Wise Up: Creating Organizational Wisdom Through an Ethic of <Emphasis Type="Italic">Kaitiakitanga</Emphasis>

Organizations are searching for innovative business approaches that deliver profits and create shared value for all stakeholders. We show what can be learned from the relational wisdom approach of Indigenous Māori and reframe the prevailing economic argument that has seen companies profit and prosper at the expense of communities and ecologies. We develop an ethic of kaitiakitanga model premised on Māori values which holds the potential to enrich and further humanize our understanding of business. The Māori economy is a globally connected, prosperous, and profitable sector of the New Zealand economy. By drawing on Māori values, we present a wisdom position through an ethic of kaitiakitanga or stewardship to emphasize and illustrate the interconnectedness of life in a woven universe. Through practicing kaitiakitanga, organizations can build businesses where wisdom is consciously created through reciprocal relationships. In this worldview of business, humans are stewards endowed with a mandate to use the agency of their mana (spiritual power, authority, and sovereignty) to create mauri ora (conscious well-being) for humans and ecosystems—and this commitment extends to organizations.     

Critical Reflective Organizations: An Empirical Observation of Global Active Citizenship and Green Politics

Relationships between the environmental and economic dimensions of sustainability have been solidly specified, but relatively little attention has been given to the social sphere. The current study attempts to fill this gap by integrating corporate environmentalism more fully with concepts of corporate sustainability. This investigation draws specifically from neo-Habermasian critical environmental theory research and brings three concepts together for closer empirical examination: the public sphere, the communicative rationality, and discursive design with the goal of capturing whether critical and reflective organizational systems (CROS) among the selected sample of business participants are in fact developing. Using content analysis on corporate social responsibility (CSR) reports, the study reveals that some business organizations appear to be on the brink of developing a type of learning environment consistent with CROS thinking. The empirical findings also suggest that there is a transformative effect on citizenship that can result from the teaching and learning that is facilitated by voluntary CSR initiatives.     

<Emphasis Type="Italic">Guanxi</Emphasis> and Business Ethics in Confucian Society Today: An Empirical Case Study in Taiwan

Guanxi, or social networks common in Confucian cultures, has long been recognized as one of the major factors for success when doing business in China. However, insider networks in business are certainly not confined to Asian cultures, nor is the attendant possibility for corruption. This study obtained original data to investigate current Taiwanese perceptions of (1) how guanxi is established and cultivated; (2) how guanxi actually is practiced now and people’s acceptance of it; and (3) the effects of guanxi on business operations, employment/promotion, and social justice and fairness. The researchers also hope to (4) verify some arguments made by pioneering researchers. The authors speculate on how these attitudes may affect behavior in business transactions in hopes of making readers more aware of differing cultural values that may create unexpected ethical dilemmas. They suggest that professional ethical codes should provide guidance on the practice of guanxi in a Confucian society and that special emphasis or training in interpreting those codes may be required.     

Implications of Caritas in Veritate for Marketing and Business Ethics

In an effort to assess the latest thinking in the Roman Catholic Church on economic matters, we examine the newest encyclical by Pope Benedict XVI, Caritas in Veritate (Charity in Truth) for guidance concerning marketing and business strategy. Core ethical values, consistent with historical Catholic Social Teachings (CST), are retained. However, some important nuances are added to previous treatments, and, reflecting the mind of the current Pontiff, certain points of emphasis are shifted to account for recent global developments. Key areas of consistency and differences (as we perceive them) are spelled out along with some brief commentary on the evolution of the CST position on matters of importance to business decision makers. We close our analysis with a brief discussion of how the lessons of the encyclical can be applied to selected marketing problems embedded with ethical issues, including some criteria for evaluating marketing programs. Finally, we note some editorial commentary published in the wake of the letter’s release along with our own summation.     

On the relationship of hope and gratitude to corporate social responsibility

A longitudinal study of 308 white-collar U.S. employees revealed that feelings of hope and gratitude increase concern for corporate social responsibility (CSR). In particular, employees with stronger hope and gratitude were found to have a greater sense of responsibility toward employee and societal issues; interestingly, employee hope and gratitude did not affect sense of responsibility toward economic and safety/quality issues. These findings offer an extension of research by Giacalone, Paul, and Jurkiewicz (2005, Journal of Business Ethics, 58, 295-305). Lynne M. Andersson, Ph.D. is Associate Professor of Human Resource Management at the Fox School of Business and Management, Temple University, in Philadelphia, Pennsylvania. Her teaching and scholarship focus on the dark side of business organizations; in particular, she’s been examining some social maladies that are arguably associated with late capitalism (cynicism and incivility) as well as the role of social activism in countering capitalist barriers to sustainability. Robert A. Giacalone, Ph.D. is Professor of Human Resource Management at the Fox School of Business and Management, Temple University, in Philadelphia, Pennsylvania. His research interests focus on the impact of workplace spirituality and changing values on business ethics. He is currently Co-editor of the Ethics in Practice book series. Carole L. Jurkiewicz, Ph.D. is the John W. Dupuy Endowed Professor and Women’s Hospital Distinguished Professor of Healthcare Management at Louisiana State University. She has published numerous research articles, books, and news articles on the topics of organizational ethics, leadership, and behavior.     

Asian Entrepreneurship in the International Business World

This review will focus on the role of Asian entrepreneurship in the international business world. As we are now considered to be in the Asian century, it is important to see how business grows, develops, and changes based on entrepreneurship. Asian entrepreneurship is unique to the geographic area but also encompasses people, business, and government that has a focus on Asia and is part of the global community. The continuing rapid evolution of Asian economies over the next decade will require a focus on entrepreneurship as it incorporates technology and innovation change. More countries in Asia need to focus on entrepreneurship as a way to achieve global best practice and to make breakthroughs in science and technology. A focus on the role of entrepreneurship in Asia in order to meet social and sustainable needs is a particular key concern of many governments and trade organizations around the world. This article will focus on the book Asian Entrepreneurship as a key reference for understanding and improving the social, environmental, and economic conditions for international business. © 2015 Wiley Periodicals, Inc.     

The Economic Significance of the Film Business: An Empirical Analysis of the Italian Market

Most studies indicate Hollywood's economic and financial leadership in the movie markets from the 1910s onward. There is a shortfall in the literature concerning the analysis of the efficacy of other minor film industries. This article examines the Italian film industry in the 1990s and beginning of the twenty‐first century. The research suggests that the Italian film industry is very risky and unpredictable, but while the extreme uncertainty surrounding the business is offset by the considerable economic success that Hollywood movies achieve at the box office, as indicated by previous literature contributions, a different business scenario emerges in Italy. The value of this article is first represented by the data used—provided by the Osservatorio of Cinecittà—which is unique and has not been published before. © 2016 Wiley Periodicals, Inc.     

Book essay on “The Dark Side of Transformational Leadership: A Critical Perspective”

The recent economic misfortune challenges the legitimacy of business leadership and those presented as heroic, charismatic and transformational visionaries. This book contributes to the lively debate about the role of transformational leadership in business and society. Tourish parallels transformational leadership with cults; and argues that the noticeable overlaps should caution against the potential of moving organizations further along the dysfunctional cult continuum than is desirable. In addition to dissent, Tourish promotes consideration of an alternative perspective based on institutionalized feedback into the organizational decision-making process. This book sets out to prepare students of leadership to critically analyze and reflect on leadership behavior and decisions, and to warn, against trusting too much in the judgment of others and not enough in our own.     

The Business of Business is the Human Person: Lessons from the Catholic Social Tradition

I describe an ethic for business administration based on the social tradition of the Catholic Church. I find that much current thinking about business falters for its conceit of truth. Abstractions such as the shareholder-value model contain truth – namely, that business is an economic enterprise to manage for the wealth of its owners. But, as in all abstractions, this truth comes at the expense of falsehood – namely, that persons are assets to deploy on behalf of owners. This last is “wrong” in both senses of the word – it is factually wrong in that persons are far more than business assets, they are supernatural beings, children of God; and it is morally wrong in that it is an injustice to treat them as the former when they are the latter. I draw upon the social tradition of the Catholic Church to recognize that the business of business is not business, but is instead the human person. Following Church teachings, I describe a person-centered ethic of business based upon eight social principles that both correct and enlarge the shareholder-centered ethic of much current business thinking. I discuss implications of this person-centered ethic for business administration.     

Individualist Economic Values and Self-Interest: The Problem in the Puritan Ethic

The Puritan ethic is conventionally interpreted as a set of individualistic values that encourage a degree of self-interest inimical to the good of organizations and society. A closer reading of original Puritan moralists reveals a different ethic. Puritan moralists simultaneously legitimated economic individualism while urging individuals to work for the common good. They contrasted self-interest and the common good, which they understood to be the sinful and moral ends, respectively, of economic individualism. This polarity can be found in all the details of their moral system, including the Puritan understanding of vocation, economic virtues, property rights, contracts, wealth and poverty, market prices and interest, and the proper economic role of government. The efforts of contemporary ethics to confront the problem of self-interest in business organizations and society would be enriched by a rediscovery of the Puritan understanding of self as a fundamental problem for any individualistic value system.     

<Emphasis Type="Italic">Guanxi</Emphasis> Management as Complex Adaptive Systems: a Case Study of Taiwanese ODI in China

In China, guanxi is the basis on which Chinese exchange a lifetime of favors, resources, and business leverage. Guanxi is considered a unique construct and a product of Confucian values and the contemporary political and socioeconomic system in Chinese society. With its cultural embeddings guanxi, as the social norm of conduct, functions as complex adaptive systems that expand and interconnect to become well-knit social networks; meanwhile the functions of well-fixing and self-reinforcement of the guanxi networks (chuens) are synergetically activated internally, externally, and interactively, which shows their extreme flexibility of adaptation. Taking as a case study an outside direct investment (ODI) Taiwanese firm in China, we address and conduct a survey to examine the effect of guanxi on management. Results of the research suggest that guanxi is not limited to interpersonal links; it is also the switch that activates social networks and that reconciles interpersonal and internetwork mismatches to influence management efficacy.     

Linking Linear/Nonlinear Thinking Style Balance and Managerial Ethical Decision-Making

This study presents the results of an empirical analysis of the relationship between managerial thinking style and ethical decision-making. Data from 200 managers across multiple organizations and industries demonstrated that managers predominantly adopt a utilitarian perspective when forming ethical intent across a series of business ethics vignettes. Consistent with expectations, managers utilizing a balanced linear/nonlinear thinking style demonstrated a greater overall willingness to provide ethical decisions across ethics vignettes compared to managers with a predominantly linear thinking style. However, results comparing the ethical decision-making of balanced thinking managers and nonlinear thinking managers were generally inconsistent across the ethics vignettes. Unexpectedly, managers utilizing a balanced linear/nonlinear thinking style were least likely to adopt an act utilitarian rationale for ethical decision-making across the vignettes, suggesting that balanced thinkers may be more likely to produce ethical decisions by considering a wider range of alternatives and ruling out those that are justified solely on the basis of their outcomes. Implications are discussed for future research and practice related to management education and development, and ethical decision-making theory. Kevin S. Groves is an Assistant Professor of Management and Director of the PepsiCo Leadership Center at California State University, Los Angles. His research interests include managerial thinking styles, ethical decision-making, executive leadership development and succession planning systems, charismatic leadership, and leader emotional intelligence. He teaches undergraduate, MBA, and doctoral-level classes across a range of management and leadership subjects, including management competency development, organizational behavior, business ethics, and organization development and change. Dr. Groves’ recent research has been published in such journals as the Journal of Management, Human Resource Development Quarterly, Journal of Management Development, Leadership and Organization Development Journal, Journal of Management Education, and the Academy of Management Learning & Education. He received a Ph.D. in Organizational Behaviour from Claremont Graduate University. Charles Vance teaches in the area of human resource management at Loyola Marymount University. He recently completed Senior Specialist and regular Fulbright appointments in Austria and China respectively. He is the author with Yongsun Paik of the new text, Managing a Global Workforce, (M.E. Sharpe, 2006). His nonlinear penchant is expressed quarterly in cartoons and other attempts at humor in the ending “Out of Whack” section of the Journal of Management Inquiry. Dr. Yongsun Paik is a professor of international business and management in the College of Business Administration, Loyola Marmount University. He holds a Ph. D. degree in International Business from University Washington. His primary research interests focus on international human resource management, global strategic alliances, and Asia Pacific business studies. He has recently published articles in such journals as Journal of World Business, Management International Review, Journal of International Managemtn, Business Horizons, International Journal of Human Resource Management, Journal of Management Inquiry, Human Resource Management Journal, among others.     

Evolution and Implementation: A Study of Values, Business Ethics and Corporate Social Responsibility

There is growing recognition that good ethics can have a positive economic impact on the performance of firms. Many statistics support the premise that ethics, values, integrity and responsibility are required in the modern workplace. For consumer groups and society at large, research has shown that good ethics is good business. This study defines and traces the emergence and evolution within the business literature of the concepts of values, business ethics and corporate social responsibility to illustrate the increased emphasis that has been placed on these issues over time. Two organizations that have successfully dealt with these issues were analyzed to identify the links among values, ethics, and corporate social responsibility as they are incorporated into the culture and management of a firm. This study identified the presence and implementation of values, business ethics, and CSR actions within the two organizations studied.     

Culture, freedom and economic growth: Do cultural values explain economic growth?

Economic freedom, the ability of a society to conduct business in an unfettered manner without government intrusion, is a key determinant of economic success, but national culture, too, is thought to play a significant role in shaping a nation's business environment. This article combines data from a bench-mark report, the Index of Economic Freedom, with two competing measures of national culture to posit a significant relationship between measures of culture, economic freedom, and economic growth. We discuss the implications of this relationship for business and for further academic research.     

Business Ethics and the Transitional Economy: A Tale of Two Modernities

The concept of the Transitional Economy denotes the problematic processes of change confronting nations wishing to achieve levels of economic development comparable with that of Western nations. Such an objective is problematic, as these nations may also be said to be in a state of transition. Globalization and E-commerce have necessitated a reconsideration of the nature of business activity and its implications for both society and the individual.Writers such as Gray (1998) warn against the "refashioning" of other nations in the image of the American free market. Business ethics can be seen as a symbolic expression of Beck's (1992) concern with the implications of Risk Society and the uncertainties arising from the realization that scientific, technological, and economic progress are not necessarily concomitant with social, cultural, and political progress. Locating business ethics within the theoretical context of Reflexive Modernity provides a means of evaluating the contribution that it can make to providing a critical forum for considering the ways in which business organisations are responding to concerns regarding business activity. (168)     

“Made in Italy”: The Italian Contribution to the Development of Business Marketing Discipline and Practices

Purpose: The authors analyze the main contributions of Italian literature in the business-to-business field as it relates to the characteristics of the Italian industrial manufacturing system. Even if not directly labeled as business-to-business marketing, Italian and other scholars who have studied Italian business experiences have largely faced the topic of business marketing management with innovative approaches and distinctive benchmark examples. In particular, the analysis of the Italian contribution to business marketing relies on the specific nature of the Italian industrial structure as recognized by the international literature. In this respect, the authors argue that three main areas of interest progressively arose from the peculiarities of the Italian industrial system: industrial districts, subcontractors/subcontracting relationships, and mid-sized manufacturing companies. These three research topics have been thoroughly investigated by both Italian and international scholars. They analyze the contributions that Italian researchers provided to advance business marketing discipline and practices.

Methodology/approach: The authors reviewed the literature of the main contributions developed in the three individual areas of research that have a strong focus on the Italian experience. The methodology was in three steps. First, the review planning process was guided by the three areas of research that were assumed to have a major contribution to business marketing discipline. Second, the SCOPUS database was used as a primary source for paper identification by using a keywords search method. Third, the dataset was refined by excluding non relevant contributions (not focused on business management and marketing or not specifically dealing with the three areas of interest) and validating/integrating the original dataset by using other complementary sources (e.g., Google Books, Google Scholar). Finally, a set of 268 products were taken into account in the analysis.

Findings: The results of the analysis suggest that the Italian contribution to the field of business marketing is valuable in light of the three chosen areas of research. These three empirical arenas—industrial districts, subcontractors, and mid-sized firms—contribute to providing a better understanding of business market structure and dynamics as well as the improvement of business marketing studies.

Originality/value: The article is an original and first attempt to elaborate and reflect on the contribution of the Italian business experience literature to the advances of business marketing discipline. The authors develop an original comprehensive review of “Made in Italy” business marketing and management research that has not been used in previous studies. The review will increase international knowledge of Italian practices and theoretical frameworks that can contribute to the reinforcement of the business-to-business marketing discipline.     

Corporate Legitimacy as Deliberation: A Communicative Framework

Modern society is challenged by a loss of efficiency in national governance systems values, and lifestyles. Corporate social responsibility (CSR) discourse builds upon a conception of organizational legitimacy that does not appropriately reflect these changes. The problems arise from the a-political role of the corporation in the concepts of cognitive and pragmatic legitimacy, which are based on compliance to national law and on relatively homogeneous and stable societal expectations on the one hand and widely accepted rhetoric assuming that all members of society benefit from capitalist production on the other. We therefore propose a fundamental shift to moral legitimacy, from an output and power oriented approach to an input related and discursive concept of legitimacy. This shift creates a new basis of legitimacy and involves organizations in processes of active justification vis-à-vis society rather than simply responding to the demands of powerful groups. We consider this a step towards the politicization of the corporation and attempt to re-embed the debate on corporate legitimacy into its broader context of political theory, while reflecting the recent turn from a liberal to a deliberative concept of democracy.Prof. Dr. Guido Palazzo is Assistant Professor for Business Ethics at the University of Lausanne (Switzerland). He graduated in Business Administration at the University of Bamberg (Germany) and earned his PhD in Political Philosophy (1999) from the University of Marburg (Germany). His research interests are in Corporate Social Responsibility, Corporate Branding, Democratic Theory and Organizational Ethics.Prof. Dr. Andreas Georg Scherer is director of the Institute for Organization and Administrative Science (IOU) and holds the Chair for Foundations of Business Administration and Theories of the Firm at the University of Zurich (Switzerland). He has published six books. His work has appeared in Academy of Management Review, Advances in Strategic Management, Business Ethics Quarterly, Journal of Business Ethics, M@n@gement, Management International Review, Organization, organization Studies, and in numerous volumes and German journals. Dr. Scherer is member of the editorial boards of Business Ethics Quarterly, Organization, and Organization Studies.     

Business ethics in Italy: The state of the art

Up until now, the work which has been done in Italy might be considered of a preparatory nature. In 1985 and in 1986, the association of Catholic businessmen produced two documents on the ethical implications of economic activity. But in those years, the world of big business, had not yet realised how central the argument was becoming.The first significant signs of interest for business ethics appeared in 1987. In June, 1988, the first Italian National Conference on Business Ethics took place in Milan. The main outcome of that conference has been the constitution of the Italian Chapter of the European Network. In 1988, I founded the first issue of the journal entitled Etica degli-Affari. Promotional efforts have developped along two lines. The first regards programs of executive training and, eventually, consulting. In the second place, efforts are being made to elaborate and introduce codes of ethics in Italian corporations. There are, however, some very fundamental difficulties involved in the promotion of Business Ethics in Italy. The first problem is the fact that Italy is a country with a low ethical temperature. We don't have a strong sense of national identity, nor do we have a strong sense of the state. The second difficulty has to do with the business environment — the Italian business community itself. As a self-conscious, self-aware nucleus of a sector of society, the Italian business community is a very recent, and rather minoritarian social phenomenon.I personally feel that a certain protagonism on the part of prominent business leaders who are quite sensitive to the theme of ethics would prove to be very influential and greatly accelerate the process.Mario Unnia is managing director of Prospecta, a research firm, Milan, Italy. He has lectured and published extensively in the fields of Business and Public Policy, Corporate Culture and Labour Relations. He has founded and is chairman of the Italian Business Ethics Network. He is editor of Etica degli Affari.     

TQM: Just what the ethicist ordered

Total quality management (TQM) has become a basic business practice in organizations throughout the world. Implementation of TQM in these organizations has been driven by the desire to increase profits in the highly competitive business world. Total quality management techniques are designed to improve performance.Concurrently, organizations are striving to eradicate the concept that the termbusiness ethics is an oxymoron. Corporate codes of conduct have been developed to indicate the outside boundaries of acceptable organizational behavior and companies are espousing and enforcing the ideals contained within these codes.It is our contention that these two business trends are intimately related. TQM encompasses concepts and practices that are in the best organizational interest for all stakeholders. Additionally, TQM promotes activities that encourage high moral behavior. To support this notion, consider the following six important concepts that provide a foundation for TQM:Empowerment of employees Throughput that is prompt and without defects Helpfulness of managers and employees in task accomplishment Integrity of products, services and people Change in process and behavior Stakeholder emphasis (stockholders, customers, and equity)Viewed in the above form, TQM is simply good ethics put into practice. Cecily Raiborn is a Professor of Accounting at Loyola University. Her teaching and research interests include managerial accounting, cost accounting, business ethics, and international business. She has published articles in the Journal of Business Ethics,the Labor Law Journal,the Journal of Corporate Accounting and Financeand Management Accounting.She is the author of two accounting books: Cost Accountingand Managerial Accounting.She is heavily involved in professional and student organizations. Dinah Payne is an Associate Professor of Management at the University of New Orleans. Her teaching and research interests include business ethics, the legal environment of business, international business and international management: She has published articles in the Journal of Business Ethics,the Labor Law Journal,the Journal of Managerial Issuesand Management Accounting.She is the Secretary/Treasurer of the Southern Academy of Legal Studies in Business.     

Values and ethics-related measures for management education

Various measures related to individual values, ethical attitudes and moral reasoning exist and are being increasingly applied for research in business and professional ethics. The England Personal Values Questionnaire, the Rokeach Value Survey, and Rest's Defining Issues Test have received stronger support and application for management and organizational behavior research than other instruments, such as Gordon's Survey of Personal Values and Hogan's Survey of Ethical Attitudes. Beyond research usage, many of these measures offer potential for instructional purposes. Knowledge of the characteristics and limitations of values and ethics-related measures allows business educators to make better selections of possible supplements to traditional instructional methods. Stephen L. Payne is an Associate Professor of Management at the University of Southwestern Louisiana. His primary teaching assignments in recent years have been courses in organizational behavior, business and society, and management in technical organizations. Previous articles by Dr. Payne have appeared in journals including The Academy of Management Review, Personnel Administrator, The Journal of Psychology, The Organizational Behavior Teaching Review, Supervisory Management, and others.