Entry of new organizations, including multinational enterprises from emerging markets, raises the ethical question of will they benefit society. The concept of legitimacy answers this question because it is the overall assessment of the appropriateness of organizational ends and means. Moreover, gaining legitimacy enables EMNEs to succeed in new host countries. Past work examined collective level indicators of the legitimacy of MNEs, but recent research recognizes the importance of individuals’ perceptions as the micro-foundation of legitimacy. This study first uses new (...) pragmatism, deontology, and utilitarianism to demonstrate that legitimacy is fundamentally an ethical concept—a perspective that has been overlooked in management research. Second, this study uses a seven-step procedure to develop and validate a measure of individuals’ perceptions of the legitimacy of Chinese EMNEs operating in The Netherlands, a developed country. Six dimensions of legitimacy were identified. The study also finds support for this legitimacy judgment process linking the dimensions: validating knowledge → propriety judgments → generalized judgment. This work provides additional micro-foundations to research on legitimacy and contributes to the ongoing process of construct validation. Future research could use the validated measure in other settings and use specific ethical theories in depth to refine the concept of legitimacy. (shrink)

Management practices prevailing in business organizations receive considerable criticism for often treating the employee as one of many resources or an instrument to achieve the organization’s goals. As employee reification has so far been largely investigated in the scientific literature from the perspective of neo-Marxist approach, this article seeks to broaden the discussion by showing how social teaching of the Catholic Church can serve to solve the problem of reification. Although there is no doubt that universal norms of business ethics (...) can serve as protection of the employee dignity from the individual’s reification tendencies, moral relativism operating in postmodern life tends to call into question any universal moral norms. Therefore, this article discusses how responses to challenges posed by moral relativism can be obtained by applying methodological approaches proposed by the neo-Marxist classics Lukács, Honneth, and Catholic Social Teaching. The similarities and differences of these approaches are identified, and attention is also drawn to the possibilities and limitations of their application in business ethics practice. It is also demonstrated how understanding of human dignity and the attitude to a virtue, offered by social teaching of the Catholic Church, broadens the discussion on addressing the dangers posed by the person’s reification in organizations. (shrink)

The rise of the platform economy in the past two decades (and neoliberal capitalist expansion and crises more in general), have on the whole negatively affected working conditions, leading to growing concerns about the “human side” of organizations. To address these concerns, the purpose of this paper is to apply Axel Honneth’s recognition theory and method of normative reconstruction to working conditions in the platform economy. The paper concludes that the ways in which platform organizations function constitutes a normative paradox, (...) promising flexibility and autonomy while at the same time creating working conditions that undercut these promises. The paper ends with a critical discussion of Honneth’s approach, possible supplementing ideas and further lines of future research. (shrink)

Given his view that the modern world is ‘radically evil’, Adorno is an unlikely contributor to business ethics. Despite this, we argue that his work has a number of provocative implications for the field that warrant wider attention. Adorno regards our social world as damaged, unfree, and false and we draw on this critique to outline why the achievement of good work is so rare in contemporary society, focusing in particular on the ethical demands of roles and the ideological nature (...) of management’s self-understanding. Nevertheless, we show that Adorno’s comments on activities such as art and philosophy mean that it is possible to draw on his work in a way that contributes constructively to the conversation about good and meaningful work within business ethics. (shrink)

We identify a normative paradox of responsible management education. Business educators aim to promote social values and develop ethical habits and socially responsible mindsets through education, but they attempt to do so with theories that have normative underpinnings and create actual normative effects that counteract their intentions. We identify a limited conceptualization of freedom in economic theorizing as a cause of the paradox. Economic theory emphasizes individual freedom and understands this as the freedom to choose from available options. However, conceptualizing (...) individuals as profit-maximizing actors neglects their freedom to reflect on the purposes and goals of their actions. We build on the work of pragmatist philosopher John Dewey, who distinguishes between habitualized and creative problem-solving behaviors, conceptualizes knowledge construction as a process of interdependent scientific social inquiry, and understands actors as having the freedom to determine what kind of people they wish to be. We apply pragmatist theory to business education and suggest equipping students with a plurality of theories, supplementing neoclassical economics with other economic perspectives and views from other disciplines on economic behavior. Moreover, we suggest putting students into learning situations that require practical problem solution through interdependent social inquiry, encouraging ethical reflection. In doing so, we contribute by linking the problematic conceptions of freedom identified in economic theorizing to the debate on responsible management education. We conceptualize a pragmatist approach to management education that explicitly re-integrates the freedom to discursively reflect on the individual and societal purpose of business activity and thereby makes existing tools and pedagogies useful for bringing potential freedom back into business. (shrink)

As business ethics is grappling with criticisms of its relevance for ethical practice, it may find perspective and direction in various conceptions of ethos. While ‘ethics’ is rooted in ‘ethos’, a term with a long and rich history of interdisciplinary research, conceptions of ethos are so far scarcely discussed in business ethics. The purpose of this conceptual article is to explore the potential of a pivot towards business ethics as an ethos-driven practice, drawing on John Dewey’s work. First, it introduces (...) four conceptions of ethos from interdisciplinary research and explores their varied resonance in business ethics. Second, it offers a unified conception of ethos that builds on John Dewey’s approach to economics, moral life and ethics, particularly on his understanding of habits and forms of valuation. It is then argued that understanding ethos in terms of ‘valued modes of embedded, embodied and associational conduct’ encourages business ethics to engage in the intelligent, practical and meaningful reconstruction of evolving business practices. The article concludes that an ‘ ethotical turn’ for business ethics would not only invigorate practical, corporeal and environmental perspectives but also open the field to interdisciplinary insights and ideas. (shrink)

Based on an abductive analytic study, we examine financial and social value incorporation in the multi-valued market of impact investing. This paper draws on interviews with investment professionals in 54 charitable foundations, intermediary and field building organizations in the impact investing market, to compare market objectives with practice, and to determine whether social and financial values are incorporated, thus producing ‘returns’ of both types through market exchange. We find unincorporated valuation is apparent at both the market level and for several (...) types of investors in contrast with the incorporated or even integrated valuations of other investors. This demonstrates that rather than incorporating logics in a binary or hybrid way, valuation in the moral market of impact investing occurs in a multiplicity of ways and on different levels of the market, depending on a variety of factors including adherence to traditional financial market standards and market design and maintenance. (shrink)

This paper aims to demonstrate the contemporary relevance of Adorno’s thought for business ethicists working in the critical tradition by showing how his critique of modern social life anticipated, and ofers continuing illumination of, recent technological transformations of capitalism. It develops and extrapolates Adorno’s thought regarding three central spheres of modern society, which have seen radical changes in light of recent technological developments: work, in which employee monitoring has become ever more sophisticated and intrusive; leisure consumption, in which the algorithmic (...) developments of the culture industry have paved the way for entertainment products to dominate us; and political discourse, in which social media has exacerbated the anti-democratic tendencies Adorno warned of in the mid-twentieth century. We conclude by presenting, as a rejoinder to these developments, the contours of an Adornian ethics of resistance to the reifcation and dehumanisation of such developments. (shrink)