Justice: The root of american business ideology and ethics

Although there are many conceptions of Justice, these different perceptions can provide many interesting insights into a business person's ethical standards as well as that person's decision-making processes. Using the Bishops' Pastoral Letter on the U.S. Economy as the basis for asking questions about justice, twenty-four business executives were interviewed about their conception of justice. An analysis of these interviews reveals that this group of businesspeople operated under very different conceptions of Justice at the Macroenvironmental and Microenvironmental levels. This result has some interesting implications not only for those scholars concerned with business ethics but for everyone who has a stake in business education.Men are called good, chiefly on account of their Justice. Cicero, 56 B.C. Ideology is applied philosophy. Lodge, 1986 Richard McGowan, S. J. is an Assistant Professor of Operations and Strategic Management at Boston College. His research focus involves examining both the rationale behind business and public policy decisions as well as determining the effectiveness of these policy measures. Some of his recent publications include Deciphering the Japanese Import Quota, Policy Studies Journal (1988) and Public Policy Measures and Cigarette Sales: An ARIMA Intervention Analysis Study JAI Social Issues Management Volume (1989).     

Beyond bean counting: Establishing high ethical standards in the public accounting profession

Business professions are increasingly faced with the question of how to best monitor the ethical behavior of their members. Conflicts could exist between a profession's desire to self-regulate and its accountability to the public at large. This study examines how members of one profession, public accounting, evaluate the relative effectiveness of various self-regulatory and externally imposed mechanisms for promoting a climate of high ethical behavior. Specifically, the roles of independent public accountants, regulatory and rule setting agencies, and undergraduate accounting education are investigated. Of 461 possible respondents, 230 questionnaires (a 49.6% response rate) indicated that the profession's own rule setting body (The American Institute of Certified Public Accountants) and the use of peer review were perceived as the most effective mechanisms, while government regulation was ranked least. Respondents also evaluated the extent to which ethics should be covered in the accounting curriculum. For every course, the CPAs believed a greater emphasis on ethics is appropriate than presently exists. Suggestions for more effectively integrating ethics into accounting courses are made. Finally, respondents were also asked whether in answering the questionnaire they used a definition of ethics as either the Professional Code of Conduct or a moral and philosphical framework for guiding beliefs. Those who viewed ethics as abiding by a professional code had more confidence in the mechanisms addressed in this study to aid the public accounting profession's ability to ensure high ethical standards of conduct. Methodological implications of this distinction for future studies in business ethics are discussed. Jeffrey R. Cohen is Assistant Professor of Accounting at Boston College. He received his Ph.D. from The University of Massachusetts at Amherst. He is a C.M.A. and a Peat Marwick Research Fellow. His articles have appeared in the Journal of Accounting Research, Decision Sciences and The Organizational Behavior Teaching Review. His work on Ethics has appeared in Issues in Accounting Education, Management Accounting, and The CPA Journal. Laurie W. Pant is Assistant Professor of Accounting at Boston College. She holds an M.B.A. and a D.B.A. from Boston University and an M.Ed. from Emory University. She serves on the editorial board of Issues in Accounting Education. Her articles on Ethics have appeared in Issues in Accounting Education, Management Accounting and The Organizational Behavior Teaching Review.An earlier version of this paper was presented at the 1989 American Accounting Association National Meeting.     

Consumers and the internal market for services: Shortcomings of the “new approach” of the Community

The paper discusses the new approach of the Community in the area of services, namely the principle that every service — like every good — should be allowed to circulate freely in the entire Internal Market provided it meets the standards of EEC law and of the country of origin. There are some exceptions to this principle, especially in the insurance area (market segregation in the industry's interest). The paper points out that the new approach might endanger consumer protection of Member States unless adequate standards of the receiving country exist. ECLG makes a number of suggestions to overcome the lacunae left by the new approach, especially by opting for minimal harmonisation, by applying rules of private internal law under the Rome Convention, and by providing for safeguard clauses.

---

Verbraucher und Binnenmarkt für Dienstleistungen: Mängel der sog. neuen Konzeption der Gemeinschaft

Zusammenfassung Die Gemeinschaft versucht in Vewirklichung der Grundfreiheiten des durch die Einheitliche Akte geänderten EWG-Vertrages die Vollendung des Binnenmarktes auch im Dienstleistungsbereich. Dabei sind unterschiedliche Herangehensweisen denkbar, nämlich das Prinzip der Minimalharmonisierung, die Marktsegmentierung oder die sog. neue Konzeption. Letztere findet sich vor allem im Banken- und Rundfunkbereich; dancah soll es für den Marktzutritt im gesamten Binnenmarkt ausreichen, daß die (angeglichenen) Standards des Ursprungslandes eingehalten werden. Die ECLG befürchtet einen Abbau des Verbraucherschutzes bei einer konsequenten Durchführung dieses Prinzips und macht Gegenvorschläge. Diese beziehen sich auf eine verstärkte Durchsetzung des Prinzips der Minimalharmonisierung, auf die Notwendigkeit der Anwendung der Regeln des Internationalen Privatrechts nach dem Römischen Schuldrechtsübereinkommen von 1980, und durch Verankerung von Schutzklauseln.

---

---

The European Consumer Law Group (ECLG) is a group of lawyers and law scholars in the EEC and EFTA countries, concerned with legal aspects of consumer protection. Correspondence regarding the paper should be directed to: Professor Norbert Reich, Centre for European Legal Policy, Universitätsallee GW 1, D-2800 Bremen 33, Federal Republic of Germany.     

Risk Management for E-Cash Systems with Partial Real-Time Audit

We analyze coin-wallet and balance-wallet under partial real-time audit, and compute upper bounds on theft due to the fact that not all the transactions are audited in real time, assuming that everything else is perfect. In particular, we assume that the audit regime holds for innocent payees. Let v be the maximum allowed balance in a wallet, and 01 be the fraction of transactions that are audited in real time in an audit round. Assume one unit transactions. We show that the upper bound on expected theft for coin-wallet is lim₀^–2, while for plausible (similar) parameter choice the bound for a balance-wallet is O(exp(mv)), where 1<m. The former is nicely bounded for small transactions, however, the bound for balance-wallet can become huge in those cases where we require very small false alarm probability. We conclude that partial audit, may be suitable for coin-wallets with low denomination coins, and possibly for balance-wallet, when we may tolerate a relatively high false alarm rate, but it may be too risky for balance-wallet, where very low false alarm rate is required.     

A study of Hong Kong Businessmen's perceptions of the role “Guanxi” in the People's Republic of China

Guanxi is perceived as a major determinant for successful business in China. This research paper investigates the importance of Guanxi from the Hong Kong Businessmen's viewpoint. It confirms previous findings in this area and adds on new dimensions. Therefore, practitioners and academics may further refine their knowledge in this subject.Leung, T. K. P. is an Assistant Professor of Hong Kong Polytechnic University. He specializes in industrial marketing and marketing in China. His current research interests include issues in Guanxi, networking in China, and Chinese negotiation. He has published in referred journals related to the PRC market.Wong, Y. H. is an Assistant Professor at Hong Kong Polytechnic University. He teaches courses in sales management and international marketing. His current research focuses on issues of relationship marketing and Guanxi model. His recent publications include articles in preferred journal and books.Wong, Syson was a lecturer of Hong Kong Polytechnic University and is now a business consultant. She specializes in quantitative methods and China business. Her current consultancy works include a big project in China.     

Integrating the Dirichlet-multinomial and multinomial logit models of brand choice

This paper discusses the interpretative benefits that arise from merging the Dirichlet-multinomial (DM) model as a loyalty variable in the multinomial logit (MNL) model of brand choice. The estimated parameters of this hybrid model compare favorably to those of a pure DM model (with no marketing mix variables) as well as those of a standard MNL model with an exponentially smoothed loyalty measure. The hybrid model offers an index of consumer heterogeneity and estimates of each brand's preference share, adjusted for the effects of price and promotional activities. We illustrate the unique interpretations offered by these parameters across four different product categories, showing how changes in heterogeneity (across categories or model specifications) are closely related to changes in the overall impact of marketing mix variables.The author is grateful to Bruce Hardie, Barbara Kahn, Jim Lattin, Len Lodish, Bob Meyer, and Don Morrison for their comments and suggestions. He appreciates the support of Doug Honnold and Information Resources, Inc., for providing the data and computational facilities used in this paper.     

The economics of open source software for a competitive firm

Large quantities of software, ranging from operating systems to web servers to games, are now available as open source software or free software. In many cases, this software is backed by large profit seeking corporations such as IBM. Traditional economic analysis is used to identify the costs and benefits to firms of using open source rather than proprietary solutions, particularly in the case of the firm releasing code to the world when not obliged to do so. Examples of large companies backing open source are examined in light of the profit motive. Additionally, open source is also analyzed as a quasi-public good.     

The Effects of Monetary Magnitude and Level of Aggregation on the Temporal Framing of Price

Existing research has shown that the pennies-a-day strategy of reframing a large aggregate expense as a small daily expense helps to reduce the perceived cost of a transaction (Nagle and Holden, 1995; Price, 1995; Gourville, 1998, 1999). This paper builds on this research and explores the robustness of the phenomenon across two dimensions – (1) the level of temporal aggregation and (2) the dollar magnitude of the transaction. First, we show that the effectiveness of a pennies-a-day strategy is not limited to per-day framing. Rather, we find a more general phenomenon in which a less aggregate expense is preferred to a more aggregate expense, such that if a per-day framing is preferred to a per-year framing, than a per-month framing also will be preferred to a per-year framing. Second, we show that this effectiveness reverses with the magnitude of the underlying expense, such that while a framing of $1 per day is preferred to one of $365 per year, a framing of $4200 per year is preferred to one of $11.50 per day.     

An Exercise in Moral Philosophy: Seeking to Understand “nobody”

The late Hannah Arendt proposed that many, perhaps most monstrous deeds are not committed by moral monsters but by individuals who do not think. However, understanding the significance of activity of thinking as such requires a moral philosophy that transcends rational actor assumptions and instrumental reason centering, instead, on the conditions of self-knowledge. The ubiquitous and often lethal phenomenon of information distortions provides a vehicle for expanding our understandings of individual moral response-abilities in our modern times.     

Does Greater Amount of Information Always Bolster Attitudinal Resistance?

Previous research suggests that attitudinal resistance to information that challenges a prior evaluation increases with the amount of information underlying the prior evaluation. We revisit this proposition in a context in which a set of important claims about a target brand are presented either alone—a lower amount of isolated information—or along with other favorable, but less important claims—a higher amount of embedded information. Results from two experiments show that when the challenge occurs immediately after the initial evaluation, a greater amount of embedded initial information does produce greater attitudinal resistance. However, when the challenge occurs after a delay, a lesser amount of isolated information produces greater attitudinal resistance. The findings qualify previous assumptions about the role of prior information in attitudinal resistance, and support a constructive view of judgment revision and attitudinal resistance.     

Business ethics and commercial morality: Report of the Royal Commission into Commercial Activities

This section is focused on some areas of concern which were identified in The Report of the Royal Commission into Commercial Activities of Government and Other Matters (1990–1992). In the Report a number of situations were examined in which some individuals acted without recourse to any ethical guidelines. Most of the people mentioned in the Report held responsible positions in either Government or the private sector, and all were very well known in the community. The Report of the Royal Commission made a number of findings of serious impropriety on the part of several individuals, although there was comparatively little evidence of illegal or corrupt conduct. This section shows what happened to a governmental system in an Australian state when a number of Ministers and their advisors placed their personal or party advantage over their constitutional obligation to act in the community's interests.Those who cannot remember the past are condemned to repeat it.George Santayana (1863–1952)Michael Small is a Senior L1ecturer in the Curtin Business School, Western Australia. Earlier positions have included appointments with the Commonwealth Attorney-General's Department and more recently as Senior Lecturer in the Australian Police Staff College.     

Ethics in organizations: A framework for theory and research

In a climate of increasing interest and activity within the field of business ethics, as yet there exists no coherent conceptual framework for organizational theory and research. From a review of current thinking and previous writings a framework of concepts is suggested to help set an agenda for empirical research. The elements of this are, first, a taxonomy of ethical domains: the foci of organizations' and their agents' ethical concerns and conduct. Second, it is considered how ethical functioning might be analysed in terms of causal relationships between expressive forms, voluntary action and instituted forms. Third is discussed ethical process, the means by which ethical awareness is aroused. Fourth and last, the paper examines how normative evaluations might apply to the ethical condition of organizations and their agents, meaning change or stability in reputation and integrity. At each stage of the argument possible objectives for research are developed.Professor Nigel Nicholson is Chairman of the Organisational Behaviour Group and Director of the Centre for Organisational Research at London Business School. Previously, he led investigations into Individual and Organisational Change at Sheffield University's Social & Applied Psychology Unit, and has also held visiting appointments at American, Canadian and German universities. He has published 8 books and over 65 articles on a wide range of topics, and been honoured with an award from the Academy of Management for his contribution to theory.     

Friedman fallacies

Milton Friedman's article, The Social Responsibility of Business Is To Increase Its Profits, owes its appeal to the rhetorical devices of simplicity, authority, and finality. More careful consideration reveals oversimplification and ambiguity that conceals empirical errors and logical fallacies. It is false that business does, or would, operate exclusively in economic terms, that managers concentrate obsessively on profitability, and that ethics can be marginalized. These errors reflect basic contradictions: an apolitical political base, altruistic agents of selfishness, and good deriving from greed. Colin Grant is a Professor in the Department of Religious Studies at Mount Allison University. He teaches an undergraduate course on The Ethics and Ethos of Business. His article Giving Ethics the Business appeared in JBE 7 (1988), pp. 489–495. Some of the journals in which he has published are: The Christian Century, The Dalhousie Review, Journal of the American Academy of Religion, Modern Theology, Religious Studies, Studies in Religion/Sciences Religieuses, The Toronto Journal of Theology.     

Dissecting the Random Component of Utility

We illustrate and discuss several general issues associated with the random component of utility, or more generally unobserved variability. We posit a general conceptual framework that suggests a variance components view as an appropriate structure for unobserved variability. This framework suggests that unobserved heterogeneity is only one component of unobserved variability; hence, a more general view is required. We review a considerable amount of empirical research that suggests that random components are unlikely to be independent of systematic components, and random component variances are unlikely to be constant between or within individuals, time periods, locations, etc. We also review evidence that random components are functions of (elements of) systematic components. The latter suggests considerable caution in the use and interpretation of complex choice model specifications, in particular recently introduced forms of random parameter models that purport to estimate distributions of preference parameters. Several areas for future research are identified and discussed.     

Board-management relations in small firms: The paradox of simultaneous independence and interdependence

The author introduces constructs based on neo-classical and socio-economic assumptions, and argues that board-management relations should be characterized by both independence and interdependence. Interdependence is especially important in small firms. The article presents a model of directorates from research about directorates based on agency theory assumptions. This model is supplemented with constructs from the theory of contractual relations. Whilst traditional literature tends to focus upon independence from an agency theory perspective, this article argues that it is necessary to use more than one dimension of attributes regarding the board-management relations in order to understand the board's contribution to company performance, and that trust and solidarity is especially important in small firms. Board-management relations described by simultaneous independence and interdependence are proposed to give the highest contribution to company performance. The theoretical propositions are exemplified and supported by results of a field survey of directorates in small firms.     

The Methods Used to Implement an Ethical Code of Conduct and Employee Attitudes

In the process of implementing an ethical code of conduct, a business organization uses formal methods. Of these, training, courses and means of enforcement are common and are also suitable for self-regulation. The USA is encouraging business corporations to self regulate with the Federal Sentencing Guidelines (FSG). The Guidelines prescribe similar formal methods and specify that, unless such methods are used, the process of implementation will be considered ineffective, and the business will therefore not be considered to have complied with the guidelines. Business organizations invest enormous funds on formal methods. However, recent events indicate that these are not, by themselves, yielding the desired results. Our study, based on a sample of 812 employees and conducted in an Israeli subsidiary of a leading multinational High-Tech corporation headquartered in the US, indicates that, of the methods used in the process of implementation, one of the informal methods (namely, the social norms of the organization) is perceived by employees to have the most influence on their conduct. This result, when examined against employee tenure, remains relatively stable over the years, and stands in contradistinction to the formalistic approach embedded in the FSG. We indirectly measure the effectiveness of the percieved most influential implementation process methods by analyzing their impact on employee attitudes (namely, personal ethical commitment and employees' commitment to organizational values). Our results indicate that the informal methods (manager sets an example or social norms of the organization) are likely to yield greater commitment with respect to both employee attitudes than the formal method (training and courses on the subject of ethics). The personal control method (my own personal values) differs significantly from all the other methods in that it yields the highest degree of personal ethical commitment and the lowest degree of employees' commitment to organizational values.     

A framework for thinking about Group Decision Support Systems (GDSS)

Strategic problem solving in organizations is a social process that disturbs established social relationships. Maintaining a negotiated social order is crucial to political feasibility and to emotional commitment from the participants in relation to a solution package. However, Group Decision Support Systems that attend overly to managing social order risk group think through bounded vision. This may be avoided if emotional commitment is also encouraged through participants experiencing the problem situation from multiple perspectives and in relation to alternative solution strategies. Commitment depends upon both means/ends rationality and procedural rationality. This acknowledges the balance in providing support to a group with respect to the negotiation of social order, with the more traditional group decision support for socially negotiating order out of the problem situation. This article argues that effective Group Decision Support Systems must attend to both aspects of creating order. OR modelling methods and the support that can be provided by modern micro-computers offer a new way forward—models can be toys that a group can play with together, enabling them to create knowledge as well as use it.     

Trust in Scientific Publishing

Trust is an important phenomenon to reduce organisational complexity and uncertainty. In the literature many types of trust are distinguished. An important framework to understand the variety and development of trust in organisations is provided by Zucker. She distinguishes three types of trust: process-based trust institutional-based trust characteristic-based trustIn this article we will add a fourth type: values-based trust.Similarly, it is customary in scientific communication to distinguish four main communication functions: registration archiving certification awareness.These types of trust and the communication functions offer somewhat similar classification schemes. In this paper we will elaborate on these classification schemes with the aim to analyse possible similarities or even mapping. Such similarities will allow drawing conclusions on the development of trust in a (virtual) organisation in general and the process of scientific communication as a special kind of a (virtual) organisation in particular.     

Values in Decision-Making Processes: Systematic Structures of J. Habermas and N. Luhmann for the Appreciation of Responsibility in Leadership

"Ethical Leadership" in modern multicultural corporations is first the consideration of different personal and cultural value systems in decision-making processes. Second, it is the assignment of responsibility either to individual or organisational causalities. The task of this study is to set the stage for a distinction between rational entities and the arbitrary preferences of individuals in economic decision making processes.Defining rational aspects of behaviour in economics will lead to the formal structures of organisational systems, which are independent of concrete but varying values. Luhmann's Theory of systems of communication describes the internal dynamic forces of economic communication processes in terms of formal structures. On the other hand Habermas' Theory of discourse integrates the previous relationship between individual subjectivity and rational behaviour. Habermas gives an indication of how to separate subjective values and meaning from rational arguments in rational communication processes. The translation of these theoretical structures into practical applications for decision making processes and decision taking acts links the ethical, or value-oriented, context precisely to both individual and organisational areas of responsibility.     

Comment on The Microsoft Antitrust Policy Case

This paper both responds to Economides analysis and attempts to address the Microsoft case from a broader than U.S. perspective. The importance of the roles played by disloyalty payments, compatibility requirements, information asymmetry and the rather static nature of market definition, particularly in the context of allegations of tying, in the Microsoft case are highlighted. In contrast to the position in the U.S., the European Commission acts for all EU member states and has its disposal the possibility of imposing large fines. However, structural remedies are not available to the European Commission. Comity procedures, by allowing for the inclusion of foreign surplus in domestic welfare functions, offer a model for international co-operation in the future application of competition laws.