Economic activity taking place within the informal sector—traditionally defined as activity unregulated by law but governed by custom or personal ties—represents an emerging frontier for management researchers with interests from alleviating poverty at the bottom of the economic pyramid to entrepreneurship, innovation, or organizational functioning in advanced knowledge economies. A substantial portion of the world's economic activity takes place informally, with many developing nations having more than one half of their output derived from the informal sector and the advanced economies witnessing an increase in informal economic activity. I review the literature in economics, sociology, political science and public policy, and management and show that defining the informal economy proves problematic; current definitions of the informal economy fail to converge around a unitary construct. I then use these disparities in the literature to generate a model of the informal economy clear enough to foster a di...

Toward a Theory of the Informal Economy

International government and corporate corruption is increasingly under siege. Although various groups of researchers have quantified and documented world-wide corruption, apparently no one has validated the measures. This study finds a very strong significant correlation of three measures of corruption with each other, thereby indicating validity. One measure was of Black Market activity, another was of overabundance of regulation or unnecessary restriction of business activity. The third measure was an index based on interview perceptions of corruption (Corruption Perceptions Index or CPI) in that nation. Validity of the three measures was further established by finding a highly significant correlation with real gross domestic product per capita (RGDP/Cap). The CPI had by far the strongest correlation with RGDP/Cap, explaining over three fourths of the variance.Corruption is increasingly argued to be a barrier to development and economic growth. Business students often do not see ethics courses as being as relevant as other value-free disciplines or core courses. The data in this study suggests otherwise. Sustainable economic development appears very dependent on a constant, virtuous cycle that includes corruption fighting, and the maintenance of trust and innovation, all reinforcing each other.

International Validation of the Corruption Perceptions Index: Implications for Business Ethics and Entrepreneurship Education

Purpose – The aim of this paper is to examine how corporations in India interpret corporate social responsibility (CSR). Focusing on four commonly known approaches: the ethical, the statist, the liberal, and the stakeholder approach, the paper seeks to investigate the reported drivers and barriers to implementing CSR practices.Design/methodology/approach – The paper surveyed top‐level managers of a sample of companies currently engaging in a CSR initiative, representing a variety of industry sectors.Findings – The study finds that the CSR approach that is most favored by Indian firms is the stakeholder approach and that the caring or the moral motive, followed by the strategic or profit motive, are important drivers for Indian firms to pursue CSR. Further, the results indicate that the most significant obstacles to CSR implementation are those related to lack of resources, followed by those related to the complexity and difficulty of implementing CSR.Research limitations/implications – The study focuses o...

Corporate social responsibility practices in India: approach, drivers, and barriers

We argue that the norms underlying agency theory can be inappropriate for interpreting the ethicality of corporate governance decisions and behaviors of Russians because they were developed in countries with mature market-oriented economies We posit that integrative social contracts theory has more explanatory power, taking into account two sets of often-conflicting values: traditional Russian values and market-oriented values We describe three examples of ethical conflict in Russian corporate governance arising from these two sets of values and discuss implications for Western managers interacting with Russians in this crucial area of business activity

Interpreting the Ethicality of Corporate Governance Decisions in Russia: Utilizing Integrative Social Contracts Theory to Evaluate the Relevance of Agency Theory Norms

Ethics and entrepreneurs: An international comparative study

Most of the features of modern Russian business are transient, determined by the transitional character of the Russian economy and drastic changes in the social structure, ideology, and consciousness of Russian society in general. There are three main normative experiences in the traditions of Russian business: a) the experience of pre-Revolutionary business, specifically developed and practiced by the merchants of the old-believers extraction; b) the experience of socialist economy, which was more or less oriented to the public good and presupposed selfless aspirations by the economic agents; c) the experience of legally and administratively constrained private business and illegal shadow business, which expected businessmen to be vigorous, industrious and enterprising. The process of privatization was developed under the aegis of state, specifically the state bureaucracy. The influence of changes in the social-economic system has been ambivalent for social morals. However, the reforms could stimulate their improvement. The recent development in the cultural environment of business testify to the emerging space of civilized business, which manifests that it is practically useful for businessmen to be ethical.

Business Ethics in Russia

Moral Constraints on War: Principles and Cases

Although Aristotle did not use the formula of the Golden Rule in his texts, in his intellectual constructions he often presented interpretations of the virtuous character and virtuous relationships that are clearly related to the Golden Rule. Furthermore, Aristotle’s considerations of shame, social interaction, and friendship show that his ethics is saturated with the content and spirit of the Golden Rule.

Whether the Golden Rule Is in Aristotle’s Ethics

In opposition to the absolutist ethics of non-violence, the author argues that in response to aggression and violence one has to use every means possible to prevent them. To resist violence is a moral duty of the individual. It would be desirable for violence to be prevented by strength of mind, but if strength of mind is not enough or the aggressor is insensitive to intellectual, spiritual and psychological impacts, one has to employ by accretion all necessary means. Ethics is called upon to set limits to the employment of the means of countering violence.

Ruben Apressyan

Papers

Business Ethics in Russia

Moral Constraints on War: Principles and Cases

Whether the Golden Rule Is in Aristotle’s Ethics

The Ethics of Force: Against Aggression and Violence

Towards Conceptualization of Morality in the Early Modern Philosophy