Moral choice, as a precursor to behaviour, has an important influence on the success or failure of business entities. According to Rest, 1983, Morality, Moral Behavior and Moral Development (John Wiley & Sons, New York), moral choice is prompted, amongst other things, by a motivational component. With this in mind, data obtained from a sample of four hundred financial sector operatives, employed in a rapidly developing region of China, was used to construct a relatively stable set of motivational typologies which (...) could be used to predict choice within an agency-based context. A non-egoist version of the agency theory was developed, which permitted the modelling of alternative heuristic patterns. Altruists and persons identified as bordering on the verge of being classified as psychological egoists, refused to reorganize their motives when responding to a problem that included both moral hazard and adverse selection criteria. It was also possible to identify certain personal and contextual issues which discriminated between the typologies. (shrink)

Corporate entrepreneurs -- described in the academic literature as those managers or employees who do not follow the status quo of their co-workers -- are depicted as visionaries who dream of taking the company in new directions. As a result, though, in overcoming internal obstacles to reaching their professional goals they can often walk a fine line between clever resourcefulness and outright rule breaking. A framework is presented as a guideline for middle managers and organizations seeking to impede unethical behaviors (...) in the pursuit of entrepreneurial activity. This paper examines the barriers middle managers face in trying to be entrepreneurial in less supportive environments, the ethical consequences that can result, and a suggested assessment and training program for averting such dilemmas. We advise companies that embrace corporate entrepreneurship: (1) establish the needed flexibility, innovation, and employee initiative and risk-taking; (2) remove the barriers that the entrepreneurial middle manager may face to more closely align personal and organizational initiatives and reduce the need to behave unethically; and (3) include an ethical component to corporate training which will provide guidelines for instituting compliance and values components into the state-of-the-art corporate entrepreneurship programs. (shrink)

Responsibilities towards employees constitute a recognised general subject area in the field of business ethics. Thus, research has been done regarding respecting employees’ rights to fairness in dismissal procedures, to their privacy, to a fair wage, etc. Employee loyalty has also been shown to be very important both in management literature and in legal debate but much less attention has been given to employer loyalty which could be one of the responsibilities of an employer to his or her employee. Rather, (...) some confusion regarding the nature of loyalty has at times led to suggestions that loyalty should be replaced by self-interest. However, scholars who favour this view usually do so in reaction to the one-sidedness of loyalty expectations. This paper proposes that loyalty is a duty that employers also owe their employees, based on the reciprocal nature of certain rights and duties within human relationships and an understanding of psychological contracts. Thus the paper argues that loyalty should be a mutual expectation between the parties rather than unidirectional. In fact, employer loyalty enriches the employers themselves in terms of their human fulfilment, since it is a human virtue, and leads to employee loyalty response, which then impacts the bottom-line.The paper’s content is also important insofar as it could contribute to building ethical duty foundations for employers in developing countries where weak regulatory environments combine with the harshness of the economy to make it an employers’ world and make instances of unfairness towards employees common. (shrink)

Standard accounts on the nature of the firm are highly dependent on explanations by Coase, coupled with inputs from agency theory and shareholder theory. This paper carries out their critique in light of personalist and common good postulates. It shows how personalist and common good principles create a framework that not only accommodates business ethics better but also affords a more compelling understanding of business as a whole.