Abstract:We discuss the role that transnational corporations (TNCs) should play in developing global governance, creating a framework of rules and regulations for the global economy. The central issue is whether TNCs should provide global rules and guarantee individual citizenship rights, or instead focus on maximizing profits. First, we describe the problems arising from the globalization process that affect the relationship between public rules and private firms. Next we consider the position of economic and management theories in relation to the social (...) responsibility of the firm. We argue that instrumental stakeholder theory and business and society research can only partially solve the global governance issue, and that more recent concepts of corporate citizenship and republican business ethics deliver theoretically and practically helpful, fresh insights. However, even these need further development, especially with regard to the legitimacy of corporate political activity. (shrink)

This volume brings together about 50 scientists and researchers from the four corners of the world to redefine and anticipate tomorrow's values, and reflect on ...

The author argues that a continuing effort to avoid self-deception is the pre-requisite to any ethical analysis; that this effort cannot be altogether successful; that it is Iikely to even be dysfunctional in a variety of organizational contexts, perhaps particularly in the context of corporate middle management, but that it ought not therefore be ignored. It is contended that business ethicists should be committed to making the difficulties associated with self-scrutiny explicit. Finally, it is argued that in order to do (...) that Ilegitimately for the corporation, university based business ethicists must be willing to face up to parallel difficulties in the university generally and in the school of business in particular. (shrink)

This paper describes a flaw in the teaching of issues related to market economics and social justice at American institutions of higher learning. The flaw we speak of is really a gap, or an educational disconnect, which exists between those faculty who support market-based economies and those who believe capitalism promotes economic injustice. The thesis of this paper is that the gap is so wide and the ideas that are promoted are so disconnected that students are trapped into choosing one (...) or the other position (or neither) and are left unable to link the two sides of the discussion. Such an educational process is not one that produces free and reasoned discernment. In this paper, we briefly relate how we came to be aware of the disconnect and its harms. We present evidence that a pedagogical gulf exists within the teaching of markets and capitalism at American universities - faculty interviews, course syllabi, portions of the corpus of material generally referred to as Catholic Social Thought, as well as references to traditional, mainstream economic theory. Further, we give evidence of the confusion and frustration among students this gulf causes. We suggest possible reasons for the gulf-primarily through an investigation of the differences in underlying assumptions and misperceptions that exist between two divisions within universities. We conclude by suggesting a set of curricular changes designed to improve teaching. The authors' aim is not to change people's minds. It is to change their teaching. The authors believe that these curricular changes will leave students less frustrated and better prepared for a life of significant service - with improved critical thinking skills. (shrink)

Ethics instructors often use cases to help students understand ethics within a corporate context, but we need to know more about the impact a case-based pedagogy has on students’ ability to make ethical decisions. We used a pre- and post-test methodology to assess the effect of using cases to teach ethics in a finance course. We also wanted to determine whether recent corporate ethics scandals might have impacted students’ perceptions of the importance and prevalence of ethics in business, so we (...) used in-depth case studies of several of the major scandals (e.g., Enron, Tyco, Adelphia). Our results are somewhat surprising since studying ethics scandals positively impacts students’ ethical decision making and their perceptions of the ethics of businesspeople. (shrink)

At the heart of entrepreneurship are imagination, creativity, novelty, and sensitivity. It takes these qualities to develop a new product or service and bring it to market, to envision the possible impacts a new product may make and come up with novel and creative solutions to problems that may arise. These qualities go to make up what could be called the spirit of entrepreneurship, a spirit that involves the ability to handle the experimental nature of entrepreunerial activity. These same qualities (...) are crucial for moral decision making, and an ethical approach which emphasizes imagination, creativity, and has an experimental thrust is much better adapted to the entrepreneurial activity and much more relevant to the unique situations that entrepreneurs face. In this sense, the process approach to ethics developed in this article is a unifying framework that brings together the activity of entrepreneurship and moral decision making. (shrink)

This classic analysis of Western liberal capitalist society contends that capitalism harbors the seeds of its downfall, particularly by effecting a certain cultural tendency among its most successful subjects that is bound to corrode its very foundations. As such, it is a conservative critique employing cultural concerns precisely where Marx prioritized economic ones.

Depuis qu'elles existent, les sciences dites exactes se prétendent différentes des autres savoirs. Comment comprendre cette prétention? Faut-il, à la manière des épistémologues anglo-saxons ou de Karl Popper, tenter d'identifier les critères qui la justifient? Peut-on, suivant le modèle nouveau des études sociales des sciences, y voir une simple croyance? Ce livre propose un dépassement fructueux de l'opposition, apparemment irréconciliable, entre ces deux approches des sciences. Et si la tension entre objectivité scientifique et croyance était justement constitutive des sciences, enjeu (...) des pratiques inventées et réinventées par les scientifiques? Réussir à parler des sciences avec humour, sans en faire un objet de vénération, ni de dénonciation, en restant au plus proche de la passion des scientifiques, tel est ici le pari d'Isabelle Stengers. Mais ce livre ne se limite pas à un discours sur les sciences. Il s'agit bien plutôt de prolonger l'histoire de leur invention. Comment comprendre les liens multiples entre la science et les pouvoirs qui la mobilisent aujourd'hui? Comment concevoir les rapports entre science, expertise et démocratie? La nouveauté de L'invention des sciences modernes est de faire de ces différents problèmes intellectuels, pratiques et politiques les enjeux du processus par où pourrait s'inventer et se renouveler l'identité même des sciences. (shrink)

Business research and teaching institutions play an important role in shaping the way businesses perceive their relations to the broader society and its moral expectations. Hence, as ethical scandals recently arose in the business world, questions related to the civic responsibilities of business scholars and to the role business schools play in society have gained wider interest. In this article, I argue that these ethical shortcomings are at least partly resulting from the mainstream business model with its taken-for granted basic (...) assumptions such as specialization or the value-neutrality of business research. Redefining the roles and civic responsibilities of business scholars for business practice implies therefore a thorough analysis of these assumptions if not their redefinition. The taken-for-grantedness of the mainstream business model is questioned by the transformation of the societal context in which business activities are embedded. Its value-neutrality in turn is challenged by self-fulfilling prophecy effects, which highlight the normative influence of business schools. In order to critically discuss some basic assumptions of mainstream business theory, I propose to draw parallels with the corporate citizenship concept and the stakeholder theory. Their integrated approach of the relation between business practice and the broader society provides interesting insights for the social reembedding of business research and teaching. (shrink)

This paper argues that multinational corporations face levels of environmental and social responsibility higher than their national counterparts. Drawing on the literatures of stakeholder salience, corporate reputation management, and evidence from the confrontation between Shell and Greenpeace over the Brent Spar, in 1995, two mechanisms – international reputation side effects, and foreign stakeholder salience – are identified and their contribution in creating an environment more restrictive, in terms of environmental and social responsibility, is elaborated on. The paper concludes with discussing (...) the links of the work presented here with a number of ongoing debates within the filed of international business ethics, and the managerial implications of the two mechanisms identified. (shrink)

The debate over whether or not economics is value-free has focused on the fact-value distinction: “is” does not imply “ought.” This paper approaches the role of ethics in economics from a Thomistic perspective, focusing not on the content of economic analysis, but on the actions taken by economic researchers. Positive economics, when it satisfies Aristotle's definition of technique, enjoys a certain autonomy from ethics, an autonomy limited by a technique's dependence for guidance and justification on ethical reflection. The modern isolation (...) of technique from ultimate ends entails the risk of mistaking the proximate ends of economics for ultimate ends, especially when applying economic methods in new ways or to new social phenomena. (shrink)

Fraud and misconduct in scientific research appears to be increasing since 1980 when several cases were disclosed. Earlier instances were handled awkwardly, but the scientific community has since mobilized and issued guidelines about responding to allegations of misconduct and about the responsible conduct of research. Scientists, editors and the institutions of science are slowly learning how to cope with this problem.

Abstract:Most papers in this issue carefully analyze normative and empirical methodologies. I shall argue that (a) there is no purely empirical nor purely normative methodology; (b) some terms escape the division of the normative and descriptive. (c) Most importantly, dialogues such as this one point to a form of integration that allows us to reflect on what it is that each approach presupposes in its study of business ethics. Thus we have made progress in recognizing the importance of each methodology, (...) how each is dependent on the other, and how neither is singularly The Approach to business ethics. (shrink)

This paper acknowledges the paucity of attention regarding the development of ethics programs within an academic environment and describes in a case study how the Duquesne University schools of business attempted to introduce, integrate and promote its own ethics program. The paper traces the business school’s attention to mission statements, curriculum development, ethics policy, program oversight and outcome assessment. Lessons learned are offered as suggestions for others seeking to develop and implement an ethics program in their school.

This paper delineates the normative and empirical approaches to business ethics based upon five categories: 1) academic horne; 2) language; 3) underlying assumptions; 4) theory purpose and scope; 5) theory grounds and evaluation criteria. The goal of the discussion is to increase understanding of the distinctive contributions of each approach and to encourage further dialogue about the potential for integration of the field.

Capitalist societies are full of unacceptable inequalities. Freedom is of paramount importance. These two convictions, widely shared around the world, seem to be in direct contradiction with each other. Fighting inequality jeopardizes freedom, and taking freedom seriously boosts inequality. Can this conflict be resolved? In this ground-breaking book, Philippe Van Parijs sets a new and compelling case for a just society. Assessing and rejecting the claims of both socialism and conventional capitalism, he presents a clear and compelling alternative vision of (...) the just society: a capitalist society offering a substantial and unconditional basic income to all its members. Not just an exercise in political theory, this book reveals a new ideal of a free society and its meaning in the real world by drawing out its policy implications. It is essential reading for anyone concerned about the just society and the welfare state as we move into the twenty-first century. (shrink)

This paper delineates the normative and empirical approaches to business ethics based upon five categories: 1) academic horne; 2) language; 3) underlying assumptions; 4) theory purpose and scope; 5) theory grounds and evaluation criteria. The goal of the discussion is to increase understanding of the distinctive contributions of each approach and to encourage further dialogue about the potential for integration of the field.

This paper examines a model of income and quality of life that controls the love of money, job satisfaction, gender, and marital status and treats employment status (full-time versus part-time), income level, and gender as moderators. For the whole sample, income was not significantly related to quality of life when this path was examined alone. When all variables were controlled, income was negatively related to quality of life. When (1) the love of money was negatively correlated to job satisfaction and (...) (2) job satisfaction was positively related to both income and quality of life, income was negatively related to quality of life for full-time, high-income, and male employees. When these two conditions failed to exist, income was not related to quality of life for part-time, median- or low-income, and female employees. This model provides new insights regarding the impact of the love of money and job satisfaction on the income–quality of life relationship. (shrink)

. This paper reports the preliminary results from a semester-long ethics project at an AACSB accredited, regional comprehensive undergraduate school. This project culminated in an Ethics Awareness Week, which highlight a case study of the controversial EverQuest® multi-player online game. Issues of project planning and design are outlined, the dynamics of a business program-wide approach to ethics are social responsibility are presented, student survey results are presented and analyzed, and issues related to ongoing research are discussed. Nonparametric survey results indicate (...) that the greatest effect in student’s self reported enhanced understanding and interest in issues of business ethics is present when multiple pedagogical methods, e.g., case studies, lectures, assignments, and an Oxford-style debate, are applied by a number of faculty members over an extended time period. The paper concludes with a discussion of future research issues as well as a series of prescriptions for planning, organizing, and implementing such an extended activity. (shrink)

This paper describes and discusses the Enron Corporation debacle. The paper presents the business ethics background and leadership mechanisms affecting Enron''s collapse and eventual bankruptcy. Through a systematic analysis of the organizational culture at Enron (following Schein''s frame of reference) the paper demonstrates how the company''s culture had profound effects on the ethics of its employees.

: We discuss the role that transnational corporations should play in developing global governance, creating a framework of rules and regulations for the global economy. The central issue is whether TNCs should provide global rules and guarantee individual citizenship rights, or instead focus on maximizing profits. First, we describe the problems arising from the globalization process that affect the relationship between public rules and private firms. Next we consider the position of economic and management theories in relation to the social (...) responsibility of the firm. We argue that instrumental stakeholder theory and business and society research can only partially solve the global governance issue, and that more recent concepts of corporate citizenship and republican business ethics deliver theoretically and practically helpful, fresh insights. However, even these need further development, especially with regard to the legitimacy of corporate political activity. (shrink)

The empirical-normative split in business ethics is another manifestation of the fact-value problem that has existed betweenscience and philosophy for several centuries. This paper explores classical American pragmatism’s understanding of the fact-valuedistinction, showing how it offers a different way of understanding the empirical business ethics–normative business ethics issue.Unfolding the pragmatic perspective on this issue involves a focus on its understanding of both the nature of empirical inquiry and thenature of normative inquiry.

It is common for organizational theorists as well as business practitioners to speak of an organization''s visions, strategies, goals and responsibilities. This implies that collectivities have competencies normally attributed to individuals, i.e. to reflect, evaluate, learn and make considered choices. The article provides a series of reflections on the concept of consciousness in an organizational context. It is argued that, under certain conditions, it is both meaningful and efficacious to ascribe the competency for conscious and intentional behavior to organizations. The (...) arguments provided are based on empirical observations, common sense and deductive reasoning. (shrink)

It is common for organizational theorists as well as business practitioners to speak of an organization's visions, strategies, goals and responsibilities. This implies that collectivities have competencies normally attributed to individuals, i.e. to reflect, evaluate, learn and make considered choices. The article provides a series of reflections on the concept of consciousness in an organizational context. It is argued that, under certain conditions, it is both meaningful and efficacious to ascribe the competency for conscious and intentional behavior to organizations. The (...) arguments provided are based on empirical observations, common sense and deductive reasoning. (shrink)

According to an often repeated definition, economics is the science of individual choices and their consequences. The emphasis on choice is often used – implicitly or explicitly – to mark a contrast between markets and the state: While the price mechanism in well-functioning markets preserves freedom of choice and still efficiently coordinates individual actions, the state has to rely to some degree on coercion to coordinate individual actions. Since coercion should not be used arbitrarily, coordination by the state needs to (...) be legitimized by the consent of its citizens. The emphasis in economic theory on freedom of choice in the market sphere suggests that legitimization in the market sphere is “automatic” and that markets can thus avoid the typical legitimization problem of the state. In this paper, I shall question the alleged dichotomy between legitimization in the market and in the state. I shall argue that it is the result of a conflation of choice and consent in economics and show how an independent concept of consent makes the need for legitimization of market transactions visible. Footnotes1 For helpful comments and suggestions I am most grateful to Marc Fleurbaey, Alain Marciano, Herlinde Pauer-Studer, Thomas Pogge, Hans Bernhard Schmid, to seminar or conference participants in Aix-Marseille, Tutzing, Paris, and Amsterdam, and to two anonymous referees. (shrink)

What is so special about science? Taking up the old epistemological challenge, this article seeks to rephrase the question of scientific autonomy beyond conventional essentialist criteria of demarcation between science and society. The specificity of science is primarily sought in its studied `lack of haste', its socially sanctioned withdrawal from the swift pace of everyday life and from `faster' cultures such a politics and business. This `unhastened' quality defines science's peculiar delaying tactics, which systematically slow down and objectify ordinary conversations, (...) actions, and conflicts, attracting `slow' personalities who read and write more and talk less than the `fast cats' who are attracted to more decisionist, stress-driven and hasty cultures. Such a description, rather than claiming performative innocence, simultaneously expresses the ambition to strengthen what it characterizes, i.e. to liberate science from the stress and haste which are increasingly imposed upon it by the `external' pressures and performance criteria of enterprise culture and political correctness, and by the growing impact of media publicity and the academic celebrity system. In this fashion, the article simultaneously advances a new factual description of the specificity of scientific practice and a new normative/political project to enhance scientific and intellectual autonomy. (shrink)

The way in which accountability is currently employed in business ethics practice is based on a few central assumptions. It is assumed, for instance, that ethical failures result from the deliberate, rational decision-making of moral agents. A second important assumption is that there is a direct cause and effect relationship between the decisions and actions of individuals and the consequences of those decisions. Furthermore, the current approach towards accountability failures relies on the ability on legal sanctions to deter agents from (...) ethical lapses. This paper will argue that these three assumptions do not survive critical interrogation and that our understanding of accountability therefore has to be reconsidered. It will propose that accountability be reconceived as a relational responsiveness towards stakeholders. (shrink)

This paper argues that moral thinking is an essential management capability which strengthens organizations and contributes to theirperformance in the marketplace. The paper explains what moral thinking is, and addresses the most common reasons for considering it inappropriate or irrelevant to managerial practice. The argument provides a compelling rationale for the corporate ethics initiatives undertaken in recent years.

In this preliminary study, the authors extend Swanson's concept of normative myopia (the propensity of executives to downplay or ignore the values at stake in their decision making) by using it as a point of reference for studying executives' preference for high pay dispersion. Specifically, the authors designed a survey to examine hypothesized relationships among myopia, personality, and executives' preference for highly stratified organizational pay structures. Data from 133 executive respondents suggest that myopic executives tend to prefer top-heavy compensation systems. (...) In addition, the findings point to an inverse relationship between the personality factor Agreeableness and normative myopia, with the former offsetting the latter. The authors reject the alternative hypothesis that gender influences both agreeableness and myopia and conclude with some implications for business and society, including Swanson's proposition that normative myopia at the top contributes to a neglectful form of corporate social performance. (shrink)

The central role of corporate leaders in setting the ethical tone for their organization is widely accepted. Four well known former CEOs are profiled to illustrate how their managerial ethical leadership not only influenced their firms but also the practice of business. Insights are drawn from their writings and speeches as well as other sources which examine demonstrated leadership abilities. Their behavior not only provides examples of leadership but also is exemplary from an ethical point of view. The article concludes (...) with five common themes that describe these individuals and the essence of managerial ethical leadership. (shrink)

Despite the recent rash of corporate scandals and the resulting rush to address the problem by adding more laws and regulations,seemingly little attention has been paid to how the nature (not the substance) of rules may or may not affect ethical decision-making.Drawing on work in law, ethics, management, psychology, and other social sciences, this article explores how several characteristics of rules may interfere with the process of reaching and implementing ethical decisions. Such a relationship would have practical implications for regulatory (...) policy and managers of organizations, and the article concludes by suggesting how regulations and corporate ethics programs should be able to improve the ethical culture of business and enhance the ethical decision-making skills of employees. (shrink)

Despite the recent rash of corporate scandals and the resulting rush to address the problem by adding more laws and regulations,seemingly little attention has been paid to how the nature (not the substance) of rules may or may not affect ethical decision-making.Drawing on work in law, ethics, management, psychology, and other social sciences, this article explores how several characteristics of rules may interfere with the process of reaching and implementing ethical decisions. Such a relationship would have practical implications for regulatory (...) policy and managers of organizations, and the article concludes by suggesting how regulations and corporate ethics programs should be able to improve the ethical culture of business and enhance the ethical decision-making skills of employees. (shrink)

Forty-three years ago Max Weber observed that “the belief in the value of scientific truth is not derived from nature but is a product of definite cultures.” We may now add: and this belief is readily transmuted into doubt or disbelief. The persistent development of science occurs only in societies of a certain order, subject to a peculiar complex of tacit presuppositions and institutional constraints. What is for us a normal phenomenon which demands no explanation and secures many ‘self-evident’ cultural (...) values, has been in other times and still is in many places abnormal and infrequent. The continuity of science requires the active participation of interested and capable persons in scientific pursuits. This support of science is assured only by appropriate cultural conditions. It is, then, important to examine those controls which motivate scientific careers, which select and give prestige to certain scientific disciplines and reject or blur others. It will become evident that changes in institutional structure may curtail, modify or possibly prevent the pursuit of science. (shrink)

This paper develops a pragmatist approach to ethical business decision-making. It draws primarily on the work of John Dewey and applies his deliberative approach to ethics to the challenges of business practitioners. In particular the paper proposes the value of Dewey’s concept of dramatic rehearsal in emphasizing the task of “constructing the good” in ethical decision-making. The contribution of the paper is, first, to build on recent foundational work to bring American pragmatism into the mainstream business ethics literature; second, to (...) offer a perspective that is accessible to practitioners and integrates ethics into their daily tasks; and third, to identify a number of related research imperatives – in particular the importance of focusing efforts on gaining a deeper understanding of the deliberative process itself. (shrink)

We understand responsible leadership as a social-relational and ethical phenomenon, which occurs in social processes of interaction. While the prevailing leadership literature has for the most part focussed on the relationship between leaders and followers in the organization and defined followers as subordinates, we show in this article that leadership takes place in interaction with a multitude of followers as stakeholders inside and outside the corporation. Using an ethical lens, we discuss leadership responsibilities in a stakeholder society, thereby following Bass (...) and Steidelmeier’s suggestion to discuss “leadership in the context of contemporary stakeholder theory” (1999: 200). Moreover, from a relational and stakeholder perspective we approach the questions: What is responsible leadership? What makes a responsible leader? What qualities are needed? Finally, we propose a so-called “roles model” of responsible leadership, which gives a gestalt to a responsible leader and describes the different roles he or she takes in leading stakeholders and business in society. (shrink)