The Greek philosopher Aristotle, writing over two thousand years before Wall Street, called people who engaged in activities which did not contribute to society "parasites." In his latest work, renowned scholar Robert C. Solomon asserts that though capitalism may require capital, but it does not require, much less should it be defined by the parasites it inevitably attracts. Capitalism has succeeded not with brute strength or because it has made people rich, but because it has produced responsible citizens and--however unevenly--prosperous (...) communities. It cannot tolerate a conception of business that focuses solely on income and vulgarity while ignoring traditional virtues of responsibility, community, and integrity. Many feel that there is too much lip-service and not enough understanding of the importance of cooperation and integrity in corporate life. This book rejects the myths and metaphors of war-like competition that cloud business thinking and develops an "Aristotelean" theory of business. The author's approach emphasizes several core concepts: the corporation as community, the search for excellence, the importance of integrity and sound judgment, as well as a more cooperative and humane vision of business. Solomon stresses the virtues of honesty, trust, fairness, and compassion in the competitive business world, and confronts the problem of "moral mazes" and what he posits as its solution--moral courage. (shrink)

Distributive, procedural, and interactional justice are constructs that are increasingly being recognized as important factors that affect individual perceptions in the workplace environment. This paper presents a theoretical perspective that suggests that justice is perceived through a subjective lens that consists of individualized beliefs and proposes that cultural attributes and demographic characteristics play an integral part in determining the perception of justice. The distinctions between these three constructs are presented in context with the core beliefs of individual employees – affected (...) by a multitude of perceptual and demographic factors that we briefly identify herein. Based on the theoretical perspective, an instrument that measures the constructs of justice as perceived by individuals was developed. With a focus on justice within the business setting, hypotheses about attitudes related to justice were tested. Survey results confirm that the three constructs of justice are distinct but correlated. Significant differences were found in the perceptions of African-American respondents with regard to procedural justice. Although the empirical findings do not support all the hypotheses, this research highlights the need for further development of measures to assess the perception of justice in business settings and at an applied level, underscores the importance of recognizing cultural attributes and demographic characteristics in understanding how justice is perceived. (shrink)

Distributive, procedural, and interactional justice are constructs that are increasingly being recognized as important factors that affect individual perceptions in the workplace environment. This paper presents a theoretical perspective that suggests that justice is perceived through a subjective lens that consists of individualized beliefs and proposes that cultural attributes and demographic characteristics play an integral part in determining the perception of justice. The distinctions between these three constructs are presented in context with the core beliefs of individual employees – affected (...) by a multitude of perceptual and demographic factors that we briefly identify herein. Based on the theoretical perspective, an instrument that measures the constructs of justice as perceived by individuals was developed. With a focus on justice within the business setting, hypotheses about attitudes related to justice were tested. Survey results confirm that the three constructs of justice are distinct but correlated. Significant differences were found in the perceptions of African-American respondents with regard to procedural justice. Although the empirical findings do not support all the hypotheses, this research highlights the need for further development of measures to assess the perception of justice in business settings and at an applied level, underscores the importance of recognizing cultural attributes and demographic characteristics in understanding how justice is perceived. (shrink)

A number of business writers have argued that business is a game and, like a game, possesses its own special rules for acting. While we do not normally tolerate deceit, bluffing is not merely acceptable but also expected within the game of poker. Similarly, lies of omission, overstatements, puffery and bluffs are morally acceptable within business because it, like a game, has a special ethic which permits these normally immoral practices. Although critics of this reasoning have used deontological and utilitarian (...) arguments to show that deceit in business is just an immoral as it is in any other realm of human practice, little attention has been paid to the fact that the argument is one of analogy. The analogical argument for business' special ethic is only as strong as the alleged similarities between business and game-playing. This paper argues that this analogy is quite weak and incapable of either providing much insight into business or of offering a reason to think that the ethics of business are, or even could be, like those of a game. (shrink)

During the past ten years Integrative Social Contracts Theory (ISCT) has become part of the repertoire of specialized decision-oriented theories in the business ethics literature. The intention here is to (1)␣provide a brief overview of the structure and strengths of ISCT; (2) identify recurring themes in the extensive commentary on the theory including brief mention of how ISCT has been applied outside the business ethics literature; (3) describe where research appears to be headed; and (4) specify challenges faced by those (...) who seek to reform ISCT. Key themes in the critiquing literature relate to (a) the identification process for hypernorms; (b) justification of the recognition of hypernorms; (c) proposals for considering meso or meta norms; (d)␣clarification of the relationship between stakeholder concepts and ISCT; (e) problems with potentially unoccupied moral free space; (f) sources of ethical obligation within the ISCT framework; and (g) the potential role for concepts of stakeholder dialogue and engagement. (shrink)

This study is a comparison of the validity of theory of reasoned action and theory of planned behavior as applied to the area of moral behavior (i.e., illegal copying of software) using structural equation modeling. Data were collected from 181 university students on the various components of the theories and used to asses the influence of attitude, subjective norm, and perceived behavioral control on the intention to make unauthorized software copies. Theory of planned behavior was found to be better than (...) the theory of reasoned action in predicting unethical behavior. A modified version of the theory of planned behavior, with a causal path linking subjective norm to attitude, provided a significant improvement on model fit. The results indicated that perceived behavioral control is a better predictor of behavioral intention then attitude. The direct effect of subjective norm on behavioral intention was not significant, but the indirect effect through attitude was highly significant. Applicability of the theory of planned behavior for moral behavior and the implications for future research are discussed. (shrink)

Trust within a secular or organizational context is much like the concept of faith within a religious framework. The purpose of this article is to identify parallels between trust and faith, particularly from the individual perspective of the person who perceives a duty owed to him or her. Betrayal is often a subjectively derived construct based upon each individual's subjective mediating lens. We analyze the nature of trust and betrayal and offer insights that a wise believer might use in understanding (...) his or her relationship with the divine. We suggest that the parallels between trust and faith involve a willingness to relinquish one's power or control in the expectant hope that our needs will be met. Betrayal, however, is often profoundly misunderstood. (shrink)

Theories of leadership have traditionally focused on leadership traits, styles, and situational factors that influence leader behaviors. We propose that The Four Umpires Model described herein, which examines how four leadership types view reality and perception, provides a useful example of an effective steward leader. We use the Five Beliefs Model identified by Edgar Schein and Peter Senge to frame the implicit assumptions underlying the core beliefs and mental models of each of the four umpires. We suggest that the stewardship (...) model of Umpire Number Four, the Facilitating Idealist, is the best model for leadership of the four umpires described. In our review of the Four Umpires Model we also explain why it is importance for every leader to thoughtfully assess the assumptions that form the ethical basis for leadership decisions and actions. (shrink)

Although trust has been widely recognized as a vital component ofrelationships and a critical element to the success of organizations,the literature describing trust and trustworthiness is known for itsvarying perspectives and its inconsistencies. Trustworthiness has beenidentified as a condition precedent to the development of trust.Building upon the established constructs of interpersonaltrustworthiness, we propose a related model containing the sevenconstructs of Competence, Legal Compliance, Responsibility to Inform,Quality Assurance, Procedural Fairness, Interactional Cour-tesy, andFinancial Balance. Citing evidence from trust-related literature, weidentify the utility (...) of these seven constructs in encompassingorganizational trustworthiness as a subjectively perceived aspect oforganizational effectiveness. We analyzed questionnaire data andconducted comparative world-region analyses. (shrink)

. American businesses and corporate executives are faced with a serious problem the loss of public confidence. Public criticism, increased government controls, and growing expectations for improved financial performance and accountability have accompanied this decline in trust. Traditional approaches to corporate governance, typified by agency theory and stakeholder theory, have been expensive to direct and have focused on short-term profits and organizational systems that fail to achieve desired results. We explain why the organizational governance theories are fundamentally, inadequate to build (...) trust. We advance a conceptual framework based on stewardship theory characterized by “covenantal relationships” and argue that design of governance mechanisms using a covenantal approach is more effective in building trust in organizations. A covenantal relationship is a specialized form of a relational contract between an employee and his or her organization. We argue that regardless of incentives and control mechanisms carefully designed through contractual mechanisms, in the absence of covenantal relationships it is extremely difficult to build trust within organizations. We propose that organizations are more likely to build trust – both at the organizational level and at the interpersonal level – when they create reinforcing and integrated systems that honor implied duties of “covenantal relationships.”. (shrink)

Leaders in today's world face the challenge of earning the trust and commitment of organizational members if they expect to guide their companies to success in a highly competitive global context. In this article, we present empirical results indicating that when leadership behaviors are perceived as trustworthy through the observer's mediating lens, trust increases and leaders are more likely to be viewed as ethical stewards who honor a higher level of duties. This article contributes to the growing body of literature (...) about the importance of ethical stewardship in the trust relationship. (shrink)

Great leaders are ethical stewards who generate high levels of commitment from followers. In this paper, we propose that perceptions about the trustworthiness of leader behaviors enable those leaders to be perceived as ethical stewards. We define ethical stewardship as the honoring of duties owed to employees, stakeholders, and society in the pursuit of long-term wealth creation. Our model of relationship between leadership behaviors, perceptions of trustworthiness, and the nature of ethical stewardship reinforces the importance of ethical governance in dealing (...) with employees and in creating organizational systems that are congruent with espoused organizational values. (shrink)

In the field of business ethics, expositions of ethical theory have tended to focus on deontology and utilitarianism. More inclusive reviews of ethical theory tend to be historical and unsystematic. This paper approaches the task of representing the variety of ethical theories systematically. It does so by constructing a schema of possibilities in ethical theory which maps out six "voices", or theoretical positions, all of which are relevant and important for understanding ethics in business. This approach helps to account for (...) the continual presence of dilemmas and conflicts in ethics. (shrink)

The relationship between ethics and trust is ambiguous as ethics can promote trust, whilst trust can simultaneously be abused resulting in unethical behaviour. In this contribution to the debate on trust and ethics the focus is specifically on the role that ethics can play in facilitating trustworthiness. The article starts with a definition of the concept trustworthiness. It then reports on an empirical longitudinal study on trustworthiness that was conducted in a South African company in the insurance industry. The facilitators (...) of trustworthiness that were identified in this study and their relative contributions to trustworthiness are then discussed. Finally the implications of these findings for the ethical conduct of managers are discussed. It is demonstrated how ethical managerial conduct can enhance the trustworthiness of managers. (shrink)

The debate on sustainable globalized development rests on two clearly stated economic assumptions: that "development" proceeds, solely and inevitably, through industrialization and the proliferation of capital intensive high-technology, towards the creation of service sector economies; and that globalization, based on a neoliberal, capitalist, free market ideology, provides the only vehicle for such development. Sustainability, according to the proponents of globalized development, is merely a function of market forces, which will generate the solutions for all problems including the environmental dilemmas that (...) loom over the globe today. The social focus of globalized development is clearly the "individual" and the much-touted goal of development in the context of these debates, is the emancipation of the individual from want. This glorification of the individual, so characteristic of the Enlightenment, has defined all aspects of modernity, leading to approaches that are self-focused and that give little thought to the needs of society or even the social context. The increasing impoverishment of human life and the growing environmental degradation, however, provide a poignant counterpoint to this onrush of capital interests, demanding a reassessment of sustainability separate from the logic of industrialization and globalized development. This paper examines the unfolding of the logic of capitalism, which underlies the structure of the Rostowian model of development and the problems in the assumptions underlying today''s globalized development process. The evident impossibility of sustainability in the current growth-based market system leads to the examination of alternatives including a reflexive understanding of the choices and the inclusion of opportunity costs, related to the social, environmental and economic aspects of decision making. The integration of all factors of production into the logic of development provides a sustainable alternative to the current system. (shrink)

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)

Hosmer's fourth edition of The Ethics of Management provides business students (future managers) with a very specific analytical process for understanding and resolving moral problems in management. A manager needs insight and understanding in a global economy to convince everyone involved, given his or her varied religious, cultural, economic and social backgrounds, to accept a proposed moral solution. Acceptance of managerial moral solutions, over time, brings trust, commitment and effort, and those three, also over time, are essential for organizational success.

Establishes the intellectual foundations of a new movement in American thought: communitarianism. Emerging in part as a response to the excesses of American individualism, communitarianism seeks to restore the balance between individual rights and social responsibilities.

This book presents a thorough overview of a model of human functioning based on the idea that behavior is goal-directed and regulated by feedback control processes. It describes feedback processes and their application to behavior, considers goals and the idea that goals are organized hierarchically, examines affect as deriving from a different kind of feedback process, and analyzes how success expectancies influence whether people keep trying to attain goals or disengage. Later sections consider a series of emerging themes, including dynamic (...) systems as a model for shifting among goals, catastrophe theory as a model for persistence, and the question of whether behavior is controlled or instead 'emerges'. Three chapters consider the implications of these various ideas for understanding maladaptive behavior, and the closing chapter asks whether goals are a necessity of life. Throughout, theory is presented in the context of diverse issues that link the theory to other literatures. (shrink)