What is right in the corporation is not what is right in a man's home or in his church," a former vice-president of a large firm observes. "What is right in the corporation is what the guy above you wants from you." Such sentiments pervade American society, from corporate boardrooms to the basement of the White House. In Moral Mazes, Robert Jackall offers an eye-opening account of how corporate managers think the world works, and of how big organizations shape moral (...) consciousnss. Based on extensive interviews with managers at every level of two industrial firms and of a large public relations agency, Moral Mazes takes the reader inside the intricate world of the corporation. It is a world where hard work does not necessarily lead to success, but where sharp talk, self-promotion, powerful patrons, and sheer luck might; where intense competition is masked by cheerfully bland public faces; where intentions are cloaked and frankness is simply one of many guises; and where words are always provisional and accountability often depends on the ability to outrun mistakes. In this topsy-turvy world, managers must bring often unforgiving technology and always difficult people together to make money, an uncompromising task demanding continual compromises with conventional verities. Moral issues are translated into practical concerns and into issues of public relations. Sooner or later, managrs ask themselves: How does one act in such a world and maintain a sense of personal integrity? Moral Mazes is a brilliant, sometimes disturbing, often wildly funny study of corporate thinking, decision-making, and morality. It is an analytical work of great importance, one filled with compelling real life stories of the men and women charged with running the business of America. It is a book for anyone interested in how big organizations actually function, or who is concerned with the current moral malaise in our public life. (shrink)

Abstract: In this article, I offer a proposal to clarify what I believe is the proper relation between value maximization and stakeholder theory, which I call enlightened value maximization. Enlightened value maximization utilizes much of the structure of stakeholder theory but accepts maximization of the long-run value of the firm as the criterion for making the requisite tradeoffs among its stakeholders, and specifies long-term value maximization or value seeking as the firm’s objective. This proposal therefore solves the problems that arise (...) from the multiple objectives that accompany traditional stakeholder theory. I also discuss the Balanced Scorecard, which is the managerial equivalent of stakeholder theory, explaining how this theory is flawed because it presents managers with a scorecard that gives no score—that is, no single-valued measure of how they have performed. Thus managers evaluated with such a system (which can easily have two dozen measures and provides no information on the tradeoffs between them) have no way to make principled or purposeful decisions. The solution is to define a true (single dimensional) score for measuring performance for the organization or division (and it must be consistent with the organization’s strategy), and as long as their score is defined properly, (and for lower levels in the organization it will generally not be value) this will enhance their contribution to the firm. (shrink)

Presents strategies for reinvigorating the corporate spirit by way of the teachings of ancient philosophers. -- Back cover.

Niccolo Machiavelli’s teachings have never gone out of fashion; no doubt because power remains a central aspect of modern political and corporate life. The writings of this 16th century thinker seem as relevant today as they were a half millennium ago. Given the immutable nature of human beings, this is hardly surprising. What is surprising is the regular stream of monographs published in the last third of the 20th century, and reaching a crescendo in the last decade, that argue for (...) Machiavelli’s relevance to modern management and corporate leadership. This essay will examine the structure, assumptions and conclusions of these manuals. After reviewing the manuals, this essay concludes that certain of these assumptions upon which these manuals are based are not transferable from a 16th century principality to a 21st century corporation. Not surprisingly, the teachings of these manuals concerning morality and the corporation are either inconsistent with the actual teachings of Machiavelli, or fail to acknowledge the teachings of Machiavelli most relevant to the modern corporate world. (shrink)

This article provides an ISCT analysis of commercial bribery focused on transaction cost economics. In the language of Antitrust, commercial bribery is a form of vertical arrangement subject to the same efficiency analysis that has found other vertical arrangements potentially beneficial to consumers. My analysis shows that actions condemned as commerical bribery in the Honda case (1996) may well have benefited Honda's dealer network once promotional free riding and other forms of rent seeking by dealers are considered. I propose that (...) the term "commercial bribery" should be avoided until after an ISCT analysis shows that the community is likely to have been harmed. The term "third-party payments" is a more ethically neutral term with which to begin the analysis. (shrink)

This article provides an ISCT analysis of commercial bribery focused on transaction cost economics. In the language of Antitrust, commercial bribery is a form of vertical arrangement subject to the same efficiency analysis that has found other vertical arrangements potentially beneficial to consumers. My analysis shows that actions condemned as commerical bribery in the Honda case may well have benefited Honda's dealer network once promotional free riding and other forms of rent seeking by dealers are considered. I propose that the (...) term "commercial bribery" should be avoided until after an ISCT analysis shows that the community is likely to have been harmed. The term "third-party payments" is a more ethically neutral term with which to begin the analysis. (shrink)

This is a comprehensive anthology of works concerning the nature of economics as a science, including classic texts and essays exploring specific branches and schools of economics. Apart from the classics, most of the selections in the third edition are new, as are the introduction and bibliography. No other anthology spans the whole field and offers a comprehensive introduction to questions about economic methodology.

Throughout the history of social thought, there has been a constant battle over the true nature of society, and the best way to understand and explain it. This volume covers the development of methodological individualism, including the individualist theory of society from Greek antiquity to modern social science. It is a comprehensive and systematic treatment of methodological individualism in all its manifestations.

When business, government, and other professions fail to meet their responsibilities, it is most often not from an inadequacy of tools, techniques, and theory but from an absence of vision and a failure of leadership that saps all sense of individual or organizational purpose and responsibility. To address this concern, management education must be more than the transfer of skills. It should be a moral endeavor, a passing-on from one generation to the next of a kind of wisdom about responsible (...) moral commitment in complex contexts. Faculty at professional schools have an opportunity and a responsibility to help students connect their capacity for high achievement to a sense of purpose and a set of principles. This book is an explanation of how one business school is trying to place leadership, ethics, and corporate responsibility at the center of its mission. It is a call to rebalance the educational trilogy of values, knowledge, and skills. Can Ethics Be Taught? traces the evolution, strategy, and implementation of the pathbreaking Leadership, Ethics, and Corporate Responsibility program at the Harvard Business School. It describes in detail the origins of the initiative for this program, the sophisticated research that went into the approach, timing, and appropriate interventions for working with students and faculty, as well as the design of the program strategy itself. The accomplishments of this program have been substantial; and the lessons drawn from the experience of the Harvard Business School can prove instructive to other professional schools-in such fields as management, public administration, and law-and to corporate leaders as they design and implement their own programs on leadership, ethics, and responsibility. (shrink)

The aim of this article is to describe the significance and key challenges of philosophy for managers as perceived on the basis of a particular understanding of philosophy and my personal experience as a practitioner.The paper will be more visionary than argumentative. I recognise there are important alternative approaches but I will not engage in detailed analysis of them.2Drawing heavily on my own experience, the paper will present an outline and meta-philosophy of philosophical practices that have proven useful in actual (...) interface with practising managers. (shrink)