This paper argues that Quaker business ethics can be understood as a MacIntyrean tradition. To do so, it draws on three key MacIntyrean concepts: community, compartmentalisation, and the critique of management. The emphasis in Quaker business ethics on finding unity, as well as the emphasis that Quaker businesses have placed on serving their local areas, accords with MacIntyre’s claim that small-scale community is essential to human flourishing. The emphasis on integrity in Quaker business ethics means practitioners are well-placed to resist (...) the compartmentalising pressures of contemporary work. Quaker business ethics is also highly critical of the manipulative forms of management that MacIntyre regards as dominant. As such, Quaker business ethics provides evidence that more morally ameliorative forms of running business organisations is possible, even if they remain difficult to achieve. (shrink)

This paper draws a distinction between ‘right MacIntyreans’ who are relatively optimistic that MacIntyre’s vision of ethics can be realised in capitalist society, and ‘left MacIntyreans’ who are sceptical about this possibility, and aims to show that the ‘left MacIntyrean’ position is a promising perspective available to business ethicists. It does so by arguing for a distinction between ‘community-focused’ practices and ‘excellence-focused’ practices. The latter concept fulfils the promise of practices to provide us with an understanding of the best work (...) for humankind and highlights the affinities between MacIntyre’s concept of a practice and Marx’s conception of good work as free, creative activity. The paper concludes with a suggestion that we reflect on the best forms of work so that we can strive to ensure the very best activities, those most consonant with our flourishing, one day become available to all. (shrink)

This paper presents a case study of the South African operation of a logistics company, operating in a context of short-termism and under-performance. Frustration with managing in this context, and concern that this environment might erode the customer value proposition, prompted an exploration of the question: “How can the business prioritise its investment in intangibles to support sustainable growth in an environment of short-termism and sub-par business performance?” The study followed an inductive grounded theory approach and began with an exploration (...) of the system of short-termism as it was being experienced by the management team. This evolved in an iterative process to include an exploration of the customer value proposition, the organisation’s capabilities and the system of investment in intangibles. Data were collected over a period of 6 months, across a series of four stages as the management team grappled with the short-term financial objectives imposed on them. The data categories were used to develop 214 propositions across all stages. Through the four stages, four artefacts were developed from the propositions a causal loop diagram of the system of short-termism; a documented value proposition; an assessment of the health of the business’ capitals; and a multi-year intangibles investment programme. The findings indicate that a focus on investment in intangible assets can play a vital role in stimulating sustainable value creation in an environment of historically poor returns on investment and pressure for short-term financial results. It is suggested that investment in intangibles can be introduced as a multi-year capabilities investment plan. The study succeeded in getting investment in intangibles approved and the implication is that long-term decision-making can co-exist in an environment of short-termism and low growth. (shrink)

This case study details how and why integrating storytelling, empathy, and inclusive practice shifted QSuper, a large Australian finance organisation, from minimal awareness to moral awareness then moral capability in the delivery of services to Indigenous customers. During the Royal Commission into Misconduct in the Banking, Superannuation, and Financial Services Industry, QSuper were recognised for their exemplary service with Indigenous customers (Hayne, Interim report: Royal commission into misconduct in the banking, superannuation and financial services industry, Volume 1. Commonwealth of Australia, (...) 2018; _Transcript of Proceedings, 13 August_, Commonwealth of Australia, 2018). This position was in stark contrast to the inaccessible service offerings of other financial organisations where some used predatory practices to sell unethical financial products to Indigenous Australians (Hayne, Interim report: Royal commission into misconduct in the banking, superannuation and financial services industry, Volume 1. Commonwealth of Australia, 2018; Hayne, Final report: Royal commission into misconduct in the banking, superannuation and financial services industry, Volume 1. Commonwealth of Australia, 2019a). Storytelling garned from visiting customers in remote communities and other meaningful activities involving inclusive practice to facilitate ethical decision-making in finance is different to standard functionalist finance approaches (Schinckus, Int Rev Financ Anal 40:103–106, 2015). Two empathetic questions asked within QSuper complementing the storytelling, were: “What is the right thing to do by the customer?” and “How would I feel if this were my mother?” Exploration into the lived reality of moral capacity is important based on the Commission finding many of the 490,000 finance staff do not know how to provide ethical services to vulnerable customers, in particular remote Indigenous customers (Australian Bureau of Statistics. Labour force, Australia, detailed. ABS. Retrieved from https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia-detailed /latest-release, 2021; Hayne, Final report: Royal commission into misconduct in the banking, superannuation and financial services industry, Volume 1. Commonwealth of Australia, 2019a). Furthermore, there is minimal literature on the role of Indigenous storytelling to heighten moral awareness in the finance industry which was found to lead to better ethical outcomes. (shrink)

Financial misconduct has come into the spotlight in recent years, causing market regulators to increase the reach and severity of interventions. We show that at times the economic benefits of illicit financial activity outweigh the costs of litigation. We illustrate our argument with data from the US Securities and Exchanges Commission and a case of investment misconduct. From the neoclassical economic paradigm, which follows utilitarian thinking, it is rational to engage in misconduct. Still, the majority of professionals refrain from misconduct, (...) foregoing economic rewards. We suggest financial activity could be reimagined taking into account intrinsic and prosocial motivations. A virtue ethics framework could also be applied, linking financial behavior to the quest for moral excellence and shared flourishing. By going beyond utilitarian thinking and considering alternative models, we offer a fuller account of financial behavior and a better perspective from which to design deterrence methods. (shrink)

Anthropomorphism is the attribution of human features to non-human subjects. Anthropomorphized organizations acquire in the minds of their members a unique identity, which becomes capable of guiding members’ motivations, with important managerial implications. Ashforth et al. offered a theoretical model of anthropomorphism in organizations, including “top-down” and “bottom-up” processes of organizational anthropomorphism as antecedents, and sensemaking and the sense of social connection of the organization as outcomes. Using SEM, this study operationalizes Ashforth et al.’s model using a two-trait scale of (...) organizational virtue derived from Chun, including measures of CSR and OCB as antecedents, and organizational justice and affective commitment as outcomes. The model is tested on survey data from seven UK managed service organizations in the hotels, logistics and legal sectors. As secondary contribution, moderation analysis is undertaken by industry, offering further insight into the evaluation of organizational anthropomorphism. Firstly, we note that high evaluations of Empathy influence evaluations of Courage through a halo effect. Secondly, we note that heuristic evaluation of the firm’s CSR practice also influences perceptions of Empathy and Courage. The paper also includes a discussion of the critique of organizational virtues by virtue ethicists in an effort to advance the dialogue between the two traditions. (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)

Alasdair MacIntyre´s criticism of Modernity essentially refers to the problem of compartmentalization, which restricts the possibility of achieving excellence in an integral lifestyle. Among other reasons, compartmentalization is especially derived from an insular valorization of the workplace based on a reductionist understanding of productivity in terms of mere efficiency. Aimed at overcoming the moral confusion derived from the overestimation of technical, skilled productivity and individualistic cooperation in private corporations, this article offers a thicker explanation of MacIntyre’s theory of productive work (...) in light of a narrative approach that opens up the possibility of achieving standards of excellence in modern production. To do so, it follows MacIntyre’s understanding of productivity in terms of craftsmanship by explaining what excellence in production is and the role it plays in achieving unity of life and excellence in modern corporations based on two criteria derived from a historical definition of production, namely, craftsmanship and collegiality. (shrink)

Ethical conflicts arise when there is no unity between the team members and shared ethical priorities. This study aimed to identify the relationship between ethical value unity, team knowledge hiding, the relationship between the lack of shared ethical priorities and the team knowledge hiding. Workplace friendship was taken as a moderating variable to check its regulating role between the ethical conflicts and the team knowledge hiding. Data of this study were collected from the staff working in different colleges and universities. (...) There are a total of 480 responses collected through convenience sampling technique and analyzed under a five-point Likert scale. The partial least squares-structural equation modeling technique is used in this study. The key reason was that this approach has the fewest requirements for data normality and is a better tool for evaluating exploratory connections empirically. The output of the measurement model assessment confirms that all measurement scales are reliable. The result indicates that there was a significant and positive relationship between ethical value congruence and knowledge hiding. It was also established that there was a relationship between lack of shared ethical priorities and knowledge hiding. Workplace friendship moderated the relationship between ethical conflicts and team knowledge hiding. This study extends the literature on ethical conflict and knowledge hiding behavior. This study highlights that one of the main reasons for knowledge hiding behavior at the team level in the organization is which helps the business practicians for a design of an effective strategy to mitigate the knowledge hiding behavior in the organization. (shrink)

This article considers financial risk management practice using a virtue ethics lens, in response to ongoing critiques of risk management from within business ethics. Risk management should be seen as embedded within a complex system of cultures, organizations and regulations that are underpinned by a quantitatively reductive or ‘mechanistic’ economic paradigm, where dominant logics of self-interest, profit maximization and short-termism prevail. Building on recent work applying virtue ethics in finance, an alternative to the values, normative expectations and priorities in financial (...) risk management is presented in the form of a refined ‘taxonomy’ of the virtues that can be applied to individuals and organizations engaged in financial risk management. This article aims to contribute to and extend debate on the ethical aspects of risk management and presents an alternative to more technically based critiques which do not engage with the underlying socially constructed foundations of risk management practice. It thereby provides a basis to critique the mechanistic and narrow approach used in the current regulation of the sector. (shrink)

Although legitimacy theory provides strong arguments that environmental, social and governance disclosure and performance can help mitigate firm-specific risks, this relationship has been repeatedly challenged by conceptual arguments, such as ‘transparency fallacy’ or ‘impression management’, and mixed empirical evidence. Therefore, we investigate this relationship in the revelatory case of initial public offerings, which represent the first sale of common stock to the wider public. IPOs are characterised by strong information asymmetry between firm insiders and society, while at the same time (...) suffering from uncertainty in firm legitimacy, culminating in amplified financial risks for both issuers and investors in aftermarket trading. Using data from the United States, we demonstrate that voluntary ESG disclosure reduces idiosyncratic volatility and downside tail risk and higher ESG ratings have lower associated firm-specific volatility and downside tail risk during the first year of trading in the aftermarket. We provide theoretical arguments for the relationships observed, suggesting that companies striving for ESG performance and communicating their efforts signal their compliance with sustainability-related norms, thus acquiring and upholding a societal license to operate. ESG performance and disclosure help companies build their reputation capital with investors after going public. We also report that ESG disclosure is a more consistent proxy for ex-ante uncertainty as an indicator of aftermarket risk, thereby replacing some of the more conventional measures, such as firm age, offered in the existing literature. (shrink)

We explore offshore outsourcing through the lenses of Catholic Social Teaching (CST). First, we review the outcomes of the 30-year debate in business ethics on issues related to offshore outsourcing. We then cluster authors into two groups—the justice-centered approach and the welfare-centered approach—corresponding to different perspectives on the ethical challenges of offshoring. In the second part, we present and apply the four fundamental principles of the CST (human dignity, subsidiarity, solidarity and the common good) to offshoring, in dialogue with the (...) previous debate. The unity and interconnection among the CST’s fundamental tenets provide a cohesive framework that integrates the points made by the justice-centered and welfare-centered approaches, while introducing the principle of solidarity, more focused on the worker as a person and their flourishing. CST also stresses the need to initiate processes oriented toward structural changes for the sake of human dignity and the common good. (shrink)

Neo‐Aristotelian virtue ethics applied to work and business theory have received increasing attention due to Alasdair MacIntyre's philosophy. At the same time, this approach has been accused of being inapplicable, a romantic nostalgia for an ideal world far from the reality of today's markets. Moreover, the more this theory evolves, the bigger the gap seems to become, as if good work were at odds with its economic dimension. This paper aims to address this gap by explaining how MacIntyre's neo‐Aristotelianism conceives (...) of the economic dimension of good work. In particular, we claim that it is consistent with MacIntyre's philosophy that said economic dimension of work can be defined in terms of excellence and virtue, particularly in accordance with the virtues of justice and unity of life. However, for these virtues of good work to be practicable, a reconsideration of market practices performed under the logic of giving and receiving is needed. Hence, defining and sustaining an economic dimension of good work in MacIntyre also depend on the possibility of market practices being defined as excellent. (shrink)

ABSTRACTFinance may suffer from institutional deformations that subordinate its distinctive goods to the pursuit of external goods, but this should encourage attempts to reform the institutionalization of finance rather than to reject its potential for virtuous business activity. This article argues that finance should be regarded as a domain-relative practice. Alongside management, its moral status thereby varies with the purposes it serves. Hence, when practitioners working in finance facilitate projects that create common goods, it allows them to develop virtues. This (...) argument applies MacIntyre’s widely acknowledged account of the relationship between practices and the development of virtues while questioning some of his claims about finance. It also takes issue with extant accounts of particular financial functions that have failed to identify the distinctive goods of financial practice. (shrink)

This special issue of the Journal of Business Ethics commemorates the 40th Anniversary Conference of the Hoffman Center for Business Ethics at Bentley University. It collects seven of the papers that were presented at the conference in 2016, when scholars, practitioners, and policymakers from across the globe convened to discuss “Global Perspectives on Business Ethics.” From conceptual thinking to theory building and empirical analysis, these articles present several future and mutually supportive directions for research to influence the context and conduct (...) of business through its challenges and changes over the next 40 years. (shrink)