms. This role is reinforced by their legal responsibilities to provide oversight of the financial performance of the firm. Underlying this analysis is the critical assumption that ethical behavior, especially on the part of corporate leaders, leads to the best long-term interests of the corporation. We describe key components of a framework for a code of ethics for corporate boards and individual directors. The proposed code framework is based on six universal core ethical values: (1) honesty; (2) integrity; (3) loyalty; (4) responsibility; (5) fairness; and (6) citizenship. The paper concludes by suggesting critical issues that need to be dealt with in firm-based codes of ethics for directors.     

Style and Tone in Marketing Communications

This paper explores the importance and role of a well managed "style and tone" strategy for the maintenance of synergy between the product portfolio and the image of an organization. Specifically, we examine how to communicate a consistent corporate image in the context of marketing a diverse range of products and services. We propose that a well managed "style and tone" strategy is required to design and implement an effective marketing commu- nications program. First we explore "style and tone" in terms of its meaning and impact on brand positioning. Then we offer several examples of its application in relation to (1) the competitive role of the organization and (2) the organization's orientation to innovation and technology development. Finally we suggest a six-step approach to the management of an effective style and tone strategy.     

提高侧音测距系统无模糊距离的方法

侧音测距系统的最大无模糊距离受到侧音信号最低频率的限制.为此,分析了产生低频侧音的难点,以及使用低频侧音所带来的互相干扰、带宽增大、设备量增加等问题,提出了具体的解决方法,有效地提高了侧音测距系统的最大无模糊距离.     

论网络语言中谐音的运用

网络语言是网络时代出现的一种新型语篇类型。是语言的一种功能变体，其标志性语体特征是变异性和个性化。而许多网络词语和语句正是运用了谐音的手段，使网络语言呈现出其特有的魅力。最后，文章对网络语言的发展和规范化问题进行了探讨。     

Accounting Students as Surrogates for Accounting Professionals When Studying Ethical Dilemmas: A Cautionary Note

A challenge in performing empirical research isdetermining appropriate research subjects.Laboratory experiments are noted for their useof student subjects. The issue of interest inthis research is whether student subjectsrespond to a contextual ethical dilemma in thesame manner as working professionals.An experiment was conducted with 110 studentsand 169 experienced accounting practitioners,who are CPAs, utilizing six different financialreporting dilemmas. Students were assigned tothree different organizational categories interms of tone at the top – ethical, not ethicaland neutral. Experienced accountingpractitioners provided information about theperceived tone at the top in their ownorganizations using a questionnaire. The t-tests disclose significant differencesbetween CPAs and students for each of the sixdilemmas at the p < 0.001 level.     

Doing good and doing business at the bottom of the pyramid

There is an ongoing debate among scholars regarding the existence of a fortune at the bottom of the income pyramid. While some scholars argue that there is a profitable market at the pyramid base, others refute this proposition, arguing that targeting poor people as customers could lead to unethical business practices and further their exploitation. With the aid of mini cases, this article explains that there is indeed a fortune to be made at the base of the pyramid but that good fortune can be created for both corporations and poor people if the population at the bottom of the pyramid is treated as suppliers, producers, co-owners, and/or employees rather than as mere consumers. However, in terms of consumers, there is a market for firms at the base of the pyramid through which they can earn profits and simultaneously help eradicate poverty, mainly by lowering the cost structure for poor people. In other words, firms that can reduce poverty and provide cost-effective utilitarian goods and services to poor people have more to gain from such individuals than those firms that provide more luxurious goods and services or offer goods with mere aesthetic or emotional value. With the help of mini cases, this article explains four measures firms can use to create fortunes for themselves as well as for poor customers by avoiding affordability and adaptability traps.     

Ethical Responses to Public Allegations of Skin Tone Manipulation in Print Advertising: Consumer Indifference or Consumer Concern?

This study examines the effect of consumer prejudice on ethical responses to public allegations of skin tone manipulation in print advertising. A sample of 156 undergraduate business students read a fictitious news story in which an advertising watchdog group accused business executives of using digital manipulation to lighten the skin tone of a Black female model featured in a product print ad. Participants then answered questions on ethical perceptions, behavioral intentions, and prejudice toward Blacks. Results suggest that low-prejudice consumers have stronger ethical concerns toward the digital lightening of ethnic models in print ads than do high-prejudice consumers. The authors discuss the findings, limitations, and directions for future research.     

Leadership Discourse, Culture, and Corporate Ethics: CEO-speak at News Corporation

We explore the language of leadership of global media mogul Rupert Murdoch in 2010, the year before the phone-hacking scandal in the UK came to public attention. Subsequent public enquiries in the UK exposed unethical conduct by staff of News Corporation, a global corporation whose Chairman and CEO was Rupert Murdoch. We focus on the ethical climate fashioned by ‘A Letter from Rupert Murdoch’ that appeared in the opening pages of the annual report of News Corporation for the year ended 30 June 2010. Plausibly, Murdoch’s discourse in that letter helped condition the inapt, unethical conduct of News Corporation staff. We highlight the cultural and ethical signs that were embedded in Murdoch’s letter and which reflected the company’s tone at the top and ethical values. We identify signs of a perverse leadership thinking that possibly help explain the inappropriate cultural values and ethical behaviours that were revealed subsequently in evidence presented to public inquiries.     

Persistence and Change at the Top of the IT Sector

We use the DATAMATION index of the top 50 domestic IT companies (1975–1995) to track persistence and change at the top of the sector. The trends that we uncover are increasing instability, rejuvenation (declining average age of entrants coupled with increasing average age of quitters), democratization (diminishing revenue inequality at the top) and growing supply‐side intertwining of sub‐sectors and industries within IT due to diversification by long‐term survivors.     

Culture follows design: Code design as an antecedent of the ethical culture

Codes of ethics are directly aimed at behavioral control, but they also affect a company’s ethical culture, which in turn concerns compliance and ethical behavior. To positively influence a company’s ethical culture, employees must be familiar with its code of ethics, perceive that top management is committed to the code, and believe that their peers also comply with the code. The evidence on whether a code’s design affects a company’s ethical culture is limited. This study’s factorial survey experiment contributes to this gap in two ways: first, it investigates whether a code’s design affects how easily the code can be learned and, therefore, contributes to code familiarity. Second, it examines how a code can convey expectations regarding top management’s commitment and peers’ behavior, both of which are part of ethical culture. The results indicate that a positive tone increases code familiarity, and a code signed by top managers sends a strong signal of their commitment to the code. Finally, various implications of the results for research and practice are discussed.     

The Anatomy of Corporate Fraud: A Comparative Analysis of High Profile American and European Corporate Scandals

This paper presents a comparative analysis of three American (Enron, WorldCom and HealthSouth) and three European (Parmalat, Royal Ahold and Vivendi Universal) corporate failures. The first part of the analysis is based on a theoretical framework including six areas of ethical climate; tone at the top; bubble economy and market pressure; fraudulent financial reporting; accountability, control, auditing, and governance; and management compensation. The second and third parts consider the analysis of these cases from fraud perspective and in terms of firm-specific characteristics (ownership structure) and environmental context (coverage in media and academic literature, regulatory and corporate governance frameworks). The research analyses shed light on the fact that, despite major differences between Europe and U.S. in terms of political institutions, laws and regulations as well as managerial practices, there are significant similarities between six groups. The analysis also demonstrates that, the ethical dilemma has been coupled with ineffective boards, inefficient corporate governance and control mechanisms, distorted incentive schemes, accounting irregularities, failure of auditors, dominant CEOs, dysfunctional management behavior and the lack of a sound ethical tone at the top. Significant similarities were also observed in the analysis from the fraud triangle perspective. However, there are several major differences between the six corporate failure cases particularly with regard to ownership structure, coverage in media, and legal, regulatory and governance frameworks. This research study may have several academic and practical contributions, particularly because of multidisciplinary, international features, and comparative analyses used in the paper.     

Doing business in Switzerland

Situated at the crossroads of Europe, Switzerland is an ideal example of a successful multicultural and multilingual society living in a harmonized way. This article provides a comprehensive review of Switzerland's historical development, political structure, economy, investment, and foreign trade environment. It aims at being a useful source of information for foreign businessmen and investors interested in doing business in Switzerland, one of the most advantageous business locations in Europe. © 2003 Wiley Periodicals, Inc.     

Doing Business in Ukraine

Although it is the second largest country in Europe, Ukraine is still at an early stage in its transition to a market economy. Given its strong long‐term potential, it is a key country to monitor on the changing global landscape. This article provides a comprehensive review of Ukraine's historical development, political structure, economy, investment and foreign trade environment. It aims at being a useful source of information for foreign businessmen and investors interested in doing business in Ukraine. © 2000 John Wiley & Sons, Inc.     

Interorganizational Favour Exchange and the Relationship Between Doing Well and Doing Good

This article examines whether ethical business practice enhances financial performance with respect to interorganizational favour exchange. We argue that the link between the ethicality and economic utility of interorganizational favour exchange is governed by: (1) organizational–individual interest alignment/conflict and (2) the fairness or justifiability of favour exchanges from the perspective of third parties. We classify interorganizational (IO) favour exchange into four types (Business–Personal, Personal–Business, Personal–Personal and Business–Business favour exchange). Our analysis shows that the first three types of favour exchange are unethical as they involve conflicts between organizational and individual interests in one or both participating organizations that negatively affect organizational value creation. The last type of favour exchange involves organizational–individual interest alignment in both participating organizations and positively affects the capacity of those involved in the exchange to create value. Favour exchanges of this fourth variety are ethically justifiable unless they unfairly damage the legitimate interests of third parties. In the latter case, these favour exchanges create the risk of negative third party reactions, which in turn affect the sustainability of the benefits of the favour exchanges to the focal group (the dyad). Our research results advance understanding of the ethical and economic implications of IO favour exchange, counter the prejudice against this behaviour in organizations, provide ethical guidance for management and business practice, and have implications for the relationship between doing well and doing good.     

青云创投:利成于益

"Doing Well By Doing Good"——做好事才能做好生意,越来越多的企业开始引用和信奉这句话。我们在此次的企业公民案例中报道的社会责任投资公司——青云创投按照中国人的语言习惯,将其翻译为"利成于益",并作为自己的企业理念。跟一般的慈善行为不同,企业公民行为追求社会利益与企业自身利益的和谐,社会、环境和企业的三重盈余。而越来越多的企业也开始运用自己做好生意的能力来做好事,比如在此次我们报道的其他企业公民案例中,合众人寿利用自己庞大的业务员队伍来实现对真正需要财务资助学生的"人肉搜索",惠氏利用专业组织来提升公益活动的效率和独立性,百事公司利用自己擅长的水处理能力帮助水资源匮乏的西北地区,这些企业在为社会、为环境创造价值的同时,自身也在实践着一种超越支票本式慈善的履责主义。     

A few good women at the top: The China case

In the face of global economic downturns, an increasing number of women are rising to top management positions. What happened in China seems to resonate with the trend in the West. In China, only one in four have made it to the top management level, with a majority taking the position of chief operating officer, chief financial officer, and human resources director. In China, 53% of women are caught in sticky-floor situations and never advance beyond lower-level positions in the workplace. What holds women back from climbing up the corporate ladder? This research explores the stories of women executives in China's corporate world based on an exploratory study. We investigated the following questions: What are these women's beliefs about and responses to the glass ceiling? What personal, social, and organizational constraints undermine their capacity to play a part in a traditionally male-dominant world? How did these women make their way to the top? And, what factors are unique to Chinese women managers’ career advancement?     

Putting human resource management at the line manager level

Line managers are in an excellent position to benefit the company by the practice of good human resource management techniques, as long as they have the support and guidance of top management.