This article presents a response to Richard Rorty's paper "Is Philosophy Relevant to Business Ethics?" The author questions Rorty's views on the depreciation of the role of philosophy in applied ethics, and outlines four reasons why philosophy retains its relevance. The author addresses the role of moral reasoning in the development of the moral imagination. The author also concludes that humans have the means necessary to make moral progress and are capable of moral reasoning, and need only to develop a (...) strong moral imagination. (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)

Business research and teaching institutions play an important role in shaping the way businesses perceive their relations to the broader society and its moral expectations. Hence, as ethical scandals recently arose in the business world, questions related to the civic responsibilities of business scholars and to the role business schools play in society have gained wider interest. In this article, I argue that these ethical shortcomings are at least partly resulting from the mainstream business model with its taken-for granted basic (...) assumptions such as specialization or the value-neutrality of business research. Redefining the roles and civic responsibilities of business scholars for business practice implies therefore a thorough analysis of these assumptions if not their redefinition. The takenforgrantedness of the mainstream business model is questioned by the transformation of the societal context in which business activities are embedded. Its value-neutrality in turn is challenged by self-fulfilling prophecy effects, which highlight the normative influence of business schools. In order to critically discuss some basic assumptions of mainstream business theory, I propose to draw parallels with the corporate citizenship concept and the stakeholder theory. Their integrated approach of the relation between business practice and the broader society provides interesting insights for the social reembedding of business research and teaching. (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)

This article presents a qualitative research about the way in which business leaders of a retail company gradually clarify the ethical responsibilities of their company – in an ongoing discussion of particular cases. It is based on 12 years of experience as an external member of the ethics committee. The aim of the article is not so much as to evaluate the different single decisions that were made and implemented to make the company meet high ethical standards, but rather to (...) focus on three issues and on how they relate to each other: (1) the shift from a communitarian Christian set of values to a broader secular framework of basic principles; (2) the way in which business people in a retailing company cope with issues that seem ethically troublesome, when reflected upon from a ethical point of view; and (3) how the process of ethical dialogue has led to a typology of the different levels of responsibility that retailers are willing to attribute to themselves according to the kind of problem at stake. The three issues together illustrate how a company that took the business ethics question head-on systematically moved into a particular ongoing collective learning process. (shrink)

Despite many twenty-first century efforts to minimize corporate corruption, initiatives taken by local governments, global organizations, academic institutions, or the corporate world itself, it is clear that corporate corruption is perpetuating itself. In this paper, I apply the Aristotelian concept of “akrasia” (moral weakness) in order to provide an interpretation of corporate corruption as an act of moral failure and misapprehension of the right thing to do, if not an act of wickedness, which originates with lack of integrity. By utilizing (...) Aristotle’s philosophical framework, I attempt a redefinition of integrity not only with reference to the Aristotelian moral and intellectual virtues but also with a combination of theoretical and practical wisdom, that is, a connection between theory and action, definitive of moral consistency. Through this interpretation, I also wish to further emphasize the need for a philosophical background of contemporary managerial practices for a more effective countering of corporate corruption. (shrink)

Abstract:Our research investigated pricing policies of fast-food restaurants in predominantly black neighborhoods. We argue that the lack of monitoring of franchisees’ pricing policies leads to higher prices. Results indicate that franchisees are significantly more likely than company-owned outlets to charge higher prices based on the proportion of blacks in a neighborhood. These price differences do not appear to be explained away by cost or competition factors. Our findings do not establish an intent to discriminate; nevertheless, we discuss the fairness of (...) the pricing structure found. (shrink)

Towards the general goal of generating a normative-empirical dialogue about ethics and justice, the present study explored three issues: (1) the extent to which the normative criteria of ethics and justice prescribed by moral philosophers are indeed reflected in managerial professionals' subjective beliefs of what ethical and just work behaviour ought to be, (2) the relationship between people's ought beliefs and their perceptions of actual ethical and just work behaviour, and (3) the relationship between the notions of ethics and justice. (...) To do so, a review of the normative and positive theories of ethics was carried out which revealed the key normative criteria of ethics (i.e., utility, rights, justice, principle and care) and justice (i.e., due procedure and due outcome). Using both the interview and the repertory grid procedures, key determinants of ethical and just work behaviour as perceived by the managerial professionals were generated. These determinants were used to construct the questionnaires for the assessment of people's subjective ought beliefs, and their is judgements, of ethical and just work behaviour. There were three respondent samples: managerial professionals, general public and university students. Results showed that (1) people's subjective ought beliefs closely reflected the normative standards of ethics and justice, (2) there were significant discrepancies between people's subjective ought beliefs and their perceptions of actual ethical and just work behaviour, (3) individual differences in ought beliefs had some influence on is judgements, (4) both the ought beliefs and is judgements pertaining to the notion of justice could be accounted for by measures of the other four criteria of ethics and in particular, the notion of rights. The implications of the findings for normative theories of ethics and for ethics education are discussed. (shrink)

Business research and teaching institutions play an important role in shaping the way businesses perceive their relations to the broader society and its moral expectations. Hence, as ethical scandals recently arose in the business world, questions related to the civic responsibilities of business scholars and to the role business schools play in society have gained wider interest. In this article, I argue that these ethical shortcomings are at least partly resulting from the mainstream business model with its taken-for granted basic (...) assumptions such as specialization or the value-neutrality of business research. Redefining the roles and civic responsibilities of business scholars for business practice implies therefore a thorough analysis of these assumptions if not their redefinition. The taken-for-grantedness of the mainstream business model is questioned by the transformation of the societal context in which business activities are embedded. Its value-neutrality in turn is challenged by self-fulfilling prophecy effects, which highlight the normative influence of business schools. In order to critically discuss some basic assumptions of mainstream business theory, I propose to draw parallels with the corporate citizenship concept and the stakeholder theory. Their integrated approach of the relation between business practice and the broader society provides interesting insights for the social reembedding of business research and teaching. (shrink)

This article answers several calls—coming as well from corporate governance practitioners as from corporate governance researchers—concerning the possibility of complying simultaneously with requirements of innovation and ethics. Revealing the long-term orientation as the variable which permits us to link the principal goal of organization, being “survival,” with innovation and ethic, the article devises a framework for incorporating ethics into a company’s processes and strategies for innovation. With the principal goal of organizations being “survival” in the long-term, it is assumed that (...) innovation is necessary in order to realize a going concern. Firms that do not innovate and adapt to rapidly changing business environments are less likely to be sustainable. Thus, it is in a business’ best interests to adopt an innovation process for long-term success. We posit that there are two simultaneous sources of innovation and change that are unavoidable and embedded in the corporate landscape. First, we argue for genetically embedded, Darwinian explanations for adaptations that enable an entity’s survival. This view is combined with more conventional, social science explanations for change. Our new, comprehensive model of the governance of innovation processes hinges on the one hand on an organization’s long-term orientation, which we argue, is not possible without a consideration of an ethical dimension. On the other hand, the model employs, for the first time, the concept of duality, in order to make the positive coexistence of innovation and ethic analytically visible. Guided by this concept the roots of the ethic within innovation are traced from both natural science forces for change, and cultural pressures operating on members of an organization. We present our Integrated Causal Model of Innovation and propose theoretical relationships that will generate numerous avenues for future research in the field, and help managers to reorient their governance strategies. (shrink)

We theorize that, in the current development of business ethics, there is a fruitful evolution that dissolves the dichotomy between the normative and behavioral research approaches developed, respectively, by philosophers and social scientists; this approach avoids many of the limitations originated by such distinction by reconnecting their two separate narratives. We call this emerging research model Humanistic Business Ethics (HBE) as it emphasizes the centrality of the human dimension of business and the importance of adopting a richer concept of humanity (...) in business ethics research. We argue that this specific research model in business ethics emerges when scholars combine a pragmatist philosophical approach with some key ideas coming from stakeholder theory, which we summarize and connect. By leveraging collaboration across ethics, economics, psychology, and entrepreneurship, HBE can help business and society scholars undertake fruitful inquiries into the way business works (and should work) at its best. (shrink)

Most management researchers pause at the threshold of objective right and wrong. Their hesitation is understandable. Values imply a “subjective,” personal dimension, one that can invite religious and moral interference in research. The dominant epistemological camps of positivism and subjectivism in management stumble over the notion of moral objectivity. Empirical research can study values in human behavior, but hard-headed scientists should not assume that one value can be objectively better than another. In this article, we invite management researchers to rethink (...) this presumption. We show how accepting at least a limited form of moral objectivity, namely, an epistemic orientation that seeks objective moral reasons, can benefit management research by 1. guiding research practice; 2. using patterns of moral objectivity as clues for formulating empirical hypotheses for psychological explanations; and 3. adding prescriptive power to empirical theories. (shrink)

The evaluation of new theories and pedagogical approaches to business ethics is an essential task for ethicists. This is true not only for empirical and applied evaluation but also for metatheoretical evaluation. However, while there is increasing interest in the practical utility and empirical testing of ethical theories, there has been little systematic evaluation of how new theories relate to existing ones or what novel conceptual characteristics they might contribute. This paper aims to address this lack by discussing the role (...) of metatheorising in assessing new approaches to ethics. The approach is illustrated through evaluating a new pedagogy and curriculum for ethics education called Giving Voice to Values (GVV). Our method involves identifying a number of metatheoretical lenses from existing reviews of ethical theories and applying these to examine GVV’s conceptual elements. Although GVV has been explicitly presented as a pedagogy and teaching curriculum, we argue that it has the potential to contribute significantly to the development of ethical theory. We discuss the general implications of this metatheoretical method of evaluation for new approaches to business ethics and for GVV and its future development. (shrink)

In this paper, I aim to critically examine a set of assumptions that pervades human resource management and HR practices. I shall argue that they experience a remarkable ethics deficit, explain why this is so, and explore how the UN Global Compact labor principles may help taking ethics seriously in HRM. This paper contributes to the understanding and critical examination of the undisclosed beliefs underlying theory and practice in human resource management and to the examination of how the UN Global (...) Compact’s ideal of “decent work” may offer some promising avenues for the development of ethics in HRM. (shrink)

ABSTRACT:In this article we investigate a philosophical problem for normative business ethics theory suggested by a phenomenon that contemporary psychologists call “bounded ethicality,” which can be identified with the putative fact that well-intentioned people, constrained by psychological limitations, make ethical choices inconsistent with their own ethical beliefs and commitments. When one combines the idea that bounded ethicality is pervasive with the idea that a person morally ought to do something only if she can, it raises a doubt about the practical (...) relevance of the moral principles that business ethics theory prescribes. We call this doubt the Radical Behavioral Challenge. It consists in the idea that people cannot generally conform to the normative ethical principles that business ethics theorists prescribe, and that these principles are therefore practically irrelevant. We answer the Radical Behavioral Challenge and explore normative implications of our answer. (shrink)

Abstract:The present paper focuses on the linkage between two academic paradigms in the enquiry into business ethics: normative philosophy and empirical social sciences. The paper first reviews existing research pertaining to a normative-empirical dialogue. Further empirical data on the relationship between various standards of morality are discussed in relation to the normative frameworks of ethics. Lastly, future directions for such a dialogue in business ethics are suggested.

Integrative social contracts theory is a novel approach to normative questions and has been widely evaluated, discussed, and applied by academics and practitioners alike. While the "I" in ISCT leads the title, it has not received the analytical attention it deserves, especially since the "integrative" component in ISCT is multifaceted and at the conceptual core of the theory. In this paper we therefore take a closer look at two facets of integration. First, we examine the normative integration that takes place (...) in ISCT. For our analysis we draw on theories of legitimacy and obligation. Second, given that empirical inquiry is an important part of the normative integration, we take a closer look at how research that has applied or used ISCT has embraced the empirical components of the theory. This analysis of the normative–empirical integration focuses on problems and realities of empirical inquiry in ISCT. (shrink)

An organizing framework is set out for the diverse literature on business ethics in relation to strategic management. It consists of sets of bi-polar components, spanning themes and topical themes, with a derived typology of contributions. Then, in the spirit of classical pragmatism, the organizing framework is re-cast as an integrative conceptual model of the strategy–ethics relationship. The approach recognizes that both pragmatism and dialectics can underpin progress towards integration, encompassing both normative and empirical aspects.

In this paper, I will argue that it is a moral obligation for companies, firstly, to accept their moral responsibility with respect to non-discrimination, and secondly, to address the issue with a full-fledged programme, including but not limited to the countering of microsocial discrimination processes through specific policies. On the basis of a broad sketch of how some discrimination mechanisms are actually influencing decisions, that is, causing intended as well as unintended bias in Human Resources Management (HRM), I will argue (...) that the well known tools of legislation and ethical codes are necessary although insufficient to cope with the problem. However, based on empirical evidence, we know which set of measures is likely to diminish discrimination. Taking non-discrimination seriously implies complex and longitudinal policies which include assigning responsibility for a non-discrimination policy within the firm, making managers conscious of implicit stereotypes and helping them to cope with prejudices that no one can totally overcome. Insofar as corporate responsibility with respect to non-discrimination is accepted and strategies that are not prohibitively expensive are known, companies are bound to implement them. Not implementing the best set of measures may be considered at least as a moral shortcoming or, depending on the size of the company, mere lip service to the non-discrimination principle. Although the paper refers to empirical material of diverse backgrounds, its intent is clearly normative. It wishes to spell out what companies ought to do if they are committed to responsible behaviour. The discussion of effective remedies against discrimination is based on a case study of a French company. The retailer Auchan was recently surprised to learn that it was discriminating against ethnic minorities despite strong ethical standards, an ethics committee and ethical leadership. The company dropped its naïve beliefs and set up an ambitious policy cope with the issue. The case illustrates what recent empirical research has revealed about the effectiveness of diversity policies: establishing responsibility for diversity results, firm ethical commitment and support from top management make diversity programs effective. (shrink)

While many scholars agree that the ‘‘separation thesis’’ (Freeman in Bus Ethics Quart 4(4):409–421, 1994)—that business issues and ethical issues can be neatly compartmentalized—is harmful to business ethics scholarship and practice, they also conclude that eliminating it is either inadvisable because of the usefulness of the positive/ normative distinction, or actually impossible. Based on an exploration of the fact/value dichotomy and the pragmatist and virtue theoretic responses to it, we develop an approach to eliminating the separation thesis that integrates ‘‘business’’ (...) with ‘‘ethics’’ while still permitting a positive/ normative distinction, which we call ‘‘ethics from observation.’’. (shrink)

Clinical ethical consultants are subject to an unavoidable conflict of interest. Their work requires that they be independent, but incentives attached to their role chip relentlessly at independence. This that they be independent, is a problem without any solution, but it can at least be ameliorated through careful management.

The purpose of this article is to investigate to what extent is business and society literature idealistic as it advocates the adoption of high moral norms for business performance. The author discusses the central theses of mainstream themes in this literature—corporate social responsibility, corporate social responsiveness, social issues, corporate social performance, stakeholder management, corporate citizenship, business ethics, sustainable development, and corporate sustainability—and evaluates their descriptive accuracy, normative validity, and instrumental power. Poor description of reality, underdeveloped business logic, and questionable prescriptions (...) are indicative of the idealism of these themes. This study reveals many realistic and achievable propositions, which dilute the concern that business and society literature is idealistic. However, three elements in the field—its (rhetorical) criticism of corporate conduct, the predominantly normative notions of its concepts, and its underdeveloped instrumental ideas—underline its idealistic orientation. (shrink)

ABSTRACT:The purpose of this paper is to critically evaluate the instrumental perspective on Corporate Social Responsibility (CSR) in practice and theory by relying on sociological analyses of a well known organization: the Italian Mafia. Legal businesses might share features of the Mafia, such as the propensity to exploit a governance vacuum in society, a strong organizational identity that demarcates the inside from the outside, and an extreme profit motive. Instrumental CSR practices have the power to accelerate a firm's transition to (...) Mafia status through its own pathologies. The boundaries of such instrumentalism are explored and lessons for future CSR research derived, with specific emphasis on a firm's social and normative embeddedness, taking into account the inherent challenge of regulating corporate behaviour in the global economy. (shrink)

ISCT arguably forms the most promising impetus to a contractarian theory of business ethics presently available. In this article, I want to pay tribute to the lasting significance of Dunfee's contribution to the field of business ethics by analyzing the vital role of the idea of extant social contracts (ESCs) in the conceptual set up of the ISCT project. The construct of ESCs can be shown to shape the problem statement from which the ISCT project proceeds – indeed it helps (...) to conceptualize the basic question which defines and delineates the domain of business ethics. (shrink)

Microinsurance is the provision of insurance services to the poor, usually in developing countries. One of the key criteria of poverty is vulnerability even to minor events. In such cases, even micro coverage can make a major difference, yet still be funded by an affordable contribution by the insured. Like any kind of insurance, microinsurance can cover different risks to life, health, farming, property among other things. Our paper sketches how one could address and develop microinsurance business ethics. First, we (...) introduce microinsurance to the business ethics community and business ethics to the microinsurance community. Our draft of microinsurance ethics is then developed from two angles: as a holistic understanding of ideals and possible ethical conflicts in key stakeholder relationships and by distinguishing eight challenges when targeting the poor and when marketing microinsurance. As an open ending, the article suggests a three-stage action research design focusing on how microinsurance could (and should) internalize ethics, respecting rather than neglecting national- and local-cultural conditions. (shrink)

This paper develops a critique of the concept of ‘ethical identity’ as this has been used recently to distinguish between ‘cynical’ and ‘authentic’ forms of corporate responsibility. Taking as our starting point Levinas’ demanding view of responsibility as ‘following the assignation of responsibility for my neighbour’, we use a case study of a packaging company—PackCo—to argue that a concern with being seen and/or seeing oneself as responsible should not be confused with actual responsibility. Our analysis of the case points first (...) to the allure of programmes of strategic corporate responsibility and the ways in which, through identification, they can provide a tacit form of moral sanction to managers in their aggressive pursuit of profit. It then contrasts the responses of different managers to negative staff feedback to illustrate the difference between managers’ attempts to defend their identity of being ‘responsible’ managers, and responsible conduct itself. The paper concludes that a potent danger of programmes of corporate responsibility is that they allow managers to deceive not just others, but also themselves in relation to the exercise of responsibility. (shrink)

The aim of this article is to discuss quantitative content analysis as established in communication sciences as a method for research in business ethics. We argue that communication sciences and business ethics are neighboring disciplines, which allow the transfer of quantitative content analysis from communication sciences to business ethics. Technically, quantitative content analysis can be applied through human as well as software coding. Examples for both applications are provided and discussed. We make reference to the software solutions ‘Leximancer’, ‘Crawdad’, and (...) ‘Wordle’, and examine their suitability and limitations with regard to ethical questions for researching business ethics. We recommend a mixed‐method approach, combining human and software coding. Furthermore, we propose a three‐step process that discusses quantitative content analysis as a method for business ethics, including an ethical research objective, and most importantly, concluding with ethical reasoning and interpretation of the quantitative results. (shrink)

Although social contracts theory has been applied to organizations (Donaldson & Dunfee, 1994), rarely has the theory been tested empirically. This article uses the traditions of communitarianism and individualism to instantiate an ideal-type economic social contract. We asked 269 subjects to complete the Ideological Orientation Scale and to make judgments on eight downsizing scenarios. Using social judgment theory, we assess the direct and indirect influences of ideology on judgments of fairness. Our findings suggest that ideology indeed shapes individual’s conceptions of (...) organizational fairness. (shrink)

This article is about the relationship between business and ethics in academic research. The purpose of this investigation is to examine the status of the separation and the integration theses. In the course of this article, I defend the claim that neither separation nor integration is entirely accurate; indeed they are both potentially confusing to our audience. A strategy of reconciliation of normative and descriptive approaches is proposed. The reconciliation project does not entail synthesizing or dividing prescriptive and empirical approaches, (...) but rather respecting the identity of both inquiries, while recognizing the limitations they place on each other. The research agenda of the reconciliation project is discussed. (shrink)

Much of the work in professional ethics sees ethical problems as resulting from ethical ignorance, ethical failure or evil intent. While this approach gets at real and valid concerns, it does not capture the whole story because it does not take into account the underlying professional or institutional culture in which moral decision making is imbedded. My argument in this paper is that this culture plays a powerful and sometimes determinant role in establishing the nature of the ethical debate; i.e., (...) it helps to define what are viable action options, what is the organization’s genuine mission, and what behaviors will be rewarded or criticized. Given these conclusions, I also argue that consulting ethicists need more than an understanding of ethics theory, concepts and principles; they also need a sufficiently rich understanding of organizational culture and a willingness and an ability to critique that culture. (shrink)

Corporate social performance (CSP) has been a prominent concept in the management literature dealing with the social role and impacts of the corporation; it has been promulgated as a unifying paradigm for the field. However, the concept of CSP is still lacking strong theoretical foundations and empirical validity, suggesting that the paradigmatic status of CSP might be lost. In this paper, the authors draw on Hirsch and Levin’s (1999) life cycle approach to explore the development of CSP as a concept, (...) explain why it has so recurrently failed to deliver on these dimensions, and offer possible routes for future research that may potentially ameliorate this problem. (shrink)

Abstract:By combining normative philosophy and empirical social science, we craft a research framework for assessing differential expectations embodied in normative conceptions of the economic social contract in the United States. We argue that there are distinct views of such a contract grounded in individualist and communitarian philosophical ideologies. We apply this framework to organizational downsizing, postulating that certain human resource practices, in combination with the respective ideological orientations, will affect perceptions of the justice of downsizing policies.