Virtue ethics is widely recognized as one of three major approaches in contemporary moral philosophy and arguably the most influential normative theory in business ethics. Despite its rich pedigree in Western and Eastern philosophy, most work in contemporary virtue ethics is part of the Western tradition. The purpose of this Thematic Symposium is to foster dialogue between Western and Eastern conceptions of virtue in business and engage them with questions about the nature, justification, and content of the virtues in each (...) tradition. This Editorial offers a brief introduction to the problem, a summary of Western and Eastern varieties of virtue ethics, an overview of the six articles included in this Thematic Symposium, and a section with five common themes for further exploration and future collaborative research. (shrink)

The most popular measure of corporate reputation is the ranking of the most admired companies. But what exactly do we admire in people and firms of good reputation? This article is about the ethical dimension of corporate reputation. It integrates the trait approach in personality psychology and philosophical ethics to the study of reputation and related concepts as a way to account for the discontinuities between reputation at the individual and corporate levels under conditions of uncertainty. Through an examination of (...) the distinction between perceptions and grounding of reputation, the article also sheds light on the explanatory power of reputation concepts and critically appraises the possibility of character and organizational virtue. (shrink)

The notion that business organizations are akin to Aristotelian political communities has been a central feature of research into virtue ethics in business. In this article, I begin by outlining this “community thesis” and go on to argue that psychological research into the “just world fallacy” presents it with a significant challenge. The just world fallacy undermines our ability to implement an Aristotelian conception of justice, to each as he or she is due, and imperils the relational equality required for (...) shared participation in communities. In the final section, I offer a description of what Aristotelian community might look like within organizations, and some suggestions about how it may be possible to resist the challenge posed by the just world fallacy. (shrink)

In recent years, character traits in general and virtue-related concepts in particular have been of considerable interest to philosophers, psychological researchers, and practitioners in the business ethics field. Three approaches to character traits can be used to incorporate ethics into organizations: virtues, character strengths, and competencies. The aim of this article is to clarify the concept of character traits, or virtues, and provide a unified operational version of it for incorporation into management. To this end, we first discuss the analogy (...) among virtues, character strengths, and competencies. Then, we propose a list of moral competencies that can be implemented in competency-based human resource management. (shrink)

The goal of this paper is to examine the impact of leadership and promotion regulatory focus on employees’ willingness to engage in unethical pro-organizational behavior . Building from a person–situation interactionist perspective, we investigate the interaction of leadership style and how leaders frame messages, as well as test a three-way interaction with promotion focus. Using an experimental design, we found that inspirational and charismatic transformational leaders elicited higher levels of UPB than transactional leaders when the leaders used loss framing, but (...) not gain framing. Furthermore, followers’ promotion regulatory focus moderated this relationship such that the effect held for followers with low promotion focus, but not for individuals with high promotion focus. Our findings extend the understanding of UPB, offer theoretical mechanisms to explain when this behavior occurs, and contribute to leadership theory and research on ethical decision making. (shrink)

We present a comprehensive model that integrates virtues, values, character strengths and ethical decision making (EDM). We describe how a largely consequentialist ethical framework has dominated most EDM scholarship to date. We suggest that reintroducing a virtue ethical perspective to existing EDM theories can help to illustrate deficiencies in existing decision-making models, and suggest that character strengths and motivational values can serve as natural bridges that link a virtue framework to EDM in organizations. In conjunction with the more fully formulated (...) extant research on situational determinants, we present and discuss our model that introduces a virtue based orientation to EDM. (shrink)

Current frameworks on ethical decision-making process have some limitations. This paper argues that the consideration of moral competencies, understood as moral virtues in the workplace, can enhance our understanding of why moral character contributes to ethical decision-making. After discussing the universal nature of four moral competencies (prudence, justice, fortitude and temperance), we analyse their influence on the various stages of the ethical decision-making process. We conclude by considering the managerial implications of our findings and proposing further research.

Despite a growing body of research by management scholars to understand and explain failures in ethical decision making (EDM), misconduct prevails. Scholars have identified character, founded in virtue ethics, as an important perspective that can help to address the gap in organizational misconduct. While character has been offered as a valid perspective in EDM, current theorizing on how it applies to EDM has not been well developed. We thus integrate character, founded in virtue ethics, into Rest’s (1986) EDM model to (...) reveal how shifting attention to the nature of the moral agent provides critical insights into decision making more broadly and EDM specifically. Virtue ethics provides a perspective on EDM that acknowledges and anticipates uncertainties, considers its contextual constraints, and contemplates the development of the moral agent. We thus answer the call by many scholars to integrate character in EDM in order to advance the understanding of the field and suggest propositions for how to move forward. We conclude with implications of a character-infused approach to EDM for future research. (shrink)

ABSTRACT:The language of virtue is gaining wider appreciation in the philosophical, psychological, and management literatures. Ethicists and social scientists aim to integrate normative and empirical approaches into a new “science of virtue.” But, I submit, they are talking past each other; they hold radically different notions of what a virtue is. In this paper, I shall examine two conflicting conceptions of virtue, what I call the reductive and the non-reductive accounts of virtue. I shall critically study them and argue that (...) the non-reductive view is the best philosophical account of virtue and the only one that can account for the way we talk about virtue in business and in everyday life. We can only understand what it means to act virtuously through the examination of the attitudes, beliefs, desires, and inclinations of the virtuous agent. I shall illustrate the differences between the reductive and non-reductive accounts by considering the virtue of gratitude. (shrink)

This paper argues for an Aristotelian account of good leader as ethical and effective by outlining the ethical motivation and the constraints that moral luck imposes on effectiveness. This account of a good leader, which is grounded on practical wisdom, is assessed against the contemporary leadership debate by addressing the tension between the ethical and the effective and by contrasting the Aristotelian virtuous leader against the dominant contemporary types of leadership. My Aristotelian proposal of a virtuous leader relies on an (...) isomorphic relation between the ethical and political domains by proposing that as virtue is to vices rooted in calculation and desires, so the virtuous leader is to the calculative bureaucrat and the emotionally obsessed tyrant. (shrink)

This article provides an overview of the field of business ethics.

The article aims to provide a standpoint from which to critically address two broad concerns. The first concern surrounds a naïve view of mindfulness, which takes it as a given that it is a good thing to cultivate mindfulness and attendant qualities like compassion because these virtues are key to improving the quality of life and bettering effective decisionmaking within business. Yet the virtue of mindfulness has roots in religious and spiritual traditions, and the virtue of compassion is complex and (...) contextual; neither of these virtues operate in a vacuum. Nor do they function independently from other virtues and values. Reasonable people of goodwill possessing the virtues of mindfulness and compassion in good measure, may nevertheless strongly disagree about what the compassionate, mindful thing to do is, particularly in a business setting. It is, moreover, conceivable that intensively cultivating mindfulness and compassion could lead one to reject altogether the “dog-eat dog” culture of competitive business that draws upon selective features of mindfulness meditation that lie in the corporate comfort zone yet which are not especially countercultural from a religious or spiritual vantage point. The second concern is that Western virtue-based business ethics is largely confined to academic philosophical theories. As such, virtue-driven business ethics is often more centered around developing theoretical wisdom than developing “hard core” practical wisdom earned through yoga asanas, meditation, chanting, and breathing, whereas for contemplative practices the reverse is the case, with practical wisdom emphasized over theoretical wisdom. Accordingly, the article examines prospects for cross-fertilization between, on the one hand, mindfulness and compassion interpreted as virtues in Eastern contemplative practices, and on the other hand, mindfulness and compassion as interpreted within Western virtue-oriented business ethics. Illuminating a pathway for such interpretative cross-pollination calls for an appropriate conceptual frame of reference that the article organizes around a set of interconnected themes. The first theme is that mindfulness and compassion represent key virtues within contemplative practices. This indicates a promising touchpoint between Eastern and Western traditions: their respective focus upon character, inner states, intrinsic motivation, and self-improvement toward ethicality in the world. The second theme is that such virtues in Eastern contemplative practices, as well as character traits integral to Western virtue-oriented approaches, denote contested “normative-interpretive” concepts that engage philosophical debate rather than indisputable empirical-criterial concepts that can be taken at face-value. The third theme advocates moving beyond behaviorist and neuropsychological accounts of virtue, approaching character traits of Eastern contemplative practice and Western virtue ethics through nonscientific inquiry into normative interpretive questions concerning such virtues. This supports debate over competing views of the nature, purpose, cultivation, and cultural context of mindfulness, compassion, and other virtues – issues arising as mindfulness enters the business management sphere -- to be conducted on normative grounds. With the background conceptual framework established, the article presents key points about the prospects for cross-fertilization between virtue ethics and contemplative practice, and why it matters, with reference to business ethics. (shrink)

This paper challenges the “characterological” theory of racial injustice. This theory, widely held in corporate efforts to address race, simultaneously endorses a “structural” account of racism while advocating deeply individualistic remedies: challenging systemic racism, on this view, requires directing our energies inward toward our most ingrained habits and self-conceptions. I begin by reconstructing the characterological theory and its appeal. I then argue that it rests on questionable, if not untenable, cognitive assumptions. Instead of seeing racism as carried forth by agents’ (...) deeply internal characters, I argue that a structural account of racial domination is better served by understanding cognitive processes as externalized and conducted through our environments. Drawing on theories of the “extended mind” and distributed cognition, I offer an account of both structural racism’s persistence and individual racist actions, which is anchored in the environmental (and not characterological) manifestations of racial hierarchy. I conclude with the normative potential of business ethicists adopting the distributed cognition framework. (shrink)

One of the key debates about applying virtue ethics to business is whether or not the aims and values of a business actually prevent the exercise of virtues. Some of the more interesting disagreement in this debate has arisen amongst proponents of virtue ethics. This article analyzes the central issues of this debate in order to advance an alternative way of thinking about how a business can be a form of virtuous practice. Instead of relying on the paired concepts of (...) internal and external goods that define what counts as virtuous, I offer a version of speech act theory taken from Paul Ricoeur to show how a business can satisfy several aims without compromising the exercise of the virtues. I refer to this as a polyvalent approach where a single task within a business can have instrumental, conventional, and imaginative effects. These effects correspond to the locutionary, illocutionary, and perlocutionary dimensions of meaning. I argue that perlocution provides a way in which the moral imagination can discover the moral significance of others that might have not been noticed before, and furthermore, that for such effects to be practiced, they require appropriate virtues. I look at two cases taken from consultation work to thresh out the theoretical and practical detail. (shrink)

The purpose of this article is to explain the differences between neo-Aristotelian virtue and positive organizational virtuousness from the virtue ethics perspective. Most studies use virtues and virtuousness interchangeably. A few others try to explain their differences from the positive organizational science perspective. Although closely related, we believe that these two notions are not identical. If we understand neo-Aristotelian virtue correctly, then it cannot be judged exclusively on what is externally verifiable, as is the case with virtuousness. For these reasons, (...) we attempt our own differentiation, highlighting the gains and losses realized in the migration from neo-Aristotelian virtue to positive organizational virtuousness, and establishing guideposts to meaningfully combine the strengths of both concepts. (shrink)

Virtue ethics, the authors believe, is distinct and superior to other options because it considers, in the first place, which preferences are worth pursuing, rather than just blindly maximizing preferences, and it takes into account intuitions, emotions and experience, instead of acting solely on abstract universal principles. Moreover, virtue ethics is seen as firmly rooted in human biology and psychology, particularly in our freedom, rationality, and sociability. Work, business, and management are presented as vital areas for the development of virtues, (...) not the least with a view to human flourishing. We conclude by introducing the articles included in this special issue. (shrink)

Financial misconduct has come into the spotlight in recent years, causing market regulators to increase the reach and severity of interventions. We show that at times the economic benefits of illicit financial activity outweigh the costs of litigation. We illustrate our argument with data from the US Securities and Exchanges Commission and a case of investment misconduct. From the neoclassical economic paradigm, which follows utilitarian thinking, it is rational to engage in misconduct. Still, the majority of professionals refrain from misconduct, (...) foregoing economic rewards. We suggest financial activity could be reimagined taking into account intrinsic and prosocial motivations. A virtue ethics framework could also be applied, linking financial behavior to the quest for moral excellence and shared flourishing. By going beyond utilitarian thinking and considering alternative models, we offer a fuller account of financial behavior and a better perspective from which to design deterrence methods. (shrink)

This literature review systematically synthesizes studies that link consumer research to differences and similarities in virtue ethics between the East and the West, with a focus on early Chinese and ancient Greek virtue ethics. These two major traditions provide principles that guide consumer behavior and thus serve as a background to comparatively explain and evaluate the ethical nature of consumer behavior in the East and the West. The paper first covers Eastern and Western theoretical and normative approaches of virtue ethics (...) in the field of consumer research. The subsequent systematic literature review then synthesizes empirical works in this field. Since only a few papers adopt a cross-cultural consumer research perspective, one of the main aims of this review is to encourage scholars to pursue both theoretical and empirical cross-cultural consumer research on virtue ethics. To this end, the paper closes by suggesting some fruitful directions for future research to stimulate this relatively under-researched area. (shrink)

While there are companies whose codes of ethics state that mere appearance of unethical behavior by employees is morally unacceptable, this so‐called appearance standard has hardly received any attention in the business ethics literature. Using corporate integrity theory, this article explores the criteria that may explain how mere appearances of unethical behavior can arise (i.e., the presence of conflicts of interests, the entanglement of these interests, a reputation for lack of integrity, and deviant outcomes) and those that may make such (...) appearances morally unacceptable (i.e., foreseeability, avoidability, and seriousness). The article proposes remedies for preventing and resolving instances when mere appearance of unethical behavior is morally unacceptable. (shrink)

Building on dissatisfaction with current approaches that entail a superficial conception of the firm’s moral agency, this article has two broad theoretical underpinnings. First, it refers to the Catholic Social Thought’s view of the enterprise as a community of work, which leads to place stress on the possibility of creating ‘organizational humanizing cultures’ that revolve around the principles of human dignity and the common good and allow organizational members to flourish. Second, the article draws on the perspective of the sociologist (...) Philip Selznick to emphasize the key role of ‘institutional leadership’ in the formation and maintenance of a moral organizational character, also suggesting that these processes involve an influence on the development of employees’ moral identity conceived as a driver of moral agency. On these theoretical grounds, the article’s central argument is articulated by claiming that human resource management can provide essential support for the development of organizational humanizing cultures. In particular, it is highlighted how human resource management professionals may operate as institutional leaders who contribute to the embedding of moral identities in the organizational context. (shrink)

We offer a precautionary account of why business managers should proactively rethink about what kinds of automation firms ought to implement, by exploring two challenges that automation will potentially pose. We engage the current debate concerning whether life without work opportunities will incur a meaning crisis, offering an argument in favor of the position that if technological unemployment occurs, the machine age may be a structurally limited condition for many without work opportunities to have or add meaning to their lives. (...) We term this the axiological challenge. This challenge, if it turns out to be persuasive, leads to a second challenge, to which managers should pay special attention: the teleological challenge, a topic especially relevant to the broad literature about corporate purpose and governance. We argue that both the shareholder profit-maximization model and its major alternative, stakeholder theory, are insufficient to address the meaning crisis. Unless rebutted, the two challenges compel business leaders to proactively rethink the purpose of business for future society. Otherwise, businesses will be contributors to a major ethical crisis and societal externality in the coming society. (shrink)

Despite a long history in eastern and western culture of defining leadership in terms of virtues and character, their significance for guiding leader behavior has largely been confined to the ethics literature. As such, agreement concerning the defining elements of virtuous leadership and their measurement is lacking. Drawing on both Confucian and Aristotelian concepts, we define virtuous leadership and distinguish it conceptually from several related perspectives, including virtues-based leadership in the Positive organizational behavior literature, and from ethical and value-laden leadership. (...) Then, two empirical studies are presented that develop and validate the Virtuous Leadership Questionnaire, an 18-item behaviorally based assessment of the construct. Among other findings, we show that the VLQ accounts for variance in several outcome variables, even after self-assessed leader virtue and subordinate-rated social and personalized leader charisma are controlled. (shrink)

Care has increasingly been promoted as an element of successful management practice. However, an ethic of care is a normative theory that was initially developed in reference to intimate relationships, and it is unclear if it is an appropriate normative standard in business. The purpose of this review is to bridge the social scientific study of care with philosophical understandings of care and to provide a theoretical justification for care as a managerial value. We review the three different forms of (...) care advanced by the ethics literature: caring relations, organizational care, and care as a virtue. We compare these forms of care to the management litertature. In doing so, we integrate what has previously been a scattered, yet growing, body of research on care. Our review of the literature reveals that care has increasingly been studied in management in relation to an ethic of care. Yet, many of the properties of care have also played a role in other established research domains (e.g., leadership). We discuss and critique the management and ethics literatures on care, paying attention to areas of agreement or disagreeement between the two. We go on to provide a normative justification of care as a value in business. Finally, we close by suggesting directions for future research. (shrink)

This paper urges contemporary Business Ethicists to reconsider the relationship between habit and virtue in the light of recent debates between contemporary philosophers and scientists. Synthesizing insights from current Neuroscience, from twentieth century American Pragmatism and from nineteenth century French Aristotelianism, this emergent intellectual tradition proposes a dynamic account of habit’s embodiment which we will first describe and then advocate. Two recurring suggestions within this habit renaissance are of particular relevance to Business Ethicists: firstly, that there is a ‘plastic’ structure (...) pertaining to habit and, secondly, that there is a processual ‘double-law of habituation’. Taken together, these accounts of habit and habituation provide virtue ethicists with a basis for claiming analytic and pragmatic authority within applied ethics debates in general and within Business Ethics debates in particular. We develop this argument in three steps. Firstly, we elaborate upon why habits are said to be plastic and why the process of habituation is said to be characterised by a double-law. Secondly, we distinguish this account of habit’s relationship to virtue from, and where necessary defend it against, the influential articulations of the habit: virtue relationship provided by situationism, by deontology and by communitarianism, respectively. Finally, we draw practical lessons from the initial elaborations made in the argument’s first step, and the subsequent clarifications provided in its second step, by announcing seven characteristics of highly effective virtue habituation projects. (shrink)

The Confucian tradition, which places the virtue of ren or fellow feeling at its heart as a ‘gateway’ to the more concrete virtues of common Western parlance, offers a potential antidote to the excesses of a Western business ethics which, even after its recent academic reembrace of the Aristotelian tradition, in practice still too often instrumentalises virtue in the service of a ‘rational’ or ‘reasonable’ constraining of the profit motive. The deeper, intrinsic ‘ethos’ promised by a Confucian approach also finds (...) its echo in the West in the work of Hans Küng’s Weltethos project, led today on the business ethics front by Klaus Leisinger and Claus Dierksmeier. This paper explores a dilemma at the heart of the World Ethos movement seen from the twin peaks of the World Ethics Institute at Peking University and the Weltethos Institut at the University of Tübingen: namely, whether a business ethics culture accustomed to thinking in terms of CSR-esque lists of corporate values, virtues or principles can best be reformed via documents like the UN Global Compact, the 2010 Global Economic Ethic Manifesto, or even the UN Sustainable Development Goals, or whether a more radical, revolutionary quest for an inner ‘ethos’, to be lived and experienced by self-cultivating individuals engaged in business all over the world regardless of background, ought somehow to be undertaken parallel to these endeavours. The authors outline possible steps towards such a transformation of the management community’s understanding of virtue, without, however, dismissing the contribution of traditional, dilemma-oriented Western thinking about applied ethics in general, and business ethics in particular. (shrink)

This paper critically reviews and discusses the concept of organizational virtuousness as presented in positive organizational scholarship. It identifies Kim S. Cameron, David S. Bright, and Arran Caza as the most influential researchers within this field and portrays commonalities, differences, and inconsistencies among the various notions of organizational virtuousness offered in positive organizational literature throughout the last 15 years. While the commonalities refer to attributes, levels of analyses, outcomes, and methodology, the variances concern the locus of residence, the priority of (...) outcomes, indicators, supporting features and the virtues included in positive organizational virtuousness. The analysis further discusses the strengths and weaknesses of these differences and stresses the challenges which the POS movement needs to face in order to clarify its definition of organizational virtuousness and, maybe, converge on one unified meaning. Finally, these challenges are summarized and linked to future research proposals which offer potential ideas on how to further develop the concept of positive organizational virtuousness. (shrink)

As information technologies have become synonymous with progress in modern society, several ethical concerns have surfaced about their societal implications. In the past few decades, information technologies have had a value-laden impact on social evolution. However, there is limited agreement on the responsibility of businesses and innovators concerning the ethical aspects of information technologies. There is a need to understand the role of business incentives and attitudes in driving technological progress and to understand how they steer the ethics discourse on (...) technology. In the information technology industry, there is an observed trivialization of ethics supported by a business driven and technology-centric approach to ethics. This trivialization rests on hardened beliefs, ideologies, and arguments which hint at reduced accountability for business and tend to individualize social responsibility. The phenomenon of ethics trivialization needs to be duly addressed to resolve the tensions between business needs and ethical concerns. This paper has identified from literature and conceptually analyzed the beliefs and ideologies underlying ethics trivialization which undermine ethics in business contexts. The paper has attempted to address the business concerns indicated by this phenomenon as well as highlight the weaknesses of its assumptions, rhetoric, and justifications. The aim of this paper is to systematically present the justifications in favor of and against the practice of ethics trivialization in the information technology domain, thereby highlighting the need to develop frameworks for assessment of ethical responsibility, accountability, and democratization of the value trade-offs involved in the design of technologies. (shrink)

Virtue ethical inspired approaches to practical and professional ethics have long been endorsed across various disciplines. Journalistic ethics is no exception. Call such approaches Virtue Ethical Journalism (VEJ). Virtue ethics has also drawn considerable attention from the field of moral psychology, though not all of it is supportive. Among the critics, some take the view that character traits and virtues are not effective enough in guiding people’s behavior. As a result, they conclude that traits should be minimized in ethical thought. (...) Call this stronger view character skepticism. VEJ has taken character skepticism seriously. Many responses to character skepticism defending VEJ, however, raise similar points as those that defend a more general theory of virtue ethics from such skepticism. I argue, however, that such responses to character skepticism are not up to the task of defending VEJ. Accordingly, VEJ would benefit from novel responses to character skepticism or significant revision. (shrink)

The financial crisis has led to calls for increased regulation of the financial sector. In many respects this is uncontroversial because increased regulation should promote the behaviours we want to see, while limiting the behaviours we do not. This article takes issue with the idea that regulation, and guidelines, promote ethical behaviour in the way that we want them to. Firstly, judgement is often required to implement guidelines and regulations, which allows room for unethical behaviour. Secondly, we want financial professionals (...) to behave ethically even when there are significant incentives not to; so, verifying compliance with regulations and guidelines when such incentives are absent isn’t a good gauge of the ethical status of financial professionals. -/- The example of the valuation of the assets (Net Asset Value) of hedge funds illustrates these issues well. There are many rules governing how NAVs should be calculated, and while we can verify that a fund is abiding by the rules, the ability to manipulate the NAV remains. Furthermore, the incentive to do so is often only present during a crisis (usually to understate losses). Therefore, verifying compliance during ‘normal’ times is of little help in judging whether a manager will behave ethically when we most need him to. I first argue that the gap between compliance with regulations and ethical behaviour is best filled by the adoption of a virtue ethics approach, as discussed by Spalding & Oddo (2011), and Graafland & van de Ven (2011). I then discuss the implications of adopting such an approach for the financial industry’s codes of conduct, such as the CFA Institute’s ‘Code of Ethics and Standards of Professional Conduct’. Adopting a virtue ethics perspective would require a significant change in the emphasis of such codes. (shrink)