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Processes and consequences in business ethical dilemmas: The oil industry and climate changes

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This paper proposes a framework to examine business ethical dilemmas and business attitudes towards such dilemmas. Business ethical dilemmas can be understood as reflecting a contradiction between a socially detrimental process and a self-interested profitable consequence. This representation allows us to distinguish two forms of behavior differing by whether priority is put on consequences or on processes. We argue that these forms imply very different business attitudes towards society: controversial or competitive for the former and aligned or cooperative for the latter. These attitudes are then analyzed at the discursive level in order to address the question of good faith in business argumentation, i.e. to which extent are these attitudes consistent with actual business behaviors. We argue that consequential attitudes mostly involve communication and lobbying actions aiming at eluding the dilemma. Therefore, the question of good faith for consequential attitudes lies in the consistency between beliefs and discourse. On the other hand, procedural attitudes acknowledge the dilemma and claim a change of the process of behavior. They thus raise the question of the consistency between discourses and actual behavior. We apply this processes/consequences framework to the case of the oil industry’s climate change ethical dilemma which comes forth as a dilemma between ‘emitting greenhouse gases’ and ‘making more profits’. And we examine the different attitudes of two oil corporations-BP Amoco and ExxonMobil-towards the dilemma.

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  • Marc Le Menestrel & Sybille van den Hove & Henri Claude de Bettignies, 2001. "Processes and consequences in business ethical dilemmas: The oil industry and climate changes," Economics Working Papers 591, Department of Economics and Business, Universitat Pompeu Fabra.
  • Handle: RePEc:upf:upfgen:591
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    1. Velasquez, Manuel, 1992. "International Business, Morality, and the Common Good," Business Ethics Quarterly, Cambridge University Press, vol. 2(1), pages 27-40, January.
    2. Marc Le Menestrel, 2001. "Economic rationality and ethical behavior," Economics Working Papers 584, Department of Economics and Business, Universitat Pompeu Fabra.
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    Cited by:

    1. Jeremy Galbreath & David Charles & Des Klass, 2014. "Knowledge and the Climate Change Issue: An Exploratory Study of Cluster and Extra-Cluster Effects," Journal of Business Ethics, Springer, vol. 125(1), pages 11-25, November.
    2. Mieneke Koster & Ana Simaens & Bart Vos, 2019. "The Advocate’s Own Challenges to Behave in a Sustainable Way: An Institutional Analysis of Advocacy NGOs," Journal of Business Ethics, Springer, vol. 157(2), pages 483-501, June.
    3. Alexandros-Andreas Kyrtsis, 2011. "Insurance of Techno-Organizational Ventures and Procedural Ethics: Lessons from the Deepwater Horizon Explosion," Journal of Business Ethics, Springer, vol. 103(1), pages 45-61, April.
    4. Fuming Jiang & Tatiana Zalan & Herman H. M. Tse & Jie Shen, 2018. "Mapping the Relationship Among Political Ideology, CSR Mindset, and CSR Strategy: A Contingency Perspective Applied to Chinese Managers," Journal of Business Ethics, Springer, vol. 147(2), pages 419-444, January.
    5. Timo Busch & Volker Hoffmann, 2009. "Ecology-Driven Real Options: An Investment Framework for Incorporating Uncertainties in the Context of the Natural Environment," Journal of Business Ethics, Springer, vol. 90(2), pages 295-310, December.
    6. Cristina Besio & Andrea Pronzini, 2014. "Morality, Ethics, and Values Outside and Inside Organizations: An Example of the Discourse on Climate Change," Journal of Business Ethics, Springer, vol. 119(3), pages 287-300, February.
    7. Julian Rode & Marc Le Menestrel & Luk Van Wassenhove & Anthony Simon, 2015. "Ethical Analysis for Evaluating Sustainable Business Decisions: The Case of Environmental Impact Evaluation in the Inambari Hydropower Project," Sustainability, MDPI, vol. 7(8), pages 1-22, August.
    8. Jie Shen & Hongru Zhang, 2019. "Socially Responsible Human Resource Management and Employee Support for External CSR: Roles of Organizational CSR Climate and Perceived CSR Directed Toward Employees," Journal of Business Ethics, Springer, vol. 156(3), pages 875-888, May.
    9. Burkard Eberlein & Dirk Matten, 2009. "Business Responses to Climate Change Regulation in Canada and Germany: Lessons for MNCs from Emerging Economies," Journal of Business Ethics, Springer, vol. 86(2), pages 241-255, March.
    10. Heloïse Berkowitz & Marcelo Bucheli & Hervé Dumez, 2017. "Collectively Designing CSR Through Meta-Organizations: A Case Study of the Oil and Gas Industry," Journal of Business Ethics, Springer, vol. 143(4), pages 753-769, July.

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    More about this item

    Keywords

    Business ethical dilemma; procedural rationality; consequential rationality; oil industry; climate change; Kyoto protocol;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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