The International Society of Business, Economics, and Ethics Book Series

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1 The International Society of Business, Economics, and Ethics Book Series Volume 5 Series editors Daryl Koehn Ethics and Business Law, University of St. Thomas, Opus College of Business, St. Paul, Minnesota, USA Laura Spence School of Management, Royal Holloway University of London, Egham, Surrey, United Kingdom

2 The International Society for Business, Economics and Ethics book series publishes books on ethics in the international arena of business. Included are comparative studies and has a focus on research on the responsibilities, values and behavior of business people and organizations as they interact with stakeholders including shareholders, employees, suppliers, customers, competitors, communities and governments. This book series draws from the research of the worldwide membership of The International Society for Business, Economics and Ethics -a global association for the study of social and ethical aspects of business and the economyand beyond with the goal of presenting truly international research and scholarship. The primary objective of the International Society for Business, Economics book series is to promote business ethics by giving a voice to scholars from around the world and reaching a similarly global audience. It is our particular aim to ensure the inclusion of perspectives from developing and emerging economies. Since the series Incorporates a macroeconomic perspective, the editors are especially interested in considering new works dealing with globalization of business, business in developing economies, environmental questions, ethics and global communication, global economic growth, and sustainable development. The series embraces research and scholarship on all organizational forms relevant to business including but not limited to multinational corporations, small business, social enterprises, nongovernmental organizations or public sector. More information about this series at

3 Maria Cecilia Coutinho de Arruda Boleslaw Rok Editors Understanding Ethics and Responsibilities in a Globalizing World

4 Editors Maria Cecilia Coutinho de Arruda ALENE, São Paulo, Brazil Hetica Business Training, São Paulo, Brazil Boleslaw Rok Business Ethics Centre Kozminski University Warsaw, Poland ISSN ISSN (electronic) The International Society of Business, Economics, and Ethics Book Series ISBN ISBN (ebook) DOI / Library of Congress Control Number: Springer Cham Heidelberg New York Dordrecht London Springer International Publishing Switzerland 2016 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper Springer International Publishing AG Switzerland is part of Springer Science+Business Media ( )

5 Contents Part I Introduction 1 Ethics and Responsibilities... 3 Maria Cecilia Coutinho de Arruda and Boleslaw Rok 2 Corporate Leadership in Times of Public Distrust Klaus M. Leisinger Part II Responsibility as a Key Concept of Ethics 3 Shareholder Primacy as an Impediment to Corporate Social Responsibility David Rönnegard and N. Craig Smith 4 From Free-Floating Responsibility to Self-Responsibility CSR as Theoretical and Practical Context for Ethics Imre Ungvári Zrínyi 5 Erosion of Sovereign Control: Deliberation, We-Reasoning, and the Legitimacy of Norms and Standards in a Globalized World Juljan Krause and Markus Scholz Part III Healthy, Fair and Sustainable Business Cultures 6 Morality as an Index of Mental Health of the Organization: Building a Model of Healthy Leadership Julija Bulatova 7 Do You Believe in Life After Work? A Noninstrumental Defense of Work Life Balance Karolina Lewestam and Paulina Bednarz-Łuczewska v

6 vi Contents 8 Sustaining the Sustainable: Creating the Culture of Sustainability Maria Cecilia Coutinho de Arruda and Marilena Lino de Almeida Lavorato 9 Towards Re-theorizing the Firm in Pursuit of Well-Being and Social Justice Ganesh Nathan Part IV Business Engaging in Politics 10 CSR s New Challenge: Corporate Political Advocacy Dorothea Baur and Florian Wettstein 11 Countries in Transition: Ethics Is Not the Key in Their Success. Analysis of Chilean Experience Jorge Mendoza and Orlando de la Vega 12 Economic Inequality as an Obstacle to Development Ulyana Shtybel and Elena Artemenko Part V Business Ethics Education 13 Social Responsibility as a Matter of Justice: A Proposal to Expand Business Ethics Education Francis J. Schweigert 14 Sustainability, Justice, and Virtue Howard Harris 15 Moral Reasoning and Learning Outcomes in Undergraduate Business Education: A Cross-Cultural Exploration Jessica McManus Warnell, Maria Cecilia Coutinho de Arruda, and Cheng Wang 16 Efforts and Achievements of Two Decades of Business Ethics Teaching and Research in Africa with a Special Reference to Kenya Christine W. Gichure 17 Conclusion: The Future for Responsibility Boleslaw Rok and Maria Cecilia Coutinho de Arruda

7 Contributors Elena Artemenko Faculty of Economics, Department of Banking and Insurance Business, Ivan Franko National University of Lviv, Lviv, Ukraine Dorothea Baur Institute for Business Ethics, University of St. Gallen, St. Gallen, Switzerland Paulina Bednarz-Łuczewska Kozminski University, Warsaw, Poland Julija Bulatova Riga International School of Economics and Business Administration, Riga, Latvia Marilena Lino de Almeida Lavorato Instituto Mais, São Paulo, Brazil Maria Cecilia Coutinho de Arruda ALENE, São Paulo, Brazil Hetica Business Training, São Paulo, Brazil Orlando de la Vega Escuela de Ingeniería Comercial, Facultad de Ciencias Económicas y Administrativas, Pontificia Universidad Católica de Valparaíso, Valparaíso, Chile Christine W. Gichure School of Humanities and Social Sciences, Strathmore University, Nairobi, Kenya Howard Harris School of Management, UniSA Business School, Adelaide, SA, Australia Juljan Krause Affiliate at the Center for Corporate Governance and Business Ethics, University of Applied Science, Vienna, Austria Klaus M. Leisinger President, Foundation Global Values Alliance, Basel, Switzerland Karolina Lewestam Boston University, Boston, MA, USA Jorge Mendoza Instituto de Ciencias Religiosas, Facultad Eclesiática de Teológía, Pontificia Universidad Católica de Valparaíso, Valparaíso, Chile vii

8 viii Contributors Ganesh Nathan Institute of Management, University of Applied Sciences and Arts Northwestern Switzerland (FHNW), Windisch, Switzerland Business School Lausanne (BSL), Chavannes, Switzerland David Rönnegard INSEAD Social Innovation Centre, Fontainebleu, France Boleslaw Rok Business Ethics Centre, Kozminski University, Warsaw, Poland Markus Scholz Endowed Chair of Corporate Governance & Business Ethics, University of Applied Science, Vienna, Austria Francis J. Schweigert College of Management, Metropolitan State University, Minneapolis, MN, USA Ulyana Shtybel Faculty of Economics, Department of Banking and Insurance Business, Ivan Franko National University of Lviv, Lviv, Ukraine N. Craig Smith Ethics and Social Responsibility, INSEAD, Fontainebleu, France Imre Ungvári Zrínyi Department of Philosophy in Hungarian, Babeş-Bolyai University Cluj, Cluj-Napoca, Romania Cheng Wang Postdoctoral Research Associate, Department of Sociology, Cornell University, Ithaca, NY, USA Jessica McManus Warnell Department of Management, Mendoza College of Business, University of Notre Dame, Notre Dame, IN, USA Florian Wettstein Institute for Business Ethics, University of St. Gallen, St. Gallen, Switzerland

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