Premium Essay

Managing Ethically with Global Stakeholders: a Present and Future Challenge

In: Business and Management

Submitted By momoying
Words 4322
Pages 18
Academy of Management Executive, 2004, Vol. 18, No. 2

........................................................................................................................................................................

Managing ethically with global stakeholders: A present and future challenge
Archie B. Carroll

In the early 2000s, the era of corporate fraud and corruption defined by the ethical wrongdoing of Enron, WorldCom, Tyco, Arthur Andersen, and HealthSouth captured the world’s attention as never before. It soon became clear, however, that the U. S. had not cornered the market on questionable ethics. The Dutch firm Ahold and Italy’s Parmalat quickly shared center stage with scandals of their own. Domestic business ethics will continue to be a top priority. But global business ethics will demand cutting-edge thinking and practice as companies strive to expand their products, services, sales, and operations throughout the world. Regardless of what is happening in individual countries, whether at home or abroad, the primary venue for ethical debates in the future will more and more be the world stage.

The primary venue for ethical debates in the future will more and more be the world stage.
Globalization characterizes the international setting of business transactions in which U. S. and world multinational corporations (MNCs) will increasingly participate over the next several decades. Despite setbacks such as the attacks upon the World Trade Center in 2001 and the antiglobalization backlash that continues to be seen at major international meetings of the World Trade Organization, International Monetary Fund, and global summits such as the G8 summits, the global economy is irresistible to MNCs, and little will impede the trend toward global capitalism. The explosive growth of MNCs has set the stage for global business ethics to be one of the

Similar Documents

Premium Essay

Management

...Managerial Context 4. Importance of Ethics 5. Five sources of OB MGMT641_S1_2015_JLarkin MGMT641_S1_2015_JLarkin What is OB? • An interdisciplinary field dedicated to better understanding and managing people at work • Why study OB? – To interact more effectively with others in organizations – People skills complement technical skills MGMT641_S1_2015_JLarkin • • • • Human Relations Movement The Quality Movement E-Business Revolution Human and Social Capital History of Organizational Behaviour MGMT641_S1_2015_JLarkin Management • Process of working with and through others to achieve organizational objectives efficiently and ethically • What skills are exhibited by an effective manager? • 21st Century managers have to play chess, not checkers MGMT641_S1_2015_JLarkin Evolution of 21st-Century Managers Primary Role Cultural Orientation Source of influence View of people Decision-making style Ethical considerations Past Managers Monocultural, monolingual Formal authority Potential problem Limited input for individual decisions Afterthought Future Managers Multicultural, multilingual Technical knowledge and interpersonal skill Primary resource; human capital Broad-based input for joint decisions Forethought MGMT641_S1_2015_JLarkin 1 The Ethics Challenge “In the Post Enron, post-bubble world, there’s a yearning for corporate values that reach higher than the size of the CEO’s paycheck or even the latest stock price. Trust, integrity and fairness do...

Words: 416 - Pages: 2

Premium Essay

Cib100

...companies, with over 36 000 employees and the country’s most extensive mobile network, we at Telstra believe it is our duty to set the standard of corporate social responsibility, both in our industry and beyond. We are proud signatories of the United Nations Global Compact and endeavour to continually maintain, improve and expand our CSR programs to adhere to the Compact’s principles and fulfil the social contract we hold with our stakeholders. OBJECTIVES In this submission we will put forward our recommendations for obtaining compliance with the Global Compact principles two and seven. We will also outline our current efforts in these areas, proposed benchmarks, and the impact our recommendations will have on the stakeholders of companies that choose to implement them. PRINCIPLE 2 “Business should make sure that they are not complicit in human rights abuses.” – UN 2014 | PRINCIPLE 7 “Businesses should support a precautionary approach to environmental challenges.” – UN 2014 | LOCAL NETWORK SUBMISSION | TELSTRA CORP | 3 Through this submission we hope to encourage other Australian companies to take a proactive approach to CSR and improve their business practice to further abide by the principles of the Global Compact. We are well placed to achieve this as we have been a member of the Compact since 2011. We are also part of Australia’s first Human Rights Working Group for Business (set up by this network in 2010...

Words: 1520 - Pages: 7

Premium Essay

Business

...ETHICAL CHALLENGES FOR BUSINESS IN THE NEW MILLENNIUM: CORPORATE SOCIAL RESPONSIBILITY AND MODELS OF MANAGEMENT MORALITY Archie B. Carroll Abstract: As we transition to the 21 s« century, it is useful to think about some of the most impor tant challenges b u s i n e s s and other organizations will face as the new millennium begins. What will constitute "business as usualI" in the business ethics arena as we start andiiiuvc iniu intonew i^eiiiuiyr iviy uvciaii iiiijugiii I3 tiioi wethought is that we will move me the new iry? My overall win aiiu pulsate into the future on our current trajectory and that the new century will not cause cataclysmic changes, at least not immediately. Rather, the problems and challenges we face now we will face then. Undoubtedly, new issues will arise but they will more likely be extensions of the present than discontinuities with the past. A s we transition to the 21*' century, it is useful to think about some of the most important challenges business and other organizations will face as the new millennium begins. As I write this essay, the public seems to be more concerned with the Y2K problem and whether their computers will keep working, their power will stay on, their investments will be secure, there will be food in the pantry, airplanes will still fly, and that life as we know it will continue as usual. Optimistically, by the time this is published we will all look back and conclude that technology is amazing...

Words: 5087 - Pages: 21

Premium Essay

Developing an Ethical Business Enviroment

...Developing an Ethical Business Environment: A Report to Executive Management Introduction Ethics and business rules always go together. The fact that business policing is based upon the different measures of complete recognition of social norms and social limitations, ethics is indeed a large part of the ways by which business organizations try to strive to be able to become more effective within their operational engagements with regards their aim of being able to influence the society as well. It is indeed certain that the rules and regulation that a business puts up should be able to meet certain standards of social compromises. Any business organization could not afford to be questioned simply because of the fact that the business procedures that they are adapting to are not meeting the set standards for business organizations. (Kuhn, 2005, 12) To be able to have a clearer view of the matter being reported herein, it is first most importantly to be given attention to as to how management is indeed in relation with the actual application of ethical standards within the society. To be able to do this, there are three major points to consider. The said points are as follows: • The effect of organizational culture on ethical operation • The roles and responsibilities of executive management in fostering an ethical operating environment • The impact of ethical standards as they are used in business operations Through the consideration given to these particular...

Words: 3627 - Pages: 15

Premium Essay

Business Ethics

...Business Ethics By Takeisha Bagley American Intercontinental University November 12, 2009 Abstract This paper will address current issues that organizations face when trying to control business ethics. Over time, business ethics and the U.S. government’s outlook on controlling unethical and illegal behavior have varied. Although business ethics has been discussed for several decades, it has only come to the forefront in the past several years. This has been especially true over the past decade, with the enactment of the Sarbanes-Oxley Act of 2002 (SOX) to help protect employees and investors. CHAPTER 1: INTRODUCTION Over the past decade, Enron, WorldCom, and Arthur Anderson have been household names when discussing business ethics. Each of these companies, in its own specific way, made use of gray areas in accounting. These subjective areas were not tightly controlled by the Securities and Exchange Commission (SEC) and were used to misrepresent a company’s financial performance for the purpose of misleading the investment community (Carroll, 2004). Although ethics and compliance are two separate entities, they are fundamentally intertwined. Compliance involves laws and regulation, while ethics encompasses an individual’s beliefs and values. An individual’s ethical beliefs are based on the “ideals, to which employees aspire to act, when called upon to make a decision about what is right and where law is not clear” (National Business Ethics, 2005, p. 9). Problems...

Words: 610 - Pages: 3

Premium Essay

Corporate Environmental and Social Management

........................................... 2 I. The development of global, European and national policies relating to sustainability. 2 1. Changing attitudes of public, politicians and businesses to the environment since 1945 .................................................................................................................................... 2 2. Brundtland definition of ‘sustainable development’ .................................................. 4 3. The international and UK policies to sustainable development since Earth Summit of 1992 ................................................................................................................................ 4 4. Triple bottom line........................................................................................................ 5 II. The commercial case for considering social and environmental matters in business management .......................................................................................................................... 6 1. 2. 3. Stakeholders and how they impact on business policies ........................................... 6 Is adopting CSR policies cost-saving? .......................................................................... 7 Primark Ethical Trading ............................................................................................... 7 III. Balance between expectations of stakeholders and the social and environmental issues 9 1. Would you pay extra...

Words: 7353 - Pages: 30

Premium Essay

International Management

...Globalization Effects on Culture, Business Ethics, and Leadership: A Managerial View Introduction The world’s economy has developed and changed dramatically throughout the years and continues to do so. We are quickly moving away from a world where each country’s economy is isolated and more towards a world with an interdependent global economic system. This interdependent global economic system is commonly referred to as globalization (Saee 2005). The book written by John Saee, Managing Organizations in a Global Economy: An Intercultural Perspective, suggests that the growth of global trade, cross-border investments, mass migration, large-scale tourism, and much more has turned the world into more of a “global village” (Saee 2005). While globalization has effected nearly every aspect of human civilization, it has created some very serious concerns for managers whose organizations and firms already are or are planning to be involved in business transactions that take place outside of their domestic environment. If companies and corporations want to be successful in today’s economy, then it is important for managers to have a thorough knowledge and understanding of different types of cultures, business ethics, and ways of leadership, and the implications that these differences will have on their businesses. In this paper, we will discuss the effects that globalization has had on managers with respect to culture, business ethics, and leadership. Culture Globalization...

Words: 2915 - Pages: 12

Premium Essay

Social Responsibility

...Responsibility and Ethics How important is it for organizations and managers to be socially responsible and ethical? In this chapter, we’re going to look at what it means to be socially responsible and ethical and what role managers play in both. Focus on the following learning outcomes as you read and study this chapter. LEARNING OUTCOMES 5.1 Discuss what it means to be socially responsible and what factors influence that decision. 5.2 Explain green management and how organizations can go green. 5.3 Discuss the factors that lead to ethical and unethical behavior. 5.4 Describe management’s role in encouraging ethical behavior. 5.5 Discuss current social responsibility and ethics issues. SPOTLIGHT: Manager at Work Chapter 5 presents contemporary concepts of managerial ethics and social responsibility to help your students explore and appreciate the critical role of these issues in today’s complex business environment. In the opening case, “A Manager at Work,” we see firsthand the complications that arise when companies are caught in the middle of unethical and illegal allegations. The case revolves around allegations of attempted bribery by three Renault executives. After an investigation, all three of the employees were dismissed, but the story doesn’t end there as the Paris prosecutor in charge of the case later dismissed the charges for lack of evidence. Renault would eventually backtrack on the firing of the executives, rehiring all three, compensating ...

Words: 5313 - Pages: 22

Premium Essay

Weqe

...MSc Business Management BS7916 Principles of Responsible Management Semester One 2013- Module Handbook Module Leader : Dr Roz Sunley Room 201 Roz.Sunley@winchester.ac.uk Room 201 West Downs 01962 827339 In this module study guide you will find much of what you need in order to successfully complete the module. Further learning materials and information are available on the learning network under the module code BS7916. Module Code BS7916 Module Name: Principles of Responsible Management It is your responsibility to: * Collect a copy of the reading pack from the faculty office * Attend both lecture and seminar sessions as stated on your timetable * Arrive in time for the start of all taught sessions * Read the preparatory reading before the taught sessions each week * Undertake any directed learning that may be set * Seek help from the module tutor if you are having any problems with any aspect of the module * Hand in assignments on time Tutor contact details: Module leader: Dr Roz Sunley Roz.Sunley@winchester.ac.uk Module tutor: Dr Natalia Yakovleva Natalia.Yakovleva@winchester.ac.uk Module administrator: Karen Robbertze Karen.Robbertze@winchester.ac.uk Contents Introduction and learning outcomes 3 Weekly schedule 4-6 Assessment 7-9 Useful texts 9-11 Feedback, Harvard referencing etc 12 Study guide for each week 12 - 17 Marking criteria 18 – 20 Background...

Words: 4620 - Pages: 19

Premium Essay

Statics

...international business ethics. Current ethics challenges in international environment. Common issues of the international business ethics. Comparison of ethical standards in different cultures. Accelerating development of globalization and assimilation between Europe and the USA. Differences between Europe, the United States and Asia in the business ethics perspective. Development processes of global business ethics. Levels of global business ethic level. Principle of normative guidelines for business conduct of multinational corporations. Current functioning of institution engaged in the international business ethics. Key words: The ethics triangle; Current ethics issues; International business ethics; Ethical standards; Global business ethics; Institution engaged in the International Business Ethics. JEL classification: K2, M1 Introduction The present economic situation in the globalized world generates very efficient processes in international companies with large profits for managers but with a relevant risk in economic and noneconomic ambit to eliminate any negative impacts of the crisis from one country to another. In this case, it is necessary to enact and apply ethics principles in international companies into their day-to- day praxis and above all influence citizens (consumers) and official state institutions of a host country. In parallel with the still existing danger of crisis, the challenge to behave more ethically in international companies has been more intensive...

Words: 5135 - Pages: 21

Premium Essay

Corporate Sustainable Development

...current Business environment we often come across some facts where corporate enterprises form strategy to meet the second biggest challenge after transforming its business into corporate. The mainstream of the literature on corporate sustainability follows the win–win paradigm, according to which economic, environmental and social sustainability aspects can be achieved simultaneously. Where making profit is one primary objective and challenge for any corporate on the other front dynamism in the business environment lays corporate to plan down certain strategies to sustain in the battle irrespective of the crest and troughs in the business. This paper examines various strategies adopted by the companies to sustain ie- Corporate and social responsibility, stake holders management relations, environment management or it also the cost cutting part to be on the kitty to maintain the balance of revenues. The paper also highlights the manipulation of figures by the companies to be the arena. Introduction Corporate sustainable development means a formulation of Business strategy that puts the company in the drivers seat to prosper growth and profitability by inclusion of basic business environmental issues into the business model. The basic purpose is to generate a maximum increase in company, consumer, and employee value by embracing opportunities and managing risks. The basic attributes of the corporate sustainable development are sustainable development, corporate and social...

Words: 2227 - Pages: 9

Premium Essay

How Corporate Social Responsibility Is defiNed

...Corporate Social Responsibility and Environmental Management Corp. Soc. Responsib. Environ. Mgmt. (in press) Published online in Wiley InterScience (www.interscience.wiley.com) DOI: 10.1002/csr.132 How Corporate Social Responsibility is Defined: an Analysis of 37 Definitions Alexander Dahlsrud* Department of Industrial Economics and Technology Management, Faculty of Social Science and Technology Management, Norwegian University of Science and Technology, Trondheim, Norway ABSTRACT Despite numerous efforts to bring about a clear and unbiased definition of CSR, there is still some confusion as to how CSR should be defined. In this paper five dimensions of CSR are developed through a content analysis of existing CSR definitions. Frequency counts are used to analyse how often these dimensions are invoked. The analysis shows that the existing definitions are to a large degree congruent. Thus it is concluded that the confusion is not so much about how CSR is defined, as about how CSR is socially constructed in a specific context. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment. Received 24 April 2006; revised 31 August 2006; accepted 18 September 2006 Keywords: analysis; corporate social responsibility; definitions; discourse; social construction Introduction HE CORPORATE WORLD IS FACING THE NOTION OF CORPORATE SOCIAL RESPONSIBILITY (CSR) wherever it turns these days. On a wide range of issues corporations are encouraged to behave socially responsibly (Welford...

Words: 6452 - Pages: 26

Premium Essay

The Future of Fashion

...TEACHING MODULE THE FUTURE OF FASHION DECEMBER 2010 This teaching module was independently written by the Aspen Institute Business and Society Program with the generous support of THE FUTURE OF FASHION: SUSTAINABILITY THROUGH THE LENS OF THE FASHION INDUSTRY* By: Jennifer Johnson & Gina Wu Companies across all industries are facing the challenges of business sustainability, debating how best to address these risky issues while also embracing their opportunities for competitive advantage. This Teaching Module uses the context of the fashion industry to discuss topics that are shaping the future of all industries. These topics include sustainable resource management, the challenges and opportunities of global growth, workforce management, and the role of ethical consumption in business. The fashion industry offers a compelling case study for exploring business sustainability issues. In the fashion industry, as in many industries, success requires highly developed sourcing, design, manufacturing, and marketing chains. Increasingly, success also means incorporating sustainability in resource and labor management, as firms realize that long-term corporate survival will depend on new ways of doing business. Climate change, resource challenges, new technologies and dramatic shifts in the global economy are already impacting the industry. The nexus of these concerns allows students to explore sustainability challenges while providing a framework for discussing new business...

Words: 7523 - Pages: 31

Free Essay

Case Analysis

...world’s most rapidly growing countries, getting potential access to over 1.3 billion people and 103 million Internet users. Furthermore, China has been able to break barriers in every market, quickly demanding the attention of foreign investors: “As a result of these [Mao’s successors] reforms, China’s GDP grew tenfold over three decades” (Ibid., 471). Worsfold’s Google in China case study explains: “In the U.S., nearly 70% of the total population is online, whereas in China, fewer than 10% of its 1.3 billion people use the web. With 20, 18, and 34% growth in web users for the years 2005, 2004, and 2003 respectively, the PRC will soon make up the world’s largest block of internet users”. Every company has an obligation to their stakeholders and Google establishing...

Words: 2664 - Pages: 11

Free Essay

Civil Engineering 2025

...ASCE American Society of Civil Engineers THE VISION FOR CIVIL ENGINEERING IN 2025 BASED ON THE SUMMIT ON THE FUTURE OF CIVIL ENGINEERING June 21 – 22, 2006 Prepared by the Task Committee to Plan a Summit on the The Future of the Civil Engineering Profession January 5, 2007 (Final draft prepared by TC) Contents Executive Summary ...................................................... 1 2006: Status, Concerns, and Opportunities in the Civil Engineering Profession ..................................... 3 Issues and Trends ................................................. 3 New Pressures....................................................... 4 Career Appeal........................................................ 5 Future Directions.................................................... 5 Why a Summit? ............................................................. 7 The Vision for Civil Engineering .................................. 9 Vision ..................................................................... 9 Profile of the 2025 Civil Engineer......................... 10 2025: The Civil Engineer’s World............................... 13 A Sustainable World ............................................ 14 Research and Development................................. 16 Managing Risk ..................................................... 18 Master Innovators and Integrators ....................... 19 Reform in the Preparation of Engineers ............... 20 What Next?.....................

Words: 7710 - Pages: 31