Social contract theory has been criticized as a “theory in search of application.” We argue that incorporating the nano, or individual, level of analysis into social contract inquiry will yield more descriptive theory. We draw upon the psychological contract perspective to address two critiques of social contract theory: its rigid macro-orientation and inattention to the process of contract formation. We demonstrate how a psychological contract approach offers practical insight into the impact of social contracting on day-to-day human interaction. We then (...) articulate several potentially testable propositions that emerge from this nano-level perspective. (shrink)

While the business ethics literature has devoted a tremendous amount of discussion in recent years to the question of whether the corporate manager has obligations to parties other than shareholders, it has failed to apply any of its insights to particular ethical concerns. This leaves the corporate manager with almost no guidance for resolving particular dilemmas he or she encounters. I bridge the gulf between theory and practice by focusing on the issue of corporate downsizing. I argue that corporate downsizing (...) is, in manyinstances, morally contentious. (shrink)

Expectations and possibilities for employee loyalty are shifting rapidly, particularly in the for-profit sector. I explore the natureof employee loyalty to the organization, in particular, those elements of loyalty beyond the notion of the ethical demands of employeeloyalty. I consider the moral significance of loyalty for the employee and whether the development of ties of loyalty to the workorganization is in fact a good thing for the employee or for the employer. I argue that employees have a natural inclination to (...) extendloyalty to the organization and that organizations consequently have an obligation to make clear to employees the degree to which theorganization will recognize and reward employee loyalty. (shrink)

Neither employer expectations of loyalty, nor good treatment of employees by employers, nor employee appreciation of employers, nor the duty of nonmaleficence, nor the intention to be loyal, nor the duty not to act disloyally provide a basis for a moral or ethical duty of employee loyalty. However, in addition to the law, a pledge to be loyal can obligate one to be loyal. But if the specific content of such a pledge is unstated, the conduct required by the pledge (...) may be indefinite. Moreover, the content and implications of loyalty are fluid, varying from context to context. Consequently, there is only a limited basis for the thesis that employees owe loyalty to their employers. (shrink)

Discussions of whistleblowing and employee loyalty usually assume either that the concept of loyalty is irrelevant to the issue or, more commonly, that whistleblowing involves a moral choice in which the loyalty that an employee owes an employer comes to be pitted against the employee''s responsibility to serve public interest. I argue that both these views are mistaken and propose a third view which sees whistleblowing as entirely compatible with employee loyalty.

When loyalty is discussed, a very rare thing in recent years, it is sometimes listed as one of the virtues and just as often derided. Its relationship to the virtues, or to the other virtues, is difficult to discern, and that is at least partly because the role that judgement plays in loyalty seems odd. The argument of this paper is that there is a core value to loyalty, and that understanding this core value is of critical importance in understanding (...) the virtues despite the fact that loyalty is not itself one of them. I shall suggest at the end of the paper that it is the raw material of the virtues and of at least some vices. (shrink)

The results of a survey of business professionals verified a relationship between perceptions of corporate citizenship and organizational commitment. More important, the results demonstrated that the relationship between corporate citizenship and organizational commitment was stronger among employees who believe highly in the importance of the social responsibility of businesses. The results also indicated that the ethical measure of corporate citizenship was a stronger predictor of organization commitment than the economic, legal, and discretionary measures. Last, the results revealed that the discretionary (...) measure was more strongly associated with organizational commitment among female employees. (shrink)

The recent recession only adds to the widespread fear that loyalties in the business world are rapidly becoming obsolete. This article spells out some of the history that has put loyalty in jeopardy and some of the characteristics of this affecton. It gives reasons why it will not disappear from the workplace.The above analysis is then followed by a contrast between past and present motivations for work and a description of the workplace of the future according to three authors. Since (...) all of these address loyalty issues directly or indirectly, there follows an analysis of the new loyalties that can be anticipated or are beginning to emerge in the workplace and the role of the manager in managing these. The article concludes by placing these future loyalties within a framework inspired by Josiah Royce. (shrink)

A promotion of concepts of corporate family and employee participation as well as euphemisms which stress employee-employer long-term continuity makes the loss of loyalty flowing from downsizings and mass firings as well as corporate restructurings more difficult both for the employer and employee. The promotion of reciprocal obligations between employer and employee misleads both into a belief system which is to their mutual disadvantage.Corporate semanatics that soften employment realities and the implications of dislocation with positive rhetoric increases the sense of (...) failure and guilt on the part of both employer and employee. Unrealistic expectations create hostility. If employment dislocation is seen as part of a continual economic evolution, not shrouded in semantic double-speak, loss of employment no longer becomes an outrageous afront to the dignity of those involved but rather a normal process of economic change and renewal. (shrink)

Today's complex and decentralized organization gives rise to organizational needs for both loyalty and institutionalized whistle blowing. However, ethicists see a contradiction between both needs. This paper argues there is no such contradiction. It shows why earlier attempts to go beyond the dilemma are not satisfying. The solution proposed in this paper starts from an organizational perspective instead of an individual one. It does so by reframing the concept of loyalty into “rational loyalty”. This means that the object of loyalty (...) is not the physicality of an organization, but its corpus of explicit mission statement, goals, value statement and code of conduct. An implication is that organizations are – as their side of the duty of loyalty – obliged to institutionalize whistle blowing. (shrink)

The last years of the 20th Century have been somewhat contradictory with respect to values like loyalty, trust or truthfulness. On the one hand, (often implicitly, but sometimes very explicitly), self-interest narrowly defined seems to be the dominant force in the business world, both in theory and in practice. On the other hand, alliances, networks and other forms of cooperation have shown that self-interest has to be at least "enlightened".The academic literature has reflected both points of view, but frequently in (...) an ambiguous way, since the concepts of loyalty and trust are somewhat elusive and equivocal. This paper attempts to analyze the concept of loyalty in depth, examining the different conceptions about the word that can be found in the literature. We begin by going to the management classics (specifically, Follett, Barnard and Simon), and we then turn to the anthropological approach of Pérez López (1993), with its built-in ethical analysis, and show how trust and loyalty are crucial to the development of organizations. We end by suggesting in what ways loyalty and trust can be created and fostered in organizations. (shrink)

Loyalty within the firm, though praised by some, is criticized by others. An analysis of the historical and current significance of theconcept of loyalty can aid in both understanding its critics and responding to them. Loyalty in the business world is generallyunderstood in three ways: i) transactional retention, ii) sentimental attraction, and iii) willingness to commit oneself. In the third type,the commitment to adhere to a person, cause, or institution may contribute to human flourishing and therefore generate the humanvirtue of (...) loyalty. The human virtue of loyalty is as far from fanaticism as it is from the betrayal of legitimate commitments freely undertaken. As with all virtues, its content must be rationally determined. Loyalty thus understood enhances the humanity of both persons and business firms and contributes to heightened cohesion and cooperation within the firm. Moreover, according to some recent research, managing a business on the basis of loyalty can enhance economic results. (shrink)

The papers by Mele, Randels, and Schrag call attention to the proper work that the concept of loyalty can perform. All threeauthors argue that loyalty is not taken seriously enough in modern corporations. As Mele, Randels, and Schrag independently ascribespecial status to the concept of loyalty, their analyses converge along numerous conceptual margins. Along these margins, a singularconception of loyalty comes into focus. Along these margins, we can see Simultaneously why each author assigns extraordinary status to loyalty and why, ironically, (...) each turns the special concept of loyalty over to the service of conventional management thinking. Mele,Randels, and Schrag leave it for us to ponder whether this ironic twist is unique to the concept of loyalty. (shrink)

Organisational politics can raise the problem of “dirty hands,” illustrated in this paper by an example drawn from a textbook on organisation theory. The initial question is whether the main character has different ethical and political obligations, but this leads on to the question to what extent we can distinguish various different categories of obligation. The example may be of special interest because of the importance of close personal relationship in organisational politics, which brings the dirty hands problem together with (...) the question to what extent friendships generate distinctive obligations. However, it is doubtful whether the allocation of obligations to different categories can be sustained in a useful way. It may be that we can put aside loyalty to an organisation, as a consideration which does not generate any distinctive obligation, but balancing other factors against one another may require the sort of judgment that has sometimes been called “political wisdom,” and sometimes “moral imagination.”. (shrink)

Disloyalty is always a vice, but loyalty is not always a virtue, so ethical management should not seek simply whatever loyalty it can get. Loyalty can make it possible for us to trust each other, and, when it takes appropriate objects and does not take extreme or improper forms, it can lie at the heart of much of what makes life worthwhile. Hence, it is understandable that corporations and management seek loyalty despite the fact that it can so easily go (...) wrong. This paper deals with the issues of the grounds and objects of the employee loyalty that it is appropriate for management to seek. (shrink)