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This paper frames trustworthiness as the key upstream construct of trust and recognises that trust operates at two levels in services relationships, with a number of key drivers that are mediated by trustworthiness. Our findings are supported by survey data from customers of UK financial services, with the data points captured over a number of years which allow for fluctuations in trust level. Empirically we find that trustworthiness impacts both the cognitive and affecting dimensions of trust, with the impact being greatest on cognitive trust. As a result of our findings it is possible for practitioner to implement policies to not only build trust but also deal with issues where there is a need to rebuild it, as in the case of our research setting. [ABSTRACT FROM PUBLISHER]

Activist campaigns describe efforts to modify socially or environmentally detrimental industry practices by contesting prominent industry members' versions of those practices (i.e., target firms). We adopt a sociocognitive perspective to account for variance in when and how the managers of target and nontarget firms attend to, interpret, and respond to pressure from activists. Overall, we enhance theory by explaining why firms in an industry differ in their reactions to activism, even when they are subject to common campaigns and strategies. [ABSTRACT FROM AUTHOR]

This study of the influence of the marketing department (MD), as well as its relationship with firm performance, includes seven industrialized countries and aims to generalize the conceptual model presented by Verhoef and Leeflang (2009). This investigation considers the antecedents of perceived MD influence, top management respect for the MD, and MD decision influence, as well as the relationships of these three influence variables with market orientation (MO) and business performance (BP). Meta-analytic procedures reveal initial empirical generalizations: Accountability, MD innovativeness, and the customer connection capabilities of the MD relate consistently to all three studied MD influence measures. The generalization also shows that MD influence contributes to BP indirectly through its positive relationship with MO and directly through its positive direct relationship with BP. [ABSTRACT FROM AUTHOR]

Some chief marketing officers (CMOs) are more powerful than others. The authors investigate the drivers and outcomes of this phenomenon using a hierarchical measure of power for the CMO in the top management team (TMT), or corporate executive suite (C-suite). Theory suggests that CMO power in the TMT should increase with (1) the CMO's control over resources required by other executives in the C-suite, (2) the criticality and (3) effective provision of these resources, and (4) the nonsubstitutability and (5) centrality of the CMO. The authors use these rationales to identify factors that affect CMO power in public U.S. firms with the CMO position for at least two of the five observed years. The findings show that CMO power increases when the CMO has the additional responsibility of sales, as TMT marketing experience decreases, and as firms with low levels of TMT marketing experience pursue innovation. Furthermore, CMO power in highly divisionalized TMTs and the CMO's additional responsibility of sales improve sales growth, but CMO power in firms that are unrelated diversifiers reduces profitability. The authors discuss the theoretical and practical implications of these results for marketing's influence in the C-suite and the firm, the integration of marketing and sales, and market orientation. [ABSTRACT FROM AUTHOR]

We extend research on the diffusion of corporate practices by providing a framework for studying practice variation during diffusion processes. Specifically, we theorize about how population-level mechanisms of diffusion link with organization-level mechanisms of implementation that lead to the adaptation of practices. We also identify technical, cultural, and political elements of fit (or misfit) between diffusing practices and adopters and analyze how the process of attaining fit across these elements can trigger different patterns of adaptation. [ABSTRACT FROM AUTHOR]

Sport—writ large—exists as a significant social institution, both in terms of economic and social impacts on the society of which it is a key part. This essay provides a systematic introduction to the concept of corporate social responsibility (CSR) for sport management scholars and practitioners. I review the historical development of CSR in the United States, provide a summary of the major theories and models currently in use by theorists and researchers, and identify key issues facing the CSR discourse. I conclude by returning to the notion of sport as an institution and try to raise questions, as an outsider, which may provoke thinking and perhaps action by sport management scholars and practitioners. [ABSTRACT FROM AUTHOR]

This article introduces an "ordonomic" approach to corporate citizenship. We believe that ordonomics offers a conceptual framework for analyzing both the social structure and the semantics of moral commitments. We claim that such an analysis can provide theoretical guidance for the changing role of business in society, especially in regard to the expectation and trend that businesses take a political role and act as corporate citizens. The systematic raison d'être of corporate citizenship is that business firms can and--judged by the criterion of prudent self-interest--"should" take on an active role in rule-finding discourses and rule-setting processes with the intent of realizing a win-win outcome of the economic game. We identify--and illustrate--four ways that corporate citizens can employ moral commitments as a factor of production to enhance their processes of economic value creation. [ABSTRACT FROM AUTHOR]

Outsourcing plays an important role for firms adopting new technologies. Although outsourcing provides access to a new technology, it does not guarantee that a firm can subsequently integrate the technology with existing business processes and leverage it in the marketplace. This distinction, however, has rarely been made in the literature. In the context of business process enhancing technologies, this study builds on the resource-based and knowledge-based views to study the impact of outsourcing on firms' subsequent performance in the market and their integrative capabilities, that is, a firm's capacity to use and assimilate a new technology with its business processes and build upon it. The study argues that greater reliance on outsourcing may reduce a firm's learning by doing, internal investment, and tacit knowledge applications, thereby impeding a firm's integrative capabilities and performance in the market. The study uses survey and archival data on banks' outsourcing strategies for Internet adoption to test for the performance consequences of outsourcing, which are found to be negative. However, the findings also show that outsourcing is less detrimental for firms with experience in prior related technology. Copyright © 2009 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The aim of this study is to illuminate reputational change processes and identify the underlying theoretical mechanisms. We draw upon extant literature to develop three distinct explanations for reputational change, respectively emphasizing criteria of organizational "character," symbolic conformity, and technical efficacy. We evaluate these explanations by examining the reputational consequences of corporate downsizing. Our results show that downsizing exerted a strong, negative effect on reputation, consistently with the character explanation. However, significant moderation of this negative effect by other factors, including stock market reaction and downsizing's overall prevalence, indicates the need for a multitheoretical approach to reputational change. [ABSTRACT FROM AUTHOR]

A large body of research has examined the performance effects of diversification. However, these results have been mixed, and scholars have called for examining contingencies under which the effects of different types (related, unrelated, geographic) and levels of diversification on performance vary. This study attempts to fill this gap in the literature by arguing that examining the performance effects of diversification is incomplete without taking into consideration the firm's information technology (IT) spending. We posit that IT, by enabling coordination and control in firms, is likely to moderate the relationship between diversification and performance. Combining arguments from both resource-based view and the organizational controls literature, we theorize about the moderating effects of IT spending under different types and levels of diversification. Using data from large U.S. manufacturing firms, we test our research hypotheses. Our results indicate that while IT spending interacts with related diversification to have a positive effect on firm performance, similar interactions with unrelated diversification do not have any effects on firm performance. Furthermore, the interaction between IT spending and geographic diversification is positively associated with performance only when the level of geographic diversification is low. We interpret and discuss these results and highlight the theoretical and practical implications of our findings. [ABSTRACT FROM AUTHOR]

Despite the popularity of sponsorship-linked marketing programs, we know little about how firms form sponsorship policies. This article describes a corporate identity-sponsorship policy link and offers empirical support for it via a mixed method research design. Content analysis of 146 Fortune 500 companies' online sponsorship policies and mission statements is followed by cluster, factor and multinomial regression techniques. Results show that corporate identity, as reflected in mission statements, matters to sponsorship policy. Specifically, companies emphasizing financial success in their mission statements prefer to sponsor individual athletes, education, the environment and health-related activities. Alternatively, companies stressing the importance of employees demonstrate a propensity to sponsor team sports, entertainment, religious, community, charity and business related activities. Reasons for these strategic differences are discussed. [ABSTRACT FROM AUTHOR]

We explore the contextual factors surrounding reputation damage and their potential implications for reputation repair. We propose a model that examines how (1) the multidimensional property of reputation, (2) organizational age, (3) the diversity of market segments served by the organization, and (4) third parties influence a firm's perceived capability to cope with a reputation-damaging event and the external visibility of the event, which, in turn, determine the difficulty of the firm's reputation-repairing activities. [ABSTRACT FROM AUTHOR]

Radical innovation is an important driver of the growth, success, and wealth of firms and nations. Because of its importance, authors across various disciplines have proposed many theories about the drivers of such innovation, including government policy and labor, capital, and culture at the national level. The authors contrast these theories with one based on the corporate culture of the firm. They test their theory using survey and archival data from 759 firms across 17 major economies of the world. The results suggest the following: First, among the factors studied, corporate culture is the strongest driver of radical innovation across nations; culture consists of three attitudes and three practices. Second, the commercialization of radical innovations translates into a firm's financial performance; it is a stronger predictor of financial performance than other popular measures, such as patents. The authors discuss the implications of these findings for research and practice. [ABSTRACT FROM AUTHOR]

A weak organizational culture creates an environment that leads to inefficiencies in human resources. Both a weak organizational culture and inefficiencies in human resources are major barriers to the implementation of environmental action processes. However, very few studies have been published in this area. The objective of this study, therefore, is to conduct an exploratory case analysis and develop some proposals based on the conclusions arrived at. We have analyzed a total of 8 factories to ensure a sufficient number of sources of information. Some factors linked to organizational culture and the human resource management in a factory that favour environmental performance were found. [ABSTRACT FROM AUTHOR]

Resource-based theory (RBT) has emerged as a key perspective guiding inquiry into the determinants of organizational performance. Since the early 1990s, numerous studies have examined RBT's assertion that the extent to which organizations possess strategic resources is positively related to performance. Although many studies appear to support this assertion, there is no consensus regarding how strongly strategic resources relate to performance. To help resolve this issue, we meta-analyze 125 studies of RBT that collectively encompass over 29,000 organizations. Our conservative estimate is that the effect size of the strategic resources–performance relationship is &rmacr;c = 0.22. Moderator tests suggest that the resources-performance link is stronger (1) when resources meet the criteria laid out in RBT and (2) for those performance measures that are not affected by potential value appropriation. When resources meet RBT's criteria and when performance measures are not affected by potential appropriation, the strength of the relationship grows to &rmacr;c = 0.29. This suggests that the identification, development, and distribution of value from strategic resources should be a primary consideration for scholars, managers, and shareholders. Copyright © 2008 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper seeks to understand how contentious practices spread from initial targets of activism to become accepted by organizations in the mainstream. Using a dataset on the diffusion of domestic partner benefits in the Fortune 500 from 1990 to 2005, we show that widespread adoption among mainstream firms was triggered by the prior adoptions of companies known to resist activism. We also find that employee activist groups within firms played a different role depending on the company's orientation toward activism. Employee groups increased the likelihood of adoption in activism-prone firms, but in mainstream firms, they increased the susceptibility of the firm to prior adoptions by others. These findings support a view of institutionalization as a contested process and suggest an alternative mechanism through which social networks influence that process. Like the effect of Cold-War President Richard Nixon's surprising visit to the People's Republic of China in 1972, which led other countries to open relations with China, adoption of a practice by activism-resistant firms signaled to mainstream firms that an advocated practice had lost its contentiousness. Rather than providing pressure toward conformity, adoption events in a firm's environment can be seen as a cultural resource that supports or undermines the arguments made by proponents of change inside organizations. [ABSTRACT FROM AUTHOR]

In this paper we explore the "glass cliff" form of discrimination. We review archival and experimental evidence of the glass cliff and identify multiple processes as having the potential to contribute to the phenomenon. We also outline a range of potential reactions to the phenomenon, and we elaborate strategies for eliminating glass cliffs, but, as with other forms of (gender) discrimination, we argue that these depend on the capacity for disadvantaged groups to overcome resistance on the part of those who are motivated to maintain the status quo. [ABSTRACT FROM AUTHOR]

Interest in and research about affect in organizations have expanded dramatically in recent years. This article reviews what we know about affect in organizations, focusing on how employees' moods, emotions, and dispositional affect influence critical organizational outcomes such as job performance, decision making, creativity, turnover, prosocial behavior, teamwork, negotiation, and leadership. This review highlights pervasive and consistent effects, showing the importance of affect in shaping a wide variety of organizational behaviors, the knowledge of which is critical for researchers, managers, and employees. [ABSTRACT FROM AUTHOR]

Stories of local managers working for global corporations reveal that the standard multicultural approach no longer suffices to describe what is occurring at the borders of the global business system. Local managers retain local managerial culture even as they are indoctrinated into the culture of the corporations. The resulting hybrid forms of management should be studied by corporations. Interviews with Thai, Mexican and Israeli managers of two global corporations headquartered in Sweden and the US exemplify this hybridization. [ABSTRACT FROM AUTHOR]

The systemic role of corruption and its link to low human development is explored. The extractive resource industry is presented as an arena where conditions for corruption-monopoly and discretion without accountability-are especially intense. Corruption is maintained by a self-reinforcing cycle. Multiple stakeholders are involved in the maintenance of and/or opposition to the cycle: investing corporations, host country regimes and officials, inter-governmental bodies like the OECD, industry associations, non-governmental organization (NGO) watchdogs like Transparency International, and international agencies facilitating global investment like the World Bank. Complementarity of interests between the demand and supply sides provides strong incentives for entrenched players to maintain corruptive relationships, to protect past gains and sustain current ones. Compulsory international regulation, maximum transparency, effective detection, and enforcement are recommended to enhance accountability, thereby reversing the cycle. It is also necessary to create a corporate culture built on integrity, if regulation itself is to succeed. [ABSTRACT FROM AUTHOR]

Although the concept of corporate social performance (CSP) has become more clearly specified in recent years, an analysis of CSP from the perspective of one particular stakeholder group has been largely ignored in this research: employees. It is proposed that employees merit specific attention with regard to assessments of corporate social performance. In this paper, a model for evaluating and measuring CSP at the employee level is proposed, and implications for evaluating contemporary employment policies and practices are offered. An iterative process for systematically including normative content in the CSP model across stakeholder groups is also offered. [ABSTRACT FROM AUTHOR]

We investigated how demographic differences affected people's responses to organizational cues to cooperate with their coworkers. Officers from a large financial services firm who were more demographically different from their coworkers behaved more cooperatively when their business unit emphasized collectivistic rather than individualistic cultural values. Our results imply that understanding and managing cooperative behavior requires considering the interplay between relational demography and organizational culture. [ABSTRACT FROM AUTHOR]

Extending the workday to the home into the night and weekends is nothing new; however, the wide array of technological tools that facilitate an anytime-anywhere connectedness of employees to their employers is a recent phenomenon. Technology-assisted supplemental work (TASW) is the practice of lengthening working time by remaining connected to work, coworkers, supervisors, and other organizational stakeholders from home via advanced digital information technology (i.e., personal and handheld computers, cellular phones, or pagers). Although previous research offers insight into some aspects of this work form (Venkatesh & Vitalari, 1992), we present a new, broader theoretical framework that explains how organizational climate and employee characteristics promote the performance of TASW, and how both perceived usefulness of technology and satisfaction with adopted technology affect the strength of these relationships. We also explain the linkages among TASW and job performance, career success, and work-to-family conflict and incorporate media richness and time and boundary management as moderators of these relationships. We present propositions, offer a general research strategy, and discuss the framework's theoretical and managerial implications. [ABSTRACT FROM AUTHOR]

The article looks at some of the changes occurring in American's corporate culture, focusing on corporate values and social responsibility. Companies are often forced into becoming for responsible through a required disclosure of risks to insurance companies. The author feels, despite his inclination to believe that corporate responsibility has selfish motives, that businesses really are changing, along with businesspeople who think past the bottom line mentality. The author discusses the research conducted for his book, "What Matters Most." He changing roles of non-governmental organizations in social responsibility are considered.

In cause-related marketing (CRM), a company agrees to donate money to a charity each time a consumer engages in a revenue-producing transaction with the firm. Since the company benefits first before any obligation to donate is accrued, consumers might perceive this practice to be less altruistic than an unconditional donation to a cause. If so, CRM could backfire, injuring corporate image. This study investigated the effects of type of donation (conditional or not conditional upon corporate revenue) and reputation of the firm making donation (Firms described as scrupulous, average, or irresponsible in the discharge of their social responsibility) on consumer regard for the firm; perceived mercenary intent of the firm; and whether the social performance of the company is consistent with "good " management. Consumer responses were predicted based on the contrast effect and attribution theory. Results suggest that irresponsible firms increased their favor with consumers by pursuing either type of donation. The average firm enhanced its image by pursuing unconditional donation, but a conditional donation did not damage firm image. Perception of the scrupulous firm was little changed after unconditional donation, but a scrupulous firm suffered a loss of favor by pursuing CRM. It is concluded that the average firm does not risk a loss of public goodwill when using CRM. [ABSTRACT FROM AUTHOR]

Initial architectural change in organizations often induces other subsequent changes, generating lengthy cascades of changes in subordinate units. This article extends a formal model of cascading organizational change by examining the implications for organizational change of the limited foresight of those who initiate such change about unit interconnections (structural opacity) and the normative restrictiveness imposed on architectural features by organizational culture (cultural asperity). Opacity leads actors to underestimate the lengths of periods of reorganization and the associated costs of change, thereby prompting them unwittingly to undertake changes with adverse consequences. Increased opacity and asperity lengthen the total time that the organization spends reorganizing and the associated opportunity costs; and the expected effect of an architectural change on mortality hazards increases with the intricacy of the organizational design, structural opacity, and the asperity of organizational culture. We illustrate the theory with an interpretation of the 1995 collapse of Baring Brothers Bank. [ABSTRACT FROM AUTHOR]

Companies are increasingly asked to provide innovative solutions to deep-seated problems of human misery, even as economic theory instructs managers to focus on maximizing their shareholders' wealth. In this paper, we assess how organization theory and empirical research have thus far responded to this tension over corporate involvement in wider social life. Organizational scholarship has typically sought to reconcile corporate social initiatives with seemingly inhospitable economic logic. Depicting the hold that economics has had on how the relationship between the firm and society is conceived, we examine the consequences for organizational research and theory by appraising both the 30-year quest for an empirical relationship between a corporation's social initiatives and its financial performance, as well as the development of stakeholder theory. We propose an alternative approach, embracing the tension between economic and broader social objectives as a starting point for systematic organizational inquiry. Adopting a pragmatic stance, we introduce a series of research questions whose answers will reveal the descriptive and normative dimensions of organizational responses to misery. [ABSTRACT FROM AUTHOR]

This article argues that tight linkages with customers present a paradox for the firm. The research question of this study is: What is the behavioral and cognitive process by which a firm establishes close links with its customers, and how can this process be both beneficial and detrimental? Existing theory and data from apparel retailers suggest that firms forge these tight links by enacting their customer environment. In the process of enactment, cognitions and actions reinforce each other and become increasingly focused. The tight coupling generated through enactment comes at the price of increased commitment and restricted vision. The author argues that firms should balance the natural process of tight coupling with a deliberate effort at loose coupling, and draws implications for further research on the organization-environment interface. [ABSTRACT FROM PUBLISHER]

The long-running debate between the 'rational design' and 'emergent process' schools of strategy formation has involved caricatures of firms' strategic planning processes, but little empirical evidence of whether and how companies plan. Despite the presumption that environmental turbulence renders conventional strategic planning all but impossible, the evidence from the corporate sector suggests that reports of the demise of strategic planning are greatly exaggerated. The goal of this paper is to fill this empirical gap by describing the characteristics of the strategic planning systems of multinational, multibusiness companies faced with volatile, unpredictable business environments. In-depth case studies of the planning systems of eight of the world's largest oil companies identified fundamental changes in the nature and role of strategic planning since the end of the 1970s. The findings point to a possible reconciliation of 'design' and 'process' approaches to strategy formulation. The study pointed to a process of planned emergence in which strategic planning systems provided a mechanism for coordinating decentralized strategy formulation with a structure of demanding performance targets and clear corporate guidelines. The study shows that these planning systems fostered adaptation and responsiveness, but showed limited innovation and analytical sophistication. [ABSTRACT FROM AUTHOR]

In contrast to "social contract" theories of the corporation, a moral justification of the corporation as actual, not hypothetical, agreement is presented. Central to the justification is the idea of personal projects, as developed by Loren Lomasky. The key idea is the role that corporations can play in the construction and advancement of personal, value-creating projects. The concept of the corporation as actual agreement, as a type of "right of association" theory, is defended against influential criticism of such theories by Thomas Donaldson. [ABSTRACT FROM AUTHOR]

In providing an ethical guide for managers, the Clarkson Principles offer one part of a possible professional code, namely, that managers have a fiduciary duty--a duty of loyalty of the corporation's stakeholders. However, the Clarkson Principles contain little advise for managers when they act politically to fashion the regulatory framework in which stakeholders negotiate. When managers participate in these arenas, I argue that they ought to assume a second fiduciary duty--a duty of loyalty to fair bargaining. Where the first duty of loyalty pertains to the firm's "constituents," the second refers to the firm's "constitution"--to the rules by which the firm's stakeholders bargain and to the background conditions that distribute advantages. Together, these two fiduciary duties establish the large good--development as freedom--from which a managerial profession can mature. [ABSTRACT FROM AUTHOR]

In this article, I offer a proposal to clarify what I believe is the proper relation between value maximization and stakeholder theory, which I call enlightened value maximization. Enlightened value maximization utilizes much of the structure of stakeholder theory but accepts maximization of the long-run value of the firm as the criterion for making the requisite tradeoffs among its stakeholders, and specifies long-term value maximization or value seeking as the firm's objective. This proposal therefore solves the problems that arise from the multiple objectives that accompany traditional stakeholder theory, I also discuss the Balanced Scorecard, which is the managerial equivalent of stakeholder theory, explaining how this theory is flawed because it presents managers with a scorecard that gives no score--that is, no single-valued measure of how they have performed. Thus managers evaluated with such a system (which can easily have two dozen measures and provides no information on the tradeoffs between them) have no way to make principled or purposeful decisions. The solution is to define a true (single dimensional) score for measuring performance for the organization or division (and it must be consistent with the organization's strategy), and as long as their score is defined properly, (and for lower levels in the organization it will generally not be value) this will enhance their contribution to the firm. [ABSTRACT FROM AUTHOR]

We argue that though stakeholder theory has much to recommend it, particularly as a heuristic for thinking about business firms properly as involving the economic interests of other groups beyond those of the shareholders or other equity owners, the theory is limited by its focus on the interests of human participants in business enterprise. Stakeholder theory runs into intractable philosophical difficulty in providing credible ethical principles for business managers in dealing with some topics, such as the natural environment, that do not directly involve human beings within a business firm or who engage in transactions with a firm. Corporate decision-making must include an appreciation of these ethical values even though they cannot be captured in stakeholder theory. [ABSTRACT FROM AUTHOR]

This paper discusses global corporate citizenship in the twenty-first century. The primary focus is on the responsibility of management educators to foster among students an understanding of the causes and consequences of business activity that creates organizational wealth, including the role of stakeholders. The modern corporation is a stakeholder enterprise: stakeholders enable the business to create wealth and require that it distribute wealth appropriately. The stakeholder enterprise model, which has been so economically successful, also implies corporate citizenship responsibilities. The Clarkson Principles are discussed as a means through which educators and managers can better understand and address the challenges of corporate citizenship in the modern world. [ABSTRACT FROM AUTHOR]

In this article we first review the development of the concept of global business citizenship and show how the libertarian political philosophy of free-market capitalism must give way to a communitarian view in order for the voluntaristic, local notion of "corporate citizenship" to take root. We then distinguish the concept of global business citizenship from "corporate citizenship" by showing how the former concept requires a transition from communitarian thinking to a position of universal human rights. In addition, we link global business citizenship to global business strategy and to three analytical levels of ethical norms. Finally, we trace a process whereby global businesses can implement fundamental norms and learn to accommodate to legitimate cultural differences. [ABSTRACT FROM AUTHOR]

Stakeholder theorists have typically offered both a business case and an ethics case for business ethics. I evaluate arguments for both approaches and find them wanting. I then shift the focus from ethics to law and ask: "Why should corporations obey the law?" Contrary to what shareholder theories typically imply, neoclassical or profit maximization theories of the firm can offer answers based only on instrumental justifications. Instrumental justifications for obeying the law, however, are pragmatically and normatively incoherent. This is because the modern corporation is a legal artifact. It exists because communities create the legal framework necessary for its existence. Individual corporations can therefore be said to owe their existence to a partnership (what might be called a social contract) between shareholders and governments, a partnership that is itself built on the shared though often implicit understanding that corporations have an unconditional (categorical) obligation both to obey the law and to treat their stakeholders ethically while generating wealth for their shareholders. [ABSTRACT FROM AUTHOR]

Prevailing research claims that strong corporate cultures improve firm performance by facilitating internal behavioral consistency. This paper addresses an unexamined implication of this argument by analyzing the effect of strong corporate cultures on the variability of firm performance. This relationship depends on how strong cultures affect organizational learning in response to internal and external change. I hypothesize that strong-culture firms excel at incremental change but encounter difficulties in more volatile environments. Results of analyses of a sample of firms from a broad variety of industries show that in relatively stable environments, strong-culture firms have more reliable (less variable) performance. In volatile environments, however, the reliability benefits of strong cultures disappear [ABSTRACT FROM AUTHOR]

This article argues that the important organizational values to study are organizational moral values. It identifies five moral values (honest communication, respect for property, respect for life, respect for religion, and justice), which allow parallel constructs at individual and organizational levels of analysis. It also identifies dimensions used in differentiating organizations' moral values. These are the act, actor, person affected, intention, and expected result. Finally, the article addresses measurement issues associated with organizational moral values, proposing that content analysis is the appropriate measurement technique to be used for an organization-level conception of moral values. [ABSTRACT FROM AUTHOR]

After exploring MacIntyre's (1985) practice--institution distinction, the article demonstrates its applicability to business-as-practice and to corporations as institutions. It then considers the implications of MacIntyre's schema to ethical schizophrenia, to the claim that the market is a source of the virtues and to the opposite claim that capitalism corrodes character. A fully worked out modern virtue ethics, based on MacIntyre's work, is then established and the claim is made and substantiated that such an understanding of McIntyre's work revitalises it and makes it directly applicable to business and to corporations. [ABSTRACT FROM AUTHOR]

Organizational justice and injustice are widely noted influences on employees' ethical behavior. Corporate ethics programs also raise issues of justice; organizations that fail to "follow-through" on their ethics policies may be perceived as violating employees' expectations of procedural and retributive justice. In this empirical study of four large corporations, we considered employees' perceptions of general organizational justice, and their perceptions of ethics program follow-through, in relation to unethical behavior that harms the organization, and to employees' willingness to help the organization by reporting ethical problems and issues to management. Results show that when employees perceive general organizational justice and ethics program follow-through, there is less unethical behavior and greater willingness to report problems. General justice and ethics program follow-through also interact with each other, showing that the impact of ethics initiatives is influenced by the organizational context. [ABSTRACT FROM AUTHOR]

Phillips and Margolis argue that moral philosophy is a poor basis for business ethics, but their narrow view of moral philosophy would exclude Aristotle, for one. They criticize me for assimilating states and organizations in using the Rawlsian device, but they put too much faith in Rawls's distinction between states and voluntary organizations and pay too little attention to the continuities between them. Their plea for a conceptually autonomous ethics for organizations I interpret as reasonable and largely compatible with my own stated opinion. [ABSTRACT FROM AUTHOR]

Business myth is generally treated in business ethics literature as a mental obstacle that must be removed in order to prepare the ground for rational thinking on the ethical aspect of business conduct. This approach, which focuses on the content of myth, does not explicate the nature and function of myth. Based on the study of myth in the fields of humanities and social sciences, this paper develops a theoretical framework and analytical tool--the revolving-door model--for researching myth in business. The proposed framework (1) offers new perspectives on myth: the consumer's, the producer's, the mythologist's, and the ethicist's; (2) explicates various distortion mechanisms of the myth; and (3) enables a redefinition of the relation of business myth to business ethics. The applicability of this framework is demonstrated by means of a real case which sets the stage for examining a set of common myths. [ABSTRACT FROM AUTHOR]

This paper investigates the broad ideological conflict between world views on corporate culture. Two views are identified: one encompassing standard liberal economic philosophy; the other taking broader notions of corporate culture from ethics theory. The conflict that surrounded the World Trade Organization meeting in Seattle is used as an illustration of the current conflict between these views The writings of Alasdair MacIntyre are employed as a means of elucidating and reconciling these two world views. [ABSTRACT FROM AUTHOR]

Traditional approaches to regulating corporate behavior have not, and cannot, produce socially responsible corporations. Although many of the problems with these approaches were identified twenty-five years ago by Christopher Stone, an effective regulatory system still has not been implemented. A model of regulation is needed that is flexible enough to accommodate the variety of contexts in which corporations operate, but also makes corporations responsive to the ever-changing societal expectations of proper corporate behavior. To accomplish these goals, a reflexive law regulatory system is needed. Under this approach, corporations should be encouraged to engage in corporate social accounting, auditing, and reporting (SAAR). The development of SAAR standards informed by reflexive law theory will create a regulatory system that is consistent with the latest thinking in business ethics, including Stakeholder Theory and Integrative Social Contracts Theory. [ABSTRACT FROM AUTHOR]

Loyalty within the firm, though praised by some, is criticized by others. An analysis of the historical and current significance of the concept of loyalty can aid in both understanding its critics and responding to them. Loyalty in the business world is generally understood in three ways: i) transactional retention, ii) sentimental attraction, and iii) willingness to commit oneself. In the third type, the commitment to adhere to a person, cause, or institution may contribute to human flourishing and therefore generate the human virtue of loyalty. The human virtue of loyalty is as far from fanaticism as it is from the betrayal of legitimate commitments freely undertaken. As with all virtues, its content must be rationally determined. Loyalty thus understood enhances the humanity of both persons and business firms and contributes to heightened cohesion and cooperation within the firm. Moreover, according to some recent research, managing a business on the basis of loyalty can enhance economic results. [ABSTRACT FROM AUTHOR]

This article surveys arguments for the claim that employees have a right to strong forms of decision-making participation. It considers objections to employee participation based on shareholders' property rights and it claims that those objections are flawed. In particular, it argues the employee participation rights are grounded on the same values as are property rights. The article suggests that the conflict between these two competing rights claims is best resolved by limiting the scope of corporate property rights and by recognizing a strong employee right to co-determine corporate decisions. [ABSTRACT FROM AUTHOR]

To achieve ethical corporate governance, directors' first priority must be to examine their own structure and operation. If the board is vulnerable to charges of unethical conduct, it will have little credibility in its oversight role over the corporate culture of the organization. An examination of a positive model of corporate governance in the mutual fund industry provides an effective illustration of several ways to add ethics to corporate governance 1) legislation; 2) jawboning; 3) peer pressure, 4) regulation; 5) training and reflection. While peer pressure and training are more effective than the others, all those methods taken together cannot solve every ethical lapse. Only individual board members, working together, can influence the conduct of the board and propel themselves and the organization towards a standard of continuing ethical excellence [ABSTRACT FROM AUTHOR]