Research

In collaboration with faculty at the University of St. Thomas, other academic institutions and other organizations, the Center commissions and performs research into critical aspects of the creation of ethical business cultures.

Characteristics of Ethical Business Cultures

Alexandre Ardichvili, Ph.D. - James A. Mitchell - Douglas Jondle, Ph.D.

Abstract: The purpose of this study was to identify general characteristics attributed to ethical business cultures by executives from a variety of industries. Our research identified five clusters of characteristics:

Mission- and Values-Driven
Stakeholder Balance
Leadership Effectiveness
Process Integrity
Long-term Perspective

We propose that these characteristics can be used as a foundation of a comprehensive model that can be engaged to influence operational practices in creating and sustaining an ethical business culture.

Accepted for publication in the Journal of Business Ethics.

CSR History Project

Phase 2: CSR History Consultation

On November 6-7, CEBC hosted a consultation among scholars to create a framework for the History of Corporate Social Responsibility from 1945 to the present. The Center gathered a remarkable group of 14 scholars and practitioners drawn from business ethics, management, business history, companies and consultancies. Kenneth Goodpaster, Koch Chair in Business Ethics in the Opus College of Business at the University of St. Thomas, facilitated the discussion.

Consultation Roster

Phase 1: Corporate Social Responsibility: The Shape of a History, 1945-2004

This paper sketches the elements that could be explored in writing a history of corporate social responsibility (CSR) and identifies some of the intellectual and bibliographic resources potentially available. The time period selected begins in 1945 and ends with 2004.

In sketching a potential approach to the subject, the team discusses five broad categories or "lenses" that would cast light on the subject. They are: the core economic impact of business on society; the changing context – economic, political and social – within which business operates; the evolution of the definition of CSR; attention to business practices that have been implemented; and, the issues related to CSR that are currently under debate.

It is our hope that this paper will serve as a point of departure for discussion. For more information, please contact David Rodbourne at (651) 962-4122 or dhrodbourne@cebcglobal.org.

Executive Summary

Mergers: Implications for Corporate Philanthropy and the Community

It would be unwise to simply assume that Minnesota’s great legacy of corporate citizenship will be sustained easily given the rapid and massive changes in the economic and corporate landscape. How have mergers and acquisitions, one of many changes, affected corporate giving, business leadership on community issues, and the nonprofit and civic sectors in Minnesota? The paper invites further discussion about how this special Minnesota gift – what some call the "Minnesota Way" and others call the "Minnesota Difference" – can be nurtured for the future.

The Ethical Advantage: Why Ethical Leadership is Good Business

How does your company manage the trade-off between maximizing shareholder value and delivering superior customer service? Many companies do it with round after round of layoffs and reductions in capital spending. The worst ones — the Enrons and WorldComs — do it by lying in their financial statements. All of these companies have it wrong. No company needs to decide whether to be ethical or profitable. It can be both, and we have the numbers to prove it!

Written by James A. Mitchell, Executive Business Fellow, Leadership at the Center for Ethical Business Cultures, this paper demonstrates that organizations that build ethical cultures outperform those that don’t. The paper shows that ethical leadership adds substantial economic value to a corporation, “making the whole economic pie bigger” so that each of the key stakeholders—customers, employees, owners and the community at large—can get a “bigger piece.” Thus, in the longer term, the ethical corporation has a significant advantage over its competitors.

These concepts were honed during Mitchell’s nine-year experience as CEO of a company which became the fastest-growing and most profitable in its industry. At a time when various corporate scandals are spotlighting the worst of business leadership, Mitchell’s message is both counterintuitive and compelling.

What does it mean for a company to have the ethical advantage? It means having a productive and ethical culture with three main characteristics:

1. Balancing the interests of the various stakeholders;

2. Leadership effectiveness; and,

3. Process integrity.

Each of these areas is described, including some specific suggestions for beginning to implement these kinds of changes in the culture of a business organization.

To download a copy of the paper, please visit: The Ethical Advantage: Why Ethical Leadership is Good Business.

The Business of Giving Back

In 2003, a statewide survey of 595 small, medium and large business establishments was sponsored by the Building Business Investment in Community (BBIC) initiative and conducted by the Wilder Research Center.

The BBIC survey, The Business of Giving Back, was designed to give insight into the current state of local business giving in Minnesota, establish baseline measures and provide businesses with examples of the many ways they can contribute to their communities. It is the most comprehensive survey of giving by businesses of all sizes ever done in Minnesota.

Research results were used to craft a campaign to increase giving and community involvement by business.

Businesses interested in learning more about ways to get involved in giving and community involvement and about services available through BBIC can visit their information clearinghouse at www.minnesotabusinessgives.org.