A common reaction to crises experienced within or brought about by business is to identify a corollary ‘crisis of leadership’ and to call for better leaders. This paper supports the idea that there is a crisis of leadership – but interprets it quite differently. Specifically, I argue that the most ethically debilitating crisis is the fact that we look to leadership to solve organisational ethical ills. There is, I argue, a pressing need to conceptualise a business ethics that is not (...) constrained by the straitjacket of official hierarchy – a need to denaturalise ‘leadership’ as the normal or rightful locus of ethical regulation and renewal in business organisation. To this end, I explore a Levinasian ethico‐politics of responsibility and proximity as the basis of an alternative, anti‐sovereign, ethics of organisation. (shrink)

The paper considers two main cases of how the creative arts can inform a greater appreciation of human dignity. The first case explores a form of theater, Commedia dell’Arte that has deep roots in Italian culture. The second recounts a set of theater exercises done with very minimal direction or self-direction in executive education and MBA courses at the Darden School, University of Virginia, in the United States. In both cases we highlight how the creative arts can be important for (...) promoting human dignity in organizations, and how they can lead to a more authentic conversation about values, ethics, and meaning. (shrink)

Ethical decision-making descriptive theoretical models often conflict with each other and typically lack comprehensiveness. To address this deficiency, a revised EDM model is proposed that consolidates and attempts to bridge together the varying and sometimes directly conflicting propositions and perspectives that have been advanced. To do so, the paper is organized as follows. First, a review of the various theoretical models of EDM is provided. These models can generally be divided into rationalist-based ; and non-rationalist-based. Second, the proposed model, called (...) ‘Integrated Ethical Decision Making,’ is introduced in order to fill the gaps and bridge the current divide in EDM theory. The individual and situational factors as well as the process of the proposed model are then described. Third, the academic and managerial implications of the proposed model are discussed. Finally, the limitations of the proposed model are presented. (shrink)

A common reaction to crises experienced within or brought about by business is to identify a corollary ‘crisis of leadership’ and to call for better (stronger, more thoughtful or, indeed, more ethical and responsible) leaders. This paper supports the idea that there is a crisis of leadership – but interprets it quite differently. Specifically, I argue that the most ethically debilitating crisis is the fact that we look to leadership to solve organisational ethical ills. There is, I argue, a pressing (...) need to conceptualise a business ethics that is not constrained by the straitjacket of official hierarchy – a need to denaturalise ‘leadership’ as the normal or rightful locus of ethical regulation and renewal in business organisation. To this end, I explore a Levinasian ethico-politics of responsibility and proximity as the basis of an alternative, anti-sovereign, ethics of organisation. (shrink)

This paper provides a detailed study of fraud in practice through an empirical investigation of B.P.Sayers, a family-owned stockbroking firm that had been in existence for over 100 years and that collapsed due to the fraudulent activities of the firm's junior partner. An interpretive narrative methodology has been employed which has resulted in the development of a detailed understanding of fraud and moral breakdown in organizations, resulting from a failure of responsibility that arises from a dysfunctional work identification and its (...) moral implications. In developing this account of fraud, the conceptual framework utilized is drawn from the moral philosophical work of Emmanuel Levinas who explicated how the breakdown of social relations of responsibility results, in turn, in moral breakdown. (shrink)

A quick look at what is happening in the corporate world makes it clear that the stakeholder idea is alive, well, and flourishing; and the question now is not “if ” but “how” stakeholder theory will meet the challenges of its success. Does stakeholder theory’s “arrival” mean continued dynamism, refinement, and relevance, or stasis? How will superior stakeholder theory continue to develop? In light of these and related questions, the authors of these essays conducted an ongoing dialogue on the current (...) state and future of stakeholder thinking. Beginning with a review of research and theory that has developed since the major stakeholder theorizing efforts of the 1990s, the authors individually offer their perspectives on the key issues relevant today to stakeholder thinking, and to suggest possible approaches that might lead toward and enable the continuing development of superior stakeholder theory. (shrink)

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.

Abstract:Should the responsibilities of business managers be understood independently of the social circumstances and “market forces” that surround them, or (in accord with empiricism and the social sciences) are agents and their choices shaped by their circumstances, free only insofar as they act in accordance with antecedently established dispositions, their “character”? Virtue ethics, of which I consider myself a proponent, shares with empiricism this emphasis on character as well as an affinity with the social sciences. But recent criticisms of both (...) empiricist and virtue ethical accounts of character deny even this apparent compromise between agency and environment. Here is an account of character that emphasizes dynamic interaction both in the formation and in the interplay between personal agency and responsibility on the one hand and social pressures and the environment on the other. (shrink)

The recent financial crisis has prompted questioning of our basic ideas about capitalism and the role of business in society. As scholars are calling for “responsible leadership” to become more of the norm, organizations are being pushed to enact new values, such as “responsibility” and “sustainability,” and pay more attention to the effects of their actions on their stakeholders. The purpose of this study is to open up a line of research in business ethics on the concept of “ authenticity (...) ” as it can be applied in modern organizational life and more specifically to think through some of the foundational questions about the logic of values. We shall argue that the idea of simply “acting on one’s values” or “being true to oneself” is at best a starting point for thinking about authenticity. We develop the idea of the poetic self as a project of seeking to live authentically. We see being authentic as an ongoing process of conversation that not only starts with perceived values but also involves one’s history, relationships with others, and aspirations. Authenticity entails acting on these values for individuals and organizations and thus also becomes a necessary starting point for ethics. After all, if there is no motivation to justify one’s actions either to oneself or to others, then as Sartre has suggested, morality simply does not come into play. We argue that the idea of responsible leadership can be enriched with this more nuanced idea of the self and authenticity. (shrink)

The purpose of this paper is to enter the conversation about stakeholder theory with the goal of clarifying certain foundational issues. I want to show, along with Boatright, that there is no stakeholder paradox, and that the principle on which such a paradox is built, the Separation Thesis, is nicely self-serving to business and ethics academics. If we give up such a thesis we find there is no stakeholder theory but that stakeholder theory becomes a genre that is quite rich. (...) It becomes one of many ways to blend together the central concepts of business with those of ethics. Rather than take each concept of business singly or the whole of “business” together and hold it to the light of ethical standards, we can use the stakeholder concept to create more fine-grained analyses that combine business and ethics; or more simply, we can tell many more, and more interesting, stories about business. (shrink)

Ethics surely matters to people, but to ignore the fact that other things matter as weIl is to oversimplify human motivation and behavior. Human action is often the ungainly resolution of conflicts between ethical and egotistical impulses, and the challenge for moral psychology is to understand these conflicts and their resolution.

It may be nearly impossible to use standard principles to make a decision about a complex ethical case. The best decision, say virtue ethicists in the Aristotelian tradition, is often one that is made by a person of good character who knows the salient facts of the case and can frame the situation appropriately. In this respect ethical decisions and strategic decisions are similar. Rationality plays a role in good ethical decision-making, but virtue ethicists emphasize the importance of intuitions and (...) emotions as well.Virtue ethics suggests a reconciliation of the factual and the normative. Virtues may explain as well as justify actions. The same is true of other psychological states and events. That psychological terms have normative implications does not render them useless in explanation. As Aristotle does not distinguish cleanly between the normative and empirical, so many moral philosophers today reject the is-ought dichotomy. They are prepared to learn from economists, psychologists, and other empirical scientists who offer information about the nature of the good life and of values. Social psychologists who study community or corporate culture suggest a close relationship between organizational and ethical features, much as Aristotle saw a close relationship between politics and ethics. We should infer from all this that in business ethics there is good reason for philosophers and organization scholars to work closely together. (shrink)

The paper considers two main cases of how the creative arts can inform a greater appreciation of human dignity. The first case explores a form of theater, Commedia dell’Arte that has deep roots in Italian culture. The second recounts a set of theater exercises done with very minimal direction or self-direction in executive education and MBA courses at the Darden School, University of Virginia, in the United States. In both cases we highlight how the creative arts can be important for (...) promoting human dignity in organizations, and how they can lead to a more authentic conversation about values, ethics, and meaning. (shrink)

This symposium contributes to the broader discussion about humanism in management and organizational well-being. Dignity plays a crucial role as both a fundamental value and as an end state in the process of humanizing organizational cultures, workplaces and relationships. However, despite its significance, it has yet to be addressed properly in the growing discourse on humanistic capitalism and management, and indeed in business ethics as a whole. This symposium seeks to inform and inspire emerging research and approaches towards human dignity (...) through the lens of artistic expression and explores how arts may promote human dignity in organizational life. (shrink)

A multiphase study tested a proposed mediated moderation model for the joint effects of ethical pressure and power distance orientation on accountants’ ethical judgments of earnings management. Results based on a sample of 354 accountants from China indicated that the relationship between ethical pressure and ethical judgments of earnings management is contingent on the accountants’ power distance orientation. That is, the relationship between ethical pressure and ethical judgments of earnings management was stronger for accountants with a high power distance orientation. (...) The results also demonstrated that ethical beliefs in support of the company serve as a mediator for the interaction effect of ethical pressure and power distance orientation on the outcome. These results are discussed in terms of viewing earnings management as a form of unethical pro-organizational behavior which can be effectively investigated within the framework of the person-situation interactionist model. (shrink)

In the midst of greed, corruption, the economic crash and the general disillusionment of business, current conceptions of leadership, organizational values, and authenticity are being questioned. In this article, we fill a prior research gap by directly exploring the intersection of these three concepts. We begin by delving into the relationship between individual values and organizational values. This analysis reveals that the “value fit” approach to creating authenticity is limited, and also indicates that a deeper exploration of the nature of (...) values and the role of leadership is necessary. More specifically, we propose that organizational values should be viewed as an opportunity for ongoing conversations about who we are and how we connect. Through this type of dialogue which we define as “value through conversation”, we can create what we call poetic organizations. A typology of four interconnected values each of which forms a foundation for the critical questioning and inquiry that might be found in poetic organizations is developed. We suggest that this conceptualization offers a new and dynamic approach for thinking about the relationships between leadership, values, and authenticity and has important implications for both research and practice. (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)

ABSTRACT:Practical wisdom has received scant attention in business ethics. Defined as a disposition toward cleverness in crafting morally excellent responses to, or in anticipation of, challenging particularities, practical wisdom has four psychological components: knowledge, emotion, thinking, and motivation. People's experience, reflection, and inspiration are theorized to determine their capacity for practical wisdom-related performance. Enhanced by their abilities to engage in moral imagination, systems thinking, and ethical reframing, this capacity is realized in the form of wisdom-related performance. This can be manifested (...) either in wise business decisions or through their performance as mentors, advice givers, or dispute handlers. (shrink)

Using a two-part instrument consisting of eight vignettes and twenty character traits, the study sampled 141 employees of a mid-west financial firm regarding their predispositions to prefer utilitarian or formalist forms of ethical reasoning. In contrast with earlier studies, we found that these respondents did not prefer utilitarian reasoning. Several other hypotheses were tested involving the relationship between people's preferences for certain types of solutions to issues and the forms of reasoning they use to arrive at those solutions; the nature (...) of the relationship between utilitarian and formalist categories ; and the possibility of measuring ethical predispositions using different methods. (shrink)

It may be nearly impossible to use standard principles to make a decision about a complex ethical case. The best decision, say virtue ethicists in the Aristotelian tradition, is often one that is made by a person of good character who knows the salient facts of the case and can frame the situation appropriately. In this respect ethical decisions and strategic decisions are similar. Rationality plays a role in good ethical decision-making, but virtue ethicists emphasize the importance of intuitions and (...) emotions as well.Virtue ethics suggests a reconciliation of the factual and the normative. Virtues may explain as well as justify actions. The same is true of other psychological states and events. That psychological terms have normative implications does not render them useless in explanation. As Aristotle does not distinguish cleanly between the normative and empirical, so many moral philosophers today reject the is-ought dichotomy. They are prepared to learn from economists, psychologists, and other empirical scientists who offer information about the nature of the good life and of values. Social psychologists who study community or corporate culture suggest a close relationship between organizational and ethical features, much as Aristotle saw a close relationship between politics and ethics. We should infer from all this that in business ethics there is good reason for philosophers and organization scholars to work closely together. (shrink)

Every time another corporate scandal captures media headlines, the ‘bad apple vs. bad barrel’ discussion starts anew. Yet this debate overlooks the influence of the broader societal context on organizational behavior. In this article, we argue that misbehaviors of organizations (the ‘barrels’) and their members (the ‘apples’) cannot be addressed properly without a clear understanding of their broader context (the ‘larder’). Whereas previously, a strong societal framework dampened the practical application of the Homo economicus concept (business actors as perfectly rational (...) and egocentric utility‐maximizing agents without any moral concern), specialization, individualization and globalization led to a business world disembedded from broader societal norms. This emancipated business world promotes a literal interpretation of Homo economicus among business organizations and their members. Consequently, we argue that the first step toward ‘healthier’ apples and barrels is to sanitize the larder, that is, adapt the framework in which organizations and their members evolve. (shrink)

The purpose of this paper is to describe a way of teaching business ethics using the creative arts, especially literature and theater. By drawing on these disciplines for both method and texts, we can more easily make the connection to business as a fully human activity, concerned with how meaning is created. Students are encouraged to understand story-telling and narrative and how these tools lend insight into the daily life of businesspeople. The paper describes two main courses, Business Ethics Through (...) Literature and Leadership, Ethics and Theater, and the rationale for each. We begin by suggesting three main leverage points that the courses engender. We then rely on the words of students who have taken the courses for insights into what they learned. We then critically assess some of the principles that have informed course design over time. We conclude by suggesting that paying attention to the creative arts gives rise to a rather different approach to business ethics, one grounded in the pragmatist tradition in philosophy. (shrink)

Trade secret theft is a problem that almost all organizations face. The greatest threat is employee mobility and potential unethical post-employment behavior. This study investigates the role of individual personality traits in judgments about trade secret misappropriation. Our hypotheses were tested in three studies addressing three different situational contexts: current employees, employees about to be laid off, and students who had quit their job. Relationships were estimated with robust regression. The results show that some personality traits predict judgment about another (...) person's trade secret misappropriation, and that the situational context in which individuals formulate their ethical judgment moderates the impact of personality traits on ethical judgment. (shrink)

Every time another corporate scandal captures media headlines, the ‘bad apple vs. bad barrel’ discussion starts anew. Yet this debate overlooks the influence of the broader societal context on organizational behavior. In this article, we argue that misbehaviors of organizations (the ‘barrels’) and their members (the ‘apples’) cannot be addressed properly without a clear understanding of their broader context (the ‘larder’). Whereas previously, a strong societal framework dampened the practical application of the Homo economicus concept (business actors as perfectly rational (...) and egocentric utility-maximizing agents without any moral concern), specialization, individualization and globalization led to a business world disembedded from broader societal norms. This emancipated business world promotes a literal interpretation of Homo economicus among business organizations and their members. Consequently, we argue that the first step toward ‘healthier’ apples and barrels is to sanitize the larder, that is, adapt the framework in which organizations and their members evolve. (shrink)

In this article we discuss what are the implications for improving the design of corporate ethics programs, if we focus on the moral motivation accounts offered by main ethical theories. Virtue ethics, deontological ethics and utilitarianism offer different criteria of judgment to face moral dilemmas: Aristotle's virtues of character, Kant's categorical imperative, and Mill's greatest happiness principle are, respectively, their criteria to answer the question "What is the right thing to do?" We look at ethical theories from a different perspective: (...) the question we ask is "Why should I do the right thing?" In other words, we deal with the problem of moral motivation, and we examine the different rationale the main ethical theories provide. We then point out the relation between moral motivation and the concept of rationality in the different approaches - is acting morally seen as an expression of rational behavior? Our analysis of moral motivation provides a useful framework to improve the understanding of the relationships between formal and informal elements of corporate ethics programs, emphasizing the importance of the latter, often overlooked in compliance-focused programs. We conclude by suggesting that the concept of moral imagination can provide a unifying approach to enhance the effectiveness of corporate ethics programs, by providing an intangible asset that supports the implementation of their formal components into management decision making. (shrink)