A Phase-wise Development Approach to Business Excellence: Towards an Innovative,Stakeholder-oriented Assessment Tool for Organizational Excellence and CSR

The European Corporate Sustainability Framework (ECSF) is, among other concepts, based on a phase-wise development approach as described by Clare Graves' Levels of Existence Theory. As much as corporate sustainability has a sequence of adequate interpretations, aligned with each development level, also the notion of business excellence can be defined at multiple levels, as this paper demonstrates. Furthermore, the authors analyze the current EFQM Excellence Model for particular biases towards various development levels and suggest a new and innovative two-step approach to assessing organizational performance with respect to organizational excellence (OE) and corporate sustainability. According to the organization's ambition, the assessment is either limited to a shareholder approach, mainly focusing at optimal usage of resources, or it also includes an additional assessment format based on the stakeholder approach, with specific reference to the organization's performance on the financial, social and ecological bottom line. This paper demonstrates the need and feasibility of an EFQM-Based assessment tool with a combined focus on corporate sustainability and OE.     

Does it Pay to Be Ethical? Examining the Relationship Between Organisations’ Ethical Culture and Innovativeness

In this article, we examine the relationship between ethical organisational culture and organisational innovativeness. A quantitative empirical analysis is based on a survey of a total of 719 respondents from all levels of three Finnish organisations, both general staff and managers. The organisations belong to both the private and public sectors. The results of this study show that organisations’ ethical culture is associated with their organisational innovativeness, and that different dimensions of ethical culture are associated with different dimensions of organisational innovativeness. The ethical culture of the organisation had a specific role in process and behavioural innovativeness. It was found that congruency of management was the single dimension with the highest effect on organisational innovativeness overall and specifically on process and behavioural innovativeness. These findings suggest that when organisations are aiming for specific outcomes, such as organisational innovativeness, they need to be aware of what dimensions of ethical culture are particularly relevant.     

A comparative study of quality awards: evolving criteria and research

The purpose of this study is to compare several prominent quality awards based on their common criteria. Six best-known quality awards were used and analyzed to identify common quality award criteria. Trends of research on Malcolm Baldrige National Quality Award (MBNQA) and European Foundation for Quality Management (EFQM) Excellence Award were examined along with award recipients. The results of the study showed that the portion of manufacturing MBNQA winners has decreased steadily during recent years, while the portion of manufacturing firms in EFQM award winners remained steady for the time period studied. Also, health care and education related studies have increased steadily for both quality awards and now become most commonly studied quality award areas. Quality awards criteria appear to change continuously, reflecting the new demands of the changing market environment.     

Corporate codes of ethics: necessary but not sufficient

While most large companies around the world now have a code of ethics, reported ethical malpractice among some of these does not appear to be abating. The reasons for this are explored, using academic studies, survey reports as well as insights gained from the Institute of Business Ethics' work with large corporations. These indicate that there is a gap between the existence of explicit ethical values and principles, often expressed in the form of a code, and the attitudes and behaviour of the organisation. The paper suggests that two basic reasons appear to be at the heart of the problem: ineffective ethics programmes and deficiencies in corporate culture. The paper concludes that successfully embedded corporate ethical values requires well‐designed ethics policies, sustained ethical leadership and incorporation of ethics in organisational processes and strategy as part of an ethical culture at all levels of the organisation. It makes some practical suggestions on how this can be achieved.     

Excellence in Canada: Healthy Organizations – Achieve Results by Acting Responsibly

There is much public focus in North America today on issues of corporate governance and ethics due mainly to the malpractice of several high profile corporate leaders and the negative impact of this on their corporation's stakeholders, employees and communities. This has caused a crisis of trust in the public and lead to much discussion on ways to prevent such unethical behavior by adopting new approaches through legislation and the structure of corporations. This article is not about introducing a new approach to corporate ethics and governance as there is much change already taking place. The National Quality Institute (NQI) in Canada offers a demonstrated and proven way, through the application of the Excellence Frameworks, of providing for good corporate guidance and ethical leadership practices. Organizations, which adopt a strategic focus on Excellence, attain great results and become healthy organizations, as their leaders understand the dynamic relationship and the balance that exists between employees, customers, and stakeholders. These organizations build trust by acting responsibly. NQI works with many organizations in Canada that have a strategic leadership focus on organizational excellence utilizing the criteria in the NQI Canadian Excellence Frameworks for Quality and for Healthy Workplace. Organizations that take an integrated approach to Excellence also perform well in such areas as corporate social responsibility, employee health and customer satisfaction. This article has specific references to three organizations that have achieved Canada's prime recognition the Canada Awards for Excellence (CAE).     

Social responsibility in the marketplace: asymmetric information in food labelling

This paper takes as its focus the adoption by the Co-operative Wholesale Society of what appears to be a socially responsible stance on food labelling practice and policy through the publication of a public report and a proposed code of practice. The central issue in the debate surrounding labelling is the question of ‘asymmetric information’ (when one party knows more about a product than the other). In order to function, markets need perfect information. The existence of asymmetric information gives rise to ‘market failure’ which prevents the ‘free market’ from functioning according to the laissez faire model. It can be argued that regulation will overcome this problem. However, this paper counters this argument on several grounds. In the first part of the paper labelling is examined as a textual construction, and ethical dimensions are revealed through an awareness of discourse and signification, which gives rise to a view of packaging as a version of reality partially built through connotation and association. The second part of the paper examines political and regulatory concerns. Marketing and economic theories are discussed in terms of their impact upon ethical issues in food labelling. Sense is made of various arguments about the policy and practice of food regulation – particularly in the wake of the James Report calling for the establishment of a Food Standards Agency. Tactics for resisting regulation are also examined. The paper analyses the role and motivation of the CWS in taking these steps. Consideration is given to the issue of where responsibility for information giving and public health education might lie, and what phenomena act as barriers to increased public awareness and action on dietary matters. Finally the debate over food labelling is used as an example of why it is problematic (and possibly unethical) to promote the free market model as the only sensible alternative to other modes of economic organisation.     

An Examination of Ethical Influences on the Work of Tax Practitioners

As a contribution to the continuing debate about tax practitioner ethics, this paper explores the main streams of Western ethical thought that are relevant to tax practitioners’ work, most typically deontology and consequentialism (although virtue ethics and distributive justice are also considered). It then goes on to consider the impact of such ethical influences on the professional ethical codes of conduct that govern tax practitioners’ work (with specific reference to the UK and Ireland), and attempts to unravel the complex work and ethical environment of the practice of tax in terms of tax compliance and tax avoidance. The paper then examines the prior studies on tax practitioners and ethics and the type of dilemmas that practitioners face in the context of their work. The paper proceeds to examine empirically the extent to which tax practitioners take a consequentialist versus a deontological approach in their reasoning about moral dilemmas. This is carried out by an innovative use of the Defining Issues Test.     

The Relationship between Unethical Behavior and the Dimensions of the Ethical Climate Questionnaire

This study examined the relationship between unethical employee behavior and the dimensions of the Ethical Climate Questionnaire (ECQ). In order to explore the relationship between the dimensions of the ECQ and unethical behavior, the factor structure of five previously identified empirical models and the hypothesized nine-dimension model for the ECQ was tested with a confirmatory factor analysis. The analysis revealed that the hypothesized nine-dimension model provided as good or even better fit to the data than the five empirically derived models. Therefore, the nine-dimensional model was used to examine the criterion-related validity of the ECQ. The results demonstrated that the nine ethical climate dimensions were correlated with some of the unethical behaviors examined in this study, but not others. However, the results clearly demonstrated that most of the ethical climate dimensions were significantly related to an aggregate measure of unethical behavior. It was suggested that these results might account for the differences in previous studies on the criterion-related validity of the ECQ. The results also replicated a previous report that the association between unethical behavior and ethical climate is stronger in organizations that do not have a code of ethics. Finally, a difference was observed in the ethical climates for organizations with a code of ethics and organizations without a code of ethics.     

Modeling Ethical Business Culture: Development of the Ethical Business Culture Survey and Its Use to Validate the CEBC Model of Ethical Business Culture

This article reports the results of research to develop a survey instrument and its use to validate an ethical business culture construct (CEBC Model). The reported three-stage quantitative study builds on our previous qualitative work, aimed at identifying dimensions of ethical business cultures. The research resulted in a parsimonious construct, covering five dimensions of ethical business cultures, and a ten-question instrument, measuring this construct. In this article, we report results of exploratory and confirmatory factor analyses and convergent construct validity testing, discuss the potential applications of the construct and instrument in assessment and development of ethical business cultures, and provide recommendations for industry practitioners and for further research.     

The Question of Ethical Hypocrisy in Human Resource Management in the U.K. and Irish Charity Sectors

Whilst there is a growing volume of literature exploring the ethical implications of organisational change for HRM and the ethical aspects of certain HRM activities, there have been few published U.K. studies of how HR managers actually behave when faced with ethical dilemmas in their work. This paper seeks to enhance the foundations of such knowledge through an examination of the influence of organisational values on the ethical behaviour of Human Resource Managers within a sample of charities in the U.K. and the Republic of Ireland. A qualitative research design is adopted utilising semi-structured interviews. Findings highlight ethical inconsistency in people management in the charity sector arising from the clear application of strong and explicit organisational values to external client groups but their limited influence on people management strategies and practices within the organisation. Many of the ethical issues faced by HRM professionals in both countries arise from this inconsistency. In their handling of ethical dilemmas, the HRM professionals exhibit a combination of a care ethic and a concern for justice but it is also clear that in situations of management intransigence, a desire to be conscience driven often gives way to a contingent approach. Whilst respondents considered it inappropriate for the HRM function to be the conscience of the organisation, it is seen to have a key role in providing management with advice on ethical action. However, the ability of HRM to influence ethical behaviour is highly dependent on the status of the function within the organisation.     

Giving Voice in a Culture of Silence. From a Culture of Compliance to a Culture of Integrity

This article argues that attempting to overcome moral silence in organizations will require management to move beyond a compliance-oriented organizational culture toward a culture based on integrity. Such cultural change is part of good corporate governance that aims to steer an organization to enhance creativity and moral excellence, and thus organizational value. Governance mechanisms can be either formal or informal. Formal codes and other internal formal regulations that emphasize compliance are necessary, although informal mechanisms that are based on relationship-building are more likely to achieve moral excellence. Such a shift can be viewed as a transformative strategy for overcoming the destructive side effects and business risks of the tendency within corporate cultures to remain mute when faced with issues that violate personal or corporate values. Genuine dialogues and appropriate ethical decision-making training can deepen the understanding and create a mindful awareness (of ethical values) and induce trust that embrace both complying with rules and regulations, as well as inciting creative “ethical innovation” with respect to human interaction in multinational companies.     

A crisis of leadership: towards an anti-sovereign ethics of organisation

A common reaction to crises experienced within or brought about by business is to identify a corollary ‘crisis of leadership’ and to call for better (stronger, more thoughtful or, indeed, more ethical and responsible) leaders. This paper supports the idea that there is a crisis of leadership – but interprets it quite differently. Specifically, I argue that the most ethically debilitating crisis is the fact that we look to leadership to solve organisational ethical ills. There is, I argue, a pressing need to conceptualise a business ethics that is not constrained by the straitjacket of official hierarchy – a need to denaturalise ‘leadership’ as the normal or rightful locus of ethical regulation and renewal in business organisation. To this end, I explore a Levinasian ethico-politics of responsibility and proximity as the basis of an alternative, anti-sovereign, ethics of organisation.     

Ethics Programs and Ethical Culture: A Next Step in Unraveling Their Multi-Faceted Relationship

One of the main objectives of an ethics program is to improve the ethical culture of an organization. To date, empirical research treats at least one of these concepts as a one-dimensional construct. This paper demonstrates that by conceptualizing both constructs as multi-dimensional, a more in-depth understanding of the relationship between the two concepts can be achieved. Through the employment of the Corporate Ethical Virtues Model, eight dimensions of ethical culture are distinguished. Nine components of an ethics program are identified. To assess the relationship between ethics programs and ethical culture, a survey was conducted of 4,056 members of the U.S. working population. The results show that the relationships between the components of an ethics program and the dimensions of ethical culture differ in strength, nature, and significance. Implications for research and practice are discussed.     

Ethics of Du Pont's CFC Strategy 1975–1995

The ethics of Du Pont's CFC strategy from 1975 to 1995 are analyzed using a Potter's Box framework. This approach includes an examination of relevant facts, prioritization of stakeholder loyalties, selection of a mode of ethical reasoning, and a world view. Du Pont's approach to ethical reasoning reflects changing facts and changing interpretation of the facts, a focus on shareholders as the primary and most important stakeholder, and ends-based reasoning, which views creating shareholder value as the primary end. An alternative approach is proposed, based on analysis of Du Pont's and stakeholders' needs.     

The ethics of impression management

There are differences among forms of impression management that are relevant to its ethical evaluation. Sometimes, moral appraisal is to do with impression management as a tactic of influence, but not about deception. In other cases, an audience is given a true or a false impression, and ethical questions of deception arise, but they are made more complex by the need to consider the responsibility of an audience in reaching its conclusions. Cases where that is an issue blend into a third category in which impression management is joint social performance. Such cases raise additional possibilities of the problematic influence of one agent by another, but also begin to move ethical concerns from the behaviour of an individual agent to the social practices that sustain their expectations. Such social practices invite ethical appraisal because they may impose constraints. But they may also provide opportunities for achievement and pursuit of excellence.     

Ethical Organisational Culture as a Context for Managers’ Personal Work Goals

The aims of this study were to investigate what kinds of personal work goals managers have and whether ethical organisational culture is related to these goals. The sample consisted of 811 Finnish managers from different organisations, in middle and upper management levels, aged 25–68 years. Eight work-related goal content categories were found based on the managers self-reported goals: (1) organisational goals (35.4 %), (2) competence goals (26.1 %), (3) well-being goals (12.1 %), (4) career-ending goals (7.3 %), (5) progression goals (6.8 %), (6) prestige/influence goals (4.2 %), (7) job change goals (4.2 %) and (8) employment contract goals (3.9 %). Ethical organisational culture operated as a context for personal goal setting: Those managers who evaluated their organisational culture as more ethical were more likely to report organisational goals (e.g. goals toward the success or performance of the organisation). However, if managers gave lower ratings regarding ethical culture, then they named job change and career-ending goals in more cases. Therefore, investing into ethical virtues of the organisational culture can promote managers’ personal work goals, which also benefit the organisation.     

Approaching virtuousness through organizational ethical quality: toward a moral corporate social responsibility

Today, in both theory and practice, the concepts of corporate social responsibility (CSR) and ethics are not necessarily related. Organizations can demonstrate high levels of social proactivity in their CSR policies with or without having laudable levels of ethical quality or virtuousness. This article introduces the concepts of organizational ethical quality (OEQ) to evaluate the moral excellence of CSR actions and policies, identifying and categorizing varying levels ranging from the absence of ethical virtuousness, termed immoral CSR (ICSR), to high levels of moral CSR (MCSR), or ethical virtuousness. High MCSR is the product of both high levels of OEQ in conjunction with more proactive CSR policies based on social action.     

The Ethical Dimensions of Decision Processes of Employees

The influence of stakeholders, organisational commitment, personal values, goals of the organisation and socio-demographic characteristics of individuals on the ethical dimension of behavioural intentions of employees in various organisations are investigated. The research results show that employees working for the public sector or in educational institutions take more ethical aspects into account than employees working in the "private" sector. The influence of stakeholders and organisational commitment do not significantly affect the ethical behaviour of employees, and only some personal values and goals of the organisation have a significant influence on ethical behaviour. The most significant explanatory factor of ethical decision making seems to be what may be called "stage in the career of the employee": "ethical" employees can be described as young, with a relatively low income, limited work experience and a low level of responsibility in the company.