In this article, I suggest and support a utilitarian approach to business ethics. Utilitarianism is already widely used as a business ethic approach, although it is not well developed in the literature. Utilitarianism provides a guiding framework of decision making rooted in social benefit which helps direct business toward more ethical behavior. It is the basis for much of our discussion regarding the failures of Enron, Worldcom, and even the subprime mess andWallStreetMeltdown. In short, the negative social consequences are constantly (...) referred to as proof of the wrongness of these actions and events, and the positive social consequences of bailouts and other plans are used as ethical support for those plans to right the wrongs.I believe the main cause of the neglect of the utilitarian approach is because of misguided criticisms. Here, I defend utilitarianism as a basis for business ethics against many criticisms found in the business ethics literature, showing that a business ethics approach relying onJohnStuartMill's utilitarianism supports principles like justice, is not biased against the minority, and is more reasonable than other views such as aKantian view when dealing with workers and making other decisions in business. I also explain utilitarian moral motivation and use satisficing theory to attempt to defend utilitarian business ethics from questions raised regarding utilitarian calculus. (shrink)

Gender greatly impacts access to opportunities, potential, and success in corporate leadership roles. We begin with a general presentation of why such discussion is necessary for basic considerations of justice and fairness in gender equality and how the issues we raise must impact any ethical perspective on gender in the corporate workplace. We continue with a breakdown of the central categories affecting the success of women in corporate leadership roles. The first of these includes gender-influenced behavioral factors, such as the (...) requirements and expectations of gendered verbal and nonverbal communication styles as well as appearance. We move on to address the impact of family on corporate leadership opportunities and success, discussing the asymmetrical evaluation of an individual’s potential, authority, and competence based on gender stereotypes of familial obligations and expectations. Finally, we address how gender impacts access to networking and sponsorship opportunities and the long-term effects of systematic limitations on women’s inclusion in the upper echelons of corporate leadership. We conclude with a summary of the questions and issues raised by our discussion and direct individuals to consider how different ethical systems and moral requirements might influence their interpretations of gender and leadership in the corporate workplace. (shrink)

This paper discusses a novel kind of argument for assessing the moral significance of acts of lying and misleading. It is based on considerations about valuable social norms that might be eroded by these actions, because these actions function as signals. Given that social norms can play an important role in supporting morality, individuals have a responsibility to preserve such norms and to prevent ‘cultural slopes’ that erode them. Depending on whether there are norms against lying, misleading, or both, and (...) how likely it is that they might be eroded, these actions can thus have different moral significance. In cases in which the rule ‘do not lie’, as a relatively simple rule, functions as a ‘focal point’, acts of misleading are often morally preferable. In other words, in such cases the possibility of ‘cultural slopes’ can ground a context-dependent slippery slope argument for a moral difference between lying and misleading. (shrink)

Virtue ethics is widely recognized as one of three major approaches in contemporary moral philosophy and arguably the most influential normative theory in business ethics. Despite its rich pedigree in Western and Eastern philosophy, most work in contemporary virtue ethics is part of the Western tradition. The purpose of this Thematic Symposium is to foster dialogue between Western and Eastern conceptions of virtue in business and engage them with questions about the nature, justification, and content of the virtues in each (...) tradition. This Editorial offers a brief introduction to the problem, a summary of Western and Eastern varieties of virtue ethics, an overview of the six articles included in this Thematic Symposium, and a section with five common themes for further exploration and future collaborative research. (shrink)

We offer a precautionary account of why business managers should proactively rethink about what kinds of automation firms ought to implement, by exploring two challenges that automation will potentially pose. We engage the current debate concerning whether life without work opportunities will incur a meaning crisis, offering an argument in favor of the position that if technological unemployment occurs, the machine age may be a structurally limited condition for many without work opportunities to have or add meaning to their lives. (...) We term this the axiological challenge. This challenge, if it turns out to be persuasive, leads to a second challenge, to which managers should pay special attention: the teleological challenge, a topic especially relevant to the broad literature about corporate purpose and governance. We argue that both the shareholder profit-maximization model and its major alternative, stakeholder theory, are insufficient to address the meaning crisis. Unless rebutted, the two challenges compel business leaders to proactively rethink the purpose of business for future society. Otherwise, businesses will be contributors to a major ethical crisis and societal externality in the coming society. (shrink)

This article discusses the transition that business ethics has undergone since its start essentially as a philosophical sub-discipline of applied ethics. Today, business ethics—as demonstrated by four examples of gatekeepers—is a well-established field in general management, and increasingly business scholars without a “formal” background in philosophy are entering the scene. I take this transition to examine an updated positioning of business ethics and offer a proposal to redefine what makes a business ethicist. I suggest taking critical thinking as the common (...) denominator of all business ethics activities beyond the academic silos of various disciplines. In conclusion, by borrowing from the post-colonial theorist Edward Said, this article offers a definition of what makes a business ethicist in the broadest possible sense. Implications are discussed, including the consequences suggesting that if critical thinking is the common denominator, business ethics-as-business-case logic is not considered a part of business ethics publications, but should be addressed within more instrumental publication outlets of business. (shrink)

Using the works of Richard Rorty and John Caputo, I want to suggest that we might be better off treating the traditional ethical theories of Kant, Mill, Aristotle and Hobbes as normative narratives rather than as justificatory schemes for moral decision making to be set up against one another. In a spirit akin to Husserl's ‘bracketing’ of metaphysics, when discussing ethical theories in business ethics, we can easily avoid metaphysics and use an approach that sees ethical theory as socially convincing (...) normative narratives – narratives that unify us with others insofar as they describe our phenomenological experiences in a way with which many of us mutually resonate. I will do this by attempting to show how John Caputo's thinking in Against Ethics and Rorty's postmodern pragmatism might be appropriated to some extent by us in business ethics. (shrink)

Today's complex and decentralized organization gives rise to organizational needs for both loyalty and institutionalized whistle blowing. However, ethicists see a contradiction between both needs. This paper argues there is no such contradiction. It shows why earlier attempts to go beyond the dilemma are not satisfying. The solution proposed in this paper starts from an organizational perspective instead of an individual one. It does so by reframing the concept of loyalty into “rational loyalty”. This means that the object of loyalty (...) is not the physicality of an organization, but its corpus of explicit mission statement, goals, value statement and code of conduct. An implication is that organizations are – as their side of the duty of loyalty – obliged to institutionalize whistle blowing. (shrink)

This article reports the results of research to develop a survey instrument and its use to validate an ethical business culture construct (CEBC Model). The reported three-stage quantitative study builds on our previous qualitative work, aimed at identifying dimensions of ethical business cultures. The research resulted in a parsimonious construct, covering five dimensions of ethical business cultures, and a ten-question instrument, measuring this construct. In this article, we report results of exploratory and confirmatory factor analyses and convergent construct validity testing, (...) discuss the potential applications of the construct and instrument in assessment and development of ethical business cultures, and provide recommendations for industry practitioners and for further research. (shrink)

Today's complex and decentralized organization gives rise to organizational needs for both loyalty and institutionalized whistle blowing. However, ethicists see a contradiction between both needs. This paper argues there is no such contradiction. It shows why earlier attempts to go beyond the dilemma are not satisfying. The solution proposed in this paper starts from an organizational perspective instead of an individual one. It does so by reframing the concept of loyalty into rational loyalty. This means that the object of loyalty (...) is not the physicality of an organization, but its corpus of explicit mission statement, goals, value statement and code of conduct. An implication is that organizations are – as their side of the duty of loyalty – obliged to institutionalize whistle blowing. (shrink)

Networked computer systems simultaneously destroy and build up old and new kinds of global and local jobs. Digitally networked ultra-modern structures in work, company and administration bring us turbulent times. This development is analyzed from an ethical, technological and economical point of view and illustrated by empirical data. The main emphasis of this article is placed on considerations, from the point of view of business ethics, of the conception of workplaces – in the office, at home and abroad (mobile work) (...) – equipped for computer-supported information exchange. In order to make better use of these new technologies, ethical, action-oriented guidelines should be considered. (shrink)

Rights claims are ubiquitous in modernity. Often expressed when relatively weaker agents assert claims against more powerful actors, especially against states and corporations, the prominence of rights claims in organizational contexts creates a challenge for virtue-based approaches to business ethics, especially perspectives employing MacIntyre’s practices–institutions schema since MacIntyre has long been a vocal critic of the notion of human rights. In this article, I argue that employee rights can be understood at a basic level as rights conferred by the rules (...) constitutive of practices. As such, employee rights correspond to the obligations of practitioners to treat fellow practitioners according to the standards of excellence and requirements of justice. Thus, one way that managers can ensure that their core practice is well-functioning is to recognize employee rights. One implication of this argument is that managers should adopt a more positive stance toward labor unions, insofar as they are a key way for employees to ensure that their voice is heard, and their rights respected. (shrink)

During the past ten years Integrative Social Contracts Theory (ISCT) has become part of the repertoire of specialized decision-oriented theories in the business ethics literature. The intention here is to (1)␣provide a brief overview of the structure and strengths of ISCT; (2) identify recurring themes in the extensive commentary on the theory including brief mention of how ISCT has been applied outside the business ethics literature; (3) describe where research appears to be headed; and (4) specify challenges faced by those (...) who seek to reform ISCT. Key themes in the critiquing literature relate to (a) the identification process for hypernorms; (b) justification of the recognition of hypernorms; (c) proposals for considering meso or meta norms; (d)␣clarification of the relationship between stakeholder concepts and ISCT; (e) problems with potentially unoccupied moral free space; (f) sources of ethical obligation within the ISCT framework; and (g) the potential role for concepts of stakeholder dialogue and engagement. (shrink)

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

In this article, we propose an adaption to stakeholder theory whereby stakeholders are conceptualized on the basis of their social identity. We begin by offering a critical review of both traditional and more recent developments in stakeholder theory, focusing in particular on the way in which stakeholder categories are identified. By identifying critical weaknesses in the existing approach, as well as important points of strength, we outline an alternative approach that refines our understanding of stakeholders in important ways. To do (...) so, we draw on notions of social identity as the fundamental basis for group cohesion, mobilization, and action. A new form of cross-mapping as a basis for stakeholder identification is advanced and key research questions are set out. (shrink)

This paper proposes that managers add an attention to virtues and vices of human character as a full complement to moral reasoning according to a deontological focus on obligations to act and a teleological focus on consequences (a balanced tripartite approach). Even if the criticisms of virtue ethics cloud its use as a mononomic normative theory of justification, they do not refute the substantial benefits of applying a human character perspective – when done so in conjunction with also-imperfect act-oriented perspectives. (...) An interactive tripartite approach is superior for meeting the complex requirements of an applied ethic. To illustrate how deficiencies of a "strong" virtue ethics formulation can be overcome by a balanced tripartite approach, this paper compares normative leadership paradigms (each based on a combination of virtue, deontology, or consequentialist perspectives) and the dangers inherent in each. The preferred paradigm is servant leadership, grounded in a tripartite ethic. Effective application of such an ethics approach in contemporary organizations requires further empirical research to develop a greater understanding of the moral language actually used. Meeting this challenge will allow academics better to assist practicing managers lead moral development and moral reasoning efforts. (shrink)

The purpose of this study was to assess the relationships among ethical context, organizational commitment, and person-organization fit using a sample of 304 young working adults. Results indicated that corporate ethical values signifying different cultural aspects of an ethical context were positively related to both organizational commitment and person-organization fit. Organizational commitment was also positively related to person-organization fit. The findings suggest that the development and promotion of an ethical context might enhance employees' workplace experiences, and companies should consider adopting (...) ethical policies that support principled conduct, punish unethical actions, and increase individual perceptions of an ethical company environment. (shrink)

This essay provides an overview of business ethics. I describe important issues, identify some of the normative considerations animating them, and offer a roadmap of references for those wishing to learn more. I focus on issues in normative business ethics, but discuss briefly the growing body of work in descriptive business ethics. I conclude with a comment on the changing nature of the field.

Leo Tolstoy was on to behavioral ethics before there was such as a thing as behavioral ethics. Three scenes from his magnum opus, War and Peace, demonstrate that Tolstoy diagnosed some of the same problems that occupy modern behavioral ethics: confirmation bias, slippery-slope reasoning, and illusions of control. However, whereas modern behavioral ethics has done more to diagnose problems than to prescribe solutions, Tolstoy’s theories of moral psychology and leadership provide direction for human moral self-cultivation. This analysis of War and (...) Peace also suggests that literary fiction can depict worlds at least as fertile as the real world for studying business ethics. Building upon this example, in an age and field which seems too often to prioritize scientific wisdom over that of the humanities, I speculate about how literary fiction can expand our research into more diverse actors and worlds of modern capitalism. (shrink)

The purpose of this article is to help educators and managers learn about a variety of win—win solutions to problems with ethical dimensions. The hope is that the larger the variety of win-win solutions we can consider, the higher the probability that we can find at least one that satisfies both ethical and material concerns. This article is motivated by the experiences of managers who have found that they need win-win solutions because it is very difficult to effectively advocate ethical (...) solutions to problems that lose money or do not make money for their organizations. The purpose of the article is not to build theory or a theoretical taxonomy of winwin solutions, but to gather from eclectic theoretical and applied sources a variety of win-win solutions that can help solve problems with ethical dimensions. Examples of the types of win—win solutions are illustrated. Ethical problems with win—win solutions are also considered. (shrink)

This paper highlights the potential harms in the current state of business ethics education and presents an alternative new model of business ethics education. Such potential harms in business ethics education is due largely to restricted cognitive level of reasoning, a limited level of ethical conduct which remains only responsive and adaptive, and the estrangement between strategic thinking and ethical thinking. As a remedy for business ethics education, denatured by these potential harms, a new dynamic model of business ethics education (...) is proposed. The new model is composed of a basic foundation for business ethics education and three practical components of business ethics education. The basic foundation comprises of ethical reasoning, moral sentiments, and ethical praxis. Three practical components of business ethics education are, respectively, to intensify moral imagination, to develop ethical wisdom and courage, and to enhance meta- strategic competences. The ultimate purpose of these practical components is to help moral subjects to conduct ethical leadership, to actualize integrity between individuals and organization, and to fulfill the social responsibility of business firms. This new model is expected to attract attention to the effective business ethics education both in college and in industry, and to be used as a benchmark for new curriculum designs and development of teaching methods. Finally, some teaching methodologies and pedagogical experiments are introduced and discussed according to this new model of business ethics education. (shrink)

In this essay, I explore the prospects for a virtue ethic approach to business. First, I delineate two fundamental criteria that I believe must be met for any such approach to be viable: viz., the virtues must be exercised for the sake of the good of one’s life as a unitary whole (contra role-morality approaches) and for the common good of the communities of which one is a part as well as the individual good of their members (contra egoist approaches). (...) Second, I argue that these two criteria can be met only if we are able to reconceive and transform the nature of work within contemporary business organizations. In particular, what is needed, I argue, is a retrieval of something like the older ideal of work as a “vocation”, or “calling”, whereby work can be viewed as a specific aspect of a more general calling to pursue, through the practice of the virtues, “the good life” both for ourselves and for others. Lastly, I consider some important challenges to this “vocational virtue ethic” approach to work within contemporary business organizations and offer a few suggestions for how they might be met. (shrink)

Recently, the ethical rather than just the economic resonance of entrepreneurship has attracted attention with researchers highlighting entrepreneurship and ethics as interwoven processes of value creation and management. Recognising that traditional normative perspectives on ethics are limited in application in entrepreneurial contexts, this stream of research has theorised entrepreneurship and ethics as the pragmatic production of useful effects through the alignment of public—private values. In this article, we critique this view and use Kant's concept of reflective judgement as discussed in (...) his Critique of the Power of Judgement to theorise ethical entrepreneurial practice as the capacity to routinely break free from current conventions through the imaginative creation and use of self-legislating maxims. Through an analysis of the narratives of 12 entrepreneurs, we suggest there are three dimensions to reflective judgement in entrepreneurial contexts: (1) Social Performance; (2) Public Challenge and; (3) Personal Autonomy. Whilst the entrepreneurs were alive to the importance of commercial return, their narratives demonstrated further concern for, and commitment to, standards that they rationally and imaginatively felt as being appropriate. In our discussion, we integrate the findings into existing theoretical categories from entrepreneurship studies to better appreciate ethics within the context of value creation. (shrink)

There is considerable consensus on the idea that Aristotelian virtue ethics advocates moral realism. In numerous works, the well-known business ethicist Edwin Hartman grapples with reconciling the unitary vision of life that a particular kind of moral realism advocates and the pluralist respect for diverse cultures and belief systems that comprise our world. This paper closely follows Hartman's efforts to reconcile his liberal values with his guarded support for Aristotelian moral realism. We argue that the realist interpretation of Aristotle's function (...) argument can be employed to strengthen Hartman's critique of the concept of Homo economicus, which is often posited by its proponents and critics alike as the only viable position for a business manager. Drawing from Aristotle, the paper posits a novel notion of species-excellence as the ultimate telos of human life and an objective basis for a critique of Homo economicus. (shrink)

A review of the stakeholder literature reveals that the concept of "normative core" can be applied in three main ways: philosophical justification of stakeholder theory, theoretical governing principles of a firm, and managerial beliefs/values influencing the underlying narrative of business. When considering the case of Wall Street, we argue that the managerial application of normative core reveals the imbedded nature of the fact/value dichotomy. Problems arise when the work of the fact/value dichotomy contributes to a closed-core institution. We make the (...) distinction between open- and closed-core institutions to show how in the case of the closed-core, ethical decision-making is viewed by the institution as a separate domain from the core business of the institution. The resulting blind spot stifles meaningful exchanges with stakeholders attempting to address the need for reform. We suggest in conclusion that ethical considerations are less about casting a value judgment and more about creating a process for meaningful conversation throughout an institution and its stakeholders. (shrink)

This article begins with a detailed analysis of how the choice situation of a social contract for international business ethics can be constructed and justified. A choice situation is developed by analyzing conceptions of the multinational firm and the domain of international business. The result is a hypothetical negotiation between two fictional characters, J. Duncan Grey and Elizabeth Redd, who respectively represent the interests of businesses and communities seeking to engage in international trade. The negotiators agree on ethical principles governing (...) wages, the environment, and compliance social and cultural norms. These principles are then shown to rest in wide reflective equilibrium with considered moral judgments on international business ethics, which are drawn from international agreements, such as the UN Declaration on Human Rights, and voluntary business initiatives, such as the Global Sullivan Principles and the UN Global Compact. (shrink)

One of the prevailing explanations of the corporate scandals of the Enron era and the recent financial crisis is the failure of professional gatekeepers—such as auditors, corporate lawyers, and securities analysts—to detect and disrupt corporate misconduct. The alleged solution to this failure—typically proposed and justified on consequentialist grounds—is to impose legal liability on professionals. The purpose of this paper is to critically examine the normative foundations of gatekeeper liability. In the course of this paper, I shall defend the claim that (...) gatekeeper liability may be morally objectionable not only on grounds of fairness but also on consequentialist grounds. The expected contribution of this paper is threefold. First, it systematizes the framing and moral justification of gatekeeping duties. Second, it calls into question the normative underpinnings for targeting intermediaries instead of primary wrongdoers. Third, it anticipates some negative results of gatekeeping strategies in the accounting profession, specifically in the realm of clientele selection, the expectation gap, and auditor compensation. (shrink)

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)

Today, ethics has become an important dimension for businesses. Broadly, there are two lines of thought on this issue. The first one suggests that ethical issues have to be resolved through development of appropriate ethical standards at personal or organizational level. The second one emphasizes the process of developing ethical standards rather than the standards themselves. This paper argues that the latter line of thought, when taken forward, implies that ethical dimension is essentially challenging businesses to transform themselves and their (...) people at a very fundamental level in order to evolve continuously to higher levels of perfection. The deeper significance is that in future, businesses will play a dominant role in bringing forth the human spirit, an aspect that is hitherto perceived to be in the purview of other human activity systems like the Church or family. This restructuring at the societal level is probably the most fundamental message of this age of growing interdependence. (shrink)

The encyclical proclaims the centrality of human development, which includes acting with gratuitousness and solidarity in pursuing the common good. This paper considers first whether such relationships of gratuitousness and solidarity can be analysed through the prism of traditional theories of social psychology, which are highly influential in current management research, and concludes that certain aspects of those theories may offer useful tools for analysis at the practical level. This is contrasted with the analysis of such relationships through Aristotelian virtue (...) ethics (in particular as interpreted by MacIntyre 1985 , 1998 , 1999 ), which is emerging as a strong force in the field of business ethics, and which has strong conceptual similarities with the ideas put forward by Benedict XVI. Aristotelian virtue ethics offers a better fit with the aims of the encyclical at the theoretical level but it presents a number of challenges at the practical level, which the paper suggests may be addressed through the integration in its analysis of human action of models derived from social psychology. (shrink)

This article investigates whether Aristotelian practical wisdom could be considered as an advantageous "sense" in management practice and as an alternative rationality to that defended by modern tradition. Aristotelian practical wisdom is re-conceptualised in order to emphasise the intuitive component of practical wisdom, an aspect often sidelined by business ethicists. Levinas' insights are applied to Aristotelian practical wisdom in such a way that the role of emotion in moral action would be reinforced. It is argued that the role of emotion (...) in moral action and wise deliberation requires re-definition in accordance with the indeterminate character of the moral. Moreover, I argue Levinas' approach might be helpful to bring to light the conflictual aspect inherent in being prudential. By reinterpreting the intuitive component of practical wisdom as Levinas' moral impulse, wisdom theory is expanded to include the face, and to better account for the conflictive and the emotional aspects of phronesis. This approach enables practical wisdom to be understood as a human "sense" in ways that assist how we manage and understand contemporary organizations. (shrink)

This paper challenges a pervasive, if not always explicit assumption of the present state of theorising in business ethics. This is the idea that a workable theory of organizational ethics must provide a unified perspective on its subject matter. In this paper we will sketch the broad outlines of an alternative understanding of business ethics, which focuses on constraints on corporate conduct that cannot reasonably be rejected. These constraints stem from at least three different levels or spheres of social reality, (...) i.e. the preconditions of a well-ordered society, the internal morality of economic activity and the preconditions of autonomous agency. (shrink)

Shareholders of corporations have their liability for actions of the corporation limited by law. Unlike the equity holder in a partnership or proprietorship, the assets that a shareholder has distinct from her holdings in the enterprise can not be taken to satisfy liabilities arising from actions of the enterprise itself. This paper argues that a reasonable principle of fairness argues for an alternative to limited liability, proportional liability. Proportional liability makes a shareholder liable for the same proportion of a corporation''s (...) excess of liabilities over assets that her number of shares bears to the total number of shares outstanding. The key idea is that it is unfair in situations in which explicit agreements can not be reached for shareholders to bear only limited risk when they may receive gains from stock dividends and appreciation that are not limited to any pre-determined amount. Proportional liability has not been much examined in the financial literature. Good utilitarian arguments have been given for limited liability over unlimited liability for corporate shareholders, but these arguments do not clearly support the choice of limited liability over proportional liability. (shrink)

The empirical findings in Collins and Porras'' study of visionary companies, Built to Last, and the normative claims about the purpose of the business firm in Centesimus Annus are found to be complementary in understanding the purpose of the business firm. A summary of the methodology and findings of Built to Lastand a short overview of Catholic Social Teaching are provided. It is shown that Centesimus Annus'' claim that the purpose of the firm is broader than just profit is consistent (...) with Collins and Porras empirical finding that firms which set a broader objective tend to be more successful than those which pursue only the maximization of profits. It is noted however that a related finding in Collins and Porras, namely that the content of the firm''s objective is not as important as internalizing some objective beyond just profit maximization, can lead to ethical myopia. Two examples are provided of this: the Walt Disney Company and Philip Morris. Centesimus Annus offers a way to expose such myopia, by providing guidance as to what the purpose of the firm is, and therefore as to what kinds of objectives are appropriate to the firm. (shrink)

Recent research on the role of ethics in the organizational culture literature found practically the whole literature reduced to a debate between ethical rationalism and ethical relativism. The role of the past in the form of tradition to maintain and improve moral reflection is completely missing. To address this gap in the literature on the level of practice, the concepts of moral memory and moral tradition are applied to data on 22 companies that have long-standing moral practices. In this way, (...) the practice of moral traditions can be explored with recent conceptual advances and a list of best practices delineated. Moral memory is the recollection of and attachment to the succession of past events and experiences that maintains moral tradition. Moral tradition is the continuing transmission and reception of related moral themes through multiple generations of employees. It is found that companies that maintain moral traditions tend to develop “family” cultures with considerable compassion for workers as persons who have non-economic needs and rights. These companies also temper the role of leadership, insisting that leaders are responsible for and are evaluated by the company’s moral traditions. Finally, moral traditions are essential mechanisms through which companies paradoxically both stimulate and limit competitive behavior. (shrink)

This paper highlights the potential harms in the current state of business ethics education and presents an alternative new model of business ethics education. Such potential harms in business ethics education is due largely to restricted cognitive level of reasoning, a limited level of ethical conduct which remains only responsive and adaptive, and the estrangement between strategic thinking and ethical thinking. As a remedy for business ethics education, denatured by these potential harms, a new dynamic model of business ethics education (...) is proposed. The new model is composed of a basic foundation for business ethics education and three practical components of business ethics education. The basic foundation comprises of ethical reasoning, moral sentiments, and ethical praxis. Three practical components of business ethics education are, respectively, to intensify moral imagination, to develop ethical wisdom and courage, and to enhance meta-strategic competences. The ultimate purpose of these practical components is to help moral subjects to conduct ethical leadership, to actualize integrity between individuals and organization, and to fulfill the social responsibility of business firms. This new model is expected to attract attention to the effective business ethics education both in college and in industry, and to be used as a benchmark for new curriculum designs and development of teaching methods. Finally, some teaching methodologies and pedagogical experiments are introduced and discussed according to this new model of business ethics educaiton. (shrink)

Social norms are an important input for ethical decisions in any business context. However, the cross-cultural discovery of extant social norms presents a special challenge to international management because norms may be inscrutable to outsiders. This article considers the contribution of Integrative Social Contracts Theory (ISCT) to the analysis of social norms in business ethics. It questions the origins and dynamics of norms from a sociological perspective, and identifies a tension between prescriptive efforts to make norms obligatory and positivist accounts (...) that describe norms as evolving and unstable. In the presence of dynamic and incomplete norms, managers can either deliberate with stakeholders to make norms flexible or codify norms to make them rigid. This essay argues that deliberation is the only reliable method for anticipating emergent norms. (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)

In this paper, we review two seemingly unrelated debates. In business ethics, the argument is about values: are they universal or emergent? In entrepreneurship, it is about opportunities – are they discovered or constructed? In reality, these debates are similar as they both overlook contingency. We draw insight from pragmatism to define contingency as possibility without necessity. We analyze real-life narratives and show how entrepreneurship and ethics emerge from our discussion as parallel streams of thought.

The present research is an attempt to determine the contribution of the management system and the institutional framework to the efficiency of values-based management. The interest in the question of efficiency stems from the fact that to grasp this founding principle of management is essential for any effort of evaluation and valuation accompanying the adoption of any type of management. Our choice of an organizational variable as well as an environmental one to explain the phenomenon of efficiency, intends to cover (...) sources of influence, both internal and external to the organization. As such, this study addresses the following question: What is the effect of the management system and the institutional framework on the efficiency of values-based management? The main theoretical and empirical results reveal that these two variables contribute jointly to the efficiency of VBM. More precisely, the empirical results obtained, in particular through the canonical correlation analysis, specify that both variables influence the efficiency of VBM in different degrees, with the effect of the management system being superior. The latter explains the efficiency of the management by the values at a rate of 52.59 %, whereas the institutional framework explains it only up to 25.15 %. (shrink)

Integrative social contracts theory (ISCT) has been an influential theory in normative business ethics for well over a decade, drawing attention both as an object of criticism and as a source of inspiration. In this paper I argue that, despite this attention, the fact that it is a genuinely pluralistic theory, in the tradition of pluralistic theories of political philosophy, is often overlooked. It is in the notion of moral free space that this pluralism is most clearly expressed. This oversight (...) is unfortunate for two reasons. Firstly, it prevents the potential of ISCT, as a normative theory of business ethics, from being appreciated fully; secondly, it leads us to ignore resources that could help tackle its most problematic flaws. In this second respect, I show how some of these flaws could be addressed by paying closer attention to the similarities between ISCT and John Rawls' theory of Political Liberalism. (shrink)

This article identifies an integrated teaching strategy that was originally developed for engineers, the so-called ‘micro-insertion’ approach, as a practical and effective means to teach ethics at business schools. It is argued that instructors can incorporate not only generic or thematic learning objectives for students into this method (i.e., the intended content of what is being taught: in our case, an underlying ethical base for doing business), but also do so via a strategically integrated approach regarding the appropriate mix and (...) timing of these micro-insertions. With this in mind, we propose a qualitative and example-based approach that endeavors to provide a versatile way for business teachers to incorporate ethics into their general business classes. We also present a conceptual and theoretical framework that underpins this method, and we further provide a set of specific examples and a practical table that show how business instructors might integrate ethics-oriented micro-insertions into their teaching. (shrink)

Social contract theory offers a powerful method and metaphor for the study of organizational ethics. This paper considers the variant of the social contract that has arguably gained the most attention among business ethicists: integrative social contracts theory or ISCT [Donaldson and Dunfee: 1999, Ties That Bind (Harvard Business School Press, Boston)]. A core precept of ISCT - that consent to membership in an organization entails obligations to follow the norms of that organization, subject to the moral minimums of basic (...) human rights - is a reasonable and appealing notion. One potential challenge for those attempting to apply this idea, however, lies in the dynamic nature of social norms. Organizational norms evolve, often through the conscious efforts of community members and leaders. As currently formulated, ISCT offers a framework that under-appreciates the evolving nature of moral norms. In this paper, we extend ISCT by considering the circumstances under which the terms of and parties to social contracts change. We also consider a number of principles that should be considered as the terms and parties to organizational social contracts change. (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)