This article examines the relationship between economic rationality and the possibility of a moral science of business ethics. The purpose of this inquiry is to consider whether a universal and non-controversial moral science of business ethics can be defined satisfactorily, and linked to economic rationality of managers and other stakeholders of firms operating in market economies. Economic rationality connotes economic efficiency, meaning a strictly instrumental maximization of actor utility from limited resources. This rationality is a universal and value free (or (...) value neutral) axiom: actors should and generally will be rationally efficient. Utilitarianism accepting aggregation across values is the moral framework associated with market exchange. Business ethics is about normative valuation of motives, actions, and consequences. This article argues that the common foundation across relevant ethical frameworks – moral common sense, Kantianism, virtue theory, religion as a belief system, and utilitarianism – is a first or axiomatic principle of no harm without acceptable justification. A moral science of business ethics proceeds from this no harm axiom. (shrink)

Current corporate systems risk generating inequality among workers, insofar as they concentrate only on economic results by favoring, through the incentive and award system, only what can be seen, produced, and measured. As such, these systems are unable to recognize workers’ agapic behaviors – similar to the ones considered in organizational citizenship behavior literature – that cannot be quantified, i.e. workers’ generosity, humanity, kindness, compassion, help for others and mercy. Although these types of behaviors may appear unproductive or irrational, they (...) create symbols of belonging to the company and social cohesion. This article claims that beyond focusing on reward systems, companies should recognize agapic behaviors to increase workers’ intrinsic motivation. These behavioral attitudes allow fraternal relationships -as conceived in the Civil Economy tradition- to arise within organizations; moreover, they contribute to advancing new managerial practical implications in the humanistic management field. (shrink)

Current corporate systems risk generating inequality among workers, insofar as they concentrate only on economic results by favoring, through the incentive and award system, only what can be seen, produced, and measured. As such, these systems are unable to recognize workers’ agapic behaviors – similar to the ones considered in organizational citizenship behavior literature – that cannot be quantified, i.e. workers’ generosity, humanity, kindness, compassion, help for others and mercy. Although these types of behaviors may appear unproductive or irrational, they (...) create symbols of belonging to the company and social cohesion. This article claims that beyond focusing on reward systems, companies should recognize agapic behaviors to increase workers’ intrinsic motivation. These behavioral attitudes allow fraternal relationships -as conceived in the Civil Economy tradition- to arise within organizations; moreover, they contribute to advancing new managerial practical implications in the humanistic management field. (shrink)

EM Forster’s short story “The Machine Stops” from 1909 is widely reread and discussed again for some ten years as it portrays a science-fiction world resting on similar technological advancements as today in the digital era. Also management literature reviewed the short story with regard to centralized decision making, rationality and totalitarianism. I argue instead, that the main theme of the short story is – in Forster’s own words – the closing of a civilization in times of transition and facing (...) major challenges. I built the argument by original quotes from Forster and by portraying the years 1906–9, when Forster developed the short story. This era before the Great War starting in 1914 was characterized by euphoric ‘futurism’ based on groundbreaking innovations like ‘long distance messaging’, ‘penny post’, ‘animated films’, Ford’s assembly line, ‘Olivetti typewriter’, ‘feature film’, ‘large ships’ and ‘air transportation’ – the ingredients of the short story as I argue. At the same time these acquitted years were characterized by increasing disintegration, instability, rebellions and a financial crisis with bailout programs. Based on the analogy and as part of speculative philosophy I reconstruct the current great challenges with Forster’ shadow of fatalism and arrive at the urgency to put more effort in addressing and researching pathways out of the crisis and towards stabilization of business and society. (shrink)

Within contemporary discussions on organizational wisdom, management scholars frequently turn to Aristotle’s work to conceptualize wisdom as phronesis, or practical wisdom. Contrary to the prevailing view, this paper argues that Aristotle did not propose an exclusively practical or particularistic conception of wisdom but, instead acknowledged that wisdom broadly conceived consists of two types of intellectual virtue: theoretical wisdom and practical wisdom. Aristotle’s ultimate position regarding the relations between sophia and phronesis has remained, however, ambiguous, giving rise to different interpretations, and, (...) more substantively, to the major appropriations of Aquinas, Heidegger and Gadamer. An analysis of the philosophical underpinnings of exemplary contributions to management wisdom suggests that research has predominantly applied Heideggerian and Gadamerian understandings of Aristotelian wisdom, while an Aquinian interpretation is largely absent in contemporary elaborations. Interpreting the Aristotelian notion of wisdom as dedicated purely to practical phronesis narrows the discussion on the nature of wisdom within an Aristotelian framework in ways that do not give full credit to the breadth and complexity of Aristotle’s thought. (shrink)

Management cybernetics has been in development since the 1960s, although its implementation has been relatively modest. Two of the best-known proposals are Beer’s Viable System Model and Steinbruner’s Cybernetic Theory of Decision. Both are homeostatic systems, inspired by living organisms. Professor Juan A. Pérez López (1934–1996) argued that homeostatic systems are not fully appropriated for human beings, and proposed instead the “Freely Adaptive System” (FAS) model to explain the dynamics of an organization formed by two dynamic human systems. This model, (...) although it is within the management cybernetic paradigm, and does not propose any anthropological philosophy, is consistent with several features of the Aristotelian anthropological tradition, including epistemology, practical reason, and virtues. The FAS model can help as a compass for decision making by considering three basic criteria—effectiveness, internal efficiency and consistency—when two persons—an active agent and a reactive agent—interact repeatedly. The model sheds light on the interdependence of ethics and efficiency in successive interactions. (shrink)

Business Ethics: A European Review, EarlyView.

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)