an article by Jacob D Rendtorff (Roskilde University, Denmark) published in
Local Economy: The Journal of the Local Economy Policy Unit Volume 34 Issue 6 (September 2019)
Abstract
This paper analyses the Sustainable Development Goals of the United Nations in the 2030 ‘Transforming the World’ Agenda, from 2015, as a contribution to business ethics and ethical economy.
The Sustainable Development Goals combine political aims with visions of economic development and social justice and are therefore important for business ethics and corporate social responsibility. Thus, the Sustainable Development Goals constitute a driver for ethical economic development and social change.
However, there is a need for critical analysis of the possibilities of Sustainable Development Goals of functioning as a vision and a strategic tool for management and governance.
The aim of the paper is to investigate these possibilities of the Sustainable Development Goals of contributing to business ethics and ethical economy with mobilisation of business, public institutions and organisations, and non-governmental organisations.
After presenting the Sustainable Development Goals, the paper critically discusses their scope and potential for corporate social responsibility, business ethics and corporate sustainability. This involves the problem of how the Sustainable Development Goals can contribute to a transformation towards another economy.
As a contribution to business ethics, the paper elaborates on partnerships for Sustainable Development Goals, sustainable performance management systems and the Sustainable Development Goal Compass with the aim of interpreting Sustainable Development Goals as a basis for progressive business ethics models.
Showing posts with label business_ethics. Show all posts
Showing posts with label business_ethics. Show all posts
Thursday, 5 December 2019
Tuesday, 29 October 2019
Tax governance: the balance between tax regulatory requirements and societal expectations
J. Christian Plesner Rossing (The University of Tampa, USA), Thomas Riise Johansen (Copenhagen Business School, Denmark) and Thomas C. Pearson (University of Hawaii at Manoa, Honolulu, USA) published in International Journal of Corporate Governance Volume 10 Number 3/4 (2019)
Abstract
In October 2012, Starbucks UK branch became the subject of massive public criticism over alleged tax avoidance. Despite Starbucks arguing that its transfer pricing practices were in full compliance with regulation, public pressure led Starbucks to overpay its UK taxes on international transfer pricing beyond the regulatory requirements.
This behaviour contradicts the current literature in which international transfer pricing is portrayed as a tool for aggressive tax management or an exercise of regulatory compliance.
It is further argued that boards and top management of multinational enterprises (MNEs) can no longer approach tax governance as a purely technical, regulation-driven discipline to be addressed only by accounting staff and tax consultants. Instead, its pivotal role in the social contract between an MNE and its stakeholders needs to be recognised.
Abstract
In October 2012, Starbucks UK branch became the subject of massive public criticism over alleged tax avoidance. Despite Starbucks arguing that its transfer pricing practices were in full compliance with regulation, public pressure led Starbucks to overpay its UK taxes on international transfer pricing beyond the regulatory requirements.
This behaviour contradicts the current literature in which international transfer pricing is portrayed as a tool for aggressive tax management or an exercise of regulatory compliance.
It is further argued that boards and top management of multinational enterprises (MNEs) can no longer approach tax governance as a purely technical, regulation-driven discipline to be addressed only by accounting staff and tax consultants. Instead, its pivotal role in the social contract between an MNE and its stakeholders needs to be recognised.
Thursday, 17 October 2019
Executive malfeasance: Surprisingly, honesty may not be the best policy
an article by Candace M. TenBrink (University of Houston Downtown Marilyn Davis College of Business, Texas, USA) published in Society and Business Review Volume 14 Issue 3 (2019)
Abstract
Purpose
Research indicates honesty, ethics and leadership are critical during a crisis. This paper aims to examine that ideology by analyzing the role acceptance or denial of executive malfeasance has on firm value after a crisis.
Design/methodology/approach
This is an event study that examines crises attributed to executive malfeasance. These qualitative crises data are blended with an analysis of abnormal returns to assess differences between executive actions.
Findings
These results indicate that ethical and timely acceptance of a firm’s role in malfeasance does not appear to be rewarded by stockholders. These data also show that there is no reward for a delayed acceptance of malfeasance. Therefore, ethics and honesty do not appear to differentiate post-crisis recovery.
Research limitations/implications
This research focuses on a major factor of firm success – its value. It would be interesting to explore how stakeholders, beyond those that invest in the firm, impact the value over the long run.
Practical implications
While prior research indicates that honesty is prudent, this examination indicates that obfuscation does not impact firm value during a recovery. This study promotes questioning one’s ethical compass as a stock or stakeholder in malfeasance-mired firms.
Originality/value
In conflict with crisis-based research, this study reveals that honesty in crisis management does not always offer an advantage. The results indicate that value is multidimensional, and it may not be based on trust and ethics in the short run.
Abstract
Purpose
Research indicates honesty, ethics and leadership are critical during a crisis. This paper aims to examine that ideology by analyzing the role acceptance or denial of executive malfeasance has on firm value after a crisis.
Design/methodology/approach
This is an event study that examines crises attributed to executive malfeasance. These qualitative crises data are blended with an analysis of abnormal returns to assess differences between executive actions.
Findings
These results indicate that ethical and timely acceptance of a firm’s role in malfeasance does not appear to be rewarded by stockholders. These data also show that there is no reward for a delayed acceptance of malfeasance. Therefore, ethics and honesty do not appear to differentiate post-crisis recovery.
Research limitations/implications
This research focuses on a major factor of firm success – its value. It would be interesting to explore how stakeholders, beyond those that invest in the firm, impact the value over the long run.
Practical implications
While prior research indicates that honesty is prudent, this examination indicates that obfuscation does not impact firm value during a recovery. This study promotes questioning one’s ethical compass as a stock or stakeholder in malfeasance-mired firms.
Originality/value
In conflict with crisis-based research, this study reveals that honesty in crisis management does not always offer an advantage. The results indicate that value is multidimensional, and it may not be based on trust and ethics in the short run.
Sunday, 11 February 2018
How can mindfulness enhance moral reasoning? An examination using business school students
an article by Ashish Pandey and Ajinkya Navare (Indian Institute of Technology Bombay, Powai, Mumbai, India) and Rajesh Chandwani (Indian Institute of Management Ahmedabad, India) published in Business Ethics: A European Review Volume 27 Issue 1 (January 2018)
Abstract
Given the comprehensive influence of mindfulness on human thought and behavior, and the importance of moral reasoning in business decisions, we examine the role of mindfulness as an antecedent to moral reasoning through two studies.
In Study 1, we propose and test a theoretically derived model that links mindfulness and moral reasoning, mediated by compassion and egocentric bias using a survey design.
In Study 2, we examine whether mindfulness training enhances moral reasoning using an experimental design with graduate students of business management.
The findings of Study 1 substantiate the positive association of mindfulness with moral reasoning. We found that this relationship is fully mediated by compassion and egocentric bias.
The results of Study 2 suggest that mindfulness meditation training has a positive impact on individuals' states of mindfulness, compassion, and moral reasoning, and decreases egocentric bias.
We relate the findings of the study with contemporary neurological research and discuss the theoretical, pedagogical, and managerial implications.
Full text (HTML)
Abstract
Given the comprehensive influence of mindfulness on human thought and behavior, and the importance of moral reasoning in business decisions, we examine the role of mindfulness as an antecedent to moral reasoning through two studies.
In Study 1, we propose and test a theoretically derived model that links mindfulness and moral reasoning, mediated by compassion and egocentric bias using a survey design.
In Study 2, we examine whether mindfulness training enhances moral reasoning using an experimental design with graduate students of business management.
The findings of Study 1 substantiate the positive association of mindfulness with moral reasoning. We found that this relationship is fully mediated by compassion and egocentric bias.
The results of Study 2 suggest that mindfulness meditation training has a positive impact on individuals' states of mindfulness, compassion, and moral reasoning, and decreases egocentric bias.
We relate the findings of the study with contemporary neurological research and discuss the theoretical, pedagogical, and managerial implications.
Full text (HTML)
Tuesday, 25 October 2011
Lying in business: insights from Hannah Arendt’s “Lying in Politics”
an article by Piet Eenkhoorn (Enterpreneur, Tilburg, The Netherlands) and Johan J. Graafland (Tilburg University, The Netherlands) published in Business Ethics: A European Review Volume 20 Issue 4 (October 2011)
Abstract
The political philosopher Hannah Arendt develops several arguments regarding why truthfulness cannot be counted among the political virtues. This article shows that similar arguments apply to lying in business.
Based on Hannah Arendt’s theory, we distinguish five reasons why lying is a structural temptation to businessmen:
Abstract
The political philosopher Hannah Arendt develops several arguments regarding why truthfulness cannot be counted among the political virtues. This article shows that similar arguments apply to lying in business.
Based on Hannah Arendt’s theory, we distinguish five reasons why lying is a structural temptation to businessmen:
- business is about action to change the world and therefore businessmen need the capacity to deny current reality;
- commerce requires successful image-making and liars have the advantage to come up with plausible stories;
- business communication is more often about opinions than about facts, giving leeway to ignore uncomfortable signals;
- business increasingly makes use of plans and models, but these techniques foster inflexibility in acknowledging the real facts; and
- businessmen easily fall prey to self-deception, because one needs to act as if the vision already materialises.
Tuesday, 20 September 2011
Stewardship: a new vision for the purpose of business
and article by Gary L Karns (Seattle Pacific University) published in Corporate Governance Volume 11 Issue 4 (2011)
Abstract
Purpose
A new vision for the purpose of business is vitally and urgently needed for emerging and developed markets to replace the shareholder wealth maximization paradigm that has contributed to contemporary ethics scandals, creating a credibility and trust crisis for business. In response, this paper seeks to present the stewardship model, a new, humane, and sustainable vision for the role of business as a contributor to human flourishing.
Design/methodology/approach
This conceptual paper builds on the thinking of those who have championed various reformulated paradigms in pursuit of responsible business behaviour.
Findings
The centre of economic gravity is shifting towards emerging markets. During this time of transition there is both a window of opportunity and an urgent need to change the social contract with business to achieve human flourishing, a more desirable goal than mere economic growth. Efforts to promote virtuous personal and corporate behaviour need the mutually reinforcing element of a new business paradigm. The stewardship model casts business in the role of being a responsible steward contributing to the well-being of customers, employees and the community; acting with positive ethics; and partnering with other social institutions for the common good.
Practical implications
Business people and business educators should give the Stewardship Model serious consideration.
Originality/value
The paper offers a new paradigm for business that aligns with human flourishing and fits the emerging market context. Adopting this new vision will help to re-write the social contract under which business operates and to rebuild business credibility and trust in emerging and in developed markets.
Abstract
Purpose
A new vision for the purpose of business is vitally and urgently needed for emerging and developed markets to replace the shareholder wealth maximization paradigm that has contributed to contemporary ethics scandals, creating a credibility and trust crisis for business. In response, this paper seeks to present the stewardship model, a new, humane, and sustainable vision for the role of business as a contributor to human flourishing.
Design/methodology/approach
This conceptual paper builds on the thinking of those who have championed various reformulated paradigms in pursuit of responsible business behaviour.
Findings
The centre of economic gravity is shifting towards emerging markets. During this time of transition there is both a window of opportunity and an urgent need to change the social contract with business to achieve human flourishing, a more desirable goal than mere economic growth. Efforts to promote virtuous personal and corporate behaviour need the mutually reinforcing element of a new business paradigm. The stewardship model casts business in the role of being a responsible steward contributing to the well-being of customers, employees and the community; acting with positive ethics; and partnering with other social institutions for the common good.
Practical implications
Business people and business educators should give the Stewardship Model serious consideration.
Originality/value
The paper offers a new paradigm for business that aligns with human flourishing and fits the emerging market context. Adopting this new vision will help to re-write the social contract under which business operates and to rebuild business credibility and trust in emerging and in developed markets.
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