Who a manager is, as a person of moral character, has been only of tangential interest in social science definitions of management, which have focused on functions, roles, behaviors, and environmental influences. But how do managers themselves speak of managerial excellence? This paper answers this for a particular corporation, based on a three-phased research process that deliberately imposes no descriptive or normative categories, but allows the answer to emerge, listening to what managers themselves say when discussing excellent managers and their (...) behaviors. This approach finds that: (1) virtue ethics and virtue language is fluently used by practicing managers, (2) virtue language is important to understanding managerial excellence, and (3) whereas the set of virtues defining the excellent manager can be expected to be dependent on the societal, industry, and organizational context, such a set of manager virtues can be identified and prioritized within a particular organizational milieu. The implication is that, once an organization's management better understands the meaning of the excellent manager in terms of the virtue language already used by its own employees, it is better equipped to implement a practical ethic of virtues, one helpful toward recognizing and developing excellent managers. Ethics researchers are challenged to increase their understanding of extant virtue language as the basis for a renewed development of virtue ethics theory and applications. (shrink)

This paper proposes that managers add an attention to virtues and vices of human character as a full complement to moral reasoning according to a deontological focus on obligations to act and a teleological focus on consequences (a balanced tripartite approach). Even if the criticisms of virtue ethics cloud its use as a mononomic normative theory of justification, they do not refute the substantial benefits of applying a human character perspective – when done so in conjunction with also-imperfect act-oriented perspectives. (...) An interactive tripartite approach is superior for meeting the complex requirements of an applied ethic. To illustrate how deficiencies of a "strong" virtue ethics formulation can be overcome by a balanced tripartite approach, this paper compares normative leadership paradigms (each based on a combination of virtue, deontology, or consequentialist perspectives) and the dangers inherent in each. The preferred paradigm is servant leadership, grounded in a tripartite ethic. Effective application of such an ethics approach in contemporary organizations requires further empirical research to develop a greater understanding of the moral language actually used. Meeting this challenge will allow academics better to assist practicing managers lead moral development and moral reasoning efforts. (shrink)

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)

Fragments of Aristotle’s lost Protrepticus seem to offer inconsistent arguments for the value of contemplation (one argument appealing to contemplation's uselessness, the other appealing to its utility). In this paper, I argue that these arguments are mutually consistent. Further, I argue that, contrary to first appearances, Aristotle has resources in the Protrepticus for explaining how contemplation, even if it has divine objects, can nevertheless be useful in the way in which he claims, viz., for providing cognitive access to boundary markers (...) (horoi) of the human good. (shrink)

In this issue we combine four stand-alone articles with another four articles that form part of a special theme. In doing so, we stretch a very broad spectrum, from micro-level behaviour to metaphysics.

This paper serves both as a discussion of Henry’s (Ethical Theory Moral Practice, 5:255–270, 2002) interpretation of Aristotle on the possibility of akrasia – knowing something is wrong and doing it anyway – and an indication of the importance of desire in Aristotle’s account of moral reasoning. As I will explain, Henry’s interpretation is advantageous for the reason that it makes clear how Aristotle could have made good sense of genuine akrasia, a phenomenon that we seem to observe in the (...) real world, while maintaining non-trivial distinctions between temperance (sôphrosunê), self-indulgence (akolasia), self-control (enkrateia) and akrasia. There are, however, some interpretive challenges that follow from Henry’s account and this paper is intended to explain and resolve those. (shrink)

Abstract:A synthesis of the two theoretical bases of business ethics—normative philosophy and descriptive social science—is called for. Examples from the literature are used to demonstrate that to ignore the descriptive aspects of moral behavior is to risk unreal philosophy, and that to ignore the normative aspects is to risk amoral social science. Business ethics is portrayed as a single unified field, in which fact-value distinctions are inappropriate.

The purpose of this article is to explain the differences between neo-Aristotelian virtue and positive organizational virtuousness from the virtue ethics perspective. Most studies use virtues and virtuousness interchangeably. A few others try to explain their differences from the positive organizational science perspective. Although closely related, we believe that these two notions are not identical. If we understand neo-Aristotelian virtue correctly, then it cannot be judged exclusively on what is externally verifiable, as is the case with virtuousness. For these reasons, (...) we attempt our own differentiation, highlighting the gains and losses realized in the migration from neo-Aristotelian virtue to positive organizational virtuousness, and establishing guideposts to meaningfully combine the strengths of both concepts. (shrink)

Abstract 1 This paper makes a preliminary case for a central and radical claim. I begin with Bernard Williams? seldom-faced argument that integrity cannot be a moral virtue because it lacks two key ingredients of moral virtues, namely a characteristic thought and motivation. Whereas, for example, generosity involves the thought that another could use assistance, and the motivation to actually give assistance, integrity lacks these two things essential to morally excellent responses. I show that several maneuvers aimed at avoiding Williams? (...) challenge fail and that others are likely to remain unpersuasive. The paper concludes by offering an argument to the best explanation: Williams? important insight is best explained by the supposition that integrity is an epistemic virtue, and an epistemic virtue of a practical sort. (shrink)

This article echoes those voices that demand new approaches and ‹senses’ for management education and business programs. Much of the article is focused on showing that the polemic about the educative model of business schools has moral and epistemological foundations and opens up the debate over the type of knowledge that practitioners need to possess in order to manage organizations, and how this knowledge can be taught in management programs. The article attempts to highlight the moral dimension of management through (...) a reinterpretation of the Aristotelian concept of practical wisdom. I defend the ideas that management is never morally neutral and that Aristotelian practical wisdom allows the recovery of moral considerations in management practice. I analyze the impact and implications that the introduction of practical wisdom in business schools entails for the conception and objectives of management education. This view reconfigures management education in terms of attention to values, virtues and context. Therefore, management programmes should prepare students to critically evaluate what they hear and to make decisions coherent with their values and virtues. In the final section, I reflect on the pedagogical implications of this approach. I point out that an integrated model of ethics and practical wisdom promotes education of cognition and education of affect as well. I provide an example to illustrate my perspective and to support my conclusions. (shrink)

Within contemporary discussions on organizational wisdom, management scholars frequently turn to Aristotle’s work to conceptualize wisdom as phronesis, or practical wisdom. Contrary to the prevailing view, this paper argues that Aristotle did not propose an exclusively practical or particularistic conception of wisdom but, instead acknowledged that wisdom broadly conceived consists of two types of intellectual virtue: theoretical wisdom and practical wisdom. Aristotle’s ultimate position regarding the relations between sophia and phronesis has remained, however, ambiguous, giving rise to different interpretations, and, (...) more substantively, to the major appropriations of Aquinas, Heidegger and Gadamer. An analysis of the philosophical underpinnings of exemplary contributions to management wisdom suggests that research has predominantly applied Heideggerian and Gadamerian understandings of Aristotelian wisdom, while an Aquinian interpretation is largely absent in contemporary elaborations. Interpreting the Aristotelian notion of wisdom as dedicated purely to practical phronesis narrows the discussion on the nature of wisdom within an Aristotelian framework in ways that do not give full credit to the breadth and complexity of Aristotle’s thought. (shrink)

The notion of habit used in neuroscience is an inheritance from a particular theoretical origin, whose main source is William James. Thus, habits have been characterized as rigid, automatic, unconscious, and opposed to goal-directed actions. This analysis leaves unexplained several aspects of human behavior and cognition where habits are of great importance. We intend to demonstrate the utility that another philosophical conception of habit, the Aristotelian, may have for neuroscientific research. We first summarize the current notion of habit in neuroscience, (...) its philosophical inspiration and the problems that arise from it, mostly centered on the sharp distinction between goal-directed actions and habitual behavior. We then introduce the Aristotelian view and we compare it with that of William James. For Aristotle, a habit is an acquired disposition to perform certain types of action. If this disposition involves an enhanced cognitive control of actions, it can be considered a “habit-as-learning”. The current view of habit in neuroscience, which lacks cognitive control and we term “habit-as-routine”, is also covered by the Aristotelian conception. He classifies habits into three categories: (1) theoretical, or the retention of learning understood as “knowing that x is so”; (2) behavioral, through which the agent achieves a rational control of emotion-permeated behavior (“knowing how to behave”); and (3) technical or learned skills (“knowing how to make or to do”). Finally, we propose new areas of research where this “novel” conception of habit could serve as a framework concept, from the cognitive enrichment of actions to the role of habits in pathological conditions. In all, this contribution may shed light on the understanding of habits as an important feature of human action. Habits, viewed as a cognitive enrichment of behavior, are a crucial resource for understanding human learning and behavioral plasticity. (shrink)

This paper applies Plato's cave allegory to Enron's success and downfall. Plato's famous tale of cave dwellers illustrates the different levels of truth and understanding. These levels include images, the sources of images, and the ultimate reality behind both. The paper first describes these levels of perception as they apply to Plato's cave dwellers and then provides a brief history of the rise of Enron. Then we apply Plato's levels of understanding to Enron, showing how the company created its image (...) and presented information to support that image, and how the public eventually emerged from the cave to realize the truth about Enron's actual accounting practices and financial state, which led to the corporation's downfall. We find Plato's allegory both useful in analyzing the relationship between Enron and the public and instructive about the power and moral responsibility of Enron's executives. (shrink)

This paper applies Plato’s cave allegory to Enron’s success and downfall. Plato’s famous tale of cave dwellers illustrates the different levels of truth and understanding. These levels include images, the sources of images, and the ultimate reality behind both. The paper first describes these levels of perception as they apply to Plato’s cave dwellers and then provides a brief history of the rise of Enron. Then we apply Plato’s levels of understanding to Enron, showing how the company created its image (...) and presented information to support that image, and how the public eventually emerged from the cave to realize the truth about Enron’s actual accounting practices and financial state, which led to the corporation’s downfall. We find Plato’s allegory both useful in analyzing the relationship between Enron and the public and instructive about the power and moral responsibility of Enron’s executives. (shrink)

The focus of this paper is Aristotle's solution to the problem inherited from Socrates: How could a man fail to restrain himself when he believes that what he desires is wrong? In NE 7 Aristotle attempts to reconcile the Socratic denial of akrasia with the commonly held opinion that people act in ways they know to be bad, even when it is in their power to act otherwise. This project turns out to be largely successful, for what Aristotle shows us (...) is that if we distinguish between two ways of having knowledge (potentially and actually), the Socratic thesis can effectively account for a wide range of cases (collectively referred to here as drunk-akrasia) in which an agent acts contrary to his general knowledge of the Good, yet can still be said to know in the qualified sense that his actions are wrong. However, Book 7 also shows that the Socratic account of akrasia cannot take us any farther than drunk-akrasia, for unlike drunk-akrasia, genuine akrasia cannot be reduced to a failure of knowledge. This agent knows in the unqualified sense that his actions are wrong. The starting-point of my argument is that Aristotle's explanation of genuine akrasia requires a different solution than the one found in NE 7 which relies on the distinction between qualified and unqualified knowing: genuinely akratic behaviour is due to the absence of an internal conflict that a desire for the proper pleasures of temperance would create if he could experience them. (shrink)

To teach that being ethical requires knowing foundational ethical principles – or, as Socrates claimed, airtight definitions of ethical terms – is to invite cynicism among students, for students discover that no such principles can be found. Aristotle differs from Socrates in claiming that ethics is about virtues primarily, and that one can be virtuous without having the sort of knowledge that characterizes mathematics or natural science. Aristotle is able to demonstrate that ethics and self-interest may overlap, that ethics is (...) largely compatible with common sense, and that Aristotle’s virtuous person can make ethical decisions rationally. Case studies can help students improve their ethical perception and keep their values from being overwhelmed by corporate culture. (shrink)

As a philosopher, whose theory about economics and business is systematically connected to a moral and political philosophy, Aristotle provides a rich conceptual framework to reflect upon personal wellbeing, the wealth of households, and the welfare of the state. Even though Aristotle has mainly been portrayed as an enemy of business, interest in his teachings has been on the rise among management scholars. Several articles have examined Aristotle's position with regard to current managerial approaches such as total quality management, knowledge (...) management, crisis management, and networking. Even though Aristotle is a constant reference point for business ethics scholars, only rarely have there been attempts to see what consequences his thinking would have for reorienting business philosophy and organizational strategy. In this study, we wiD outline how Aristotle's theory of household management can be applied to the management of modern corporations. We argue that conceptions of chrematistike and oikonomia provide a basis to discuss the relationship between business and society and to draw important conclusions for business management. (shrink)

While much has been written on phronesis, there is a dearth of empirical work on the how the concept can be developed and implemented in practice, particularly in an educational setting. To address this problem, characteristics of phronesis were identified through a review of current literature and an examination of related themes from a special issue of the Philosophy of Management Journal on the philosophy of innovation. The implementation of the concept was investigated using an illustrative study of ongoing work (...) aimed at embedding phronesis in an innovation educational module. The study will contribute to the nascent debate by providing evidence of embedding Aristotle’s phronesis in the curriculum of future managers, in this case Engineering and Business students, working in cross-functional teams. A schema is proposed, based on concepts distilled from the literature and the illustrative study, to examine whether an educational project cultivates phronesis among the students. (shrink)

Although theory refers to organizational culture as an important variable in corrupt organizations, only little empirical research has addressed the characteristics of a corrupt organizational culture. Besides some characteristics that go hand in hand with unethical behavior and other features of corrupt organizations, we are still not able to describe a corrupt organizational culture in terms of its underlying assumptions, values, and norms. With a qualitative approach, we studied similarities of organizational culture across different corrupt organizations. In this study, we (...) performed content analysis on interviews of 14 independent experts about their experience with corrupt organizations. With this approach, we gained insights about different corrupt organizations spanning different branches (e.g., government, foreign trade, pharmacy, sports, building industry). We found that corrupt organizations perceive themselves to fight in a war, which leads to their taken-for-granted assumption that “the end justifies the means”. This assumption inspires many values and norms of the organizational culture. An important value in a corrupt organization is “security”, and an important norm is punishment of deviant (i.e., non-corrupt) behavior. Furthermore, managers and employees differ in their perception of organizational culture. While the management endorses values, such as success, results, and performance, and implements these values in their norms of goal setting, employees make use of rationalization strategies and endorse values of security and team spirit. (shrink)

This paper uses an innovative way to screen stocks and analyzes the relationship between corporate environmental responsibility and long-run stock returns. By our definition, an environmentally responsible (green) company gives no environmental concern and shows environmental strength(s). Using 20 years’ data of 1992–2011, we find evidence that environmentally responsible company outperforms, in the 4th to 7th year after the screening year. An equal-weighted environmentally responsible portfolio earned an annual four-factor alpha of 4.06 % in the 4th year, 3.00 % above (...) industry benchmarks, and 3.87 % above characteristic benchmarks. The results are robust to alternative portfolio weighting methodologies, controlling for firm characteristics, and the removal of outliers. Testing using industry-adjusted Tobin’s Q, we find consistent evidence that environmental strength creates firm value. We argue that environmental responsibility is an intangible asset, likely to be undervalued by the market, especially in the long horizon, thereby causing environmentally responsible companies to exhibit long-horizon excess returns. (shrink)

Nothing is more common in moral debates than to invoke the names of great thinkers from the past. Business ethics is no exception. Yet insofar as business ethicists have tended to simply mine abstract formulas from the past, they have missed out on the potential intellectual gains in meticulously exploring the philosophic tradition. This paper seeks to rectify this shortcoming by advocating a close reading of the so-called “great books,” beginning the process by focusing on Aristotle. The Nichomachean Ethics and (...) The Politics points to Aristotle’s emphasis on tying business morality to a universal conception of the good life. This conception defines personal happiness to chiefly consist in practicing the virtues, a life in which both desire and the pursuit of wealth is kept under check. According to Aristotle, virtue reaches its height with the exercise of the intellectual virtues of prudence and wisdom – the first manifest in the leadership of organizations, and the second in the philosophic search for truth. From an Aristotelian point of view, therefore, the greatest ethical imperative for business is to give individuals opportunities to thoughtfully participate in the management of company affairs and to contemplate the ultimate meaning of things. (shrink)

Management has tended to be established as science (Episteme) by using scientific methodologies and techniques. Although the era of Grand Theories has passed some time ago in social sciences, management has been still indicating the tendencies to develop ‘Grand Theories’. However, economic developments associated with globalization and the ‘Lehman brothers’ big bang in financial sector has shaken some assumptions about the nature of management as science and also about the methodologies by which management and entrepreneurship can or could be studied. (...) Specific shift to the future developments through Aristoteles’s intellectual virtue Phronesis has been traced in the work of theorists, such as Flyvbjerg, and others. They indicate new approach to organization studies, called phronetic organization research. In this paper, our exploration of research methodologies builds on Phronesis. Based on results of empirical study of business models in small and medium size companies in Slovenia, and extensive literature review we inductively build theoretical foundations for phronetic studies in the field of management and entrepreneurship and introduce the concept, called ‘phronetic bricolage’. It is based on understanding of management as ‘practical activity’ of ‘wise managers’ and bricolage—the research design (or approach) that builds knowledge from pieces of research from different fields, with different methods and various sources of data. We argue that phronetic bricolage is approach in management studies that links wisdom with complexity and variety of methods and sources of data. (shrink)

ABSTRACT:Although Alasdair MacIntyre has criticized both the market economy and applied ethics, his writing has generated significant discussion within the literature of business ethics and organizational studies. In this article, I extend this conversation by proposing the use of MacIntyre’s account of the virtues to conceive of management as a domain-relative practice that requires and develops practical wisdom. I proceed in four steps. First, I explain MacIntyre’s account of the virtues in light of his definition of a “practice.” Second, I (...) examine his distinction between “practices” and “institutions.” Third, I explain what I mean by a “domain-relative practice” and defend the claim that it is helpful to conceive of management in those terms. Finally, I highlight several features of practical wisdom as a virtue developed in and integral to standards of excellence within management as a domain-relative practice. (shrink)

ABSTRACT:The language of virtue is gaining wider appreciation in the philosophical, psychological, and management literatures. Ethicists and social scientists aim to integrate normative and empirical approaches into a new “science of virtue.” But, I submit, they are talking past each other; they hold radically different notions of what a virtue is. In this paper, I shall examine two conflicting conceptions of virtue, what I call the reductive and the non-reductive accounts of virtue. I shall critically study them and argue that (...) the non-reductive view is the best philosophical account of virtue and the only one that can account for the way we talk about virtue in business and in everyday life. We can only understand what it means to act virtuously through the examination of the attitudes, beliefs, desires, and inclinations of the virtuous agent. I shall illustrate the differences between the reductive and non-reductive accounts by considering the virtue of gratitude. (shrink)

HOW ARE WE TO UNDERSTAND THE PSYCHOLOGY OF VICE in Aristotle’s ethics? As many commentators have noted, it is by no means obvious that Aristotle’s scattered remarks about vice really add up to a coherent account. In several places Aristotle clearly assigns the leading role in the explanation of vicious action to reason. We see this, for example, in the unequivocal claim that acts expressing intemperance are “in accordance with choice”. This is important, in part because it provides a basis (...) for the distinction between vice and akrasia. Although both the intemperate and the akratic do what they ought not, the intemperate pursue their goal guided by reason and with “little or no appetite”, whereas the akratic act from appetite. What both pursue—and what both ought not pursue—is bodily pleasure. The difference is that the vicious pursue bodily pleasure because they think it is the central component in the good life. Thus, they choose pleasure as a good, indeed as the most important good. The akratic, on the other hand, pursue bodily pleasure as such and do so contrary to their conception of the good. (shrink)

ALTHOUGH Aristotle's work on akrasia has prompted numerous competing interpretations, at least one point seems clear: incontinent action is, for him, dependent upon some deficiency in the agent's cognitive condition at the time of action. But why, exactly, did he take this view? This question, my central concern in the present paper, is not just a query about Aristotle's understanding of incontinent action. It leads us at once into a tangled web of questions about his conception of human action and (...) its psychological antecedents, questions which careful attention to the issue at hand promises to illuminate. (shrink)