A critique of Milton Friedman's essay ‘the social responsibility of business is to increase its profits’

The main arguments of Milton Friedman's famous and influential essay are unsuccessful: He fails to prove that the exercise of social responsibility in business is by nature an unfair and socialist practice.Much of Friedman's case is based on a questionable paradigm; a key premise is false; and logical cogency is sometimes missing.The author proposes a different paradigm for socially responsible action in business and argues that a commitment to social responsibility can be an integral element in strategic and operational business management without producing any of the objectionable results claimed by Friedman.Thomas Mulligan is an Assistant Professor at The Fuqua School of Business, Duke University, in the areas of Manufacturing Management Systems and Business Ethics. He has a Ph.D. from Northwestern University in the field of Philosophy and has worked as an educator, manager, and consultant in the manufacturing and software industries.     

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.     

Personal characteristics in college students' evaluations of business ethics and corporate social responsibility

A survey of 138 college students reveals an undergraduate major has a greater influence on corporate social responsibility than business ethics. Business students are no less ethical than nonbusiness students. Females are more ethical and socially responsible than males. Age is negatively related to one's Machiavellian orientation and positively related to negative attitudes about corporate efforts at social responsibility. The results suggest a greater need to focus busines ethics instruction based on student characteristics. Peter Arlow is Professor of Management at Youngstown State University, Youngstown, Ohio, U.S.A., where he teaches M.B.A. and undergraduate management courses. He has previously published in the Academy of Management Review, Business Horizons, International Journal of Management, Long-Range Planning, Journal of Business Ethics, Akron Business and Economic Review, and other Journals.     

The Great Forgotten Issue: Vindicating Ethics in the European Qualifications Framework (EQF)

Various international authorities have insisted on the importance of ethical learning in higher education for would-be professionals, including students of Business Administration. As the process of creating the European Higher Education Area gathers pace, first steps have been taken to explicitly incorporate ethics in the common European Qualifications Framework (EQF). However, the authors of this study show how in the course of the EQF development process, the consideration given to ethical qualifications has been curtailed and subjected to serious limitations. In this article, the authors review the historical development and the main elements of the EQF. Then, they analyze the gradual elimination of ethics within the EQF. Finally, they highlight the implications of this gradual elimination and propose avenues for further research. Manuel Guillén is Senior Lecturer in Management, at the University of Valencia (Spain). Prof. Guillén earned his PhD in Management with a specialization in ethics and strategic management integration. He has been a Visiting Scholar at the University of St. Thomas, Minnesota (USA), at the University of Notre Dame, Indiana, USA, and guest Visiting Student at IESE Business School doctoral program, in Barcelona. He has presented some of his research at the top conferences in the field and has published in business ethics and management journals. Since 1997 he has taught Business Ethics courses in different business schools, institutions, and companies. Joan Fontrodona is an Associate Professor of Business Ethics and Academic Director of the Center for Business in Society at IESE Business School. He is member of the Academic Board of EABIS, Chairman of EBEN-Spain, and Member of the Executive Committee of ASEPAM, the Spanish Local Network of the Global Compact. He has published several books and papers on business ethics, corporate social responsibility, philosophy, and management. Alfredo Rodríguez-Sedano holds a PhD in Philosophy and a PhD in Business Administration. He is Professor of Sociology at the Education Department of the University of Navarre (Spain). He is also Visiting Professor at the Catholic University of the West (El Salvador). He has been Visiting Professor at the University of Andes (Chile) and Regular Professor at the Catholic University of Sacred Conception (Chile). He has published 16 books, 12 book chapters, and 15 articles on different subjects in the fields of management, philosophy, and education.     

Local Responsiveness Pressure, Subsidiary Resources, Green Management Adoption and Subsidiary’s Performance: Evidence from Taiwanese Manufactures

This study aims to explore if local responsiveness pressure and subsidiary resources influence green management adoption of overseas subsidiaries, and to investigate the relationships between the level of green management adoption and performance. The 101 effective samples were collected from 583 Taiwanese firms, which are listed in the top 1000 manufactory firms and have invested in China. Through structural equation model (SEM) analysis’ empirical results indicate that local responsiveness pressure and subsidiary resources both have positive effects on the level of green management adoption of the subsidiary. This study also suggests that the level of green management adoption is positively related to the subsidiary’s performance. Peng, Yu-Shu is an Associate Professor in the Department of International Business in the School of Management, National Dong Hwa University in Taiwan, R.O.C. He has published in the areas of the international business, strategic management, and business ethics. He received his Ph.D. in Business Administration from the National Chengchi University in Taiwan, R.O.C. Lin, Shing-Shiuan is a graduate student in the Department of International Business in the School of Management, National Dong Hwa University in Taiwan, R.O.C. Her research topics focus on environmental management.     

Dealing With Uncertainties When Governing CSR Policies

As corporate social responsibility involves a voluntary business endeavour to address social and environmental issues beyond legal compliance, governments cannot fall back on hierarchical command-and-control policies to support it. As such, it is complementary with the increasing popularity of public policies known as New Governance policies, where the government is engaged in a horizontal inter-organizational network of societal actors and where public policy is both formed and executed by the interacting and voluntary efforts from a multitude of stakeholders. However, such policies are known to generate substantive uncertainty about the content of CSR and its related issues, strategic uncertainty regarding the behavior of the actors involved and institutional uncertainty related to the interaction process involved in the institutional change. We explore New Governance policy instruments to address these uncertainties in the context CSR and discuss the experiences with these methods in the European Union. Jan Lepoutre is a Ph.D. candidate in Applied Economics at Ghent University, Belgium. In his dissertation, he focuses on the competences associated with small business social responsibility and networks as governmental means to build competences among small businesses. Nikolay A. Dentchev is an independent research fellow at Ghent University, Belgium, and a project coordinator at the corporate venturing department of Fortis Group (Fortis Venturing). He holds a Ph.D. in business economics from Ghent University. His current research is related to entrepreneurship, instrumental stakeholder theory, and management challenges of corporate social responsibility. Aimé Heene is a professor at the Faculty of Economics and Business Administration at Ghent University, Belgium. He teaches strategic management for private and public organizations and currently focuses his research on (competencebased) management in public and social profit organizations.     

Professional Ethical Standards,Corporate Social Responsibility,and the Perceived Role of Ethics and Social Responsibility

This study explored several proposed relationships among professional ethical standards, corporate social responsibility, and the perceived role of ethics and social responsibility. Data were collected from 313 business managers registered with a large professional research association with a mailed self-report questionnaire. Mediated regression analysis indicated that perceptions of corporate social responsibility partially mediated the positive relationship between perceived professional ethical standards and the believed importance of ethics and social responsibility. Perceptions of corporate social responsibility also fully mediated the negative relationship between perceived professional ethical standards and the subordination of ethics and social responsibility. The results suggested that professions should develop ethical standards to encourage social responsibility, since these actions are associated with enhanced employee ethical attitudes. Sean Valentine (D.B.A., Louisiana Tech University) is an Associate Professor of Management in the College of Business at the University of Wyoming. His research interests include ethical decision making, organizational culture, and job attitudes. His research has appeared in journals such as Human Relations, Behavioral Research in Accounting, Journal of Personal Selling & Sales Management, and Journal of Business Research. Gary Fleischman (Ph.D., Texas Tech University) is an Associate Professor of Accounting and the McGee Hearne and Paiz Faculty Scholar in Accounting at the University of Wyoming. His teaching expertise is in accounting and entrepreneurship, and his research interests are in business ethics and behavioral business research. He has published in journals such as Behavioral Research in Accounting, The International Journal of Accounting, and Journal of Business Ethics.     

The Effectiveness of Business Codes: A Critical Examination of Existing Studies and the Development of an Integrated Research Model

Business codes are a widely used management instrument. Research into the effectiveness of business codes has, however, produced conflicting results. The main reasons for the divergent findings are: varying definitions of key terms; deficiencies in the empirical data and methodologies used; and a lack of theory. In this paper, we propose an integrated research model and suggest directions for future research. Muel Kaptein is Professor of Business Ethics and Integrity Management at the Department of Business-Society Management at RSM Erasmus University. His research interests include the management of ethics, the measurement of ethics and the ethics of management. He has published papers in the Journal of Business Ethics, Business & Society, Organization Studies, Academy of Management Review, Business & Society Review, Corporate Governance, Policing, Public Integrity, and European Management Journal. He is the author of the books Ethics Management (Kluwer Academic Publishers, 1998),The Balanced Company (Oxford University Press, 2002), and The Six Principles of Managing with Integrity (Spiro Press, 2005). Muel is also director at KPMG Integrity, where he assisted more than 40 companies in developing their business code. Mark S. Schwartz is Assistant Professor of Goverance, Law and Ethics at the Atkinson School of Administrative Studies at York University (Toronto). His research interests include corporate ethics programs, ethical leadership, and corporate social responsibility. He has published papers in the Journal of Business Ethics, Business & Society, Business Ethics Quarterly, Professional Ethics, and the Journal of Management History, and is a co-author of the textbook Business Ethics: Readings and Cases in Corporate Morality (McGraw Hill). He is also a Research Fellow of the Center of Business Ethics (Bentley College) and the Business Ethics Center of Jerusalem (Jerusalem College of Technology).     

Blind man's bluff: The ethics of quantity surcharges

Empirical evidence, including a recent field study in Northwest Indiana, indicates that supermarkets and other retail merchants frequently incorporate quantity surcharges in their product pricing strategy. Retailers impose surcharges by charging higher unit prices for products packaged in a larger quantity than smaller quantity of the same goods and brand. The purpose of this article is to examine the business ethics of such pricing strategy in light of empirical findings, existing government regulations, factors that motivate quantity surcharges and prevailing consumer perceptions.Omprakash K. Gupta is an Associate Professor of Management in the Division of Business & Economics at Indiana University Northwest. His research interests are in Operations Management, Management Science, Mathematical Modeling of Business Systems and Business Ethics. He has published several articles in national and international journals. He has also reviewed papers for many journals and edited special issues.Anna S. Rominger is an attorney, a mediator, and an Assistant Professor of Business Administration in the Division of Business & Economics at Indiana University Northwest. Her research interests are negotiation, alternative dispute resolutions, labor management relations, business ethics and professional liability. She has published articles in several of these areas.     

Peers Versus National Culture: An Analysis of Antecedents to Ethical Decision-making

Given the recent ethics scandals in the United States, there has been a renewed focus on understanding the antecedents to ethical decision-making in the research literature. Since ethical norms and standards of behavior are not universally consistent, an individual’s choice of referent may exert a large influence on his/her ethical decision-making. This study used a social identity theory lens to empirically examine the relative influence of the macro- and micro-level variables of national culture and peers on an individual’s intention to behave ethically. Our sample consisted of respondents from Germany, Italy, and Japan. The results indicated that both national culture and peers were found to act as significant referents in ethical decision-making dilemmas. Although peers exerted a much stronger influence on an individual’s ethical decision-making, the impact of peers varied depending on the national culture levels of individualism and power distance. James W. Westerman is an Associate Professor of Management at Appalachian State University. He received his Ph.D in Management from the University of Colorado at Boulder and an MBA from Florida State University. His research interests include person-organization fit, compensation, and employee ethics, and has been published in the Journal of Organizational Behaviour, Journal of Business Ethics, Academy of Management Learning and Education, Group and Organization Management and the Journal of Business and Psychology, among others. Rafik I. Beekun (Ph.D., the University of Texas at Austin) is Professor of Management and Strategy in the Managerial Sciences Department at the University of Nevada. Reno, and Co-director, Center for Corporate Governance and Business Ethics. His current research focuses on business ethics, national cultures and the link between management and spirituality. He has published in such journals as the Journal of Applied Psychology, Human Relations, Journal of Management, Journal of Business Ethics and Decision Sciences. Yvonne Stedham is a Professor of Management in College of Business at the University of Nevada, Reno. She received a Ph.D. in Business and an MBA from the University of Kansas, Lawrence, Kansas and undergraduate degrees in Economics and Business from the University of Bonn, Germany. She joined the University of Nevada, Reno in 1988 and served as Chair of the Managerial Sciences Department from 1999-2002. Dr. Stedham's research covers a broad spectrum of management issues with a special focus on international, business ethics and gender aspects, and has been published in the Journal of Management. Women in Management Review, the Journal of Management Studies, the Journal of Business Ethics,the Journal of European Industrial Training, and the Journal of Knowledge Management Practice, Asia Pacific Journal of Human Resource, and others. Jeanne H. Yamamura, CPA, MIM, PHD, is Associate Professor at the University of Nevada Reno. Her research is focused in the area of the international management of accounting professionals and in ethical decision making. She has published in journals such as the International Journal of Accounting, the International Journal of Accounting, Auditing and Performance Evaluation and the International Journal of Human Resource Management.     

Writing performance and moral reasoning in business education?

This study investigates the connection of moral reasoning to demographic and performance variables in business education, especially business and technical writing. The moral reasoning construct serves as the foundation for one's decision making when confronted with moral dilemmas. Significant relationships are reported between subjects' writing skill and their moral reasoning scores. This research serves as a foundation for questions about writers' moral reasoning and the ethical decisions each writer makes in written communication. In addition, this study supports further research into the connection between moral reasoning and written communication, given the significant relationships reported and the noticeable shortage of related, data-based research.J. Lynn Johnson is an Associate Professor of Management at the University of North Texas, Denton, Texas. He is coauthor ofManagement: Theory and Practice, is an active consultant in the SouthWest, and has published over 20 other journal articles and training manuals. He has also been active in designing the curriculum for undergraduate and masters programs in personnel and industrial relations, hotel and restaurant management, and small business administration.Robert Insley is an Assistant Professor of Management and coordinator of the business communication program at the University of North Texas, Denton, Texas. He has presented numerous papers at national and international business communication and international business conferences, conducts interviewing skills workshops, has published several journal articles, and is presently in the process of co-authoringBusiness Communication Today and Tomorrow.Jaideep Motwani is an Assistant Professor of Management at Grand Valley State University, Grand Rapids, Michigan. He has presented numerous papers and chaired sessions at regional, national, and international meetings of the Decision Sciences, Society for Advancement of Management, ASQC, and other professional societies. He has published several journal articles.Imad Zbib is an Assistant Professor of Management at Central Missouri State University, Warrensburg, Missouri. His teaching and research interests range from production planning and control and manufacturing strategy to international management and business communication. He has presented papers at several regional, national, and international conferences and has published several journal articles.     

The Business and Society course: Does it change student attitudes?

The purpose of this research was to determine if there is a significant difference in the attitudes of students toward situations involving ethical decisions before and after taking a course in Business and Society. A simulated before and after design was used with Clark's personal business ethics and social responsibility scale serving as the measurement instrument. The result of the study indicated that the Business and society class had no statistically significant impact on student attitudes.William R. Wynd graduated from Michigan State University with a Ph.D. in 1969. He is a professor of Marketing Management at Eastern Washington University and has over twenty years of teaching experience. Dr. Wynd has previously published in several other academic journals and conference proceedings. John Mager graduated with a Ph.D. in Marketing from the University of Oregon in 1986. He is currently an assistant professor of Marketing at Eastern Washington University. Dr. Mager has published in the Journal of Consumer Research as well as numerous national and international academic conferences.     

The other 338: Why a majority of our schools of business administration do not offer a course in business ethics

A recent survey indicated that the majority of schools of business administration do not offer courses in business ethics and/or the social responsibilities of business firms. The author examines the reasons for the omission of these courses, and concludes that faculty in the major disciplines and techniques of management do not recognize the complexity of ethical problems or the importance of ethical decisions in the overall management of large business organizations. La Rue Hosmer is Professor of Policy and Control at the Graduate School of Business Administration of the University of Michigan. He has A.B., M.B.A., and D.B.A. degrees from Harvard University, and was the founder and president of a company that manufactured heavy equipment for sawmills and papermills. He has been teaching Business Policy, Small Business Management and Entrepreneurship at The University of Michigan since 1972, with visiting appointments during that period at Stanford and Yale. His research interests are in managerial ethics, corporate responsibility and strategic implementation. He is the co-author of The Entrepreneurial Function (Prentice-Hall, 1977) and the author of Strategic Management: Text and Cases on Business Policy (Prentice-Hall, 1982), Formation Planning (McGraw-Hill, 1984), and Managerial Ethics (in press).     

Ethics programs and their dimensions

All organizations have ethics programs which consist of both explicit and implicit parts. This paper defines corporate ethics programs and identifies a number of their components. Corporate ethics programs' structural and behavioral dimensions are proposed which may allow further examination of such program components and their impacts. Finally, fifteen propositions are suggested which describe the influence of founder values, competitive pressures, leadership, and organizational problems on corporate ethics programs and the manageability of such programs.Steven N. Brenner is currently Sponsored Professor of Business Ethics and Corporate Social Responsibility at Portland State University, Portland, Oregon. He served from 1983 through 1987 as Associate Dean for Graduate Programs in its School of Business Administration. Dr. Brenner has written articles forHarvard Business Review, The Academy of Management national MeetingsProceedings, The JAI PressResearch on Corporate Social Performance and Policy, and other publications. He has served as the Chairman and Program Chairman for the Social Issues in Management Division of the Academy of Management and is Chairman of the International Association of Business and Society's 1992 meeting to be held in Leuven, Belgium. He teaches courses in corporate social responsibility, business ethics, managing in a regulated world, business/government relations, business policy and organizational politics. During 1989–90 he was on a sabbatical leave doing research on corporate social responsibility and acting as Chair of the Academy of Management's Ethics Task Force which wrote the Academy's Code of Ethical Conduct.This work was supported in part by a grant from the Chiles Foundation, Portland, Oregon.     

Utility of Ethical Frameworks in Determining Behavioral Intention: A Comparison of the U.S. and Russia

Using Reidenbach and Robin‘s ( Journal of Business Ethics 7, 871–879, 1988) multi-criteria ethics instrument, we carried out the first empirical test of Robertson and Crittenden‘s (Strategic Management Journal 24, 385–392, 2003) cross-cultural map of moral philosophies to examine what ethical criteria guide business people in Russia and the U.S. in their intention to behave. Competing divergence and convergence hypotheses were advanced. Our results support a convergence hypothesis, and reveal a common emphasis on relativism. Americans are also influenced by the justice criterion while Russians tend to emphasize utilitarianism. Rafik I. Beekun (Ph.D., the University of Texas at Austin) is Professor of Management and Strategy in the Managerial Sciences Department at the University of Nevada, Reno. His current research focuses on business ethics, national cultures, and the link between management and spirituality. He has published in such journals as the Journal of Applied Psychology, Human Relations, Journal of Management, Journal of Business Ethics and Decision Sciences. Correspondence regarding this article should be addressed to him: MGRS 28, University of Nevada, Reno, NV 89557–0206. James Westerman is an Associate Professor of Management at Appalachian State University. He received his Ph.D. in management from the University of Colorado at Boulder. His research interests include person-organization fit, employee ethics, compensation, and selection. Jamal Barghouti (B.Sc., MBA, Ph.D Management) is currently Advisor on Petroleum Affairs, H.H. Ruler’s Court, Dubai. He is also a lecturer at local universities including Dubai University College in human resources management, international business, organizational behavior and business communication. He has about 35 years of experience in the oil industry in the U.S.A., U.K., Russia, and the Middle East.     

Understanding Corporate Social Responsibility and Product Perceptions in Consumer Markets: A Cross-cultural Evaluation

The concept of corporate social responsibility is becoming integral to effective corporate brand management. This study adopts a multidimensional and cross-country perspective of the concept and analyses consumer perceptions of behaviour of four leading consumer products manufacturers. Data was collected from consumers in two countries – Spain and the UK. The study analyses consumers’ degree of interest in corporate responsibility and its impact on their perception about the company. The findings here suggest a weak impact of company-specific communication on consumers’ perception. The implications of this study are relevant to companies for strengthening their social responsibility associations with the consumers. Dr. Jaywant Singh is Senior Lecturer at Kingston University, London where he teaches consumer behaviour and international marketing. His research interests include customer loyalty, product variants, new brands, corporate social responsibility, and consumer panel data. He received his PhD in marketing in 2004. Dr. Maria de Mar Garcia de los Salmones is Lecturer at University of Cantabria (Spain). Her current research interests include corporate social responsibility, brand image and consumer behaviour. She received her PhD in business administration in 2002. Dr. Ignacio Rodriguez de Bosque is Professor of Marketing at the University of Cantabria (Spain). His current research interests include Business Communication, relationship marketing and distribution channels. He has published in several international journals such as Tourism, Management, Journal of Retailing and Consumer Services and Industrial Marketing Management.     

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.     

Drivers of Environmental Behaviour in Manufacturing SMEs and the Implications for CSR

The authors use empirical research into the environmental practices of 31 manufacturing small and medium-sized enterprises (SMEs) to show that ‚business performance’ and ‚regulation’ considerations drive behaviour. They suggest that this is inevitable, given the market-based decision-making frames that permeate and dominate the industry in which manufacturing SMEs operate. Since the environment is a pillar of corporate social responsibility (CSR), the findings have important implications for CSR policy, which promotes voluntary actions predicated on a business case. It is argued that this approach will not alter the behaviour of manufacturing SMEs significantly because CSR practice will be regarded as an optional and costly ‚extra’ affecting core business activity. Consequently, the use and development of existing regulatory structures, providing minimum standards for many activities covered by CSR, remains the most effective means through which the behaviour of manufacturing SMEs will be changed in the short to medium-term. Another feature of the paper is the distinction made between ‚business performance’ and the ‚business case’ argument. Business performance emphasises cost reductions and efficiency whereas the business case accentuates the benefits to shareholders of good practices as their firms become more attractive to stakeholders and society. Manufacturing SMEs␣try to improve business performance because of the pressures placed on them by market-dominated decision-making frames. These frames do not encourage manufacturing SMEs to undertake voluntary actions for the benefit of wider stakeholders and society.David Williamson is Senior Research Fellow in the area of Corporate and Environmental Responsibility at the School of Law, University of Manchester, UK. He has conducted extensive empirical studies into, and written papers on, the environmental behaviour of small and medium sized enterprises. He is also Chair of INDECO, a national body that coordinates sustainable development work on business parks.Gary Lynch-Wood is a Lecturer at the School of Law, University of Manchester, UK. His research focuses on regulation, particularly the impact that regulation has on small and medium-sized enterprises. He teaches a variety of subjects including regulation, environmental law, corporate responsibility and legal methods. He was a Director of the Centre for Research into Corporate Responsibility and the Environment prior to his move to the University of Manchester. John Ramsay is a Reader at the School of Business and Law, Staffordshire University, UK. He has had a number of careers including a decade spent working in the Purchasing Function of a large British component supplier to the European car industry. He teaches a variety of subjects including South East Asian economic development and Negotiation. He is widely published in the Purchasing field with practitioner papers dating back to the 1970s when he was junior buyer, developing in more recent years into academic work in his research area of Buyer–supplier interaction.     

Religions's moral compass and a just economic order: Reflections on Pope John Paul II's encyclicalCentesimus Annus

The purpose of Pope John Paul's encyclicalCentesimus Annus (CA) is to propound the foundations of a just economic order and to sketch its essential characteristics. As such he essentially provides an orientation or moral compass for the political economy rather than a precise road map. This article first reviews the principal components of CA and then analyzes and evaluates its central contentions on both cultural and economic grounds.S. Prakash Sethi is a Professor of Management and Associate Director of the Center for Management, Baruch College, The City University of New York. He has published twenty books and over 130 articles in scholarly and professional journals in such diverse areas as business and public policy, corporate strategy, and international business.Paul Steidlmeier is associate professor at the School of Management of Binghamton University in the State University of New York system. He has written a number of articles in leading journals and has publishedPeople and Profits: The Ethics of Capitalism (Prentice Hall, 1992). Recent work has focused upon institutionalist aspects of Business and Society issues and problems of intellectual property and the social responsibility of business in developing countries (China).