FOCUS: Some Ethical Issues in British Insurance

Insurance is not well understood by most UK purchasers and many feel unease about it. Could this be partly due to the structure of the products on offer, and partly to the difficulties in obtaining good quality impartial advice? The author is Professor of Statistics, and a former Principal, at London Business School, Professor of Rhetoric at Gresham College, London, and a past President of the Institute of Actuaries.     

FOCUS: Key Issues in Ethical Investment

Welcome precision is brought to the idea, history, types and motives of ethical investment in what will become an authoritative review of the subject. Marc Cooper is a postgraduate researcher at the European Business Management School, University of Wales, and Bodo Schlegelmilch, recently British Rail Professor of Marketing there, has recently been appointed Professor of Marketing at the American Graduate School of International Management (Thunderbird), Phoenix, Arizona.     

FOCUS: Women in Management: An Empirical Exploration of Ethical Issues

Dr Goffee reviews empirical evidence on the labour market position and work experience of women managers, assesses the kind of work situations which are likely to be perceived by women managers - and, in some cases, their partners and colleagues - as involving an "ethical" dimension, and suggests possible sources of differentiation in the experiences of European women managers which are worthy of further comparative research. The author is Associate Professor of Organisational Behaviour at London Business School.     

Ethical Issues Relating to the Health Effects of Long Working Hours

Considerable research evidence has accumulated indicating that there is an increased likelihood for illness and injury among employees working in long-hour schedules and schedules involving unconventional shift work (e.g., night and evening shifts). In addition, studies show that fatigue-related errors made by employees working in these kind of demanding schedules can have serious and adverse repercussions for public safety. As the result of these concerns, new protective legislation is being advocated in the United States, for instance, to restrict the hours of work among nurses and other health-care professionals. This article reviews the history of concerns about long working hours and the current scientific evidence regarding their effects on workers’ health. The ethical implications of unconventional shift work and long work-hour schedules are considered. Relevant ethical considerations involve mandatory or unpaid overtime and the possibility of employer coercion, the political basis for government regulation of working hours, potential limits on voluntary assumption of risk, societal benefits accruing from the equitable distribution of available working hours, gender-based inequities related to working hours, and employer responsibilities for protecting individuals who are not employees from the spillover effects of demanding work schedules.     

Ethical Issues Relating to the Health Effects of Long Working Hours

Considerable research evidence has accumulated indicating that there is an increased likelihood for illness and injury among employees working in long-hour schedules and schedules involving unconventional shift work (e.g., night and evening shifts). In addition, studies show that fatigue-related errors made by employees working in these kind of demanding schedules can have serious and adverse repercussions for public safety. As the result of these concerns, new protective legislation is being advocated in the United States, for instance, to restrict the hours of work among nurses and other health-care professionals. This article reviews the history of concerns about long working hours and the current scientific evidence regarding their effects on workers’ health. The ethical implications of unconventional shift work and long work-hour schedules are considered. Relevant ethical considerations involve mandatory or unpaid overtime and the possibility of employer coercion, the political basis for government regulation of working hours, potential limits on voluntary assumption of risk, societal benefits accruing from the equitable distribution of available working hours, gender-based inequities related to working hours, and employer responsibilities for protecting individuals who are not employees from the spillover effects of demanding work schedules.     

FOCUS: Using Case Studies to Teach Ethical Business

Case studies invite students to share in an ethical dilemma and challenge them about their values. Dr Sheldrake is Reader in Modern History at London Guildhall University, Old Castle St., London E1 7NT. A version of his case study appeared in Sarah Vickerstaff (Ed.), 1992, Human Resource Management in Europe: Text and Cases , London: Chapman & Hall.     

The Employment At-Will Doctrine: Second Level Ethical Issues and Analysis

There is an ongoing debate over the ethical status of policies that give an employer the right to discharge an employee without a good reason or notice (i.e., employment at-will policies). This article moves beyond the question of whether the adoption of such a policy is unethical per se under all circumstances, focusing instead on the following question: Assuming that an at-will policy is not unethical per se in all circumstances, what are the ethical issues associated with an employer's implementation and maintenance of an employment at-will policy, and how can these issues be addressed? Three primary ethical concerns are identified and discussed, and specific propositions regarding employers' obligations are presented. The article concludes by offering practical guidance intended to assist at-will employers in meeting the identified ethical obligations.     

FOCUS: Is it Ethical to Compete on Ethics?

Should ethical performance be a competitive factor in business behaviour? Is this necessarily a cynical view?‘A mature investigation into the use and abuse of ethics in relation to competition is required.’Dr Alan Stainer is Head of Engineering Management at Middlesex University, Bounds Green Rd., London N11 2NQ, Fellow of the World Academy of Productivity Science and Founder Director of the International Society for Productivity & Quality Research. Mrs Lorice Stainer is Senior Lecturer in Business Organisation at the University of Hertfordshire, Hertford Campus, Mangrove Road, Hertford SG13 8QF, responsible for the European Business Studies programme, and Business Ethics consultant. This paper was first presented at a Seminar on Teaching Business Ethics held at London Business School on Friday, 10 March, 1995.     

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.     

Creative Accounting: Some Ethical Issues of Macro- and Micro-Manipulation

Preparers of financial statements are in a position to manipulate the view of economic reality presented in those statements to interested parties. This paper examines two principal categories of manipulative behaviour. The term macro-manipulation is used to describe the lobbying of regulators to persuade them to produce regulation that is more favourable to the interests of preparers. Micro-manipulation describes the management of accounting figures to produce a biased view at the entity level. Both categories of manipulation can be viewed as attempts at creativity by financial statement preparers. The paper analyses two cases of manipulation. First, it describes a recent case of significant and successful lobbying against the accounting regulator in the USA. The second case examines some recent Spanish earnings manipulation to demonstrate the effects of biased reporting at the entity level. Both types of creativity are considered in an ethical context. The paper concludes that the manipulations described in it can be regarded as morally reprehensible. They are not fair to users, they involve an unjust exercise of power, and they tend to weaken the authority of accounting regulators.     

FOCUS: Learning Ethical Business through Role Play

Once a company has identified its core values role play can help its leaders explore their meaning in practice. The author is now working as a freelance adviser on organisation development having worked in this area in a large engineering company. He has a general interest in the industry/church interface.     

FOCUS: Ethical Demands and Requirements in Investment Management

Investment Management makes heavy ethical demands which are not an optional add-on, but part of the job of being a financial agent and fiduciary. The author is founder and President of Skandia Fonds, the Norwegian mutual funds management company affiliated with Skandia Group which pioneered the concept of green mutual funds in Norway. This paper was delivered at the Sixth Annual Conference of the European Business Ethics Network, held in Oslo last month. Its views are those of the author, and do not necessarily represent his company's policy.     

FOCUS: Ethical Business: Thinking Thoughts and Facilitating Processes

Doing business ethics and conducting ethical business has to be much more than conducting a rational enquiry. Much also depends on the motivation of individuals and how a positive moral vision of business can unite intellectual and affective approaches to the conduct of business. The author is a lecturer in Philosophy at Warwick University, Coventry CV4 7AL, and a Research Associate at the Local Government Centre at Warwick Business School. He is also an independent organisation development consultant specialising in helping organisations develop their learning processes and value-based forms of leadership.     

FOCUS: Teaching Ethical Business* Creating and Using Vignettes to Teach Business Ethics

Brief thumbnail sketches capture group interest and show the relevance of ethical considerations in real life situations. Bill Bain has considerable experience of business and is currently a PhD student at the Management School of London University's Imperial College, 53 Prince's Gate, Exhibition Road, London SW7 2PG.     

The New Economy: Ethical Issues

The new economy is a technological revolution involving the information and communication technologies and which affects almost all aspects of the economy, business, and our personal lives. The problems it raises for businesses are not radically new, and even less so from an ethical viewpoint. However, they deserve particular attention, especially now, in the first years of the 21st century, when we are feeling the full impact of the changes brought about by this technological revolution. In this article, I will try to draw a "map" of the main, positive and negative ethical challenges raised by the new economy, concentrating on its three basic features: (1) a knowledge- and information-based technological change, (2) which is taking place in real time on a planetary scale (globalization), and (3) which entails a new, flexible, network-based business organization.     

Equivocal Reporting: Ethical Communication Issues

Communication is crucial to the fulfillment of organizational members' responsibilities. Bavelas et al. (1990) describe equivocation as nonstraightforward communication. It appears ambiguous, contradictory, obscure or even evasive. In their view, equivocation is a form of information control for the purpose of maintaining social relationships. It is avoidance; a response chosen when all other communication choices in the situation would lead to negative consequences. A critical role of accountants and other organizational members is the communication of results and activities to management. Professional standards require that accountants be objective and unbiased reporters. If results are clearly reported to management, then costs associated with failed projects have the potential of being contained or minimized. The ethical communication choice for a failed project is a clear and fair representation. However, organizational members may choose to equivocate in order to maintain social relationships in the organizational environment. The two experiments in this research study address the question: "If a negative project assessment exists, in fact, do subjects equivocate or send a clear message?" The two experiments analyzed factors in the message choices of approximately two hundred and eighty student subjects. The results indicate that subjects apply different standards in message choices pertaining to a social relationship versus an organizational setting. Equivocal message selection in a purely social context, a gift which the receiver thinks is awful, ranged from eighty-four percent to eighty-nine percent, while equivocal message selection for a failed business project ranged from forty-five to sixty-two percent. The incidence of false reporting for the failed business project was inconsequential and ranged from one percent to two percent. Experimental results are encouraging with respect to false reporting. However, the pervasive nature of equivocal reporting is disturbing. It appears that the curriculum and organizational training should consider being more attentive to the ethical dimensions of equivocation. Additionally, organizations, that have a culture, which enables or fosters equivocation, should assess the impact of this on their operating activities.     

Keeping Ethical Investment Ethical: Regulatory Issues for Investing for Sustainability

Regulation must target the financial sector, which often funds and profits from environmentally unsustainable development. In an era of global financial markets, the financial sector has a crucial impact on the state of the environment. The long-standing movement for ethically and socially responsible investment (SRI) has recently begun to advocate environmental standards for financiers. While this movement is gaining more adherents, it has increasingly justified responsible financing as a path to be prosperous, rather than virtuous. This trend partly owes to how financial institutions view their legal responsibilities. The business case motivations that now predominantly drive SRI are not sufficient to make the financial sector a means to sustainable development. Some modest legal reforms to improve the quality and extent of SRI have yet to make a tangible difference. A more ambitious strategy to promote SRI for environmental sustainability is possible, based on reforming the fiduciary duties of financial institutions. Such duties, tied to concrete performance standards, could make financiers invest in more ethically responsible ways. Other collateral reforms to financial markets, including improved corporate environmental reporting, are required to promote sustainability.     

Ethical Issues of Teleworking

In spite of the seemingly omnipresent corruption and Mafia activity plaguing modern Russia it is nevertheless possible, and desirable, to conduct business ethically there, as the author testifies. Pamela Woolley has recently completed a full time MBA at London Business School, prior to which her career was in international telecommunications. She has long been interested in Russia and worked in Moscow during the summer between her two years of study. The experience has prompted her to seek a more permanent position in the region and was the impetus behind writing this article. She also wishes to thank Dr Jan Dauman of InterMatrix Group for his interest and contribution to the information gathered in the preparation of this article.     

Research and Ethical Issues Related to Retirement Plans

Many different parties are involved in regulating, providing, and consuming pension and retiree health benefits. This essay identifies the specific parties involved in private and public pension plans and health care plans, discusses the tradeoffs made among the parties, and suggests ways in which research can assist ethical judgments and policy decisions. The essay also gives specific examples where research can address ethical questions.