Article

Being an Ethical Business in a Corrupt Environment

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Abstract

In environments with widespread corruption, most business leaders hesitate to take a firm stand against corruption. However, research conducted in Egypt, Zimbabwe, and India shows that organizations should view building a strong ethical reputation in such environments as an opportunity to differentiate themselves. To do this, companies can follow four steps. First, frame their ethical behavior in a way that resonates with as wide a network of stakeholders as possible. Second, understand that there are gradations of corruption. Third, acquire a fine-grained understanding of their stakeholders. Fourth, strategically build partnerships with high-status individuals and organizations, a tactic referred to as “reputation borrowing.”

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... E de forma não ética (cf. Banerjee, 2008;Brueckner, 2013;Cabral-Cardoso, 2002;Donaldson, 1996;Healy & Niven, 2016;Mukherjee, 2016;Taylor, 2017;Velamuri et al., 2017), portanto, em ações onde a postura e integridade dos gestores de topo envolvidos adquire maior proeminência, podem, por exemplo, ocorrer ainda situações em que as EMN, estabelecendo uma corrente comercial multinacional fechada, falseiam a lei base da economia de mercado, da oferta e da procura, e/ou baixam os preços na origem para a seguir os fazer, em proveito próprio, subir no destino. Como facilmente decorre do acima, a RSE está intrinsecamente ligada à ética, à sustentabilidade e ao bem-estar da sociedade ao nível global e local e de cada pessoa individualmente (Jacquinet, 2020;Silva et al., 2021). ...
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... The Challenges lies from the belief that corrupt practices are "necessary evils" if businesses want to obtain a faster process of permits and less interference from the government officials (Velamuri et. al., 2017). The law enforcement for those who conduct corrupt practices is weak in many corrupt countries. Many corrupt officials and businesspersons will go unpunished. In such circumstances, businesses perceive that their sustainability will be threatened if they do not follow any corrupt practices. ...
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Ethics has been the focus of philosophers’ attention since antiquity and, regardless of how it was defined over the centuries, it has been intimately linked to morals and morality. Certainly, companies also have, in addition to economic responsibility, a responsibility to society, but there is no unanimously accepted standpoint on the importance of each type of responsibility, as stakeholders generally regard things through the bias of their own interests. The article presents, in the first part, a series of conceptual delimitations regarding the economic development and the observance of the principles of business ethics, and in the second part, a comparative analysis is made of a few indicators that capture the level of economic development, social responsibility of companies and business ethics, in various states of the world.
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Article
Purpose The authors report a field study examining the perceptions of Kenyan host-country stakeholders toward activities of Chinese businesses in their country, and the consequences of this on the legitimacy that they bestow on pertinent entities. Design/methodology/approach Interviews and observations across an eight-week period of field research revealed generally negative attitudes toward Chinese businesses, with issues pertinent to moral legitimacy prominent, notably, perceptions of corrupt practices, environmental neglect and profit expatriation. Findings The authors also find evidence that these negative attitudes spilled over to contaminate Kenyans’ perceptions of their own government, which respondents associated closely with the activities of Chinese entities. Originality/value The authors extend understanding of legitimacy theory and the implications of foreign business activity by highlighting that businesses may be mistaken to believe that their international business activities are politically neutral, and while host governments may believe that the economic benefits arising from attracting foreign business activity can buttress their legitimacy, the perceived activities of these businesses, in the absence of supporting institutional frameworks, may render this counterproductive.
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