The aims of this research were twofold: first, to compare the levels of organisational harmony between family and non-family firms and, second, to study the influence of organisational harmony on family firms’ performance (profitability, longevity and group cohesion). Starting from a definition of organisational harmony as a value and considering the importance of the management of organisational values, we use the main topics indicated by the general literature (organisational climate, trust and participation) to analyse organisational harmony, as well as three (...) other topics for performance (profitability, survival and group cohesion). Results indicate that family firms have higher levels of these three qualities than non-family firms, and that the levels of trust, participation and organisational climate have a positive and significant influence on the performance of family firms. These results can be understood as a consequence of the influence of family social capital on organisational social capital and so on the performance of family businesses. From the perspective of institutionalism, the higher levels of harmony existing in family businesses are a reflection of the pressures that the owning family as an institution exercises on the organisational social capital in its companies. (shrink)

There is a fundamental tension in business ethics between the apparent need to ensure ethical conduct through hierarchical control, and the encouragement of individuals' potential for autonomous moral judgement. In philosophical terms, these positions are consequentialist and Kantian, respectively. This paper assumes the former to be the dominant position in practice, and probably in theory also, but regards it as a misplaced extension of the more general managerial tendency to seek and maintain control over employees. While the functions of such (...) control are recognized, the arguments in favour of individuals' moral autonomy are pursued from both a Kantian and a social–theoretic perspective. Reference is made to Kohlberg's research on moral development that provides an insight into how individuals, through participation in debate with colleagues, might become more effective moral agents within organizational settings. This is contrasted with a managerial perspective, which pays lip service to individuals' right to such genuine involvement. The paper considers psychological manipulation and the legitimacy of managerial authority on matters of ethics, as opposed to in the purely technical context. The wider societal significance of such hierarchical power in organizations constitutes an important background to the paper. It is concluded that genuine, non‐manipulative, participation by employees is the way forward for the ethical management of business ethics. (shrink)