Corruption in Russia: IKEA’s expansion to the East (A-D)

2016 ◽  
Vol 6 (2) ◽  
pp. 1-25 ◽  
Author(s):  
Urs Müller

Subject area Business ethics corruption governance and compliance integrity management international management intercultural and cross-cultural management internationalization corporate social responsibility (CSR). Study level/applicability The case has successfully been used with a wide range of audiences from masters/MBAs to Executives. It will also work with undergraduates. Case overview This four-part case series can be used to discuss business ethics, compliance/governance, integrity management, reacting to and preparing against corruption in the context of internationalization and allows to also briefly touching upon the issue of CSR. Case (A) describes a challenge IKEA was facing, while trying to enter Russia in 2000. The company was preparing to open its first flagship store on the outskirts of Moscow, only the first of several planned projects. After substantial investments in infrastructure and logistics, IKEA focused on marketing, but quickly faced a sudden complication. Its major ad campaign in the Moscow Metro with the slogan “[e]very 10th European was made in one of our beds” was labeled “tasteless”. IKEA had to stop the campaign because it “couldn’t prove” the claim. Soon Lennart Dahlgren, the first general manager of IKEA in Russia must have realized that the unsuccessful ad campaign was going to be the least of his problems: A few weeks before the planned opening, the local utility company decided not to provide their services for the store if IKEA did not pay a bribe. What should IKEA and Lennart Dahlgren do? Was there any alternative to playing the game the Russian way, and paying? The subsequent cases (B), (C) and (D) describe IKEA’s creative response to the challenges described in case (A), and then report about new challenges with alleged corruption within IKEA and in the legal environment, and finally raise the question whether IKEA can be considered to have a (corporate social) responsibility to fight corruption on a societal level to build the platform for its own operation in Russia. Expected learning outcomes Responding to a threatening corruption demand (here: responding to an outside demand for a bribe), avoiding corruption from the outside, cross-cultural differences in drawing the line for corruption, preventing corruption within the organization, (corporate social) responsibility of firms to improve the political/legal/social/moral environment in which they operate are the expected learning outcomes. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 5: International Business

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Francisco Espasandín-Bustelo ◽  
Juan Ganaza-Vargas ◽  
Rosalia Diaz-Carrion

PurposeThis research explores how does the organizational culture influence internal corporate social responsibility (CSR) actions and the effect of these actions on the level of happiness of employees.Design/methodology/approachThe study adopts an employee perspective since the perception of employees is the unit of analysis. By relying on a sample of 921 workers of firms from different sectors and sizes headquartered in Spain, the empirical analysis is performed using partial least squares.FindingsThe findings evidence that clan and adhocracy cultures highly foster internal CSR practices and that internal CSR activities enhance employees' happiness. The mediating role of internal CSR in the relationship between organizational culture and employee happiness is also found. These results suggest that managers could play a proactive role in fostering internal CSR by designing the organizational culture according to features of clan and adhocracy cultures such as flexibility, innovation, creativity, autonomy, communication, training and support of supervisors.Research limitations/implicationsThe research focuses on a single country, which makes it difficult to generalize the results and guides future research into cross-cultural analysis. Including countries that present differences in their cultural and institutional context would allow to explore the influence of the national context on the business culture, on internal CSR and on employee happiness. This work is also limited in time, as the data used are of a cross-cultural nature.Practical implicationsA greater effort in internal CSR by companies translates into a higher level of happiness for their workers. Specifically, occupational health and safety practices have the greatest influence on employee happiness. Hence, organizations must develop cultures that contribute to promote internal CSR—adhocracy and clan—since this would enhance employees' happiness if the values and beliefs that characterize these cultural configurations are translated into internal CSR practices such as occupational health and safety, work–life balance and equal opportunities.Social implicationsThe improvement of employee happiness creates social value and can be enhanced through an organizational culture that promotes CSR. The research findings might be useful when defining institutional policies to promote job quality, as encouraged by the social policy agenda of the United Nations embodied in the Sustainable Development Goals.Originality/valuePromoting internal CSR through organizational culture will have positive effects for companies internally by enhancing employees' happiness. Therefore, the article contributes to overcome the lack of evidence about the antecedents of internal CSR and its relationship with employees' happiness, an emerging variable in the management literature.


2011 ◽  
Vol 1 (1) ◽  
pp. 1-14
Author(s):  
George O. K'Aol ◽  
Francis Wambalaba

Subject area Corporate social responsibility (CSR). Study level/applicability The Homegrown case is designed for teaching corporate social responsibility and business ethics at undergraduate and graduate levels. The case may be used on a variety of courses including: corporate social responsibility, business ethics and corporate social responsibility, and business ethics. Case overview In May 2003, the headline of the East African newspaper screamed “The Kenyan Horticultural Industry under fire.” The industry was accused of exploitative labor policies with respect to working conditions, workers' welfare, sexual harassment, and exposure to harmful pesticides by the key stakeholders led by the Kenya Human Rights Commission. The stakeholders had announced plans to conduct national and international campaigns against the flower growing and exporting companies in Kenya. Mr Richard Fox, the Managing Director of Homegrown was worried that the publicity had adversely tarnished the image and reputation of the horticultural industry in Kenya as a whole, including Homegrown. He wondered how best to respond to these allegations. Should Homegrown wait to see what the competitors and other stakeholders would do, as these were industry-wide problems or should Homegrown take the lead? And if so, what should be the scope of the programs, given the diverse nature of the issues? He had to make decision quickly. Expected learning outcomes The case provides opportunity for students to analyze, discuss, and debate topical issues in CSR. At the end of the case, students should be able to: identify emerging CSR and ethical issues facing the horticultural industry in Kenya; analyze the cost of implementing CSR programs in business organizations; evaluate the impact of CSR programs on business performance; justify and defend choices on CSR, and ethical decisions. Supplementary materials Not included.


2013 ◽  
Vol 12 (5-6) ◽  
pp. 590-596 ◽  
Author(s):  
Dahouk Dawoudi ◽  
Anton Sabella

AbstractThe field of business ethics is an area of growth, both in the business and education sectors in the Arab world, including Palestine. But most research on this subject has been carried out in the USA and Europe, which gives most of the issues related to this field a distinctively American or European character. As an alternative, this case attempts to shed the light on a wide range of socio-economic, educational and business issues that are typically encountered in Palestine and to explain innovative approaches to resolving key dilemmas related to resolving the skill shortage that affects the competitiveness of Palestinian enterprises. It will do so by looking at Padico Holding, a pioneer in developing a creative program adapted to the enterprise sector’s needs. The case draws its analysis from international theories and concepts by explaining Padico’s sense of responsibility towards community inspired by Kant’s ethics of duty, which is demonstrated in its business societal orientation built around the “stakeholder model.”


2019 ◽  
Vol 29 (4) ◽  
pp. 431-439
Author(s):  
Dana E. Harrison ◽  
O.C. Ferrell ◽  
Linda Ferrell ◽  
Joe F. Hair, Jr

Purpose The purpose of this paper is to theoretically develop and empirically validate separate scales that represent a consumer’s expectations of business ethics (BE) and corporate social responsibility (CSR). Design/methodology/approach A literature review and qualitative research were conducted to generate items for the scales. Initial item reduction was performed qualitatively based on a panel of experts. A follow-up quantitative assessment using an exploratory factor analysis further reduced the items. The scales were then validated using confirmatory composite analysis with partial least squares-structural equation modeling. Findings Separate scales representing consumers’ expectations of BE and CSR behaviors were developed. The scales exhibited reliability, convergent validity, discriminant validity and external validity. Practical implications The separation of these scales into two components will facilitate more precise examination of consumer perceptions of these two components of product and brand images, and how they may impact brand attitudes and brand trust. Originality/value This is the first effort to develop separate scales for consumer expectations of ethics and CSR, and assess their impact on brand outcomes.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
George Kofi Amoako ◽  
Joshua Kofi Doe ◽  
Robert Kwame Dzogbenuku

Purpose This study aims to establish the link between business ethics and brand loyalty and to investigate the mediating role of corporate social responsibility (CSR) and United Nations Sustainable Development Goals (SDGs) such as green marketing. Design/methodology/approach Using the purposive sampling technique, data were obtained from 622 middle-income city dwellers who shop at leading retail malls. Data were analyzed with partial least square–structural equation model. Findings The study found a positive and significant relationship between business ethics, CSR, green marketing and business loyalty. Both CSR and green marketing mediate between perceived firm ethicality and brand loyalty. Research limitations/implications This research was done based on general knowledge of business ethics, CSR and green marketing from the consumers’ perspective. Future studies can avoid this limitation. Practical implications By ensuring ethical codes, CSR and green marketing, firms can contribute to promoting the SDGs, and at the same time, achieving customer loyalty. Brand loyalty is further enhanced if customers see a firm to be practicing CSR. Social implications The SDGs of sustainable production patterns, climate change and its impacts, and sustainably using water resources must become the focus of companies as they ultimately yield loyalty. Policymakers and society can design a policy to facilitate adoption of better ethical behavior and green marketing by firms as a way of promoting SDGs. Originality/value To the best of the authors’ knowledge, this study is the first to test the mediation effect of green marketing and CSR on how ethical behavior leads to brand loyalty. It is also one of the few papers to examine how SDGs can be promoted by businesses as stakeholders.


2015 ◽  
Vol 9 (3) ◽  
pp. 264-268
Author(s):  
Yuanhui Li ◽  
John Ferguson

Purpose – The purpose of the papers included in this issue is to cover a broad range of contemporary issues in Chinese corporate financial management and therefore provide the readers with important insights into Chinese financial markets as well as the social and economic consequences of firm behavior in the Chinese context. Design/methodology/approach – The first part of this issue is a special section on “Corporate Finance and Corporate Social Responsibility”, which includes three papers that explore various aspects of corporate social responsibility (CSR) from a finance perspective – including the relationship between CSR and the cost of equity, the “insurance-like effect” of CSR and competition in corporate philanthropy. The remainder of the issue includes seven further papers that cover a wide range of finance-related topics, including currency and equity, monetary policy, cross-border mergers and acquisitions, earnings management, overseas investment, information disclosure, social capital and cosmopolitanism. All of the papers included in this issue are based on empirical research that draws on primary and secondary data from Chinese financial markets and from the information disclosures of Chinese enterprises. Findings – The authors are confident that such in-depth discussions and analysis will help researchers and practitioners to develop a better understanding of the issues faced by Chinese managers in the context of China’s economic transformation. The findings reported in this issue will help inform and develop Chinese management theories based on a wide range of Chinese management practices. Originality/value – Each paper in this issue reports on different aspects of finance, reporting and management in the Chinese context, discussing findings that have both relevance and significance beyond China.


2012 ◽  
Vol 2 (8) ◽  
pp. 1-10 ◽  
Author(s):  
Peter Jones ◽  
David Hillier ◽  
Daphne Comfort

Subject areaCorporate social responsibility, sustainability and business ethics.Study level/applicabilityThis case has been designed for undergraduate students, with two target audiences. The first is business and management students following modules in corporate social responsibility (CSR), sustainability and business ethics. Here the accent is on allowing the students to explore and debate how CSR agendas are emerging within a specific sector of the retail economy. The second is students pursuing fashion, clothing, textile, retailing and consumer studies degrees and here the focus is on how some of the leading fashion goods retailers are addressing CSR. More generally the case can also be used on “Contemporary Issues” modules within general business and management programmes.Case overviewThis small case offers an exploratory review of the emerging CSR issues currently being publicly addressed by the world's leading fashion goods retailers. It includes a brief introduction to CSR; a brief thumbnail sketch of the fashion goods industry; details of the method of enquiry; a description of the CSR issues currently being publicly addressed by the top ten fashion good retailers on their corporate web sites; and some critical reflections on the CSR agendas being pursued by these retailers. The case study is novel in two ways. First, it focuses upon what is an emerging market issue rather than on emerging markets per se though a number of the issues raised in the case have major implications for emerging economies. Second, it addresses the CSR issues being addressed by a number of the leading fashion goods retailers and as such it a not a case which relates to individual decision making. While the case is principally focussed upon the retail sector it ranges across the whole of the supply chain.Expected learning outcomesThe paper provides an accessible review of the CSR issues and agendas currently being pursued by the leading fashion goods retailers and as such it will be of interest to academics, students and practitioners who are interested in both the fashion industry and corporate sustainability.Supplementary materialsTeaching notes are available, please consult your librarian for access.


2018 ◽  
Vol 9 (3) ◽  
pp. 621-654 ◽  
Author(s):  
Yazeed Alfakhri ◽  
Mohammad Nurunnabi ◽  
Demah Alfakhri

Purpose The purpose of this paper is to analyse the citations of scientific research on the concept of corporate social responsibility (CSR) from 1970 to 2014. In particular, several interconnected research questions were investigated: How did the conceptualisation of CSR change from 1970 to 2014? What is the general direction of the change? How does Islamic CSR emerge? Design/methodology/approach An in-depth analysis was performed with the use of the data analysis tool available in the Web of Science. The study categorises CSR into four areas: business ethics and corporate governance; management; marketing; and others. The first three categories were based on the Chartered Association of Business Schools’ Academic Journal Guide 2010 and 2015 (UK). Findings The findings reveal that 67.19 per cent articles have been published based on the ranked journals of Academic Journal Guide 2010 and 2015. The findings of the study will help to inform future areas of CSR. The top journals which published most articles from Academic Journal Guide 2015 are Journal of Business Ethics and Corporate Social Responsibility and Environmental Management. Practical implications The findings suggest that the remit of sustainability from Islamic perspective is wider. Islamic marketing, as an area, remains largely in need of empirical research. The business communities should successfully integrate Muslim communities into their marketing strategies. Originality/value To the best of the knowledge, this is the first study to explore citation analysis of general CSR literature and Islamic CSR. The study finds that there has been an increase in interest in this subject of CSR and Islam in the recent years. Future research is needed on theory and methodological analysis of general CSR field and Islamic CSR field.


2016 ◽  
Vol 6 (3) ◽  
pp. 1-22
Author(s):  
Nimruji Jammulamadaka

Subject area Corporate social responsibility, specifically nonprofit business collaborations from a nonprofit’s perspective. Study level/applicability Graduate level programs in nonprofit management, corporate social responsibility and development management; it can also be used for executive education. Case overview Social enterprises and nonprofits at present increasingly look to corporate firms for grant funds to finance their activities and assets. This case features the experiences of one of the largest nonprofit eye care providers in India, LV Prasad Eye Institute based in Hyderabad in accessing corporate financial support in the form of corporate social responsibility funding. The case deals with the organization challenges, stresses and strains that arise in a nonprofit–corporate partnership. Specifically, it focuses on the strategic and operational challenges that emerge from the partnerships. The partnerships reviewed in the case pertain to rehabilitation. Expected learning outcomes After solving the case, the participants will be able to understand the stages in developing collaborations between nonprofits and businesses for corporate social responsibility. They will also be able to understand the internal implications for nonprofits operations and strategy from such collaborations. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS11: Strategy.


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