The virtue of moral psychology is that it emphasizes what is most human in business, as opposed to the more bloodless conceptsof “obligation,” “duty,” “responsibility” and rights.” The heart of moral psychology is to be found in such concrete phenomena as fear, love, affection, antipathy, loyalty, jealousy, anger, resentment, avarice, ambition, pride, and cowardice. In this essay, I want to explore two of the core virtues of the corporation, conceived of as a community, the “sentiments” of care and compassion. These (...) were taken to be the very core of ethics by Adam Smith. I want to distinguish care and compassion from each other and both from the more principled and rule-bound conceptions of ethics that still dominate philosophy. (shrink)

The virtue of moral psychology is that it emphasizes what is most human in business, as opposed to the more bloodless conceptsof “obligation,” “duty,” “responsibility” and rights.” The heart of moral psychology is to be found in such concrete phenomena as fear, love, affection, antipathy, loyalty, jealousy, anger, resentment, avarice, ambition, pride, and cowardice. In this essay, I want to explore two of the core virtues of the corporation, conceived of as a community, the “sentiments” of care and compassion. These (...) were taken to be the very core of ethics by Adam Smith. I want to distinguish care and compassion from each other and both from the more principled and rule-bound conceptions of ethics that still dominate philosophy. (shrink)

Corporations are often considered as moral agents. Traditional ethical systems are directed toward human beings—how could human rules be expected to apply to corporations? In this paper an alternative system of ethics is proposed, tailored specifically for the corporate entity. I use the method of Aristotle, in which the character traits that are conducive to the goal of human activity, happiness, are derived. For corporations, the goal is taken to be the traditional capitalist one of sustainable profit, and corresponding corporate (...) virtues are derived. I argue that corporate virtues such as Efficient Production, Resource Management, Correct Pricing, and Right Relationship will be beneficial to human beings. It is profitable to consider the interests of human beings, because thecorporation will avoid a costly war of offense and retaliation. A corporate ethics is developed that protects humans and has motivating force not based on human nature, but rather profit. (shrink)

In arguing against the view that the ethical standards for business are separate from normal interpersonal standards, virtue theory has been applied to business ethics in a limited manner. Previous virtue theorists have argued that this separation need not occur because the virtues for succeeding in business are congruent with civic and personal virtues. However, they have neglected the fact that virtue theory stresses that virtues are formed to fulfil certain desires, ends, and purposes of the person. Since ends are (...) formed within a community, business and corporations should view themselves as members of the community which contributes to the ethical development of its individuals. Hence, I argue that business cannot have a separate standard of ethical behaviour than that of its community, because its goals are means which are subordinate to the ultimate goal of individual and community flourishing. (shrink)

This paper develops and explores a pedagogical innovation for integrating virtue theory into business students' basicunderstanding of general management. Eighty-seven students, in 20 groups, classified three managers' real-time videotaped activitiesaccording to an elaboration of Aristotle's cardinal virtues, Fayol's management functions, and Mintzberg's managerial roles. The study's empirical evidence suggests that, akin to Fayol's functions and Mintzberg's roles, Aristotle's virtues are also amenable to operationalization, reliable observation, and meaningful description of managerial behavior. The study provides an oft-called-for empirical basis for further (...) work in virtue theory as an appropriate conceptual framework for the study and practice of management. The results indicate that virtue theory may be used to re-conceive our fundamental understanding of management, alongside its capacity to weigh moral judgment upon it. implications and suggestions for future research are discussed. (shrink)

Recent years have seen dramatic changes in the attitudes and expectations brought to bear on companies. Over ten years of research at MORI has shown the increasing prominence of corporate responsibility for a wide range of stakeholders, from consumers and employees to legislators and investors.

This paper discusses internal dynamics of the firm that contribute to the failure of knowledge conditions, using the Enron scandal as a case study. Ability of the board to effectively monitor conduct at operational levels includes various dynamics: senior management being isolated from those at operational levels; individuals pursuing subgoals that are contrary to overall corporate goals; information flow along a narrow linear channel that effectively forecloses adverse information from getting to senior management; a corporate culture of intimidation, discouraging open (...) expressions of doubt or skepticism, resulting in reluctance to challenge senior officials, and pushing the limits of ethics and the law.Elements of information blockage in the corporation include: the "law of diminishing control"; deliberate concealment of information by officers; motivation to report to the boss what one perceives the boss wants to hear; theory of "bounded rationality" that explains surprising role of irrationality in decisionmaking – unconscious emotions and motivations. Discussion of behavioralist studies of cognitive dissonance, belief perseverance, confirmatory bias, entity effect, motivated reasoning, group cohesion or "groupthink," and the false consensus effect. Problem of overoptimism – tendency of many people to overrate their own abilities, contributions and talents – and tendency toward puffery and dismissal of risks in formulating disclosures and press releases. (shrink)

Logical and moral arguments have been made for the organizational importance of ethos or virtuousness, in addition to ethics and responsibility. Research evidence is beginning to provide, empirical support for such normative claims. This paper considers the relationship between ethics and ethos in contemporary organizations by summarizing emerging findings that link virtuousness and performance. The effect of virtue in organizations derives from its buffering and amplifying effects, both of which are described.

This paper develops a meta-theory of business based on virtue theory which links the concept of virtues, the common good, and the dynamic economy into a unifying and comprehensive theory of business. Traditional theories and models of business have outlived their usefulness as they are unable to adequately explain social reality. Virtue theory shows firms that pursue ethically-driven strategies can realise a greater profit potential than those firms who currently use profit-driven strategies. The theory expounds that the business of business (...) is ethical business and that the crises that business and society face today are crises of leadership and ethics. The issues of leadership and corporate social responsibility are discussed in the context of the proposed theory. (shrink)

Are our efforts to help others ever driven solely by altruistic motivation, or is our ultimate goal always some form of self- benefit (egoistic motivation)? This volume reports the development of an empirically-testable theory of altruistic motivation and a series of experiments designed to test that theory. It sets the issue of egoism versus altruism in its larger historical and philosophical context, and brings diverse experiments into a single, integrated argument. Readers will find that this book provides a solid base (...) of information from which questions surrounding the existence of altruistic motivation can be further investigated. (shrink)