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.     

To Thine Own Self Be True? Employees’ Judgments of the Authenticity of Their Organization’s Corporate Social Responsibility Program

Despite recognizing the importance of developing authentic corporate social responsibility (CSR) programs, noticeably absent from the literature is consideration for how employees distinguish between authentic and inauthentic CSR programs. This is somewhat surprising given that employees are essentially the face of their organization and are largely expected to act as ambassadors for the organization’s CSR program (Collier and Esteban in Bus Ethics 16:19–33, 2007). The current research, by conducting depth interviews with employees, builds a better understanding of how employees differentiate between authentic and inauthentic CSR programs, and how these judgments influence their perceptions of the organization. We find that employees rely on two different referent standards to form authenticity judgments—the extent to which the image put forth in the CSR program aligns with the organization’s true identity and the extent to which the CSR program itself is developmental. To assess the former, employees draw on cues about resource commitment, alignment between elements of the organization’s CSR program, emotional engagement, justice, and embeddedness. The latter assessments are based on the extent to which the organization adopts a leadership role with regards to its CSR initiatives. We also find that perceived authenticity can lead to positive outcomes such as organizational identification and employee connections. This study contributes to the broad literatures on both CSR and authenticity, as well as more specifically adding to the conversation on authenticity as a potentially valuable lens for enriching business ethics theorizing.     

Marxism,Business Ethics,and Corporate Social Responsibility

Originally delivered at a conference of Marxist philosophers in China, this article examines some links, and some tensions, between business ethics and the traditional concerns of Marxism. After discussing the emergence of business ethics as an academic discipline, it explores and attempts to answer two Marxist objections that might be brought against the enterprise of business ethics. The first is that business ethics is impossible because capitalism itself tends to produce greedy, overreaching, and unethical business behavior. The second is that business ethics is irrelevant because focusing on the moral or immoral conduct of individual firms or businesspeople distracts one’s attention from the systemic vices of capitalism. I argue, to the contrary, that, far from being impossible, business requires and indeed presupposes ethics and that for those who share Marx’s hope for a better society, nothing could be more relevant than engaging the debate over corporate social responsibility. In line with this, the article concludes by sketching some considerations favoring corporations’ adopting a broader view of their social and moral responsibilities, one that encompasses more than the pursuit of profit.     

The State of Business Ethics in Israel: A Light Unto the Nations?

Whether the nation of Israel has become a “light unto the nations” in terms of ethical behavior among its business community remains in doubt. To examine the current state of business ethics in Israel, the study examines the following: (1) the extent of business ethics education in Israel; (2) the existence of formal corporate ethics program elements based on an annual survey of over 50 large Israeli corporations conducted over 5 years (2006–2010); and (3) perceptions of the state of business ethics based on interviews conducted with 22 senior Israeli corporate executives. In general, and particularly as a young country, Israel might be considered to have made great improvements in the state of business ethics over the years. In terms of business ethics education, the vast majority of universities and colleges offer at least an elective course in business ethics. In terms of formal business ethics program elements, many large companies now have a code of ethics, and over time continue to add additional elements. Most respondents believed they worked in ethical firms. Despite these developments, however, there appears to be significant room for improvement, particularly in terms of issues like: nepotism/favoritism; discrimination; confidentiality; treatment of customers; advertising; competitive intelligence; whistle-blowing; worker health and safety; and the protection of the environment. When compared with the U.S. or Europe, most believed that Israeli firms and their agents were not as ethical in business. A number of reasons were suggested that might be affecting the state of business ethics in Israel. A series of recommendations were also provided on how firms can better encourage an ethical corporate culture. The paper concludes with its limitations.     

How Can I Become a Responsible Subject? Towards a Practice-Based Ethics of Responsiveness

Approaches to business ethics can be roughly divided into two streams: ‹codes of behavior’ and ‹forms of subjectification’, with code-oriented approaches clearly dominating the field. Through an elaboration of poststructuralist approaches to moral philosophy, this paper questions the emphasis on codes of behaviour and, thus, the conceptions of the moral and responsible subject that are inherent in rule-based approaches. As a consequence of this critique, the concept of a practice-based ‹ethics of responsiveness’ in which ethics is never final but rather always ‹to come’, is investigated. In such an approach the ethical self is understood as being continuously constituted within power/knowledge relations. Following this line, we ask how one can become a responsible subject while also acknowledging certain limits of full responsibility. We thereby explore responsibility as a considered but unconditional openness in response to the other.     

Towards Authenticity: A Sartrean Perspective on Business Ethics

Taking a Sartrean existentialist viewpoint towards business ethics, in particular, concerning the question of the nature of businesspersons’ moral character, provides for a dramatically distinct set of reflections from those afforded by the received view on character, namely that of Aristotelian-based virtue ethics. Insofar as Sartre’s philosophy places human freedom at center stage, I argue that the authenticity with which a businessperson approaches moral situations depends on the degree of consciousness he or she has of the various choices at stake. Finally, I consider some practical changes in business ethics education, managerial decision-making, and business organizations that Sartrean reflections might prompt.     

An Analysis of 10 years of Business Ethics Research in Strategic Management Journal: 1996–2005

From a corporate governance perspective, one of the most important jobs of a firm’s top management team is to create and maintain a positive moral environment. Business ethics has long been considered a cornerstone in the field of strategic management and a number of scholars have called for more research in this area over the years. In this paper 658 articles that appeared in Strategic Management Journal over the 10-year period between 1996 and 2005 are reviewed for business ethics focus and content. The results reveal that while business ethics research in Strategic Management Journal is on the rise, the overall focus on this research stream has been limited. The most prominent ethics theme during the review period was environmentalism, accounting for 30% of all ethics articles. Author affiliations, future research directions, and implications are also discussed.     

Proximity and Rationalisation: The Limits of a Levinasian Ethics in the Context of Corporate Governance and Regulation

In this article, I explore how the ideas of French philosopher Emmanuel Levinas offer insights into a debate often held today in the field of corporate governance, concerning the relative merits of statutory and voluntary approaches to the regulation of business. The philosophical position outlined by Levinas questions whether any rule-based systematisation of ethical responsibility, either statutory or voluntary, can ever equate to a genuine responsibility for the other person. I reflect on how various authors have adapted Levinas’s philosophy to form a critique of bureaucracy and rule following in business, and the lack of ethical authenticity in corporate codes. However, this article also considers the question of whether a theoretical separation can be made between an ethical responsibility based on sensibility (as is suggested by Levinas) and a rational conceptualisation of how one is required to act. Considering the difficulty of disentangling these notions of ethics, I return to the problem of corporate governance and suggest an approach to stakeholder conflict based on mediation and dialogue, which rules out neither principles of conduct nor an openness of responsibility to the Other.     

Allhoff on Business Bluffing

The moral status of business bluffing is a controversial issue. On the one hand, bluffing would seem to be relevantly similar to lying and deception. Because of this, business bluffing can be taken to be an activity that is at least prima facie morally condemnable. On the other hand, it has often been claimed that in business bluffing is part of the game and that therefore there is nothing morally questionable in business bluffing. In a recent issue of this journal, Fritz Allhoff puts forward a novel defence of business bluffing. In this article, I will examine Allhoff’s arguments for the moral acceptability of business bluffing and argue that they are implausible. Dr. Jukka Varelius is a Visiting Fellow in the Centre for Professional Ethics at the University of Central Lancashire, UK. His research concentrates on questions of biomedical ethics, psychiatric ethics, and business ethics. His publications include ‘Voluntary euthanasia, physician-assisted suicide and the goals of medicine’ Journal of Medicine and Philosophy 2006, 31 (2): 1--18, ‘Execution by lethal injection, euthanasia, organ-donation and the proper goals of medicine’ Bioethics, forthcoming, and ‘Autonomy, well-being and the case of the refusing patient’ Medicine, Health Care and Philosophy, forthcoming.     

To Pay or Not to Pay? Dynamic Transparency and the Fight Against the Mafia’s Extortionists

This article presents the results of the longitudinal study of Addiopizzo, a successful anti-bribery organization founded in Sicily in 2004. It analyzes how this organization has used information disclosure as a strategy to fight adverse environmental conditions and the immoral activities of the Sicilian Mafia. This article extends the business ethics and corporate social responsibility literature by showing how multi-level strategic information disclosure processes can help gain organizational legitimacy in adverse social environments and successfully fight against social resistance to change, low levels of moral imagination and attacks from criminal organizations. This article provides an additional contribution to the literature by linking the three research streams on corporate transparency, the fight against corruption, and organizational legitimacy. The results of this research also contribute to the special issue of the EBEN AC 2010, “Which values for which organizations”, since it provides a unique example of an organization capable of spreading the values of social justice and honesty in a difficult social environment plagued by Mafia.     

The Decomposition of the Corporate Body: What Kant Cannot Contribute to Business Ethics

Kant is gaining popularity in business ethics because the categorical imperative rules out actions such as deceptive advertising and exploitative working conditions, both of which treat people merely as means to an end. However, those who apply Kant in this way often hold businesses themselves morally accountable, and this conception of collective responsibility contradicts the kind of moral agency that underlies Kant’s ethics. A business has neither inclinations nor the capacity to reason, so it lacks the conditions necessary for constraint by the moral law. Instead, corporate policies ought to be understood as analogous to legal constraints. They may encourage or discourage certain actions, but they cannot determine a person’s maxim – which for Kant is the focus of moral judgment. Because there is no collective intention apart from any intentions of the individual agents who act as members of the corporation, an organization itself has no moral obligations. This poses a dilemma: either apply the categorical imperative to the actions of particular businesspeople and surrender the notion of collective responsibility, or apply a different moral theory to the actions of businesses themselves. Given the diffusion of responsibility in a bureaucracy, the explanatory usefulness of collective responsibility may force business ethicists to abandon Kant’s moral philosophy.     

Explicating Ethical Corporate Marketing. Insights from the BP Deepwater Horizon Catastrophe: The Ethical Brand that Exploded and then Imploded

Ethical corporate marketing—as an organisational-wide philosophy—transcends the domains of corporate social responsibility, business ethics, stakeholder theory and corporate marketing. This being said, ethical corporate marketing represents a logical development vis-a-vis the nascent domain of corporate marketing has an explicit ethical/CSR dimension and extends stakeholder theory by taking account of an institution’s past, present and (prospective) future stakeholders. In our article, we discuss, scrutinise and elaborate the notion of ethical corporate marketing. We argue that an ethical corporate marketing positioning is a prerequisite for corporations which claim to have an authentic ethical corporate identity. Our article expands and integrates extant scholarship vis-a-vis ethical corporate identities, the sustainable entrepreneur and corporate marketing. In delineating the breadth, significance, and challenges of ethical corporate marketing we make reference to the BP Deepwater Horizon (Gulf of Mexico) catastrophe of 2010.     

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.     

Universal Moral Values for Corporate Codes of Ethics

How can one establish if a corporate code of ethics is ethical in terms of its content? One important first step might be the establishment of core universal moral values by which corporate codes of ethics can be ethically constructed and evaluated. Following a review of normative research on corporate codes of ethics, a set of universal moral values is generated by considering three sources: (1) corporate codes of ethics; (2) global codes of ethics; and (3) the business ethics literature. Based on the convergence of the three sources of standards, six universal moral values for corporate codes of ethics are proposed including: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship. Relying on the proposed set of universal moral values, implications are discussed as to what the content of corporate codes of ethics should consist of. The paper concludes with its limitations.     

Survey of Teaching,Training, and Research in the field of Economic and Business Ethics in Latin America

Theories of business ethics or corporate responsibility tend to focus on justifying obligations that go above and beyond what is required by law. This article examines the curious fact that most business ethics scholars use concepts, principles, and normative methods for identifying and justifying these beyond-compliance obligations that are very different from the ones that are used to set the levels of regulations themselves. Its modest proposal—a plea for a research agenda, really—is that we could reduce this normative asymmetry by borrowing from the normative framework of “regulation” to identify and justify an important range of beyond-compliance obligations. In short, we might think of “self-regulation” as a language and a normative framework with some distinct advantages over other frameworks like stakeholder theory, corporate social responsibility, corporate citizenship, and the like. These other frameworks have been under attack in the business ethics literature of late, primarily for their vagueness and their disappointing inability to distinguish clearly between genuine beyond-compliance moral obligations, on the one hand, and charitable acts that are laudable but not morally obligatory, on the other.     

The impossibility of corporate ethics: for a Levinasian approach to managerial ethics

The moral philosophy of Levinas offers a stark prospectus of impossibility for corporate ethics. It differs from most traditional ethical theories in that, for Levinas, the ethical develops in a personal meeting of one with the Other, rather than residing in some internal deliberation of the moral subject. Levinasian ethics emphasises an infinite personal responsibility arising for each of us in the face of the Other and in the presence of the Third. It stresses the imperious demand we experience to be open to, prepared for and impassioned with that which we may not know, or recognise, about ourselves or about the Other. Such a demand transcends our intellectual and/or rational potential; it involves us in a carnal and somatic bodily experience of otherness. If we are to speak of Levinasian ethics in a business context, it cannot be a matter of corporate ethics but only a matter of individual managerial ethics. What such an ethics would be like is yet to be outlined. This paper proposes a series of questions and suggestions that will explicate some key terms of a practice organised around a Levinasian vocabulary of otherness, responsibility, proximity, diachrony and justice.     

For or Against Corporate Identity? Personification and the Problem of Moral Agency

This article explores the concept of corporate identity from a moral perspective. In it we argue that the reification and personification involved in attributing an identity to an organization has moral repercussions. Through a discussion of ‘intentionality’ we suggest that it is philosophically problematic to treat an abstraction of the corporation as possessing identity or acting as a conscious moral agent. The article moves to consider practical and ethical issues in the areas of organizational commitment, of health and safety, and corporate social responsibility, and finds that the notion of identity can be abused, although it will no doubt continue to be used as it does have some practical utility. In conclusion, we argue that despite being meaningless from a philosophical stance, the concept of corporate identity need not be discarded, however, it is far from benign and intense moral scrutiny is necessary wherever it is applied. Ian Ashman PhD is a senior lecturer in the HRM division of the Lancashire business School, University of Central Lancashire. He has recently authored a number of papers on business ethics, leadership and research methods, all of which draw upon his interest in philosophies of existential phenomenology. He is an executive member of European Business Ethics Network U.K. Professor Diana Winstanley PhD, FCIPD was Director of Postgraduate Programmes at Kingston Business School, Kingston University. She wrote over 50 articles and five books, including her latest, ‚Personal Effectiveness: A Guide to Action’ (2005, CIPD) and Ethical Issues in Contemporary Human Resource Development (2000, Macmillan). She was a trained humanistic counsellor and an executive member of European Business Ethics Network U.K. Her research interests were in the areas of workplace learning, development, diversity and business ethics. Sadly, Diana Winstanley, died last summer.     

商业伦理的构建——公司治理的一个视角

在经济飞速发展的今天,商业伦理正越来越受到高度重视。商业伦理本身并不具有法律意义上的强制性,但它具有道德意义上的导向性和自我约束性,是一个企业乃至一个商业社会和谐、长远发展的基石。同时,商业伦理也是人们在追求商业利益过程中应当遵循的道德原则。     

Moral theory and defective tobacco advertising and warnings (the business ethics of Cipollone v. Liggett Group)

Traditional moral theories help corporate decision-makers understand what position consumers, like Rose Cipollone, in Cipollone vs Liggett Group, will take against cigarette manufacturers who fail to warn of the dangers of smoking, conceal data about addiction and other dangers, from the public, as well as continue to neutralize the warnings on cigarettes by deceptive advertisements. John F. Quinn teaches philosophy and management at the University of Dayton. He did his doctoral studies at the University of Washington in philosophy and his legal doctorate at the University of Dayton. Recently new to business ethics, after years of teaching medieval philosophy and aesthetics, he brings a knowledge of business law and management to his work in business ethics. His book with J.M.B. Crawford on The Christian Foundations of Criminal Responsibility, an integration of medieval moral theology and the common law tradition of criminal responsibility, will soon be published by Mellon Press. He also practices law in Ohio in select corporate issues.     

Bridging Ethics and Self Leadership: Overcoming Ethical Discrepancies Between Employee and Organizational Standards

In spite of extensive study and efforts to improve business ethics and increase corporate social responsibility, a quick review of almost any business publication will show that breaches of ethics are a common occurrence in the business community. In this paper we explore reasons for potential discrepancies or gaps between organizational and individual ethical standards, the consequences of such discrepancies, and possible methods of reducing the detrimental effects of these differences. The concept of self-leadership, as constructed through social learning theory is examined, and shown to be a potentially valuable tool for employees' use in making reasoned decisions in varying organizational ethical climates. Specifically, the authors will show how the practice of self-leadership can be employed as an important means to improve moral action within the firm.