Journal of International Business Ethics - Previous Issues

Authors

Klaus M. Leisinger Global Values Alliance, Basel, Switzerland

Abstract

Business enterprises can play a pivotal role in the global implementation of the 2030 Agenda for Sustainable Development and support all efforts to realize a future we want for all. To do this, they must compete with integrity in a complex manner: on the one hand they have to be successful in a particular foreign market and understand the needs as well as live up to the expectations of its customers. They must, therefore, become “part of” the societies they are engaged in and, to a significant extent, adapt to their cultural features. On the other hand, international business enterprises must comply with international norms and live up to the expectations of media and civil society representatives in high-income countries. The author shows ways and means to manage the issues arising due to cultural diversity and normative pluralism. He recommends that transnational corporations develop a transcultural responsibility framework that builds upon the knowledge base about normative principles and values that at all times have been shared by all cultures, accepted by all religions, and supported by common practical experience. He also recommends amending leadership profiles accordingly.

Keywords

Corporate responsibility; cultural differences; sustainable development; global values; leadership profile; transcultural integrity

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Author

Eberhard Stilz Constitutional Court of Baden-Württemberg, Germany

Abstract

This article shows interactions and intersections between the Global Ethic on one side and Law and Economy on the other side. It reflects that Law must be based on ethics and needs more and more an international approach; it reports, as an example, a partnership program between Chinese and German courts. At the same time, law and ethics became increasingly important for the world of business. This is why universal ethical principles are needed and can be found in the project Global Ethos of Hans Küng. The Global Economy Ethic Manifesto has shown the importance of this approach and the key elements for its implementation. However, implementation remains a challenge and a constant task.

Keywords

Global ethics; ethos; values; law; economy; implementation; Chinese-German Court Partnership Program

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AuthorS

Yuxuan Chen School of Mathematics, Shandong University
Li Li Institute of International Economy, University of International Business and Economics
Dong Chen School of Economics, Shandong University

Abstract

The alarmingly high suicide rate among elderly people warrants improvements in elderly-care patterns in rural China. By using first-hand data from rural areas in Shandong, a typical province in China, this paper employs overall well-being and emotional well-being to measure Subjective Well-being (SWB) and further examines the impact of three elderly-care patterns, as well as their respective dimensions /determinants. Comparative studies are also made between empty nesters and non-empty nesters. The empirical findings show that family elderly-care is still important to elderly people’s SWB, although its influence is in decline. The New Rural Pension Insurance Scheme, representing social elderly-care, while improving life satisfaction, currently plays a limited role due to the fact that the pensions are very low. Those elderly people who rely on self-care, featuring an independent source of income, living with spouse, and engaging frequently in social and entertainment activities, are prone to make positive assessment on SWB. Compared with non-empty nesters, the empty nesters’ SWB is more dependent on personal sources of income and elderly-care facilities.

Keywords

Elderly-care pattern; subjective well-being (SWB); empty nesters

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Author

Jeffrey D. Sachs School of International and Public Affairs, Columbia University, USA

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Author

Baocheng Liu University of International Business & Economics, Beijing, China

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Authors

Zinette Bergman is Research Fellow at the University of the Free State, South Africa. She specializes in Content Configuration Analysis and currently works on research related to education, mobility, and corporate responsibility.
Manfred Max Bergman holds the Chair in Social Research and Methodology at the University of Basel, as well as Extraordinary Professorships at the Universities of the Western Cape and the Free State, South Africa. His research interest is focused on sustainability.
Baocheng Liu is the founder and Director of the Center for International Business Ethics (CIBE) at the University of International Business and Economics, Deputy Director of China Open Economy Institute, founder of the Sino-America International Management Institute, and Director of the Sino-French Excellence Institute. Furthermore, Dr. Liu established China¡¯s first Masters Program on Sustainable Development at China Agriculture University in partnership with the University Paris Dauphine (MSD). He served as adjunct professor at Seton Hall University, Montclair State University, and University of Maryland. Dr. Liu¡¯s area of research and teaching covers a variety of disciplines including marketing, business ethics, cross-cultural communication, and business law. Dr. Liu also serves on the council for China¡¯s Society of Economic Transitions and Research Center of Multinational Corporations. He is also a member of the Advisory Council to the Beijing Foreign Investment Administration and to Shizuishan City of Ningxia Autonomous Region.
Jiaqi Zhang is the doctoral student at business school, university of international business and economics, the major is human resource management and organization behavior. He was awarded ¡°National Scholarship¡± by The Ministry of Education of the People's Republic of China, ¡°research scholarships¡± by UIBE and business school. His main research areas are individual decision-making activity, supervision of capital market and corporation social responsibility. Currently, he has published two articles on CSSCI, besides, he Host one project of the university level, participate in two projects of the provincial level and one project of the international level.

Abstract

Business and society are inextricably linked, and corporate philanthropy is an important constituent of this link. Depending on context and culture, considerable variations of roles exist that societal stakeholders occupy or expectations that they have of business. In this paper, we examine how philanthropy connects to various historical, political, cultural, social, and economic dimensions in modern-day China to understand how philanthropy occupies important functions conventionally associated with corporate responsibility (CR). Even though philanthropy has fallen out of favor in the international CR literature, it is nevertheless part of contemporary China, deeply rooted in the past and in contemporary relations between business and society. By examining historical and contemporary factors that contribute to how philanthropy is shaping understandings of the responsibilities of business to society, we will show in this article the rich repertoire of registers that business and society can draw on when defining roles and expectations, and that the choice of register is largely driven by creativity and pragmatism. To understand the role of philanthropy in China today, one must understand the systemic relations between state and business, and the all-encompassing and state-managed drive toward economic and social development. By presenting the importance of philanthropy and how it helps to understand the increasingly powerful role of Chinese business in local and global contexts, we hope to encourage a closer examination of philanthropy from a non-Western perspective in general, as well as policy-relevant and change-oriented academic research on corporate philanthropy in China in the context of CR in particular.

Keywords

Corporate social responsibility, philanthropy, politics, Confucianism, communism, modernity, China

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Authors

Wayne Visseris director of the think-tank and media company, Kaleidoscope Futures, Professor and Chair in Sustainable Business at the Gordon Institute of Business Science, Senior Associate at Cambridge University¡¯s Institute for Sustainability Leadership and Vice President of Sustainability Services at Omnex Inc. His work as a strategy analyst, sustainability advisor, CSR expert, futurist and professional speaker has taken him to over 70 countries in the past 20 years. Dr Visser is author of 24 books ¨C including Sustainable Frontiers: Unlocking Change. Through Business, Leadership and Innovation ¨C and writes for The Guardian newspaper. Dr. Visser has been recognized as a top 100 thought-leader in trustworthy business and received the Global CSR Excellence & Leadership Award. He founded CSR International, after obtaining a PhD in corporate social responsibility. He previously served as Director of Sustainability Services for KPMG and Strategy Analyst for Capgemini in South Africa. Dr. Visser lives in Cambridge, UK. (www.waynevisser.com).
Chad Kymalis the founder and CTO of Omnex Inc. Omnex specializes in Integrated Management Systems and Risk Analysis for Social Responsibility. Chad has written many papers on integrating Social Responsibility and Sustainability with Quality, Environment, and Safety for the American Society for Quality (ASQ). He has also recently published a book on Integrated Management Systems, which includes the integration of Social Responsibility standards in organizations using Risk Management, Process Control, and Auditing also through ASQ. Over Chad's successful career, he has served on the Malcolm Baldrige Board of Examiners, and has received numerous quality achievement awards, including the Quality Professional of the Year award by the American Society of Quality Automotive Division in 2005. Chad is also a keen environmentalist who has planted over 1800 trees working with the Amma Center of Michigan, and operates his property in Michigan as a 100% solar property to reduce his carbon footprint.

Abstract

Integrated Value Creation, or IVC, is an important evolution of the corporate responsibility and sustainability movement. It combines many of the ideas and practices already in circulation, like corporate social responsibility (CSR), sustainability and creating shared value (CSV), but signals some important shifts, especially by focusing on integration and value creation. More than a new concept, IVC is a methodology for turning the proliferation of societal aspirations and stakeholder expectations, including numerous global guidelines, codes, and standards covering the social, ethical, and environmental responsibilities of business, into a credible corporate response without undermining the viability of the business. Practically, IVC helps a company integrate its response to stakeholder expectations (using materiality analysis) through its management systems (using best governance practices) and value chain linkages (using life cycle thinking). This integration is applied across critical processes in the business, such as governance and strategic planning, product/service development and delivery, and supply and customer chain management. Ultimately, IVC aims to be a tool for innovation and transformation, which will be essential if business is to become part of the solution to our global challenges, rather than part of the problem.

Keywords

Integrated value, sustainability, social responsibility, CSR, quality, shared value, integration, management systems, standards

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Authors

Zhirong Duan is Assistant Professor at the School of Economics and Management of Tsinghua University, Beijing, China. She obtained a Ph.D. in management from Tsinghua University and a Ph.D. in marketing from the University of New South Wales. Her major research areas include macromarketing, international business, corporate social responsibility and women entrepreneurship.
Peiyuan Guo is General Manager and Co-founder of Syntao Co., Ltd. He received his Ph.D. from the School of Public Administration in Tsinghua University and has been an active researcher and consultant in the fields of corporate social responsibility, socially responsible investment and corporate culture.
Wen Li
Kunlun Energy Company Limited, Beijing, China
Man Yu and Hongfu Zhang
SynTao Co., Ltd., Beijing, China
Jing Zou
NDRC, Beijing China
Marius Zorn
School of Economics and Management, Tsinghua University, Beijing, China

Abstract

This report is the result of a study project conducted by SynTao Co. Ltd. (SynTao) and the School of Economics and Management at Tsinghua University (Tsinghua SEM) from October 2014 to June 2015 on Chinese extractive industry¡¯s overseas investment transparency and risk management. Through a comprehensive case study and survey, the study set out to understand the perception of Chinese extractive companies on social and environmental risks and the factors that differentiate companies¡¯ disclosure-related behaviors. It is found that although most responding companies acknowledge the role of transparency in mitigating the companies' overseas investment risks, only 28% of the companies surveyed knew and implemented the transparency-related international rules or initiatives, among which the United Nations Global Compact and the Global Reporting Initiative (GRI) have the highest cognition and participation. The Guidelines for Social Responsibility in Outbound Mining Investments promulgated by China's Chamber of Commerce of Importer and Exporters in Metals, Minerals, and Chemicals and the Extractive Industries Transparency Initiative (EITI) focusing on the extractive industries, also, have relatively high awareness. Companies' official websites are the dominant mechanism for disclosure, while the importance of corporate social responsibility (CSR) reports is also well recognized. The companies with longer overseas investment histories demonstrate more sophisticated skills in handing transparency, as do state-owned companies and public companies. The content analysis of country-specific CSR reports issued by Chinese extractive companies in host countries indicates that the effectiveness of disclosure is worth noticing. Finally, in this study, challenges and opportunities for Chinese extractive companies are discussed, followed by implications for both practitioners in the industry and policy makers.

Keywords

Extractive industry, Chinese overseas investment, transparency, risk management

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Author

Mingqiang Hou is a student in the School of Law, University of International Business and Economics. Interests of research areas include international business law, international investment and international business ethics.

Abstract

The Chinese economy is becoming more internationalized these years, and Chinese enterprises are stimulated by the current ¡°one belt, one road¡± initiative, as well as the ¡°going out¡± strategy to increase their overseas investment, though there are accompanying more risks to deal with. Based on the present situation, this article aims to inform Chinese enterprises of the legal and ethical challenges in overseas investment activities and proposes suggestions on how to achieve sustainable business by identifying the investment risks and analyzing their root causes.

Keywords

Chinese enterprises, overseas investment, legal risk, ethical risk

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Authors

Lena Berger
University of Basel, Basel, Switzerland
Manfred Max Bergman
University of Basel, Basel, Switzerland

Abstract

Our primary aim with this article is to explore the foundational role of context and culture on corporate responsibility expectations in South Africa. The secondary aim is to develop an assessment and analysis tool that captures adequately the influence of context and culture on corporate responsibility expectations, which may be adapted to study corporate responsibility issues between different contexts, cultures, business sectors, stakeholder groups, regions, nations, etc. Overall, this article contributes to the empirical study of corporate responsibility within international policy and business applications. To explore context and culture in a specific environment, we studied advanced, i.e. post-BA economics and management students in South Africa, who provided written essays on their corporate responsibility expectations. This data collection strategy allowed respondents to use their own words, logic, and understandings about the issues under investigation. We analyzed the data using content configuration analysis and multidimensional scaling within a Hermeneutic Content Analysis framework.The main findings are that our respondents bypass or transcend the mainstream academic literature on corporate responsibility. Their responses are more akin to the debates around sustainability. Economic and social development are the main spheres within which corporate responsibility is conceptualized among our South African advanced economics students, while environmental issues are mostly absent. The two spheres are related in that the dimensions that form the spheres are interconnected: the economic sphere is interdependently tied to social development. A finer analysis of the MDS structure reveals close ties between the respondents¡¯ expectations of the responsibilities of corporations, the historical context, and cultural dimensions prevalent in South Africa.

Keywords

corporate responsibility, culture, multidimensional scaling, Hermeneutic Content Analysis, South Africa

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Authors

Shengtian Hou
School of Management, Beijing University of Chinese Medicine, China
Yongkang Zhang
Tulane University, New Orleans, Louisiana, USA

Abstract

The Chinese market and Chinese companies are of increasing importance for the global pharmaceutical industry. However, pharmaceutical companies in China have been confronted with persistent and increasing criticisms for the poor quality of medicine, environmental pollution, and practice of commercial bribe in marketing. Along with the increasing call for a higher standard for corporate social responsibility (CSR), there appears a call for construction of a measurement system to help business practitioners in their efforts to take CSR initiatives. This study aims at establishing a CSR measurement system for pharmaceutical companies in China. The Delphi method with a panel of 26 experts holding diverse backgrounds is adopted during the research. Two rounds of interviews are conducted to collect experts¡¯ opinions on the candidate indicators of the CSR measurement system. After two rounds of Delphi survey, a CSR measurement system for Chinese pharmaceutical companies is suggested. This three-level system includes eleven stakeholders and 96 indicators. In this study, a CSR measurement system based on stakeholder theory is developed with adoption of the Delphi method. The measurement system could serve as an industry consensus and assist the pharmaceutical companies to conduct business with a greater conscience. The drug administration agency can also use this system as a complementary method to strengthen industry supervision and regulation.

Keywords

corporate social responsibility, CSR measurement system, Chinese pharmaceutical industry, Delphi method

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Author

Liu Gangfang
The School of law, University of International Business and Economics, Beijing, China

Abstract

This paper discusses the context and huge influence of the globalization and climate crisis; it, analyzes the necessity of creating low-carbon development. It elaborates upon the corporation's role as an enterprise citizen that should bear social responsibility for playing an important role in the global climate crisis and low carbon development. It analyzes the general framework of corporate governance, focusing on how to blend in corporate governance structure and how to promote corporate governance structure to develop low carbon methods in the best way possible. Finally, it holds that incorporating low carbon concepts into the corporate governance process is necessary and feasible.

Keywords

low-carbon economics, corporate social responsibility, corporate governance

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Authors

Jannatul Ferdous
Birmingham City University, Birmingham B42 2SU, United Kingdom
M. Nusrate Aziz
Multimedia University, Cyberjaya 63100, Malaysia

Abstract

Existing literature has revealed that the demand for "ethical products" has been increasing over time. However, very little has been published on consumer perception about the ethical behavior of supermarkets and their response thereto. This research, therefore, fills the vacuum. We examine consumer perception about the ethical business of supermarkets operating in the UK and its impact on consumers' supermarket choice. Both primary and secondary data are used; primary data includes a questionnaire survey involving 222 consumers in major cities in the UK. We examine the significant code of business ethics, consumer ethical spending and awareness, supermarkets¡¯ ethical performance and popularity, and consumer perception about supermarkets¡¯ ethical behavior and their response thereto. A combination of graphical and numerical methods, such as frequency distribution, correlation and analysis of variance, has been used for estimation. Estimated results confirm the significant code of ethics in the supermarket business as perceived by consumers. Specifically, environmental awareness, fair trade, concern about labor law and animal welfare are found to be a significant code of ethics in the retail business. However, in practice, supermarkets are selected based on whether they maintain organic produce, fair trade, and animal welfare. The results suggest that there is a significant "knowledge gap" between actual ethical business practice and consumers' perception about it. There is also a significant "behavioral gap" between consumer perception about ethical business and their response to it. Demographic variables make a significant distinction in ethical business choice. Education, income, and ethnicity play a significant role in ethical supermarket selection.

Keywords

ethical business, consumer perception, supermarket selection, behavioural gap

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Author

Gerrit De Vylder
Faculty of Economics and Business Studies, University of Leuven, Leuven/Antwerp, Belgium

Abstract

The rise of the West from the 18th to the 20th century has, so far, been the focus of attention of conventional international historiography. But in the very near future, the main object of historical scholarship may be how to explain the rise of China and its neighbors in the 21st century. Other perspectives and historical facts will most probably come to the forefront. How we interpret preceding centuries depends on the nature of what needs to be explained. Meanwhile a Eurocentric approach to world history continues to dominate conventional international historiography. Considering the scale of globalization today, should there not be a more balanced approach to world history?

Keywords

comparative history, comparative business culture, intercultural communication, European history, Chinese history, Buddhism, Confucianism

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Author

Qian Jin
Chinese Academy of Social Sciences, Institute of Economics, Beijing, China

Abstract

This paper identifies five roots of the lack of honesty in the current China market. The first is history. After the Song dynasty, events distorted Chinese culture, forming a real slave culture and affecting the development of the society and paving the way for a lack of honesty in society. A second is Westernized methods of education. Western education emphasizes the importance of knowledge and problem solving rather than one¡¯s social responsibilities. In contrast, traditional Chinese education teaches people how to behave well, serving the function of religion to some extent. By abandoning traditional Chinese education and adopting the Western one without its accompanying social and religious tenets, the embrace of Western education reduced Chinese students¡¯ awareness of social responsibilities and reduced honesty in the market. Third, the admiration of violence is a factor. Ignoring the basics of human civilization during the present age, unregulated propaganda of the impact of violence, no distinction between the violence against feudalism and foreign enemies and the one to eliminate exploiters and others, the blind advocacy of violence through public opinions and literary forms, and the blind advertisement of painstaking sacrifice for success contributed to the lack of honesty in the Chinese market. A fourth factor is the slighting of the importance of equity. Modern society cannot just prioritize "efficiency" and must consider equity. Ignoring equity can lead to a lower efficiency than expected, as well as severe dishonesty in the market. The last factor is backward or old ways of thinking, which is unsuited to the contemporary world.

Keywords

Honesty, culture, education, civilization, thought

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Author

Thomas Myers President and CEO of T. A. Myers; Co. Denver, USA
Laurence A. Steckman
Eaton; Van Winkle LLP, NY. USA

Abstract

Recent negative publicity regarding fraud in Chinese public companies that entered the U.S. markets via reverse mergers has tended to paint all Chinese companies with the same toxic brush. Such capital markets cynicism regarding Chinese listed companies is overblown and counterproductive. A recent study has shown that the performance of Chinese companies, when compared to their peers in the U.S. reverse merger market, was actually superior to their Western company counterparts. Notwithstanding, much can be done to improve important aspects of corporate transparency and disclosure in China. The authors examine corporate governance issues particularly endemic to China and offer observations to ameliorate perceived market dysfunction while building a bridge towards greater global capital market efficiency.

Keywords

reverse merger; corporate governance; company transparency; insider trading; related party conflicts

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Author

Shengtian Hou
School of Management, Beijing University of Chinese Medicine, China
Li Li
School of Humanities and Social Sciences, Beijing Forestry University, China

Abstract

The modern CSR theory was originated in the United States. As a result of the evolution of history, culture, and business development, both the theoretical study and the application of CSR differ in terms of approaches and roadmap. This paper tries to discuss the differences in the process of CSR development between China, Europe, and the United States. Furthermore, the root reasons accounting for the differences from the viewpoint of history, economics, and development of corporations are also explored. The discussion will contribute to the promotion of the theoretical study and practice of CSR in China.

Keywords

CSR; comparative studies; China; US; Europe

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Author

Weihui Fu, Feng He, Han Peng, Na Zhang
Dongling School of Economics and Management,
University of Science and Technology Beijing, Beijing, China

Abstract

Based on the study of China¡¯s business ethics index (BEI) in 2009 (Tsalikis; Fu, 2010), this article intends to improve the BEI questionnaire and for this purpose analyzed 1057 questionnaires; it concluded that China¡¯s BEI is 99.3, which is much lower than that of 2009's. This means the respondents have a negative opinion of China¡¯s performance in the field of business ethics. The four sub-indicators of BEI all fell lower from those in 2009; especially, BEI personal/past and BEI vicarious/future dropped dramatically. However, the results of this study also showed that the subjects are still very optimistic about the future of the ethical behavior of Chinese enterprises, but most are concerned about the levels of vicious competition and product safety.

Keywords

business ethics index; BEI; young consumer; China

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Author

Geoffrey (Kok Heng) See
Semester-abroad at Tsinghua University, Beijing, China

Abstract

China?faces environmental problems emerging from decades of rapid? environmental growth coupled with the lack of corporate responsibility in this area. China Harmonious Society policy, introduced?in?2006, provides a useful framework for promoting Corporate Social Responsibility (CSR) in the area of environmental protection. However, there is a need to better define the roles for corporations under Harmonious Society to make corporations truly responsible. This paper explores the isomorphic and economic pressures on firms to adopt corporate social responsibility (CSR) using a model that explains inter-country and inter-company variations in general levels of CSR activity. The model is based on a meta-analysis of comparative literature on CSR development to develop a framework that divides causes of CSR in a country into environmental constraints and discretionary responses. Understanding what drives the development of CSR allows us to understand what measures the Chinese government can take to influence the level of CSR. My paper further argues that in order to raise the level of CSR on environmental issues in China, Harmonious Society has to shape both environmental constraints and discretionary responses to be truly effective.

Keywords

Corporation social responsibility; environmental constraints

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Author

Shuqin Wang
Capital Normal University, Director, Institute for Ethics and Moral Education, Beijing, China

Abstract

It is a genuine concern for corporations to consider whether CSR (Corporate Social Responsibility) should be given more priority than making profits. There are two kinds of opinions on this issue; one is the burden opinion, which means the practice of CSR is a burden on corporations and should be abandoned, and the other one is the proliferation opinion, which means corporations can make handsome profits by good performance of CSR. In fact, corporations¡¯ attitudes toward CSR mainly depend on the fitness of CSR with profits. Corporations will usually hold a positive attitude if their practice of CSR contributes to the increase of profits. Otherwise, they will hold a negative attitude towards CSR.

Keywords

CSR; profit; burden opinion; proliferation opinion

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Author

Liu Baocheng
Director, Center for International Business Ethics (CIBE) of University of International Business and Economy (UIBE),Member, Council of Chinese Institute of Economic Ethics, Beijing, China

Abstract

Is the study of ethics a scientific or a practical proposition? To determine whether a study can be classified in the areas of science, a simple test is that, if it dares to ask what; and why; questions. The task of ethics research is to explore the origin and law of human activity, behaviors, interaction and its positive and negative effects on their objective and subjective worlds through the objective phenomenon. The purpose of research on ethics is to identify the reasons for human thought and activity, facilitating human beings to be harmonious with the objective world and feel at ease with the subjective world in the present and future as a community. As Bertrand (1910) said,the object of ethics, by its own account, is to discover true propositions about virtuous and vicious conduct, and that these are just as much a part of truth as true propositions about oxygen or the multiplication table (p. 3). It is obvious that ethics is a legitimate human science, exploring truth systematically. Thus, the study of ethics is not something outside science and it is one among the sciences.

Keywords

business ethics; pratical proposition

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Author

Krzysztof Grabowski is a capital market and corporate governance expert. He worked in several market institutions ¨C brokerage houses, stock exchange, market supervisory body. He is advising developing countries on capital market regulations and company law. Member of national and international corporate governance organizations. Lecturer of corporate governance in Kozminski University.Warszawa, Poland. e-mail: kgrabowski@kozminski.edu.pl

Abstract

As the last financial crisis was caused by abuse of trust on the part of the financial institutions, this paper describes a proposed structure integrating sustainability and ethics based on trust and confidence. The author describes relations between business ethics and some theories of corporate governance and presents a possible answer to the question of whether trust can be measured. Then, he sketches a square of rules and regulations in which the financial market with its regulations is immersed, split into four overlapping sectors of financial market law, company law, codes of best practices and corporate governance principles. Interactions between these sectors lead to the creation of an inner circle describing the integration sphere where all the areas merge together in harmony. Last, the author formulates a proposal for the broadest understanding of corporate governance- corporate harmony.

Keywords

corporate governance, corporate harmony, rules and regulations square,business ethics, financial institutions

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Author

Dr. Roderick O¡¯Brien is an Australian lawyer. He is adjunct research fellow at the University of South Australia, and a member of the International Legal Practice Committee of the Law Society of South Australia.University of South Australia, Adelaide, Australia. email:Roderick.O'Brien@unisa.edu.au

Abstract

The principle of subsidiarity is a principle of social organization. In recent years, the application of this principle has been found in areas as diverse as international law (especially European Union law), the social teaching of the Catholic Church, and in the structuring of organizations, such as credit unions and co-operatives, and it is influential in a variety of political debates. The key elements of the principle are its perspective from the lowest level to higher levels and its insistence that the purpose of higher levels includes help or support to lower levels. As the principle becomes better known in Asia, there is potentialfor its application to assist co-operative development of disputed resources and to assist in the growth of globalized professional and business ethics.

Keywords

subsidiarity; European Union; South China Sea; social teaching of the Catholic Church; global ethics; professional ethics

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Author

Dr. Paula Alexander Becker?earned her Ph.D. in Sociology from Rutgers University, Graduate School of Arts and Sciences, New Brunswick, New Jersey and her J.D. from New York University School of Law in New York. Dr. Alexander Becker has taught in the graduate Masters, Human Resource Management and MBA programs of the Stillman School of Business, Seton Hall University, South Orange, New Jersey, as well as the undergraduate business program. Paula has developed the curriculum for Corporate Social Responsibility, which is a core course in the MBA program at the School of Business at Seton Hall University. She is authoring a textbook, Corporate Social Irresponsibility. Her recent research examines the relationship between firm financial performance and its ethics. She became interested in the philosophy of Emmanuel Levinas as a philosopher who profoundly affects the way corporations do business.

Abstract

Emmanuel Levinas developed an ethics of inter-subjectivity and responsibility. According to the phenomenology of Levinas, moral impulse and intuition are elicited by the encounter with the Other. Encounter with the Other, particularly the face and the voice of the Other, gives rise to a sense of responsibility for that Other. Business leaders are challenged by Levinas¡¯ approach, to move from a way of doing business that insulates the corporations and its constituent members from customers and other stakeholders to engagement with the other(s) in ways that enhance their wellbeing, by creating positive social effects from the work of the corporation and engagement with corporate stakeholders.

Keywords

alterity, business ethics, corporate social responsibility, ethics of responsibility, inter-subjectivity, Emmanuel Levinas, Levinas, the Other (Autrie), phenomenology, stakeholder, stakeholders

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Authors

Javier Siles Rojas was born in Madrid, Spain, in 1981. He obtained a short-cycle degree in Business Studies at University Carlos III of Madrid, and later a long-cycle degree in Business Management and Administration at the same university. Currently he is an M.A. candidate at the International Master in Business Administration (IMBA) program at Providence University, Taichung, Taiwan and also a research assistant on topics related to international business and international finance.

Prof. Dr. Ram¨®n Santacana Feliu was born in Barcelona (Spain) in 1958. After studies of Economy, Psychology, Theology, and Visual Arts in various cities in Spain, he obtained a ¡°cum Laude¡± grade in his PhD at the University of Barcelona (Spain) in the area of economics and business. The dissertation researched the effects of Taiwanese investments on Mainland China¡äs social values. From 1988 to 1991 he was teaching at the Foreign Language University of Xian and in the University of Nanjing, both in China. Since 1991 he has been based at Providence University in Taichung where he is teaching on economic and social issues of South American Countries, Global Business Ethics and International Business Management. In 2010 he spent a sabbatical teaching business Ethics in Sacred Heart School of theology in Milwaukee (USA). His research focus is on Business Ethics topics connected to Economic Globalization and Culture. He also has a passion for oil painting and has held several solo exhibitions in Taiwan, USA and Spain

Abstract

Credit ratings have become a key factor in today¡¯s financial markets. Their importance influence not only private finances but, also, they influence a country¡¯s finances, budget, economic policies, politics, and, in the case of Europe, credit ratings are modeling the whole EU structure and institutional development. Today, credit ratings are affecting the wealth and welfare of entire populations. The possibility of ¡°inside¡± credit ratings has important economic and social implications and deserves study from an ethical point of view. In the present paper, we analyze the role Credit Rating Agencies (CRAs) in the European Union Sovereign Debt Crisis and its ethical implication. Using a historical, descriptive, and comparative methodology, this paper first presents 1) the development of the European Union sovereign debt crisis, then compares 2) the levels of debt in relevant developed countries, 3) presents the relevance of Rating Agencies in the financial markets, 4) analyzes their role in the European Union Sovereign Debt Crisis, 5) assesses the updating of CRAs regulation, 6) reviews the feedback from governments and other Institutions and 7) draws some conclusions and recommendations.

Keywords

credit rating; European Union; debt crisis; CRA regulation

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Author

Zhou Shoujin is an associate professor in the International College for Chinese Studies, Peking University. His fields of research include Chinese language and culture, Chinese traditional philosophies and their contemporary influences. He has published a monograph on the texts of excavated bamboo books of the Warring States period in Chinese history, as well as over twenty papers on historical linguistics, philosophy and modern Sinology.

Abstract

Corporate philanthropy has played an indispensable role in public welfare areas 1 in China since its emergence in the 1990s. As an ¡°emerging philanthropic market¡± (Michon & Tandon, 2012) where entrepreneurship or corporate citizenship is still to be entrenched in the society, the progress of corporate philanthropy in China is crucial for cultivating the philanthropic spirit of society and fostering the growth of civil society. Therefore, it is worthwhile to pay more attention and make more investigation into the theory and practice of corporate philanthropy in China (Lu, 2002; Ge, 2007). The present paper aims to make a general review of the state of this particular area and to discuss potential ways to optimize current frameworks.

Keywords

corporate philanthropy, civil society, institutional constrains, resources

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Author

Yin Juelin?is a lecturer in the International Business School Suzhou (IBSS) at Xi¡¯an Jiaotong-Liverpool University. She holds a PhD in management and has been a post-doctoral fellow in Harvard University in year 2011-2012. Her research interests include corporate social responsibility and business ethics in the emerging country contexts.


Professor Dr. Stephan Rothlin
?was born in Z¨¹rich/ Switzerland in 1959. After studies of philosophy, music and theology in various cities in Europe he finished his PhD at the University of Innsbruck/ Austria in the area of philosophy and economics. From 1992 until 1998 he run the academic Centre AKI at the University of Z¨¹rich/ Switzerland while lecturing in the Institute for Empirical Research in Economics at the University of Z¨¹rich. Since 1998 he lives and works in Beijing/ China. Together with Chinese colleagues he co-founded in 2004 both the Center for International Business Ethics, CIBE, at the University of International Business and Economics, Beijing, as well as the Association for International Business and Economics, AIBE, registered in Hong Kong. His research focus is to explore new economic and ethical approaches in the Asian context. In November 2010 he became professor of the University of International Business and Economics, Beijing. His websites are: www.cibe.org.cn ; www.aibethics.org www.macasbe.selfip.org; www.crema-research.ch

Abstract

With the advent of globalization, the track record of multinational companies (MNCs) has been vague in relation to their corporate social responsibility (CSR) in developing countries. What is even lacking is a better understanding of what exactly is required of today¡¯s MNCs to simultaneously generate profits for shareholders and satisfy the legitimate demands from the multiple stakeholders in the countries where they operate. Adopting the stakeholder theory framework and using a two-stage interview method, this study explores the CSR understanding and practices of MNCs considered as active in CSR. The findings reveal some interesting CSR practices by 11 MNCs in China. We discuss implications of the stakeholder approaches to CSR of MNCs generally and peculiarities in developing countries more specifically.

Keywords

corporate social responsibility, stakeholder theory, multinational companies, China

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Author

Professor Gerhard B?wering?received his Ph.D. in Islamic Studies from McGill University (Montreal) in 1975. From 1975 until 1984 he was Assistant and Associate Professor at the University of Pennsylvania (Philadelphia). In 1984 he was appointed Professor of Islamic Studies at Yale University, his present position. He is a member of the American Philosophical Society and the American Oriental Society and the recipient of a Guggenheim Fellowship.

Abstract

The paper is a preliminary and introductory sketch of the background necessary to study Islamic ethics in China. (1) It situates Chinese Islam in the spectrum of world religions and within the context of the ¡°Three Teachings¡± of China. (2) It traces the spread of Islam into the central Chinese lands and highlights the important role Sufism played in its expansion into the heart of China. (3) It offers an overview of the origin and development of Islamic literature in Chinese that drew on sources written mainly in Persian (F¨¡rs¨©) by Muslim authors of Central Asia and Iran. This body of literature was translated or adapted by a group of Chinese authors, who produced a collection of works written in Chinese and known as the Han Kitab (compiled between 1630 and 1730). Amalgamating Islamic patterns of thought with Confucian, Buddhist and Daoist ideas, these works developed the foundations for a comprehensive vision of Chinese Islamic ethics. This vision, in turn, gave moral and social cohesion to the Hui communities in China. (4) Finally, the paper identifies substantive issues of Islamic ethics in the Chinese context and draws up a catalog of issues that present avenues of research for Chinese Muslim ethics in a general and applied sense.

Keywords

Islamic ethics, Chinese Context

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Author

Dennis McCann, Professor Emeritus of Agnes Scott College, Atlanta/Decatur, Georgia, USA, has taught business ethics in the United States for over 30 years and has been involved in research, lecturing and teaching business ethics in China and South East Asia for the past 15 years. Dr. McCann is particularly concerned with identifying culturally appropriate teaching materials for Asia, based on his ongoing research in the fields of philosophy and religious studies. Dr. McCann was formally the Director of Research and Development at the Hong Kong America Centre (HKAC) during his Fulbright year (2005-2006), and served as Visiting Professor in the Department of Philosophy and Religion, Hong Kong Baptist University (2006-2008).

Dr. McCann served as Executive Director of the Society of Christian Ethics, the premier academic association for professors of religious ethics in the United States (1996-2001). He is the author of several books and dozens of scholarly articles (see the attached curriculum vitae for details), most recently the co-author, with Prof. Lee Kam-hon and Ms. Mary Ann Ching Yuen, of Christ and the Business Culture, which is to be published this year by Chinese University Press in Hong Kong. Over the past 15 years Dr. McCann has taught, given workshops, and lectured in universities in Hong Kong, China, the Philippines, Malaysia, Japan, Thailand, Indonesia, and India.?

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Author

Krzysztof Grabowski?is a capital market and corporate governance expert. He worked in several market institutions ¨C brokerage houses, the Warsaw stock exchange and market supervisory bodies. He is advising developing countries on capital market regulations and company law. He is member of national and international corporate governance organizations and a lecturer of corporate governance at Kozminski University.

Abstract

As the last financial crisis was caused by abuse of trust on the part of the financial institutions, this paper describes a proposed structure integrating sustainability and ethics based on trust and confidence. The author describes relations between business ethics and some theories of corporate governance and presents a possible answer to the question of whether trust can be measured. Then he sketches a square of rules and regulations in which the financial market with its regulations is immersed, split into four overlapping sectors of financial market law, company law, codes of best practices and corporate governance principles. Interactions between these sectors lead to the creation of an inner circle describing the integration sphere where all the areas merge together in harmony. Lastly, the author formulates a proposal for the broadest understanding of corporate governance ¨C corporate harmony..

Keywords

corporate governance; corporate harmony; rules and regulations square; business ethics; financial institutions

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Author

Priya Nair Rajeev?has a BA, MA and a Ph.D in Management Studies from I.I.T Madras. She has worked as a freelance career consultant and conducted several workshops in the areas of Women¡¯s Empowerment and Personality Development. As an Associate Professor of Organizational Behavior, her research interests include Business Ethics, Emotions and Decision Making, Creativity and Leadership.

Abstract

Inculcating a strong sense of ethical values among tomorrow¡¯s managers and leaders has become both a necessity for industry and an academic imperative, during these times of scams and governance failures. This paper examines challenges Indian business schools in general and LIBA in particular faces in teaching business ethics and related areas and the attempts at developing a pedagogy that can help in grooming effective and ethical managers. One of the ways in which LIBA is attempting to rise to the challenge is by adopting a three-pronged approach of research, education and co-curricular activities aimed at cultivating a strong ethical ethos. The experiments have borne fruit in the form of books and research papers on ethics and corporate governance and course in ethics and related areas. Further students actively contribute to the administration of our CSR Award, besides organizing conferences on issues with an ethical significance and engaging in community interventions.

Keywords

teaching ethics; corporate governance; CSR; pedagogy; research; India

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Author

Priya Nair Rajeev is a university rank holder at all three levels [Pre-Degree, Graduation, and Post Graduation] and a Ph.D in Management Studies from I.I.T Madras, she possesses many years of experience as a faculty member. She has worked as a freelance career consultant and conducted several workshops in the areas of Women¡¯s Empowerment and Personality Development. An Associate Professor of Organizational Behavior, her research interests include Business Ethics, Emotions and Decision Making, Creativity and Leadership. She has published papers in international and national peer reviewed journals as well as presented in Indian and International conferences. She coordinates the institute¡¯s industry interface papers through the Beyond Management initiative which offers students an opportunity to interact with industry leaders and learn from them. She is also the Chairperson of the Centre for Business Ethics and Corporate Governance at the Institute. The author¡¯s thesis of ¡°Impact of the Organizational Environment on Unethical Choices: A Moderated Mediating Relationship of Moral Disengagement and Ethical Empowerment¡± has been chosen, by the editor(s) of Management Decision, as a Highly Commended Award Winner of the 2011 Emerald/EFMD Outstanding Doctoral Research Awards in the Management and Governance category.

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Author

Anton Jamnik is Assistant Professor of Philosophy and Religion, University of Ljubljana, since 1997. In 1996, he became member of the Matura Subject Commission for Philosophy. Since 2001 he is the president of The Republic Commission for Philosophy and in 1997 The National Examinations Centre appointed him External Examiner. Since 1995 he has been chief editor of the catholic magazine Tretji dan. From its foundation in 1993 till 1997 he was a secretary of the Joint Commission for the relationship between the Roman Catholic Church and the Government of the Republic of Slovenia. Since 1997 he has been a member of the Board of Priests of the Ljubljana Diocese and a member of the Board of Advisers of the archbishop and metropolit of Ljubljana Dr. Franc Rode.

Abstract

Can there be any doubt nowadays that business ethics is of extreme importance? The economic crisis in the entire world, as well as in Europe, where its impact has been especially acute, prompts us to reconsider the relation between material possessions (wealth) and man. Based on what has actually happened, it is evident that man has become enslaved to material goods, when in fact the opposite should have happened. However, to avoid empty moralising, the problem does not lie in contesting a person¡¯s right to personal possession, which was clearly defined by John Locke (and many great thinkers before him). The real problem arises when personal possessions take over man¡¯s freedom and his dignity, when man is overwhelmed by greed, gluttony, and arrogance, when he is confident of being the centre of the world with his economic power. This article will analyze the extent situation and hope to stimulate personal reflection in the field of business ethics, as well as on the level of personal relationships in our society, in Europe and throughout world.?

Keywords

deontological ethics; economic utilitarianism; business decision-making

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Author

Shaoping Gan earned his doctoral degree of philosophy from Munich University, Germany. He now serves as the Dean of the Center for Applied Ethics at the Chinese Academy of Social Sciences, and Vice Director of the Research Office of Ethics in the Institute of Philosophy of Chinese Academy of Social Science. He also supervises Ph.D. candidates in the graduate school of the Chinese Academy of Social Sciences. At the same time, he is a part-time professor in Southeast University, director of several committees, and editor of?World Philosophy. His research mainly focuses on applied ethics, Western ethics, and German philosophy. Principal works by Shaoping Gan include,?Wisdom of Ethics,?On the Front Line Ethics, Second Line Ethics, Applied Ethics Argumentation,?and?Clone People- an Impassable Forbidden Zone.

Abstract

China is undergoing a great change from a traditional society based on obligations to a modern society based on rights. In modern society human rights are basic behavior codes and values needed, and everyone¡¯s rights should be respected, which is a fundamental principle to the whole society, individuals and corporations. Therefore, corporation respecting human rights have become a national legal requirement with mandatory. The company that respects human rights could ride the trend of social expectations and earn inestimable business profits. In other words, corporation should not only focus on short-term profits but also commit itself to assure all the others¡¯ interests respected, in this way, maximum profits could be reached in the long term.

Keywords

human rights; corporation; soft-power; social responsibility; economic ethics

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Author

Barbara Krug is a Professor for Economics of Governance at the Rotterdam School of Management, Erasmus University, Netherlands, and the Manchester Business School, Manchester, United Kingdom, and visiting fellow at INSEAD, Fontainebleau, and the University of Technology, Sydney, Australia. One of her most recent publications includes the book China¡¯s Rational Entrepreneurs. Also, Dr. Krug has co-authored the book?China in the 21st Century?and the article,?Framing China: Transformation and Institutional Change?in?The Management and Organization Review.

Abstract

The business ethics which we find in firms, implemented by managers and facilitated by formal economic institutions is socially embedded in the general perception of what economic development stands for. A country where monetary rewards get allocated to those who produce increasing market shares of their firms, and where social reputation is linked to conspicuous consumption as for example the US (or China?) follows another development path than, let¡¯s say the Netherland in the 16th century where prudency in management, modesty in consumption and long-term wealth accumulation led to the ¡°Embarrassment of Riches¡± (Schama, 1987). This paper is to examine the concept of development and happiness for a better social and economic progress.

Keywords

development; happiness; institutional choice

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Author

Roderick O¡¯Brien is an Australian lawyer. He was first admitted to practice law in 1971.In recent years, he has been researching professional ethics of lawyers in the People¡¯s Republic of China. He has published articles on ethics, and on the legal system of the PRC, in?the Australian Journal of Professional and Applied Ethics, China: an International Journal;?the?Hong Kong Law Journal; Chinese Cross Currents; Australian Ethics;?the?International Journal of the Legal Profession; The Law Teacher;?and the?Journal of International Business Ethics.

Abstract

Business and professional schools often include ethics instruction, and graduating students are often idealistic about their ethics. But this can change to ethical numbness. The paper examines five causes of ethical numbness among lawyers in the Asia and South Pacific region. How can we counteract this numbness, and maintain a strong sense of ethics among legal professionals? The paper identifies five strategies which are employed across the region to maintain the early ideals. (The paper was presented at the Eighth Annual International Business Ethics Conference; ¡°Rule of Law and International Business Ethics Conference¡±; 21-22 October 2011: University of International Business and Economics, Beijing.

Keywords

professional ethics; legal ethics; continuing professional development; lawyers associations

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Author

athleen M. Wilburn isAssociate Professor of Management who teaches graduate courses in Managerial Problem Solving, Managing the Organizational Management, and Scenario Planning. She has 25 years of management experience in the private and public sectors. She holds a doctorate from the University of Southern California.


Ralph Wilburn is Assistant Professor of Management who teaches graduate courses in Managerial Problem Solving, Managing the Organization, and Human Relations. He holds a Ph.D. from The University of Texas at Austin. His work experience includes managing training functions in the USAF as well as consulting work.

Abstract

The concept of Corporate Social Responsibility (CSR) is gaining support in the global business environment. Some companies are adopting a model, the Social License to Operate (SLO), as part of their CSR strategy. This paper provides background on the concepts of Corporate Social Responsibility and Social License to Operate with examples supporting the business case for them. It proposes a process based on stakeholder theory for identifying and classifying stakeholders that divides stakeholders into two groups: vested and non-vested. Vested stakeholder groups have a vote in the awarding of a social license to operate, while non-vested stakeholder groups have only a voice. By using a process based on alignment of the norms and values of the company, and the stakeholder groups, social licenses to operate can be negotiated that can allow a company to succeed in different countries and cultures.

Keywords

social license to operate; corporate social responsibility; ethical global business; stakeholder theory

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Author

Anton Jamnik is Assistant Professor of Philosophy and Religion, University of Ljubljana, since 1997. In 1996, he became member of the Matura Subject Commission for Philosophy. Since 2001 he is the president of The Republic Commission for Philosophy and in 1997 The National Examinations Centre appointed him External Examiner. Since 1995 he has been chief editor of the catholic magazine Tretji dan. From its foundation in 1993 till 1997 he was a secretary of the Joint Commission for the relationship between the Roman Catholic Church and the Government of the Republic of Slovenia. Since 1997 he has been a member of the Board of Priests of the Ljubljana Diocese and a member of the Board of Advisers of the archbishop and metropolit of Ljubljana Dr. Franc Rode. In 1997 he became young member of the European Academy of Science and Art in Salzburg. In August 2000 the archbishop Dr. Franc Rode named him director of St. Stanislav's Institution in Ljubljana. In 2008 he became member of European Academy of Science and Art in Salzburg. He has held lectures at Harvard University (USA), University of Boston, University of Oxford, Cambridge, Berlin, Bueno Aires (Argentina), Salzburg and other universities. Among his publications the most important book was issued in 1998 by Nova revija with the title Liberalism and the Question of Ethics. Other papers from the field of ethics and social questions have been published as well: Trstenjak's Ethical Comprehension of a Human Being, Between Values and Liberalism, Post-modern Ethical Perspective, Tolerance ¨C a Virtue for New Times, Europe Seeks for Its Soul, Destruction of Totalitarian Ideology and Social - Moral Crisis, etc.?

Abstract

The American Heritage Dictionary defines profession as "the body of qualified persons in an occupation or field. A major characteristic of a qualified person is the specialized knowledge of the profession: medical knowledge for medical doctors, accounting knowledge for certified public accountants (CPAs). Professionals have an ethical responsibility to have acquired the specialized knowledge before offering their professional services. Professionals are also expected to keep abreast of the knowledge enhancements through continuing professional education. Another characteristic of professionals is that they possess the mental attitude of serving the public with the best of their ability so as to earn the public trust. How does a profession enforce these ethical responsibilities? It should be achieved by self-monitoring, supported by a viable code of conduct. In fact, the existence of a code of professional conduct is considered a hallmark of any profession.

Keywords

ethical code; accounting profession; ethical responsibility

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Author

Stephen B. Young is Global Executive Director of the Caux Round Table. Mr. Young has published?Moral Capitalism, a well-received book written as a guide to the Caux Round Table ethical and socially responsible Principles for Business. In his 2008 book,?The Difference Makers, Prof. Sandra Waddock listed Young among the 23 persons who created the corporate social responsibility movement. Mr. Young was educated at Harvard College and Harvard Law School. He served as an Assistant Dean at the Harvard Law School and as the third dean of the Hamline University School of Law. He has taught at the University of Minnesota and at the SASIN Graduate School of Management in Bangkok, and has spoken at many workshops and conferences on corporate social responsibility and business ethics. Mr. Young has also taught at the University of Minnesota Law School, Carlson School of Business, the College of Liberal Arts and Minnesota State University ¨C Mankato. He has written numerous opinion articles for the Pioneer Press, the Minnesota Journal on Law and Politics and the Saint Paul Legal Ledger, and has been published in the Wall Street Journal, the New York Times and the Washington Post.?

Abstract

Use of the?I Ching?as a guide to business social responsibility can be recommended. Roughly speaking, the?I Ching?presents 64 states of yin and yang intermingled in different combinations of each. One state is pure yang; another is pure yin. The 62 other states have some part yang and some part yin; some have more yang, and others more yin. Each combination of yin and yang is a movement of the Tao, or the Way of Heaven. Human ingenuity cannot master the Tao by suborning it to human purposes, but must instead align with the Tao to experience success in the physical world. Business seeks such success in the physical world because it works with tangible things ¨C such as raw materials ¨C and produces material wealth. Business is, therefore, especially sensitive to movements in the Tao. Free markets can also be said to follow movements in the Tao. Such markets are not pre-determined, but flow from the ebbs and flows of human desires and efforts. Prices, for example, are not set in free markets by willful organizers, but result from interactions of different and independent orientations towards needs, desires, wants and values.

Keywords

I Ching; corporate responsibility

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Author

Priya Nair Rajeev is a university rank holder at all three levels [Pre-Degree, Graduation, and Post Graduation] and a Ph.D in Management Studies from I.I.T Madras, she possesses many years of experience as a faculty member. She has worked as a freelance career consultant and conducted several workshops in the areas of Women¡¯s Empowerment and Personality Development. An Associate Professor of Organizational Behavior, her research interests include Business Ethics, Emotions and Decision Making, Creativity and Leadership. She has published papers in international and national peer reviewed journals as well as presented in Indian and International conferences. She coordinates the institute¡¯s industry interface papers through the Beyond Management initiative which offers students an opportunity to interact with industry leaders and learn from them. She is also the Chairperson of the Centre for Business Ethics and Corporate Governance at the Institute. The author¡¯s thesis of ¡°Impact of the Organizational Environment on Unethical Choices: A Moderated Mediating Relationship of Moral Disengagement and Ethical Empowerment¡± has been chosen, by the editor(s) of?Management Decision, as a Highly Commended Award Winner of the 2011 Emerald/EFMD Outstanding Doctoral Research Awards in the Management and Governance category.?

Abstract

With several ethical infractions being unearthed with alarming regularity, organizations today are under pressure to critically examine and identify sources of wrong-doing, and consequently reform their stakeholder-related practices. Help in deciphering the triggers behind (un)/ethical conduct and the cognitive processes individuals use while evaluating dilemmas has come from researchers who for the last three decades have been attempting to determine why individuals behave unethically in workplaces.?

In an attempt to understand the complexities of moral action, this paper undertakes a critical review of key models of ethical decision-making. Investigations begin with Rest¡¯s (1986) model of moral action that explains the process of ethical decision-making and explores it further through subsequent descriptive studies. During the mid-1980¡¯s and early 1990¡¯s a number of theoretical models (e.g., Trevi?o, 1986; Jones, 1991) were built on the foundation of the model of moral action. These studies added a wide variety of constructs to Rest¡¯s model in assessing the process of forming ethical intentions and ultimately translating them into behavior. Several databases were used to provide detailed information on approaches to ethical decision-making. These databases included ProQuest, JSTOR, EBSCO, PsycINFO and SSRN from which numerous peer reviewed academic journals were accessed.

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