On Corporate Virtue

This paper considers the question of virtues appropriate to a corporate actor’s moral character. A model of corporate appetites is developed by analogy with animal appetites; and the pursuit of initially virtuous corporate tendencies to an extreme degree is shown to be morally perilous. The author thus refutes a previous argument which suggested that (1) corporate virtues, unlike human virtues, need not be located on an Aristotelian mean between opposite undesirable extremes because (2) corporations do not have appetites; and (3) corporate virtues must serve the end of sustainable profit. If these disanalogies between corporate and human virtue no longer hold, then the stage is set for us to formulate a more adequate model of good corporate character that would encompass other-regarding virtues.     

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.     

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.     

Virtue as a Benchmark for Spirituality in Business

Business people often consider spirituality a means of increasing integrity, motivation and job satisfaction. Yet certain spiritualities are superficial and unstable. Religion gives depth and duration to a spirituality, but may also sew divisiveness. A spirituality's ability to develop good moral habits provides a positive test of the "appropriateness" of that spirituality for business. Many successful business executives demonstrate a spirituality that does develop good moral habits.     

Virtue Theory as a Dynamic Theory of Business

This paper develops a meta-theory of business based on virtue theory which links the concept of virtues, the common good, and the dynamic economy into a unifying and comprehensive theory of business. Traditional theories and models of business have outlived their usefulness as they are unable to adequately explain social reality. Virtue theory shows firms that pursue ethically-driven strategies can realise a greater profit potential than those firms who currently use profit-driven strategies. The theory expounds that the business of business is ethical business and that the crises that business and society face today are crises of leadership and ethics. The issues of leadership and corporate social responsibility are discussed in the context of the proposed theory.     

For-Profit Business as Civic Virtue

According to the commonsense view of civic virtue, the places to exercise civic virtue are largely restricted to politics. In this article, I argue for a more expansive view of civic virtue, and argue that one can exercise civic virtue equally well through working for or running a for-profit business. I argue that this conclusion follows from four relatively uncontroversial premises: (1) the consensus definition of “civic virtue”, (2) the standard, most popular theory of virtuous activity, (3) a conception of the common good widely shared by liberal political philosophers, and (4) the mainstream economic theory of for-profit business.     

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.     

Corporate Social Performance as a Business Strategy

Having the ambition to contribute to the practical value of the theory on corporate social performance (CSP), this paper approaches the question whether CSP can contribute to the competitive advantage of firms. We adopted an explorative case-study methodology to explore the variety of positive and negative effects of CSP on the competitiveness of organizations. As this study aimed at identifying as great variety of these effects as possible, we selected a diversified group of respondents. Data was thus collected through embedded units of analysis in a petrochemical company, and triangulated with the opinions of experts on CSP. Overall, we found various positive and negative effects of CSP on the competitiveness of organizations. CSP is therefore not an innocent adventure for executives, but rather a strategy for achieving corporate objectives. If not carefully implemented, the CSP strategy may harm the competitive advantage of the firm, as our results have suggested.Paper presentated at the EBEN annual conference 2004, Enschede, The Netherlands June 24–26     

Virtue Ethics in Business and the Capabilities Approach

Recently, Amartya Sen and Martha Nussbaum have developed the capabilities approach to provide a model for understanding the effectiveness of programs to help the developing nations. The approach holds that human beings are fundamentally free and have a sense of human dignity. Therefore, institutions need to help people enhance this dignity by providing them with␣the opportunity to develop their capabilities freely. I␣argue that this approach may help support business ethics based on virtue. Since teleology has become problematic, virtue ethics has had difficulty giving itself an ultimate justification. By combining virtue ethics with the capabilities approach, it becomes possible to ground virtue ethics on the basis of the existence of human dignity. This frees virtue ethics of the need for a strict teleology, replacing it with the notion that people must work to develop the capabilities of others although those capabilities are not pointed toward a definite goal. I further suggest that by grounding virtue ethics in capabilities, the actions of a virtuous manager become clearer. Rather than simply charging a manager with serving the public, the manager is charged with serving the stakeholders in a way that develops their capabilities. For example, a manager should not just give their employees what is just but must give them the environment and the encouragement to grow and to find fulfillment in their job.     

Corporate Governance and Business Ethics

"It is this distancing of personal relationships, combined with their replacement by written contractual terms and conditions, which make the discussion of ethics within a corporate institutionalised context highly limited and problematic.' The challenge is to find means of personalising modern corporations so as to encourage ethical behaviour. Atul K. Shah PhD (Econ) ACA gained his doctorate from the London School of Economics and is Lecturer in the Department of Accounting and Financial Management, at the University of Essex, Wivenhoe Park, Colchester CO4 3SQ; e-mail ashah@essex.ac.uk . This article was conceived while he was Visiting Assistant Professor at the College of Business, University of Maryland, USA. The author wishes to thank Dan Ostas, Lee Preston and Stephen Loeb for helpful comments on earlier drafts.     

Business Groups and Corporate Social Responsibility

We present an analysis of over 400 comments about complying with tax obligations extracted from online discussion forums for freelancers. While the topics investigated by much of the literature on taxpayer behaviour are theory driven, we aimed to explore the universe of online discussions about tax in order to extract those topics that are most relevant to taxpayers. The forum discussions were subjected to a qualitative thematic analysis, and we present a model of the ‘universe’ of tax as reflected in taxpayer discussions. The model comprises several main actors (tax laws, tax authority, tax practitioners, and the taxpayer’s social network) and describes the multiple ways in which they relate to taxpayers’ behaviour. We also conduct a more focused analysis to show that the majority of taxpayers seem unconcerned with many of the variables that have been the focus of tax behaviour research (e.g. audits, penalties, etc.), and that most people are motivated to be compliant and are more concerned with how to comply than whether to comply. Moreover, we discuss how these ‘real-world’ tax discussions question common assumptions in the study of tax behaviour and how they inform our understanding of business ethics more generally.     

East Meets West: Toward a Universal Ethic of Virtue for Global Business

Rudyard Kipling famously penned, “East is East, West is West, and never the twain shall meet.” His poetic line suggests that Eastern and Western cultures are irreconcilably different and that their members engage in fundamentally incommensurable ethical practices. This paper argues that differing cultures do not necessarily operate by incommensurable moral principles. On the contrary, if we adopt a virtue ethics perspective, we discover that East and West are always meeting because their virtues share a natural basis and structure. This article sketches the rudiments of what a universal virtue ethic might look like. Such an ethic is especially relevant and valuable in this era of global business.     

Business Ethics: A Compromise Between Politics and Virtue

This article examines and synthesizes two different approaches to determining the content of business ethics courses and the manner in which they ought to be taught. The first approach, from a political perspective, argues that the institutional framework within which business operates ought to be tested by theories of distributive justice. The second approach, from the perspective of virtue theory, argues that we ought to examine the character of individual employees and the responsibilities associated with the roles which these individuals play within organizations. I argue that Gadamer's interpretation of Aristotle's notion of phronesis shows an inseparable, bidirectional, conceptual link between the approaches of politics and virtue as well as providing insight into how business ethics might best be taught.     

Vice and Virtue in Everyday (Business) Life

This paper describes how a family of ethical concepts can be taught through focusing on how values play out at the most basic level – in the sphere of everyday business interactions. If our goal is to create an "ethical business culture," it makes sense to attend to our treatment of one another in the simplest, and most frequently occurring of duties. The paper examines the kinds of daily interactions common to many business settings – attending meetings, sharing information, taking phone calls, utilizing common resources – and demonstrates how these practices set up encounters in which lived moral values can make a difference in the quality of life, morale, and company productivity.     

Corporate Ethics in Norwegian Business and Industry

How can a confederation of business and industry influence companies and make them more aware of ethical issues? This article examines the work of Norwegian Business and Industry (NHO), and the results it has achieved. The author is Assistant Director of NHO, P.b. 5250, Majorstua, 0303 Oslo, and she has been responsible for its business ethics programme for the past three years. This article comes to us through the agency of our Associate Editor for Norway, Dr Heidi von Weltzien Høivik, of the Norwegian School of Management, who has recently been instrumental in founding a Norwegian Centre for Business Ethics.     

C. Edward Weber,Stories of Virtue in Business

Teaching Business Ethics -     

Small Business Champions for Corporate Social Responsibility

While Corporate Social Responsibility (CSR) has traditionally been the domain of the corporate sector, recognition of the growing significance of the Small and Medium Sized Enterprise (SME) sector has led to an emphasis on their social and environmental impact, illustrated by an increasing number of initiatives aimed at engaging SMEs in the CSR agenda. CSR has been well researched in large companies, but SMEs have received less attention in this area. This paper presents the findings from a U.K. wide study of socially responsible SMEs. The 24 companies studied were chosen as “exemplars” of␣CSR in SMEs. The aim of this study therefore is to progress understanding of both the limitations on and opportunities for CSR in SMEs through the exploration of exemplary characteristics in the study companies. Key areas of investigation were CSR terminology, the influence of managerial values, the nature of SME CSR activities, motivation for and benefits from engaging in CSR, and the challenges faced. The results of this study demonstrate some of the exemplary goals and principles needed to achieve social responsibility in SMEs, and begin to provide knowledge that could be used to engender learning in other SMEs. In particular, there is evidence that stakeholder theory may provide a framework in which SMEs and CSR can be understood. SMEs prefer to learn through networking and from their peers, so this is a possible avenue for greater SME engagement in CSR. This would require strong leadership or “championing” from individuals such as highly motivated owner–managers and from exemplary companies as a whole.Heledd Jenkins is a Research Associate at The ESRC Centre for Business Relationships, Accountability, Sustainability and Society based at Cardiff University. She holds a degree in Geography from the University of Wales, Aberystwyth, and a Masters degree in Sustainability, Planning and Environmental Policy from Cardiff University. Heledd's research areas of interest include Corporate Social Responsibility, Small to Medium sized Enterprises, Stakeholders, the mining industry, business ethics, and social entrepreneurship.     

Shadow of Virtue: On a Painful if not Principled Compromise Inherent in Business Ethics

From a certain philosophical perspective, one that is at least as old as Plato but which is addressed also by Aristotle and Kant, business ethics – to the extent that it is marketed as form of enlightened self-interest – constitutes a Thrasymachean compromise: to argue that it is to our advantage to conduct business ethically, perhaps even advantageous to the bottom-line, comes curiously close to endorsing what Plato called the ‹shadow of virtue’ – i.e., of becoming temperate for the sake of ill-temperance. And yet it also seems true that moralistic campaigns to achieve the impossible, e.g., pursuing justice for its own sake or eradicating egoism, often “detract from attaining really important things.” This essay explores the need, in business ethics as well as elsewhere, to make – what Dewey and Niebuhr considered to be – painful if not principled philosophical compromises in order to secure is a society in which there would be “enough justice to avoid complete disaster.”