Ethical Design of Organizations

Note that this paper is 35 pages, and had been replaced in many places w/ a draft w/o authorization. -/- The academy, broadly construed to include faculty, administrators at all levels, and editors, referees, and publishers of academic work, is beset by more ills bespeaking of a fundamental lack of integrity than can possibly be enumerated in a single monograph; nevertheless, as the need is urgent, and everyone seems to prefer either silence or piecemeal treatments, myself heretofore included, five ills (...) are enumerated herein, then traced to seven deadly sins that beset the entire enterprise—although not in its entirety, of course—and some surprisingly simple, commonsensical, and practicable solutions are advanced. (shrink)

The ethics of technology has primarily focused on what values are and how they can be embedded in technologies through design. In this context, some work has been done to show the efficacy of a number of design approaches. However, existing studies have not clearly pointed out the ways in which design-for-values approaches can be used by design team managers to properly organize and use technologies in practice. This chapter attempts to fill this gap by discussing the value sensitive design (...) (VSD) approach as a useful means of co-designing technologies as a toolkit for existing workflow management, in this case, Agile. It will be demonstrated that VSD shows promise as a way of democratically designing technologies as well as fostering democratic technology policy innovation. (shrink)

A central reason to worry that managers should not use nudges to influence employees is that doing so fails to treat employees as rational and/or autonomous. Recent nudge defenders have marshaled a powerful line of response against this worry: in general, nudges treat us as the kind of RA agents we are, because nudges are apt to enhance our limited capacities for RA agency by improving our decision-making environments. Applied to managerial nudges, this would mean that when managers nudge their (...) employees, they generally bolster their employees’ limited RA agency and, thus, treat employees as the kinds of RA agents they are. My aim is to vindicate a qualified version of the initial worry from the nudge-defender response and, as a result, provide a clearer, more plausible framework for evaluating managerial nudges than what nudge critics have previously given. I do this, first, by showing how nudge defenders rely on equivocation between two different senses of “treating someone as RA.” The value-preserving notion that supports the nudge-defender prescription to protect and enhance RA capacities is different from the authority-recognizing notion that underwrites the initial worry about nudging. Second, I argue that the authority-recognizing notion of treating someone as RA implies that managerial nudges treat employees as RA just when the nudges are compatible with relating to employees as equals. Third, I explain how, to determine when managerial nudges are compatible with relating to employees as equals, we need to consider how employees surrender aspects of their equal, agency-grounded authority to managers. (shrink)

Worker well-being is a hot topic in organizations, consultancy and academia. However, too often, the buzz about worker well-being, enthusiasm for new programs to promote it and interest to research it, have not been accompanied by universal enthusiasm for scientific measurement. Aim to bridge this gap, we address three questions. To address the question ‘What is worker well-being?’, we explain that worker well-being is a multi-facetted concept and that it can be operationalized in a variety of constructs. We propose a (...) four-dimensional taxonomy of worker well-being constructs to illustrate the concept’s complexity and classify ten constructs within this taxonomy. To answer the question ‘How can worker well-being constructs be measured?’, we present two aspects of measures: measure obtrusiveness (i.e., the extent to which obtaining a measure interferes with workers’ experiences) and measure type (i.e., closed question survey, word, behavioral and physiological). We illustrate the diversity of measures across our taxonomy and uncover some hitherto under-appreciated avenues for measuring worker well-being. Finally, we address the question ‘How should a worker well-being measure be selected?’ by discussing conceptual, methodological, practical and ethical considerations when selecting a measure. We summarize these considerations in a short checklist. It is our hope that with this study researchers – working in organizations, in academia or both – will feel more competent to find effective strategies for the measurement worker well-being and eventually make policies and choices with a better understanding of what drives worker well-being. (shrink)

Are the wishes of the dead more important than the needs of the living? This question is prompted by consideration of the Hershey Trust Company, a perpetual charitable trust that not only owns and operates the Milton Hershey School in Pennsylvania, but also owns a controlling interest in various Hershey-related for-profit entities. This unusual arrangement, and the conditions under which it was formed, have produced a situation in which a small, private boarding school for low-income students has an endowment of (...) $12 billion (in addition to its other corporate and real estate interests). The trust has been operating according to its founder’s wishes for decades, but some have wondered whether its resources could be put to better use for more urgent needs. This case will invite students to consider the question of how we should weigh the needs of the living against the wishes of the dead. (shrink)

Workplace democracy is often defined, and has recently been defended, as a form of intra-firm governance in which workers have control rights over management with no ownership requirement on their part. Using the normative tools of republican political theory, the paper examines bargaining power disparities and moral hazard problems resulting from the allocation of control rights and ownership to different groups within democratic firms, with a particular reference to the European codetermination system. With various qualifications related to potentially mitigating factors, (...) such as workforce and shareholder composition or risk aversion and reallocation, the paper contends that forms of workplace democracy in which workers control and own the firm, such as cooperativism, are preferable to other forms, such as codetermination, in which ownership and control rights are formally separated. (shrink)

The law of successor criminal liability is simple—corporate successors are liable for the crimes of their predecessors. Always. Any corporation that results from any merger, consolidation, spin-off, etc., is on the hook for all the crimes of all the corporations that went into the process. Such a coarse-grained, onetrack approach fails to recognize that not all reorganizations are cut from the same cloth. As a result, it skews corporate incentives against reorganizing in more socially beneficial ways. It also risks punishing (...) corporate successors unjustly. -/- This Article offers a more sophisticated approach to successor liability: successors should be liable for the crimes of their predecessors only when they inherit their predecessors’ compliance vulnerabilities. In the terms developed by this Article, these successors share a “criminal identity” with their predecessors. Such an approach would incentivize corporations to structure reorganizations in ways that improve compliance and minimize the likelihood of future offenses. At the same time, it would do a better job of ensuring that. (shrink)

The term « subsidiarity » started to appear in managerial literature in the last few years, to advocate innovative managerial practices. The resurgence of this concept that originated from a political context can create problems. The goal of this paper is to expose the main difficulty of translating this concept from the political field to a corporate situation. Indeed, subsidiarity gives its inherent power back to the lower echelons of a political community. But the economic approach of organization theory assumes, (...) mainly by the means of agency theory, a top-down conception of the firm. Thus, it is not the lower echelons which delegates power to the higher echelons. Consequently, the subsidiarity principle seems not to be applicable to a corporate setting, unless we reverse the assumptions of economic approach of organization theory. Then, the principle of subsidiarity could be used as an illusion to con employees into believing they have legitimate power, in order to manipulate their freedom, and domesticate it for managerial ends. (shrink)

Some interesting exceptions notwithstanding, the traditional logic of economic efficiency has long favored hierarchical forms of organization and disfavored democracy in business. What does the balance of arguments look like, however, when values besides efficient revenue production are brought into the picture? The question is not hypothetical: In recent years, an ever increasing number of corporations have developed and adopted socially responsible behaviors, thereby hybridizing aspects of corporate businesses and social organizations. We argue that the joint pursuit of financial and (...) social objectives warrants significant rethinking of organizational democracy’s merits compared both to hierarchy and to non-democratic alternatives to hierarchy. In making this argument, we draw on an extensive literature review to document the relative lack of substantive discussion of organizational democracy since 1960. And we draw lessons from political theory, suggesting that the success of political democracy in integrating diverse values offers some grounds for asserting parallel virtues in the business case. (shrink)

This paper explores types of organisational ignorance and ways in which organisational practices can affect the knowledge we have about the causes and effects of our actions. I will argue that because knowledge and information are not evenly distributed within an organisation, sometimes organisational design alone can create individual ignorance. I will also show that sometimes the act that creates conditions for culpable ignorance takes place at the collective level. This suggests that quality of will of an agent is not (...) necessary to explain culpable ignorance in an organisational setting. (shrink)

The term “technological fix”, coined by technologist/administrator Alvin Weinberg in 1965, vaunted engineering innovation as a generic tool for circumventing problems commonly conceived as social, political or cultural. A longtime Director of Oak Ridge National Laboratory, government consultant and essayist, Weinberg also popularized the term “Big Science” to describe national goals and the competitive funding environment after the Second World War. Big Science reoriented towards Technological Fixes, he argued, could provide a new “Apollo project” to address social problems of the (...) future. His ideas – most recently echoed in “solutionism” – have channeled confidence and controversy ever since. This paper traces the genesis and promotion of the concept by Weinberg and his contemporaries. It argues that, through it, the marginal politics and technological confidences of interwar scientists and technocrats were repositioned as mainstream notions closer to the heart of Big Science policy. (shrink)

Purpose This paper aims to develop a system view of the organizational culture, given entropy of theoretical and methodological outlooks on the phenomenon alongside simultaneous growth of number of research reports. -/- Design/methodology/approach Sequential structural and ontological analysis of the Schein’s (2004) point of view on organization culture enabled to form a way of system comprehension of the respective object field on conscious and unconscious levels. -/- Findings Structural ontology of organizational culture represented by the mythopoetic concept of organization, which (...) is a composition of unconscious motives reflecting standard and management peculiarities of functioning characteristic of a certain group. -/- Research limitations/implications The proposed methodological discourse actualizes a hypothesis on organizational unconscious as a specific factor of organizational culture and begets a respective direction of the further researches. -/- Originality/value This is the first methodological concept, that provides a system comprehension of the object field of organizational culture. The concept has important implications for methodological designs of further researches and systematization of already obtained data within the domain. (shrink)

On the traditional view, moral distress arises only in cases where an individual believes she knows the morally right thing to do but fails to perform that action due to various constraints. We seek to motivate a broader understanding of moral distress. We begin by presenting six types of distress that fall outside the bounds of the traditional definition and explaining why they should be recognized as forms of moral distress. We then propose and defend a new and more expansive (...) definition of moral distress and examine how it can enable the development of a taxonomy of moral distress. (shrink)

Building on existing forms of critical, cultural, biopolitical, and sociopolitical posthumanism, in this text a new framework is developed for understanding and guiding the forces of technologization and posthumanization that are reshaping contemporary organizations. This ‘organizational posthumanism’ is an approach to analyzing, creating, and managing organizations that employs a post-dualistic and post-anthropocentric perspective and which recognizes that emerging technologies will increasingly transform the kinds of members, structures, systems, processes, physical and virtual spaces, and external ecosystems that are available for organizations (...) to utilize. It is argued that this posthumanizing technologization of organizations will especially be driven by developments in three areas: 1) technologies for human augmentation and enhancement, including many forms of neuroprosthetics and genetic engineering; 2) technologies for synthetic agency, including robotics, artificial intelligence, and artificial life; and 3) technologies for digital-physical ecosystems and networks that create the environments within which and infrastructure through which human and artificial agents will interact. -/- Drawing on a typology of contemporary posthumanism, organizational posthumanism is shown to be a hybrid form of posthumanism that combines both analytic, synthetic, theoretical, and practical elements. Like analytic forms of posthumanism, organizational posthumanism recognizes the extent to which posthumanization has already transformed businesses and other organizations; it thus occupies itself with understanding organizations as they exist today and developing strategies and best practices for responding to the forces of posthumanization. On the other hand, like synthetic forms of posthumanism, organizational posthumanism anticipates the fact that intensifying and accelerating processes of posthumanization will create future realities quite different from those seen today; it thus attempts to develop conceptual schemas to account for such potential developments, both as a means of expanding our theoretical knowledge of organizations and of enhancing the ability of contemporary organizational stakeholders to conduct strategic planning for a radically posthumanized long-term future. (shrink)

Bankers have a reputation for deviating from standard morals. It is an open question, though, if this claim can be substantiated. Here, it is tested directly if bankers respond differently to moral dilemmas. Evaluations of the moral acceptableness of behavioural options in two trolley cases by bankers (n = 23) are compared to those of ordinary people (n = 274). An apparent difference in response behaviour between the groups can be fully explained by a difference in the response behaviour of (...) men and women. When controlling for gender, no differences between bankers and other people remain. (shrink)

The paper discusses the structure, applications, and plausibility of the much-used parallel-case argument for workplace democracy. The argument rests on an analogy between firms and states according to which the justification of democracy in the state implies its justification in the workplace. The contribution of the paper is threefold. First, the argument is illustrated by applying it to two usual objections to workplace democracy, namely, that employees lack the expertise required to run a firm and that only capital suppliers should (...) have a say over the governance of the firm. Second, the structure of the argument is unfolded. Third, two salient similarities between firms and states regarding their internal and external effects and the standing of their members are addressed in order to asses the potential and limits of the argument, as well as three relevant differences regarding the voluntariness of their membership, the narrowness of their goals, and the stiffness of the competition they face. After considering these similarities and differences, the paper contends that the the parallel-case argument provides a sound reason in favor of democracy in the workplace—a reason, however, that needs to be importantly qualified and that is only pro tanto. (shrink)

The ecosystem approach to computer system development is similar to management of biodiversity. Instead of modeling machines after a successful individual, it models machines after successful teams. It includes measuring the evaluative diversity of human teams (i.e. the disparity in ways members conduct the evaluative aspect of decision-making), adding similarly diverse machines to those teams, and monitoring the impact on evaluative balance. This article reviews new research relevant to this approach, especially the validation of a survey instrument for measuring computational (...) evaluative differences in humans (the GRINSQ). The research confirms the existence of all four known machine types among humans. (shrink)

In this Article, I propose a novel law and economics explanation of a deeply puzzling aspect of business organization in market economies. Why are virtually all firms organized as capital-managed and -owned (capitalist) enterprises rather than as labor-managed and -owned cooperatives? Over 150 years ago, J.S. Mill predicted that efficiency and other advantages would eventually make worker cooperatives predominant over capitalist firms. Mill was right about the advantages but wrong about the results. The standard explanation is that capitalist enterprise is (...) more efficient. Empirical research, however, overwhelmingly contradicts this. But employees almost never even attempt to organize worker cooperatives. I critique the explanations of the three leading analysts of the subject (N. Scott Arnold, Henry Hansmann, and Gregory Dow), all of whom offer are different transactions cost accounts, as logically defective and empirically inadequate. I then propose an explanation that has been oddly neglected in the literature, that the rarity of cooperatives is explained by the collective action problem identified by writers such as Mancur Olson. Labor management is a public good that generates the n-person prisoner’s dilemma which gives rational actors the incentive to create it in suboptimal (or no) amounts. I support this by reference to the empirical facts about the origin of existing cooperatives and show that this explanation requires no strong version of a questionable rational choice theory. This explanation is supplemented by the mere exposure or familiarity effect derived from social and cognitive psychology, which turns on the fact that labor managed firms are rare, in part because of the public goods problem, thus unfamiliar, which makes them less attractive and thus more likely to be rare. My account points advocates of labor management towards solutions such as institutional changes in incentives, which, however, themselves involve public goods issues. (shrink)

How does a board of directors decide what is right? The contest over this question is frequently framed as a debate between shareholder value and stakeholder rights, between a utilitarian view of the ethics of corporate governance and a deontological one. This paper uses a case study with special circumstances that allow us to examine in an unusually clear way the conflict between shareholder value and other bases on which a board can act. In the autumn of 2010, the board (...) of Liverpool Football Club sold the company to another investing group against the explicit wishes of the owners. The peculiar circumstances of this case provide insight into the conflict between ethical approaches to board decisions, allowing us to see certain issues more clearly than we can in listed corporations with many shareholders. What the analysis suggests is that the board saw more than one type of utility on which to base its ethical decision, and that one version resonated with perceived duties to stakeholders. This alignment of outcomes of strategic value with duties contrasted with the utility of shareholder value. While there are reasons to be cautious in generalizing, the case further suggests reasons why boards may reject shareholder value, in opposition to mainstream notions of corporate governance, without rejecting utility as a base of their decisions. Further, the partial alignment of duty and utility facilitates a pragmatic decision rather than one based on a priori claims. (shrink)

In this chapter it is demonstrated that the way in which leaders implement a decision largely depends on the nature of it, that is, whether it is strategic or not. Leaders must be as open as possible and not withhold information from the persons involved in the process. Therefore, they should distribute as much relevant information as possible to meeting participants before a meeting. At the same time, they must be able to steer the process. It is not unusual for (...) there to be a separation between the formulation and implementation of a strategic decision. Often, it is the top leadership that formulates the decision problem and the middle managers that implement its solution. For this reason, it is relatively common that the top leadership signals that the implementation has been successful as soon as the middle managers begin to report positive results. This can sometimes happen even though most of the implementation is incomplete. However, there are also cases where the top leaders rule out certain implementation processes as failures when in fact they prove later on to be successful. A common problem in organizations is that leaders often inherit the task of implementing decisions that past leaders have made. In order to succeed with an implementation, leaders must understand the importance of the process. They must communicate their vision clearly, evaluate and monitor continuously, and allow interested parties to participate actively in the process. They should also understand that what at first may look like a failure, at a later stage may prove to be a success -/- . (shrink)

Purpose Although current literature assumes positive outcomes for stakeholders resulting from an increase in power associated with CSR, this research suggests that this increase can lead to conflict within organizations, resulting in almost complete inactivity on CSR. Methods A Single in-depth case study, focusing on power as an embedded concept. Results Empirical evidence is used to demonstrate how some actors use CSR to improve their own positions within an organization. Resource dependence theory is used to highlight why this may be (...) a more significant concern for CSR. Conclusions Increasing power for CSR has the potential to offer actors associated with it increased personal power, and thus can attract opportunistic actors with little interest in realizing the benefits of CSR for the company and its stakeholders. Thus power can be an impediment to furthering CSR strategy and activities at the individual and organizational level. (shrink)

Proposes a new model of worker-employer relationships in the US employment context, involving shifts in law and social norms and designed to offer options of potential value to both progressives and libertarians. Emphasizes the importance of decentralized governance and of decoupling income support and other social services from employment.

Crisis management can be simultaneously a content specific problem solving process and an opportunity for stimulating and enabling an organizations ethical tradition. Crisis can be an opportunity for ethical organizational development. Kierkegaardian upbuilding dialog method builds from within the internal ethical tradition of an organization to respond to crises while simultaneously adapting and protecting the organizations tradition. The crisis itself may not be a directly ethical crisis, but the method of responding to the crisis is built upon the ethical foundations (...) of an organizations tradition. A limitation of this method is that it may be less applicable to organizations with questionably ethical traditions. The concept of upbuilding dialog is derived from Kierkegaard, but here is applied to organizational crisis management. The method is illustrated and discussed in the context of a wrongful death crisis of the Dana- Farber Cancer Institute, a nonprofit organization, and an economic survival crisis at Ben and Jerrys, a business organization. (shrink)

As a response to Diane Vaughan’s controversial work on the NASA Challenger Disaster, this article opposes the conclusion that NASA’s decision to launch the space shuttle was an inevitable outcome of techno-bureaucratic culture and risky technology. Instead, the argument developed in this article is that NASA did not prioritize safety, both in their selection of shuttle-parts and their decision to launch under sub-optimal weather conditions. This article further suggests that the “mistake” language employed by Vaughan and others is inappropriate insofar (...) as it obscures the responsibility of individuals within the organization and trivializes the loss of life and severity of the disaster. Contra to the conclusions of Vaughan’s casework, this article reveals various ethical transgressions on the side of NASA and its affiliates; from its decision to use poorly designed O-rings, to withholding crucial engineering assessments from the shuttle-crew, this article points out that NASA did not succumb to a pre-destined fate, but, rather, created its own. (shrink)

This article provides a justification for holding complex organizations morally responsible and shows how this moral dimension is implicit in the concept of power. Several objections to organizational moral responsibility are addressed, and a new view of complex organizations as agents which are morally responsible, but do not possess moral rights, is defended.

-/- This article was first published in Technology and Contemporary Life, Philosophy and Technoloy vol. IV, ed. Paul T. Durbin, Dordrecht/Boston: D. Reidel, 1988, pp. 63-85.

The contention of this paper is that the marketing concept is but one aspect of a philosophy of business referred to by the authors as the framework for organizational success. This framework maintains that the marketing concept must work together with good management approaches and with ethical business practices in order to satisfy the needs and wants of the various publics of the organization — customers, employees, suppliers, society — and, in the long run, ensure the satisfaction of the needs (...) of the organization itself. The authors propose that focusing on one concept, and ignoring the other two aspects, is not likely to promote organizational success. (shrink)

Product-harm crisis is an important organizational management topic due to the potential detrimental business impact. Organizations are more vulnerable than ever to the possibility of product related incidents disrupting business at any point in the supply chain. To counteract this implicit threat to an organizations reputation and financial wellbeing, if properly deployed, continuity management fosters the ability to run in the face of a crisis event; whereby business continuity management induces the means for appropriate product-harm crisis responses. In this study, (...) the author synthesizes selected published research presenting product-harm crisis management considerations. Based on an assigned literature review; the author summarizes article content, compares and contrasts methods and extrapolates results and conclusions garnered from the selected scholarly research; then provides an actionable recommendation for enabling effective product-harm crisis management. (shrink)