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)

After exploring MacIntyre’s (1985) practice—institution distinction, the article demonstrates its applicability to business-as-practice and to corporations as institutions. It then considers the implications of MacIntyre’s schema to ethical schizophrenia, to the claim that themarket is a source of the virtues and to the opposite claim that capitalism corrodes character. A fully worked out modern virtue ethics, based on MacIntyre’s work, is then established and the claim is made and substantiated that such an understanding of MacIntrye’s work revitalises it and makes (...) it directly applicable to business and to corporations. (shrink)

The paper begins by exploring whether a “tendency to avarice” exists in most capitalist business organisations. It concludes that it does and that this is problematic. The problem centres on the potential threat to the integrity of human character and the disablement of community.What, then, can be done about it? Building on previous work (Moore, 2002) in which MacIntyre’s notions of practice and institution were explored (MacIntyre, 1985), the paper offers a philosophically based argument in favour of the rediscovery of (...) craftsmanship by those who work in business organisations, and the exercise of craftsmanship in community.The practical implications for individuals of this way of conceptualising business, and the virtues which must then come to the fore, are discussed. (shrink)

The paper begins by exploring whether a “tendency to avarice” exists in most capitalist business organisations. It concludes that it does and that this is problematic. The problem centres on the potential threat to the integrity of human character and the disablement of community.What, then, can be done about it? Building on previous work (Moore, 2002) in which MacIntyre’s notions of practice and institution were explored (MacIntyre, 1985), the paper offers a philosophically based argument in favour of the rediscovery of (...) craftsmanship by those who work in business organisations, and the exercise of craftsmanship in community.The practical implications for individuals of this way of conceptualising business, and the virtues which must then come to the fore, are discussed. (shrink)

A horseshoe is regarded as a lucky, perhaps even romantic, symbol of our industrial heritage. Why is it, then, that much of English literature, from Mandeville's ‘Grumbling Hive’ on, portrays business in a murky light? The paper begins with an analysis of this phenomenon and concludes that it is the institutionalisation and legitimisation of avarice and its consequential effects that gives rise to such a portrayal. A horseshoe has also been used as a convenient means of conceptualising an answer to (...) the questions this conclusion raises: ‘Who should control the corporation and for what ends?’ (Mintzberg 1985) and discussing recent developments in corporate social responsibility. Drawing on research evidence the paper demonstrates how corporations are simultaneously under pressure from society and responding to its concerns. The paper concludes that these current developments can at best ameliorate the situation, and that what is necessary is to rediscover the notion of corporate virtue, instead of putting virtue at the service of vice. (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)

Auditors’ virtue comprises those qualities of character that manifest the ideals of the audit community (c.f., Maclntyre, 1984, After Virtue. (University of Notre Dame Press, Notre Dame)), and are instrumental in ensuring that auditors’ professional judgment is exercised according to a high moral standard (Thorne, 1998, Research on Accounting Ethics. (JAI Press, Greenwich, CT)). Nevertheless, the lack of valid and reliable quantitative measures of auditors’ virtue impedes research that furthers our understanding of how best to promote virtue in the audit (...) community. To address this gap, we develop two measures of auditors’ virtue. We report the results of the validity and reliability of the scales. In addition, we use the findings from the administration of these scales to professional accountants to refine and validate the theoretical characterization of virtues developed by Pincoffs (1986, Quandaries and Virtues. University Press of Kansas, Lawrence, KS) and Libby and Thorne (2004, Business Ethics Quarterly). In so doing, this study provides a foundation by which future audit research can study ways to ensure that auditors’ virtue is promoted throughout the audit community. (shrink)

Auditors' virtue comprises those qualities of character that manifest the ideals of the audit community ), and are instrumental in ensuring that auditors' professional judgment is exercised according to a high moral standard ). Nevertheless, the lack of valid and reliable quantitative measures of auditors' virtue impedes research that furthers our understanding of how best to promote virtue in the audit community. To address this gap, we develop two measures of auditors' virtue. We report the results of the validity and (...) reliability of the scales. In addition, we use the findings from the administration of these scales to professional accountants to refine and validate the theoretical characterization of virtues developed by Pincoffs and Libby and Thorne. In so doing, this study provides a foundation by which future audit research can study ways to ensure that auditors' virtue is promoted throughout the audit community. (shrink)

Using survey methodology we examined the relationships between commitment to moral self-improvement (CMSI), religiosity, ethical problem recognition, and behavioral intentions in a sample of 242 business students. Results of the study suggest that CMSI predicts ethical problem recognition and behavioral intentions. Our findings also suggest that CMSI is positively related to religiosity. The study provides some evidence of CMSI being a mediator in the influence of religiosity on ethical problem recognition and behavioral intentions. Compared to religiosity, CMSI turned out to (...) be a better predictor of perceived importance of ethics, ethical problem recognition, and ethical behavioral intentions. The results of the study have implications for increasing understanding of ethical decision-making, future studies of business ethics, and business ethics education. (shrink)

Four predictors were posited to affect business student attitudes about the social responsibilities of business, also known as corporate social responsibility (CSR). Applying Forsyth's (1980, "Journal of Personality and Social Psychology" 39, 175–184, 1992, "Journal of Business Ethics" 11, 461–470) personal moral philosophy model, we found that ethical idealism had a positive relationship with CSR attitudes, and ethical relativism a negative relationship. We also found materialism to be negatively related to CSR attitudes. Spirituality among business students did not significantly predict (...) CSR attitudes. Understanding the relationship between CSR attitudes and the significant predictors has important implications for researchers and teachers in particular. (shrink)

This study investigated the factorial validity of the 58-item Corporate Ethical Virtues scale :923–947, 2008). The major aim was to test the invariance of the factor structure across different organizational samples. The CEV scale was designed to measure eight corporate virtues: clarity, congruency of supervisors, congruency of senior management, feasibility, supportability, transparency, discussability, and sanctionability. The data consisted of four organizational samples that are operated in the private and public sector. The results of confirmatory factor analyses supported the hypothesized eight-factor (...) structure, as well as its alternative second-order factor structure, where high correlations between the first-order factors were explained by a general CEV factor. These factor structures remained the same across samples, lending strong support for the group invariance assumption of the scale. Thus, the 58-item CEV scale was found to be a valid tool for measuring the aspect of ethical organizational culture in different organizations, and its use can be recommended for future research. (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)

The present study had two major aims: first, to examine the construct validity of the Finnish 58-item Corporate Ethical Virtues scale (CEV; Kaptein in J Org Behav 29:923–947, 2008) and second, to examine whether the associations between managers’ perceptions of ethical organisational culture and their occupational well-being (emotional exhaustion and work engagement) are indirectly linked by ethical strain, i.e. the tension which arises from the difference in the ethical values of the individual and the organisation he or she works for. (...) The sample consisted of 902 managers from different organisations, in middle and upper management levels, aged 25–68 years. The results of the confirmatory factor analysis (CFA) provided support to the hypothesised eight-factor structure of the CEV scale; i.e. the scale contained the factors of clarity, congruency of supervisors, congruency of senior management, feasibility, supportability, transparency, discussability and sanctionability. In addition, it emerged from the CFAs that the high intercorrelations of these factors can be explained by the second-order factor of ethical culture. The managers’ perceptions of the ethical culture prevailing in their organisations were associated with their occupational well-being both directly (high-work engagement) and indirectly via a low level of ethical strain (low-emotional exhaustion). Thus, the findings indicated that the ethical culture of organisations plays a major role in managers’ occupational well-being. (shrink)

The aims of this study were to investigate what kinds of personal work goals managers have and whether ethical organisational culture is related to these goals. The sample consisted of 811 Finnish managers from different organisations, in middle and upper management levels, aged 25–68 years. Eight work-related goal content categories were found based on the managers self-reported goals: (1) organisational goals (35.4 %), (2) competence goals (26.1 %), (3) well-being goals (12.1 %), (4) career-ending goals (7.3 %), (5) progression goals (...) (6.8 %), (6) prestige/influence goals (4.2 %), (7) job change goals (4.2 %) and (8) employment contract goals (3.9 %). Ethical organisational culture operated as a context for personal goal setting: Those managers who evaluated their organisational culture as more ethical were more likely to report organisational goals (e.g. goals toward the success or performance of the organisation). However, if managers gave lower ratings regarding ethical culture, then they named job change and career-ending goals in more cases. Therefore, investing into ethical virtues of the organisational culture can promote managers’ personal work goals, which also benefit the organisation. (shrink)

A values-centered leadership model comprised of leader stakeholder and economic values, follower values congruence, and responsible leadership outcomes was tested using data from 122 organizational leaders and 458 of their direct reports. Alleviating same-source bias concerns in leadership survey research, follower ratings of leadership style and follower ratings of values congruence and responsible leadership outcomes were collected from separate sources via the split-sample methodology. Results of structural equation modeling analyses demonstrated that leader stakeholder values predicted transformational leadership, whereas leader economic (...) values were associated with transactional leadership. Follower values congruence was strongly associated with transformational leadership, unrelated to transactional leadership, and partially mediated the relationships between transformational leadership and both follower organizational citizenship behaviors and follower beliefs in the stakeholder view of corporate social responsibility. Implications for responsible leadership and transformational leadership theory, practice, and future research are discussed. (shrink)

Several leadership and ethics scholars suggest that the transformational leadership process is predicated on a divergent set of ethical values compared to transactional leadership. Theoretical accounts declare that deontological ethics should be associated with transformational leadership while transactional leadership is likely related to teleological ethics. However, very little empirical research supports these claims. Furthermore, despite calls for increasing attention as to how leaders influence their followers’ perceptions of the importance of ethics and corporate social responsibility (CSR) for organizational effectiveness, no (...) empirical study to date has assessed the comparative impact of transformational and transactional leadership styles on follower CSR attitudes. Data from 122 organizational leaders and 458 of their followers indicated that leader deontological ethical values (altruism, universal rights, Kantian principles, etc.) were strongly associated with follower ratings of transformational leadership, while leader teleological ethical values (utilitarianism) were related to follower ratings of transactional leadership. As predicted, only transformational leadership was associated with follower beliefs in the stakeholder view of CSR. Implications for the study and practice of ethical leadership, future research directions, and management education are discussed. (shrink)

This paper considers the question of virtues appropriate to a corporate actor's moral character. A model of corporate appetites is developed by analogy with animal appetities; and the pursuit of initially virtuous corporate tendencies to an extreme degree is shown to be morally perilous. The author thus refutes a previous argument which suggested that (1) corporate virtues, unlike human virtues, need not be located on an Aristotelian mean between opposite undesirable extremes because (2) corporations do not have appetites; and (3) (...) corporate virtues must serve the end of sustainable profit. If these disanalogies between corporate and human virtue no longer hold, then the stage is set for us to formulate a more adequate model of good corporate character that would encompass other-regarding virtues. (shrink)

Drawing on the Agency-Stewardship approach, which suggests that manager profile may range from the agent model to the steward model, this article aims to examine how important CEOs are to corporate social responsibility (CSR). Specifically, this exploratory study proposes the existence of a relationship between manager profile and CSR practices and that this relation is mediated by the perceived role of ethics and social responsibility. After applying a mediated regression analysis using survey information collected from 149 CEOs in Spain, results (...) show that those closer to the steward model are more inclined to attach great importance to ethics and social responsibility, and to implement CSR practices in their companies. Results also provide support for the suggested mediating effect. Thus, this article extends research in understanding top managers as drivers for CSR and suggests new ways to deal with this issue empirically. (shrink)

Should we in the moral community accept the modern business corporation as one of us? French answers 'yes'. In this book, French investigates the metaphysical foundations of the application of our established moral principles to corporations as moral persons.

This paper seeks to establish whether the categories of MacIntyrean virtue ethics as applied to business organizations are meaningful in a non-western business context. It does so by building on research reported in Moore : 363–387, 2012) in which the application of virtue ethics to business organizations was investigated empirically in the UK, based on a conceptual framework drawn from MacIntyre’s work. Comparing these results with an equivalent study in Sri Lanka, the paper finds that the categories are meaningful but (...) that there are both similarities to and considerable differences in the content of these categories from the UK study. The paper draws on aspects of institutional theory to explore and explain these findings. Overall, there is supportive evidence that the categories of MacIntyrean virtue ethics are generalizable, and so can be used to characterize problems of organizational virtue and vice around the world, while providing evidence that there may be polities which are more conducive to the ‘practice-like conduct of production’ : 77–91, 2008). (shrink)

The Perceived Role of Ethics and Social Responsibility (PRESOR) instrument was developed in the United States by Singhapakdi et al. (1996b) as a reliable and valid scale to measure the perceived role of ethics and social responsibility in achieving organizational effectiveness. This study was carried out to confirm the factorial structure of the instrument and to assess its reliability and validity for use in Hong Kong, the finance and service heart of the Asia-Pacific region and a culture with clear differences (...) in ethical attitudes and perceptions from those of the United States. Constructive replication of the exploratory factor analytic procedure of the original study with a representative sample of Hong Kong managers failed to support the hypothesized scale structure but instead suggested a different, two-factor, structure. Confirmatory factor analysis defined the alternative model which comprised two interpretable, negatively intercorrelated factorial scales, "Importance of ethics and social responsibility" and "Subordination of ethics and social responsibility in the achievement of organizational effectiveness". The model showed a high level of goodness-of-fit for the population and the two subscales, comprised of five items and four items respectively, were shown to have acceptable internal consistency reliability. Correlational and multiple regression analysis showed highly significant levels of association with the ethical ideology dimensions of the EPQ (Forsyth, 1980), used in the validation of the original scale, and with two ethical philosophy subscales derived from the ATBEQ (Preble and Reichel, 1988). The instrument is short, easily administered, is psychometrically sound and has considerable potential in the study of the perceived role of ethics and social responsibility in the achievement of organizational effectiveness. (shrink)

Significant research has found that corporations have a social responsibility beyond maximizing shareholders' value. This study examines the effect of high-profile corporate bankruptcies on perception of corporate social responsibility. Undergraduate and graduate business students rated the importance of corporate social responsibility on profitability, long-term success and short-term success, before and after high-profile bankruptcies. The results indicated that students in general perceived corporate social responsibility to be more important to profitability and long-term success of the firm and less important to short-term (...) success after media publicity of corporate scandals. Several demographic factors such as gender, age and college major played a role in this perception. These findings have important implications for business education, especially as it relates to corporate social responsibility. (shrink)