Does morality override self-interest? Or does self-interest override morality? These questions become important in situations where there is conflict between the overall verdicts of morality and self-interest, situations where morality on balance requires an action that is contrary to our self-interest, or where considerations of self-interest on balance call for an action that is forbidden by morality. In situations of this kind, we want to know what we ought simpliciter to do. If one of these standpoints over-rides the other, then (...) there is a straightforward answer. We ought simpliciter to act on the verdict of the overriding standpoint. For purposes of this essay, I assume that there are possible cases in which the overall verdicts of morality and self-interest conflict. I will call cases of this kind “conflict cases.” The verdict of morality in a conflict case would be a proposition as to what we ought morally to do, or as to what we have the most moral reason to do; the verdict of self-interest would be a proposition as to what we ought to do in our self-interest, or as to what action is best supported by reasons or considerations of self-interest. These propositions are action-guiding or normative in a familiar sense. The conflict between morality and self-interest in conflict cases is there-fore a normative conflict; it is a conflict between the overall verdicts of different normative standpoints. I take it that the question of whether morality overrides self-interest is the question of whether the verdicts of morality are normatively more important than the verdicts of self-interest. In due course, I will explain the idea of normative importance as well as the ideas of a normative proposition and of a reason. (shrink)

Abstract:Our critics confuse the role normative ethical theory can take in business ethics. We argue that as a practical discipline, business ethics must focus on norms, not the theories from which the norms derive. It is true that our original work is defective, but not in its form, but in its neglect of contemporary advances in feminist ethics.

This paper explores some interconnections between the business and environmental ethics movements. The first section argues that business has obligations to protect the environment over and above what is required by environmental law and that it should cooperate and interact with government in establishing environmental regulation. Business must develop and demonstrate environmental moral leadership. The second section exposes the danger of using the rationale of "good ethics is good business" as a basis for such business moral leadership in both the (...) business and environmental ethics movements. The third section cautions against the moral shallowness inherent in the position or in the promotional strategy of ecological homocentrism which claims that society, including business, ought to protect the environment solely because of harm done to human beings and human interests. This paper urges business and environmental ethicists to promote broader and deeper moral perspectives than ones based on mere self-interest or human interest. Otherwise both movements will come up ethically short. (shrink)

The virtue of moral psychology is that it emphasizes what is most human in business, as opposed to the more bloodless conceptsof “obligation,” “duty,” “responsibility” and rights.” The heart of moral psychology is to be found in such concrete phenomena as fear, love, affection, antipathy, loyalty, jealousy, anger, resentment, avarice, ambition, pride, and cowardice. In this essay, I want to explore two of the core virtues of the corporation, conceived of as a community, the “sentiments” of care and compassion. These (...) were taken to be the very core of ethics by Adam Smith. I want to distinguish care and compassion from each other and both from the more principled and rule-bound conceptions of ethics that still dominate philosophy. (shrink)

I examine the self-interest based contractarian's attempt to answer the question, "Why be moral?" In order to defeat the skeptic who accepts reasons of self-interest only, contractarians must show that the best theory of practical reasons includes moral reasons. They must show that it is rational to act morally even when doing so conflicts with self-interest. ;I examine theories offered by Hobbes, Baier, and Grice, and show they fail to defeat skepticism. Hobbes' theory gives no special weight to moral reasons (...) as they can be eliminated in favor of prudential reasons; Baier's theory fails to establish that from the fact that it is rational to adopt the moral points of view, it is rational to act from it; and Grice's theory attempts to link promising, obligations, and reasons, but leaves certain crucial points in the argument undefended. ;In Morals by Agreement, Gauthier offers the best theory of its kind, and treatment of it constitutes the bulk of the thesis. Gauthier tries to refute the skeptic by showing that it is in one's interest to adopt a moral disposition, and that every action expressing the disposition is rational. The dispositional move is one the contractarian must make to avoid the problems facing the other theories examined. But Gautheir's argument for the rationality of the disposition relies on an empirically dubious assumption of translucency, and as such, fails to show that persons in ordinary circumstances are rational to be moral. Moreover, Gauthier fails to show that the rationality of the disposition carries over to the particular actions expressing it. The alternative view, called the "Independency Thesis," is more plausible than Gauthier's, but not available to him. Thus the contractarian fails to defeat skepticism. (shrink)

Hume is rightly credited with giving a brilliant, and perhaps the best, account of justice as convention. Hume's importance as a forerunner of modern economics has also long been recognized. However, most of Hume's readers have not fully appreciated how closely Hume's analysis of convention foreshadows a particular branch of economic theory, namely, game theory. Starting with the work of Barry, Runciman and Sen and Lewis, there has been a flowering of literature on the informal game-theoretic insights to be found (...) in classics of political philosophy such as Hobbes, Locke, Hume and Rousseau. A number of authors in this tradition, including Lewis, Gauthier, Mackie, and Postema, have identified passages in Hume which they interpret as giving informal examples of specific games. Yet, unlike his predecessors, Hobbes and Locke, Hume does much more than present examples which have a game-theoretic structure. In his account of convention, Hume gives general conditions which characterize the resolution of social interaction problems, and in the examples he uses to illustrate this account, Hume outlines several different methods by which agents can arrive at such a resolution. Hume's general account of convention and his explanations of the origins of particular conventions together constitute a theory of strategic interaction, which is precisely what game theory aspires to be. (shrink)

Both Adam Smith and Herbert spencer, albeit in quite different ways, have been enormously influential in what we today take to be philosophies of modern capitalism. Surprisingly it is Spencer, not Smith, who is the individualist, perhaps an egoist, and supports a "night watchman" theory of the state. Smith's concept of political economy is a notion that needs to be revisited, and Spencer's theory of democratic workplace management offers a refreshing twist on contemporary libertarianism.

There is a growing literature that attempts to define the substantive rights of employees in the workplace, a.k.a. the duties of employers toward their employees. Following Nozick, this article argues that — so long as there is a competitive labor market — to set up a class of moral rights in the workplace invades workers' rights to freely choose the terms and conditions of employment they judge best.

This paper develops a meta-theory of business based on virtue theory which links the concept of virtues, the common good, and the dynamic economy into a unifying and comprehensive theory of business. Traditional theories and models of business have outlived their usefulness as they are unable to adequately explain social reality. Virtue theory shows firms that pursue ethically-driven strategies can realise a greater profit potential than those firms who currently use profit-driven strategies. The theory expounds that the business of business (...) is ethical business and that the crises that business and society face today are crises of leadership and ethics. The issues of leadership and corporate social responsibility are discussed in the context of the proposed theory. (shrink)

For centuries, moral philosophers have attempted to clarify the relationship between morality and rational self-interest. They have been especially interested in the possibility that there are situations in which it is perceptibly against one’s interests to act morally, e.g., situations in which it clearly pays to lie, cheat, or steal. Hobbes, who held an egoistic view of human nature, was especially troubled by this possibility. For if psychological egoism is true and this possibility is a real one, there may be (...) situations in which people must act in a way that is either immoral or irrational. To avoid this unpalatable conclusion, Hobbes seeks to show that the aforementioned possibility is illusory, that no real conflict between morality and rational prudence can occur. (shrink)

The paper replies to Professor Alex Michalos'' keynote address, "Ethics Counsellors as a New Priesthood". Michalos argues that an intractable diversity of opinion about fundamental issues in ethical theory precludes substantive, well-founded ethical counselling. However, Michalos has inappropriately modelled his understanding of an acceptable structure and application for ethical theory on natural scientific theory. For we may countenance a less severe understanding of theory for ethical theory than in the hard sciences. In particular, instructive moral reasoning may tolerate a degree (...) of disagreement across human beings in their conception of moral good. On condition that such variance is not so considerable as to undermine a necessary commonality of language on ethical matters, there will be an adequate basis for warranted theory-construction in ethics and effective moral counselling underwritten by such theory. And, on the available historical evidence, such a condition can be met. (shrink)

The main purpose of this paper is to defend traditional ethical theory (utilitarianism and deontology) for its application in business against a more recent model consisting of utility, rights, and justice. This is done in three parts: First, we provide a conceptual argument for the superiority of the traditional model; second, we demonstrate these points through an examination of three short cases; and third, we argue for the capability of the traditional model to account for universals and particulars in ethics.

It is argued that presently prevailing ethical theories can be largely dispensed with. Such theories are of limited use in solving ethical problems. They fail because they are ‘reductionist’. They take an aspect of morality to be the whole of morality. Moreover, the very process of constructing, testing, and modifying them reveals that we already have that understanding of the nature of the ethical which they purport to provide us with. (This is labelled the ‘paradox of ethical theory’.) That prior (...) understanding is the identification of morality with the common good. This, it is claimed, is all the understanding we need to approach problems within business ethics or any other branch of ‘applied ethics’. UNDERSHAFT....Well, come! Is there anything you know or care for? STEPHEN. I know the difference between right and wrong. UNDERSHAFT....Why man you’re a genius, a master of masters, a god! At twentyfour too! STEPHEN.... I pretend to nothing more than any honourable English gentleman claims as his birthright. SHAW, Major Barbara, Act III. (shrink)

Virtues are habits of character that advance excellence in all of ones endeavors. In the Aristotelian formulation, training in the virtuesis driven by a sense of the “good,” that is, by a widely shared agreement on the components of a good society and on the roles (and appropriate virtues or excellencies) of the “social animals” that energize that society. In the modern era, however, a strong sense of community has been much diminished. Freedom from the restraints of the Church and (...) other social institutions and an emphasis on individual autonomy has fostered a different ethical perspective, a perspective in which the market enters importantly into one’s conception of the good. Does the market generate virtues which in turn sustain it? What guides the development of virtue in market economies that are entering the “information superhighway,” and a new millennium as well? (shrink)

This article explores differences in the ways in which utilitarian, deontological and virtue/aretic ethics treat of act, outcome, and agent. I argue that virtue ethics offers important and distinctive insights into business practice, insights overlooked by utilitarian and deontological ethics.

In his “Why be Moral? A Different Rationale for Managers,” (Business Ethics Quarterly, Vol. 4, April, 1994), La Rue Tone Hosmer argues that managers should be moral because “acting in ways that can be considered to be ‘right’ and ‘just’ and ‘fair’ is absolutely essential to the long-term competitive success of the firm.” According to Hosmer, moral behavior generates trust among stakeholders, which leads to stakeholder commitment, which leads to increased stakeholder effort, which ultimately leads to corporate success. Though we (...) agree with Hosmer’s causal reasoning, we are concerned about an ancient loophole, namely, cases where the mere appearance of morality will generate the same trust, and commitment, and so on, and will thus enable managers to reap the material benefits of morality while nevertheless engaging in immoral practices. We conclude that a virtue ethics perspective will strengthen Hosmer’s model so as to cover such cases. (shrink)

Business ethicists have increasingly used Aristotelian “virtue ethics” to analyze the actions of business people and to explore the question of what the standard of ethical behavior is. These analyses have raised many important issues and opened up new avenuesfor research. But the time has come to examine in some detail possible limitations or weaknesses in virtue ethics. This paper arguesthat Aristotelian virtue ethics is subject to many objections because the psychology implicit within the ethic is not well-suited for analyzing (...) some problematic forms of behavior. Part One offers a brief overview of the firm and of the good life from a virtue ethics perspective. Part Two develops a number of criticisms of this perspective. (shrink)

This paper is designed to do three things. First, it discusses some of the key trends in business ethics in the academic and corporate communities. Initiatives like the Arthur Andersen Business Ethics Program are noted. Secondly, the paper examines certain basic misconceptions about the field and concludes that the adage that good ethics is good business is still true. Finally, the paper highlights fourteen business attitudes or practices that may put a firm at ethical risk. For example, the paper discusses (...) the risk of using ethics as simply a public relations initiative.Man's life is not a state of unalloyed happiness. The earth is no paradise. Although this is not the fault of social institutions, people are wont to hold them responsible for it. The foundation of any and every civilization, including our own, is private ownership of the means of production. Whoever wishes to criticize modern civilization, therefore, begins with private property. It is blamed for everything that does not please the critic, especially those evils that have their origin in the fact that private property has been hampered and restrained in various respects so that its full social potentialities cannot be realized.1. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Artificial Virtues and the Equally Sensible Non-Knaves: A Response to Gauthier Annette C. Baier Gauthier's splendidly dialectical paper1 first sets out Hume's official Treatise account ofhow each personhas a self-interested motive to curb her natural but socially troublesome self-interest, by agreeing to the adoption ofthe artifices ofprivate property rights, transfer by consent, and promise (provided others are also agreeing to adopt them), andhow the sympathy-dependent moral sentiment approves of (...) such a redirection of"the interested passion." Enlightened self-interest gives us the natural obligation tojustice; the fact that it is morally approved turns it into a moral obligation. Self-hatred for any breaches of the moral obligation may come in to bolster the self-interested motivation, and this will be helped along by the extra artifices employed by educators and politicians. So far so good. But now enters the sensible knave, who queries the initial assumption that each will in fact gain more by strict conformity to the rules of the Humean social artifices than by occasional carefully calculated and undetected breaches of them. If the knave is right, then the Treatise story ofhow reasonable self-interested people can get themselves to conscientiously respect property rights (including rights ofbarter), and to keep promises, is in trouble. Only by an erroneous calculation of their interest could they end with the motivation which Hume attributes to them, and finds to be morally approvable.Gauthier argues that there are indications even in the Treatise that Hume is aware ofthe flawed nature ofhis official account, since he attributes "sophistry" to some attempted justifications of honest behaviour, and attributes "feigned acts" of impossible willing to some conscientious promise-keepers. Gauthier finds Hume to have, in the Treatise, a second, less official story ofwhat it takes to be motivated to be just—that it takes error, and letting oneself be taken in by feignings and sophistry. In the Enquiry Concerning the Principles ofMorals this submerged account surfaces in the sensible knave's challenge and Hume's admission that his own answer will not be satisfactory to the knave. The charms of official Humeanjustice, Gauthierconcludes, are spurious, sincethe "anatomy" of the account of the rational motivation to be just is known to be unsound. "The sensible knave's message is thathuman society... lacks any moral foundation." Volume XVIII Number 2 429 ANNETTE C. BAIER This is a sombre tale. One of its unwelcome implications is that Hume himself, really believing that the knave is right, but unwilling tobe seen tohave the bad grace to "dehver a theory, however true which... leads to a practice dangerous and pernicious," is simply trying to "sink" the knave's truth in oblivion by creating a smoke-screen of insincere rhetoric about the greater delights of consciousness of integrity over the knave's satisfaction in his ill-gotten gains. So there really are two sombre tales—one, attributed to Hume, about justice, and one about Hume's dupUcity (or is it mere cynical frivolity?): Gauthier crafts both stories beautifully, directing our attention to bits ofHume's text injust the right order for his dramatic purposes. But is he giving us truth or fiction? I completely agree with Gauthier's version of Hume's official Treatise story, that the moral obligation to justice supervenes on the "natural obligation" for which Hume believes the natural motivation to be collectively redirected self- (or family) interest.2 1 agree that there are one or two passages, especially in the Treatise section, "Of the obUgation of promises," that seem to jar with this account, and which much somehow be explained. I agree that Hume believes that his reply to the knave is, from the knave's point ofview, unsatisfactory. Now for some disagreements. First, about Hume's reply to the knave.3From the viewpointofthevirtuous dues-payingmemberof"the party of humankind," Hume's is a perfectly satisfactory reply. It will be plain truth, for a person with the other Humean virtues (including equity, which is listed as a natural virtue),4 that justice will bring as great or greater good than would judicious injustice. Even if it would be "simply preposterous" to believe that the social order is dangerously threatened by any... (shrink)

This study examined ethical attitudes and perceptions of 691 undergraduate seniors and freshmen in a college of business. Gender was found to be correlated to perceptions of "what the ethical climate should be" with female subjects showing significantly more favorable attitude towards ethical behaviors than males. Further, Seniors had a more cynical view of the current ethical climate than freshmen. Freshmen were significantly more likely than seniors to believe that good business ethics is positively related to successful business outcomes. Ethical (...) education was significantly correlated to both perceptions of "current ethical climate" as well as "what the ethical climate should be". Students who had been exposed to ethical issues in a course were more likely to believe both, that ethical behavior is, and should be, positively associated with successful business outcomes. (shrink)

Abstract:Alasdair Maclntyre (1984) asserts that the ethical systems of the Enlightenment (formalism and utilitarianism) have failed to provide a meaningful definition of “good.” Lacking such a definition, business managers have no internal standards by which they can morally evaluate their roles or acts. Maclntyre goes on to claim that managers have substituted external measures of “winning” or “effectiveness” for any internal concept of good. He supports a return to the Aristotelian notion of virtue or “excellence.” Such a system of virtue (...) ethics depends on an interrelationship of the community, one’s roles in that community, and the virtues one needs to perform that role well. This article develops Maclntyre’s concept of virtue ethics and shows how this paradigm fits well with existing theories about organizational behavior. (shrink)

The relationship between ethics and economics has never been easy. Opponents in a tug of war, friends in a warm embrace, ships passing in the night—the relationship has been highly variable. In recent years, the friendship model has been gaining credence, particularly among U.S. corporate executives. Increasingly, companies are launching ethics programs, values initiatives, and community involvement activities premised on management’s belief that “Ethics pays.”.

This article examines the applicability of character and virtue ethics to international marketing. The historical background of this field, dimensions of virtue ethics and its relationship to other ethical theories are explained. Five core virtues – integrity, fairness, trust, respect and empathy – are suggested as especially relevant for marketing in a multicultural and multinational context. Implications are drawn for marketing scholars, practitioners and educators.

This essay discusses the place of business principles and of moral sentiments in economic success, and examines the role of cultures in influencing norms of business behavior. Two presumptions held in standard economic analysis are disputed: the rudimentary nature of business principles (essentially restricted, directly or indirectly, to profit maximization), and the allegedly narrow reach of moral sentiments (often treated to be irrelevant to business and economics). In contrast, the author argues for the need to recognize the complex structure of (...) business principles and the extensive reach of moral sentiments by using theoretical considerations, a thorough analysis of Adam Smith’s work, and a careful interpretation of Japan’s remarkable economic success. Referring to the economic corruption in Italy and the “grabbing culture” in Russia, he further shows how deeply the presence or absence of particular features of business ethics can influence the operation of the economy, and even the nature of the society and itspolitics. Being an Indian himself, he warns against grand generalizations like the superiority of “Asian values” over traditional Western morals. To conclude, it is diversity—over space, over time, and between groups —that makes the study of business principles and moral sentiments a rich source of understanding and explanation. (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:This article puts forth the thesis that the contractualist account of moral justification affords a powerful reply in business contexts to the question why a business person should put ethics above immediate business interests. A brief survey of traditional theories of business ethics and their approaches to moral motivation is presented. These approaches are criticized. A contractualist conception of ethics in the business world is developed, based on the work of John Rawls and Thomas Scanlon. The desire to justify our (...) choices in terms that others can be reasonably expected to accept, or at least in terms that others cannot reasonably reject, is identified and differentiated from other accounts of motivation. It is this desire that constitutes the core motive to be moral in business on the contractualist conception. Implications of this contractualist conception for the theory and practice of business ethics are then discussed. (shrink)

Hume thinks moral judgments are based on sentiments of approval and disapproval we feel when we contemplate someone from a "general point of view." We view her through the eyes of her "narrow circle" and judge her in accordance with general rules. Why do we take up the general point of view? Hume also argues that approval is a calm form of love, love of character, which sets a normative standard for other forms of love. In this paper I explain (...) why, and argue that character, as a form of causality, is constructed from the point of view of one's narrow circle. We take up the general view to view people as persons, that is, as possible objects of love. (shrink)

In a commercial society, said Adam Smith, “every man becomes in some measure a merchant.” If Smith is right, what does that mean for the character of the society? This paper addresses the character forming effects of the market—and, specifically its impact on the “virtues.” There is a long tradition of viewing commerce as subversive of the virtues. In this view, the market is held to have legitimated the pursuit of narrow self-interest at the expense of social and civic obligations (...) and moral restraints. But, as Albert Hirschman has shown, many Enlightenment moralists saw commercial society as a moralizing force. Which view is right? This paper examines how many of the character traits that we commonly call virtues are rewarded— and so presumably reinforced and diffused—by the market. In this way, the market (as it were by a hidden hand) strengthens its own foundations and reproduces a moral culture that is functional to its own needs. (shrink)

In a commercial society, said Adam Smith, “every man becomes in some measure a merchant.” If Smith is right, what does that mean for the character of the society? This paper addresses the character forming effects of the market—and, specifically its impact on the “virtues.” There is a long tradition of viewing commerce as subversive of the virtues. In this view, the market is held to have legitimated the pursuit of narrow self-interest at the expense of social and civic obligations (...) and moral restraints. But, as Albert Hirschman has shown, many Enlightenment moralists saw commercial society as a moralizing force. Which view is right? This paper examines how many of the character traits that we commonly call virtues are rewarded— and so presumably reinforced and diffused—by the market. In this way, the market (as it were by a hidden hand) strengthens its own foundations and reproduces a moral culture that is functional to its own needs. (shrink)

Professors Bill Shaw and John Corvino, in a response article published in the July, 1996 issue of Business Ethics Quarterly, provide a clearly courteous and obviously well-intended criticism of my original (1994) position on the question of why a manager, and in consequence an organization, should be moral. I disagree with their reasoning and, because I believe that this form of the “Why Be Moral?” question lies at the heart of any potential juncture between our field of business ethics and (...) the economic and behavioral disciplines of business management, I should like to reply in what I hope will be equally courteous and well-intended terms. (shrink)

In his “Why be Moral? A Different Rationale for Managers,” , La Rue Tone Hosmer argues that managers should be moral because “acting in ways that can be considered to be ‘right’ and ‘just’ and ‘fair’ is absolutely essential to the long-term competitive success of the firm.” According to Hosmer, moral behavior generates trust among stakeholders, which leads to stakeholder commitment, which leads to increased stakeholder effort, which ultimately leads to corporate success. Though we agree with Hosmer’s causal reasoning, we (...) are concerned about an ancient loophole, namely, cases where the mere appearance of morality will generate the same trust, and commitment, and so on, and will thus enable managers to reap the material benefits of morality while nevertheless engaging in immoral practices. We conclude that a virtue ethics perspective will strengthen Hosmer’s model so as to cover such cases. (shrink)

Researchers have used attribution theory as a basis for exploring the relationship between consumers'' inferences of advertiser motivation (attributions) and advertising response. This study postulated the existence of two new types of attributions which relate to the perceived ethics of the advertiser (advertiser ethical attributions) and the advertising message (message ethical attributions). Research conducted among a nationally representative sample of 273 adults: (1) verified the existence of both advertiser and message ethical attributions, (2) demonstrated the independence of advertiser and message (...) ethical attributions both from each other and from other measures of advertiser and message evaluation, (3) identified the specific advertising characteristics which lead to the formation of each type of ethical attribution and (4) demonstrated a significant relationship between advertiser and message ethical attributions and measures of advertising response. (shrink)