This paper begins by summarizing and distilling Macintyre's sweeping critique of modern business. It identifies the crux of Macintyre's critique as centering on the fundamental Aristotelian concepts of internal goods and practices. Maclntyre essentially follows Aristotle in arguing that by privileging external goods over internal goods, business activity -and certainly modern capitalistic business activity -corrupts practices. Thus, from the perspective of virtue ethics, business is morally indefensible. The paper continues with an evaluation of Macintyre's arguments. The conclusion is drawn that (...) Macintyre's critique, although partially valid, does not vitiate modern business as he claims. In short, modern business need not of necessity be antithetical to individuals' pursuit of internal goods within practices. (shrink)

Virtuousness refers to the pursuit of the highest aspirations in the human condition. It is characterized by human impact, moral goodness, and unconditional societal betterment. Several writers have recently argued that corporations, in addition to being concerned with ethics, should also emphasize an ethos of virtuousness in corporate action. Virtuousness emphasizes actions that go beyond the “do no harm” assumption embedded in most ethical codes of conduct. Instead, it emphasizes the highest and best of the human condition. This research empirically (...) examines the buffering and amplifying effects of virtuousness in organizations. The study hypothesizes that virtuousness has a positive effect on organizations because amplifying dynamics make subsequent virtuous action more likely, and buffering dynamics reduce the harmful effects of downsizing. The study reveals that two types of virtuousness – tonic and phasic – are associated with these effects. (shrink)

Natural Law and Natural Rights is widely recognised as a seminal contribution to the philosophy of law, and an essential reference point for all students of the subject. This new edition includes a substantial postscript by the author responding to thirty years of comment, criticism, and further work in the field.

An extension of Alasdair MacIntyre's concept of ‘virtues of acknowledged dependence', to include relationships with the non-human world, offers an organising principle for environmental virtue ethics. It situates ecological virtue among more traditional virtues of inter-human relationships, and may thereby contribute to an ethical reconciliation of policies aimed at encouraging ecological virtue with those aimed at protecting the freedoms required for personal autonomy. Within this eudaimonist framework, ecological virtue may be understood and promoted as directly contributing to a good life.

The Protestant ethic — a moral code stressing hard work, rigorous self-discipline, and the organization of one's life in the service of God — was made famous by sociologist and political economist Max Weber. In this brilliant study (his best-known and most controversial), he opposes the Marxist concept of dialectical materialism and its view that change takes place through "the struggle of opposites." Instead, he relates the rise of a capitalist economy to the Puritan determination to work out anxiety over (...) salvation or damnation by performing good deeds — an effort that ultimately discouraged belief in predestination and encouraged capitalism. Weber's classic study has long been required reading in college and advanced high school social studies classrooms. (shrink)

Virtue ethics, the authors believe, is distinct and superior to other options because it considers, in the first place, which preferences are worth pursuing, rather than just blindly maximizing preferences, and it takes into account intuitions, emotions and experience, instead of acting solely on abstract universal principles. Moreover, virtue ethics is seen as firmly rooted in human biology and psychology, particularly in our freedom, rationality, and sociability. Work, business, and management are presented as vital areas for the development of virtues, (...) not the least with a view to human flourishing. We conclude by introducing the articles included in this special issue. (shrink)

"This edition of Eco-Republic is published by arrangement with Peter Lang Ltd; first published in 2011 by Peter Lang Ltd"--T.p. verso.

This paper describes differences in two perspectives on the idea of virtue as a theoretical foundation for positive organizational ethics (POE). The virtue ethics perspective is grounded in the philosophical tradition, has classical roots, and focuses attention on virtue as a property of character. The positive social science perspective is a recent movement (e.g., positive psychology and positive organizational scholarship) that has implications for POE. The positive social science movement operationalizes virtue through an empirical lens that emphasizes virtuous behaviors. From (...) a virtue ethics perspective, a behaviorally based account of virtue is a weak theory of virtue. Observations are suggested for integrating the two perspectives. First, virtue should always be understood as an excellence and is often an optimal point between extreme dysfunctions on continuum of potential states. Second, an empirical exploration of virtue needs to account for character and context. Finally, the properties of organization-level virtue need to be further specified and explored. Implications and directions for future research are discussed. (shrink)

Against the idea that market economy is something greedy and immoral, we will set out the idea that market economy based on firms has a very positive moral content: the possibility of excellence of human action. Firms based on people acting together, sharing the culture of the organization, toward virtue-based ethics, create and distribute most of the economy’s wealth, innovate, trade and raise living standards. We will present a criterion which states that social coordination improves if the process of creation (...) of individual possibilities of action, which is carried out in the social institutions—in our case, the firm—is extended. There is a retention of possibilities that is formed in the institutions and transmitted culturally. In that moment entrepreneurship emerges, the creative tension that expands, maintains, or diminishes the possibilities of action. Hence, the firm is the institution that carries out a very important practice: fostering new possibilities of individual action. In this paper, we will adopt the point of the view of the acting person. The reality we observe is personal action within its cultural and institutional dimensions. A theory of personal action in societal institutions bridges the way from virtue-based ethics toward ethics of institutions. (shrink)

The current economic and preceding financial crises seem to provide evidence in favour of the self-destruction thesis of capitalism. Responses to the crisis have been polarised. Some suggest that regulatory changes are all that is needed. Others suggest the need to change the economic system by developing a new global economic ethic. The first is too limited, the second too utopian. This article suggests that a MacIntyrean virtue ethics approach provides both a more convincing diagnosis of the problem and leads (...) to a more workable prescription. First, we need to understand the internal contradictions of the tradition that has developed of how to ‘do’ business. Then we need the virtues to be exercised inside practices and institutions. But virtue itself needs to be institutionalised; we need an appropriate governance of virtue in organizations. Even though governance is usually taken to ‘crowd out’ virtue, this article proposes an approach to governance that ‘crowds in’ virtue. (shrink)

ABSTRACT:This article proposes a theory of the firm based on the common good. It clarifies the meaning of the term “common good” tracing its historical development. Next, an analogous sense applicable to the firm is derived from its original context in political theory. Put simply, the common good of the firm is the production of goods and services needed for flourishing, in which different members participate through work. This is linked to the political common good through subsidiarity. Lastly, implications and (...) challenges arising from the positing of work as the common good of the firm are explored. (shrink)

The expression “common good” usually conjures up benevolent associations: it is something to be desired, a worthy goal, and it would be a brave person who declared he or she was against the common good. Yet modern times have taught us to be critical and even suspicious of such grand rhetoric, leading us to query what lies behind this ambitious notion, who formulates what it stands for, and how such formulations have been reached.

The three leading normative theories of business ethics are the stockholder theory, the stakeholder theory, and the social contracttheory. Currently, the stockholder theory is somewhat out of favor with many members of the business ethics community. Thestakeholder theory, in contrast, is widely accepted, and the social contract theory appears to be gaining increasing adherents. In thisarticle, I undertake a critical review of the supporting arguments for each of the theories, and argue that the stockholder theory is neitheras outdated nor as (...) flawed as it is sometimes made to seem and that there are significant problems with the grounding of both thestakeholder and social contract theory. I conclude by suggesting that a truly adequate normative theory of business ethics must ultimately be grounded in individual consent. (shrink)

Abstract:This paper is a further development of two previous pieces of work (Moore 2002, 2005) in which modern virtue ethics, and in particular MacIntyre’s (1985) related notions of “practice” and “institution,” have been explored in the context of business. It first introduces and defines the concept of corporate character and seeks to establish why it is important. It then reviews MacIntyre’s virtues-practice-institution schema and the implications of this at the level of the institution in question—the corporation—and argues that the concept (...) of corporate character follows from, but is a novel development of, MacIntyre’s schema. The paper contrasts corporate character and virtues with the more familiar concepts of corporate culture and values. The constitutive and substantive elements of corporate character, including the essential corporate virtues, are then drawn out and illustrated with reference to the cases explored in Koehn (1998). Finally, the paper acknowledges and counters a specific criticism of this approach. (shrink)

The use of agency theory remains highly controversial among business ethicists. While some regard it as an essential tool for analyzing and understanding the recent spate of corporate ethics scandals, others argue that these scandals might not even have occurred had it not been for the widespread teaching of agency theory in business schools. This paper presents a qualified defense of agency theory against these charges, first by identifying the theoretical commitments that are essential to the theory (in order to (...) distinguish between agency theory itself and certain incorrect interpretations that have been widely promulgated), and second, by specifying more clearly the different ways that agency theory can be used to analyze relations within the firm. The recommendation that follows from this analysis is that agency theory be used as a critical-diagnostic tool, to identify the points at which both firms and markets will be vulnerable to breakdown in the absence of moral constraint. (shrink)

With the discovery of voluminous discordant empirical evidence, maximizing expected utility is rapidly disappearing as the core of the theory of human rationality, and a theory of bounded rationality, embracing both the processes and products of choice, is replacing it. There remains a large task of organizing our picture of economic and social processes and adding the new facts needed to shape the theory in an empirically sound way. It is also urgent that new tools now available for conducting empirical (...) inquiry and constructing models be incorporated in social science graduate education. (shrink)

This book is an engaging contribution to the literature on management, business and society, and the theory and practice of ethics.

In our contemporary post-modern context, it has become increasingly awkward to talk about a good that is shared by all. This is particularly true in the context of mammoth multi-national corporations operating in global markets. Nevertheless, it is precisely some of these same enormous, aggrandizing forces that have given rise to recent corporate scandals. These, in turn, raise questions about ethical systems that are focused too myopically on self-interest, or the interest of specific groups, locations or cultures. The obvious traditional (...) alternative to moral bellybutton gazing is the common good, which challenges the modern business enterprise to realize non-instrumental values that can only be attained in our life together. The common good dictates that leadership should be judged, first of all, according to moral criteria rather than professional competence. It helps correct the distorted prioritization of the maximization of profit in every business decision, recognizing that businesses have a multitude of rights and responsibilities, and the common good reminds us that the first of these is not always profit-making. (shrink)

Abstract: In this article, I offer a proposal to clarify what I believe is the proper relation between value maximization and stakeholder theory, which I call enlightened value maximization. Enlightened value maximization utilizes much of the structure of stakeholder theory but accepts maximization of the long-run value of the firm as the criterion for making the requisite tradeoffs among its stakeholders, and specifies long-term value maximization or value seeking as the firm’s objective. This proposal therefore solves the problems that arise (...) from the multiple objectives that accompany traditional stakeholder theory. I also discuss the Balanced Scorecard, which is the managerial equivalent of stakeholder theory, explaining how this theory is flawed because it presents managers with a scorecard that gives no score—that is, no single-valued measure of how they have performed. Thus managers evaluated with such a system (which can easily have two dozen measures and provides no information on the tradeoffs between them) have no way to make principled or purposeful decisions. The solution is to define a true (single dimensional) score for measuring performance for the organization or division (and it must be consistent with the organization’s strategy), and as long as their score is defined properly, (and for lower levels in the organization it will generally not be value) this will enhance their contribution to the firm. (shrink)

This paper develops a meta-theory of business based on virtue theory which links the concept of virtues, the common good, and the dynamic economy into a unifying and comprehensive theory of business. Traditional theories and models of business have outlived their usefulness as they are unable to adequately explain social reality. Virtue theory shows firms that pursue ethically-driven strategies can realise a greater profit potential than those firms who currently use profit-driven strategies. The theory expounds that the business of business (...) is ethical business and that the crises that business and society face today are crises of leadership and ethics. The issues of leadership and corporate social responsibility are discussed in the context of the proposed theory. (shrink)

Social and moral issues in business have drawn attention to a gap between theory and practice and fueled the search for a reconciling perspective. Finding and establishing an alternative remains a critical initiative, but a daunting one. In what follows, the assumptions of two prominent contenders are considered before introducing a third in the form of Aristotle’s ancient theory of virtue. Comparative case studies are used to briefly illustrate the practical implications of each paradigm. In the quest for a better (...) sense-making and sense-giving lens, this paper refines and encourages the search by highlighting some of the key features required of a worthy paradigmatic challenge. The author proceeds to identify a particular type of institutional community, and a promising champion, for the practical unification of strategic and normative excellence. (shrink)

In the past thirty years, the United States has undergone a profound transformation in its social structure: Crime has increased, trust has declined, families have broken down, and individualism has triumphed over community. Has the Great Disruption of recent decades rent the fabric of American society irreparably? In this brilliant and sweeping work of social, economic, and moral analysis, Francis Fukuyama shows that even as the old order has broken apart, a new social order is already taking its place. The (...) Great Disruption forges a new model for understanding the Great Reconstruction that is under way. (shrink)

In a previous essay (Sison and Fontrodona 2012), we defined the common good of the firm as collaborative work, insofar as it provides, first, an opportunity to develop knowledge, skills, virtues, and meaning (work as praxis), and second, inasmuch as it produces goods and services to satisfy society’s needs and wants (work as poiesis). We would now like to focus on the participatory aspect of this common good. To do so, we will have to identify the different members of the (...) firm as a community, drawing from corporate citizenship literature and stakeholder theory. Afterward, we will explore both the manner and the intensity of these different members’ participation and its impact on the firm’s common good. (shrink)

Every academic endeavour rests ultimately on a particular assumption of human nature. Two views of human nature are compared and contrasted: (1) a utilitarian naturalistic humanism which holds essentially the view that human nature is materialistic, and (2) an Aristotelian-Thomistic natural law/virtue ethics humanism which holds the view that human nature is both materialistic and spiritualistic. This paper argues that the latter view better captures and explains the metaphysical realities of human nature. In addition, the role of virtues and its (...) applications in management practice are presented. Organisational policy mechanisms and managerial implications will depend on which view of human nature one adopts. The failure to integrate the virtues and natural law ethical principles into management practice threatens the stability and survival of the firm since they are required to correct the dysfunctional aspects and ethical deficits of the current business philosophy. (shrink)

How ethical have recent banking practices been? We answer this question via an economic analysis. We assess the two dominant practices of the modern banking system – fractional reserves and maturity transformation – by gauging the respective rights of the relevant parties. By distinguishing the legal and economic differences between deposit and loan contracts, we determine that the practice of maturity transformation (in its various guises) is not only ethical but also serves a positive social function. The foundation of the (...) modern banking system – the holding of fractional reserves against deposits – is, however, problematic from economic, legal and ethical perspectives. Starting from a microanalysis of money's function, a reassessment of the current laws concerning the practice is encouraged, with the aim not only to rectify economic irregularities but also to realign depositors' rights with the obligations of the banking sector. (shrink)

In cross-cultural studies of well-being psychologists have shown ways in which well-being or its constituents are tailored by culture (Arrindell et. al. 1997, Diener and Diener 1995, Kitayama et. al. 2000, Oishi & Diener 2001, Oishi et. al. 1999). Some psychologists have taken the fact of cultural variance to imply that there is no universal notion of well-being (Ryan and Deci, 2001, Christopher 1999). Most philosophers, on the other hand, have assumed that there is a notion of well-being that has (...) universal application. Given the facts about cultural variance, is this a mistake? What are the implications for philosophers of the existence of cultural differences in well-being? In answer to these questions I distinguish two different philosophical projects in the area of well-being. One of these projects seeks to provide a formal analysis of well-being. I argue that this project is not undermined by the kinds of cultural differences that have been discovered and that, therefore, there might be a universal notion of well-being. The other project seeks to provide a substantive account of well-being. Cultural differences are relevant here, but not always as directly relevant as one might have assumed. The main goal of this paper, then, is to argue that the implications of cultural differences for the philosophical project are limited and to clear the ground for a universal notion of well-being. In service of this main goal, the paper takes on three subsidiary tasks. First, I clarify the basic question or questions that philosophers are trying to answer when they talk about well-being. Second, I provide a.. (shrink)

Some virtue ethicists are reluctant to consider principles and standards in business ethics. However, this is problematic. This paper argues that realistic Personalism can be integrated into virtue-based business ethics, giving it a more complete base. More specifically, two principles are proposed: the Personalist Principle (PP) and the Common Good Principle (CGP). The PP includes the Golden Rule and makes explicit the duty of respect, benevolence, and care for people, emphasizing human dignity and the innate rights of every human being. (...) The CGP entails cooperation to promote conditions which enhance the opportunity for the human flourishing of all people within a community. Both principles have practical implications for business ethics. (shrink)

The article aims to articulate and defend St. Thomas Aquinas’s understanding of the transcendence of the political common good and argues against the new natural law theory’s view of the common good as limited, instrumental, and ordered toward the private good of families and individuals. After a summary of John Finnis’s explanation of the common good in Aquinas: Moral, Political, and Legal Theory, the article presents an analysis of the political common good in Aquinas’s Summa theologiae and De regno. This (...) analysis shows, contrary to Finnis, that for Aquinas the political common good transcends the private good of individuals and families, that it consists in the virtuous life of the political multitude, and that the family is insufficient to lead men to virtue apart from the civitas. National Catholic Bioethics Quarterly 13.1 (Spring 2013): 133–155. (shrink)

This paper considers discussions of the work of Alasdair MacIntyre in management literature. It argues that management scholars who have attempted to appropriate his After Virtue as a supportive text for conventional business ethics do so only by misreading or by ignoring his other work. It shows that MacIntyre does not argue for a reformed capitalism in which individual virtue overcomes institutional vice. Rather he argues that capitalist businesses are inherently vicious and that therefore individual virtue cannot be realised within (...) them. The job of the virtuous is to resist them.2. The paper first presents an account of MacIntyre’s position on management and introduces some of the critical and supportive uses of his work in management scholarship. It focuses on two papers3 typical of the approach taken by conventional business ethicists to his work. These have attempted to deploy concepts developed by MacIntyre while denying the account of management and organisation of which they form a part. The paper provides some tentative hypotheses as to why management scholars have approached MacIntyre in this way. It argues that these attempted appropriations not only have failed but also must fail as conceptual coherence is sacrificed when the account within which those concepts make sense is denied.4. (shrink)

In a commercial society, said Adam Smith, “every man becomes in some measure a merchant.” If Smith is right, what does that mean for the character of the society? This paper addresses the character forming effects of the market—and, specifically its impact on the “virtues.” There is a long tradition of viewing commerce as subversive of the virtues. In this view, the market is held to have legitimated the pursuit of narrow self-interest at the expense of social and civic obligations (...) and moral restraints. But, as Albert Hirschman has shown, many Enlightenment moralists saw commercial society as a moralizing force. Which view is right? This paper examines how many of the character traits that we commonly call virtues are rewarded— and so presumably reinforced and diffused—by the market. In this way, the market (as it were by a hidden hand) strengthens its own foundations and reproduces a moral culture that is functional to its own needs. (shrink)

This article aims at showing the need for a sound ethical and anthropological foundation of economics and business, and argues the importance of a correct understanding of human values and human nature for the sake of economics and of businesses themselves. It is suggested that the ethical-anthropological side of economics and business can be grasped by taking Aristotle’s virtue ethics and Amartya Sen’s capability approach (CA) as major reference points. We hold that an “Aristotelian economics of virtues”, connected with the (...) CA’s notion of human richness, can promote the shift to the concept of personhood, and can lead to a more “humanized” business, by fostering human flourishing, the enhancement of human capabilities, and the pursuit of a more humane development for each and every person. (shrink)

This paper explores the fundamental question of what ‘responsibility’ means to different sets of world views adopted implicitly by business students. The exploration adopts the stakeholder theory and three subsets of the Friedman mentality to explain how individuals may value sustainability initiatives. Subsequently, it explores whether it is better to flow with the dominant economic-driven world view as prescribed by the business school or to challenge it in order to cultivate business students with sustainability-driven values. The conclusion highlights implications for (...) business and management education, as well as the role of entrepreneurship to promote sustainability values. (shrink)

A summary of basics for student and seminarian.

Catholic Social Teaching aspires to an economy that serves needs, upholds justice, and inculcates subsidiarity. But it suffers from a significant omission—it fails to look “inside” the business organisations that comprise the fundamental building blocks of the economic system. It is therefore ill-equipped to suggest how businesses could be reformed to meet these aspirations. MacIntyre’s Thomistic Aristotelian account of the relationships between goods, virtues, practices and institutions provides resources that could enable CST to overcome this lacuna. This paper describes the (...) MacIntyrean account and compares it with CST’s existing categories. It then analyses the case of the Lloyds Banking Group. This allows not only diagnosis, but potentially a prescriptive account of how virtue may be “crowded-in” to business organisations. The paper concludes by suggesting that this approach might make a distinctive contribution to CST, and hence enable CST to make an even more significant contribution to business ethics. (shrink)

Theory development surrounding Corporate Social Responsibility has been ensconced in a rational economic logic, exploring both financial and ethicaljustifications . Venturing outside of this logic and viewing corporations as organizations from a positive organizational scholarship perspective provides an opportunity to broaden the exploration of CSR. Within POS, organizations are assumed to be driven by a need to contribute to human flourishing and well-being . This viewpoint does not preclude the importance of organizational performance or survival, but rather provides a reorienting (...) perspective to the study of organizations . In this paper, the concept of Virtuous CSR is proposed as part of a continuum of CSR theory ranging from strategic to virtuous. Virtuous CSR changes the lens through which organizations and CSR are studied. Specific attributes of Virtuous CSR are proposed. (shrink)

This paper argues that corporate governance reformers in Anglo-American jurisdictions should consider a different approach in their quest for better corporate governance. Traditionally, corporate governance reform has taken a structural approach, tightening the rules around the number of independent directors required on boards and committees and fine-tuning the definition of independence. However, such an approach has failed to achieve effective corporate governance. Moreover, this approach is informed by the arguably discredited assumption that individuals are rational self-interest utility maximizers. This conceptual (...) paper questions why corporate governance scholars and regulators remain uncritical of this assumption and suggests an approach to reform inspired by a different view of human nature. Indeed, incorporating an actor-based approach to reform into existing structures may better achieve effective corporate governance while addressing an unjustified adherence to this flawed assumption. (shrink)

In this essay, I explore the prospects for a virtue ethic approach to business. First, I delineate two fundamental criteria that I believe must be met for any such approach to be viable: viz., the virtues must be exercised for the sake of the good of one’s life as a unitary whole (contra role-morality approaches) and for the common good of the communities of which one is a part as well as the individual good of their members (contra egoist approaches). (...) Second, I argue that these two criteria can be met only if we are able to reconceive and transform the nature of work within contemporary business organizations. In particular, what is needed, I argue, is a retrieval of something like the older ideal of work as a “vocation”, or “calling”, whereby work can be viewed as a specific aspect of a more general calling to pursue, through the practice of the virtues, “the good life” both for ourselves and for others. Lastly, I consider some important challenges to this “vocational virtue ethic” approach to work within contemporary business organizations and offer a few suggestions for how they might be met. (shrink)

One of the crucial intellectual and social challenges facing corporation leaders is to foster a new way of thinking about business and society which recognizes the multinational corporation as a key player in society's responsibility to support and maintain fairness in the global reorganization of markets. In order to establish a sound global social economy, we are in need of the organizing and directing principles of solidarity and subsidiarity. Both of these principles speak to the need of transforming our public (...) and private institutions in such a way that all persons are placed in positions whereby they can share in the benefits of the newly-formed global economy. (shrink)

The paper starts with a case study of a medium-sized company in which a strong and successful change in the organisational form and job design took place. A bureaucratic organisation with highly-specialised jobs was converted into a new organisation in which employees became much more autonomous in managing their own work. This not only entailed new techniques and managerial systems but also a new anthropological vision. Bureaucratic rules were reduced, but not eliminated completely, and management became less authoritarian. Employees could (...) therefore apply greater entrepreneurial spirit, developing their talents in pursuit of the company’s common goals. It is argued that this new organisational form is ethically superior to the old, and reflects the basic requirements of the principle of subsidiarity. The ethical principle of subsidiarity holds that a larger and higher-ranking body should not exercise functions which could be efficiently carried out by a smaller and lesser body; rather the former should support the latter by aiding it in the coordination of its activities with those of the greater community. While the principle has usually been applied in a political context, this paper explores the principle as a moral base for organisational forms within business organisations. Finally, the principle of subsidiarity is analysed in the context of business organisations and proposed as an ethical guideline for organisational forms. This would help to mitigate the effects of those bureaucracies in which individuals, with their dignity, freedom, diversity and capacity for undertaking business activities with entrepreneurial spirit, are often not fully appreciated. (shrink)

This paper explores the fundamental question of what ‘responsibility’ means to different sets of world views adopted implicitly by business students. The exploration adopts the stakeholder theory and three subsets of the Friedman mentality to explain how individuals may value sustainability initiatives. Subsequently, it explores whether it is better to flow with the dominant economic‐driven world view as prescribed by the business school or to challenge it in order to cultivate business students with sustainability‐driven values. The conclusion highlights implications for (...) business and management education, as well as the role of entrepreneurship to promote sustainability values. (shrink)

Virtues are habits of character that advance excellence in all of ones endeavors. In the Aristotelian formulation, training in the virtuesis driven by a sense of the “good,” that is, by a widely shared agreement on the components of a good society and on the roles (and appropriate virtues or excellencies) of the “social animals” that energize that society. In the modern era, however, a strong sense of community has been much diminished. Freedom from the restraints of the Church and (...) other social institutions and an emphasis on individual autonomy has fostered a different ethical perspective, a perspective in which the market enters importantly into one’s conception of the good. Does the market generate virtues which in turn sustain it? What guides the development of virtue in market economies that are entering the “information superhighway,” and a new millennium as well? (shrink)

Today, values hold a prominent place both in business ethics and in organization theory. However, there persists considerable confusion about what these values are and what role they play in these theories and, therefore, how they can be developed both within the individual and within the organization. Therefore, this paper seeks to define a conception of values based on a theory of human action that can provide a basis for an organization theory, and to propose a series of ideas about (...) how personal and organizational values can be fostered. (shrink)

In a commercial society, said Adam Smith, “every man becomes in some measure a merchant.” If Smith is right, what does that mean for the character of the society? This paper addresses the character forming effects of the market—and, specifically its impact on the “virtues.” There is a long tradition of viewing commerce as subversive of the virtues. In this view, the market is held to have legitimated the pursuit of narrow self-interest at the expense of social and civic obligations (...) and moral restraints. But, as Albert Hirschman has shown, many Enlightenment moralists saw commercial society as a moralizing force. Which view is right? This paper examines how many of the character traits that we commonly call virtues are rewarded— and so presumably reinforced and diffused—by the market. In this way, the market (as it were by a hidden hand) strengthens its own foundations and reproduces a moral culture that is functional to its own needs. (shrink)

With the dramatic collapse of bureaucratic dictatorial socialism, Business Ethicists need an antithesis to capitalism to enrich our reformist writings. Reliance on self-regulation and requesting that business executives behave in a socially responsible manner are necessary, but not sufficient, conditions for creating a "good society." The purpose of this article is to introduce readers to the works of two new age theologians – Neale Donald Walsch and Reverend Sun Myung Moon – who offer an alternative vision and paradigm for understanding (...) business and society relationships. They provide unique insights about economics, organizational structures and policies, and individual attitudes and behaviors necessary for creating an ethical society. Pertinent economic and organizational concepts emanating from their writings include mission statements and codes of ethics; meaningful and joyful work; autonomy and self-management; workplace diversity; parentism and participatory management; stakeholder governance boards; democratic social capitalismwith upper and lower income limits; and the principle ofvisibility. Work should support family units and individualgrowth and development, not supersede or destroy them. (shrink)

How ethical have recent banking practices been? We answer this question via an economic analysis. We assess the two dominant practices of the modern banking system – fractional reserves and maturity transformation – by gauging the respective rights of the relevant parties. By distinguishing the legal and economic differences between deposit and loan contracts, we determine that the practice of maturity transformation (in its various guises) is not only ethical but also serves a positive social function. The foundation of the (...) modern banking system – the holding of fractional reserves against deposits – is, however, problematic from economic, legal and ethical perspectives. Starting from a microanalysis of money's function, a reassessment of the current laws concerning the practice is encouraged, with the aim not only to rectify economic irregularities but also to realign depositors' rights with the obligations of the banking sector. (shrink)

We present this special issue on positive organizational ethics (POE) to highlight those pursuing positive subjective experiences, positive attributes of individuals and groups, and positive practices that contribute to ethical and virtuous behavior in organizations. Although prior research has offered some insight in this area, there is still much to be learned about how to cultivate and sustain ethical strength in different types of organizations and how goodness can emerge from and in spite of human failings. After describing the positive (...) movement, we position POE as a discrete area of inquiry within the broader positive behavioral sciences, at the intersection of positive behavioral studies and business ethics. After defining our terms and purpose for creating the POE domain, we introduce the articles in this special issue. The introduction concludes with suggested topics for future research. (shrink)