Responsibilities towards employees constitute a recognised general subject area in the field of business ethics. Thus, research has been done regarding respecting employees’ rights to fairness in dismissal procedures, to their privacy, to a fair wage, etc. Employee loyalty has also been shown to be very important both in management literature and in legal debate but much less attention has been given to employer loyalty which could be one of the responsibilities of an employer to his or her employee. Rather, (...) some confusion regarding the nature of loyalty has at times led to suggestions that loyalty should be replaced by self-interest. However, scholars who favour this view usually do so in reaction to the one-sidedness of loyalty expectations. This paper proposes that loyalty is a duty that employers also owe their employees, based on the reciprocal nature of certain rights and duties within human relationships and an understanding of psychological contracts. Thus the paper argues that loyalty should be a mutual expectation between the parties rather than unidirectional. In fact, employer loyalty enriches the employers themselves in terms of their human fulfilment, since it is a human virtue, and leads to employee loyalty response, which then impacts the bottom-line.The paper’s content is also important insofar as it could contribute to building ethical duty foundations for employers in developing countries where weak regulatory environments combine with the harshness of the economy to make it an employers’ world and make instances of unfairness towards employees common. (shrink)

Conceptualization and measurement of organizational commitment involve different dimensions that include economic, affective, as well as moral aspects labelled in the literature as: ‘continuance’, ‘affective’ and ‘normative’ commitment. This multidimensional framework emerges from the convergence of different research lines. Using Aristotle’s philosophical framework, that explicitly considers the role of the will in human commitment, it is proposed a rational explanation of the existence of mentioned dimensions in organizational commitment. Such a theoretical proposal may offer a more accurate definition of ‘affective (...) commitment’ that distinguishes feelings from rational judgments. The use of a philosophical explanation coherent with psychological findings also allows the discovery of a wider moral concept of ‘normative commitment’. (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)

There are many theories about organizations that are mutually inconsistent with each other, which explain phenomena to very similar extents. Most of them ignore the ethical dimension completely. In this paper I put forth the basic principles for a theory of decision-making in organizations, which integrates ethics in the core of the theory. It is based on the work of Juan Antonio Pérez López [1991, Teoría de la Acción humana en las organizaciones (Ediciones Rialp, Madrid), 1993, Fundamentos de la Dirección (...) de Empresas (Ediciones Rialp, Madrid)] and is essentially a humanistic view of the interrelationships between people and its implications for organizational decision-making. I will first show that in any relationship between two people, the learning of the two is crucial for such a relationship to last; and then I will expand on the different aspects of that learning. This analysis will then be applied to the organizational context as a basis for organizational decision-making, Second, it applies the previous analysis to the organizational context as a basis for organizational decision making, showing how any decision in an organization needs to be analyzed on the basis of three criteria (short-run effectiveness, development of distinctive competence, and unity and identification with the organization) and how ethics is included in the last two. (shrink)

This paper seeks to analyze and to motivate a trend toward virtue ethics and away from deontology in the business ethics account of organizational loyalty. Prevailing authors appeal to “transcendent” values (deontology), skepticism (there is no loyalty), or Aristotelianism (loyalty is seeking mutual self-interest). I argue that the “Aristotelian” view clears up the “egoist” difficulty with loyalty. Briefly, critics feel we must “transcend,” “replace,” “overcome” and most especially sacrifice self-interest on the altar of ethics and loyalty. I argue that few (...) things can be more ethical than loyalty to shared values. When a company and I both pursue the same value X, there becomes no difference between my seeking my best interest and my seeking the best interest of the company (and vice versa). Hence, the way out of the egoist difficulty with loyalty is seeing a company’s interests as my own (Aristotle’s third stage of friendship). (shrink)

Trust is a key ingredient of business activities. Scams are spectacular betrayals of trust. When the victim is a powerful organization that does not look vulnerable at first sight, we can suspect that this organization has developed an excessive trust, or over-trust. In this article, we take over-trust as the result of the intentional production of gullibility by the scammer. The analysis of a historically famous scam case, the Elf “Great Sniffer Hoax,” suggests that the victim is made gullible by (...) the scammer through a range of seduction and protection maneuvers that prevent the victim from developing doubts and suspicions. An integrated framework of the production of gullibility in organizations is proposed in order to further our understanding of over-trust. We discuss how these insights might be extended, beyond the case of scams, to more ordinary contexts of business activities. (shrink)

There is a need of further research to understand how social capital in the organization can be fostered. Existing literature focuses on the design of reciprocity norms, procedures and stability employment practices as the main levers of social capital in the workplace. Complementary to these mechanisms, this paper explores the impact of ethical managerial behaviour on the development of social capital. We argue that a managerial behaviour based on the true concern for the well-being of employees, as well as their (...) motivational and ethical development, can be particularly important for the generation of social capital in the organization. It is suggested that manager's behaviour should be based on three principles: following examplary behaviour, helping the employees to value the consequences of their actions in other persons, and not betraying employee's trust. When the manager conforms to those principles, he can ease the process through which employees develop associability and identification-based trust with the firm, the two main components of 'Organizational Social Capital'. Bringing ethics into the debate of social capital creation seems to us fundamental, as social capital in the firm is likely to be influenced by the ethical and motivational development of its members. (shrink)

In recent years UK government policy has been drawing private companies into the operation of the British National Health Service as providers of health care. Hitherto the National Health Service has been the main employer of health care practitioners, but this may change as a result of this development. There is an issue as to whether professional health care practitioners owe the same moral commitment to an employer in the private sector as they would owe to an employer that is (...) part of the state-run National Health Service. I explore some arguments around this issue, focusing on ways of identifying organisational commitment to good health care. With regard to the practitioners commitment to the organisation I consider two strengths of commitment, normative and calculative. I then undertake an analysis of performance, regulatory regimes, and organisational obligations for both sectors. I conclude that while performance and regulatory regimes show little difference between sectors, there is a reasonably compelling argument in favour of a stronger moral commitment to state bodies based on organisational obligations. (shrink)

Rights claims are ubiquitous in modernity. Often expressed when relatively weaker agents assert claims against more powerful actors, especially against states and corporations, the prominence of rights claims in organizational contexts creates a challenge for virtue-based approaches to business ethics, especially perspectives employing MacIntyre’s practices–institutions schema since MacIntyre has long been a vocal critic of the notion of human rights. In this article, I argue that employee rights can be understood at a basic level as rights conferred by the rules (...) constitutive of practices. As such, employee rights correspond to the obligations of practitioners to treat fellow practitioners according to the standards of excellence and requirements of justice. Thus, one way that managers can ensure that their core practice is well-functioning is to recognize employee rights. One implication of this argument is that managers should adopt a more positive stance toward labor unions, insofar as they are a key way for employees to ensure that their voice is heard, and their rights respected. (shrink)

In this paper, we review the conventional analyses of management control systems, to conclude, first, that the illusion of control can mislead managers into believing that everything can be controlled and monitored, and, second, that no incentive system based only on extrinsic rewards can motivate individuals properly. Then, we investigate the philosophical foundations of the basic assumptions that, implicitly or explicitly, are made about the nature of the acting person. Based on personalist phenomenology, we show how the development of technical (...) and moral values is crucial to the long-run survival of organizations. We end by offering some guidelines as to what control systems should be like in order to be compatible with the nature of human persons. (shrink)

Ethics has recently gained prominence in debates surrounding social capital creation. Despite the significant theoretical progress in this field, it still lacks empirical research. The goal of this study is to empirically explore the ethical leadership of supervisors as an antecedent of the firm’s social capital. We build on social learning theory to argue that employees can learn standards of appropriate behavior by observing the behavior of role models. By displaying and enforcing ethical behavior, supervisors can facilitate the process through (...) which employees learn to feel empathy toward others and establish profound affective relationships with them. Data were collected from 408 Spanish, French, and Portuguese part-time MBA students. Using structural equation modeling techniques, we show that the ethical leadership of supervisors exerts a significant influence on the structural, relational, and cognitive dimensions of social capital. (shrink)