Any fundamental examination of managerial practices must consider a philosophical conundrum at the heart of market exchange. Economically, the opportunity for profit seems to demand somebody else’s loss, and ethically, we must not take advantage of others’ misfortune. In a market system involving a multiplicity of stakeholders, profit opportunities may arise in which relationships between winners and losers are distant, indirect, or even nonexistent; their motives are multivalent; and their market participation may be intentional or accidental. Reflecting two decades later (...) upon several cases arising from the 9/11/2001 terrorist attacks, this paper describes several examples of profiting from loss that demonstrate the ubiquity and variety of the problem. It also invokes numerous bodies of literature that demonstrate the inherent complexity and interdisciplinarity of the problem and the absence of determinative principles to answer the question of when it is justifiable to profit from loss. The paper positions casuistry, the ancient philosophical art of case analysis that resembles modern business pedagogy, as a complement to ethical theory. The Loss Agency-Division of Benefits framework developed in the paper demonstrates the value of philosophy to managerial practices when economic theory is insufficient for ethically classifying and evaluating forms of profiting from loss. (shrink)

Organisational Ethics could be more effectively taught if organisational agency could be better distinguished from activity in other group entities, and defended against criticisms. Some criticisms come from the side of what is called “methodological individualism”. These critics argue that, strictly speaking, only individuals really exist and act, and organisations are not individuals, real things, or agents. Other criticisms come from fear of the possible use of alleged “corporate personhood” to argue for a possible radical expansion of corporate rights e.g. (...) to claim a right to vote. Others say that if corporate businesses were persons, and judged as such, they would be sociopaths (Bakan 2004). Large corporate businesses are one kind of organisation, and if organisations were allowed to claim to be full persons, this would mean that the latter criticisms were valid. The proposed account goes between the horns of the above dilemma: impersonal aggregates or full persons. It avoids both the reductive individualism and expansive, full personhood account. It gives grounds for attributing and distributing praise and blame to organisations as whole complex entities, and to their parts. Primarily, responsibility belongs to Board incumbents within them, on the basis of their goals; their direction of the acts of the other main internal role incumbents, managers and staff, and enablers, in the role structure; their own ethical decision methods; the impact of their acts on external stakeholders like end-users, other players in the practice or local community, and on the state. These factors are picked out on the basis of a theory of meaning Aristotle’s theory of analogy of attribution, some architectonic features of his Philosophical Anthropology; and Neo-Aristotelian Virtue Ethics (NAVE). The paper expounds a quasi-person model of organisations, (QPM), previously described in this journal (Ardagh 2011, 2012, 2013). This model identifies functional similarities at three levels, between capacities within natural persons (NPs) on the one hand and the roles/ incumbents within the structure of organisational artificial/quasi-persons (APs on the other). In each entity, we find an architectonic direction, sub-ordered operational entities, and enablers (a DOE structure) in a communicative structure or reporting chain of authority. The common elements between natural persons (NP) and artificial persons (AP) and their ethically relevant attributes are captured in an acronym –GRAEOS. Both persons and organisations have a “top” entity capable of having/choosing worthwhile ethically permissible goals, G; of architectonically directing the use of capacities/repertoires or incumbents in designed architectonic roles, R, within a DOE-type structure, well or badly; of using ethical decision making procedures, E; of execution of good choices for the person or organisation in action, A, with good or bad impacts on others, or with others, O, in the context practice or domain; and of having good relations with the law and the state, S. Application to the 1989 Exxon Valdez disaster, and public sector organisations, is briefly discussed to illustrate the potential to deal with short or long case study narratives. (shrink)