This article explains problems and opportunities created by standardized ethics initiatives (e.g., the UN Global Compact, the Global Reporting Initiative, and SA 8000) from the perspective of stakeholder theory. First, we outline differences and commonalities among currently existing initiatives and thus generate a common ground for our discussion. Second, based on these remarks, we critically evaluate standardized ethics initiatives by drawing on descriptive, instrumental, and normative stakeholder theory. In doing so, we explain why these standards are helpful tools when it (...) comes to ‘managing’ stakeholder relations but also face considerable limitations that can eventually hamper their successful expansion. We suspect that this discussion is necessary to conduct meaningful empirical research in the future and also to provide managers with a more clear-cut picture about a successful application of such initiatives. Third, we outline possible ways to cope with the identified problems and thus demonstrate how standard-setting institutions can improve the initiatives they offer. (shrink)

Numerous ethical theories have been proposed as a foundation of business ethics, and this often brings about appreciable perplexity. This article seeks to identify specific problems for a sound foundation of this discipline. A first problem is this multiplicity of ethical theories, each with its own metaethics, often accepted without a serious discussion of their philosophical grounds. A second problem is the fragmentation of theories; some centred on duties or obligations, others on consequences, virtues, or moral sentiments. In addition, some (...) theories focus on universal principles, while others take the singularity of each situation as their focal point. A third problem is that not every ethical theory covers the personal, organizational and societal dimensions of business ethics, and this introduces reductionism. These problems cannot be satisfactorily addressed through ‘ethical pluralism’, in which all theories are accepted, without falling into ethical relativism. ‘Ethical pragmatism’, which welcomes any ethical theory only on the basis of their practically, is also questioned. Furthermore, there is the problem of integrating ethics into business theory, which is often extrinsic to the economic function. After analysing these problems, the article concludes by exploring some proposals that might serve to build a sound and complete ethical theory which includes human goods (objective values), principles (or norms) and virtues. The necessity of reconsidering the human action for a closer integration of ethics into business theory is also suggested. (shrink)

ABSTRACT:The primacy of shareholder demands in the traditional theory of the firm has typically excluded marginalised stakeholder voices. However, shareholders involved in social shareholder engagement (SSE) purport to bring these voices into corporate decision-making. In response to ethical concerns about the legitimacy of SSE, we use the lens of discourse ethics to provide a normative analysis at both action and constitutional levels. By specifying three normative questions, we extend the analysis of SSE to identify a political role for shareholders in (...) pursuit of the common good. We demonstrate the desirability for SSE to promote regulatory/institutional change to guarantee marginalised stakeholders a voice in corporate decisions that affect them. The theory of SSE we propose thus calls into question the stark separation of the political and economic spheres and reveals an underlying tension, often overlooked, within the responsible investment literature. (shrink)

Addressing the critique that communication activities with regard to CSR are often merely instrumental marketing or public relation tools, this paper develops a toolbox of CSR communication that takes into account a deliberative notion. We derive this toolbox classification from the political approach of CSR that is based on Habermasian discourse ethics and show that it has a communicative core. Therefore, we embed CSR communication within political CSR theory and extend it by Habermasian communication theory, particularly the four validity claims (...) of communication. Given this communicative basis, we localize CSR communication as a main means to receive moral legitimacy within political CSR theory. A typology of CSR communication tools is advanced and substantiated by a review of case studies supporting the categories. Thus, we differentiate between instrumental and deliberative, as well as published and unpublished tools. Practical examples for the literature-derived tool categories are provided and their limitations are discussed. (shrink)

We critically assess integrative social contracts theory (ISCT) and show that the concept particularly lacks of moral justification of substantive hypernorms. By drawing on Habermasian philosophy, in particular discourse ethics and its recent application in the theory of deliberative democracy , we further advance ISCT and show that social contracting in business ethics requires a well-justified procedural rather than a substantive focus for managing stakeholder relations. We also replace the monological concept of hypothetical thought experiments in ISCT by a concept (...) of practical discourse to better govern business activities on the macro-level of organizational actors such as firms, governments, and NGOs. (shrink)

This article considers the relationship between business ethics and philosophy, specifically in relation to the field and persons working in it. The starting point is a grammatical one: business ethics by the rules of grammar belongs to ethics. In terms of academic disciplines, it belongs to applied ethics, which belongs to ethics, which belongs to practical philosophy, which belongs to philosophy. However, in the field of business ethics today one will seldom meet colleagues from philosophy; instead, they will come from (...) business, applying business studies perspectives, approaches, and increasingly quantitative methods. This article provides empirical evidence that today the three top journals with “business ethics” in their titles are mostly run by business scholars with PhDs in business. The article compares the three journals today with their inaugural issues and finds that at their inception all three were run by a majority of philosophers. The article discusses six possible explanations for this shift and provides suggestions for how to bring business ethics back to philosophers. (shrink)

Empirical moral psychology is sometimes dismissed as normatively insignificant because it plays no decisive role in settling ethical disputes. But that conclusion, even if it is valid for normative ethics, does not extend to bioethics. First, in contrast to normative ethics, bioethics can legitimately proceed from a presupposed moral framework. Within that framework, moral psychology can be shown to play four significant roles: it can improve bioethicists’ understanding of the decision situation, the origin and legitimacy of their moral concepts, efficient (...) options for implementing decisions, and how to change and improve some parts of their moral framework. Second, metaethical considerations suggest that moral psychology may lead to the radical revision of entire moral frameworks and thus prompt the radical revision of entire moral frameworks in bioethics. However, I show that bioethics must either relinquish these radical implications of moral psychology and accept that there are limits to progress in bioethics based on moral psychology or establish an epistemic framework that guides radical revision. (shrink)

Corruption within the private sector has often not been dealt with in Brazil. Organizations may find corrupt acts in its operations or practices, but specific concepts and programs to avoid them are neither concrete nor clear. Some Brazilian stockholders have become aware of the risks involved in unethical procedures and are adopting the Best Practices of Corporate Governance initiative. International agencies have intensively supported organizations and governments in an effort to define policies that inhibit illegal or corrupt cultural habits throughout (...) the world, but Brazilian practitioners show insufficient response. Skepticism may indicate a lack of understanding about how an ethical leadership can guide employees, setting high standards for the organizational culture and climate, clearly defining limits of correct behavior, and creating appropriate codes of ethics. Transparency still has to be discovered as a significant tool to encourage professionalism in performance and reporting of data in Brazilian companies. In this article, we analyze the ethical behavior of the purchasing department of a multinational company in its host country, Brazil. It focuses specifically on the supplier–buyer relationship. The results indicate that despite the negative reputation Brazilians have in business ethics, a company can still develop a positive and ethical relationship with its stakeholders. Communication, transparency, compliance with the company’s code of conduct as well as the supplier’s awareness of the buyer’s code of conduct are the factors which influence the supplier–buyer relationship. Transparency can be used as a tool to reduce corruption, thereby increasing ethical behavior and company image. Good ethical behavior can help to build up a company’s image. (shrink)

This paper investigates the potential contribution of sociological perspectives for business ethics teaching. After a brief and selective literature review, the paper suggests starting with sociological thinking and three aspects of it: sociological concepts, sociological imagination, and postponed judgment. After presenting two short case teaching stories and three sociological concepts or frameworks, the potential inspiration value of a sociological checklist for analysing or diagnosing business ethics cases is tried out. As an open ending, some short final suggestions are made for (...) further use of sociological perspectives in both business ethics teaching and research. (shrink)

ABSTRACT:This article aims to enhance understanding of employee anonymous online dissent (EAOD), a controversial phenomenon in contemporary digital environments. We conceptualise and scrutinise EAOD as a communicative and interactional process among four key actors: dissenting employees, online outlet administrators, audiences, and targeted organisations. This multi-actor, dialectical process encompasses actor-related tensions that may generate unethical consequences if single voices are not brought out and confronted. Appropriating a Habermasian ethical and discursive lens, we examine and disentangle three particular challenges emerging from the (...) EAOD process: lack of accountability and potential opportunism; equal participation and resolution of actor-related tensions; and organisational participation and internalisation of dissent. We show that EAOD can initiate plural dialogue that helps co-construct and balance different voices within an informal and noninstitutionalised context for interaction and public deliberation. We conclude our inquiry by offering reflections on practical implications and a research agenda for further investigation. (shrink)

Until recently, businesses and corporations could argue that their only real commitments were to maximise the return to their shareholders whilst staying within the law. However, the world has changed significantly during the last ten years and now most major corporations recognise that they have significant responsibility to local and global societies beyond simply making profit. This means that there is now an increasing concern with the question of how corporations, and their employees, ought to behave, and this leads us (...) to consider ethics as the appropriate theoretical and philosophical domain.I will bring into the debate two relatively recent approaches to ethics: Jürgen Habermas's discourse ethics ; and the critical realist approach of Roy Bhaskar. These are interesting for several reasons: they both draw on traditional ethical theories, although different ones; they bring in innovations of practical relevance; and they both share an over-arching critical perspective. After a critical introduction to both ethical theories, their similarities and differences are explored. The article ends by considering the extent to which they may be practically useful within business. (shrink)

After a selective review of relevant literature about teaching business ethics, this paper builds on a summary of Fred Bird’s thoughts about the voicing of moral concerns provided in his book about moral muteness. Socratic dialogue methodology is then presented and the use of this methodology is examined, for business ethics teaching in general, and for addressing our paper topic in particular. Three short form Socratic dialogues about the paper topic are summarized for illustration, together with preparation and debriefing suggestions (...) for a Socratic dialogue unit as part of a business ethics course. In conclusion, Socratic dialogue design is related to the experiential learning approach, and characterized by a few basic traits, which imply both risks and opportunities for business ethics teaching. (shrink)

This study examines the effects of individual ethical values and organizational factors on the professional ethics of PR practitioners in Korea by considering a person–situation interactionist model. Individual ethical values are used as individual factors, and organizational factors consist of an organization’s reward and punishment for ethical/unethical behavior, the behavior of peers, and the ethical integrity of the chief ethics officer. The professional ethics of PR practitioners (the dependent variable) are classified into the following three dimensions: professional ethics for the (...) public, the client, and the PR industry. The results indicate that agency practitioners were more likely to be committed to their profession than to their organization, whereas in-house practitioners were more likely to be committed to their organization than to their profession. That is, in-house practitioners showed weak professional commitment, indicating that they perceived themselves as employees, not as PR professionals. Organizational factors such as reward, punishment, and peers’ ethical behavior had considerable influence on the professional ethics of in-house practitioners, whereas they had little influence on agency practitioners. Organizational factors as well as individual ethical values were more likely to influence the professional ethics of in-house practitioners than that of agency practitioners. Thus, to foster in-house practitioners’ professional ethics and commitment, professional associations in the PR industry should make efforts to provide in-house practitioners with more information on the PR industry and more opportunities for interacting and maintaining communication with their colleagues in the industry. (shrink)

Die Idee, dass vor allem monetäre Anreize das Verhalten von Wirtschaftsakteuren in gewünschte Richtungen lenken und sogar dabei helfen können, durch Leistungssteigerung zusätzliche Wohlfahrtseffekte zu generieren, spielt in der politischen Ökonomie seit ihren Anfängen eine zentrale Rolle. Es spricht sogar einiges dafür, dass dieser Gedanke das verbindende Glied der Ökonomik als Gesellschaftstheorie im Gegensatz zu anderen gesellschaftstheoretischen Entwürfen ausmacht. Dennoch halte ich dieses Anreizargument aus normativer Perspektive für unterentwickelt, wie ich in Auseinandersetzung mit der Ökonomischen Ethik bzw. Ordnungsethik nach Karl (...) Homann und der Integrativen Wirtschaftsethik zeigen möchte. Weder gelingt es der Ordnungsethik nach Karl Homann, die Bedeutung von Anreizstrukturen hinreichend zu begründen, obwohl sie in Ansätzen wichtige Argumente formuliert. Noch gelingt es der Integrativen Wirtschaftsethik, die zentrale Rolle von Anreizstrukturen für die normative Theoriebildung überzeugend zurückzuweisen. Mir geht es nicht darum, den einen oder anderen wirtschaftsethischen Ansatz grundsätzlich zurückzuweisen, sondern vielmehr, auf Lücken in der Argumentation und sich daraus ergebende Forschungsfragen hinzuweisen. Vor diesem Hintergrund könnte es helfen, einen verwandten Diskurs aus der gegenwärtigen Gerechtigkeitstheorie in die Überlegungen mit einzubeziehen. Denn die grundlegende Idee der ökonomischen Gesellschaftstheorie einer Wohlfahrtssteigerung durch die gezielte Manipulation von Anreizstrukturen hat auch in der gegenwärtigen Gerechtigkeitstheorie ihre Wirkung entfaltet. In seiner Theorie der Gerechtigkeit hat John Rawls argumentiert, dass selbst Egalitaristen bestimmte Einkommensunterschiede zulassen müssen, wenn dadurch für Leistungsträgerinnen solche Anreize gesetzt werden, die gleichzeitig auch den Schlechtestgestellten zum Vorteil gereichen. Diese Argumentation ist von Gerald Cohen einer harschen Kritik ausgesetzt worden. Cohen behauptet, dass Rawls mit diesem Anreizargument seinen eigenen Egalitarismus unterläuft. Ich glaube, dass diese philosophische Diskussion des Anreizargumentes in der Gerechtigkeitstheorie für wirtschaftsethische Überlegungen relevant ist, obwohl sie innerhalb eines idealtheoretischen und egalitaristischen Bezugsrahmens geführt wird. Für diese Relevanz werde ich in vier Abschnitten argumentieren. In einem ersten Teil werde ich die Positionen der Ökonomischen Ethik von Karl Homann und der Integrativen Wirtschaftsethik von Peter Ulrich zur Rolle von Anreizen einführen und darlegen, warum ich beide Ansätze für normativ unterbestimmt halte. In einem zweiten Teil werde ich kurz die Argumentation von John Rawls und ausführlicher die Kritik von Gerald Cohen an dieser Position vorstellen. In einem dritten Teil werde ich einige Einwände gegen Cohen formulieren und die Notwendigkeit einer nichtidealen Theorie der Gerechtigkeit betonen. In einem vierten und abschließenden Teil werde ich vorschlagen, einen Teil der Wirtschaftsethik als nichtideale Gerechtigkeitstheorie zu verstehen und aus dieser Perspektive nur kurz andeuten, welche systematische Rolle dem Anreizargument zukommt. (shrink)

Contributions to stakeholder theory often do not systematically deal with the prioritization of stakeholder interests. An exception to this is Reed’s Habermasianapproach to stakeholder management. Central to Reed’s discursive approach is Habermas’s distinction between morality and ethics. Many authors in business ethics argue that, because of its distinction between morality and ethics, discourse ethics is well suited for dealing with the pluralism that characterizes modern society, but also mention complications with the application of this distinction. This paper taps into the (...) vivid debate in political philosophy on Habermas’s distinction between morality and ethics and, on this basis, further elaborates how stakeholder interests should be prioritized from the point of view of discourse ethics. It thus estimates the consequences of the objections against Habermas’s distinction for a discursive approach to the prioritization of stakeholder interests. The conclusion is that, although Habermas’s distinction is not as neat as it may seem, it is not fundamentally challenged and may be successfully applied in the prioritization of stakeholder interests. (shrink)

Although contract sugarcane farming is the most dominant and popular land use among farmers in Nzoia Sugarbelt, results from a 2007 study suggests that the intended goal of increasing farmers’ incomes seems to have failed. With a mean monthly income of Kenya Shillings 723 (US $ 10) from an average cane acreage of 0.38 hectares, it would be difficult for a household of eight family members to meet their basic needs and lead a decent life. Analysis of farmer statements showed (...) that up to 86% of the changes in net income were significantly determined by six cost variables as a group (i.e., acreage, tillage costs, seedcane costs, transport costs, yield, and farmer’s education level). Area under sugarcane had the greatest influence on net income whereby an increase in one hectare under cane would result in an increase of Kenya Shillings 110,427 in net income (per crop cycle of 21 months), holding other variables constant. This translates into Kenya shillings 5,258 per month (or 175 per day per household, or for a family of eight people—KES 22 or US $ 0.3) per member, which is far below the international standard of absolute poverty. Key net income depressors were tillage, seedcane, and transportation costs, all of which were determined by the company with no input from farmers. To bridge income gaps between the company and farmers in favor of sustainable community livelihoods, this paper argues strongly for the need to institutionalize Corporate Social Responsibility within the daily operations of the company particularly to address net-income depressors. Ten key building blocks for such a policy for Nzoia Sugar Company are suggested, based on farmers’ responses and ethical considerations. (shrink)

Business activity can be analyzed through a ‘risk awareness’ perspective and a ‘responsibility awareness’ perspective. However, risk and responsibility are actually interdependent. Risk-taking triggers responsibility issues and taking responsibility means risking being asked critical questions. This article suggests some first steps for combining these two perspectives conceptually. After several introductory illustrations showing how risk and responsibility issues are intertwined, the article looks separately each at risk and at responsibility. Then the argument that such perspectives could be usefully combined is elaborated (...) further from a theoretical angle and from a practical angle, by looking at various ethical issues and by presenting paradigmatic examples of balancing or sharing risk and responsibility related to leadership, to ERM and to insurance. (shrink)

This paper advocates inclusion of a wider set of ethical theories into the accounting canon. We find that the mainstream accounting curriculum does not adequately engage with non-Western ethical theories or contemporary Western ethical thought, as evidenced by the ethics content of core accounting texts and the International Federation of Accountants’ ethics publications. We suggest adopting a ‘thematic’ approach to teaching ethics as an integrated part of accounting curricula. This approach addresses two competing principles implicit in International Education Standard 4: (...) (i) that all accountants need to be educated to meet global ethical standards, and (ii) that teaching ethics should accommodate ethical traditions and practices that could vary between nations and cultures. The thematic approach we propose requires less additional space within existing accounting curricula and less additional preparation by accounting educators than the alternative approach of teaching substantive ethical theories from a sufficiently diverse range of cultures and traditions. The paper also provides exemplars of this thematic approach to teaching ethics in accounting. (shrink)