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)

Despite the expansion of the regulatory state, we continue to witness widespread unethical practices across society. This paper addresses these challenges of ethical failure, misalignment, and dissonance by developing a conceptual framework that provides an explicit basis for understanding virtuousness and the common good directed toward the goal of eudaimonia or human flourishing. While much of the literature on virtuousness has focused on the organization, this paper uses a more comprehensive understanding that also incorporates the agent and the economy examined (...) through their relational order. The common good provides direction for guiding behavior of all the various stakeholders and the context for understanding virtuousness, while it is through virtuousness that the common good is effectively realized. Virtuousness and the common good are therefore in effect ‘two sides of the same coin.’ This paper develops a virtuousness–common good conceptual framework which explores the basis for harmonizing the goals of the individual, organization, and the economy. (shrink)

Meaningful work is both a moral issue and an economic one. Studies show that workers’ experience of meaninglessness in their jobs contributes to job dissatisfaction which has negative effects to business. If having a meaningful work is essential for the well-being of workers, providing them with one is an ethical requirement for business establishments. The essay aims to articulate an account of meaningful work in the Catholic social teachings. CST rejects the subjectivist and relativist notion of work which affirms the (...) absolute freedom of individuals to choose their commitment and goals, even if this includes experiencing satisfaction in dehumanizing work. First, the paper will present a summary account of some of the current views on meaningful work from the objective-normative approach. This will be followed by a systematic treatment of the meaning and value of work in the CST, the similarities and differences it has with alternative views, and its implications for the way we promote meaningful work. The paper will argue that by recognizing the subjective and objective dimensions of work and affirming that although the two are inseparable, the former takes priority over the latter; CST develops a holistic, comprehensive, and coherent account of meaningful work which overcomes some of the difficulties that are usually encountered in dealing with this issue from a purely objective approach. (shrink)

This article presents the ethical concept of service as a way of specifying higher ethical principles in business practice. We set out from the work of a number of scholars who have found some shared ethical principles for doing business in a context of cultural diversity. Love, benevolence, consideration, and other related concepts are considered to be important guiding concepts for business but it is not clear how they are to be operationalized. We argue that the ethical concept of service (...) can act as a bridge for bringing those higher principles into business practice. The article explains and refines the ethical concept of service, which has received little attention. In particular, we address the ethical ambiguity implicit in the common meaning of service, explain how service shows love in business, and offer an account of how service provides ethical growth through virtue. Finally, this work presents a variety of examples from business which illustrate how the ethical concept of service can be put into practice. To achieve the aim of this study we draw inspiration from Catholic social teaching. This source provides useful insights into service and can be understood and accepted without requiring that particular faith. (shrink)

ABSTRACT:This article provides an account of virtues as praiseworthy traits of character with a far-reaching capacity to influence conduct. Virtues supply their possessors both with good reasons that indicate, for diverse contexts, what sort of thing should be done and with motivation to do them. This motivational power of virtue is crucial for the question of what kind of person, or businessperson, one wants to be. The article shows how the contrast between virtue ethics and rule ethics is often drawn (...) too sharply and indicates how virtue theories can incorporate both theoretical and practical uses of rules. More generally, it shows how a virtue orientation affects attitudes in management practices and how an understanding of certain virtues can help in making better decisions, both ethically and in relation to success in business. (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)

Caritas in Veritate (CV) poses a challenge to the business community when it asks for “a profoundly new way of understanding business enterprise” (CV 40). The paper proposes the concept of the “common good” as a starting point for the discussion and sketches a definition of the common good of business as the path toward an answer for this challenge. Building on the distinction between the material and the formal parts of the common good, the authors characterize profit as the (...) material part of the common good of business and work as the formal part that expresses the essential significance of business. (shrink)

The article advances an understanding of responsible leadership in global business and offers an agenda for future research in this field. Our conceptualization of responsible leadership draws on deliberative practices and discursive conflict resolution, combining the macro-view of the business firm as a political actor with the micro-view of leadership. We discuss the concept in relation to existing research in leadership. Further, we propose a new model of responsible leadership that shows how such an understanding of leadership can address the (...) challenges of globalization. We thereby propose positive outcomes of responsible leadership across levels of analysis. The model offers research opportunities for responsible leadership in global business. (shrink)

The article starts by arguing that seeing the firm as a mere nexus of contracts or as an abstract entity where different stakeholder interests concur is insufficient for a “humanistic business ethos”, which entails a complete view of the human being. It seems more appropriate to understand the firm as a human community, a concept which can be found in several sources, including managerial literature, business ethics scholars, and Catholic Social Teaching. In addition, there are also philosophical grounds that support (...) the idea of business as a human community. Extending this concept, and drawing from some Phenomenological-Personalist philosophers, we propose that the firm should be seen as a particular “community of persons” oriented to providing goods and services efficiently and profitably. Being a “community of persons” emphasizes both individuals and the whole, and makes explicit the uniqueness, conscience, free will, dignity, and openness to human flourishing. This requires appropriate communication about and participation in matters which affect people’s life, and makes it essential to cooperate for the common good of the business firm and the society. (shrink)

An organizational culture can be defined as "Organizational Humanizing Culture" if it presents the following features: (1) recognition of the person in his or her dignity, rights, uniqueness, sociability and capacity for personal growth, (2) respect for persons and their human rights, (3) care and service for persons around one, and (4) management towards the common good versus particular interests. Current findings and generalized experience suggest that an organizational culture with these features tends to bring about trust and associability, which (...) are basic elements for social capital (a sort of asset embedded in the relationships of individuals, communities, networks or societies). (shrink)

The theory of the social responsibility of the firm oscillates between two extremes: one that reduces the firm's responsibility to the obtainment of (the greatest possible) profit for its shareholders, and another that extends the firm's responsibility to include a wide range of actors with an interest or "stake" in the firm. The stakeholder theory of the social responsibility of business is more appealing from an ethical point of view, and yet it lacks a solid foundation that would be acceptable (...) to a variety of schools of thought.In this paper I argue that the stakeholder theory could be founded on the concept of the common good. First, I explain the foundations of the theory of the common good, the concept itself, how it relates to the individual good, and its role in the firm. Following that, I explain how the theory of the common good could be applied to the stakeholder theory. Finally, I draw some conclusions. (shrink)

We explore offshore outsourcing through the lenses of Catholic Social Teaching (CST). First, we review the outcomes of the 30-year debate in business ethics on issues related to offshore outsourcing. We then cluster authors into two groups—the justice-centered approach and the welfare-centered approach—corresponding to different perspectives on the ethical challenges of offshoring. In the second part, we present and apply the four fundamental principles of the CST (human dignity, subsidiarity, solidarity and the common good) to offshoring, in dialogue with the (...) previous debate. The unity and interconnection among the CST’s fundamental tenets provide a cohesive framework that integrates the points made by the justice-centered and welfare-centered approaches, while introducing the principle of solidarity, more focused on the worker as a person and their flourishing. CST also stresses the need to initiate processes oriented toward structural changes for the sake of human dignity and the common good. (shrink)

The notion of dignity as that which has intrinsic value has arguably been neglected in economics and management despite its societal importance and eminent relevance in other social sciences. While management theory gained parsimony, this paper argues that the inclusion of dignity in the theoretical precepts of management theory will: improve management theory in general, align it more directly with the public interest, and strengthen its connection to social welfare creation. The paper outlines the notion of dignity, discusses its historical (...) understanding, and explains its relevance in the context of management theory. Furthermore, it proposes a framework of paradigmatic assumptions along two dimensions: understanding human dignity as unconditional or conditional and understanding social welfare as wealth creation or well-being creation. I propose alternative management theory archetypes and discuss these archetypes’ theoretical implications for management research. I also suggest how management theory can be shifted to contribute toward social welfare creation more directly. (shrink)

Businesses have long been admonished for being unduly focused on the pursuit of profit. However, there are some organizations whose purpose is not exclusively economic to the extent that they seek to constitute common good. Building on Christian ethics as a starting point, our article shows how the pursuit of the common good of the firm can serve as a guide for humanistic management. It provides two principles that humanistic management can attempt to implement: first, that community good is a (...) condition for the realization of personal good, and second, that community good can only be promoted if it is oriented towards personal good. To better understand which community good can favor personal good and how it can be achieved, we examine two recent humanistic movements—Conscious Capitalism and Economy of Communion—that strive to participate in the common good. From the analysis of these two movements, we identify a shared managerial willingness to adopt the two principles. Moreover, we also reveal that Conscious Capitalism and Economy of Communion present different ways of linking community good and personal good, and therefore, different means exist for firms to participate in the common good. (shrink)

The market relationships are being contested. This can be seen in the increasing number of alternative social experiments in the ‘North’ and the ‘South’ which propose to think out the present market relationships in a different way, in particular in establishing exchange value and in facilitating access to trade. These practical alternatives are supported by trends in academic circles that over the past three decades have opposed neoliberal capitalism and individualism in today's commercialised society. Calling for greater solidarity and social (...) justice in economic relationships, in particular, partisans of social and solidarity economics, identifying with these trends, demand new forms of exchange. The objective of this article is to re-examine these demands. What exactly do the SSE mean by ‘solidarity’ and ‘solidarity-based economy'? We would like to trace the contours of this theoretical and political project and to assess the practicability of the proposed alternative to neoliberal capitalism. (shrink)

In the human quest for meaning, work occupies a central position. Most adults spend the majority of their waking hours at work, which often serves as a primary source of purpose, belongingness, and identity. In light of these benefits to employees and their organizations, organizational scholars are increasingly interested in understanding the factors that contribute to meaningful work, such as the design of jobs, interpersonal relationships, and organizational missions and cultures. In a separate line of inquiry, scholars of business ethics (...) have examined meaningful work as a moral issue concerning the management of others and ourselves, exploring whether there are definable characteristics of meaningful work to which we have moral rights, and whether there are moral duties to ourselves and others to fulfill those rights. In this article, we examine contemporary developments in both disciplines about the nature, causes, and consequences of meaningful work; we explore linkages between these disciplines; and we offer conclusions and research opportunities regarding the interface of ethical and organizational perspectives on performing and providing meaningful work. (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)

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)

The ongoing global economic and financial crisis has exposed the risks of considering market and business organizations only as instruments for creating economic wealth while paying little heed to their role in ethics and values. Catholic Social Teaching (CST) could provide a useful contribution in rethinking the role of values in business organizations and markets because CST puts forward an anthropological view that involves thinking of the marketplace as a community of persons with the aim of participating in the Common (...) Good (CG) of society. In the light of the CST tradition, and in particular Caritas in Veritate , this article investigates the thinking of some of the historical scholars of the Italian Economia Aziendale ( EA ), by focusing on the concept of azienda , in order to reinterpret in a more humanistic way the role of business organizations in society. By linking CST and EA , the dichotomy between for-profit and not-for-profit organizations and the stereotype of the so-called business amorality that has, for a long time, driven business managers can be transcended. The conclusions imply a forward-looking application of the ethical concepts embedded in the Italian science of EA. (shrink)

The logic of gift and gratuitousness in business activity raised by the encyclical Caritas in Veritate stresses a deeper critical evaluation of the category of relation. The logic of gift in business includes two aspects. The first is considering the logic of gift as a new conceptual lens in order to view business relationship beyond contractual logic. In this view, it is crucial to see the circulation of goods as instrumental for the development of relationships. The second aspect is to (...) qualify the relationships established through the gift, and to think about the motivation in gift-giving, which has an ethical content. We give because we have received, and through gift-giving we develop relationships that have a high ‘bonding value’. Analysing the logic of gift in business management may permit us to gain an understanding of the ambiguity of gift-giving in organizations. Looking at the relationships between organizations and employees, and organizations and customers, we can discover why the logic of gift is often misunderstood or abused in its application, and how it should be applied to be more consistent with the message of Caritas in Veritate. (shrink)

This reflection focuses on what insights Catholic Social Teaching can provide for corporate governance. I argue that the ‘standard’ agency theory is overly reductionist and insufficiently incorporates important economic limitations as well as human frailty. As a result, such agency theory insufficiently distinguishes firms from markets, which can easily relativize how we treat others and facilitate rationalization of unethical behavior. I then explore how three pillars of CST—human dignity, solidarity, and subsidiarity—can help overcome these limitations. CST proposes a vision of (...) the business corporation as a community of persons, working together in cooperative business relationships toward the shared purpose of contributing to human flourishing. (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)

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)

This book looks at the governance of values-based organizations, which are organizations with an ideal mission and identity. Examples of these VBOs include non-profit organizations, charities, NGOs, environmental, educational or cultural organizations, and social enterprises. The main objective of any VBO is to evolve and grow without losing its identity, to which its survival is linked in the middle and long run. The focus of the book is the study of the relational and motivational dynamics during identity crisis, using critical (...) mass models and Hirschman's "exit and voice" framework. This book analyses the dynamics that arise in VBOs when ideal quality deteriorates. On the basis of Hirschman's ''exit and voice'' model, it analyses the mechanism that encourages the best subjects, the ones intrinsically motivated who care most about the mission and ideal quality of the organization, to leave the organization if their voice is ignored. By combining Hirschman's and a ''critical mass'' model, it is shown that the possible cumulative effects caused by the ''exit'' of the intrinsically motivated members, which can bring the organization into a deterioration process. This book offers an analysis of these phenomena, which are usually studied in sociology or political science, by using an economic approach and the language of evolutionary game theory. To combine sociological politics and economics theoretical tool in order to explore crisis in organizations can be considered the main original contribution of this book. (shrink)

What contributions could we expect from Catholic Social Teaching (CST) on human dignity in relation to the dignity of work? This essay begins with an explanation of CST and its relevance for secular audiences. It then proceeds to identify the main features of human dignity based on the notion of imago Dei in CST. Next comes an analysis of the dignity of work in CST from which two normative principles are derived: the precedence of duties over rights and the priority (...) of the subjective dimension of work over the objective dimension. Afterwards, the “right to work” and the “rights of workers” are engaged with from this normative perspective, particularly within the context of globalization. (shrink)

In the last decade, scholars have rediscovered the Italian tradition of Civil Economy and the different vision of the market it offers, one that is anchored on reciprocal assistance in market exchange relationships. So far, scholars are discussing Civil Economy especially in the fields of the history of economic though and in economics and philosophy. Nevertheless, this article proposes looking also at business ethics and organizational studies through the lens of Civil Economy, especially considering the notion of virtue provided by (...) civil economists. In particular, it sets forth an organizational model that derives from Civil Economy, i.e. the agape-based organization. (shrink)

Tasubinsa is a "Special Employment and Occupational Center" constituted in accordance with Spanish Law where 90% of the workers have mental, sensorial or physical impairments of at least 30%. Its positive experience of more than 15 years provides entirely different responses from mainstream neoclassical theory (transaction cost theory, agency theory, and shareholder theory) to basic questions such as "What is a firm?", "What is its purpose?", "Who owns a firm?", and "What do a firm's owners seek?". The article discusses how (...) these different premises give rise to a distinctive corporate culture centered on the handicapped person. (shrink)

The encyclical proclaims the centrality of human development, which includes acting with gratuitousness and solidarity in pursuing the common good. This paper considers first whether such relationships of gratuitousness and solidarity can be analysed through the prism of traditional theories of social psychology, which are highly influential in current management research, and concludes that certain aspects of those theories may offer useful tools for analysis at the practical level. This is contrasted with the analysis of such relationships through Aristotelian virtue (...) ethics (in particular as interpreted by MacIntyre 1985 , 1998 , 1999 ), which is emerging as a strong force in the field of business ethics, and which has strong conceptual similarities with the ideas put forward by Benedict XVI. Aristotelian virtue ethics offers a better fit with the aims of the encyclical at the theoretical level but it presents a number of challenges at the practical level, which the paper suggests may be addressed through the integration in its analysis of human action of models derived from social psychology. (shrink)

Recently, Amartya Sen and Martha Nussbaum have developed the capabilities approach to provide a model for understanding the effectiveness of programs to help the developing nations. The approach holds that human beings are fundamentally free and have a sense of human dignity. Therefore, institutions need to help people enhance this dignity by providing them with the opportunity to develop their capabilities freely. I argue that this approach may help support business ethics based on virtue. Since teleology has become problematic, virtue (...) ethics has had difficulty giving itself an ultimate justification. By combining virtue ethics with the capabilities approach, it becomes possible to ground virtue ethics on the basis of the existence of human dignity. This frees virtue ethics of the need for a strict teleology, replacing it with the notion that people must work to develop the capabilities of others although those capabilities are not pointed toward a definite goal. I further suggest that by grounding virtue ethics in capabilities, the actions of a virtuous manager become clearer. Rather than simply charging a manager with serving the public, the manager is charged with serving the stakeholders in a way that develops their capabilities. For example, a manager should not just give their employees what is just but must give them the environment and the encouragement to grow and to find fulfillment in their job. (shrink)

ABSTRACT:Giving without the expectation of reward is difficult to understand in organizational contexts. In opposition to a logic based on self-interest or a sense of duty, a “logic of gift” has been proposed as a way to understand the phenomenon of free, unconditional giving. However, the rationale behind, and effects of, this logic have been under-explored. This paper responds by first clarifying the three logics of action—the logic of exchange, the logic of duty, and the logic of gift—and then explains (...) how their balanced integration promises to enhance organizational life and outcomes. Having explicated the unique character and contributions of the logic of gift, the paper further suggests practical implications for management. Encouraging the logic of gift fosters more humane relationships within organizations and to enable individuals to be generous in ways that inspire trust and promote creativity. (shrink)

ABSTRACT:After a brief historical introduction, three interpretations of dignity in relation to management theory and business ethics are elaborated: Dignity as a general category, Human Dignity as Inherent and Universal, and Human Dignity as Earned and Contingent. Next, two literature reviews are presented under the headings of “Dignity and Business Research” and “Dignity and Business Ethics Research.” The latter discussion identifies three subcategories of business ethics research involving human dignity: the role of dignity as a cornerstone for paradigmatic shifts, the (...) role of dignity as the ‘ultima ratio’ for the protection of human rights, and the role of dignity in organizing business practices. The article concludes with summaries of the three articles chosen for this special section. (shrink)

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)

This paper seeks to contribute to the discussion on national corporate social responsibility plans from the perspectives of the three logics as articulated in Caritas in Veritate, by using the Irish national CSR plan as an example. Good for Business, Good for the Community: Ireland’s National Plan on Corporate Social Responsibility 2014–2016 maintains that CSR activities can enable organisations to build relationships and trust with communities. One of the consequences of the 2008 financial crisis was the decrease in trust in (...) banking systems and in business more broadly. It is well recognised that relationships of trust are essential to the life of the market, the state and civil society. Pope Emeritus Benedict XVI’s Caritas in Veritate contends that corresponding to the life of the market, the state and civil society are three logics: the logic of exchange, the logic of public obligation and the logic of gift. This paper proposes that the normative framework of the three logics of Caritas in Veritate can be read into the Irish national CSR plan. This paper argues that the examples of CSR initiatives proffered by the plan could point organisations in the direction of the logic of gift and therefore enable the rebuilding of relationships of trust with citizens and communities. (shrink)

ABSTRACTDrawing upon the theoretical debate on the concept of common good involving, in particular, Sison and Fontrodona, I aim to show how the common good principle can serve as the basis for a new diversity perspective. Each of the three dominant diversity approaches—equality, diversity management, and inclusion—runs the ethical risk of focusing on community or individual levels, or on particular disciplines—economic, social, or moral. This article demonstrates that the common good principle could mitigate the ethical risks inherent to each of (...) these diversity approaches. There are three positive aspects to a comprehensive common good perspective: 1) it includes considering different community levels, which it connects by subsidiarity, 2) it embraces the moral, social, and economic fields, which it connects by teleological hierarchy, and 3) it avoids the risk of exclusion by generating a sense of solidarity. (shrink)