Abstract:This article defines and analyzes the nature of a trust relation. It specifically examines the internal and external morality of trust relations and the ethical limits of those relations. It examines both the ends pursued by trust relations as well as the means by which trust is developed. It shows that the ends need to be evaluated by traditional ethical theories, while the ethical constraints of the trust process depend upon the specific bases of trust. In addition, the consequences of (...) the trust process differ in their impact on the trustor and third parties. Despite the popularity of trust in the literature, this study recommends caution in the use of trust as an ethical basis for economic organization. The optimal form of trust, although still subject to limitations, is fairness-based trust. (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)

Social contract theory has a rich history. It originated among the ancients with recognition that social arrangements were not products of nature but convention. It developed through the centuries as theorists sought ethical criteria for distinguishing good conventions from bad. The search for such ethical criteria continues in recent attempts to apply social contract theory to organizations. In this paper, I question the concept ofconsent as a viable ethical criterion, and I argue for an alternate principle of impartiality as a (...) more appropriate moral norm in a social contracttheory of organizations. (shrink)

Abstract:There is good reason to take a virtue-based approach to business ethics. Moral principles are fairly useful in assessing actions, but understanding how moral people behave and how they become moral requires reference to virtues, some of which are important in business. We must go beyond virtues and refer to character, of which virtues are components, to grasp the relationship between moral assessment and psychological explanation. Virtues and other character traits are closely related to (in technical terms, they supervene on) (...) personality traits postulated by personality psychologists. They may therefore be featured in respectable psychological explanations. But good character fits no familiar psychological pattern. A person of good character is sufficiently self-aware and rational that his or her virtues are not accompanied by the vices that psychologists find usually associated with them. A course in business ethics can help develop this self-awareness, which a good life in business requires. (shrink)

Business scholars have recently proposed that the virtue of personal wisdom may predict leadership behaviors and the quality of leader–follower relationships. This study investigated relationships among leaders’ personal wisdom—defined as the integration of advanced cognitive, reflective, and affective personality characteristics (Ardelt, Hum Dev 47:257–285, 2004)—transformational leadership behaviors, and leader–member exchange (LMX) quality. It was hypothesized that leaders’ personal wisdom positively predicts LMX quality and that intellectual stimulation and individualized consideration, two dimensions of transformational leadership, mediate this relationship. Data came from (...) 75 religious leaders and 1–3 employees of each leader (N = 158). Results showed that leaders’ personal wisdom had a positive indirect effect on follower ratings of LMX quality through individualized consideration, even after controlling for Big Five personality traits, emotional intelligence, and narcissism. In contrast, intellectual stimulation and the other two dimensions of transformational leadership (idealized influence and inspirational motivation) did not mediate the positive relationship between leaders’ personal wisdom and LMX quality. Implications for future research on personal wisdom and leadership are discussed, and some tentative suggestions for leadership development are outlined. (shrink)

Abstract:Total Quality Management (TQM) has been the object of extensive discussion within the popular literature and is increasingly of interest among management scholars. Recent scholarship has focused on the theoretical foundations of TQM, particularly what makes it work, why so many firms have had problems implementing it, and under what circumstances it may create a sustainable advantage for individual firms. This paper extends the work in theory development regarding TQM and offers an empirically testable theoretical model of its function. The (...) central claim of the paper is that embedded within TQM there are a set of moral values (“value dynamics”) that must be developed and maintained if it is to work, and that seeing them as moral values has significant theoretical and practical implications. That is, how TQM is understood and “enacted” (Weick 1979) by managers plays a significant role in determining its success. The discussion is linked to the ethics literature, normative implications of the model are explored, and directions for future research are outlined. (shrink)

Abstract:This paper reports a phenomenological sub-study of a larger project investigating the way Hong Kong Chinese staff tackled their own ethical dilemmas at work. A special analysis was conducted of eight dilemma cases arising from a request by a boss or superior authority to do something regarded as ethically wrong. In reports of most such cases, staff expressed feelings of contractual or interpersonally based obligation to obey. They sought to save face and preserve harmony in their relationship with authority by (...) choosing between “little potato” obedience, token obedience, and undercover disobedience. Only where no such obligation existed was face in relation to authority unimportant, and open disobedience chosen. In Kohlbergian terms, ethical reasoning at the conventional stages (three and four) predominated in dilemmas of obedience. Findings imply that if corruption were to originate at the top, codes of conduct recently introduced into Hong Kong may be of limited effect in stalling it. (shrink)

This paper argues for an Aristotelian account of good leader as ethical and effective by outlining the ethical motivation and the constraints that moral luck imposes on effectiveness. This account of a good leader, which is grounded on practical wisdom, is assessed against the contemporary leadership debate by addressing the tension between the ethical and the effective and by contrasting the Aristotelian virtuous leader against the dominant contemporary types of leadership. My Aristotelian proposal of a virtuous leader relies on an (...) isomorphic relation between the ethical and political domains by proposing that as virtue is to vices rooted in calculation and desires, so the virtuous leader is to the calculative bureaucrat and the emotionally obsessed tyrant. (shrink)

The aim of this article is to undertake a systematic literature review (SLR) of empirical research that uses multi‐source methods for collecting data about Ethical Leadership (EL). Research on this sensitive subject benefits from the inclusion of data from more than one source, in order to be better supported, and thus contribute to a deeper understanding of leadership and business ethics issues. The search strategy retrieved a total of 50 multi‐source empirical studies on the topic of EL, published until December (...) 2017. This SLR shows that (a) research on EL has focused mostly on the perceptions of followers, possibly because they are the most accessible target of its outcomes, thus restricting the scope of this body of research; (b) EL is studied mainly through consideration of its consequences, a restriction that hinders explanation of the causal processes involved in ethical leadership, which remains a research arena in need of development. The systematic inclusion of other stakeholders in multi‐source methods is advanced as a way to further develop the field. (shrink)