Peter Drucker's Weimar Experience: Moral Managementas a Perception of the Past

The writer discussed Drucker's ongoing denial of the relevance of business ethics in a paper presented to the Third Annual International Vincentian Conference. Later, in a paper presented to the Sixth Annual International Vincentian Conference, the writer argued that Collingwood's methodology would facilitate the advancement of an historical thesis which might explain the origins of Drucker's antipathy for business ethics. This latter aim is explored in the current paper. The paper asserts that it was Drucker's experiences of Weimar society and of the Weimar economy that led Drucker to seek a new socio-economic reality. This latter reality Drucker sought through management. The paper thus describes how the past led Drucker to seek management as, following Drucker, "a means to a bigger end"; and yet, simultaneously, not as an end in itself.     

A Genealogy of Business Ethics: A Nietzschean Perspective

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

Business ethics bogeyman: the perpetual paradox

Naive, impractical, moralistic—business ethics has been called a contradiction in terms. But despite the eloquent dismissal of Friedman and Drucker, business ethics is a subject that won't go away.     

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.     

Business Practice, Ethics and the Philosophy of Morals in the Rome of Marcus Tullius Cicero

Moral behaviour, and more recently wisdom and prudence, are emerging as areas of interest in the study of business ethics and management. The purpose of this article is to illustrate that Cicero—lawyer, politician, orator and prolific writer, and one of the earliest experts in the field recognised the significance of moral behaviour in his society. Cicero wrote ‘Moral Duties’ (De Officiis) about 44 BC. He addressed the four cardinal virtues wisdom, justice, courage and temperance, illustrating how practical wisdom, theoretical/conceptual wisdom and justice were viewed in Rome of the first century BC. ‘Moral Duties’ is a letter admonishing his son, Marcus. It refers to personal behaviour, business practice and analyses terms such as good faith and criminal fraud. In addition, it contains material which would be suitable for tutorials/seminars and discussions, particularly in the areas of critical thinking in business ethics and general management. A study of De Officiis in respect to present day management and business practice could give a wider perspective to business ethics and management students. If concepts such as moral virtue, moral propriety and moral goodness, many of which seem to be ignored in business situations today, are to be embedded in business leaders of the future, it is reasonable to expect that these qualities will be analysed and discussed by business students today. Further, a study of Cicero’s six-step approach, when preparing an address/speech, could be useful and productive for practitioners and students in this area.     

Hume’s Theory of Business Ethics Revisited

Hume’s examination of the conventions of property, trade, and contract addresses the moral foundations that make business possible. In this light, Hume’s theory of justice is also a foundational work in business ethics. In Hume’s analysis of these conventions, both philosophers and game theorists have correctly identified “proto” game-theoretic elements. One of the few attempts to offer a Humean theory of business ethics rests on this game-theoretic interpretation of Hume’s argument. This article argues that game-theoretic reasoning is only one part of a Humean business ethics and this can be shown by further analyzing Hume’s theory of justice. As we examine his theory, it becomes clear that Hume is not trying to show how it is always rational to respect the rules of business. Hume is not engaging in, or attempting, a reconciliation project and neither is a Humean business ethics. The final section of the article is a brief Humean analysis of the effectiveness of codes of ethics. The purpose of this section is not to decide the issue but to show how a Humean approach is both useful, relevant, and involves more than reconciling rationality and morality.     

Lifesizing Entrepreneurship: Lonergan, Bias and The Role of Business in Society

In an era of downsizing and disposable ethics, there is a need to redefine the role of business in society. Central to such a discussion is the frame of reference of the entrepreneur. A traditional business model defines entrepreneurship based on endowing resources with new wealth producing capabilities. This paper defines entrepreneurship as a calling to endow resources with new value. In support of the impact such a distinction would have on repositioning the role of business in society, the paper weaves together writings from the Pope, Drucker, and Lonergan, with emphasis on applying Lonergan’s discussion of bias to the discussion of ethics in business. Adapting the term, “lifesizing”, which was coined by the author in a previous article, to entrepreneurship, the paper takes the position that lifesized entrepreneurship can act as a catalyst similar to Lonergan’s cosmopolis and play a key role in countering bias and repositioning the role of business in society.     

Peter Drucker and the Denial of Business Ethics

This paper speculates upon the reasons for Peter Drucker's ongoing and vigorous denial of the relevance of business ethics. It contemplates whether Drucker consciously, or even perhaps subconsciously, associates the aims of business ethics with the aims of those associated with the Arbeitsfreude movement in Germany prior to the outbreak of the second world war. If this is the case the paper questions whether Drucker's distaste for some of the more notorious outcomes of that movement in Germany are reflected in his hostility to business ethics. Drucker's reflections regarding the social responsibilities of business are discussed, as are the limitations which he imposes upon such corporate social responsibility. Drucker's distinction between societal ethics and individual ethics are also discussed.     

The project-management approach in the “systematic management” of innovative start-up firms

This paper presents the principal results obtained by applying the project- management approach to strategic planning and operations management of innovative start-up firms' key activities. This approach is used to implement Drucker's view of entrepreneurship as a systematic discipline and his recommendation that innovation be treated using his principle of systematic innovation.As is well known, the management of growth in an innovative start-up firm is a difficult problem facing that organization. During this particular stage of the firm's development, many interdependent activities need to be performed under the conditions of uncertainty and limited resources. In these cases, flexibility and contingency planning are necessary. The fact that there exists no generally accepted approach that an entrepreneur can utilize, however, results in chaotic situations in many such enterprises.The start-up firm cannot utilize the formalized management systems and procedures available and useful in large firms. In addition, a disorganized, chaotic, random management-decision process will seldom provide desirable results in such firms. Viewing the firm as a project to be managed with specific tasks, activities, precedence relations, durations, and milestones presents an opportunity to utilize project-management techniques, including the critical-path method (CPM).Recent research has demonstrated that project-management methodology and its computer- software applications are applicable to small, innovative start-up firms. By utilizing a microcomputer, one can analyze any start-up business for flaws in management or organization and can chart a more productive path for achieving the firm's strategic goals. Project management using computers is not new: it has been used for years for major aerospace, utility, and construction projects. Only recently, however, have microcomputers and software become inexpensive enough to allow small firms to utilize this approach.The project-management approach collects information about a start-up firm, including all of its planned activities consistent with its evolving business plan, and then utilizes a microcomputer and inexpensive, readily available project-management software to process the information collected. Among the outputs are a “GANTT chart,” which indicates when the various activities should begin and end; a “Job Report,” which provides the earliest and latest possible deadlines for starting and ending each activity; and a “Milestone Report,” which indicates when each key event is to be accomplished according to the strategic business plan. These status reports are extremely valuable to the CEO and to the management team as the firm is kept on course according to its strategic plan.This methodology has been applied to 20 innovative start-up firms in northern California, including a computer graphics company, a semiconductor-equipment manufacturer, and firms that develop software for professional athletes, educators, ophthalmologists, and radio-station managers. In addition, the project-management approach has been applied to plan and schedule Stanford University's current centennial fund-raising campaign.Results indicate that the CEO and the entire management team are able to plan, schedule, and control the innovative start-up firm's multiplicity of activities in a systematic way. The firm is also able to modify its strategic plan based on a review of its updated status reports and to modify its operations plans accordingly. Current research is under way to develop similar systematic methods for managing innovations in large organizations.     

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 sociology of knowledge: Toward an existential view of business ethics

Business ethics is the study of ethics as it applies to a particular sphere of human activity. As such, business ethics presupposes a difference between an individual's experience within a business organization and his or her experience outside the organization. But how do we examine this difference? How do we discuss an individual's experience of “everyday reality”? What processes create and sustain this reality, and how does one's version of “reality” affect what is, and what is not, ethical? This paper outlines an approach to these questions based on theory from the sociology of knowledge, an approach which makes some progress towards making business ethics more existential. The sociology of knowledge, and particularly the social constructionist perspective, is concerned with how an institution creates “knowledge” and how this “knowledge” affects the cognitive processes of the individuals who make up the institution. The dialectic nature of the interdependent processes which shape both the individual and the organization are important in understanding how business ethics, as one kind of social knowledge, are enacted. Examining these processes leads to several interesting hypotheses about the nature of both the study and practice of business ethics. XXX“Only individuals have a sense of responsibility.” — Friedrich Nietzsche     

Personalist Business Ethics and Humanistic Management: Insights from Jacques Maritain

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

Economy suspended: the possibilities of a Badiouian business ethics

In the philosophy of Alain Badiou, ethics can only arise in relation to an evental truth procedure that breaks from the economic logic of a situation. Further, because for Badiou there cannot be economic truths per se – rather, economic matters must be understood in their relation to one or more truths in the domain of love, art, science or politics – a Badiouian business ethics would look entirely distinct from any ethics that simply places limits on certain kinds of economic activity. Although Slavoj ?i?ek, among others, has suggested that this marks an essential weakness in Badiou's economic/political theory, it may actually be the greatest strength of his position. Within a capitalist system, a Badiouian business ethics would then be a question of mobilizing economic resources in order to serve the ongoing construction of a truth procedure. For a business to be considered ethical on Badiou's terms, it must break – and continue to break – from the dominant logic of capitalism and its merely economic pursuit of profit maximization.     

Beneath good and evil?

The aim of this paper is to think business ethics with the help of philosopher Alain Badiou, focusing on Badiou's critique of ethics and the concepts of ‘event’, ‘truth’ and especially ‘subject’. Based mainly on review articles, I construct an understanding of business ethics (comprising corporate social responsibility and sustainability) and its history as a field of research. With the help of a framework developed from Badiou's work on ethics, I conduct a metacritique of business ethics as being intolerant (exclusion of voices), nihilist (concerned with necessity and economics), reactive (to social movements in the 1960s, arguing that there has always been an ethics of business) and obscure (building upon the atemporal body of knowledge in ethics). Opposed to these tendencies, with the help of the constructive Badiou, I argue that business ethics should move towards the creation of faithful subjects possibly formed by ‘inexistent’ research in the field, as well as concerning itself with closely studying and identifying empirical cases of faithful subject formations and their deviations.     

Can there be a social contract with business?

Professor Donaldson in his book Corporations and Morality has attempted to use a social contract theory to develop moral principles for regulating corporate conduct. I argue in this paper that his attempt fails in large measure because what he refers to as a social contract theory is, in fact, a weak functionalist theory which provides no independent basis for evaluating business corporations. I further argue that given the nature of a morality based on contract and the nature of the modern corporation, it is highly unlikely that any plausible contract theory of business ethics can be developed.Dr. Hodapp is an associate professor of philosophy at The University of Northern Colorado where he teaches courses in business ethics and legal philosophy. He earned a doctorate at Washington University, St. Louis. Dr. Hodapp also has a law degree from The University of Denver and practices law with a Denver law firm specializing in management labor relations.     

Spirituality and ethical treatment of customers and employees by devout Thai women small business owners

The role of spirituality in management is of growing interest, not least because it is closely related to business ethics, and, thus, how businesses treat customers and employees. The topic, however, still needs some conceptual development, as well as empirical research, especially outside Western, Christian contexts. This qualitative research examines spirituality among women small business owners in Thailand. These women follow Kuan Im bodhisattva, a Buddhist role model teaching compassion and morality. In Jackson's terminology, this is an example of an Eastern, practice-oriented approach to ethics rather than (in his view) the somewhat theoretical wisdom-oriented approach common in the West. The nature of their spirituality and their treatment of customers and employees maps strongly to a servant leadership style. Servant leadership has occasionally been proposed as the style most closely associated with spirituality. In this context, it seems to be thoroughly intertwined, and highly concerned with ethical treatment of others.     

Exploring and Exposing Values in Management Education: Problematizing Final Vocabularies in Order to Enhance Moral Imagination

In business schools, there is a persistent myth according to which management education is, and should be, ‘value-free’. This article reflects on the experiences of two business schools from Finland and Australia in which the UN Principles for Responsible Management Education (PRME) have been pragmatically used as a platform for breaking with this institutionalized guise of positivist value neutrality. This use of PRME makes it possible to create learning environments in which values and value tensions inherent in management education can be explored and exposed. Inspired by Rorty’s understanding of ethics—notably his discussion of ‘final vocabularies’ and ‘moral imagination’—and Flyvbjerg’s reading of phronēsis, the article discusses an approach to learning that helps both teachers and students in exploring and exposing values in management education by problematizing dominant business school vocabularies, thereby leading to moral development, in the Rortian sense. The article presents a number of final vocabularies that business students come to class with, some learning methods used to challenge these vocabularies through discussion of alternative vocabularies, and the new directions for moral imagination that may result.     

Corporate Ethics Codes: A Practical Application of Liability Prevention

With the great increase in litigation, insurance costs, and consumer prices, both managers and businesses should take a proactive position in avoiding liability. Legal liability may attach when a duty has been breached; many actions falling into this category are also considered unethical. Since much of business liability is caused by a breach of a duty by a business to either an individual, another business, or to society, this article asserts that the practice of liability prevention is a practical business application of ethics. In today's highly litigious environment, it is appropriate for the concept of general liability prevention to be included in corporate codes of ethics.     

"Management as the Spirit of the Modern Age"

This paper uses Collingwood's methodology to attempt to understand those formative influences influencing Drucker within the Weimar Republic. It is intent on using this methodology to advance an historical thesis about both the origins and sources of Drucker's thought. By illuminating these formative influences on Drucker, the paper hopes to portray the implications of such influences for his theory of business management.     

Managerial Harmony: The Confucian Ethics of Peter F. Drucker

“Confucianism⋯ is a universal ethic in which the rules and imperatives of behavior hold for all individuals.” (Peter F. Drucker, Forbes, 1981). Peter Drucker is credited as the founder of modern American management. In his distinguished career he has written widely and authoritatively on the subject and to a large extent his work possesses a distinctive ethical tone. This paper will argue that Confucian ethics underlie much of Drucker's writing. Both Drucker and Confucius view power as the central ethical issue in human relations. They emphasize authority, leadership, legitimacy, hierarchy, interdependence and individual ethical responsibility in their analysis of human affairs. Drucker views the development of large-scale formal organizations and the concomitant rise of the managerial class as the most significant developments of the 20th century, which makes the management of interdependent roles and relationships a central ethical challenge. Confucius, and the early Confucians, understood human relationships as based upon hierarchy, interdependence and personal ethics. The paper will analyze Drucker's work in light of the early Confucian Classics (The Analects, The Mencius, The Great Learning and The Doctrine of the Mean). Drucker, himself, considers The End of Economic Man (1939), The Future of Industrial Man (1942), Concept of the Corporation (1983), and The Essential Drucker (2001) as his most important and influential works. The paper will analyze these along with other works by Drucker as appropriate.