Engaging values in international business practice

Managerial decisions and behaviors in the international business arena have ethical implications across cultures and countries. The need for ethics and core values in business practice has been heightened by continued business scandals and ethical managerial lapses that have violated public trust. Global businesses can offer practical guidance and set ethical examples for others to follow by establishing corporate values beyond written business codes. Four key work values (Honesty, Fairness, Concern of Others, and Achievement) known to be present in businesses across cultures, are put forth as a baseline start for multinational corporation leaders. Offered is a process for making the core values unique to an organization, and for adopting and training managers in the use of core values. Presented is evidence of managerial implementation of the core work values, and managers’ alignment of work values with organizational strategies. By addressing the values and principles of their workplaces, international businesses can achieve cross-cultural ethical practices, managerial alignment, and global social responsibility.     

Is FDI doing good? A golden rule for FDI ethics

Ethical and economic perspectives on foreign direct investment (FDI) often appear in opposing frameworks. To combat this antagonism, this research proposes a consolidation between foreign private wealth and general welfare in host countries. The first contribution of this study is to provide a comprehensive conceptual approach to the study of FDI ethics. The second key contribution is to present empirical analysis of the differential influence of the level of democratic rights on foreign employment, new projects, and FDI capital flows. Results suggest that FDI incentivizes general welfare in least developed countries with high degrees of volatility. Additionally, policymakers face a dilemma in which democracy and legal rights seem to be mutually incompatible with fostering foreign employment. Practitioners find a way to evaluate the ethical implications of international business activities. The study analyzes FDI data from 161 countries between 2003 and 2010 by means of the FDI gravity equation.     

The Effect of National Corporate Responsibility Environment on Japanese Foreign Direct Investment

We examine the relationship between Japanese foreign direct investment (FDI) and the national corporate responsibility (NCR) environment in host countries using corporate social responsibility and international business theories. Based on data from the Japanese Government’s Ministry of Finance AccountAbility, and other sources, we find that the level of NCR has a positive relationship with FDI inflow for developing countries. The relationship for developed countries is negative but not statistically significant. The underlying host country development stage moderates the relationship. The results can help deepen understanding of FDI behaviors and have practical implications for host countries in terms of attracting FDI.     

Professional Ethical Standards,Corporate Social Responsibility,and the Perceived Role of Ethics and Social Responsibility

This study explored several proposed relationships among professional ethical standards, corporate social responsibility, and the perceived role of ethics and social responsibility. Data were collected from 313 business managers registered with a large professional research association with a mailed self-report questionnaire. Mediated regression analysis indicated that perceptions of corporate social responsibility partially mediated the positive relationship between perceived professional ethical standards and the believed importance of ethics and social responsibility. Perceptions of corporate social responsibility also fully mediated the negative relationship between perceived professional ethical standards and the subordination of ethics and social responsibility. The results suggested that professions should develop ethical standards to encourage social responsibility, since these actions are associated with enhanced employee ethical attitudes. Sean Valentine (D.B.A., Louisiana Tech University) is an Associate Professor of Management in the College of Business at the University of Wyoming. His research interests include ethical decision making, organizational culture, and job attitudes. His research has appeared in journals such as Human Relations, Behavioral Research in Accounting, Journal of Personal Selling & Sales Management, and Journal of Business Research. Gary Fleischman (Ph.D., Texas Tech University) is an Associate Professor of Accounting and the McGee Hearne and Paiz Faculty Scholar in Accounting at the University of Wyoming. His teaching expertise is in accounting and entrepreneurship, and his research interests are in business ethics and behavioral business research. He has published in journals such as Behavioral Research in Accounting, The International Journal of Accounting, and Journal of Business Ethics.     

Evaluating International Ethical Climates: A Goal Programming Model

A critical concern for firms pursuing international expansion strategies involves identifying countries that offer a good fit with the firm's overall ethical orientation. Unfortunately, little has been written to aid firms in identifying countries that offer this type of fit. This paper presents a model that combines the concepts of strategic management, cross-cultural management, business ethics, and the management science technique of goal programming. The purpose of the model is to aid managers in identifying countries for international expansion that offer the best fit with the firm's ethical orientation. The paper also extends the existing literature on cross-cultural management and business ethics by applying a computer optimization model to evaluate potential countries for international expansion in a way that has not been done before.     

Strategic and Moral Dilemmas of Corporate Philanthropy in Developing Countries: Heineken in Sub-Saharan Africa

This case study illustrates the dilemmas facing multinational companies in meeting social challenges in Sub-Saharan Africa (especially health-related ones). It also discusses the purpose, responsibilities and limitations of business involvement in social development. From a business standpoint, social challenges in developing countries differ greatly from those in nations where governments or markets effectively provide for the population’s health needs. The case illustrates what led a multinational to set up a corporate foundation and focuses on three strategic and operational dilemmas it ran up against. The case discussion shows that the ethical issues intertwined with these dilemmas are best understood using a variety of ethical approaches. We also show that Ethics of Care are just as relevant to analysing corporate social responsibility and corporate philanthropy as the Deontological and Utilitarianism theories commonly used in business ethics.     

Organisational Virtue,Moral Attentiveness,and the Perceived Role of Ethics and Social Responsibility in Business: The Case of UK HR Practitioners

Examination of the application of virtue ethics to business has only recently started to grapple with the measurement of virtue frameworks in a practical context. This paper furthers this agenda by measuring the impact of virtue at the level of the organisation and examining the extent to which organisational virtue (OV) impacts on moral attentiveness (MA) and the perceived role of ethics and social responsibility in creating organisational effectiveness (PRESOR). It is argued that people who operate in more virtuous organisational contexts will be expected to be more attentive to ethical issues and in turn perceive a greater role for ethics and social responsibility in business. Analysis of results based on a sample of 137 HR professionals shows that where people report that their organisation provides meaningful work, they are more likely to display reflective MA and the belief that ethics and social responsibility are compatible with business objectives, suggesting that organisations who are interested in promoting an ethical culture should focus on their work structures and practices. More generally, OV is shown to have a more complex relationship with PRESOR than hypothesised pointing towards a more nuanced view of OV. The paper examines the implications of the results for organisations and research.     

Institutional Impediments to Voluntary Ethics Measurement Systems

In this paper, we argue that calls for widespread implementation of ethics measurement systems would be better informed by institutional economic analysis. Specifically, we assert that proponents of such systems must first recognize and understand the institutions that potentially impede such efforts. We identify two potential institutional impediments to measuring ethics and social responsibility. First, we suggest that neoclassical economics, supported by traditional business education and legal precedent, serves to reinforce the notion that shareholders are the primary corporate constituency group. Such an emphasis on the needs of shareholders severely hinders implementation of measurement systems that address the needs of multiple stakeholder groups. Second, we argue that the threat of litigation may constrain corporate managers from measuring and considering ethics and corporate social responsibility matters. In particular, managers may be reluctant to quantify various ethical concerns if the resulting measurements could be used as evidence against the corporation in a lawsuit.     

The Worldwide Academic Field of Business Ethics: Scholars’ Perceptions of the Most Important Issues

We conducted an international survey of 211 scholars with expertise in business ethics. Each respondent was asked to identify the three most important issues that business ethics academia will face in the coming decade. Using content analytic procedures, responses were categorized and analyzed for commonalities. The results suggest that the most important issues facing business ethics academia in the future will be the following: (1) issues relating to business ethics education such as curriculum, pedagogy, faculty, and accreditation (2) the credibility of the business ethics field, (3) environmental issues, (4) issues relating to business ethics research such as research tools and quality of business ethics research (5) the decline of ethical behavior in society and organizations, (6) corporate social responsibility (CSR), (7) globalization, and (8) the institutionalization of ethics into business. We maintain that these issues have important teaching and research implications for the future sustainability of the business ethics discipline.     

Effective Teaching of Ethics in International Business

A unique pedagogical tool using vignettes from international settings in a game format is presented to effectively teach business ethics. Using role playing, participants evaluate ethical dilemmas from the perspective of a business corporation, an employee of the organization, and as a member of the larger community. By having to recognize and adopt positions on a large variety of ethical situations, participants learn the particular, and sometimes unexpected aspects of social responsibility in international business.     

Business Ethics and the Management of Non-Profit Institutions

The core of business ethics literature is based upon the stakeholder theory of the firm. The normative function of this theory is to internalise the concept of social responsibility into the definition of the firm (the firm as a social contract) and into the managerial practice (participative management, social and ethical audit). But why should we introduce this business ethics approach into the field of the non-profit sector, which by its origin and mission has already a strong social dimension? Is there a genuine dilemma of social responsibility in non-profjt institutions? The first part of the paper will give a more theoretical answer to this question. The second part will illustrate the relevance of the business ethics approach by presenting an empirical application of the stakeholer theory in the Belgian-Flemish non-profit sector.     

宗教文化视角下东西方商业伦理观差异比较及启示

商业伦理影响着经济的进步,宗教文化影响着商业伦理的发展,在历史变迁中,宗教文化对东西方商业伦理观存在着不同程度的影响。文章论述了商业伦理的内涵及其与宗教文化的关系,阐述了宗教文化视角下东西方商业伦理观在金钱观念、契约观念、诚信观念和社会责任观念四个方面存在着差异,并进行了比较分析。根据对东西方商业伦理观的差异分析,得出结论并从四个方面得出相应的启示以提升中国商业伦理水平。     

Ethical Cognition of Business Students Individually and in Groups

This study provides evidence regarding the level of ethical cognition of business students at the entry to college as compared to a national norm. It also provides comparative evidence on the effects of group versus individual ethical cognition upon completion of a business ethics course. The Principled Score (P-score) from the Defining Issues Test (DIT) was used to measure the ethical cognition of a total sample of 301 business students (273 entering students plus 28 students in a business ethics course). The results indicate that (1) business students are not significantly different from the national norms at entry to college and (2) group reasoning helps male students improve their P-scores significantly in the business ethics course at a loss of P-score (albeit not statistically significant) for female students.     

Twenty Years of European Business Ethics – Past Developments and Future Concerns

Over the past 20 years business ethics in Europe witnessed a remarkable growth. Today business ethics is faced with two challenges. The first comes from the social sciences and consultants who have both reclaimed the topics of business ethics, regretfully often at the loss of the proper ethical perspective. The second comes from the remarkable rise of corporate social responsibility which has pushed aside the mainstream business ethics methodology with its emphasis on moral deliberation by the individual. These challenges can be tackled by an institutional transformation in business ethics that links up to the long-standing European tradition of institutional analysis of the market. The second remedy is an enlargement of the research agenda in business ethics by coming closer to other parts of applied ethics where the business ethics view is at this moment grossly neglected.     

Ethics in Business: Answering the Call

What might happen if business leaders across the globe viewed their work as a sacred calling in a religious sense? Might not the world be a far better place? This paper is an effort to stimulate debate and discussion on this topic. Concepts addressed include: (a) ethics in business, (b) ethical standards in business settings, (c) the role of law, (d) levels of corporate responsibility, (e) the role of religion in business ethics, (f) the idea of business as a calling in a religious sense, (g) the elements of modern corporate culture, (h) creating an ethical corporate culture, (i) demonstrating corporate social responsibility, and (j) providing servant leadership. The introduction to the paper shows how these concepts interrelate; its conclusion offers a challenge to business leaders to answer their call to business in the truest sense.     

Living in the Gray: Lessons on Ethics from Prison

Often overlooked once they are remanded to custody, incarcerated former business executives can provide valuable insight into the inner workings of organizations while also contributing to the dialogue on of business ethics within the undergraduate business curricula. This paper summarizes experiences of white collar offenders obtained through a questionnaire-based research method to elicit lessons on ethics from prisoners and to provide a unique learning experience for undergraduate business students. Data was collected from 12 questionnaire responses (n = 12) which resulted in four major themes involving business ethics: core values, ethical responsibility, ethics training, and ethical culture. Narrative responses, integration of ethical decision-making research and student discoveries are included for each theme.     

How Ethical Behavior of Firms is Influenced by the Legal and Political Environments: A Bayesian Causal Map Analysis Based on Stages of Development

Even though potential impacts of political and legal environments of business on ethical behavior of firms (EBOF) have been conceptually recognized, not much evidence (i.e., empirical work) has been produced to clarify their role. In this paper, using Bayesian causal maps (BCMs) methodology, relationships between legal and political environments of business and EBOF are investigated. The unique design of our study allows us to analyze these relationships based on the stages of development in 92 countries around the world. The EBOF models structured through BCMs are used to explain how EBOF in a given country group are shaped by how managers perceive political, legislative, and protective environments of business in these countries. The results suggest that irregular payments and bribes are the most influential factors affecting managers’ perceptions of business ethics in relatively more advanced economies, whereas intellectual property protection is the most influential factor affecting managers’ perceptions of business ethics in less-advanced economies. The results also suggest that regardless of where the business is conducted in the world, judicial independence is the driving force behind managers’ perceptions of business ethics. In addition, the results of this study provide further support for scholars who argue that business ethics is likely to vary among countries based on their socio-economic factors. In addition to its managerial implications, the study provides directions for policy makers to improve the ethical conduct of businesses in their respective countries.     

Ethics Sensitivity and Awareness Within Organizations in Kuwait: An Empirical Exploration of Epoused Theory and Theory-in-Use

This paper highlights the potential harms in the current state of business ethics education and presents an alternative new model of business ethics education. Such potential harms in business ethics education is due largely to restricted cognitive level of reasoning, a limited level of ethical conduct which remains only responsive and adaptive, and the estrangement between strategic thinking and ethical thinking. As a remedy for business ethics education, denatured by these potential harms, a new dynamic model of business ethics education is proposed. The new model is composed of a basic foundation for business ethics education and three practical components of business ethics education. The basic foundation comprises of ethical reasoning, moral sentiments, and ethical praxis. Three practical components of business ethics education are, respectively, to intensify moral imagination, to develop ethical wisdom and courage, and to enhance meta-strategic competences. The ultimate purpose of these practical components is to help moral subjects to conduct ethical leadership, to actualize integrity between individuals and organization, and to fulfill the social responsibility of business firms. This new model is expected to attract attention to the effective business ethics education both in college and in industry, and to be used as a benchmark for new curriculum designs and development of teaching methods. Finally, some teaching methodologies and pedagogical experiments are introduced and discussed according to this new model of business ethics educaiton.     

The Status of Contemporary Business Ethics Research: Present and Future

This study provides a general overview of contemporary business ethics research of the last 10 years (1997–2006) and discusses potential future research directions in business ethics based on the overview. Using citation and co-citation analysis, this study examined the citation data of journal articles, books, and other publications collected in the Social Sciences Citation Index (SSCI), wherein key research themes in business ethics studies in 1997–2006 and correlations between these themes were explored. The results show that major research themes in business ethics have shifted in the last decade from research on ethical decision making and on the relationship between corporate social responsibility and corporate performance to research on stakeholder theory in business ethics and on the relationship between consumer behavior and corporate social responsibility. The results of this study help map the invisible network of knowledge production in business ethics research and provide important insights on future business ethics research.     

The Middle Path: Using Dual-Investor Theory in Teaching Business Ethics

Graduates of business ethics courses often fail to apply what they have learned to decisions in business life because, this study finds, neither stakeholder theory nor shareholder-oriented theories seem satisfactory – less than 7% of respondents felt either view achieved the best balance between social responsibility and making a profit. Dual-Investor theory offers students a framework within which to articulate and think through the ethical dimensions of business decisions, a framework 77.8% of respondents overall and 82.1% of business students claimed they were most likely to use in making their own decisions. The paper provides three sample cases illustrating the instructional advantages of Dual-Investor theory and points out several ways instructors might use Dual-Investor theory in business ethics courses.