In recent years, there has been increasing concern about unethical conduct within corporate business, not least because of the scandalous behavior of former chief executives at top blue chip companies such as Enron, Worldcom, Parmalat, and Volkswagen. These scandals have not only threatened the privileged position of senior corporate employees but also the solvency of the companies they manage and lead. The high profile cases of corporate crime and corruption that occurred in the early 2000s together with the 2008 Wall (...) Street bailouts and the growth in criminal prosecutions since have raised the profile of business ethics to an unprecedented level. Greater public sensitivity toward and awareness about the unlawful and immoral conduct of firms in the United States and elsewhere, has created demand for organizations to become more accountable and socially responsible and prompted greater regulatory scrutiny. It has also served to highlight the embryonic and delimited state of research and scholarship on business ethics, where the focus has tended to remain on leadership. A neglected, though important, line of ethical enquiry concerns followership. Corporate wrongdoing would be less formidable and extensive if it was not aided and abetted. Two key questions arise. First, what prompts followers to support rather than oppose bad leaders? Second, what can be done to stem or at least curtail their allegiance to bad leaders? (shrink)

Research suggests a direct negative relationship between peers’ unethical behavior and employees’ ethical intention. But several possible mechanisms might explain this relationship in more detail. For example, Machiavellianism is a personality trait characterized by interpersonal manipulation and the use of unethical means to achieve certain self‐interested ends, whether useful or pleasant. This article adopts an Aristotelian understanding of philia, related to three goods on which human relationships rest: useful, pleasant, and honest. We propose that Machiavellianism, a self‐interested, pragmatic personality orientation, (...) might explicate the relationship between peers’ unethical behavior and ethical intention. The results of a structural equation model applied to a sample of 436 banking employees in Spain reveals that Machiavellianism partially mediates the relationship between peers’ unethical behavior and employees’ ethical intention. We also find that with a greater level of peers’ unethical behavior, the negative effect of Machiavellianism on ethical intention increases, and that when peers’ unethical behavior is nonexistent, the negative effect of Machiavellianism on ethical intention disappears. These findings advance current literature by revealing that unethical peers can indirectly influence ethical intention, through shaping Machiavellianism. Our study is also the first to show that pairing high Machiavellians with ethical peers can help to cancel out the negative influence of Machiavellianism on ethical intention. (shrink)

ABSTRACT:Relational leadership invokes an ethics involving a leader’s affective engagement and genuine concern with the interests of others. This ethics faces practical difficulties given it implies a seemingly limitless responsibility to a set of incommensurable ethical demands. This article contributes to addressing the impasse this creates in three ways. First, it clarifies the nature of the tensions involved by theorising relational leadership as caught in an irreconcilable bind between an infinitely demanding ethics and the finite possibilities of a response to (...) those demands. Second, it examines this ethical challenge in acknowledgement of the hierarchical discourses and power dynamics in which leadership relationships are constrained and enacted. Third, it proposes “ethical irony” as a way leaders can respond to the demand for ethics without resulting in either an escape from ethics, or being crushed by its burden. Three dimensions of ethical irony are examined: ironic perspective, ironic performance, and ironic predilection. (shrink)

The author of this paper argues that the responsibility to nurture and encourage a relationally responsive ethical attitude among the members of an organizational system is shared by all who participate in it. In the dynamic environment of a complex adaptive organizational system where it is impossible to anticipate and legislate for every potential circumstantial contingency, creating and sustaining relationships of trust has to be a systemic capacity of the entire organization. Leadership is socially constructed, as the need for it (...) arises within the complex interactions between individuals and groups within organizations, and can therefore not be described as a set of traits or behaviors possessed by only certain individuals who occupy positions of authority. If the sharing of this kind of relational responsiveness to the everyday realities of organizational life is to be properly understood, it is important to consider it in its concrete institutional manifestations. The last section of this paper therefore explores how an organization, in which leadership is understood in relational terms and is shared by all, looks and functions. (shrink)

ABSTRACT:This article addresses the fundamental question of what is ethical leadership by rearticulating relations between leaders and followers in terms of “affective leadership.” The article develops a Spinozian conception of ethics which is underpinned by a deep suspicion of ethical systems that hold obedience as a primary virtue. We argue that the existing research into ethical leadership tends to underplay the ethical capacities of followers by presuming that they are in need of direction or care by morally superior leaders. In (...) contrast, affective leadership advocates a profoundly political version of ethics, which involves people in the pursuit of joyful encounters that augment our capacity to affect and be affected by others. Instead of being led by people in leadership positions, we are led by active affections that enhance our capacity for moral action. (shrink)

The encyclical proclaims the centrality of human development, which includes acting with gratuitousness and solidarity in pursuing the common good. This paper considers first whether such relationships of gratuitousness and solidarity can be analysed through the prism of traditional theories of social psychology, which are highly influential in current management research, and concludes that certain aspects of those theories may offer useful tools for analysis at the practical level. This is contrasted with the analysis of such relationships through Aristotelian virtue (...) ethics (in particular as interpreted by MacIntyre 1985 , 1998 , 1999 ), which is emerging as a strong force in the field of business ethics, and which has strong conceptual similarities with the ideas put forward by Benedict XVI. Aristotelian virtue ethics offers a better fit with the aims of the encyclical at the theoretical level but it presents a number of challenges at the practical level, which the paper suggests may be addressed through the integration in its analysis of human action of models derived from social psychology. (shrink)

Of recent time, there has been a proliferation of concerns with ethical leadership within corporate business not least because of the numerous scandals at Enron, Worldcom, Parmalat, and two major Irish banks – Allied Irish Bank (AIB) and National Irish Bank (NIB). These have not only threatened the position of many senior corporate managers but also the financial survival of some of the companies over which they preside. Some authors have attributed these scandals to the pre-eminence of a focus on (...) increasing shareholder value in Western business schools and/or to their failure to inculcate ethical standards. In this paper, we challenge these accounts and the aetiological view of knowledge from which they derive but are grateful for the consensus that they convey regarding the importance of business ethics. The paper focuses on different approaches to ethical leadership concluding with a view that some hybrid of MacIntyre’s virtue ethics and Levinas’s ethics of responsibility may serve as an inspiration for both educators and practitioners. (shrink)

This paper aims to integrate insights from psychoanalytic theory into business ethics research on the sources of ethical failures within organizations. We particularly draw from the analysis of sources and outcomes of neurotic processes that are part of human development, as described by the psychoanalyst Karen Horney and more recently by Manfred Kets de Vries; we interpret their insights from a stakeholder theory perspective. Business ethics research seems to have overlooked how “neurotic management styles” could be the antecedents of unethical (...) behavior within organizations. After showing the connection between five managerial neuroses and the corresponding potential ethical failures within organizations that have been already identified within business ethics research, we suggest three organizational strategies to counteract these failures. First, we argue that managers should pay greater attention at the complexity of human motivation, avoiding the simplistic view of compliance‐based approaches. Second, we discuss the importance of developing a conversation around values within organizations, enabling healthy individual growth and limiting the emergence of neurotic processes. Finally, we discuss the role of the business ethicist in facilitating such a process, suggesting a parallel between the role of the business ethicist and that of the psychoanalytic therapist. (shrink)

This paper aims to integrate insights from psychoanalytic theory into business ethics research on the sources of ethical failures within organizations. We particularly draw from the analysis of sources and outcomes of neurotic processes that are part of human development, as described by the psychoanalyst Karen Horney and more recently by Manfred Kets de Vries; we interpret their insights from a stakeholder theory perspective. Business ethics research seems to have overlooked how “neurotic management styles” could be the antecedents of unethical (...) behavior within organizations. After showing the connection between five managerial neuroses and the corresponding potential ethical failures within organizations that have been already identified within business ethics research, we suggest three organizational strategies to counteract these failures. First, we argue that managers should pay greater attention at the complexity of human motivation, avoiding the simplistic view of compliance‐based approaches. Second, we discuss the importance of developing a conversation around values within organizations, enabling healthy individual growth and limiting the emergence of neurotic processes. Finally, we discuss the role of the business ethicist in facilitating such a process, suggesting a parallel between the role of the business ethicist and that of the psychoanalytic therapist. (shrink)