Ethical Beliefs and Management Behaviour: A Cross-Cultural Comparison

A cross-cultural empirical study is reported in this article which looks at ethical beliefs and behaviours among French and German managers, and compares this with previous studies of U.S. and Israeli managers using a similar questionnaire. Comparisons are made between what managers say they believe, and what they do, between managers and their peers' attitudes and behaviours, and between perceived top management attitudes and the existence of company policy. In the latter, significant differences are found by national ownership of the company rather than the country in which it is situated. Significant differences are found, for both individual managers by nationality, and for companies by nationality of parents, in the area of organizational loyalty. The attitude towards accepting gifts and favours in exchange for preferential treatment, as a measure of societal values, is also found to show significant differences between national groups. However, no significant differences are found for measures for group loyalty, conflict between organizational and group loyalty and for conflicts between self and group/organization. The findings have implications for cross-border management decision strategies regarding such issues as receiving and giving of gifts, and the management of relations between local employees and international organizations which may be affected by differences in attitude to corporate loyalty.     

A Qualitative Exploration into Voters' Ethical Perceptions of Political Advertising: Discourse, Disinformation, and Moral Boundaries

Political campaign advertising continues to be a controversial policy topic in advertising and marketing research. It is also a prime subject for investigating the ethical evaluations of consumers (or voters). The following study draws from postmodern communication theory and employs a qualitative research methodology in order to explore voters' intimate and subjective views about politics, candidates, and political advertising. The findings include emergent themes relating to significant media rituals in voters' lives, the cynical perspective of politics as a game, and the widespread disapproval and suspicion with which voters regard negative political advertising. Additionally, the a priori theme of political information as disinformation was proposed and expanded upon. Findings are discussed in light of a greater understanding of the appropriateness of the traditional versus the postmodern perspective of political communication, informants' construction of moral boundaries which help them determine right from wrong, acceptable vs. unacceptable political behaviours in this particular context.     

Towards an Integrative Model of Small Firm Internationalisation

Firm internationalisation has long been regarded as an incremental process, wherein firms gravitate towards psychologically close markets and increase commitment to international markets in a gradual, step-wise, manner through a series of evolutionary stages. However, much of the recent literature provides clear evidence of rapid and dedicated internationalisation by born global firms. Typically, these are smaller entrepreneurial firms that internationalise from inception, or start to shortly thereafter. Their main source of competitive advantage is often related to a more sophisticated knowledge base. In addition, the authors have found evidence of firms supporting this born global pattern of behaviour but also evidence of firms that suddenly internationalise after a long period of focusing on the domestic market. These born-again globals appear to be influenced by critical events that provide them with additional human or financial resources, such as changes in ownership/management, being taken over by another company with international networks, or themselves acquiring such a firm. Based upon the extant literature and our own research, we propose an integrative model that recognises the existence of different internationalisation pathways. We then explore differences in behaviour due to the firm's internationalisation trajectory and discuss the strategic and public policy implications.     

The indefensibility of insider trading

The article, Inside Trading Revisited, has taken the stance that insider trading is neither unethical nor economically inefficient. Attacking my arguments to the contrary developed in an earlier article, The Ethics of Inside Trading (Journal of Business Ethics, 1989) this article constructs careful arguments and even appeals to Adam Smith to justify its conclusions. In my response to this article I shall clarify my position as well as that of Smith to support my counter-contention that insider trading is both unethical and inefficient. Patricia H. Werhane is the Henry J. Wirtenberger Professor of Business Ethics at Loyola University, Chicago. She is the author or editor of seven books including Ethical Issues in Business,edited with Tom Donaldson, in its third edition, Persons, Rights, and Corporations, Profits and Responsibility,and Philosophical Issues in Human Rights,edited with David Ozar and A. R. Gini. She is past president of the Society for Value Inquiry, founding member, past president and Executive Director of the Society of Business Ethics, and Chairperson of the Ethics Advisory Council of Arthur Andersen & Co. She serves on the editorial boards of the Journal of Business Ethics,the Journal of Value-Based Management, and Public Affairs Quarterly,and is Editor-in-Chief of Business Ethics Quarterly.Her book, Adam Smith and his Legacy for Modern Capitalismis forthcoming with Oxford University Press.     

Mergers,takeovers, and a property ethic

The recent takeover and merger trend cries out for ethical evaluation. This essay proposes a model for evaluating them in terms of their impact on a firm's immediate stakeholders: investors, owners, management and employees. Since mergers and takeovers are Transfers of Ownership of Firms (TOFs) they entail a property ethic of ownership, control, securing stakeholder interests, and defining which stakeholders should exercise these rights. I use the model to evaluate two fictional cases, a friendly merger and a hostile takeover. The results show that neither TOF serves all interests equitably. Since the control structure of the private firm is legitimized by its interest structure, I reason that both should be reformed. Both rest on a broader economic rationale; but it is controverted. Accordingly, the economic and ethical evaluation of TOFs, I conclude, both entail the democratic reform of the control structure of the firm.A corporation represents far more than its current stock price; it embodies obligations to employees, customers, suppliers and communities.Robert S. Saul, Peers Merchant BankVincent di Norcia is Associate Professor of Philosophy at the University of Sudbury. He is the author of Ethics in Management and Beyond the Red Tory.     

Insider trading revisited

A recent article in this Journal argued that insider trading is an unethical practice leading to an inefficiently functioning market. The debate on this topic has primarily pitted ethical defenses of prohibition against economic arguments extolling its allowance. In addition to being incomplete, this approach ignores other unwanted economic effects of prohibition itself and unethical implications of its existence. This article shows that Adam Smith's free market concept, when properly interpreted, provides all the incentive structure necessary for an efficient and ethical marketplace even when insider trading is permitted. Deryl W. Martin has presented his research at several regional and national conferences, and has published in the Journal of Economics and Business, the Journal of Strategic and Financial Decisions, The Moneypaper, and several proceedings and newspapers. He is currently Assistant Professor of Finance at Tennessee Technological University in Cookeville, TN.Jeffrey H. Peterson is a doctoral candidate in finance at the University of Alabama. He also has presented his research at several regional and national meetings, and is currently Instructor of Finance at St. Bonaventure University in Olean, NY.     

Thoughts on ‘management-think’

In this paper I briefly summarize Pastin's views on the problem of good business thinking (GBT) and the solution (Perspectival Analysis) which he offers. In discussing Pastin's solution I offer a number criticisms which call for further elucidation on Pastin's part. Specifically, I challenge his vagueness on which perspectives a manager must consider, the manner in which the moral components of these perspectives are to be evaluated, and whether Pastin is not in the end committed simply to an economic account of GBT. Finally, I contend that Pastin's account of GBT errors in being too intellectualistic and too individualistic. George G. Brenkert is Associate Professor at the University of Tennessee. His most important publications are Privacy, Polygraphs, and Work in Business and Professional Ethics Journal 1, No. 1 1981; Strict Products Liability and Compensatory Justice, in Business Ethics: Readings and Cases in Corporate Morality, edited by W. Michael Hoffman and Jennifer Mills Moore (New York: McGraw-Hill, 1984); and Marx's Ethics of Freedom (London: Routledge & Kegan Paul, 1983).     

Saturday Review's annual advertising awards

Saturday Review's long, commendable effort to identify corporations willing to promote the general good through their advertising was damaged in 1977 because of procedural changes in the awards. Prior to 1977 the named judges made the important distinction between public-service (non-image) and public-relations (corporate image) advertising. But in 1977 the judges were not named and the public service/public relations distinction was eliminated, replaced by the single category of public spirited ads. Most of these ads, however, were not public spirited, but were public relations ads. But in 1978 this deception was ended by the empaneling of a new kind of jury, one drawn from the S.I. Newhouse School of Public Communications. James Richard Bennett is Professor of English at the University of Arkansas, Fayetteville. He is the editor of Style, a Journal of Stylistics. He won the Fulbright Teaching Award in Yugoslavia in 1968–69. His most important publication is: Prose Style: A Historical Approach Through Studies, 1971.I wish to thank Professor Leonard White of the Department of Economics at the University of Arkansas for his advice concerning several of the ads discussed herein.     

Limitations of ethical reasoning as an action (praxis) strategy

For both philosophers and managers, reasoning with ourselves and others can be used both as (1) a way of knowing what is ethical and (2) a way of acting to help ourselves, others and organizations behave ethically. However, for many of us, knowing is frequently not the same as acting. Four areas are addressed: (1) thirteen limitations of ethical reasoning as an action strategy; (2) how a better understanding of these limitations can strengthen ethical reasoning as an action strategy; (3) how an understanding of these limitations can serve as a conceptual foundation for exploring other ethical action strategies; and, (4) implications for experiential learning and teaching. Richard P. Nielsen is a Management Professor in the Department of Organizational Studies, School of Management, Boston College, Chestnut Hill, MA 02167. Related articles of his include Toward an Action Philosophy for Managers Based on Arendt and Tillich, Journal of Business Ethics, May 1984, What Can Managers Do about Unethical Management, Journal of Business Ethics, May 1987, and Cooperative Strategy, Strategic Management Journal 9, 1988.     

Professionalism: Foundation for business ethics

Professionalism includes the essential contents of other key notions within the field of business ethics. As a term involving the notion of vocation it may be understood as containing a religious content, since vocation refers to a man's most intimate personal decisions, destiny and providence. Professionalism also connotes respect for law and so includes a reference to commercial law as a guide to right conduct. Professionalsim thus lifts the requirements of law to the level of personal commitment.Like an honest act, professionalism may not be easy to define, but you will know it when you see it. As for professionalism's practitioners, like the practitioners of honesty, their art is learned not by seeking definitions of what they do, but by practicing professionalism. Only if this practice becomes an obsession with the Business Aristocracy can we expect professionalism to seize the soul of lesser businessmen and suffuse the entire business community. Thomas E. Schaefer, Ph. D., is Professor of Business Administration at the University of Texas, Permian Basin. He was formerly Head of the Department of Business Administration, University of Alaska, and Dean of Business Administration, Sacred Heart University, Puerto Rico. He has received a Private Sector Award of Pres. Reagan for Extraordinary Contributions to Small Business. His most important publications are: The Process of Management: What Supervisors Do (O.C. Press, 1982); Leadership Through Followership, Business Horizons (September/October, 1982) and many others.Paper presented at the 16th Conference on Value Inquiry, entitled: Ethics and the Market Place: An Exercise in Bridge-Building or On the Slopes of the Inteface.     

A note on government policy and the new ‘intrapreneurship’ in Bulgaria

Conclusion I have attempted in this paper to highlight the recent emergence and rapid growth of a particular type of intrapreneurship in the Bulgarian economy. This intrapreneurship involves the creation of new smaller establishments within existing large-scale industrial firms. These semi-autonomous auxiliary plants are exempt from part of the bureaucracy which constrains the larger addition, they have provided a higher rate of technological advance, a better supply of consumer goods, a greater utilization of labor resources, and a higher return to human capital.Only through the continued development of a small-firm sector can the Bulgarian economy meet the challenge currently posed by its western counterparts. Whether the next step from intrapreneurship to entrepreneurship is taken may hold the key for industrial development in Bulgaria.     

National Innovation Systems, ‘Real Economies’ and Instituted Processes

The design of institutions, policies and units of analysis are all predicated upon the ways in which we see the world and explain change. Today, as the pace of change quickens due to technological advancement and growing technoeconomic interdependencies in a series of processes generally referred to as globalization, analytic frameworks which emphasize national systems have emerged to provide a unit of analysis through which to explain these changes and growing interactions. These frameworks have the allure of trying to incorporate the ways in which economies, markets and economic agents actually behave – with particular reference to innovation, knowledge, learning and institutions. Our purpose in this paper is to raise some questions about the importance of these frameworks from a policy (managerial) and analytic perspective, to outline some limitations of their utility, and to suggest some useful paths for investigation.     

The ethics of Nigeria's proposed withdrawal from the organisation of petroleum exporting countries

In the wake of the prevailing world oil glut which has affected the revenue earning powers of OPEC (Organisation of Petroleum Exporting Countries) members, there are serious proposals and arguments in favour of Nigeria's withdrawal from OPEC.The mission of this paper is to question the ethical basis of this proposed strategy after she has benefited from OPEC membership for over a decade. This paper postulates that it would be ethically wrong to do so and suggests a strategy that would boost the petrochemical industry for agriculture, building, pharmaceuticals, automative industry, etc. Dr. Bedford A. Fubara is Senior Lecturer and Head of the Department at the Rivers State University of Science and Technology in Port Harcourt, Nigeria. He was awarded the Columbia University Fellowship 1970–1972 and he received the Unesco Research Award in 1981/1982. His most important publications are: Negative Profitability Performances of Public Enterprises in Developing Countries: A Business Policy Anatomy, 1984, Public Enterprise 4; Government in Business, 1983, Management in Nigeria; Corporate Planning Art in Nigeria: The Experiental Evidence of Corporate Executive, Long Range Planning (forthcoming).This research was financed by the Rivers State University of Science and Technology under Project No. SRPC/014 dated 11th June, 1984.     

Is there any ethics in business ethics

It is argued, against Richard T. De George, that while clarification of concepts, implications, and presuppositions in business ethics largely relies on a neutral territory of reason, determination of what moral intuitions are correct depends on non-neutral ethical theories. The latter posit ethics in business to varying degrees. Thus while the Kantian and utilitarian ethical theories are, for De George, proper (philosophical) approaches to business ethics, they are as reliant on affirming and encouraging moral sentiments outside parameters of pure reason as theological approaches. And hence if theological approaches can make no unique contribution by virtue of relying on more than reason or experience alone, then philosophical approaches can make no distinctive contribution either. Either both are viable or neither are. Oscillation between the mutually dependent notions of business ethics and ethics in business obfuscates what the field of business ethics is and renders De George's position inadequate.Robert Trundle, Jr., received his Ph.D. at the University of Colorado, and is Assistant Professor of Philosophy at Northern Kentucky University where he teaches Business Ethics. He has worked at such companies as Stearns-Roger and Rogerson-Hiller Corporation where he was a member of the Hazardous Materials Safety Committee.     

Assessing the Economic Worth of Corporate Event Sponsorships: A Stock Market Perspective

Sponsorships of events represent a significant and growingcomponent of firms overall investment in marketing and promotions.While the marketing literature suggests that sponsorships maybe a potential communications tool, relatively little empiricalresearch has been devoted to studying efficiency issues in sponsorships.To understand if sponsorships are efficient investments, we assesstheir economic worth via the event study methodology. Specifically,we hypothesize that a corporate sponsorship announcement providesinformation to market analysts who evaluate the potential profitabilityof a firm. This evaluation of a companys potential profitability,in turn, affects the firms stock price. Announcements of 76sponsorship events were analyzed using the event-study method.Results indicate that on average, corporate sponsorship announcementsimpact the stock market positively and that sponsorships areviewed as worthwhile investments by the financial community.The findings of this study contribute to a better understandingof performance issues surrounding sponsorship investments, andextend recent literature which examines the financial impactof marketing decisions.     

Factors Impacting the Adoption of the Internet among SMEs

The Internet can extend market reach and operational efficiency of small and medium enterprises (SMEs) and enhance their contributions to the U.S. economy. This paper reports an empirical study conducted to identify the factors that impact SMEs involvement with the Internet. Internal and external variables such as firm size, self-efficacy, prior technology use, etc. are used to predict the level of Internet involvement. This involvement is examined in terms of ownership of a web site (adoption) and use of the Internet for selling purposes (routinization). Logistic regression is used to examine the relationships between internal and external factors and SMEs involvement with the Internet. The results suggest that specific factors contribute to the SMEs involvement with the Internet – prior technology use and the customer service subscale of perceived competitive pressure influence both stages of Internet adoption. Moreover, the relative importance of some of these predictor variables decreases as the level of Internet involvement increases. Past media use does not explain SME behavior – in terms of adoption or routinization. These findings can be used to develop strategies to build SME involvement with the Internet.     

What is business in America?

This paper, presented at the Conference on Value Issues in Business at Millsaps College, is divided into three parts. The first sketches the logic of the evolution of U.S. business and suggests reasons for its remarkable success. The second assesses the power of U.S. business in modern society, both from an economic and political perspective. The third attempts to formulate the underlying philosophy of U.S. business using ideals such as the work ethic, entrepreneurism, democracy, and equality. Some of these ideals, the paper suggests, are irreconcilable. Thomas J. Donaldson is Associate Professor of Philosophy at Loyola University of Chicago. His publications in the area of business ethics include numerous articles and two books, Ethical Issues in Business co-edited with Patricia Werhane, and Corporations and Morality.     

Norman Bowie and Richard Rorty on multinationals: Does business ethics need ‘metaphysical comfort?’

Norman Bowie wrote an article on the moral obligations of multinational corporations in 1987. This paper is a response to Bowie, but more importantly, it is designed to articulate the force and substance of the pragmatist philosophy developed by Richard Rorty. In his article, Bowie suggested that moral universalism (which he endorses) is the only credible method of doing business ethics across cultures and that cultural relativism and ethnocentrism are not. Bowie, in a manner surprisingly common among contemporary philosophers, lumps Rorty into a bad guy category without careful analysis of his philosophy and ascribes to him views which clearly do not fit. I attempt to provide both a more careful articulation of Rorty's views, and to use his pragmatism to illustrate an approach to business ethics which is more fruitful than Bowie's. This brand of philosophy follows the Enlightenment spirit of toleration and attempts to set aside questions of Truth, whether religious or philosophical, and have ethics centered around what James called that which is good in the way of belief. Rather than looking for metaphysical foundations or some type of external justification, ethicists perform their craft from within the cultural traditions, narratives and practices of their society.Andrew C. Wicks, M.A. in Religious Ethics. Currently a fourth year Doctoral Candidate in the Religious Studies Department at the University of Virginia, Charlottesville.     

What is business ethics? A reply to peter drucker

In his What is Business Ethics? Peter Drucker accuses business ethics of singling out business unfairly for special ethical treatment, of subordinating ethical to political concerns, and of being, not ethics at all, but ethical chic. We contend that Drucker's denunciation of business ethics rests upon a fundamental misunderstanding of the field. This article is a response to his charges and an effort to clarify the nature, scope and purpose of business ethics.     

Financial structure and the growing small firm: Theoretical underpinning and current evidence

This paper introduces a special issue of small Business Economics on Financing and Small Firm Dynamics. It establishes a general underpinning for the analysis of small firm financing over time. This appeals to the control theoretic literature, and permits the specification of master trajectories of key variables over time like output, debt, dividend and capital. Two trajectories (for cheap debt, and cheap equity, respectively) illustrate this type of analysis, showing how financial structure can vary over time, involving phases of growth, consolidation and stationarity. From this perspective, six papers on small firm dynamics and finance are reviewed. Issues addressed include: credit constraints (funding shortages), wealth as collateral, financial structure, target income modelling of start-up, and bank lending during financial liberalisation.