The socially and spatially bounded relationships of entrepreneurial activity: Olav Sorenson—recipient of the 2018 Global Award for Entrepreneurship Research

This article reviews the academic contributions of Olav Sorenson, recipient of the 2018 Global Award for Entrepreneurship Research. His work has advanced scholarly understanding of how entrepreneurship and innovation are strongly embedded in socially and spatially bounded relationships. Based on meticulous empirical studies using a broad range of methods, he has challenged conventional models of new firms’ location choices, explained patterns of and determinants of knowledge diffusion, and considered how social networks can lead to economic advantages. This article discusses Sorenson’s work specifically focusing on three themes—(i) the geography of entrepreneurial activity, (ii) social capital, and (iii) the evolution of learning and innovation—highlighting scholarly contributions and insights for management practice and public policy.     

Is the Ethical Culture of the Organization Associated with Sickness Absence? A Multilevel Analysis in a Public Sector Organization

The main aim of the present study was to examine whether an ethical organizational culture is associated with sickness absence in a Finnish public sector organization at both the individual (within-level) and work unit (between-level) levels. The underlying assumption was that employees working for organizations that are characterized by a strong ethical organizational culture report less sickness absence. The sample consisted of 2192 employees from one public sector city organization that included 246 different work units. Ethical organizational culture was measured with the Corporate Ethical Virtues scale covering eight sub-dimensions. Sickness absence was inquired by asking the participants to report how many days they had been absent from work because of their own sickness over the past year. Multilevel structural equation modelling showed that, at the individual level, perceptions of a strong ethical organizational culture were associated with less sickness absences after controlling for the background factors. This link was not found at the work-unit level. The findings indicate that an ethical organizational culture plays a significant role in enhancing employee well-being measured as sickness absence. It seems that especially supervisor’s ethical role modeling and possibilities to discuss about ethical issues are important factors in preventing sickness absence in the organizations.     

“I don’t Care that People don’t Like What I Do” – Business Codes Viewed as Invisible or Visible Restrictions

Research about codes of corporate ethics has hitherto taken a hypothetical, correct meaning of codes for granted. The article problematises the dichotomous categories intrinsic and subjective meanings of codes. I address the question if professionals in finance accept codes of business. The particular mentality of stockbrokers and traders constructs the way they judge restrictions such as company codes of ethics. While neglecting dimensions of ethics beyond known rules, brokers and traders distrust good ethics as a possible end in itself. Many professionals in the financial market perceive efforts to integrate ethical reasoning in work as only means for maximising business opportunities.     

Expertenwissen im politischen Prozess — Nutzen,Grenzen und Gefahren

Since the outbreak of the financial and economic crisis, confidence in politicians as well as the economists in their advisory expert panels seems to be at an all-time low. Why do politicians reject science-based advice unless it fits into their political agenda? Are economists misunderstood by politicians and vice versa? The tension between the ideal of evidence-based policy-making and the reality of policy-based evidence-making is hardly a new phenomenon. Therefore, the expectation that Donald Trump, the Brexiteers and European populists will necessarily disappoint their voters because they simply cannot deliver what they have promised is misleading. Experts would be well advised to use the debate on the post-factual era as an impetus to reflect critically on their profession. One opinion expressed in this Zeitgespräch is that the contested societal and political impact of modern economics is due to its restricted scientific self-concept. A more open, pluralistic and transdisciplinary self-definition of economics would strengthen its societal influence. Another contributor ponders the proper incentives to persuade academic economists to provide economic policy advice. Key is the independence of advisory institutions like the German Council of Economic Experts. The selection of people with the best scientific qualifications will ensure the reputation of such institutions.     

Are two brands better than one? Investigating the effects of co-branding in advertising on audience memory

Co-branded advertising, where advertisements feature two partnered brands from different categories, should ideally benefit both brands. We test this assertion by studying the effect of featuring a second brand in advertisements on ad and brand name memorability, and the role of category context on which brand is recalled. Our test covers online display advertisements for consumer-packaged brands paired with charity and retailer brands in three markets (USA, UK, and Australia). Independent sample comparisons across 54 brand pairs show that advertising two brands has a neutral effect on ad memorability and negative effect on brand memorability. Furthermore, the advertisement’s category context determines which of the brands is recalled. Our findings support a competitive interference theory of dual-brand processing, whereby the two brands compete for attention resources. The results have implications for the return on investment from advertising expenditure, which will vary substantively depending on whether the costs of advertising are shared or borne by one brand in the pair.     

Identifying Macro Phases Across the Negotiation Lifecycle

Existing models of negotiation as a process are incomplete and do not show an overall, start to finish lifecycle. Current phase based models lack clearly defined criteria that identify phase boundaries. After reviewing existing models, the paper identifies macro phases, clarifies phase boundaries, and delivers a bird’s eye view model of negotiation supported by examples in academic literature and the public record. The enhanced model proposed here provides a practical negotiation guideline and roadmap previously left unclear in the literature. The proposed model contributes to theory around negotiation by defining the boundaries of a sequence of macro phases in negotiation and enhancing the model through business process modeling. With the enhanced model, academics and practitioners can share a viewpoint for understanding, communicating, and further developing negotiation models.     

Contrasting the Behavioural Business Ethics Approach and the Institutional Economic Approach to Business Ethics: Insights From the Study of Quaker Employers

The article suggests that in a modern context, where value pluralism is a prevailing and possibly, even ethically desirable interaction condition, institutional economics provides a more viable business ethics than behavioural business ethics, such as Kantianism or religious ethics. The article explains how the institutional economic approach to business ethics analyses morality with regard to an interaction process, and favours non-behavioural, situational intervention with incentive structures and with capital exchange. The article argues that this approach may have to be prioritised over behavioural business ethics, which tends to analyse morality at the level of the individual and favours behavioural intervention with the individual’s value, norm and belief system, e.g. through ethical pedagogy, communicative techniques, etc. Quaker ethics is taken as an example of behavioural ethics. The article concludes that through the conceptual grounding of behavioural ethics in the economic approach, theoretical and practical limitations of behavioural ethics, as encountered in a modern context, can be relaxed. Probably only then can behavioural ethics still contribute to raising moral standards in interactions amongst the members (stakeholders) of a single firm, and equally, amongst (the stakeholders of) different firms. Dr. Sigmund Wagner-Tsukamoto is researcher in business ethics, organisational economics and economic issues that concern the Old Testament. He is placed at the School of Management of the University of Leicester, UK. He holds two doctorates, one in social studies from the University of Oxford, UK, and one in economic studies from the Catholic University of Eichstaett, Germany. He has widely published on green consumerism and institutional economic issues that concern organization theory, business ethics theory and an economic interpretation of the Old Testament. His publications include the books Understanding Green Consumer Behaviour (Routledge, 2003) and Human Nature and Organization Theory (Edward Elgar, 2003).     

Advancing the Business and Human Rights Agenda: Dialogue,Empowerment, and Constructive Engagement

As corporations are going global, they are increasingly confronted with human rights challenges. As such, new ways to deal with human rights challenges in corporate operations must be developed as traditional governance mechanisms are not always able to tackle them. This article presents five different views on innovative solutions for the relationships between business and human rights that all build on empowerment, dialogue and constructive engagement. The different approaches highlight an emerging trend toward a more active role for corporations in the protection of human rights. The first examines the need for enhanced dialogue between corporations and their stakeholders. The next three each examine a different facet of empowerment, a critical factor for the respect and protection of human rights: empowerment of the poor, of communities, and of consumers. The final one presents a case study of constructive corporate engagement in Myanmar (Burma). Altogether, these research projects provide insight into the complex relationships between corporate operations and human rights, by highlighting the importance of stakeholder dialogue and empowerment. All the five projects were presented during the Second Swiss Master Class in Corporate Social Responsibility, held in Lausanne, Switzerland on December 12, 2008. The audience for this conference, which examined business and human rights, was composed of researchers, governmental representatives, and business and non-governmental organization practitioners.