Institutional Predictors of and Complements to Industry Self‐regulation with Regard to Labor Practices

In recent years, there has been increasing managerial and academic attention given to a variety of mechanisms for companies to respond to stakeholder concerns about global business ethics. One area that merits further analysis is the role of industry‐level cooperation regarding issues in global business ethics such as labor practices. There are two main issues that we will address in this article: institutional pressures that predict when an industry will create a code of conduct and institutional complements for an industry‐level code of conduct to be “successful” with regard to responding to stakeholder concerns about international business operations. We offer a number of propositions—bringing together work from both the corporate social responsibility and (neo)institutional theory literatures—with regard to both predictors and complements of industry self‐regulation in reference to labor practices.     

Insights from a Management Prophet: Mary Parker Follett on Social Entrepreneurship

Current‐day management leaders such as Peter Drucker and Rosabeth Moss Kanter have cited Mary Parker Follett as guru and prophet given her foreknowledge of systems theory, action research and leadership. She viewed business as a social institution and work itself as a community service, concepts particularly relevant in the context of understanding social entrepreneurship. Referencing two of her works, “The Individual in Society” and “Business in Society”, this paper introduces Follett, defines social entrepreneurship and presents her ideas as timely insights on the meaning of work, ethics and the role of business in society.     

Corporate Profit,Social Welfare,and the Logic of Capitalism

Business ethics scholars have proposed strategies for mitigating the ill effects brought on by a wealth maximization business strategy by urging managers to either embrace corporate social responsibility (CSR) or to manage according to stakeholder theory. In this article I argue that these strategies are often ineffective in bringing about the behavior they promote because it is antithetical to the nature and logic of capitalism. I examine the organizing principles of capitalism and the role it assigns to capitalists, and juxtapose these with the behavior prescribed by three normative frameworks: strategic management theory (SMT), the CSR initiative, and stakeholder theory. Unlike the behaviors prescribed by the CSR initiative and stakeholder management theory, the behavior prescribed by SMT is consistent with the role of capitalists as defined by the organizing principles of capitalism, and SMT's “rules” have instilled habits that have, in turn, been able to mold managers’ aspirations and purposes. CSR and stakeholder theory must not only combat the habits instilled by the entrenched SMT, they must also find some way of instilling habits that run contrary to those defined by the nature and logic of capitalism itself.     

Sustaining the Financial Value of Global CSR: Reconciling Corporate and Stakeholder Interests in a Less Regulated Environment

In this article we examine the association between corporate social responsibility (CSR) and firm value. This line of research is important since firms continue to invest in CSR even though past studies reveal a limited linkage between financial value and CSR. However, the business case for CSR or “doing good while making a profit,” appears to be advancing within the business ethics literature as a preferred conception of CSR. We conjecture that the greater unification and refinement of both profit maximization and stakeholder interests through corporate acts, not statements alone, will sustain the financial value of CSR in a less regulated global business environment. We study the triangle of what companies say, what companies do, and firm financial performance. We analyze Fortune 250 firms and find a positive association between what companies do based on KLD Research and Analytics, Inc. (KLD) ratings, and what companies state about ethics in their CSR statements. We then employ regression analysis and find that companies’ socially responsible acts are positively associated with overall firm value and financial performance. Yet we do not find a statistically significant association between what companies say regarding ethics in their CSR statements and their financial outcomes. These results suggest that firm value and financial performance is associated with what companies do and not what they say. Our results seem to be driven by multinational corporations (MNCs) and not by non‐MNCs. This is possibly because MNCs generally operate in a less regulated global business environment that often necessitates strong ethical corporate leadership to further stakeholder interests. Overall, these results help reconcile corporate and stakeholder objectives since evidence of a link between financial performance and doing good sustains global CSR.     

History in Organization and Management Theory: More Than Meets the Eye

Abstract

There has been a growing debate about the role of history in management research with several authors making suggestions on how to bring the two (back) together and others even highlighting the need for a “historic turn”. What we argue in this paper is that, while history was indeed sidelined by the scientization of management since the late 1950s, it started to make a comeback from the 1980s onwards and is increasingly employed in a number of research programs. We stress that the crucial question for management scholars engaging with history (or wanting to do so) is how it relates to theory. First of all, we present a systematic overview of the way history has been used—both at the micro (organizational) and macro-levels of analysis—distinguishing between what we refer to as “history to theory” and “history in theory”. In the former, we consider those research programs, such as (neo-)institutionalism, where history serves as evidence to develop, modify or test theories. In the case of “history in theory” we identify research programs where history or the past are part of the theoretical model itself as a driver or moderator, with “imprinting” as a prime example. Second, we also identify a growing number of studies that go further by displaying what we call “historical cognizance” in the sense of incorporating period effects or historical contingencies into their theorizing efforts. Finally, drawing on our broad overview, we make more specific suggestions for increasing the visibility and influence of history in organization and management theory.     

Ethics as Politics: Federal Ethics as the Basis for a ‘Normative’ Stakeholder Theory

This paper argues that business ethics needs to deal more effectively with situations in which stakeholder interests conflict – the essence of politics. The nature of conflicting interests and the inability of current theory to deal with conflict are explored. Federal ethics is offered as a promising approach to conflict in stakeholder relations. The paper begins by tracing the development of federal theory and then defines the central value of federal ethics – fidelity. Building on the work of Gabriel Marcel, I ground an ethic of fidelity in consent and creativity. The distinctive features of this approach are highlighted by contrasting it with integrative social contracts theory. Unlike traditional approaches, federal ethics provides a focus on process, rather than principle, which lends itself better to the essentially political nature of stakeholders in conflict. This revised version was published online in July 2006 with corrections to the Cover Date.     

Rachel Carson's Toxic Discourse: Conjectures on Counterpublics,Stakeholders and the “Occupy Movement”

This article draws attention to the origins, forms, and implications of “toxic discourse” as a genre central to the understanding of the public sphere in business in society. Rachel Carson's Silent Spring is used as a pivotal cultural document establishing “toxic discourse” as an ongoing form of moral narrative rooted in the rationality of counterpublics. Toxic discourse is framed within a center/periphery model in which toxic discourse gains salience in periods of economic dislocation and uncertainty. In these periods, toxic discourse draws together those on the periphery or counterpublics who otherwise would not unite in their opposition to the center. The article critically examines how stakeholder theory, despite making sense of the public sphere for agents of organizations, glosses counterpublics and relegates toxic discourse, as evident in the “Occupy Movement,” to the ephemeral role of temporary, disruptive protest groups with very little of substance to communicate.     

Generalized Steiner Problems and Other Variants

In this paper, we examine combinatorial optimization problems by considering the case where the set N (the ground set of elements) is expressed as a union of a finite number of m nonempty distinct subsets N ₁,...,N _m. The term we use is the generalized Steiner problems coined after the Generalized Traveling Salesman Problem. We have collected a short list of classical combinatorial optimization problems and we have recast each of these problems in this broader framework in an attempt to identify a linkage between these “generalized” problems. In the literature one finds generalized problems such as the Generalized Minimum Spanning Tree (GMST), Generalized Traveling Salesman Problem (GTSP) and Subset Bin-packing (SBP). Casting these problems into the new problem setting has important implications in terms of the time effort required to compute an optimal solution or a “good” solution to a problem. We examine questions like “is the GTSP “harder” than the TSP?” for a number of paradigmatic problems starting with “easy” problems such as the Minimal Spanning Tree, Assignment Problem, Chinese Postman, Two-machine Flow Shop, and followed by “hard” problems such as the Bin-packing, and the TSP.     

Creating and sustaining competitive advantage in collaborative systems: The what and the how

Initially this paper asks two questions: In order to create and sustain competitive advantage through collaborative systems WHAT should be managed? and HOW should it be managed? It introduces the competitive business structure and reviews some of the global trends in manufacturing and business, which leads to focus on manage processes, value propositions and extended business processes. It then goes on to develop a model of the collaborative architecture for extended enterprises and demonstrates the validity of this architecture through a case study. It concludes that, in order to create and sustain competitive advantage, collaborative systems should facilitate the management of: the collaborative architecture of the extended enterprise; the extended business processes and the value proposition for each extended enterprise through a meta level management process. It also identifies areas for further research, such as better understanding of: the exact nature and interaction of multiple strategies within an enterprise; how to manage people/teams working along extended business processes; and the nature and prerequisites of the manage processes     

Demand-side strategy and business models: Putting value creation for consumers center stage

Value creation for consumers, as the conditio sine qua non for value capture, is at the heart of demand-side strategy research and is a core element of almost any business model. In this paper, we discuss the unique ideas that demand-side strategy and business model research jointly contribute to the strategy literature, and we elaborate on the potential for cross-fertilization between both areas of study. We argue that both the demand-side perspective and the business model concept could jointly promote a better understanding of strategy-making by mutually relying on the distinctive insights from each stream; specifically, while research on demand-side strategy can help business model scholars gain a more robust and granular understanding of effective value propositions, business models can serve as a “bridging concept” that links the shared ideas of both areas of study to resource-based streams of strategy research.     

A stakeholder perspective on process improvement behaviours: delivering the triple bottom line in SMEs

Abstract

The primary focus of operations management is to add value through operational processes. Considerable attention has been given to using process improvement (PI) techniques to reduce costs and time, in order to develop a competitive advantage for the wider organization. However, this narrow definition of value at times overlooks the triple bottom line (TBL) which can result in a number of unintended consequences, specifically issues related to environmental and social measures of performance. To address this, a stakeholder theory lens will be used to analyze PI activities within the context of small and medium-sized enterprises. The TBL will be used to complement the stakeholder perspective, to interpret the benefits that are realized from PI activities. This article highlights both the direct benefits from PI as well as more indirect benefits realized by involving a selection of salient stakeholders in PI. It will show how a developed view of PI can provide an important mechanism for delivering improvements to a firm’s TBL. The work concludes by highlighting the contributions made to both PI practice and stakeholder theory, while acknowledging the need for more research on PI, both from a stakeholder perspective and how it impacts a firm’s TBL.     

A stratified system of knowledge and knowledge icebergs in cross-cultural business models: Synthesising ontological and epistemological views

Because the lack of consensus on defining knowledge, coupled with its associated knowledge iceberg phenomenon, is a key barrier to effectively managing dispersed knowledge in the Internet-driven cross-cultural business model (CBM), we synthesised an ontological and epistemological understanding with the view of existential phenomenology, proposing a “dynamic hierarchical system of knowledge” and three primary knowledge iceberg archetypes as metaphors of cognitive variances in this context. Theoretically, this integrative perspective enriches the philosophical grounds of knowledge by transcending individual subjectivity to achieve a universal understanding of the objectivity of knowledge, thus contributing to the literature at the intersection of international business and knowledge management domains. It also responds to the calls for addressing larger, urgent problems by associating the social phenomena of reality to theoretical development. From a practical standpoint, this research is instrumental in enabling international leaders and managers to identify the cultural impediments to fulfilling their knowledge management objectives in CBMs.     

Philosophical speculations on systems design

Belief in the value of the scientific method as a means of implementing improvement in social systems (here called “systems design”—SD) raises important philosophical questions concerning, inter alia, the meaning of “scientific method”, of “improvement”, and of social reality. One underlying problem is that of the “self reflecting paradox”; e.g. the content and validity of the scientific method can only be discovered by the application of the scientific method. Similarly, SD has its own “social reality” through which it perceives that of its client. “Improvement” is bound up with ethics but ethics does not admit the limitation of obligation to one sub-system, therefore improvement requires the recognition of sub-system linkages. Paradoxically, again, the “improver” is himself part of the total system and bears its impress. Implementation (of improvement) meets the paradox that SD on SD is needed to judge the worth of the SD proposal. The pragmatic escape from the paradox identifies SD with a heuristic role in social progress but presupposes the possibility of progress. “Implementation” secures the possibility of such progress. The second major problem is that SD requires a social reality in which individuals have visible goals; but the “inner world” of individual goals is unknown and cannot be tracked from observable responses. In any case, Kant's moral precept requires that individuals be valued as ends rather than means. Much of SD uses them as means. Though SD is and must be practised, such philosophical speculation raises SD's self knowledge and points the neat paradox of its technical precision won at the price of its fundamental woolliness.     

An Ethical Analysis of the Second Amendment: The Right to Pack Heat at Work

We examine the issues concerning the legality and ethicality of the Second Amendment right to bear arms balanced by the employer's duty to provide a safe workplace for its employees. Two court rulings highlight this balancing act: McDonald et al. v. City of Chicago et al. and District of Columbia v. Heller. “Stand Your Ground” and “Castle Doctrine” laws in the recent Trayvon Martin shooting on February 26, 2012 are also applicable. Various ethical frameworks examine the firearms debate by viewing the Second Amendment from three perspectives. These include a pro‐gun perspective drawing upon libertarianism and fundamental rights; a moderate gun perspective drawing upon consequentialism and stakeholder theory; and finally, an anti‐gun perspective drawing upon a Public Health Ethics and peace ethics approach. We explore the issue of gun control from a business perspective as employers face ethical decisions in responding to legislation that allows guns in the workplace and/or in employer parking lots while still being responsible to provide a safe workplace for their employees. We make recommendations regarding how companies should manage by proactively avoiding legal challenges to employees' rights to own and carry guns into the workplace. This includes emphasis on enhanced security, Human Resource policies and monitoring rapidly changing laws.     

Corporate governance and stakeholder conflict

The stakeholder management literature is dominated by the ‘shareholder value’ and ‘inclusive stakeholder’ views of the corporation. Each views the governance problem in terms of inter-functional conflicts between stakeholder groups, such as between investors and managers or managers and employees, and rests on the assumption of an idealized corporate structure characterized by the separation of ownership from management. Our review of corporate governance and stakeholder conflict shows that such functional-based characterization is too simplistic and fails to account for important intra-functional conflict. Through a comparative review that considers managerial, stakeholder and family systems of governance, we demonstrate that, while the modality of conflict varies by system, substantial intra-functional conflict is endemic to each. We integrate the findings of the agency and comparative stakeholder theories of corporate governance to offer an authority-based framework with three different governance structures that offers complementary insights into stakeholder conflicts. Thus, our study highlights the important, but often neglected, intra-stakeholder type of conflict in various organizations and provides a basis for understanding their various manifestations and consequences under the different systems of governance.     

Competitive renaissance through digital transformation

Dramatic health, environmental, and social-related challenges put pressure on firms to rethink their strategies and growth paths. Is a digital-enabled transformation able to help firms cope with these challenges and drive a competitive renaissance of our economic system? Are extant theories and concepts able to interpret the digital transformation? This management focus section aims to advance a relevant and impactful research agenda in the area of “business strategy and digitalization” through 4 contributions – both conceptual and empirical – that contribute to the understanding of the so-called “digital transformation” and its implications for both scholars and practitioners.     

The Impact of Stakeholder Management on Corporate International Diversification

This article explores the relationship between stakeholder management and international diversification. We differentiate between strengths and concerns in stakeholder management to demonstrate the differential effects of the two aspects of stakeholder management. Previous research on stakeholder theory often focuses on the importance of stakeholder relations, trying to build a business case of relational capital that results from strong stakeholder management. Such a relational approach, however, overlooks the process of managing stakeholders, a process that allows firms with strengths in stakeholder management to develop an important capability of managing tensions. In this study, we argue that this capability, an inherent part of stakeholder management, can be critical when firms face increased complexity during the process of international diversification. We therefore propose that strengths in stakeholder management are positively related to international diversification, while concerns in stakeholder management are negatively related to international diversification. Using panel data for 169 US multinational firms over a 10‐year period, we find support that strengths in stakeholder management facilitate international diversification. We discuss the contributions of our findings to stakeholder theory and international business research.     

The Professional,the Personal,and the Ideal Worker: Pressures and Objectives Shaping the Boundary between Life Domains

Abstract

Both scholarly literature and popular accounts suggest that modern organizational practices have moved toward encouraging employees to “integrate” or blur the boundary between their personal and professional domains, for example, through self-disclosure at work, company-sponsored social activities or providing on-site child care. Concurrently, an ideology underlying U.S. professional norms discourages integration practices such as referencing non-work roles during workplace interactions, expressing emotions in the workplace, and/or displaying non-work-related items in workspaces. In this review, we posit that these two norms firmly coexist because they differentially serve two objectives corresponding to the parallel bodies of research we examine: one addressing boundary management as a tool for handling role responsibilities, and the other considering boundary management as a tool for shaping workplace identity and relationships. Specifically, we posit that segmenting personal and professional domains facilitates the management of role responsibilities, whereas integration is more beneficial for managing workplace identity and relationships. Furthermore, both objectives serve the “ideal worker” imperative of work primacy. We identify key contingencies that help us to further understand existing research findings, and prompt future research directions informing theories for understanding the attractiveness and efficacy of different personal–professional boundary management strategies for both organizations and individuals.     

Betriebswirtschaftslehre ohne Unternehmensethik? Vom Scheitern einer Ethik ohne Moral

Zusammenfassung  In Auseinandersetzung mit einer jüngst von Horst Albach ge?u?erten Auffassung von Betriebswirtschaftslehre ohne Unternehmensethik wird eine gegenteilige Auffassung entwickelt. Es wird gezeigt, dass der Glaube an die reinigenden Marktkr?fte eine ?konomistische Fiktion darstellt und mithin eine Ethik ohne Moral, d.h. ohne bewusst ethisch agierende Personen, unhaltbar ist. Stattdessen werden Anforderungen erkennbar, die als eine Richtschnur für die Entwicklung unternehmensethischer Perspektiven zu verstehen sind.

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Management without business ethics? On the failure of ethics without morality

Summary  Recently, Horst Albach developed an ethical approach which identifies management science being inherently ethical. This paper offers an alternative view. We examine how a pure market driven understanding of business ethics leads to questionable positions and logical contradictions. Therefore we propose a business ethics with morality which includes people, acting from ethically reflected grounds. Additionally, we define requirements to be fulfilled when developing business ethics within management science.