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)

The purpose of this paper is to analyze the virtue of temperance as a moral competence in professional performance. The analysis relies on three different streams of literature: virtue ethics, positive psychology and competency-based management. The paper analyzes how temperance is defined in each of these perspectives. The paper proposes an integrative definition of temperance as “moral competence” and summarizes behaviors in business environments in which temperance plays a role.

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)

This paper extends an ongoing discussion about establishing a sharper way to conduct ethical investigations into managerial virtue. It does so by relying on Alasdair MacIntyre's moral philosophy in place of those more dominant approaches taken by scholars who make up the field of positive social science. A connection is drawn herein between a MacIntyrean “narrative approach” to investigating managerial virtue and the idea of “work as a calling.” Specifically, it will be argued that the MacIntyrean‐influenced idea of “work as (...) a calling” provides a substantive moral vision that supports an understanding of how virtuous managers ought to narrate their primary workplace motivations. Ultimately, virtuous managers fulfill a “political calling” to support and sustain (a) good work, (b) the good of individual lives, and (c) the common good of communities that their organization reaches. To do this, they must rely on the “shepherd virtue” of practical wisdom (phronesis). Practical wisdom aids virtuous managers’ thinking about achieving the ends of their “calling” as well as any necessary course‐corrections that ought to be made toward the better achievement of those good and worthy ends. (shrink)

This paper urges contemporary Business Ethicists to reconsider the relationship between habit and virtue in the light of recent debates between contemporary philosophers and scientists. Synthesizing insights from current Neuroscience, from twentieth century American Pragmatism and from nineteenth century French Aristotelianism, this emergent intellectual tradition proposes a dynamic account of habit’s embodiment which we will first describe and then advocate. Two recurring suggestions within this habit renaissance are of particular relevance to Business Ethicists: firstly, that there is a ‘plastic’ structure (...) pertaining to habit and, secondly, that there is a processual ‘double-law of habituation’. Taken together, these accounts of habit and habituation provide virtue ethicists with a basis for claiming analytic and pragmatic authority within applied ethics debates in general and within Business Ethics debates in particular. We develop this argument in three steps. Firstly, we elaborate upon why habits are said to be plastic and why the process of habituation is said to be characterised by a double-law. Secondly, we distinguish this account of habit’s relationship to virtue from, and where necessary defend it against, the influential articulations of the habit: virtue relationship provided by situationism, by deontology and by communitarianism, respectively. Finally, we draw practical lessons from the initial elaborations made in the argument’s first step, and the subsequent clarifications provided in its second step, by announcing seven characteristics of highly effective virtue habituation projects. (shrink)

Ethical networks are an emerging form of social alliance based on collaboration between organizations that share a common ethical commitment. Grounded in a theoretical framework of virtue-based business ethics and focusing on nonprofit alliances, this study investigates the virtuousness of ethical networks; that is, how they trigger virtuous practices in their member nonprofit organizations. Adopting a qualitative grounded theory approach, the study focuses on one of the largest Italian ethical networks of nonprofit organizations operating in the social care sector. The (...) findings show that shared ethical values and religious beliefs are positively associated with ethical network building. Based on these findings, a circular model of virtuousness is proposed in which ethical networks foster virtuous practices among their members at four levels: (1) the strategic orientation level, (2) the institutional level, (3) the organizational level, and (4) the relational level. At each of these levels, ethical networks foster a habituation to virtues and the propagation of virtuous behaviors among their members. Theoretical, practical, and social implications of the research findings are discussed. (shrink)

Business Ethics: A European Review, EarlyView.

Aristotle's doctrine of the mean states that a virtue is the mean state between two vices: a deficient and an excessive one. The Corporate Ethical Virtues Model defines the mean and the corresponding deficient vice for each of its seven virtues. This paper defines for each of these virtues the corresponding excessive vice and explores why organizations characterized by these excessive vices increase the likelihood that their employees will behave unethically. The excessive vices are patronization, pompousness, lavishness, zealotry, overexposure, talkativeness, (...) and oppressiveness. (shrink)

This article analyzes in detail the virtue of practical wisdom as described by Thomas Aquinas, and on this basis it develops a comprehensive framework to enrich Authentic Leadership theory, establishing the virtue of practical wisdom as foundational for the authentic leader’s behavior and character development, and highlighting shortfalls that may stem from vices opposed to it. The goal of the article is twofold: First, it seeks to fill a void on the role of virtues –and in particular practical wisdom– in (...) leadership studies; second, it aims to show how cultivating the virtue of practical wisdom as described by Aquinas promotes the development of exactly those traits that are characteristic of an authentic leader, offering a set of propositions delineating these correlations. (shrink)

So far, the field of business ethics lacks validated measures for assessing virtues at the organizational level. The aim of this study is to investigate the measurement invariance of a shortened Corporate Ethical Virtues scale. In this manner, we contribute to validating an instrument that is both psychometrically sound and efficient to use. We conducted two survey studies of two independent groups (managers and school psychologists). Confirmatory factor analysis supported the eight‐factor model of the scale, and we found it to (...) be invariant in two different occupational groups. The managers gave higher appraisals of ethical culture than the psychologists did in seven out of the eight dimensions. We found that despite the contextual differences, the shortened scale measures the eight dimensions of organizational ethical virtues, as intended. Thus, the use of this more compact scale can be recommended for future studies, which will hopefully stimulate more research on ethical culture in various work contexts. (shrink)

Business Ethics: A European Review, EarlyView.

Business Ethics: A European Review, EarlyView.

The compliance-based approach and the integrity approach have been the mainstream responses to corporate scandals. This paper proposes that, despite each approach comprising necessary elements, neither offers a comprehensive solution. Compliance and integrity, far from being mutually exclusive, reinforce each other. Working together, in a correct relationship, they build a harmonized system that yields positive synergies and which also advocates prudence. It enables the generation of a culture of compliance that tends to minimize the technical and ethical errors in decision (...) making. In order to explore an applied harmonized approach, we analyze the audit committee, a specific and broadly accepted regulatory instrument. Formed by non-executive members, regulation requires these members to be dedicated, qualified, and independent as a guarantee of efficiency. We show how the compound of those elements produces positive effects in a context of solid governance. We conclude that it is the strong relationship between efficiency and prudence, in the creation of a culture of compliance, which enables the minimization of errors. (shrink)

We extend the Theory of Planned Behavior (TPB) for ethics in the workplace. Using a path modeling methodology, we find evidence that, for ethics, moral disengagement is an antecedent to the TPB predictors of attitude, subjective norms, and perceived behavioral control (PBC). We show that the TPB predictors mediate the influence moral disengagement has on ethical behavioral intentions. Thus, to improve ethical behavior, reducing moral disengagement is critical. We find support for including both types of PBC (self-efficacy and locus of (...) control) when modeling ethical behavior. We use four ethics scenarios and international data to test this model. We also evaluate potential positive influences on ethics in the workplace and find that recency of ethics training interacts with religiosity and activates it to reduce moral disengagement. We also find that principles-based ethics training enhances professionals’ self-efficacy to behave ethically. Experience, including time as a member in a professional accounting organization, increases both locus of control and self-efficacy to behave ethically. These variables—recency of ethical training, religiosity, principles-based professional ethics training, and experience—influence parts of the core TPB model, which in turn lead to improved ethical behavioral intentions. (shrink)

This paper introduces ‘Virtue and Virtuousness: When will the twain ever meet?’ a special edition of Business Ethics: A European Review. The Call for Papers invited contributions that could inform the relationship between organisational virtuousness, as conceptualised by positive organisation studies, and the classical conception of virtues pertaining to individual women and men. While the resources of particular virtue traditions – Aristotelian, Catholic, Confucian, and the like – could inform their own debates as to whether virtue extends beyond individuals, the (...) debate between virtue traditions and positive organisation studies has a different dimension. The question is whether the claims of positive social sciences as such are compatible with those of any virtue tradition. We argue that positive social science and virtue traditions are indeed rivals such that adherence to the claims of the one precludes adherence to the other. Resolution to such conflicts requires that one tradition is able to resolve questions that exhaust the resources of the other. This paper suggests that at least one area of incoherence in the findings of positive social sciences can be resolved by virtue traditions, and introduces the remaining papers in the special edition. (shrink)

Business Ethics: A European Review, EarlyView.

We define humility as the ability to realistically assess one’s limitations and strengths. Unlike other moral virtues, humility has been found distinctively difficult to acquire. Our paper makes two significant contributions. Although the role and importance of humility have been clearly established in the literature, our paper is the first to empirically test a theoretically-posited inter-relationship between humility and the moral virtues. Our paper empirically tests this relationship, specifically between humility and the social virtues with the personal virtues acting as (...) a mediator. The second contribution of our paper is to present the design and delivery of a humility-embedded pedagogical teaching and learning approach using a professional ethics course. Essentially, we are suggesting a methodology that make ethics education more effective. We follow Sims and Felton : 297–312, 2006) analytical framework that incorporates targeted learning outcomes, environment, processes, and experience facilitated through a student-led pedagogical approach. We utilize the concept of “critical consciousness”, developed by Jagger and Volkman : 177–185, 2013), which is captured through the mechanisms of a Student Learning Portfolio and a Process-Oriented-Guided-Enquiry approach. Both these mechanisms incorporate critical self-reflection and the application of knowledge derived from experience. Our findings have significant implications for the effective teaching of ethics, and more generally for business and management education. (shrink)

Phronesis is essential for good decision‐making and actions. This literature review shows how phronesis has been discussed and related to elements of the field of administration and organizations. A search in the database systems Scopus, EBSCO, Web of Science, and Scielo, based on eligibility criteria, resulted in 43 theoretical and 14 empirical works. The analysis of these studies showed the most significant empirical contributions, the most cited authors, methods, journals, and central themes addressed in studies on phronesis to understand ethics (...) in business. From a virtue ethics perspective, we discuss the major theoretical and empirical contributions, as well as the implications of a restricted understanding of phronesis when it is treated apart from other elements of the virtue ethics framework. We present a synthesis of the concepts of phronesis, based on dimensions of magnitude and amplitude of the conceptions, ranging from formal to substantive phronesis, and covering individual, organizational, or societal levels of analysis. We argue that a substantive conception of phronesis within virtue ethics may improve our understanding of ethics because it assumes the interdependence of phronesis and moral virtues, integral anthropology, and the common good. We present a future research agenda, considering the study's limitations and findings. (shrink)