Many models of (un)ethical decision making assume that people decide rationally and are in principle able to evaluate their decisions from a moral point of view. However, people might behave unethically without being aware of it. They are ethically blind. Adopting a sensemaking approach, we argue that ethical blindness results from a complex interplay between individual sensemaking activities and context factors.

The explosion of health-related costs in U.S. firms over more than a decade is a huge concern for managers. The initiation of Health and Safety programs at the firm level is an adequate Corporate Social Responsibility initiative to contain this evolution. However, in spite of their documented efficiency, firms underinvest in those programs. This appears as a puzzle for health economists. In this paper, we uncover a strong negative relation of financial leverage to the implementation of H&S programs. The negative (...) impact of debt on investment and CSR activities is generally interpreted as an efficient disciplinary effect of debt on managers. H&S are particularly well suited to revisit this evidence, given their strong profitability and homogeneity across firms. Very interestingly, the negative effect is stronger for firms with high free cash flows, for which debt is used to prevent overinvestment. This strongly suggests that debt, while disciplining managers, also discourages investments which are valuable both for firms and society. (shrink)

In considering what it means to lead organizations effectively and ethically, the literature comprising spirituality at work and spiritual leadership theory has become highly influential, especially in the USA. It has also attracted significant criticism. While in this paper, we endorse this critique, we argue that the strand of literature which purportedly takes a Christian standpoint within the wider SAW school of thought, largely misconstrues and misapplies the teaching of its founder, Jesus. As a result, in dismissing the claims and (...) application of SAW and SLT, there is a real risk that we lose the vital contribution of Christian thought, not least some of the timeless counter-cultural wisdom of Jesus which, we contend, offers a vital foundation to the practice of ethical leadership and business ethics in organizations. In proposing a way forward, two thorny issues which face all leaders are addressed: dealing with ego and closing the gap between what we say and what we do. The more we understand about the dynamics of human nature, the more we learn about the profundity of Jesus’ teachings. We then propose a number of ways in which Jesus-centred ethical leadership can be practised. Each is radical and each implies risk: both the personal risk of inner renewal arising from repentance as a doorway to personal integrity, as well as the risk of opposing unethical practices and promoting the excellence of core practices in the workplace. (shrink)

This paper contributes to the contemporary business ethics narrative by proposing an approach to corporate ethical decision making (EDM) which serves as an alternative to the imposition of codes and standards to address the ethical consequences of grand challenges, like COVID-19, which are impacting today’s society. Our alternative approach to EDM embraces the concept of reflexive thinking and ethical consciousness among the individual agents who collectively are the corporation and who make ethical decisions, often in isolation, removed from the collocated (...) corporate setting. We draw on the teachings of the Canadian philosopher and theologian, Fr. Bernard Lonergan, to conceptualize an approach to EDM which focuses on the ethics of the corporate agent by nurturing the universal and invariant structure that is operational in all human beings. Embracing Lonergan’s dynamic cognitive structure of human knowing, and the structure of the human good, we advance a paradigm of EDM in business which emboldens authentic ethical thought, decision making, and action commensurate with virtuous living and germane to human flourishing. Lonergan’s philosophy guides us away from the imposition of over-arching corporate codes of ethics and inspires us, as individual agents, to attend to the data of our own consciousness in our ethical decision making. Such cognitional endowment leads us out of the ethics of the ‘timeless present’ (Islam and Greenwood in Journal of Business Ethics 170: 1–4, 2021) towards ethical authenticity in business, leaving us better placed to reflect upon and address the ethical issues emanating from grand challenges like COVID-19. (shrink)

This theoretical paper takes an agency-theoretic approach to questions of corporate social responsibility (CSR). A comparison of various extant frameworks focusses on how CSR agency emerges in complex multi-agent and multi-sector stakeholder networks. The discussion considers the respective capabilities and relevance of these frameworks – culminating in an integrative CSR practice model. A short literature review of the evolution of CSR since the 1950’s provides the backdrop for understanding multi-agent cross-sectoral stakeholder coalitions as a strategic determinant of today’s organizational behavior. (...) The paper turns to Werhane’s coupling of moral imagination and systems thinking and forging stakeholder coalitions in problem contexts that were traditionally deemed intractable by for-profit organizations. However, it identifies the problem that the systems approach treats macro-agents (organizations, stakeholders) as given (“black-boxed”) and shies away from more radically re-imagining the possibilities of reassembling agency from the bottom up. Actor Network Theory (ANT) provides such a method, which strictly commits to treating organizational behavior as a product of technological, human and environmental micro-processes. ANT, however, is lacking a genuine moral deliberative stance in designing complex CSR coalitions. In an attempt to capitalize on the respective strengths of these frameworks (Systems thinking and ANT) the paper tends to a recent iterative series of “situational transactive” models that are rooted in the US pragmatist tradition and seek to capture intelligent planning processes in complex problematic contexts. The contribution proposes a new CSR practice model, which assigns specific roles to the theoretical contributions of ANT, system thinking and pragmatism in complex deliberation processes. This model can be industry-tested in a future study. (shrink)

In the period since the 2008 Wall Street crash, little consensus has emerged on its causes or actions to prevent a recurrence. Our capability for rational decision making was overwhelmed. Viewing the entire financial system as a huge, richly interconnected organization suggests that its structure and associated management practices are suited for a far simpler environment. An organization that is large relative to its environment and sufficiently complex to require the coordination of specialized expertise cannot function by enabling decision makers (...) to respond only to local demands. The resulting inability to recognize critical interdependencies and the nature of their risk makes periodic catastrophic failure likely. Specifically, compartmentalization of information, influence, and reward creates a myopic decision environment in which individual decision makers are unlikely to make effective or ethical decisions. Useful criteria for evaluating solutions can be suggested by considering the interaction of two factors: limited human information processing capability and the effect of motivation on information processing. Taken together, they suggest that human information processing is both limited and opportunistic. We cannot process all information available and the information selected for processing narrows to that needed to achieve salient rewards. Because of this, the organization's reward practices and their effect on motivation are a critical variable. Large financial rewards contingent upon short term, local, simplistic measures inevitably narrow the focus of decision maker's attention to a small part of the system. In contrast, dominant intrinsic motivation is rooted in awareness of, and responsibility for, broader outcomes. Each type of motivation differs in its requirements for sharing of information, influence, and reward. These, in turn, determine the adaptability of the organization to complexity and change. While this has significant ethical implications, its logic rests on the limitations of human information processing and motivation. Aligning human motivation and information flow to the demands of a complex, turbulent financial environment is the challenge we must meet to prevent further cataclysms. (shrink)

One of the still unsolved problems in liberal anarchism is a definition of social constituency in positive terms. Partially, this had been solved by the advancements of liberal discourse ethics. These approaches, built on praxeology as a universal framework for social formation, are detached from the need of any previous or external authority or rule for the discursive partners. However, the relationship between action, personal identity, and liberty within the process of a community becoming solely generated from the praxeological a (...) priori remains largely disputed. In order to develop a testable constitutional model, this study revises how the “ontological turn” was introduced into liberal theories and redefines the concept of liberty. Liberty is usually understood as a moral goal or measurement for just actions, as the generative principle of all social existence - individual and interpersonal. For this purpose, the function of performative contradiction within the mechanism of interpersonal “encounter”, as part of the co-generative process of the individual becoming and social formation was explored through the production of a game-based narrative historiography grounded on 19th century life writings. This narrative historiography was developed in the context of Swiss history, with a “design-based” research approach, and resulted in a prototype for networked storytelling through which the transformative learning process could be visible and the negotiation of competing individual visions of the future could be re-enacted. (shrink)