This article reports the results of a study of attitudes of future business executives towards issues of social responsibility and business ethics. The 455 respondents, who were MBA students during 1985 at one dozen schools from various regions in the United States, were asked to respond to a series of open-ended and closed-ended questions. From the responses to the questions the authors were able to conclude that future executives display considerable sensitivity, though to varying degrees, towards ethical issues in business. (...) Women, in particular, tend to evince strong feelings regarding such issues. (shrink)

ABSTRACT:Many scholars and managers endorse the idea that the primary purpose of the firm is to make money for its owners. This shareholder wealth maximization objective is justified on the grounds that it maximizes social welfare. In this article, the first of a two-part set, we argue that, although this shareholder primacy model may have been appropriate in an earlier era, it no longer is, given our current state of economic and social affairs. To make our case, we employ a (...) utilitarian moral standard and examine the apparent logical sequence behind the link between shareholder wealth maximization and social welfare. Upon close empirical and conceptual scrutiny, we find that utilitarian criteria do not support the shareholder model; that is, shareholder wealth maximization is only weakly linked to social welfare maximization. In view of the dubious validity of this sequential argument, we outline some of the features of a superior corporate objective—a variant of normative stakeholder theory. In the second article, we will advance and defend our preferred alternative and then discuss some institutional arrangements under which it could be implemented. (shrink)

ABSTRACT:Employing utilitarian criteria, Jones and Felps, in “Shareholder Wealth Maximization and Social Welfare: A Utilitarian Critique” (Business Ethics Quarterly23[2]: 207–38), examined the sequential logic leading from shareholder wealth maximization to maximal social welfare and uncovered several serious empirical and conceptual shortcomings. After rendering shareholder wealth maximization seriously compromised as an objective for corporate operations, they provided a set of criteria regarding what a replacement corporate objective would look like, but do not offer a specific alternative. In this article, we draw (...) on neo-utilitarian thought to advance a refined version of normative stakeholder theory that we believe addresses a major remaining criticism of extant versions, their lack of specificity. More particularly, we provide a single-valued objective function for the corporation—stakeholder happiness enhancement—that would allow managers to make principled choices between/among policy options when stakeholder interests conflict. (shrink)

This paper presents the results of a study of the effect of a business ethics course in enhancing the ability of students to recognize ethical issues. The findings show that compared to students who do not complete such a course, students enrolled in a business ethics course experience substantial improvement in that ability.

Abstract:To date, our understanding of ethical decision making and behavior in organizations has been concentrated in the area of moral judgment, largely because of the hundreds of studies done involving cognitive moral development. This paper addresses the problem of our relative lack of understanding in other areas of human morality by applying a recently developed construct—moral approbation—to illuminate the link between moral judgment and moral action. This recent work is extended here by exploring the effect that organizations have on ethical (...) behavior in terms of the moral approbation construct. (shrink)

Although previous ethical analyses of management buyouts have presented useful insights, they have been flawed in three major ways. First, they define the transaction too narrowly, emphasizing the going private aspect and ignoring the leveraged aspect. Leveraging alters the nature of the transaction substantially and warrants additional ethical analysis. Second, these previous analyses ignore the impact of buyouts on non-stockholder constituents of the firm, an omission which renders their implicit utilitarian approach incomplete. Third, these analyses do not include Rawlsian, libertarian, (...) or Kantian perspectives on ethics. This paper addresses these shortcomings and finds the ethical status of leveraged management buyouts to be highly suspect. (shrink)

In recent years, two topics have made prominent debuts in the management literature—“virtual” corporations and trust within and among organizations. These two themes are related in that trust is important to the success of the virtual corporation. This article argues that confidence in the development of virtual corporations may be premature because of what we call the Virtual Corporation Paradox. This paradox can be succinctly stated: the short-term, transient deal-making on which the efficiency of the virtual corporation rests greatly impedes (...) the development of the mutually trusting and cooperative relationships on which its success depends. We examine both economic and sociological explanations for the emergence of trust in similar situations and find both deficient. We conclude that the success of virtual corporations will ultimately depend on an ethics-based form of corporate “character” that allows firms to develop trusting relationships without the usual safeguards or social norms. (shrink)

The moral worth of attorneys has traditionally been judged in terms of compIiance with legal codes of ethics. These codes, ostensibly designed to promote smooth and equitable functioning of an adversary system, are manifestations of a rule utiIitarian moral system. This paper argues that ethical attorneys have a higher calling than rule compIiance and that "moral commitment," which combines commitment to "right" solutions and moral courage, is a superior yardstick for measuring their moral worth.

The moral worth of attorneys has traditionally been judged in terms of compIiance with legal codes of ethics. These codes, ostensibly designed to promote smooth and equitable functioning of an adversary system, are manifestations of a rule utiIitarian moral system. This paper argues that ethical attorneys have a higher calling than rule compIiance and that "moral commitment," which combines commitment to "right" solutions and moral courage, is a superior yardstick for measuring their moral worth.