Integrating the Ethical Dimension into the Analytical Framework for the Reform of State-Owned Enterprises in China's Socialist Market Economy: A Proposal

The discussions about the reform of state-owned enterprises are so far dominated by economic and legal considerations while the ethical dimension of this highly complex problem is being barely addressed explicitly, much less developed systematically and integrated into a broader analytical framework for companies in China. This paper is a proposal to introduce this kind of ethical considerations. First, the main features of the reform of state-owned enterprises are briefly summarized and a number of critical issues are identified. Second, the "balanced concept of the firm" is presented and compared with other approaches to corporate ethics in chiefly Western literature (discussions on "corporate social responsibility", the stakeholder approach, and social contract theories). Finally, the relevance of this "balanced concept of the firm" for the reform of state-owned enterprises is briefly discussed.     

A Worldwide Survey of Business Ethics in the 1990s

This unique collection of reports encompasses a wide range of challenges and activities of business ethics in most parts of the world. In the introduction, after a brief explanation of the sixfold questionnaire and its assumptions, I try to highlight a number of striking features contained in these reports, which may help to delineate the state-of-the-art of business ethics at national and regional levels. As a result of this international comparison, the following features deserve particular attention: the relevance of semantics, corruption, leadership, corporate responsibilities, the need for case studies, business ethics as a social institution, and the question as to how important international issues really are.     

Epistemological and ethical considerations in conceptualizing and implementing human resource management

As an example of applied social science, the field of human resource management is used to show that ethical problems are not only those of carrying out research, of professional conduct, and of the distribution fairness of social science knowledge. A largely overlooked ethical issue is also the implicit choices that are made as an integral part of research and implementation. First, an analysis is undertaken of the implicit assumptions, values and goals that derive from the conception of human problems in work organizations as managing human resources. Secondly, it is argued that such a conception is in fact a socially constructed reality with real consequences and not a reflection of objective states of human and social nature with which we have to live. Thirdly, to the extent that our implicit assumptions are in part based upon conceptual choices that are made by individuals or as a collective act of a discipline or work organization, the development of an ethical framework that could guide such choices becomes a crucial challenge for business ethics.H. Peter Dachler currently holds the chair for organizational psychology at the University of St. Gall, Switzerland. He received his graduate training in industrial/organizational psychology at the University of Illinois at Urbana and subsequently taught in the Department of Psychology at the University of Maryland, College Park. He was a fellow for two years at the International Institute of Management in the Science Center, Berlin, and is on the editorial boards of various international and American scientific journals. He has published mainly in the areas of motivation, leadership, organization theory, and the theoretical and practical implications of a constructionist epistemology for employee assessment, participation and leadership. Georges Enderle is a senior lecturer for business ethics at the University of St. Gall, Switzerland. Since 1983 he has been Director of the Institute for Business Ethics. He is the author of Sicherung des Existenzminimums im nationalen und internationalen Kontext — eine wirtschaftsethische Studie [Securing the minimal standard of living in the national and international context: A business ethics perspective]. He has written various articles on business ethics.     

A Balanced Concept of the Firm and the Measurement of Its Long-term Planning and Performance

This paper offers a new concept of the firm that aims at balancing the corporate economic, social, and environmental responsibilities and goes beyond the stakeholder approach. It intends to provide a conceptual and operationalizable basis to fairly assess corporate conduct from both inside and outside the companies. To a large extent these different responsibilities may overlap and reinforce each other. However, if they conflict, they should be clearly evaluated for their own sake and in terms of wealth creation. Only then can a balanced approach be realized. Section 1 briefly discusses some general aspects of the relationship between concepts and measurement. In Section 2, a concept of the firm is developed that is based on the notion of responsibility and balances economic, social and environmental responsibilities. According to these concepts, different ways of measuring corporate planning and performance are examined in Section 3, followed up by a summary and conclusions.     

How Can Business Ethics Strengthen the Social Cohesion of a Society?

The essay aims to show how business ethics—understood as a three-level approach—can strengthen the social cohesion of a society, which is jeopardized today in many ways. In the first part, the purpose of business and the economy is explained as the creation of wealth defined as a combination of private and public wealth that includes natural, economic, human, and social capital. Special emphasis is placed on the implications of the creation of public wealth which requires institutions other than the market and motivations other than self-regarding ones. In the second part, the question of what holds a society together is discussed through different approaches: enlightened self-interest, a new game-theoretical approach, and the concept of the common good advanced by Catholic Social Teaching, followed by my own proposal. The third part presents several perspectives for business ethics to strengthen social cohesion of a society (a) by focusing on the purpose of business and the economy to create natural, economic, human, and social capital; (b) by advancing public goods that stand the test of ethical scrutiny; and (c) by securing human rights conceptualized as public goods.     

Some perspectives of managerial ethical leadership

If managerial leadership means deciding responsibly in a complex situation, the ethical dimension of leadership — besides its analytical and instrumental aspects — has to be clarified. I present and discuss several essential aspects of managerial ethical leadership: (a) some major presuppositions (the concepts of leadership and responsibility), (b) three normative-ethical tasks of the activity of leadership (perceiving, interpreting and creating reality — being responsible for the effect of one's decisions on the human beings concerned — being responsible for the implementation of corporate goals) and (c) some claims on the leader as a subject responsible for his or her own activities. I shall conclude by adding some reflections on the limits of managerial ethical leadership. Georges Enderle is a private tutor for business ethics at the University of St. Gallen, Switzerland. Since 1983 he has been Director of the Institute for Business Ethics. He is the author of Sicherung des Existenzminimums im nationalen und internationallen Kontext — eine wirtschaftsethische Studie,and he has written various articles on business ethics.     

Corporate responsibility for less income inequality

This article explores corporate responsibility for less income inequality within the boundaries of the organization and with regard to society at large. Instead of examining the entire range of income distribution, the focus is on the lower and upper ends. The ‘floor’ is defined as a living wage, supported by strong economic and ethical arguments and proposed as a minimal income standard that can – and thus should – be implemented by companies. As for the ethically acceptable ‘ceiling’ of executive compensation, its identification and justification are more complicated. However, strong economic and ethical arguments can be made in favor of a drastic reduction of executive pay. Corporate responsibility for less income inequality in society means, first, to ‘walk the talk’ and set an example and, second, to being ‘a good corporate citizen’ by supporting legislation for a living wage and an ethically acceptable ceiling of executive pay.     

FOCUS: A Comparison of Business Ethics in North America and Continental Europe

The author of this major study compares the significantly different approaches to business ethics on both sides of the Atlantic and considers what they have to learn from each other. He has considerable experience of business ethics in both Europe and North America, having taught and researched the subject at the University of St Gallen in his native Switzerland before his appointment as Professor of International Business Ethics in the College of Business Administration, University of Notre Dame, Indiana 46556, USA. Professor Enderle was also the founding Honorary Treasurer of the European Business Ethics Network and is an Associate Editor of this Review.