How do business leaders make ethical decisions? Given the significant and wide-spread impact of business people’s decisions on multiple constituents, how they make decisions matters. Unethical decisions harm the decision makers themselves as well as others, whereas ethical decisions have the opposite effect. Based on data from a study on strategic decision making by 16 effective chief executive officers, I propose a model for ethical decision making in business in which reasoning and intuition interact through forming, recalling, and applying moral (...) principles necessary for long-term success in business. Following the CEOs in the study, I employ a relatively new theory, rational egoism, as the substantive content of the model and argue it to be consistent with the requirements of long-term business success. Besides explaining the processes of forming and applying principles, I briefly describe rational egoism and illustrate the model with a contemporary moral dilemma of downsizing. I conclude with implications for further research and ethical decision making in business. (shrink)

Consider the case of Gary Gyges, an otherwise normal human being who, for reasons of personal gain, has embezzled $300,000 while working at People's National Bank and is in the process of escaping to the South Sea Islands where he will have the good fortune to live a pleasant life protected by the local authorities and untroubled by any qualms of conscience. If we assume that in the society from which Gyges is fleeing moral standards are generally observed, Gyges's behavior (...) would be obviously immoral. Is it possible, however, that Gyges, a rational person, may have had perfectly consistent reasons for acting immorally? Is it also possible that Gyges may not have had any moral reasons at all to refrain from his act of embezzlement? (shrink)

Hobbes has served for both philosophers and political scientists as the paradigm case of someone who held an egoistic view of human nature. In this article I shall attempt to show that the almost unanimous view that Hobbes held psychological egoism is mistaken, and further that Hobbes's political theory does not demand an egoistic psychology, but on the contrary is incompatible with psychological egoism. I do not maintain that Hobbes was completely consistent; in fact, I shall show that there was (...) a continuous development in Hobbes's works away from an egoistic psychology. But I do think that the main outlines of Hobbes's political theory, i.e., his account of the laws of nature, the right of nature, the obligations imposed by laws and covenants, and the rights and duties of citizen and sovereign, are essentially the same in The Elements of Law, De Cive, and Leviathan. I thus hold that even in his earliest work, The Elements, the only one where a charge of egoism is justifiable, the political theory does not depend on egoism. But the first and most important point to be established is that Hobbes did not hold an egoistic psychology. (shrink)

In recent years, the business ethics literature has exploded in both volume and importance. Because of the sheer volume and diversity of this literature, a review article was deemed necessary to provide focus and clarity to the area. The present paper reviews the literature on business ethics with a special focus in marketing ethics. The literature is divided into normative and empirical sections, with more emphasis given to the latter. Even though the majority of the articles deal with the American (...) reality, most of the knowledge gained is easily transferable to other nations. (shrink)

An onslaught of ethically questionable actions by top government, business, and religious leaders during the 1980s has brought the issue of ethics in decision making to the forefront of public consciousness. This study examines the ethical orientation of university students in four decision-making situations. The dependent variable — ethical orientation toward work-related decisions — is measured through student responses to questions following four work-related vignettes. Possible responses to each vignette are structured to permit categorization of respondents into two broad orientations: (...) egoistic and ethical. Independent variables are academic major, ethics in business orientation, gender, and religiosity. Generally, students tended to choose an ethical orientation over an egoistic orientation in each vignette. Business majors were generally no less likely to choose an ethical orientation toward work-related decisions than nonbusiness majors. Respondents characterized by moral unity (belief in the consistency between general ethical principles and work-related ethical standards) were more likely to have an ethical orientation toward work-related decisions than those subscribing to the amoral theory of business. Females showed a consistent tendency to be more ethically oriented toward work-related decisions than males. Finally, respondents high on religiosity tended to be more ethically oriented. (shrink)

This study represents an improvement in the ethics scales inventory published in a 1988 Journal of Business Ethics article. The article presents the distillation and validation process whereby the original 33 item inventory was reduced to eight items. These eight items comprise the following ethical dimensions: a moral equity dimension, a relativism dimension, and a contractualism dimension. The multidimensional ethics scale demonstrates significant predictive ability.

This paper examines the self-interested reasons that businesses can have for ethical behaviour. It distinguishes between economic and non-economic reasons and, among the latter, notes those connected with the self-esteem of managers. It offers a detailed typology of prudential reasons for ethical behaviour, laying particular stress on those to do with avoiding punishment by society for wrongdoing and, more particularly still, stresses the role of campaigning pressure groups within that particular category of reasons. It goes on to suggest that because (...) of their occupation of the moral high ground, campaigning groups are well placed to damage the self-esteem of managers and that this is why those groups seem able to exert an influence that goes beyond their somewhat limited capacity to inflict economic damage upon businesses. The paper concludes with the suggestion that we may be witnessing a virtuous spiral whereby rising public expectations of morality in business lead to ever increasing moral commitments by business that then cause those expectations to rise still further. (shrink)

It is a common enough view that market agents are self-interested, not benevolent or altruistic – call this market egoism – and that this is morally defensible, even morally required. There are two styles of defence – utilitarian and deontological – and while they differ, they confront a common problem. This is the availability problem. The problem is that the more successful the moral justification of self-interested economic activity, the less there is for the justification to draw upon. Religious justifications (...) of market egoism at least make a stab at dealing with the problem; secular accounts typically do not. (shrink)

Extant social contracts, deriving from communities of individuals, constitute a significant source of ethical norms in business. When found consistent with general ethical theories through the application of a filtering test, these real social contracts generate prima facie duties of compliance on the part of those who expressly or impliedly consent to the terms of the social contract, and also on the part of those who take advantage of the instrumental value of the social contracts. Businesspeople typically participate in multiple (...) communities and, as a consequence, encounter conflicting ethical norms. Priority rules can be devised to resolve such conflicts. The framework of extant social contracts merges normative and theoretical research in business ethics and specifies a domain for empirical studies. (shrink)

We investigated the ethical behavior of Turkish university students to compare the difference in ethical behavior between business students and non-business students, examine the impact of key contingency variables on how they make decisions when confronted with an ethical dilemma, and investigate the process underlying the ethical behavior of Turkish students. Data were collected from business students at a major private university in Western Turkey. The results indicate that a Turkish student’s peers, marital status, and education level exert a significant (...) effect on their ethical behavior. Further, business students specifically differed from non-business students in their enhanced use of egoism when confronted with an ethical dilemma. The results of this research may have important educational policy implications for business ethics in Turkey. (shrink)

The material to follow challenges the conceptual uniqueness and contribution of the content of the field of marketing ethics. Based on a comprehensive inspection of the marketing ethics literature, this "review note" (an uncommon genre of academic manuscript – a briefly-presented review highlighting a specific point) concludes that, in terms of pragmatic behavioral guidance as well as conceptual content, marketing ethics has nothing new nor distinctive to offer. Though an initially unexpected conclusion, perhaps, explanation is provided for why marketing ethics' (...) absence of contribution is perfectly natural and appropriate. Evidence also is found to establish that the paper's contrarian-appearing position may not be extremist after all. (shrink)

Faced with an ever-growing number of ethical marketing issues and uncertainty about the impact of specialized ethics journals, researchers are struggling to keep abreast of developments in the field. In order to address these challenges, our paper provides a comprehensive review of the literature on marketing ethics over almost 50 years, offers a citation analysis and develops a unique marketing ethics impact factor (MEIF). We contribute to the field in three important ways. First, we present a state-of-the-art picture of marketing (...) ethics research. This provides an account of the research focus in each decade, assesses the importance of specific topics in the debate and identifies existing research gaps. Second, we identify the most influential papers and researchers in the marketing ethics area. Third, we evaluate the most important journals in terms of their impact on marketing ethics. To this end, we have developed an MEIF. This improves our ability to judge a journal's influence on this particular sub-discipline. (shrink)

Invisible Hand accounts of the operations of the competitive market are often thought to have two implications for morality as it confronts economic life. First, explanantions of agents economic activities eschew constitutive appeal to moral notions; and second, such moralism is pernicious insofar as it tends to undermine the operations of a socially valuable social process. This is the Mandevillean Conceit. The Conceit rests on an avarice-only reading of the profit-motive that is mistaken. The avarice-only reading is not the only (...) way of characterising the profit-motive, and there are some positive grounds for thinking the benefits of profit pursuit are better attributed to the “lucrephile”, and not the avarice-only “lucrepath”. (shrink)

This study explores the reactions of 412 business students to a range of ethical marketing dilemmas. Reviewing some of the comparable Australian and U.S. research in the field, the study examines the ethical judgements for potential demographic differences. The findings suggest that a majority of students are prepared to act unethically in order to gain some competitive or personal advantage. Yielding the highest ethical response are situations of potential and significant social impact. The results support some previous research that shows (...) the existence of gender and age differences in ethical response and likely behaviour. This (gender) difference was most divergent on the issue of portrayal of women in advertising. In particular, females and older students respond more ethically in a majority of situations. The research concludes a number of opportunities for new directions in education, public policy making and further research. (shrink)

Egoism and altruism need not be characterized as single factor theories of motivation, according to which there is a single kind of preference that moves people to action. Rather, each asserts a claim of causal primacy—a claim as to which sort of preference is the more powerful influence on behavior. This paper shows that this idea of causal primacy can be clarified in a standard scientific way. This formulation explains why many observed behaviors fail to discriminate between the hypothesis that (...) the agent is altruistic and the hypothesis that the agent is egoistic. A distinction between altruistic motivation and altruistic action is then drawn, from which it follows that it is an open question how often altruists behave altruistically. (shrink)

Many researchers in the field of business ethics have attempted to develop methods to determine and evaluate the ethics of a variety of different classes of people, including students, professionals, and mixed samples of students and professionals. Unfortunately, most of these studies were disjunctive, simply adding confusion to an already unfocused area of research. However, Reidenbach and Robin (1988, 1990), have changed this trend by attempting to quantify the various ethical philosophies into a multi-dimensional scale of business ethics. This paper (...) examines the background of the Reidenbach and Robin (1988, 1990) scale — including the authors'' findings, empirically tests the scale, and concludes that the scale needs further refinement. A promising result is a model with four dimensions: a broadbased ethical judgment dimension, a deontological judgment dimension, a teleological judgment dimension, and a social contract dimension. (shrink)

TO the egoist the ultimate justification of his acts lies in their being conducive of his personal interest. This refusal to submit his own interests to any moral test beyond themselves in their interrelations and prospects of fulfillment makes the egoist the object of fierce attack. The non-egoist is supposed to be always ready to question the ultimacy of his own interests. Even where he pursues them, it is because on some other basis-general happiness or duty or anything else-he thinks (...) it right for a man in such circumstances to follow self-interest or give free play to inclination. (shrink)

The theory I want to refute is sometime called Impersonal Ethical Egoism : the view that everyone ought to do what will benefit him the most in any given situation. It might be thought that this view can be distinguished from Personal Ethical Egoism : the view that I ought to do what will benefit me the most in any given situation. But to whom does “I” refer in PEE? To any person who states the view? And is the view (...) supposed to be true no matter who states it? If the answers to the last two questions are Yes, then PEE and IEE come to the same thing. To distinguish the views, we might take “I” to refer to a specific person, say, the person who just stated the view. Put unambiguously, without the personal pronoun, PEE then becomes: RC ought to do what will benefit RC the most in any given situation. IEE would then logically imply PEE, but not conversely. But the reason why PEE would not imply IEE is not that it would be a conflicting, or even an alternative and competing, form of ethical egoism; it is simply that PEE would be formulated much less generally than IEE. In fact, since PEE would concern only what one particular person ought to do, it would not be obvious that the view itself should be called a form of egoism. For if anyone else subscribed to the view, that would hardly make him an egoist; so there would seem to be nothing inherently egoistic about the view. But, in any case, what I aim to refute is a general theory about what anyone ought to do in a given situation, not a theory limited in scope to the actions of only one individual. (shrink)

I wish here to consider a certain type of argument often produced as a refutation of ethical egoism. Such an argument asks us to consider a situation in which the interests of two people conflict. It is then pointed out that the consequence of applying both ethical egoism and some widely accepted conceptual truth concerning the moral words to this situation is in some way ‘absurd’. Ethical egoism is therefore to be rejected. My strategy, in trying to show that this (...) kind of argument is unsound, is this: I will first produce a simple refutation of ethical egoism of my own; I will show why it is unsound; I will try to show that these other arguments fail in the same way. (shrink)

Most economists are committed to some version of egoism. After distinguishing among the various sorts of egoistic claims, l cite the empirical literature against psychological egoism and show that attempts to account for this data make these economists' previous empirical claims tautological. Moreover, the assumption of egoism has undesirable consequences, especially for students; if people believe that others behave egoistically, they are more likely to behave egoistically themselves. As an alternative to egoism I recommend the commitment model of Robert Frank. (...) The equivalent of egoism at the organizational level is that business firms seek (should seek) to maximize profits. I present arguments to show that a conscious attempt by managers to maximize profits is likely to fail. A committed altruism is more likely to raise profits. I suggest that a firm should take as its primary purpose providing meaningful work for employees. (shrink)