A group of economists has recently begun addressing questions at the intersection of ethics and economics. They are preparing new definitions of individual choice that combine self-interest and other-interest, new processes of interpersonal exchange that result in cooperation rather than conflict, and new measures of social well-being that include rights as well as outcomes. This article surveys that work, and suggests areas where conceptual inputs from business ethicists are clearly needed, and where multiple opportunities for interactive research are obviously present.

A new framework-based approach to teaching and analyzing business ethics cases is set out. Using the framework, students are encouraged to adopt two different perspectives: business as usual and a more obviously moral point of view. Subsequently, they are prompted to craft a synthesis or compromise. Several pedagogical benefits flow from adopting the approach, including the cultivation of moral tolerance and improvements in the structure and scope of written action justifications. In addition, the framework enables students to relate ethical theories (...) to the cases in a systematic way, thereby addressing a long-standing concern of business ethics educators. (shrink)

Serial reciprocity exists when people reciprocate for what they have received--for example, from a parent, a friend, a mentor, a stranger, a previous generation --by providing something to a third party, regardless of whether a return is also given to, or makes its way back to, the original giver. To understand serial reciprocity as reciprocity, this article delineates the general features of the serial type of reciprocity and outlines two general situations in which serial reciprocity provides a viable option --the (...) only or the most appropriate option --for reciprocal return. It also argues for a more fundamental rethinking of reciprocity in general. A more cognitive and cultural perspective on reciprocity is proposed that focuses on the meaning of exchanges and treats reciprocity as a socially constructed element of a culturally available repertoire. This can better account for the existing serial type of reciprocity. The article concludes with suggestions for empirical research. (shrink)

This paper argues that the personal interview method is particularly appropriate for the kind of exploratory and complicated theory-building research that ethical decision-making, as a topic, represents at present. In doing so, it examines the key tasks of the ethics researcher, the suitability of interviews for obtaining the kind of data needed to accomplish these tasks, and the ensuing problems faced by the interview methodologist. It concludes with suggestions for enhancing the validity and reliability of interview-based ethics research.

In a competitive and morally imperfect world, business people are often faced with serious ethical challenges. Harboring suspicions about the ethics of others, many feel justified in engaging in less-than-ideal conduct to protect their own interests. The most sophisticated moral arguments are unlikely to counteract this behavior. We believe that this morally defensive behavior is responsible, in large part, for much undesirable deception in negotiation. Drawing on recent work in the literature of negotiations, we present some practical guidance on how (...) negotiators might build trust, establish common interests, and secure credibility for their statements, thereby promoting honesty. We also point out the types of social and institutional arrangements, many of which have become commonplace, that work to promote credibility, trust, and honesty in business dealings. Our approach is offered not only as a specific response to the problem of deception in negotiation, but as one model of how research in business ethics might offer constructive advice to practitioners. (shrink)

Abstract:Western business philosophy is rooted in the concepts of free enterprise, free markets, free choice. Yet freedom has its limits. Nature itself imposes constraints. In the state of nature each business must try to accomplish everything autonomously and ward off the attacks of rivals. These activities cost the business a great deal of freedom. The social contract emerges from such anarchy to increase the freedom available to all members of society. It does so by setting limits on individual freedom which (...) actually increase the overall amount of freedom available within the system. The Social Equation presents a relational model of this contract to show how overall freedom is increased in a state of society. In so doing, the obligations which society places on businesses to produce beneficial goods and services is developed. Next, the complex relationship between socially enforced constraints and social moral constraints is examined, showing that social moral constraints increase freedom more than do enforced constraints. This work concludes with proposed uses of the Social Equation as a heuristic for business ethics. (shrink)

This paper argues that current accountability mechanisms are inadequate to ensure that straight-commissioned agents meet their fiduciary obligations to their clients. In doing so, using agency theory, it revisits how the straight-commission compensation system creates agents’ dueling loyalties and recommends mechanisms of accountability organizations, agents, and/or clients can recognize and employ to ensure agents’ fiduciary obligations to their clients.

Citizens need accurate news to govern themselves effectively in a democratic society. Journalists argue editorial independence is necessary to ensure that the integrity of news is not compromised. However, the economic characteristics of news create conflicts between the ideal of independence and the need to pay production costs. This study analyzes those conflicts and the economic tools for resolving them. The analysis suggests ways to balance independence and economic necessity without violating mutual ethical obligations shared by journalists, audiences, and advertisers. (...) Independence, along with a good budget, tends to make for quality journalism. —Michael Wolff, The Man Who Owns the News (p. 225). (shrink)

Swedberg's two-volume collection of essays covering New Developments in Economic Sociology contains some excellent material, worthy of study by both economists and sociologists. However, there are definitional and conceptual problems in the whole project of "economic sociology" exacerbated by the disappearance of any consensus concerning the boundaries between the disciplines of sociology and economics. Neither has "economic sociology" acquired an adequately clear identity through the use of distinctive concepts or theories. Its future prospects are further questioned by recent changes within (...) economics itself, including greater attention to institutional structures, and the abandonment of strictly self-interested and context-independent rationality. Key Words: economic sociology • economics • disciplinary boundaries • social sciences. (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)

The present article attempts to evaluate various tenets of moral philosophy by reviewing empirical data from the field of organizational justice bearing on: (a) people''s concerns about fairness in organizations, and (b) the consequences of following or not following rules of justice. With respect to concerns about fairness in organizations, utilitarian claims that people believe that fairness requires distributions of reward based on merit were assessed. Similarly, evidence was reviewed bearing on the claim of psychological egoists that judgments of fairness (...) reflect a self-interested bias. Finally, Kant''s view that people should never lie was evaluated in light of evidence describing people''s actual attitudes toward lying. In all three cases, the underlying philosophical premises were concluded to be overly simplistic in view of complexities about human nature revealed in empirical research. In addition, evidence was reviewed that shed light on the teleological claims of utilitarians regarding the purported benefits of following two common organizational practices — using merit-based pay, and punishing harmdoers. Here, too, the empirical evidence (findings that these techniques do not consistently yield the greatest good for the greatest number) suggests that the premise underlying utilitarian thought is based on unfounded, overly simplistic assumptions about the effects of following various allegedly moral ideas. It is concluded that our analyses provide a useful first step toward the desired goal of business ethicists of integrating prescriptive and descriptive approaches to justice. (shrink)

The term ‘communitarianism’ is often identified with ‘altruism’: an individual is taken to be communitarian-minded if he or she is concerned with the well-being of others, and not only with his or her own well-being. While communitarianism may embrace altruism, it is most appositely viewed as having a broader connotation. Consider, for example, the puzzle of voting behaviour, discussed by Amitai Etzioni and many others ). Casting one's vote entails a cost, albeit usually a small one: however, if there are (...) large numbers voting, then one's own vote has a negligible effect on the outcome. An altruist might therefore rationally refrain from voting, since he incurs a cost, and neither he nor anybody else receives a benefit. And yet, millions of people the world over regularly vote in elections. Other examples could also be given. ‘Group-oriented’ behaviour has been the focus of a number of recent studies. C. Clague, for example, examines the roles of guilt and shame in discouraging tax evasion, and informally discusses how social influences may affect the strength of these sentiments. R. Naylor and M. Cripps examine the influence of social custom on individuals' propensity to join trade unions, while P. Nelson argues that in choosing which party to vote for people assign some weight to the preferences of persons they associate with. (shrink)

This article examines why firms engage in Corporate Social Responsibility (CSR). Specifically, it investigates the relationship between a firm's motivation to engage in CSR and the depth of its commitment. I propose that the enduring debate over CSR and financial performance is misaligned, and that scholars should instead focus on the underlying components of CSR engagement. This research sheds light on the motivational antecedents of a firm's engagement in CSR and their effect on CSR commitment. Despite calls for scientific investigation (...) of this linkage, it has received scant attention in the literature. Pursuing this area of research requires the construction of measures of CSR motivation and CSR commitment, as prior work generally lacks objective analysis. I present measures and a research methodology that test hypotheses about how CSR motivation relates to different levels of CSR commitment. The results of this research both validate and challenge current theory. This refined understanding of CSR engagement may enhance firm transparency and accountability to stakeholders. It may reduce the uncertainty in both internal and external assessments of firm CSR and the potential for social and financial impact. (shrink)

There is both individual and collective widespread concern in society about the impact of human activity and the effects of our decisions on the physical and social environment. This concern is included within the idea of sustainability. The meaning of the concept is still ambiguous and its practical effectiveness disputed. Like many other authors, this article uses as a starting point the definition proposed by the World Commission on Environment and Development, considering it to be a proposal for changing the (...) assessment of the effects of decisions, from at least two perspectives: what effects we should consider and how we should assess them. Based on this double perspective, sustainability is explored as a method for decision-making which both expands the assessment of the consequences, and also provides an objective criterion for such assessment. It will be argued that the idea of sustainability, seen from this perspective, brings to decision-making two qualities which had been partially lost: realism and impartiality. In turn, the criteria for realism and impartiality in decision-making can be used to identify the limitations of some partial approaches to sustainability, which suffer from insufficient realism, insufficient impartiality or both phenomena at once. The article concludes by demonstrating how realism and impartiality provide the basis for a new form of sustainable decision-making, which is dependent on the development of two moral virtues, prudence and benevolence, and which brings practical effectiveness and ethical sense to the concept of sustainability. (shrink)

Inter-organizational models are both a well-documented phenomena and a well-established domain in management and business ethics. Those models rest on collaborative capabilities. However, mainstream theories and practices aimed at developing these capabilities are based on a narrow set of assumptions and ethical principles about human nature and relationships, which constrain the very development of capabilities sought by them. This article presents an Aristotelic–Thomistic approach to collaborative entrepreneurship within and across communities of firms operating in complementary markets. Adopting a scholarship of (...) integration approach and evaluating the six studies of communities of organizations, we contribute an inter-organizational network model based on the assumptions about human motives and choice offered by Aristotle. We argue that the sustainability of inter-organizational communities depends on how rich is the set of assumptions about human nature upon which they are based. In order to develop and sustain collaborative capabilities in inter-organizational communities, a set of assumptions that takes both self-regarding and others’-regarding preferences as ends is required to avoid any kind of instrumentalization of collaboration, which is an end in itself. Implications for theory and practice are discussed. (shrink)

There is a need of further research to understand how social capital in the organization can be fostered. Existing literature focuses on the design of reciprocity norms, procedures and stability employment practices as the main levers of social capital in the workplace. Complementary to these mechanisms, this paper explores the impact of ethical managerial behaviour on the development of social capital. We argue that a managerial behaviour based on the true concern for the well-being of employees, as well as their (...) motivational and ethical development, can be particularly important for the generation of social capital in the organization. It is suggested that manager's behaviour should be based on three principles: following examplary behaviour, helping the employees to value the consequences of their actions in other persons, and not betraying employee's trust. When the manager conforms to those principles, he can ease the process through which employees develop associability and identification-based trust with the firm, the two main components of 'Organizational Social Capital'. Bringing ethics into the debate of social capital creation seems to us fundamental, as social capital in the firm is likely to be influenced by the ethical and motivational development of its members. (shrink)

Social and moral issues in business have drawn attention to a gap between theory and practice and fueled the search for a reconciling perspective. Finding and establishing an alternative remains a critical initiative, but a daunting one. In what follows, the assumptions of two prominent contenders are considered before introducing a third in the form of Aristotle’s ancient theory of virtue. Comparative case studies are used to briefly illustrate the practical implications of each paradigm. In the quest for a better (...) sense-making and sense-giving lens, this paper refines and encourages the search by highlighting some of the key features required of a worthy paradigmatic challenge. The author proceeds to identify a particular type of institutional community, and a promising champion, for the practical unification of strategic and normative excellence. (shrink)

Abstract:What makes a leader ethical? This paper critically examines the answer given by developmental theory, which argues that individuals can develop through cumulative stages of ethical orientation and behavior (e.g. Hobbesian, Kantian, Rawlsian), such that leaders at later developmental stages (of whom there are empirically very few today) are more ethical. By contrast to a simple progressive model of ethical development, this paper shows that each developmental stage has both positive (light) and negative (shadow) aspects, which affect the ethical behaviors (...) of leaders at that stage. It also explores an unexpected result: later stage leaders can have more significantly negative effects than earlier stage leadership. (shrink)

This article describes Chester Barnard, the author of The Functions of the Executive, one of the twentieth century’s most influential books on management and leadership. The book emphasizes competence, moral integrity, rational stewardship, professionalism, and a systems approach, and was written for posterity. Barnard emphasized the role of the manager as both a professional and as a steward of the corporation. His teachings drew on personal insights as a senior executive of AT&T, which saw good governance as the primary means (...) of winning public acceptance of its telecommunications monopoly. Barnard provided a conceptual scheme of the theory of organization based on the following structural concepts: the individual and bounded rationality, cooperation, formal organization, and informal organization. The principal dynamic concepts include communication, consent theory of authority, free will, the decision process, dynamic equilibrium and the inducement–contributions balance, and leadership, executive responsibility, and moral codes. (shrink)

For years business ethics has limited the moral duties of enterprises to negative duties. Over the last decade it has been argued that positive duties also befall commercial agents, at least when confronted with large scale public problems and when governments fail. The argument that enterprises have positive duties is often grounded in the political nature of commercial life. It is argued that agents must sometimes take over governmental responsibilities. The German republican tradition argues along these lines as does Nien-Hé (...) Hsieh. Agents in commercial life are bound by positive duties because at some point they become citizens that must take on the responsibilities of the state. In this paper we leave undisputed the claim that corporations must acknowledge positive duties. However, we demonstrate that the political grounding fails, at least in the sense that this theory insufficiently acknowledges a long standing liberal tradition that vindicates apolitical markets and clear borderlines between politics and economics. We carve out an alternative route to the grounding of one specific positive duty—the duty to further justice. Our argument is based on the moral nature of commercial agents and tries to demonstrate that the duty to further justice ensues from liberalism. Taking a Kantian perspective, it conceptualizes the duty to further justice as a moral duty, orientated toward the political domain. It is grounded in the obligation to attain moral autonomy in the civil condition. (shrink)

Institutions are a kind of social infrastructure that facilitates – or hinders – human co-ordination and allocation of resources. Thus they function as a rationality context, which simultaneously emerges from and governs human interactions. Business institutions, as they are related to human expectations, should promote the values of their stakeholders and, consequently, they are subjects of social and ethical accounting, auditing and reporting procedures. Ethical institutions make the good of their stakeholder groups part of the institution’s own good. They have (...) a clear vision and picture of integrity throughout the institution which is owned and embodied by top management, over time. Such a practice presumes that business institutions, e.g. corporations, are social cultures with character, which can exercise good or bad influence, depending on goals, policies structures, strategies that formalize relations among the individuals who build up corporations. For developing an ethical culture, corporations need a large scale of instruments as codes of ethics and other kinds of support structures throughout the organization to insure their adequate communication, oversight, enforcement, adjudication, and review. Between all these instruments, a special role could be played by the ethics officer and the ethics committee, ethics trainings, ethics audits but also by the implementation of responsibility and participatory decision making at lower levels in the organisation. (shrink)

A communitarian approach to bioethics adds a core value to a field that is often more concerned with considerations of individual autonomy. Some interpretations of liberalism put the needs of the patient over those of the community; authoritarian communitarianism privileges the needs of society over those of the patient. Responsive communitarianism’s main starting point is that we face two conflicting core values, autonomy and the common good, and that neither should be a priori privileged, and that we have principles and (...) procedures that can be used to work out this conflict but not to eliminate it. This discussion uses the debate in the US over funding for entitlements as a case study to apply the values of communitarian bioethics. (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)

To better illuminate aspects of stress that are relevant to the moral domain, we present a definition and theoretical model of “moral stress.” Our definition posits that moral stress is a psychological state born of an individual’s uncertainty about his or her ability to fulfill relevant moral obligations. This definition assumes a self-and-others relational basis for moral stress. Accordingly, our model draws from a theory of the self (identity theory) and a theory of others (stakeholder theory) to suggest that this (...) uncertainty arises as a manager faces competing claims for limited resources from multiple stakeholders and/or across multiple role identities. We further propose that the extent to which the manager is attentive to the moral aspects of the claims (i.e., moral attentiveness) moderates these effects. We identify several consequences of managerial moral stress and discuss theoretical, empirical, and practical implications of our approach. Most importantly, we argue that this work paves an important path for considering stress through the lens of morality. (shrink)

Abstract:This essay responds to Patricia Werhane’s 1994 Ruffin Lecture address, “Moral Imagination and the Search for Ethical Decision-making in Management,” using institutional theory as an analytical framework to explore conditions that either inhibit or promote moral imagination in organizational problem-solving. Implications of the analysis for managing organizational change and for business ethics theory development are proposed.

Anthropocentric and individualistic foundations result in forest management policy based on linear, single?dimensional, marginal analysis detrimental to the well?being of the forest ecosystem. Recent theories from the fields of ethics, economics, and policy analysis find that nonlinear, multidimensional analysis is possible, provided one can divorce oneself from anthropocentric and individualistic tendencies. Deep policy is introduced as a policy perspective that encourages questioning the fundamental values upon which policy decisions are made, just as deep ecology encourages a similar questioning of ecological (...) values. An experiment is proposed for forest management in the Pacific Northwest, in which a self?realizing Forest Board demonstrates punctuated equilibrium in forest management policy. (shrink)

The neoclassical paradigm assumes that shareholders'' utility is solely a function of their wealth, and prescribes that management should act in a manner consistent with share price maximization. The stakeholder view also assumes that shareholders'' utility derives from wealth, but prescribes that managers must balance the shareholder wealth maximization objective against the rights of other constituencies. Thus, while neoclassicists and stakeholder theorists have different prescriptives for management behavior, their definitions of the shareholders'' interest are consistent — shareholders are self-interested economic (...) agents whose utility is best served by share price maximization. However, if shareholders are other-interested, and attack importance to ethical and moral values, then both the neoclassical and stakeholder view derive from invalid assumptions. In this paper, I present evidence that much shareholder behavior is ethically motivated. As a result, the basis for both the neoclassical and the stakeholder view are weakened. (shrink)

Ethical guidelines for multinational corporations are included in several international accords adopted during the past four decades. These guidelines attempt to influence the practices of multinational enterprises in such areas as employment relations, consumer protection, environmental pollution, political participation, and basic human rights. Their moral authority rests upon the competing principles of national sovereignty, social equity, market integrity, and human rights. Both deontological principles and experience-based value systems undergird and justify the primacy of human rights as the fundamental moral authority (...) of these transnational and transcultural compacts. Although difficulties and obstacles abound in gaining operational acceptance of such codes of conduct, it is possible to argue that their guidelines betoken the emergence of a transcultural corporate ethic. (shrink)

Rational choice models are characterized by the image of the self-interested Homo economicus. The role of moral concerns, which may involve a concern for others' welfare in people's judgments and choices, questions the descriptive validity of such models. Increasing evidence of a role for perceived moral obligation within the expectancy-value-based theory of reasoned action and the theory of planned behavior indicates the importance of moral-normative influences in social behavior. In 2 studies, the influence of moral judgments on attitudes toward food (...) produced with the use of genetic engineering techniques and toward meat consumption is addressed. The reasons participants provide for their moral judgments indicate some foci of their moral concerns. The results of both studies corroborate earlier findings that perceived moral obligation has independent effects on behavioral intentions; they also provide evidence that such judgments may affect attitudes themselves. The results are discussed in relation to the need for attitude-behavior models to reflect the role of moral evaluations in judgment and choice. (shrink)

The paper critiques the relationship between personalist ethics and institutional economics, and accepts that institutional economics can be difficult to reconcile with humanistic management that builds on personalist ethics. Even so the paper connects impersonalist ethics with institutional economics. On this ground, the paper demonstrates how theory and practice of personalist humanist management can lean on impersonalist ethics, i.e., institutional economics. Three pathways are laid out for such leanings. It is argued that to understand these alignments is important to improve (...) the success of humanistic management, when a market economy context is given. The paper further contends that personalist humanistic management may imply abandoning the market economy when it positions itself in opposition to institutional economic reasoning that underpins the market economy. (shrink)

Management plays an important role in reinforcing ethics in organizations. To support this aim, managers must use incentive and goal programs in ethical ways. This study examines experimentally the potential ethical costs associated with incentive-driven and goal-induced employee behavior from a managerial perspective. In a quasi-experimental setting, 243 MBA students with significant professional work experience evaluated a hypothetical employee’s ethical behavior under incentive pay systems modeled on a business case. In the role of the employee’s manager, participants evaluated the ethicality (...) of the employee’s incentive-driven and goal-induced ethical/unethical behavior and the outcomes of behavior, with consequences that were either favorable or unfavorable to the organization. The results indicated that participants discounted the ethical considerations of incentive-driven and goal-induced behavior when consequences were favorable to the organization. Participants’ morals and outcome orientations were also significantly related to their ethical judgments and intentions to intervene. The implications of these findings for research and practice are discussed. (shrink)

The Adam Smith problem refers to a claimed inconsistency between the Theory of Moral Sentiments and the Wealth of Nations, regarding the portrayal of human nature in these two books. Previous research predominantly resolved the claimed inconsistency by uncovering virtuous, less selfish character traits in the Wealth of Nations. This article voices caution. I acknowledge – on methodological grounds – fundamental differences regarding the portrayal of human nature in Smith’s behavioral ethics, i.e. the Theory of Moral Sentiments, as compared with (...) Smith’s economic research. The key argument is that Smith’s two books address different research problems and hence do not, need not and cannot adopt the same view of human nature – for methodological reasons, so my argument. Adam Smith scholarship overlooked that Smith himself in considerable degrees understood “economic man” as a heuristic abstraction. I connect to the philosophies of science of Imre Lakatos and Karl Popper. (shrink)

Abstract:Alasdair Maclntyre (1984) asserts that the ethical systems of the Enlightenment (formalism and utilitarianism) have failed to provide a meaningful definition of “good.” Lacking such a definition, business managers have no internal standards by which they can morally evaluate their roles or acts. Maclntyre goes on to claim that managers have substituted external measures of “winning” or “effectiveness” for any internal concept of good. He supports a return to the Aristotelian notion of virtue or “excellence.” Such a system of virtue (...) ethics depends on an interrelationship of the community, one’s roles in that community, and the virtues one needs to perform that role well. This article develops Maclntyre’s concept of virtue ethics and shows how this paradigm fits well with existing theories about organizational behavior. (shrink)

Many researchers believe the tremendous industrial development over the past two centuries is unsustainable because it has led to unintended ecological deterioration. Despite the ever-growing attention sustainable supply-chain management has received, most SSCM research and models look at the consequences, rather than the antecedents or motives of such responsible practices. The few studies that explore corporate motives have remained largely qualitative, and large-scale empirical analyses are scarce. Drawing on multiple theories and combining supply-chain and business ethics literature, we purport that (...) instrumental, relational, and moral motives are behind a firm’s engagement in SSCM practices. Specifically, we examine the links between corporate motives, SSCM practices, and firm performance. Using a sample of 259 supply-chain firms in Germany, we empirically test five hypothesized relationships. Our results reveal that relational and moral motives are key drivers, and that firms exhibiting high levels of moral obligations tend to outperform those primarily driven by amoral considerations. Findings of this study contribute to multiple literatures espousing sustainability management and can help policy makers, stakeholder groups, and scholars develop more robust strategies for encouraging firms to practice SSCM. (shrink)

We introduce the concept of “organizational terrorism” to describe dysfunctional leaders who are abusive and who treat organizational members with contempt and disregard. After identifying the moral duties of leaders in organizations, we explain how organization members respond to their dissatisfaction with organizations through Exit, Voice, Loyalty, or Neglect. We explain why exercising voice is the most effective moral choice in dealing with dysfunctional leaders.

In this article, I argue that if we challenge some tacit assumptions of narrow rationality that endure in much of entrepreneurial studies, we can elevate entrepreneurial ethics beyond mere external constraints on rational action, and move toward fuller integration of ethics as an intrinsic part of the process of value creation itself. To this end, I propose the concept of practical wisdom as a framework for exploring entrepreneurial decision making and action that can broaden the scope of our research to (...) recognize entrepreneurship as an inherendy normative enterprise. Specifically, I suggest that a framework built upon a concept of practical wisdom enables us to adopt a richer and more complex view of entrepreneurial decision making that is well suited to the dynamic and uncertain context of entrepreneurship. Further, this framework enriches our view of entrepreneurial ethics to include consideration of the personal character, values, and purpose of the entrepreneur. By examining entrepreneurship through a lens of practical wisdom, we can open up new avenues of fruitful inquiry for scholars of entrepreneurship. (shrink)

Research about codes of corporate ethics has hitherto taken a hypothetical, correct meaning of codes for granted. The article problematises the dichotomous categories intrinsic and subjective meanings of codes. I address the question if professionals in finance accept codes of business. The particular mentality of stockbrokers and traders constructs the way they judge restrictions such as company codes of ethics. While neglecting dimensions of ethics beyond known rules, brokers and traders distrust good ethics as a possible end in itself. Many (...) professionals in the financial market perceive efforts to integrate ethical reasoning in work as only means for maximising business opportunities. (shrink)

We re-examine the construct of Moral Hypocrisy from the perspective of normative self-interest. Arguing that some degree of self-interest is culturally acceptable and indeed expected, we postulate that a pattern of behavior is more indicative of moral hypocrisy than a single action. Contrary to previous findings, our results indicate that a significant majority of subjects exhibited fair behavior, and that ideals of caring and fairness, when measured in context of the scenario, were predictive of those behaviors. Moreover, measures of Individualism/Collectivism (...) appear more predictive of self-interested behavior than out-of-context responses to moral ideals. Implications for research and practice are discussed. (shrink)

The paper maps out an alternative to a behavioural (economic) approach to business ethics. Special attention is paid to the fundamental philosophical principle that any moral ‘ought’ implies a practical ‘can’, which the paper interprets with regard to the economic viability of moral agency of the firm under the conditions of the market economy, in particular competition. The paper details an economic understanding of business ethics with regard to classical and neo-classical views, on the one hand, and institutional, libertarian thought, (...) on the other hand. Implications are derived regarding unintentional and passive intentional moral agency of the firm. The paper moves on to suggest that moral agency can be economically viable in competitive ‘market’ interactions, which is conventionally disputed by classical/neo-classical and institutional, libertarian economics. The paper here conceptualises active moral agency of the firm as the utilisation of ethical capital in firm--stakeholder interactions. This yields a reinterpretation of instrumental stakeholder theory. (shrink)

The resolution of ethical dilemmas often requires individuals to search for reasonable justifications to support their choices. Occasionally, such justifications must be made explicit to stakeholders inside or outside the organization. Other times, the justification for a decision will be known only by the decision-maker. In either case, the organizational code of conduct that governs the individual can play a vital role in providing guidelines about appropriate and inappropriate justifications. The present paper discusses the connections between organizational codes and employee (...) justifications. (shrink)

This paper seeks to advance our thinking about values and justice by studying the relationship between these constructs at the organizational level. We hypothesize that collective perceptions of moral values in organizational settings will influence collective perceptions of justice. Survey results from 619 individuals in 108 departments strongly support our hypothesis that collective values influence perceptions of both procedural and overall justice climate. We discuss these results, and their implications for thinking about relationships between moral values and justice at even (...) higher levels of analysis such as society overall. (shrink)