The Italian <Emphasis Type="Italic">Economia Aziendale</Emphasis> and Catholic Social Teaching: How to Apply the Common Good Principle at the Managerial Level

The ongoing global economic and financial crisis has exposed the risks of considering market and business organizations only as instruments for creating economic wealth while paying little heed to their role in ethics and values. Catholic Social Teaching (CST) could provide a useful contribution in rethinking the role of values in business organizations and markets because CST puts forward an anthropological view that involves thinking of the marketplace as a community of persons with the aim of participating in the Common Good (CG) of society. In the light of the CST tradition, and in particular Caritas in Veritate, this article investigates the thinking of some of the historical scholars of the Italian Economia Aziendale (EA), by focusing on the concept of azienda, in order to reinterpret in a more humanistic way the role of business organizations in society. By linking CST and EA, the dichotomy between for-profit and not-for-profit organizations and the stereotype of the so-called business amorality that has, for a long time, driven business managers can be transcended. The conclusions imply a forward-looking application of the ethical concepts embedded in the Italian science of EA.     

Rebuilding Trust: Ireland’s CSR Plan in the Light of <Emphasis Type="Italic">Caritas in Veritate</Emphasis>

This paper seeks to contribute to the discussion on national corporate social responsibility (CSR) plans from the perspectives of the three logics as articulated in Caritas in Veritate, by using the Irish national CSR plan as an example. Good for Business, Good for the Community: Ireland’s National Plan on Corporate Social Responsibility 2014–2016 maintains that CSR activities can enable organisations to build relationships and trust with communities. One of the consequences of the 2008 financial crisis was the decrease in trust in banking systems and in business more broadly. It is well recognised that relationships of trust are essential to the life of the market, the state and civil society. Pope Emeritus Benedict XVI’s Caritas in Veritate contends that corresponding to the life of the market, the state and civil society are three logics: the logic of exchange (i.e. giving to acquire), the logic of public obligation (i.e. giving through duty) and the logic of gift (i.e. giving due to solidarity). This paper proposes that the normative framework of the three logics of Caritas in Veritate can be read into the Irish national CSR plan. This paper argues that the examples of CSR initiatives proffered by the plan could point organisations in the direction of the logic of gift and therefore enable the rebuilding of relationships of trust with citizens and communities.     

Moral Markets and Moral Managers Revisited

In the wake of recent corporate scandals, this paper examines the claim made by John Boatright that business ethics, as it is currently conceived, “rests on a mistake.” Ethics in business should not be achieved through managerial vision, discretion or responsibility; rather, ethics should shape the design of institutions that regulate business from the outside. What ethicists should advocate for, according to Boatright, are moral markets not moral managers. I explore the empirical and normative dimensions of his claim with special attention paid to the extent to which Boatright’s development of the economic theory of the firm supports his position. I conclude by suggesting some reasons why moral markets and moral management are compatible frameworks for corporate reform.     

ἐμπάθɛια (Empatheia) and Caritas: The Role of Religion in Fair Trade Consumption

There is much still to learn about the nature of fair trade consumers. In light of the Pope’s encyclical Caritas in Veritate, this article sought to advance the current understanding by investigating the role of religion in fair trade consumption. In this study, fair trade consumers and non-consumers across many religions as well as the non-religious described their consumption of fair trade products as well as the use of their religious beliefs in their purchase behavior. It appears that the non-religious are slightly more inclined toward buying fair trade products. Of the religious observers studied, Buddhists have a greater propensity to buy fair trade. The relationship between religion and fair trade consumption is complex in that religious affiliation – group membership – alone is not enough to encourage members to buy fair trade; rather, it is the use of religious beliefs as a criterion in consumption behavior that linked religion to fair trade consumption.     

Satisfaction for Whom? Freedom for What? Theology and the Economic Theory of the Consumer

The economic theory of the consumer, which assumes individual satisfaction as its goal and individual freedom to pursue satisfaction as its sine qua non, has become an important ideological element in political economy. Some have argued that the political dimension of economics has evolved into a kind of “secular theology” that legitimates free market capitalism, which has become a kind of “religion” in the United States [Nelson: 1991, Reaching for Heaven on Earth: The Theological Meaning of Economics. (Rowman & Littlefield Publishers, Inc, Savage, Maryland); 2001, Economics as Religion: From Samuelson to Chicago and Beyond (The Pennsylvania State University Press, University Park, Pennsylvania); Thurow: 1983, Dangerous Currents: The State of Economics (Random House, New York); Milbank: 1990, Theology and Social Theory, Beyond Secular Reason (Basil Blackwell, Cambridge, Massachusetts)]. Consumer theory in its ideological form provides an important base for this religion and is no longer merely a positive framework for understanding consumer choice or estimating market demand. The paper explores the view of the human being, the “anthropology,” that is implicit in the economic theory of the consumer and compares its “theological” implications with the corresponding theological anthropologies in the Judaeo-Christian tradition. The paper outlines the assumptions of consumer theory and then focuses on three aspects of the theory from a critical theological perspective: the individual in community, property ownership, and human destiny (or “eschatology” in theological terminology). The principal conclusion is that consumer theory, viewed from this perspective, leads to a reductionist and existentially harmful view of human beings. The maximization of individual satisfaction raises genuine ethical issues when viewed as a political and religious value. The paper argues that the issues could be ameliorated if economists would include more explicit treatment of a social dimension and ethical alternatives in consumer theory and if theologians would give greater attention to economic theory. Mark Nixon (mnixon@fordham.edu) is a doctoral student in theology and coordinator of the Master of Arts in Humanities & Sciences Program at Fordham University, with research interests in postmodern theology, social theory, and ethics. He received his B.A. (Religion) from Oberlin College, his M.B.A. and M.A. (Political Economy) from Stanford University, and his M.A. (Theology) from Fordham University. He has also completed the course requirements for the Ph.D. (Economics) at The George Washington University. His business career included more than 20 years with IBM where he held staff, management and executive positions, including several years as director of IBM’s Advanced Business Institute.     

Implications of Caritas in Veritate for Marketing and Business Ethics

In an effort to assess the latest thinking in the Roman Catholic Church on economic matters, we examine the newest encyclical by Pope Benedict XVI, Caritas in Veritate (Charity in Truth) for guidance concerning marketing and business strategy. Core ethical values, consistent with historical Catholic Social Teachings (CST), are retained. However, some important nuances are added to previous treatments, and, reflecting the mind of the current Pontiff, certain points of emphasis are shifted to account for recent global developments. Key areas of consistency and differences (as we perceive them) are spelled out along with some brief commentary on the evolution of the CST position on matters of importance to business decision makers. We close our analysis with a brief discussion of how the lessons of the encyclical can be applied to selected marketing problems embedded with ethical issues, including some criteria for evaluating marketing programs. Finally, we note some editorial commentary published in the wake of the letter’s release along with our own summation.     

Ethical Theory and Business Practices: The Case of Discourse Ethics

By focusing on the reasoned debate in the discourse-ethical approach to business ethics, this paper discusses the possibilities and limitations of moral reasoning as well as applied economic and business ethics. Business ethics, it is contended, can be looked at from the standpoint of two criteria: justification and application. These criteria are used to compare three approaches: the Integrative Business Ethics, developed by Swiss philosopher Peter Ulrich, the Cultural Business Ethics of the Nuremberg School in German business ethics, and the concept of “Good Conservation” by Frederick Bird. It is argued that discourse-ethical approaches can be called upon for justifying moral principles. Improving the chances of their application, however, necessitates a good understanding of lifeworlds and culturally developed institutional settings. Bearing this in mind, further research perspectives stressing a linkage between discourse-ethical and critical approaches in social sciences are suggested.Dr. Thomas Beschorner is head of the research group “Social Learning and Sustainability” at University of Oldenburg, Germany and currently Visiting-Professor at McGill University, Montreal, Canada     

Seven Pillars of Business Ethics: Toward a Comprehensive Framework

This article first addresses the question of “why” we teach business ethics. Our answer to “why” provides both a response to those who oppose business ethics courses and a direction for course content. We believe a solid, comprehensive course in business ethics should address not only moral philosophy, ethical dilemmas, and corporate social responsibility – the traditional pillars of the disciple – but also additional areas necessary to make sense of the goings-on in the business world and in the news. These “new pillars,” that we advocate include moral psychology, organizational design and behavior, motivational theory, and a unit on how society, business, and law interact. This last unit builds upon the work of Francis P. McHugh (1988) who urged an integration of “disciplines related to business ethics.” Our seventh pillar would encompass an integration of law, socio-political theory, and policy to demonstrate how business helps construct its own regulatory framework. The concluding recommendation is for a comprehensive “Seven Pillars” of business ethics approach. William Arthur Wines holds a B.S.B.A. with distinction from Northwestern University and a J.D. from the University of Michigan. He is admitted to the practice of law in Minnesota and the State of Washington. His research has appeared in over three dozen journals including the American Business Law Journal, Arizona Law Review, Economics of Education Review, Delaware Journal of Corporate Law, Denver Journal of International Law and Policy, Journal of Business Ethics, Labor Law Journal, Marquette Law Review, Nebraska Law Review, and The William and Mary Journal of Women and the Law. He is the author of two volumes of readings in business ethics and “Ethics, Law, and Business”, published by Lawrence Erlbaum Associates, Inc. in 2006. This material is subject to various copyright laws. Please do not transmit electronically, quote, or copy without the prior written permission of the author.     

Leadership, Ethics and Responsibility to the Other

Of recent time, there has been a proliferation of concerns with ethical leadership within corporate business not least because of the numerous scandals at Enron, Worldcom, Parmalat, and two major Irish banks – Allied Irish Bank (AIB) and National Irish Bank (NIB). These have not only threatened the position of many senior corporate managers but also the financial survival of some of the companies over which they preside. Some authors have attributed these scandals to the pre-eminence of a focus on increasing shareholder value in Western business schools and/or to their failure to inculcate ethical standards. In this paper, we challenge these accounts and the aetiological view of knowledge from which they derive but are grateful for the consensus that they convey regarding the importance of business ethics. The paper focuses on different approaches to ethical leadership concluding with a view that some hybrid of MacIntyre’s virtue ethics and Levinas’s ethics of responsibility may serve as an inspiration for both educators and practitioners. Dr. David Knights is a Professor of Organisational Analysis in the School of Economic and Management Studies at Keele University. He previously held chairs in Manchester, Nottingham and Exeter Universities. He is a founding and continuing editor of the journal Gender, Work and Organisation and his most recent books include: Management Lives, Sage, 1999 (with H. Willmott) and Organization and Innovation, McGraw-Hill, 2003 (with D. McCabe). Majella O’Leary is a Lecturer in Management at the University of Exeter. Her research interests include corporate scandals, ethical leadership, disaster sensemaking, and organizational storytelling. Majella’s most recent publications have appeared in Human Relations and European Journal of Business Ethics.     

Patterns of Research Productivity in the Business Ethics Literature: Insights from Analyses of Bibliometric Distributions

In any academic discipline, published articles in respective journals represent “production units” of scientific knowledge, and bibliometric distributions reflect the patterns in such outputs across authors or “producers.” Closely following the analysis approach used for similar studies in the economics and finance literature, we present the first study to examine whether there exists an empirical regularity in the bibliometric patterns of research productivity in the business ethics literature. Our results present strong evidence that there indeed exists a distinct empirical regularity. It is the so-called Generalized Lotka’s Law of scientific productivity pattern: the number of authors publishing n papers is about 1/n ^c of those publishing one paper. We discuss the likely processes that underlie the productivity pattern postulated by the Generalized Lotka’s Law. We find that the value of the exponent c is equal to about 2.6 for the comprehensive bibliometric data across the two leading business ethics journals. The observed research productivity pattern in the business ethics area, a relatively young discipline, is interestingly very consistent with those found in much older, related business disciplines like economics, accounting, and finance. We discuss the general implications of our findings.     

Can business ethics be theological? What Athens can learn from Jerusalem

The work of philosophers in business ethics has been important in providing a systematic framework to analyze moral obligations of corporations and their many stakeholders. Yet the field of ethics as defined by the philosophers of the past two centuries is too narrow to do justice to what is at stake in the business world. Ethics in the theological perspective is not primarily concerned with analyzing situations so that one can make right decisions, but rather with reflecting on what is constitutive of the good life. Theological business ethics can apply a crucial corrective to the business ethics of philosophers by broadening the endeavor to include a vision of what constitutes a good life — of the kind of persons we want to be and the kind of communities we want to form. Oliver F. Williams, C.S.C., is on the faculty of the Department of Management at the University of Notre Dame where he teaches and researches in the field of business, society and ethics. He holds a Ph.D. in theology from Vanderbilt University and has had the experience of a research year at the Graduate School of Business Administration of Stanford University. His publications include five books, the most recent of which is The Apartheid Crisis: How We Can Do Justice in a Land of Violence (Harper & Row). He has published articles on business ethics in journals including Theology Today, California Management Review, Harvard Business Review and Business Horizons.     

Contrasting the Behavioural Business Ethics Approach and the Institutional Economic Approach to Business Ethics: Insights From the Study of Quaker Employers

The article suggests that in a modern context, where value pluralism is a prevailing and possibly, even ethically desirable interaction condition, institutional economics provides a more viable business ethics than behavioural business ethics, such as Kantianism or religious ethics. The article explains how the institutional economic approach to business ethics analyses morality with regard to an interaction process, and favours non-behavioural, situational intervention with incentive structures and with capital exchange. The article argues that this approach may have to be prioritised over behavioural business ethics, which tends to analyse morality at the level of the individual and favours behavioural intervention with the individual’s value, norm and belief system, e.g. through ethical pedagogy, communicative techniques, etc. Quaker ethics is taken as an example of behavioural ethics. The article concludes that through the conceptual grounding of behavioural ethics in the economic approach, theoretical and practical limitations of behavioural ethics, as encountered in a modern context, can be relaxed. Probably only then can behavioural ethics still contribute to raising moral standards in interactions amongst the members (stakeholders) of a single firm, and equally, amongst (the stakeholders of) different firms. Dr. Sigmund Wagner-Tsukamoto is researcher in business ethics, organisational economics and economic issues that concern the Old Testament. He is placed at the School of Management of the University of Leicester, UK. He holds two doctorates, one in social studies from the University of Oxford, UK, and one in economic studies from the Catholic University of Eichstaett, Germany. He has widely published on green consumerism and institutional economic issues that concern organization theory, business ethics theory and an economic interpretation of the Old Testament. His publications include the books Understanding Green Consumer Behaviour (Routledge, 2003) and Human Nature and Organization Theory (Edward Elgar, 2003).     

Personalist Business Ethics and Humanistic Management: Insights from Jacques Maritain

The integration of personalism into business ethics has been recently studied. Research has also been conducted on humanistic management approaches. The conceptual relationship between personalism and humanism, however, has not been fully addressed. This article furthers that research by arguing that a true humanistic management is personalistic. Moreover, it claims that personalism is promising as a sound philosophical foundation for business ethics. Insights from Jacques Maritain’s work are discussed in support of these conclusions. Of particular interest is his distinction between human person and individual based on a realistic metaphysics that, in turn, grounds human dignity and the natural law as the philosophical basis for human rights, personal virtues, and a common good defined in terms of properly human ends. Although Maritain is widely regarded as one of the foremost twentieth century personalist philosophers, his contribution has not been sufficiently considered in the business ethics and humanistic management literature. Important implications of Maritainian personalism for business ethics as philosophical study and as practical professional pursuit are discussed.     

Philosophical Foundations of Workplace Spirituality: A Critical Approach

It is an undeniable reality that workplace spirituality has received growing attention during the last decade. This fact is attributable to many factors, socioeconomic, cultural and others [Hicks, D.A. 2003: Religion and the Workplace. Pluralism, Sprtituality, Leadership (Cambridge University press, Cambridge)]. However the field is full of obscurity and imprecision for the researcher, the practitioner, the organisational analyst and whoever attempts to systematically approach this relatively new inquiry field. This article attempts to provide a critical review of the literature on workplace spirituality by examining the underlying rationale of the main trends regarding spirit at Work and by negotiating their strengths and weaknesses. Current approaches to workplace spirituality are distinguished to the exploratory, contextual and the consequential, acontextual ones. Particular attention is given to ‚Respectful Pluralism’ proposed by Douglas Hicks, as it is suggested that this theoretical framework is the most well-founded, elaborated and systematic up to date. However, it is proposed that even ‚Respectful Pluralism’ fails to fully capture the complexity of such a multidimensional phenomenon as spirituality. Drawing on mainstream ethical and philosophical traditions (deontology, utilitarianism, virtue ethics) supporting alternative value-systems, it is suggested that a more inclusive and philosophically affluent framework needs to be developed. Finally, some propositions and thoughts are made towards this direction. George Gotsis is an assistant professor at the department of History and Philosophy of Science, University of Athens, Greece. His research interests include history of economic thought, business ethics and history of ideas. Zoi Kortezi is currently a research assistant at the department of History and Philosophy of Science, University of Athens, Greece. Her research interests include organisational theory, employee relations and work ethics.     

Consumer Trust,Social Marketing and Ethics of Welfare Exchange

The global corporate scandals such as Enron, Worldcom and Global Crossing have raised fundamental issues of business ethics as well as economic, social and anthropological questions concerning the nature of business competition and global capitalism. The purpose of this conceptual paper is to introduce the concept of “welfare exchange” to the existing notions of economic, social and anthropological notions of business and exchange in markets and society in the 21st century. Global competition and business success in the 21st century continue to raise the nature of economic value and the interaction among diverse actors in international markets, institutions and society. We believe that the nature of such exchange between consumers and organizations, which can also be termed social marketing, need to increasingly take into account a welfare and ethical component. In this paper, we introduce our concept of welfare exchange to emphasize the importance of such welfare and ethical issues in the global business environment of the 21st century.     

Twin towers: A philosophy and theology of business

To be in business is first to be. To do in business, is to enhance one's being and the being of others; it ought never result in the diminishment of either. This article invites philosophical reflection on the purpose of business.To be and do in business looks for an explanation that goes beyond the meaning of work. The meaning of work is a worthy philosophical inquiry; the meaning of business is a separate question. The purpose of business is relational. Business is doing for others on condition of receipt of something of fair value in return. It deals essentially with exchanges. Persons in business relate to other persons whose needs, preferences, and desires are met, to some degree of satisfaction, by the product or service the business is organized to provide — at a price. To meet the need, preference or desire is the purpose of business.Theology, through the categories of creation and stewardship, sheds additional light on the purpose of business. There is theological significance in the human action of making available, through fair exchanges, the goods and services people need, prefer and, in some cases, simply desire. There is also theological meaning in the managerial and entrepreneurial function of making employment available for others, thus helping them to be more active and productive human beings. From a theological perspective, the purpose of business activity is to serve a people on the way to salvation by organizing the material basis of their transit through life. William J. Byron, a Jesuit priest with a doctorate in economics, is president of The Catholic University of America. Author of Toward Stewardship (1975) and editor of The Causes of World Hunger (1982), his experience includes directorships of a bank, an insurance company, two hospitals, and several universities.     

‘A Case for Including Business Ethics and the Humanities in Management Programs’

The idea underlying this article was that the humanities in general and business ethics in particular should be more firmly embedded in business management programs. A number of areas have been identified for students to use as topics for research projects in management ethics. These ranged from Biblical and classical times to the present day. Some were drawn from sources that were less well known e.g. the De consolatione philosphiae ‘The Consolation of Philosophy’ by Boethius 524 AD. This was chosen partly for its ethical content, but also because Boethius was magister officiorum i.e. head of the civil service. Aelfred the Great (849–899) King of Wessex (he who burnt those cakes) was chosen because he promoted the intellectual, moral and spiritual qualities that were to serve as guidelines for his executives. Nineteenth century literature (Dickens, Thackeray, Trollope and Galsworthy) was also chosen as a source of topics for research projects in business ethics. The writer acknowledges the work of earlier writers in the fields of management, organisation theory, and business ethics.     

The Impact of Business Education on Moral Judgment Competence: An Empirical Study

Recent highly publicized ethical breaches including those at Enron and WorldCom have focused attention on ethical behavior within the accounting profession. At the heart of the debate is whether ethical attitudes of accountants are to blame. Using a nationally representative sample of accounting practitioners and a multidisciplinary student sample at two Southern United States universities, we compare sample responses to 25 ethically charged vignettes to test whether they differ. Overall, we find no significant difference – even for a specific “accounting tricks” vignette, which resembles the Enron and WorldCom situations. We do find, however, that the practitioners were more accepting of vignettes that involved physical harm (PH) to individuals and those that were legal (but ethically questionable). We postulate that accounting practitioners may apply a legalistic framework to their assessment of the acceptability of each vignette. Focusing on an “accounting tricks” vignette, we also find no significant difference between auditors and institutional practitioners compared to all other types of accountants in the sample. We conclude that ethical attitudes of accounting practitioners do not differ significantly by specialty area. Tisha L. N. Emerson is an Assistant Professor of Economics at Baylor University in Texas. In addition to business ethics, Professor Emerson has published articles in the areas of environmental economics and economic education. She teaches courses in environmental economics, international trade, intermediate microeconomics and microeconomic principles. Stephen J. Conroy is an Associate Professor of Economics at the University of San Diego in California. In addition to business ethics, Professor Conroy has published articles in the areas of economic development and demography, economics of education and economics of aging. He teaches courses in managerial economics at both the graduate and undergraduate level, as well as undergraduate courses in urban and regional economic development, intermediate microeconomics and principles of micro- and macroeconomics. Charles W. Stanley is an Associate Professor of Accounting at Baylor University in Texas. In addition to business ethics, Dr. Stanley has published articles in the areas of financial accounting, managerial accounting, auditing, accounting systems, tax, and professional ethics for accountants. He has also authored several on-line continuing education courses for CPAs including one that meets the Texas State Board of Accountancy requirements for continuing education by Texas CPAs. He teaches courses in auditing, ethics, financial accounting and managerial accounting in the MBA program at Baylor.     

A Genealogy of Business Ethics: A Nietzschean Perspective

This article approaches the field of business ethics from a Nietzschean vantage point, which means explaining the weakness of the field by means of providing an etiological account of the values esteemed by the decadent business ethicists therein. I argue that such business ethicists have wandered from their immanent philosophical ground to act as scientists, businesspersons, and preaching-moralists as a way of evading their human self-contradictions. In actuality, this fleeing exacerbates them into a sickness of self-idolatry and self-loathing. I bring in Nietzsche’s approach to the value of truth and his ascetic priest figure to get to the origin of this problem. Moreover, I attend throughout to delimiting the field of business ethics as that branch of ethics that can be taught in business schools. Indeed, the article itself is a movement in this direction, being inherently and intentionally philosophical.     

Similarities in Business and IT Professional Ethics: The Need for and Development of A Comprehensive Code of Ethics

The study of business ethics has led to the development of various principles that are the foundation of good and ethical business practices. A corresponding study of Information Technology (IT) professionals’ ethics has led to the conclusion that good ethics in the development and uses of information technology correspond to the basic business principle that good ethics is good business. Ergo, good business ethics practiced by IT professionals is good IT ethics and vice versa. IT professionals are professionals in businesses; a difficulty presented to these professionals, however, is the number and diversity of codes of ethics to which they may be held. Considering the existence of several formalized codes of ethics prepared by various IT professionals’ associations, a more harmonized approach seems more reasonable. This paper attempts to present a review of the purpose of codes of ethics, the persons who should be covered by such codes and to organize codes of ethics for business in general and IT professionals in particular and to make the argument that, once again, good ethics is good business practice, regardless of the profession or occupation concerned