Morality, Ethics, and Values Outside and Inside Organizations: An Example of the Discourse on Climate Change

The public debate on climate change is filled with moral claims. However, scientific knowledge about the role that morality, ethics, and values play in this issue is still scarce. Starting from this research gap, we focus on corporations as central decision makers in modern society and analyze how they respond to societal demands to take responsibility for climate change. While relevant literature on business ethics and climate change either places a high premium on morality or presents a strong skeptical bias, our sociological model depicts morality as an indeterminate force: it can lead to both workable solutions or merely reinforce the status quo, depending on what different corporations make of it. We describe, on the one side, the diffusion of moral values in the media discourse on climate change and, on the other side, the specific responses of corporations. While the media discourse generates a pressure on corporations to act responsibly, their moral claims do not provide clear advice for action. As a result, morality becomes available to organizations as a medium that can be re-specified according to their internal dynamics. Corporations transform moral values into something compatible with their own structures through a variety of different responses: introducing formal ethical structures (e.g., codes of conduct), initiating value-oriented projects, or developing informal moral norms, and so on. In some occurrences, morality becomes a mere façade, while in others it serves as a decision-making criterion and deeply influences core activities in firms.     

An Empirical Investigation into the Role of Personal-Related Factors on Corporate Travel Policy Compliance

This article presents the results of the empirical testing of the corporate travel policy compliance model conceptualised by the authors and first published in the Journal of Business Ethics in 2009. In the previous article, the theory underlying the model was explained. This article follows with the results of the empirical testing of the model and focusses on those related to the influence of personal factors on policy compliance. The constructs used to define personal-related factors include personal ethics, individual morality, self-interest, levels of job- and life satisfaction and the conditions of travel. The empirical investigation sought to determine if personal-related factors significantly influenced travel policy compliance and from the study it could be concluded that there is a correlation, with certain factors exhibiting a stronger correlation than others. The implication is that organisations need to understand the impact of factors previously ignored or under-valued as determinants of non-compliance and take steps to recognise and remedy the situation to achieve higher levels of travel policy compliance amongst corporate travellers.     

Moral Compliance and the Concealed Charm of Prudence

The key to moral behavior is often perceived to consist of ignoring rational self-interest and instead following norms recommended by religious tradition and moral philosophy. A central issue is the connection between these ambitions and actual behavior. Are an idealistic mood and an ethics of ambition the way out of an iron cage of individualistic rational behavior? Or is ethics best served by rules and incitements in harmony with rationality? The article discusses morality from the perspective of compliance. A normative suggestion in the Prisoner’s Dilemma exemplifies the case of prudent morality. The player should contribute if the expected value of that choice exceeds his payoff of mutual defection. The article questions the value of an absolute morality and suggests a morality that is more of a prudent policy than a categorical imperative. A conviction favoring a good average result in the long run is the most relevant argument for complying with a rule. The structure of economic games can give useful insights about problematic situations and consequences of different strategies. Being prudent rather than doing good might be a better policy not only for the agent, but also for organizations and society.     

Corporate Governance, Internal Decision Making, and the Invisible Hand

Proponents of the dominant contemporary model of corporate governance maintain that the shareholder is the primary constituent of the firm. The responsibility for managerial decision makers in this governance system is to maximize shareholder wealth. Neoclassical economists ethically justify this objective with their interpretation of Adam Smith's notion of the Invisible Hand. Using a famous quotation from The Wealth of Nations, they interpret the Invisible Hand as Smith's (An Inquiry into the Nature and Causes of the Wealth of Nations, Methuen &; Co., London) assertion that market participants, in pursuing their own self-interests without regard to the interests of others, will collectively provide the optimal economic benefit to society. We argue that the traditional interpretation of Smith is too narrow and potentially harmful to society. In order to fully understand Smith's notion of the influence of the Invisible Hand on human behavior, one must also consider The Theory of Moral Sentiments. In that work, Smith (The Theory of Moral Sentiments, A. Millar, London) portrays the pursuit of self-interest as only one of several potential motivations for human action. He also acknowledged the existence of a “sympathy principle,” which refers to the ability and propensity of human beings to consider the interests of others. Heilbroner (The Essential Adam Smith, W.W. Norton, New York, p. 59) suggests that Smith's sympathy principle allows one to “determine the appropriate degree of self-interest, the proper display of benevolence, the desirable strictness of justice.” In fact, Smith indicates that (1) a society whose members pursue self-interest without a sense of justice will eventually collapse; (2) a society whose members pursue self-interest checked by their sense of justice alone will survive; (3) a society whose members pursue self-interest, justice, and the interests of others will flourish. Since a more complete reading of Smith indicates that human beings, in considering their own interests, also reflexively consider the interests of others when making decisions, then the traditional corporate governance model appears to be lacking. A broader, multiple stakeholder approach to corporate governance that considers the interests of other constituencies may be more consistent with Smith's views. In particular, Smith's sympathy principle provides a theoretical foundation for a shift away from the narrow, yet dominant, shareholder-based corporate governance model and toward multiple stakeholder models of corporate governance [e.g., Business and Society: A Strategic Approach to Corporate Citizenship, Houghton Mifflin, Boston, MA] and internal decision-making [e.g., Sloan Management Review 38, (1997) 25–37].     

The Doctrine of Double Effect and the Question of Constraints on Business Decisions

How does the doctrine of double effect apply to business decisions to sell products which may be harmful to consumers? Lawrence Masek believes that some authors have misapplied the doctrine to this type of decision and, as a consequence, have committed themselves to placing unwarranted constraints on businesses. Seeking to correct this mistake, Masek presents his account of how the doctrine applies here, an account which is rather permissive but which, he claims, nevertheless preserves the virtues of the doctrine. It will be seen, though, that his attempt to loosen these putatively unnecessary constraints by appealing to consumer autonomy and an intuition about the morality of producing harmful products leaves the doctrine of double effect irrelevant to this type of decision. His argument that the doctrine is less restrictive in this context than others suppose leads ultimately to the conclusion that the doctrine does not constrain this kind of business decision at all.     

Ethical Guidelines for Marketing Practice: A Reply to Gaski & Some Observations on the Role of Normative Marketing Ethics

Gaski (1999) is critical of marketing ethics and suggests that its ethical guidelines amount to no more than "obey the law" and "act in your self-interest". This reply questions Gaski's critique and clarifies possible misconceptions about the field that might otherwise result. It identifies the limitations and assumptions of Gaski's argument and shows that there are exceptions to his central proposition even when narrowly circumscribed. It is not disputed that there is merit to reminding managers of their obligations to obey the law and to act in their enlightened self-interest. However, although fulfilling these obligations is generally a necessary requirement for good conduct, it is not sufficient. There are situations where ethics demands more of marketing managers than "obey the law" and "act in your self-interest". In addition, managers may face situations where ethics, the law and self-interest are inconsistent. The article incorporates observations on the role of normative marketing ethics, including the requirement to develop ethical theory for marketing as well as ethical guidelines.     

Role Morality in the Accounting Profession – How do we Compare to Physicians and Attorneys?

Role morality can be defined as “claim(ing) a moral permission to harm others in ways that, if not for the role, would be wrong” (A. Applbaum: 1999, Ethics for Adversaries: The Morality of Roles in Public and Professional Life (Princeton University Press, Princeton, NJ) p. 3). Adversarial situations resulting in role morality occur most frequently in the fields of law, business, and government. Within the realm of accounting, professional obligations may place the accountant in a situation where he/she is susceptible to the pressures of role morality. If the accountant engages in acts consistent with role morality, significant harm to others may result. The current study represents an initial investigation into role morality in accounting and includes survey data from three samples of professionals: accountants, physicians, and attorneys. Results suggest that accountants generally do not agree that role morality is acceptable. Additionally, when compared to the groups of physicians and attorneys, physicians agree the least with role morality, while attorneys agree the most. Implications for practicing accountants and suggestions for future research into the theory of role morality are offered. Robin R. Radtke is currently an Assistant Professor at Florida Atlantic University. Dr. Radtke earned her Ph.D., at the University of Florida and has previously taught at the University of Houston, the University of Texas San Antonio, and Texas Tech University. Dr. Radtke’s main research interests are in the ever growing field of accounting ethics and she has been an editorial board member of Research on Professional Responsibility and Ethics in Accounting (formerly Research on Accounting Ethics) since 1995. She has published in various journals including Issues in Accounting Education, Behavioral Research in Accounting, Accounting Horizons, Research on Professional Responsibility and Ethics in Accounting, and others.     

Ethical Dilemmas in Performance Measurement

In this article we discuss the ethical dilemmas facing performance evaluators and the "evaluatees" whose performances are measured in a business context. The concepts of role morality and common morality are used to develop a framework of behaviors that are normally seen as the moral responsibilities of these actors. This framework is used to analyze, based on four empirical situations, why the implementation of a performance measurement system has not been as effective as expected. It was concluded that, in these four cases, unethical behavior (i.e. deviations from the ethical behaviors identified in the framework) provided, at least to some extent, an explanation for the lower than expected effectiveness of the performance measurement procedures. At the end of the paper we present an agenda for further research through which the framework could be further developed and systematically applied to a broader set of cases.     

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.     

Cultural Values,Economic Growth and Development

This empirical study investigates the effects of nine ethical climate types (self-interest, company profit, efficiency, friendship, team interest, social responsibility, personal morality, company rules and procedures, and lastly laws and professional codes) on employee work satisfaction. The ethical climate typology developed by Victor and Cullen (in W. C. Frederick (ed.) Research in Corporate Social Performance and Policy, 1987; Administrative Science Quarterly 33, 101–125, 1988) is tested on a sample of staff and managers from 62 different telecommunication firms in Turkey. The results obtained from the 1174 usable questionnaires confirm the existence of nine different ethical climate types observed in western cultures in the present sample context, which is a developing Muslim country. Regarding the effects of ethical climatic factors on employee work satisfaction, self-interest climate type appears to negatively influence work satisfaction, whereas team interest, social responsibility and law and professional codes climate types are found to have positive impacts. Managerial and further research implications of the findings are discussed.     

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.     

Towards a More ‘Ethically Correct’ Governance for Economic Sustainability

In this paper, we propose that economic sustainability is seen in terms of (inter-temporal and inter-national) value creation. We claim that value appropriation (or capture), can become a constraint to economic sustainability. We propose that for sustainable value creation to be fostered, corporate governance needs to be aligned to public and supra-national governance. In order to achieve this, a hierarchically layered set of ‘agencies’, needs to be diagnosed and the issue of incentive alignment addressed. Enlightened self-interest, pluralism and diversity, as well as a representative supra-national organisation for world-wide economic sustainability can serve as a new, more ‘ethically correct’ governance for economic sustainability, but not a panacea.     

Self Interest Among CPAs May Influence Their Moral Reasoning

In 1990, the Federal Trade Commission (FTC) issued a consent order to the American Institute of Certified Public Accountants (AICPA). The order decreed the AICPA to lessen its longstanding ethics code which had until then banned the receipts of commissions, referral fees and contingent fees. The FTC alleged that the AICPA banned receipt of the fees as an attempt to restrain trade (FTC, 1990).In the present study, we sought to determine if CPAs' preference for bans on commissions, referral fees and contingent fees is related to their moral reasoning whereby CPAs perceive the bans to serve as a means of resolving ethical issues. While determining this matter cannot prove whether the bans did or did not actually result in restrained trade, it can offer insight into the perceived ethical importance to CPAs of the overturned rules. Based on a random sample of AICPA members and using Rest's Defining Issues Test (DIT) to measure moral reasoning, we did not find a CPA's moral reasoning to be related to his/her preference for ethics rules which ban commissions, referral fees or contingent fees. However, our results did indicate that most CPAs prefer banning commissions, referral fees and contingent fees, with those CPAs holding a higher financial stake in public accounting, namely partners, favoring banning referral fees and contingent fees significantly less than CPAs with a lesser stake. Further, we noted a significant negative relationship between financial stake and moral reasoning. These results seem to suggest that self-interest among CPAs may influence their moral reasoning.Further study is needed to examine the relationship between self-interest of CPAs and their moral reasoning. If self-interest clouds moral judgments made by CPAs, capital markets are in danger. Rendering an independent audit opinion must exclude self-interest.     

Functionalist and Conflict Views of AICPA Code of Conduct: Public Interest vs. Self Interest

The sociological models of functionalism and conflict are introduced and utilized to analyze professionalism in the accounting profession as it is manifest in the American Institute of Certified Public Accountant's Code of Conduct. Rule 203 of the Code and provisions of the Code related to the public interest are examined using semiotic analysis to determine if they are most consistent with the functionalist or conflict models. While the analysis does not address intent of the Code, it is determined that the Code contains semantic defects which result in different interpretations of the Code to different readers. The defects found are most consistent with the conflict model of professionalism. This has implications for the public and for individuals within the profession, making the Code less useful to both groups. The defects are seen as a potential battleground for the self-interest vs the public interest orientation of the accounting profession.     

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.     

Self-Ratings and Expectations of the U.S. President, Ideal Physicians, and Ideal Automechanic

Relationships between self-ratings and expectations of an ideal U.S. president, were studied in 43 men drawn from a university setting in the eastern coast of the U.S.A. The men first rated themselves on personality variables, life choices (agentic and communal), peacefulness, spirituality, and morality. Then they were presented with a vignette requesting that they describe an ideal U.S. president on inventories measuring personality variables, life choices, peacefulness, spirituality, and morality. For the rating of the ideal U.S. president, they also were asked to respond to a 20 item questionnaire that was a composite of several factors on organization and leadership, morality, spirituality, and peacefulness. The respondents belonged to one of seven different political persuasions, similar in some ways to different cultures. Self-ratings of the men and expectations of the president were highly correlated for extraversion, openness, trait morality, agentic and communal life choices. However, no significant correlations were found between the self-ratings and expectations of the president for neuroticism, agreeableness, conscientiousness, peacefulness, nor state morality. The men were also presented with vignettes for the ideal physician and ideal automechanic and asked to rate each of them on the inventory items. Overall, the U.S. President was rated as more neurotic and immoral in terms of ingrained ideas of right and wrong, but also as more caring for others, transcendent, seeking goodness and truth, forgiving, cooperative, and most concerned with matters of justice and mercy, and more concerned with both agentic (power-seeking) and communal (community-minded) life choices than were either the ideal physician or ideal automechanic. The ideal physician was rated as highest in extra-version, openness, agreeableness, conscientiousness, and overall peacefulness, and lowest in neuroticism. The ideal automechanic was rated as highest in state or situational immorality, and lowest in both agentic (power-seeking, business-mindedness) and communal (community-mindedness) life choices, and also lowest in caring for others well-being, transcendence, seeking goodness and truth, forgiveness and cooperation, being concerned with justice and mercy, overall expectations, overall spirituality, and overall organization and leadership. In general, the self-ratings were significantly related to ratings/expectations, of the U.S. President, ideal physician, and ideal automechanic. The men seemed to identify more with the automechanic than with the present or physician.     

The "Invisible Hand"

The argument of the "Invisible Hand" is that the system of free enterprise benefits society in general even though it is not the aim of any particular economic agent to do that. This article proposes an analysis of why this is so. The key is that the morality of the market forbids only force and fraud; it does not require people to do good to others. Nevertheless, when all transactions are voluntary to both parties, that is exactly what we can expect to happen. This is both because the sum of the benefits of innumerable transactions, which are beneficial to both parties, is very great, but also and especially because of Positive Externalities. People use the particular products and services they get in market exchanges in ways that benefit others in ways not at all foreseen by the agents to those transactions at the time. These externalities range from the benefits of invention and ingenuity to the exercise of charity and philanthropy, all of which flourish in developed capitalist societies.     

Immediacy: A Remark on the Vitalism of Aesthetic Organising

Mostly aesthetics are treated as a quality among others, characterising an object whether it is seen as an essential object-feature or a dimension in the observation and construction of "the object". In this article, we elaborate on a more radical conceptualisation, where aesthetics are seen as desire and force, as an essential feature of expressivity, and as the actual it is born in the motion between language and visibility, between speaking and seeing, but as the substantive, it is always already dissolved by the absolute horizon, that which never actualises, always outside the general, abstract and inaccurate conceptualisation of difference, as difference between the actual and the possible, withhold in the inescapable remnants of virtualitity, its own deferment, as always becoming-other . In this sense, it is an aesthetic which comes into being though the voices of Maurice Blanchot and Gilles Deleuze.     

After Durkheim: An Agenda for the Scoiology of Business Ethics

Over the last twenty years the organization of business activity appears to have shifted from an emphasis on bureaucratic organizations toward an emphasis on market structures. Economic self-interest has acquired a new social legitimacy, and the force of traditional moral authorities has waned. In these circumstances the work of Emile Durkheim on the problematics of business ethics and the impact of a culture of self-interest on the stability of society, work that has hitherto been neglected by the business ethics community, acquires a new relevance. In this paper we review Durkheim's problematization of business ethics, establish its relevance for the contemporary world, and use it to develop an empirical research agenda for the contemporary sociology of business ethics.     

Erratum to: Exploring Factors Affecting Digital Piracy Using the Norm Activation and UTAUT Models: The Role of National Culture

The model emphasizes the ethical dynamics of compassion in hospitality settings by suggesting that under an organizational ethical climate, the hotel staff will be more morally aware of peers’ pain and suffering, and motivated to participate in delivering compassion. Based on the positive psychology focus on compassion as individual states and traits supporting interpersonal dealings, the paper operationalizes compassion based on four individual factors involved in the compassionate process: (a) empathic concern, or an other-oriented emotional response elicited by and congruent with the perceived welfare of a person in need; (b) mindfulness, a state of consciousness in which attention is focused on present-moment phenomena occurring both externally and internally; (c) kindness, or understanding the pain or suffering of others; and (d) common humanity, or seeing others’ experiences as part of the larger human experience. Data were collected from 280 employees at ten hotels in the Canary Islands (Spain). With the exception of self-interest, results of multiple linear regressions demonstrate that each of the six interpreted factors of ethical climate has substantive effects on any of the studied elements of staff compassion. The egoistic-related and principle-related climate factors generated a more consistent and intense compassionate reaction, suggesting that the staff is moved to act out of compassion either to assure that the team succeeds or to support each other out of moral obligation.