Ethical Mindsets: An Australian Study

This article investigates the development of research in the field of CSR in China. The justification for this is that (i) there is evidence that CSR is emerging as a management practice and management field internationally; (ii) there is a general interest in the distinctiveness or comparability of management and management research in Asia and China; (iii) there is evidence that CSR is growing as a management issue in China; and (iv) yet, the mainsprings of this are very different from those in Western business systems. This article adopts a methodology used in wider analysis of CSR in management research (Lockett et al., Journal of Management Studies 43, 2006, 115) to bring forth comparisons over the salience, focus and nature of CSR in China research. It finds a rapidly growing salience of CSR in China research, albeit from a low base. It parallels Lockett et al.’s (2006) finding of a ‘thickening’ of CSR research focus from early concerns with Ethical issues only to greater attention to Social, Environmental and Stakeholder concerns. It also generally parallels Lockett et al.’s (2006) findings on the balance of research methodologies deployed. The significance of the findings for future CSR research in China is considered both for the notion of a CSR field of research and for our understanding of the development of CSR in China.     

Globalizing Business Ethics Research and the Ethical Need to Include the Bottom-of-the-Pyramid Countries: Redefining the Global Triad as Business Systems and Institutions

A majority of the countries in the world are still considered “developing,” with a per capita income of less than U$1,000. Hahn (2008, Journal of Business Ethics 78, 711–721) recently proposed an ambitious business ethics research agenda for integrating the “bottom-of-the-pyramid” countries (Prahalad and Hart, 2002, Strategy and Competition 20, 2–14) through sustainable development and corporate citizenship. Hahn’s work is among the growing field of research in comparative business ethics including the global business ethics index (Michalos, 2008, Journal of Business Ethics 79(1), 9–19; Scholtens and Dam, 2008, Journal of Business Ethics 75(3), 273–284; Tsalikis and Seaton, 2008, Journal of Business Ethics 75(3), 229–238). This article is complementary to Hahn’s work and it advocates an urgent need for business ethics researchers to globally integrate the bottom-of-the-pyramid countries through a fundamental re-definition of the global economic triad, including the United States, Western Europe, and Japan [Ohmae, 1985, Triad Power: The Coming Shape of Global Competition (New York: Free Press)]. The definition that we propose is based on business systems and institutional perspectives that include the bottom-of-the-pyramid countries. We also propose to broaden the research in business ethics to enable comparisons across business systems indifferent income levels.     

To seek variety or uniformity: The role of culture in consumers’ choice in a group setting

One stream of research suggests that individuals in a collectivistic culture tend to follow the others’ choices in a group choice setting (e.g., Markus and Kitayama 1991). Other research, however, suggests that the choices others make have little impact on the individuals’ choices in this cultural context (e.g., Kim and Drolet 2003). The current research attempts to test these competing hypotheses by examining individuals’ choices in group choice contexts (Ariely and Levav 2000). First, comparisons of 517 meal order slips from two local restaurants in Korea with simulated outcomes indicate a profound group-level uniformity seeking in dish selections. Second, our field experiment reveals that members of a collectivist culture tend to follow group members’ choices when group influence is evident. Unlike the previous findings of studies conducted on individuals from Western cultures, selections made in accordance with the cultural norm do not result in the reduction of emotional well-being for the collectivist cultural individuals. Finally, we provide more direct evidence for the hypothesized role of culture by showing that the choices of individuals with collectivistic cultural backgrounds are associated with higher uniformity-seeking tendency compared to those of individualistic cultural backgrounds.     

Focus group interviewing in China: Language, culture, and sensemaking

This paper explores the use of foreign languages in qualitative focus group research in China. I focus on language, culture, and sensemaking from a point of view, which presents language as being context and time specific. While this has been examined recently in the field of International Business, it has not been discussed within International Entrepreneurship and with regard to focus groups. My findings show that shared meaning can be constructed in focus groups across different languages and locations but depends on the use of cultural insiders and resources. This leads us to new levels of understanding within International Entrepreneurship. The author uses the definition of International Entrepreneurship (IE) as provided by Oviatt and McDougall (2005) who qualified IE research as falling into categories: research that provides comparisons of entrepreneurial behavior in multiple countries and cultures or research that examines organization behavior that extends across national borders and is entrepreneurial (Oviatt and McDougall 2005: 540).     

Co-Evolution: Law and Institutions in International Ethics Research

Despite the importance of the co-evolution approach in various branches of research, such as strategy, organisation theory, complexity, population ecology, technology and innovation (Lewin et al., 1999; March, 1991), co-evolution has been relatively neglected in international business and ethics research (Madhok and Phene, 2001). The purpose of this article is to show how co-evolution theory provides a theoretical framework within which some issues of ethics research are addressed. Our analysis is in the context of the contrasts between business systems (North, 1990), and in particular the distinction between informal systems and those systems where institutions are formalised in law. This complements the growing research on comparative corporate governance and capitalisms (Chandler and Hikino, 1990; Choi et al., 1999; Whitley, 1994). The synthesis of co-evolution and analysis of divergent institutional environments in ethics research can also complement the globalisation and MNE approaches to international business research.     

Small-Business Owner-Managers’ Perceptions of Business Ethics and CSR-Related Concepts

Recent academic articles point to an increased vagueness and overlap in concepts related to business ethics and corporate responsibility. Further, the perception of these notions can differ in the small-business world from the original academic definitions. This article focuses on the cognition of small-business owner-managers. Given the impact of small-business owner–managers on their ventures, corporate responsibility and ethical issues can take a different route in SMEs. The small-business owner–manager is able to shape the corporate culture and to enact values other than profit. Adopting a cognitive perspective, we have identified how the small-business owner–manager makes sense of notions linked to corporate social responsibility (CSR) and business ethics. The concept of sensemaking has recently been applied to CSR (Basu and Pallazzo, 2008; Cramer et al., 2006). Applying a cognitive perspective to small-business owners may help in explaining specific phenomena found within small-business ownership. For this research, the Repertory Grid Technique (RGT) is used, a method that has not previously been widely applied in the business and society field.     

Evaluating Ethical Approaches to Crisis Leadership: Insights from Unintentional Harm Research

Leading a corporation through a crisis requires rational decision making guided by an ethical approach (Snyder et al., Journal of Business Ethics, 63, 2006, 371). Three such approaches are virtue ethics (Seeger and Ulmer, Journal of Business Ethics, 31, 2001, 369), an ethic of justice, and an ethic of care (Simola, Journal of Business Ethics, 46, 2003, 351). In this article, I consider the effectiveness of these approaches for leading a corporation after a crisis. The standard I use is drawn from recent studies that examine how people tend to react to corporate unintentional harms. I conclude from these studies that an ethic of care approach is most effective for managing corporate crises when it comes to stakeholder concerns. I conclude the article with strategies for managing a crisis using an ethic of care.     

Are Stock Options Grants to CEOs of Stagnant Firms Fair and Justified?

Prior research has examined several ethical questions related to executive compensation. The issues that have received most attention are whether executives’ pay is fair and justified by performance. Since more recent studies show that stock options grants constitute the single largest component in executive compensation, we examine the relations of these grants to economic determinants and corporate governance for firms in the stagnant stage of their lifecycle. We find that, on average, stock options grants comprise a significant portion of annual CEO compensation (26.4%) for stagnant firms. We also find that economic (corporate governance) factors explain less (or more) of the cross-sectional variation in stock options grants for stagnant firms than for growth firms. Furthermore, we document lower pay-performance sensitivity (i.e., weaker incentive alignment) and no improvement in future firm performance from past stock options grants to CEOs of stagnant firms. In particular, our study provides empirical evidence on some inefficiencies associated with stock options grants to CEOs of low potential (stagnant) firms, a long-standing concern of business ethics researchers (Moriarty, 2005; Nichols and Subramaniam, 2001; Perel, 2003). Our results also provide support for the corporate governance reforms discussed in Matsumura and Shin (2005), especially those proposed provisions that curtail the power of CEOs in the governance of firms.     

Humanism in Business – Towards a Paradigm Shift?

Management theory and practice are facing unprecedented challenges. The lack of sustainability, the increasing inequity, and the continuous decline in societal trust pose a threat to ‘business as usual’ (Jackson and Nelson, 2004). Capitalism is at a crossroad and scholars, practitioners, and policy makers are called to rethink business strategy in light of major external changes (Arena, 2004; Hart, 2005). In the following, we review an alternative view of human beings that is based on a renewed Darwinian theory developed by Lawrence and Nohria (2002). We label this alternative view ‘humanistic’ and draw distinctions to current ‘economistic’ conceptions. We then develop the consequences that this humanistic view has for business organizations, examining business strategy, governance structures, leadership forms, and organizational culture. Afterward, we outline the influences of humanism on management in the past and the present, and suggest options for humanism to shape the future of management. In this manner, we will contribute to the discussion of alternative management paradigms that help solve the current crises.     

Self-regulation,Corporate Social Responsibility,and the Business Case: Do they Work in Achieving Workplace Equality and Safety?

The political shift toward an economic liberalism in many developed market economies, emphasizing the importance of the marketplace rather than government intervention in the economy and society (Dorman, Systematic Occupational Health and Safety Management: Perspectives on an International Development, 2000; Tombs, Policy and Practice in Health and Safety 3(1):24–25, 2005; Walters, Policy and Practice in Health and Safety 03(2):3–19, 2005), featured a prominent discourse centered on the need for business flexibility and competitiveness in a global economy (Dorman, 2000; Tombs, 2005). Alongside these developments was an increasing pressure for corporate social responsibility (CSR). The business case for CSR – that corporations would benefit from voluntarily being socially responsible – was increasingly promoted by governments and corporations as part of the justification for self-regulation. The aim of the article is to examine more closely the proposition that self-regulation is effective, with particular reference to the business case for workplace equality and safety. Based on a comprehensive literature review and documentary analysis, it was found that current predominant management discourse and practice focusing on diversity and safety management systems (OHSMS) resonate well with a government and corporate preference for the business case and self-regulation. However, the centrality of individual rather than organizational factors in diversity and OHSMS means that systemic discrimination and inherent workplace hazards are downplayed, making it less likely that employers will initiate structural remedies needed for real change. Thus, reliance on the business case in the argument for self-regulation is problematic. In terms of government policy and management practice, the business case needs to be supplemented by strong, proactive legislation, and worker involvement.     

A Comment on Barnett and Block on Time Deposit and Bagus and Howden on Loan Maturity Mismatching

In Time Deposits, Dimension, and Fraud (2009), William Barnett and Walter Block argue that by borrowing short and lending long there is an over issuance of property rights. Their article, however, does not fully extend the consequences of their contribution. Once this is done, it becomes clearer that their argument suits a great impediment to banking, becoming a possible reason to support rather than to oppose fractional reserve banking. Bagus and Howden (J Bus Ethics 90(3):399–406, 2009) comment on Barnett and Block (J Bus Ethics 88(4):711–716, 2009), the authors claim that while maintaining the illegitimacy of fractional reserve deposits, borrowing short and lending long it is actually not illegitimate. An extension on Bagus and Howden (2009) will show that their line of argumentation can be applied as a defense of fractional reserve banking as well.     

To Help or Not to Help? Personal Value for Diversity Moderates the Relationship Between Discrimination Against Minorities and Citizenship Behavior Toward Minorities

Using the scope of justice perspective (Deutsch in J Soc Issues 31(3):137–149, 1975; Opotow in Conflict, cooperation, and justice: essays inspired by the work of Morton Deutsch, 1995, J Soc Issues 52:19–24, 1996), we examined whether and how the relationship between perceived discrimination against minorities at work (i.e., racial minorities and females) and citizenship behavior toward minorities can be modified by personal value for diversity. Based on a survey of 173 employees, unexpectedly, we found a negative relationship between perceived discrimination against minorities at work and citizenship behavior toward minorities. However, consistent with our expectations and the scope of justice, we found that the negative relationship was attenuated for those high in personal value for diversity.     

Rejoinder to Bagus and Howden on Borrowing Short and Lending Long

In Barnett and Block (J Bus Ethics 88(4):711–716, 2009a), the present authors claim that borrowing short and lending long is fraudulent, and thus ought to be prohibited on legal grounds. Bagus and Howden (J Bus Ethics 90(3):399, 2009) take issue with our ethical analysis. The present paper is our response to these authors; it is an attempt to defend Barnett and Block (J Bus Ethics 88(4):711–716, 2009a) against the very interesting and important, although we believe, erroneous, criticisms of Bagus and Howden (J Bus Ethics 90(3):399, 2009).     

A Cross-Cultural Comparison of the Deliberative Reasoning of Canadian and Chinese Accounting Students

Absract  Using Hofstede’s culture theory (1980, 2001, Culture’s Consequences: Comparing Values, Behaviours, Institutions, and Organizations Across Nation. Sage, NewYork), the current study incorporates the moral development (e.g. Thorne, 2000; Thorne and Magnan, 2000; Thorne et al., 2003) and multidimensional ethics scale (e.g. Cohen et al., 1993; Cohen et al., 1996b; Cohen et al., 2001; Flory et al., 1992) approaches to compare the ethical reasoning and decisions of Canadian and Mainland Chinese final year undergraduate accounting students. The results indicate that Canadian accounting students’ formulation of an intention to act on a particular ethical dilemma (deliberative reasoning) as measured by the moral development approach (Thorne, 2000) was higher than Mainland Chinese accounting students. The current study proposes that the five factors identified by the multidimensional ethics scale (MES), as being relevant to ethical decision making can be placed into␣the three levels of ethical reasoning identified by Kohlberg’s (1958, The Development of Modes of Moral Thinking and Choice in the Years Ten to Sixteen. University of Chicago, Doctoral dissertation) theory of cognitive moral development. Canadian accounting students used post-conventional MES factors (moral equity, contractualism, and utilitarianism) more frequently and made more ethical audit decisions than Chinese accounting students. Lin Ge is an accountant at Guest-tek Interactive Entertainment Ltd. Her research interest includes ethics and judgment of accountants and auditors, cross-cultural studies and international business. Stuart Thomas, Ph.D., is associate professor of accounting in the Faculty of Management at the University of Lethbridge, Alberta, Canada. He has published in the Journal of Business Ethics, Business and Society, Research on Professional Responsibility and Ethics in Accounting, Advances in Management Accounting and the Journal of Accounting Case Research. His research interests focus on ethical decision making and the effects of pay schemes on performance and standard setting.     

Michael Porter’s Competitiveness Framework—Recent Learnings and New Research Priorities

The conceptual framework of competitiveness and clusters introduced by Michael Porter in his Competitive Advantage of Nations (Free, New York, 1990) remains exceptionally influential, especially among practitioners. The article discusses recent learnings about Porter's conceptual framework from practical applications and research directly driven by his work. It also outlines developments in the creation and analysis of empirical datasets and the analysis of policy processes, two main areas of current research in this field that are likely to increase in importance. The aim is to provide a coherent and current representation of key elements of the framework, while also discussing a few misperceptions about the concept present among practitioners or researchers.      

Social Contracting in a Pluralist Process of Moral Sense Making: A Dialogic Twist on the ISCT

This paper applies Wempe’s (2005, Business Ethics Quarterly 15(1), 113–135) boundary conditions that define the external and internal logics for contractarian business ethics theory, as a system of argumentation for evaluating current or prospective institutional arrangements for arriving at the “good life,” based on the principles and practices of social justice. It does so by showing that a more dynamic, process-oriented, and pluralist ‘dialogic twist’ to Donaldson and Dunfee’s (2003, ‘Social Contracts: sic et non’, in P. Heugens, H. van Oosterhout and J. Vromen (eds.), The Social Institutions of Capitalism: Evolution and Design of Social Contracts (Cheltenham, UK, Edward Elgar Publishing, Ltd.) pp. 109–126; 1999, Ties that Bind: A Social Contracts Approach to Business Ethics (Boston, MA, Harvard Business School Press); 1995, Economics and Philosophy 11(1), 85–112; 1994, Academy of Management Review 19(2), 252–284.) integrated social contracting theory (ISCT) of economic ethics will further develop this promising and influential approach to moral reasoning, ethical decision-making, and stakeholder governance. This evolutionary, interactive learning-based model of ethical norm generation via dialogic stakeholder engagement is particularly appropriate within economic communities that are experiencing value conflict and pressures for institutional change.Jerry M. Calton is Professor of Management at the University of Hawaii at Hilo. His research interests encompass multi-stakeholder learning dialogue, trust-based network governance, and the social contracting approach to ethical decision-making. His publications have appeared in the Journal of Business Ethics, Business & Society, Business Ethics Quarterly, the Journal of Corporate Citizenship, and elsewhere.     

A polymorphism associated with entrepreneurship: evidence from dopamine receptor candidate genes

The tendency to be an entrepreneur may be influenced by genetic variation. Sensation seeking is more common among entrepreneurs than among the general population. Twin studies show that the tendency to be an entrepreneur is heritable and that common genes influence both sensation seeking and entrepreneurial tendency (Nicolaou et al. Manag Sci 54:167–179, 2008a; Strateg Entrep J 2:7–21, 2008b). Since dopamine receptor genes have been associated with novelty seeking/sensation seeking (Benjamin et al. Nat Genet 12:81–84, 1996; Ebstein et al. Nat Genet 12:78–80, 1996; Noblett and Coccaro Curr Psychiatry Rep 7:73–80, 2005), and attention deficit hyperactivity disorder (ADHD) has been reported to occur at greater rates among entrepreneurs, we examined the association between five dopamine receptor genes and four ADHD-associated genes, with the tendency to be an entrepreneur in a sample of 1,335 individuals from the UK. We found a single nucleotide polymorphism (rs1486011) of the DRD3 gene on chromosome 3 to be significantly associated with the tendency to be an entrepreneur. This result is the first evidence of the association of a specific gene with entrepreneurship. Further studies are needed to replicate this association.     

Evolutionary Processes,Moral Luck,and the Ethical Responsibilities of the Manager

The responsibilities of the manager have been examined through several lenses in the business ethics literature: Kantian (Bowie, 1999), contractarian (Donaldson and Dunfee, 1999), consequentialist (Friedman, 1970), and virtue ethics (Solomon,1992), to name just four. This paper explores what the ethical responsibilities of the manager would look like if viewed through an evolutionary lens. Discussion is focused on the impact of evolutionary thinking on the process of moral reasoning, rather than on the sources or the substance of morality. The conclusion is reached that the evolutionary lens supports the view that moral luck plays an important role in how we assign ethical responsibilities.     

Partnership Formation for Change: Indicators for Transformative Potential in Cross Sector Social Partnerships

Despite their ethical intentions, ethically minded consumers rarely purchase ethical products (Auger and Devinney: 2007, Journal of Business Ethics 76, 361–383). This intentions–behaviour gap is important to researchers and industry, yet poorly understood (Belk et al.: 2005, Consumption, Markets and Culture 8(3), 275–289). In order to push the understanding of ethical consumption forward, we draw on what is known about the intention–behaviour gap from the social psychology and consumer behaviour literatures and apply these insights to ethical consumerism. We bring together three separate insights – implementation intentions (Gollwitzer: 1999, American Psychologist 54(7), 493–503), actual behavioural control (ABC) (Ajzen and Madden: 1986, Journal of Experimental Social Psychology 22, 453–474; Sheeran et al.: 2003, Journal of Social Psychology, 42, 393–410) and situational context (SC) (Belk: 1975, Journal of Consumer Research 2, 157–164) – to construct an integrated, holistic conceptual model of the intention–behaviour gap of ethically minded consumers. This holistic conceptual model addresses significant limitations within the ethical consumerism literature, and moves the understanding of ethical consumer behaviour forward. Further, the operationalisation of this model offers insight and strategic direction for marketing managers attempting to bridge the intention–behaviour gap of the ethically minded consumer.     

The Role of Ethical Ideology in Reactions to Injustice

Forsyth (J Pers Soc Psychol 39(1):175–184, 1980) argued that ethical ideology includes the two orthogonal dimensions of relativism and idealism. Relativists determine morality by looking at the complexities of the situation rather than relying on universal moral rules, while idealists believe that positive consequences can always be obtained without harming others. This study examined the role of ethical ideology as a moderator between justice and constructive and deviant reactions to injustice. Students with work experience (N = 200) completed Bennett and Robinson’s (J Appl Psychol 85(3):349–360, 2000) measure of Workplace Deviance, Gill’s (Reactions to injustice: Development and validation of a measure. Unpublished doctoral dissertation, University of Western Ontario, 2005) Reactions to Injustice measure, and the Ethics Position Questionnaire (Forsyth, 1980), and provided ratings of justice in their own workplace. Hierarchical regressions revealed a significant main effect of idealism on deviance and constructive behaviors, and three-way interactions between idealism, relativism, and some types of justice. These findings suggest that ethical ideology plays a significant role in predicting responses to injustice.