...Business Ethics and Crisis Management: Circumstances for a Second Chance Dr. Stefan MAYR Researcher at the Institut für Controlling und Consulting, Johannes Kepler Universität Linz, Austria Johannes Kepler Universität Linz Institut für Controlling und Consulting Altenberger Straße 69 4040 Linz Austria Stefan.mayr@jku.at Keywords: Corporate responsibility, corporate restructuring, enterprise crisis, bankruptcy 1238 Abstract Discourse regarding ethics and corporate responsibility arose in the last years linked with an increasing number of accounting fraud scandals. The recent financial crisis has had a lasting negative influence on corporate profits. Companies have had to satisfy the interests of several stakeholders, such as its employees, banks, customers and the community, and at the same time successfully manage the consequences of the crisis. An empirical qualitative study which was conducted in Austria in 2008 is presented in this paper aimed at investigating business ethics and crisis management. The stakeholder theory will be used as a reference framework. This paper concludes with lessons that can be learned and political recommendations and policies put forth to grant failed businesses a second chance. 1. Introduction In the past few years, an increasing number of fraud cases and accounting scandals is linked to fierce discourse with respect to ethics and corporate accountability. Business ethics has likewise become a current research subject in...
Words: 5533 - Pages: 23
...caused the death of 25 people and 127 injuries. The crisis grabbed media attention and different official entities in Saudi Arabia. This report will describe the situation and analyze the communication management of this crisis, how the ministry handled it, the communication effectiveness and some ethical issues. In addition, the report will provide some recommendations to handle such crisis. Situation Description Crisis Situation Overview The hospital in which the fire happened is located in the southwestern region of Saudi Arabia. That region has a low population number. The fire started early morning on Thursday, the 24th of December 2015. The tragedy is high, as 25 people died and 127 were injured. The numbers are big and that caused the incident to be considered as a national disaster. People in social media such as Tiwtter and Facebook started talking about the fire. Videos and pictures were spread around and people shared them. Some citizens volunteered to rescue people from the fire and help in evacuation. Initial response from the ministry was to acknowledge the fire incident. It stated also that the evacuation of children was successful and all children were rescued. A later announcement from the ministry is to assign a call center number for patients’ families to call and ask about patients’ situation. A TV interview with the general manager of health affairs in Jazan was conducted on the same day. The manager claimed that the building was prepared with the safety...
Words: 2386 - Pages: 10
...University of Edinburgh, Lei Chen, University of Keele. John Holland, University of Glasgow, The Adam Smith Business School, University of Glasgow, Main Building, Glasgow, G12 8QQ, Scotland Abstract: This paper develops a model of the information intermediation role of analysts in the ‘market for information’ (MFI). It illustrates how the same type of ‘soft’ intangibles information changes as it progresses through analyst information intermediation processes. The latter concern: company disclosure; analyst acquisition and analysis of company information; analyst reporting processes; and market impacts. The common information concerns ‘soft’ or qualitative information about the company intellectual capital (IC) or intangibles in the company business model. Banks and bank analysts are used as examples. Knowledge, social and economic factors in the wider ‘market for information’ (MFI) are shown to be major influences on ‘soft information’ and how it changes in analyst information intermediation processes. Negative knowledge and social factors play a role in weakening and eventually destabilising economic processes in analyst and the MFI. They were important factors in creating knowledge and information problems in analysts and the MFI, both ongoing, and during the crisis of 2007-09. These factors are also part of a solution to the problems. The solutions include improved, transparent knowledge of business models of companies, analysts, and rest of MFI. They also include active...
Words: 28563 - Pages: 115
...considerations. Having an understanding of the food and beverage sector within Novotel Hotels in the Sydney Metropolitan area and the challenges it faces is important, in this selected case study it not only is effected by the Hospitality industry but also the tourism industry as well. Both these industries have felt hard and negative impacts from the global financial crisis and have definitely had an impact on our case study. This business research report identifies the need to evaluate the relationship between a decline in international tourist, the change in food and dining trends and the revenue of Novotel in the Metropolitan area. The research follows the deductive research method. For the purpose of this report the hypothesis is Novotel food and beverage sector in Sydney metropolitan areas is making a loss and losing customers because of the global financial crisis. The research was conducted through a mixture of qualitative and quantitative research methods including; the report samples the primary research methods such as sample questionnaires, observational research and interviews. The secondary research methods mainly included personal communication and researching the hospitality databases, tourism and Australian Bureau of Statistics Website. Table of Contents Executive Summary 1. Research Questions 4 2. Literature Review 5 3. Conceptual Framework 7 4. Methodology and Research Instruments 9 4.1 Research Methods 11 4.1.1...
Words: 2949 - Pages: 12
...sure that employees are paid at a competitive rate To identify areas of growth: • Looking at demographics and understanding where products sell best • Understanding what skills are needed to hit the target market and what skills current employees need to improve to increase productivity 2. Identify the range of HR data that organisations collect and how this supports HR practice. Range of HR data that organisations collect Exit Interviews Exit interviews enable HR to understand why an employee is leaving the Company. The HR department are then able to analyse the data and implement necessary changes i.e. it might be that the manager of that area needs additional management training or that Company are not paying competitively and a benchmarking exercise would be useful. By looking at this data the organisation can limit the number of employees leaving. Recruitment Looking at recruitment data enables HR to understand the timescale, success rate, top performing agencies and the number of interview stages, by looking at this information HR are able to make that the recruitment process runs as effectively as possible. It can also be used to monitor diversity and equality, and making sure that the organisation has a lawful recruitment...
Words: 1048 - Pages: 5
...Introduction This paper is devoted to the problem of international selection of personnel. Efficient allocation of the resources is one of the most important criteria in the success of a company, especially when we are speaking about human resources. Hiring and then deploying people to positions where they can perform in the most effective way is the primary goal of most organisations, whether domestic or international. Selection is the process of matching individual characteristics such as ability and experience with the requirement of the job. The main two differences between domestic and international selection are that managers should take into staffing orientation of particular company, in other words who should take the key positions in headquarters and subsidiaries also they should take into account laws and regulations of host country. Further in this paper it will be discussed different types of employees, factors that influence stuffing and criteria for candidate selection and validation. In the practical part all the issues mentioned above will be addressed on the example of two companies that are going through changes one of which is the recruitment of the personnel. Theoretical part Staffing orientation As it was said in introduction one of the main obstacles that managers are facing during the selection process of future expatriates is that many companies have predispositions with regard to who should take top positions in headquarter and subsidiaries or...
Words: 2599 - Pages: 11
...Administration Autumn 2010 Abstract Master thesis in business administration, MBA Program, School of Management, Blekinge Institute of Technology, fall of 2010. Author: Christos Kakazoukis Supervisor: Urban Ljungquist Title: How macro environmental forces affect business buying behavior after a recession: A case study of the second hand truck business. Keywords: Buying behavior, customer behavior, financial crisis, trucks, PESTEL Background and problem: The financial crisis has had a deep impact on businesses all around the world. This has affected our purchases, both as retailers and as customers. In this thesis I will investigate how the buying behavior has changed, before, during and after the financial crisis with focus on the second hand truck business. I will also investigate which macro environmental factors have affected the buying behavior. Purpose: The purpose of this research is to describe changes in buying behaviors from influence of macro environmental forces. Method: I have used a qualitative method, and as a part of that face to face interviews, to understand and establish a better contact with the respondents. At the selection of companies I have chosen three companies in the second hand truck business, located on the west coast of Sweden. They required to not be mentioned by their name so they are referred to as Company A, B and C. Result and conclusions: The conclusions which can be drawn from this thesis research is that the macro environmental forces...
Words: 16934 - Pages: 68
...Occasional Paper 5 The Recovery of Trust: Case studies of organisational failures and trust repair BY GRAHAM DIETZ AND NICOLE GILLESPIE Published by the Institute of Business Ethics Occasional Paper 5 Authors Dr Graham Dietz is a Senior Lecturer in Human Resource Management and Organisational Behaviour at Durham University, UK. His research focuses on trust repair after organisational failures, as well as trust-building across cultures. Together with his co-author on this report, his most recent co-edited book is Organizational Trust: A cultural perspective (Cambridge University Press). Dr Nicole Gillespie is a Senior Lecturer in Management at the University of Queensland, Australia. Her research focuses on building, repairing and measuring trust in organisations and across cultural and professional boundaries. In addition, Nicole researches in the areas of leadership, teams and employee engagement. Acknowledgements The authors would like to thank the contact persons in the featured organisations for their comments on an earlier draft of this Paper. The IBE is particularly grateful to Severn Trent and BAE Systems for their support of this project. All rights reserved. To reproduce or transmit this book in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, please obtain prior permission in writing from the publisher. The Recovery of Trust: Case studies...
Words: 16669 - Pages: 67
...Occasional Paper 5 The Recovery of Trust: Case studies of organisational failures and trust repair BY GRAHAM DIETZ AND NICOLE GILLESPIE Published by the Institute of Business Ethics Occasional Paper 5 Authors Dr Graham Dietz is a Senior Lecturer in Human Resource Management and Organisational Behaviour at Durham University, UK. His research focuses on trust repair after organisational failures, as well as trust-building across cultures. Together with his co-author on this report, his most recent co-edited book is Organizational Trust: A cultural perspective (Cambridge University Press). Dr Nicole Gillespie is a Senior Lecturer in Management at the University of Queensland, Australia. Her research focuses on building, repairing and measuring trust in organisations and across cultural and professional boundaries. In addition, Nicole researches in the areas of leadership, teams and employee engagement. Acknowledgements The authors would like to thank the contact persons in the featured organisations for their comments on an earlier draft of this Paper. The IBE is particularly grateful to Severn Trent and BAE Systems for their support of this project. All rights reserved. To reproduce or transmit this book in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, please obtain prior permission in writing from the publisher. The Recovery of Trust: Case studies of organisational...
Words: 16670 - Pages: 67
...Amsterdam, Amsterdam, The Netherlands Ronald Kroeze Free University of Amsterdam, Amsterdam, The Netherlands, and Rik Peters University of Groningen, Groningen, The Netherlands Abstract Purpose – This paper aims to look at the role of the top and middle management of the Philips organization during the transition from one type of organizational change to another in the 1990s and the role the history of the organisation played in this process. Design/methodology/approach – The paper analysis is based on historical records, literature and interviews with former Philips top managers. Findings – The paper shows that Philips’ leaders used different styles of leadership to create a deliberate atmosphere and willingness to change. The final emergent transformation, however, could only sufficiently materialise while it rejuvenated existing management concepts like Quality Management. The success was partly based on the fact that these concepts played a historical role in the Philips organisation. Originality/value – The paper adds the historical style approach to leadership research and pays attention to the important role of the organization’s history during processes of organizational change. Keywords Change management, Business history, Leadership styles, Organizational change Paper type Case study Introduction On October 25th 1990 the president of Philips Jan Timmer announced a reorganisation operation, called Centurion, which included a lay-off of 45.000 jobs. The Netherlands was...
Words: 10248 - Pages: 41
...Amsterdam, Amsterdam, The Netherlands Ronald Kroeze Free University of Amsterdam, Amsterdam, The Netherlands, and Rik Peters University of Groningen, Groningen, The Netherlands Abstract Purpose – This paper aims to look at the role of the top and middle management of the Philips organization during the transition from one type of organizational change to another in the 1990s and the role the history of the organisation played in this process. Design/methodology/approach – The paper analysis is based on historical records, literature and interviews with former Philips top managers. Findings – The paper shows that Philips’ leaders used different styles of leadership to create a deliberate atmosphere and willingness to change. The final emergent transformation, however, could only sufficiently materialise while it rejuvenated existing management concepts like Quality Management. The success was partly based on the fact that these concepts played a historical role in the Philips organisation. Originality/value – The paper adds the historical style approach to leadership research and pays attention to the important role of the organization’s history during processes of organizational change. Keywords Change management, Business history, Leadership styles, Organizational change Paper type Case study Introduction On October 25th 1990 the president of Philips Jan Timmer announced a reorganisation operation, called Centurion, which included a lay-off of 45.000 jobs. The Netherlands was...
Words: 10260 - Pages: 42
...western developed countries. The commercial banks still operate separately at present according to the law. Being the important part of Chinese financial market, the Industrial and Commercial Bank of China (ICBC) as one of the big-four state-owned commercial banks should make an important decision on whether or not fully introduce the mixed operation for operating in UK. This study analyzes the difference of the operation model of HSBC and ICBC are operating in the UK at present, and examines the advantages and disadvantages of both separated and mixed operation for ICBC (London). Furthermore, it proposes the realistic choice of operation model for ICBC (London) under the existing Chinese financial system and the market condition of UK. This paper argues that the separated operation model of ICBC and investment banks in the short term will not change. The internally integrated operation model in terms of mixed operation which through restructuring to concurrently operate investment bank business within the ICBC (London), should be the realistic choice. The operating advantages in terms of low risk and high efficiency of the Group Banking form will be the development orientation for ICBC (London). Chapter 1 1. Introduction 1.1...
Words: 9211 - Pages: 37
...support@jstor.org. . Springer is collaborating with JSTOR to digitize, preserve and extend access to Journal of Business Ethics. http://www.jstor.org This content downloaded from 130.209.6.50 on Tue, 3 Dec 2013 07:49:34 AM All use subject to JSTOR Terms and Conditions (2006) 65: 149-161 Journal of Business Ethics DOI 10.1007/sl0551-005-4175-4 ? Springer 2006 Corporate Psychological Defences: T. Ketola An Oil Spill Case ABSTPJVCT. protect isational morality defences the Organisational self-esteem even This an oil and moral at the paper refinery psychological integrity expense analyses and of the its parent of defences the organ the of while concessions corporation imply that is taking a change place. towards a more responsible personality of actions. used by sacrificing spectrum company KEY oil WORDS: spill, crisis management, concessions, defence behaviour, psy during an oil spill incident. A hypothetical model fences built on of de organisational defences, organisational excuses, organisational to accusations four responses...
Words: 9258 - Pages: 38
...Overview This Research Paper evaluates the various techniques and modes of business communication followed in the hospitality sector. The main objectives of the research are listed below: 1. To understand and evaluate the communication system of a specific organization under Hospitality sector. 2. To evaluate the communication system during a crisis. 3. To evaluate the communication system that is used to convey any change in the organization i.e. Change Communication. The organization in focus for the study is Accor Hospitality, which is based in Hyderabad. Data for the purpose has been collected through Telephonic interview. The Table given below displays the various contents of the research paper. 1. Introduction to effective communication 2. Hospitality Industry 3. Introduction to Accor Hospitality 4. Interview Questions & Answers 5. Conclusion and new trends in communication INTRODUCTION The word “communication” derived from the Latin word ‘communicare’ that means to impart, to Participate, to share or to make common. It is a process of exchange of facts, ideas and opinions as a means that individual or organization share meaning and understanding with one another. In other words, it is a transmission and interacting the facts, ideas, opinion, feeling and attitudes. It is the ability of mankind to communicate across barriers and beyond boundaries that has ushered the progress of mankind. It is the ability of fostering speedy and effective...
Words: 2813 - Pages: 12
... High risk families can be defined as those families with a higher than expected risk for developing a particular disease or injury in association to their lifestyle, environment, habits, or socio-economic conditions. Post active-duty war veterans are a group that is at high risk for developing Post Traumatic Stress Disorder (PTSD), which can lead to physical, psychological, and social problems. These problems not only affect the veteran but also strongly alter the health and lifestyle of the entire family. The objective of this paper is to present the health profile and behaviors of PTSD veterans, describe assessment models and theories that are applicable to the patient and family, and identify Healthy People 2020 objectives that relate to this high risk group. In addition, the paper will present nurse intervention strategies based on health promotion and prevention as well as the role of advanced practice nurses as case managers. Health Profile According to the Mayo Clinic (2012), PTSD “is a mental health condition that is triggered by a terrifying event” (p. 1). After experiencing severe trauma or a life-threatening event, many deployed war veterans develop symptoms of post-traumatic stress. Many feel as though their lives or the lives of others are in imminent danger in which they have no control. These feelings develop...
Words: 2137 - Pages: 9
