Moral Compliance and the Concealed Charm of Prudence

The key to moral behavior is often perceived to consist of ignoring rational self-interest and instead following norms recommended by religious tradition and moral philosophy. A central issue is the connection between these ambitions and actual behavior. Are an idealistic mood and an ethics of ambition the way out of an iron cage of individualistic rational behavior? Or is ethics best served by rules and incitements in harmony with rationality? The article discusses morality from the perspective of compliance. A normative suggestion in the Prisoner’s Dilemma exemplifies the case of prudent morality. The player should contribute if the expected value of that choice exceeds his payoff of mutual defection. The article questions the value of an absolute morality and suggests a morality that is more of a prudent policy than a categorical imperative. A conviction favoring a good average result in the long run is the most relevant argument for complying with a rule. The structure of economic games can give useful insights about problematic situations and consequences of different strategies. Being prudent rather than doing good might be a better policy not only for the agent, but also for organizations and society.     

论我国伦理经济观重塑与社会主义和谐社会的构建

在中国长期以儒家为中心的文化氛围中,伦理经济思想是社会经济肌体运行的主要指导。在近代西方经济思想中,以亚当·斯密为代表的古典经济学家所倡导的＂经济人＂理论,奠基了西方经济伦理的道德基础。而现代经济学中的＂理性经济人＂理论逐渐抛弃了古典学派＂经济人＂理论所蕴涵的伦理传统,以单纯追求自我利益最大化为惟一的理性,从而导致＂经济人＂伦理道德的缺失。建立在单一经济观基础上的现代西方经济学理论虽促进了现代经济的繁荣与发展,也带来一系列不良后果。建设社会主义和谐社会,需要继承中西方传统文化的精髓,对＂经济人＂理性重新改造,重塑伦理经济观。     

Imperfect Duties and Corporate Philanthropy: A Kantian Approach

Nonprofit organizations play a crucial role in society. Unfortunately, many such organizations are chronically underfunded and struggle to meet their objectives. These facts have significant implications for corporate philanthropy and Kant’s notion of imperfect duties. Under the concept of imperfect duties, businesses would have wide discretion regarding which charities receive donations, how much money to give, and when such donations take place. A perceived problem with imperfect duties is that they can lead to moral laxity; that is, a failure on the part of businesses to fulfill their financial obligations to nonprofit organizations. This article argues the problem of moral laxity rests on a misinterpretation of Kantian ethics and, therefore, is really not a problem at all. As such, we argue corporate philanthropy while an imperfect duty should be interpreted more akin to perfect duties and, as a consequence, moral laxity does not arise for those corporations committed to acting on the basis of the moral law. More specifically, firms have duty-based obligations on the basis of benevolence, and as good corporate citizens, to help fund non-profit organizations.     

论企业信用关系中的道德支撑

市场经济是以理性化为特征的信用经济或法治经济,需要以自由、平等、信用和契约为基础建立一种普遍性的交换关系。目前,我国正处在经济体制转轨时期,市场规则和市场秩序尚不健全,离开道德主体人格的塑造,离开政府信用与企业信用关系的良性互动,构建和谐社会只能是一句空话。为了切实发挥道德的调节功能,不仅要在全社会范围内建立符合社会主义核心价值体系内在要求的道德规范,还要提高政府的公共管理水平和社会参与者的整体素质。只有这样,才能发挥伦理道德这种“支持性资源”的支撑作用,促进我国社会经济的又好又快发展。     

After Durkheim: An Agenda for the Scoiology of Business Ethics

Over the last twenty years the organization of business activity appears to have shifted from an emphasis on bureaucratic organizations toward an emphasis on market structures. Economic self-interest has acquired a new social legitimacy, and the force of traditional moral authorities has waned. In these circumstances the work of Emile Durkheim on the problematics of business ethics and the impact of a culture of self-interest on the stability of society, work that has hitherto been neglected by the business ethics community, acquires a new relevance. In this paper we review Durkheim's problematization of business ethics, establish its relevance for the contemporary world, and use it to develop an empirical research agenda for the contemporary sociology of business ethics.     

Virtue Is Good Business: Confucianism as a Practical Business Ethics

This paper argues Confucianism is a compelling managerial ethic for several reasons: 1) Confucianism is compatible with accepted managerial practices. 2) It requires individuals and organizations to make a positive contribution to society. 3) Recognizes hierarchy as an important organizational principle and demands managerial moral leadership. 4) The Confucian "golden Rule" and virtues provide a moral basis for the hierarchical and cooperative relationships critical to organizational success. The paper applies Confucianism to the H. B. Fuller in Honduras: Street Children and Substance Abuse case.     

Social capital: a review from an ethics perspective

Social capital has as its key element the value of social relationships to generate positive outcomes, both for the key parties involved and for wider society. Some authors have noted that social capital nevertheless has a dark side. There is a moral element to such a conceptualisation, yet there is scarce discussion of ethics within the social capital literature. In this paper ethical theory is applied to four traditions or approaches to economic social capital: neo‐capitalism; network/reputation; neo‐Tocquevellian; and development. Each is considered in detail and subject to ethical analysis by the application of utilitarianism, Kantianism, justice and rights, and ethic of care. Accordingly, the assumption that social capital is either value‐neutral or a force for good is critiqued, and a framework for understanding social capital from an ethics perspective is presented.     

“Greed is good” ... or is it? Economic ideology and moral tension in a graduate school of business

This article reports the results of an exploratory investigation of a particular area of moral tension experienced by MBA students in a graduate school of business. During the first phase of the study, MBA students' own perceptions about the moral climate and culture of the business school were examined. The data gathered in this first part of the study indicate that the students recognize that a central part of this culture is constituted by a shared familiarity with a set of institutionally reinforced premises about human behavior and motivation including the ideas that: 1) people are self-interested utility-maximizers, 2) individuals should be unimpeded in their pursuit of their own self-interest through economic transactions, and 3) virtually all human interactionsare economic transactions. The data further indicated that the business students experience a degree of tension between this ethic of self-maximizing and the everyday ethics prevalent in our broader culture, in which altruism and selflessness are central elements. The final section of the study was an effort to see whether and how these institutionally sanctioned premises were integrated into the students' arguments about the relationship between self-interest and social responsibility.Janet S. Walker is currently a PhD candidate in The University of Chicago's Committee on Human Development. Previously, Ms. Walker worked in both public and private sector organizations, conducting economic research in the United States and abroad. Ms. Walker's current research focusses on understanding economic activity as meaningfully embedded in a psychological and cultural context. Ms. Walker is also pursuing certification in clinical psychology.     

How Virtue Fits Within Business Ethics

This paper proposes that managers add an attention to virtues and vices of human character as a full complement to moral reasoning according to a deontological focus on obligations to act and a teleological focus on consequences (a balanced tripartite approach). Even if the criticisms of virtue ethics cloud its use as a mononomic normative theory of justification, they do not refute the substantial benefits of applying a human character perspective – when done so in conjunction with also-imperfect act-oriented perspectives. An interactive tripartite approach is superior for meeting the complex requirements of an applied ethic. To illustrate how deficiencies of a "strong" virtue ethics formulation can be overcome by a balanced tripartite approach, this paper compares normative leadership paradigms (each based on a combination of virtue, deontology, or consequentialist perspectives) and the dangers inherent in each. The preferred paradigm is servant leadership, grounded in a tripartite ethic. Effective application of such an ethics approach in contemporary organizations requires further empirical research to develop a greater understanding of the moral language actually used. Meeting this challenge will allow academics better to assist practicing managers lead moral development and moral reasoning efforts.     

“斯密问题”的解读与启示——基于斯密人性观的再考察

亚当·斯密在《道德情操论》中认为人的主要动机是自利的,但他同时还承认存在次要的利他动机。因此,斯密实质上是人性二元论者。而在《国富论》中,其关于行为动机的自利设定只是出于构建理论体系的需要而对现实人性所作的必要抽象。综合考察《国富论》的研究主题和内容、斯密所处的历史发展阶段以及他关于自利设定的隐含预设,我们揭示这种抽象是合理的。因此,正是在上述意义上,＂斯密问题＂才是一个伪问题。澄清＂斯密问题＂的理论启示是：在构建经济理论时,需要基于现实情境合理地抽象出基本假设;实践启示是,构建适宜的道德基础对于我国市场经济的健康发展至关重要。     

Play fair! Innovating internal self-regulation in the market for profit

Regulation imposes compliance demands on business, but these controls by no means ensure that corporations will act ethically. Externally imposed controls by government or industry are prompts intended to move organizations to engage in a moral minimum. Such efforts are typically reactionary corrective measures, often crafted and applied after an ethical scandal occurs, and thereby offer limited effectiveness in providing systemic change. To provide insight on internally driven controls, this article examines how a newer form of monetized self-regulation, referred to as inverted moral markets, might be leveraged to motivate corporate ethical behavior. Inverted moral market (IMM) operations target firms suspected of unethical action, providing a type of market whistleblowing. Such activities are monetized through the sale of information to investors and by short selling. Rather than a desire to build moral strength, IMM firms are motivated by self-interest and profit. They can potentially ‘do good’ by imposing self-correction within the market, but without virtuous intent. We explore IMMs and the varied impacts their activities may have on the functioning of the overall market. We argue that a more balanced approach between internal and external regulation may enhance the environment for moral balance in a capitalist market system.     

Social Capital Initiatives: Employees and Communication Managers Leading the Way?

Organizations’ development of social capital and their decision to give back to society are becoming increasingly important to the business of managing organizations as much more than profit-driven entities. This article focuses on the rationale for an Australian–Canadian study on employees’ involvement in social capital initiatives and the communication management of these initiatives. As employees are key stakeholders, they play a vital part in achieving organizational goals. This study, a work in progress, highlights an in-depth, qualitative analysis of two organizations—one in Canada and one in Australia—committed to funding community projects as part of their corporate social responsibility development and commitment. The importance of a qualitative study that focuses on subjective components of social capital is that it develops understanding of employees’ attitudes, feelings, and viewpoints. It also begins to investigate why employees might/might not be committed, to organizations’ social capital initiatives. Using an interpretative analysis lens, an understanding of the moral, relational, and communication dynamics is explored. Questions surrounding concepts such as the moral fiber of social capital are highlighted and critiqued in the context of community engagement and what organizations’ social capital investments mean as part of their responsibility to society.     

Vocational Virtue Ethics: Prospects for a Virtue Ethic Approach to Business

In this essay, I explore the prospects for a virtue ethic approach to business. First, I delineate two fundamental criteria that I believe must be met for any such approach to be viable: viz., the virtues must be exercised for the sake of the good of one’s life as a unitary whole (contra role-morality approaches) and for the common good of the communities of which one is a part as well as the individual good of their members (contra egoist approaches). Second, I argue that these two criteria can be met only if we are able to reconceive and transform the nature of work within contemporary business organizations. In particular, what is needed, I argue, is a retrieval of something like the older ideal of work as a “vocation”, or “calling”, whereby work can be viewed as a specific aspect of a more general calling to pursue, through the practice of the virtues, “the good life” both for ourselves and for others. Lastly, I consider some important challenges to this “vocational virtue ethic” approach to work within contemporary business organizations and offer a few suggestions for how they might be met.     

Adam Smith's invisible hand argument

Adam Smith is usually thought to argue that the result of everyone pursuing their own interests will be the maximization of the interests of society. The invisible hand of the free market will transform the individual's pursuit of gain into the general utility of society. This is the invisible hand argument. Many people, although Smith did not, draw a moral corollary from this argument, and use it to defend the moral acceptability of pursuing one's own self-interest. Smith does use the invisible hand argument; however, a close reading of theWealth of Nations reveals that Smith thought the interests of merchants and manufacturers were fundamentally opposed to those of society in general, and that they had an inherent tendency to deceive and oppress society while pursuing their own interests. How can these two views of what results when merchants and manufactures pursue their self-interest be made compatible? It is argued that the invisible hand argument when applied to merchants and manufacturers, (its application to labour and landlords is only mentioned briefly), is extremely restrictive, and that similar restrictions must apply to the moral corollary. In particular, the invisible hand argument applies only to investing capital in one's own country for maximum profit.     

Reconsidering the Common Good in a Business Context

In our contemporary post-modern context, it has become increasingly awkward to talk about a good that is shared by all. This is particularly true in the context of mammoth multi-national corporations operating in global markets. Nevertheless, it is precisely some of these same enormous, aggrandizing forces that have given rise to recent corporate scandals. These, in turn, raise questions about ethical systems that are focused too myopically on self-interest, or the interest of specific groups, locations or cultures. The obvious traditional alternative to moral bellybutton gazing is the common good, which challenges the modern business enterprise to realize non-instrumental values that can only be attained in our life together. The common good dictates that leadership should be judged, first of all, according to moral criteria rather than professional competence. It helps correct the distorted prioritization of the maximization of profit in every business decision, recognizing that businesses have a multitude of rights and responsibilities, and the common good reminds us that the first of these is not always profit-making.     

The Ethics of Consumption Activities: A Future Paradigm?

Concern about the environment and sustainable growth has raised questions related to resource availability and limits regarding the ability of the planet to provide everyone with an improved material standard of living. Such concerns lead to charges that the industrialized world, particularly the United states, is living beyond its means and taking more than its share of resources to produce a life style that is not sustainable. Whether overconsumption is a legitimate problem and changing patterns of consumption are necessary are questions that need discussion. The Protestant Ethic provided moral limits on consumption during the early stages of industrialization in Western Europe and the United States. This ethic weakened during the development of a consumer society, prompting speculation that a new environmental ethic is needed to perform the same function in modern society.     

基于信息不对称的电子商务诚信问题研究

概述电子商务环境下信息伦理隐私权、信用危机及知识产权。从信息不对称角度分析电子商务信息伦理问题产生的过程及其对电子商务发展的影响。针对逆向选择,提出建立许可制度,保证书和建立品牌作为应对措施;针对道德风险,提出建立第三方支付企业,成立第三方认证机构,采取长期合作机制和开展物品保险业务作为应对措施,为解决电子商务信息伦理问题提供新思路。     

Does the Individualist Consume More? The Interplay of Ethics and Beliefs that Governs Consumerism Across Cultures

Individualism leading to more consumerism seems to be a bit of truism nowadays in the media. The USA is particularly indicted for being too individualistic and consumerist. Past research has mostly indicated a positive relationship between the two. However, past research has not suggested a negative association between individualism and consumerism. This paper offers support for such a negative relationship by showing that an individual’s ethical values can temper the consumerist nature of individualists. Data were collected in the USA and Taiwan. Structural equation models demonstrate that our hypothesized model fits our data well. A key result over the global sample is the stability of the linear path from individualism to work ethic to consumer ethic to consumerism. The two-nation comparison also supports differences in how Taiwanese and Americans differ in their belief that consumption benefits society.     

The Global Economic Ethic Manifesto: Implementing a Moral Values Foundation in the Multinational Enterprise

The Global Economic Ethic Manifesto (“Manifesto”) is a moral framework/code of conduct which is both interactive and interdependent with the economic function of the main institutions of the economic system: markets, governments, civil society, and supranational organizations, which lays out a common fundamental vision of what is legitimate, just, and fair in economic activities. The Manifesto includes five universally accepted principles and values: the principle of humanity; the basic values of non-violence and respect for life; the basic values of justice and humanity; the basic values of honesty and tolerance; and the basic values of mutual esteem and partnership. We posit that the Manifesto provides an ethical foundation for explicitly assisting multinational enterprise's (“MNE”) executive management and boards of directors to meet the moral failures criticisms associated with the expansion of global capitalism, and similarly how the U.N. Global Compact (“Compact”) is focused on addressing complimentary market and institutional failures. In this article, we argue how the Compact and the Manifesto complement each other, explaining how the policies and guidelines of the Compact can now be implemented at the organizational/individual level through a comprehensive human resource management (HRM) plan supporting the ethical framework of the Manifesto. Finally, we have described how the Manifesto completes a comprehensive managerial framework (consisting of both the Compact and the Manifesto) for what we term an “MNE Moral Values-Based Corporate Governance Model.” Ultimately, further research is needed in understanding how much impact external and internal influences make on creating a sustainable ethical culture in MNEs.     

How Can Business Ethics Strengthen the Social Cohesion of a Society?

The essay aims to show how business ethics—understood as a three-level approach—can strengthen the social cohesion of a society, which is jeopardized today in many ways. In the first part, the purpose of business and the economy is explained as the creation of wealth defined as a combination of private and public wealth that includes natural, economic, human, and social capital. Special emphasis is placed on the implications of the creation of public wealth which requires institutions other than the market and motivations other than self-regarding ones. In the second part, the question of what holds a society together is discussed through different approaches: enlightened self-interest, a new game-theoretical approach, and the concept of the common good advanced by Catholic Social Teaching, followed by my own proposal. The third part presents several perspectives for business ethics to strengthen social cohesion of a society (a) by focusing on the purpose of business and the economy to create natural, economic, human, and social capital; (b) by advancing public goods that stand the test of ethical scrutiny; and (c) by securing human rights conceptualized as public goods.