In this chapter, we explore Xenophon’s philosophy of management and identify nine dimensions of business management, as well as the competencies that good management requires. The scientific contribution of this chapter does not only consist in the fact that this is the first publications in which Xenophon’s philosophy of management is systematically analyzed. Historical analysis can also help to question the self-evidence of our contemporary conceptualization of management. Xenophon’s philosophy of management enables us to criticize the contemporary focus on profit (...) maximization and to articulate an intrinsic relation between business and society; to criticize the contemporary disconnectedness of business management and to develop a broader set of individual competencies and know-how that is required for business managers; to criticize the contemporary focus on management and control; and to rehabilitate the role of business management as ability and capacity that involves know-how, actual engagement, and virtuous competencies. Finally, this concept of management challenges contemporary conceptualizations of the differences between private and public management in political philosophical debates. (shrink)

As a philosopher, whose theory about economics and business is systematically connected to a moral and political philosophy, Aristotle provides a rich conceptual framework to reflect upon personal wellbeing, the wealth of households, and the welfare of the state. Even though Aristotle has mainly been portrayed as an enemy of business, interest in his teachings has been on the rise among management scholars. Several articles have examined Aristotle's position with regard to current managerial approaches such as total quality management, knowledge (...) management, crisis management, and networking. Even though Aristotle is a constant reference point for business ethics scholars, only rarely have there been attempts to see what consequences his thinking would have for reorienting business philosophy and organizational strategy. In this study, we wiD outline how Aristotle's theory of household management can be applied to the management of modern corporations. We argue that conceptions of chrematistike and oikonomia provide a basis to discuss the relationship between business and society and to draw important conclusions for business management. (shrink)

In response to conventional rationalistic approaches to management and corporate governance, the Aristotelian tradition is emerging as a basis for alternative theories in which practical wisdom is central. This paper, following Aristotle and Thomas Aquinas, considers the specificity of “political wisdom” -directed to the common good- as being different from individual practical wisdom. We suggest that the business firm is a “political community”, understood as a whole formed by free and intelligent individuals called to cooperate for common goals and to (...) pursue a common good. This orientation toward the common good requires political wisdom. After discussing the concepts of “political wisdom” and the business firm as “political community” we propose a number of implications of political wisdom in management and corporate governance. (shrink)

Behaviorism is consistent with the assumptions of perfect competition, with the homo economicus model, and with a form of ethics that enshrines market-based notions of utility, justice, and rights and encourages rational maximizing. Economics and business courses foster this deficient form of ethics, assuming an overriding desire for money, which, according to MacIntyre and Aristotle, crowds out the associative virtues. These beliefs, often associated with Taylor and Friedman, lead to such practices as incentive compensation, which would be effective only if (...) employees were homines economici and thus rational in the sense of knowing how to satisfy whatever desires they have. Against Davidson’s view that psychology cannot be a natural science, Aristotle believes that there can be a teleological, if not exact, science of behavior. Aristotle believes that emotions and objectives may be rational or irrational. But rationality—phronesis, practical wisdom—is not a matter of applying algorithms. Doris questions whether character generates the first premises of an agent’s practical syllogisms, while Haidt has argued that we often act on emotions rather than on the basis of the reasons that we claim motivate us. Aristotle agrees that many people are not virtuous and that weakness of the will is a common occurrence, and he agrees that emotion drives actions. But if you are virtuous, your emotions and desires support your rationality. Aristotle gives us reason to reject the notion that people are homines economici and to treat them as rational deliberators, in part by creating an appropriate culture. The claim that it is in the nature of human beings to deliberate rationally is in part aspirational, but also in part scientific—in Aristotle’s modest sense. (shrink)

Parts 1 to 3 of this paper explore the theoretical rationale and ethical significance of Alasdair MacIntyre’s twin distinctions between goods internal and external to practices and between goods of excellence and of effectiveness. Parts 4 and 5 then relate this analysis to his critique of contemporary institutions, compartmentalisation and management. My argument is that these concepts express a teleological theory of why and how goods should be ordered which, in refusing to identify practical rationality with institutional actuality and instead (...) differentiating between rival traditions, progresses beyond the theories of Aristotle and of other, past and present anglophone Aristotelians. (shrink)

If we presume an organizational ontology of complex, dynamic change, then what role remains for strategic intent? If managerial action is said to consist of adaptive responsiveness, then what are the foundations of value on the basis of which strategic decisions can be made? In this essay, we respond to these questions and extend the existing strategy process literature by turning to the Aristotelian concept of prudence, or practical wisdom. According to Aristotle, practical wisdom involves the virtuous capacity to make (...) decisions and take actions that promote the "good life" for the "polis". We explore contemporary interpretations of this concept in literature streams adjacent to strategy and determine that practical wisdom can be developed by engaging in interpretative dialogue and aesthetically-rich experience. With these elements in view, we re-frame strategy processes as occasions to develop the human capacity for practical wisdom. (shrink)

This paper is the Introduction to the Special Issue comprising a selection of papers submitted to the 19th IESE International Symposium on Ethics, Business and Society. The main topic of the Symposium was “Ethical Challenges in Strategic Management.” The paper presents the rationale and context of the Symposium. We begin with a brief historical overview of the evolution of the relationship between ethics and strategy. We propose four pillars that are at the core of a definition of strategy and elaborate (...) on how ethics can contribute to strategy. We present the six papers that make up this selection within the framework of the four aspects introduced in the previous section. We conclude with some proposals for further research that consider the content of the papers. (shrink)

Managers face increasingly volatile, uncertain, complex and ambiguous situations that are more and more challenging to navigate. Ethical decision-making has become particularly complicated considering that codes, frameworks and protocols have proven deficient in resolving moral dilemmas. Managers’ unpreparedness to handle such challenges reflects the ineffectiveness of business ethics education, calling for new approaches towards training managers. This article makes a case for transforming business ethics education by taking it back to its roots. This implies the re-incorporation of its foundational discipline: (...) philosophy. Philosophy offers a rigorous approach for decision-making, which helps managers face the unknown. It helps them analyse situations from different perspectives, reconsider how things are done and examine the underlying premises of their thinking. It can strengthen one of the most central managerial competencies: the ability to reason, especially ethically. As the foundational discipline of business, ethics and their intersect, philosophy is uniquely positioned to elevate business ethics education for managers at all levels. It can help current and future managers to reflect more deeply and critically on the ethical issues they face. (shrink)