Direct and Multiplicative Effects of Ethical Dispositions and Ethical Climates on Personal Justice Norms: A Virtue Ethics Perspective

From virtue ethics and interactionist perspectives, we hypothesized that personal justice norms (distributive and procedural justice norms) were shaped directly and multiplicatively by ethical dispositions (equity sensitivity and need for structure) and ethical climates (egoistic, benevolent, and principle climates). We collected multisource data from 123 companies in Hong Kong, with personal factors assessed by participants’ self-reports and contextual factors by aggregations of their peers. In general, LISREL analyses with latent product variables supported the direct and multiplicative relationships. Our findings could lay the groundwork for justice research from a morality perspective in future.     

Organizational Leadership, Ethics and the Challenges of Marketing Fair and Ethical Trade

This article critically evaluates current developments in marketing fair trade labelled products and “no sweat” manufactured goods, and argues that both the fair trade and ethical trade movements increasingly rely on strategies for bottom-up change, converting consumers “one cup at a time”. This individualistic approach, which we call “shopping for a better world”, must, we argue, be augmented by more collectivist approaches to affect transformative change. Specifically, we look at the concept of mission-driven organizations pursuing leadership roles in developing affinity relationships to promote fair and ethical trade and developing ethical spaces. Increasingly, a range of organizations are restructuring their operations, so that their mission is reflected in ethical practices throughout their operations, including product sourcing and product sales. First, ethical purchasing policies operated by non-profits and public agencies represent markets through which fair/ethical products reach end consumers. The efforts discussed to create ethical spaces through direct democracy and electoral mandate build on a broad-based affinity with the principles of fair and ethical trade. Second, we explore the potential for “mission-driven” non-profit organizations, such as zoos and aquaria for merging their mission of conservation education with their marketing activities through the operation of their shops and cafés. Interesting initiatives to link the conservation message to food choices is being undertaken by a number of zoos and aquaria, while there is scope for increased linkages in the giftware sold in their shops.     

Ethical Beliefs and Management Behaviour: A Cross-Cultural Comparison

A cross-cultural empirical study is reported in this article which looks at ethical beliefs and behaviours among French and German managers, and compares this with previous studies of U.S. and Israeli managers using a similar questionnaire. Comparisons are made between what managers say they believe, and what they do, between managers and their peers' attitudes and behaviours, and between perceived top management attitudes and the existence of company policy. In the latter, significant differences are found by national ownership of the company rather than the country in which it is situated. Significant differences are found, for both individual managers by nationality, and for companies by nationality of parents, in the area of organizational loyalty. The attitude towards accepting gifts and favours in exchange for preferential treatment, as a measure of societal values, is also found to show significant differences between national groups. However, no significant differences are found for measures for group loyalty, conflict between organizational and group loyalty and for conflicts between self and group/organization. The findings have implications for cross-border management decision strategies regarding such issues as receiving and giving of gifts, and the management of relations between local employees and international organizations which may be affected by differences in attitude to corporate loyalty.     

Recognizing Business Ethics: Practical and Ethical Challenges in Awarding Prizes for Good Corporate Behaviour

There seems to be a proliferation of prizes and rankings for ethical business over the past decade. Our principal aims in this article are twofold: to initiate an academic discussion of the epistemic and normative stakes in business-ethics competitions; and to help organizers of such competitions to think through some of these issues and the design options for dealing with them. We have been able to find no substantive literature – academic or otherwise – that addresses either of these two broad topics and audiences. Our modest aim, therefore, is to suggest an agenda of issues, and to begin to explore and analyse some of the possible arguments for and against various philosophical or practical solutions. Part I explores the challenges facing a prize-organizing committee, including problems derived from what Rawls calls the “fact of pluralism” in democratic societies (reasonable people will always disagree over some basic values, including those relevant to evaluating business practices), and epistemic issues about how we can justify qualitative judgments on the basis of incomplete quantitative data. We also try to identify risks and opportunity costs for ethics-prize granters. In Part II we spell out (a) a range of design options and (b) some advice about how any particular prize-awarding committee might select among these options to best achieve its goals (which typically involve highlighting and publicizing best practices for ethical business).     

Business Ethics Research As Dialogue: A European Perspective

Britain's Economic and Social Research Council offered criteria for excellence in research which appear to express a shared basic idea of research–as–dialogue. This approach does not appear to be met very well by business ethics research in the USA or the UK, but it was seen to be impressively present in some of the German contributions to the European Business Ethics Network conference held in Frankfurt last year. Dr Collier analyses the conditions which may underlie this difference of approach and considers the contribution of modern "discourse ethics to the process of dialogue, concluding that dialogue "is an essential characteristic of research excellence", and that without it we therefore fail to meet both our own standards and the needs of the business community". Dr Collier is Lecturer in Management Studies the Judge Institute of Management Studies at the University of Cambridge, and Fellow of Lucy Cavendish College.     

Capitalism and its Regulation: A Dialogue on Business and Ethics

This dialogue engages with the ethics of politics of capitalism, and enacts a debate between two participants who have divergent views on these matters. Beginning with a discussion concerning definitions of capitalism, it moves on to cover issues concerning our different understandings of the costs and benefits of global capitalist systems. This then leads into a debate about the nature and purposes of regulation, in terms of whether regulation is intended to make competition work better for consumers, or to prevent negative outcomes for citizens. The conclusion speculates about the usefulness or otherwise of this Socratic method of dialogue.Martin Parker is Professor of Organisation and Culture at the University of Leicester Management Centre, having previously held positions at Staffordshire and Keele Universities. His research and writing is concerned with the ethics, politics and culture of organisation. Together with Campbell Jones and Rene ten Bos, he has just finished a textbook titled For Business Ethics which will be published by Routledge in 2005.Gordon Pearson is Honorary Senior Research Fellow in the Department of Management, Keele University, having previously spent some fifteen years in academia teaching and writing mainly on strategy. Prior to that he spent thirty years in industrial general and strategic management.     

Ethical Entrepreneurship and Fair Trade

Due to several recent scandals, Business Ethics is now firmly embraced. Whereas in the 1980s and early 1990s there were serious doubts expressed about combining ethics and business, the link now seems to have become self-evident. Fundamental questions about the tensions between business and ethics however continue to receive little attention. In this paper, based upon a debate concerning the Fair Trade company, the strains between business and ethics are analyzed. The article shows how several great thinkers have already considered this tension. Three ways to conceptualize the tension between business and ethics have been distinguished, and these are outlined in the paper. In one approach, ethical entrepreneurship, value tensions are perceived as a source for entrepreneurship. However, this approach presupposes pluralistic ethics. Thinking only in terms of black and white is seen as blocking the ability to adequately handle the tension between business and ethics. Opting for ‘‘ethical entrepreneurship’’, as by Fair Trade, has fundamental and important consequences for the company’s communication policy.     

Ethical Behaviour and Securities Trading

"Economic man does not ask himself ethical questions". Yet securities trading inevitably raises many ethical issues, and ethical behaviour may be restricting and costly. Drawing on his economics background and his executive experience in the insurance and pension investment industry, as well as supervisory positions on the European Option Exchange, Dr Goslings analyses the securities markets and their structure, and explores their moral strengths and weaknesses in The Netherlands and elsewhere, before offering some practical recommendations. He has held part time professorships at Erasmus University and Maastricht University teaching finance and is currently preparing a new course on risk and insurance. He is also active as an independent consultant at Wentholtweg 26, 7214 EG Epse, The Netherlands.     

Trust and Dialogue: Theoretical Approaches to Ethics Auditing

The aim of this paper is to put forward an ethical framework for the conceptualization and development of ethics audits, here understood as a catalyst for company dialogue and in general, for management of ethics in the company. Ethics auditing is understood as the opportunity and agreement to devise a system to inform on ethical corporate behavior. This system essentially aims to increase the transparency and credibility of the companys commitment to ethics. At the same time, the process of elaborating this system allows us to introduce the moral dimension into company actions and decisions, thereby completing a key dimension of the production, maintenance and development of trust capital. To this end, the following four steps are taken. First, we analyze the relation between ethics auditing and trust as a basic moral resource in the dialogue between the company and its various stakeholders. Second, we examine the social balance sheet as a precursor to ethics auditing and focus on what prevents it from going further. Third, we attempt to reconstruct the basic moral assumptions underlying the companys social responsibility from the discourse ethics approach. Finally, we present a methodological framework from which to carry out our proposal, which embraces two basic theoretical perspectives stakeholder theory and the values derived from discourse ethics as a normative framework.     

Ethical Outcomes and Business Ethics: Toward Improving Business Ethics Education

Unethical conduct has reached crisis proportions in business (Walker et al., Wall Str J East Edn, 258(37):A1–A10, 2011) and on today’s college campuses (Burke et al., CPA J, 77(5):58–65, 2007). Despite the evidence that suggests that more than half of business students admit to dishonest practices (McCabe et al. 2006), only about 5 % of business school deans surveyed believe that dishonesty is a problem at their schools (Brown et al., Coll Stud J A, 44(2):299–308, 2010). In addition, the AACSB which establishes standards for accredited business schools has resisted the urging of deans and business experts to require business schools to teach an ethics class, and fewer than one-third of businesses schools now teach a business ethics course at the graduate or undergraduate levels (Swanson and Fisher, Advancing Business Ethics Education, 2008). In this paper we briefly introduce the status of business ethics education and report the results of a survey of business students, deans of the top business schools, and business ethics subject matter experts about ten ethical outcomes. We then offer five specific recommendations to encourage business ethics faculty and decision makers to improve the teaching of business ethics.     

The Ethics of Meaningful Work: Types and Magnitude of Job-Related Harm and the Ethical Decision-Making Process

This research on the ethics of meaningful work examined how types of job-related harm (physical, economic, emotional, and cognitive) and their magnitude of consequences (MOC, low, high) influenced components of ethical decision-making (moral recognition, moral evaluations, and moral intentions). The research also investigated the moderating effects of individual differences (experience with carpal tunnel syndrome, experience with layoffs, ability to read others’ emotions, and intrinsic motivation orientation [IMO]) on the relation between the MOC and the ethical decision-making elements for each type of harm. Using a sample of 185 Chinese professionals, a between-subjects, fully crossed experimental scenario design revealed that physical and economic job-related harm were recognized as moral issues to a greater extent than cognitive or emotional harm. Second, physical job-related harm stimulated a higher level of moral evaluations than economic and cognitive harm. Third, individuals intended to act ethically when MOC was high versus low. Finally, experience with layoffs and IMO helped explain the relations between MOC and moral evaluations for economic and cognitive job-related harm, respectively. Implications for research and management are discussed.     

Measuring Ethical Ideology in Business Ethics: A Critical Analysis of the Ethics Position Questionnaire

Individual differences in ethical ideology are believed to play a key role in ethical decision making. Forsyths (1980) Ethics Position Questionnaire (EPQ) is designed to measure ethical ideology along two dimensions, relativism and idealism. This study extends the work of Forsyth by examining the construct validity of the EPQ. Confirmatory factor analyses conducted with independent samples indicated three factors – idealism, relativism, and veracity – account for the relationships among EPQ items. In order to provide further evidence of the instruments nomological and convergent validity, correlations among the EPQ subscales, dogmatism, empathy, and individual differences in the use of moral rationales were examined. The relationship between EPQ measures of idealism and moral judgments demonstrated modest predictive validity, but the appreciably weaker influence of relativism and the emergence of a veracity factor raise questions about the utility of the EPQ typology.     

FOCUS: Ethical Problems in Ethics Research

Current research in business ethics gives serious cause for concern because it may be designed more to advance academic careers than to encourage ethical business. The author is completing his doctoral thesis in business ethics at the Management School, Imperial College, London.     

Integrating Business and Ethical Values Through Practitioner Dialogue

In practice, the relationship between business and ethics is not well-settled. In the past, organisations have developed an interest in setting value charts but this has been approached from a purely managerial perspective following the momentum and interest aroused by research on organisational cultures. Although interest in managing organisational cultures has slowly died down, for both theoretical and practical reasons we argue that there are feasible ways to explore values as part of an organisational culture. Indeed it is our claim that it is feasible and productive to discuss values within organisations. However, rather than developing sophisticated theoretical frameworks, more efforts should be put into thinking about the conditions under which participants can enter into productive dialogue. It is our claim that if processes are carefully examined people within organisations can make better sense of their work and discover their own perspective to account for what they actually do and to project themselves into what they think they should be doing. Thus, values identified within the organisation can eventually reach a point where they become an expression of a shared commitment. The experience we describe aims to illustrate only one example of a concrete application of this approach.     

Work Ethic and Ethical Work: Distortions in the American Dream

Economic progress in the United States has been attributed to the successful combination of two social structures – capitalism as an economic system and democracy as a political system. At the heart of this interaction is a particular work ethic in which hard work is considered the path to both immediate and future rewards. This article examines the evolution of work ethic in the United States, as well as the returns experienced through various adaptations in the country’s history. From this grounding, the information is structured into a proposal that key messages contained in the current, accepted work ethic are subject to distortions that may contribute to unethical decision making. These distortions result from two potentials: (1) efforts to reconcile the work ethic with contradictory messages and (2) exaggerations of the work ethic that become dysfunctional. The intent is to provide a framework that may explain to organizational leaders how people with the same basic work ethic can behave differently in terms of ethical work. Along with this understanding comes the potential to offset possible distortions and to encourage more ethical behavior.