How Ethical are U.S. Business Executives? A Study of Perceptions

Not much has been written about how the ethics of U.S. business executives are perceived by the American public, yet the perception of integrity is important to both businesses and their investors. This study examines the U.S. public’s perceptions of the ethics of American business executives using Gallup Poll data for the past thirty years. Organizations with unethical executives have trouble attracting investors, customers, and new managerial talent. They suffer lawsuits, market share deterioration, and often prison time for the once-revered leaders. This study also looked at the U.S.’s relative standing on the Corruption Perceptions Index and the Edelman Trust Barometer. Confidence in the ethics of the U.S. business executive remains fairly low on the Gallup Poll surveys and the U.S. has declined on the CPI and Edelman Trust Barometer.     

Business Executives’ Perceptions of Ethical Leadership and Its Development

This paper summarized the findings of a qualitative study that examines the perceptions of ethical leadership held by those who perceived themselves to be ethical leaders, and how life experiences shaped the values called upon when making ethical decisions. The experiences of 28 business executives were shared with the researcher, beginning with the recollection of a critical incident that detailed an ethical issue with which each executive had been involved. With the critical incident in mind, each executive told the personal story that explained the development of the values he or she called upon when resolving the ethical issue described. The stories were analyzed through the use of constant comparison, which resulted in the development of two models: (1) a framework for ethical leadership illuminating valued aspects of ethical leaderships and the value perspectives called upon when making ethical decisions, and (2) a model explaining how the executives’ ethical frameworks developed. The paper concludes with a brief discussion on virtue ethics, experiential learning, and human resource development.     

Internationalization Strategies of Business Schools: How Flat Is the World?

Business school strategy has become extremely complex, especially regarding internationalization. Using different paths, experiencing failure and success, business schools have internationalized, attracting many of the international students who contributed $27 billion¹ to the US economy in 2014. Some business schools are global, training global managers, while others serve national markets. How do business schools strategize about internationalization? Can we use existing models to explain this process? Are internationalization and globalization similar? Using a comparative analysis of six case studies in the United States and Europe, we found that the engine of internationalization influences its paths and outcomes. We contribute to international business (IB) research by discussing how business schools strategize their internationalization toward uniformity or diversity under isomorphic pressures from accreditation bodies (Association to Advance Collegiate Schools of Business [AACSB], 2011) and rankings. The so‐called Uppsala model should be extended to address three tensions: internationalization versus globalization, enacted dimensions of audiences, and respective risks of different internationalization pathways. © 2015 Wiley Periodicals, Inc.     

How Can Business Ethics Strengthen the Social Cohesion of a Society?

The essay aims to show how business ethics—understood as a three-level approach—can strengthen the social cohesion of a society, which is jeopardized today in many ways. In the first part, the purpose of business and the economy is explained as the creation of wealth defined as a combination of private and public wealth that includes natural, economic, human, and social capital. Special emphasis is placed on the implications of the creation of public wealth which requires institutions other than the market and motivations other than self-regarding ones. In the second part, the question of what holds a society together is discussed through different approaches: enlightened self-interest, a new game-theoretical approach, and the concept of the common good advanced by Catholic Social Teaching, followed by my own proposal. The third part presents several perspectives for business ethics to strengthen social cohesion of a society (a) by focusing on the purpose of business and the economy to create natural, economic, human, and social capital; (b) by advancing public goods that stand the test of ethical scrutiny; and (c) by securing human rights conceptualized as public goods.     

Is Guanxi Ethical? A Normative Analysis of Doing Business in China

This paper extends the discussion of guanxi beyond instrumental evaluations and advances a normative assessment of guanxi. Our discussion departs from previous analyses by not merely asking, “Does guanxi work?” but rather “Should corporations use guanxi?” The analysis begins with a review of traditional guanxi definitions and the changing economic and legal environment in China, both necessary precursors to understanding the role of guanxi in Chinese business transactions. This review leads us to suggest that there are distinct types of, and uses for guanxi. We identify the potentially problematic aspects of certain forms of guanxi from a normative perspective, noting among other things, the close association of particular types of guanxi with corruption and bribery. We conclude that there are many different forms of guanxi that may have distinct impacts on economic efficiency and the well-being of ordinary Chinese citizens. Consistent with Donaldson and Dunfee (1999), we advocate a particularistic analysis of the different forms of guanxi.     

How Focused are the World’s Top-Rated Business Schools on Educating Women for Global Management?

Persuaded by the observed positive link between the flow of appropriately skilled and trained female talent and female presence at the upper echelons of management (Plitch, Dow Jones Newswire February 9, 2005), this study has examined current trends on women’s uptake of graduate and executive education programs in the world’s top 100 business schools and explored the extent to which these business schools promote female studentship and career advancement. It contributes by providing pioneering research insight, albeit at an exploratory level, into the emerging best practice on this important aspect of business school behavior, an area which is bound to become increasingly appreciated as more global economic actors wise up to the significant diseconomies inherent in the under-utilization of female talent, particularly in the developing world. Among the study’s main findings are that female graduate students averaged 30% in the sample business schools, a figure not achieved by a majority of the elite schools, including some of the highest ranked. Only 10% of these business schools have a specialist center for developing women business leaders, and only a third offered women-focused programs or executive education courses, including flextime options. A higher, and increasing, percentage of business schools, however, reported offering fellowships, scholarships or bursaries to prospective female students, and having affiliations with pro-women external organizations and networks that typically facilitate career-promoting on-campus events and activities. The implications of the foregoing are discussed, replete with a call on key stakeholder groups to more actively embrace the challenge of improving the supply of appropriately trained female talent, or top management prospects. Future research ideas are also suggested.     

Have the Mobile Coupon Preferences of Millennials Changed?

ABSTRACT

In 2007, the authors delivered a web-based survey to a sampling frame of 18 to 30 year olds. Choice-based conjoint analysis was used to determine their local coupon preferences. The findings indicated that Millennials, in general, were resistant to receiving coupons for local businesses through their cell phones. In this article, the same survey was delivered to a sampling frame of Millennials in 2014. Choice-based conjoint analysis was again used to examine the couponing preferences of Millennials and statistical analysis was conducted to determine if these preferences have significantly changed over the last seven years.     

How Valuable are the Patents Behind Section 337 Cases?

A US patent protects the owner of the intellectual property from imitators producing in the US and foreign imitators selling in the US market. There are two venues for filing infringement cases against international infringement of US patents, with the International Trade Commission (ITC) using Section 337 of the Tariff Act of 1930 or with federal district courts. Three indicators of patent value suggest that patents litigated under Section 337 are on average more valuable; however, their values tend to be more variable. The latter suggests that some firms may be using Section 337 not for protection against international infringement of US patents but for protection against imports.     

Social Entrepreneurship and Business Ethics: Does Social Equal Ethical?

This editorial to the special issue addresses the often overlooked question of the ethical nature of social enterprises. The emerging social entrepreneurship literature has previously been dominated by enthusiasts who fail to critique the social enterprise, focusing instead on its distinction from economic entrepreneurship and potential in solving social problems. In this respect, we have found through the work presented herein that the relation between social entrepreneurship and ethics needs to be problematized. Further, we find that a range of conceptual lenses and methodological approaches is valuable as the social entrepreneurship field matures.     

Entering Guanxi: A Business Ethical Dilemma in Mainland China?

This paper represents an effort to distinguish between two types of guanxi prevalent in mainland China: favor-seeking guanxi that is culturally rooted and rent-seeking guanxi that is institutionally defined. Different rules of maneuvering the two types of guanxi are identified in light of Chinese cultural and business ethics. Strategies for entering guanxi in mainland China are also suggested.     

Virtue Ethics and the Practice–Institution Schema: An Ethical Case of Excellent Business Practices

This paper aims to contribute to a greater understanding of the theory of virtue ethics and its applications in the business arena. In contrast to other prominent approaches to ethics, virtue ethics provides a useful perspective in making sense of various business ethics issues with an emphasis on the moral character of the individuals and its transformational influences in driving ethical business conduct. Building on Geoff Moore’s (Bus Ethics Q 12(1):19–32, 2002; Bus Ethics Q 15(2):237–255, 2005; Bus Ethics Q 18(4):483–511, 2008) treatment of Alasdair MacIntyre’s practice–institution schema, the paper discusses how individuals, as moral agents, can serve to promote virtuous business conduct and help foster a moral and ethical climate in the organization and in society at large. Using interview data from a broader study of the New Zealand wine industry as explanatory examples, the paper argues that while many companies’ sustainable practices are still largely market based, such excellent business practices are often driven by individuals’ moral and ethical pursuits.     

How Do Managers Make Teleological Evaluations in Ethical Dilemmas? Testing Part of and Extending the Hunt-Vitell Model

A study involving purchasing managers was conducted to test specific Hunt-Vitell theoretical propositions concerning the determinants of managers' teleological evaluations. We extended the Hunt-Vitell model by developing a new integrative construct, namely the desirability of consequences to self versus others. We hypothesized that desirability of consequences affects teleological evaluations in that the more desirable the consequences of a particular action, the more likely managers evaluate that action positively. The results of the present study provided support for this hypothesis. Furthermore, we extended the Hunt-Vitell model by developing a new integrative construct, namely the desirability of consequences of self versus others. We hypothesized that cognitive moral development moderates the relationship between the desirability of consequences of self versus others and teleological evaluation. The results failed to support this hypothesis. We explained the lack of support in terms of the level of aggregation of the data, the possibility of the confounding effect of respondents' sensitivity to ethical issues, and the possibility that deontological evaluations confounded the respondents' teleological judgments. Future research and managerial implications of the findings were also discussed.     

How Does Ethical Leadership Trickle Down? Test of an Integrative Dual-Process Model

Although the trickle-down effect of ethical leadership has been documented in the literature, its underlying mechanism still remains largely unclear. To address this gap, we develop a cross-level dual-process model to explain how the effect occurs. Drawing on social learning theory, we hypothesize that the ethical leadership of high-level managers could cascade to middle-level supervisors via its impact on middle-level supervisors’ two ethical expectations. Using a sample of 69 middle-level supervisors and 381 subordinates across 69 sub-branches from a large banking firm in China, we found that middle-level supervisors’ ethical efficacy expectation and unethical behavior–punishment expectation (as one form of ethical outcome expectations) accounted for the trickle-down effect. The explanatory role of middle-level supervisors’ ethical behavior–reward expectation (as the other form of ethical outcome expectations), however, was not supported. The theoretical and practical implications are discussed.     

A tale of six states: How similar are the Gulf Cooperation Council countries?

This paper reports the convergence rates for the Gulf Cooperation Council (GCC) countries using a Bayesian shrinkage estimator. The estimated convergence rates using a panel dataset covering period from 1972 to 2008 across six countries vary from 9% to 22% per year. The results of a Bayesian change point calculations indicate that following a dramatic change in the crude oil prices in 1985, the pattern of σ-convergence reversed. Based on the estimated steady states for each country, the rank order is hypothesized to be a function of the percentage of foreign workers in the labor force.     

How Good are Small Firms are Predicting Employment?

This paper utilises some data from an interview survey of very small firms in the North of England to examine the relationship between actual and forecast employment in small firms over a twelve month period. The paper first provides some summary statistics on actual and forecast employment for the survey firms over the reference period. It then looks at how successful the firms are in their short term forecasts, and finds that there is systematic over-estimation. The causes of the systematic forecast error are investigated. It is suggested, tentatively, that the firms may in some way be incorrectly interpreting the information embodied in their own employment figures when making their forecasts. The paper concludes with a brief review of the results and possible policy implications. Avenues for future work are also proposed.     

Sins of the Father’s Firm: Exploring Responses to Inherited Ethical Dilemmas in Family Business

How do individuals respond when they perceive that their family business has been built upon unethical business conduct? Drawing on an expanded version of Hirschman’s typology of generic responses to declining situations (Exit, Voice and Loyalty: Responses to Decline in Firms, Organizations, and States, Harvard University Press, Cambridge, MA, 1970), which includes responses of Exit, Voice, Loyalty, and Neglect, we offer a model that predicts probability of intended response behavior as a function of normative obligation (i.e., what one perceives ought to be done), managerial discretion (i.e., what one perceives can be done), and successor commitment to the firm. The model is tested on 124 business school students exposed to a scenario depicting an inherited ethical dilemma occurring in a family business from Arthur Miller’s play All My Sons, and shows support for elements of the proposed framework. Most notable is a significant negative relationship between normative firm-directed commitment and the response of Neglect.     

A 30-Year Historical Examination of Ethical Concerns Regarding Business Ethics: Who’s Concerned?

Understanding the ethical attitudes and concerns of future business leaders has been the focus of increasing research attention. Largely, this is due to the influence of such perspectives, as it is these presently held ideologies that ultimately translate into the actions and behaviors of the forthcoming workforce. This research examines how such business-related ethicality perspectives have evolved by administering a nationwide survey that builds on two Journal of Business Ethics studies, Beltramini et al. (J Bus Ethics 3:195?C200, 1984) and Peterson et al. (J Bus Ethics 10:733?C738, 1991), resulting in the latest segment of a three-decade historical perspective of ethical concerns. Our findings indicate fundamental shifts regarding the nature of concerns, and provide a number of practical and theoretical contributions to the ethics literature, bringing us one step closer to more comprehensively understanding, and ultimately enhancing ethical practices in business.     

CSR Business as Usual? The Case of the Tobacco Industry

Tobacco companies have started to position themselves as good corporate citizens. The effort towards CSR engagement in the tobacco industry is not only heavily criticized by anti-tobacco NGOs. Some opponents such as the the World Health Organization have even categorically questioned the possibility of social responsibility in the tobacco industry. The paper will demonstrate that the deep distrust towards tobacco companies is linked to the lethal character of their products and the dubious behavior of their representatives in recent decades. As a result, tobacco companies are not in the CSR business in the strict sense. Key aspects of mainstream CSR theory and practice such as corporate philanthropy, stakeholder collaboration, CSR reporting and self-regulation, are demonstrated to be ineffective or even counterproductive in the tobacco industry. Building upon the terminology used in the leadership literature, the paper proposes to differentiate between transactional and transformational CSR arguing that tobacco companies can only operate on a transactional level. As a consequence, corporate responsibility in the tobacco industry is based upon a much thinner approach to CSR and has to be conceptualized with a focus on transactional integrity across the tobacco supply chain. Guido Palazzo is Assistant Professor for Business Ethics at the University of Lausanne (Switzerland). He graduated in Business Administration at the University of Bamberg (Germany) and earned his PhD in Political Philosophy (1999) from the University of Marburg (Germany). His research interests are in Corporate Social Responsibility, Corporate Branding, Democratic Theory, and Organizational Ethics. Ulf Richter is a doctoral student at the University of Lausanne. He is writing his thesis on Corporate Social Responsibility, conceptualizing the concept from a multidisciplinary perspective. He has studied in Germany, Peru and the US, and graduated from the European Business School, Oestrich-Winkel, majoring in International Management and Real Estate.     

Music Piracy on the Web – How Effective are Anti-Piracy Arguments? Evidence from the Theory of Planned Behaviour

This article presents the results of an experiment in which three different types of anti-piracy arguments were tested among 139 young adult consumers susceptible to engage in swapping music over the Internet: (1) stressing the negative personal consequences of pirating music, (2) stressing the negative consequences for the artists, and (3) stressing the unethical nature of this behaviour. The psychological determinants of music piracy behaviour were modeled in part with (1991) Ajzen’s theory of planned behaviour. The results show that the intention to swap music on-line depended on one’s attitude toward music piracy, one’s perception that important others want that this behaviour be performed, and one’s perceived competency in doing so. In addition, having swapped music on-line in the past had a strong influence on one’s intention to do it again. Contrary to expectations, the anti-piracy arguments had no significant impact on the behavioural dynamics underlying on-line music piracy.