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     

Compliance and the Illusion of Ethical Progress

It has become common for business practitioners and management scholars to distinguish between compliance and ethics. According to the conventional distinction as expressed in Paine’s formulation of Integrity Strategy, compliance is ordinarily a necessary but insufficient condition for ethics. Now that this distinction has been institutionalized in the most significant judicial, legislative, and regulatory developments in American business conduct management since the Enron failure, it is worth asking whether the current emphasis on ethics represents progress. Does it make logical and practical sense to impose ethics as a compliance requirement, or have we come full circle? I argue that assertions of organizational ethical progress, usually involving an increase in the number and or severity of compliance restrictions, do not get the conventional distinction quite right. Moreover, under the consensus distinction, there can be no such thing as organizational ethical progress. However, our ordinary ways of talking about business conduct management often betray logical confusions about the ethics–compliance relationship. While the metaphors we employ – “higher standards,” “raising the bar,” “gray areas,” and “crossing the line,” etc. – perform a worthwhile function as standards for external evaluation of business conduct, they also have a tendency to limit and impoverish our conception of what it is to be ethical. The idea that ethics matters is fundamental to Integrity Strategy’s implicit claim, consistent with conventional wisdom and moral theory, that the objective of responsible conduct cannot be achieved solely by imposing from outside what is required but must also appeal to what is desired.     

A bar too high? On the use of practical wisdom in business ethics

In the business ethics literature, many argue that managerial decision making ought to be improved by more robust ethical concerns. Some see the virtue of “practical wisdom” as the key for improved managerial decision making. However, because of the epistemic limitations confronting decision makers in the face of irreducible market complexity, there is a risk that practical wisdom, employed in the context of day-to-day managerial decision making, becomes an impractical concept. Nevertheless, if the attempt to incorporate virtue ethics (and its related concepts) into business practices is laudable, if indeed a virtuous life is worth pursuing and practical wisdom plays an essential role toward that end, it is important to attempt to salvage practical wisdom and uncover its appropriate usage. Thus, this article pursues two major ends. First, upon surveying some of the prominent and standard usages of the term, it articulates concerns, rooted in epistemic limitations, about the way that practical wisdom appears in business ethics literature. Second, it offers a new way forward for understanding “practical wisdom.” By contextualizing day-to-day, rule-based managerial decision making within the ethical value of the market order, practical wisdom reappears as the higher-order capacity to pursue vocations, as morally worthwhile projects, in business.     

Business ethics searches: A socioeconomic and demographic analysis of U.S. Google Trends in the context of the 2008 financial crisis

A socioeconomic and demographic analysis of U.S. Google Trends for queries about Business Ethics and Greed is proposed in the context of the 2008 financial crisis. The framework is grounded in the ethical decision‐making literature. Two models using micro and macro‐type variables are tested using GLM and GEE regression techniques. The frequency of these Google queries varies positively with the ratio of females, educational attainment, younger adult age, some measures of economic hardship or inequalities, and the lesser the weight of the finance industry represented in each State. The frequency of queries intensifies for these same socioeconomic and demographic categories, in the aftermath of the financial crisis. This article is the first to study the salience of business ethics as an issue in the empirical literature using a nationwide database. It also provides a first empirical study in the specialized literature on “ethics in a time of crisis”. This study lays a preliminary groundwork to identify pro‐ethical reform segments of the population, with practical use for financial regulatory agencies.     

Research on a Typology of Business Ethics Operation Across the Taiwan Strait

The practice of business ethics is a constant concern for both business and academics. Thus this study attempts both to explore the effective performance of business ethics and to provide a learned reference. The researcher has gathered relevant literature, developed a notion of “business ethics operation” which have been put to the test within four selected enterprises across the Taiwan Strait. The findings reveal that different types of “ethical leadership” and “catalytic mechanism” precipitated four operations and a swathe of different approaches to business ethics. The study has, it is hoped, justified academic interest in business ethics by obtaining experimental results which demonstrate the merits of promoting their practice.     

Editorial Adieu: Cultivating Moral Courage in Business

Leaving an editorial chair provides an opportunity for the departing incumbent to deliver a final message to his readers. Seven years after founding Business Ethics. A European Review the editor can offer no better valedictory than to explore the role of moral courage in the ethical conduct of business. Not only does this provide an excellent illustration of the recent recovery of the subject of “virtue” ethics in moral philosophy in general, as well as in the application of morality to business. It also serves to highlight the important difference between ‘business ethics’ as a term applied to the study of right and wrong behaviour in business, and ‘ethical business’, which is business actually conducted on ethical lines. For the difference between behaving rightly and wrongly in any area of human activity, including that of business, is not simply a matter of knowledge, or of finding the “correct” answer. There is a crucial psychological gap between knowing what one ought to do and then actually doing it; as Ovid ruefully observed, we see and approve the better things, yet we follow the worse. This is where courage comes in, for the gap between ethical perception and ethical performance is bridged by moral courage, as the following article suggests. More colloquially, the author is accustomed to conclude his classroom teaching on business ethics by observing that it is one thing to work out, often laboriously and hesitantly, what is the correct line of behaviour to follow; it is quite another thing to have the guts to follow it. An early version of this paper was delivered in Gresham College, London, while a more developed account dates from the First World Congress of the International Society of Business, Economics and Ethics, held in Tokyo in 1996. The following is reprinted from International Business Ethics: Challenges and Approaches , edited by George Enderle earlier this year and published by the University of Notre Dame Press and Hong Kong University Press.     

Ethical decision‐making in Islamic financial institutions in light of Maqasid Al‐Sharia: A conceptual framework

This article develops a conceptual framework for ethical decision‐making in Islamic financial institution based on the Islamic methodological approaches on ethics. While making use of the similarities between the scientific method and the Islamic jurisprudence method, a framework is developed by means of argumentation and reasoning to integrate Sharia doctrines with the “plan, do, check and act” (PDCA) cycle as a managerial tool. Using Al‐Raysuni's analysis of Al‐Shatibi's work on maqasid al‐sharia, this article develops a framework to assess the ethical aspects of Islamic financial operations, which is then applied to hypothetical cases. This approach can help overcome the methodological deficiencies in measuring ethical performance in Islamic finance by focusing on the process of ethical decision‐making that leads to the outcomes of organizational behavior beyond legality of contracts. The framework outlines the conditions under which an activity that is considered legal and permissible contractually could lead to outcomes that can make it ethical or unethical.     

A crisis of leadership: towards an anti-sovereign ethics of organisation

A common reaction to crises experienced within or brought about by business is to identify a corollary ‘crisis of leadership’ and to call for better (stronger, more thoughtful or, indeed, more ethical and responsible) leaders. This paper supports the idea that there is a crisis of leadership – but interprets it quite differently. Specifically, I argue that the most ethically debilitating crisis is the fact that we look to leadership to solve organisational ethical ills. There is, I argue, a pressing need to conceptualise a business ethics that is not constrained by the straitjacket of official hierarchy – a need to denaturalise ‘leadership’ as the normal or rightful locus of ethical regulation and renewal in business organisation. To this end, I explore a Levinasian ethico-politics of responsibility and proximity as the basis of an alternative, anti-sovereign, ethics of organisation.     

A Code of Ethics for Social Marketing? Bridging Procedural Ethics and Ethics-in-Practice

We consider the role of codes of ethics in social marketing, distinguishing between “procedural ethics” and “ethics-in-practice” (after Guillemin & Gillam, 2004). We review foundations for “procedural ethics”—formal systems for ethical oversight—including moral and political philosophy, existing codes of ethics, and previous proposals for codes of ethics for social marketing. We then discuss “ethics-in-practice,” the ethical dimensions of the small moments that comprise everyday life. We connect this idea to Aristotle’s concept of phronesis, the practical wisdom to respond in just the right way to particular situations. Supporting the ethical practice of social marketing will require both procedural ethics and ethics-in-practice, iteratively related to one another. We conclude with three tasks for the profession: (1) develop and apply norms, standards, and sanctions; (2) develop formal, procedural ethics, in a just way (e.g., codes of ethics); and (3) support social marketers to develop ethics-in-practice, or phronesis.     

Is there “no such thing as business ethics”?

What are we to make of the claim that we often hear, that there is no such thing as business ethics? This essay first examines two arguments that might be in people's minds in making such a claim — that business is a “game,” and hence the ordinary constraints of morality do not apply, and that one cannot survive in business if one is too “ethical.” The critique of these arguments begins the process of making clear what business ethics is. The paper then proceeds in a more positive vein to define and explain for the sceptic what business ethics is. Everyone must confront the question, what should I do in my business relationships? Business ethics is defined, then, as the effort to develop Socratically one's answer to this question, that is, through the critical examination of alternatives. In the process of explaining this notion, several other senses in which someone might say that there is no such thing as business ethics are explored and the basic distinction between the moral point of view and ethical egoism is introduced.     

Using the "Ethical Environment" Paradigm to Teach Business Ethics: The Case of the Maquiladoras

The "ethical environment of business" provides a constructive frame of reference for business ethics instruction. As illustrated by a suggested role play about foreign sweatshops, it provides a realistic, problem-solving context for the study of moral and ethical ideas. Once ethical behavior is viewed through this paradigm, students can better see how business policies are shaped by ethics and prepare themselves to react to their own ethical environment.     

Business ethics in China and Iceland—Contrasts and convergence

It is generally accepted that cultural differences affect individuals' approaches to ethics, but how are the effects of culture manifested in perceptions of ethics? Further, how are cultural differences displayed in such ethics-related actions as recommendations for business ethics education? Managers' responses from two starkly different cultures, China and Iceland, reveal, somewhat surprisingly, that one group's top business ethics concerns and business ethics education recommendations are at the bottom of the other group's rankings, and vice-versa, yet each appears reasonable given the cultural background. This shows how nuanced the expression of cultural differences in the realm of ethics can be and how potential practical steps may rely on perceived “top” ethical issues. Together, these findings imply that there is more to explore about the role of culture on ethical reasoning and behavior than researchers have examined to date. We provide suggestions for further research and practical applications.     

Unethical,neurotic, or both? A psychoanalytic account of ethical failures within organizations

This paper aims to integrate insights from psychoanalytic theory into business ethics research on the sources of ethical failures within organizations. We particularly draw from the analysis of sources and outcomes of neurotic processes that are part of human development, as described by the psychoanalyst Karen Horney and more recently by Manfred Kets de Vries; we interpret their insights from a stakeholder theory perspective. Business ethics research seems to have overlooked how “neurotic management styles” could be the antecedents of unethical behavior within organizations. After showing the connection between five managerial neuroses and the corresponding potential ethical failures within organizations that have been already identified within business ethics research, we suggest three organizational strategies to counteract these failures. First, we argue that managers should pay greater attention at the complexity of human motivation, avoiding the simplistic view of compliance‐based approaches. Second, we discuss the importance of developing a conversation around values within organizations, enabling healthy individual growth and limiting the emergence of neurotic processes. Finally, we discuss the role of the business ethicist in facilitating such a process, suggesting a parallel between the role of the business ethicist and that of the psychoanalytic therapist.     

The Ethics Narrative and the Role of the Business School in Moral Development

Media stories of ethical lapses in business are relentless. The general public vacillates between revulsion, impatience, cynicism, and apathy. The role of the Business School in Moral Development is debated by scholars, accrediting agencies, and Schools of Businesses. It is a question to which there is no easy answer and one with which Business Schools continue to grapple. This article places the concept of “moral imagination,” theories of moral development, and ethics in a behavioral context. It then discusses a staple of business education, the case study, as a form of ethics narrative that provides ethical modeling within that context. Finally, in discussing the narrative role of the classroom professor in ethical modeling, it provides a framework for further discussion of the role of business education in moral development.     

Theory of Monetary Intelligence: Money Attitudes—Religious Values,Making Money,Making Ethical Decisions,and Making the Grade

This study explores (1) the effect of a short ethics intervention—a chapter of business ethics in a business course—on perceptions of business courses and personal values toward making money and making ethical decisions and (2) Monetary Intelligence (MI). Since attitudes predict intentions and behaviors, Monetary Intelligence, a form of social intelligence, is defined as the extent to which individuals monitor their own monetary motive, behavior, and cognition; apply the information to evaluate critical concerns and options; select strategies to achieve financial goals; and reach ultimate success and subjective well-being. I theorize that the affective (love of money motive) aspect of MI is unrelated to perceptions of “course work,” yet it is positively related to their “personal values” toward making money, but negatively related to making ethical decisions. Individuals with high MI (low affective love of money motive) have low interests in making money, but high levels of intrinsic religiosity and recall of the Ten Commandments and high interests in making ethical decisions and making the grade (objective academic performance). Based on data from multiple panels and multiple sources, this study provides the following discoveries. Contrary to expectations, there are no differences in students’ perceptions of course work and their personal values toward making money and making ethical decisions between two measures—before and after the ethics intervention. Results of this study not only provide empirical supports for the bright side of theory of Monetary Intelligence (MI, Monetary Quotient, MQ) but also reveal a new paradox—recall of the Ten Commandments (the priming effect) is positively related to making ethical decisions, but negatively related to making money. Results illustrate important theoretical, empirical, and practical implications to the literature of money attitudes, religiosity, intrinsic motivation, and business ethics.     

Is business ethics philosophy or sophism?

The contrast between the philosopher and the sophist is subtle and significant. The significant difference is identified by Socrates when he claims, in the Apology 21d, to be the wisest man in Athens: “Neither of us has any knowledge to boast of, but he thinks that he knows something which he does not know, whereas I am quite conscious of my ignorance.” Nearly two and one half millennia later, business ethics has transported street corner conversation into the meeting room and board room, where ethical leadership is cultivated or stifled. Are these conversations about ethics philosophy, or are they sophism? In this paper, I will evaluate the philosophical soundness of business ethics as it is practiced in business situations. My objective will be to outline the unfulfilled value of philosophical wisdom to ensuring the value of business ethics, and business, to society at large.     

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: Is there a gap between rhetoric and reality?

In light of the continued erosion of business ethics in America, the ongoing question is what are the nation's business schools doing to prepare ethically responsible future leaders of industry and government? This paper reports the findings of a survey mailed to every program accredited by the American Assembly of Collegiate Schools of Business. The curriculum treatment of business ethics is identified at the undergraduate and the graduate levels in public as well as in private colleges and universities. In addition, the paper presents the status (required versus elective), credits, and enrollment patterns associated with institutions offering a special course whose primary focus is the ethical or moral component of business decisions. Depending on one's perspective, the results range from “encouraging” to “disappointing” and suggest that more can and should be done within the curriculum of American post-secondary higher education.     

Determinants of corporate social responsibility and business ethics education in Spanish universities

The current economic crisis, unsustainable growth, and financial scandals invite reflection on the role of universities in professional training, particularly those who have to manage businesses. This study analyzes the main factors that might determine the extent to which Spanish organizational management educators use corporate social responsibility (CSR) or business ethics stand‐alone subjects to equip students with alternative views on business. A web content analysis and non‐parametric mean comparison statistics of the curricula of undergraduate degrees in all universities in Spain were conducted. The main conclusion of this paper is related to the Bologna effect in Spanish universities. Comparing our results with prior research in this matter, it is demonstrated that the main reason that explains the increase of CSR and ethical education in Spain is the Bologna process and its adaptation to the European Higher Education Area. Also, private universities in Spain are more likely to require an ethics course than public universities. Other factors, such as size, political orientation, or related to CSR chairs are not statistically explanatory of CSR and ethical education.     

The Influence of Love of Money and Religiosity on Ethical Decision-Making in Marketing

The impact of “love of money” on different aspects of consumers’ ethical beliefs has been investigated by previous research. In this study we investigate the potential impact of “love of money” on a manager’s ethical decision-making in marketing. Another objective of the current study is to investigate the potential impacts of extrinsic and intrinsic religiosity on ethical marketing decision-making. We also include ethical judgments as an element of ethical decision-making. We found “love of money”, both dimensions of religiosity, and ethical judgment to have significant impacts on ethical intentions in a marketing situation. In addition to providing an important contribution to the business ethics literature, the findings also have important managerial implications.