The moral issues that occur for profit corporations are a unique function of many internal and external factors, including corporate policies and purpose, business regulations, and business governance's economic and political system. Several possible theoretical frameworks prescribe behavioral norms and standards of conduct to companies, such as utilitarianism, deontological ethics, or virtue ethics. In this paper, we argue although there are signs cant similarities between Kantian Ethics and ideal corporate cultures, Kantian ethics cannot fully be integrated into contemporary corporate practices. (...) Kant's theory of morality fundamentally fails to consistently accommodate the infamous given purpose of corporations, namely the profit-maximizer. We also provide empirical insights from a case study in developing a semi-Kantian corporate code of conduct in a large technology-based company. (shrink)

The aim of this article is to articulate and critically discuss different answers to the following question: How should decision-makers deal with conflicts that arise when the values usually entailed in ethical guidelines – such as accuracy, privacy, non-discrimination and transparency – for the use of Artificial Intelligence clash with one another? To begin with, I focus on clarifying some of the general advantages of using such guidelines in an ethical analysis of the use of AI. Some disadvantages will also (...) be presented and critically discussed. Second, I will show that we need to distinguish between three kinds of conflict that can exist for ethical guidelines used in the moral assessment of AI. This section will be followed by a critical discussion of different answers to the question of how to handle what we shall call internal and external values conflicts. Finally, I will wrap up with a critical discussion of three different strategies to resolve what is called a ‘genuine value conflict’. These strategies are: the ‘accepting the existence of irresolvable conflict’ view, the ranking view, and value monism. This article defends the ‘accepting the existence of irresolvable conflict’ view. It also argues that even though the ranking view and value monism, from a merely theoretical point of view, are better equipped to solve genuine value conflicts among values in ethical guidelines for artificial intelligence, this is not the case in real-life decision-making. Keywords: AI; ethical guidelines; algorithm-based sentencing; value conflicts. (shrink)

In recent years, insurance companies have begun tracking their customers’ behaviors and price premiums accordingly. Based on the Market-Failures Approach as well as the Justice-Failures Approach, I provide an ethical analysis of the use of tracking technologies in the insurance industry. I focus on the use of telematics in car insurance and on the use of fitness tracking in life insurance. The use of tracking has some important benefits to policyholders and insurers alike: it reduces moral hazard and fraud, increases (...) actuarial fairness, and incentivizes safe behavior. These benefits, however, are outweighed by significant moral objections. First, the use of tracking technologies significantly undermines the fairness of the interaction between insurance companies and policyholders. Specifically, the use of tracking eliminates information asymmetries, but in such a way that favors insurers exclusively. Furthermore, tracked behaviors and the ability to choose to behave safely are highly correlated with other variables such as income. Therefore, tracking-based insurance relies on and exacerbates existing inequalities and injustices, which undermines the benefits that tracking is supposed to introduce. (shrink)

Scholars who favor shareholder primacy usually claim either that managers should not fulfill corporate duties of beneficence or that, if they are required to fulfill them, they do so by going against their obligations to shareholders. Distinguishing between structurally different types of duties of beneficence and recognizing the full force of the normative demands imposed on managers reveal that this view needs to be qualified. Although it is correct to think that managers, when acting on behalf of shareholders, are not (...) required to fulfill wide duties of charity, they are nevertheless required to fulfill a variety of narrow duties of beneficence. What is more, the obligation to fulfill these duties arises precisely because they are acting on behalf of shareholders. As such, this article 1) refines our understanding of the duties of corporate beneficence and 2) helps to identify which duties of beneficence are imposed on managers when they are acting on behalf of shareholders. (shrink)

ABSTRACTThe responsibility of the food and beverage industry for noncommunicable diseases is a controversial topic. Public health scholars identify the food and beverage industry as one of the main contributors to the rise of these diseases. We argue that aside from moral duties like not doing harm and respecting consumer autonomy, the food industry also has a responsibility for addressing the structural injustices involved in food-related health problems. Drawing on the work of Iris Marion Young, this article first shows how (...) food-related public health problems can be understood as structural injustices. Second, it makes clear how the industry is sustaining these health injustices, and that due to this connection, corporate actors share responsibility for addressing food-related health problems. Finally, three criteria are discussed as grounds for attributing responsibility, allowing for further specification on what taking responsibility for food-related health problems can entail in corporate practice. (shrink)

Recently, dramatic price increases by several pharmaceutical companies have provoked public outrage. These scandals raise questions both about how pharmaceutical firms should be regulated and about how pharmaceutical executives ethically ought to make pricing decisions when drug prices are largely unregulated. Though there is an extensive literature on the regulatory question, the ethical question has been largely unexplored. This article defends a Kantian approach to the ethics of pharmaceutical pricing in an unregulated market. To the extent possible, pharmaceutical companies must (...) price drugs so that those who genuinely need them can get them without financial ruin. This requirement is an ethical side constraint, like the moral prohibitions on deception and theft, that takes precedence over a business’s interest in maximizing profit. That said, the requirement’s application is sensitive to the need to recoup the costs of research and to produce a return that financially justifies the original investment. It may not be either feasible or desirable for government to attempt to enforce the ethical requirements concerning just pharmaceutical pricing. Either price regulation or subsidy could fulfill government’s obligation to protect patients from being objectionably vulnerable to pricing decisions by private companies. (shrink)

Whether an action is morally right depends upon the alternative acts available to the agent. Actualists hold that what an agent would actually do determines her moral obligations. Possibilists hold that what an agent could possibly do determines her moral obligations. Both views face compelling criticisms. Despite the fact that actualist and possibilist assumptions are at the heart of seminal arguments in business ethics, there has been no explicit discussion of actualism and possibilism in the business ethics literature. This paper (...) has two primary goals. First, it aims to rectify this omission by bringing to light the importance of the actualism/possibilism debate for business ethics through questions about the ethics of sweatshops. Second, it aims to make some progress in the sweatshop debate by examining and defending an alternative view, hybridism, and describing the moral and practical implications of hybridism for the sweatshop debate. (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)

Does the content of a physically dangerous job affect the moral permissibility of hiring for that job? To what extent may employers consider costs in choosing workplace safety measures? Drawing on Kantian ethical theory, this article defends two strong ethical standards of workplace safety. First, the content of a hazardous job does indeed affect the moral permissibility of offering it. Unless employees need hazard pay to meet basic needs, it is permissible to offer a dangerous job only if prospective employees (...) have a reason other than hazard pay to choose this job instead of safer alternatives. Second, employers typically cannot justify omitting expensive safety measures by paying employees more, even if employees prefer higher pay to greater safety. Employers offering dangerous jobs must meet these two standards to avoid treating their employees merely as means. (shrink)

While researchers in business ethics, moral philosophy, and jurisprudence have advanced the study of corporate agency, there have been very few attempts to bring together insights from these and other disciplines in the pages of the Journal of Business Ethics. By introducing to an audience of business ethics scholars the work of outstanding authors working outside the field, this interdisciplinary special issue addresses this lacuna. Its aim is to encourage the formulation of innovative arguments that reinvigorate the study of corporate (...) agency and stimulate further cross-fertilization of ideas between business ethics, law, philosophy, and other disciplines. (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)

The notion of dignity as that which has intrinsic value has arguably been neglected in economics and management despite its societal importance and eminent relevance in other social sciences. While management theory gained parsimony, this paper argues that the inclusion of dignity in the theoretical precepts of management theory will: improve management theory in general, align it more directly with the public interest, and strengthen its connection to social welfare creation. The paper outlines the notion of dignity, discusses its historical (...) understanding, and explains its relevance in the context of management theory. Furthermore, it proposes a framework of paradigmatic assumptions along two dimensions: understanding human dignity as unconditional or conditional and understanding social welfare as wealth creation or well-being creation. I propose alternative management theory archetypes and discuss these archetypes’ theoretical implications for management research. I also suggest how management theory can be shifted to contribute toward social welfare creation more directly. (shrink)

ABSTRACTIn this article, we explore the debate on corporate citizenship and the role of business in global governance. In the debate on political corporate social responsibility it is assumed that under globalization business is taking up a greater political role. Apart from economic responsibilities firms assume political responsibilities taking up traditional governmental tasks such as regulation of business and provision of public goods. We contrast this with a subsidiarity-based approach to governance, in which firms are seen as intermediate actors who (...) have political co-responsibilities in society endowed upon them by national governmental institutions. We argue that both approaches face conceptual and empirical problems, and do not make clear the content and scope of political corporate responsibility. Based on Iris Marion Young’s account of political responsibility we argue that corporate actors and governmental actors have a shared responsibility to tackle societal problems. Taking political corporate responsibility not only entails engaging in private action or engaging in public–private partnerships, but it also includes aiding governmental actors to remedy injustice or even create public institutions where they do not yet exist. By adding this perspective we contribute to the debate on responsibility in corporate citizenship and clarify the political role business can play in global governance. (shrink)

According to the Market Failures Approach to business ethics, beyond-compliance duties can be derived by employing the same rationale and arguments that justify state regulation of economic conduct. Very roughly the idea is that managers have a duty to behave as if they were complying with an ideal regulatory regime ensuring Pareto-optimal market outcomes. Proponents of the approach argue that managers have a professional duty not to undermine the institutional setting that defines their role, namely the competitive market. This answer (...) is inadequate, however, for it is the hierarchical firm, rather than the competitive market, that defines the role of corporate managers and shapes their professional obligations. Thus, if the obligations that the market failures approach generates are to apply to managers, they must do so in an indirect way. I suggest that the obligations the market failures approach generates directly apply to shareholders. Managers, in turn, inherit these obligations as part of their duties as loyal agents. (shrink)

ABSTRACT:I here advance a critical research agenda for the political perspective of corporate social responsibility (Political CSR). I argue that whilst the ‘Political’ CSR literature is notable for both its conceptual novelty and practical importance, its development has been hamstrung by four ambiguities, conflations and/or oversights. More positively, I argue that ‘Political’ CSR should be conceived as one potentialformof globalization, and not as aconsequenceof ‘globalization’; that contemporary Western MNCs should be presumed to engage in CSR for instrumental reasons; that ‘Political’ (...) CSR should be associated with a corresponding ‘political’ model of corporate governance; and that both a ‘Rawlsian’ and ‘Habermasian’ perspective of Political CSR are different from ‘Political’ CSR. In concluding, I use these four critiques to identify a number of areas within which increasingly robust and sophisticated positive and normative theories of Political CSR are required. (shrink)

ABSTRACT:In response to criticism of empirical or “positive” approaches to corporate social responsibility (CSR), we defend the importance of these approaches for any CSR theory that seeks to have practical impact. Although we acknowledge limitations to positive approaches, we unpack the neglected but crucial relationships between positive knowledge on the one hand and normative knowledge on the other in the implementation of CSR principles. Using the structure of a practical syllogism, we construct a model that displays the key role of (...) empirical knowledge in fulfilling a firm’s responsibility to society, paying special attention to the implications of the “ought implies can” dictum. We also defend the importance of one particular class of empirical claims; namely, claims from the field of economics. Even positive economic theory, which is often criticized for endorsing profits rather than values, can cooperate in intriguing ways with non-economic concepts in the implementation of CSR goals. (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)

The popularity of the stakeholder model has been achieved thanks to its powerful visual scheme and its very simplicity. Stakeholder management has become an important tool to transfer ethics to management practice and strategy. Nevertheless, legitimate criticism continues to insist on clarification and emphasises on the perfectible nature of the model. Here, rather than building on the discussion from a philosophical or theoretical point of view, a different and innovative approach has been chosen: the analysis will return to the origin (...) of stakeholder theory and will keep the graphical framework firmly in perspective. It will confront the stakeholder model’s graphical representation to the discussion on stakeholder definition, stakeholder identification and categorisation, to re-centre the debate to the strategic origin of the stakeholder model. The ambiguity and the vagueness of the stakeholder concept are discussed from managerial and legal approaches. The impacts of two major shortcomings of the popular stakeholder framework are examined: the boundaries and the level of the firm’s environment, and the ambivalent position of pressure groups and regulators. Working pragmatically, with a focus on the managerial and organisational perspective, an attempt is made to clarify the categorisations and classifications by introducing new terminology with a distinction between stakeholders, stakewatchers and stakekeepers. The analysis will finally lead to a proposed upgraded and refined version of the stakeholder model, with incremental ameliorations close to Freeman’s original model and a return of focus to its essence, the managerial implications in a strategic approach. (shrink)

Stakeholder theory is widely recognized as a management theory, yet very little research has considered its implications for individual managerial decision-making. In the two studies reported here, we used stakeholder theory to examine managerial decisions about balancing stakeholder interests. Results of Study 1 suggest that indivisible resources and unequal levels of stakeholder saliency constrain managers’ efforts to balance stakeholder interests. Resource divisibility also influenced whether managers used a within-decision or an across-decision approach to balance stakeholder interests. In Study 2 we (...) examined instrumental and normative implications of these two approaches. We conclude by considering the contributions of this research. (shrink)

. Trans-National Corporations (TNCs) pay relatively high salaries to local people in host countries. TNCs assume that such employees will accept an employeeÇôemployer relationship similar to that which exists in North America, but the obligations and personal interests that such a relationship create often directly conflict with systems of obligation already established in the host country. When TNCs do business across the boundaries of systems of obligation, corporate salaries can be seen as a form of unethical bribery. In this paper, (...) the core case of business bribery is described consistent with the usual philosophical analysis of bribery, and the grounds for thinking bribery is unethical are made clear. The amount of a bribe is irrelevant to the ethical analysis. Bribery is distinguished from tips and grease on structural grounds. The concept of a system of obligation is defined, and examples given that show the variability of systems of obligation in host countries. Arguments are given to show that salaries paid by TNCs create obligations and personal interests which sometimes conflict with existing systems of obligation, and that such payments have the same structure as more traditional forms of bribery. The ethical issues of corporations crossing the boundaries of systems of obligations are discussed. (shrink)

How does a board of directors decide what is right? The contest over this question is frequently framed as a debate between shareholder value and stakeholder rights, between a utilitarian view of the ethics of corporate governance and a deontological one. This paper uses a case study with special circumstances that allow us to examine in an unusually clear way the conflict between shareholder value and other bases on which a board can act. In the autumn of 2010, the board (...) of Liverpool Football Club sold the company to another investing group against the explicit wishes of the owners. The peculiar circumstances of this case provide insight into the conflict between ethical approaches to board decisions, allowing us to see certain issues more clearly than we can in listed corporations with many shareholders. What the analysis suggests is that the board saw more than one type of utility on which to base its ethical decision, and that one version resonated with perceived duties to stakeholders. This alignment of outcomes of strategic value with duties contrasted with the utility of shareholder value. While there are reasons to be cautious in generalizing, the case further suggests reasons why boards may reject shareholder value, in opposition to mainstream notions of corporate governance, without rejecting utility as a base of their decisions. Further, the partial alignment of duty and utility facilitates a pragmatic decision rather than one based on a priori claims. (shrink)

This article argues that shareholder primacy cannot be defended on the grounds that there is something special about the position of shareholders that grounds a right to preferential treatment on part of management. The notions of property and contract, traditionally thought to ground such a right, are now widely recognized as incapable of playing that role. This leaves shareholder theorists with two options. They can either abandon the project of arguing for their view on broadly deontological grounds and try to (...) advance consequentialist arguments instead, or they can search for other morally relevant properties that could ground shareholder rights. The most sustained argument in the latter vein is Marcoux’s attempt to show that the vulnerability of shareholders mandates that managers are their fiduciaries. I show that this argument leads to the unacceptable conclusion that it would be unethical for corporations to make incomplete contracts with nonshareholding stakeholders. (shrink)

Ethical codes have been hailed as an explicit vehicle for achieving more sustainable and defensible organizational practice. Nonetheless, when legal compliance and corporate governance codes are conflated, codes can be used to define organizational interests ostentatiously by stipulating norms for employee ethics. Such codes have a largely cosmetic and insurance function, acting subtly and strategically to control organizational risk management and protection. In this paper, we conduct a genealogical discourse analysis of a representative code of ethics from an international corporation (...) to understand how management frames expectations of compliance. Our contribution is to articulate the problems inherent in codes of ethics, and we make some recommendations to address these to benefit both an organization and its employees. In this way, we show how a code of ethics can provide a foundation for ethical sustainability, while addressing management intentions and employees’ ethical satisfaction. (shrink)

Multinational corporations dominate the global business arena, but new expectations for MNC boards call to question how they might effectively manage global stakeholder relationships in this new era of accountability. Uniting political behavior theory, which describes a board’s international political orientation, and global operating governance systems outlining a set of board behaviors, we develop a typology of four types of boards. We then provide recommendations for the development of an integrative governance structure, taking into account the mechanisms, structure, endorsements, and (...) codes of conduct that MNCs can use to promote ethical behavior across MNC horizons. (shrink)

Meaningful work is both a moral issue and an economic one. Studies show that workers’ experience of meaninglessness in their jobs contributes to job dissatisfaction which has negative effects to business. If having a meaningful work is essential for the well-being of workers, providing them with one is an ethical requirement for business establishments. The essay aims to articulate an account of meaningful work in the Catholic social teachings. CST rejects the subjectivist and relativist notion of work which affirms the (...) absolute freedom of individuals to choose their commitment and goals, even if this includes experiencing satisfaction in dehumanizing work. First, the paper will present a summary account of some of the current views on meaningful work from the objective-normative approach. This will be followed by a systematic treatment of the meaning and value of work in the CST, the similarities and differences it has with alternative views, and its implications for the way we promote meaningful work. The paper will argue that by recognizing the subjective and objective dimensions of work and affirming that although the two are inseparable, the former takes priority over the latter; CST develops a holistic, comprehensive, and coherent account of meaningful work which overcomes some of the difficulties that are usually encountered in dealing with this issue from a purely objective approach. (shrink)

There seems to be a prevailing belief among public relations professionals that ethical problems can easily be solved by either reference to a simplified code or citation of a few well-worn platitudes. However, the route to a more complete understanding of questions of ethics is circuitous and often painstaking. By applying a number of ethical theories to a public relations problem, both the skilled public relations technician and the public relations professional may arrive at similar conclusions concerning moral obligations; however, (...) the professional is in the most favorable position to effect change. (shrink)

As the public relations (PR) field becomes more and more concerned about ethics, attention turns to ethics instruction in university public relations programs. Analysis of six leading public relations texts shows a wide disparity in coverage of the topic, ranging from sparse philosophical to primarily anecdotal. According to the author, no basic conceptual framework has emerged to suggest common ground for studying public relations ethics and the default position seems to be to teach social responsibility / professionalism.

When managers use moral expressions in their communications, they do so for several, sometimes contradictory reasons. Based upon analyses of interviews with managers, this article examines seven distinctive uses of moral talk, sub-divided into three groupings: (1) managers use moral talk functionally to clarify issues, to propose and criticize moral justifications, and to cite relevant norms; (2) managers also use moral talk functionally to praise and to blame as well as to defend and criticize structures of authority; finally (3) managers (...) use moral talk dysfunctionally to rationalize morally ambiguous behavior and to express frustrations. The article concludes with several practical recommendations. (shrink)

Descriptions of how managers think about the moral questions that come up in their work lives are analyzed to draw out the moral assumptions to which they commonly refer. The moral standards thus derived are identified as (1) honesty in communication, (2) fair treatment, (3) special consideration, (4) fair competition, (5) organizational responsibility, (6) corporate social responsibility, and, (7) respect for law. It is observed that these normative standards assume the cultural form of social conventions but because managers invoke them (...) as largely private intuitions, their cultural status remains precarious and unclear. This is the second in a research series of three papers. (shrink)

By focusing on the reasoned debate in the discourse -ethical approach to business ethics, this paper discusses the possibilities and limitations of moral reasoning as well as applied economic and business ethics. Business ethics, it is contended, can be looked at from the standpoint of two criteria: justification and application. These criteria are used to compare three approaches: the Integrative Business Ethics, developed by Swiss philosopher Peter Ulrich, the Cultural Business Ethics of the Nuremberg School in German business ethics, and (...) the concept of “Good Conservation” by Frederick Bird. It is argued that discourse -ethical approaches can be called upon for justifying moral principles. Improving the chances of their application, however, necessitates a good understanding of lifeworlds and culturally developed institutional settings. Bearing this in mind, further research perspectives stressing a linkage between discourse -ethical and critical approaches in social sciences are suggested. (shrink)

Hegel’s practical philosophy has important insights for understanding the ethical role of the firm in modern society. From a broadly Hegelian perspective, the firm’s role in society is to facilitate freedom, that is, the concrete realization of rational agency. It does this by providing the institutional structures, norms, practices, and modes of discourse necessary for individuals to link their subjective aims with objectively valid societal aims, embodied in the firm’s purpose. Accordingly, I first present a Hegelian account of the link (...) between action and social structure, before arguing that the firm, when it functions properly, enables individuals to express their capacity for rational agency within concrete social contexts. I then draw upon Paul Adler’s Marxist analysis of the development of organizational structures and processes to support the viability of a broadly Hegelian account of the firm within a contemporary economic context. I conclude by outlining a number of practical implications of this account, before explaining its implications for two prominent theories of business ethics, the MacIntyrean perspective, and the Market Failures Approach. (shrink)

Recognition is a fundamental good that corporations ought to give to employees, a good that is essential to their well-being, and thus, recognition should be among the central notions in our understanding of organizations and in any theory of business ethics. Drawing upon the work of Philip Pettit and Robert Brandom as well as themes from instrumental stakeholder theory, I develop a complex notion of recognition involving both status recognition and capacity recognition and argue that this account meets three fundamental (...) desiderata of any adequate account of business ethics: It makes salient key normative features of the practice of business. It articulates a genuine ethical demand that is not reducible to the economic imperatives typical of self-interested actors. And it is compatible with the strategic demands that organizations face to remain competitive. Status recognition involves treating others as persons whose rights are legally enshrined. Capacity recognition involves treating others as persons possessing specific capacities. When corporations accord these forms of recognition to employees, they promote their well-being in a fundamental way and they promote the long-term success of the firm. Thus, recognition represents an underappreciated concept that may further contribute to theory development in business ethics and organization studies and more ethical business practice. (shrink)

Our understanding of emotional labor, while conceptually and empirically substantial, is normatively impoverished: very little has been said or written expressly about its ethical dimensions or ramifications. Emotional labor refers to efforts undertaken by employees to make their private feelings and/or public emotion displays consistent with job and organizational requirements. We formally define emotional labor, briefly summarize research in organizational behavior and social psychology on the causes and consequences of emotional labor, and present a normative analysis of its moral limits (...) focused on conditional rights and duties of employers and employees. Our focus is on three points of conflict involving rights and duties as they apply to the performance of emotional labor: when employees’ and organizations’ rights conflict, when employees’ rights conflict with their duties, and when organizations’ rights conflict with their duties. We discuss implications for future inquiry as well as managerial practice. (shrink)

Integrative Social Contracts Theory is a popular framework to assist managers in making decisions on international moral dilemmas. Although the theory has been praised for its comprehensiveness and sophistication, commentators have raised concerns regarding the justification and identification of substantive hypernorms, fundamental moral principles valid across cultures. This paper introduces the deliberative test, a new method for testing the cross-cultural validity of ethical norms in ISCT. The test relies on the concept of Deliberative Capacity, arising from new developments in system-level (...) deliberative democracy research, which studies deliberation at the level of national societies and over time. Based on this recent stream of research, the deliberative test has the potential of providing better guidance for managers to decide which norms to follow in case of conflicting standards between home and host countries. (shrink)

This paper explores the ethical dilemma of conflicting loyalties found in whistleblowing. Central to this dilemma is the internal/external disclosure dichotomy; disclosure of organisational wrongdoing to an external recipient is seen as disloyal, whilst disclosure to an internal recipient is seen as loyal. Understanding how the organisation and society have dealt with these problems over the last 30 years is undertaken through an analysis of Vandekerckhove’s project, which seeks to place the normative legitimisations of whistleblowing legislation and organisational whistleblowing policies (...) within a globalisation semantic able to contain this conflict between society and the organisation. This project fails, it is argued, because of Vandekerckhove’s particular understanding of the organisation as an autopoietic system, i.e. an operationally closed system. A case is made to understand organisations as complex systems, i.e. operationally open systems. Critical Complexity theory sees the identities of systems and components as coterminous. In the context of the organisation, this means that the identities of the corporation and its corporate members arise and die together. The whistleblower’s disclosure reconfigures the organisation by forcing the organisation to open up and make its boundaries flexible, making the designation ‘internal’ or ‘external’ to the organisation, and, therefore, who qualifies as a recipient of a disclosure of wrongdoing, flexible. The organisation is restrained from retailing against the whistleblower, because its identities are coterminous. Furthermore, as the disclosure cannot be categorically defined as either internal or external, the question of whether an external disclosure can qualify as an act of organisational loyalty becomes moot. (shrink)

Stakeholder theory diverts attention from creating business success to concentrating on who share its fruits. But what right have stakeholders to make the claims they do? Perhaps a new model is needed. T.F.J. Ambler is Grand Metropolitan Senior Research Fellow at London Business School, Sussex Place, Regent's Park, London NW1 4SA, where Andrea Wilson completed her MBA in 1993. She is now a consultant in New York.

Stakeholder theory diverts attention from creating business success to concentrating on who share its fruits. But what right have stakeholders to make the claims they do? Perhaps a new model is needed. T.F.J. Ambler is Grand Metropolitan Senior Research Fellow at London Business School, Sussex Place, Regent's Park, London NW1 4SA, where Andrea Wilson completed her MBA in 1993. She is now a consultant in New York.

Based on the extended conceptualization of corporate citizenship, as provided by Matten and Crane :166–179, 2005), this paper examines the new role of corporations in society. Taking the ideas of Matten and Crane one step further, we argue that the status of corporations as citizens is not solely defined by their factual engagement in the provision of citizenship rights to others. By analysing political and sociological citizenship theories, we show that such engagement is more adequately explained by a change in (...) the self-conception of corporate citizens from corporate bourgeois to corporate citoyens. While the corporate bourgeois acts primarily for private business purposes, the corporate citoyen engages in society, performing civil and political rights and duties. As an intermediate actor in society, shaped by the principle of subsidiary task-sharing, the corporate citoyen undertakes co-responsibility for social and civic affairs and actively collaborates with fellow citizens below, beside and beyond governmental regulation. (shrink)

Recent discussion on Corporate Social Responsibility (CSR) mainly focuses on two aspects of CSR: from a technical perspective, CSR aims to improve ethical standards in the organizational decision-making process, and should guarantee that management practices are in accordance with commonly accepted standards of behavior. From a political perspective, CSR describes corporate engagement with ecological and social issues that extend beyond the firm's economic activities. The latter perspective in particular leaves unclear whether such corporate contributions to solve environmental and societal problems (...) should be seen as voluntary additional services or whether corporations bear specific duties in this field.Based on the tenet of subsidiarity derived from Catholic thought, this article emphasizes that the common interpretation of CSR should be extended by a third perspective that addresses corporations as intermediate actors bearing specific subsidiary co-responsibilities in society. (shrink)

In this paper I describe and analyze an economic situation involving two competitive organizations. I put forth the argument that because of the systemic nature of decision making relative to managing the requirements of utilizing a descriptive equation that determines how many people an economic system can support, that even if all the players in the situation act ethically, the results will still be harmful, and necessarily so, to the system and to many innocent people. I will demonstrate that harming (...) innocent people is required and morally defensible given the choices available. The best one can do is slow down the increase in disutilities and possibly operate the system within a range of acceptable behavior that minimizes the resulting harm to innocent people, even if we cannot entirely remove this harm. In this context ethics becomes the study of the acceptable as opposed to the preferable. (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)

Global health and environmental wellbeing are mutually reinforcing and interdependent. This mutuality invokes two major analytical orientations: it emphasizes a direct nexus between ecological strategies and global health outcomes. These in turn revitalize the essential quest for comprehensive policies and responsible strategies for enhancing both ecology and health within the discourse of sustainability. With orientation towards political conception of corporate responsibility, I problematize the root questions of the democratic embeddedness of the firm under conditions of weakened institutional structures. I highlight (...) the inherent power relations in global health and ecological governance through literature mapping. I address the question: Why and how might ecological strategies be embedded in corporate day-to-day actions to produce optimal outcomes that have positive effects on global health and human dignity? Besides resource and ethical/political constraints, there are several micro-political, geopolitical, industrial, institutional and structural impediments to ecological and health sustainability. This grim diagnosis is clearly a description of a ‘disturbingly fascinating’ pathology of global capitalism whose industrial effects culminate in the accumulation of more profits for a few at the expense of the ecological sustainability of the majority. That notwithstanding, there are several grounds for optimism with a move from anthropocentrism to humanistic eco-centrism via deliberative democratic procedures. Here, the centrality of human dignity is emphasized. This study provides an interdisciplinary theoretical model that seeks to reorient strategies towards restoration, protection, mitigation, adaptation, harm avoidance and innovative sustainability of the whole economic gamut and biodiversity that supports global health. Thus, I rearticulate ecological sustainability in terms of its most fundamental means and end: sustainable global health and the tutelage of human dignity. (shrink)

This article first addresses the question of “why” we teach business ethics. Our answer to “why” provides both a response to those who oppose business ethics courses and a direction for course content. We believe a solid, comprehensive course in business ethics should address not only moral philosophy, ethical dilemmas, and corporate social responsibility – the traditional pillars of the disciple – but also additional areas necessary to make sense of the goings-on in the business world and in the news. (...) These “new pillars,” that we advocate include moral psychology, organizational design and behavior, motivational theory, and a unit on how society, business, and law interact. This last unit builds upon the work of Francis P. McHugh (1988) who urged an integration of “disciplines related to business ethics.” Our seventh pillar would encompass an integration of law, socio-political theory, and policy to demonstrate how business helps construct its own regulatory framework. The concluding recommendation is for a comprehensive “Seven Pillars” of business ethics approach. (shrink)

Michael Walzer is one of the most distinguished political philosophers and social critics of this century. His ideas have had great import and influence in political philosophy and political discussion, yet very few of his ideas have been incorporated explicitly into the business ethics literature. We argue that Walzer’s work provides an important conceptual canvas for business ethics scholars that has not been adequately explored. Scholars in business ethics often borrow from political theory and philosophy to generate new insights and (...) develop new substantive contributions. Many valuable theoretical resources are already used extensively—particularly Aristotle, Kant, Marx and a variety of utilitarian philosophers. Walzer offers another set of resources to bring to the conversation of what business ethics is and how business ethicists add value. This paper provides an opportunity to delve further into Walzer’s writings, particularly themes that are tied to business ethics, and to illustrate how his ideas can be extended to reshape our understanding of the field and develop new perspectives on ethical issues in commerce. (shrink)

This paper focuses on Joshua Knobe's experiments which show that people attribute blame and intentionality to the chairman of a company that knowingly causes harmful side effects, but do not attribute praise and intentionality to the chairman of a company that knowingly causes helpful side effects. Knobe's explanation of this data is that people determine intentionality based on the moral consideration of whether the side effect is good or bad. This observation and explanation has come to be known as the (...) "Knobe Effect." One implication from the Knobe Effect is that it seems profit-driven businesses can only intentionally cause harmful and never good side effects. This paper examines the Knobe Effect, and argues for a way that business persons can understand it and avoid its implications. The argument has three parts. The first point is that business persons who care only about profits are blameworthy and rightly should not get credit for good side effects. Second, when a morally praiseworthy person who cares about values other than profits causes side effects, her actions are intentional and praiseworthy. Therefore, profit-driven business persons can be praised for intentionally producing good side effects if they consider other moral values as moral agents should. Finally, morally praiseworthy business persons need only to be Minimally Good Samaritans and not totally altruistic. When a business person strives for profits, adheres to other morally important values, and produces morally good side effects, then we should say that she intentionally caused those effects and is praiseworthy. (shrink)

In his invited essay for Business & Society’s 60th anniversary, Archie B. Carroll refers to human rights as “a topic that holds considerable promise for CSR [corporate social responsibility] researchers in the future.” The objective of this article is to unpack this promise. We discuss the momentum of business and human rights in international policy, national regulation, and corporate practice, review how and why BHR scholarship has been thriving, provide a conceptual framework to analyze how BHR and corporate social responsibility (...) relate to each other, and provide a research agenda outlining how BHR can expand business and society scholarship in general and one of its foundational constructs, CSR, in particular, beyond the current confines of the business and society field. (shrink)