The Ethics of Business in Wartime

Alzola, Miguel

doi:10.1007/s10551-011-1167-4

Cited by 14 publications

(5 citation statements)

References 20 publications

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“…Martin-Ortega (2008) observes that the complexity of the conflict areas affects decisions: Managers have to take important decisions but have insufficient guidance on the consequences of their actions (social and legal). Alzola (2011) questions the ethics of business in wartime: what is considered to be legitimate or illegitimate is central and might create dilemmas, increased in a context of war blurring the situation. He insists on the difficulty of identifying a "legitimate government" and legitimate actors in war context where statehood might be limited, this legitimacy depending on the firm's interest and profit motive.…”

Section: Factors Impacting Strategies In Conflict Zonesmentioning

confidence: 99%

The Organization of Short-Sightedness: The Implications of Remaining in Conflict Zones. The Case of Lafarge during Syria’s Civil War

Belhoste

Nivet

2020

Business & Society

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This article analyzes the operations of the French group Lafarge in Syria during the civil war between 2011 and 2014, to understand the conflict-sensitive practices of a multinational company (MNC) in an area of limited statehood (ALS). We examine how and why the company decided to continue operating its plant in Syria during this intrastate conflict, resulting in financing terrorist groups like ISIS. We highlight the key operational and managerial decisions made by headquarters and local operations and relate them to the conflict situation in the ALS in question. We contribute, with the idea of the firm’s “organization of short-sightedness,” to the understanding of how strategic decisions may lead to a structural inability to fully comprehend the local dangers and the implications for the employees, and how this may lead to a redefinition of legitimate and illegitimate stakeholders in conflict zones. A drawn-out process, stemming from a willingness to stay at all cost in an ALS environment, leads to misinterpretation of the danger and an acute dependency on local stakeholders.

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Section: Factors Impacting Strategies In Conflict Zonesmentioning

confidence: 99%

The Organization of Short-Sightedness: The Implications of Remaining in Conflict Zones. The Case of Lafarge during Syria’s Civil War

Belhoste

Nivet

2020

Business & Society

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“…The ethical behavior in any given company according to are the opposite of unethical behavior and they have impact on the corporate governance of the organization. In fact Alzola (2011) argues that, the reputation of any organization is an important asset which should not be tempered with. As early as 1996, scholars had already started to examine the correlation which exists between the financial performance of an organization and the ethical behavior it portrays.…”

Section: Introductionmentioning

confidence: 99%

Influence of ethical behavior on Corporate Governance of firm’s performance in Ghana.

Kwakye

Kong

Ayamba

et al. 2018

int.jour.sci.res.mana

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This study aims at analyzing the influence which ethical behavior has on the corporate governance of firms performance in Ghana. The existing of ethical issues in business organizations and the general code of conduct which these companies are supposed to follow has brought about the need for researchers to assess their implications to the management of these firms. The findings in this study are essential in acknowledging the impact of ethical behavior on the management of the organization. This study has given us an in-depth understanding of the effects of ethical attributes such as ethical leadership and corporate governance to the overall financial development and performance of an firms in Ghana

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“…In the 21 st century, however, with the rise of corporate social responsibility, ESG reporting and the primacy of ethical standards over the desire for unconditional profitability, it is becoming increasingly difficult for companies to conduct business in the realities of war without damage to reputation. Today, the standard that increasing profits or attempting to create value at the expense of engaging in unjustifiable war and human rights violations is not morally justifiable (Alzola, 2011), should be considered unarguable. In the age of digitisation and rapid flow of information, as well as the high importance of value creation through effective investor relations (IR), stakeholders, especially investors, customers and those who identify themselves with a brand, absolutely expect companies to take clear and transparent positions on specific events, especially those of a drastic nature such as wars.…”

Section: Literature Reviewmentioning

confidence: 99%

Stay or Leave? How the Policy of Business Cooperation with Russia Affected Value and Price of Listed Companies: Evidence from Dow Jones, DAX and WIG20

Antonowicz,

Siciński

2023

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Theoretical background: The crisis situation in the aftermath of the military conflict triggered by Russia’s invasion of Ukraine has caused a significant reaction from financial markets. Not only the Russian RTSI index, but also the stock indexes of neighbouring countries (Poland, Germany), as well as the U.S. indices (NDX, US30, US500), declined in value in the following months of the war, which was a direct result of the declining capitalisation of their component companies. A team of Yale University researchers undertook a classification study on a group of more than 1,000 global companies, grouping them according to the strategy (business model) they adopted in the face of the response to Russian aggression against Ukraine. These groups were, in particular: (1) Grade F – defying Demands for Exit or Reduction of Activities: companies that are just continuing business-as-usual in Russia; (2) Grade D – Holding Off New Investments/Development: companies postponing future planned investment/development/marketing while continuing substantive business; (3) Grade C – Reducing Current Operations: companies that are scaling back some significant business operations but continuing some others; (4) Grade B – Keeping Options Open for Return: companies temporarily curtailing most or nearly all operations while keeping return options open; and (5) Grade A – Clean Break – Surgical Removal, Resection: companies totally halting Russian engagements or completely exiting Russia. This work provided the basis for an in-depth analysis of how financial markets (investors) reacted to companies that used extreme responses (completely breaking business ties with Russia as opposed to maintaining the existing business model and business ties with Russia). Depending on the adopted firm strategy, according to the Yale methodology, it can be observed that the impact of war on value was not uniform, and differences in value migration could be discerned. Purpose of the article: In the article, the authors undertook to evaluate the reaction of financial markets in the period 31 December 2021 – 30 September 2022 on the basis of three stock market indices: (1) the US (Dow Jones Industrial Average); (2) the German (DAX 40 – Deutscher Aktien Index); (3) the Polish (WIG 20 – Warsaw Stock Exchange Index) with a particular focus on the date: February 24, 2022, when Russia’s military aggression in the Ukrainian area began. The authors assessed how the volatility of the shares of selected companies in these indices evolved, and whether it was influenced by the social responsibility of the business conducted, as expressed by the severance of business relations with Russia, their periodic suspension or the lack of any response to the acts of war that began. Furthermore, a significant aim of the study was to assess the phenomenon of value migration in companies based on their business relationship strategies with Russia, classified according to the criteria upon which the Yale list was built. Research methods: Critical analysis of the literature on the subject, statistical analysis, technical analysis of stock index volatility, induction and synthesis. Main findings: In view of the object of research described in this way, in accordance with the idea accompanying the CSR policy, the following research hypothesis was adopted in the study: investment sentiment toward multinational corporations that, as a result of Russia’s aggression in Ukraine, ceased business contacts with Russia altogether, differs from investor sentiment toward those organisations that did not take such action and continued business/economic cooperation with Russia.

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The Ethics of Business in Wartime

Cited by 14 publications

References 20 publications

The Organization of Short-Sightedness: The Implications of Remaining in Conflict Zones. The Case of Lafarge during Syria’s Civil War

The Organization of Short-Sightedness: The Implications of Remaining in Conflict Zones. The Case of Lafarge during Syria’s Civil War

Influence of ethical behavior on Corporate Governance of firm’s performance in Ghana.

Stay or Leave? How the Policy of Business Cooperation with Russia Affected Value and Price of Listed Companies: Evidence from Dow Jones, DAX and WIG20

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