The separation thesis states that business and moral decision making should and can be differentiated clearly. This study provides empirical support for the competing view that the separation thesis is impossible through a case study of the Rotary Club, which fosters an ethical orientation among its global business and professional membership. The study focuses attention on the Club in the early to middle 20th century. Based on a reading of their service doctrine, the four objects of Rotary and the Four (...) Way Test, the author argues that the example of the Rotary Club undermines the separation thesis. The Rotary message was conceptually ambiguous: it did not clearly differentiate business roles from social activities; rather both fed into each other, with the business tools developed by members and disseminated by Rotary, utilized in nonbusiness contexts with a view to enhancing societal well-being. (shrink)

Growing inequality and its implications for democratic polity suggest that corporate social responsibility has not proved itself in twenty-first century business, largely as it lacks clear criteria of demarcation for businesses to follow. Today the problem is viewed by many commentators as an ethical challenge to business itself. In response to this challenge, we begin by examining Porter and Kramer’s :64–77, 2011) call for a shift from a social responsibility to a shared value framework and the need to respond to (...) the problem of the ‘separation thesis’ between business and ethics :89–118, 1996; Harris and Freeman, Bus Ethics Q 18:541–548, 2008). We identify the eighteenth century economist and philosopher Adam Smith in his book The Theory of Moral Sentiments as a source for an ethical approach to business. Building on his central concept of ‘sympathy’, we introduce the idea of the Impartial Spectator Test, which we argue builds on traditional stakeholder perspectives and which provides an objective route to ethical criteria of demarcation. We conclude by assessing how this approach adds to the existing debate around social responsibility and shared value. (shrink)

Over the last few years, there has been an exaggeratedly widespread and frequently confused use of the concepts of 'stakeholder' and 'corporate social responsibility'. However, some interesting insights of both these notions can be found in traditional European business administration studies. In this article, the Italian view will be examined. In particular, this paper investigates the teachings of some of the historical masters of the Italian "Economia Aziendale" (EA), with particular attention to the concept of the azienda, its finalism and (...) its essential characteristics, in order to verify some consistencies with the more recent Stakeholder Management Theory (SMT). Principles and considerations seem to emerge from EA scholars' seminal works that unequivocally connect ethics with business decisions. EA fits in with SMT in many ways, and the former (EA) seems, moreover, to suggest a specific normative point of view from which the role of ethics in business activities can be approached. (shrink)

Over the last few years, there has been an exaggeratedly widespread and frequently confused use of the concepts of 'stakeholder' and 'corporate social responsibility'. However, some interesting insights of both these notions can be found in traditional European business administration studies. In this article, the Italian view will be examined. In particular, this paper investigates the teachings of some of the historical masters of the Italian "Economia Aziendale", with particular attention to the concept of the azienda, its finalism and its (...) essential characteristics, in order to verify some consistencies with the more recent Stakeholder Management Theory. Principles and considerations seem to emerge from EA scholars' seminal works that unequivocally connect ethics with business decisions. EA fits in with SMT in many ways, and the former seems, moreover, to suggest a specific normative point of view from which the role of ethics in business activities can be approached. (shrink)

Many writers in the field of business ethics seem to have accepted R. Edward Freeman’s argument to the effect that what he calls “the separation thesis,” or the idea that business and morality can be separated in certain ways, should be rejected. In this paper, I discuss how this argument should be understood more exactly, and what position “the separation thesis” refers to. I suggest that there are actually many interpretations (or versions) of the separation thesis going around, ranging from (...) semantic, empirical and reformative to some which are straightforwardly normative. While it is generally agreed that the separation thesis should be rejected, then, there is not as much agreement on what this thesis actually says. I suggest that whether or not we should<br>reject the separation thesis, however, ultimately must depend on how we understand it more exactly—on certain interpretations, the thesis comes out as more or less trivially false, but we should demand more evidence or argument to reject it on certain other interpretations. This result presents a challenge for all those writers who are committed to the rejection of the separation thesis. (shrink)

Business and society (B&S) scholarship that uses the theoretical perspective of institutionalism combines different research approaches to values. Within the B&S literature drawing on institutionalism, we identified and categorized the research on values according to a spectrum of normative and/or descriptive approaches (including both and neither approaches). Primarily, we focused on how the normative and descriptive approaches interrelate and integrate. We argue that drawing on John Dewey’s pragmatism and Philip Selznick’s institutionalism can help further an integrative approach, which holds great (...) potential for advancing theorization in the B&S field while increasing its practical relevance. (shrink)

A review of the stakeholder literature reveals that the concept of "normative core" can be applied in three main ways: philosophical justification of stakeholder theory, theoretical governing principles of a firm, and managerial beliefs/values influencing the underlying narrative of business. When considering the case of Wall Street, we argue that the managerial application of normative core reveals the imbedded nature of the fact/value dichotomy. Problems arise when the work of the fact/value dichotomy contributes to a closed-core institution. We make the (...) distinction between open- and closed-core institutions to show how in the case of the closed-core, ethical decision-making is viewed by the institution as a separate domain from the core business of the institution. The resulting blind spot stifles meaningful exchanges with stakeholders attempting to address the need for reform. We suggest in conclusion that ethical considerations are less about casting a value judgment and more about creating a process for meaningful conversation throughout an institution and its stakeholders. (shrink)

A large body of the literature on sustainability indicators, assessments and reporting is currently available. However, sustainability performance measurement systems have an insubstantial presence in the literature. Invariably, a sustainability performance measurement system presents the potential for certain trade-offs or opportunity costs for organizations. Extant sustainability platforms and standards are largely silent about how to deal with trade-offs. Utilizing evidence from the literature, as well as contingency factors, this paper seeks to present a heuristic model for establishing trade-offs in corporate (...) sustainability performance measurement systems. Trade-offs in this area revolve around performance measurement, stakeholder management, competitive advantage, as well as the vertical and horizontal integration of the performance platform. This is particularly important for organizations seeking to establish, integrate or expand their environmental management systems into the area of sustainability. As yet, formalistic attempts to deal with trade-offs in sustainability performance measurement systems are infrequent and vague. (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 introduces the concept of business-related conspiracy theories. Drawing on Aristotelian virtue ethics and undertaking a narratological and ethical analysis of 28 BrCTs found online, I emphasize that BrCTs are narratives with structures rooted in other latent macro- and meta-narratives, including centuries-old myths. In particular, I reconstruct the fictional world of BrCTs – one in which CSR and social contracts have failed – before identifying eight different types of actors as which people can morally situate themselves in their relationships (...) with business. Finally, I elaborate on the actors’ performances and their use of external and legitimate forces to end the story. The paper concludes with a discussion of potential future research to help combat BrCTs, as well as a call for the critical study of political CSR. (shrink)

Organizational ethics and institutional theories are extended by recovering Weberian and Pre-Weberian theorizing that emphasized the joining of ethics and institutional theories. Understanding how ethics and institutional systems influence each other can advance our understanding of the nature and causes of structural organizational ethics issues and help guide potential reforms. We consider the interplay of these elements during the recession of 2008–2009, highlighting how structural ethics problems may have to be addressed at the institutional levels and not solely the individual (...) or organizational levels. (shrink)

This article revisits the "harmony doctrine" school of economics and its distinctive understanding of how ethics and economics intersect. Harmony doctrine thinkers staked out a “natural” understanding of economic phenomena that in many ways fused the classical political economy of Adam Smith with the earlier French Physiocratic School. Their metaphysically grounded interpretation was largely eclipsed by the developments of utilitarian and marginalist schools by the end of the nineteenth century. Yet harmony doctrine thinking adhered to a distinct understanding of how (...) ethical processes and outcomes play out within the economic sphere that has to date gone under examined by business ethicists. This paper outlines three characteristics of harmony doctrine views: the belief in curative forces empowered to "heal" the economic order, a dichotomous interpretation of the economic realm that distinguishes the “natural” from the “artificial,” and an overarching belief in a harmonious social order actualized by cooperative interdependencies within economic enterprises. Despite falling into obscurity in the economic discipline, all these ideas found new life in intellectual currents of organizational and political thought at the turn of the twentieth century. After surveying these historical developments, this article concludes by demonstrating how harmony doctrine thinking helpfully illuminates persisting metaphysical dimensions of contemporary business ethics. (shrink)

Empirical research is largely supportive of the assertion of instrumental stakeholder theory that a positive relationship exists between “managing for stakeholders” and firm performance. However, despite considerable debate on the subject, the amount of variation across firm investments in stakeholders (stakeholder management performance) has not been adequately investigated. We address this gap using a sample of more than eighteen thousand firm-level observations over ten years. We find evidence to support an inverted U–shaped relationship between variation in stakeholder management performance and (...) Tobin’sq, suggesting that firms that have some imbalance in their stakeholder management, but not too much, perform best. We discuss the implications of our study for instrumental stakeholder theory and managerial practice. (shrink)

Fulfilling consumer expectations of corporate social responsibility can bring strategic advantage to firms. However, research on the topic is fragmented across disparate disciplines, and a comprehensive framework to connect CSR supply and demand is missing. As a result, firms often supply CSR that does not attract demand, as signified by pessimism about ethical consumerism in recent years and the inconclusive link between corporate financial and social performance. In this study, we propose a framework of strategic CSR management to define how (...) a company’s supply of CSR could meet consumer demand for ethical products by aligning managerial and consumer perspectives. We then investigate empirically whether such a strategic approach, which integrates potential demand in CSR management, would influence consumer choice of products with CSR components. Our hybrid choice modeling allows the inclusion of psychological biases caused by social desirability and cynicism to increase result validity. The findings support the explanatory power of the framework and reveal that consumers prefer some CSR elements while others adversely affect choices. This study advances the understanding of strategic CSR management and its impact on consumer choice and helps managers include the right mix of CSR characteristics in their products to satisfy ethical consumers. (shrink)

This study explores the relationship between Hofstede’s cultural dimensions and public relations practitioners’ perceptions of corporate social respon- sibility (CSR) in South Korea. The survey on Korean public relations practitioners revealed that, although Hofstede’s dimensions significantly affect public relations practitioners’ perceptions of CSR, social traditionalism values had more explanatory power than cultural dimensions in explaining CSR attitudes. The results suggest that practitioners’ fundamental ideas about the corporation’s role in society seem to be more important than their cultural values to understand (...) public relations practitioners’ CSR attitudes in Korea. (shrink)

This study explores the relationship between Hofstede’s cultural dimensions and public relations practitioners’ perceptions of corporate social respon- sibility in South Korea. The survey on Korean public relations practitioners revealed that, although Hofstede’s dimensions significantly affect public relations practitioners’ perceptions of CSR, social traditionalism values had more explanatory power than cultural dimensions in explaining CSR attitudes. The results suggest that practitioners’ fundamental ideas about the corporation’s role in society seem to be more important than their cultural values to understand public (...) relations practitioners’ CSR attitudes in Korea. (shrink)

Most management researchers pause at the threshold of objective right and wrong. Their hesitation is understandable. Values imply a “subjective,” personal dimension, one that can invite religious and moral interference in research. The dominant epistemological camps of positivism and subjectivism in management stumble over the notion of moral objectivity. Empirical research can study values in human behavior, but hard-headed scientists should not assume that one value can be objectively better than another. In this article, we invite management researchers to rethink (...) this presumption. We show how accepting at least a limited form of moral objectivity, namely, an epistemic orientation that seeks objective moral reasons, can benefit management research by 1. guiding research practice; 2. using patterns of moral objectivity as clues for formulating empirical hypotheses for psychological explanations; and 3. adding prescriptive power to empirical theories. (shrink)

Religion has significantly influenced societies throughout history and across the globe. Family firms—particularly those operating in strongly religious regions—are more likely to be subject to the influence of religion. However, little is known about the mechanisms by which religion affects business activities in family firms. We study how religion impacts business activities through a qualitative study of two Anatolian-based family firms in Turkey. We find that religion provides a dominant meaning system that plays a key role in constituting business activities (...) through three mechanisms: family imports religious practices as business practices; family adheres to religious values as a rationale for business actions; and family religious values define business taboos by avoiding the evil eye. These mechanisms highlight how religion becomes a source of well-understood business practices, how religion defines the nature of rationality that guides business activities, and how religious taboos can delimit the range of potential business activities, respectively. (shrink)

This article seeks to defend and develop a stakeholder pragmatism advanced in some of the work by Edward Freeman and colleagues. By positioning stakeholder pragmatism more in line with the democratic and ethical base in American pragmatism (as developed by William James, John Dewey and Richard Rorty), the article sets forth a fallibilistic stakeholder pragmatism that seeks to be more useful to companies by expanding the ways in which value is and can be created in a contingent world. A dialogue (...) between a defence company and peace and arbitration society is used to illustrate the main plot of this article. (shrink)

This paper argues that the notion of value has been overly simplified and narrowed to focus on economic returns. Stakeholder theory provides an appropriate lens for considering a more complex perspective of the value that stakeholders seek as well as new ways to measure it. We develop a four-factor perspective for defining value that includes, but extends beyond, the economic value stakeholders seek. To highlight its distinctiveness, we compare this perspective to three other popular performance perspectives. Recommendations are made regarding (...) performance measurement for both academic researchers and practitioners. The stakeholder perspective on value offered in this paper draws attention to those factors that are most closely associated with building more value for stakeholders, and in so doing, allows academics to better measure it and enhances managerial ability to create it. (shrink)

Abstract:Business ethicists are eager to connect the ethical treatment of stakeholders with financial rewards. However, little attention has been paid to the cultural and industry context that influences how stakeholders are regarded by the firm, and how innovative strategies for engaging stakeholders can help a firm outperform its competitors. By reconnecting stakeholder theory to its roots in the field of strategy, we provide a framework for understanding the dynamic interplay between stakeholder relationships, innovation, and competitive advantage. The result is a (...) set of testable propositions aimed at better characterizing when and how “ethics pays” (Paine 2003). (shrink)

Abstract:Business ethicists are eager to connect the ethical treatment of stakeholders with financial rewards. However, little attention has been paid to the cultural and industry context that influences how stakeholders are regarded by the firm, and how innovative strategies for engaging stakeholders can help a firm outperform its competitors. By reconnecting stakeholder theory to its roots in the field of strategy, we provide a framework for understanding the dynamic interplay between stakeholder relationships, innovation, and competitive advantage. The result is a (...) set of testable propositions aimed at better characterizing when and how “ethics pays” (Paine 2003). (shrink)

This paper provides an alternative theoretical conceptualisation of corporate social responsibility (CSR) in order to further our understanding of prosocial organisational behaviour. We argue that consumption provides a perspective that enables theorists to escape the confines of existing CSR literature. In our view the organisation is re-imagined as an arena of consumption where employees are engaged in a quest for value, constructing and confirming their identities as consumers. Using the award-winning tour operator Laskarina Holidays as an illustrative case, it is (...) suggested that CSR can provide combinations of functional, social, emotional, epistemic and conditional value. This new perspective on CSR facilitates the coexistence of a plurality of values that are relativistically constructed and narrativised by organisational stakeholders. Our consumption paradigm provides a thought provoking means of reconciling divergent perspectives and encourages further interdisciplinary research. We argue that future research should begin, not by asking the question of why organisations assume responsibility, but by contemplating the notion of why organisations consume responsibility. (shrink)

The popularity of the stakeholder model has been achieved thanks to its powerful visual scheme and its very simplicity. Stakeholder management has become an important tool to transfer ethics to management practice and strategy. Nevertheless, legitimate criticism continues to insist on clarification and emphasises on the perfectible nature of the model. Here, rather than building on the discussion from a philosophical or theoretical point of view, a different and innovative approach has been chosen: the analysis will return to the origin (...) of stakeholder theory and will keep the graphical framework firmly in perspective. It will confront the stakeholder model’s graphical representation to the discussion on stakeholder definition, stakeholder identification and categorisation, to re-centre the debate to the strategic origin of the stakeholder model. The ambiguity and the vagueness of the stakeholder concept are discussed from managerial and legal approaches. The impacts of two major shortcomings of the popular stakeholder framework are examined: the boundaries and the level of the firm’s environment, and the ambivalent position of pressure groups and regulators. Working pragmatically, with a focus on the managerial and organisational perspective, an attempt is made to clarify the categorisations and classifications by introducing new terminology with a distinction between stakeholders, stakewatchers and stakekeepers. The analysis will finally lead to a proposed upgraded and refined version of the stakeholder model, with incremental ameliorations close to Freeman’s original model and a return of focus to its essence, the managerial implications in a strategic approach. (shrink)

Will stakeholder theory continue to transform how we think about business and society? On the occasion of this journal’s 60th anniversary, this review article examines the journal’s role in shaping stakeholder theory to date and suggests that it still has transformative potential. We conducted a bibliometric analysis of co-citations in the literature from 1984 to 2020. Reporting these results, we examine the field’s evolving structure. Contextualized theoretically as an accomplishment of institutional work—the creation of a meaningful and innovative field ideology—this (...) structure is remarkable for how it integrates ethical and behavioral arguments, invites engagement from adjacent domains, and arrives at important insights for business and society. We advance a research agenda consistent with this larger institutional project. (shrink)

In this article, I argue that if we challenge some tacit assumptions of narrow rationality that endure in much of entrepreneurial studies, we can elevate entrepreneurial ethics beyond mere external constraints on rational action, and move toward fuller integration of ethics as an intrinsic part of the process of value creation itself. To this end, I propose the concept of practical wisdom as a framework for exploring entrepreneurial decision making and action that can broaden the scope of our research to (...) recognize entrepreneurship as an inherendy normative enterprise. Specifically, I suggest that a framework built upon a concept of practical wisdom enables us to adopt a richer and more complex view of entrepreneurial decision making that is well suited to the dynamic and uncertain context of entrepreneurship. Further, this framework enriches our view of entrepreneurial ethics to include consideration of the personal character, values, and purpose of the entrepreneur. By examining entrepreneurship through a lens of practical wisdom, we can open up new avenues of fruitful inquiry for scholars of entrepreneurship. (shrink)

We theorize that, in the current development of business ethics, there is a fruitful evolution that dissolves the dichotomy between the normative and behavioral research approaches developed, respectively, by philosophers and social scientists; this approach avoids many of the limitations originated by such distinction by reconnecting their two separate narratives. We call this emerging research model Humanistic Business Ethics (HBE) as it emphasizes the centrality of the human dimension of business and the importance of adopting a richer concept of humanity (...) in business ethics research. We argue that this specific research model in business ethics emerges when scholars combine a pragmatist philosophical approach with some key ideas coming from stakeholder theory, which we summarize and connect. By leveraging collaboration across ethics, economics, psychology, and entrepreneurship, HBE can help business and society scholars undertake fruitful inquiries into the way business works (and should work) at its best. (shrink)

ABSTRACT:Central to the United Nations Framework setting out the human rights responsibilities of corporations proposed by John Ruggie is the principle that corporations have a responsibility to respect human rights in their operations whether or not doing so is required by law and whether or not human rights laws are actively enforced. Ruggie proposes that corporations should respect this principle in their strategic management and day-to-day operations for reasons of corporate (enlightened) self-interest. This paper identifies this as a serious weakness (...) and argues that identifying the responsibility to respect human rights as an explicitly ethical obligation to be respected for that reason would provide a much stronger justificatory foundation for respecting the principle seen from a corporate perspective, given that corporations are accountable to their shareholders for their deployment of the firm’s financial resources. (shrink)

This paper revisits the “morality pays” approach to answering the “Why be moral?” question in business. First I argue that “morality pays” is weakest when it needs to be strongest, and thus inadequate to the task. Then I examine and reject a proposed virtue-ethics alternative, arguing that it either collapses into “morality pays” or else introduces a new problem. After sketching an account of moral reasons, I go on to argue that “morality pays” can be reframed, not so much as (...) an answer to “Why be moral,” but as a prescription for reforming corporate institutions. (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)

Social entrepreneurship is not just an objective description of a phenomenon; it also carries a positive normative connotation. However, the academic discourse barely reflects social entrepreneurship’s inherent normativity and often grounds it implicitly on the mission of a social enterprise. In this paper, we argue critically that it is insufficient to ground social entrepreneurship’s inherent normativity on a social mission. Instead, we will show how such a mission-centric conception of social entrepreneurship, when put into practice, is prone to enhance rather (...) than diminish societal grievances. In order to give social entrepreneurship an explicit and sound ethical grounding, we draw on integrative economic ethics as a frame of reference. From this perspective, social entrepreneurship necessitates adherence to the discourse-ethically reasoned moral principle in order to live up to its inherent normative validity claim of good entrepreneurship. The consideration of social entrepreneurship practices is crucial to make this approach less vulnerable to ethical critique. The addition of a practice dimension overcomes the mission-centric view of social entrepreneurship and opens up a typology of enterprise forms, thereby enabling a more fine-grained distinction between social enterprises and other forms of organization. (shrink)

This research shows how business students’ disciplinary specializations can affect their sense of personal responsibility by providing rationalizations for moral disengagement. It thereby conceptualizes business students’ disciplinary specializations as a key dimension of the business school responsibility learning environment. Students use four main rationalizations to displace responsibility variously away from their own disciplinary specializations, to claim responsibility as the prerogative of their specialization, and to shiftirresponsibility onto disciplinary out-groups. Yet despite their disciplinary identifications, students largely rationalized that their sense of (...) responsibility was an individual matter that was unlikely to be affected by contextual influences, and they attributedirresponsible behavior to incorrigible ‘bad apples.’ A theoretical model is offered which illustrates these dynamics by combining Bandura’s social cognitive theory with social identity theory. The research is based on secondary data, specifically focus-group interviews conducted with undergraduate students at a major Scandinavian business school in connection with the implementation of the UN Principles for Responsible Management Education (PRME) initiative. The implications for management education include the need to strengthen students’ ‘disciplinary reflexivity,’ and to explicitly address the tension between students’ disciplinary solidarities and their faith in their own individual moral infallibility. (shrink)

This article is about the relationship between business and ethics in academic research. The purpose of this investigation is to examine the status of the separation and the integration theses. In the course of this article, I defend the claim that neither separation nor integration is entirely accurate; indeed they are both potentially confusing to our audience. A strategy of reconciliation of normative and descriptive approaches is proposed. The reconciliation project does not entail synthesizing or dividing prescriptive and empirical approaches, (...) but rather respecting the identity of both inquiries, while recognizing the limitations they place on each other. The research agenda of the reconciliation project is discussed. (shrink)

While many scholars agree that the ‘‘separation thesis’’ (Freeman in Bus Ethics Quart 4(4):409–421, 1994)—that business issues and ethical issues can be neatly compartmentalized—is harmful to business ethics scholarship and practice, they also conclude that eliminating it is either inadvisable because of the usefulness of the positive/ normative distinction, or actually impossible. Based on an exploration of the fact/value dichotomy and the pragmatist and virtue theoretic responses to it, we develop an approach to eliminating the separation thesis that integrates ‘‘business’’ (...) with ‘‘ethics’’ while still permitting a positive/ normative distinction, which we call ‘‘ethics from observation.’’. (shrink)