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.     

Unit (non)response in Web‐based access panel surveys: An extended planned‐behavior approach

The decision process when requested to participate in a Web survey is understood most appropriately by applying a psychological theory of human action. Consequently, this study utilized an extended version of Ajzen's theory of planned behavior to predict and explain the number of participations in a five‐wave Web‐based panel study. Based on this model, the determinants of unit nonresponse in Web‐based surveys are one's attitude toward participating in Web surveys, internalized social pressure, perceived behavioral control, and extent of moral obligation toward participating. The results indicate a satisfactory predictive power of the model. Perceived behavioral control and attitude toward participation predict the intention to participate best, followed by internalized social pressure and moral obligation. The theoretical perspective pursued proved to be valuable in terms of its predictive and explanative power as well as its practical value for Web‐based survey research. © 2005 Wiley Periodicals, Inc.     

Schefflerian ethics and corporate social responsibility

This paper examines some of the essential features of Samuel Scheffler's hybrid theory of ethics. Scheffler posits and defends a moral theory which is intended to be neither act-consequentialist nor fully agent-centered. Instead, it provides an agent-centered analysis of moral thinking: one that, unlike consequentialist theories, respects the personal integrity of the moral agent. In this paper I shall do the following: (1) Sketch some of the general points of Scheffler's proposal; (2) Apply Scheffler's ethical theory to the matter of corporate social responsibility; and (3) Raise some objections to this Schefflerian corporate social responsibility theory, along with some modifications of this hybrid theory of corporate social responsibility which are intended to evade such criticisms.The significance of this paper is that it shows that Scheffler's quite innovative ethical theory is problematic as a foundation for a theory of corporate social responsibility. J. Angelo Corlett is a research fellow in philosophy at the University of California, Santa Barbara. He has published philosophy papers in the Journal of Business Ethics, Business & Professional Ethics Journal, Public Affairs Quarterly, and the American Psychologist among other journals. His areas of interest include Social/Political Philosophy, Ethics and Value Theory. He is currently working on a book entitled Liberty and Equality: Analyzing Nozick and Rawls.     

Managerial ethics and microeconomic theory

There is a very apparent conflict between economists and ethicists over the moral standards that should be applied to the managers of business firms. The view of most economists is that moral standards in business are not relevant, beyond the normal personal obligations to speak the truth and observe the law, because profit maximizing behaviour, under market and resource constraints, leads inexorably to social welfare optimization. The opposing view of most humanists is that modern markets are not competitive enough to be constraining, that profit maximization often leads to social harm, and that welfare benefits are unjustly distributed. The article examines the moral constructs in microeconomic theory and the ethical objections to that theory at both the pragmatic and theoretic levels, and concludes that inappropriate assumptions about the nature and worth of human beings in the economic paradigm require the use of moral standards for business decisions and actions. LaRue Tone Hosmer is Professor of Policy and Control at the School of Business Administration, University of Michigan. His most important publications are: The Entrepreneurial Function, Prentice-Hall, 1977; Academic Strategy, University of Michigan Press, 1979; Strategic Management, Prentice-Hall, 1982; and Formation Planning, McGraw-Hill, 1984.     

The Moral Intensity of Privacy: An Empirical Study of Webmaster' Attitudes

Webmasters are a key moral agent in the issue of privacy. This study attempts to understand the factors underlying their attitudes about privacy based on the theory of moral intensity. Webmasters of high-traffic sites were invited via email to participate in a web-based survey. The results support the application of moral intensity to the domain of privacy and the population of webmasters – both outcomes and social norms have statistically significant main effects on attitudes. The results also suggest a reconfiguration of the dimensions of moral intensity. This is based on the observation that proximity to the organization has a negative main effect on attitudes, and it moderates the relationship between social norms and attitudes. The original theory of moral intensity did not acknowledge the possibility of this moderating role for proximity. These observations have important implications for future research and practice in the areas of privacy, moral intensity, and ethical decision making.     

Psychological drivers in the adoption of morally controversial innovations: the moderating role of ethical self‐identity

The present article conceptualizes morally controversial innovations as a category of innovations that raise ethical issues due to their potentially undesirable long‐term consequences on society or the natural environment. Then, it analyzes the case of biofuel crops by applying an extended version of the theory of planned behavior, which includes moral norm (i.e. the personal convictions of what is wrong or right for society) and ethical self‐identity (i.e. the extent to which one perceives himself/herself as an ethical person). The obtained results show that attitude and subjective norms are positively related to farmers' intention to grow biofuel crops. Yet the intention of those farmers with a higher ethical self‐identity is also influenced by perceived behavioral control and moral norm. In particular, moral norm negatively affects their intention to grow biofuel crops, thus restraining the adoption of this innovation. Implications for theory, as well as for policymakers interested in promoting the diffusion of morally controversial innovations, are discussed.     

Patterns of social reporting from an Islamic framework and the moral legitimacy factors that influence them

The objective of this study is twofold: to examine the patterns that govern social reporting with reference to an Islamic framework and to identify the moral legitimacy factors that influence them. We select 146 publicly listed Sharia‐compliant companies and classify the disclosures in their annual reports according to an Islamic framework that categorises items as either Required, Expected or Desired to indicate the degree of importance each item carries from an Islamic perspective. Based on this framework, we then analyse moral legitimacy factors, specifically the type of Sharia screening body and the proportion of Muslims in the population, that may influence the prioritisation of the different categories of social reporting. We find that disclosures that fall into the Required category of our framework—especially those that relate to companies’ involvement in “haram” activities (activities not permissible in Islam)—are still few among the companies studied. Our research also reveals that both moral legitimacy factors under investigation influence the three categories of social reporting, although in different ways. This research contributes to the existing literature by empirically examining how organisations prioritise their disclosure of virtues and the moral legitimacy factors that influence that prioritisation.     

Does consumer‐firm affiliation matter? The impact of social distance on consumers’ moral judgments

When the leader of a firm commits a professional transgression, how would customers’ judgments of the transgressor's professional performance and immorality differ from those of noncustomers’? This research answers this question by investigating factors that explain the discrepancy in moral judgments between noncustomers and customers affiliated with the firm of a transgressing leader. Drawing on construal level theory, our two experimental studies consistently demonstrate that relative to high social distance (i.e., noncustomers), low social distance (i.e., customers) leads to more positive judgments of the transgressor's professional performance, but differences in the social distance do not directly lead to disparities in judgments of immorality. Social distance, however, affects both performance and immorality judgments when mediating mechanisms (conscious and nonconscious moral reasoning) are accounted for, such that low social distance indirectly influences customers to be more lenient in not only their performance judgments but also their immorality judgments. This research contributes to the topic of morality that permeates the current discourse on ethical business transgressions and, in particular, to an understanding of specific mechanisms that guide consumers’ moral judgments.     

A Taxonomy of Social Networking Site Users: Social Surveillance and Self‐surveillance Perspective

Since social networking sites (SNS) are widely used in modern society, users increasingly use SNS to manage or maintain their existing social relationships and form new ones. This research applies social surveillance and self‐surveillance to classify SNS user types and explores each type's effect on SNS’ marketing performances. Three hundred three online questionnaires are collected to test the research questions. The results of cluster analysis and multivariate analysis of variance (MANOVA) reveal the following four user types based on the different degrees of social surveillance and self‐surveillance: versatile users, self‐expression users, pass‐along users, and introvert users. Further, the introvert users have the least impact on product‐related information sharing, perception of social presence, purchase intention toward offers on SNS, and emotional experiences in social shopping among the four SNS user types.     

Moral dilemmas,moral reasons and moral learning: interpreting a real case in terms of particularistic theory

The core of the paper consists of dialogue from a true case where an employee experienced moral dilemmas following a disquieting directive from his manager. The case is considered from the perspective of Dancy's particularistic theory of moral reasons (with some insight also from Ross's theory of prima facie duties). This case was chosen not to illustrate the theory, but rather to test the assumption that an approach to moral judgement based on Ross and Dancy has general applicability. It is suggested that, in its simplest form, that approach approximates to the manner in which people in organisations, without prior knowledge of ethical theorising, would ordinarily deal with comparable situations, and so it can be relatively easy to learn given practice. Based on this case, some insight is also offered into individuals' moral learning, including their need for personal qualities such as assertiveness and independence of mind. In that context a reciprocal relationship between Dancy's approach and Werhane's thinking on moral imagination is suggested.     

Ties that Unwind: Dynamism in Integrative Social Contracts Theory1

Social contract theory offers a powerful method and metaphor for the study of organizational ethics. This paper considers the variant of the social contract that has arguably gained the most attention among business ethicists: integrative social contracts theory or ISCT [Donaldson and Dunfee: 1999, Ties That Bind (Harvard Business School Press, Boston)]. A core precept of ISCT – that consent to membership in an organization entails obligations to follow the norms of that organization, subject to the moral minimums of basic human rights – is a reasonable and appealing notion. One potential challenge for those attempting to apply this idea, however, lies in the dynamic nature of social norms. Organizational norms evolve, often through the conscious efforts of community members and leaders. As currently formulated, ISCT offers a framework that under-appreciates the evolving nature of moral norms. In this paper, we extend ISCT by considering the circumstances under which the terms of and parties to social contracts change. We also consider a number of principles that should be considered as the terms and parties to organizational social contracts change.     

Participation in the organization: An ethical analysis from the papal social tradition

How one structures an organization is not only important from the perspective of productivity and efficiency, but primarily how it affects the moral formation of those who are employed in that organization. Organizational structures whether in the manufacturing, service or non-profit sector have moral dimensions that cannot be escaped. Papal social tradition has been concerned about the moral formation of all workers within the organization. This tradition has maintained that an essential component to a humane organizational structure is participation of those involved in the organization, and consequently that participation must be understood primarily in terms of the formation of employees. This article explores the papal social tradition's understanding of participation and examines its significance in today's organizational environment, particularly in reference to work-teams.Michael Naughton is an assistant professor at the University of St. Thomas in St. Paul, MN. He holds a joint appointment in the theology and management departments. He received his Ph.D. in theology, where he studied social ethics and organizational theory. He is currently finishing his MBA at the University of St. Thomas. He is the author ofThe Good Stewards which examines the relationship between organizational issues and the Catholic social tradition. He has also published several articles and has delivered several papers, presentations, and workshops on organizational issues and the Christian social tradition.     

The Questionable Use of Moral Development Theory in Studies of Business Ethics: Discussion and Empirical Findings

The topic of the article is how moral development theory can enlighten the understanding of ethical behaviour in business. It discusses previous research on the subject, and reports an empirical study of academics (engineers and business economists with a master degree) working in the private sector in Norway.Moral development theory is based on a long research tradition, and many researchers within business ethics have assumed the importance of moral reasoning in business environments. However, the truth of these assumptions has not been confirmed by previous empirical research.The article reports on my investigation into the relationship between moral reasoning, ethical attitudes and decision-making behaviour. The data were collected by a survey study among Norwegian engineers and business economists working in businesses (N = 449) in 1997.It has been hypothesised that strong ethical attitudes would have a restraining effect on moral reasoning. In order to test this, ethical attitudes were categorized into four issue categories. The assumption being that the four categories would explain the different restraints on moral reasoning. The statistical testing showed that there was a negative, but not significant, correlation between strong attitudes and good moral reasoning ability.It was also hypothesised that good ability in moral reasoning would tend to exhibit a smaller difference between Policy-decisions and Action-decisions. This hypothesis was based on the difference in behaviour explained in "espoused theory" and "theory in use". When making policy-decisions these can be based on espoused theory and nice "talk" because it is always possible to make exceptions to or reconsider a policy. Action-decisions, on the other hand, are very concrete because they immediately trigger an action. The statistical testing rejected my hypothesis but gave a significant converse result: Good ability in moral reasoning seems to imply less stability and more inconsistence.The article concludes with the fact that moral reasoning testing seems to explain some differences in moral reasoning among people in business but not what kind of behavioural effects these differences actually have.     

Feelings and functionality in social networking communities: A regulatory focus perspective

A sense of community is vital to the sustainability of both face‐to‐face and virtual communities. In this study, we use a mixed methods design to study the motivations that lead to satisfaction in a social media network. In Study 1, we semantically analyze the qualitative comments from a survey regarding the reasons for using social networks (n = 237). Consistent with the literature, the results identify two categories of underlying motivations—hedonic (feelings) and utilitarian (functionality). With these results, we apply regulatory focus theory in Study 2 to propose a structural equation model ( n = 622). This model differentiates between the experiences of promotion‐ and prevention‐focused individuals with social networking based on the core elements of feelings versus functionality . Our findings indicate that a sense of belonging and emotional connection are key hedonic elements and are more relevant for promotion‐focused individuals. For prevention‐focused individuals, the utilitarian and functional aspects of interactivity (influence) and innovativeness (risk) are more important in influencing satisfaction with a social network. Overall, positive and innovative user experience with a social media network requires the creation of an emotional connection, the existence of interactivity between members, and the cultivation of a sense of belonging.     

Moral Schemas and Business Practices: The Ethics of Guangzhou Migrant Marketers

This article explores the ethics of migrant marketers in Guangzhou. Data were collected from 357 migrant marketers who lived in Guangzhou. A model of Ethical Action has been developed to test the antecedents and outcomes of the ethical decision-making process. It measured moral intention using four ethical scenarios. The results show that the egoistic schema had a positive effect on their intention to act unethically, while the legislative schema exerted a negative effect. The results confirm that moral intention was a strong predictor of an individual’s subsequent actual behavior, and it fully mediated the influence of the legislative schema on actual behavior. This study adds to ethics literature by incorporating the construct of social identity and found a moderating effect between the legislative schema and moral intention. The relationships were stronger for individuals who were lower rather than higher in social identity. Analysis of these results lead to a discussion of the implications for marketing ethics in China.     

Reasonableness in morals

Underlying many of our uneasy debates about the social and moral responsibilities of professionals is a form of scepticism about the role of reason in morals. This claim is illustrated by examples drawn from both the pure-knowledge and applied-knowledge professionals. Hume's sceptical views about the role of reason in our knowledge of matters of fact and in morals are critically examined. An alternative theory of reasonableness that combines elements of foundationalism and coherentism, cognitivism and emotivism, and that emphasizes a process of congruence achieved through reflection, dialectic and dialogue is sketched and illustrated. It is claimed that this notion of reasonableness is the one actually involved in science, law and morals. Jack Stevenson is the author of Engineering Ethics: Practices and Principles, 1987. He has addressed a number of professional associations on topics in occupational ethics. Besides doing work in moral, social and political philosophy, epistemology and metaphysics, he has been philosophy consultant to the Canadian Encyclopedia and is currently working on a book on an early Canadian philosopher, G. P. Young.     

Towards an understanding of consumer recycling from an ethical perspective

Recycling is a post‐purchase consumer activity where the consumer usually considers not only individual but also social goals, ideas and ideologies. Accordingly, ethics is an inherent part of recycling; however, very few studies have explored this behaviour from an ethical point of view. The purpose of this paper is to explain consumer recycling by taking a multifaceted ethical approach. The conceptual model builds on theoretical underpinnings related to ethical consumption by exploring the extensions of the theory of planned behaviour, Jones' ethical decision‐making model and Holbrook's conceptualization of ethical consumption. Thus, the attitude‐intention framework incorporates three ethics‐related concepts: (1) moral obligation, i.e. the level of guilt to perform the behaviour, (2) moral intensity, i.e. the moral issue characteristics, and (3) collectivism, i.e. an individual‐level value orientation. The data were collected from a sample of Slovenian consumers, using an online consumer panel. The sample reflected the Slovenian population in terms of gender and age. The proposed conceptual model was tested using structural equation modelling. The results suggest the proposed ethical concepts play a significant role in the attitude‐intention framework. The more collectivistic individuals have more positive attitudes towards recycling. Moreover, the more consumers perceive recycling as morally intense, the more favourable their attitudes are. In turn, attitudes positively affect intentions to recycle. In addition, higher levels of moral obligation positively influence intentions to recycle. The only hypothesis that is not supported in this study refers to the influence of moral intensity on intentions to recycle. The implications for public policymakers and social marketers stem from a complex interplay of the antecedents of recycling behaviour. Future studies could go in several directions by extending the model to other moral issues, conducting a study in a cross‐cultural setting or taking a longitudinal approach.     

Actual and Perceived Sharing of Ethical Reasoning and Moral Intent Among In-Group and Out-Group Members

Despite an extensive amount of research studying the influence of significant others on an individual's ethical behavior, researchers have not examined this variable in the context of organizational group boundaries. This study tests actual and perceptual sharing and variation in ethical reasoning and moral intent within and across functional groups in an organization. Integrating theory on ethical behavior, group dynamics, and culture, it is proposed that organizational structure affects cognitive structure. Departmental boundaries create stronger social ties within the group as well as intergroup biases between the groups. Thus individuals will be more likely to share in ethical reasoning and moral intent with members of their own functional group (in-group) than with members of other functional groups (out-group). Additionally, they will perceive that they are more likely to share in ethical reasoning and moral intent with in-group members than with out-group members. Responding to two versions of two ethical scenarios, respondents contrasted their own ethical behavior to their expected ethical behavior of in-group and out-group members. Empirical results confirmed the hypotheses. Organizational group boundaries create actual as well as perceptual sharing and variation in ethical reasoning and moral intent. Furthermore, when comparing perceptual sharing to actual sharing, results show that individuals understate their sharing of ethical reasoning and moral intent with out-group members and overstate their sharing with in-group members. As organizational boundaries can create actual and perceived differences between groups that could lead to inter-group conflict, suggestions for management focus on removing or blurring inter-group boundaries.     

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.