The Ethical Backlash of Corporate Branding

Past decades have witnessed the growing success of branding as a corporate activity as well as a rise in anti-brand activism. While appearing to be contradictory, both trends have emerged from common sources – the transition from industrial to post-industrial society, and the advent of globalization – the examination of which might lead to a socially grounded understanding of why brand success in the future is likely to demand more than superior product performance, placing increasing demand on corporations with regard to a broader envelop of socially responsible behavior. Directions for strategic and managerial options are suggested. Guido Palazzo is Assistant Professor for Business Ethics at the University of Lausanne. He graduated in Business Administration at the University of Bamberg and earned his Ph.D. in Political Philosophy from the University of Marburg. His research interests are in Corporate Social Responsibility, Corporate Branding, Democratic Theory, and Organizational Ethics. Kunal Basu is a University Reader in Marketing at Said Business School, University of Oxford. He earned his Ph.D. in Marketing from the University of Florida. His research interests are in Corporate Social Responsibility Strategy and Brand Management.     

Why Stakeholder And Stockholder Theories Are Not Necessarily Contradictory: A Knightian Insight

The normative foundations of the investor centered model of corporate governance, represented in mainstream economics by the nexus-of-contracts view of the firm, have come under attack, mainly by proponents of normative stakeholder theory. We argue that the nexusof- contracts view is static and limited due to its assumption of price-output certainty. We attempt a synthesis of the nexus-of-contracts and the Knightian views, which provides novel insights into the normative adequacy of the investor-centered firm. Implications for scholarship and management practice follow from our discussion. S. Ramakrishna (Rama) Velamuri is Assistant Professor at IESE Business School, where he teaches Entrepreneurship and Negotiation in the MBA and executive education programs. He is also a visiting professor at the Indian School of Business in India, the University of Saarland in Germany, and the University of Piura in Peru. His research has been published in both academic and practitioner outlets: Journal of Business Venturing, Business Ethics Quarterly, Journal of Entrepreneurial Finance and Business Ventures (forthcoming), Universia Business Review, Financial Times Mastering Management Series, The Hindu, Business Line, Actualidad Economica, La Vanguardia, and Diario Financiero (Chile). He has also contributed several book chapter on enterpreneurship and strategy. He received a B.Com. degree from the University of Madras, an MBA from IESE Business School, and a Ph.D. from the Darden Graduate School of Business, University of Virginia. Sankaran Venkataraman (Venkat) is the MasterCard Professor of Business Administration at the Darden Graduate School of Business Adminstration, University of Virginia, where he teaches MBA and executive level courses in strategy and entrepreneurship. He also serves as the Director of Research of the Batten Institute and is the Editor of the Journal of Business Venturing. He consults with Fortune 500 firms as well as several small companies. He is advisor to firms, universities and government organizations. He is a speaker for and advisor to the Entrepreneurial Forum, a program of the International Trade Administration of the U.S. Department of Commerce aimed at promoting trade through entrepreneurship around the world. He received his M.A. in Economics from the Birla Institute of Technology and Science, Pilani, India; his MBA from the Indian Institute of Management (Calcutta); and his Ph.D. from the University of Minnesota.     

Normative Self-Interest or Moral Hypocrisy?: The Importance of Context

We re-examine the construct of Moral Hypocrisy from the perspective of normative self-interest. Arguing that some degree of self-interest is culturally acceptable and indeed expected, we postulate that a pattern of behavior is more indicative of moral hypocrisy than a single action. Contrary to previous findings, our results indicate that a significant majority of subjects (N = 136) exhibited fair behavior, and that ideals of caring and fairness, when measured in context of the scenario, were predictive of those behaviors. Moreover, measures of Individualism/Collectivism appear more predictive of self-interested behavior than out-of-context responses to moral ideals. Implications for research and practice are discussed. George W. Watson received his Ph.D. from Virginia Tech, his M.B.A. from California State at Fullerton, an M.S. in Systems Management from the Naval Postgraduate School in Monterey, an a B.A. in Business Administration from the University of Washington, Seattle. His teaching focus is on corporate social responsibility and ethics. Dr.Watson’s current research interests include moral psychology,ethical decision making, and ideology. He has published in Business Ethics Quarterly, Business and Society, and the Journal of Business Ethics. Farooq Sheikh received his BS in Physics from Indiana University of Pennsylvania, and his Ph.D. from Smeal College of Business, Penn State University. He is currently Assistant Professor of Operations Management, School of Business at the State University of New York at Geneseo. Dr. Sheik’s research interests include rational and behavioral models in business operations, bounded-rational behavioral models in population games, social norms, game theory and cross-disciplinary research involving behavioral models.     

The Relevance and Value of Confucianism in Contemporary Business Ethics

This article examines the relevance and value of Confucian Ethics to contemporary Business Ethics by comparing their respective perspectives and approaches towards business activities within the modern capitalist framework, the principle of reciprocity and the concept of human virtues. Confucian Ethics provides interesting parallels with contemporary Western-oriented Business Ethics. At the same, it diverges from contemporary Business Ethics in some significant ways. Upon an examination of philosophical texts as well as empirical studies, it is argued that Confucian Ethics is able to provide some unique philosophical and intellectual perspectives in order to forge a richer understanding and analysis of the field of contemporary Business Ethics. Gary Kok Yew Chan is Assistant Professor of Law at Singapore Management University. Apart from Business Law, he teaches Ethics and Social Responsibility. He has obtained an LL.B (National University of Singapore) and LL.M (School of Oriental and African Studies, University of London) respectively and has published in several reputable law journals including Journal of Business Law, Cambridge Law Journal, Australian Journal of Asian Law, Hong Kong Law Journal and Singapore Journal of Legal Studies. In addition, he holds an M.A. in Southeast Asian Studies (National University of Singapore) and a B.A. in Philosophy (University of London).     

Ethical Leadership for the Professions: Fostering a Moral Community

This paper examines the professions as examples of “moral community” and explores how professional leaders possessed of moral intelligence can make a contribution to enhance the ethical fabric of their communities. The paper offers a model of ethical leadership in the professional business sector that will improve our understanding of how ethical behavior in the professions confers legitimacy and sustainability necessary to achieving the professions’ goals, and how a leadership approach to ethics can serve as an effective tool for the dissemination of moral values in the organization. Dr. Linda M. Sama is Director of the Center for International Business Development and Associate Professor of Management at Pace University’s Lubin School of Business. She earned her Ph.D. in Strategic management from the City University of New York and her MBA in International Finance from McGill University. She was awarded the 1999 Lasdon Dissertation Award for her doctoral dissertation on corporate social response strategies and the Abraham Briloff Award of Best Paper in Business Ethics at the City University of New York in 1998. Dr. Sama made a transition to academe after a lengthy career in industry, where she acted as Director of Market Planning and Logistics for a major international subsidiary of Transamerica Corporation. She teaches primarily in the areas of International Business, Strategic Managements and Business Ethics, and has taught at Baruch College and the University of Texas at El Paso (UTEP) prior to coming to Pace in the fall of 2001. At UTEP, she was designated as the Skno International Business Ethics Scholar from 1999–2001. She has published numerous articles and book chapters that address issues of corporate social responsibility, business and the natural environment, integrative social contracts theory, and business ethics dilemmas in the new economy. Her research appears in journals such as The Journal of Business Ethics, Business Ethics Quarterly, Business and Society Review, The Journal of Cross-Cultural Management, and the International Journal of Value-Based Management. She has also published research for the U.S. Department of Transportation related to the effects of NAFTA on U.S. – Mexico border logistics and has consulted to business clients on Strategic Planning, Global Leadership and Business Ethics. Dr. Victoria Shoaf is an Associate Professor and Assistant Chair of the Department of Accounting and Taxation at St. John’s University. She received her Ph.D. in Business, with a specialization in Accounting, from Baruch College of the City University of New York in 1997; she was awarded the 1997 Lasdon Dissertation Award. Prior to joining St. John’s University on a full-time basis, Dr.Shoaf worked for over fifteen years in the retail industry with merchandising firms. Her expertise is in establishing effective accounting systems and controls, including operational functions such as order entry and fulfillment, inventory control, point-of-sale data transfers and sales audit, as well as financial accounting functions. She has held controllership positions at Laura Ashley, Inc., Greeff Fabrics, Inc., and Tie Rack, Inc. While working in industry and while completing her doctoral degree, Dr. Shoaf taught accounting courses as an adjunct instructor at Pace University and at Baruch College. She received a commendation from the dean at Pace University for teaching excellence, and she was awarded a Graduate Teaching Fellowship at Baruch College. She currently serves on several professional committees, and she has provided consulting services in accounting education and training programs for several large employers.     

Trade Liberalization, Corruption, and Software Piracy

As multinational firms explore new and promising national markets two of the most crucial elements in the strategic decision regarding market-entry are the level of corruption and existing trade barriers. One form of corruption that is crucially important to firms is the theft of intellectual property. In particular, software piracy has become a hotly debated topic due to the deep costs and vast levels of piracy around the world. The purpose of this paper is to assess how laissez-faire trade policies and corruption affect national software piracy rates. Using invisible hand theory, as well as literature from the fields of international strategy and ethics, formal research hypotheses are posited and tested. Results suggest that corruption mediates the relationship between economic freedom and software piracy. Implications for multinational managers and researchers are also addressed. Christopher J. Robertson (B.S. University of Rhode Island; M.B.A. and Ph.D., Florida State University) is an Associate Professor in the International Business and Strategy Group at Northeastern University. He has taught in Virginia, Florida, Spain, Peru and Ecuador and is a two time Fulbright Scholar. Professor Robertson’s Primary research stream is cross-cultural management with a focus on ethics and strategy. His work has been published in journals such as the Journal of World Business, Strategic Management Journal, Journal of Business Ethics, Management International Review, Organizational Dynamics and Business Horizons. K Matthew Gilley (B.A and M.B.A University of North Texas; Ph.D., University of Texas at Arlington) is the Bill Greehey Endowed Chair in Business Ethics and Corporate Social Responsibility in the Greehey School of Business at St. Mary’s University. His primary research explores issues of executive compensation, governance, international ethics, and outsourcing. His work has appeared in the Strategic Management Journal, the Academy of Management Journal, the Journal of Management, the Journal International Business Studies, and other outlets. William F. Crittenden, Senior Associate Dean, Dean of Faculty and Professor, General Management Group. A consultant and advisor to various private, public, and nonprofit organizations, Professor Crittenden has worked with such U.S based organizations as Boston Beer Company, BAE Systems, EG&G, Intronics, Lotus Software, Wal-Mart Stores, Boston Management Consortium, Head Start, Jefferson Hospital, Nazareth, the new England Association of Quality Clubs, and The Professional Council, and with Funducion CANE in Buenos Aires, Argentina, and Banco Nacional de Comercio Exterior of Monterrey, Mexico. He is a member of numerous professional organizations including the Strategic Management Society, the Academy of Management, and the Academy of Marketing Sciences. He is a former Chair of the Public & Nonprofit Division of the Academy of Management. Professor Crittenden holds a BA from the University of Michigan, an MBA from Aubum University, and a PhD from the University of Arkansas.     

Expressions of corporate social responsibility in U.K. firms

This study examines corporate publications of U.K. firms to investigate the nature of corporate social responsibility disclosure. Using a stakeholder approach to corporate social responsibility, our results suggest a hierarchical model of disclosure: from general rhetoric to specific endeavors to implementation and monitoring. Industry differences in attention to specific stakeholder groups are noted. These differences suggest the need to understand the effects on social responsibility disclosure of factors in a firm's immediate operating environment, such as the extent of government regulation and level of competitiveness in the industry. Diana C. Robertson is an Assistant Professor of Organisational Behaviour and Business Ethics at the London Business School. She was previously Assistant Professor of Legal Studies at The Wharton School, University of Pennsylvania. In 1990, she was awarded the University of Pennsylvania Provost's Award for Distinguished Teaching, and in 1992 she received a Wharton School Undergraduate Teaching Award. Her research interests include the impact of corporate policy, particularly codes of ethics, and compensation and control systems on employees' ethical behaviour, and the diffusion of ethical practices among corporations. She has published articles in the Sloan Management Review, Journal of Business Ethics, Organization Science, and Business Ethics Quarterly.Professional Nigel Nicholson is Chairman of the Organisational Behaviour Group and Director of the Centre for Organisation Research at London Business School. Previously, he led investigations into Individual and Organisational Change at Sheffield University's Social & Applied Psychology Unit, and has also held visiting appointments at American, Canadian and German universities. He has published eight books and over 65 articles on a wide range of topics, and been honoured with an award from the Academy of Management for his contribution to theory.     

Ethical Stewardship – Implications for Leadership and Trust

Great leaders are ethical stewards who generate high levels of commitment from followers. In this paper, we propose that perceptions about the trustworthiness of leader behaviors enable those leaders to be perceived as ethical stewards. We define ethical stewardship as the honoring of duties owed to employees, stakeholders, and society in the pursuit of long-term wealth creation. Our model of relationship between leadership behaviors, perceptions of trustworthiness, and the nature of ethical stewardship reinforces the importance of ethical governance in dealing with employees and in creating organizational systems that are congruent with espoused organizational values. Cam Caldwell is Assistant Professor of Management in the School of Business at Weber State University. His research is primarily in the areas of organizational governance, ethical leadership and trust. He received his Ph.D from Washington State University where he was Thomas S. Foley Graduate Fellow. He has worked as a City manager, Human Resource Director, and Management Consultants for 30 years. Linda A. Hayes is Assistant Professor and Director of Program Assessment in the School of Business Administration of the University of Houston – Victoria. She received a B.S.M.E. from Clarkson University, an M.B.A from the University of Houston, and a Ph.D from University of California at Berkeley. Dr. Hayes has 15 years of industry experience. Her research interests include decision-making, stakeholder behavior, business strategy. Dr. Hayes was a 1996 NASA Faculty Fellow. Recently, she has published in the Journal of Management Development, Journal of International Marketing, Business Horizons and International Journal of Mobile Communications. Ranjan Karri is an Associate Professor of Management at the University of Illinois at Springfield. He received his Ph.D from Washington State University. His research interests are in the areas of entrepreneurship, ethics and strategy. Patricia Martinez is a cum laude graduate of the University of Houston – Victoria School of Business and works for the Learning Education Achieve Dreams program at that University to help young people in the Victoria, Texas Community set and achieve personal and educational goals.     

Consumers’ Ethical Beliefs: The Roles of Money,Religiosity and Attitude toward Business

This article presents the results of a study that investigated the roles that one’s money ethic, religiosity and attitude toward business play in determining consumer attitudes/beliefs in various situations regarding questionable consumer practices. Two dimensions of religiosity – intrinsic and extrinsic religiousness – were studied. A global scale of money ethic was examined, as was a global measure of attitude toward business. Results indicate that both types of religiosity as well as one’s money ethic and attitude toward business were significant determinants of at least some types of consumer ethical beliefs. Scott J. Vitell is Phil B. Hardin Professor of Marketing at the University of Mississippi. He received his Ph.D. in Marketing from Texas Tech University. His recent publications have appeared in the Journal of the Academy of Marketing Science, the Journal of Retailing, the Journal of Business Ethics and the Journal of Consumer Marketing, among others. Jatinder J. Singh is a Ph.D. student in marketing at the University of Mississippi. He received his masters from Punjab Technical University, India. He has authored papers previously published in the Journal of Business Ethics and a paper for the American Marketing Association’s Winter Educators’ Conference. Joseph G.P. Paolillo is a Professor of Management in the School of Business at the University of Mississippi. He received his Ph.D. from the University of Oregon, Eugene in Organization and Management. His publications have appeared in the Journal of Management, Journal of Management Studies, Human Relations, Group and Organization Studies, The Accounting Review, Journal of Advertising and Journal of Business Ethics, among several others.     

Working Together: Critical Perspectives on Six Cross-Sector Partnerships in Southern Africa

Early strategy scholars have pointed to the importance of reflecting on moral issues within the scope of strategic management. Although strategy content and context have been discussed in relation to ethical reflection, the third aspect, strategy process, has found only little or no attention with regard to ethics. We argue that by emphasizing the process perspective one can understand the related character of strategic management and ethical reflection. We discuss this relatedness along formal, functional, and procedural similarities. Whereas formal aspects refer to the conditions under which both processes occur, functional aspects look at the role that strategy process and ethical reflection fulfill. Procedural aspects account for similarities in the nature of both processes insofar as the activities that are conducted within each process phase share common characteristics. We claim that ethical reflection can be thought of as an integrative part of strategic management – either explicitly or implicitly. Michael Behnam received his PhD from the University of Frankfurt, Germany. He is an Associate Professor of Management at the Sawyer Business School, Suffolk University, Boston, USA. Prior to this he was the Head of the Department of International Management at the European Business School, Germany. His research has been published in Journal of Business Ethics, Journal of International Business and Economy as well as in German top-tier outlets. He authored or co-authored numerous book chapters as well as three books, most recently the 7th edition of a textbook on Strategic Management. His research areas are Strategic Management, International Management and Business Ethics. Andreas Rasche received his PhD from European Business School, Germany and is currently Assistant Professor for Business Ethics at Helmut-Schmidt-University, University of the Federal Armed Forces in Hamburg, Germany. He has published articles in the Journal of Business Ethics, Business Ethics Quarterly and authored numerous book chapters on international accountability standards. He has gained working experience at the United Nations in Washington D.C. and New York and works closely with the United Nations Global Compact Office. His research interests and publications focus on the process of standardization in the field of CSR and the adoption of standards by corporations. More information is available under: http://www.arasche.com     

Responsibility and moral reasoning: A study in Business Ethics

This essay was written for the 1984 General Motors Intercollegiate Business Understanding Program. It consists of three sections, each responding to a separate issue posed by General Motors. The opinions expressed are not those of the General Motors management.The first section attempts to document, through the use of Harvard Business Review articles, a shift in the notion of managerial responsibility from a narrowly focused role responsibility to a more widely focused moral responsibility.The second section explicates the different conceptions of Justice behind the United States and West German economic systems. It gives examples of the consequences of the different conceptions both in methods of policy formation and results.The third section deals with business ethics in international contexts. It argues that law is by itself inadequate in the regulation of business activity and must be supplemented by public discussion, which employs the traditional methods of moral reasoning.John Davis Feldmann, John Kelsay, and Hugh E. Brown III are or have been graduate students in the Department of Religious Studies at the University of Virginia. Their essay, written under the direction of James F. Childress, Edwin B. Kyle Professor of Christian Ethics, won first prize in the 1984 General Motors Intercollegiate Business Understanding Program.John D. Feldmann, currently writing a dissertation on justice and tax reform, holds a law degree from the University of Virginia. He has practiced business law, served as a Vice-President of a banking corporation, and worked for the Center for Applied Ethics at the University of Virginia's Darden Graduate School of Business Administration.John Kelsay, an ordained minister of the Presbyterian Church U.S.A., holds a Ph.D. in Religious Ethics from the University of Virginia and has been serving as an Instructor there. His dissertation dealt with ethics and society in Islam.Hugh E. Brown III, now preparing for the Episcopal ministry at Virginia Theological Seminary, holds an M.A. in Religious Ethics from the University of Virginia. Prior to entering graduate school, he had experience in business as a supervisor for an AT&T affiliate.     

Assessing the application of cognitive moral development theory to business ethics

Cognitive moral development (CMD) theory has been accepted as a construct to help explain business ethics, social responsibility and other organizational phenomena. This article critically assesses CMD as a construct in business ethics by presenting the history and criticisms of CMD. The value of CMD is evaluated and problems with using CMD as one predictor of ethical decisions are addressed. Researchers are made aware of the major criticisms of CMD theory including disguised value judgments, invariance of stages, and gender bias in the initial scale development. Implications for business ethics research are discussed and opportunities for future research delineated.John Fraedrich is an Assistant Professor of Marketing at Southern Illinois University of Carbondale. His areas of interest include ethical decision making and international marketing. He has published inJournal of Macromarketing, Journal of Business Ethics, Journal of Academy of Marketing Science, Journal of Business Research, Journal of Marketing Management, International Journal of Value Based Management, andJournal of International Consumer Marketing. Dr. Fraedrich is co-author of a textbookBusiness Ethics: Ethical Decision Making and Cases, Second Edition.Debbie M. Thorne is an Assistant Professor of Marketing at the University of Tampa. Her areas of interest include business ethics, social network analysis, and cultural issues in organizations. She received a Ph.D. in 1993 and has published in theJournal of Teaching in International Business and numerous conference proceedings.O. C. Ferrell is Interim Dean and Distinguished Professor of Marketing and Business Ethics in the Fogelman College of Business and Economics at Memphis State University. Dr. Ferrell was chairman of the American Marketing Association Ethics Committee that developed the current AMA Code of Ethics. He has published articles on business ethics in theJournal of Marketing, Journal of Marketing Research, Journal of Business Research, Journal of Macromarketing, Human Relations, Journal of Business Ethics, as well as others. He has co-authored ten textbooks includingBusiness Ethics: Ethical Decision Making and Cases, Second Edition, and a tradebook,In Pursuit of Ethics.     

Corporate governance predictors of adoption of anti-takeover amendments: An empirical analysis

This study of 481 corporations provides an assessment of the relationship between several corporate governance variables (board composition, type of board leadership, officer and director stock holdings, institutional stock holdings, number of majority owners, existence of severance agreements) and adoption of anti-takeover amendments. The results of analysis suggest that the two groups (adopters/non-adopters) differ significantly in regards to these variables.Paula L. Rechner is an Assistant Professor at the University of Houston. She received her Ph.D., her research interests include corporate governance and executive succession/compensation. Her articles have appeared inAcademy of Management Journal, Strategic Management Journal, Academy of Management Executive, andOrganizational Behavior and Human Decision Processes, among others.Chamu Sundaramurthy, an Assistant Professor of Management at the University of Kentucky, is interested in corporate governance. Her dissertation examines board governance within the context of antitakeover corporate charter amendments adopted between 1984–1988. Her other research interests include executive succession and corporate social responsibility.Dan R. Dalton is the Dow Professor of Management and Director of Graduate Programs, Graduate School of Business, Indiana University. Formerly with General Telephone & Electronics (GT&E) for thirteen years, he received his Ph.D. from the University of California. Widely published in business and psychology, his articles have appeared in theAcademy of Management Journal, Academy of Management Review, Administrative Science Quarterly, Journal of Applied Psychology, Journal of Business Ethics, Strategic Management Journal, Journal of Business Strategy, Behavioral Science, andHuman Relations, as well as many others.     

On the relationship of hope and gratitude to corporate social responsibility

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

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).     

What's wrong with the treadway commission report? Experimental analyses of the effects of personal values and codes of conduct on fraudulent financial reporting

In three studies, factors influencing the incidence of fraudulent financial reporting were assessed. We examined (1) the effects of personal values and (2) codes of corporate conduct, on whether managers misrepresented financial reports. In these studies, executives and controllers were asked to respond to hypothetical situations involving fraudulent financial reporting procedures. The occurrence of fraudulent reporting was found to be high; however, neither personal values, codes of conduct, nor the interaction of the two factors played a significant role in fraudulent financial reporting.Arthur P. Brief is the Lawrence Martin Chair of Business at Tulane University where he also is the Director of The William B. and Evelyn Burkenroad Institute for the Study of Ethics and Leadership in Management as well as, by courtesy, Professor of Psychology.Janet M. Dukerich is an Associate Professor of Management in the College of Business Administration at The University of Texas at Austin.Paul M. Brown is an Associate Professor of Accounting in the Stern School of Business at New York University.Joan F. Brett is an Assistant Professor of Organizational Behavior in the Edwin L. Cox School of Business at Southern Methodist University.     

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.     

Restorying a Culture of Ethical and Spiritual Values: A Role for Leader Storytelling

In this paper, we outline some of the connections between the literatures of organizational storytelling, spirituality in the workplace, organizational culture, and authentic leadership. We suggest that leader storytelling that integrates a moral and spiritual component can transform an organizational culture so members of the organization begin to feel connected to a larger community and a higher purpose. We specifically discuss how leader role modeling in authentic storytelling is essential in developing an ethically and spiritually based organizational culture. However, we also acknowledge a potential dark side to leader storytelling. Implications for authentic storytelling research and practice are discussed. An early draft of this paper was presented at the 2004 Academy of Management Conference in New Orleans. Cathy Driscoll received her Ph.D. in organizational behavior and marketing from Queen's University in 1994. Currently, she is an associate professor in the Department of Management in the Sobey School of Business at Saint Mary's University. Prior to coming to SMU, she worked as a project manager and policy advisor with the National Round Table on the Environment and the Economy in Ottawa. She has published articles in The Journal of Business Ethics and Business and Society. Margaret McKee is in her fourth year of doctoral studies at the Sobey School of Business. She was recently awarded a two year Doctoral Fellowship from the Social Sciences and Humanities Research Council of Canada (SSHRC) to conduct her dissertation research. She has taught a variety of management and communications courses at Mount Saint Vincent, Sobey School of Business, and Dalhousie University. Her research interests are leadership and values based organizational cultures.