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)

Some recent discussions of corporate loyalty have found it misguided, while others see it as crucial for financial success. Thereis also disagreement over the nature of loyalty. This article analyzes the concept of loyalty, arguing that it is neither a duty nor a virtue(although it has overlaps with those categories), but a passion related to various virtues (and vices). Contrary to standard accounts ofcapitalism, loyalty does not necessarily oppose self-interest. Furthermore, corporations can and should be communities, andinsofar as they are, (...) they are proper objects for loyalty. If corporations are not communities, then loyalty to them cannot exist. (shrink)

The existence of a plurality of communities, a diversity of norms, and the ultimate contingency of all decisions in modern societies complicates the task of academics and practitioners who wish to be ethical. In this paper, we envisage and articulate a dialogical, communitarian approach to embedding business ethics that requires business ethicists to more reflexively engage with practitioners in working on and representing the normative criteria that people in organisations use to deal with moral dilemmas in business. We promote the (...) idea that business ethicists should not only cross the divide between normative ethics and empirical research, but also take a step beyond the empirical to become more active change agents. As potential exemplars of this approach in practice, we explore how self-critique and cross-disciplinary collaboration in education and teaching might be used by academics to engage current and future business ethicists, as well as managers, in dialogic partnership. In an organisational context, we also propose a three-part approach to embedding reflexive ethics in practice, through dialogic research, debate, and re-presentation of ideas. We contend that our approach has more efficacy than the traditional grand theories of ethics or more focused theories of business ethics, such as Integrated Social Contract Theory; it has the potential to provide more grounded, and therefore more practical, advice to academics, current and future business ethicists, and business practitioners. (shrink)

The notion that business organizations are akin to Aristotelian political communities has been a central feature of research into virtue ethics in business. In this article, I begin by outlining this “community thesis” and go on to argue that psychological research into the “just world fallacy” presents it with a significant challenge. The just world fallacy undermines our ability to implement an Aristotelian conception of justice, to each as he or she is due, and imperils the relational equality required for (...) shared participation in communities. In the final section, I offer a description of what Aristotelian community might look like within organizations, and some suggestions about how it may be possible to resist the challenge posed by the just world fallacy. (shrink)

Beyond different starting points, stakeholder theory and Catholic Social Thought share many compatible perspectives when analyzing the role of the firm in economic activity, especially regarding the attention of the firm to different social and economic actors. Additionally, ST bears limitations regarding its ethical and anthropological foundation, and also about the legitimation of the different stakeholders’ interests. Therefore, ST lacks clear criteria to solve possible conflicts of interest between stakeholders. This paper analyzes the potentiality of ST, widely accepted in corporate (...) management, to integrate CST principles in order to solve those conflicts. At the same time, the paper studies the possibility of finding in the principles of CST an anthropological and ethical foundation for ST. This foundation could be the source of criteria to discuss the levels of legitimation and prioritization between stakeholders´ interests, especially when those interests collide. (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)

Abstract:There is good reason to take a virtue-based approach to business ethics. Moral principles are fairly useful in assessing actions, but understanding how moral people behave and how they become moral requires reference to virtues, some of which are important in business. We must go beyond virtues and refer to character, of which virtues are components, to grasp the relationship between moral assessment and psychological explanation. Virtues and other character traits are closely related to (in technical terms, they supervene on) (...) personality traits postulated by personality psychologists. They may therefore be featured in respectable psychological explanations. But good character fits no familiar psychological pattern. A person of good character is sufficiently self-aware and rational that his or her virtues are not accompanied by the vices that psychologists find usually associated with them. A course in business ethics can help develop this self-awareness, which a good life in business requires. (shrink)

The term « subsidiarity » started to appear in managerial literature in the last few years, to advocate innovative managerial practices. The resurgence of this concept that originated from a political context can create problems. The goal of this paper is to expose the main difficulty of translating this concept from the political field to a corporate situation. Indeed, subsidiarity gives its inherent power back to the lower echelons of a political community. But the economic approach of organization theory assumes, (...) mainly by the means of agency theory, a top-down conception of the firm. Thus, it is not the lower echelons which delegates power to the higher echelons. Consequently, the subsidiarity principle seems not to be applicable to a corporate setting, unless we reverse the assumptions of economic approach of organization theory. Then, the principle of subsidiarity could be used as an illusion to con employees into believing they have legitimate power, in order to manipulate their freedom, and domesticate it for managerial ends. (shrink)

Smith defines the business enterprise primarily as the endeavor of an individual who remains fully embedded in the broader society and subject to its moral demands. For him, the conceptions of the local community and its normative framework, of the enterprise, and of the individuals within it need to be aligned with each other and developed together. Over time, four processes have, however, led to a widening gap between the business world and the local community. These are the dissemination of (...) the corporate model, the transformation of the entrepreneurial role toward an agency role, changes in the ownership structure, and changes in the relation to the local community. This article presents Smith’s integrative conception of business and its contributions to the development of integrative theories of organizations and of business–society relations in the twenty-first century. Among others, it discusses the necessity to develop a normative-relational dimension of organizations that addresses the relations between the organization, its members, and the normative framework of the local community. This integrative approach of business–society relations challenges current business ethics research which often suggests that solutions to the current scandals lie either within the framework, the organization, or the individuals. (shrink)

Abstract:We have a very decent belief structure or general paradigm underlying Business Ethics as a formal field of study. It has an explicit moral base. It can be stated in simple and direct terms. It has been developed over a number of recent years by a group of respected scholars from a variety of academic disciplines. It is, however, subject to multiple interpretations and open to extensive conflicts. We can easily tolerate if not benefit from the differing interpretations. We must—at (...) some point—moderate if not resolve the debilitating conflicts. The argument I wish to make in this paper is that we have reached that point. It is time to resolve the conflicts, and the way to do so is to generate awkward, undeniable facts through basic empirical research. Those facts will then have to be incorporated into acceptable—and eventually accepted—theory. (shrink)

In response to conventional rationalistic approaches to management and corporate governance, the Aristotelian tradition is emerging as a basis for alternative theories in which practical wisdom is central. This paper, following Aristotle and Thomas Aquinas, considers the specificity of “political wisdom” -directed to the common good- as being different from individual practical wisdom. We suggest that the business firm is a “political community”, understood as a whole formed by free and intelligent individuals called to cooperate for common goals and to (...) pursue a common good. This orientation toward the common good requires political wisdom. After discussing the concepts of “political wisdom” and the business firm as “political community” we propose a number of implications of political wisdom in management and corporate governance. (shrink)

The first issue of BusinessEthics Quarterlyappeared five years ago. This article classifies the content of the 141 articles that have appeared since that time along 18 dimensions, and 118 categories within those dimensions, to determine trends within the discipline. The major trend appears to be a shift in focus towards the increased discussion of a new approach/paradigm for the field, and towards a normative/descriptive interface of the theory. The major problem seems to be a lack of explicit conceptual definition and (...) beginning empirical effort to support that new focus, which may thus prove unsustainable over time. (shrink)

We introduce the papers in this special issue by providing an overarching perspective on the variety in kinds of commons and the ethical issues stemming from their diversity. Despite a long history of local commons management, recent decades have witnessed a surge of scholarly interest in the concept of “the commons,” including a growing management literature. This swell was impelled especially by Garrett Hardin’s paper of 1968, and the body of work generated by Elinor Ostrom and her colleagues. However, the (...) term itself has come to be used in a variety of ways. To contextualize its ethical dimensions, we map a number of commons-related concepts such as common-pool resources, common property regime, excludability and subtractability, common-pool resource types and commons or “commoning” as a source of production. Following a brief summary of papers in this special issue, the essay concludes with an identification of implications for research, practice and policy. (shrink)

Despite the centrality of the topic for the debate on sustainability, future generations have largely been ignored by business ethics. This neglect is in part due to the enormous philosophical challenges posed by the concepts of future generations and intergenerational duties. This article reviews some of these difficulties and defends that much clarity would be gained from making a distinction between future generations and the next generations. It also argues that the concept of next generations offers a better starting point (...) for business ethics to incorporate the topic in its research agenda. We then suggest four potential pathways to explore this territory. The four approaches build on the notion of organizations as communities with memory and vision, on the narrative shape of organizational life, on the affinity of stakeholders with the next generation, and on systems of indirect reciprocity. These first two approaches are connected to communitarian approaches to business ethics, and the last two engage in a dialog with contractarian views and stakeholder theory. The article ends with some implications for theory and practice. (shrink)

ABSTRACT:The ubiquity of family dominated firms in economies worldwide suggests that inquiry into the nature of the ethical frames of these types of firms is increasingly important. In the context of a social exchange approach and the norm of reciprocity, this manuscript addresses social cohesion in a dominant family firm coalition. It is argued that the factors underlying this cohesion, direct versus indirect reciprocity, shape unique attributes of family firms such as intentions for transgenerational sustainability, the pursuit of non-economic goals, (...) and strong interpersonal ties. Exchange structures, represented by direct and indirect reciprocity, lead family and non-family firms toward development of distinctive ethical frames of reference. (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)

Corporate codes of ethics, which have spread in the last decades, have shown a limited ability to foster ethical behaviors. For instance, they have been criticized for relying too much on formal compliance, rather than taking into account sufficiently agents and their moral development, or promoting self-reflexive behaviors. We aim here at showing that a code of ethics in fact has meaning and enables ethical progress when it is interpreted and appropriated with practical wisdom. We explore a model that represents (...) an uncommon organizational code of ethics: the monastic Rule of St. Benedict, written in the sixth century and still used today. Our empirical study—conducted in several monasteries living under this rule—shows that organization members interpret this rule, both hermeneutically and ethically, to adapt it to situations. They also appropriate this rule as a way of life and treat it as a dynamic framework that helps them to follow their purpose within their organization. This exceptional code actually offers an alternative model for practicing codes of ethics, in a virtue-ethical manner, beyond mere compliance with the text. The way in which reflexive and active agents practice the code, both individually and collectively, shapes their organizational experience and fosters their moral development. (shrink)

Virtue ethics is generally recognized as one of the three major schools of ethics, but is often waylaid by utilitarianism and deontology in business and management literature. EBSCO and ABI databases were used to look for articles in the Journal of Citation Reports publications between 1980 and 2011 containing the keywords ‘virtue ethics’, ‘virtue theory’, or ‘virtuousness’ in the abstract and ‘business’ or ‘management’ in the text. The search was refined to draw lists of the most prolific authors, the most (...) cited authors, the most cited articles, and the journals with the most virtue ethics publications. This information allows one to chart how virtue ethics articles have evolved through the decades and to establish ‘schools’ or clusters of authors as well as clusters of themes. The results of this quantitative analysis of authors, ‘schools’, themes, and publications provide a foundation for the future study of virtue ethics in business and management, identifying its achievements and potentials. (shrink)