An integrity-based approach to ethics management combines a concern for the law with an emphasis on managerial responsibility for ethical behavior. Though integrity strategies may vary in design and scope, all strive to define companies’ guiding values, aspirations, and patterns of thought and conduct. When integrated into the day-to-day operations of an organization, such strategies can help prevent damaging ethical lapses while tapping into powerful human impulses for moral thought and action. Then an ethical framework becomes no longer a burdensome (...) constraint within which companies must operate, but the governing ethos of an organization. (shrink)

Based on evidence from press articles covering 39 corporate fraud cases that went public during the period 1992-2005, the objective of this article is to examine the role of managers' behavior in the commitment of the fraud. This study integrates the fraud triangle (FT) and the theory of planned behavior (TPB) to gain a better understanding of fraud cases. The results of the analysis suggest that personality traits appear to be a major fraud-risk factor. The analysis was further validated through (...) a quantitative analysis of keywords which confirmed that keywords associated with the attitudes/rationalizations component of the integrated theory were predominately found in fraud firms as opposed to a sample of control firms. The results of the study suggest that auditors should evaluate the ethics of management through the components of the TPB: the assessment of attitude, subjective norms, perceived behavioral control and moral obligation. Therefore, it is potentially important that the professional standards that are related to fraud detection strengthen the emphasis on managers' behavior that may be associated with unethical behavior. (shrink)

Richard Holton provides a unified account of intention, choice, weakness of will, strength of will, temptation, addiction, and freedom of the will. Drawing on recent psychological research, he argues that, rather than being the pinnacle of rationality, the central components of the will are there to compensate for our inability to make or maintain sound judgments. Choice is understood as the capacity to form intentions even in the absence of judgments of what action is best. Weakness of will is understood (...) as the failure to maintain an intention, or more specifically, a resolution, in the face of temptation--where temptation typically involves a shift in judgment as to what is best, or in the case of addiction, a disconnection between what is judged best and what is desired. Strength of will is the corresponding ability to maintain a resolution, an ability that requires the employment of a particular faculty or skill. Finally, the experience of freedom of the will is traced to the experiences of forming intentions, and of maintaining resolutions, both of which require effortful activity from the agent. (shrink)

T. H. Green's Prolegomena to Ethics is a classic of modern philosophy. It begins with Green's idealist attack on empiricist metaphysics and epistemology and develops a perfectionist ethical theory that aims to bring together the best elements in the ancient and modern traditions, and that provides the moral foundations for Green's own distinctive brand of liberalism. David Brink's new edition will restore this great work to prominence, after two decades in which it has been hard to obtain. The present edition (...) uses the text of the fifth edition, accompanied by a new introductory essay, bibliographical essay, and index. Translations are provided for Green's quotations from other languages. Of particular importance is the editor's extended introductory essay, which situates the Prolegomena in its intellectual context, sympathetically but critically engages its main themes, and explains Green's enduring significance for the history of philosophy and contemporary ethical theory. Students and scholars of the history of ethics, ethical theory, political philosophy, and nineteenth century philosophy will find this new edition an invaluable resource. (shrink)

A scientific community cannot practice its trade without some set of received beliefs. These beliefs form the foundation of the "educational initiation that prepares and licenses the student for professional practice". The nature of the "rigorous and rigid" preparation helps ensure that the received beliefs are firmly fixed in the student's mind. Scientists take great pains to defend the assumption that scientists know what the world is like...To this end, "normal science" will often suppress novelties which undermine its foundations. Research (...) is therefore not about discovering the unknown, but rather "a strenuous and devoted attempt to force nature into the conceptual boxes supplied by professional education". (shrink)

Is it ever possible for people to act freely and intentionally against their better judgement? Is it ever possible to act in opposition to one's strongest desire? If either of these questions are answered in the negative, the common-sense distinctions between recklessness, weakness of will and compulsion collapse. This would threaten our ordinary notion of self-control and undermine our practice of holding each other responsible for moral failure. So a clear and plausible account of how weakness of will and self-control (...) are possible is of great practical significance. Taking the problem of weakness of will as her starting point, Jeanette Kennett builds an admirably comprehensive and integrated account of moral agency which gives a central place to the capacity for self-control. Her account of the exercise and limits of self-control vindicates the common-sense distinction between weakness of will and compulsion and so underwrites our ordinary allocations of moral responsibility. She addresses with clarity and insight a range of important topics in moral psychology, such as the nature of valuing and desiring, conceptions of virtue, moral conflict, and the varieties of recklessness (here characterised as culpable bad judgement) — and does so in terms which make their relations to each other and to the challenges of real life obvious. Agency and Responsibility concludes by testing the accounts developed of self-control, moral failure, and moral responsibility against the hard cases provided by acts of extreme evil. (shrink)

What happens to our conception of mind and rational agency when we take seriously future-directed intentions and plans and their roles as inputs into further practical reasoning? The author's initial efforts in responding to this question resulted in a series of papers that he wrote during the early 1980s. In this book, Bratman develops further some of the main themes of these essays and also explores a variety of related ideas and issues. He develops a planning theory of intention. Intentions (...) are treated as elements of partial plans of action. These plans play basic roles in practical reasoning, roles that support the organization of our activities over time and socially. Bratman explores the impact of this approach on a wide range of issues, including the relation between intention and intentional action, and the distinction between intended and expected effects of what one intends. (shrink)

Thomas S. Kuhn's classic book is now available with a new index.

Reasons without Rationalism has two related parts, devoted to action theory and ethics, respectively. In the second part, I argue for a close connection between reasons for action and virtues of character. This connection is mediated by the idea of good practical thought and the disposition to engage in it. The argument relies on the following principle, which is intended as common ground: " Reasons: The fact that p is a reason for A to ϕ just in case A has (...) a collection of psychological states, C, such that the disposition to be moved to ϕ by C-and-the-belief-that- p is a good disposition of practical thought, and C contains no false beliefs."In effect, reasons are premises for episodes of sound practical thinking whose other conditions already …. (shrink)

Modern philosophy has been vexed by the question "Why should I be moral?" and by doubts about the rational authority of moral virtue. In Reasons without Rationalism, Kieran Setiya shows that these doubts rest on a mistake. The "should" of practical reason cannot be understood apart from the virtues of character, including such moral virtues as justice and benevolence, and the considerations to which the virtues make one sensitive thereby count as reasons to act. Proposing a new framework for debates (...) about practical reason, Setiya argues that the only alternative to this "virtue theory" is a form of ethical rationalism in which reasons derive from the nature of intentional action. Despite its recent popularity, however, ethical rationalism is false. It wrongly assumes that we act "under the guise of the good," or it relies on dubious views about intention and motivation. It follows from the failure of rationalism that the virtue theory is true: we cannot be fully good without the perfection of practical reason, or have that perfection without being good. Addressing such topics as the psychology of virtue and the explanation of action, Reasons without Rationalism is essential reading for philosophers interested in ethics, rationality, or the philosophy of mind. (shrink)

This research applies the theory of planned behavior to corporate managers’ decision making as it relates to fraudulent financial reporting. Specifically, we conducted two studies to examine the effects of attitude, subjective norm and perceived control on managers’ decisions to violate generally accepted accounting principles (GAAP) in order to meet an earnings target and receive an annual bonus. The results suggest that the theory of planned behavior predicts whether managers’ decisions are ethical or unethical. These findings are relevant to corporate (...) leaders who seek to improve ethical work climates of organizations and to many regulators, accountants, corporate governance officials and investors. (shrink)

The purpose of this research is to present the major factors that lead to ethical dissolution in an organization. Specifically, drawing from a wide spectrum of sources, this study explores the impact of organizational, individual, and contextual factors that converge to contribute to ethical dissolution. Acknowledging that ethical decisions are, in the final analysis, made by individuals, this study presents a model of ethical dissolution that gives insight into how a variety of elements coalesce to draw individuals into decisions that (...) result in the ethical undoing of an otherwise healthy organization. ENRON, TYCO and WorldCom did not happen in a vacuum. Nor can such debacles be explained as simply one or two individuals who were morally corrupt. The ethical breakdowns that occurred in these companies happened over a period of time, involved numerous individuals both inside and outside of the organization, and brought about the implosion of viable companies. Seeking to extend the work of previous researchers, this study attempts to tie together a disparate set of factors into a cohesive explanation of ethical breakdowns in organizations. (shrink)

The paper takes a look at insurance customer dishonesty as a special case of consumer ethics, understood as a way of situation handling, as a moral choice between right and wrong, such as between self-interest vs. common-interest, in other words, a “moral temptation”. After briefly raising the question if different schools, of moral philosophy would conceptualize such moral temptations differently, the paper presents ‘moral psychology’ as a frame of reference, with a focus on cognitive moral development, moral attitude and moral (...) neutralization. Conceptualization questions can’t be answered finally without thinking at the same time of empirical research design and instrument design decisions, e.g. choosing between experiment vs. questionnaire studies, designing suitable moral temptation situations as an experiment vs. questionnaires with scenario vignettes. The paper discusses then experiences from a 2004 pilot survey, with a main focus on a few insurance dishonesty scenarios with follow-up questions. The paper has an open end, i.e. outlines desirable future theoretical, empirical and practical work with insurance customer dishonesty. (shrink)

This paper explores the financial reporting scandals of the past decade and the resulting U.S. legislative attempts to impose ethical behavior and control the incidence of new reporting problems via the Sarbanes-Oxley legislation. We begin with a brief historical perspective followed by assertions of ethical consequences of legislation with discussions of key recent corporate scandals, the motives for the frauds, and the consequences. Ethics related provisions of the Sarbanes-Oxley Act are discussed with the potential impact of the legislation on the (...) likelihood of similar future frauds and accompanying prognosis for future corporate ethical behavior. (shrink)

Several recent studies and initiatives have emphasized the importance of a strong ethical organizational DNA (ODNA) to create and promote an effective corporate governance culture of trust, integrity and intellectual honesty. This paper highlights the drawbacks of an excessively heavy reliance on rules-based approaches that increase the cost of doing business, overshadow essential elements of good corporate governance, create a culture of dependency, and can result in legal absolutism. The paper makes the case that the way forward for effective corporate (...) governance is to strike an optimal balance between rules-based and principles-based approaches. The recent corporate scandals have demonstrated that the ethical ODNA is critical to the driving force and basis of legal and regulatory requirements. Effective governance means adhering to ethical principles, not merely complying with rules, and is a crucial guardian of a firm’s reputation and integrity. It is through an effective corporate governance program (that is, one that optimally captures and integrates the appropriate aspects of rules-based and principles-based approaches, and identifies and assesses the related risks) that an organization can reconfigure its ODNA for improved performance. Focusing on the ethical ODNA as the basis of new governance measures provides an opportunity to develop a competitive advantage as it represents a potential source of differentiation, strengthens the relationship with all stakeholders of the organization by building a culture of trust and integrity, and re-instills investor confidence. This paper employs dialectical reasoning that links the ODNA through principles-driven rules in developing a risks-based approach. A comparison from a risk assessment perspective between rules-based and principles-based approaches is presented. Although there have been few applications employing dialectical reasoning in business research, this methodology can be extremely useful in isolating ethical issues and integrating them into the business process. The risks-based approach captures the benefits of both rules-based and principles-based approaches, and incorporates trust-based principles such␣as solidarity, subsidiarity and covenantal relationships. (shrink)

We develop a theoretical model, explore the relationship between temptation (both reflective and formative) and unethical intentions by treating monetary intelligence (MI) as a mediator, and examine the direct (temptation to unethical intentions) and indirect (temptation to MI to unethical intentions) paths simultaneously based on multiple-wave panel data collected from 340 part-time employees and university (business) students. The positive indirect path suggested that yielding to temptation (e.g., high cognitive impairment and lack of self-control) led to poor MI (low stewardship behavior, (...) but high cognitive meaning) that, in turn, led to high unethical intentions (theft, corruption, and deception). Our counterintuitive negative direct path revealed that those who controlled their temptation had high unethical intentions. Due to the multiple faces of temptation (the suppression effect), maliciously controlled temptation (low cognitive impairment and high self control) led to deviant intentions. Subsequent multi-group analysis across gender (a moderator) reformulated the mystery of temptation: a negative direct path for males, but a positive indirect path for females. For males, the negative direct path generated a dark impact on unethical intentions; for females, the positive indirect path did not, but offered great implications for consumer behavior. Both falling “and” not falling into temptation led to unethical intentions which varied across gender. Our counterintuitive, novel, and original theoretical, empirical, and practical contributions may spark curiosity and add new vocabulary to the conversation regarding temptation, money attitudes, consumer psychology, and business ethics. (shrink)

Lapses in ethical conduct by those in corporate and public authority worldwide have given business researchers and practitioners alike cause to re-examine the antecedents to personal ethical values. We explore the relationship between ethical values and an individual’s long-term orientation or LTO, defined as the degree to which one plans for and considers the future, as well as values traditions of the past. Our study also examines the role of work ethic and conservative attitudes in the formation of a person’s (...) long-term orientation and consequent ethical beliefs. Empirically testing these hypothesized relationships using data from 292 subjects, we find that long-term perspectives on tradition and planning indeed engender higher levels of ethical values. The results also support work ethic’s role in fostering tradition and planning, as well as conservatism’s positive association with planning. Additionally, we report how tradition and planning mediate the influence of conservatism and work ethic on the formation of ethical values. Limitations of the study and future research directions, as well as implications for business managers and academics, are also discussed. (shrink)

Organizational participants learn that "getting ahead" in organizational life comes from dramatizing a fantasy about the organization's perfection. The fantasy is the return to narcissism, in which the organization and its highest participants are seen as the center of a loving world. Since the return to narcissism is impossible, orienting the organization to the dramatization of this fantasy means that the organization loses touch with reality. The result is organizational decay-a condition of systemic ineffectiveness. Organizational decay is illustrated through the (...) case of General Motors. Specific dimensions considered are: commitment to bad decisions; advancement of participants who detach themselves from reality and discouragement of reality-oriented participants who are committed to their work; creation of the organizational jungle; isolation of management; development of a hostile orientation to the environment; transposition of work and ritual; loss of creativity; dominance of the financial staff; development of cynicism or the loss of reality; and overcentralizatior. Organizational decay may be compared with the consequences of hubris. (shrink)

Using exploratory factor analysis on a unique dataset of global executives, we find that their perceptions of their national government’s risk management effectiveness are largely driven by two latent factors: leadership virtue, and governance. We show that the leadership virtue signal is potentially a stronger signal. We hypothesize that this may be because making decisions and taking actions to manage risk is a continuous process requiring inter alia foresight and moral discipline in looking to the interests of others and acting (...) in service to those interests above self-interest. This suggests at least two propositions for further testing, for which, we offer rhetorical argument and anecdotal evidence at the end of this paper and suggest methodologies for further testing. To our knowledge, this is the first paper to uncover this connection empirically between national risk management and leadership virtue. (shrink)

We add texture to the conclusion of Duchon and Drake (Journal of Business Ethics, 85, 2009, 301) that extreme narcissism is associated with unethical conduct. We argue that the special features possessed by financial accounting facilitate extreme narcissism in susceptible CEOs. In particular, we propose that extremely narcissistic CEOs are key players in a recurring discourse cycle facilitated by financial accounting language and measures. Such CEOs project themselves as the corporation they lead, construct a narrative about the corporation and themselves (...) using financial accounting measures, and then reflect on how their accounting-constructed performance is perceived by stakeholders. We do not present empirical evidence about whether the use of accounting language and measures leads to unethical behaviour by extreme narcissistic CEOs — although the conclusions of Duchon and Drake (2009) suggest empirical support is probable. Rather, we focus on developing alertness to the potential for accounting, when engaged by an extremely narcissistic CEO, to be a precursor or implement of unethical behaviour. (shrink)