Ethics and the Networked Business

Pushing through a logical continuum of closed- to open-system views of organizations necessarily changes the conceptualization of a firm from a strongly bounded entity to a configuration of networks and sub-networks, which exists and operates in a larger systemic network configuration. We unfold a classification of management processes corresponding to views of the firm along the closed/open-systems continuum. We examine ethical issues that are likely to devolve from these classes of management processes, and we suggest typical means by which managers will attempt to control their firms’ exposure to such issues. The final class of management processes examined focuses on the achievement of outcomes that are mutually satisfactory in the set of networks and sub-networks that constitute the focal firm, and that support the sustainability of the whole system. The article contributes to organizational theory, business ethics, and computer and information ethics by providing a comprehensive analysis of the impact of managerial views of the firm and of networks – virtual, social, informational – on managerial processes and on our understanding of how business ethics issues are linked to perceptions of what a firm is, does, and can do.     

Introduction to the Special Issue on the Impact of Network Ethics on Business Practices

Modern public relations practices have been dominated by appeals to impulses, desires, and images that affect publics defined predominantly in demographic terms. This paper argues that abandoning basic rhetorical assumptions about the ability of ordinary people to engage in practical reason has serious ethical implications for the marketplace as well as for society in general. The study applies recent rhetorical scholarship on issues of public discourse and rhetorical culture to public relations practices, considering how rhetoric can contribute to more effective and ethical public discourse in our dominant modes of marketplace communication.     

DEREGULATION AND EFFICIENCY IN GRAIN TRANSPORT

In this paper, it is argued that removing restrictions on road transport will not be sufficient to encourage efficiency improvements in grain freight industry while rail authorities continue to operate as public monopolies. This is because of the structure of costs in the grain freight industry, which imply that road transport cannot compete with rail transport in areas where road is the more efficient mode. While the tendency for a regulated monopoly to cross-subsidise inefficient operations is common place, the focus in this analysis is on the nature of the cross-subsidy in the grain freight industry, and shows that it is a type of cross-subsidy that is well hidden by aggregation. A model of investment in a rail network is presented where the monopoly power afforded to the rail industry is shown to be due to economies of traffic density. A case study of the grain rail network in Western Australia is presented where it is shown that the rail authority has been able to maintain very uneconomic sections of rail line, despite the introduction of road competition and apparently competitive pricing practices.     

Dual career couples: Individual and organizational implications

Since the introduction of the term ‘dualcareer’ family by Rapoport and Rapoport in 1969, an increasingly large body of literature concerning this phenomenon has developed — perhaps in response to the rapid growth of dual-careerism in North American Society. This literature is extremely diverse, ranging from purely ‘academic’ articles in the professional journals of economics, business, sociology, psychology, etc., to ‘self-help’ and ‘trade’ books such as The Two Career Couple by Hall and Hall; to ‘light’ articles in popular magazines such as Redbook, People, Good Housekeeping, etc. This paper reviews this literature and discusses the implications of the dual-career family structure from both the individual and the organizational points-of-view. Specifically, five major topic areas are covered: (1) advantages and disadvantages of the lifestyle, (2) marital satisfaction, (3) egalitarian relationships, (4) the impact of transfers, relocations and living apart, and (5) the employing organization's reaction to and adaption to the phenomenon.     

The research vendor selection process: A quantitative decision matrix for increasing value for both buyers and sellers

This paper provides a real life example of the importance of the research vendor selection process within an organisation that is transforming its focus towards a customer-centric approach through an increased understanding of customers and consumers and the use of research for segmentation. The authors have developed a ‘Vendor Selection Matrix’ which quantitatively weighs and measures potential vendors against key criteria for successful research and segmentation. This matrix was used on a consulting project with a Canadian-based financial services organisation. Valuable insights and ideas for marketing executives, managers and professionals, the market research community and marketers of financial services products are provided. The paper finishes with the key lessons learnt throughout the market research vendor selection process, industry applicability and implications for further research.     

Flow Online: Lessons Learned and Future Prospects

Although the flow construct has been widely studied over the past decade in marketing and related fields, it has proven to be an elusive construct to measure and model. In this paper, we examine two of the most important themes in flow research in the last decade: the conceptualization and measurement of flow in online environments and the marketing outcomes of flow. In addition, while the unique characteristics of the Internet contributed to our belief that flow was an important construct for understanding consumer use of the Web in 1996, the environment of the Web itself has changed radically over the past decade. Thus, we consider the current context of the Internet, including virtual worlds, for the role and application of the flow construct, as well as important related constructs that will be useful for understanding compelling experiences in the contemporary online environment.     

Free To Choose? Dimensions of Private-Sector Wage Determination, 1979–1994

Deregulation of the system of pay determination in Britain was started in 1979 with the removal of incomes policy. The objective was to give employers the freedom to determine wage increases without the restrictions of pay norms or statutory limits. Instead, companies would be able to link changes in pay to the fortunes of the individual enterprise or establishment. By the mid-1990s, had these attempts to decentralize wage negotiations changed the determinants of wage settlement outcomes in Britain? We address the influence of industrial relations institutions and labour market pressures on wage increases between 1979 and 1994 using evidence from the CBI’s Pay Databank. Despite the direction of the Conservative Government’s policy, the external institutional forces of the labour market, particularly the rate of inflation and comparability, appear to exert an enduring influence, both qualitatively and quantitatively, on pay determination.     

Global Business Citizenship and Voluntary Codes of Ethical Conduct

This article describes the theory and process of global business citizenship (GBC) and applies it in an analysis of characteristics of company codes of business conduct. GBC is distinguished from a commonly used term, “corporate citizenship,” which often denotes corporate community involvement and philanthropy. The GBC process requires (1) a set of fundamental values embedded in the corporate code of conduct and in corporate policies that reflect universal ethical standards; (2) implementation throughout the organization with thoughtful awareness of where the code and policies fit well and where they might not fit with stakeholder expectations; (3) analysis and experimentation to deal with problem cases; and (4) systematic learning processes to communicate the results of implementation and experiments internally and externally. We then identify and illustrate the three attributes of a code of conduct that would reflect a GBC approach. The three attributes are orientation, implementation, and accountability. The various components of these attributes are specified and illustrated, using website examples from six global petroleum companies.     

The Impact of Rating Agency Reputation on Local Government Bond Yields

This study examines a sample of 12,562 dual-rated local government bond issues including 6,104 split-rated issues to determine which rating agency has the greatest impact on yields. Using a database of municipal bond issues from 1986 to 2002, we show that Moody’s rated significantly more issues than S&P, and that Moody’s ratings were more conservative. However, from 1993 to 1997, there was a reduction in ratings disagreements and in Moody’s market share. Beginning in 1995, Moody’s received negative publicity related to a Department of Justice anti-trust investigation. Moody’s appears to have responded by sharply increasing their relative conservatism in 1997. From 1986 to 1994, Moody’s ratings had a greater impact on bond yields than S&P ratings, but their dominant influence on yields disappears in the recent sample period from 1995 to 2002.