Limitations of ethical reasoning as an action (praxis) strategy

For both philosophers and managers, reasoning with ourselves and others can be used both as (1) a way of knowing what is ethical and (2) a way of acting to help ourselves, others and organizations behave ethically. However, for many of us, knowing is frequently not the same as acting. Four areas are addressed: (1) thirteen limitations of ethical reasoning as an action strategy; (2) how a better understanding of these limitations can strengthen ethical reasoning as an action strategy; (3) how an understanding of these limitations can serve as a conceptual foundation for exploring other ethical action strategies; and, (4) implications for experiential learning and teaching. Richard P. Nielsen is a Management Professor in the Department of Organizational Studies, School of Management, Boston College, Chestnut Hill, MA 02167. Related articles of his include Toward an Action Philosophy for Managers Based on Arendt and Tillich, Journal of Business Ethics, May 1984, What Can Managers Do about Unethical Management, Journal of Business Ethics, May 1987, and Cooperative Strategy, Strategic Management Journal 9, 1988.     

Ethics Training and Businesspersons’ Perceptions of Organizational Ethics

Ethics training is commonly cited as a primary method for increasing employees ethical decision making and conduct. However, little is known about how the presence of ethics training can enhance other components of an organization's ethical environment such as employees perception of company ethical values. Using a national sample of 313 business professionals employed in the United States, the relationship between ethics training and perceived organizational ethics was explored. The results of the analysis provide significant statistical support for the notion that businesspersons employed in organizations that have formalized ethics training programs have more positive perceptions of their companies ethical context than do individuals employed in organizations that do not. The analysis also indicated that job satisfaction was related to employees attitudes about their ethical context. The managerial implications of the results are outlined, along with the limitations of the study and recommendations for future research.     

Is there any ethics in business ethics

It is argued, against Richard T. De George, that while clarification of concepts, implications, and presuppositions in business ethics largely relies on a neutral territory of reason, determination of what moral intuitions are correct depends on non-neutral ethical theories. The latter posit ethics in business to varying degrees. Thus while the Kantian and utilitarian ethical theories are, for De George, proper (philosophical) approaches to business ethics, they are as reliant on affirming and encouraging moral sentiments outside parameters of pure reason as theological approaches. And hence if theological approaches can make no unique contribution by virtue of relying on more than reason or experience alone, then philosophical approaches can make no distinctive contribution either. Either both are viable or neither are. Oscillation between the mutually dependent notions of business ethics and ethics in business obfuscates what the field of business ethics is and renders De George's position inadequate.Robert Trundle, Jr., received his Ph.D. at the University of Colorado, and is Assistant Professor of Philosophy at Northern Kentucky University where he teaches Business Ethics. He has worked at such companies as Stearns-Roger and Rogerson-Hiller Corporation where he was a member of the Hazardous Materials Safety Committee.     

Questioning the Domain of the Business Ethics Curriculum

This paper reassesses the domain of the business ethics curriculum and, drawing on recent shifts in the business environment, maps out some suggestions for extending the core ground of the discipline. It starts by assessing the key elements of the dominant English- language business ethics textbooks and identifying the domain as reflected by those publications as where the law ends and beyond the legal minimum. Based on this, the paper identifies potential gaps and new areas for the discipline by drawing on four main aspects. First, it argues that the domain of business ethics requires extensions dependent on the particular geographic region where the subject is taught. A second factor for broadening the scope is the impact of recent scandals, which arguably direct the focus of ethical inquiry towards the nature of the business systems in which individuals and corporations operate. Third, the impact of globalization and its result on growing corporate involvement in regulatory processes is discussed. Fourth and finally, business ethics reaches beyond the traditional constituencies of economic stakeholders as new actors from civil society enter the stage of ethical decision making in business. We conclude by suggesting that a reconsideration of the domain of business ethics, especially in Europe, is timely, but that to do so represents a major challenge to business ethics educators.     

Can Ethical Organizational Character Be Stimulated and Enabled?: “Upbuilding” Dialog As Crisis Management Method

Crisis management can be simultaneously a content specific problem solving process and an opportunity for stimulating and enabling an organizations ethical tradition. Crisis can be an opportunity for ethical organizational development. Kierkegaardian upbuilding dialog method builds from within the internal ethical tradition of an organization to respond to crises while simultaneously adapting and protecting the organizations tradition. The crisis itself may not be a directly ethical crisis, but the method of responding to the crisis is built upon the ethical foundations of an organizations tradition. A limitation of this method is that it may be less applicable to organizations with questionably ethical traditions. The concept of upbuilding dialog is derived from Kierkegaard, but here is applied to organizational crisis management. The method is illustrated and discussed in the context of a wrongful death crisis of the Dana- Farber Cancer Institute, a nonprofit organization, and an economic survival crisis at Ben and Jerrys, a business organization.     

Ethical Beliefs and Management Behaviour: A Cross-Cultural Comparison

A cross-cultural empirical study is reported in this article which looks at ethical beliefs and behaviours among French and German managers, and compares this with previous studies of U.S. and Israeli managers using a similar questionnaire. Comparisons are made between what managers say they believe, and what they do, between managers and their peers' attitudes and behaviours, and between perceived top management attitudes and the existence of company policy. In the latter, significant differences are found by national ownership of the company rather than the country in which it is situated. Significant differences are found, for both individual managers by nationality, and for companies by nationality of parents, in the area of organizational loyalty. The attitude towards accepting gifts and favours in exchange for preferential treatment, as a measure of societal values, is also found to show significant differences between national groups. However, no significant differences are found for measures for group loyalty, conflict between organizational and group loyalty and for conflicts between self and group/organization. The findings have implications for cross-border management decision strategies regarding such issues as receiving and giving of gifts, and the management of relations between local employees and international organizations which may be affected by differences in attitude to corporate loyalty.     

Business ethics: Conflicts,practices and beliefs of industrial executives

This paper presents the responses of 118 executives to a mail survey which examined their views of business ethics and various business practices. In addition to identifying various sources of ethical conflict, current business practices are also examined with respect to how ethical or unethical each is believed to be. Results are also presented which outline executive responses to four ethical business situations. Overall conclusions to the study are outlined, as well as future research needs.Scott J. Vitell is Assistant Professor of Marketing at the University of Mississippi. His most important publications include A General Theory of Marketing Ethics (1986) (with Shelby D. Hunt) and Marketing's Contribution to Economic Development: A Look at the Last 30 Years (1985) (with Van R. Wood). Troy A. Festervand is an Associate Professor of Marketing at the University of Mississippi. Dr. Festervand obtained his Ph.D. in 1980 from the University of Arkansas. His publications have appeared in the Akron Business and Economic Review, Journal of Small Business Management, and elsewhere. He is active in a number of organizations and a frequent participant at professional meetings.     

Corporate responsibility and corporate personhood

In this paper, I consider the claim that a corporation cannot be held to be morally responsible unless it is a person. First, I argue that this claim is ambigious. Person flags three different but related notions: metaphysical person, moral agent, moral person. I argue that, though one can make the claim that corporates are metaphysical persons, this claim is only marginally relevant to the question of corporate moral responsibility. The central question which must be answered in discussions of corporate moral responsibility is whether corporations are moral agents or moral persons. I argue that, though we can make a case for saying corporations are moral agents, they are not moral persons, and hence, we can hold them responsible. In addition, we need not treat them the way we would be obligated to treat a moral person; we needn't have the same scruples about holding a corporation morally responsible as we would a moral person. Rita C. Manning is Lecturer at California State College, San Bernardino. She has published in Southern Journal of Philosophy and in Informal Logic.     

Mill's proof that happiness is the criterion of morality

This paper considers the converse of the principle that ought implies can, namely, the principle that must implies ought. It argues that this principle is the central premiss for Mill's argument that happiness is desirable (worthy of desire), and it examines the sense of must that is relevant and the implications it has for Mill's moral philosophy.     

What is business ethics? A reply to peter drucker

In his What is Business Ethics? Peter Drucker accuses business ethics of singling out business unfairly for special ethical treatment, of subordinating ethical to political concerns, and of being, not ethics at all, but ethical chic. We contend that Drucker's denunciation of business ethics rests upon a fundamental misunderstanding of the field. This article is a response to his charges and an effort to clarify the nature, scope and purpose of business ethics.     

The indefensibility of insider trading

The article, Inside Trading Revisited, has taken the stance that insider trading is neither unethical nor economically inefficient. Attacking my arguments to the contrary developed in an earlier article, The Ethics of Inside Trading (Journal of Business Ethics, 1989) this article constructs careful arguments and even appeals to Adam Smith to justify its conclusions. In my response to this article I shall clarify my position as well as that of Smith to support my counter-contention that insider trading is both unethical and inefficient. Patricia H. Werhane is the Henry J. Wirtenberger Professor of Business Ethics at Loyola University, Chicago. She is the author or editor of seven books including Ethical Issues in Business,edited with Tom Donaldson, in its third edition, Persons, Rights, and Corporations, Profits and Responsibility,and Philosophical Issues in Human Rights,edited with David Ozar and A. R. Gini. She is past president of the Society for Value Inquiry, founding member, past president and Executive Director of the Society of Business Ethics, and Chairperson of the Ethics Advisory Council of Arthur Andersen & Co. She serves on the editorial boards of the Journal of Business Ethics,the Journal of Value-Based Management, and Public Affairs Quarterly,and is Editor-in-Chief of Business Ethics Quarterly.Her book, Adam Smith and his Legacy for Modern Capitalismis forthcoming with Oxford University Press.     

Teaching Business Ethics,or the Challenge of a Socratic-Nietzschean Self-Transcendence for Teachers

Business ethics courses often focus on the path toethical behaviour. This paper discusses why teachersask to themselves how to modify major aspects of thepersonality (values, virtues, moral principles) oftheir students. There are two basic motives behindsuch an obsession of results: (1) the claim that wecan modify the personal value systems of our students;(2) the desire and anxiety to be, as teachers,counter-cultural agents. We will use a philosophicalframework, and will define self-transcendence forteachers (as well as for students) as including botha Socratic radical doubt about reality and knowledge(the awareness of our illusory understanding ofreality, and the ability to question our mostcherished beliefs and values) and the Nietzschean``Overman (the ability to assess things, people andevents in focusing on their ``worth for life, ingetting rid of our will to believe and our will totruth).     

Intellectual Property and the Pharmaceutical Industry: A Moral Crossroads Between Health and Property

The moral justification of intellectual property is often called into question when placed in the context of pharmaceutical patents and global health concerns. The theoretical accounts of both John Rawls and Robert Nozick provide an excellent ethical framework from which such questions can be clarified. While Nozick upholds an individuals right to intellectual property, based upon its conformation with Lockean notions of property and Nozicks ideas of just acquisition and transfer, Rawls emphasizes the importance of basic liberties, such as an individuals right to health, superceding such secondary rights as intellectual property rights. From a policy perspective, patent protection for pharmaceutical products necessarily entails the balancing of corporate intellectual property interests and public interests in healthcare. The moral dilemma that occurs when these two interests clash is not easily resolved. Aside from corporate and public interests, the state maintains an interest in creating and preserving policies that regulate the moral dilemma itself. This paper analyzes the economic and ethical factors surrounding the production and distribution of the anti-HIV medication, AZT. Potential policy implications and recommendations are also discussed.     

Beyond bean counting: Establishing high ethical standards in the public accounting profession

Business professions are increasingly faced with the question of how to best monitor the ethical behavior of their members. Conflicts could exist between a profession's desire to self-regulate and its accountability to the public at large. This study examines how members of one profession, public accounting, evaluate the relative effectiveness of various self-regulatory and externally imposed mechanisms for promoting a climate of high ethical behavior. Specifically, the roles of independent public accountants, regulatory and rule setting agencies, and undergraduate accounting education are investigated. Of 461 possible respondents, 230 questionnaires (a 49.6% response rate) indicated that the profession's own rule setting body (The American Institute of Certified Public Accountants) and the use of peer review were perceived as the most effective mechanisms, while government regulation was ranked least. Respondents also evaluated the extent to which ethics should be covered in the accounting curriculum. For every course, the CPAs believed a greater emphasis on ethics is appropriate than presently exists. Suggestions for more effectively integrating ethics into accounting courses are made. Finally, respondents were also asked whether in answering the questionnaire they used a definition of ethics as either the Professional Code of Conduct or a moral and philosphical framework for guiding beliefs. Those who viewed ethics as abiding by a professional code had more confidence in the mechanisms addressed in this study to aid the public accounting profession's ability to ensure high ethical standards of conduct. Methodological implications of this distinction for future studies in business ethics are discussed. Jeffrey R. Cohen is Assistant Professor of Accounting at Boston College. He received his Ph.D. from The University of Massachusetts at Amherst. He is a C.M.A. and a Peat Marwick Research Fellow. His articles have appeared in the Journal of Accounting Research, Decision Sciences and The Organizational Behavior Teaching Review. His work on Ethics has appeared in Issues in Accounting Education, Management Accounting, and The CPA Journal. Laurie W. Pant is Assistant Professor of Accounting at Boston College. She holds an M.B.A. and a D.B.A. from Boston University and an M.Ed. from Emory University. She serves on the editorial board of Issues in Accounting Education. Her articles on Ethics have appeared in Issues in Accounting Education, Management Accounting and The Organizational Behavior Teaching Review.An earlier version of this paper was presented at the 1989 American Accounting Association National Meeting.     

Reactions to ethical dilemmas: A study pertaining to certified public accountants

This study discusses how perceptions of ethics are formed by certified public accountants (CPAs). Theologians are used as a point of comparison. When considering CPA ethical dilemmas, both subject groups in this research project viewed confidentiality and independence as more important than recipient of responsibility and seriousness of breach. Neither group, however, was insensitive to any of the factors presented for its consideration. CPA reactions to ethical dilemmas were governed primarily by provisions of the CPA ethics code; conformity to that code may well be evidence of higher stage moral reasoning.Gregory A. Claypool is Associate Professor of Accounting and Finance at Youngstown State University.David F. Fetyko is Professor of Accounting at Kent State University. Michael A. Pearson is Professor of Accounting at Kent State University. He is the author of Enhancing Perceptions of Auditor Independence, Journal of Business Ethics 4 (1985), 53–6, and Auditor Independence Deficiencies and Alleged Audit Failures, Journal of Business Ethics 6 (1987), 281–7.     

Moral Choice and the Declining Influence of Traditional Value Orientations Within the Financial Sector of a Rapidly Developing Region of the People’s Republic of China

This paper describes the results of a field experiment involving 400 employees from ten financial institutions operating within the Shenzhen Special Economic Zone of the Peoples Republic of China. It was found that, when faced with an agency-based problem, employees indicated they would be less inclined to advise management of the existence of unethical work practices. Younger employees without supervisory experience displayed significant risk aversion. Traditional Chinese values associated with Confucian work dynamism, were shown to be poor predictors of moral choice response. A parsimonious regression model was developed that provides evidence that the universal trait Masculinity/Femininity (Human-heartedness) acted to offset the negative influence of the agency problem. On the other hand, an operatives level of education attainment exerted a negative influence on moral response scores.     

Leaders,Values, and Organizational Climate: Examining Leadership Strategies for Establishing an Organizational Climate Regarding Ethics

This paper examines the critical role that organizational leaders play in establishing a values based climate. We discuss seven mechanisms by which leaders convey the importance of ethical values to members, and establish the expectations regarding ethical conduct that become engrained in the organizations climate. We also suggest that leaders at different organizational levels rely on different mechanisms to transmit values and expectations. These mechanisms then influence members practices and expectations, further increase the salience of ethical values and result in the shared perceptions that form the organizations climate. The paper is organized in three parts. Part onebegins with a brief discussion of climates regarding ethics and the critical role of values. Part two provides discussion on the mechanisms by which leaders and members transmit values and create climates related to ethics. Part three provides a discussion of these concepts with implications for theory, research, and practice.     

A note on government policy and the new ‘intrapreneurship’ in Bulgaria

Conclusion I have attempted in this paper to highlight the recent emergence and rapid growth of a particular type of intrapreneurship in the Bulgarian economy. This intrapreneurship involves the creation of new smaller establishments within existing large-scale industrial firms. These semi-autonomous auxiliary plants are exempt from part of the bureaucracy which constrains the larger addition, they have provided a higher rate of technological advance, a better supply of consumer goods, a greater utilization of labor resources, and a higher return to human capital.Only through the continued development of a small-firm sector can the Bulgarian economy meet the challenge currently posed by its western counterparts. Whether the next step from intrapreneurship to entrepreneurship is taken may hold the key for industrial development in Bulgaria.     

Creating a Market Orientation

A market orientation is a business culture in whichall employees are committed to the continuous creation of superiorvalue for customers. However, businesses report limited successin developing such a culture. One approach to create a marketorientation, the approach taken by most businesses, is the programmaticapproach, an a priori approach in which a business uses educationprograms and organizational changes to attempt to implant thedesired norm of continuously creating superior value for customers.A second approach is the market-back approach, an experientialapproach in which a business continuously learns from its day-to-dayefforts to create and maintain superior value for customers andthereby continuously develops and adapts its customer-value skills,resources, and procedures. Theory suggests that both approachescontribute to increasing a market orientation. It also suggeststhat when the a priori education of the programmatic approachis sharply focused on providing a foundation for the experientiallearning, the combined effect of the two learning strategiesis the largest. The implication is that the two strategies mustbe tailored and managed as a coordinated joint strategy for creatinga market orientation.     

A Qualitative Exploration into Voters' Ethical Perceptions of Political Advertising: Discourse, Disinformation, and Moral Boundaries

Political campaign advertising continues to be a controversial policy topic in advertising and marketing research. It is also a prime subject for investigating the ethical evaluations of consumers (or voters). The following study draws from postmodern communication theory and employs a qualitative research methodology in order to explore voters' intimate and subjective views about politics, candidates, and political advertising. The findings include emergent themes relating to significant media rituals in voters' lives, the cynical perspective of politics as a game, and the widespread disapproval and suspicion with which voters regard negative political advertising. Additionally, the a priori theme of political information as disinformation was proposed and expanded upon. Findings are discussed in light of a greater understanding of the appropriateness of the traditional versus the postmodern perspective of political communication, informants' construction of moral boundaries which help them determine right from wrong, acceptable vs. unacceptable political behaviours in this particular context.