Business Ethics in Canada: Distinctiveness and Directions

This article examines the pressures and players that have shaped business ethics in Canadian corporations, and reports on the status of Canadian corporate social performance in 1995. Business in Canada has not been subject, up to 1996, to a powerful national institutional framework such as the US Securities and Exchange Commission and the Foreign Corrupt Practices Act. Consequently, business ethics in Canada have developed primarily in response to broader socio-political and socio-economic factors than in the US, and will probably continue to do so. Interestingly, the issues, policies and practices developed in Canada may provide insights for US corporations as they respond to broadened pressures. Business ethics in Canada, on the other hand, will benefit increasingly from the US experience as pressures grow for national regulation and statutes governing corruption.     

Twenty Years of European Business Ethics – Past Developments and Future Concerns

Over the past 20 years business ethics in Europe witnessed a remarkable growth. Today business ethics is faced with two challenges. The first comes from the social sciences and consultants who have both reclaimed the topics of business ethics, regretfully often at the loss of the proper ethical perspective. The second comes from the remarkable rise of corporate social responsibility which has pushed aside the mainstream business ethics methodology with its emphasis on moral deliberation by the individual. These challenges can be tackled by an institutional transformation in business ethics that links up to the long-standing European tradition of institutional analysis of the market. The second remedy is an enlargement of the research agenda in business ethics by coming closer to other parts of applied ethics where the business ethics view is at this moment grossly neglected.     

European vs. American approaches to institutionalisation of business ethics: the Spanish case

This paper reports on a study of the largest Spanish corporations concerning the status of corporate ethics policies. The research project, the first of its kind in Spain, has two parts. First, the types of formal documents the companies use are analysed, including those dealing with ethical values or norms. Three groups of companies are distinguished: the first group has no formal documents dealing with ethical values, and the reasons given for not having any ethical statement are discussed. A second group has one document mentioning ethical values (generally the vision and/or mission statement), and a third group has in place two or more documents (one generic and the other more detailed, such as a code of conduct). The findings show that the latter group is more proactive than the former in implementing measures for promoting business ethics throughout the organisation. In the second part of the research, the study analyses the differences between companies whose headquarters are in Spain, Europe and USA regarding the arguments, the focus and the practices used to formalise business ethics.     

Transatlantic business ethics

The Business Ethics Center of the Budapest University of Economic Sciences organized a Transatlantic Business Ethics Summit on September 15–17, 2000 in Budapest, Hungary. The Summit was sponsored by the Community of European Management Schools (CEMS) and Procter & Gamble.
The main function of the Summit was to provide a forum for leading American and European scholars to explore the background theories and value bases of business ethics from the perspective of the 21st century. The participants reflected on the state of the art of business ethics as it has been practised in the USA and Europe; however, the future of business ethics as a discipline was the main focus of the Summit. Since business ethics is closely related to business and capitalism, some considerations of the 21st century economic, political, and social reality were presented too. The paper is based on and composed from the abstracts provided by the participants of the Transatlantic Business Ethics Summit. The abstract booklet can be obtained from Laszlo Zsolnai, the Convenor of the Summit.     

Religious Business Ethics and Political Liberalism: An Integrative Approach

Increasingly many business practitioners and academics are turning to religious sources as a way of approaching and answering difficult questions related to business ethics. There now exists a relatively large literature which attempts to integrate business decisions and religious values. The integration, however, is not without difficulties. For many, religious ethics provides the basis and the ultimate authority for a morally meaningful life. Yet, at the same time, in certain contexts, it is often inappropriate to rely and to publicly justify action on the basis of these ethics. With this difficulty in mind, the main goal of this paper is to answer the following specific question: Is a religiously grounded business ethics consistent with the idea of political liberalism? While this question is fundamental and straight-forward, to date it has received little, if any, careful attention. The characterization of business corporations as quasi-public, discussed in the body of the paper, implies that political liberalism may dictate that there exist situations in which invoking religious business ethics is inappropriate. The point is that once one removes the assumption of business as a purely private matter, the justification of a religiously grounded ethics in the context of a politically liberal democracy becomes problematic. On the other hand, such an assumption should not be taken to imply that all religiously grounded business ethics are always inappropriate. As this paper demonstrates, it is far from obvious that even government officials need observe a complete separation between religion and state in formulating, justifying, or expressing public policies, even policies leading to so-called coercive results. If so, it follows that managers of quasi-public institutions may, under appropriate and limited circumstances, invoke and rely upon a religious, albeit private, world-view.     

Critical Management Studies and Business Ethics: A Synthesis and Three Research Trajectories for the Coming Decade

We present the findings of a worldwide survey that was administered to business ethic scholars to better understand journal quality within the business ethics academic community. Based upon the data from the survey, we provide a ranking of the top 10 business ethics journals. We then provide a comparison of business ethics journals to other mainstream management journals in terms of journal quality. The results of the study suggest that, within the business ethics academic community, many scholars prefer to publish in the top business ethics academic journals over other mainstream management journals. Furthermore, the results of the study suggest that within the business ethics academic field there are two dominant academic communities: one in Europe and one in North America. Each of these academic communities has its own preferred publication outlets, suggesting a potentially problematic bifurcation of business ethics scholarship.     

商业伦理的构建——公司治理的一个视角

在经济飞速发展的今天,商业伦理正越来越受到高度重视。商业伦理本身并不具有法律意义上的强制性,但它具有道德意义上的导向性和自我约束性,是一个企业乃至一个商业社会和谐、长远发展的基石。同时,商业伦理也是人们在追求商业利益过程中应当遵循的道德原则。     

The State of Business Ethics in Israel: A Light Unto the Nations?

Whether the nation of Israel has become a “light unto the nations” in terms of ethical behavior among its business community remains in doubt. To examine the current state of business ethics in Israel, the study examines the following: (1) the extent of business ethics education in Israel; (2) the existence of formal corporate ethics program elements based on an annual survey of over 50 large Israeli corporations conducted over 5 years (2006–2010); and (3) perceptions of the state of business ethics based on interviews conducted with 22 senior Israeli corporate executives. In general, and particularly as a young country, Israel might be considered to have made great improvements in the state of business ethics over the years. In terms of business ethics education, the vast majority of universities and colleges offer at least an elective course in business ethics. In terms of formal business ethics program elements, many large companies now have a code of ethics, and over time continue to add additional elements. Most respondents believed they worked in ethical firms. Despite these developments, however, there appears to be significant room for improvement, particularly in terms of issues like: nepotism/favoritism; discrimination; confidentiality; treatment of customers; advertising; competitive intelligence; whistle-blowing; worker health and safety; and the protection of the environment. When compared with the U.S. or Europe, most believed that Israeli firms and their agents were not as ethical in business. A number of reasons were suggested that might be affecting the state of business ethics in Israel. A series of recommendations were also provided on how firms can better encourage an ethical corporate culture. The paper concludes with its limitations.     

Ethical Cognition of Business Students Individually and in Groups

This study provides evidence regarding the level of ethical cognition of business students at the entry to college as compared to a national norm. It also provides comparative evidence on the effects of group versus individual ethical cognition upon completion of a business ethics course. The Principled Score (P-score) from the Defining Issues Test (DIT) was used to measure the ethical cognition of a total sample of 301 business students (273 entering students plus 28 students in a business ethics course). The results indicate that (1) business students are not significantly different from the national norms at entry to college and (2) group reasoning helps male students improve their P-scores significantly in the business ethics course at a loss of P-score (albeit not statistically significant) for female students.     

The manager seeking virtue: Lessons from literature

The authors argue that studying classic literature (fiction) is useful in strengthening the manager's ability to resolve specific ethical dilemmas.The authors summarize stories, plays and novels that explicitly address a series of ethical trials common to many managers (e.g., whistleblowing, discrimination and greed). Recognizing the multicultural nature of contemporary business practice, the authors draw upon literature from Europe and Asia to illustrate their thesis. Studying literature offers a challenging and personally compelling method for managers (and management students) to improve their moral sensitivity and strengthen the decision making skills used in addressing the ethical ambiguities of business practice.The article concludes with a supplemental reading list that summarizes additional pieces of international literature with strong business ethics themes.Tony McAdams is Professor of business law in the Management Department at the University of Northern Iowa. Professor McAdams has been published in theHarvard Business Review andThe Academy of Management Review, among other journals, and he is the principal author of the text,Law, Business, and Society. He received the 1978 Distinguished Teaching Award from the student government at the University of Kentucky.Roswitha Koppensteiner received an MBA degree from the University of Northern Iowa in 1990.     

Business Ethics in Central and Eastern Europe with Special Focus on the Czech Republic

This report characterizes the state of affairs in the field of business ethics in Central and Eastern Europe. It reveals the major problems and challenges brought about by the profound reforms to these societies and economies. It also offers some results of surveys looking at public opinion on morals and ethics, as well as on current business practices. In order to give a complex picture, it presents brief lessons from the history of particular countries.The author, devoting the most attention to the Czech Republic, tries to describe not only the development of business ethics in the theoretical arena but also the first steps taken by the business world itself.     

Can there be a social contract with business?

Professor Donaldson in his book Corporations and Morality has attempted to use a social contract theory to develop moral principles for regulating corporate conduct. I argue in this paper that his attempt fails in large measure because what he refers to as a social contract theory is, in fact, a weak functionalist theory which provides no independent basis for evaluating business corporations. I further argue that given the nature of a morality based on contract and the nature of the modern corporation, it is highly unlikely that any plausible contract theory of business ethics can be developed.Dr. Hodapp is an associate professor of philosophy at The University of Northern Colorado where he teaches courses in business ethics and legal philosophy. He earned a doctorate at Washington University, St. Louis. Dr. Hodapp also has a law degree from The University of Denver and practices law with a Denver law firm specializing in management labor relations.     

Window on Eastern Europe: Business and National Culture in Estonia

As the emerging democracies of Eastern Europe try to make capitalism work in an ethical manner, their historical background and the national culture acquired over centuries cannot be ignored, as this study from Estonia eloquently shows. Dr Professor Maksim Saat is Professor of Business Administration, and Dr Mari Meel is Assistant Professor of Business Ethics, at the Tallinn Technical University, Ehitajate tee 5, EE-0026 Tallinn, Estonia. In an Appendix Dr Meel describes how she teaches business ethics to university students.     

Questioning the Domain of the Business Ethics Curriculum

This paper reassesses the domain of the business ethics curriculum and, drawing on recent shifts in the business environment, maps out some suggestions for extending the core ground of the discipline. It starts by assessing the key elements of the dominant English- language business ethics textbooks and identifying the domain as reflected by those publications as ‘where the law ends’ and ‘beyond the legal minimum’. Based on this, the paper identifies potential gaps and new areas for the discipline by drawing on four main aspects. First, it argues that the domain of business ethics requires extensions dependent on the particular geographic region where the subject is taught. A second factor for broadening the scope is the impact of recent scandals, which arguably direct the focus of ethical inquiry towards the nature of the business systems in which individuals and corporations operate. Third, the impact of globalization and its result on growing corporate involvement in regulatory processes is discussed. Fourth and finally, business ethics reaches beyond the traditional constituencies of ‘economic stakeholders’ as new actors from civil society enter the stage of ethical decision making in business. We conclude by suggesting that a reconsideration of the domain of business ethics, especially in Europe, is timely, but that to do so represents a major challenge to business ethics educators.     

Predictors of External Whistleblowing: Organizational and Intrapersonal Variables

Research on whistleblowing has not yet provided a finite set of variables which have been shown to influence an employee's decision to report wrongdoing. Prior research on business ethics suggests that ethical business decisions are influenced by both organizational as well as intrapersonal variables. As such, this paper attempts to predict the decision to whistleblow using organizational and intrapersonal variables. External whistleblowing was found to be significantly related to supervisor support, informal policies, gender, and ideal values. External whistleblowing was not found to be significantly predicted by formal policies, organizational tenure, age, education, satisfaction, or commitment.     

The role of business ethics: where next? Is there a role for academics?

In his address to the conference Norman Bowie contrasted the business ethics climate in the US with that of the UK. He highlighted the adversarial nature of US corporate cultures and the heavy emphasis on compliance‐based programs, and contrasted this with the more collaborative relationships in the UK – and in Europe generally – which lead to partnerships with NGOs as a way to resolve ethical issues. However, the growing insistence that business ethics should pay is common to both business environments. Professor Bowie raised two further issues of concern. One was the increasing professionalisation of the business ethics 'business', and the other was the reluctance of students to opt for business ethics courses. Taking these factors together suggests that the role of academics in business ethics is shrinking fast.     

FOCUS: A Comparison of Business Ethics in North America and Continental Europe

The author of this major study compares the significantly different approaches to business ethics on both sides of the Atlantic and considers what they have to learn from each other. He has considerable experience of business ethics in both Europe and North America, having taught and researched the subject at the University of St Gallen in his native Switzerland before his appointment as Professor of International Business Ethics in the College of Business Administration, University of Notre Dame, Indiana 46556, USA. Professor Enderle was also the founding Honorary Treasurer of the European Business Ethics Network and is an Associate Editor of this Review.     

A Model of Business Ethics

It appears that in the 30 years that business ethics has been a discipline in its own right a model of business ethics has not been proffered. No one appears to have tried to explain the phenomenon known as ?business ethics’ and the ways that we as a society interact with the concept, therefore, the authors have addressed this gap in the literature by proposing a model of business ethics that the authors hope will stimulate debate. The business ethics model consists of three principal components (i.e. expectations, perceptions and evaluations) that are interconnected by five sub-components (i.e. society expects; organizational values, norms and beliefs; outcomes; society evaluates; and reconnection). The introduced model makes a contribution to the creation of a conceptual framework for business ethics. A few tentative conclusions may be drawn from the introduced model of business ethics. The model aspires to be highly dynamic. The ultimate outcome is dependent upon the evolution of time and contexts. It is also dependent upon and provides reference to the behaviours and perceptions of people. The model proposes business ethics to be a continuous and an iterative process. There is no actual end of the process, but a constant reconnection to the initiation of successive process iterations of the business ethics model. The principals and sub-components of the model construct the dynamics of this continuous process. They provide guidance on what and how to explore our common efforts to understand the phenomenon known as business ethics. The model provides opportunities for further research in the field of business ethics.