Mark S. Blodgett

Corporate Ethics Codes: A Practical Application of Liability Prevention

With the great increase in litigation, insurance costs, and consumer prices, both managers and businesses should take a proactive position in avoiding liability. Legal liability may attach when a duty has been breached; many actions falling into this category are also considered unethical. Since much of business liability is caused by a breach of a duty by a business to either an individual, another business, or to society, this article asserts that the practice of liability prevention is a practical business application of ethics. In todays highly litigious environment, it is appropriate for the concept of general liability prevention to be included in corporate codes of ethics.

Articulating Values to Inform Decision Making: Lessons from Family Firms Around the World

Both the popular and the academic press stress that management grounded in values is fundamental to decision-making. High performance companies know that clarity about values is key to getting the job done. However, many family-owned firms do not adequately articulate their core values into a workable orientation for the business. As a result, they are in danger of seriously impairing their decision-making. The authors analyzed family business mission statements from around the world to identify the core values expressed therein. The authors also analyzed how efficiently these values were articulated. They propose that family businesses can make their decision making more effective by identifying and including their core values in the businesss mission statement.

Sustaining the Financial Value of Global CSR: Reconciling Corporate and Stakeholder Interests in a Less Regulated Environment

In this article we examine the association between corporate social responsibility (CSR) and firm value. This line of research is important since firms continue to invest in CSR even though past studies reveal a limited linkage between financial value and CSR. However, the business case for CSR or “doing good while making a profit,” appears to be advancing within the business ethics literature as a preferred conception of CSR. We conjecture that the greater unification and refinement of both profit maximization and stakeholder interests through corporate acts, not statements alone, will sustain the financial value of CSR in a less regulated global business environment. We study the triangle of what companies say, what companies do, and firm financial performance. We analyze Fortune 250 firms and find a positive association between what companies do based on KLD Research and Analytics, Inc. (KLD) ratings, and what companies state about ethics in their CSR statements. We then employ regression analysis and find that companies’ socially responsible acts are positively associated with overall firm value and financial performance. Yet we do not find a statistically significant association between what companies say regarding ethics in their CSR statements and their financial outcomes. These results suggest that firm value and financial performance is associated with what companies do and not what they say. Our results seem to be driven by multinational corporations (MNCs) and not by non‐MNCs. This is possibly because MNCs generally operate in a less regulated global business environment that often necessitates strong ethical corporate leadership to further stakeholder interests. Overall, these results help reconcile corporate and stakeholder objectives since evidence of a link between financial performance and doing good sustains global CSR.

Health‐Care Nonprofits: Enhancing Governance and Public Trust

Nonprofits are a major part of the U.S. economy and they are not immune from corporate malfeasance controversies. Even Congress has expressed concern about the crisis in nonprofit governance. The nonprofit response to Congress has been a historic initiative recognizing critical challenges to nonprofit governance. In contrast to their for‐profit counterparts, nonprofits are committed to missions serving the public benefit and not to shareholder profits. Accordingly, their missions and financial resources are intrinsic to their very existence, which is built upon the public trust. That trust is rooted in fiduciary responsibility and reflected in best practices. This article traces the history of the nonprofit public trust and fiduciary standards and examines principles of Sarbanes–Oxley and other best practices as they apply to nonprofits. The authors sampled 80 health‐care nonprofit corporation web sites from eight asset classes to determine compliance with Sarbanes–Oxley and identification of fiduciary duty, ethical values, and other best practices. Among the very largest health‐care nonprofits, many comply with Sarbanes–Oxley and identify fiduciary duty, ethical values, and other best practices. However, there are substantial deficiencies in such compliance and identification among all remaining seven asset classes ranging from 99.9 million to less than 100,000. The results appear to corroborate the urgent necessity for reform articulated by the Congress and the nonprofit sector. Nonprofit governance has entered a new era where best practices must be implemented to sustain the public trust.

A Global MBA for Tomorrow's Global Business Leaders: Integrating Best Practice with Boston's Locational Advantage.

Abstract Traditional IB programs have received mixed reviews from the corporate world. With this in mind, the Suffolk GMBA was benchmarked against the leading international business programs. The Suffolk GMBA was designed to be different and to ascertain the global environment in which business operates. A unique feature of the GMBA curriculum detailed in this article is the combination of Bostons international business locational advantage with functional integration of the many disciplines that make international business unique. Borrowing components from the fields of economics, government and politics, finance, marketing, ethics, and law, a curriculum matrix was developed identifying and sequencing the key topics to be taught. The authors also explain potential pitfalls and outline a model which can be successfully implemented in other graduate international business programs. This program is shaping the thoughts and actions of tomorrows global business leaders through its integrative decision-making framework of global perspectives and competencies.

Revitalizing the MBA for the New Millennium: A Collaborative Action Research Approach

Business schools are facing increased competition due to information technology innovations and customer dissatisfaction. In response, business schools are turning to a variety of solutions, such as team teaching, integrated curricula, and distance learning. This article presents the results of a collaborative action research project initiated by one business school faced with the need to revitalize its MBA program. The faculty engaged in this project learned much about the challenges of teaching an integrative course and the constancy of change. We share our conclusions and recommendations about an integrated curriculum, distance learning, adult learning, team teaching, revisions in program duration and structure, as well as advice on the necessary administrative support and compensation for business schools contemplating such changes.

Critical Writing Skills in the Legal Environment Classroom: An Analysis

Abstract For this research, legal assignment requirements and business communication theory were used to evaluate 83 legal environment research papers. Results indicate that though over 90% of the papers submitted received a grade of C or above after the legal content analysis, over 50% were deemed “unacceptable” by communication standards. This article contends that well-planned writing assignments can improve student writing and that students must be held to high communication standards throughout their academic career in order to develop and reinforce writing skill. Suggestions for improving “writing in the business disciplines” are given.

State Oversight of Nonprofit Governance: Confronting the Challenge of Mission Adherence Within a Multi-dimensional Standard

State Oversight of Nonprofit Governance: Confronting the Challenge of Mission Adherence Within a Multi-dimensional Standard

Corporate Ethics Codes: A New Generations' Tool for Strategic Global Management and Decision-Making

The premise of this article is that it is important to train domestic and international executives in management ethics using corporate ethics codes. Incorporating ethics codes into the professional development of executives in business and industry contributes to the institutionalization of codes in the global workplace. Ethics institutionalization imbues corporate structures with understanding, both internally and externally, of the concepts of ethics. At an east coast University School of Management a Comparative Code Method (CCM) was developed and tested. Among the major findings, was that the use of corporate codes quickly transitions employees from an individual ethical perspective to a corporate ethical perspective.