Trust and Dialogue: Theoretical Approaches to Ethics Auditing

The aim of this paper is to put forward an ethical framework for the conceptualization and development of ethics audits, here understood as a catalyst for company dialogue and in general, for management of ethics in the company. Ethics auditing is understood as the opportunity and agreement to devise a system to inform on ethical corporate behavior. This system essentially aims to increase the transparency and credibility of the companys commitment to ethics. At the same time, the process of elaborating this system allows us to introduce the moral dimension into company actions and decisions, thereby completing a key dimension of the production, maintenance and development of trust capital. To this end, the following four steps are taken. First, we analyze the relation between ethics auditing and trust as a basic moral resource in the dialogue between the company and its various stakeholders. Second, we examine the social balance sheet as a precursor to ethics auditing and focus on what prevents it from going further. Third, we attempt to reconstruct the basic moral assumptions underlying the companys social responsibility from the discourse ethics approach. Finally, we present a methodological framework from which to carry out our proposal, which embraces two basic theoretical perspectives stakeholder theory and the values derived from discourse ethics as a normative framework.     

Unapplied Ethics: On the Need For Classical Philosophy In Professional Ethics Education

The central claim of this essay is that thoseof us who teach applied ethics courses shouldconsider infusing those courses withdiscussions of central issues in classicalphilosophy, issues which lie beneath thesurface of contemporary ethical problems in theprofessions. I will argue that the current,widely-used approach of discussing traditionalethical theories as an introduction to andfoundation for such courses may not adequatelyserve what should be the overarching goal ofpre-professional ethics education which is toteach a kind of ethical thinking which is notto be identified exclusively with ethical``decision-making'. Such thinking, it will beargued, is both practical and theoretical innature and therefore has a greater breadth thanthe more delimited ethical decision-makingoften taught in applied ethics courses. In whatfollows, I will therefore advocate thatteachers include a substantive ``unapplied'component in professional ethics educationcourses. While I believe that my argument foran unapplied approach to professional ethicseducation is relevant to many professionalfields, I will focus on business ethicseducation.     

Business Ethics Research As Dialogue: A European Perspective

Britain's Economic and Social Research Council offered criteria for excellence in research which appear to express a shared basic idea of research–as–dialogue. This approach does not appear to be met very well by business ethics research in the USA or the UK, but it was seen to be impressively present in some of the German contributions to the European Business Ethics Network conference held in Frankfurt last year. Dr Collier analyses the conditions which may underlie this difference of approach and considers the contribution of modern "discourse ethics to the process of dialogue, concluding that dialogue "is an essential characteristic of research excellence", and that without it we therefore fail to meet both our own standards and the needs of the business community". Dr Collier is Lecturer in Management Studies the Judge Institute of Management Studies at the University of Cambridge, and Fellow of Lucy Cavendish College.     

Organizational Factors Encouraging Ethical Decision Making: An Exploration into the Case of an Exemplar

What factors in the organizational culture of an ethically exemplary corporation are responsible for encouraging ethical decision making? This question was analyzed through an exploratory case study of a top pharmaceutical company that is a global leader in ethics. The participating organization is renowned in public opinion polls of ethics, credibility, and trust. This research explored organizational culture, communication in issues management and public relations, management theory, and deontological or utilitarian moral philosophy as factors that might encourage ethical analysis. Our understanding of organiza tional ethics is enhanced by elucidating factors the case revealed as encouraging ethical analysisan organizational culture that emphasizes the importance of ethics, Theory Y management, a symmetrical worldview valuing innovation and dialogue, a counseling role for issues management or public relations in the dominant coalition, rewarding ethical behavior, ethical analysis using moral philosophy, consistency between individual values and organizational philosophy, and ethics training. These factors, and perhaps others as yet unidentified, worked together to create an environment that encouraged ethical decision making at the exemplar organization.     

From Stakeholder Management to Stakeholder Accountability

Confronted with mounting pressure to ensure accountability vis-à-vis customers, citizens and beneficiaries, organizational leaders need to decide how to choose and implement so-called accountability standards. Yet while looking for an appropriate standard, they often base their decisions on cost-benefit calculations, thus neglecting other important spheres of influence pertaining to more broadly defined stakeholder interests. We argue in this paper that, as a part of the strategic decision for a certain standard, management needs to identify and act according to the needs of all stakeholders. We contend that the creation of a dialogical understanding among affected stakeholders cannot be a mere outcome of applying certain accountability standards, but rather must be a necessary precondition for their use. This requires a stakeholder dialogue prior to making a choice. We outline such a discursive decision framework for accountability standards based on the Habermasian concept of communicative action and, in the final section, apply our conceptual framework to one of the most prominent accountability tools (AA 1000). Andreas Rasche is currently working at the chair for Business Administration at the Helmut-Schmidt-University, Hamburg, Germany and is finishing his PhD in strategic management at EUROPEAN BUSINESS SCHOOL, Germany where he is also teaching business ethics. His research interests include the institutionalization of ethics initiatives in multinational corporations (see also www.ethics-in-pratice.org) and reflections about the theory of strategic management. Daniel Esser until recently was a Tutorial Fellow in Development Management at the London School of Economics and Political Science. He is now working for the UN Economic and Social Commission for Asia and the Pacific where he is involved in the design and management of urban governance programmes and service schemes supporting the poverty reduction agenda for the region.     

The Relevance of Ancient Greeks to Modern Business? A Dialogue on Business and Ethics

What follows is a dialogue, in the Platonic sense, concerning the justifications for "business ethics" as a vehicle for asking questions about the values of modern business organisations. The protagonists are the authors, Gordon Pearson – a pragmatist and sceptic where business ethics is concerned – and Martin Parker – a sociologist and idealist who wishes to be able to ask ethical questions of business. By the end of the dialogue we come to no agreement on the necessity or justification for business ethics, but on the way discuss the uses of philosophy, the meanings of integrity and trust, McDonald's, a hypothetical torture manufacturer and various other matters.     

Corporate Identity,Ethics and Reputation in Supplier–Buyer Relationships

Multi-national corporations (MNCs) have been criticised for not behaving ethically in some situations, which could have a negative effect on their reputation. This study examines the ethics of a large MNC in its relationship with its suppliers. A brief literature review of corporate identity, business ethics and buyer–supplier relationships is undertaken. The views and perceptions of the buying staff and the suppliers to a large South African MNC are obtained and discussed. The results indicate that this MNC has a good corporate reputation among both its suppliers (an important stakeholder) and its own buying department. The existence and implementation of formal codes of ethics was found to be a necessary, but not sufficient condition for good ethical practice. Candid relationships with suppliers emerged as a second and important factor. Ethical perceptions of buyers by suppliers are driven by the management of corporate identity, through the elements of ethical standards and candid relationships. We present a model of corporate identity/reputation in Buyer–Supplier Relationships. Michael Bendixen is a Professor of Research Methodology and Statistics at the H. Wayne Huizenga School of Business at Nova Southeastern University, Florida. His research interests include business ethics, governance and culture. His articles have appeared in the European Journal of Marketing, Industrial Marketing Management, Journal of Business Research, Journal of International Business Studies and Journal of Marketing Management amongst others. Russell Abratt is a Professor of Marketing at the H. Wayne Huizenga School of Business at Nova Southeastern University, Florida. His research interests include corporate identity management and business ethics. His articles have appeared in the Journal of Business Ethics, Journal of Business and Psychology, European Journal of Marketing, Journal of Marketing Management, Industrial Marketing Management, and Business Horizons amongst others.     

A Case Example: Integrating Ethics into the Academic Business Curriculum

This paper combines a review of existing literature in the field of business ethics education and a case study relating to the integration of ethics into an undergraduate degree. Prior to any discussion relating to the integration of ethics into the business curriculum, we need to be cognisant of, and prepared for, the arguments raised by sceptics in both the business and academic environments, in regard to the teaching of ethics. Having laid this foundation, the paper moves to practical questions such as who should teach ethics, and when and how can ethics be taught. The paper presents alternative models for the teaching of ethics in the curriculum of undergraduate and postgraduate business programmes. An integrative model is elaborated on in more detail with a case example describing the six-stage process undertaken in the move from a single entry course to an integrated approach. The case study details not only the planning and initial implementation of ethical education in the context of an undergraduate business degree programme, but also the means by which a change in the way that ethics is taught was achieved in a business faculty in a tertiary institution.     

What Managers Could See in the Philosophical Block of “Free Will”?

Business ethics’ theories have come under a lot of criticism lately. The problem has been the lack of a philosophical base or the inadequate implementation of it. We are trying to solve this problem by examining the roots of ethics and then applying it to the business environment. The root that has been undeservedly overlooked has been the concept of free will, the oldest philosophical problem on which every ethics theory lies. We have chosen two theories that we think would be the best base for business ethics. We will shortly present the others. Since free will presents the core of business ethics, business ethicists must first agree on which theory to implement. Aristotle’s and Aquinas’ theory of free will best amplify the core of economic theory, because it gives reason a central and most important role in the theory. The concept of free will is mainly philosophical as is business ethics so the article follows this tradition, but we tried to give business examples where possible. We do not give a final conclusion because it should be reached by debate and mutual agreement between business ethicists. Matej Drascek is presently a graduate student at University of Ljubljana, Faculty of Social Studies. His research interests include: corporate social responsibility, stakeholder theory and business ethics. Stane Maticic got his Phd in Theology at University of Lateran, Rome. He is presently a priest at the Archbishopric of Ljubljana. His research interests include: ethics, symbolism and theology.     

Business Ethics Curriculum Design: Suggestions and Illustrations

Designing business ethics teaching as anintegrated part of business school curriculashould start with a school-wide dialogue aboutgoals and working conditions. This articlesuggests different premises that can serve asnext steps to follow the school-widedialogue about goals and working conditions. The paper also provides several experienceswith offering business ethics modules withinother courses. Since the article is written asan invitation to a dialogue, assumptions andsuggestions are formulated in a discussionthesis format.     

Do We Really Want More Leaders in Business?

In this article, we focus on the concept of leadership ethics and make observations about transformational, transactional and servant leadership. We consider differences in how each definition of leadership outlines what the leader is supposed to achieve, and how the leader treats people in the organization while striving to achieve the organization's goals. We also consider which leadership styles are likely to be more popular in organizations that strive to maximize short run profits. Our paper does not tout or degrade any of these leadership theories. Instead, it points out which theories allow reason to play more than a minimal role in ethical decision-making, as well as those that are most consistent with a firm's desire to achieve efficiency in the short run. We explain our view that the way leadership is practiced in large, bureaucratic organizations suggests that ethics is often absent from the leader's decision-making process. Consequently, we suggest that before we engage in a meaningful dialogue about what kind of leaders we might really want in business, we must consider how much short-run profit we are willing to forego in exchange for more ethical corporate cultures.     

Islamic Ethics and the Implications for Business

As global business operations expand, managers need more knowledge of foreign cultures, in particular, information on the ethics of doing business across borders. The purpose of this paper is twofold: (1) to share the Islamic perspective on business ethics, little known in the west, which may stimulate further thinking and debate on the relationships between ethics and business, and (2) to provide some knowledge of Islamic philosophy in order to help managers do business in Muslim cultures. The case of Egypt illustrates some divergence between Islamic philosophy and practice in economic life. The paper concludes with managerial implications and suggestions for further research.     

‘The Ethics of Managerial Subjectivity’

This paper examines ethics in organizations in relation to the subjectivity of managers. Drawing on the work of Michel Foucault we seek to theorize ethics in terms of the meaning of being a manager who is an active ethical subject. Such a manager is so in relation to the organizational structures and norms that govern the conduct of ethics. Our approach locates ethics in the relation between individual morality and organizationally prescribed principles assumed to guide personal action. In this way we see ethics as a practice that is powerfully intertwined in an individual’s freedom to make choices about what to do and who to be, and the organizational context in which those choices are situated, framed and governed.     

对企业财务管理的伦理思考

不仅企业理财行为屡屡与社会整体利益相悖,经典的财务管理理论也在方法论、理论假设、理论立场等方面忽视伦理道德。然而,企业理财行为要接受社会制度的约束,本质上与伦理道德客观相容。企业在理财中必须充分考虑利益相关者的要求,对利益相关者负起道德责任。     

Ethical Rationality: A Strategic Approach to Organizational Crisis

In this paper, we present an ethical and strategic approach to managing organizational crises. The proposed crisis management model (1) offers a new approach to guide an organization’s strategic and ethical response to crisis, and (2) provides a two-by-two framework for classifying organizational crises. The ethically rational approach to crisis draws upon strategic rationality, crisis, and ethics literature to understand and address organizational crises. Recent examples of corporate crises are employed to illustrate the theoretical claims advanced. Finally, the paper provides guidelines for a morally optimal outcome for the organization and its stakeholders. Peter Snyder is a Ph.D. student in Organizations and Strategic Management at the University of Wisconsin-Milwaukee. His research interests include strategy making and corporate governance. Molly Hall is an attorney who practices international and environmental law in Milwaukee, Wisconsin. She teaches adjunct courses in business ethics, environmental policy, and the European Union. Joline Robertson is a Ph.D. candidate in Organizations and Strategic Management at the University of Wisconsin-Milwaukee. Her research interests include international business. Tomasz Jasinski is a Ph.D. student in Organizations and Strategic Management at the University of Wisconsin-Milwaukee. His research interests include strategic alliances. Janice S. Miller received her Ph.D. from Arizona State Univerity in Business Administration with a concentration in Human Resource management. She has been on the faculty at the University of Wisconsin-Milwaukee UWM since 1996 and has served as the Associate Dean for Academic Programs in the School of Business Administration since 2002. Dr. Miller’s primary research interests include performance management, compensation and ethical issues in organizations.     

Integrating Business and Ethical Values Through Practitioner Dialogue

In practice, the relationship between business and ethics is not well-settled. In the past, organisations have developed an interest in setting value charts but this has been approached from a purely managerial perspective following the momentum and interest aroused by research on organisational cultures. Although interest in managing organisational cultures has slowly died down, for both theoretical and practical reasons we argue that there are feasible ways to explore values as part of an organisational culture. Indeed it is our claim that it is feasible and productive to discuss values within organisations. However, rather than developing sophisticated theoretical frameworks, more efforts should be put into thinking about the conditions under which participants can enter into productive dialogue. It is our claim that if processes are carefully examined people within organisations can make better sense of their work and discover their own perspective to account for what they actually do and to project themselves into what they think they should be doing. Thus, values identified within the organisation can eventually reach a point where they become an expression of a shared commitment. The experience we describe aims to illustrate only one example of a concrete application of this approach.     

Proposal for a model for the elaboration of ethical codes based on discourse ethics

This article presents a model for the procedure of elaboration of an effective ethical code. Taking as the starting point the concept of business ethics as critical hermeneutics, we describe a process which will lead to the creation of a document that is truly ethical and efficient. We believe the elaboration of an ethical code should follow a definite procedure, and that the process is as important as the result, but we also add that in order for the process to be a truly rational dialogue it is necessary to make efforts to ensure the participation of truly valid interlocutors who can represent their interests in conditions that are as close as possible to an ideal community of dialogue. Our model for the elaboration of an ethical code attempts to break with the conventional distinction between processes of elaboration and application in order to develop a truly integrative ethics, while also giving attention to the concrete conditions in which the ethical code is developed. In our view the contribution made by this model is the emphasis it places on the transformation of the will of the participants in the dialogue.