Fair markets

The paper challenges a minimalist strategy in business ethics that maintains if it's legal, it's moral. In hard cases, judges decide legal issues by appealing to moral ideals. Investigation shows that the bedrock concept is fairness. Often judges define fairness in terms of non-coerciveness or equality of bargaining power. The prudent manager must look beyond the legal department to the ethical notion of fairness. Moreover, if the courts were to consistently appeal to non-coerciveness and equality of bargaining power, some practices now considered morally acceptable would be neither moral nor legal. Norman E. Bowie is Professor of Philosophy and Director of the Center for the Study of Values at the University of Delaware. He is the author of numerous articles on business ethics and social and political philosophy and of Business Ethics, Making Ethical Decisions (ed.), The Tradition of Philosophy (co-ed.), and Ethical Theory and Business (co-ed.).     

Current research in moral development as a decision support system

This paper argues that human beings possess the rational capabilities necessary to achieve the goal of more just and peaceable social orders, but that our educational institutions are failing in their responsibility to do what in fact can be done to produce graduates who make decisions in ways most likely to achieve this goal.Data compiled by us, consistent with other research, indicates that only a small percentage of the individuals graduating from universities and professional schools have developed the capacity for post-conventional moral reasoning. William Y. Penn, Jr. is Associate Professor of Philosophy and Religious Studies at St. Edward's University, Austin, TX. He held a chair at the Department of Religion of the Archbishop Hoban High School. His most important publication is: Kohlberg and Business Ethics, Edwin Mellon Press. A Collection of essays on business ethics is forthcoming. Boyd D. Collier is Professor and Head of the Department of Accounting and Finance at the Tarleton State University. Formerly he was Senior Lecturer at the University of Texas at Austin and Dean at the Center of Business Administration at St. Edward's University. His most important publications are: The Valuation of External Diseconomies of Pollution, The Journal of Environmental Planning and Pollution Control, 1973, Accounting for Convertible Bonds Impact on Earnings Per Share, Management Accounting 1979, and Measurement and Environmental Deterioration, University of Texas Bureau of Business Research Monograph No. 34.     

An ethical analysis of deception in advertising

This paper examines several issues regarding deception in advertising. Some generally accepted definitions are considered and found to be inadequate. An alternative definition is proposed for legal/regulatory purposes and is related to a suggested definition of the term deception as it is used in everyday language. Based upon these definitions, suggestions are offered for detecting and regulating deception in advertising. This paper additionally considers the grounds for the generally held but largely unquestioned assumption that deceptive advertising is unethical. It is argued that deceptive advertising can be shown to be morally objectionable, on the weak assumption that it is prima facie wrong to harm others. Finally, the implications of this analysis with respect to current regulation of deceptive advertising by the FTC are considered. Thomas L. Carson is Assistant Professor of Philosophy at the Virginia Polytechnic Institute and State University. He was previously Lecturer at the University of California at Los Angeles and was holder of an NEH Fellowship for College Teachers. His most important publication is The Status of Morality, Reidel, Dordrecht, 1984. Forthcoming (in Philosophy and Public Affairs) is: Bribery, Extortion, and The Foreign Corrupt Practices Act.Richard E. Wokutch is Associate Professor of Management at the Virginia Polytechnic Institute and State University where he teaches in the social issues and policy areas. He previously held positions as Visiting Assistant Research Professor at the Values Center, University of Delaware, and as Visiting Fulbright Research Fellow, Science Center, Berlin, West Germany. He has published several recent articles in the areas of bluffing and deception in business and ethical/social investing. James E. Cox, Jr., is Assistant Professor of Management and Marketing at Illinois State University. Formerly, he was at the Virginia Polytechnic Institute and State University (from September 1979 until August 1983). He was a fellow at the 1979 American Marketing Association Ph. D. Consortium and his research has been published in the Journal of Forecasting, the Journal of Marketing Education, the Proceedings of the American Marketing Association, and the Proceedings of the National Council of Physical Distribution Management. He is also co-author of the book Sales Forecasting Methods: A Survey of Recent Developments.     

Are business ethics and engineering ethics members of the same family?

The thesis of the paper is that there are no important differences between problems in business ethics and problems in engineering ethics. The problems are both of the same logical type. What keeps this contention from being obvious is that many view engineers as professionals and business persons as nonprofessionals. If you accept the traditional definition of professional neither engineering nor business qualify. If you adopt the attitudinal definition of a profession which I propose, both practitioners could be professionals. This thesis is then tested by applying it to six specific issues in business and/or engineering ethics. Norman E. Bowie is Director at the Center for the Study of Values and Professor of Philosophy at the University of Delaware. Previously, he was Executive Secretary at the American Philosophical Association and received the Phi Beta Kappa Award. Important publications: Ethical Theory and Business, co-editor with Tom Beauchamp, Prentice Hall, 1979, Ethics, Public Policy and Criminal Justice, co-editor with Fred Elliston, Oelgeschlager, Gunn & Hain, 1982, Ethical Theory in the Last Quarter of the 20th Century, editor, Hackett Publishing, 1983, and Making Ethical Decisions, editor, McGraw-Hill (forthcoming). He has also written numerous articles in professional journals.An earlier version of this paper was read at a conference on applied ethics as part of an NEH sponsored project, National Project on Philosophy and Engineering Ethics, University of Florida, January 13–15, 1982.     

Management-think

This paper provides a comprehensive review of the philosophical foundations of business management. The need for such a review is established. Emphasis is placed upon the role of management ethos in such a philosophy. Philosophical concepts (such as the concept of an intention) which are widely applied in management, but not explored in the management literature, are examined. While the emphasis is on philosophical concepts, the material presented is applicable in the practice of management. Mark Pastin is Director of the Center for Private and Public Sector Ethics and Professor of Management at the Arizona State University. He received the National Endowment for the Humanities Fellowship, and was a Research Fellow of the Center for Metropolitan Research of John Hopkins University. His most important publications are Strategic Planning for Science The Research System in the 1980s, ed. by John Logsdon (Franklin Institute Press, 1982), Ethics and the Foreign Corrupt Practices Act, Business Horizons (December 1980), The Multi-Perspectival Theory of Knowledge, Midwest Studies in Philosophy: Volume V (University of Minnesota Press, 1980), and Meaning and Perception, Journal of Philosophy (October 1976).     

Lying and intentions

In this essay I criticize recent attempts to prove that the concept of lying does not include the intent to deceive. I argue that examples by Isenberg and Carson fail to prove that one can lie without intending to deceive and, furthermore, that untoward consequences would follow if these authors were correct. I conclude that since intending to deceive is indeed a necessary condition of lying, the class of statements that constitute lies is smaller than what Isenberg et al. would suggest. Hence the class of deceptive advertisements is also correspondingly smaller. Gary E. Jones is Associate Professor at the Philosophy Department of the University of San Diego. He won the Review of Metaphysics Dissertation Essay Contest, 1977 and he holds fellowship of the University of Cincinnati and the University of Tennessee. His most important publications are The State and the Right to Health Care (in Philosophical Quarterly), Rights and Desires (in Ethics), Vindication, Hume, and Induction (in Canadian Journal of Philosophy), Engelhardt on Abortion and the Euthenasia of Defective Infants (in Linacre Quarterly) and Clendinnen, Jackson and Induction (in Philosophy of Science).     

Ethics as an integrating force in management

Ethics will not become part of the management decision-making process until it ceases to be viewed as an add-on; first you decide, then you assess the decision ethically. This essay focuses on one ethical concept, the good or the valuable, and shows how to incorporate it in an ethically and economically effective decision process. We focus on this concept because it uncovers a key fault in strategic thinking and generates questions central to any complex decision.The concept of the valuable is used to distinguish goals and purposes. A goal is a more or less specific target toward which one aims. A purpose is a way of being or functioning viewed as valuable in itself.Purposes make values operational. We look at values through a set of questions derived from the concept of the valuable. One question probes the range of individuals relevant to a decision. Participatory and dialectical decision approaches are critiqued. A second question probes the standards of rationality implicit in management decisions.We conclude by responding to two objections. The first is that justice in decision-making is insufficiently considered. The second is that there is little reason to think that the proposals made here would work if implemented. Mark Pastin is Director of the Center for Private and Public Sector Ethics and Professor of Philosophy, Business, and Public Affairs at Arizona State University. He was formerly Associate Professor of Philosophy, Indiana University, and had visiting appointments at Wayne State University, the University of Michigan, Harvard University, and the University of Maryland. He has been a National Endowment for the Humanities Fellow and Research Fellow of the Center for Metropolitan Research of John Hopkins University. His most important publications are: Strategic Planning for Science, The Research System in the 1980s, ed. by John Logsdon (Franklin Institute Press, 1982), Ethics and the Foreign Corrupt Practices Act, Business Horizons (December 1980), The Multi-Perspectival Theory of Knowlegde, Midwest Studies in Philosophy: Volume V (University of Minnesota Press, 1980), and Meaning and Perception, Journal of Philosophy (October 1976).This began as a joint project with H. J. Zoffer of the University of Pittsburgh. We both were promoting the idea of integrating ethics in management decision-making, but were embarrassed that we had little to say about how to proceed. So we picked the ethical concept of the good and set to work. This final product is my responsibility, but it certainly profited from Zoffer's efforts. This paper was presented at the 16th Conference on Value Inquiry, entitled: Ethics and the Market Place: An Exercise in Bridge-Building or On the Slopes of the Interface.     

The corporation and profits

In this paper I argue that a theory of the firm that takes profit maximizing to be the essential activity and purpose of the firm is seriously inadequate. I argue that firms in the actual economy neither are nor should be maximizers of profit. I argue instead that firms are and must be satisficers, that they must make enough profit to satisfy the various demands which they encounter in their operation. Yet it should be clear that the notion of satisficing, while it escapes the major problems encountered by maximization, itself lacks much of any very clear content. In the end I claim that the notion of satisficing can best be understood if we abandon the traditional characterization of profits and replace it with a notion of extended profits, which I define as that part of corporate revenue which is available for distribution among stockholders, management, and labor, and for reinvestment in the corporation's business operation. David E. Schrader is Associate Professor of Philosophy and Chair of the Department of Religion and Philosophy at Austin College in Sherman, Texas. Professor Schrader's primary areas of research interest include applied ethics, philosophy of economics and philosophy of religion. In addition to being the author of a number of articles in applied ethics and philosophy of religion, he is the editor of Ethics and the Practice of Law(Englewood Cliffs, NJ: Prentice-Hall, 1988).I want to express my gratitude to Austin College for granting me the sabbatical leave during which time I pursued the research which led to this paper, and to the Center for the Study of Values at the University of Delaware for providing both a place and additional support for that research. I particularly want to thank Norman E. Bowie, Director of the Center for the Study of Values, for his very helpful comments on an earlier draft of this paper.     

Business and games

This paper responds to the popular argument that business is like a game and is thus insulated from the demands of morality. In the first half of the paper, I offer objections to this argument as it is put forward by John Ladd in his well-known article, Morality and the Ideal of Rationality in Formal Organizations. I argue that Ladd's analysis is flawed both because it deprives us of the ability to assert that a business is acting badly or that its goals are irrational, and because it is internally inconsistent. In the second half of the paper, I give reasons for thinking that business is not like a game.Peter Heckman teaches business ethics at Santa Clara University. His publications on Nietzsche can be found inThe British Journal of Aesthetics andPhilosophy and Rhetoric.     

The ethics of Nigeria's proposed withdrawal from the organisation of petroleum exporting countries

In the wake of the prevailing world oil glut which has affected the revenue earning powers of OPEC (Organisation of Petroleum Exporting Countries) members, there are serious proposals and arguments in favour of Nigeria's withdrawal from OPEC.The mission of this paper is to question the ethical basis of this proposed strategy after she has benefited from OPEC membership for over a decade. This paper postulates that it would be ethically wrong to do so and suggests a strategy that would boost the petrochemical industry for agriculture, building, pharmaceuticals, automative industry, etc. Dr. Bedford A. Fubara is Senior Lecturer and Head of the Department at the Rivers State University of Science and Technology in Port Harcourt, Nigeria. He was awarded the Columbia University Fellowship 1970–1972 and he received the Unesco Research Award in 1981/1982. His most important publications are: Negative Profitability Performances of Public Enterprises in Developing Countries: A Business Policy Anatomy, 1984, Public Enterprise 4; Government in Business, 1983, Management in Nigeria; Corporate Planning Art in Nigeria: The Experiental Evidence of Corporate Executive, Long Range Planning (forthcoming).This research was financed by the Rivers State University of Science and Technology under Project No. SRPC/014 dated 11th June, 1984.     

Equal pay for equal work in the third world

If the principle of equal pay for work of equal value is valid, then the practice of paying workers in third-world countries at a lower rate than workers doing the same jobs in industrialized nations is unjust. Recently Henry Shue argued that the principle is not valid. In this paper I criticize Shue's arguments and offer additional arguments in support of his conclusion. Hugh Lehman is a Professor of Philosophy at the University of Guelph. His most important publications are Introduction to the Philosophy of Mathematics, Basil Blackwell, 1979, Mathematical Proofs, Gaps and Postulationism, The Monist 67, and Intuitionism and Platonism on Infinite Totalities, Idealistic Studies XIII. He also edited a special issue of Animal Regulation Studies 2 that contained papers from the conference: Ethical Issues Concerning the Use of Animals in Agriculture and Scientific Research.     

Democratic capitalism: Developing a conscience for the corporation

One way of ensuring that individual actions do not violate a group's moral norms is to develop within each individual a conscience. Conscience consists in the internalization or acceptance of a group's moral norms as correct and overriding one's self-interest when they conflict.Corporations as well as individuals need a conscience to monitor and control their behavior. The correlative of a personal conscience in a corporation consists in the representation of group interests in the running and managing of the firm. This means consumer and employee representation on the board of directors and management is the most effective way to promote corporate moral behavior. Joseph M. Grcic is Assistant Professor of Philosophy at Loyola University of Chicago. (Formerly at the University of Missouri at Kansas City.) He is a Phi Beta Kappa Member. His most important publications are Kant and Rawls: Contrasting Conceptions of Moral Theory in Journal of Value Inquiry 17, Rawls and Socialism in Philosophy and Social Criticism, Spring 1980, and Revolution and Economic Inequality (forthcoming in Kant-Studien).     

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.     

Creating common ground: A lesson from the past

Orthodox business ethics, conventional management theory, and a great deal of higher education embody the overriding emphasis accorded to analysis by yesteryear's science. An alternative strategy, exemplified by the war stories told by a Confederate Genral, is more consistent with late 20th century science in general and soft systems methodology in particular.The characteristic way of management that we have taught... is to take a complex system, divide it into parts, and then try to manage each part as well as possible. And if that's done, the system as a whole will behave well, and that's absolutely false because it's possible to improve the performance of each part taken separately and destroy the system at the same time.Russell AckoffDavid R. Acklin is a Fellow at the Center for Dispute Resolution at Willamette University. His primary research interests are in alternative dispute resolution and organization behavior.Jonathan King is Associate Professor of Management at the College of Business at Oregon State University. His primary research interests are in moral philosophy and systems theories. His most important publications are Common Knowledge of the Second Kind and Learning to Solve the Right Problems,Journal of Business Ethics (1989, 1993).     

Insider trading revisited

A recent article in this Journal argued that insider trading is an unethical practice leading to an inefficiently functioning market. The debate on this topic has primarily pitted ethical defenses of prohibition against economic arguments extolling its allowance. In addition to being incomplete, this approach ignores other unwanted economic effects of prohibition itself and unethical implications of its existence. This article shows that Adam Smith's free market concept, when properly interpreted, provides all the incentive structure necessary for an efficient and ethical marketplace even when insider trading is permitted. Deryl W. Martin has presented his research at several regional and national conferences, and has published in the Journal of Economics and Business, the Journal of Strategic and Financial Decisions, The Moneypaper, and several proceedings and newspapers. He is currently Assistant Professor of Finance at Tennessee Technological University in Cookeville, TN.Jeffrey H. Peterson is a doctoral candidate in finance at the University of Alabama. He also has presented his research at several regional and national meetings, and is currently Instructor of Finance at St. Bonaventure University in Olean, NY.     

What is business in America?

This paper, presented at the Conference on Value Issues in Business at Millsaps College, is divided into three parts. The first sketches the logic of the evolution of U.S. business and suggests reasons for its remarkable success. The second assesses the power of U.S. business in modern society, both from an economic and political perspective. The third attempts to formulate the underlying philosophy of U.S. business using ideals such as the work ethic, entrepreneurism, democracy, and equality. Some of these ideals, the paper suggests, are irreconcilable. Thomas J. Donaldson is Associate Professor of Philosophy at Loyola University of Chicago. His publications in the area of business ethics include numerous articles and two books, Ethical Issues in Business co-edited with Patricia Werhane, and Corporations and Morality.     

Ethics of managing interpersonal conflict in organizations

Although managers spend over twenty percent of their time in conflict management, organization theorists have provided very few guidelines to help them do their job ethically. This paper attempts to provide some guidelines so that organizational members can use the styles of handling interpersonal conflict, such as integrating, obliging, dominating, avoiding, and compromising, with their superiors, subordinates, and peers ethically and effectively. It has been argued in this paper that, in general, each style of handling interpersonal conflict is appropriate if it is used to attain organization's proper end.M. Afzalur Rahim is Professor of Management at Western Kentucky University. He holds B.Com. (Hons.) and M.Com, M.B.A., and Ph.D. degrees. Dr. Rahim teaches courses on organizational behavior, strategic management, and management of organizational conflict. He is the author of over 65 articles and book chapters, five cases, and three research instruments on conflict and power. He is the author of six books, four of which are on conflict management. He is the editor of theInternational Journal of Conflict Management and theInternational Journal of Organizational Analysis. He is the founder of the International Association for Conflict Management and President of the International Conference on Advances in Management.Jan Edward Garrett is Associate Professor in the Philosophy and Religion Department at Western Kentucky University. His recent publications include Persons, Kinds and Corporations: An Aristotelian Perspective, which appeared inPhilosophy and Phenomenological Research, and Unredistributable Corporate Moral Responsibility, which appeared in this journal.Gabriel F. Buntzman is Associate Professor of Management at Western Kentucky University. His current research interests concern relationships between ethics, conflict and the strategic management of organizations. His work in the area of conflict management has appeared in theInternational Journal of Conflict Management, theJournal of Psychology, and three books.     

Displaced workers: America's unpaid debt

The U.S. doctrine of employment-at-will, modified legislatively for protected groups, is being less harshly applied to managerial personnel. Comparable compensation is not otherwise available in the U.S. to workers displaced by technology. Nine pairs of arguments are presented to show how fundamentally management and labor disagree about a company's responsibility for its former employees. These arguments, born of years of labor-management debate, are kaleidoscopic claims about which side has what power. Ultimately, however, not even both together can solve without creative public intervention the emerging problem of massive technological unemployment — the other side of the corporate dream of profit without payrolls. Edmund F. Byrne is Professor and Chair of the Department of Philosophy, Indiana University, Indianapolis since 1969. From 1966 until 1969 he was Assistant Professor at the Michigan State University, and from 1963 until 1966 he was a Fulbright Scholar in Belgium. Important publications: Microelectronics and Workers' Rights, in C. Mitcham (ed.), Philosophy and Technology II, D. Reidel, Boston/Dordrecht, 1985; Robots and the Future of Work, in H. F. Didsbury, Jr. (ed.), The World of Work, World Future Society, Bethesda, MD, 1983; Technology and Human Existence, Southwestern Journal of Philosophy 10.     

Thoughts on ‘management-think’

In this paper I briefly summarize Pastin's views on the problem of good business thinking (GBT) and the solution (Perspectival Analysis) which he offers. In discussing Pastin's solution I offer a number criticisms which call for further elucidation on Pastin's part. Specifically, I challenge his vagueness on which perspectives a manager must consider, the manner in which the moral components of these perspectives are to be evaluated, and whether Pastin is not in the end committed simply to an economic account of GBT. Finally, I contend that Pastin's account of GBT errors in being too intellectualistic and too individualistic. George G. Brenkert is Associate Professor at the University of Tennessee. His most important publications are Privacy, Polygraphs, and Work in Business and Professional Ethics Journal 1, No. 1 1981; Strict Products Liability and Compensatory Justice, in Business Ethics: Readings and Cases in Corporate Morality, edited by W. Michael Hoffman and Jennifer Mills Moore (New York: McGraw-Hill, 1984); and Marx's Ethics of Freedom (London: Routledge & Kegan Paul, 1983).     

Managers,values, and executive decisions: An exploration of the role of gender,career stage,organizational level,function, and the importance of ethics,relationships and results in managerial decision-making

A study of 513 executives researched decisions involving ethics, relationships and results. Analyzing personal values, organization role and level, career stage, gender and sex role with decisions in ten scenarios produced conclusions about both the role of gender, subjective values, and the other study variables and about situational relativity, gender stereotypes, career stages, and future research opportunities. John H. Barnett is Associate Professor at the University of New Hampshire, has an extensive background in international business and management consulting, and is co-founder of the Circle for Executive Experential Development. His publications include: A Business Model of Enlightenment, (1985) JBE, Personal Values and Business Decisions, (1987); Strategic Management Concepts and Cases 1988; Strategic Management Text and Concepts, 1989 and Cases in Strategic Management, 1989.Marvin J. Karson is Professor of Business Statistics and James R. Carter Professor of Management at the University of New Hampshire. He was formerly Professor of Statistics at the University of Alabama. His work has been published in a number of professional journals.