Using Stakeholder-Theory into Case-Method

In order to draw some attention to the subject of business ethics and to achieve the inclusion of business ethics into the official curricula of the sixth form courses in secondary schools in Flanders, the Flemish Network for Business Ethics set up a pilot project. It includes about twelve lessons. The main object is to teach students how to cope with an ethical problem. Therefore an educational map has been edited – titled Ethics ...none of my business? (Siebens, 1998) – in which a procedure to handle an ethical problem is proposed. The procedure rests on the stakeholders-approach (Freeman, 1984). Other theoretical items are: ethical intuition, traditional moral norms and communication, a procedure approach, the limitation of acting, and the metaphysical basis (especially the existentialistic philosophy of Lévinas).

The basic procedure contains four steps. But the map makes a distinction between a procedure for a ‘choice’ directed situation and a procedure for an ‘evaluation’ directed situation. The subject of the project is business ethics, but the organizing commission hopes the students will learn to look at their entire world from an ethical angle. Because real ethical intuition hasn't to do with external hierarchical power and regulation but with selfregulation, argumentative authority and internalized values and principles.

     

Marketing research and corporate litigation ... Where is the balance of ethical justice?

Tampering with the judicial system has long been regarded as an unethical and illegal standard of corporate behavior. Advances in behavioral research have recently, however, skirted the ‘letter of the law’ by applying consumer research techniques to the sampling universe from which prospective jurors are selected. This practice has resulted in an unfair and measurable advantage which offsets any balance of ethics and justice. This article adopts a protagonistic perspective to demonstrate research illustrating jury evaluation techniques. Because the legal system, which is based on jurisprudence, does not have the ability or resources to monitor or regulate these practices, the question must be addressed within the domain of business ethics. ... Where does the balance of ethical justice lie? Is the sole objective to win and protect the bottom line of the corporate income statement, or does a code of business ethics apply?     

What’s the Good of Ethical Theory?

It is argued that presently prevailing ethical theories can be largely dispensed with. Such theories are of limited use in solving ethical problems. They fail because they are ‘reductionist’. They take an aspect of morality to be the whole of morality. Moreover, the very process of constructing, testing, and modifying them reveals that we already have that understanding of the nature of the ethical which they purport to provide us with. (This is labelled the ‘paradox of ethical theory’.) That prior understanding is the identification of morality with the common good. This, it is claimed, is all the understanding we need to approach problems within business ethics or any other branch of ‘applied ethics’. UNDERSHAFT. ...Well, come! Is there anything you know or care for? STEPHEN. I know the difference between right and wrong. UNDERSHAFT. ...Why man you’re a genius, a master of masters, a god! At twentyfour too! STEPHEN. ... I pretend to nothing more than any honourable English gentleman claims as his birthright. SHAW, Major Barbara, Act III     

A Personalistic Appraisal of Maslow’s Needs Theory of Motivation: From “Humanistic” Psychology to Integral Humanism

Abraham Maslow’s needs theory is one of the most influential motivation theories in management and organizational behavior. What are its anthropological and ethical presuppositions? Are they consistent with sound business philosophy and ethics? This paper analyzes and assesses the anthropological and ethical underpinnings of Maslow’s needs theory from a personalistic framework, and concludes that they are flawed. Built on materialistic naturalism, the theory’s “humanistic” claims are subverted by its reductionist, individualistic approach to the human being, which ends up in a needs-based ethics that understands goodness, virtue, and rights in instinctual, subjectivistic, and relativistic terms. Its moral imperative, “Be yourself!,” is either the materialistic fiat of genetic drives or the voluntaristic command of unbridled will. Significant implications for business educators, managers, and organizations are discussed, along with recommendations. Managerial theories and approaches that reduce personality to individuality are inconsistent with proper anthropological and ethical business principles. Adopting those individualistic theories may ultimately undermine organizational effectiveness, and the very essence of business as human activity and of management as human calling. Instead, personalistic anthropology and virtue ethics, rooted in Aristotelian–Thomistic thought, soundly account for properly human nature and the good life. Business educators and practitioners are encouraged to embrace this integral, truly humanistic framework for motivation, and management theory and practice.     

Teaching business ethics: Questioning the assumptions,seeking new directions

An examination of leading textbooks suggests the predominance of a principle-based model in the teaching of business ethics. The model assumes that by teaching students the rudiments of ethical reasoning and ethical theory, we can hope to create rational, independent, autonomous managers who will apply such theory to the many quandary situations of the corporate world. This paper challenges these assumptions by asking the following questions: 1. Is the acquisition of principle-based ethical theory unproblematic? 2. What is the transferability of classroom learning to the business context? 3. Is it appropriate to consider complementary models in the teaching of business ethics? The last question is approached from the perspective of virtues-based ethics, from the insights of feminist ethics, and from a culturally grounded orientation to moral values and norms.     

Virtue ethics and customer relationship management: towards a more holistic approach for the development of ‘best practice’

This paper focuses much‐needed attention on the ethical nature of customer relationship management (CRM) strategies in organisations. The research uses an in‐depth case study to reflect on the design, implementation and use of ‘best practice’ associated with CRM. We argue that conventional CRM philosophy is based on a fairly narrow construct that fails to consider ethical issues appropriately. We highlight why ethical considerations are important when organisations use CRM and how a more holistic approach incorporating some of Alasdair MacIntyre's ideas on virtue ethics could be relevant.     

Japanese Women in Management: Getting Closer to ‘Realities’ in Japan

Women managers are seldom seen in Japan. Female legislators, senior officials and managers are only 9 per cent of the total. It is also one of the main factors that have created the significant gender wage gap; female workers earned just 66.5 per cent of male worker earnings in 2002. This contribution explores reasons for the persistent phenomenon of very few female managers in the Japanese workplace despite economic and political factors favourable for ‘empowering’ women. To what extent is this situation explained by the cliché that women lack the ‘will’ to be promoted? The common explanation is that women ‘choose’ not to be promoted or leave their jobs because of their ‘attitude’ to marriage, birth and family responsibilities. Is that all? A recent study on work organization revealed the mechanism of constructing female private ‘attitudes’ and ‘choice’ within the organization. Although this new approach seems promising, this contribution argues that its local-oriented approach should be combined with macro analysis, especially focusing on the institutionalized practices beyond each workplace.     

A quantitative analysis of authors,schools and themes in virtue ethics articles in business ethics and management journals (1980–2011)

Virtue ethics is generally recognized as one of the three major schools of ethics, but is often waylaid by utilitarianism and deontology in business and management literature. EBSCO and ABI databases were used to look for articles in the Journal of Citation Reports publications between 1980 and 2011 containing the keywords ‘virtue ethics’, ‘virtue theory’, or ‘virtuousness’ in the abstract and ‘business’ or ‘management’ in the text. The search was refined to draw lists of the most prolific authors, the most cited authors, the most cited articles, and the journals with the most virtue ethics publications. This information allows one to chart how virtue ethics articles have evolved through the decades and to establish ‘schools’ or clusters of authors as well as clusters of themes. The results of this quantitative analysis of authors, ‘schools’, themes, and publications provide a foundation for the future study of virtue ethics in business and management, identifying its achievements and potentials.     

Business ethics research at the world's leading universities and business schools

This paper explores the role of the leading universities and best-ranked business schools in the evolution of the academic field of business ethics. An advanced bibliometric methodology is applied to publications in business ethics from the major universities of the Shanghai ARWU ranking and from the FT-ranked business schools. The comprehensive bibliometric study encompasses multiple indicators and examines the evolution of business ethics publications over time. Business ethics research is built on two complementary interdisciplinary streams of research, philosophy, and management. The study indicates that it were not the top universities that contributed most to research advancements in the field of business ethics but second and third tier universities. This finding suggests that academic research in new subfields constitutes a niche strategy for universities and business schools to differentiate themselves. The study furthermore highlights the prominent role of the product champion or ‘idea champion’ in management research at universities. The diffusion of business ethics research illustrates the possibilities for lower ranked business schools with lower budget to excel in specialised subfields and interdisciplinary subthemes.     

FOCUS: Is it Ethical to Compete on Ethics?

Should ethical performance be a competitive factor in business behaviour? Is this necessarily a cynical view?‘A mature investigation into the use and abuse of ethics in relation to competition is required.’Dr Alan Stainer is Head of Engineering Management at Middlesex University, Bounds Green Rd., London N11 2NQ, Fellow of the World Academy of Productivity Science and Founder Director of the International Society for Productivity & Quality Research. Mrs Lorice Stainer is Senior Lecturer in Business Organisation at the University of Hertfordshire, Hertford Campus, Mangrove Road, Hertford SG13 8QF, responsible for the European Business Studies programme, and Business Ethics consultant. This paper was first presented at a Seminar on Teaching Business Ethics held at London Business School on Friday, 10 March, 1995.     

Ethics in Tourism-Reality or Hallucination

Many professional organizations have established codes of ethics which members are expected to adhere to. These ethical codes serve an important function by containing the rules that govern the conduct of the members of the profession. Should the tourism industry be governed by a code of ethics? Is it important enough and large enough to spend a lot of time and energy developing a code of ethics since tourism is based on service rather than a physical good, which does not lend itself to standardization or control? This paper will examine these issues.     

Connecting the Two Faces of CSR: Does Employee Volunteerism Improve Compliance?

In 2004, the United States Sentencing Commission amended the Federal Sentencing Guidelines to allow firms that create “effective compliance and ethics programs” to receive better treatment if prosecuted for fraud. Effective compliance and ethics, however, appear to be limited to activities focused on complying with the firms’ internal legal and ethical standards. We explored a potential connection between the firms’ external corporate social responsibility (CSR) behaviors and internal compliance: Is there an organizationally valid relationship between these two firm activities? That is, when organizations demonstrate CSR with behaviors external to the firm, such as employee volunteerism, are their employees more likely to demonstrate uncompromised legal and ethical compliance behavior internally? We collected data from 164 working professionals enrolled in a top-tier MBA program in the southeastern United States regarding their employer-sponsored volunteer activities and their intentions to comply in various organizational compliance vignettes. We found that employer-sponsored volunteerism is associated with uncompromised compliance choices in one of the three vignettes. This finding indicates preliminary support for further inquiry into the relationship within the firm between external CSR behaviors and policies regarding organizational compliance. Post hoc analyses suggest that employer-sponsored volunteerism is strongly associated with a positive organizational identity, but organizational identity is not associated with the significant compliance vignette. This evidence suggests that the underlying mechanism that connects external CSR behaviors and internal compliance intentions is complex and requires future study.     

Has the guest arrived yet? Emmanuel Levinas,a stranger in business ethics

To what extent can business ethics be ‘hospitable’ to Levinasian ethics? This paper raises questions about how business ethics relates to its guests, in this case the guest called ‘Levinas’; the idea of introducing or inviting the work of an author into a field, as its guest, is by no means a simple problem of transference. For Jacques Derrida, there is hospitality only when the stranger's introduction to our home is totally unconditional. Such a conceptualisation of hospitality becomes even more demanding when the ‘stranger’ that is near our ‘home’ is an ethics also demanding hospitality, such as the ethics proposed by Levinas. An invitation puts in place particular circumstances that allow only for an arrival of the one invited. These conditions precede the so‐called stranger, thereby predetermining the route to be taken, the destination to be reached and the correct manner of self‐presentation. An invitation already reduces the Other to that which is expected by the inviter, that is to the Same. The hospitality of the field of business ethics becomes an endorsement of a particular version of the stranger, therefore recognisable by the field. Perhaps conceptualising Levinasian ethics as an ethics that cannot be invited might protect it from procedures that reduce the ‘strangeness’ of the stranger, making it knowable. That is the argument presented in this paper.     

Transparenz und Forward Guidance: Stimulierung der Volkswirtschaft in der Eurozone?

The author delivers details on whether and how the effectiveness of the ECB’s policies can be improved through more transparency and “forward guidance”. Is publishing the minutes of Council meetings really a good idea? How should we assess the publication of the details of who has voted (and in what way) in the meetings? Is the ECB plagued by deficiencies in transparency, with an eye on the bank’s steadily growing responsibilities? Should the ECB stick to the instrument of “forward guidance” even beyond the crisis period? How predictable and assessable can and must monetary policy be? Can central banks endowed with too much guidance become a source of volatility? The ECB will adopt banking surveillance in the euro area: do particular transparency and accountability obligations result from this? And if yes, how can they be fulfilled? Finally, the author assesses the limits of the transparency and communication of central banks.     

Models of the relationship of the firm to society

Authors of books on business ethics and corporate social responsibility fall into two general approaches when they answer the question: ‘Why should a business firm, which represents private property, have greater obligations to the local community than an ordinary citizen?’ Authors generally subscribe to a ‘rights’ approach or to a ‘power’ model. This paper will present four rights approaches and three power models which are used to describe the relationship of the firm to society. Introducing these different approaches and models will be two brief expositions which provide the setting for determining the relationship of a firm to society. The first traces two lines to the development of the contemporary American corporation. The second views the business corporation as a quasi-public institution.     

Business ethics,ideology, and the naturalistic fallacy

This paper addresses the relationship between theoretical and applied ethics. It directs philosophical attention toward the concept of ‘ideology’, conceived as a bridge between high-level principles and decision-making practice. How are we to understand this bridge and how can we avoid the naturalistic fallacy while taking ideology seriously? It is then suggested that the challenge posed by ideology in the arena of organizational ethics is in many ways similar to the challenge posed by developmentalist accounts of moral ‘stages’ in the arena of individual ethics, namely, how to account for the normative force of frameworks that are theoretically derivative yet practically essential.     

Should A Public Relations Code of Ethics Be Enforced?

Whether or not a public relations code of ethics should be enforced, among others, has become one of the most widely controversial topics, especially after the Hill and Knowlton case in 1992. I take the position that ethical codes should be enforced and address this issue from eight aspects: (a) Is a code of ethics an absolute prerequisite of professionalism? (b) Should problems of rhetoric per se in a code of ethics become a rationale against code enforcement? (c) Is a code of ethics of any significance? (d) Is the ethical code is enforceable, (e) Would the licensure system interfere with the freedom of expression of the practitioners? (f) Do PR practitioners choose to be ethical (if they do) because they have to be or because they want to be? (g) Would the public interest be virtually assured as a result of a public relations? and (h) Can education in ethics overcome the ethical problems in public relations?     

Singular justice and software piracy

This paper assumes that the purpose of ethics is to open up a space for the possibility of moral conduct in the flow of everyday life. If this is the case then we can legitimately ask: ‘How then do we do ethics?’ To attempt an answer to this important question, the paper presents some suggestions from the work of Emmanuel Levinas and Jacques Derrida. With Levinas, it is argued that ethics happens in the singularity of the face of the Other before me ‘here and now’. Ethics matters in my everyday contact with the Other that disturbs my egological existence and claims my response. But what about all other Others, not here now but nevertheless simultaneously already present? What about their equal claim on me? With Levinas and Derrida, the paper attempts to articulate the notion of singular justice as the simultaneous demand of all others requiring my response. In singular justice, the paper attempts to show how the demands of ethics (the singular) and the demands of justice (all other Others) can become the impossible possibility for a ‘justice where there is no distinction between those close and those far off, but in which there also remains the impossibility of passing by the closest’. Furthermore, the paper attempts to argue that singular justice is our calling – or more precisely my calling – to do the right thing, here and now. Finally, by way of explication, the paper discusses a case of software piracy to try to show how singular justice can help us not to think about ethics, which is important, but to (almost) do it – which is very important.     

Two case study scenarios in banking: a commentary on The Hutton Prize for Professional Ethics, 2004 and 2005

The ‘Hutton Prize for Professional Ethics’ of The Chartered Institute of Bankers in Scotland is awarded annually to the author of an essay that addresses most convincingly the question, ‘what do you now do?’ in response to an ethically sensitive, case‐study scenario. This paper makes available the Scenarios from 2004 and 2005, together with commentary thereon. Scenario 2004 stresses the importance of moral imagination and empathy. It addresses borrowing arrangements for a mother and daughter where illness has created past and continuing problems and there is the possibility that a wealthy relative will be made an unwitting guarantor. Scenario 2005 explores the boundaries inhibiting an opportunity for showing ‘mercy’ by one employee for another. Particular attention is paid to the difficulties that practising this ethical virtue could cause in a professional context, including tracing back to similar ambiguities discernible within foundational texts for Christian ethics.     

Not for turning? Power,institutional ethos and the ethics of irreversibility

Adoption of an ‘ethics of reversibility’ can seem fashionably enlightened, even democratic, but appears less radical when issues of power are opened up. Adopting the motif of keeping, this paper sets its questioning of an on-going individuation of ethics within the context of an insidious reduction of institutional mores to business parlance. Keeping Derrida's ‘philosophy of reversals’ in view, the discussion resists the double bind of attempts to make higher-level decisions ever more ‘irreversible’ on the one hand, while devolving ethical responsibilities for outcomes downwards on the other. In criss-crossing, back and forth, on variations of these themes, the aim of the paper is to contest a division of moral labour in which the more powerful style themselves as ‘not for turning’, while those dispossessed of authority are left to vacillate within the market agendas of flexibility and transparency.