Toward a foundational normative method in business ethics

Business ethics as an applied inquiry requires an expanded normative method which allows both philosophical and religious ethical considerations to be employed in resolving complex issues or cases. The proposed foundational normative method provides a comprehensive framework composed of major philosophical and religious ethical theories. An extensive rationale from the current trends in business ethics and metaethical considerations supports the development of this method which is illustrated in several case studies. By using this method, scholars and business persons gain greater certitude about the ethical quality of their deliberations and decision making than what may be achieved with current nonsystematic or nascent normative methods.Lester F. Goodchild teaches business ethics, religious studies, and history in the School for New Learning at DePaul University. His business experience includes management and consulting in several regional and international corporations. He received his doctorate from the Department of Education at the University of Chicago in 1986. His dissertation described how strategic policy decisions created the missions of three Catholic universities in the midwestern United States from 1842 to 1980.An earlier version of this paper was delivered at the Midwest American Academy of Religion Meeting at George Williams College, Lake Geneva, Wisconsin on April 8, 1983. I would like to thank William K. Frankena, Dennis McCann, Robert Cooke, Thomas McMahon, C. S. V., Patricia H. Werhane, and James A. O'Donohoe for their helpful comments in its revision.     

Affirmative action and redistributive ethics

Management faces complex race related issues in which groups arguing entitlement appear to claim benefits historically enjoyed by others. Thus many affirmative action issues provoke animosity because they are framed as zero sum problems. To some extent they are zero sum. Therefore, rationales for corporate policy must address that forthrightly. Up to now the corporate justification has been weak. The article describes a social debt owed interracially resulting from the accumulation of current class benefits from past discrimination, and asserts that affirmative action policies have a firm ethical basis inasmuch as they are affectively redistributing benefits to pay the social debt. Richard F. America is a program manager at the U.S. Small Business Administration and Research Associate at the Howard University, Institute for Urban Affairs. He has taught at the business schools at the University of California at Berkeley and at Stanford University, and was a consultant at Stanford Research Institute. He is coauthor (with Bernard E. Anderson) of Moving Ahead: Black Managers in American Business,McGraw Hill, New York, NY, 1978.     

Representational Approaches Matter

This paper raises the question of how ethical issues arising out of social inequities involving international business in developing countries can be represented, and articulates a conceptual framework that identifies and maps four different approaches to representing or making sense of such issues. A fieldwork-based case study on the child labor issue in Pakistan’s soccer ball industry illustrates the argument that representational practices do matter, and that when representational approaches go awry, they end up savaging the well-being of the poor in the developing world. Farzad Rafi Khan holds a Ph.D. in Management from McGill University. He is currently an Assistant Professor at the Suleman Dawood School of Business, Lahore University of Management Sciences, Pakistan.     

Ethical principles of Catholic social teaching behind the United States bishops' letter on the economy

This article analyzes six ethical principles at work in the Pastoral Letter of the Roman Catholic Bishops on the United States economy. The first three principles derive from the Thomistic tradition with its attempt to avoid the extremes of collectivism and individualism. Human beings are by nature social and called to live in political society. The principle of subsidiarity guides the role of the state. Distributive and social justice furnish the criteria for a just distribution of human goods. The fourth ethical principle which is a later development in the Catholic tradition recognizes human rights including economic rights. In keeping with recent emphases in Catholic teaching the fifth principle insists that the goods of creation exist to serve all and stresses the social aspect of property. The sixth principle enunciates a preferential option for the poor and has come to the fore in the light of recent liberation theology. Charles E. Curran is Ordinary Professor of Moral Theology at The Catholic University of America and for the 1987–88 academic year Rachel Rebecca Kaneb Visiting Professor of Catholic Studies at Cornell University. He is a past president of the Catholic Theological Society of America and of the Society for Christian Ethics. His two most recent books are Faithful Dissent (Kansas City, MO: Sheed and Ward, 1986) and Toward an American Catholic Theology (Notre Dame, IN: University of Notre Dame Press, 1987).     

主权财富基金开展对外投资所面临的外部环境分析

近几年主权财富基金的快速发展及其在投资领域的影响,引起了发达国家对主权财富基金的关注,以美国为代表的国家对主权基金的态度处于矛盾之中.既希望获得主权财富基金的资金.又担心由此而引发的国家安全等问题.在此种国际环境下,我国应该积极参与主权财富基金国际规则的制定.尽可能地维护我国的利益;加强与东道国和国际机构的关系,树立良好的国际形象;正视自身存在的问题.建立良好的公司治理结构,减少对外投资过程中的阻碍;开展与国外成熟主权财富基金公司或机构投资者的合作,以联合投资的形式开展业务,学习其管理主权财富基金的经验,并进行风险控制,最终实现投资的保值和增值.     

Transition Ethics: A Comparison of Ukrainian and United States Business Professionals

This article compares the ethical attitudes of Ukrainian business professionals with those of United States business professionals. A widely used survey instrument consisting of 16 hypothetical situations involving ethical dilemmas was employed to gather information on ethical attitudes in the two countries. On 13 of 16 vignettes, Ukrainian respondents demonstrated less stringent ethical attitudes than did their United States counterparts. Possible reasons for these differences are discussed, with primary emphasis on the transition from one economic system to another that is underway in Ukraine. Comments from Ukrainian respondents are presented so as to give an indication of the thought processes behind the questionnaire responses. Olena Vynoslavska is Head of Psychology and Pedagogics Chair at the National Technical University of Ukraine, Kyiv. She has been a research scholar under the sponsorship of the International Research and Educational Exchange program of the United States Department of State at Baylor University. Her research has included international comparative studies of entrepreneurship and management techniques. Joseph A. McKinney is Ben H. Williams Professor of International Economics at Baylor University. He was previously on the faculty of the University of Virginia, and has served as visiting professor or research scholar to universities in Japan, France, the United Kingdom and Canada. His research interests include business ethics, international trade policy, and regional economic integration. Carlos W. Moore is the Edwin W. Streetman Professor of Marketing at Baylor University, where he has been on the faculty for more than 30 years. His research interests include business ethics, marketing and advertising evaluation, and small business strategies. He has done consulting on bank marketing and new product development. Justin G. Longenecker is Emeritus Professor of Management at Baylor University. His research interests include business ethics, entrepreneurship, and family business. He is co-author of the leading text on small business management, and is the author of scholarly articles on various aspects of business management.     

Bankruptcy Proceedings for Sovereign State Insolvency

This paper examines the main issues involved in translating domestic bankruptcy procedures to the sovereign context. It considers some of the principles by which domestic bankruptcy procedures operate, and the extent to which they apply to international lending. Two recent proposals are considered in more detail, that of Krueger (A New Approach to Sovereign Debt Restructuring) and that of Pettifor (ch. 9/11, Resolving International Debt Crises – the Jubilee Framework for International Insolvency). The paper also considers the question of the ex ante effects of a procedure which makes default less costly, and concludes that despite a negative impact on the ability to borrow, the overall welfare effect need not be negative.     

Western Australian Managers Tell Their Stories: Ethical Challenges in International Business Operations

This paper investigates the ethical challenges facing managers in Western Australia. It identifies the ethical issues that managers confront in international business. Managers in this research have identified a number of significant ethical issues when discussing the ethical incidents that occurred in their international dealings. The research shows a degree of congruence between managers' experiences and establishes the main ethical dilemmas encountered, how they felt and actions taken when confronted with an ethical dilemma.     

Banking across borders

The international linkages between banks play a crucial role in today's global economy. Existing models explain these links largely on the basis of portfolio theory, in which banks diversify lending. These models have found limited empirical support and do not speak to several relevant dimensions of the data. They do not explain heterogeneity in the degree to which banks operate through foreign affiliates, fund their activities abroad or matter for local lending in foreign countries. This paper proposes a complementary theory of banking across borders that is based on elements of international trade theory. In the model, banking across borders arises because countries differ in their relative factor endowments and in the efficiency of their banking sectors. Based on these differences, the pattern of foreign bank asset and liability holdings emerges endogenously. This parsimonious model provides a rationale for the observed heterogeneity in foreign bank activities and is consistent with key patterns in the data.     

How much inevitable US-Euro Area interdependence is there in monetary policy?

Against the backdrop of the present international financial and economic crisis this article looks into the issue of the interdependence of US monetary policy and monetary policy in the euro area. Is there a significant interdependence? If so, what is the nature and intensity of this interdependence? Has the ECB been infl uenced by the Fed or vice versa and to what degree? Has the relationship changed in recent years, and if so, in what direction?     

The Great Forgotten Issue: Vindicating Ethics in the European Qualifications Framework (EQF)

Various international authorities have insisted on the importance of ethical learning in higher education for would-be professionals, including students of Business Administration. As the process of creating the European Higher Education Area gathers pace, first steps have been taken to explicitly incorporate ethics in the common European Qualifications Framework (EQF). However, the authors of this study show how in the course of the EQF development process, the consideration given to ethical qualifications has been curtailed and subjected to serious limitations. In this article, the authors review the historical development and the main elements of the EQF. Then, they analyze the gradual elimination of ethics within the EQF. Finally, they highlight the implications of this gradual elimination and propose avenues for further research. Manuel Guillén is Senior Lecturer in Management, at the University of Valencia (Spain). Prof. Guillén earned his PhD in Management with a specialization in ethics and strategic management integration. He has been a Visiting Scholar at the University of St. Thomas, Minnesota (USA), at the University of Notre Dame, Indiana, USA, and guest Visiting Student at IESE Business School doctoral program, in Barcelona. He has presented some of his research at the top conferences in the field and has published in business ethics and management journals. Since 1997 he has taught Business Ethics courses in different business schools, institutions, and companies. Joan Fontrodona is an Associate Professor of Business Ethics and Academic Director of the Center for Business in Society at IESE Business School. He is member of the Academic Board of EABIS, Chairman of EBEN-Spain, and Member of the Executive Committee of ASEPAM, the Spanish Local Network of the Global Compact. He has published several books and papers on business ethics, corporate social responsibility, philosophy, and management. Alfredo Rodríguez-Sedano holds a PhD in Philosophy and a PhD in Business Administration. He is Professor of Sociology at the Education Department of the University of Navarre (Spain). He is also Visiting Professor at the Catholic University of the West (El Salvador). He has been Visiting Professor at the University of Andes (Chile) and Regular Professor at the Catholic University of Sacred Conception (Chile). He has published 16 books, 12 book chapters, and 15 articles on different subjects in the fields of management, philosophy, and education.     

The relationship between culture and perception of ethical problems in international Marketing

This research study sought to identify whether there is a relationship between ethical perceptions and culture. An examination of the cultural variables suggests that there is a relationship between two of Hofstede's cultural dimensions (i.e., Uncertainty Avoidance and Individualism) and ethical perceptions. This finding supports the hypothetical linkage between the cultural environment and the perceived ethical problem variables posited in Hunt and Vitell's General Theory of Marketing Ethics (1986).Robert Armstrong is Professor of Marketing and Research Associate of the Asia Research Centre at Murdoch University, Programme Chair for the MBA and Marketing and Media degree programmes. Professor Armstrong has been in Australia for six years, he spent two years at the University of Western Australia and the last four years at Murdoch University. To date, he has published over 20 journal articles and an Australian Marketing Research textbook.     

Bhopal,India and Union Carbide: The second tragedy

The paper examines the legal, ethical, and public policy issues involved in the Union Carbide gas leak in India which caused the deaths of over 3000 people and injury to thousands of people. The paper begins with a historical perspective on the operating environment in Bhopal, the events surrounding the accident, then discusses an international situation audit examining internal strengths and weaknesses, and external opportunities and threats faced by Union Carbide at the time of the accident. There is a discussion of management of the various interests involved in international public relations and ethical issues. A review of the financial ratio analysis of the company prior and subsequent to the accident follows, then an examination of the second tragedy of Bhopal — the tragic failure of the international legal system to adequately and timely compensate victims of the accident.The paper concludes with recommendations towards public policy, as well as a call for congressional action regarding international safety of U.S. based multinational operations.Clayton Trotter is a graduate of the University of Texas School of Law and College of Business Administration. Currently, he teaches in both the College of Business and the School of Law at Texas Tech University; and was formerly Associate Professor of Law at the Coburn School of Law in Virginia Beach, Virginia. He has taught courses in Real Estate Law, Corporations, International Business Transations, and Business Law.Mr. Trotter has been attorney of record in a number of contested civil cases and has appeared in the Fifth and Seventh United States Circuit Court of Appeals on such cases. He is licensed in Texas, Florida and the Supreme Court of the United States.He has authored a number of articles on business related legal matters.Susan G. Day is a Texas Real Estate Broker, Escrow Agent, and Insurance Agent. She graduated from Texas Tech University with a major in Business Administration with an emphasis on Management. She currently attends Texas Tech University pursuing a graduate degree in Education.Susan is Past President of the Toastmasters International group at Texas Tech University giving speeches and lectures on real estate and law. In addition, Susan is a member of the following associations at Texas Tech University: Society for Advancement of Management, Marketing Association, Tech Management Association, Lubbock Legal Secretaries Association, National Association for Female Executives and the Ex-Students Association.Amy E. Love graduated Magna Cum Laude in December, 1988 with a Bachelor of Business Administration degree in Management from Texas Tech University. Her long range goals include graduate school where she would like to emphasize finance. Amy is a member of the Society for Advancement of Management, Golden Key National Honor Society, Gamma Sigma Honor Society, and Phi Beta Kappa Honor Society.     

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.     

Teaching Ethics in International Business Courses: The Impacts of Religions

Implicit in most comparative ethical studies is the assumption that cultural and religious differences between countries are the major reasons behind the variations in ethical beliefs and business practice across nations. This article examines research on the international ethical issues and the common moral concerns that permeate differing religious and philosophical perspectives—not only Judaism and Christianity, but also Islam, Hinduism, Buddhism, and Confucianism with emphasis on the Golden Rule. Many commonalities were found. The authors suggest that students (and practitioners) should understand the basic tenets of the major religions and their implications on international business ethics because of the apparent failure of current philosophical approaches.     

Using Best–Worst Scaling Methodology to Investigate Consumer Ethical Beliefs Across Countries

This study uses best–worst scaling experiments to examine differences across six countries in the attitudes of consumers towards social and ethical issues that included both product related issues (such as recycled packaging) and general social factors (such as human rights). The experiments were conducted using over 600 respondents from Germany, Spain, Turkey, USA, India, and Korea. The results show that there is indeed some variation in the attitudes towards social and ethical issues across these six countries. However, what is more telling are the similarities seen and the extent to which individual variation dominates observable demographics and country-based variables. Pat Auger is Associate Professor at the Melbourne Business School. Timothy M. Devinney is Professor and Director of the Centre for Corporate Change at the Australian Graduate School of Management. Jordan J. Louviere is Professor of Marketing at the University of Technology, Sydney.     

Should Business Ethics Be Different in Transitional Economies?

This paper builds on a debate between Velasquez and Fleming: Do multinational enterprises (MNEs) have ethical obligations to their host countries? Velasquez applies Thomas Hobbes' realism approach in arguing that MNEs have no special moral obligations to host countries: (a) obligations do not exist independently in a "state of nature," (b) MNEs exist in a "state of nature" independent of any sovereign authority or power, (c) therefore, MNEs cannot be compelled toward moral or ethical behavior. Fleming counters that the lack of an international authority to compel morality from MNEs is irrelevant. MNEs are for-profit entities making rational economic decisions based on their perceived self-interest. Since they operate in "the goldfish bowl of international media," MNEs are very aware of the stakeholder model. First, the paper supports Fleming's position: Even if a philosophical case cannot be established for MNEs to act ethically &;#x2013; they still should. Being unethical in any arena, but especially in the international arena, is both bad-for-business and bad business. Applying stakeholder theory, if stakeholders perceive the MNE as unethical (which may or may not be true), the firm will ultimately lose business. Next, the paper applies Fleming's position to transitional economies. As economies shift from one system to another, positive perceptions and stakeholder support are required for success. With so many environmental variables in flux, multinationals must promote a sense of normalcy, of regular ethical habits, of familiarity. Finally, the paper concludes by cautioning a sole reliance on stakeholder analysis &;#x2013; especially in turbulent times &;#x2013; and recommends areas for further research.     

The Investment Performance of Socially Responsible Investment Funds in Australia

Interest in the notion of the possible financial sacrifice suffered by socially responsible investment (SRI) fund investors for considering ethical, social and environmental issues in their investment decisions has spawned considerable academic interest in the performance of SRI funds. Both the Australian and international research literature have yielded largely mixed results. However, several of these studies are hampered by methodological problems which can obscure the significance of reported results, such as the use of small sample sizes, inconsistencies in the time frames selected to analyse performance and different modelling frameworks used to estimate investment returns. This study attempts to redress some of these issues by investigating the returns performance of 89 ethical funds in Australia over the period 1986–2005. Using a multi-factor CAPM model [Fama, E. F., and K. R. French (1996) J. Finance 51(1), 55] (which controls for factors such as size, book-to-market value and momentum) we find that ethical funds significantly under-perform the market in Australia, particularly in the most recent 5 years of our sample period (2000–2005). Risk adjusted returns (using Jensen’s alpha) indicate that average annual underperformance is around 1.52% in the 2000–2005 period for our sample and .88% over the whole sample period. Our results contrast with many previous studies (both Australian and international), which have not found statistically significant differences in the performance of ethical funds relative to market benchmarks and/or a matched sample of conventional funds. Stewart Jones is a Professor of Accounting with the University of Sydney, appointed in 2001. His research interests embrace credit risk modelling, capital markets research, standard setting and accounting theory. Sandra van der Laan is a lecturer in the Discipline of Accounting at the University of Sydney. Her research focuses on accounting as a social discourse and accounting as a mechanism to discharge a broad range of corporate accountabilities. Geoff Frost is an Associate Professor of Accounting at the University of Sydney. His research interests include corporate social responsibility and ethical investment. Janice Loftus is a senior lecturer in accounting at the University of Sydney. Her current research interests include financial accounting and corporate social responsibility reporting.     

Importance of and approaches to incorporating ethics into the accounting classroom

Accounting educators are being called on to provide a greater emphasis on ethics education. This paper examines three important issues concerning ethics education in accounting. First, the question of whether ethics can indeed be taught is examined. Next, several innovative approaches are presented which have been used by accounting educators to integrate ethics into the classroom. Finally, results of a survey of students concerning their perspectives of ethical issues in accounting education, the accounting profession, and society at large are presented and discussed. Survey results reveal that students consider a lack of ethics damaging to the accounting profession and society. Results also indicate that accounting students are seeking ethical and moral direction.David S. Kerr is an Assistant Professor in the Department of Accounting at Texas A&M University. Dr. Kerr's research interests include ethics and behavioral decision making in accounting, group judgment/decision making, and audit planning.L. Murphy Smith, is a Price Waterhouse Teaching Excellence Professor of Accounting at Texas A&M University. His major research interests are information systems, auditing, and international issues.