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)

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)

Social and moral issues in business have drawn attention to a gap between theory and practice and fueled the search for a reconciling perspective. Finding and establishing an alternative remains a critical initiative, but a daunting one. In what follows, the assumptions of two prominent contenders are considered before introducing a third in the form of Aristotle’s ancient theory of virtue. Comparative case studies are used to briefly illustrate the practical implications of each paradigm. In the quest for a better (...) sense-making and sense-giving lens, this paper refines and encourages the search by highlighting some of the key features required of a worthy paradigmatic challenge. The author proceeds to identify a particular type of institutional community, and a promising champion, for the practical unification of strategic and normative excellence. (shrink)

The purpose of this paper is to present the essence of Ayn Rand's theory of rational egoism and to indicate how it is the only ethical theory that can provide a foundation for ethics in business. Justice, however, cannot be done to the breadth and depth of Rand's theory in so short a space as this article; consequently, I have provided the reader with a large number of references for further study. At minimum, Ayn Rand's theory, because of its originality (...) and challenge to establishment theories, should be included in all business ethics courses and discussions of business ethics. (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.

Robert Solomon has presented a version of business ethics in terms of virtues theory. It is a good thing that business ethics should be understood in terms of virtues theory, but the account that Solomon gives is seriously misleading in important respects. "A virtue is a pervasive trait of character that allows one to 'fit into' a particular society and to excel in it," he says. This is something that we might query: what a society will recognize as a virtue (...) might well be what fits that formula, but sometimes we shall want to recognize as a virtue what enabled somebody to stand out against his or her society and change it, and shall want to say that those traits that enable somebody to fit happily into (say) a slave society are vices rather than virtues. That is to say, a society's recognition of virtues, its application of virtues theory in picking out various character traits as valuable, will depend on other judgments common in that society, and we might well differ from that society in those judgments. (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)

This paper reviews the relationship between organisational leadership, corporate governance and business ethics, and considers the implications for management. Business ethics is defined, and the causes and consequences of unethical behavior are discussed. Issues pertaining to leadership, subordinate and organisation responsibility for business ethics are considered. The changing role of business leaders and the new concept of ''corporate governance'' are examined, with an increasing importance being placed on ethical and socially responsible attitudes towards business. Organisational effectiveness and organisational efficiency, formerly (...) central issues for practising managers, with directors thinking in terms of goal achievement for their respective organisations, have now been augmented by an awareness of issues in business ethics, and a requirement for members of the corporate governance to behave in more socially responsible ways. A secondary aim of the paper is to introduce an approach which illustrates how corporate governance and management could deal with some of the moral dilemmas that they may have to face. (shrink)

“Through centuries of scourges and disasters, brought about by your code of morality, you have cried that your code had been broken, that the scourges were punishment for breaking it, that men were too weak and too selfish to spill all the blood it required. You damned man, you damned existence, you damned this earth, but never dared to question your code. . . . You went on crying that your code was noble, but human nature was not good enough (...) to practice it. And no one rose to ask the question: Good?—by what standard? (shrink)

Ayn Rand is well known for advocating egoism, but the substance of that instruction is rarely understood. Far from representing the rejection of morality, selfishness, in Rand's view, actually demands the practice of a systematic code of ethics. This book explains the fundamental virtues that Rand considers vital for a person to achieve his objective well-being: rationality, honesty, independence, justice, integrity, productiveness, and pride. Tracing Rand's account of the harmony of human beings' rational interests, Smith examines what each of these (...) virtues consists of, why it is a virtue, and what it demands of a person in practice. Along the way she addresses the status of several conventional virtues within Rand's theory, considering traits such as kindness, charity, generosity, temperance, courage, forgiveness, and humility. Ayn Rand's Normative Ethics thus offers an in-depth exploration of several specific virtues and an illuminating integration of these with the broader theory of egoism. (shrink)

Who a manager is, as a person of moral character, has been only of tangential interest in social science definitions of management, which have focused on functions, roles, behaviors, and environmental influences. But how do managers themselves speak of managerial excellence? This paper answers this for a particular corporation, based on a three-phased research process that deliberately imposes no descriptive or normative categories, but allows the answer to emerge, listening to what managers themselves say when discussing excellent managers and their (...) behaviors. This approach finds that: (1) virtue ethics and virtue language is fluently used by practicing managers, (2) virtue language is important to understanding managerial excellence, and (3) whereas the set of virtues defining the excellent manager can be expected to be dependent on the societal, industry, and organizational context, such a set of manager virtues can be identified and prioritized within a particular organizational milieu. The implication is that, once an organization's management better understands the meaning of the excellent manager in terms of the virtue language already used by its own employees, it is better equipped to implement a practical ethic of virtues, one helpful toward recognizing and developing excellent managers. Ethics researchers are challenged to increase their understanding of extant virtue language as the basis for a renewed development of virtue ethics theory and applications. (shrink)

In recent years there has been an increased interest in the application of Aristotelian virtue to business ethics. The objective of this paper is to describe the moral and intellectual virtues defined by Aristotle and the types of pedagogy that might be used to integrate virtue ethics into the business curriculum. Virtues are acquired human qualities, the excellences of character, which enable a person to achieve the good life. In business, the virtues facilitate successful cooperation and enable the community to (...) achieve its collective goals. The cultivation of virtue in students requires imparting knowledge about virtue and training students to be virtuous. A variety of instructional techniques are discussed including using case studies, collaborative and cooperative learning, role-playing, and video presentations. Business educators should emphasize to students that virtue considerations apply both to possible actions they may take and to themselves as moral agents. Since faculty may be viewed as role models, it is especially important that they set proper standards of behavior for students to emulate. (shrink)

This study examines a moderated/mediated model of ethical leadership on follower job satisfaction and affective organizational commitment. We proposed that managers have the potential to be agents of virtue or vice within organizations. Specifically, through ethical leadership behavior we argued that managers can virtuously influence perceptions of ethical climate, which in turn will positively impact organizational members’ flourishing as measured by job satisfaction and affective commitment to the organization. We also hypothesized that perceptions of interactional justice would moderate the ethical (...) leadership-to-climate relationship. Our results indicate that ethical leadership has both a direct and indirect influence on follower job satisfaction and affective commitment. The indirect effect of ethical leadership involves shaping perceptions of ethical climate, which in turn, engender greater job satisfaction and affective organizational commitment. Furthermore, when interactional justice is perceived to be high, this strengthens the ethical leadership-to-climate relationship. (shrink)

Total Quality Management (TQM) is an overall management philosophy that includes a set of principles whose application is increasing. In fact, the business world and public institutions, such as hospitals, universities or city councils, are implementing quality programs. However, despite the wide diffusion of TQM, the success rate of this type of initiative is limited and the results, heterogeneous. Academics and professionals are therefore trying to identify the keys that explain the success or failure of this kind of initiative. Different (...) explanations have been given, but most of the literature agrees that managerial commitment, implication and leadership are indispensable elements in a successful implementation of TQM. Nevertheless, a study on the specialised literature shows a terminological confusion between managerial commitment and managerial leadership. Is it the same to have a committed manager in the implementation process as to have a leader of the implementation process? The author of this paper defends the thesis that "commitment" and "leadership" are not synonymous, and states that only managerial leadership is able to promote and sustain profound organisational changes. The paper will show that, to understand the previous distinction, it is necessary to consider the ethical dimension of leadership. While committed managers may lead the process by using exclusively their power (with the necessary resource assignment), those who are leaders need authority. Authority goes further than power by generating a kind of confidence (trust) that is able to influence the members of the organisation and bring about profound changes, more than power alone can do. (shrink)

This book takes a different approach to business ethics. Some of the contributors take a more popular collectivist approach, but many of them do not. Thus, the book offers a more balanced presentation of business ethics than that found in most books on the subject.

The notion that the firm, and economic activity in general, is inherently amoral is a central feature of positive economics that is also widely accepted in business ethics. Theories as disparate as stockholder and stakeholder theory both leave this central assumption unchallenged. Each theory argues for a different set of external ethical restrictions, but neither adequately provides an internal connection between business and the ethical rules business people are obliged to follow. This paper attempts to make this connection by arguing (...) that the purpose of business is to produce a good or service for trade. Trade involves both a respect for individual autonomy and property rights and squarely places moral norms internal to the practice of business. Trade is not a contingent activity of business, it is a practice rule which also provides the common sense boundary between business and charity on the one hand, and crime on the other. Business and those who engage in it are, from the internal point of view, bound by the purpose of trade and not just the laws of the land. (shrink)

Government interference in free enterprise is growing. Should they intercede in business ethics and corporate responsibility; and if so, to what extent? The Morality of Business: A Profession for Human Wealthcare goes beyond the utilitarian case in discussing the various elements of business ethics, social policy, job security, outsourcing, government regulation, stakeholder theory, advertising and property rights. "Professor Machan has done it again! Profit seeking behavior by business is ethical and prudent, but it only can be ethical when a person (...) is free, and that depends upon having private property rights. Business ethics is not about ‘corporate citizenship,’ as so many others seem to believe. The contemplative life, so highly valued by many in academe, is made possible by the success of those in commerce. Which one lives a more ethical life? Read Machan’s, The Morality of Business for his answer." -Don Booth, Chapman University, California, USA. (shrink)

Ayn Rand is well known for advocating egoism, but the substance of that instruction is rarely understood. Far from representing the rejection of morality, selfishness, in Rand's view, actually demands the practice of a systematic code of ethics. This book explains the fundamental virtues that Rand considers vital for a person to achieve their objective well-being: rationality, honesty, independence, justice, integrity, productiveness, and pride. Tracing Rand's account of the value and harmony of human beings' rational interests, Smith examines what each (...) of these virtues consists of, why it is a virtue, and what it demands of people in practice. Along the way she addresses the status of several conventional virtues within Rand's theory, considering traits such as kindness, charity, generosity, temperance, courage, forgiveness, and humility. Ayn Rand's Normative Ethics thus offers an in-depth exploration of several specific virtues and an illuminating integration of these with the broader theory of egoism. (shrink)

Today, values hold a prominent place both in business ethics and in organization theory. However, there persists considerable confusion about what these values are and what role they play in these theories and, therefore, how they can be developed both within the individual and within the organization. Therefore, this paper seeks to define a conception of values based on a theory of human action that can provide a basis for an organization theory, and to propose a series of ideas about (...) how personal and organizational values can be fostered. (shrink)

In Ayn Rand and Business, Greiner and Kinni clearly show how to apply the values and virtues in Rand's philosophy of Objectivism to create more successful careers and more profitable businesses.

Entrepreneurship is increasingly studied as a fundamental and foundational economic phenomenon. It has, however, received less attention as an ethical phenomenon. Much contemporary business ethics assumes its core application purposes to be (1) to stop predatory business practices and (2) to encourage philanthropy and charity by business. Certainly predation is immoral and charity has a place in ethics, neither should be the first concerns of ethics. Instead, business ethics should make fundamental the values and virtues of entrepreneurs - i.e., those (...) self-responsible and productive individuals who create value and trade with others to win-win advantage. (shrink)

Total Quality Management (TQM) is an overall management philosophy that includes a set of principles whose application is increasing. In fact, the business world and public institutions, such as hospitals, universities or city councils, are implementing quality programs. However, despite the wide diffusion of TQM, the success rate of this type of initiative is limited and the results, heterogeneous. Academics and professionals are therefore trying to identify the keys that explain the success or failure of this kind of initiative. Different (...) explanations have been given, but most of the literature agrees that managerial commitment, implication and leadership are indispensable elements in a successful implementation of TQM.Nevertheless, a study on the specialised literature shows a terminological confusion between managerial commitment and managerial leadership. Is it the same to have a committed manager in the implementation process as to have a leader of the implementation process? The author of this paper defends the thesis that "commitment" and "leadership" are not synonymous, and states that only managerial leadership is able to promote and sustain profound organisational changes. (shrink)