The ethical dilemmas of university-industry collaborations

This article examines the ethical dilemmas that can occur due to university and industry cooperative arrangements. The values that Conant (1952) and Merton (1942) ascribed to university science are used as a measure of the evolving university-industry relations in the 1980s. Examples of the types of relations being forged are discussed and possible conflicts of interest are explored. The author argues that the goals of the university are and must remain different from those of industry for the good of the entire society. The transformation of the university into a research institution for industry could result in the university not adequately training the scientists of tomorrow, and simultaneously, not discharging its duty to do basic research as it focuses on the more applied research that industry desires and funds. Martin Kenney is Assistant Professor at the Department of Agricultural Economics and Rural Sociology at the Ohio State University. He is the author of several articles on biotechnology, published in various journals and Biotechnology: The University-Industry Complex (Yale University Press, 1986).     

Some ethical dilemmas of modern banking

How ethical have recent banking practices been? We answer this question via an economic analysis. We assess the two dominant practices of the modern banking system – fractional reserves and maturity transformation – by gauging the respective rights of the relevant parties. By distinguishing the legal and economic differences between deposit and loan contracts, we determine that the practice of maturity transformation (in its various guises) is not only ethical but also serves a positive social function. The foundation of the modern banking system – the holding of fractional reserves against deposits – is, however, problematic from economic, legal and ethical perspectives. Starting from a microanalysis of money's function, a reassessment of the current laws concerning the practice is encouraged, with the aim not only to rectify economic irregularities but also to realign depositors' rights with the obligations of the banking sector.     

The effects of professional education on values and the resolution of ethical dilemmas: Business school vs. law school students

Prior research on the impact of ethics education within the business curriculum has yielded mixed results. Although the impact is often found to be positive, it appears to be both small and short-lived. Interpretation of these results, however, is subject to important methodological limitations. The present research employed a longitudinal methodology to evaluate the impact of an M.B.A. program versus a law program on the values and ethical decision making behavior of a cohort of students at two major universities in the northeast. The results suggest that the M.B.A. curriculum remains a value-neutral experience for most students. In contrast, the law school program had a significant impact on both values and ethical decision making.Donald L. McCabe is Associate Professor of Management at the Graduate School of Management, Rutgers — The State University of New Jersey. His research focuses on ethical decision making, interpretive processes under conditions of uncertainty, and issues of student values and ethics.Janet M. Dukerich is an Associate Professor of Management at the University of Texas at Austin. Her research focuses on individual and group decision making and interpretation processes in organizations.Jane E. Dutton is Associate Professor of Organizational Behavior and Human Resource Management at the University of Michigan. Her research interests center on organizational adaptation processes, and in particular, organizational responses to value-laden issues.     

Confidentiality decisions: The reasoning process of CPAS in resolving ethical dilemmas

As in other professions, such as law and medicine, accounting has a Code of Professional Conduct (Code) that members are expected to abide by. In today's legalistic society, however, the question of “what is the right thing to do,” is often confused with “what is legal?” In many instances, this may present a conflict between adhering to the Code and doing what some may perceive as proper ethical behavior. This paper examines (1) the reasoning process that CPAs use in resolving ethical issues related to confidentiality; and, (2) whether or not there is a perceived conflict in adhering to the Code and the moral values of some CPAs. The results indicate that although most CPAs sampled resolve ethical issues in accordance with the Code, such decisions do not always reflect their belief of what is morally right. Although the results are useful in understanding how some CPAs reason in making moral choices involving confidentiality decisions, care should be exercised in drawing further inferences from this study due to the limited sample size.     

A critique of Western philosophical ethics: Multidisciplinary alternatives for framing ethical dilemmas

American discourse in business ethics is steeped in the traditional ethical theories of Western philosophies, specifically the Greek classics, Kant, and the British Utilitarians. These theories may be largely uninterpretable or unacceptable to non-Western populations owing to different traditions, religious beliefs, or cultural histories. As economic boundaries collapse and markets become more global in scope, traditional Western ethical thought may lead to clashes among Western organizations and companies from differing cultural settings. Such clashes could lead to alienation of foreign customers, firms and governments and resultant competitive disadvantage, or to an abandonment of ethical considerations altogether in the struggle to compete internationally. This paper puts forward two general alternatives to Western ethical philosophies as useful frameworks for the analysis of international ethical dilemmas. The first alternative uses new organizational economics, while the second emphasizes role relationships and organizational citizenship.William B. Carlin passed away on Thursday, March 3, 1994 in Louisville, Colorado, after this article was accepted but prior to its publication. Bill was a Ph.D. candidate at the University of Colorado and a faculty member at the University of Denver at the time of his death. His friends, family, and colleagues will miss him very much.Kelly Strong is currently an assistant professor of management at Illinois State University. He has written in the areas of corporate social responsibility and ethical decision-making. He teaches strategic management at Illinois State University.     

Utility of advertising for creativity education: an experimental study targeting school children

This study investigated whether the Advertising-In-Education (hereafter AIE) program would influence the growth of creativity in elementary school students. AIE has been discussed by advertising scholars and used in some schools in South Korea since its inception approximately 10 years ago; yet, empirical research to prove its effect on education is rare. A field experiment using a pilot AIE program was implemented with third and fourth graders at two local elementary schools for 12 weeks. To measure the degree and significance of improvement in students' creative ability and creative personality, a series of pretests and posttests were administered using creativity measuring instruments. Results indicate that the AIE program has been effective in enhancing both creative ability and creative personality of elementary school students. Based on these results, several important implications were discussed and some directions for further research were suggested.     

A $10 million question and other cybersecurity-related ethical dilemmas amid the COVID-19 pandemic

Cybercrime and cybersecurity are like two sides of the same coin: They are opposites but cannot exist without each other. Their mutual relation generates a myriad of ethical issues, ranging from minor to vital. The rapid development of technology will surely involve even more ethical concerns, like the infamous example of a fitness tracking company allegedly paying $10 million worth of ransom. Every cybersecurity solution, tool, or practice has to be ethical by design if it is to protect people and their rights. To identify the ethical issues that cybersecurity/cybercrime might bring about in the future, we conducted the first broad and comprehensive horizon-scanning study since the COVID-19 pandemic arose. As we began this project, nobody had the slightest idea that the coming months would bring the COVID-19 pandemic, and that the reality we had known was about to change dramatically. As it soon became apparent, the deadly coronavirus brought completely new cybersecurity/cybercrime ethical dilemmas to light, and some of the ones known before were transformed or shifted. This article presents the results of our horizon-scanning study concerning the ethical dilemmas that emerged amid the COVID-19 pandemic.     

Common good leadership in business management: an ethical model from the Indian tradition

While dominant management thinking is steered by profit maximisation, this paper proposes that sustained organisational growth can best be stimulated by attention to the common good and the capacity of corporate leaders to create commitment to the common good. The leadership thinking of Kautilya and Ashoka embodies this principle. Both offer a common good approach, emphasising the leader's moral and legal responsibility for people's welfare, the robust interaction between the business community and the state, and the importance of moral training of leaders in identifying and promoting the common good. We argue that the complex process of re‐orientating corporate priorities towards the common good requires alertness and concerted effort if both business and society are to truly benefit. As Ashoka said: ‘A good deed is a difficult thing’.     

The ethical implications of corporate records management practices and some suggested ethical values for decisions

While the ethical implications of corporate actions have received increasing attention, one important area overlooked by both researchers and corporate codes of ethics is the significant ethical implications of corporate records management practices. This article discusses the operational and strategic purposes of modern corporate records management programs—including scorched earth programs which seek to reduce exposure to potential liability by eliminating documentary evidence from corporate files that could be used to establish culpability in future governmental investigations or in litigation by persons injured by corporate actions. As a first step toward developing relevant ethical guidelines and decision criteria for socially-responsible records management practices, the ethical values of freedom of choice and avoidance of harm are applied to various corporate decisions as to (1) which information should be retained as records and for how long, (2) subsequent disclosure or non-disclosure of that information and to whom, and (3) decisions as to when information in corporate records may properly be destroyed. John C. Ruhnka, Associate Professor of Legal Environment and Management at the University of Colorado at Denver, has written extensively on corporate obligations to disclose material adverse events and preliminary merger negotiations in the Harvard Business Review and Securities Regulation Law Journal. He has also written on design considerations for records management programs and legal and regulatory retention requirements that apply to business records in a series of articles in the Corporate Confidentiality and Disclosure Letter. Dr. Steven Weller is on the faculty of The National Judicial College in Reno, Nevada, and has written extensively on problems of court process and organizational behavior. He has previously written on The Effectiveness of Corporate Codes of Ethics in the Journal of Business Ethics.     

Standards of ethical conduct for management accountants

The Standards of Ethical Conduct for Management Accountants (Statement 1C) promulgated by the National Association of Accountants on June 1, 1983, are described and critiqued in this article. Four major issues related to the issuance of the standards are discussed: (1) What are the basic requirements of any ethical system? Does Statement IC meet these requirements? (2) Should a professional be ethical? (3) If ethical behavior is desirable for management accountants, should such standards be formally expressed in writing? (4) If the standards are expressed in writing, what format should be adopted for the content and how should the standards be expressed?     

Epistemological and ethical considerations in conceptualizing and implementing human resource management

As an example of applied social science, the field of human resource management is used to show that ethical problems are not only those of carrying out research, of professional conduct, and of the distribution fairness of social science knowledge. A largely overlooked ethical issue is also the implicit choices that are made as an integral part of research and implementation. First, an analysis is undertaken of the implicit assumptions, values and goals that derive from the conception of human problems in work organizations as managing human resources. Secondly, it is argued that such a conception is in fact a socially constructed reality with real consequences and not a reflection of objective states of human and social nature with which we have to live. Thirdly, to the extent that our implicit assumptions are in part based upon conceptual choices that are made by individuals or as a collective act of a discipline or work organization, the development of an ethical framework that could guide such choices becomes a crucial challenge for business ethics.H. Peter Dachler currently holds the chair for organizational psychology at the University of St. Gall, Switzerland. He received his graduate training in industrial/organizational psychology at the University of Illinois at Urbana and subsequently taught in the Department of Psychology at the University of Maryland, College Park. He was a fellow for two years at the International Institute of Management in the Science Center, Berlin, and is on the editorial boards of various international and American scientific journals. He has published mainly in the areas of motivation, leadership, organization theory, and the theoretical and practical implications of a constructionist epistemology for employee assessment, participation and leadership. Georges Enderle is a senior lecturer for business ethics at the University of St. Gall, Switzerland. Since 1983 he has been Director of the Institute for Business Ethics. He is the author of Sicherung des Existenzminimums im nationalen und internationalen Kontext — eine wirtschaftsethische Studie [Securing the minimal standard of living in the national and international context: A business ethics perspective]. He has written various articles on business ethics.     

Cross-cultural reliability and validity of a scale to measure firm entrepreneurial orientation

This study presents a foreign language version of a popular scale for measuring entrepreneurship and tests the instrument's utility in cross-cultural settings as a means of validating it for use abroad. Entrepreneurship refers to the pursuit of creative or novel solutions to challenges confronting the firm, including the development or enhancement of products and services, as well as new administrative techniques and technologies for performing organizational functions. Entrepreneurship is a fundamental posture, instrumentally important to strategic innovation, particularly under shifting conditions in the firm's external environment, and is applicable to any firm, regardless of its size and type. Scholars note that entrepreneurial activity is critical because it stimulates superior performance and may well be the key fundamental element in the procurement of advantages relative to competitors.Researchers have developed a popular scale for measuring entrepreneurship at the firm level, which has been found to be highly valid and reliable. This scale (the “ENTRESCALE”) examines eight items reflecting the innovative and proactive disposition of management at a given firm. However, as the ENTRESCALE's measurement properties have never been comprehensively assessed in a cross-cultural setting, the instrument lacks strong evidence of international validity and reliability. Accordingly, the cross-cultural correspondence between the ENTRESCALE and the construct it is supposed to measure is unknown, as is the extent of its utility to international practitioners. This situation reflects a problem common to measuring instruments developed in the United States and is particularly troublesome for scales intended to measure foreign phenomena of interest in international business. The researcher who assumes that a scale developed at home will function with equal efficacy abroad is most likely asking for trouble. There is a risk that such assumptions will lead to invalid inferences, an outcome potentially disastrous for the practitioner seeking to design appropriate strategies for international success.Sound measures of entrepreneurship are especially critical for managers attempting to understand the construct's cultural dynamic, at both the organizational and country levels, within subsidiaries, agencies, and other such entities presently representing or offering to represent the firm's interests abroad. By understanding the entrepreneurial dynamic in foreign settings, the multinational firm may be able to structure operations in ways that better suit existing local conditions and thereby avoid potentially adverse consequences. Further, it is useful to discern, by means of national studies, the entrepreneurial characteristics of management at firms, including existing or potential competitors, across entire countries.As a means of addressing this issue, this study seeks to test the measurement properties of the ENTRESCALE using samples of English- and French-speaking managers. Results indicate that the scale performs well in terms of both reliability and validity and possesses a unique factor structure. In concrete terms, this implies that the ENTRESCALE is suitable for measuring the entrepreneurship construct abroad. It is hoped that these results will: (1) contribute to improving future research endeavors of scholars studying the role of entrepreneurship in the increasingly global environment of business; (2) provide practitioners with a scale that can be used to measure the extent of entrepreneurial orientation among main operations, subsidiaries, and (potential) partner firms in foreign lands; and (3) raise the standard by which measuring instruments are designed and used for research in cross-cultural contexts.     

The construct validity of the Kinder,Lydenberg & Domini social performance ratings data

Carroll (1991) encouraged researchers in Social Issues Management (SIM) to continue to measure Corporate Social Performance (CSP) from a variety of different perspectives utilizing a variety of different measures. In addition, Wolfe and Aupperle (1991) (and others) have asserted that there is no, single best way to measure CSP and that multiple measures and perspectives help develop the field. However, Pfeffer (1993) suggest that a lack of consistent measurement has constrained organization studies (and by implication, the field of social issues management,) in its development as a field. It may be in the best interest of social issues management researchers to try to development a common body of measures and data. Recently, Kinder, Lydenberg and Domini & Co. (KLD — a social choice investment advisory firm) has made available their social performance database. The KLD data have potential to become a widely accepted set of CSP measures. The purpose of this paper is to present a construct validity study comparing the KLD data to other measures of CSP. Mark P. Sharfman is Assistant Professor of Strategic Management at the University of Oklahoma. His research interests are in corporate social performance, the firm/business environment relationship and measurement issues. He has published his research in the Academy of Management Review, Decision Sciences, Journal of Management and the Strategic Management Journal. He is a member the Academy of Management, International Association for Business and Society and Strategic Management Society.     

Reliability and validity of a short credit card attitude scale in British and American subjects

Short scales to measure affective, cognitive and behavioural attitudes toward credit cards developed from a longer scale were administered to respondents in Great Britain and the United States and found to be highly reliable and valid.     

The social and ethical alchemy: an integrative approach to social and ethical accountability

In recent years there has been an explosion of interest by companies in developing approaches to instill values in their decision-making processes and to manage and report on their social performance. The emerging field of social and ethical accounting, auditing and reporting (SEAAR) is characterised by considerable differentiation not only in terminology, but also in methodology and focus. This article aims to analyse the key conceptual and methodological differences between internally focussed approaches to SEAAR, dealing with ethics (behavioural) issues, and externally focussed approaches to SEAAR, dealing with social (stakeholder) issues.
In their discussion of the benefits and potential pitfalls of exclusively internally or externally focussed approaches the authors suggest two organisational metaphors as heuristics – the Cultish and the Chameleon organisation. The authors then propose an integrative approach to SEAAR which will overcome this dissonance and initiate a mutually reinforcing process that, in the long-term, can build both internal trust and cohesiveness and external credibility. The suggested approach is characterised as social and ethical alchemy since the aim is to achieve more than the sum of the two separate parts – a business ethics programme and a social reporting process – by creating leverage and synergy between the key components.     

Conflicting obligations,moral dilemmas and the development of judgement through business ethics education

Learning to address moral dilemmas is important for participants on courses in business ethics and corporate social responsibility (CSR). While modern, rule‐based ethical theory often provides the normative input here, this has faced criticism in its application. In response, post‐modern and Aristotelian perspectives have found favour. This paper follows a similar line, presenting an approach based initially on a critical interpretation of Ross's theory of prima facie duties, which emphasises moral judgement in actual situations. However, the retention of a modern element is suggested, with an invitation to hypothetically universalise detailed proposals for action, following Hare. This further step may reassure students/managers who seek additional closure in their decision‐making. Some pedagogical implications are also briefly raised regarding the use of case material and the need to recognise questions of social interaction and personal character as features of dilemma resolution in actual organisational contexts.     

Toward an understanding of ethical climate: Its relationship to ethical behavior and supervisory influence

In recent years, theoretical and empirical developments in the area of organizational climate has provided the impetus for research concerning ethical climate. According to this latter research, ethical climate is a multi-dimensional construct which is manifested in organizations. Studies, however, have not focused on the relationship between ethical climate and ethical behavior. Furthermore, an enhanced understanding of the multi-dimensionality of ethical climate will likely advance what we know about organizational climate and culture in general. We propose further examination of ethical climate by: (1) showing the conceptual relationship between ethical climate and ethical (or unethical) behavior in organizations; and (2) examining supervision as one of the principle influences on ethical climate and concomitant subordinate behavior. Finally, we explore the implications for future research on ethical climate.James C. Wimbush is Assistant Professor of Business Administration in the Department of Management at Indiana University, Bloomington. His current research is about ethical issues in human resources management.Jon M. Shepard is Head of the Department of Management at Virginia Polytechnic Institute and State University. His most recent publications include Egoistic and Ethical Orientations of University Students Toward Work-Related Decisions (Journal of Business Ethics). His current research interests include ethical climate and the accountability of institutions.     

Ethics from the top: top management and ethical business

Codes of ethics and conduct typically demand the highest standard of ethical behaviour from every single employee. This implies a democratic or lobbyist understanding of ethics in business. The contrasting view would argue that business ethics is an elitist undertaking that can only be instigated from the top, by managing directors or owner managers. This article looks at three types of ethical businesses, three types of approaches to ethical problem-solving, and three possible incentives for ethical business to see which of the above is more convincing. It will be argued that the impulse for value-driven business has to come from the top. Only top management and owner managers have the opportunity to foster major change in business practice.     

Scientific marketing management and the emergence of the ethical marketing concept

Abstract

Our objective in this paper is to recall the linkages between marketing and management thought. At the turn of the twentieth century, the two disciplines were connected via the work of Frederick Taylor and Percival White. As conventionally represented, Taylor was the father of scientific management and, by extension, the management sciences more generally. He is also frequently associated with a focus on production efficiency. However, a close reading of Taylor reveals his appreciation of the connection between production and consumption and thus the importance of the ultimate consumer. Taylor's ideas and the work, published in the Bulletin of the Taylor Society, which provided an outlet for the scholarship of early marketing thinkers, provide the linchpin between the production ethos of Taylor and the emergence of ‘scientific marketing’ exemplified in the work of Percival White. The latter demonstrated the ideological credibility of his scientific marketing system via its association with science and attributes such as objectivity. Importantly, in his work we find the first clear articulation of the marketing concept. Unlike present-day debates, which frequently treat it as a synonym for shareholder value, the early articulations of the marketing concept were underwritten by an explicit ethical orientation that placed limits on corporate behaviour, ideas that were again brought to prominence courtesy of the consumerist movement of the 1960s and 1970s.