This paper proposes that managers add an attention to virtues and vices of human character as a full complement to moral reasoning according to a deontological focus on obligations to act and a teleological focus on consequences (a balanced tripartite approach). Even if the criticisms of virtue ethics cloud its use as a mononomic normative theory of justification, they do not refute the substantial benefits of applying a human character perspective – when done so in conjunction with also-imperfect act-oriented perspectives. (...) An interactive tripartite approach is superior for meeting the complex requirements of an applied ethic. To illustrate how deficiencies of a "strong" virtue ethics formulation can be overcome by a balanced tripartite approach, this paper compares normative leadership paradigms (each based on a combination of virtue, deontology, or consequentialist perspectives) and the dangers inherent in each. The preferred paradigm is servant leadership, grounded in a tripartite ethic. Effective application of such an ethics approach in contemporary organizations requires further empirical research to develop a greater understanding of the moral language actually used. Meeting this challenge will allow academics better to assist practicing managers lead moral development and moral reasoning efforts. (shrink)

Purpose The purpose of this paper is to develop an ethical framework for the marketing of corporate social responsibility. Methods The approach is a conceptual one based on virtue ethics and on the corporate identity literature. Furthermore, empirical research results are used to describe the opportunities and pitfalls of using marketing communication tools in the strategy of building a virtuous corporate brand. Results/conclusions An ethical framework that addresses the paradoxical relation between the consequentialist perspective many proponents of the marketing of (...) CSR adopt, and ethical perspectives which criticize an exclusive profit-oriented approach to CSR. Furthermore, three CSR strategies in relation to the marketing of CSR are discussed. For each CSR strategy it is explored how a corporation could avoid falling into the promise/performance gap. (shrink)

Purpose The purpose of this paper is to develop an ethical framework for the marketing of corporate social responsibility. Methods The approach is a conceptual one based on virtue ethics and on the corporate identity literature. Furthermore, empirical research results are used to describe the opportunities and pitfalls of using marketing communication tools in the strategy of building a virtuous corporate brand. Results/conclusions An ethical framework that addresses the paradoxical relation between the consequentialist perspective many proponents of the marketing of (...) CSR adopt, and ethical perspectives which criticize an exclusive profit-oriented approach to CSR. Furthermore, three CSR strategies in relation to the marketing of CSR are discussed. For each CSR strategy it is explored how a corporation could avoid falling into the promise/performance gap. (shrink)

The purpose of this article is to explain the differences between neo-Aristotelian virtue and positive organizational virtuousness from the virtue ethics perspective. Most studies use virtues and virtuousness interchangeably. A few others try to explain their differences from the positive organizational science perspective. Although closely related, we believe that these two notions are not identical. If we understand neo-Aristotelian virtue correctly, then it cannot be judged exclusively on what is externally verifiable, as is the case with virtuousness. For these reasons, (...) we attempt our own differentiation, highlighting the gains and losses realized in the migration from neo-Aristotelian virtue to positive organizational virtuousness, and establishing guideposts to meaningfully combine the strengths of both concepts. (shrink)

This study participates in the discussion of the ethical culture of organizations by deepening the knowledge and understanding of the meaning of organizational ethical virtues in organizational innovativeness. The aim in this study was to explore how an organization’s ethical culture and, more specifically, organization’s ethical virtues support organizational innovativeness. The ethical culture of an organization is defined as the virtuousness of an organization. Organizational innovativeness is conceptualized as an organization’s behavioral propensity to produce innovative products and services. The empirical (...) data consisted of a total of 39 interviews from specialist organizations. Qualitative content analysis was used to analyze the data. The findings indicate that the organizational ethical virtues of feasibility, discussability, supportability, and congruency of management are those that support organizational innovativeness. The findings also show which specific elements of these virtues and related organizational practices are important to innovativeness. In addition, this study showed that the features of organizational innovativeness are not necessarily dichotomous but rather follow the ideas of virtues and are versatile in nature. (shrink)

The aim of this paper is to explore the ethical dimension of hawala, an ancient informal financial practice rooted in Islamic moral traditions. Widely used in countries with an Islamic background and their diasporas, hawala is considered an important vehicle for the financial and economic development of some less developed countries. Nevertheless, in Western countries, hawala is regarded with suspicion due its controversial ethical nature. Unlike other Islamic financial institutions, the controversial questions are not the legitimacy of profit sources or (...) the interest charged, but rather the lack of transparency that surrounds hawala transactions. Yet, the literature on hawala has neglected its ethical perspective. Our study delves into this dimension with a critical approach, using the Triple Font Theory, grounded on virtue ethics. We conclude that if hawala transactions are carried out with honesty, and fairness, this practice deserves a positive ethical appraisal. However, it is necessary to implement efficient regulatory measures to guarantee that the system is not abused by money launders and criminals. In practice, it becomes imperative to bring over a change in the regulatory approach to hawala toward a more ethically, culturally, and economically sensitive strategy. Thus, future research should focus on how “hyper-norms” or fundamental principles inherent to humanity, which are common to both “formal” and “informal,” “Western” and “non-Western” financial practices, could run the new AML/ctf regulation agenda. (shrink)

Alasdair MacIntyre´s criticism of Modernity essentially refers to the problem of compartmentalization, which restricts the possibility of achieving excellence in an integral lifestyle. Among other reasons, compartmentalization is especially derived from an insular valorization of the workplace based on a reductionist understanding of productivity in terms of mere efficiency. Aimed at overcoming the moral confusion derived from the overestimation of technical, skilled productivity and individualistic cooperation in private corporations, this article offers a thicker explanation of MacIntyre’s theory of productive work (...) in light of a narrative approach that opens up the possibility of achieving standards of excellence in modern production. To do so, it follows MacIntyre’s understanding of productivity in terms of craftsmanship by explaining what excellence in production is and the role it plays in achieving unity of life and excellence in modern corporations based on two criteria derived from a historical definition of production, namely, craftsmanship and collegiality. (shrink)

Pricing policies and fair-trade practices are critical for sustaining commercial relationships between firms and customers. Nevertheless, in current business practices, fairness has been mistakenly reduced to a minimalistic ethic wherein justice only demands legal and explicit norms to which commercial parties voluntarily agree. Aimed at giving a different explanation of commercial agreements, this paper will introduce a Virtue Ethics (VE) explanation of the relationship between pricing and the common good by taking up classical concepts related to justice in commerce. In (...) particular, we will explore three principles associated with the notion of fairness in commerce as defined in Neo-Aristotelian ethics towards a relationship between a common good and justice in pricing, i.e., proportionality, benevolence and well-being. To exemplify how these criteria of justice apply to decision-making in commercial practices, we will discuss several cases of fair and unfair commercial relationships. (shrink)

This paper builds on a number of ideas concerning the nature, management and representation in case studies, of moral issues and dilemmas as experienced by people in organisations. Drawing on some cases used in teaching business ethics, and utilising a checklist of questions derived from the more general theoretical analysis, suggestions are offered regarding the contributions which such cases can make in developing students' understanding and potential for performative competence in real life situations. The distinction between issues and dilemmas is (...) emphasised, and different types of issue are identified. The status of self-interest as an issue, and as contributory to personal dilemmas, is given particular attention. The paper also addresses the distinction between cognitive and non-cognitive attributes required by individuals if they are to deal with such situations. Within the cognitive category attention is paid to the contribution of ethical and other theory, and to the need for moral imagination and judgement. (shrink)

The current debate as to whether the natural environment should be accorded stakeholder status involves an assumption that it is in some way ‘different’ from other stakeholders, requiring favourable discriminatory treatment. Essentially it is regarded as passive, requiring regulatory agencies to represent its interests or the wider public to demand its protection on the occasion of, for example, oil spills that leave wildlife in a visibly distressed state. But the natural environment does not have ‘consciousness’ as do traditional classes of (...) stakeholders such as employees, shareholders and contractors, nor does it negotiate in markets over the price at which it sells its output in the way that a trader haggles with potential buyers. This paper proposes that in the context of financial markets the natural environment possesses stakeholder status, founded upon the essentiality of ecosystem stability for their proper functioning and the structuring of instruments traded on them. (shrink)

The current debate as to whether the natural environment should be accorded stakeholder status involves an assumption that it is in some way ‘different’ from other stakeholders, requiring favourable discriminatory treatment. Essentially it is regarded as passive, requiring regulatory agencies to represent its interests or the wider public to demand its protection on the occasion of, for example, oil spills that leave wildlife in a visibly distressed state. But the natural environment does not have ‘consciousness’ as do traditional classes of (...) stakeholders such as employees, shareholders and contractors, nor does it negotiate in markets over the price at which it sells its output in the way that a trader haggles with potential buyers. This paper proposes that in the context of financial markets the natural environment possesses stakeholder status, founded upon the essentiality of ecosystem stability for their proper functioning and the structuring of instruments traded on them. (shrink)

This article examines the applicability of character and virtue ethics to international marketing. The historical background of this field, dimensions of virtue ethics and its relationship to other ethical theories are explained. Five core virtues – integrity, fairness, trust, respect and empathy – are suggested as especially relevant for marketing in a multicultural and multinational context. Implications are drawn for marketing scholars, practitioners and educators.

In recent years, character traits in general and virtue-related concepts in particular have been of considerable interest to philosophers, psychological researchers, and practitioners in the business ethics field. Three approaches to character traits can be used to incorporate ethics into organizations: virtues, character strengths, and competencies. The aim of this article is to clarify the concept of character traits, or virtues, and provide a unified operational version of it for incorporation into management. To this end, we first discuss the analogy (...) among virtues, character strengths, and competencies. Then, we propose a list of moral competencies that can be implemented in competency-based human resource management. (shrink)

After exploring MacIntyre’s (1985) practice—institution distinction, the article demonstrates its applicability to business-as-practice and to corporations as institutions. It then considers the implications of MacIntyre’s schema to ethical schizophrenia, to the claim that themarket is a source of the virtues and to the opposite claim that capitalism corrodes character. A fully worked out modern virtue ethics, based on MacIntyre’s work, is then established and the claim is made and substantiated that such an understanding of MacIntrye’s work revitalises it and makes (...) it directly applicable to business and to corporations. (shrink)

The debate concerning corporate moral agency is normally conducted through philosophical arguments in articles which argue from only one point of view. This paper summarises both the arguments for and against corporate moral agency and concludes from this that the arguments in favour have more weight. The paper also addresses the way in which the law in the U.K. and the U.S.A. currently views this issue and shows how it is supportive of the concept of corporate moral agency. The paper (...) concludes by considering the implications of the debate for business ethics in general, and stakeholder theory and virtue ethics in particular. (shrink)

Adequate discussion of individuals' moral deliberation is notably absent from much of the literature on corporate social responsibility (CSR). We argue for a refocusing on the role of the individual in that context. In particular we regard this as important in CSR course design, for practical, pedagogical and moral reasons. After addressing some of the theoretical background to our argument, and noting some respects in which individual action features in the context of CSR, we consider the usefulness (or otherwise) of (...) academic ethical theory in relation to CSR issues and dilemmas in practice. It is suggested that, without dispensing entirely with ethical theory, emphasis should be placed on informed debate and moral judgement among members of organisations (or seminar groups) and some short case examples are provided. Finally we suggest that such approaches may be appropriate if trends towards ‘mainstreaming’ concern for CSR throughout business school curricula are realised. (shrink)

Adequate discussion of individuals' moral deliberation is notably absent from much of the literature on corporate social responsibility (CSR). We argue for a refocusing on the role of the individual in that context. In particular we regard this as important in CSR course design, for practical, pedagogical and moral reasons. After addressing some of the theoretical background to our argument, and noting some respects in which individual action features in the context of CSR, we consider the usefulness (or otherwise) of (...) academic ethical theory in relation to CSR issues and dilemmas in practice. It is suggested that, without dispensing entirely with ethical theory, emphasis should be placed on informed debate and moral judgement among members of organisations (or seminar groups) and some short case examples are provided. Finally we suggest that such approaches may be appropriate if trends towards ‘mainstreaming’ concern for CSR throughout business school curricula are realised. (shrink)

Learning to address moral dilemmas is important for participants on courses in business ethics and corporate social responsibility (CSR). While modern, rule-based ethical theory often provides the normative input here, this has faced criticism in its application. In response, post-modern and Aristotelian perspectives have found favour. This paper follows a similar line, presenting an approach based initially on a critical interpretation of Ross's theory of prima facie duties, which emphasises moral judgement in actual situations. However, the retention of a modern (...) element is suggested, with an invitation to hypothetically universalise detailed proposals for action, following Hare. This further step may reassure students/managers who seek additional closure in their decision-making. Some pedagogical implications are also briefly raised regarding the use of case material and the need to recognise questions of social interaction and personal character as features of dilemma resolution in actual organisational contexts. (shrink)

Learning to address moral dilemmas is important for participants on courses in business ethics and corporate social responsibility (CSR). While modern, rule‐based ethical theory often provides the normative input here, this has faced criticism in its application. In response, post‐modern and Aristotelian perspectives have found favour. This paper follows a similar line, presenting an approach based initially on a critical interpretation of Ross's theory of prima facie duties, which emphasises moral judgement in actual situations. However, the retention of a modern (...) element is suggested, with an invitation to hypothetically universalise detailed proposals for action, following Hare. This further step may reassure students/managers who seek additional closure in their decision‐making. Some pedagogical implications are also briefly raised regarding the use of case material and the need to recognise questions of social interaction and personal character as features of dilemma resolution in actual organisational contexts. (shrink)

This paper offers an alternative to deontological and utilitarian approaches to making ethical decisions and taking good actions by organisational leaders. It argues that the relational and context-dependent nature of leadership necessitates reference to an ethical approach which explicitly takes these aspects into account. Such an approach is offered in the re-conceptualisation of ethical action on the part of leaders as a process of “coming into right relation” vis-à-vis those affected by their decisions and actions. Heidegger’s notion of “dwelling” is (...) explored as a means of “coming into right relation”. Three aspects of dwelling: “staying with”, “comportment” and “active engagement” are described and ways in which they might be practically enacted by leaders are suggested. The paper concludes by reflecting on the ways adopting a “dwelling” approach to resolving ethical issues implies a re-conceptualisation of leadership itself. (shrink)

This paper offers an alternative to deontological and utilitarian approaches to making ethical decisions and taking good actions by organisational leaders. It argues that the relational and context-dependent nature of leadership necessitates reference to an ethical approach which explicitly takes these aspects into account. Such an approach is offered in the re-conceptualisation of ethical action on the part of leaders as a process of "coming into right relation" vis-à-vis those affected by their decisions and actions. Heidegger's notion of "dwelling" is (...) explored as a means of "coming into right relation". Three aspects of dwelling: "staying with", "comportment" and "active engagement" are described and ways in which they might be practically enacted by leaders are suggested. The paper concludes by reflecting on the ways adopting a "dwelling" approach to resolving ethical issues implies a re-conceptualisation of leadership itself. (shrink)

This paper argues that corporate governance reformers in Anglo-American jurisdictions should consider a different approach in their quest for better corporate governance. Traditionally, corporate governance reform has taken a structural approach, tightening the rules around the number of independent directors required on boards and committees and fine-tuning the definition of independence. However, such an approach has failed to achieve effective corporate governance. Moreover, this approach is informed by the arguably discredited assumption that individuals are rational self-interest utility maximizers. This conceptual (...) paper questions why corporate governance scholars and regulators remain uncritical of this assumption and suggests an approach to reform inspired by a different view of human nature. Indeed, incorporating an actor-based approach to reform into existing structures may better achieve effective corporate governance while addressing an unjustified adherence to this flawed assumption. (shrink)

Organizational integrity is a key concept with and through which a company can assume its responsibility for ethical and societal issues. It is a basic premise for sustainable corporate success, as ethical risks ultimately become economic risks for a company. Recent research shows the potential of integrity‐based governance models to reduce corporate risks and to improve business performance. However, companies are not yet able to assess nor evaluate their level of organizational integrity in a sound and systematic way. We aim (...) to develop a theoretical model as a basis for the measurement of organizational integrity by conceptualizing the construct and sizing the theoretical model's scope. We suggest that the theoretical model follows a holistic approach and involves three types of dimensions: prerequisite dimensions, independent dimensions, and dependent dimensions. The organizational integrity triad—consisting of active commitments to self‐imposed norms and principles, their transparent institutionalization into corporate processes and structures, and their implementation into action—plays a key role in this context. (shrink)

Virtue ethics is generally recognized as one of the three major schools of ethics, but is often waylaid by utilitarianism and deontology in business and management literature. EBSCO and ABI databases were used to look for articles in the Journal of Citation Reports publications between 1980 and 2011 containing the keywords ‘virtue ethics’, ‘virtue theory’, or ‘virtuousness’ in the abstract and ‘business’ or ‘management’ in the text. The search was refined to draw lists of the most prolific authors, the most (...) cited authors, the most cited articles, and the journals with the most virtue ethics publications. This information allows one to chart how virtue ethics articles have evolved through the decades and to establish ‘schools’ or clusters of authors as well as clusters of themes. The results of this quantitative analysis of authors, ‘schools’, themes, and publications provide a foundation for the future study of virtue ethics in business and management, identifying its achievements and potentials. (shrink)

Despite the profound potential of MacIntyre’s revolutionary virtue paradigm, management scholars have struggled to make sense of one of the most contentious and insightful philosophers of our time. This conceptual paper attempts to move past the transliteration of MacIntyre in favour of a translation of his contribution in a manner than retains something closer to its full meaning, while helpfully guiding empirical efforts to apply this emerging paradigm to modern organisations. This translation entails a dismissal of MacIntyre’s hypercritical bias in (...) order to accommodate an expansion of his ideas into the language and logic of management theory and practice. Schein’s methodological roadmap for deciphering culture is offered, as is theory-building using comparative case research, as offering two particularly promising directions for future empirical studies that seek to use the theory of virtue in order to reconceptualise and study the modern organisation. (shrink)

Abstract:The aim of this paper is to create a framework which can serve as a guide to the understanding of organizational ethicality. This is done by linking ethical and organizational theory. Organizational ethicality is about “being” as well as “doing”: relevant ethical theory is therefore both substantive (agent-centred, concerned with the “good”) as well as procedural (act-centred, concerned with the “right” in the sense of the moral or just thing to do). The ethical theories of Alasdair MacIntyre and Jurgen Habermas, (...) as representatives of these two traditions, are mapped onto a framework which characterises organizations as assemblages of practices supported by a climate embedded within an organizational culture. Organizational practice is articulated and given meaning within a discourse of “sensemaking” in which narrative creates space-time links between people and events. Within that same communicative climate practices are evaluated and decisions taken. This theoretical framework is specified in such a way as to highlight the parallels with the ethical theories of MacIntyre, who uses notions of practice, tradition and the narrative unity of moral experience to create an ethical theory of the “good,” and Habermas, who spells out the process of moral argumentation by which consensus on the “just” or “right” is reached. Some possibilities for further research are suggested at the end of the paper. (shrink)

This article considers financial risk management practice using a virtue ethics lens, in response to ongoing critiques of risk management from within business ethics. Risk management should be seen as embedded within a complex system of cultures, organizations and regulations that are underpinned by a quantitatively reductive or ‘mechanistic’ economic paradigm, where dominant logics of self-interest, profit maximization and short-termism prevail. Building on recent work applying virtue ethics in finance, an alternative to the values, normative expectations and priorities in financial (...) risk management is presented in the form of a refined ‘taxonomy’ of the virtues that can be applied to individuals and organizations engaged in financial risk management. This article aims to contribute to and extend debate on the ethical aspects of risk management and presents an alternative to more technically based critiques which do not engage with the underlying socially constructed foundations of risk management practice. It thereby provides a basis to critique the mechanistic and narrow approach used in the current regulation of the sector. (shrink)