The foundation for a system of morals, this 1749 work is a landmark of moral and political thought. Its highly original theories of conscience, moral judgment, and virtue offer a reconstruction of the Enlightenment concept of social science, embracing both political economy and theories of law and government.

The Greek philosopher Aristotle, writing over two thousand years before Wall Street, called people who engaged in activities which did not contribute to society "parasites." In his latest work, renowned scholar Robert C. Solomon asserts that though capitalism may require capital, but it does not require, much less should it be defined by the parasites it inevitably attracts. Capitalism has succeeded not with brute strength or because it has made people rich, but because it has produced responsible citizens and--however unevenly--prosperous (...) communities. It cannot tolerate a conception of business that focuses solely on income and vulgarity while ignoring traditional virtues of responsibility, community, and integrity. Many feel that there is too much lip-service and not enough understanding of the importance of cooperation and integrity in corporate life. This book rejects the myths and metaphors of war-like competition that cloud business thinking and develops an "Aristotelean" theory of business. The author's approach emphasizes several core concepts: the corporation as community, the search for excellence, the importance of integrity and sound judgment, as well as a more cooperative and humane vision of business. Solomon stresses the virtues of honesty, trust, fairness, and compassion in the competitive business world, and confronts the problem of "moral mazes" and what he posits as its solution--moral courage. (shrink)

C. C. W. Taylor presents a clear and faithful new translation of one of the most famous and influential texts in the history of Western thought, accompanied by an analytical and critical commentary focusing on philosophical issues. In Books II to IV of the Nicomachean Ethics Aristotle gives his account of virtue of character, which is central to his ethical theory as a whole and a key topic in much modern ethical writing.

Abstract:Should the responsibilities of business managers be understood independently of the social circumstances and “market forces” that surround them, or (in accord with empiricism and the social sciences) are agents and their choices shaped by their circumstances, free only insofar as they act in accordance with antecedently established dispositions, their “character”? Virtue ethics, of which I consider myself a proponent, shares with empiricism this emphasis on character as well as an affinity with the social sciences. But recent criticisms of both (...) empiricist and virtue ethical accounts of character deny even this apparent compromise between agency and environment. Here is an account of character that emphasizes dynamic interaction both in the formation and in the interplay between personal agency and responsibility on the one hand and social pressures and the environment on the other. (shrink)

Entrepreneurship is a critical need in society, and an entrepreneur's life can be a life wonderfully lived. However, most of the literature examining entrepreneurship takes an overly narrow financial viewpoint when examining entrepreneurship and entrepreneurial success. Our paper surveys the current entrepreneurial literature on what constitutes successful entrepreneurship. We then engage key conceptual ideas within the Catholic social tradition to analyze what we see as an undeveloped notion of success. We then move to construct a richer notion of success through (...) the framework of virtue. (shrink)

The issues of profit, its moral meaning, justification and role, need careful examination. Mistakes to be avoided in making moral sense of profit include the assumption that profitability establishes a company's moral rectitude. Profit is too complex a phenomenon to establish any such thing. Steps toward clarifying these issues include distinguishing profit as the goal of the corporation from the larger goals of the economy itself, and clarifying what we mean by profit. Profit often includes the moral or value consideration (...) of having been rightly or fairly earned. This provides one starting point internal to business for formulating standards for business ethics. (shrink)

N. Scott Arnold has argued forcefully that, for the most part, those who win profits (and suffer losses) in a market economy deserve them. According to Arnold, profit opportunities arise when there are malallocations of resources, which entrepreneurs initiate changes in production to correct. If they succeed, they simultaneously further the essential point of the market system — to meet the needs and wants of consumers — and they make profits; if they do not, then they stand to suffer losses. (...) I argue that the structure of modern corporate enterprises tends to channel income into the hands of those whose entrepreneurial contribution is diminishingly small — namely stockholders — and away from those within the firm who genuinely participate in the entrepreneurial role. (shrink)

ABSTRACT:This article provides an account of virtues as praiseworthy traits of character with a far-reaching capacity to influence conduct. Virtues supply their possessors both with good reasons that indicate, for diverse contexts, what sort of thing should be done and with motivation to do them. This motivational power of virtue is crucial for the question of what kind of person, or businessperson, one wants to be. The article shows how the contrast between virtue ethics and rule ethics is often drawn (...) too sharply and indicates how virtue theories can incorporate both theoretical and practical uses of rules. More generally, it shows how a virtue orientation affects attitudes in management practices and how an understanding of certain virtues can help in making better decisions, both ethically and in relation to success in business. (shrink)

Role of the entrepreneur in a distinct role of profit.

Stakeholder theorists have generally misunderstood the nature and ramifications of the fiduciary responsibilities that corporate directors owe their stockholders. This fiduciary duty requires the exercise of care, loyalty, and honesty with regard to the financial interests of stockholders. Such obligations do not conflict with the normative goals of stakeholder theory, nor, after a century of case law that includes Dodge Bros. v. Ford, do fiduciary responsibilities owed shareholders prevent managerial policies that are generous orsensitive to other corporate stakeholders. The common (...) law recognizes a multitude of legal relationships between various corporateconstituents, and fiduciary duties are only a subset of the obligations that arise from these relationships. This article argues that statuteand case law can bring comparable legal protection to constituents other than stockholders, and suggests ways that these protectionsmight be further strengthened. Implications for management education are also discussed. (shrink)

The paper reconstructs in economic terms Friedman's theorem that the only social responsibility of firms is to increase their profits while staying within legal and ethical rules. A model of three levels of moral conduct is attributed to the firm: (1) self-interested engagement in the market process itself, which reflects according to classical and neoclassical economics an ethical ideal; (2) the obeying of the "rules of the game," largely legal ones; and (3) the creation of ethical capital, which allows moral (...) conduct to enter the market process beyond the rules of the game. Points (1) and (2) position the Friedman theorem in economic terms while point (3) develops an economic revision of the theorem, which was not seen by Friedman. Implications are spelled out for an instrumental stakeholder theory of the firm. (shrink)

The paper maps out an alternative to a behavioural (economic) approach to business ethics. Special attention is paid to the fundamental philosophical principle that any moral ‘ought’ implies a practical ‘can’, which the paper interprets with regard to the economic viability of moral agency of the firm under the conditions of the market economy, in particular competition. The paper details an economic understanding of business ethics with regard to classical and neo-classical views, on the one hand, and institutional, libertarian thought, (...) on the other hand. Implications are derived regarding unintentional and passive intentional moral agency of the firm. The paper moves on to suggest that moral agency can be economically viable in competitive ‘market’ interactions, which is conventionally disputed by classical/neo-classical and institutional, libertarian economics. The paper here conceptualises active moral agency of the firm as the utilisation of ethical capital in firm--stakeholder interactions. This yields a reinterpretation of instrumental stakeholder theory. (shrink)

In this paper a corporate social responsibility audit is developed following the underlying methodology of the quality award/excellence models. Firstly the extent to which the quality awards already incorporate the development of social responsibility is examined by looking at the Malcolm Baldrige National Quality Award and the European Quality Award. It will be shown that the quality awards do not yet include ethical aspects in relation to social responsibility. Both a clear definition of social responsibility and an improved audit instrument (...) are required. A definition and an audit instrument are developed which stimulate movement in that direction and help organisations to reflect on their position in relation to social responsibility. (shrink)

This investigation is motivated by the lack of scholarship examining the content of what firms are communicating to various stakeholders about their commitment to socially responsible behaviors. To address this query, a qualitative study of the legal, ethical and moral statements available on the websites of Forbes Magazine''s top 50 U.S. and top 50 multinational firms of non-U.S. origin were analyzed within the context of stakeholder theory. The results are presented thematically, and the close provides implications for social responsibility among (...) managers of global organizations as well as researchers interested in business ethics. (shrink)

In this paper I argue that a theory of the firm that takes profit maximizing to be the essential activity and purpose of the firm is seriously inadequate. I argue that firms in the actual economy neither are nor should be maximizers of profit. I argue instead that firms are and must be satisficers, that they must make enough profit to satisfy the various demands which they encounter in their operation. Yet it should be clear that the notion of satisficing, (...) while it escapes the major problems encountered by maximization, itself lacks much of any very clear content. In the end I claim that the notion of satisficing can best be understood if we abandon the traditional characterization of profits and replace it with a notion of extended profits, which I define as that part of corporate revenue which is available for distribution among stockholders, management, and labor, and for reinvestment in the corporation's business operation. (shrink)

The authors propose a model for business ethics which arises directly from business practice. This model is based on a behavioral definition of the economic theory of profit maximization and situates business ethics within opportunity costs. Within that context, they argue that good business and good ethics are synonymous, that ethics is at the heart and center of business, that profits and ethics are intrinsically related.

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.

Stakeholder theorists have generally misunderstood the nature and ramifications of the fiduciary responsibilities that corporate directors owe their stockholders. This fiduciary duty requires the exercise of care, loyalty, and honesty with regard to the financial interests of stockholders. Such obligations do not conflict with the normative goals of stakeholder theory, nor, after a century of case law that includes Dodge Bros. v. Ford, do fiduciary responsibilities owed shareholders prevent managerial policies that are generous orsensitive to other corporate stakeholders. The common (...) law recognizes a multitude of legal relationships between various corporateconstituents, and fiduciary duties are only a subset of the obligations that arise from these relationships. This article argues that statuteand case law can bring comparable legal protection to constituents other than stockholders, and suggests ways that these protectionsmight be further strengthened. Implications for management education are also discussed. (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.

Traditional corporate finance endorses the principle of stockholder wealth maximization as the purpose of business. In light of recent scandals and legislation, businesses are increasingly expected to use financial resources in a manner which benefits society and not just the owners of the firm. This imputation of a corporate soul will necessarily reduce investor returns, which has at least two major financial implications for the firm and the economy. The first is that it may cause investors to change their required (...) rates of return and thereby change the amount of capital available to firms, and the economy. The second is that it may implicitly replace equity with debt in the capital structure of firms, with all that implies for financing and corporate governance. The purpose of this article is to examine these implications and evaluate their sometimes counterintuitive consequences. (shrink)

If social scientists take natural science as a model, they may err in their predictions and may offer facile ethical views. Maclntyre assails them for this, but he is unduly pessimistic about business, and in rejecting the separation thesis he raises some difficulties about naturalism.Aristotle's views of the good life and of the close relationship between internal and external goods provide a corrective to Maclntyre, and in fact suggest how virtues can support social capital and thus prevail within and among (...) firms in competitive markets. Aristotle's views are not necessarily inimical to those underlying modern democratic capitalism, but they raise questions about the limits to the good life. The separation thesis misses the importance of addressing the questions with both empirical and ethical resources. (shrink)

The Corporate Social Responsibility (CSR) field presents not only a landscape of theories but also a proliferation of approaches, which are controversial, complex and unclear. This article tries to clarify the situation, mapping the territory by classifying the main CSR theories and related approaches in four groups: (1) instrumental theories, in which the corporation is seen as only an instrument for wealth creation, and its social activities are only a means to achieve economic results; (2) political theories, which concern themselves (...) with the power of corporations in society and a responsible use of this power in the political arena; (3) integrative theories, in which the corporation is focused on the satisfaction of social demands; and (4) ethical theories, based on ethical responsibilities of corporations to society. In practice, each CSR theory presents four dimensions related to profits, political performance, social demands and ethical values. The findings suggest the necessity to develop a new theory on the business and society relationship, which should integrate these four dimensions. (shrink)

There is not, of course, a one-to-one relation between policy conclusions and the conclusions of positive economics; if there were, there would be no ...

In this paper the problematic nature of the morality of management, in particular related to business organisations operating under Anglo-American capitalism, is explored. MacIntyre’s critique of managers in After Virtue serves as the starting point but this critique is itself subjected to analysis leading to a more balanced and contemporary view of the morality of management than MacIntyre provides. Paradoxically perhaps, MacIntyre’s own virtues-goods-practice-institution schema is shown to provide a way of re-imagining business organisations and management and thereby holds out (...) the possibility of resolving the issue of the morality of management within such organisations. Implications for management practice are drawn out. (shrink)