Research Ethics and Commercial Drug Development: When Integrity Threatens Profitability

Étude de cas / Case study

Impact of Quality on Ethics and Social Responsibility in Marketing, in Industries in Kerala in the present Indian Scenario

The paper ‘Impact of Quality on Ethics and Social Responsibility in Marketing in Industries in Kerala in the present Indian scenario’ highlights the observations, based on a descriptive research carried out in five leading industries in Kerala, in the private and public sector. Ethics and social responsibilities, practiced in these industries, are reflected in the results of the survey conducted on specific queries like awareness of products/services provided by them, total understanding of the requirements of the customer, open discussion on technical matters, accountability of employees to the society and social needs, consumer ethics vis a vis business ethics etc. Team working goes a long way, in building relations, which in turn, results in a progressive and effective marketing strategy. This assumes paramount importance, considering the severe competition we are facing in the light of liberalization, privatization and globalization, which encompasses the globe. The prediction of India becoming a lead nation, along with USA, China and Japan, in this decade, can get fructified only if we follow a very high standards of ethics and social responsibility, in all domains including marketing. Organizations like TRW.Rane, Sundaram Fasteners, TVS Motors, in Chennai are a few among others in India, who have achieved the highest distinction in quality viz Deming Prize, and these demonstrate their commitment to quality, society and humanity at large. Cost effectiveness, without jeopardizing quality has become the need of the hour and MRTP has become history. This trait is being brought out through the survey and the results speak for themselves. Unethical practices like switch and bait, not only brings shame to the organization, and country but also results in the company getting wiped out from the market. Adherence to standards like ISO 14000 helps to maintain the minimum level of social responsibility and environmental friendliness. Like quality audit, safety audit etc, social audit is being insisted in all progressive countries to ensure that the organization comply with the minimum statutory requirements. The paper also touches upon Corporate Social Responsibility practiced in the industries and this becomes crystal clear through their commitment to improve the community. Green Marketing lays a lot of importance on the three Rs of environmentalism viz Reduce, Reuse and Recycle. The objective of any business is to achieve optimal profit and this is possible only by reducing the cost as well as waste. In this context, management tools like brainstorming, suggestion schemes, benchmarking etc becomes helpful. These characteristics are brought out through the analysis of survey results. The conclusions drawn throw a lot of information on the desirable practices with respect to Ethics and Social Responsibility in Marketing

Corporate Social Responsibility und Stakeholder

Shareholdern, Mitarbeitern und Konsumenten kommt im Rahmen der Corporate Social Responsibility (CSR) eine zentrale Rolle zu. Nicht zuletzt aufgrund ihrer ökonomischen Bedeutung für Unternehmen und ihrer Einflussmöglichkeiten auf diese werden sie zu den mithin wichtigsten Stakeholdern gezählt. Innerhalb der unternehmensethischen Diskussion setzt sich dabei verstärkt die Sichtweise eines Business Case von CSR durch, demzufolge CSR generell und insbesondere bei diesen drei Stakeholdern an Bedeutung gewinnt und ein entsprechendes Engagement daher neben finanziellen auch zahlreiche immaterielle Vorteile bedingt. Betrachtet man die Studienlage allerdings genauer, bleibt zu fragen, inwieweit das gezeichnete positive Bild und die ihm zugrunde liegenden Annahmen tatsächlich zutreffend sind. Denn weder liegen ausreichend Studien vor, die sich mit den Prozessen auf der Mikro-Ebene befassen, noch spiegelt sich die postulierte und von Konsumenten in Befragungen geäußerte Kauf- und Zahlungsbereitschaft im Marktanteil ethischer Produkte und Dienstleistungen wider, was im Allgemeinen dann allerdings wiederum durch ein „attitude-behaviour-gap“ erklärt wird. Mit Blick auf ein Socially Responsible Investment (SRI) stellt sich die Sach- oder Marktlage zwar besser dar, doch wird gemeinhin stillschweigend und unhinterfragt davon ausgegangen, dass ein ethisches Investment per se ethisch sei. Die Arbeit setzt an diesen Punkten an und geht nach einer Klärung zentraler Begriffe der Frage nach der Relevanz und Wahrnehmung von CSR bei den drei Stakeholdern anhand eigener qualitativer Fallstudien empirisch nach; d. h. konkret, mittels einer Einzelfallstudie unter der Mitarbeiterschaft eines mittelständischen Unternehmens, einer Konsumentenbefragung zum Kleidungskauf und einer Einzelfallstudie zur Überprüfung der Praxis ethischen Investments anhand des als besonders „ethisch“ ausgewiesenen Ethik-Fonds von Schellhammer & Schattera. Im Endergebnis zeigt sich, dass berechtigte Zweifel an den vielfach postulierten positiven Entwicklungen und Effekten und damit auch der Sichtweise eines Business Case von CSR angebracht sind. Denn selbst der gewählte ethische Fonds kann nicht alle an ein derartiges Investment zu stellenden Kriterien zweifelsfrei erfüllen. In eine ähnlich kritische Richtung weisen auch die Befunde der Konsumentenstudie. Durch die Verwendung eines anderen Untersuchungsansatzes zeigt sich, dass für den Großteil der befragten Konsumenten ethische Aspekte in Wirklichkeit keine oder wenn, eine allenfalls sehr untergeordnete Rolle spielen. Entsprechend handelt es sich möglicherweise beim „attitude-behaviour-gap“ vielfach nur um eine Pseudo-Inkonsistenz, die, wie aufgezeigt wird, theoretisch und methodisch bedingt ist. Im Vergleich dazu fallen die Befunde der Mitarbeiterstudie zwar sehr positiv aus, verweisen jedoch auch auf einen allgemein vernachlässigten zentralen Aspekt des CSR-Engagements. So können die empirisch belegten positiven Effekte zwar bestätigt werden, doch zeigt sich, dass diese wesentlich an die Bedingung der Authentizität von CSR geknüpft zu sein scheinen. Die sich hieraus wie aus den anderen Studien ergebenden Konsequenzen und Fragen werden im Rahmen einer Zusammenfassung abschließend diskutiert.

Stakeholder-defined corporate responsibility for a pre-credit-crunch financial service company: lessons for how good reputations are won and lost

This paper presents a study that identifies a stakeholder-defined concept of Corporate Responsibility (CR) in the context of a UK financial service organisation in the immediate pre-credit crunch era. From qualitative analysis of interviews and focus groups with employees and customers, we identify, in a wide-ranging stakeholder-defined concept of CR, six themes that together imply two necessary conditions for a firm to be regarded as responsible— both corporate actions and character must be consonant with CR. This provides both empirical support for a notable, recent theoretical contribution by Godfrey (in Acad Manag Rev 30:777–798, 2005) and novel lessons for reputation management practice.

‘Cursed’ communities? Corporate Social Responsibility (CSR), company towns and the mining industry in Namibia

This article examines Corporate Social Responsibility (CSR) and mining community development, sustainability and viability. These issues are considered focussing on current and former company-owned mining towns in Namibia. Historically company towns have been a feature of mining activity in Namibia. However, the fate of such towns upon mine closure has been and remains controversial. Declining former mining communities and even ghost mining towns can be found across the country. This article draws upon research undertaken in Namibia and considers these issues with reference to three case study communities. This article examines the complexities which surround decision-making about these communities, and the challenges faced in efforts to encourage their sustainability after mining. In this article, mine company engagements through CSR with the development, sustainability and viability of such communities are also critically discussed. The role, responsibilities, and actions of the state in relation to these communities are furthermore reflected upon. Finally, ways forward for these communities are considered.

Corporate institutions in a weakened welfare state: a Rawlsian perspective

This paper re-examines the import of Rawls’s theory of justice for private sector institutions in the face of the decline of the welfare state. The argument is based on a Rawlsian conception of justice as the establishment of a basic structure of society that guarantees a fair distribution of primary goods. We propose that the decline of the welfare state witnessed in Western countries over the past forty years prompts a reassessment of the boundaries of the basic structure in order to include additional corporate institutions. A discussion centered on the primary good of self-respect, but extensible to power and prerogatives as well as income and wealth, examines how the legislator should intervene in private sector institutions to counterbalance any unfairness that results from the decline of the welfare state.

Global financial crisis: implications for Chinese corporate governance

This paper analyses the role of corporate governance failures and weaknesses in the global financial crisis with reference to the evolution of post-crisis corporate governance arrangements in China. The current crisis presents China with an opportunity to analyse its governance problems, reflect on its weaknesses and implement a strategy to address areas which need attention. This paper opens with a description of China’s exposure to the current global financial crisis and continues to critically evaluate the effectiveness of a free market system on corporate governance. Bratton (2002) maintains that incentive structures that motivate the self-regulatory systems generate less powerful checks against abuse than scholars and practitioners have believed. The paper highlights the need for corporate regulatory bodies and policy makers to revise and re-develop financial services sector regulations. Finally, the paper discusses the need of ethics in organizations - an issue that is beyond legislation. In an increasingly interconnected global economy, it is imperative to increase our understanding of what constitutes an effective corporate governance system. The paper contributes to the corporate governance body of literature within the Chinese context by providing insights into the contributing factors to corporate governance failure that led to the global financial crisis. It also provides policy recommendations for China’s policy makers to seriously consider. The results suggest a need for the re-examination of corporate governance adequacy and the institutionalisation of business ethics.

Ethics education in management accounting studies: evidence from business schools in Ghana

Management accounting in recent times, and perhaps rightly so, has begun to gain recognition as a profession separate and complimentary to financial accounting. Evidence exists to suggest that management accountants are exposed to a unique set of ethical challenges within industry and that a significant high number of management accountants have engaged in unethical practices in performing their jobs. For the accounting profession as a whole, the growing number of corporate failures has created a credibility crisis that requires a deliberate intervention to mitigate. If this is not addressed sooner, the accounting profession stands the risk of losing relevance. Scholarship on ethical issues in accounting practice have either focused mostly on financial accounting or have sought to combine ethical issues for financial and management accounting. Various arguments have been made in recent times of the need to treat ethical issues in behavioural studies as context-specific and therefore separate ethical considerations in management accounting from financial accounting. This study adopts an approach, following various literature, that effective ethics education can help practitioners deal appropriately with ethical issues at the work place, and explores students’ and faculty members’perceptions on current practices in ethics education. As expected, faculty and students differ significantly on a wide range of issues on ethics education in management accounting. Based on the insights provided from this study, appropriate recommendations have been made to improve ethics education in management accounting.

Management attitudes to corporate governance issues : evidence from Sri Lanka

This study investigates the attitudes of senior managers in Sri Lankan firms to governance issues using a countrywide cross-sectional survey. Respondents from 64 public firms provide information on manager's attitudes to internal control procedures: (1) producing misleading financial reports, (2) providing faulty investment advice, (3) permitting insider-trading, and (4) providing inaccurate advertising. We establish if these attitudes vary with 5 firm-specific factors: industry group, international exposure of firms, size, whether the firm was listed or not, and whether the firm had a written code of ethics. Employing ordinal logistic regression techniques, the results demonstrate significant variation by respondents within different types of firms. Specifically there was little variation to these issues when respondents were classified by industry, with most variation when classified by international involvement. Respondents from firms with significant international exposures were strongly opposed to most practices, while respondents from firms with written codes of ethics were strongly opposed to the production of misleading reports and insider-trading. Interestingly respondents from listed firms were most opposed to insider-trading, while smaller firms were more opposed to misleading advertising than respondents from larger firms. The results have important implications for the implementation of corporate governance practice.

Information warfare and ethics

This paper examines the ethics of the practice of information warfare at both the national and corporate levels. Initially examining the present and past actions of individual hackers, it moves to the more organised, future military and economic warfare scenarios. It examines the lack of legal or policy initiatives in this area.