Business Ethics

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By C M Fisher; Alan Lovell

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Extra info for Business ethics and values : individual, corporate and international perspectives

Sample text

He found a number of statistical correlations but, because of the small sample size, only one was statistically significant. The social performance of companies was measured by a sixteen-factor index prepared by EIRIS (see p. 11). The correlations were: • That social performance got worse as financial performance improved. • But if social performance was compared with financial performance three years earlier the association was positive. • That older companies did better on social performance than younger ones.

Multiple, reflecting an array of stakeholder perspectives, although the actual mechanics remain problematic. 1. Type A. A stakeholder perspective is advocated in corporate decision making, with key interest groups physically represented on decision-making boards. 2. Type B. Individual managers weigh the full ethical and social considerations of their actions and decisions. Stakeholder groups would not necessarily be present at decisions. 1 Theories of the firm and their ethical implications No clear evidence that ethical considerations feature more strongly in corporate decision making, although the lack of an exclusive shareholder perspective might offer greater potential for a broader societal perspective.

QXD 5/10/05 3:08 pm Page 24 24 Business ethics matters: what is it and why does it matter? The corporatist approach The corporatist approach does not deny the primacy of competitive market forces, but an exclusive equity shareholder perspective is eschewed in favour of a broader-based set of perspectives in some of the organisation’s decision making. These additional perspectives are those of employee representatives, debt financiers, and in some cases state interests. This broadening of the decisionmaking base is claimed, and appears to offer, a longer-term view to certain aspects of corporate decision making.

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