Stakeholder theory is a significant development in the drive to provide a foundation for intuitions concerning the moral responsibility connected to corporate decision making. The move to include the interests of workers, consumers, the communities and biological environment in which the corporations instantiations are located run counter to the view in which shareholders’ interests are paramount. The non-sale of the Hershey Foods company to Wrigley1 was the ultimate result of a massive call by stakeholders to put other interests before shareholder (...) financial stakes, yet the discussion was notably not held in terms of stakeholder theory. Rather, the discussion was explicitly Aristotelian with opponents of the view arguing that the sale was improper because it ran counter to the essence or telos of the organisation. This case is no doubt unusual in that the founding documents of the organisation were appealed to in order to justify the claim that the essence of the corporation was to do more than enrich the shareholders. This paper intends to examine whether, in spite of this anomaly, the Hershey case has anything general to say about the foundations of corporate responsibility. (shrink)

According to the ethical system of eudaimonism, a philosophy that predates Aristotle, individuals have a responsibility to recognize and live in accordance with their daimon or "true self." The daimon refers to the potentialities of each person, the realization of which represents the greatest fulfillment in living of which each is capable. The daimon is an ideal in the sense of being an excellence, a perfection toward which one strives and, hence, it can give meaning and direction to one's life. (...) Eudaimonia, then, is activity in accordance with one's daimon. This is what is considered worth having in life. Since Aristotle in the Nicomachean Ethics is concerned with the proper ends of human functioning, he rejects the view of eudaimonia as a subjective state equivalent to, or similar to, hedonic enjoyment. But if psychologists are to be able to make productive use of the Aristotle's conception of eudaimonia, it must be rendered in a form more congenial to the field. In pursuing this goal, I have found it necessary to take several significant departures from the Aristotelian perspective, while I have endeavored to remain true to Aristotle's ethical objectives. The most important of these departures is to consider eudaimonia to have a subjective component embodying the experiences that flow from efforts to live in truth to one's daimon by striving to develop one's aptitudes and talents for purposes deemed worth having in life. 2012 APA, all rights reserved). (shrink)

Business and Society: Ethics and Stakeholder Management, 5th edition employs a stakeholder management framework, emphasizing business' social and ethical responsibilities to both external and internal stakeholder groups. A twin theme of business ethics to illustrate how ethical or moral considerations are included the public issues facing organizations and the decision making process of managers. The text is written from a managerial perspective that along with the twin themes of stakeholders and ethics, shows how to identify stakeholders, incorporate their concerns into (...) the organization's strategy and operations, and also integrate ethical wisdom into their decision making process. In addition, 35 case histories are included to help connect theory and practice through timely and interesting examples. (shrink)

The Greek philosopher Aristotle, writing over two thousand years before Wall Street, called people who engaged in activities which did not contribute to society "parasites." In his latest work, renowned scholar Robert C. Solomon asserts that though capitalism may require capital, but it does not require, much less should it be defined by the parasites it inevitably attracts. Capitalism has succeeded not with brute strength or because it has made people rich, but because it has produced responsible citizens and--however unevenly--prosperous (...) communities. It cannot tolerate a conception of business that focuses solely on income and vulgarity while ignoring traditional virtues of responsibility, community, and integrity. Many feel that there is too much lip-service and not enough understanding of the importance of cooperation and integrity in corporate life. This book rejects the myths and metaphors of war-like competition that cloud business thinking and develops an "Aristotelean" theory of business. The author's approach emphasizes several core concepts: the corporation as community, the search for excellence, the importance of integrity and sound judgment, as well as a more cooperative and humane vision of business. Solomon stresses the virtues of honesty, trust, fairness, and compassion in the competitive business world, and confronts the problem of "moral mazes" and what he posits as its solution--moral courage. (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)

Stakeholder theory is an important part of modern business ethics. Many scholars argue for a normative instead of an instrumental approach to stakeholder theory. Recent examples of such an approach show that problems appear with respect to the ethical foundation as well as the specification of the norms and the relation between corporate and individual responsibilities. This paper argues for the relevance of Aristotle's ideas on ethics and politics, and especially the link between them, for stakeholder theory. An Aristotelian approach (...) suggests that the corporation should be considered as existing to allow the decision maker, who normally is a manager, to live a complete and good life and to make decisions that involve the interests of different stakeholders. This approach leads to a number of implications regarding the role of organizational politics and the managerial function. (shrink)

_Rhetoric_ is the sixth volume in The New Hackett Aristotle series, a series featuring translations, with Introductions and Notes, by C. D. C. Reeve, Delta Kappa Epsilon Distinguished Professor of Philosophy at The University of North Carolina at Chapel Hill. The series will eventually include all of Aristotle's works.

This volume brings together Nussbaum's published papers on the relationship between literature and philosophy, especially moral philosophy.

This paper explores the relationship between accountability, trust and corporate reputation building. Increasing numbers of corporations are mobilising themselves to put more and more information out into the public domain as a way of communicating with stakeholders. Corporate social accounting and stakeholder engagement is happening on an unprecedented scale. Rather than welcoming such initiatives, academics have been quick to pick faults with contemporary social auditing and reporting, claiming that in its current form it is not about demonstrating accountability at all, (...) but rather about building corporate reputation. Academics argue that ‘accountability should hurt’, that if accountability is an enjoyable process, then the organisation isn’t doing it right. For organisations that are currently engaging with stakeholders and ostensibly becoming more transparent about their corporate social performance, this kind of critique is likely to be bewildering. This paper argues that central to the notion of accountability and to contemporary social accounting practice is the concept of trust. Accountability is based upon a distrust of corporate management, whereas corporate reputation building is about strategically seeking to establish trust in stakeholder relationships in order to negate formal accountability requirements. Using a split trust continuum, the paper seeks to explain and synthesise what seem to be two very different paradigms of organisational transparency. (shrink)

This volume brings together Nussbaum's published papers on the relationship between literature and philosophy, especially moral philosophy. The papers, many of them previously inaccessible to non-specialist readers, explore such fundamental issues as the relationship between style and content in the exploration of ethical issues; the nature of ethical attention and ethical knowledge and their relationship to written forms and styles; and the role of the emotions in deliberation and self-knowledge. Nussbaum investigates and defends a conception of ethical understanding which involves (...) emotional as well as intellectual activity, and which gives a certain type of priority to the perception of particular people and situations rather than to abstract rules. She argues that this ethical conception cannot be completely and appropriately stated without turning to forms of writing usually considered literary rather than philosophical. It is consequently necessary to broaden our conception of moral philosophy in order to include these forms. Featuring two new essays and revised versions of several previously published essays, this collection attempts to articulate the relationship, within such a broader ethical inquiry, between literary and more abstractly theoretical elements. (shrink)

This paper explores the relationship between accountability, trust and corporate reputation building. Increasing numbers of corporations are mobilising themselves to put more and more information out into the public domain as a way of communicating with stakeholders. Corporate social accounting and stakeholder engagement is happening on an unprecedented scale. Rather than welcoming such initiatives, academics have been quick to pick faults with contemporary social auditing and reporting, claiming that in its current form it is not about demonstrating accountability at all, (...) but rather about building corporate reputation. Academics argue that ‘accountability should hurt’, that if accountability is an enjoyable process, then the organisation isn’t doing it right. For organisations that are currently engaging with stakeholders and ostensibly becoming more transparent about their corporate social performance, this kind of critique is likely to be bewildering. This paper argues that central to the notion of accountability and to contemporary social accounting practice is the concept of trust. Accountability is based upon a distrust of corporate management, whereas corporate reputation building is about strategically seeking to establish trust in stakeholder relationships in order to negate formal accountability requirements. Using a split trust continuum, the paper seeks to explain and synthesise what seem to be two very different paradigms of organisational transparency. (shrink)

Since the Middle Ages, Aristotle has been hailed as the father of economics. But recently classicists have maintained that he did no economics at all. This book clears up the anomaly. The author argues that Aristotle had a theory of money and commerce, but that it is ethical rather than economic. According to Aristotle ethics and economics are fundamentally opposed and can never be reconciled.

It is generally assumed that common stock investors are exclusively interested in earning the highest level of future cash-flow for a given amount of risk. This view suggests that investors select a well-diversified portfolio of securities to achieve this goal. Accordingly, it is often assumed that investors are unwilling to pay a premium for corporate behavior which can be described as socially-responsible.Recently, this view has been under increasing attack. According to the Social Investment Forum, at least 538 institutional investors now (...) allocate funds using social screens or criteria. In addition, Alice Tepper Marlin, president of the New York-based Council on Economic Priorities has recently estimated that about $600 billion of invested funds are socially-screened (1992). (shrink)

This paper develops and explores a pedagogical innovation for integrating virtue theory into business students' basicunderstanding of general management. Eighty-seven students, in 20 groups, classified three managers' real-time videotaped activitiesaccording to an elaboration of Aristotle's cardinal virtues, Fayol's management functions, and Mintzberg's managerial roles. The study's empirical evidence suggests that, akin to Fayol's functions and Mintzberg's roles, Aristotle's virtues are also amenable to operationalization, reliable observation, and meaningful description of managerial behavior. The study provides an oft-called-for empirical basis for further (...) work in virtue theory as an appropriate conceptual framework for the study and practice of management. The results indicate that virtue theory may be used to re-conceive our fundamental understanding of management, alongside its capacity to weigh moral judgment upon it. implications and suggestions for future research are discussed. (shrink)

In the wake of business scandals at Enron, Arthur Andersen, Global Crossing, Tyco—the list grows daily—there is an increasing sense among employees, executives, investors, and the public that the “anything goes” culture of the New Economy is over. Today, businesses must act responsibly, transparently, and with integrity. Using in-depth case studies and examples from over 50 companies that range from Starbucks to Citigroup, General Motors to General Electric, DuPont to Dell, Ira A. Jackson, former director of the Center for Business (...) and Government at Harvard’s Kennedy School, shows the quantifiable and enduring business advantage to “doing the right thing.” Companies that give back to their employees and society—focusing on values and purpose as well as profitability—often gain commpetitive advantage and improve their brand image, consumer loyalty, and employee satisfaction. Identifying seven principles of making values integral to business processes and practices, PROFITS WITH PRINCIPLES opens the door to a new kind of capitalism, providing a wealth of practical recommendations companies of all sizes can model their own efforts after. (shrink)

Current theories of management have difficulty overcoming certain problems and limitations related to some features of the field itself multiplicity, midtidisciplinarityt fragmentation, presence or lack of paradigms, se/freferentiality, and ethnocentrism. This paper first reviews these issues broadly. Then, it emphasises the preponderance of the scientific method and the exclusion of philosophy as theoretical foundations for management. It proposes taking philosophy as the science to provide the foundations of management. It explains how philosophy — especially philosophy that has its roots in (...) Aristotelian thought - can be of help to management through four different functions: admirative, globalising, political, and critical. In this way, Aristotelian philosophy is shown to be a superior basis for solving the present problems in management theory and a fruitful option for integrating ethics in organisational and management theories. (shrink)

The Eudemian Ethics is a major treatise on moral philosophy whose central concern is what makes life worth living. This is the first time it has been published in its entirety in any modern language. Anthony Kenny's fine translation is accompanied by a lucid introduction and explanatory notes.

Are social sciences that are indigenous to the West necessarily universal for other cultures? This collection of South Asian scholarship draws on the experiences of the region to discuss this question in depth.

Quite frequently, business periodicals feature articles on the importance of building and maintaining a "network" of businessfriends. Typically, these articles offer practical suggestions for "networking." This article is a philosophical investigation of businessfriends, and business friendships. Relying upon Aristotle's classic analysis, I argue that business friendships are instances of"incomplete friendships for utility." Viewed in this way, much is revealed about what business friendships are; even more is revealedabout what business friendships are not. It is perfectly natural to say that business (...) friends use one another; this raises the issue of whether business friendships violate the Kantian "categorical imperative." I argue that they need not, and that-so long as they are truly"friendships"-they do not. What this discussion makes clear, however, is that business friendships are in continuous peril of eroding intorelationships that cannot survive moral scrutiny. I conclude with a few practical suggestions-and philosophical cautions. (shrink)