Common Thread: The Impact of Mission on Ethical Business Culture. A Case Study

What is the impact of mission on ethical business culture? This question was analyzed through a qualitative case study of a large nonprofit organization in the human services industry with a solid history of ethical business practices and consistent use of a values-based decision-making model. This research explored ethical decision making, ethical business culture, and congruence between enacted and espoused institutional values. Institutional values were identified, and the following pair of research questions was examined: To what extent were incongruent values found between espoused and enacted values? To what extent did incongruent values impact the ethical business culture? Incongruent enacted values were present in the culture, but negative impact was diminished by a larger number of congruent enacted values. Additional findings revealed that an intense commitment to the mission by all employees was the common thread that wound throughout the organization’s ethical business culture and essentially abrogated the undesirable effects of incongruent and negative values.     

Blending practice worlds: Impact assessment as a transdisciplinary practice

Organisations with explicit social missions such as social enterprises, impact investors, nonprofits, and foundations are under increasing pressure to illustrate their impact on the social problems they claim to be addressing. These trends have resulted in an increasing sophistication of attempts to measure and report social impact across sectors. Despite the emerging literature on impact assessment, there is little research on how the growing emphasis on, and drive for, impact assessment is experienced in everyday organisational activities. This paper draws on practice theory to understand the purposes of impact assessment and how it influences, and is enacted in, everyday organisational activities. A multiple case design studies the purpose of impact assessment through qualitative interviews with over 90 practitioners within the Australian and United Kingdom impact investment ecosystems. The findings suggest that impact assessment should be understood as a transdisciplinary practice evolving from, and blending together with, multiple practice worlds such as strategy, accounting, marketing, and organisational learning. The main contributions of the paper are the development of the concept of impact assessment as a transdisciplinary practice and an empirical understanding of how impact assessment links to, and blends with, diverse practice worlds.     

An examination of the relationship between ethical behavior,espoused ethical values and financial performance in the U.S. defense industry: 1988–1992

This paper tests the ethics-is-good-for-profits as well as the ethics-and-profits-are-joint-outcomes-of-good-management hypotheses in the context of the U.S. defense industry in the 1988–1992 period. Both ethical behaviors (defined and measured as the number and dollar cost of convictions for violations of civil and criminal law as well as reimbursement obligations arising under environmental statutes) and espoused ethical values (in the form of membership in the Defense Industry Initiative and average level of PAC contributions) are compared with measures of profitability for the defense-oriented business segments of sixty-two major U.S. defense contractors. From 1988 to 1992, the U.S. Defense Department gave these contractors an average of 65% of all prime contract awards over $25,000 to business firms for work in the U.S.We found statistically significant, positive correlations between (1) our two measures of espoused ethical values and (2) both measures of espoused ethical values and violative ethical acts. In other words, those contractors with worse ethics records were more likely to be members of the Defense Industry Initiative and give larger PAC contributions. However, we were unable to reject the null hypothesis of no correlation between either ethical behavior or espoused ethical values and profits. The public policy implications of these findings are discussed.Alan P. Mayer-Sommer is Associate Professor at Georgetown University's School of Business. His research has focused on the area of business-government relations.Alan Roshwalb serves as a statistician for a marketing research firm and has conducted research in statistical methods and issues in business.     

Not walking the talk? How host country cultural orientations may buffer the damage of corporate values’ misalignment in multinational corporations

We argue that a perceived misalignment between a multinational corporation’s espoused values and how those values are lived in the subsidiary has detrimental effects on group outcomes, specifically groups’ affective organizational commitment. Using data from 1760 work groups in the foreign subsidiaries of a large European MNC, we find support to our hypotheses and show that when there is a misalignment between a particular espoused value and the lived value, and the value at stake is central to the value system of the country in which the subsidiary is located, the detrimental effect on the group’s outcomes is more pronounced.     

The commons: A model for understanding collective action and entrepreneurship in communities

The creation of commons—resources that are shared, accessible, and collectively owned and managed by communities—is increasingly being adopted by social entrepreneurs as a way of contributing to community development and putting value into economic activities. Yet, little research is evident related to the entrepreneurial processes involved in the creation and commercialization of these shared resources. Drawing on the Institutional Analysis and Development framework developed by Ostrom (2005), I explain how commons are entrepreneurially created. Based on a comparative study of five community banks in Brazil, I derive two ideological principles of collective entrepreneurship that help sustain commercialization of commons without commodification, namely ‘self-organization’ and ‘right to access’. I elucidate how these principles are enacted across venture levels through downward and upward mechanisms of social control facilitated by entrepreneurs who enhance collective action. This article contributes to the entrepreneurship theory of commons by explaining how commons are entrepreneurially created and by adding the collective entrepreneurship principles and mechanisms that commons of different types need in order to achieve and sustain wealth-creation options without incurring the downsides of commodification.     

Institutions,paradoxes, and compensation logics: evidence from corporate values of the largest Chinese and US companies

This study introduces the concept of Institutional Compensation Logics, which suggests that organizations can dynamically balance coexisting local and global logics, through a process known as the ‘paradox of embedded action’. Through this process, managers can gradually adapt institutional logics to the global environment, even if their actions, intentions, and rationality are embedded in the very logics that they wish to change. We propose that one important way they do that is by designing corporate values that challenge the organization’s local values. To test this approach, we use the mission-based corporate values’ framework and analyse the corporate values of a sample from the largest Fortune companies in the two most influential world economies: China (PRC) and the United States (US). Our study also helps advance the understanding of how espoused values are related to cultural values, often in paradoxical ways, thus supporting a negative relationship between espoused organizational and cultural values.     

The impact of espoused national cultural values on innovative behaviour: an empirical study in the Chinese IT-enabled global service industry

In this article, we explore the different roles that knowledge sharing and exploitative learning play in employees’ innovative behaviour, and investigate the different moderating effects of employees’ espoused national cultural values on the relationship between exploitative learning and innovative behaviour in the Chinese IT-enabled global service firms with different ownerships. We propose a theoretical model to characterize these antecedents of innovative behaviour. A structured research survey was conducted and data were collected from a sample of 484 full-time employees in 3 IT-enabled global service firms in the PRC. Results indicate that knowledge sharing is positively associated with innovative behaviour in multinational corporations and private IT-enabled global service; espoused power distance has a significant positive moderating effect on exploitative learning–innovative behaviour relationship in state-owned and private firms; espoused collectivism has a significant moderating effect only in state-owned firms in China. Last, we explore the implications of our findings for theory and practice of innovation.     

Building subsidiary local responsiveness: (When) does the directionality of intrafirm knowledge transfers matter?

The present study focuses on effects of subsidiary internal knowledge-based activities—knowledge transfer and reverse knowledge transfer—and absorptive capacity on local responsiveness. We also examine whether absorptive capacity, shared values, and psychological safety, representing constituents of the motivation-opportunity-ability model of behavior, moderate relationships of subsidiary internal knowledge-based activities with responsiveness. Based on a sample of 173 Chinese subsidiaries, the results suggest knowledge transfer and absorptive capacity facilitate local responsiveness. Shared values moderates positively and absorptive capacity negatively, the relationship between knowledge transfer and responsiveness. Psychological safety strengthens the link between reverse knowledge transfer and local responsiveness.     

Defining the ethical standards of the high-technology industry

At least five sets of ethical standards influence business people's decisions: general cultural, company, personal, situational, and industry standards. Each has an official or espoused form encoded in written documents such as policy statements and codes of ethics and an unofficial form that develops as people use the espoused standards. (We call these unofficial standards values in action.) To determine whether the high-technology industry deserves its reputation for moral laxness, a pilot questionnaire was designed. It asked employees to rate the acceptability in the workplace of ethical behaviors relating to safety, third parties, and cheating the company. The findings show that employees in high-and low-technology industries uphold espoused values of safety. Relations with third parties are influenced by the existence of company codes of ethics, especially in small companies. Actions involving cheating the company need to be investigated further.Nancie Fimbel is an Associate Professor of Business Ethics and Business Communication at the School of Business, San Jose State University. Jerome S. Burstein is the author of Computers and Information Systems (2nd ed.), a popular textbook in computer science. He is an Associate Professor of Information Resource Management at the School of Business, San Jose State University.     

Reframing replicative research in advertising

Given the espoused importance of replication by researchers, there is still surprisingly little evidence of its practice in advertising research. In this paper, we apply Berthon et al.’s (2002) replicative research framework to advertising. A conceptualisation of the relationship between replication, extension and generation in advertising research is offered. The framework delineates eight possible research strategies. These are discussed in turn and illustrated with examples from the advertising literature. The paper concludes with a discussion of the factors that influence the selection of a research strategy.     

Using social and consumer values to predict market‐place behaviour: questions of congruency

Social values and consumption values, although intricately linked, are not exactly the same. Nonetheless, marketers contend that the central premise of social value monitoring is that, if one understands people’s values, one can better predict how they will behave in the market‐place. This paper challenges this assumption because policy analysts and industries are relying on both the consumer and social value profiles at a time when society and the market‐place are undergoing a profound transition. Using Canada as a case study, the general societal values of consumers identified by pollsters are discussed relative to nine consumer values espoused by marketers. This comparative analysis suggests that many of Canadians’ alleged consumer values seem to be in direct conflict with their espoused social values. This conclusion implies that the validity of using social values as a proxy variable or predictor for consumer values needs to be examined by researchers and policy analysts. Also, future dialogue needs to occur about adhering to the convention of monitoring social and consumer values using public opinion polls while not marrying this process with public judgement dialogues. Finally, other countries are urged to examine the situation in their market‐place so as to facilitate cross‐cultural comparative analysis of consumer market‐place values.     

An Empirical Investigation of the Formation and Implications of the Organizational Buyer's Strategic and Tactical Roles

Although research in organizational buying behavior has alluded to the importance of the purchasing agent's enacted role in the development and execution of an organization's procurement related activities, there exists little corresponding empirical evidence. This paper examined the buyer's self-perceived role, factors that affect its formation, and the impact that a buyer's role definition has on various aspects of buying behavior. Cluster analysis is employed to differentiate among purchasing agents based on their perceived participation in various stages of the purchasing decision process. Different patterns of behavior emerge from the five empirically derived clusters. These differences are presented and the managerial implications are discussed.     

Regulatory Modes and Entrepreneurship: The Mediational Role of Alertness in Small Business Success

Previous studies suggest that entrepreneurs play a key role in the success of their ventures. But relatively little is currently known about how they produce such effects. The present research provides data suggesting that two modes of entrepeneurs’ self‐regulation—locomotion and assessment—enhance a firm's success through their effects on the components of alertness. This mediational model was tested and supported with data from 120 entrepreneurs. Locomotion was positively related to the scanning and search component, while assessment was positively related to the association and evaluation components. These findings are discussed in terms of the role of founders’ self‐regulation in the performance of their companies.     

Smartphones and the reconfiguration of retailscapes: Stores,shopping, and digitalization

The aim of this paper is to examine and conceptualize how the integration of smartphones is reconfiguring the retailscapes of stores and the implications that this has for retailers and consumers. Departing from an understanding of retailscapes as socio-material assemblages and drawing on an ethnographic study of mobile shopping, this paper shows how the integration of smartphones into the activities of in-store shopping is reconfiguring how store space is enacted. The integration of this digital device reorganizes the activities of shopping, and new informationscapes, socialscapes, and experiencescapes unfold as a result. In the process, stores are reconfigured, agencies change, and the relationship between consumers and retailers is remade.     

United States concessions in the Kennedy Round and short-run labour adjustment costs: Further evidence

The intent of this article is to add further empirical evidence to the frequently espoused hypothesis that the decision-making process used by U.S. tariff negotiators is heavily weighted by their assessment of the likely labor displacement effects that trade liberalization may have on domestic interests. Using data on 477 workers displaced from six different industries the results demonstrate that industries with high labor adjustment costs received greater exceptions from the across-the-board tariff cut in the Kennedy Round of the Multilateral Trade Negotiations than industries with lower adjustment costs.     

Advertising and Children

Abstract

This article reviews the debate regarding the issue of growing obesity in society in terms of issues and possible policy options. The issue is most focused on children though having obvious ramifications for adults in many economies around the world. Policy solutions such as advertising bans or taxes that have been proposed in several countries seem to be based on insufficient evidence—i.e., there is no empirical evidence to substantiate the claimed causal effect between marketing communication practices directed at children and nutrition. These solutions, if enacted in policy, could be both inequitable and ineffective. While the study is couched and framed from a New Zealand context, nonetheless it serves to illuminate issues and policies of wider relevance.     

2004 Trade Policy Review – The United States

Many of the findings of the seventh Trade Policy Review of the United States are similar to those reached in earlier reviews: the US is unanimously acknowledged as having an open and transparent system; the US economy has remained amongst the world's most competitive, and has continued to support global growth by keeping its import market largely open. This review finds, however, that the US has developed a disturbing pattern of non‐compliance with WTO rules. During the period of review the United States enacted policies, most notably the infamous Byrd Amendment and the 2001–02 steel safeguard action, that were found to be clear violations of its WTO obligations. Despite these and other such findings, the United States has obstinately refused to bring its domestic statutes in line with WTO rules. In addition, in recent years the United States’ aggressive pursuit of regional and bilateral initiatives has led many Members to question whether the United States is committed to the multilateral approach espoused by the WTO. Overall, despite the US's many virtues, Member countries expressed concern that the US's stated leadership of and commitment to the WTO is not matched by its actions.     

‘Out With the Old’—An Evaluation of the Relevance of Traditional Chinese Cultural Beliefs in Today's China

This study evaluated the views of a range of 20- to 35-year-old Chinese respondents regarding the applicability and relevance—in today's modern China—of various traditional Chinese values such as trust, respect and guanxi, in regard to personal, social, business and consumer behavior contexts. It found that respondents felt that traditional values were still important at home and in social contexts but had perhaps become replaced in business by more Westernized and sharp-edged values. However, they also feel that it is still sometimes possible to form deeper and more traditionally conceptualized business networks and relationships and it is here that people still preferred to conduct more complex—and serious (and indeed often more lucrative)—business activities. In regard to the use of traditional values in Chinese consumer behavior, the situation is once again quite complex. When it comes to initially thinking about a consumer behavior issue, respondents feel that traditional values played no real part—but when it comes to actually deciding on a particular product or service to purchase, particularly in regard to a product (or service) which has a high level of brand equity/image, the situation is very different. Now respondents tend to make judgments about the product or service in a most traditional manner and way, thinking about issues of face, respect, trust and even guanxi, where it is almost possible for them to feel that they have formed a kind of relationship with some brands that will, in turn, guarantee them a certain level of face, image, status and respect.     

Is Current Way of Promoting Sustainability,Sustainable?

Consumer behavior regarding sustainable products has been a complex concept. There is a discrepancy between consumer’s espoused concern towards environment and their purchase of environment friendly products. Past literature suggests greenwashing being a possible reason for this discrepancy. With greenwashing being caused by mismatch between communication and perceived performance, this article focuses on assessment of simultaneous impact of both communication and performance elements on brand attitude. A quantitative study was undertaken to test the hypotheses. This was followed by a qualitative study to understand alternative explanation of hypotheses that was not accepted. The research revealed that a consumer’s attitude toward a green brand is impacted both by his or her general skepticism towards green ads and the credibility that she assigns to the firm’s green message. Perceived value of product also had a positive impact on brand attitude. Findings advance academic literature and support managerial community by highlighting factors for building a positive green brand attitude and resultantly avoiding the trap of being equated with greenwashing.