In defense of sharks moral issues in hostile liquidating takeovers

In this essay we defend the view that from a purely rule-utilitarian perspective there is no sound argument favoring the immorality of hostile liquidating buyouts. All arguments favoring such a view are seriously flawed. Moreover, there are some good argument favoring the view that such buyouts may be morally obligatory from the rule-utilitarian perspective. We also defend the view that most of the shark repellents in the market are immoral. If we are right in our arguments there is no justification, moral or otherwise, for any form of legislation that would constrain the practice of hostile liquidating buyouts. Robert Almeder earned his Ph.D. in Philosophy at the University of Pennsylvania, is co-editor of Business Ethics (Prometheus Press, 1987), is on the Editorial Board of Journal of Business Ethics, and teaches at Georgia State University.David Carey earned his Ph.D. in Philosophy at the University of Pittsburg. He has written extensively on Business Ethics and is currently teaching philosophy at Whitman College in Walla Walla, Washington.     

A Bargaining Model of Friendly and Hostile Takeovers

A bargaining model is developed that characterizes the conditions under which a takeover will either be friendly, hostile, or unsuccessful when the target management can tilt the selling procedure toward a white knight. The conditions considered mainly involve private control benefits, toehold size, and breakup fees. Also established by the model are the conditions for an efficient takeover. The proposed framework of strong management influence on takeover outcome, an alternative modeling of hostility and the adoption of a negotiation procedure, rather than an auction setup with strong shareholder influence as in most of the existing literature, delivers new insights into the US market of corporate control, which are consistent with the available evidence.     

Dismemberment,divorce and hostile takeovers: A comment on corporate moral personhood

We can explain our intuitions about corporate takeover cases by appeal to Peter French's picture of the corporation as a moral person. He argues that corporations are persons in much the same sense as you and I, and are entitled to the same rights as humans. On this analysis, takeovers are murders, attempted murders, attempts to enslave, etc. I want to explore the consequences of this view for corporate takeovers. I shall argue that, though French can explain why our moral intuitions seem to arise in response to some concern about the corporations themselves, his analysis commits us to the wrong intuitions in some cases. I shall then offer an account of these intuitions which focuses on the character of corporations.Rita C. Manning is Assistant Professor of Philosophy at San Jose State University. She has published widely — on Artificial Intelligence, Ancient Philosophy, Ethics, Philosophy of Law, Social and Political Philosophy, and Informal Logic, in addition to Business Ethics. She is currently working on a Feminist critique of Moral Philosophy.     

You can't make steel without having some smoke: A case study in stakeholder analysis

Under the assumption that business ethics can be enhanced by evaluating the affects of decisions on others, this essay demonstrates a case study in stakeholder analysis. While much normative literature has been compiled on the subject of stakeholder management, even more can be learned from the first-hand observation of stakeholder interactions. The purpose of this essay is to present a model of Basic Manufacturing Technologies' stakeholder universe, and illustrate how this manufacturer of steel interacts with its stakeholders. The conclusion which is drawn suggests that these relationships are more complex than BMT's stakeholder philosophy portrays.Steven J. Maranville is a management consultant located in Provo, Utah. His areas of expertise are in strategic management and organizational development. Mr. Maranville has received a B.A. and an M.B.A., both from Brigham Young University.     

Co-creation in effectuation processes: A stakeholder perspective on commitment reasoning

In this article, we seek to contribute to theory on market co-creation through effectuation. To achieve this goal, we examine the different kinds of reasoning behind stakeholder commitments in effectuation processes. Although effectual and causal logics sufficiently account for decision-making in instrumental rationality, scholars have paid little attention to value rationality, and how it might influence stakeholder commitments and behavior. Different commitments may follow different rationales, ranging from instrumentally rational commitments based on causal or effectual logics, to value rational commitments based on state-belief or change-belief. The typology of these four commitment reasoning types provides a framework for analyzing stakeholder behavior based on different perceptions of the commitment decision space. Our typology shows that commitments based on value rationality may be qualitatively different from those driven by instrumental rationality and that value rationality may enable commitments under conditions that preclude instrumentally rational actions. Furthermore, different commitments influence market co-creation processes in different ways. In this article, we examine how different commitments affect (1) conflict and effectual churn and (2) the relative path dependence, or shapability, of the market co-creation space. Based on this typology, we propose avenues for future research on co-creation in effectuation processes, with a special focus on stakeholders.     

A dynamic stakeholder model: An Other‐oriented ethical approach

In this paper, we reflect on the role of the Other in ethical decision‐making in corporations. The Other, in the form of a corporation's stakeholders, has already been discussed in the scientific literature, but there are still some Others that remain unconsidered and that call on corporations to be responsible. Drawing on the philosophy of Levinas, we wish to highlight a green earth and future generations as two non‐immediate Others within a corporation's group of stakeholders whose voices are silenced. We argue that Levinasian ethics can be used as a framework to extend traditional stakeholder theory in a dynamic sphere. With this model, corporations can understand the vital role that both a green earth and future generations play in their existence and can respond to contingencies by considering delays. We enrich our paper with illustrative cases to present some serious environmental disasters that have occurred as a result of ignoring the Other. Finally, we show that understanding the Other as a part of a corporation's identity can create new avenues for “infinite responsibility” towards Others. We contribute to the relevant literature by highlighting that both a green earth and future generations are important but ignored stakeholder parties whose claims urgently need to be addressed.     

Managing critical success factors for IS implementation: A stakeholder engagement and control perspective

Enterprise information systems (IS) implementation is often part of an organization's strategic IT initiatives and requires a large investment of organizational resources, yet may fail due to inadequate management of critical success factors (CSF). Using a revelatory case study of a multi‐partner COTS implementation process by a large Canadian government organization, this research investigates successful management of CSF through optimal stakeholder engagement and a balancing of control configurations. This research identifies four distinct project orientations related to stakeholder engagements—strategic, responsibility, harmony, and persuasion—that can be of significant value in managing CSF and other challenges during implementation and post‐implementation phases. In addition to the identification of a need for control balancing in a multi‐partner IS implementation, three key drivers responsible for triggering control balancing are identified: (a) shared understanding, (b) negative anticipation, and (c) deviation of expectations. Copyright © 2017 ASAC. Published by John Wiley & Sons, Ltd.     

Boards of directors and stakeholder orientation

Based on a survey of 2,361 directors in 291 of the largest companies of the Southeast States, this study empirically examined boards of directors' stakeholder orientations. The results indicate that (1) there exist distinct stakeholder groups perceived by directors, (2) directors have high stakeholder orientations, (3) directors view some stakeholders differently depending on their occupation (CEO directors v. non-CEO directors) and type (inside directors vs. outside directors).Jia Wang is an Associate Professor of Strategic Management at the California State University at Fresno. His current research interests include corporate governance and corporate social performance.H. Dudley Dewhirst is a Professor of Strategic Management and Director of the Strategic Management Program at the University of Tennessee, Knoxville. His current research interests include corporate governance and technology management.     

Innovative ways of raising funds and adding value: A stakeholder approach to whole business securitization

Whole business (WB) securitization is a corporate fundraising strategy that allows companies to realize the full value of their operating assets in cooperation with their stakeholders. In a WB securitization, the company raises funds by issuing securitization bonds backed by its operating assets. A characteristic feature of this funding strategy is that it allows investors to impose operating conditions which obligate the company to develop its business strategy and operations. Hence, investors can influence the branding and customer service practices, as well as the stakeholder relationships of the company. Herein, we outline how managers of the securitized assets and investors can add value by adopting a stakeholder approach to whole business securitization.     

“Horses for courses”: A stakeholder approach to the evaluation of GDSSs

Evaluation of the performance of GDSSs has been dominated by an experimental and laboratory based approach. Other writers have argued for evaluation to be based in the “real-world” of decision making teams. The evaluation criteria have tended to ignore many of the issues that would be paramount for some of the stakeholders in the evaluation process. This article seeks to explore the criteria that might be used by a wide variety of stakeholders, including developers, facilitators, clients, key actors, vendors, as well as academics. By drawing together the criteria associated with all of the stakeholders we discover a broader, and possibly more thorough, framework for evaluation. The evaluation of any particular GDSS in relation to other GDSSs can then be seen in the context of contingent weighting applied to each of the criteria where each GDSS is able to be seen in its best light and in relation to its declared aims. This article argues for a more eclectic and contingent approach to the evaluation of GDSSs which will encourage their future development to be clearer about purpose and the boundaries of their use.     

A defense of employee rights

Recent trends in business ethics along with growing attacks upon unions, suggest that employee rights will be a major social concern for business managers during the next decade. However, in most of the discussions of employee rights to date, the very meaning and legitimacy of such rights are often uncritically taken for granted. In this paper, we develop an account of employee rights and defend this conception against what we take to be the strongest in-principle objections to it. Joseph R. Des Jardins is Assistant Professor at the Department of Philosophy of Villanova University. He is co-editor, with John McCall, ofContemporary Issues in Business Ethics (1984) and An Introduction to Ethics (forthcoming, both published by Wadsworth. John J. McCall is Assistant Professor at the Department of Philosophy of St. Joseph's University and formerly at Iowa State University.     

Organizational harm,legal condemnation and stakeholder retaliation: A typology,research agenda and application

The essence of the ethical issues pertinent to business activities is the harm or benefit that occurs as part of a company's resource transformation process. A typology is developed that sorts ethical issues according to three variables: (1) the nature of the harm, (2) the nature of those harmed and (3) the transformation stage where the harm occurs. Propositions are formulated that would enable analysts and practitioners to predict the degree of legal condemnation of, and stakeholder retaliation to, harms generated by questionable moral reasoning. An organizational harm analysis is then constructed as a decision making tool that could supplement cost/benefit analysis.Denis Collins is a Doctoral Candidate at the Katz Graduate School of Business of the University of Pittsburgh and a Research Associate with the BG Productivity and Gainsharing Institute. He has published several articles in the areas of business ethics, social philosophy and participatory management.     

A typology of organisational stakeholder engagement with place brand identity

ABSTRACT

This study explores how stakeholders engage with a place brand identity (PBI) in the context of country branding. This research extends beyond the importance and challenges of stakeholder brand engagement with place brand identity by exploring several typology of stakeholder engagement with PBI. A case study approach using semi-structured interviews with 39 senior-level representatives from national Australian organisations was adopted to explore how internal stakeholders in Australia are engaged with the current PBI initiative in Australia: Australia Unlimited (AU). A typology of stakeholder engagement with a PBI, including philosophical and concrete engagement was identified. Stakeholders’ philosophical engagement is reflected by their moral support, future engagement intention, as well as positive word-of-mouth (WOM) behaviour. Concrete engagement, on the other hand, is reflected by place brand partnership and internalisation of PBI in the organisations’ strategy. The research findings offer practical ways for place brand managing organisations (PBMO) to enhance stakeholder engagement with a PBI. The identification of multicomponent nature of PBI from the research findings allows PBMO to identify which PBI component lacks stakeholder support in order to make necessary improvements. Further, identification of the typology of stakeholder engagement with PBI provides alternative strategies of how stakeholder engagement can be managed.     

International franchising decision-making: An application of stakeholder theory

Stakeholder theory is used to provide a frame of reference to examine the decision-making process involved in international franchising agreements. An international hotel group was selected as a case. Previous studies focus on investigations of the franchising process after the decision to engage has been taken and contracts duly exchanged. The analysis presented here focuses on the pre-contracting level: on selection and recruitment. The findings emphasise the importance of managing business cultural incompatibility between potential partners and the franchisor and within the franchising company itself.     

Corporate governance, takeovers and the role of the non-executive director

The takeover mechanism may have some effect on disciplining managers - but it also allows them to spend shareholders money on self promotion. The authors of this paper argue that if we had a better system of corporate governance with a revitalised role for independent directors fewer takeovers would occur, and calls for reform of the acquisition market would diminish.     

Tracing stakeholder terminology then and now: Convergence and new pathways

Over the past four decades, stakeholder research has united a chorus of voices from different disciplines using different terminology for different audiences all related to a seemingly similar topic: those that affect and are affected by business. By juxtaposing a comprehensive review of the early years of stakeholder research against more recent stakeholder research, we identify areas of common convergence (a focus on relationships and Freeman's definition of a stakeholder) as well as emergent scholarship (mechanisms underlying stakeholder relationships and solutions-oriented impacts). We develop an organizing framework consisting of three stakeholder-related themes: who or what is a stakeholder; mechanisms underlying stakeholder relationships; and outcomes-oriented stakeholder research. Future research opportunities include: simultaneously examining multiple stakeholders at multiple levels; multiplier effects along the value chain and across geographies; and net impacts (examining whether net positive benefits inclusive of negative outcomes exist). We conclude by identifying how stakeholder research can “move the needle” on important business issues such as: income inequality and CEO pay; human rights and building community inclusion; disease alleviation; and food security in firms’ continuous quest to create value.     

Co-creating stakeholder and brand identities: Introduction to the special section

This article introduces the special section on reciprocal co-creation of stakeholder and brand identities. Branding research and practice traditionally focus on the managerial creation and implementation of brand identity. Based on recent paradigmatic shifts from managerial to co-creative branding and from consumer to multi-stakeholder approaches in marketing, this special section develops a dynamic, process-oriented perspective on brand identity. Brand identity continuously emerges as a dynamic outcome of social processes of stakeholder interaction. Reciprocally, brand identity plays a potentially important role in ongoing interactive identity development processes of stakeholders. The special section contributes to deepening the understanding of this reciprocal co-creation of stakeholder and brand identities, through a series of conceptual and empirical articles. The Introduction reviews four articles as well as related commentaries and discusses their contributions towards establishing a new dynamic paradigm of co-created and reciprocal brand and stakeholder identities.     

Stakeholder management and the stakeholder matrix: Potential strategic marketing tools

This article examines how marketers may be able to apply the stakeholder management process and the stakeholder matrix to marketing strategy formation. Existing marketing theory does not utilize the stakeholder management process when undertaking strategic marketing planing, although most marketing theory implicitly identifies the need to develop strategies that address the needs of multiple groups or stakeholders. By understanding and applying stakeholder theory, marketers should be able to develop more effective marketing strategies. While there is extensive management literature examining stakeholder theory, there is little marketing literature in this area, and this article attempts to partially fill this gap.