Due to the nature of lending practices and support services offered to the poor in developing countries, portfolio risk is a growing concern for the microfinance industry. Though previous research highlights the importance of risk for microfinance organizations, not much is known about how microfinance organizations can mitigate risks incurred from providing loans to the poor in developing countries. Further, though many microfinance organizations practice corporate social responsibility to help create economic and social wealth in developing countries, the impact of (...) such CSR practices remains an underdeveloped area of inquiry. We use a normative ethics lens to develop an ethics-based CSR theory that differentiates between three forms of ethics-based CSR—virtue, consequentialist, and deontological. We argue that while all three forms can help mitigate risk, virtue ethics-based CSR is potentially the most useful form of CSR toward mitigating microfinance portfolio risk. We test our hypotheses using a sample of microfinance organizations from across the world. Our findings suggest that virtue ethics-based CSR is not just an important philosophical paradigm; it can actually help mitigate microfinance portfolio risk when implemented in practice. (shrink)

To further the debate on the ethical dimension of transformational leadership from a virtue ethics perspective, this study focused on leaders’ in-group orientation as well as their in-group versus out-group orientation in situations of conflict between organizational interests and broader ethical values. More precisely, the current study captured leaders’ organizational identification as well as their willingness to engage in unethical pro-organizational behavior and tested the relations between these attitudes and follower-perceived TFL behavior. In total, the leadership behaviors of 112 middle- (...) and top-level managers were evaluated by 900 direct-reports. Results showed leaders’ organizational identification to be positively related to TFL. However, we found no relation between leaders’ willingness to engage in unethical pro-organizational behavior and TFL. Implications regarding the ethical dimension of TFL are discussed. (shrink)

The aim of this paper is to explore the ethical dimension of hawala, an ancient informal financial practice rooted in Islamic moral traditions. Widely used in countries with an Islamic background and their diasporas, hawala is considered an important vehicle for the financial and economic development of some less developed countries. Nevertheless, in Western countries, hawala is regarded with suspicion due its controversial ethical nature. Unlike other Islamic financial institutions, the controversial questions are not the legitimacy of profit sources or (...) the interest charged, but rather the lack of transparency that surrounds hawala transactions. Yet, the literature on hawala has neglected its ethical perspective. Our study delves into this dimension with a critical approach, using the Triple Font Theory, grounded on virtue ethics. We conclude that if hawala transactions are carried out with honesty, and fairness, this practice deserves a positive ethical appraisal. However, it is necessary to implement efficient regulatory measures to guarantee that the system is not abused by money launders and criminals. In practice, it becomes imperative to bring over a change in the regulatory approach to hawala toward a more ethically, culturally, and economically sensitive strategy. Thus, future research should focus on how “hyper-norms” or fundamental principles inherent to humanity, which are common to both “formal” and “informal,” “Western” and “non-Western” financial practices, could run the new AML/ctf regulation agenda. (shrink)

In recent years, increasing attention has been given to virtue ethics in business. Aristotle's thought is often seen as the basis of the virtue ethics tradition. For Aristotle, the idea of phronësis, or 'practical wisdom', lies at the foundation of ethics. Confucian ethics has notable similarities to Aristotelian virtue ethics, and may embody some similar ideas of practical wisdom. This article considers how ideas of moral judgment in these traditions are consistent with modern ideas about intuition in management decision making. (...) A hypothetical case is considered where the complexity of ethical decision making in a group context illustrates the importance of intuitive, phronësis-like judgment. It is then noted that both Aristotelian and Confucian virtue ethics include suggestions about support for moral decision making that are also consistent with modern theory. (shrink)

ABSTRACT:This article proposes a theory of the firm based on the common good. It clarifies the meaning of the term “common good” tracing its historical development. Next, an analogous sense applicable to the firm is derived from its original context in political theory. Put simply, the common good of the firm is the production of goods and services needed for flourishing, in which different members participate through work. This is linked to the political common good through subsidiarity. Lastly, implications and (...) challenges arising from the positing of work as the common good of the firm are explored. (shrink)

The article starts by arguing that seeing the firm as a mere nexus of contracts or as an abstract entity where different stakeholder interests concur is insufficient for a “humanistic business ethos”, which entails a complete view of the human being. It seems more appropriate to understand the firm as a human community, a concept which can be found in several sources, including managerial literature, business ethics scholars, and Catholic Social Teaching. In addition, there are also philosophical grounds that support (...) the idea of business as a human community. Extending this concept, and drawing from some Phenomenological-Personalist philosophers, we propose that the firm should be seen as a particular “community of persons” oriented to providing goods and services efficiently and profitably. Being a “community of persons” emphasizes both individuals and the whole, and makes explicit the uniqueness, conscience, free will, dignity, and openness to human flourishing. This requires appropriate communication about and participation in matters which affect people’s life, and makes it essential to cooperate for the common good of the business firm and the society. (shrink)

This essay articulates a crucial and neglected element of a general theory of the ethics of bureaucratic organizations, both private andpublic. The key to the approach developed here is the thesis that the distinctive ethical principles applicable to bureaucratic organizations are responses to the distinctive agency-risks that arise from the nature of bureaucratic organizations as complex webs of principal/agent relationships. It is argued that the most important and distinctive ethical principles for bureaucratic organizations express commitments on the part of bureaucrats (...) that function to reduce the agency risks that are inherent in such organizations. This approach to the ethics of bureaucratic organizations is shown to be more illuminating than those that concentrate exclusively or primarily on determining the conditions for corporate responsibility or on the idea that the ethical obligations distinctive of bureaucracies are role-derived. (shrink)

Critics point to four issues as presenting barriers to the use of virtue in the context of business. They focus on the relationship between management and practice, the potential for virtuous behaviour in a competitive environment, the ability to develop a reflexive critique of management that can be acted on, and the differentiation between work and wider social roles and people's propensity to take responsibility for them. In this paper we propose a solution to criticisms levelled at the use of (...) virtue within Business Ethics. We examine the critiques of management in the context of Virtue Ethics and the application of these to business. In arguing for a role for business in being virtuous and promoting virtue we accept that the concept of management that is based on the type of liberalism founded on personal preference and benefit is deeply problematic and that management that is driven solely by profit is not compatible with the development of practice based virtue. However, we argue that to exclude those activities in which management is involved as a result would be wrong and dangerous. Instead we see the great advantage of a Virtue Ethic is that it conjures up an alternative vision to the dominant practice, and such an alternative vision is urgently needed in business today. (shrink)

Economic profit is produced by entrepreneurs, those special individuals able to detect and seize as yet unexploited market opportunities. Many large capitalist firms manage to deliver positive profits even in the most competitive environments. They can do so, thanks to internal entrepreneurs, a subset of their employees able to drive change and develop innovation in the workplace. This paper argues that the goal of increasing economic profit is fully consistent with the corporation doing good for society. However, there is little (...) justification for corporations to transfer the whole economic profit to shareholders. Economic agents entitled to receive the economic profit are precisely those who create this profit, namely the internal entrepreneurs. (shrink)

This article examines the applicability of character and virtue ethics to international marketing. The historical background of this field, dimensions of virtue ethics and its relationship to other ethical theories are explained. Five core virtues – integrity, fairness, trust, respect and empathy – are suggested as especially relevant for marketing in a multicultural and multinational context. Implications are drawn for marketing scholars, practitioners and educators.

Organizational integrity is a key concept with and through which a company can assume its responsibility for ethical and societal issues. It is a basic premise for sustainable corporate success, as ethical risks ultimately become economic risks for a company. Recent research shows the potential of integrity‐based governance models to reduce corporate risks and to improve business performance. However, companies are not yet able to assess nor evaluate their level of organizational integrity in a sound and systematic way. We aim (...) to develop a theoretical model as a basis for the measurement of organizational integrity by conceptualizing the construct and sizing the theoretical model's scope. We suggest that the theoretical model follows a holistic approach and involves three types of dimensions: prerequisite dimensions, independent dimensions, and dependent dimensions. The organizational integrity triad—consisting of active commitments to self‐imposed norms and principles, their transparent institutionalization into corporate processes and structures, and their implementation into action—plays a key role in this context. (shrink)

Deliberation has faced criticism with regard to its application to business, on the basis that it can be misused to disseminate an ideology, divert attention from genuine debates, or strengthen the power of certain people. We suggest that Aristotle’s notion of deliberation can mitigate these ethical risks and help companies strengthen their deliberative practices. A comprehensive perspective based on Aristotelian deliberation reveals the relevance of (a) individual and collective deliberation, promoting a virtuous and meaningful reflection, free from ideological conditioning; (b) (...) deliberation on ends and means that facilitates a transcendental and rooted reflection, thereby avoiding artificial debates; and (c) deliberation that is decisive and cooperative and thus prevents instrumentalization of deliberation by the strongest. We contribute to the discussion of the relationship between business and society by identifying the different steps in the deliberative process and promoting a dynamic perspective on deliberation. (shrink)

The classical literature on Confucianism exhorted leaders to practice five core virtues as the basis for becoming a noble person and for sustaining harmonious communities built on trust and good example. We present a theory about how the senior management in modern corporations, by enacting the five Junzi virtues through virtuous environmental, social, and governance policies and practices, might inspire virtue-based relationships between superiors and subordinates and between employees. We argue that if middle managers and employees observe and experience that (...) their firm’s ESG policies and practices are virtuous, they would feel encouraged to practice those virtues in their own behavior, and thus embody and promote interpersonal harmony. We provide three types of illustration for our theory. First, we map the five Junzi virtues to the content of a specimen ESG report. Second, we map seven subtypes of servant leadership behavior of middle managers to the five Junzi virtues. Third, we map seven types of employee organizational citizenship behavior to the five Junzi virtues. (shrink)

Blockchain is an open digital ledger technology that has the capability of significantly altering the way that people operations operate in organizations. This research takes a first step in proposing several ways in which the blockchain technology can be used to improve current organizational practices, while also considering the ethical implications. Specifically, the paper examines the role that blockchain technology plays in three primary areas of people operations: entry to the organization, intraorganizational processes, and exit. In each section, the paper (...) reviews the ethical implications from the lenses of virtue ethics, utilitarianism, deontology and contractarianism. The paper concludes that in whole the implementation of blockchain technology in people operations processes can create a more ethical work environment. However, careful implementation is necessary and requires extensive examination of ethical implications in advance. (shrink)

The aim of this article is to provide an overview of various discourses relevant to developing a construct of collective _phronesis_, from a (neo)-Aristotelian perspective, with implications for professional practice in general and business practice and business ethics education in particular. Despite the proliferation of interest in practical wisdom within business ethics and more general areas of both psychology and philosophy, the focus has remained mostly on the construct at the level of individual decision-making, as in Aristotle’s _Nicomachean Ethics_. However, (...) he also made intriguing remarks about _phronesis_ at the collective level in his _Politics_: remarks that have mostly eluded elaboration. The aim of this article is practical and revisionary, rather than exegetical and deferential, with respect to Aristotle. Nevertheless, just as most of the literature on individual _phronesis_ draws on Aristotle’s exposition in the _Nicomachean Ethics_, the obvious first port of call for an analysis of collective _phronesis_ is to explore the resources handed down to us by Aristotle himself. The lion’s share of this article is, therefore, devoted to making sense of Aristotle’s somewhat unsystematic remarks and the lessons we can draw from them about collective managerial _phronesis_ and business ethics education. (shrink)

Pricing policies and fair-trade practices are critical for sustaining commercial relationships between firms and customers. Nevertheless, in current business practices, fairness has been mistakenly reduced to a minimalistic ethic wherein justice only demands legal and explicit norms to which commercial parties voluntarily agree. Aimed at giving a different explanation of commercial agreements, this paper will introduce a Virtue Ethics (VE) explanation of the relationship between pricing and the common good by taking up classical concepts related to justice in commerce. In (...) particular, we will explore three principles associated with the notion of fairness in commerce as defined in Neo-Aristotelian ethics towards a relationship between a common good and justice in pricing, i.e., proportionality, benevolence and well-being. To exemplify how these criteria of justice apply to decision-making in commercial practices, we will discuss several cases of fair and unfair commercial relationships. (shrink)

Phronesis is essential for good decision‐making and actions. This literature review shows how phronesis has been discussed and related to elements of the field of administration and organizations. A search in the database systems Scopus, EBSCO, Web of Science, and Scielo, based on eligibility criteria, resulted in 43 theoretical and 14 empirical works. The analysis of these studies showed the most significant empirical contributions, the most cited authors, methods, journals, and central themes addressed in studies on phronesis to understand ethics (...) in business. From a virtue ethics perspective, we discuss the major theoretical and empirical contributions, as well as the implications of a restricted understanding of phronesis when it is treated apart from other elements of the virtue ethics framework. We present a synthesis of the concepts of phronesis, based on dimensions of magnitude and amplitude of the conceptions, ranging from formal to substantive phronesis, and covering individual, organizational, or societal levels of analysis. We argue that a substantive conception of phronesis within virtue ethics may improve our understanding of ethics because it assumes the interdependence of phronesis and moral virtues, integral anthropology, and the common good. We present a future research agenda, considering the study's limitations and findings. (shrink)

While business as a social activity has involved communities of persons embedded in dense relational networks and practices for thousands of years, the modern legal, theoretical psychological, and moral foundations of business have progressively narrowed our understanding of practical wisdom. Although practical wisdom has recently regained ground in business ethics and management studies, thanks mainly to Anscombe's recovery of virtue ethics, Anscombe herself once observed that it lacks, and has even neglected, a moral psychology that genuinely complements the nuanced philosophical (...) perspective of a virtue‐centered moral philosophy. Herein, we offer one way to fill this gap by suggesting two opposing psychological paradigms, namely the inter‐processual self and the autonomous self, which are classified according to the assumptions they make about the self, human agency and action more broadly, as well as how they relate to practical wisdom. Upon presenting these moral psychologies, we will bring this proposal into conversation with business ethics to show how the IPS paradigm can enable and support virtuous management. (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)

ABSTRACT:In this address, I outline a “back to basics” approach to specifying the responsibilities and role of business in relation to society. Three “basics” comprise the approach. The first is arguing that basic principles of ordinary morality, such as a duty not to harm, provide an adequate basis for specifying the responsibilities of business managers. The second is framing the role of business in society by looking to the values realized by the basic building blocks of contemporary economic activity, i.e., (...) markets and firms. The third is making explicit the basic institutions that structure the background against which business operates. The aim is to develop a plausible framework for managerial decision making that respects the fact of value pluralism in a global economy and that fosters meaningful criticism of current business practices while remaining sufficiently grounded in contemporary circumstances so as to be relevant for managers. (shrink)

Gamification is an increasingly common marketing tool. Yet, to date, there has been little examination of its ethical implications. In light of the potential implications of this type of stealth marketing for consumer welfare, this paper discusses the ethical dilemmas raised by the use of gamified approaches to marketing. The paper draws on different schools of ethics to examine gamification as an overall system, as well as its constituent parts. This discussion leads to a rationale and suggestions for how gamification (...) could be regulated and/or controlled by more informal codes of conduct. The paper ends by outlining a practical framework which businesses can use to evaluate the potential ethical implications raised by their own gamified marketing techniques. (shrink)

Aristotle's doctrine of the mean states that a virtue is the mean state between two vices: a deficient and an excessive one. The Corporate Ethical Virtues Model defines the mean and the corresponding deficient vice for each of its seven virtues. This paper defines for each of these virtues the corresponding excessive vice and explores why organizations characterized by these excessive vices increase the likelihood that their employees will behave unethically. The excessive vices are patronization, pompousness, lavishness, zealotry, overexposure, talkativeness, (...) and oppressiveness. (shrink)

In recent years, organisational theorists have been interested in the tensions faced by healthcare organisations. In this paper, these tensions are examined using the virtue approach to ethics of Alasdair MacIntyre. It is argued that although MacIntyre's framework shares many concerns with organisational studies, it supplements the analysis with a focus on moral content and evaluation. By providing moral evaluation of the stories told in organisations, an ethical analysis compels action on a basis that organisational studies does not. Nevertheless, it (...) is the analysis of stories in organisation studies that provides the tools for taking action. The analysis presented here provides an example of how ethics and organisational studies can be brought together to provide a stronger analysis of organisational phenomena. Indeed, it provides support for Nielsen's position that organisational theory and ethics are co‐dependent and suggests that greater attention should be paid to ethical concepts in the study of organisational phenomena. (shrink)

ABSTRACT:Does effective moral judgment in business ethics rely upon the identification of a suitable set of moral principles? We address this question by examining a number of criticisms of the role that principles can play in moral judgment. Critics claim that reliance on principles requires moral agents to abstract themselves from actual circumstances, relationships and personal commitments in answering moral questions. This is said to enforce an artificial uniformity in moral judgment. We challenge these critics by developing an account of (...) principle-based moral judgment that has been widely discussed by contemporary Kantian scholars. In so doing we respond to some basic problems raised by so-called “moral particularists” who voice theoretical objections to the role of principles as well as to contemporary business ethicists who have criticized principle-based moral judgment along similar lines. We conclude with some future areas of research. (shrink)

ABSTRACT:There is considerable overlap between the interests of business ethicists and those of political philosophers. Questions about the moral justifiability of the capitalist system, the basis of property rights, and the problem of inequality in the distribution of income have been of central importance in both fields. However, political philosophers have developed, especially over the past four decades, a set of tools and concepts for addressing these questions that are in many ways quite distinctive. Most business ethicists, on the other (...) hand, consider their field to be primarily a domain of applied ethics, and so adopt methods and conceptual frameworks developed by moral philosophers. In this paper, we discuss some of the salient differences between these two approaches, and suggest some ways in which business ethicists could benefit from taking a more “political philosophy” approach to these questions. Throughout, we underline the importance of seeking greater compatibility among the principles used in normative theorizing about markets, regulations, corporate governance, and business practices. (shrink)

Some virtue ethicists are reluctant to consider principles and standards in business ethics. However, this is problematic. This paper argues that realistic Personalism can be integrated into virtue-based business ethics, giving it a more complete base. More specifically, two principles are proposed: the Personalist Principle (PP) and the Common Good Principle (CGP). The PP includes the Golden Rule and makes explicit the duty of respect, benevolence, and care for people, emphasizing human dignity and the innate rights of every human being. (...) The CGP entails cooperation to promote conditions which enhance the opportunity for the human flourishing of all people within a community. Both principles have practical implications for business ethics. (shrink)

The debate on the influence of markets on virtues has focused on two opposite hypotheses: the doux commerce thesis and the self-destruction thesis. Whereas the doux commerce hypothesis assumes that capitalism polishes human manners, the self-destruction hypothesis holds that capitalism erodes the moral foundation of society. This paper will develop a more balanced position by using the virtue ethics developed by Aristotle, which distinguishes several virtues. The research will focus on the question for which virtues the doux commerce or self-destruction (...) thesis is likely to hold. An extensive literature survey shows that market competition tends to stimulate diligence, crowd out temperance, generosity, and sociability, and stimulate envy. The effect on other virtues – i.e. courage, high-spiritedness, justice, and prudence – is ambiguous. (shrink)

The actions of “world‐based” multinational corporations (MNCs) have effectively decoupled the revenue generation and the production sides of the business equation. This decoupling has led to an end of “virtuous capitalism,” which has widespread ramifications for the societies within highly developed countries as well as those in developing and underdeveloped nations. This article presents an overview of the defining aspects of virtuous corporations and the linkages to virtuous capitalism. It then describes the actions of Apple Computer as emblematic of an (...) MNC that is nonvirtuous in its practices. The article then discusses how the encouragement of globalized trade has prompted the shift away from virtuous capitalism and closes with a summary of possible actions that could reverse the decline in corporate virtue. (shrink)

Accounting literature has commonly judged the impact of regulation on auditors’ ethical commitment by studying daily audit practice. We argue that the content of the regulations themselves is an important determinant of such an impact. This paper evaluates the capacity of the content of regulation to promote audit ethics by reference to the European Union’s audit policy. Anchored in the extant conceptual perspectives on ethics, our analysis of relevant policy documents shows that the EU’s approach to audit ethics relates most (...) strongly to the deontological perspectives on ethics and leaves largely unexplored other means of promoting auditors’ ethical stance, such as by stimulating virtue ethics. We find that it is the EU regulators’ restricted view of the conceptual foundations of audit ethics that limits the capacity of their policy to effectively stimulate auditors’ ethical commitment. The paper also discusses the potential implications of our analysis for the design of future audit policy. (shrink)

The effective implementation of regulation in organizations is an ongoing concern for both research and practice, in order to avoid deviant behavior and its consequences. However, the way compliance with regulations is actually enacted or “performed” within organizations instead of merely executed, remains largely under-characterized. Evidence from an ethnographic study in the compliance unit of a French investment bank allows us to develop a detailed practice approach to how regulation is actually implemented in firms. We characterize the work accomplished by (...) compliance analysts who are in fact, “curving” the script of regulation within what we conceptualize as a “comfort zone”. Beyond agency, ethics appears as a key element in linking the “letter of the law”, which serves as a referential anchor to guide action, with the complex nature of specific situations. We analyze the way individuals and compliance teams cope with, interpret, struggle and in fine, perform regulation within this comfort zone. A particular interest is thus given to the work of embedded ethics in this process, as an enabler to partly recouple compliance with the regulated activity. We find that blind execution is not only impossible, but also devoid of meaning both from regulatory, risk management, and business perspectives in organizations. We highlight and characterize a hermeneutic dimension to this work, essential to effectively perform regulation in complex environments, and we suggest some directions for further research. (shrink)

Role modeling is widely thought to be a principal vehicle for acquiring the virtues. Yet, little is known about role modeling as a process. This paper surveys the behavioral sciences for insights about how one person can find the actions of another person so inspirational that the person attempts to reproduce the behavior in question. In general, such inspiration occurs when an observer sees a model similar to herself, wrestling with a problem she is having, such that the model’s accomplishments (...) are seen as attainable. When the behavior modeled is moral, additional complications arise, not the least of which is the contemporary skepticism about anyone held up as a hero. The paper concludes with some suggestions about how organizations can facilitate the development of the virtues through role modeling. (shrink)

This paper draws from the work of sixteenth century theologian, philosopher, and ethicist Domingo de Soto and considers his virtue-based approach to the ethical evaluation of commerce within an Aristotelian–Thomistic framework for the articulation of business and the common good. Particular attention is given to the fundamental emphasis placed by Soto in distinguishing between commerce as an activity and the specific conduct of persons engaging in commercial activity. The distinction between the material and the formal parts of the common good (...) is then employed to shed light on the way Soto articulates commercial practices, virtuous character, and the common good. It is concluded that Soto’s major contribution for business ethics is clarifying that the key element for the ethical evaluation of commerce is the embodiment of virtuous personal conduct in the exercise of commercial activity. In this framework, the fulfillment of commerce’s potential to contribute to the common good is thus fundamentally interconnected with putting virtues into practice. (shrink)

This article contends that Ayn Rand 's version of virtue ethics can supply a powerful foundation for operating a successful business. Rand 's Objectivist virtues can provide an underpinning for a firm's long-term sustainable success, as well as for the flourishing and happiness of its employees. In order to attain a company's goals, values, and purpose, these virtues need to be integrated with the firm's culture and climate. The Objectivist virtues can supply an integrated framework for employees' decisions and actions. (...) Leaders are encouraged to link these virtues to the survival and success of both the firm and its employees. (shrink)

In the management domain the revival of interest in virtue ethics has been not so much in seeking a deeper understanding of the virtues themselves as in finding exemplars and pursuing the concept that virtue is a proper end of business. The aim of this paper is to show that a philosophical treatment of the great virtues can enlighten management understanding of them and to examine in more detail courage, love and wisdom. The paper includes an overview of the approach (...) to the virtues in contemporary management literature, a brief summary of the traditional account of the moral virtues, and discussion of six contemporary concepts of management. The contribution which an understanding of individual virtues can make to effective management will then be explored, drawing on earlier work by the author in relation to both courage and love as management virtues. (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)

This paper develops and explores a pedagogical innovation for integrating virtue theory into business students' basicunderstanding of general management. Eighty-seven students, in 20 groups, classified three managers' real-time videotaped activitiesaccording to an elaboration of Aristotle's cardinal virtues, Fayol's management functions, and Mintzberg's managerial roles. The study's empirical evidence suggests that, akin to Fayol's functions and Mintzberg's roles, Aristotle's virtues are also amenable to operationalization, reliable observation, and meaningful description of managerial behavior. The study provides an oft-called-for empirical basis for further (...) work in virtue theory as an appropriate conceptual framework for the study and practice of management. The results indicate that virtue theory may be used to re-conceive our fundamental understanding of management, alongside its capacity to weigh moral judgment upon it. implications and suggestions for future research are discussed. (shrink)

Abstract:In recent years, many business ethicists have raised problems with the “ethics pays” credo. Despite these problems, many continue to hold it. I argue that support for the credo leads business ethicists away from a potentially fruitful approach found in Hume’s moral philosophy. I begin by demonstrating that attempts to support the credo fail because proponents are trying to provide an answer to the “Why be moral?” question that is based on rational self-interest. Then, I show that Hume’s sentiments-based moral (...) theory provides an alternative to the credo that points toward a more fruitful approach to business ethics. Along the way, I examine a recent social contract alternative to the credo that, despite many appealing features, is less effective than is the Humean alternative. Finally, I develop a Humean approach to business ethics and demonstrate why it is a desirable alternative that business ethicists should explore. (shrink)

Numerous ethical theories have been proposed as a foundation of business ethics, and this often brings about appreciable perplexity. This article seeks to identify specific problems for a sound foundation of this discipline. A first problem is this multiplicity of ethical theories, each with its own metaethics, often accepted without a serious discussion of their philosophical grounds. A second problem is the fragmentation of theories; some centred on duties or obligations, others on consequences, virtues, or moral sentiments. In addition, some (...) theories focus on universal principles, while others take the singularity of each situation as their focal point. A third problem is that not every ethical theory covers the personal, organizational and societal dimensions of business ethics, and this introduces reductionism. These problems cannot be satisfactorily addressed through ‘ethical pluralism’, in which all theories are accepted, without falling into ethical relativism. ‘Ethical pragmatism’, which welcomes any ethical theory only on the basis of their practically, is also questioned. Furthermore, there is the problem of integrating ethics into business theory, which is often extrinsic to the economic function. After analysing these problems, the article concludes by exploring some proposals that might serve to build a sound and complete ethical theory which includes human goods (objective values), principles (or norms) and virtues. The necessity of reconsidering the human action for a closer integration of ethics into business theory is also suggested. (shrink)

ABSTRACTDrawing upon the theoretical debate on the concept of common good involving, in particular, Sison and Fontrodona, I aim to show how the common good principle can serve as the basis for a new diversity perspective. Each of the three dominant diversity approaches—equality, diversity management, and inclusion—runs the ethical risk of focusing on community or individual levels, or on particular disciplines—economic, social, or moral. This article demonstrates that the common good principle could mitigate the ethical risks inherent to each of (...) these diversity approaches. There are three positive aspects to a comprehensive common good perspective: 1) it includes considering different community levels, which it connects by subsidiarity, 2) it embraces the moral, social, and economic fields, which it connects by teleological hierarchy, and 3) it avoids the risk of exclusion by generating a sense of solidarity. (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)

A recent special issue in the Journal of Business Ethics gathered together a variety of papers addressing the challenges of putting virtue ethics into practice :563–565, 2013). The editors prefaced their outline of the various papers with the assertion that exploring the practical dimension of virtue ethics can help business leaders discover their proper place in working for a better world, as individuals and within the family, the business community and society in general :563–565, 2013). Scholars are yet to explore (...) the role of virtuous organisational leaders in the pursuit of Eudaimonia. This paper is a qualitative study which considered company directors’ self-understandings in light of a virtue ethics conceptual framework. The aim of the study is to explore whether virtue ethics rather than deontology and consequentialism is a better vehicle for expressing directors’ self-understandings about their ideals and role. (shrink)

Our literature review reveals a call for changes in business education to encourage responsible management. The Principles for Responsible Management Education were developed in 2007 under the coordination of the United Nations Global Compact, AACSB International, and other leading academic institutions for the purpose of promoting responsible management in education. Literature review shows that responsible management as such remains undefined. This gap in literature leads potentially to an absence of clarity in research, education, and management, regarding responsible management among scholars (...) and practitioners. The aim of this research is to develop a preliminary definition of responsible management, exploring the use of the term in literature and practice. Its objective is to define the main characteristics of responsible management aimed at creating a platform for discussion so as to help organizations clarify their own vision of responsible management. It builds on preliminary findings from literature review that responsible management remains undefined. As business school students are primary stakeholders in management education and are future management leaders, and as there have not been empirical studies to date that examine business school students’ understanding of responsible management, a qualitative study was conducted with European business school students concerning their understanding of the term. A framework summarizing perceptions of responsible management characteristics and broad approach of responsible management definition were created and used to introduce a draft theoretical platform for discussion on this topic. (shrink)

This paper argues that Shanahan and Hyman’s Virtue Ethics Scale should be abandoned and that work should begin to develop better-grounded measures for identifying individual business virtue in context. It comes to this conclusion despite the VES being the only existing measure of individuals’ virtues that focuses on business people in general, rather than those who hold specific leadership or audit roles. The paper presents a study that, in attempting to validate the VES, raises significant concerns about its construction. In (...) particular, investigation of the VES items leads to adjustments in the language used and examines participants’ understanding of the virtue terms and their descriptors. Confirmatory factor analysis of data collected from a sample of 137 HR practitioners establishes that the 6-factor solution identified by Shanahan and Hyman is not appropriate for the sample under examination. Rather, exploratory factor analysis results in three dimensions based in 13 items focusing on the individuals’ reliability, resourcefulness, and leadership. Finally, multiple regression establishes that these dimensions do not on the whole show associations with MA or PRESOR, two measures through which it would be expected to establish convergent and divergent validity. The paper concludes by suggesting guidelines for the development of future measures of IBV. (shrink)

Alasdair MacIntyre’s After Virtue presented a reinterpretation of Aristotelian virtue ethics that is contrasted with the emotivism of modern moral discourse, and provides a moral scheme that can enable a rediscovery and reimagination of a more coherent morality. Since After Virtue’s publication, this scheme has been applied to a variety of activities and occupations, and has been influential in the development of research in accounting ethics. Through a ‘close’ reading of Chaps. 14 and 15 of AV, this paper considers and (...) applies the key concepts of practices, institutions, internal and external goods, the narrative unity of a human life and tradition, and the virtues associated with these concepts. It contributes, firstly, by providing a more accurate and comprehensive application of MacIntyre’s scheme to accounting than that available in the existing literature. Secondly, it identifies areas in which MacIntyre’s scheme supports the existing approach to professional accounting ethics as articulated by the various International Federation of Accountants pronouncements as well as areas in which it provides a critique and challenge to this approach. The application ultimately provides an alternative philosophical perspective through which accounting can be examined and further research into accounting ethics pursued. (shrink)

This article aims at showing the need for a sound ethical and anthropological foundation of economics and business, and argues the importance of a correct understanding of human values and human nature for the sake of economics and of businesses themselves. It is suggested that the ethical-anthropological side of economics and business can be grasped by taking Aristotle’s virtue ethics and Amartya Sen’s capability approach (CA) as major reference points. We hold that an “Aristotelian economics of virtues”, connected with the (...) CA’s notion of human richness, can promote the shift to the concept of personhood, and can lead to a more “humanized” business, by fostering human flourishing, the enhancement of human capabilities, and the pursuit of a more humane development for each and every person. (shrink)

This paper re-frames business ethical codes as narrative processes by reflecting critically on key ontological assumptions underpinning the existing research, and introducing new and relevant concepts based on alternative assumptions. The first section draws on recent decision-making research to develop a theoretical account of BCEs as complex, socially embedded sensemaking processes. The second section addresses the content of codes, and differentiates between narrative and logico-scientific modes of reasoning. The third section focuses on the quality of code communication and identifies several (...) distinct types of narrative process. We provide research directions for how this new understanding of BCEs may be further developed, as well as implications for practitioners. In response to the call for new conceptual models, the paper provides organizational researchers with a more nuanced understanding of how BCEs enable or constrain ethical behavior in organizations. (shrink)

The purpose of this article is to explain the differences between neo-Aristotelian virtue and positive organizational virtuousness from the virtue ethics perspective. Most studies use virtues and virtuousness interchangeably. A few others try to explain their differences from the positive organizational science perspective. Although closely related, we believe that these two notions are not identical. If we understand neo-Aristotelian virtue correctly, then it cannot be judged exclusively on what is externally verifiable, as is the case with virtuousness. For these reasons, (...) we attempt our own differentiation, highlighting the gains and losses realized in the migration from neo-Aristotelian virtue to positive organizational virtuousness, and establishing guideposts to meaningfully combine the strengths of both concepts. (shrink)