Antonino Vaccaro

Corporate dynamic transparency: the new ICT-driven ethics?

The term “corporate transparency” is frequently used in scholarly discussions of business ethics and corporate social responsibility (CSR); however, it remains a volatile and imprecise term, often defined incompletely as “information disclosure” accomplished through standardized reporting. Based on the results of empirical studies of organizational behaviors, this paper identifies a new set of managerial practices based on the use of information and communication technologies (ICT) and particularly Internet-based tools. These practices are resulting in what can be termed “dynamic transparency.” ICT allows for an informational environment characterized by two-way exchange between corporations and their stakeholders, which fosters a more collaborative marketplace. It is proposed that such dynamic information sharing, conducted by means of ICT, drives organizations to display greater openness and accountability, and more transparent operations, which benefit both the corporations and their constituents. One of the most important outcomes that will accrue to consumers and other individuals is the “right to know,” especially about corporate strategies and activities that might directly affect their quality of life. This paper demonstrates that dynamic transparency is more desirable and more effective than the more common “static transparency” where firms’ information disclosure is one-way, usually in response to government regulation. We present three ethical arguments to justify the implementation by business firms of dynamic transparency and demonstrate that their doing so is related to CSR and to augment and complement stakeholder engagement and dialogue. The paper concludes with a summary of the possible limits to and the problems involved in the implementation of dynamic transparency for corporations, and suggests some strategies to counter them.

ICT and an NGO: Difficulties in attempting to be extremely transparent

This paper analyzes the opportunities offered by information and communication technologies (ICTs) and the related ethical issues, within the transparency practices of nongovernmental organizations (NGOs). Based upon a one-year study of a European NGO, the Italian Association of Blind People, it presents compelling empirical evidence concerning the main ethical, social and economic challenges that NGOs face in the development of more transparent relationships with the public and the related role of ICTs, in particular, the organization’s website. This study shows that, although the attempt to be completely transparent has great ethical value, ICT-enabled information disclosure is limited by privacy and security concerns and by pressure from financial supporters and benefactors and potential NGO competitors who vie for grants and donations. The paper provides some implications and suggestions for managers of NGOs and policy makers.

Virtual Design, Problem Framing, and Innovation: An Empirical Study in the Automotive Industry

This paper studies how problem framing by research and development groups, in particular the extent of problem decomposition, impacts knowledge replication processes conducted through the use of virtual simulation tools (VSTs). It presents the results of a comparative study of two research and development groups working on the design of hybrid propulsion systems. The research contributes to the literature on strategy and innovation in four ways. First, we identify three organizational and strategic factors affecting the problem framing decision. Second, we analyse the impact of problem framing on the use of VSTs and the related effect on knowledge replication processes. Third, we show the emergence of a new VST-driven knowledge replication process, i.e. functional replication. Fourth, we explain how VST-driven knowledge replication processes can attenuate the dangers related to the adoption of modular design strategies and address the replication vs. imitation dilemma.

Privacy, Security, and Transparency: ICT-Related Ethical Perspectives and Contrasts in Contemporary Firms

This paper analyzes the ethical perspectives associated with the introduction and use of information and communication technologies in contemporary firms. It presents a three-dimensional ethical model that introduces the transparency concern, and its related impact on the digital divide question, as the new ethical perspective of contemporary business organizations.

Firm Information Transparency: Ethical Questions in the Information Age

The wide diffusion of information and communication technologies (ICT) over the last few decades has modified the way in which individuals and institutions interact and conduct social and business activities. We analyze the importance of a firm’s information transparency, defined as the degree of completeness of information, regarding their own business activities, provided by each company to the market, and the related role of ICT. First, we present a brief historical perspective of information transparency of business organizations. Then, we analyze the actual role and possibilities offered by ICT to contemporary firms and to society. We develop a model that integrates the ethical and economical/financial forces affecting information transparency applying it to the case study of a famous multinational company. Finally, useful insights for scholars and practitioners are presented.

Transparency in business and society: introduction to the special issue

The last decade has witnessed an increasing use—and sometimes abuse—of the term ‘‘transparency’’ in very different contexts such as business, political affairs and education. It has rapidly become a key consideration in the question of whether or not organizational decision making is good decision making. Likewise, the concept of transparency has become an indispensable ingredient in social accountability and is considered necessary for preserving and guaranteeing ethical and fair processes that are carried out within the private, public and non-profit sectors. The centrality and importance of transparency was recently acknowledged, for example, by the new President of the US, Barack Obama, who published an important memorandum on the White House’s website titled ‘‘Transparency and Open Government.’’ This document says in part: ‘‘...my Administration is committed to creating an unprecedented level of openness in Government. We will work together to ensure the public trust and establish a system of transparency, public participation, and collaboration. Openness will strengthen our democracy and promote efficiency and effectiveness in Government...’’ (available online at: http://www.whitehouse.gov/the_press_office/Transparency andOpenGovernment/). At the same time, arguments on behalf of transparency in business are proliferating. In popular business books like The Naked Corporation, in newspaper or magazine articles and in blogs around the Internet as well as in academic journals, one can find the idea of transparency being promoted as the road that businesses need to traverse if they are to become consumer friendly and successful. Even the business practitioner literature itself has recently been enhanced with articles and books that offer advice on how to implement transparency in human resource management and in corporate strategy. All of this activity involving the incorporation of transparency might be well summarized in the motto ‘‘Be transparent! and then you are a good citizen’’ (Capurro 2005). But, what does organizational and corporate transparency really mean? Recent scholarly research suggests that the term corporate transparency is actually volatile and imprecise (Williams 2005), and, in several cases it is associated merely with standardized reporting (see e.g., Vaccaro and Madsen 2009). However, this particular conceptualization of transparency as a function of reporting is very limited in terms of current social understanding and societal expectations. It misses the mark in providing an accurate picture of the role and the scope of what transparency actual means in business and organizational practice. This special issue analyzes the issue of corporate and organizational transparency and introduces a new definition of this concept that is dynamic and interactive. It is a collection of select papers originally presented in Lisbon, November 2007, during the ‘‘Information and Communication Technologies, Transparency and Social Responsibility Conference’’ organized by the Center for Ethics, Business and Economics (CEBE) at the School of Business and Economics of the Catholic University of Portugal and Carnegie Mellon University. The idea underlying the conference—and consequently this special issue—was to create a locus of discussion where scholars and practitioners of two different disciplines, A. Vaccaro (&) FCEE, Catholic University of Portugal, Lisbon, Portugal e-mail: vaccaro@andrew.cmu.edu

Analyzing Peer-to-Peer Technology Using Information Ethics

Much of the ethical debate on peer-to-peer (P2P) focuses on the use of this technology for unauthorized and illegal sharing of copyrighted materials. This fixation has led some to believe that P2P is an intrinsically unethical technology. However, P2P has a much wider significance than the unauthorized circulation of copyrighted material. Scholars therefore need to evaluate the global ethical effects of P2P architecture on society, as opposed to focusing on the specific implementations of this architecture. Several criteria have been proposed for the assessment of these implications, ranging from the effects of P2P on the technological progress of a society to its influence on the development of virtuous interactions. This article contributes to this debate by presenting a new approach, which distinguishes between local effects (content related) and systemic effects (communication modality related) of the use of P2P and focuses on the latter. Employing Floridis information ethics, it considers whether or not P2P is an ethical technology, in a global sense.

Anticipated communication in the ultimatum game

Anticipated verbal feedback in a dictator game has been shown to induce altruistic behavior. However, in the ultimatum game which, apart from generosity, entails a strategic component since a proposer may (rightly) fear that the responder will reject a low offer, it remains an open question whether anticipated verbal communication can be effective in increasing offers. We implement a between-subjects experimental design in the ultimatum game with strategy method manipulating the form of anticipated verbal communication (no communication, one-sided communication from proposers and two-sided communication) and find that offers are significantly higher in the presence of anticipated two-sided communication. However, anticipated one-sided communication from proposers has no effect on offers, suggesting, as found in previous studies, that it is the anticipation of feedback that is relevant.

Organizational Identity Orientation and the Adoption of Corporate Social Responsibility: Symbolic, Selective, or Substantial?

We develop a model that explains variation in adoption patterns of Corporate Social Responsibility (CSR)-related business practices in cases after multinational corporations (MNCs) have acquired social enterprises. Existing approaches that seek to explain these differences remain theoretically underdeveloped due to lacking emphasis on intra-organizational dynamics happening after an acquisition. We address this gap by arguing that different organizational identity orientations of the acquiring and acquired organization are critical factors that explain how MNCs interpret and build different preferences about organizational practices they decide to either adopt to varying degrees, that is, substantially, selectively, or symbolically. We develop a conceptual model that explains differences in organizational implementation of CSR.

VIRTUAL NETWORKS AND ETHICS : AN EMPIRICAL RESEARCH IN A NON- GOVERNMENTAL ORGANIZATION

This paper analyzes the opportunities offered by information and communication technologies (ICTs) and the related ethical issues they raise within the transparency practices of non- governmental organizations (NGOs). Based upon a one-year study of a European NGO, the Italian Association of Blind People, it presents compelling empirical evidence concerning the main ethical, social and economic challenges that NGOs face in the development of more transparent relationships with the public and the related role that is played by ICTs. In particular, this study shows that, although attempting to be extremely transparent is held as an important ethical value, ICT- enabled information disclosure is limited by privacy and security concerns and by the pressure of financial supporters and benefactors and potential NGO competitors who vie for grants and donations. Finally, this paper presents implications and suggestions for managers of NGOs and policy makers.