Ethics in regulation

This paper was given as the opening address at the 13th Annual European Business Ethics Network Conference' held in Cambridge 12–14 September 2000. The Chairman of the Financial Services Authority, Howard Davies, first outlined the background to the present approach to financial regulation in the UK. He described the principle‐based regulatory regime which is now in the process of being implemented, and the role of rules, regulations and guidelines in making this effective. However, compliance is not sufficient; for the system to work there needs to be an ethical culture at the level of the organisation, and a commitment to integrity on the part of those who work in the sector. The Financial Services Authority aims to work with the industry to build individual and corporate responsibility.     

Ethics in Business

The concept of ethics in business is presented through an examination of ethnical theories and through the application of the theories to several case incidents. A set of guidelines and implications for management, intended to stimulate ethics in the practice of business, are presented and discussed.     

Ethics in Finance

Book Reviewed in this article
Financial Decision-Making and Moral Responsibility. Edited by Stephen Frowen and Francis P. McHugh     

The Separation of Technology and Ethics in Business Ethics

The purpose of this paper is to draw out and make explicit the assumptions made in the treatment of technology within business ethics. Drawing on the work of Freeman (1994, 2000) on the assumed separation between business and ethics, we propose a similar separation exists in the current analysis of technology and ethics. After first identifying and describing the separation thesis assumed in the analysis of technology, we will explore how this assumption manifests itself in the current literature. A different stream of analysis, that of science and technology studies (STS), provides a starting point in understanding the interconnectedness of technology and society. As we will demonstrate, business ethicists are uniquely positioned to analyze the relationship between business, technology, and society. The implications of a more complex and rich definition of ‘technology’ ripple through the analysis of business ethics. Finally, we propose a pragmatic approach to understanding technology and explore the implications of such an approach to technology. This new approach captures the broader understanding of technology advocated by those in STS and allows business ethicists to analyze a broader array of dilemmas and decisions.     

Ethics Programs in Global Businesses: Culture's Role in Managing Ethics

Even if there were widespread cross-cultural agreement on the normative issues of business ethics, corporate ethics management initiatives (e.g., codes of conduct, ethics telephone lines, ethics offices) which are appropriate in one cultural setting still could fail to mesh with the management practices and cultural characteristics of a different setting. By uncritically adopting widely promoted American practices for managing corporate ethics, multinational businesses risk failure in pursuing the ostensible goals of corporate ethics initiatives. Pursuing shared ethical goals by means of culturally inappropriate management practices, in short, can undermine the effectiveness of ethics management efforts. This article explicates how several important dimensions of culture can influence the effectiveness of common ethics initiatives, and recommends the development and application of a culture-structure contingency analysis in the task of encouraging ethical behavior in global businesses.     

Who's Who in Business Ethics Teaching Business Ethics in Post-Communist Prague

Management students at the Economic University of Prague have recently been introduced to the subject of Business Ethics. Lidmila Něemcová, who designed and teaches the course, describes their and her reactions.     

A Role for Ethics Theory in Speculative Business Ethics Teaching

The paper discusses the role that ethics theory might play in business ethics teaching. It is noted that little attention is devoted to the explanation and application of ethics theory in business ethics textbooks, which suggests that ethics theory is held in low esteem by business ethics educators. This relative disregard has been justified by some critics on the basis of the limited usefulness of ethics theory to business ethics pedagogy. Notwithstanding these criticisms, the paper argues that ethics theory can play an important role in business ethics teaching which conforms to a speculative agenda. A speculative agenda is described, and a contribution that ethics theory can make to it is explained. This constitutes a form of immanent critique, which enables putative statements of business ethicality to be subjected to critique against the cultural values upon which their credibility rests. Ethics theory is offered as a mediating resource to facilitate such critique. Some criteria that the presentation of ethics theory needs to meet if it is to fulfill this speculative agenda are also outlined.     

FOCUS: Business Ethics in Europe Current Developments in German Business Ethics

Germany is at the leading edge of European reflection on the nature and requirements of ethical business. Two scholars in the field provide a survey of the main lines of discussion in the current German business ethics scene, and discuss three important books which are helping set the scene for further developments. Prof. Dr. Horst Steinmann holds the Chair for Business Administration and Management at the University of Erlangen-Nürnberg, Lange Gasse 20, D-90403 Nürnberg, and Dipl.-Hdl. Brigitte Kustermann is research assistant to the same chair.     

Business Ethics in Japan

Business ethics in Japan has developed in five stages. Especially in the last stage (in the 1990s), there have appeared two clear-cut trends in business ethics activities: positive and passive. For the rise of business ethics, the passive trend is much more important. Once entered the 1990s, an increasing number of business scandals have been revealed. Because of this, the Japanese business community cannot but help take business ethics much more seriously than it ever has.Not only business practitioners but also business ethicists have inaugurated a variety of ethics-related studies and activities. This article mainly puts focus on the studies, which have been done in the 1990s. At the end of the article, ethical challenges, which the Japanese business and academia meet presently, are described.     

Business Ethics in China

First I briefly review the emergence and development of business ethics, following three stages (1978–1984; 1984–1994; 1994 to the present) and driven by four factors: the inheritance of Chinese traditional ethics; the influence of Marxist philosophy and ethics; the reflections on the economic reform; and the influence of business ethics from abroad. Then, from a practical and a theoretical perspective, I discuss the main challenges for business ethics in China: issues of the economic system, of corporate ethics, and of management. After commenting on the role of business ethics for the social development in China, I offer some reflections about what China can contribute to, and learn from, other peoples.     

Business Ethics in India

Unethical business in India became a recognized phenomenon during the second World War. Academic/journalistic/legal concern with ethics has become visible only during the nineties. Corruption-of-the-poor and corruption-of-the-rich need to be distinguished – especially in the context of globalization. The danger of attributing unethical practices to system failure is recognized. It is also important to bring to bear on intellectual property rights the more fundamental principle of natural property rights. Consciousness ethics will be more crucial than just intellectual ethics.     

Business Ethics in Spain

This article is an introduction to the selection of papers on "Business Ethics in Spain" included in this monographic issue of the Journal of Business Ethics. Specifically, this article is a survey of the development of the social, political, cultural and economic background of business in Spain since 1940, in order to show how the ethical values, attitudes and problems of the Spanish managers changed in these years. First, the global evolution of this background is explained, and then several relevant problems are discussed, namely those of the attitudes of business towards the State and the law (with an aside on the attitudes of society towards profit and wealth), corruption, and the grey economy, taxes, and irregular labour. The article concludes with a survey of the scientific developments of business ethics in Spain.     

Business Ethics in Belgium

Business Ethics has really taken off in Belgium. The author is Professor at the Catholic University of Leuven, and an Associate Editor.     

Business Ethics in Russia

Most of the features of modern Russian business are transient, determined by the transitional character of the Russian economy and drastic changes in the social structure, ideology, and consciousness of Russian society in general. There are three main normative experiences in the traditions of Russian business: a) the experience of pre-Revolutionary business, specifically developed and practiced by the merchants of the old-believers extraction; b) the experience of socialist economy, which was more or less oriented to the public good and presupposed selfless aspirations by the economic agents; c) the experience of legally and administratively constrained private business and illegal shadow business, which expected businessmen to be vigorous, industrious and enterprising. The process of privatization was developed under the aegis of state, specifically the state bureaucracy. The influence of changes in the social-economic system has been ambivalent for social morals. However, the reforms could stimulate their improvement. The recent development in the cultural environment of business testify to the emerging space of civilized business, which manifests that it is practically useful for businessmen to be ethical.