Business  Ethics  Tathagat  Varma  

Session  8/12:  03-­‐Sep-­‐09  

Ethical  Decision  Making  and  Corporate  Governance  

•  Too  oDen,  it  is  assumed  that  individuals  in  organizaHons  make  ethical  decisions  in  the  same  way  they  make  ethical  decisions  at  home,  in  their  family  or  personal  lives.  Within  the  context  of  an  organizaHonal  work  group,  however,  few  individuals  have  the  freedom  to  decide  ethical  issues  independently  of  organizaHonal  pressures.    

Ethical  Issue  Intensity  •  The  first  step  in  ethical  decision  making  is  to  recognize  than  an  ethical  issue  requires  an  individual  or  work  group  to  choose  among  several  acHons  that  various  stakeholders  inside  or  outside  of  the  firm  will  ulHmately  evaluate  as  right  or  wrong.  The  intensity  of  an  ethical  issue  related  to  it  perceived  importance  to  the  decision  maker.    

•  Ethical  issue  intensity,  then,  can  be  defined  as  the  relevance  or  importance  of  an  ethical  issue  in  the  eyes  of  the  individual,  work  group,  and/or  organizaHon.    

•  It  is  personal  and  temporal  in  character  to  accommodate  values,  beliefs,  needs,  percepHons,  the  special  characterisHcs  of  the  situaHon,  and  the  personal  pressures  prevailing  at  a  parHcular  place  and  Hme.  

Ethical…  •  Ethical  Issue  Intensity  reflects  the  ethical  sensiHvity  of  the  individual  or  work  group  

that  faces  the  ethical  decision-­‐making  process.  Research  suggest  that  individuals  are  subject  to  six  “spheres  of  influence”  when  confronted  with  ethical  choices  and  that  the  level  of  importance  of  each  of  these  influences  will  vary  depending  on  how  important  the  decision  maker  perceives  the  issue  to  be:  –  Workplace  –  Family  –  Religion  –  Legal  system  

–  Community  –  Profession  

•  AddiHonally,  the  individual’s  sense  of  the  situaHon’s  moral  intensity  increases  the  individual’s  percepHveness  regarding  ethical  problems,  which  in  turn  reduce  his  or  her  intenHon  to  act  unethically.  

•  The  perceived  importance  of  an  ethical  issue  has  been  found  to  have  a  strong  impact  on  both  employees  ethical  judgment  and  their  behavioral  intenHon.  The  more  likely  individuals  are  to  perceive  an  ethical  issue  as  important,  the  less  likely  they  are  to  engage  in  quesHonable  or  unethical  behavior.  Therefore,  ethical  issue  intensity  should  be  considered  a  key  factor  in  the  ethical  decision  process.  

OrganizaHonal  Factors  •  Research  has  established  that  in  the  workplace,  the  organizaHon’s  values  oDen  have  greater  influence  on  decisions  than  do  a  person’s  own  values.  

•  Although  people  outside  the  organizaHon,  such  a  family  members  and  friends,  also  influence  decision  makers,  an  organizaHon’s  culture  and  structure  operate  through  the  relaHonships  of  its  members  to  influence  their  ethical  decisions.  

Corporate  Culture  •  Corporate  Culture  includes  the  behavioral  pa_erns,  

concepts,  values,  ceremonies,  and  rituals  that  take  place  in  the  organizaHon.  It  gives  the  members  of  the  organizaHon  meaning  as  well  as  the  internal  rules  of  behavior.  When  these  values,  beliefs,  customs,  rules  and  ceremonies  are  accepted,  shared  and  circulated  throughout  the  organizaHon,  they  represent  its  culture.  

•  An  important  component  of  corporate,  or  organizaHonal,  culture  is  the  company’s  ethical  climate.  Whereas  corporate  culture  involves  values  and  rules  that  prescribe  a  wide  range  of  behavior  for  organizaHon  members,  the  ethical  climate  reflects  whether  the  firm  also  has  an  ethical  conscience.  Thus,  the  ethical  climate  of  a  corporaHon’s  culture  can  be  thought  of  as  the  character  or  decision  process  employees  use  to  determine  whether  their  responses  to  ethical  issues  are  right  or  wrong.  

Corporate…  •  The  more  ethical  employees  perceive  an  organizaHon’s  culture  to  be,  the  less  likely  they  are  to  make  unethical  decisions.  

•  If  a  firm’s  culture  encourages  or  rewards  unethical  behavior,  its  employees  may  well  act  unethically.  

•  If  the  culture  dictates  hiring  people  who  have  specific,  similar  values,  and  if  those  values  are  perceived  as  unethical  by  society,  society  will  view  the  organizaHon  and  its  members  as  unethical.  

•  An  organizaHon’s  failure  to  monitor  or  manage  its  culture  may  foster  quesHonable  behavior.  

Framework  for  Org.  Culture  

Concern  for  People    

High   Caring   IntegraHve  Low   ApatheHc   ExacHng  

Low   High  Concern  for  Performance  

Framework…  •  ApatheHc  Culture  shows  minimal  concern  for  either  people  or  

performance.  In  this  culture,  individuals  focus  on  their  own  self-­‐interests.  ApatheHc  tendencies  can  occur  in  almost  any  organizaHon.  

•  The  Caring  culture  exhibits  high  concern  for  people  but  minimal  concern  for  performance  issues.  From  an  ethical  standpoint,  the  caring  culture  seems  to  be  very  appealing.  

•  In  contrast,  the  exacHng  culture  shows  li_le  concern  for  people  but  a  high  concern  for  performance;  it  focuses  on  the  interests  of  the  organizaHon.    

•  The  integraHve  culture  combines  high  concern  for  people  and  for  performance.  An  organizaHon  becomes  integraHve  when  superiors  recognize  that  employees  are  far  more  than  interchangeable  parts  –  that  employees  have  an  ineffable  quality  that  helps  the  firm  meet  its  performance    criteria.  

•  Companies  can  classify  their  corporate  culture  and  idenHfy  its  specific  values,  norms,  beliefs  and  customs  by  conducHng  a  cultural  audit,  which  is  an  assessment  of  the  organizaion’s  values.  

OrganizaHonal  Culture  Ethics  Audit  •  Has  the  founder  or  top  management  of  the  company  leD  an  ethical  

legacy  to  the  organizaHon?  •  Does  the  company  have  methods  for  detecHng  ethical  concerns  within  

the  organizaHon  and  outside  it?  •  Is  there  a  shared  values  system  and  understanding  of  what  consHtutes  

appropriate  behavior  within  the  organizaHon?  •  Are  stories  and  myths  embedded  in  daily  conversaHons  about  

appropriate  ethical  conduct  when  confronHng  ethical  situaHons?  •  Are  codes  of  ethics  or  ethical  policies  communicated  to  employees?  •  Are  there  ethical  rules  or  procedures  in  training  manuals  or  other  

company  publicaHons  •  Are  there  penalHes,  that  are  publicly  discussed,  for  ethical  

transgression?  •  Etc…..  

Significant  Others  •  Those  who  have  influence  in  a  work  group,  including  peers,  managers,  coworkers,  and  subordinates,  are  referred  to  as  significant  others.  

•  Numerous  studies  conducted  over  the  years  confirm  that  significant  other  within  an  organizaHon  have  more  impact  on  a  worker’s  decisions  on  a  daily  basis  then  any  other  factor  

Opportunity  •  Opportunity  describes  the  condiHons  in  an  organizaHon  that  limit  or  permit  ethical  or  unethical  behavior.  Opportunity  results  from  condiHons  that  either  provide  rewards,  whether  internal  or  external,  or  fail  to  erect  barriers  against  unethical  behavior.  

•  Opportunity  relates  to  individual’s  immediate  job  context  –  where  they  work,  whom  they  work  with,  and  the  nature  of  the  work.  

•  The  opportunity  employees  have  for  unethical  behavior  in  an  organizaHon  can  be  eliminated  through  formal  codes,  policies,  and  rules  that  are  adequately  enforced  by  management.  

Corporate  Governance  •  To  remove  the  opportunity  for  employees  to  make  unethical  decisions,  most  companies  have  developed  formal  systems  of  accountability,  oversight  and  control  –  knows  as  Corporate  Governance.    – Accountability  refers  to  how  closely  workplace  decisions  are  aligned  with  a  firm’s  stated  strategic  direcHon  and  its  compliance  with  ethical  and  legal  consideraHons.  

– Oversight  provides  a  system  of  checks  and  balances  that  limit  employees’  and  managers’  opportuniHes  to  deviate  from  policies  and  strategies  and  that  prevent  unethical  and  illegal  acHviHes.  

–  Control  is  the  process  of  audiHng  and  improving  organizaHonal  decisions  and  acHons.    

Elements  of  Corp  Gov  •  Board  of  Directors  – For  public  corporaHons,  BoD  hold  the  ulHmate  responsibility  for  their  firms’  success  or  failure,  as  well  as  for  ethics  of  their  acHons.  

– Board  members  have  fiduciary  duty,  meaning  they  have  assumed  a  posiHon  of  trust  and  confidence  that  entails  certain  responsibiliHes,  including  acHng  in  the  best  interests  of  those  they  serve.  

•  ExecuHve  CompensaHon  

Ethical  Rankings  •  Covalence  publishes  annual  and  quarterly  ethical  rankings  

covering  541  companies  within  18  sectors.  >  Universe.  •  Covalence  Ethical  Ranking  Q2  2009  has  been  published  on  

16  July  2009.    •  Leaders  Across  Sectors:  

1.  IBM  2.  Intel  Corp  3.  HSBC  Holdings  4.  Marks  &  Spencer  5.  Unilever  6.  Xerox  7.  Cisco  Systems  8.  General  Electric  9.  Alcoa  Inc  10.  Procter  &  Gamble  

Sector  Leaders  •  Automobiles  &  Parts:  Johnson  Controls  •  Banks:  HSBC  Holdings  •  Basic  Resources:  Alcoa  Inc  •  Chemicals:  DuPont  •  ConstrucHon  &  Materials:  Holcim  •  Financial  Services:  Goldman  Sachs  •  Food  &  Beverages:  Unilever  •  Health  Care:  GlaxoSmithKline  •  Industrial  Goods  &  Services:  General  Electric  •  Insurance:  Swiss  Re  •  Media:  Walt  Disney  Co  •  Oil  &  Gas:  StatoilHydro  •  Personal  &  Household  Goods:  Procter  &  Gamble  •  Retail:  Marks  &  Spencer  •  Technology:  IBM  •  TelecommunicaHon:  Vodafone  •  Travel  &  Leisure:  Starbucks  •  UHliHes:  PG&E  Corp  

IntroducHon  •  The  methodology  used  by  Covalence  has  been  developed  

since  2001.  The  outcomes  –  curves  measuring  the  ethical  reputaHon  of  mulHnaHonals,  EthicalQuote  –  have  been  published  since  the  beginning  of  2004  on  Covalence  website  as  well  as  through  various  publicaHons.  

•  Covalence  started  by  considering  the  challenges  that  come  when  assessing  the  ethical  performance  of  mulHnaHonal  enterprises  (MNEs)  in  the  modern  world:  –  Limited  means  of  direct  observaHon    –  Restricted  access  to  internal  data    –  Social  complexity,  cultural  diversity,  ethical  pluralism,  

scienHfic  uncertainty    •  To  overcome  these  difficulHes,  Covalence  innovates  by  

using  an  informaHon  system  for  quoHng  the  reputaHon  of  companies  on  ethical  issues  instead  of  a  quesHonnaire-­‐based  raHng  scheme.  Using  media  monitoring  and  the  Internet  allow  to  capture  numerous,  diverse  informaHon  pieces  that  can  be  confronted  in  order  to  give  a  detailed,  evoluHonary  picture  of  how  companies  are  perceived.  

Concept  •  EthicalQuote  is  an  informaHon  system  developed  by  Covalence.  This  online  database  measures  the  ethical  reputaHon  of  mulHnaHonal  companies.  Considering  the  challenges,  a  choice  was  made  to  consider  the  company  as  a  black  box,  focus  on  informaHon  inflows  and  ouulows  and  then  construct  an  image  of  how  companies  are  perceived,  following  systemic  theories.  

•  Covalence  gathers  informaHon  from  numerous  and  various  sources  without  normaHve  a  priori,  recognizing  that  the  modern  world  is  characterized  by  social  complexity,  cultural  diversity,  ethical  pluralism  and  scienHfic  uncertainty.  

Concept…  •  This  methodology  is  built  around  the  noHon  of  exchange  of  

informaHon,  rooted  in  the  classical  economic  model  of  offer  and  demand.  Each  document  is  coded  regarding  its  orientaHon  towards  the  company’s  behavior  in  ethical  terms:  “ethical  demand”  (informaHon  on  what  the  company  should  do  for  society)  or  “ethical  offer”  (informaHon  on  what  the  company  does  for  society).  Ethical  demand  refers  to  informaHon  formulated  by  actors  in  public-­‐interest  organizaHons  concerning  the  social  or  environmental  consequences  of  a  mulHnaHonal’s  acHviHes  (e.g.  environmental  impact  of  producHon).  Ethical  offer  refers  to  corporate  acHons  taken  by  mulHnaHonals  to  deliver  on  such  demands  (e.g.  eco-­‐innovaHve  product).  

•  Various  documents  coded  as  “ethical  demand”  or  “ethical  offer”  are  accounted  and  confronted,  “offers”  receiving  +  1  and  “demands”  –  1.  The  EthicalQuote  of  companies  emerges  as  a  curve  given  by  the  cumulaHve  addiHon  of  coded  documents:  when  the  curve  is  going  up,  the  ethical  reputaHon  is  improving,  and  vice  versa.  

Criteria  •  Covalence  has  conceived  criteria  for  their  capacity  

to  capture  various  informaHon  on  the  contribuHon  of  mulHnaHonal  enterprises  to  human  development  globally,  with  parHcular  a_enHon  paid  to  the  needs  and  realiHes  of  developing  countries.  

•  The  45  criteria  have  the  following  characterisHcs  :  –  General  legal  framework  consisHng  of  six  major  

internaHonal  treaHes    –  Based  on  widely  accepted  principles,  not  on  specific  

ethical  choices,  to  cope  with  diversity  and  pluralism    –  Capacity  to  cover  changing  aspects  of  companies’  

operaHons    –  Capacity  to  cover  diverse  acHons  led  by  stakeholders  

and  media  coverage    

Criteria…  •  The  45  criteria  are  classified  into  4  groups:  1.  Working  condiHons;  2.  

Impact  of  producHon;  3.  Impact  of  product;  4.  InsHtuHonal  impact.  •  Legal  references  of  criteria  are:  the  Universal  DeclaraHon  of  Human  Rights,  

the  OECD  Guidelines  for  MulHnaHonal  Enterprises,  the  ILO  DeclaraHon  of  Principles  concerning  MNEs  and  Social  Policy,  the  Rio  DeclaraHon  on  Environment  and  Development,  the  agreements  of  the  World  Summit  for  Social  Development,  the  UN  Global  Compact,  and  the  UN  Millenium  Goals.  

•  The  criteria  should  be  seen  as  open  boxes  allowing  to  store  and  organize  informaHon  on  a  barometer,  case-­‐by-­‐case  basis.  They  do  not  carry  ethical  judgments  in  themselves.  

•  Covalence  criteria  are  not  sector-­‐specific.  Rather,  they  are  designed  to  cover  any  mulHnaHonal  company  and  to  allow  cross-­‐sector  comparisons.  For  each  criteria,  relevant  documents  found  are  accounted  and  coded  regarding  their  orientaHon,  which  gives  them  a  posiHve  or  negaHve  sign.  The  ladder  is  open.  For  one  parHcular  company  /  industry,  certain  criteria  will  be  “filled”  with  many  documents,  accounHng  many  points,  while  other  will  remain  empty.  For  another  company  /  industry,  different  criteria  will  be  highly  solicited.  This  reflects  reality:  certain  issues  are  widely  covered  by  acHvists,  enterprises  and  the  media  while  others  remain  in  the  shadow.  

Detailed  Criteria  List    •  Working  CondiHons  •  Impact  of  ProducHon  

•  Impact  of  Product  

•  InsHtuHonal  Impact  

Working  CondiHons  1.   Labor  Standards:  Labour  standards  covers  labour  issues  taking  place  within  the  

company.  It  is  inspired  by  the  ILO  DeclaraHon  on  Fundamental  Principles  and  Rights  at  Work,  dealing  with  freedom  of  associaHon  and  the  effecHve  recogniHon  of  the  right  to  collecHve  bargaining;  the  eliminaHon  of  all  forms  of  forced  or  compulsory  labour;  the  effecHve  aboliHon  of  child  labour;  and  the  eliminaHon  of  discriminaHon  in  respect  of  employment  and  occupaHon.    

2.   Wages:  Wages  looks  at  how  the  company  manages  the  level  of  wages  paid  to  employees  and  execuHves.    

3.   Social  Benefits:  Social  Benefits  looks  at  measures  taken  internally  or  externally  by  the  company  regarding  social  benefits  and  advantages  for  employees  and  families.  

4.   Training  and  InserFon:  Training  and  inserHon  looks  at  how  the  company  takes  measures  regarding  training  employees,  conHnued  formaHon,  stabilisaHon  of  jobs  and  social  plans  in  case  of  lay-­‐offs.      

5.   Women:  Women  describes  working  condiHons  for  women  and  the  coordinaHon  of  professional  and  private  life.      

6.   External  Working  CondiFons:  External  working  condiHons,  covers  working  condiHons  outside  the  analyzed  company.  It  pertains  to  the  working  condiHons  of  its  suppliers,  subcontracters  and  other  professional  partners,  and  the  measures  the  company  has  taken  to  improve  upon  them.    

Impact  of  ProducHon  7.   Sales:  Sales  describes  where  a  company  sells  its  products  /  services  and  how  

these  sales  benefit  people  and  the  environment.  8.   Links  with  Official  Development  Aid:  Link  with  official  development  aid  highlights  

when  a  company  collaborates  with,  or  benefits  from,  a  governmental  development  aid  program.  

9.   Export  Risk  Guarantee:  Export  risk  guarantee  describes  a  situaHon  when  a  government  covers  the  risks  taken  by  a  naHonal  company  invesHng  abroad  

10.   InternaFonal  Presence:  InternaHonal  presence  describes  the  impact  of  the  company's  foreign  direct  investments  and  related  policies.  More  broadly,  it  deals  with  how  the  internaHonal  presence  of  a  company  is  perceived.  When  details  are  lacking,  criteria  10  is  used  to  express  a  general  feeling,  posiHve  or  negaHve,  about  a  company's  presence  in  foreign  countries.      

11.   Joint  Ventures:  Joint  ventures  receives  informaHon  about  mulHnaHonal  companies  invesHng  together  with  local  investors  to  create  a  new  company  and  the  economic,  social  and  environmental  of  such  joint  ventures.  

12.   Economic  Impact:  Economic  impact  of  producHon  deals  with  how  a  company's  investments  influence  local  industries  in  terms  of  job  creaHon,  access  to  markets,  compeHHon,  economic  growth.    

13.   Social  Impact:  Social  impact  receives  informaHon  on  how  the  company's  operaHons  influence  the  implementaHon  of  local  laws  relaHng  to  social  areas  c.f.  social  protecHon,  public  health,  employee  relaHons  or  fiscal  relaHons.  

Impact  of  ProducHon…  14.   Job  Stability:  Job  stability  looks  at  the  turn-­‐over  of  the  company's  

employees  n  the  different  countries  /  regions  where  it  is  acHve.    15.   Local  Employees:  Local  employees  looks  at  the  number  and  the  

proporHon  of  local  employees  in  the  company  in  the  different  countries  /  regions  where  it  is  acHve.  

16.   Local  ExecuFves:  Local  execuHves  looks  at  the  number  and  the  proporHon  of  local  execuHves  in  the  company  in  the  different  countries  /  regions  where  it  is  acHve.    

17.   Women  Employed:  Women  employed  looks  at  the  proporHon  of  women  among  the  company's  employees  and  among  the  company's  execuHves.    

18.   Downsizing:  Downsizing  is  used  to  code  informaHon  that  relates  to  factory  closures,  the  transfer  of  producHon  to  another  country,  and  measures  taken  to  minimize  negaHve  social  effects  of  such  decisions.  

19.   Infrastructures:  Infrastructures  describes  when  a  company  is  (co-­‐)  financing  public  infrastructures  in  a  country  where  it  is  invesHng.    

20.   Local  Sourcing:  Local  sourcing  highlights  when  a  company  is  buying  /  sourcing  directly  to  a  local  producer,  farmer.      

21.   Stability  of  Prices:  Stability  of  prices  describes  how  a  company  manages  prices  of  raw  materials  on  internaHonal  commodity  markets  (not  direct  sourcing).    

Impact  of  ProducHon…  22.   Technical  Assistance:  Technical  assistance  highlights  when  a  company  

transmits  skills,  knowledge,  technologies  to  another  company  /  partner.  23.   Intellectual  Property  Rights:  Intellectual  property  rights  describes  how  a  

company  manages  its  own  intellectual  propriety  rights  vis-­‐à-­‐vis  other  companies  and  countries.  Has  the  company  taken  measures  that  promote  human  and  economic  development,  the  protecHon  of  biodiversity,  respect  of  tradiHonal  knowledge  and  local  natural  resources,  for  example  through  research  &  development,  voluntary  licenses,  agreements,  cooperaHon  with  research  insHtutes  and  local  communiHes?    

24.   Local  InnovaFon:  Local  innovaHon  highlights  when  a  company  helps  another  company  to  develop  a  new  product.    

25.   Fiscal  ContribuFons:  Fiscal  contribuHons  looks  at  the  following  quesHons:  Does  the  company  pay  taxes  ?  Where  ?  How  much?  What  can  the  company  say  about  its  fiscal  relaHons  policy  ?  How  can  the  company  assess  the  impact  of  its  fiscal  contribuHons  to  local  economic  and  social  development  ?    

26.   Environmental  Impact:  Environmental  impact  of  producHon  is  used  to  categorize  informaHon  that  relates  to  how  a  company's  producHon  acHviHes  are  impacHng  the  environment,  nature  and  biodiversity.    

Impact  of  Product  27.   Product  Human  Risk:  Product  human  risk  describes  when  a  product  or  

service  is  perceived  to  be  risky  to  man  or  nature  and  when  a  company  reduces  such  risks.  

28.   Product  Social  UFlity:  Product  Social  UHlity  serves  to  describe  when  a  company  offers,  or  is  being  asked  to  provide,  products  or  services  that  respond  to  needs  related  to  human,  social  and  economic  development.  

29.   Product  RelaFon  to  Culture:  Product  relaHon  to  culture  describes  the  relaHon  between  a  product  and  a  culture:  how  a  product  valuates  culture  and  tradiHons?  

30.   Socially  InnovaFve  Product:  Socially  innovaHve  product  reflect  communicaHons  regarding  the  research  &  development  (R&D)  of  products  or  services  that  present  a  parHcular  interest  for  responding  to  human  needs  and  contribuHng  to  economic  and  social  development.  

31.   Product  Environmental  Risk:  Product  Environmental  Risk  reflects  communicaHons  found  about  a  product  or  service  described  to  be  risky  to  nature,  the  environment  and  biodiversity  by  itself  or  by  its  implicaHons.  It  also  reflects  measures  taken  by  companies  to  minimize  such  risks.    

InsHtuHonal  Impact  37.   Social  Sponsorship:  Social  sponsorship  pertains  to  informaHon  about  a  

company's  donaHon  of  money  or  goods  to  an  external  organizaHon  in  the  pursuit  of  social  or  environmental  objecHves.    

38.   AnF-­‐CorrupFon  Policy:  AnH-­‐corrupHon  policy  covers  material  presenHng  how  companies  are  acHng,  or  failing  to  act,  against  corrupHon.  

39.   Humanitarian  Policy:  Humanitarian  policy  describes  how  a  company  behaves  in  and  about  emergency  situaHons  such  as  wars,  civil  wars  and  natural  disasters.    

40.   Human  Rights  Policy:  Human  Rights  Policy  is  used  to  code  informaHon  that  pertains  to  how  a  company  deals,  or  should  deal,  with  the  respect  for,  and  promoHon  of  human  rights,  internally  and  externally.  In  addiHon,  it  is  used  to  code  informaHon  that  relates  to  how  the  company  deals,  or  should  deal,  with  governments  and  their  individual  human  rights  policy.  

41.   RelaFons  with  United  NaFons:  United  NaHons  Policy  describes  how  a  company  discusses  and  collaborates  with  programmes  or  agencies  of  the  United  NaHons,  or  UN-­‐supported  projects,  such  as  the  Global  Compact,  UNEP,  UNDP,  the  Global  ReporHng  IniHaHve,  etc.    

InsHtuHonal  Impact…  42.   Boyco^  Policy:  Boyco_  Policy  describes  how  a  company  

deals  with  calls  to  boyco_  certain  countries  and  governments  because  of  the  human  rights  situaHon.      

43.   Social  Stability:  Social  stability  describes  when  a  company  helps,  or  fails  to  help,  promote  local  social  stability  in  a  community  where  it  is  acHve.  A  company  may  do  this  by  offering  training,  subsidies,  or  by  engaging  in  some  other  means  of  direct  involvement  in  ma_ers  related  to  educaHon,  health,  the  environment,  security.      

44.   Support  to  PoliFcal  Actors:  Support  to  PoliHcians  compiles  informaHon  describing  relaHons  of  a  company  with  poliHcal  actors,  such  as  financial  support.    

45.   Lobbying  PracFces:  Lobbying  PracHces  covers  material  describing  lobbying  acHviHes  of  companies:  acHviHes  aiming  at  influencing  decisions  taken  by  governments  at  the  naHonal  and  internaHonal  levels.    

Ethical  Business  Cultures  

•  Dimensions  of  Ethical  Business  Cultures:  Comparing  Data  from  13  countries  of  Europe,  Asia,  and  the  Americas  

Means  and  Standard  DeviaHons  

Homogeneous  subsets  for  select  survey  items  

InternaHonal  Context  •  Return  of  Ethics  h_p://www.forbes.com/2009/07/21/business-­‐culture-­‐corporate-­‐ciHzenship-­‐leadership-­‐ethics.html?partner=whiteglove_google