Ethical Theory and Business Practices: The Case of Discourse Ethics

By focusing on the reasoned debate in the discourse-ethical approach to business ethics, this paper discusses the possibilities and limitations of moral reasoning as well as applied economic and business ethics. Business ethics, it is contended, can be looked at from the standpoint of two criteria: justification and application. These criteria are used to compare three approaches: the Integrative Business Ethics, developed by Swiss philosopher Peter Ulrich, the Cultural Business Ethics of the Nuremberg School in German business ethics, and the concept of “Good Conservation” by Frederick Bird. It is argued that discourse-ethical approaches can be called upon for justifying moral principles. Improving the chances of their application, however, necessitates a good understanding of lifeworlds and culturally developed institutional settings. Bearing this in mind, further research perspectives stressing a linkage between discourse-ethical and critical approaches in social sciences are suggested.Dr. Thomas Beschorner is head of the research group “Social Learning and Sustainability” at University of Oldenburg, Germany and currently Visiting-Professor at McGill University, Montreal, Canada     

Technology and Business Ethics Theory

The various theories about business ethics need to take much more notice of technology, realising that technology has its own increasing momentum which is driving business, and that, whereas business people think they control technology as a simple neutral means to their ends, in fact the reverse is true: business is the servant of technological development. Jacques Ellul, however, offers some hope for the future to help us 'reappropriate our humanity'. Dr Davies is a senior lecturer in Strategic Management and Business Ethics at the Buckingham Business School, Buckinghamshire College [a College of Brunel University], Newland Park Campus, Gorelands Lane, Chalfton-St-Giles, Buckinghamshire HP8 4PB (Tel 01494-874441, ext. 2240; fax 01494-874230; Email pdavie01@buckscol.ac.uk). His background is in mining and production engineering and he would like to hear from others interested in the new field of engineering ethics.     

Oversight Ethics: The Case of Business Licensing

The ethics research community has all but ignored issues of oversight ethics – the vices and virtues of overseers. This study develops a conceptual framework for exploring the ethics of oversight and provides insights into the design of codes of ethics for oversight institutions and for overseers. Analysis of business licensing in Israel reveals prospective and retrospective oversight ethics problems at the levels of national and local policy and implementation: Overseers failed to act on knowledge of breaches of business licensing stipulations and took action known to be slow and ineffective; policymakers neglected their duty to enact significant policy change in an oversight system that was clearly not working. Partially as a result of these oversight failures, over one third of Israeli businesses are unlicensed, 23 people were killed in the collapse of an unlicensed banquet hall, 2 major fires erupted in the same shopping mall, and a fire in a fertilizer warehouse very nearly became a mega-disaster.     

Teaching Business Ethics: Theory and Practice

Business ethics teaching can be improved when ethicists integrate the ethical theories they apply to business with the organizational design of the course. By utilizing three techniques – implementing a Total Quality Management-style survey and review, nominating and electing class virtues, and telling personal stories of moral action – classes can be organized to operate by the social contract, rights, stakeholder, and virtue theories that dominate business ethics literature. Classes then become laboratories for the practical articulation and application of the theories as well as providing real examples of the theories in action. This methodology produces benefits for the particular class and for the development and refinement of the theories themselves.This paper describes each of the three pedagogical techniques; and then explicitly relates them to these leading business ethics theories to demonstrate how the integration can lead to a community seeking and discovering moral truth in the classroom.     

The Battle for Business Ethics: A Struggle Theory

To be and to remain ethical requires struggle from organizations. Struggling is necessary due to the pressures and temptations management and employees encounter in and around organizations. As the relevance of struggle for business ethics has not yet been analyzed systematically in the scientific literature, this paper develops a theory of struggle that elaborates on the meaning and dimensions of struggle in organizations, why and when it is needed, and what its antecedents and consequences are. An important conclusion is that the greater the ethics gap and opposing forces, the greater the struggle required. Viewing business ethics as struggle has several implications for theory and practice.     

A Conflict Case Approach to Business Ethics

Departing from frequent use of moral conflict cases in business ethics teaching and research, the paper suggests an elaboration of a moral conflict approach within business ethics, both conceptually and philosophically. The conceptual elaboration borrows from social science conflict research terminology, while the philosophical elaboration presents casuistry as a kind of practical, inductive argumentation with a focus on paradigmatic examples.     

Evaluating Risk in Business Ethics Case Studies

Business management often involves decisionsabout risks to human health and such cases tendto be central to business ethics courses. Overthe last two decades much development has takenplace in the science of risk analysis andlessons have emerged from this work which willmake a useful addition to the ethicalevaluation of case study material in a businessethics courses.In particular, students need to be familiarisedwith and made cautious of the notion ofacceptable risk.     

A Role for Ethics Theory in Speculative Business Ethics Teaching

The paper discusses the role that ethics theory might play in business ethics teaching. It is noted that little attention is devoted to the explanation and application of ethics theory in business ethics textbooks, which suggests that ethics theory is held in low esteem by business ethics educators. This relative disregard has been justified by some critics on the basis of the limited usefulness of ethics theory to business ethics pedagogy. Notwithstanding these criticisms, the paper argues that ethics theory can play an important role in business ethics teaching which conforms to a speculative agenda. A speculative agenda is described, and a contribution that ethics theory can make to it is explained. This constitutes a form of immanent critique, which enables putative statements of business ethicality to be subjected to critique against the cultural values upon which their credibility rests. Ethics theory is offered as a mediating resource to facilitate such critique. Some criteria that the presentation of ethics theory needs to meet if it is to fulfill this speculative agenda are also outlined.     

Teaching Business Ethics: The Role of Ethics in Business and in Business Education

The paper begins with an examination of traditional attitudes towards business ethics. I suggest that these attitudes fail to recognize that a principal function of ethics is to facilitate cooperation. Further that despite the emphasis on competition in modern market economies, business like all other forms of social activity is possible only where people are prepared to respect rules in the absence of which cooperation is rendered difficult or impossible. Rules or what I call the ethics of doing, however, constitute just one dimension of ethics. A second has to do with what we see and how we see it; a third with who we or what I describe as the ethics of being. Of these three dimensions, the first and the third have been most carefully explored by philosophers and are most frequently the focus of attention when teaching business ethics is being discussed. I argue that this focus is unfortunate in as much as it is the second dimension which falls most naturally into the ambit of modern secular educational institutions. It is here that moral education is most obviously unavoidable, and most clearly justifiable in modern secular teaching environments. I conclude by describing the importance of this second dimension for the modern world of business.     

Ethical Theory in German Business Ethics Research

This article offers an overview over the wide scope business ethics has reached in German speaking countries; works which in their majority are not yet available in English translation. The proposed concepts range from a focus on the individual manager and a focus on moral education of managers, via the procedural model of discourse ethics to pressure group ethics and business ethics from a Christian point of view. Other authors suggest an economic theory of moral behaviour, or see ethics as an assurance for decisions under uncertainty or argue for a more enlightened concept of economic rationality.     

Teaching Business Ethics: A Case Study Of An Ethics Across The Curriculum Policy

The faculty within the undergraduate businessdepartment at Nova Southeastern University hasinstituted an Ethics Across The Curriculum Policy. This paper shares the steps the faculty followed inthe development and adoption of this policy. It isour hope that sharing our experiences concerning thispolicy implementation will help others consider asimilar policy. Recommendations are provided forpolicy development.     

Cognitive Theory and Moral Behavior: The Contribution of F. A. Hayek to Business Ethics

This paper shows how business ethics as a concept may be approached from a cognitive viewpoint. Following F. A. Hayek's cognitive theory, I argue that moral behavior evolves and changes because of individual perception and action. Individual moral behavior becomes a moral rule when prominently displayed by members of a certain society in a specific situation. A set of moral rules eventually forms the ethical code of a society, of which business ethics codes are only a part. By focusing on the concept of "limited" or "dispersed knowledge" that underlies the cognitive approach, I show that universal ethical norms that should lead to defined outcomes cannot exist. This approach moreover shows the limits of deliberate rule-setting. Attempts to deliberately impose universal ethical rules on societies may turn out to be harmful for societal development and lead to an abuse of governmental power.     

The Relationship Between U.K. Banks and Their Small Business Customers

Much emphasis is placed upon the benefits to both parties of a good relationship between banks and their small business customers. Having explained the significance of SMEs in the U.K. Economy, the papers goes on to consider, briefly, some of the arguments which underpin the rationale for these relationships. The roles of information and communication are discussed and the poor co-ordination between banks, SMEs and their accountants is highlighted. Evidence from over 6,000 small businesses in response to the Forum of Private Business survey in 1994 is then presented. This demonstrates the strong positive association between more participative relationships and more positive perceptions of their banks by firms. Finally it is suggested that a virtuous circle of information and communication could be established if the parties cooperate in a systematic process of risk assessment.     

Of Fallacies and Curricula: A Case of Business Ethics

One of the main objectives of the undergraduate business school curriculum is to develop the students' critical thinking and decisionmaking skills. Official documents such as the school's objectives usually state this as part of its social contract. However, university processes sometimes break the most elementary rules of logical reasoning which, in turn, may lead to questionable decisions. This paper discusses the specific case of the mandatory stand-alone business ethics course as an instance of flawed reasoning in curricular processes. Educational institutions model the students' decision making patterns, not only by formal courses but by the example their own decision making processes set. Academicians should be aware of these processes' underlying values and vices. This should lead to better decisions and set a proper example for our students.     

The Separation of Technology and Ethics in Business Ethics

The purpose of this paper is to draw out and make explicit the assumptions made in the treatment of technology within business ethics. Drawing on the work of Freeman (1994, 2000) on the assumed separation between business and ethics, we propose a similar separation exists in the current analysis of technology and ethics. After first identifying and describing the separation thesis assumed in the analysis of technology, we will explore how this assumption manifests itself in the current literature. A different stream of analysis, that of science and technology studies (STS), provides a starting point in understanding the interconnectedness of technology and society. As we will demonstrate, business ethicists are uniquely positioned to analyze the relationship between business, technology, and society. The implications of a more complex and rich definition of ‘technology’ ripple through the analysis of business ethics. Finally, we propose a pragmatic approach to understanding technology and explore the implications of such an approach to technology. This new approach captures the broader understanding of technology advocated by those in STS and allows business ethicists to analyze a broader array of dilemmas and decisions.     

The Middle Path: Using Dual-Investor Theory in Teaching Business Ethics

Graduates of business ethics courses often fail to apply what they have learned to decisions in business life because, this study finds, neither stakeholder theory nor shareholder-oriented theories seem satisfactory – less than 7% of respondents felt either view achieved the best balance between social responsibility and making a profit. Dual-Investor theory offers students a framework within which to articulate and think through the ethical dimensions of business decisions, a framework 77.8% of respondents overall and 82.1% of business students claimed they were most likely to use in making their own decisions. The paper provides three sample cases illustrating the instructional advantages of Dual-Investor theory and points out several ways instructors might use Dual-Investor theory in business ethics courses.