The dominance of agency theory can reduce our collective scope to analyse private equity in all its diversity and depth. We contribute to theorisation of private equity by developing a contrasting perspective that draws on a rich tradition of virtue ethics. In doing so, we juxtapose 'private equity' with 'public good' to develop points of rhetorical and analytical contrast. We develop a typology differentiating various forms of private equity, and focus on the 'take private' form. These takeovers are where private (...) equity funds are used to buy all a firm's publicly listed shares. Take private deals reduce reporting requirements and lessen the amount of public scrutiny a firm comes under. They allow greater control of a firm's assets and resources but also have effects in terms of the wider social fabric. The 'public good' and virtue ethics offer an alternative basis for theorisation of these deals. This provides a needed contrast to accounts of private equity based on agency theory. (shrink)

For Aristotle, virtues are neither transcendent nor universal, but socially interdependent; they need to be understood chronologically and with respect to character and context. This paper uses an Aristotelian lens to analyse an especially interesting context in which to study virtue—the state’s response when social order breaks down. During such periods, questions relating to right action by citizens, the state, and state agents are pronounced. To study this, we analyse data from interviews, observation, and documents gathered during a 3-year study (...) of riot policing in the U.K. In doing so, we contribute by joining a number of other conversations within JBE, suggesting detailed empirical examination of this context is useful in opening up considerations relevant to ‘virtue’ elsewhere. This extreme context helps us raise interesting and empirically informed questions that can encourage future theoretical and empirical contributions to virtue in business ethics. One such question is on the role of habituation in virtue, which is not just the inculcation of a reflex or automaticity, but can also refer to a trained and developed tendency to behave in the right way, for the right reasons, at the right time. Whilst we stop short of a simplistic alignment of habituation and virtue, we show ways in which it can inform understanding of both courage and phronēsis. (shrink)

This article analyses MNCs, worker identity and the ethical vulnerability caused by over-reliance on expatriate managers and under-reliance on local managers, who are often undervalued. It is argued that MNCs not only need but also have an obligation to assess local managers’ knowledge and contributions as having not only operational and market values, but also institutional value. Local managers both give access to and form part of local social capital and the treatment they receive is an element in the CSR (...) performance of the MNCs. Recognition of the value of equal treatment creates an ethical imperative that the barriers of cultural difference be overcome. We see such an approach towards local managers as more fully taking into account the human rights of these local managers. Such a holistic approach is increasingly relevant for MNCs in the 21st century, as MNCs increasing globalize into new large emerging markets such as Brazil, Russia, India and China. (shrink)

Among other interesting claims made in Robert Reich's 2007 treatise, Supercapitalism, it is asserted in various ways that proponents of corporate social responsibility (CSR) or what I would call 'business ethics' are engaged in relatively unproductive exercises. Their resources would be better used if they undertook the hard work of engagement in democratic political processes leading to legislation that would force corporations to pursue the public interest as well as their own. In this article, I summarize some of Reich's central (...) theses and arguments, show that they are fatally flawed and explain why the institution of morality is essential for business, law and democracy. (shrink)

This paper is a set of comments on papers from the Third Shanghai International Conference on Business Ethics, October 29–30, 2010, Shanghai, China. I would like to thank the organizers of this conference for the opportunity to share some of my observations on some of the papers presented. As a result of some serious health problems, I could not make the conference and engage in the discussions. However, I am glad to be able to make some comments on a subset (...) of the papers that the adjudication committee thought should go into this collection. Some excellent papers were not included in the collection because they did not fit the scope of the Asian Journal of Business Ethics . So nothing in my comments should be regarded as any kind of comment on papers not mentioned here. I hope I can add some value to the good work already displayed in these papers. My comments are presented in the order in which I read the papers. (shrink)

Since male CEOs dominate corporate leadership, the literature on top management decision making suffers from an implicit masculine bias. Although research indicates that males and females are biologically and psychologically different, the leadership characteristics of female CEOs are largely unexplored. Two of these characteristics, risk aversion and ethical sensitivity, are tied to key accounting issues, such as conservatism in financial reporting and steadfast opposition to fraud. In this study, we examine the relationship between CEO gender and accounting conservatism, and find (...) a positive association between the two. Consistent with conventional wisdom, this association appears to be stronger in firms with high rather than low litigation and takeover risks. This study contributes to the ethics literature by highlighting the benefits of gender diversity in upholding the integrity of financial reporting. (shrink)

A majority of the countries in the world are still considered "developing," with a per capita income of less than U$1,000. Hahn (2008, Journal of Business Ethics 78, 711–721) recently proposed an ambitious business ethics research agenda for integrating the "bottom-of-the-pyramid" countries (Prahalad and Hart, 2002, Strategy and Competition 20, 22–14) through sustainable development and corporate citizenship. Hahn's work is among the growing field of research in comparative business ethics including the global business ethics index (Michalos, 2008, Journal of Business (...) Ethics 79(1), 9–19; Scholtens and Dam, 2008, Journal of Business Ethics 75(3), 273–284; Tsalikis and Seaton, 2008, Journal of Business Ethics 75(3), 229–238). This article is complementary to Hahn's work and it advocates an urgent need for business ethics researchers to globally integrate the bottom-of-thepyramid countries through a fundamental re-definition of the global economic triad, including the United States, Western Europe, and Japan [Ohmae, 1985, Triad Power: The Coming Shape of Global Competition (New York: Free Press)]. The definition that we propose is based on business systems and institutional perspectives that include the bottom-of-the-pyramid countries. We also propose to broaden the research in business ethics to enable comparisons across business systems indifferent income levels. (shrink)

This article attempts to uncover the relevance of Cicero's thought to present-day management through an analysis of his last philosophical study, On Duties. Applying a methodology grounded in Socratic skepticism, Cicero synthesizes the Stoics and Aristotle to create his own moral theory. From this theory, we derive a Ciceronian set of recommended traits that make up a model business leader. Central to this model is the recognition that there are two lodestars in life, the beneficial and the honorable. The first (...) directs each of us to attend to our personal happiness, and the second to our moral worth. In Cicero's view, the life of leading sizable associations is what best satisfies this dual imperative. The honor of a business leader is secured by the practice of four virtues: wisdom, justice, greatness of spirit, and seemliness. A leader properly seeks his/her own benefit by recognizing that success comes from the relationships he/she establishes and that he/she are more apt to cultivate these by being virtuous. Cicero is not so naïve as to fail to see that the beneficial and the honorable may come into tension, noting various examples from business to illustrate the dilemma. But he insists a businessperson can be ethical and prosper at the same time once he/she comprehends the social fellowship of humanity. (shrink)

This article attempts to uncover the relevance of Cicero’s thought to present-day management through an analysis of his last philosophical study, On Duties. Applying a methodology grounded in Socratic skepticism, Cicero synthesizes the Stoics and Aristotle to create his own moral theory. From this theory, we derive a Ciceronian set of recommended traits that make up a model business leader. Central to this model is the recognition that there are two lodestars in life, the beneficial and the honorable. The first (...) directs each of us to attend to our personal happiness, and the second to our moral worth. In Cicero’s view, the life of leading sizable associations is what best satisfies this dual imperative. The honor of a business leader is secured by the practice of four virtues: wisdom, justice, greatness of spirit, and seemliness. A leader properly seeks his/her own benefit by recognizing that success comes from the relationships he/she establishes and that he/she are more apt to cultivate these by being virtuous. Cicero is not so naïve as to fail to see that the beneficial and the honorable may come into tension, noting various examples from business to illustrate the dilemma. But he insists a businessperson can be ethical and prosper at the same time once he/she comprehends the social fellowship of humanity. (shrink)