Menu
Home
Log in / Register
 
Home arrow Management arrow Strategic Management in the 21st Century. Corporate Strategy

SUMMARY

This chapter has explored the emergence of business ethics from the exercise of individual beliefs and values in the marketplace. It examined ethics from the perspective of the degree of respect an individual has for the natural right of others to own private property. It explained the prevalence of corporate scandals in the context of the separation of the ownership of the corporation from its control, and the divergence of the interests of the shareholders from those of managers. It also explored why this separation gives rise to corporate aggression. The chapter also introduced virtuous decision making as a special case of ethical decision making, a virtuous decision or action being not only ethical but also courageous. Enlightened wisdom facilitates decision-making processes. Knowledge is thus a prerequisite for both ethical and virtuous decision making. When faced with ethical dilemmas, there is often no time for research. Knowledge must thus be acquired through the ingrained conditioning of the individual through education, experience, training, and development.

NOTES

1 . Hulsmann, Guido. "The production of business ethics." Journal of Markets and Morality 11 no. 2 (Fall 2008): 275-299.

2 . Ryan, Cheyney C. "Yours, mine, and ours: Property rights and individual liberty." Ethics 87 no. 2 (January 1977): 126-141.

3 . Hulsmann (2008).

4 . Ibid.

5 . Ibid.

6 . Ibid.

7. Hawtrey, Kim, and Stuart Dullard. "Corporate virtue and the joint-stock company." Journal of Markets and Morality 12 no. 1 (Spring 2009): 19-33.

8. Novak, Michael. Toward a Theology of the Corporation (Studies in Religion, Philosophy, and the Public Policy), Revised edition. Washington, DC: American Enterprise Institute Press (1991).

9. BW Online. "After Enron, bracing for a backlash" (February 4, 2002). businessweek.com/magazine/content/02_05/b3768007.htm. Accessed on November 2, 2011.

10. Harris Interactive, Online. "Oil, pharmaceutical, health insurance, and tobacco top the list of industries that people think should be more regulated," December 2, 2010. harrisinteractive.com/NewsRoom/HarrisPolls/ tabid/447/mid/1508/articleId/648/ctl/ReadCustom%20Default/Default.aspx.

11. Wulfson, Myrna. "Rules of the game: Do corporate codes of ethics work?" Review of Business 20 (1998). questia.com/googleScholar. qst?docId=5001501133. Accessed on November 2, 2011.

12 . Dhir, Krishna S. "Book Review: Stephen V. Arbogast, Resisting Corporate Corruption: Lessons in Practical Ethics from the Enron Wreckage (Salem, MA: M&M Scrivener Press, 2007). 264 pages. ISBN 0976404141." Journal of Business Ethics 85 no. 1 (2009): 103-106.

13. Bentson, George J. "The quality of corporate financial statements and their auditors before and after Enron." Policy Analysis 497 (November 6, 2003): 12. webcitation.org/5tZ00qIbE. Accessed on January 27, 2012.

14. Pellegrini, Frank. "Person of the week: 'Enron whistleblower' Sherron Watkins." TIME (Friday, January 18, 2002). time.com/time/nation/ar-ticle/0,8599,194927,00.html. Accessed on January 21, 2012.

15. Bentson (2003), p. 12.

16 . Thomas, Cathy Booth. "Called to account." TIME (June 18, 2002). webcitation.org/5tZ56HIkr. Accessed on November 2, 2011.

17. BW Online, February 4, 2002.

18. Beresford, Dennis, Nicholas deB. Katzenbach, and C. B. Rogers, Jr. "Report of Investigation by the Special Investigative Committee of the Board of Directors of Worldcom, Inc." Securities and Exchange Commission (March 31, 2003). sec.gov/Archives/edgar/data/723527/000093176303001862/dex991.htm. Accessed on November 2, 2011.

19. Ackman, Dan. "Bernie Ebbers guilty." Forbes (March 3, 2005). forbes.com/2005/03/15/cx_da_0315ebbersguilty.htm. Accessed on November 4, 2011.

20. Wyatt, Edward. "Obama urges tougher laws on financial fraud." New York Times (January 24, 2012). nytimes.com/2012/01/25/business/ obama-urges-tougher-laws-on-financial-fraud.html. Accessed on January 25, 2012.

21 . ABB Website. abb.com/cawp/abbzh252/e1d71cc7979eaf7f-c1256ae700474df0.aspx?v=7182A&leftdb=global/ABBZH/ABBZH252.NSF&e=u s&leftmi=76465d8d53273699c12571920030dbef.

22 . BW Online. "Outraged in Europe over ABB" (March 4, 2002). businessweek.com/magazine/content/02_09/b3772140.htm. Accessed on November 2, 2011.

23. "ABB Ltd and two subsidiaries resolve Foreign Corrupt Practices Act investigation and will pay $19 million in criminal penalties." Federal Bureau of Investigation, Houston Division, US Department of Justice, Office of Public Affairs (September 29, 2010). fbi.gov/houston/press-releases/2010/ ho092910.htm. Accessed on November 4, 2011.

24. "Satyam fudged FDs, has 40,000 employees: Public prosecutor." The Times of India (January 22, 2009). timesofindia.indiatimes.com/India_Busi-ness/Satyam_fudged_FDs_has_40000_employees_Public_prosecutor/article-show/4015830.cms. Accessed on November 2, 2011.

25. Mamudi, Sam. "Lehman folds with record $613 billion debt." MarketWatch, New York (September 15, 2008). marketwatch.com/story/lehman-folds-with-record-613-billion-debt?siteid=rss. Accessed on November 3, 2011.

26. "Trade in goods with European Union." US Department of Commerce, Bureau of Census, Foreign Trade (October 13, 2011). census.gov/for eign-trade/balance/c0003.html. Accessed on November 4, 2011.

27. Krugman, Paul. "The great wealth transfer." Rolling Stone (December 22, 2006). informationclearinghouse.info/article15923.htm. Accessed on November 2, 2011.

28. Neroth, Pelle. "Saab offloads blame on BAE in South African corruption scandal." E&T, Engineering and Technology Magazine (June 30, 2011). eandt. theiet.org/blog/blogpost.cfm?threadid=41768&catid=368.

29 . Ekman, Ivar. "Sweden's squeaky-clean image sullied by scandals." New York Times (May 11, 2007). nytimes.com/2007/05/11/business/ worldbusiness/11iht-corrupt.4.5672628.html. Accessed on November 2, 2011.

30. Hawtrey and Dullard (2009).

31. Braudel, Fernand. The Wheels of Commerce: Civilization and Capitalism, 15th-18th Century, vol. 2. (Translated by Sian Reynold). Berkeley: University of California Press (1992).

32. Hawtrey and Dullard (2009).

33. Angell, Joseph Kinnicut, and Samuel Ames. Treatise of the Law of Private Corporations Aggregate. London: Hillard, Gray, Little, and Wilkins (1832).

34 . Pollock, Frederick, and Frederic W. Maitland. The History of English Law, Second Edition. London: Collins (1968).

35. Dickson, P.G.M. The Financial Revolution in England: A Study in the Development of Public Credit, 1688-1756. London: Macmillan (1967); Hawtrey and Dullard (2009).

36. Hawtrey and Dullard (2009).

37. Dhir, Krishna S. "The Corporate Executive's Dharma: Insights from the Indian epic Mahabharata." In Oliver F. Williams, ed. Business, Religion, and Spirituality: A New Synthesis, 122-138. Notre Dame, IN: University of Notre Dame Press (2003).

38. Ibid.

39. Chandler, Alfred D. Strategy and Structure: Chapters in the History of the American Industrial Enterprise. Cambridge, MA: Massachusetts Institute of Technology Press (1969).

40. Hawtrey and Dullard (2009).

41. Dhir (2003).

42. Jensen, M. C., and W. H. Meckling. "Theory of the firm: Managerial behavior, agency costs and ownership structure." Journal of Financial Economics 3 no. 4 (1976): 305-360.

43. Hoskisson, Robert E., Michael A. Hitt, R. Duane Ireland, and Jeffrey S. Harrison. Competing for Advantage, Second Edition. Mason, OH: South-Western (2008).

44. AACSB International. Ethics Education in Business Schools: Report of the Ethics Education Task Force to AACSB International's Board of Directors. Tampa, FL: AACSB International (2004).

45. Dhir, Krishna S. "Corporate communication through nonviolent rhetoric: Environmental, agency and methodological prerequisites." Corporate Communications: An International Journal 11 no. 3 (2006): 249-266.

46. Ibid.

47 . Beaucamp, Tom L., and James F. Childress. Principles of Biomedical Ethics, Fourth Edition. New York: Oxford University Press (1994).

48 . Rindova, V. P., M. Becerra, and I. Contardo. "Enacting competitive wars: Competitive activity, language games, and market consequences." Academy of Management Review 29 no. 4 (2004): 670-686.

49. Murphy, S. M. "The rhetoric of nonviolent conflict resolution: Toward a philosophy of peace as a social construct." PhD dissertation, University of South Carolina, Dissertation Abstracts International, September, 57 no. 3 (1996): 1140A.

50. Davis, S. and C. Meyer. Blur: The Speed of Change in the Connected Economy, New York: Warner Books (1999).

51. Saffir, Jacob A. "Collapsible Tubes." United States Patent Office, Patent No. 2,830,730. (April 15, 1958).

52 . Dhir (2006).

53 . Rubin, J. Z., D. Pruitt, and S. Kim. Social Conflict: Escalation, Stalemate, and Settlement. New York: McGraw-Hill (1994): 89-90.

54. Dhir, Krishna S. and Denis Vinen. "Managing corporate respectability: Concept, issues, and policy formulation." Corporate Communications: An International Journal 10 no. 1 (2005): 5-23.

55. Coulson-Thomas, C. "Strategic vision or strategic con? Rhetoric or reality?" Long Range Planning 25 no. 1 (February 1992): 81-89; J. C. Gimenez. "New media and conflicting realities in multinational corporate communication: A case study." International Review of Applied Linguistics in Language Teaching 40 no. 4 (2002): 323-343; M. Weidenbaum. "Business ethics: Everybody's favorite oxymoron." Executive Speeches 17 (April/May 2003): 15.

56. Vendel0, M. T. "Narrating corporate reputation: Becoming legitimate through storytelling." International Studies of Management & Organization 28 no. 3 (1998): 120-137. 57 . Dhir (2006).

58. Merton, T. "Gandhi and the one-eyed giant," preface to M. K. Gandhi, Gandhi on Nonviolence. New York: New Directions (1965): 7.

59. Manne, H. "Mergers and market for corporate control." Journal of Political Economy 73 (1965): 110-120.

60. Easterbrook, F., and D. Fishel. The Economic Structure of Corporate Law. Cambridge, MA: Harvard University Press (1991).

61. Werner, W. "Corporation law in search of its future." Columbia Law Review

81 (1981): 1611.

62. Becht, M., P. Bolton, and A. Roell. "Corporate governance and control." In G. Constantinides, M. Harris, and R. Slutz (Eds.), Handbook of the Economics of Finance. Amsterdam: Elsevier (2003).

63. Hawtrey and Dullard (2009). p. 25.

64 . Ibid.

65 . Pellegrini (2002).

66 . Novak (1981).

67. Williams, Oliver F., and John W. Houck (eds.). A Virtuous Life in Business. Lanham, MD: Rowman and Littlefield Publishers (1992).

68 . Arbogast, Stephen. Resisting Corporate Corruption: Lessons in Practical Ethics from the Enron Wreckage. Salem, MA: M&M Scrivener Press (2008).

69. Pincoffs, E. "Quandries and virtues, quandary ethics: 1971." Mind 80 no. 32 (1984): 552-571.

70. Dhir(2009).

71. Ibid.

72. Ibid.

73 . Ibid.

74 . Ibid.

75 . Ibid.

76. Arbogast (2008).

77 . Dhir (2009).

78 . Ibid.

79 . Ibid.

80 . Ibid.

81. Epstein, Edwin M. "Business ethics and corporate social policy: Reflections on an intellectual journey, 1964-1996, and beyond." Business and Society 37 no. 1 (1998): 7-40.

82. Dhir, Krishna S. "Emerging paradigms of health care decision making behavior." In Evan M. Berman (ed.), Encyclopedia of Public Administration and Public Policy, Second Edition. Boca Raton, FL: Taylor & Francis (2008).

83. Williams and Houck (1992); Houck, John W., and Oliver F. Williams (eds.). Is the Good Corporation Dead? Lanham, MD: Rowman and Littlefield Publishers (1996).

84 . Houck and Williams (1996).

85 . Cuff, W. T. "The experience of courage and the characteristics of courageous people." PhD dissertation, University of Minnesota. Dissertation Abstracts International 54 (1993): 5408.

86 . Dhir (2008).

87 . Ibid.

88. Shainbaum, B., S. Fitzgerald, and M. Palko. Hope and Heroes: Portraits of Integrity. Toronto: London Street Press (2001).

89 . Dhir (2008).

90 . Ibid.

91. Lucas, Nance and V. Scott Koerwer, "Featured interview with Sherron Watkins, former Vice President for Corporate Development of Enron." Journal of Leadership & Organizational Studies 11 no. 1 (2004): 38-47; see also Pellegrini (2002).

92. Smith, N. Craig, Robert J. Thomas, and John A. Quelch. "A strategic approach to managing product recalls." Harvard Business Review 74 no. 5 (1996): 102-112.

93 . Wulfson, M. "Rules of the game: Do corporate codes of ethics work?" Review of Business 20 no. 1 (1998): 12-17.

 
Found a mistake? Please highlight the word and press Shift + Enter  
< Prev   CONTENTS
 
Subjects
Accounting
Business & Finance
Communication
Computer Science
Economics
Education
Engineering
Environment
Geography
Health
History
Language & Literature
Law
Management
Marketing
Mathematics
Political science
Philosophy
Psychology
Religion
Sociology
Travel