The Collection "Business Ethics" contains resources about major themes in Business and Economic Ethics.

Recent Submissions

  • Financial Market Reactions to Violation Disclosures from the Pipeline and Hazardous Materials Safety Administration

    Rong, Lude (Scholarship @ Claremont, 2020-01-01)
    This paper investigates how the stock market reacts to public disclosures of environmental and safety violations based on information from the Pipeline and Hazardous Materials Safety Administration (PHMSA), the main federal agency that regulates energy and hazardous materials transportation in the oil and gas sector. Using an event study methodology, I find no evidence of negative abnormal returns following the announcement of PHMSA violations between 2002 and 2018. Nevertheless, I find empirical evidence consistent with pre-announcement information leakage and differential impacts based on the type of enforcement action issued by PHMSA and the relative size of the proposed penalty.
  • Acting as a benefit corporation and a B Corp to responsibly pursue private and public benefits. The case of Paradisi Srl (Italy)

    Mara Del Baldo (SpringerOpen, 2019-06-01)
    Abstract Benefit Corporations and B Corps represent alternative models of enterprise that bridge the for-profit and not-for-profit model (hybrid organizations). Italy is the first country outside the US to pass Benefit Corporation legislation and introduce the Società Benefit (Law No 208, 2015), namely for profit companies formally allowed by law to pursue a CSR mission, intended to achieve general and/or specific public benefits. Starting from these premises, the aim of this study is to evaluate the motivations for and benefits of becoming a B Corporation through an empirical case study focussed on an Italian small and medium-sized enterprise (Paradisi Srl) transformed into Benefit in 2016. Findings point out the efficacy of this choice taking into account the enhancement of a socially responsible commitment to CSR practices and the creation of a public benefit, as well as the improvements in accountability, transparency and stakeholder engagement.
  • Use of Indigenous Knowledge Systems in Crop and Livestock Production and Implication to Social Ecology: A Case Study of Chimanimani District of Zimbabwe

    Pindai Sithole (Environmental Association of Southern Africa, 2020-06-01)
    This study explored the indigenous knowledge systems (IKS) in the Chimanimani District of Zimbabwe and how they are used in crop management and grain storage. Also examined were the effects of IKS use on community food security and integrity of the environment. A qualitative interpretative research design was employed through the use of detailed in-depth interviews and focus group discussions with traditional leaders and community elders. The choice for these groups of people was informed by the general belief that they are often regarded in the community as a reservoir of indigenous knowledge systems. Phenomenological underpinnings anchored the study because it was vital to bring to the fore the various related IKS phenomena and links to food security and environmental management in the community. A socio-ecological lens was used to establish links and interrelations of factors that contribute to food security and environmental management. Major findings include that ashes and leaves from some indigenous trees are used to enrich soil quality, preserve food, and treat livestock. In addition, ashes and leaves are applied as organic pesticides for a variety of crops grown in the district. The study established that these local knowledge systems and practices contribute to low farming costs, high crop yields and good environmental management. The indigenous trees used for this purpose are held in high regard and conserved through the practice and enforcement of socio-spiritual prohibitions like taboos. The study concluded that the body of local knowledge firmly rooted in the Chimanimani people’s culture and traditions is relevant to and consistent with the national and global agenda towards strengthening and sustaining community food security and environmental management. Furthermore, the local knowledge systems found in this study have policy implications for environmental management and climate change strategies as well as knowledge management from a socio-ecological perspective.
  • Pengaruh income dan latte factor terhadap daya tahan keuangan kalangan millenial di Kota Bandung, Jawa Barat, Indonesia

    Chaerunnisa, Nisa; Deni Kamaludin Yusup, Deni; Dedah, Jubaedah; Usep Saepullah, Usep (2020-06-16)
    Penelitian ini menjelaskan tentang pengaruh income dan latte factor terhadap daya tahan keuangan kalangan millenial di Bandung Jawa Barat, Indonesia. Pendapatan (income) dapat diartikan sebagai pendapatan bersih atau laba bersih yang diperoleh dari hasil usaha setelah dikurangi dengan beban biaya atau kebutuhan rutin. Pengeluaran (latte factor) merupakan pengeluaran untuk hal yang sebenarnya tidak dibutuhkan, yang tampak terlihat kecil dan tanpa sadar dilakukan secara terus menerus, yang akhirnya membuat pengeluaran membengkak dan menjadi lebih besar. Adapun daya tahan keuangan di kalangan millenial, khususnya di Bandung Jawa Barat menjadi lemah atau defisit disebabkan oleh kebiasaan konsumtif generasi millenial yang cenderung boros. Hasil penelitian ini menunjukkan bahwa income dan latte factor memiliki pengaruh yang kuat terhadap daya tahan keuangan kalangan millenial di Bandung, Jawa Barat, Indonesia. Dikaji melalui analisis regresi linier, koefisien regresi variabel independen bertanda positif menunjukkan bahwa income dan latte factor berpengaruh positif dan signifikan terhadap daya tahan keuangan generasi millenial di Bandung, Jawa Barat, Indonesia. Implikasi dari penelitian ini adalah kalangan millennial hendaknya memilih skala prioritas dalam menentukan anggaran pengeluaran sesuai dengan pendapatan yang diperoleh secara proporsional.
  • Digital Dilemmas

    Kvalnes, Øyvind (Springer Nature, 2020)
    Social media is at the core of digital transformations in organizations. Facebook, Twitter, LinkedIn, and other social media platforms widen the scope for rapid and effective communication with stakeholders. They also create a range of new and challenging ethical dilemmas. This open access book categorizes the dilemmas organizations across a range of industries can face when they implement social media to communicate with stakeholders. This book provides a systematic framework for analyzing these ethical dilemmas in social media using the Navigation Wheel. This tool leads the decision-maker through a series of considerations such as legal questions, corporate identity, morality, reputation, and ethics. Finally, the author considers implications for leaders and presents potential solutions to these dilemmas. Based on five years of original research with 250 executive students at a European business school, all of whom work with social media communications in their organizations, this book is the first major study to explore the ethical use of social media across industries and is a valuable resource for researchers and practitioners alike.
  • Pengaruh Retaliasi, Materialitas dan Etika Bisnis Terhadap Intensi Melakukan Whistleblowing

    Pramana, Putu Budi Wianto Angga (2019)
    Penelitian ini bertujuan Untuk mengetahui apakah ada perbedaan Intensi Melakukan Whistleblowing antara retaliasi rendah dan retaliasi tinggi, untuk mengetahui apakah Intensi Melakukan Whistleblowing antara materialitas rendah dan materialitas tinggi, dan untuk mengetahui apakah Etika Bisnis berpengaruh terhadap Intensi Melakukan Whistleblowing. Dalam penelitian ini teknik pengumpulan datanya menggunakan Teknik Eksperimen yaitu responden diminta untuk menjawab sebuah skenario yang diberikan peneliti mengenai pengaruh retaliasi dan materialitas terhadap intensi melakukan Whistleblowing. Kesimpulan pada penelitian ini adalah terdapat perbedaan antara retaliasi rendah dan retaliasi tinggi terhadap intensi melakukan whistleblowing yang akan berdampak pada pengaduan mahasiswa terhadap tindakan akan kecurangan, mahasiswa dengan tingkat materialitas lebih tinggi akan cenderung memiliki kemungkinan dalam intensi melakukan whistleblowing dibandingkan dengan mahasiswa dengan tingkat materialitas rendah, dan mahasiswa yang sudah mengambil dan belum mengambil mata kuliah etika bisnis tidak berpengaruh terhadap intensi melakukan whistleblowing.
  • L’industrie du dopage

    Centre d'études sur la sécurité internationale et les coopérations européennes (CESICE); Université Pierre Mendès France - Grenoble 2 (UPMF)-Sciences Po Grenoble - Institut d'études politiques de Grenoble (IEPG); Fontanel, Jacques (HAL CCSDUniversité Pierre Mendès France Grenoble, 2000-03)
    International audience
  • The determinant of the financial fraud of the village fund management

    Fachrurrozie Fachrurrozie; Agus Wahyudin; Ahmad Nurkhin; Hasan Mukhibad; Kardiyem Kardiyem; Fadhilah Mahanani Saputri (Universitas Merdeka Malang, 2020-01-01)
    We examine the relationship between compensation, morality, organizational ethical culture, and financial fraud. The respondents were fifty-two village officials in Weru Subdistrict, Central Java Sukoharjo District who were directly responsible for managing village funds. They were selected using a purposive sampling method. Data was collected by means of the questionnaire was distributed and then, the data were analyzed using Path analysis with WarpPLS software. We found that morality had a positive and significant effect on compensation and organizational ethical culture, as well as a negative and significant effect on financial fraud. Organizational ethical culture proved to have a negative and significant effect on financial fraud. Compensation does not have a significant effect on the ethical culture of the organization and financial fraud. The other result shows that the organizational ethical culture had proven to be a mediator of the relationship between morality and financial fraud. Meanwhile, there is no proven significant relationship between the suitability of compensation for financial fraud through the ethical culture of the organization. Also, the study confirmed that the morality and ethical culture of the organization are factors that can reduce the occurrence of financial fraud. Hence, the village government is expected to have better organizational morality and ethical culture.
  • Η οικονομική κρίση, το θεσμικό περιβάλλον και η κοινωνία των πολιτών στο πλαίσιο των πολιτικών και πρωτοβουλιών της Ευρωπαϊκής Ένωσης

    Pantazi, Stefania; Πανταζή, Στεφανία (National and Kapodistrian University of AthensΕθνικό και Καποδιστριακό Πανεπιστήμιο Αθηνών (ΕΚΠΑ), 2018)
    Just before the end of the first decade of the 21st century a new crisis is emerging affecting the whole world, either less or more. Eight years after its beginning, its effects are not only visible but also well established in Greek society. A lot of efforts have been made at an academic level to find a solution, either by using past experience or by resorting to “magic” financial tools and to macroeconomic theories. The undisputed conclusion is that there is not a common solution for all problems. Any crisis and its form or importance at any country is a consequence of the country’s qualitative characteristics, its geography and the time period during which it emerges. The critical difference, which gave birth to the idea for this dissertation, was a concept whose use has been increasing since 2000, even though it was not understood that it could play an important role in the effort towards finding a solution to the economic crisis. Civil society is a concept with more than one meanings, dating back to the classic ancient Greek school of thought. Each time different attributes or virtues have been attributed to this concept, but always closely linked to the events which it was called upon to serve.What happened now and for the first time it was thought that civil society was not a mere pawn but a powerful player and as such it could play an active role contributing to the work of the established players such as the state and the market? This dissertation seeks to understand and examine these changes as well as the role that it will assume. Could civil society become counterweight to a weak system and if yes under which circumstances? This paper proposes a new cooperation model at a political, social and economic level, promoting the importance of a healthy civil society, a third factor that could positively affect the other two and be ratified by them in order to be able to become part of the solution to the crisis.
  • Leadership and work engagement: Exploring explanatory mechanisms

    Decuypere, Anouk; Schaufeli, Wilmar; 97745 (SAGE PUBLICATIONS INC, 2020-02-01)
    status: published
  • Does anger expression help or harm leader effectiveness? The role of competence-based versus integrity-based violations and abusive supervision

    Wang, Lu; Restubog, Simon; Shao, Bo; Lu, Vinh; Van Kleef, Gerben A. (The Academy of Management, 2018-06-01)
  • Human Resource Management and Innovative Performance in Non-profit Hospitals: The Mediating Effect of Organizational Culture

    Julio C. Acosta-Prado; Julio C. Acosta-Prado; Oscar H. López-Montoya; Carlos Sanchís-Pedregosa; Carlos Sanchís-Pedregosa; Rodrigo A. Zárate-Torres (Frontiers Media S.A., 2020-06-01)
    Literature suggests that human resources of non-profit hospitals (NPHs) present features that could potentially reach any expected organizational performance even when the attention to human resource management (HRM) are often low in non-profit organizations. Nowadays ambitious organizations strive to obtain a profitable performance that is also innovate and do it through building an organizational culture (OC), while for NPHs a positive culture is given by their human resources traits. However, there is not enough literature to understand how these three variables behave together. This study aims to explain the influence of HRM on IP mediated by OC. The research model was assessed through Partial Least Squares Structural Equation Modeling (PLS-SEM). The results support all the stated hypotheses. Both, HRM and OC are moderately strong predictors of IP, and OC mediates partially and in a complementary way the relationship between HRM on IP. An importance-performance map analysis (IPMA) was performed to expand the PLS-SEM results. The OC indicators show greater importance to explain IP, consequently, they are the most relevant indicators to initiate management actions by NPHs. The influence of HRM on IP represent an opportunity for NPH as it implies an affordable investment in comparison to the cost of technological solutions for enterprises.
  • Cultivating Culture: Your Organization as a Living, Growing Thing

    O'Connell, Jim; Hascall, William D. (Division of Communication, University of Wisconsin-Stevens Point, 2020-06-22)
  • What Moves the Needle in Hedge Fund Activism? An Empirical Assessment of Campaign Intensity and Regulatory Insufficiency

    Dorman, Joshua (Scholarship @ Claremont, 2020-01-01)
    Hedge fund activism continues to occupy a prominent place atop the worlds of finance and corporate America, frequently gracing the front pages of eminent newspapers such as The Wall Street Journal and The New York Times alike. However, the industry itself has been the subject of rapid change and legislative scrutiny over the preceding decade, as new entrants have led longtime stalwarts of the likes of Carl Icahn and JANA Partners to modify their existing repertoire of strategies and expand their universe of targets. This paper delves into two distinct issues that remain understudied within the existing academic literature: the determinants of a hedge fund’s level of intensity that it employs in a campaign and its effect on campaign length, and the current adequacy of the SEC-mandated 10-day filing window for Form 13Ds. I use sample sizes of 1,117 publicly filed campaigns and 184 under-the-threshold investments, encompassing data from 1995 to the present, for my analysis of campaign intensity levels and 229 observations from 2013-present for my assessment of the 13D filing window. Activism campaigns are found to have become, overall, significantly more intense since the financial crisis, and both the market cap of a target company and its industry are revealed to be determinants of the level of intensity a hedge fund chooses to employ. Additionally, as expected, the degree of a campaign’s intensity is found to be a statistically significant determinant of the length of a campaign, with more aggressive tactics resulting in longer investment periods, and the presence of more passive strategies leading to shorter campaigns. Furthermore, I find that the number of pages in a 13D filing is a significant determinant of the time it takes a hedge fund to file. However, outsized abnormal returns (BHARs) are found to take place during the days between when a hedge fund breeches the 5% ownership threshold and when it files its public disclosure, and the number of days in this ‘secret period’ is revealed to be a significant determinant of the BHARs during this window, both of which indicate that market efficiency would considerably improve if the 10-day filing window was shortened. My results provide valuable information for everyday traders looking to place positions in companies targeted by activist investors, hedge fund practitioners hoping to gain an edge over their peers, and companies and advisors looking to better understand the activist landscape. Perhaps most importantly, my observations concerning the 13D filing window can inform regulators of the possible impact of altering the laws governing the industry.
  • Designing Business Forms to Pursue Social Goals

    Eldar, Ofer (Duke University School of Law, 2020-01-01)
    The long-standing debate about the purpose and role of business firms has recently regained momentum. Business firms face growing pressure to pursue social goals and benefit corporation statutes proliferate across many U.S. states. This trend is largely based on the idea that firms increase long-term shareholder value when they contribute (or appear to contribute) to society. Contrary to this trend, this Article argues that the pressing issue is whether policies to create social impact actually generate value for third-party beneficiaries—rather than for shareholders. Because it is difficult to measure social impact with precision, the design of legal forms for firms that pursue social missions should incorporate organizational structures that generate both the incentives and competence to pursue such missions effectively. Specifically, firms that have a commitment to transacting with different types of disadvantaged groups demonstrate these attributes and should thus serve as the basis for designing legal forms. While firms with such a commitment may be created using a variety of control and contractual mechanisms, the related transaction costs tend to be very high. This Article develops a social enterprise legal form that draws on the legal regime for community development financial institutions (CDFIs) and European legal forms for work-integration social enterprises (WISEs). This form would certify to investors, consumers, and governments that designated firms have a commitment as social enterprises. By obviating the need for costly social impact measurement, this form would facilitate the provision of subsidy-donations to social enterprises from multiple groups, particularly investors (through below-market investment) and consumers (via premiums over market prices). Thus, this social enterprise form would be to altruistic investors and consumers what the nonprofit form is to donors. Moreover, the proposal could facilitate the flow of investments by foundations in social enterprises (known as program-related investments, “PRIs”) because it would help foundations verify the social impact of their investees. In addition, by giving subsidy-providers greater assurance that social enterprises pursue social missions effectively, the proposed legal form could facilitate public markets for social enterprises.
  • “How to deal with all the knowledge?” : management of corporate responsibility knowledge in a multinational company

    Järvihaavisto, Sofia (2020-06-16)
    Kasvaneiden resurssien, kykyjen ja tavoitettavuuden myötä yrityksillä on sekä mahdollisuuksia että paineita osallistua haastavien nykypäivän ongelmien ratkaisuun ja vauhdittaa muutosta kohti kestävää liiketoimintaa. Tietämyksenhallinnalla on osoitettu olevan positiivinen vaikutus yritysvastuun sisällyttämisessä yrityksen strategiaan ja edelleen toimintaan. Yritysvastuun tietämyksenhallinta voikin johtaa yrityksen yhteiskunnallisen roolin parempaan huomioimiseen ja olemassa olevan yritysvastuutiedon parempaan hallintaan. Tutkimusta on toistaiseksi ollut vain vähän siitä, miten johdon panostukset yritysvastuun osaamisen parantamiseksi käytännössä toteutetaan ja miten työntekijät ne ymmärtävät. Tässä tutkielmassa selvitettiin työntekijöiden kokemuksia yritysvastuun osaamisesta ja tietämyksenhallinnasta kasvavassa monikansallisessa yrityksessä. Tarkoituksena oli esittää yritykselle parannusehdotuksia yritysvastuun tietämyksenhallinnan kehittämiseksi sekä uuden osaamisen luomiseksi ja käyttöönoton parantamiseksi. Tutkielman teoriaosuus käsitteli yritysvastuun ja tietämyksen välistä suhdetta sekä tietämyksenhallintaprosessia. Työ toteutettiin tutkitussa yrityksessä laadullisena tutkimuksena kolmen fokusryhmähaastattelun, kolmen yksilöhaastattelun ja toissijaisten lähteiden perusteella. Haastattelut toteutettiin Euroopassa toimivassa kohdeyrityksessä. Tutkielman tulosten analysoinnissa hyödynnettiin temaattista analyysiä. Tutkielman tulokset vahvistavat henkilöstön osallisuuden tärkeyden yritysvastuun osaamisen johtamisessa ja soveltamisessa. Henkilöstön osallistaminen vaatii kuitenkin heiltä itseltään halukkuutta, kykyjä ja resursseja osallistua. Tässä tutkielmassa suurin osa henkilöstöstä koki yritysvastuun olevan pohjana kaikelle yrityksen toiminnalle. Siitä huolimatta he kokivat hankalaksi ajan ja resurssien käytön yritysvastuun aseman parantamiseksi yrityksessä. Syynä tähän oli hektinen työympäristö sekä yritysvastuun hahmottaminen erillisenä omasta työstä. Tämän työn suositukset koskevat henkilöstön osallistamisen edistämistä lisäämällä tietämyksenhallintajärjestelmien automaatiota, selkeää ja tiivistettyä viestintää sekä henkilöstön koulutusta.
  • Responsibility of Transnational Corporations for Human Rights Violations under International Law

    Balaš, Vladimír; Šturma, Pavel; Švandová, Helena (Univerzita Karlova, Právnická fakulta, 2020-06-24)
    in English The need for an effective regulation of transnational corporations and its responsibility for human rights abuses has been a topic resonating strongly in the international debate for the past three decades. The suggested solutions to the lack of accountability of transnational business, however, still vary. Among them are suggestions that obligations of states under existing international human rights law could be extended to corporations, a new binding international treaty on business and human rights could be adopted, or that transnational corporations should be held to account under national law. This paper was initially inspired by this debate and seeks to identify the gaps and loopholes in legal regulation to provide better understanding of which ways forward are feasible and under what circumstances. Given these specific objectives, this paper firstly identifies the obstacles to holding transnational corporations responsible for human rights abuses under public international law. It focuses on a conceptual analysis of legal personality in public international law and the limits to legal personality of non-state actors, specifically corporations in international human rights law. This paper then turns to international criminal law and examines whether international criminal law is...
  • The Triple Bottom Line: Reporting tool or reflexive framework? - An employee perspective on Corporate Responsibility in practice

    van der Voordt, Geoffrey Julian; van der Weijde, Rafaëla Petra Johanna Berbera (Lunds universitet/Företagsekonomiska institutionen, 2020)
    Purpose: In the context of contemporary organisational challenges regarding Sustainable Development, our inquiry’s purpose is to contribute to a deeper understanding of what it means for employees to work with the Triple Bottom Line (TBL) in the practical and local context of a global pharmaceutical company’s sustainability strategy. Research question: Our study is led by the research question “how do the employees of a global pharmaceutical company perceive and give substance to the Triple Bottom Line in a local context?”. Method: Using an interpretivist approach, we investigate the TBL within GlobalPharma by revealing the perceived reality of employees in working with this concept. We explore how they interpret and give substance to the concept of TBL in relation to their function. This study is based on semi-structured interviews with thirteen respondents from different countries. Findings: Our main empirical finding suggests that employees use the TBL as a reflexive framework to find purpose in their work. We contribute to the literature on Corporate Responsibility by showing that the TBL in practice is more than a reporting tool, which is how the TBL is commonly understood. On this basis, we argue that the criticism of the TBL as a reporting tool is partly misdirected. This as the TBL can help employees to make sense of their work and their company’s higher societal purpose in relation to its commercial needs.
  • Formation of the Concept of a Circular Economy

    The article represents a historical survey describing appearing and development of circular economy as an independent concept and its interсonnection to the phenomenon of new industrialization. The variety of definitions of the concept “circular economy” given by Russian and foreign scientists are provided in the article, basic approaches to the concept formation are determined. The comparative analysis of basic concepts related to environmentalism (sustainable development, ecologization, green economy, circular economy) was carried out. The evolutionary development of ecological imperatives that take part in the concept formation is studied; the characteristics of the concept, current state and general development prospects are described. The article is concluded by the clarified definition of “circular economy”. From the point of the author’s view, the circular economy concept is a general approach to promote green growth in countries’ development that allows to overcome global ecological problems and, as a result, to achieve sustainable state of the planet and to save lives on the Earth.
  • Corporate social responsibility in supply management

    Lappeenrannan-Lahden teknillinen yliopisto LUT; Lappeenranta-Lahti University of Technology LUT; Ernsten, Tommi (2020-06-25)
    The purpose of this thesis is to examine corporate social responsibility (CSR) practices in companies´ supply management activities. As international outsourcing has increased due to globalization, companies have had to focus on the ethical and sustainable conduct of their suppliers. Theories related to CSR are introduced in the theoretical part of the study. The study is performed by gathering relevant information from selected companies´ annual reports. Altogether ten Finnish companies were selected based on the amount of turnover they produce. Nine of the ten companies are publicly traded companies and one is a cooperative society. The size of the companies is a decisive factor since larger companies can be seen proactive and better prepared to adopt new procedures in their everyday business operations. The study is conducted as a qualitative research and the analysis of the research data is performed using a method of descriptive analysis. The data analysis is done by comparing the data to the theoretical background presented in the theoretical section of this study. The gathered data is interpreted, discussed and concluded to find relevant answers to the research questions of the study. Companies´ CSR practices relate to both company-made activities as well as international CSR initiatives provided by globally established organization, such as the United Nations. Companies are engaged with CSR in their supply management to improve people´s lives and the societies around them. But also, to maintain good reputation among their stakeholders and consumers making purchase decisions, as perceptions of companies´ conduct are enhanced by transparency and information sharing. Companies dealing with CSR associated with supply management, control supplier compliance using suppliers’ self-assessments, surveys and audits. In addition, education and training provided by the buyer companies allow better compliance of their suppliers.

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