After the approval of a code of ethics, the creation of a permanent board‐level ethics committee is the next step in the institutionalization of business ethics. This study explores how the board's structure and demographic characteristics explain the decision to form an ethics committee. The analysis is based on the constituents of the Standard and Poor's Europe 350 index. Consistent with our hypotheses, we find that ethics committees are more likely to be found in firms with a lower presence of (...) executive directors and of directors holding MBA degrees. However, we also observe that boards chaired by executive directors seem to favor the creation of an ethics committee. Additionally, as we had anticipated, firms with stronger agency conflicts seem to be more willing to create committees. The analysis conducted with segmented samples reveals that the model has greater explanatory power when applied to firms from common‐law and French civil‐law countries than when applied to firms from the German–Scandinavian civil‐law area. Finally, our results indicate that a firm's country of origin is a more influential factor in explaining the decision to create an ethics committee than the industry to which it belongs or even the magnitude of its agency conflicts. (shrink)

ABSTRACT:The distinction between what I call nonelective obligations and discretionary obligations, a distinction that focuses on one particular thread of the distinction between perfect and imperfect duties, helps us to identify the obligations that carry over from principals to agents. Clarity on this issue is necessary to identify the moral obligations within “shareholder primacy”, which conceives of managers as agents of shareholders. My main claim is that the principal-agent relation requires agents to fulfill nonelective obligations, but it does not always (...) require discharging discretionary obligations. I show that the requirement to fulfill nonelective obligations is more far-reaching than has been acknowledged by most defenders and critics of shareholder primacy. But I also show that managers are not bound by certain discretionary obligations like charity, showing that their moral obligations are more circumscribed than the obligations that apply to human beings in general. (shrink)

Abstract:Extrapolating from Carroll’s four domains of corporate social responsibility (1979) and Pyramid of CSR (1991), an alternative approach to conceptualizing corporate social responsibility (CSR) is proposed. A three-domain approach is presented in which the three core domains of economic, legal, and ethical responsibilities are depicted in a Venn model framework. The Venn framework yields seven CSR categories resulting from the overlap of the three core domains. Corporate examples are suggested and classified according to the new model, followed by a discussion (...) of limitations and teaching and research implications. (shrink)

ABSTRACT:There is considerable overlap between the interests of business ethicists and those of political philosophers. Questions about the moral justifiability of the capitalist system, the basis of property rights, and the problem of inequality in the distribution of income have been of central importance in both fields. However, political philosophers have developed, especially over the past four decades, a set of tools and concepts for addressing these questions that are in many ways quite distinctive. Most business ethicists, on the other (...) hand, consider their field to be primarily a domain of applied ethics, and so adopt methods and conceptual frameworks developed by moral philosophers. In this paper, we discuss some of the salient differences between these two approaches, and suggest some ways in which business ethicists could benefit from taking a more “political philosophy” approach to these questions. Throughout, we underline the importance of seeking greater compatibility among the principles used in normative theorizing about markets, regulations, corporate governance, and business practices. (shrink)

Stakeholder theory is widely accepted but elementary aspects remain indeterminate as the term ‘stakeholder’ is an essentially contested concept, being variously describable, internally complex and open in character. Such contestability is highly problematic for theory development and empirical testing. The extent of essential contestability, previously unknown, is demonstrated in this paper through a bounded systematic review of 593 different stakeholder theory definitions. As an essentially contested concept, the solution does not lie in a universal stakeholder definition, but in debating the (...) boundaries of stakeholder identification. To this end, this paper presents the first major attempt at sorting, filtering and ordering stakeholder theory and stakeholder definitions to produce a comprehensive, multi-dimensional classification of stakeholder theory. The constructs of the classification model juxtapose existing stakeholder theories and contributions from across the multi-contextual applications of stakeholder theory, thereby providing an invaluable overview of what we know about stakeholder theory in one model. The classification model is then tested with positive results. The paper concludes with a comprehensive discussion of the implications of classification stakeholder theory definitions, which has for future research. (shrink)

In a previous essay (Sison and Fontrodona 2012), we defined the common good of the firm as collaborative work, insofar as it provides, first, an opportunity to develop knowledge, skills, virtues, and meaning (work as praxis), and second, inasmuch as it produces goods and services to satisfy society’s needs and wants (work as poiesis). We would now like to focus on the participatory aspect of this common good. To do so, we will have to identify the different members of the (...) firm as a community, drawing from corporate citizenship literature and stakeholder theory. Afterward, we will explore both the manner and the intensity of these different members’ participation and its impact on the firm’s common good. (shrink)

ABSTRACT:This manuscript develops the concept of organizational virtue orientation (OVO) and examines differences between family and non-family firms on the six organizational virtue dimensions of Integrity, Empathy, Warmth, Courage, Conscientiousness, and Zeal. Using content analysis of shareholder letters fromS&P 500companies, our analyses find that there are significant differences between family and non-family firms in their espoused OVO, with family firms generally being higher. Specifically, family firms were significantly higher on the dimensions of Empathy, Warmth, and Zeal, but lower on Courage. (...) Based on these findings we further develop the OVO concept through the discussion of implications and areas for future research. (shrink)

Loyalty is a much-discussed topic among business ethicists, but this discussion seems to have issued in very few clear conclusions. This article builds on the existing literature on the subject and attempts to ground a definite conclusion on a limited topic: whether, and under what conditions, it makes sense for an employee to offer loyalty to his employer. The main ways in which loyalty to one’s employer can contribute to human flourishing are that it makes the employee more trustworthy and (...) therefore more valuable as an employee; makes it easier to form authentic relationships in other areas of the employee’s life; expands the employee’s field of interests and gives her or him a richer identity; provides greater motivation for the employee’s work; makes it possible to have a greater unity in the employee’s life; improves the performance of the organization for which the employee works; contributes to the protection of valuable social institutions; and, in so far as many employees share an attitude of loyalty towards the organization which employs them, it becomes possible for this organization to become a true community. Last, but not the least, loyal relationships have an inherent value. The article also reviews the main arguments that have been offered against employee loyalty and concludes that none of them offers a reason why it would be inappropriate in all cases for an employee to be loyal to her or his employer. The force of these arguments depends on the specific attributes of the organization for which the employee works. The main conclusion of the article is that while being a loyal employee involves risk, it has the potential to contribute significantly to the employee’s fulfilment. The main challenge for employees is to identify employers who are worthy of being loyal to. (shrink)

Abstract:This article suggests that there are individual differences in how people define important moral values, and that these differences are made manifest in differences in the situations. It identifies five dimensions along which individuals can differ in their understandings of values: 1)value category(where the value lies in the hierarchy), 2)agent(how voluntary the action is and whether it is morally required of the agent), 3)object(how close the self is to the object of the action; whether the action offends God) 4)effect(whether the (...) effect of the action is to harm or help), and 5)intention(whether the intention of the action is to harm or help). It then addresses four important values entailing moral dimensions: respect for life, respect for property, honest communication, and respect for religion. The article suggests that empirical research, classroom teaching, and business practice can be strengthened by considering these dimensions. (shrink)

Individualized customer information is at the heart of on-line commerce. Using increasing amounts of customer-specific data enhances the success and value of one-to-one on-line marketing; but the extensive gathering and use of data specific to individuals also causes alarm over the loss of digital privacy, setting up a confrontation between e-commerce and society. Governments and nations, particularly in Europe, have reacted with a reliance on sweeping laws governing digital privacy protection while other nations such as the U.S. have generally preferred (...) to allow companies and industry associations to regulate themselves. This tenuous balance is under attack from both sides. In this paper, we set up a framework which incorporates the environmental context, ethical perspectives and firm-specific considerations to help firms develop a strategy for handling digital privacy concerns. (shrink)

The employment of foreign workers is one of the most crucial problems today in the domain of work relations. Absorbing workersfrom abroad poses serious questions concerning the moral obligations of the employers as well as the government authorities in the migrantreceiving country. Unfortunately, the moral dilemmas of foreign labor have been largely neglected by business ethics researchers. This paper develops a conceptual framework based on the multinational corporation (MNC) ethical research to help examine the moral obligations of employers and states (...) toward foreign workers, as opposed to citizens. The main argument is that domestic employers, who have the power to affect crucial aspects in the lives of migrant workers, incur obligations to these people and bear moral responsibility for their subsistence. As regards the host country in a universal social order based on the existence of nation-states, the employment of foreign workers poses a genuine ethical dilemma between two valid moral duties: the duty to improve the welfare of nationals and the duty to promote the interests of everyone, regardless of their nationality. (shrink)

Expectations and possibilities for employee loyalty are shifting rapidly, particularly in the for-profit sector. I explore the natureof employee loyalty to the organization, in particular, those elements of loyalty beyond the notion of the ethical demands of employeeloyalty. I consider the moral significance of loyalty for the employee and whether the development of ties of loyalty to the workorganization is in fact a good thing for the employee or for the employer. I argue that employees have a natural inclination to (...) extendloyalty to the organization and that organizations consequently have an obligation to make clear to employees the degree to which theorganization will recognize and reward employee loyalty. (shrink)

Abstract:This article argues that the important organizational values to study are organizational moral values. It identifies five moral values (honest communication, respect for property, respect for life, respect for religion, and justice), which allow parallel constructs at individual and organizational levels of analysis. It also identifies dimensions used in differentiating organizations’ moral values. These are the act, actor, person affected, intention, and expected result. Finally, the article addresses measurement issues associated with organizational moral values, proposing that content analysis is the (...) appropriate measurement technique to be used for an organization-level conception of moral values. (shrink)

Are corporate codes of ethics necessarily ethical? To challenge this notion, an initial set of universal moral standards is proposed by which all corporate codes of ethics can be ethically evaluated. The set of universal moral standards includes: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship. By applying the six moral standards to four different stages of code development (i.e., content, creation, implementation, administration), a code of ethics for corporate codes of ethics is constructed by (...) which companies can be ethically audited for compliance. The newly proposed code of ethics for corporate codes of ethics was then applied to four large Canadian companies representing a variety of industries: telecommunications; banking, manufacturing, and high technology. The ethical audit of the four companies' ethics programs based on the proposed code indicates that all four companies have room to improve the ethical nature of their codes of ethics (i.e., content, creation, implementation, administration). (shrink)

Although the individual journalist is an essential unit of ethical agency, journalists are increasingly employees of large companies or corporations whose primary aim is to maximize returns to shareholders. Consequently, many, perhaps most, of the ethical dilemmas journalists face begin with the inherent conflict between the individual's role as a journalist and his or her employer's quest for profit. My underlying argument in this article is that this situation is not unique, that other fields are confronting similar dilemmas, and consequently, (...) journalism may have much to learn from them. In the article I contend that business and journalism ethics, in particular, appear to have more in common than has generally been acknowledged and that the field of business ethics has yielded many concepts that appear to have relevance to journalism. In the article, I conclude that considering the insights offered by those who operate from the perspective of business ethics will facilitate analysis of the interface between individual journalists and the corporate forces that affect so many of them. (shrink)

The authors propose the integrity capacity construct with its four dimensions (process, judgment, development and system dimensions) as a framework for analyzing and resolving behavioral, moral and legal complexity in business ethics' issues at the individual and collective levels. They claim that moral progress in business comes about through the increase in stakeholders who regularly handle moral complexity by demonstrating process, judgment, developmental and system integrity capacity domestically and globally.

Following on from work on stakeholder identification, this paper constructs a typology of stakeholder theories based on the extent to which serving the interests of non-shareholders relative to those of shareholders is accepted as a responsibility of companies. A typology based on the division of stakeholder theories into normative, descriptive, and instrumental is rejected on the grounds that the latter two designations refer to second order theories rather than divisions within stakeholder theory and the first is a designation which, for (...) the purposes of business ethics, applies to all stakeholder theories. The crucial distinction between stockholder and stakeholder theory is argued to be their respective rejection and acceptance of role-specific responsibilities toward non-shareholders that are `ultimate objective fulfilling''. From this starting point, a typology is constructed using a division of stakeholder theories into those which do and do not give priority to the interests of shareholders over those of non-shareholders, do and do not posit perfect duties towards non-shareholders as well as shareholders, do and do not accept accountability to non-shareholders as well as shareholders. (shrink)

Turbulent changes in the American business landscape over the past several years present a potentially ominous future for our society. The confluence of corporate downsizing, declining unionism and the surging preference for hiring part-time/temporary workers poses a threat to the very existence of our blue-collar middle class. Furthermore, when these conditions are juxtaposed against prevailing corporate rhapsodies to employee participation programs and a teamwork approach to quality improvement, the scenario becomes absurd.Solutions to the societal and workplace problems we face require (...) both ethical and practical attention. This paper examines current labor-management hostilities from the Mutual Trust perspective on morality. Furthermore, I propose a strategic internal marketing framework as one mechanism for trust-building at the labor-management frontier. The premise for the study is that as a society we will be better off with the system of checks and balances which labor unions can provide; that positive business performance will result from cooperative rather than adversarial relations; and that to be a premier player in the global economy, we must replace worker cynicism and detachment with hope. (shrink)

Sexual harassment is a problem for many organizations. Organizations must understand that sexual harassment lies within the broader context of sex discrimination and inequality of opportunity in the workplace. Sexual harassment is both an illegal and unethical practice. Companies need to implement a policy which respects the rights of individual employees by prohibiting sexual harassment. This policy need to be clearly stated in the company Code of Ethics and enforced rigorously.

This paper focuses on the 1986 Amendments to the False Claims Act of 1863, which offers whistle-blowers financial rewards for disclosing fraud committed against the U.S. government. This law provides an opportunity to examine underlying assumptions about the morality of whistle-blowing and to consider the merits of increased reliance on whistle-blowing to protect the public interest. The law seems open to a number of moral objections, most notably that it exerts a morally corrupting influence on whistle-blowers. We answer these objections (...) and argue that the law is not objectionable on these grounds. Since there are no compelling moral objections to the law, it is appropriate and acceptable to judge the law in terms of its economic costs and benefits. We assess the most salient of these and conclude that the benefits outweigh the costs. We suggest that a mechanism similar to the Act should be considered for protecting stockholders’ interests in the private sector. We conclude by making several proposals for improving the existing legislation. (shrink)

Despite many twenty-first century efforts to minimize corporate corruption, initiatives taken by local governments, global organizations, academic institutions, or the corporate world itself, it is clear that corporate corruption is perpetuating itself. In this paper, I apply the Aristotelian concept of “akrasia” (moral weakness) in order to provide an interpretation of corporate corruption as an act of moral failure and misapprehension of the right thing to do, if not an act of wickedness, which originates with lack of integrity. By utilizing (...) Aristotle’s philosophical framework, I attempt a redefinition of integrity not only with reference to the Aristotelian moral and intellectual virtues but also with a combination of theoretical and practical wisdom, that is, a connection between theory and action, definitive of moral consistency. Through this interpretation, I also wish to further emphasize the need for a philosophical background of contemporary managerial practices for a more effective countering of corporate corruption. (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)

In this study, we aim to investigate how multinational corporations (MNCs) balance ethical pressures from both the home and host countries. Drawing on theories from institutional theory, international business, and business ethics, we build a theoretical framework to explain the ethical behavior of MNCs. We apply the institutional logic concept to examine how MNCs with established logics and principles that have grown in the home country respond to local ethical expectations in the host country. We differentiate the core values from (...) the peripheral components of a MNCs institutional logic and propose that a MNC will pursue distinctive ethical strategies under different scenarios and choose the "right" configuration of core values and peripheral components that align with institutional environment in host countries. (shrink)

“Responsibility” in Chinese consists of two words: “ze” and “ren” . In modern Chinese, although the two words “ze” and “ren” are mostly used as one word, people can still discern the close relationship between ze and right and between ren and the duty associated with a position or a power. In modern life, however, there is a serious problem with these historically close, key relationships. This paper raises the crucial question: how should we understand and deal with the separation (...) of freedom from responsibility, right from obligation, and duty from power, particularly within China? The first part of the paper investigates the understanding of responsibility and concepts of duty, obligation, right, and power in the Chinese context. The second part analyzes the key issues of responsibility associated with the expansion of rights and powers in today’s China. The concluding part explores agents’ responsibilities on different levels and offers suggestions on how to cultivate responsibility as part of a systematic moral education. (shrink)

ABSTRACT:This manuscript develops the concept of organizational virtue orientation (OVO) and examines differences between family and non-family firms on the six organizational virtue dimensions of Integrity, Empathy, Warmth, Courage, Conscientiousness, and Zeal. Using content analysis of shareholder letters fromS&P 500companies, our analyses find that there are significant differences between family and non-family firms in their espoused OVO, with family firms generally being higher. Specifically, family firms were significantly higher on the dimensions of Empathy, Warmth, and Zeal, but lower on Courage. (...) Based on these findings we further develop the OVO concept through the discussion of implications and areas for future research. (shrink)

Despite the fact that business people and business students often cast doubt on the relevance of universal moral principles in business, the rejection of relativism is a precondition for business ethics to get off the ground. This paper proposes an educational strategy to overcome the philosophical confusions about relativism in which business people and students are often trapped. First, the paper provides some conceptual distinctions and clarifications related to moral relativism, particularism, and virtue ethics. More particularly, it revisits arguments demonstrating (...) that virtues in business are not in contradiction with the relevance of universal principles, despite the fact that virtue ethics is often identified with particular relationships and contexts. It goes on to show how students and managers, but also researchers, often mix up radically different conceptions of moral relativism. It is also argued that this confusion is in part created by the cross-cultural management literature in which the methodological stance of the value-freedom of the social sciences is, in a perplexingly mistaken way, transformed into a rejection of all normative discussion and a plea for relativism. The remainder of the paper presents some tools that may be helpful in steering people toward less simplistic views about moral relativism and virtue ethics. It further argues that it is equally important to spell out that moral universalism can be understood in a humble way, without implying either arrogant ethnocentrism or omniscience, as part of an ongoing debate that progresses gradually. (shrink)

The evaluation of new theories and pedagogical approaches to business ethics is an essential task for ethicists. This is true not only for empirical and applied evaluation but also for metatheoretical evaluation. However, while there is increasing interest in the practical utility and empirical testing of ethical theories, there has been little systematic evaluation of how new theories relate to existing ones or what novel conceptual characteristics they might contribute. This paper aims to address this lack by discussing the role (...) of metatheorising in assessing new approaches to ethics. The approach is illustrated through evaluating a new pedagogy and curriculum for ethics education called Giving Voice to Values (GVV). Our method involves identifying a number of metatheoretical lenses from existing reviews of ethical theories and applying these to examine GVV’s conceptual elements. Although GVV has been explicitly presented as a pedagogy and teaching curriculum, we argue that it has the potential to contribute significantly to the development of ethical theory. We discuss the general implications of this metatheoretical method of evaluation for new approaches to business ethics and for GVV and its future development. (shrink)

Whistle blowing programs have been central to numerous government, legislative, and regulatory reform efforts in recent years. To protect investors, corporate boards have instituted numerous measures to promote whistle blowing. Despite significant whistle blowing incentives, few individuals blow the whistle when presented with the opportunity. Instead, individuals often remain fallaciously silent and, in essence, become passive fraudsters themselves. Using the fraud triangle and models of moral behavior, we model and analyze fallacious silence and identify factors that may motivate an individual (...) to rationalize fallacious silence. We use a survey of graduate accounting students to test hypothesized factors that contribute to fallacious silence rationalizations in an academic setting. We find evidence that the ability to rationalize fallacious silence is related to community influences and personal traits such as awareness and moral competence. (shrink)

Businesses increasingly assume political roles, despite issues of legitimacy. The presented two case studies illustrate how businesses harness their political influence in Corporate Social Responsibility (CSR) practices through collaboration and dialog with stakeholders and civil society actors. These cases are set around issues arising in global supply chains in sourcing activities where the core problem is associated with businesses managing extended responsibilities under conflicting institutional conditions. The article seeks to provide empirical examples of Political CSR and illustrates the role of (...) deliberative democracy in contemporary business behavior. It adopts a Western business perspective, more specifically from an end-producer and retailer’s standpoint. Findings suggest that civil society is influential in driving these businesses to act responsibly. Joint collaboration is understood as key to strive toward holistic solutions. Political CSR theory remains an ideal, but offers fruitful grounds for speculating on what the political role of business is or could be and how this translates into pragmatic implications for businesses. (shrink)

Changes in modern societies originate the perception that ethical behaviour is essential in organization’s practices especially in the way they deal with aspects such as human rights. These issues are usually under the umbrella of the concept of social responsibility. Recently the Report of the International Bioethics Committee of UNESCO on Social Responsibility and Health has addressed this concept of social responsibility in the context of health care delivery suggesting a new paradigm in hospital governance. The objective of this paper (...) is to address the issue of corporate social responsibility in health care, namely in the hospital setting, emphasising the special governance arrangements of such complex organisations and to evaluate if new models of hospital management (entrepreneurism) will need robust mechanisms of corporate governance to fulfil its social responsiveness. The scope of this responsible behaviour requires hospitals to fulfil its social and market objectives, in accordance to the law and general ethical standards. Social responsibility includes aspects like abstention of harm to the environment or the protection of the interests of all the stakeholders enrolled in the deliverance of health care. In conclusion, adequate corporate governance and corporate strategy are the gold standard of social responsibility. In a competitive market hospital governance will be optimised if the organization culture is reframed to meet stakeholders’ demands for unequivocal assurances on ethical behaviour. Health care organizations should abide to this new governance approach that is to create organisation value through performance, conformance and responsibility. (shrink)

Theories of business ethics or corporate responsibility tend to focus on justifying obligations that go above and beyond what is required by law. This article examines the curious fact that most business ethics scholars use concepts, principles, and normative methods for identifying and justifying these beyond-compliance obligations that are very different from the ones that are used to set the levels of regulations themselves. Its modest proposal—a plea for a research agenda, really—is that we could reduce this normative asymmetry by (...) borrowing from the normative framework of “regulation” to identify and justify an important range of beyond-compliance obligations. In short, we might think of “self-regulation” as a language and a normative framework with some distinct advantages over other frameworks like stakeholder theory, corporate social responsibility, corporate citizenship, and the like. These other frameworks have been under attack in the business ethics literature of late, primarily for their vagueness and their disappointing inability to distinguish clearly between genuine beyond-compliance moral obligations, on the one hand, and charitable acts that are laudable but not morally obligatory, on the other. (shrink)

As we transition to the 21st century, it is useful to think about some of the most important challenges business and other organizations will face as the new millennium begins. What will constitute “business as usual” in the business ethics arena as we start and move into the new century? My overall thought is that we will pulsate into the future on our current trajectory and that the new century will not cause cataclysmic changes, at least not immediately. Rather, the (...) problems and challenges we face now we will face then. Undoubtedly, new issues will arise but they will more likely be extensions of the present than discontinuities with the past. (shrink)

The news reminds us almost daily that the truth is apparently not highly valued by many in business. This paper develops two prescriptive standards — the Expectation and Reputation guidelines — that may help businesspeople avoid violating clearly accepted truth standards. The guidelines also assist in determining whether truth is required in circumstances where honesty seems in conflict with the practical demands of business. A discussion of why, when and how these guidelines may be applied to facilitate truth-telling by business (...) organizations follows, along with illustrative examples. (shrink)

Neither the corporate view of whistle blowers as tattle-tales and traitors, nor the more sympathethic understanding of them as tragic heroes battling corrupt or abused systems captures what is at stake in whistle blowing at its most distinctive. The courage, determination and sacrifice of the most ardent whistle blowers suggests that they only begin to be appreciated when they are seen as the saints of secular culture. Although some whistle blowers may be attempting to deflect attention from their own deficiencies (...) and others may be disgruntled employees, the most serious instances involve a level of moral sensitivity that approaches religious proportions that are baffling for a culture that has dispensed with sainthood. (shrink)

During the evolution of business ethics as a profession, the fields it draws from have identified separate knowledge and skills they believe define business ethics; however, there is little agreement among these fields. This means the strengths of each are seldom combined to guide ethical decision making in business and industry, which leaves business ethicists looking less effective, and perhaps less professional, than their counter-parts in medicine and law. It also means that those who have been thrust into the role (...) of guiding business ethics – or those who have added the title of ethics consultant after their name, without having the preparation to do so, have no standards to look to.This article examines one of the touchstones of mature professions, performance standards by which members of the profession can measure themselves and the profession can self-monitor. Further, it suggests that business ethics has not yet addressed one of the standards by which all professions are measured, that of service. (shrink)

The growing body of whistleblowing literature includes many studies that have attempted to identify the individual level antecedents of whistleblowing behavior. However, cross-cultural differences in perceptions of the ethicality of whistleblowing affect the judgment of whistleblowing intention. This study ascertains how Chinese managers/professionals decide to blow the whistle in terms of their locus of control and subjective judgment regarding the intention of whistleblowing. Hypotheses that are derived from these speculations are tested with data on Chinese managers and professionals. Statistical analysis (...) largely supports the hypotheses, which suggests that an individual''s locus of control does moderate the relationship between ethical judgment and whistleblowing. (shrink)

Professional ethics, in general, deals with justified moral values that govern the work of professionals. Profession is an expertise who is committed to promote a distinctive public good, such as learning or education. Professionals are committed to special duties to make services available, maintain confidentiality, secure informed consent for services, and be loyal to clients, employers, and others with whom one has fiduciary relationship. Professional ethics deals with theoretical issues which seek to understand how the justified moral values governing professionals (...) are linked to wider values. It also deals with practical issues as to how to apply duties in particular contexts. Professional values include principles of obligation and rights, virtues, personal moral ideals as manifested in the great lives. Given such a Western idea of professional ethics, it is indeed fascinating to trace professional ethics in the Upaniṣads. The Upaniṣadic sages since time immemorial have shown the path to peace and progress for all humanity, not only by laying down theoretical ideals or speculation, but by actually applying truths in their practical life. They have demonstrated the practical application of the ethical ideals or moral values in the personal and professional life and proved that self-realization alone can not only save man from misery but promote to the state of highest bliss. The standards laid down by them have been followed practically by people even today. Gītoponiṣad states that whatever action is performed by the great is imitated by the common people; whatever standard is set by him is followed by them. The Kaṭha Upaniṣad prescribes professional values to the extent that not he who has not ceased from evil conduct can obtain Him by knowledge. Good conduct as a value is thus emphasized here. In Taittirīya Upaniṣad, for instance, the teacher prescribes certain values in the form of commandments: speak the truth and practice virtue. Thus, it is evident that the Upaniṣadic teacher is not only concerned about the intellectual progress of the student but also its personal and professional life as well. The paper is a humble attempt to explore the roots of professional ethics in the Upaniṣadic ethics. (shrink)

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

This study compares the different emphases on virtuous characters presented in their values, across global firms considering country and industry of origin. It presents a content analysis of the 122 codes of conduct statements from Fortune Global 500 firms, drawn from four sectors and using correspondence analysis. American firms tend to emphasize courage, while European firms emphasize integrity and empathy, surprisingly with Asian firms being closer to European ones. Retailers and pharmaceutical firms emphasize empathy, while banks and petroleum emphasize courage. (...) This study extends the newly emerging strategic paradigm of organizational virtue, by introducing an empirical study of ethical values. Implications for multinational companies are then discussed. (shrink)

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 examines an important issue facing academia-pay inversion. It discusses how inversion is accompanied by ethical issues including secrecy, moral dilemmas for faculty, honesty, and keeping promises. It then examines this issue from five ethical viewpoints: a legalistic perspective, ethical egoism, utilitarianism, distributive justice, and Kants deontological approach. As part of the discussion, the effect of the moral philosophy on the universitys corporate culture is examined, with attention given to morale and productivity. Finally, alternatives to pay inversion that universities (...) may want to consider are discussed. (shrink)

What is ethics in the contemporary world? What is the need of defining ethics and, secondly, defining it in contemporary context? The meaning of ethics is so ambiguous to nonphilosophical academicians, corporate world, and others who look to the meaning in the branch of Philosophy called Ethics. At the end of endless debates, if the purpose of getting a definition is done, it is clarity in thinking in defining ethics which would happen. This may lead to clarity in the study (...) of ethics. And why should one study ethics at all? Ethics is interwoven at various levels in our life. The same individual is often in an obligation to face ethics at different levels like home, office, society, etc., or different ethical obligations. With a number of normative theories, the individual mind would be indefinite as to which one to follow. Is it just one theory alone which can be resorted to in an ethical dilemma or a combination of them? Are these theories practical also? Or are they just theories per se? To clear this ambiguity and in order to define ethics, the discussion of the meaning of ethics is important. This paper answers the above questions and throws light on the enquiry. This study hence is an exploratory one. Since the word ethics is interwoven with morality, it is worthwhile to define the word moral. (shrink)

It is often assumed that conventional ethics will contribute positively to economics and business, but here, this judgment will be examined. The conventional ethics of our time is dominated by altruistic philosophy, which has deep roots in religion. Such an idealistic ‘altruistic ethics’ especially emphasizes helping the least advantaged. This principle is contrasted with a more profane ‘reciprocal ethics.’ This term is used for the principle of mutual advantage central to a number of significant philosophers. This latter principle is compatible (...) with the practical norms constituting the morals of the market, while the former implies major adjustment of behavior and policies. Many ethicists consider their field to be ‘applied ethics,’ bringing the concrete rules and practices of the economic sector closer to honored first principles of philosophy. Is it reasonable to expect an influence by the ideas of altruistic ethics to improve the morals and policies of the economy? The process of the Heavily Indebted Poor Countries (HIPC) Initiative of the United Nations illustrates a probably crucial connection with altruistic ethics. Is this project, supported by religiously inspired groups, a sound way to treat a serious global problem? The disadvantages of this project are discussed and alternatives with better potential are presented. The article suggests that altruistic ethics is a dubious foundation for constructive morality and that its dominance in contemporary philosophy constitutes a major obstacle to a more open-minded analysis and sound policies. (shrink)

Theoretical justification for the Business Ethics Index (BEI) from the emerging economics of trust literature is discussed. The BEI results for 2007, 2008, and 2009 are presented. While the Personal/Past BEI component shows no significant difference from the previous years, the Vicarious/Past component shows a dramatic drop to levels previously never recorded.However, when it came to the perception of the future business ethical behavior, respondents were significantly more optimistic than in previous measurements.This finding was more than a little surprising given (...) the depth of the economic crisis. A possible explanation is that consumers hopefully perceived the economic crisis as already abating and/or that at least the worst was over. (shrink)

In recent times, whistleblowing has become one of the most popularly debated issues of business ethics. Popular discussion has coincided with the institutionalisation of whistleblowing via legal and administrative practices, supported by the emergence of academic research in the field. However, the public practice and knowledge that has subsequently developed appears to construct a dichotomy of whistleblowing/silence ; that is, an employee elects either to ‘blow the whistle’ on organisational wrongdoing, or remain silent. We argue that this public transcript of (...) whistleblowing/silence overshadows the importance of continuing research into alternative (individual or collective) employee behaviour. Drawing on original research with a financial services organisation, our research uncovers a dissenting discourse that operates through implicit communication, such as codes, sarcasm and jokes. We suggest that this hidden transcript offers significant opportunities for employees to act ethically, and offers the potential to sustain an ethical organisational culture. (shrink)

Salespeople have a moral obligation to prospect/customer, company and self. As such, they continually encounter truth-telling dilemmas. "lgnorance" and "conflict" often block the path to morally correct sales behaviors. Academics and practitioners agree that adoption of ethical codes is the most effective measure for encouraging ethical sales behaviors. Yet no ethical code has been offered which can be conveniently used to overcome the unique circumstances that contribute to the moral dilemmas often encountered in personal selling. An ethical code is developed (...) that charts ethical paths across a variety of sales settings (addressing "ignorance") while illustrating why the cost associated with acting morally is generally reasonable (addressing "conflict"). The code applies the universal transactional notions of customer expectations and salesperson reputation to illustrate why and when salespeople are morally required to tell the truth. In doing so, the code tackles head-on the vexing question of how best to juggle mixed motives - involving self-interests, corporate-concerns, cus-tomer-needs and other influences such as the nature of the transaction. The issue of how mixed motives can be dealt with through moral means is one that ethicists have previously sidestepped (Stark, 1993). (shrink)