Ethics Problems and Problems with Ethics: Toward a Pro-Management Theory

The move towards having more teaching of business ethics comes in part from a tendency to view managers negatively, drawing on anti-management theories that are presently popular in business schools. This can lead to a misdiagnosis of the causes of contemporary business problems. Teaching business ethics can, however, be ineffectual and counter-productive. Education in ethical philosophy can lead managers to be indecisive, sceptical or to rationalize poor conduct. The ethics of academics become salient and lapses in them undercut their claims to authority. The philosophical viewpoint that stresses free choice runs contrary to the social science mission to reveal the causes that determine human behaviour and provide solutions to problems. Pro-management theory offers a more positive appreciation of managers, with its three components of structural functionalism, strategic functionalism and stewardship. Lex Donaldson is Professor of Management in Organizational Design in the Faculty of Business of the University of New South Wales, Sydney, Australia. He has a PhD from the University of London. He is the author of seven books on organizational theory, organizational structure and management. In addition, he has written numerous articles and chapters. His articles have appeared in journals such as Academy of Management Journal, Academy of Management Learning and Education, Academy of Management Review, Administrative Science Quarterly, Journal of Management Studies, Organizational Dynamics, Organization Science and Organization Studies.     

Toward a Model of Cross-Cultural Business Ethics: The Impact of Individualism and Collectivism on the Ethical Decision-Making Process

In this paper, we explore the impact of individualism and collectivism on three basic aspects of ethical decision making – the perception of moral problems, moral reasoning, and behavior. We argue that the inclusion of business practices within the moral domain by the individual depends partly upon individualism and collectivism. We also propose a pluralistic approach to post-conventional moral judgment that includes developmental paths appropriate for individualist and collectivist cultures. Finally, we argue that the link between moral judgment and behavior is related to individualism and collectivism.

Business Ethics: A Helpful Hybrid in Search of Integrity

What sort of connection is there between business ethics and philosophy? The answer given here: a weak one, but it may be getting stronger. Comparatively few business ethics articles are structurally dependent on mainstream academic philosophy or on such sub-specialities thereof as normative ethics, moral theory, and social and political philosophy. Examining articles recently published in the Journal of Business Ethics that declare some dependence, the author finds that such declarations often constitute only a pro forma gesture which could be omitted without detriment to the paper's content and conclusions. He also finds, however, that some authors do draw on solid philosophical work in ways that are establishing ever more meaningful interconnections between business ethics and academic philosophy. These cross-disciplinary studies, he concludes, are ground-breaking and invite creative imitation.     

Does Milton Friedman Support a Vigorous Business Ethics?

This paper explores the level of obligation called for by Milton Friedman’s classic essay “The Social Responsibility of Business is to Increase Profits.” Several scholars have argued that Friedman asserts that businesses have no or minimal social duties beyond compliance with the law. This paper argues that this reading of Friedman does not give adequate weight to some claims that he makes and to their logical extensions. Throughout his article, Friedman emphasizes the values of freedom, respect for law, and duty. The principle that a business professional should not infringe upon the liberty of other members of society can be used by business ethicists to ground a vigorous line of ethical analysis. Any practice, which has a negative externality that requires another party to take a significant loss without consent or compensation, can be seen as unethical. With Friedman’s framework, we can see how ethics can be seen as arising from the nature of business practice itself. Business involves an ethics in which we consider, work with, and respect strangers who are outside of traditional in-groups.     

A Cross-Cultural Application of a Theoretical Model of Business Ethics: Bridging the Gap between Theory and Data

Hunt and Vitell's General Theory (1992) is used in a cross-cultural comparison of U.S. and Taiwanese business practitioners. Results indicate that Taiwanese practitioners exhibit lower perceptions of an ethical issue in a scenario based on bribery, as well as milder deontological evaluations and ethical judgments relative to their U.S. counterparts. In addition, Taiwan respondents showed higher likelihood of making the payment. Several of the paths between variables in the theory are confirmed in both U.S. and Taiwan samples, with summary data suggesting the Hunt and Vitell theory performs well in both U.S. and Taiwan. Some unanticipated linkages within the model were uncovered in the samples. Results and implications are discussed.