Social ethics and the emergence of advertising in China: Perceptions from within the great wall

While interest in doing business continues to rise steadily, information concerning the evolving social ethics of Chinese managers is sparse. This study reports the findings obtained from intensive interviews with thirty-nine Chinese advertising executives. In general, there appears to be developing a cautious optimism about the role of advertising in the Chinese economy. Findings are compared with earlier studies of American and Hong Kong managers and it is suggested that further research and observation is needed to track the development of business ethics in this largest of the world's developing nations. His most important publication is: ‘The Nature of Importance Perceptions: A Test of a Cognitive Model’,Organizational Behavior and Human Performance (April, 1983).     

The business of ethics and the ethics of business

This is an essay in personal business ethics of executives as distinguished from the institutional ethics of corporations. Its purpose is to give practical moral guidance to executives for the conduct of their lives both as corporate decision-makers and as human beings. The pivotal concept in this model of personal business ethics is a direct appeal to the self-interest of executives in their being moral. Our thesis is that generally there is a twofold return on investment in ethics (ROIE) for executives. The first one is related to employee output: by becoming a self-actualizing moral type, executives indicate commitment to excellence. Accordingly, they so manage employees that the latter can also live up to their full potential and excell. And that would increase corporate productivity and product or service quality. The second payback of morality is personal: fully developed, self-actualized managers are generally happier people than those whose growth has been arrested. In brief, moral self-actualization is the same as commitment to excellence and there is a payback in being the best. Return on investment in ethics and return on investment in excellence can both be abbreviated as ROIE. We accomplish the purpose and establish the thesis of this essay by seeking answers to the following questions: What business does ethics have in business? What business does business have in ethics? Is there a return on investment in ethics for executives? and Does being moral help executives become more effective managers? In sketching answers to these questions, we first show why executives need a personal business ethics especially in today's world. Then, we sketch the nature of ethics and of business. After these introductory materials, the body of the paper argues for a personal business ethics for executives by correlating elements of management theory with ethics. Specifically, it links a theory of employee motivation with a scale of values, management character types with moral types, and management leadership styles with morality. Then, the practical technique of life by objectives (LBO) is explained. It can help executives manage their lives more effectively in both the business and ethical sense. We conclude by explaining ideals of excellence which can guide executives in their work and development both as managers and as human beings.     

Localized advantage in a global economy: The case of Bangalore

This article examines how and why firms in Bangalore, a city in southern India, have achieved success in the global software industry. We use Porter's “diamond framework” to analyze information obtained from secondary sources and interviews with engineers, managers, and top executives from software firms and officials involved in Bangalore's development. While we found some aspects of the case conform to Porter's framework, many other elements tend to diverge from the model. Thus, the article contributes to the Porter's diamond model literature by extending its application to assessing the development of successful regions in knowledge‐based industries in developing economies. The discussion in the article would be of value to officials interested in creating such successful regions, as well as international business executives interested in the opportunities afforded by locating in these regions. © 2007 Wiley Periodicals, Inc.     

Leadership, Ethics and Responsibility to the Other

Of recent time, there has been a proliferation of concerns with ethical leadership within corporate business not least because of the numerous scandals at Enron, Worldcom, Parmalat, and two major Irish banks – Allied Irish Bank (AIB) and National Irish Bank (NIB). These have not only threatened the position of many senior corporate managers but also the financial survival of some of the companies over which they preside. Some authors have attributed these scandals to the pre-eminence of a focus on increasing shareholder value in Western business schools and/or to their failure to inculcate ethical standards. In this paper, we challenge these accounts and the aetiological view of knowledge from which they derive but are grateful for the consensus that they convey regarding the importance of business ethics. The paper focuses on different approaches to ethical leadership concluding with a view that some hybrid of MacIntyre’s virtue ethics and Levinas’s ethics of responsibility may serve as an inspiration for both educators and practitioners. Dr. David Knights is a Professor of Organisational Analysis in the School of Economic and Management Studies at Keele University. He previously held chairs in Manchester, Nottingham and Exeter Universities. He is a founding and continuing editor of the journal Gender, Work and Organisation and his most recent books include: Management Lives, Sage, 1999 (with H. Willmott) and Organization and Innovation, McGraw-Hill, 2003 (with D. McCabe). Majella O’Leary is a Lecturer in Management at the University of Exeter. Her research interests include corporate scandals, ethical leadership, disaster sensemaking, and organizational storytelling. Majella’s most recent publications have appeared in Human Relations and European Journal of Business Ethics.     

Thoughts on Business Leadership in Emerging Markets: A Side Effect of Economic Colonialism or Simply Poor Management?

The strategic function of a top business leader, with its vision‐forming, persuading, and control abilities, spans much of what has been traditionally viewed as the field of leadership research. While some leaders speak or write about leadership without having led many businesses, others who have led lack the capacity for reflection which is necessary to explain what it is that they do. Yet, most leaders seem to have something to say, and they find eager listeners. Are MBA candidates being misled by the business press and thus are unable to tell a real leader from a fraud? Or is it that those we call business leaders today are only figureheads propelled by those toiling beneath them? This commentary focuses on thoughts centered on the rim of contention: business leadership in Brazil. © 2013 Wiley Periodicals, Inc.     

A cross‐cultural comparison of achievement and power orientation as leadership dimensions in three European countries: Britain, Ireland and Turkey

This paper compares attitudes towards achievement and power orientation as between Turkish, British and Irish managers and discusses the issue from a business ethics point of view. The concept of achievement and power orientation and its impacts on business ethics is discussed. This research is part of a larger cross‐cultural study that examines leadership styles and managerial attitudes in Britain, Turkey and Ireland. Intensive structured interviews were conducted for data gathering process. Results revealed that Irish and Turkish managers show a higher achievement orientation level than their British counterparts. On one hand this situation may give some advantages to Turkish and Irish managers in developing leadership qualities, on the other hand, it can also lead to some difficulties in ethical business practices. Therefore, corporate social responsibility becomes a more important issue to be pursued in Turkey and Ireland. British and Irish managers, however, showed a higher power orientation level than Turkish managers. The low level of power orientation of Turkish managers can be explained by cultural and historical conditions that still affect modern Turkish society. Previous cross‐cultural studies support the results of this paper.     

An empirical investigation of international marketing ethics: Problems encountered by Australian firms

This study identifies and categorises ethical problems in terms of frequency of occurrence and importance to a sample of Australian international business managers. The study determined that the most frequently cited ethical problem is gifts/favours/entertainment and that this problem may be related to the culture where the international business is being conducted. The most important ethical problem is large-scale bribery. When the frequency of occurrence and importance means are compared in a scatter plot, cultural differences, pricing practices and questionable commissions were catagorised in the high frequency/high importance quadrant. The Australian general managers stated that managerial action will be taken to control unethical behavior among their international marketing managers. It was conjectured that managers were not as firm in their attitudes concerning the necessity to compromise one's ethics to succeed in international business.Dr. Robert Armstrong is a Senior Lecturer in Marketing at Murdoch University. He has concentrated his research activities toward international and service marketing. He has published several papers in both subject areas. Currently, he is studying: International Marketing Ethics in the Asia-Pacific region. The long-range study seeks to make cross-cultural comparisons of Southeast Asian and Australian business executives perceptions of the international marketing environments. He is also doing research for an international marketing text for Australia and Southeast Asia.I would like to thank Jane Seman for her assistance in the collection of data and references for this study. I would also like to thank the reviewer(s) for insightful recommendations and suggestions on the draft of the article.     

Collaborative business models: Aligning and operationalizing alliances

It is not unusual for companies to generate substantial revenue through alliances. However, alliance failure rates are high, leaving much revenue at risk and value unrealized. The big challenge facing managers is to align company interests with alliance interests. Such alignment can only be achieved when executives pay considerable attention to building the right collaborative business model. In this article, we synthesize the insights of the existing literature to arrive at three collaborative business models—sharing, specialization, and allocation—that managers can use to address the specific requirements of their alliances. Because the literature provides limited insight regarding how to operationalize these models, we highlight what managers need to focus on when operationalizing each of these models. We find that the choice for an overall business model is relatively straightforward in most cases but that operationalization of business models requires more complex combinations of management techniques. Finally, we show how the three collaborative business models can be combined to build hybrid models.     

Readers of Macunaíma and Martin Fierro are like two ships passing in the night: Bad for business

This is an exploratory study about the knowledge of Brazilian managers about Argentina and vice versa. Expressing a deeper knowledge of the partner's culture corresponds to greater familiarity, which facilitates the construction of the confidence necessary to do business. We analyzed the academic literature on familiarity and trust, and suggest that the interrelationships of these countries' economies could be enhanced by encouraging greater familiarity among business actors in the countries. The empirical data comes from surveys of MBA students from both countries, carried out in 2008, 2014, and 2015. The results suggest a significant lack of knowledge of the other and a relative stability of expressions of distrust over time, in the case of Brazilians. We conclude that it is advisable to encourage a greater intercultural understanding among business executives of both nations because this could accelerate mutually beneficial business and empower the executives' careers in the region. We also suggest that the demand for this type of intercultural skills should arise at corporations because the demand by executives is not sufficiently informed as to garner the necessary change and because the pay‐as‐you‐go income model of business schools responds to clients' needs rather than to what should be done.     

Focusing on Ethics and Broadening our Intellectual Base

Declining levels of stakeholder trust in business are of concern to business executives and scholars for legitimacy- and performance-related effects. Research in the area of stakeholder trust in business is nascent; therefore, the trust formation process has been rarely examined at the stakeholder level. Furthermore, the role of personal values as one significant influence in trust formation has been under-researched. In this paper, we develop a contingency model for stakeholder trust formation based on the effects of stakeholder-specific vulnerability and personal values of the trustor. Using a factorial vignette methodology, we find that Schwartz’s (J Soc Issues 50:19–45, 1994) value set interacts with stakeholder roles so that trustworthiness signals of competence and character play differing roles during trust formation. These results inform stakeholder trust research, organizational trust research, and research in personal values. The research also informs managers tasked with rebuilding stakeholder trust in business.     

The Gordian Knot of Ethics: Understanding Leadership Effectiveness and Ethical Behavior

Recent ethical misconduct in American business has resulted in volumes of written commentary, various legislative responses, as well as litigation by those identified as victims. While legislators, judges, juries, and the Securities and Exchange Commission (SEC) pursue an increasing number of cases, there is little attention devoted to understanding what drives executives and other leaders to behave in ways that violate the ethical and legal standards of business in the United States. This understanding is a prerequisite to selecting leaders and designing interventions that prevent future misconduct. Understanding leadership’s nature and functioning is one key to understanding the ethical behavior of an organization as a system and of the people who lead the organization. Two models or frameworks provide the foundation for this paper. The first is a model of leadership competencies. This model identifies five key areas of competence related to overall, long-term leadership success. The second model targets leadership effectiveness. This model has three components – motivational patterns, decision criteria, and competencies. Using the Leadership Effectiveness Model to frame the discussion, the authors describe the nature and importance of the models, with particular focus on motivational patterns. Research suggests these patterns often account for 40–60% of overall leadership effectiveness. This article defines motivational patterns and describes key patterns that may impact ethical behavior of leaders. The article concludes with a discussion of how to use data on motivational patterns in leadership selection, development, and evaluation processes. Carl L. Harshman, Ph.D. is president of Harshman & Associates, Inc., an organizational and leadership development firm and founder of the Institute for Work Attitude and Motivation, an organization performance and research institute. He researches and writes in the areas of individual and organization performance, team development, and leadership and ethics. He can be contacted at carl@harshman.com. Ellen Harshman, Ph.D., J.D. is dean of the John Cook School of Business at Saint Louis University and associate professor in management. Her research interests include leadership, individual and organizational ethics, and issues in employment law. She can be reached at harshman@slu.edu.     

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.     

Designing Effective International Business Programmes for Senior Export Executives

In nearly all developing countries, the need to upgrade the marketing management skills of business executives in international trade is increasing rapidly. The capacity of existing training institutions, however, needs to be strengthened in order to meet the future requirements of the business community. To date, most training is provided by business schools, institutes of foreign trade, or other similar training institutes which have limited experience in executive development, particularly in international business. Organizing training for business executives differs greatly from that for business students. Training institutions and trainers involved in providing programmes to experienced target groups must introduce new approaches, methods, tools and structures when organizing such training. Programmes need to be practical and relevant to participants. Trainers of export business executives should regard themselves as training managers accountable for the delivery of effective training programmes enabling participants to apply immediately their newly acquired skills and now-how in their respective organizations.     

Global managers’ perceptions of cultural competence

To work effectively in the global business arena, managers need a strong set of intercultural management skills. When dealing with clients, co-workers, and other stakeholders at home or abroad, managers with cross-cultural competence have a distinct competitive advantage in the multicultural marketplace. Although generally accepted as a valuable asset for doing business, cross-cultural competence defies easy definition. This study attempts to conceptualize the complex term from the practitioner's point of view. What does cross-cultural competence mean to global managers? From their perspective, which aspects of culture do business people need to understand? From the universe of cultural beliefs, values, attitudes, and country-specific information, what should an executive, with limited time, focus on to develop a basic level of cultural competence? This study asked Mexican managers what they needed to know about culture to do business with the U.S. In the process, they consistently identified certain basic components of cultural competence. Responses were surprisingly similar among the managers, indicating they had a clear picture of which cultural essentials were most important for global executives to learn. The results of the study reveal a working definition of cultural competence for global managers. This research also provides trainers and business educators a content framework for a short-term training program, based on the global managers’ perceptions of cross-cultural competence.     

Book Reviews

While globalization has led to a well-documented increase in expatriation among managers and corporate executives, increased internationalization and expatriation have not been confined to business organizations alone. Educational institutions are becoming increasingly international with academics also experiencing growing levels of expatriation. However, despite their increasing international mobility, expatriate academics remain a group about which very little is known. Drawing on exploratory research carried out in Singapore and New Zealand, this essay presents several propositions about the experiences of expatriate academics as a hitherto under-researched group. In addition the essay moves towards adding another dimension to the existing expatriate management literature by considering the extent to which it can be used as a framework for understanding expatriate academics. In doing so the essay proposes some of the differences between expatriate academics and expatriate managers. The areas of focus are cross-culture training, expatriate adjustment and the expatriate family.     

The spectrum of ethicality

Business ethics is the continuing process of re-defining the goals and rules of business activity. In times of rapid change, spurred equally by technological innovation within the business community and by societal expectations in the larger community, participants who share in that process of re-defining goals and rules should be sensitive to professional differences. Lawyers and executives, for instance, while seeking a common societal good, will utilize measurably different goals and methods based on differences in leadership style, accountability to constituents and client relationship generally. Because of these differences, definitions of what is ethical will vary as well, spread across a spectrum of ethicality. He was formerly a Teaching Assistant in Management Psychology Laboratory, Sloan School of Management, MIT, Cambridge, Mass. His most important publication is: ‘The Ethical Side of Enterprise’,Sloan Management Review, MIT.     

Perceptions of the Ethical Work Climate and Covenantal Relationships

Employees perception of the existence of a covenantal relationship between themselves and their employer indicates that they believe there is a mutual commitment to shared values and the welfare of the other party in the relationship. Research suggests that these types of employment relationships have positive benefits for both employees and employers. There has been little research, however, on the factors that determine whether such relationships will develop and thrive.In this paper, we suggest that the organizations ethical work climate may be an important factor affecting employees perceptions about the nature of the relational contract between themselves and their employer. Specifically, we argue that work climates emphasizing benevolence and principle will be associated with covenantal relationships. Conversely, we believe that work climates emphasizing egoism will make it less likely that covenantal relationships will develop between an employer and employee.In order to test our hypotheses, we collected data from 194 employees of a large retail department store. The employees perceived their work climates in terms of principle (laws and professional codes) and benevolence, but to a lesser extent also believed that egoism (self interest) concerns characterized their climate. After controlling for demographic and job-related variables, we found (as expected) that measures of principled and benevolence climate were positively associated with covenantal relationships and that a measure of egoistic climate was negatively associated with covenantal relationships. In the final section of the paper, we discuss the implications of these findings for research and practice.     

How Strategic Purchasing Orientation and Transformational Leadership Impact Performance: The Mediating Role of Information and Communication Technologies

Purpose: Purchasing orientation (greater efficiency, use of information and communication technologies; ICT) is becoming an underlying part of company strategy in an increasing number of business organizations. Transformational leadership by purchasing managers is also emerging as a tool to generate more intense and effective use of ICT and as a means of enhancing performance. The present research pursues 2 goals: firstly to explore how the strategic nature of the purchasing function and transformational leadership of purchasing managers impacts ICT use intensity and purchase efficiency, and secondly to pinpoint how the use of ICT affects purchase performance.

Methodology/approach: The empirical work is based on an analysis of the information provided by a sample of 130 Spanish firms. Empirical verification of the proposed model was carried out through partial least squares analysis.

Findings: Findings show that the strategic importance which management attaches to the purchasing function impacts the intensive use of ICT. However, the transformational leadership exercised by purchasing managers proves relevant in achieving greater cost efficiency and coordination with suppliers.

Research implications: This work has sought to merge as determinants of efficiency both strategic aspects of the purchasing function in the firm as well as managerial aspects of said function (manager’s transformational leadership and the use of ICT). This research breaks new ground by empirically comparing the relationship between the strategic nature of the purchasing function in a firm and intensity of ICT use, a relation which has been the subject of very little inquiry and for which the mediating role of ICT in the link between strategic orientation and purchase performance is brought to light.

Originality/value/contribution: The study makes a twofold contribution. Firstly, the present research seeks to bring together strategic aspects of the purchasing function in the firm as well as other management factors involved in said function (managers’ transformational leadership and use of ICT) as drivers of efficiency. In this sense, the findings point to the important role played by the purchasing manager vis-à-vis the strategic vision of the purchasing function in achieving cost efficiency and coordination with suppliers. Secondly, this research breaks new ground by empirically verifying the link between the strategic nature of the purchasing function in a firm and intensity of ICT use, a link which has been the focus of scant attention and for which we underpin the mediating role of ICT in the relationship between strategic orientation and purchase performance.     

Illegal but ethical: an inquiry into the roots of illegal corporate behaviour in Russia

This paper examines the perceptions of Russian executives toward the relationship between legal and ethical conduct. The focus is on questions of tax evasion attitudes and corporate illegal behavior. Forty Russian managers and entrepreneurs from a variety of organizations were interviewed. Their actions are aimed at gaining corporate income and profit from operations through hiding corporate activity from state and local authorities in a context where these authorities levy excessive taxes and other types of payment from businesses. Tax evasion methods are presented and analyzed along with other varieties of illegal corporate behavior. The research results show that executives believe business could not perform in a completely legal way under Russia's existing conditions. Illegal performance is thus viewed as legitimate and ethical.