The business of ethics and the ethics of business

This is an essay in personal business ethics of executives as distinguished from the institutional ethics of corporations. Its purpose is to give practical moral guidance to executives for the conduct of their lives both as corporate decision-makers and as human beings. The pivotal concept in this model of personal business ethics is a direct appeal to the self-interest of executives in their being moral. Our thesis is that generally there is a twofold return on investment in ethics (ROIE) for executives. The first one is related to employee output: by becoming a self-actualizing moral type, executives indicate commitment to excellence. Accordingly, they so manage employees that the latter can also live up to their full potential and excell. And that would increase corporate productivity and product or service quality. The second payback of morality is personal: fully developed, self-actualized managers are generally happier people than those whose growth has been arrested. In brief, moral self-actualization is the same as commitment to excellence and there is a payback in being the best. Return on investment in ethics and return on investment in excellence can both be abbreviated as ROIE. We accomplish the purpose and establish the thesis of this essay by seeking answers to the following questions: What business does ethics have in business? What business does business have in ethics? Is there a return on investment in ethics for executives? and Does being moral help executives become more effective managers? In sketching answers to these questions, we first show why executives need a personal business ethics especially in today's world. Then, we sketch the nature of ethics and of business. After these introductory materials, the body of the paper argues for a personal business ethics for executives by correlating elements of management theory with ethics. Specifically, it links a theory of employee motivation with a scale of values, management character types with moral types, and management leadership styles with morality. Then, the practical technique of life by objectives (LBO) is explained. It can help executives manage their lives more effectively in both the business and ethical sense. We conclude by explaining ideals of excellence which can guide executives in their work and development both as managers and as human beings.     

Exploring consumer ethics in Ghana,West Africa

Consumer ethics is a growing area of research that focused almost exclusively on consumers in the United States and, to a lesser degree, Europe and Asia. In this paper, we introduce an African element to the consumer ethics discourse by drawing on survey responses from over 300 Ghanaian consumers to explore their ethical beliefs and judgements. We analysed these data using regression techniques. Our findings show that Ghanaian consumers exhibit lower levels of ethics compared with their America counterparts, especially when the unethical actions facilitate the achievement of their goals. While Ghanaian consumers recognize the value of moral rules, they are prone to suspending their ethical positions as they deem necessary in a particular context. Implications for marketing strategy and future research are discussed.     

The Price of Morality. An Analysis of Personality, Moral Behaviour, and Social Rules in Economic Terms

The focus of the present study was the rationality of moral behaviour and moral conviction. Assumptions like "morality pays" or "good ethics is good business" are not a priori right. Whether morality as personal conviction is also economically rational or not depends in large part on the institutional setting of a society and the likelihood that immoral behaviour will be sanctioned. The systematic approach to morality thus appears to be political economy and the institutional setting: rules and laws. However, the conditions for morality depend not only on the formal structures but also on the informal structures of rules and sanctions. Hence, the systematic approach to morality is most closely linked with the culture of a society; the efficiency of individual morality depends on social conditions. It is costly for individuals and societies to establish and entertain conditions that set clear incentives for moral behaviour. In this context, moral competencies, learning, and education play a crucial role.     

Confucian ethics,moral foundations,and shareholder value perspectives: An exploratory study

A survey study was conducted to look into the effect of Confucian ethics and the psychological foundations of morality on business managers' perspectives on corporate social responsibility (CSR). Using responses from 393 Chinese managers, we first conducted confirmatory factor analysis to assess the reliability and validity of the measurement model and then employed hierarchical regression to explore the relationships among Confucian ethics, moral foundations, and managers' shareholder value perspectives. The results indicate that both Confucian ethics and managers' moral foundations had significant influence on shareholder value perspectives. In fact, moral foundations and Confucian ethics interacted and jointly affected managers' positions on the shareholder value model of corporate responsibility. This study demonstrates the importance of psychological foundations of morality to managers' CSR orientations and substantiates the persistent impact of Confucian ethics/cultural traditions on today' business practices.     

Individual, Social and Organizational Sources of Sharing and Variation in the Ethical Reasoning of Managers

A growth in consumer and media ethical consciousness has resulted in the need for organizations to ensure that members understand, share and project an approved and unified set of ethics. Thus understanding which variables are related to sharing and variation of ethical reasoning and moral intent, and the relative strength of these variables is critical. While past research has examined individual (attitudes, values, etc.), social (peers, significant others, etc.) and organizational (codes of conduct, senior management, etc.) variables, it has focused on their influence on the individual – and not on their role in relation to patterns of group sharing and variation in an organization. Introduced as a new methodology to study ethics, microcultural analysis stipulates that to explain patterns of sharing and variation, one must understand how individual, social and organizational variables influence sharing and variation. Key hypotheses predict that managers who share in individual, social or organizational determinants will be more likely to share in ethical reasoning and moral intent. Qualitative and quantitative research supports the key hypotheses, finding social ties, personal moral intensity, Machiavellianism, locus of control and codes of ethics as significant determinants. Individuals who share in these determinants are more likely to share in ethical reasoning and moral intent. Additionally, regression analysis reveals social ties and personal moral intensity to be the strongest determinants. Based on these results, managerial recommendations focus on a holistic approach, manipulating these three determinants to cultivate a unified code of ethics within an organization.     

Resolving a Moral Conflict Through Discourse

Plato claimed that morality exits to control conflict. Business people increasingly are called upon to resolve moral conflicts between various stakeholders who maintain opposing ethical positions or principles. Attempts to resolve these moral conflicts within business discussions may be exacerbated if disputants have different communicative styles. To better understand the communication process involved in attempts to resolve a moral dilemma, we investigate the "discourse ethics" procedure of Jürgen Habermas. Habermas claims that an individual's level of moral reasoning parallels the type of communication which that individual typically uses in attempts to resolve conflict. Our research focuses upon the relationship between the communicative style used by participants attempting to resolve a particular moral dilemma involving workplace safety and the level of moral reasoning possessed by those participants. The results of our study suggest that, contrary to Habermas' views, participants with "higher" levels of moral reasoning do not use "discursive" communicative tactics more frequently than participants that possessed "lower" moral reasoning.     

Public relations and corporate social responsibility: Some issues arising

The paper questions current assumptions about the benefits of corporate social responsibility and the claims that corporations make on behalf of their corporate social responsibility programmes. In particular, the paper suggests that the use of corporate social responsibility for public relations ends raises moral problems over the motivation of corporations. The paper cautions that the justifications which corporations employ may either be immoral or inaccurate with regard to the empirical evidence gained from a small-scale qualitative study carried out in the UK at a time when the practice of corporate social responsibility was expanding quickly (1989). It is noticeable, in retrospect, that great emphasis is placed upon environmental rather than social responsibility. This implies that organisations are primarily reactive in their development of corporate social responsibility programmes and that they respond to external pressures rather than working out the nature of their corporate responsibilities. It might suggest that corporations only take such actions when they feel compelled to do so by consumerist and environmentalist lobbies. The paper argues that corporations do need to find moral justifications for their moral activities and to ensure that corporate social responsibility practice lives up to the claims made by public relations practitioners. The paper explores the nature of public relations and illustrates how its responsibility for corporate social responsibility extends beyond truthfulness in publicity.Jacquie L'Etang has postgraduate degrees in history, public relations, and social justice. She is a lecturer in public relations at the University of Stirling, Scotland, teaching on the M.Sc. in Public Relations full-time and distance learning courses. She teaches design and editorial management, communications, and business ethics. Her research interests are in corporate social responsibility and the history of public relations.     

Spirituality as a Foundation for Freedom and Creative Imagination in International Business Ethics

Spirituality, in the broad sense, provides a deeper foundation for principles of international business ethics than legalistic, command-based ethics programs. Spiritual-based principles and values are presupposed and endorsed by established legal and ethical principles for international business. Identifying such spiritual-based principles and values requires the exercise of moral imagination and an openness to values embraced by the world's religions. Once identified, a new realm of moral freedom is attained for multinational corporations which may help them move beyond an "ethics for sale" orientation.     

The Effect of Confucian Work Ethics on Learning About Science and Technology Knowledge and Morality

While Chinese societies often appear centralized and traditional, presumably impeding technology and innovation, these values may simply reflect the negative-leaning poles of Confucianism. This study proposes a Confucian work ethic dimension that stresses justified tradition. In combination with Western innovative cultures, this Chinese style might facilitate learning about knowledge and morality in an interaction seemingly unique to the Chinese science and technology sector. Specifically, contrary to the Western style that tolerates conflict to achieve harmony, Confucian work ethics – an Eastern way – prefer to respect hierarchy to attain harmony. Samples from the multinational corporations in Shanghai and privately owned enterprises in Hsinchu of Taiwan represent two levels of Westernization. The findings reveal that the two types of cultures almost equally influence the facilitation of learning about morality, whereas the Western way more effectively teaches about professional knowledge and the Eastern way more effectively teaches general knowledge. In addition, though the samples from both locations enjoy positive advantages from their combined cultures, Shanghai appears more Westernized than Taiwan, and Taiwan benefits more from Confucian work ethics and a higher level of quality learning, particularly with regard to morality. This result may suggest the benefits of Confucius’ ideas, if they are not used excessively to emphasize the negative aspects.     

Business Responses to Climate Change Regulation in Canada and Germany: Lessons for MNCs from Emerging Economies

This article proposes a novel mapping of the complex relationship between business ethics and regulation, by suggesting five distinct ways in which business ethics and regulation may intersect. The framework is applied to a comparative case study of business responses to climate change regulation in Canada and Germany, both signatories to the Kyoto Protocol. Both countries represent distinctly different approaches which yield significant lessons for emerging economies. We also analyze the specific role of large multinational corporations in this process.     

Snapshots of the Future: Darfur,Katrina, and Maple Sugar (Climate Change,the Less Well-Off and Business Ethics)

Climate change represents a significant challenge to the entire planet and its inhabitants. While few, if any, will be able to escape totally the effects of climate change, it will fall most heavily, at least initially, on the poor, regardless of where they reside. We may observe already possible scenarios. The tragic situation in Darfur may be less an ethnic conflict and more a clash between marginal farmers and herdsmen in an increasingly more arid local climate. More powerful storms on the scale of hurricane Katrina, which affected the poor more than other economic groups, may become commonplace. The alteration of the maple sugar cycle may be a harbinger of stress on the world’s flora and fauna that humanity depends upon. Mainstream climatologists have concluded that human behavior, primarily the effects of industrialization, causes human-induced climate change. Left unchecked climate change will have serious consequences for humanity, especially the poor. Business, the primary agent of industrialization, is both the problem and the solution. This paper will apply the ethics of philosophers John Rawls (the difference principle), Robert Nozick (the Lockean Proviso, climate is a natural resource), and Aristotle, along with the work of strategist Michael Porter. Understanding how climate change management fits into a firm’s strategic opportunity will contribute to the ability of business to develop the technologies and business processes necessary to cope with climate change. The paper will conclude with a brief discussion of GE’s Ecomagination program as an example of a promising moral response to climate change.     

Fictitious persons and real responsibilities

I believe that corporations should be held responsible for their actions. Traditional discussions about the moral responsibility of an organization have relied on a model of criminal intent. Demonstrating intent demands that we find a moral agent capable of intending, and this has led to problems. Here I replace the analysis based on criminal law by one based on tort law. Under this framework I suggest that corporations can be held responsible for the harms caused by their activities even if no person or persons in their decision making structure had formed malicious intent, since the sheer fact that the corporate environment encouraged or allowed negligence will be sufficient.Kevin Gibson is an Assistant Professor and associate of the Center for Ethics at Marquette University, Milwaukee. Dr. Gibson's research interests are in applied ethics, including business ethics and the ethics of negotiation. He is presently working on a major study examining unintended moral lapses.     

The Good Manager – A Moral Manager?

In this article two problems with the recently developed "practice or virtue approach" to business ethics are discussed. The first problem concerns an alleged harmony between common demands of morality (generally understood) and the internal goods of actual business practice. The claimed harmony is strong in essence since it holds that the role expectations a good manager has to live up to, do in fact coincide with what morality demands. The second problem is related to the first and concerns the alleged relevance of a virtue perspective for business ethics. According to the virtue perspective discussed in this article, moral reasoning should take actual practice, and only actual practice, as a point of departure. In so doing ethics is claimed to become insulated from e.g. putting irrelevant demands on practitioners. Such demands are understood as based on abstract principles alien to the practice in question. The thesis of this article is that neither of the above mentioned two claims are plausible. This is so basically because one needs to turn elsewhere than to actual business practice in order to detect a morally laden notion of managerial goodness.     

Personal Values as A Catalyst for Corporate Social Entrepreneurship

The literature acknowledges a distinction between immoral, amoral and moral management. This paper makes a case for the employee (at any level) as a moral agent, even though the paper begins by highlighting a body of evidence which suggests that individual moral agency is sacrificed at work and is compromised in deference to other pressures. This leads to a discussion about the notion of discretion and an examination of a separate, contrary body of literature which indicates that some individuals in corporations may use their discretion to behave in a socially entrepreneurial manner. My underlying assumption is that CSR isn’t solely driven by economics and that it may also be championed as a result of a personal morality, inspired by employees’ own socially oriented personal values. A conceptual framework is put forward and it is suggested that individuals may be categorized as Active or Frustrated Corporate Social Entrepreneurs; Conformists or Apathetics, distinguished by their individualistic or collectivist personal values. In a discussion of the nature of values, this paper highlights how values may act as drivers of our behavior and pays particular attention to the values of the entrepreneur, thereby linking the existing debate on moral agency with the field of corporate social responsibility.     

A Social Cognitive Perspective on the Relationships Between Ethics Education, Moral Attentiveness, and PRESOR

This research examines the relationships between education in business ethics, Reynolds’s (J Appl Psychol 93:1027–1041, 2008) “moral attentiveness” construct, or the extent to which individuals chronically perceive and reflect on morality and moral elements in their experiences, and Singhapakdi et al.’s (J Bus Ethics 15:1131–1140, 1996) measure of perceptions of the role of ethics and social responsibility (PRESOR). Education in business ethics was found to be positively associated with the two identified factors of moral attentiveness, “reflective” and “perceptual” moral attentiveness, and with the PRESOR “stakeholder view” factor. Also, reflective moral attentiveness was found to act as a mediator in the relationship between education in business ethics and the PRESOR stakeholder view factor. Evidence of gender and social desirability bias effects was also found. The implications of these relationships and social cognitive theory for improved understanding of the mechanisms by which a variety of variables have their effects on PRESOR in business are discussed.     

Agonism and the Possibilities of Ethics for HRM

This paper provides a critique and re-evaluation of the way that ethics is understood and promoted within mainstream Human Resource Management (HRM) discourse. We argue that the ethics located within this discourse focuses on bolstering the relevance of HRM as a key contributor to organizational strategy, enhancing an organization??s sense of moral legitimacy and augmenting organizational control over employee behaviour and subjectivity. We question this discourse in that it subordinates the ethics of the employment relationship to managerial prerogative. In response, we suggest a different model of the relationship between ethics and HRM??one that finds the possibility of ethics in the contestation and destabilization of HRM. Such ethics arises through resistance to moral normalization and the constraint of freedom and difference. The contribution of our paper is in theorising the possibilities of a relationship between ethics and HRM that does not place HRM at its centre, as chief intermediary of the ethics of the employment relationship, but rather sees HRM as being a powerful player in a set of what Mouffe calls ??agonistic?? socio-ethical relations.     

Trust and Dialogue: Theoretical Approaches to Ethics Auditing

The aim of this paper is to put forward an ethical framework for the conceptualization and development of ethics audits, here understood as a catalyst for company dialogue and in general, for management of ethics in the company. Ethics auditing is understood as the opportunity and agreement to devise a system to inform on ethical corporate behavior. This system essentially aims to increase the transparency and credibility of the companys commitment to ethics. At the same time, the process of elaborating this system allows us to introduce the moral dimension into company actions and decisions, thereby completing a key dimension of the production, maintenance and development of trust capital. To this end, the following four steps are taken. First, we analyze the relation between ethics auditing and trust as a basic moral resource in the dialogue between the company and its various stakeholders. Second, we examine the social balance sheet as a precursor to ethics auditing and focus on what prevents it from going further. Third, we attempt to reconstruct the basic moral assumptions underlying the companys social responsibility from the discourse ethics approach. Finally, we present a methodological framework from which to carry out our proposal, which embraces two basic theoretical perspectives stakeholder theory and the values derived from discourse ethics as a normative framework.     

Reason as a Nexus of Natural Law and Rhetoric

Although the pages of Journal of Business Ethics have hosted an ongoing dialogue on the ethics of rhetoric and persuasion, the debates have been unable to account for the underlying morality of the human propensity to engage in rhetorical discourse as a part of living in society. In this paper, I offer natural-law ethical theory as a moral paradigm in which to examine rhetoric. In this context, I assert that rhetoric services reason, which in turn services our dispositions or inclinations that are one ideological foundation of natural-law theory. As rhetoric affects the apprehension of these dispositions it subsumes a related morality in which rhetorical endeavors can be seen as “natural”. So endowed, I believe that this conception of rhetoric offers a number of philosophical and practical implications, one of which is a new way to assess the morality of commercial manifestations of rhetoric such as spin and the use of puffery in advertising.     

Astroturfing Global Warming: It Isn’t Always Greener on the Other Side of the Fence

Astroturf organizations are fake grassroots organizations usually sponsored by large corporations to support any arguments or claims in their favor, or to challenge and deny those against them. They constitute the corporate version of grassroots social movements. Serious ethical and societal concerns underline this astroturfing practice, especially if corporations are successful in influencing public opinion by undertaking a social movement approach. This study is motivated by this particular issue and examines the effectiveness of astroturf organizations in the global warming context, wherein large corporate polluters have an incentive to set up astroturf organizations to undermine the importance of human activities in climate change. We conduct an experiment to determine whether astroturf organizations have an impact on the level of user certainty about the causes of global warming. Results show that people who used astroturf websites became more uncertain about the causes of global warming and humans’ role in the phenomenon than people who used grassroots websites. Astroturf organizations are hence successful in promoting business interests over environmental protection. In addition to the multiple business ethics issues it raises, astroturfing poses a significant threat to the legitimacy of the grassroots movement.     

Executive Pay and Legitimacy: Changing Discursive Battles Over the Morality of Excessive Manager Compensation

How is the (il)legitimacy of manager compensation constructed in social interaction? This study investigated discursive processes through which heavily contested executive pay schemes of the Finnish energy giant Fortum were constructed as (il)legitimate in public during 2005–2009. The critical discursive analysis of media texts identified five legitimation strategies through which politicians, journalists, and other social actors contested these schemes and, at the same time, constructed subject positions for managers, politicians, and citizens. The comparison of two debate periods surrounding the 2007–2008 financial crisis revealed significant differences in the discursive strategies and the corresponding moral struggles linked to legitimation of executive compensation. The analysis highlights a change in moral reasoning by social actors as they adapt their justifications to a changing social context. This study has important implications for our understanding of the ethical aspects and socio-political embeddedness of manager compensation. In particular, it adds to our knowledge of organizational legitimacy by showing how discursive strategies and the corresponding morality constructions used to (de)legitimate business activities can shift quickly as a result of a change in the social and political climate surrounding the legitimation struggle.