Posts Tagged ‘ethics’
Does Having an Ethical Brand Matter? The Influence of Consumer Perceived Ethicality on Trust, Affect and Loyalty
Social Research Digest – February 2013
This study analyzes the nexus between perceived ethicality at a corporate level, and brand trust, brand affect and brand loyalty at a product level. The study uses a theoretical framework with hypothesized relationships is developed and tested through structural equations modeling and specifically looks at 4,027 spanish consumers.
- The results suggest that there is a positive relationship between perceived ethicality of a brand and both brand trust and brand effect.
- There has been a recent rise in ethical consumerism in tandem with increasing number of corporate brands projecting a socially responsible and ethical image.
- The main research question is whether having a corporate brand that is perceived to be ethical have any influence on outcome variables of interest for its product brands?
- Results from the study demonstrate that: (1) There a positive relationship between perceived ethicality of a brand and both brand trust and effect (2) Brand trust and brand affect both show a positive relation with brand loyalty.
J. J. Singh, O. Iglesias, J. M. Batista-Foguet
Journal of Business Ethics, 111 (4), 541-549.
1. The Sustainability Champion’s Guidebook: How to Transform your Company (Bob Willard)
This book is a guide primarily for someone who wants to start the sustainability transformation in a company that he or she owns or someone who wants to review the existing processes in such a company. This is also a great book for people who are open to moving towards new business models, governance systems as well as products and services. Review by Tolga Yavuz. Read more
2. The Why of Work: How Great Leaders Build Abundant Organisations That Win (Dave Ulrich and Wendy Ulrich)
This book is about both the why and the how of meaning at work. The why refers to the human search for meaning that finds its way into our organisations, a search that motivates and defines us. The how gets us into the practicalities of how leaders facilitate that search personally and among their employees. It provides specific tools and principles to help leaders put meaning to work. Review by Adil El Menyari. Read more
Author: Dave Ulrich and Wendy Ulrich
This book is about both the why and the how of meaning at work.
The why refers to the human search for meaning that finds its way into our organisations, a search that motivates and defines us. The how gets us into the practicalities of how leaders facilitate that search personally and among their employees. It provides specific tools and principles to help leaders put meaning to work.
Divided into 10 chapters, this book covers a variety of topics including the economic value of creating an abundant work culture based on meaning. It provides a tool for the creation of an “abundant organisation”. It highlights seven questions to help leaders reach the abundance objective–
1 – What am I known for?
2 – Where am I going?
3 – Whom do I travel with?
4 – How do I build a positive work environment?
5 – What challenges interest me?
6 – How do I respond to disposability and change?
7 – What delights me?
The authors devote a separate chapter to each of these seven questions, focusing on real-world situations.
The book targets “leaders”. Ulrich defines leaders as meaning-makers – they set the direction that others aspire to, they help others participate in doing good work and good works, they communicate ideas and invest in practices that shape how people think, act and feel.
As one of the classics of CSR in business is employees’ engagement, Ulrich book designs a map to transform employees into stakeholders, so that they in turn become the organisation’s CSR advocates when interfacing with other stakeholders.
Finally, it is important to mention that the creation of meaning applies to countries as well as companies. One example shows how sustainability drives happiness to nations. Bhutan is a small country located in South Asia. Although most countries use the GNP index to measure national prosperity, this country established a Gross National Happiness (GNH) index to measure its progress. The GNH index assesses the progress of sustainable development, preservation of cultural values, conservation of the natural environment, and establishment of good governance. Even with a low GNP, Bhutan citizens are considered among the happiest in the world. For this small country, true happiness and well-being are reflected in sustainable education, health, and environment.
Adil El Menyari, CSR International
Author: Peter Koslowski
Did the attitude of the banking industry towards ethical issues play a starring role in the financial crash of 2008? In this book, the recently-deceased expert on ethics and finance Peter Koslowski provides a thorough overview of the ethical requirements relevant to all banking business areas… most of which have been far from fulfilled in recent years.
In a great introduction, the author outlines the main arguments used by financial industry managers in order to justify the alleged “irrelevance of ethics” in modern finance: creation of shareholder value and maximum return on investment are priority and non-negotiable, as well as a strict adherence to neoliberal economic orthodoxy (which involves an unconditional belief in full rationality of market participants, perfect information and infallibility of the market). Considering these approaches to be utterly unsustainable and irresponsible, professor Koslowski devotes the rest of the book to dismantling them one by one, with an authority informed by his deep knowledge of the particularities and nuances of the banking business.
The first part shows the conceptual alternatives that underpin Finance Ethics: Ethical Economy, Economic Ethics and Business Ethics. The second and most extensive part details a number of ethical and economic implications of the markets for credit, capital and derivatives which, together with bad corporate governance, had a decisive influence on the rise of the financial crisis of 2008, as explained in the third part.
The book can be read at different levels. On the one hand, anyone interested in the subject can easily make the most of it, thanks to the plain language used, the many examples and the references to cases we all know through the media. However, some of the sections on capital and derivatives markets do provide arguments of significant technical depth, more aimed at financial professionals, who can find economic, legal, academic… and even semantic, philosophical and theological arguments.
In short, The Ethics of Banking: Conclusions from the Financial Crisis is essential reading for those who think that the future sustainability of the banking industry relies on a rigorous application of the ethical filter to all its business areas.
Cristina Carrillo, CSR International
Governance Research Digest – November 2012
A new briefing from the IBE considers some of the ethical issues around the giving and accepting of corporate gifts and hospitality and outlines good practice. The report outlines what organisations and their employees need to bear in mind when giving or accepting gifts and hospitality.
- The acceptance of gifts, services and hospitality can leave an organisation vulnerable to accusations of unfairness, partiality or deceit, or even unlawful conduct.
- Commercial relationships may be subject to bias and an organisation’s reputation for ‘doing business ethically’ will be put at risk.
- Companies which operate outside their home market need to be particularly aware of cross- cultural differences in what is considered appropriate in gift giving and accepting.
- Although in some markets gifts and hospitality are a prevalent and fundamental part of business transactions, the extraterritorial reach of the UK Bribery Act (2010) has made the giving and accepting of gifts and hospitality a real concern for businesses and their employees around the world.
- Companies help prevent their employees giving or accepting inappropriate gifts/hospitality by providing guidance, usually in the company code of ethics (or equivalent document).
- The code will outline the company’s position on gifts and hospitality and set out good practice for employees. Codes of ethics will often reference a gifts and hospitality policy which expands on the guidance in the code.
- Corporate gifts and hospitality policies typically set out:
- clear definitions of what constitutes ‘gift giving’ or ‘hospitality’;
- what type of gift/hospitality can and cannot be given or accepted;
- the financial value of gifts/hospitality that can be given or accepted without disclosure;
- how and where gifts/hospitality should be recorded when given or accepted i.e. on a gifts and hospitality register;
- how employees can refuse gifts or hospitality without causing offence;
- how staff can seek further guidance;
- standards for the giving and accepting of gifts and hospitality in the markets the company operates in and how the company responds to cultural differences in these markets.
Governance Research Digest – September 2012
An IBE Briefing explores the link between business ethics and human rights with a brief overview of the current business and human rights landscape. It also looks at how businesses seek to respect human rights and avoid human rights violations in their business operations and relationships.
- Attention to human rights has been shown to have a positive impact on business performance through improved stakeholder relations, positive corporate reputation and brand image, and employee motivation and retention.
- ‘Doing business ethically’ necessarily involves respecting human rights in the course of business operations.
- A company that is wishing to be considered as ethical will need to be mindful of human rights within the responsibilities of business and consistent with local law.
- Although respecting human rights can be considered integral to a business ethics agenda, IBE research (2012) found that only half of FTSE100 companies (52%) explicitly consider human rights in their code of ethics in some way.
- The positive and negative duties to protect human rights are still firmly with national governments.
- However, trends such as globalisation and the increasing presence of multinational corporations, pressures from NGOs, and reputation risk management, has meant there are increasing expectations of business in respecting human rights.
- The Briefing explores how companies are responding to this and the mechanisms they are using to express commitment and avoid human rights violations.
Institute of Business Ethics