“Ethical investing” is interpreted in the following paper to be the use of non-financial normative criteria by investors in the choice ofsecurities for their portfolios.Ethical investors may aim at fulfilling duties they feel they have, possibly including increasing the amount of good in society through theconsequences of their buying and selling behavior. The main duties are those of not-profiting from bad corporate behavior and of punishing bad (or rewarding good) firms. The main consequence desired is that managers manage corporations in (...) a more ethical manner. But ethical investors (as opposed to some other kinds of investors who are also interested in normative issues) also aim at receiving returns based on the market risk of their investments.If the aim of managers is to maximize shareholder wealth, then ethical investors can fulfill their duties or achieve their desired consequences only if their trading activities affect shareholder wealth, i.e., share price. A theoretical argument is presented to show that this trading activity will not affect share price or return. In addition, reference is made to results of empirical studies which show that ethical stocks yield market returns, i.e., that the share price of ethical firms is unaffected by the actions of ethical investors.If the trading activity of ethical investors fails to affect share price and return, then these investors fail to fulfill any of their goals or to achieve their ends. (shrink)

A cornerstone of modern western philosophy, addressing the role of man in government, society and religion In 1651, Hobbes published his work about the relationship between the government and the individual. More than four centuries old, this brilliant yet ruthless book analyzes not only the bases of government but also physical nature and the roles of man. Comparable to Plato's Republic in depth and insight, Leviathan includes two society-changing phenomena that Plato didn't dare to dream of -- the rise of (...) great nation-states with their claims to absolute sovereignty, and modern science, with its unprecedented analytic power. To Hobbes, the leviathan -- a mythical sea creature described in the Old Testament -- represented his central thesis: that the state must be strong in order to control and protect its citizens. Even today, Hobbes's thesis in Leviathan is debated among scholars and philosophy aficionados around the globe. One of the earliest attempts at a genuinely scientific understanding of politics and society in their modern form, this book also remains one of the most stimulating. In his timeless work, Hobbes outlines his ideas about the passions and the conduct of man, and how his theories are realized in every individual. Addressing free will and religion, Hobbes constructs an intelligent argument for the basis of religion within government and how to organize a peaceful and successful Christian commonwealth. Like Plato's Republic, this book contains ideas on psychology, ethics, law, language, and religion that continue to challenge modern thinkers and exercise a profound influence on Western thought. A classic treatise of philosophy, Leviathan is critical reading for anyone who wishes to examine the human mind through the prisms of government and society. (shrink)

"This is an excellent, readable and vigorous translation of _The Prince_, but it is much more than simply a translation. The map, notes and guide to further reading are crisp, to-the-point and yet nicely comprehensive. The inclusion of the letter to Vettori is most welcome. But, above all, the Introduction is so gripping and lively that it has convinced me to include _The Prince_ in my syllabus for History of Western Civilization the next time that I teach it.... Great price, (...) too! And lovely printing and layout." --Rachel Fulton, _University of Chicago_. (shrink)

A compelling look at the problem of evil in modern thought, from the Inquisition to global terrorism Evil threatens human reason, for it challenges our hope that the world makes sense. For eighteenth-century Europeans, the Lisbon earthquake was manifest evil. Today we view evil as a matter of human cruelty, and Auschwitz as its extreme incarnation. Examining our understanding of evil from the Inquisition to contemporary terrorism, Susan Neiman explores who we have become in the three centuries that separate us (...) from the early Enlightenment. In the process, she rewrites the history of modern thought and points philosophy back to the questions that originally animated it. Whether expressed in theological or secular terms, evil poses a problem about the world's intelligibility. It confronts philosophy with fundamental questions: Can there be meaning in a world where innocents suffer? Can belief in divine power or human progress survive a cataloging of evil? Is evil profound or banal? Neiman argues that these questions impelled modern philosophy. Traditional philosophers from Leibniz to Hegel sought to defend the Creator of a world containing evil. Inevitably, their efforts—combined with those of more literary figures like Pope, Voltaire, and the Marquis de Sade—eroded belief in God's benevolence, power, and relevance, until Nietzsche claimed He had been murdered. They also yielded the distinction between natural and moral evil that we now take for granted. Neiman turns to consider philosophy's response to the Holocaust as a final moral evil, concluding that two basic stances run through modern thought. One, from Rousseau to Arendt, insists that morality demands we make evil intelligible. The other, from Voltaire to Adorno, insists that morality demands that we don't. Beautifully written and thoroughly engaging, this book tells the history of modern philosophy as an attempt to come to terms with evil. It reintroduces philosophy to anyone interested in questions of life and death, good and evil, suffering and sense. Featuring a substantial new afterword by Neiman that raises provocative questions about Hannah Arendt's take on Adolf Eichmann and the rationale behind the Hiroshima bombing, this Princeton Classics edition introduces a new generation of readers to this eloquent and thought-provoking meditation on good and evil, life and death, and suffering and sense. (shrink)

One of Hume's most well-known works and a masterpiece of philosophy, A Treatise of Human Nature is indubitably worth taking the time to read.

This thoughtful new abridgment is enriched by the brilliant commentary which accompanies it. In it, Laurence Dickey argues that the _Wealth of Nations_ contains--and conceals--a great deal of how Smith actually thought a commercial society works. Guided by his conviction that the so-called Adam Smith Problem--the relationship between ethics and economics in Smith's thinking--is a core element in the argument of the work itself, Dickey's commentary focuses on the devices Smith uses to ground his economics in broadly ethical and social (...) categories. An unparalleled guide to an often difficult and perplexing work. (shrink)

Bribery in international business has become a priority concern among business, government, and community leaders. While discussions among philosophers often emphasize the ethical justification for banning bribery, policy-makers around the world are challenging it on the basis of its effects for economic development. In this paper we define bribery, trace recent efforts by the public, private, and civil society sectors to curb it, and attempt to answer the question: Will bribery become less common?

Bribery in international business has become a priority concern among business, government, and community leaders. While discussions among philosophers often emphasize the ethical justification for banning bribery, policy-makers around the world are challenging it on the basis of its effects for economic development. In this paper we define bribery, trace recent efforts by the public, private, and civil society sectors to curb it, and attempt to answer the question: Will bribery become less common?

Abstract:Organizational justice and injustice are widely noted influences on employees’ ethical behavior. Corporate ethics programs also raise issues of justice; organizations that fail to “follow-through” on their ethics policies may be perceived as violating employees’ expectations of procedural and retributive justice. In this empirical study of four large corporations, we considered employees’ perceptions of general organizational justice, and their perceptions of ethics program follow-through, in relation to unethical behavior that harms the organization, and to employees’ willingness to help the organization (...) by reporting ethical problems and issues to management. Results show that when employees perceive general organizational justice and ethics program follow-through, there is less unethical behavior and greater willingness to report problems. General justice and ethics program follow-through also interact with each other, showing that the impact of ethics initiatives is influenced by the organizational context. (shrink)

Abstract:Previous research has identified multiple approaches to the design and implementation of corporate ethics programs (Paine, 1994; Weaver, Treviño, and Cochran, in press b; Treviño, Weaver, Gibson, and Toffler, in press). This field survey in a large financial services company investigated the relationships of the values and compliance orientations in an ethics program to a diverse set of outcomes. Employees’ perceptions that the company ethics program is oriented toward affirming ethical values were associated with seven outcomes. Perceptions of a compliance (...) orientation were associated with four of these outcomes. The interaction of values and compliance orientations was associated with employees’ willingness to report misconduct. In general, a values orientation makes a greater unique contribution to the measured outcomes when compared to a compliance orientation. (shrink)

ABSTRACT:U.S. Organizational Sentencing Guidelines provide firms with incentives to develop formal ethics programs to promote ethical organizational cultures and thereby decrease corporate offenses. Yet critics argue such programs are cosmetic. Here we studied bank employees before and after the introduction of formal ethics training—an important component of formal ethics programs—to examine the effects of training on ethical organizational culture. Two years after a single training session, we find sustained, positive effects on indicators of an ethical organizational culture (observed unethical behavior, (...) intentions to behave ethically, perceptions of organizational efficacy in managing ethics, and the firm’s normative structure). While espoused organizational values also rose in importance post-training, the boost dissipated after the second year which suggests perceptions of values are not driving sustained behavioral improvements. This finding conflicts with past theory which asserts that enduring behavioral improvements arise from the inculcation of organizational values. Implications for future research are discussed. (shrink)

ABSTRACT:U.S. Organizational Sentencing Guidelines provide firms with incentives to develop formal ethics programs to promote ethical organizational cultures and thereby decrease corporate offenses. Yet critics argue such programs are cosmetic. Here we studied bank employees before and after the introduction of formal ethics training—an important component of formal ethics programs—to examine the effects of training on ethical organizational culture. Two years after a single training session, we find sustained, positive effects on indicators of an ethical organizational culture (observed unethical behavior, (...) intentions to behave ethically, perceptions of organizational efficacy in managing ethics, and the firm’s normative structure). While espoused organizational values also rose in importance post-training, the boost dissipated after the second year which suggests perceptions of values are not driving sustained behavioral improvements. This finding conflicts with past theory which asserts that enduring behavioral improvements arise from the inculcation of organizational values. Implications for future research are discussed. (shrink)

As the 21st century breaks upon us, no ethical issues in business appear as significant as those being created by the rapidglobalization of business. Globalization has created numerous ethical problems for the manager of the multinational corporation. What does justice demand, for example, in the relations between a multinational and its host country, particularly when that country is less developed? Should human rights principles govern the relations between a multinational and the workers of a host country, and if so, which (...) principles are the correct ones? How should a multinational deal with a government in which corruption is rife? What are the ethical considerations involved in determining whether and how to transfer a risky technology to a country whose people may not be able to safely absorb that technology? What kind of labor and environmental standards should a multinational adopt when operating in a country whose government legislates only very low standards? (shrink)

Abstract:Previous research has identified multiple approaches to the design and implementation of corporate ethics programs (Paine, 1994; Weaver, Treviño, and Cochran, in press b; Treviño, Weaver, Gibson, and Toffler, in press). This field survey in a large financial services company investigated the relationships of the values and compliance orientations in an ethics program to a diverse set of outcomes. Employees’ perceptions that the company ethics program is oriented toward affirming ethical values were associated with seven outcomes. Perceptions of a compliance (...) orientation were associated with four of these outcomes. The interaction of values and compliance orientations was associated with employees’ willingness to report misconduct. In general, a values orientation makes a greater unique contribution to the measured outcomes when compared to a compliance orientation. (shrink)

This article explores the issue of rebuilding an organization’s reputation following an ethical scandal. We divide our discussion into four parts. First, we discuss the concept of reputation. We note its relevance to today’s organizations, offer several contemporary definitions along with highlighting its benefits and downsides. In the second section, we offer the work of anthropologist, Victor Turner, on social drama along with other views on organizational efforts to rebuild their reputation to include reputation management routines. In the third section, (...) Turner’s redressive actions are integrated with Edgar Schein’s leadership mechanisms for building or changing culture to provide further understanding of organizational efforts to rebuild reputation following ethical scandals. Finally, in the fourth section of the article, we extend the integration of the Turner and Schein work with single- and double-loop redressive actions for rebuilding reputation. (shrink)

This paper describes and discusses the Enron Corporation debacle. The paper presents the business ethics background and leadership mechanisms affecting Enron''s collapse and eventual bankruptcy. Through a systematic analysis of the organizational culture at Enron (following Schein''s frame of reference) the paper demonstrates how the company''s culture had profound effects on the ethics of its employees.

Moral identity has been touted as a foundation for understanding moral agency in organizations. The purpose of this article is to review the current state of knowledge regarding moral identity and highlight several promising avenues for advancing current understandings of moral actions in organizational contexts. The article begins with a brief overview of two distinct conceptual perspectives on moral identity—the character perspective and the social-cognitive perspective—that dominate extant literature. It then discusses varying approaches that have been taken in attempting to (...) measure moral identity. The final two sections of the article review empirical findings regarding the antecedents and consequences of moral identity, respectively. Mechanisms and situational factors that are pertinent to moral agency in organizations are emphasized in both sections. (shrink)

Today's sweatshops violate our notions of justice, yet they continue to flourish. This is so because we have not settled on criteria that would allow us to condemn and do away with them and because the poor working conditions in certain places are preferable to the alternative of no job at all. In this paper, we examine these phenomena. We consider the definitional dilemmas posed by sweatshops by routing a standard definition of sweatshops through the precepts put forward in the (...) literature on justice and virtue ethics. We conclude that fixing on definitions is pointless and misleading and that we are better off looking at whether or not a workplace violates the basic human rights of workers and whether or not the working conditions there cohere with situations on which we have already rendered judgments. In the end, we suggest guidelines for businesses that operate in the global workplace to help them avoid charges of running sweatshops. These recommendations account for the harsh living conditions in certain developing and emerging countries as well as the norms of societies in developed countries. (shrink)

The eighties and nineties have seen much debate about CEO compensation. Critics of CEO compensation support their contention of excessive and inequitable CEO pay based on a number of factors and premises. This paper examines the validity of these arguments. We show why many of these arguments fail to persuade, in part, because they attempt to determine propriety of CEO pay without having a definitive standard for comparison. Arguments based on comparisons between CEO pay and the pay of other individuals (...) or jobs or between CEO pay and firm performance are shown to be an insufficient mechanism to determine the appropriateness of CEO compensation. (shrink)

While stakeholder theory has traditionally considered organization’s interactions with stakeholders in terms of independent, dyadic relationships, recent scholarship has pointed to the fact that organizations exist within a complex network of intertwining relationships [e.g., Rowley, T. J.: 1997, The Academy of Management Review 22(4), 887–910]. However, further theoretical and empirical development of the interactions between stakeholders has been lacking. In this paper, we develop a framework for understanding and measuring the effects upon the organization of competing, complementary and cooperative stakeholder (...) interactions, which we refer to as stakeholder multiplicity. We draw upon three forms of fit (i.e. fit as matching, fit as moderation, and fit as gestalts; Venkatraman, N.: 1989) to develop a framework for understanding stakeholder multiplicity based upon the direction, strength, and synergies of the interacting claims. Additionally, we draw upon the theory of stakeholder identification and salience of Mitchell et al. (1997), which we argue provides a more relevant and significantly more illustrative explanation of the nature and effects of stakeholder interactions upon the organization than the network approach of Rowley (1997). Furthermore, we ground our framework through reference to three stakeholder groups (i.e. governments, customers, and employees) and the stakeholder issue of concern for the natural environment. We propose a hierarchy of the multiplicity strength of influence of these three stakeholder groups. Potential measurement and implications are discussed. (shrink)

The book is written with grace and wit; again and again, Neiman writes the kind of sentences we dream of uttering in the perfect conversation: where every mot is bon. This is exemplary philosophy.

ABSTRACT:The UN Framework on Human Rights and Business comprises the State’s duty to protect human rights, the corporate responsibility to respect human rights, and the duty to remedy abuses. This paper focuses on the corporate responsibility to respect. It considers how to overcome obstacles, arising out of national and international law, to the development of a legally binding corporate duty to respect human rights. It is argued that the notion of human rights due diligence will lead to the creation of (...) binding legal duties and that principles of corporate and tort law can be adapted to this end. Furthermore, recent legal developments accept an “enlightened shareholder value” approach allowing corporate managers to consider human rights issues when making decisions. The responsibility to respect involves adaptation of shareholder based corporate governance towards a more stakeholder oriented approach and could lead to the development of a new, stakeholder based, corporate model. (shrink)

Insider trading is illegal, and is widely believed to be unethical. It has received widespread attention in the media and has become, for some, the very symbol of ethical decay in business. For a practice that has come to epitomize unethical business behavior, however, insider trading has received surprisingly little ethical analysis. This article critically examines the principal ethical arguments against insider trading: the claim that the practice is unfair, the claim that it involves a misappropriation of information and the (...) claim that it harms ordinary investors and the market as a whole. The author concludes that each of these arguments has some serious deficiencies; no one of them by itself provides a sufficient reason for outlawing insider trading. This does not mean, however, that there are no reasons for prohibiting the practice. The author argues that the real reason for outlawing insider trading is that it undermines the fiduciary relationship that lies at the heart of American business. (shrink)

Abstract:Recent developments in personality research point to an alchemy of character composed of five elements: extroversion, agreeableness, conscientiousness, neuroticism, and openness to experience. This paper surveys this research for its implications to the study of the virtues in organizational ethics. After subjecting each of these five character traits to several tests as to what constitutes a virtue, the empirical evidence supports an organizational virtue of agreeableness and an organizational virtue of conscientiousness. Although the empirical evidence falls short, an argument is (...) mobilized on behalf of an additional organizational virtue of openness to experience. (shrink)

Abstract:Recent developments in personality research point to an alchemy of character composed of five elements: extroversion, agreeableness, conscientiousness, neuroticism, and openness to experience. This paper surveys this research for its implications to the study of the virtues in organizational ethics. After subjecting each of these five character traits to several tests as to what constitutes a virtue, the empirical evidence supports an organizational virtue of agreeableness and an organizational virtue of conscientiousness. Although the empirical evidence falls short, an argument is (...) mobilized on behalf of an additional organizational virtue of openness to experience. (shrink)

In this classic text, Kant sets out to articulate and defend the Categorical Imperative - the fundamental principle that underlies moral reasoning - and to lay the foundation for a comprehensive account of justice and human virtues. This new edition and translation of Kant's work is designed especially for students. An extensive and comprehensive introduction explains the central concepts of Groundwork and looks at Kant's main lines of argument. Detailed notes aim to clarify Kant's thoughts and to correct some common (...) misunderstandings of his doctrines. (shrink)

This paper is a collection of small, formal and informal writings and is part of the early groundwork we have been doing together on the topic of the pedagogy of suffering, a phrase that has certainly given pause to many colleagues we have spoken to. We are trying to understand and articulate how and why suffering can be pedagogical in character and how it is often key to authentic and meaningful acts of teaching and learning. We are exploring threads from (...) both the hermeneutic tradition and from Buddhism, in order to decode our understandable rush to ameliorate suffering at every turn and to consider every instance of it as an error to be avoided at all costs. We also look to these traditions to begin to formulate how a pedagogy that turns away from suffering suffers a great loss, and how a pedagogy that turns towards suffering can become a locale of great teaching and learning, great wisdom and grace. (shrink)

This article examines the development of and contestation over the standards for certified fair trade, with particular attention to the U.S. context. It charts fair trade's rapid growth in the United States since the 1999 advent of formal certification, explores the controversies generated by the strategy of market mainstreaming in the sector, and focuses on five key issues that have generated particularly heated contention within the U.S. fair trade movement. It offers a theoretical framework based in the literatures on agrifood (...) systems, social movements, and public-choice economics, for understanding the corporate response to alternative markets such as fair trade. The article suggests a typology of responses by social movement actors to this increased corporate participation, and assesses the relevance of the U.S. case for the future prospects of fair trade, both in other national contexts and as an international movement. (shrink)

“Ethical investing” is interpreted in the following paper to be the use of non-financial normative criteria by investors in the choice ofsecurities for their portfolios.Ethical investors may aim at fulfilling duties they feel they have, possibly including increasing the amount of good in society through theconsequences of their buying and selling behavior. The main duties are those of not-profiting from bad corporate behavior and of punishing bad firms. The main consequence desired is that managers manage corporations in a more ethical (...) manner. But ethical investors also aim at receiving returns based on the market risk of their investments.If the aim of managers is to maximize shareholder wealth, then ethical investors can fulfill their duties or achieve their desired consequences only if their trading activities affect shareholder wealth, i.e., share price. A theoretical argument is presented to show that this trading activity will not affect share price or return. In addition, reference is made to results of empirical studies which show that ethical stocks yield market returns, i.e., that the share price of ethical firms is unaffected by the actions of ethical investors.If the trading activity of ethical investors fails to affect share price and return, then these investors fail to fulfill any of their goals or to achieve their ends. (shrink)

Organizations constitute morally-complex environments, requiring organization members to possess levels of moral courage sufficient to promote their ethical action, while refraining from unethical actions when faced with temptations or pressures. Using a sample drawn from a military context, we explored the antecedents and consequences of moral courage. Results from this four-month field study demonstrated that authentic leadership was positively related to followers’ displays of moral courage. Further, followers’ moral courage fully mediated the effects of authentic leadership on followers’ ethical and (...) pro-social behaviors. Theoretical and practical implications for further integrating the work on moral courage, authentic leadership and ethics are discussed. (shrink)

Rather than being inherently evil, business lobbying is a socially responsible activity which needs to be restrained by ethical standards. To be effective in a business environment, traditional ethical standards need to be translated into language which business persons can speak comfortably. Economical explanations must also be available to explain why ethical standards are appropriate in business. Eight such standards and their validating arguments are proposed with examples showing their use. Internal dialogues regarding the ethics of lobbying objectives and tactics (...) will plausibly occur only in businesses which recognize social responsibility mandates. Public interest stakeholders could hasten this recognition by making use of information made available by the Lobbying Disclosure Act of 1995 to institute external dialogues regarding lobbying by specific businesses and industry groups. Given practical ethical standards and the information on business lobbying provided by the law, the press, corporate activists, consumers, pension fund managers and the public can apply pressure for ethical lobbying practices. (shrink)

Rather than being inherently evil, business lobbying is a socially responsible activity which needs to be restrained by ethical standards. To be effective in a business environment, traditional ethical standards need to be translated into language which business persons can speak comfortably. Economical explanations must also be available to explain why ethical standards are appropriate in business. Eight such standards and their validating arguments are proposed with examples showing their use. Internal dialogues regarding the ethics of lobbying objectives and tactics (...) will plausibly occur only in businesses which recognize social responsibility mandates. Public interest stakeholders could hasten this recognition by making use of information made available by the Lobbying Disclosure Act of 1995 to institute external dialogues regarding lobbying by specific businesses and industry groups. Given practical ethical standards and the information on business lobbying provided by the law, the press, corporate activists, consumers, pension fund managers and the public can apply pressure for ethical lobbying practices. (shrink)

This paper explores the relationship between religious belief and the dilemmas Dutch executives confront in daily business practice. We find that the frequency with which dilemmas arise is directly related to various aspects of religious belief, such as the belief in a transcendental being and the intensity of religious practice. Despite this relationship, only 17% of the dilemmas examined involve a religious standard. Most dilemmas originate from a conflict between moral and practical standards. We also find that 79% of the (...) identified dilemmas stem from a conflict between two or more internalized standards of the executive. (shrink)

In this article we set the context for this special issue focusing on individual and organizational reintegration in the aftermath of transgressions that violate ethical and legal boundaries. Following a brief introduction to the topic we provide an overview of each of the four articles selected for this special issue. We then present a number of potentially fruitful empirical, theoretical, and normative directions management and ethics scholars might pursue in order to further advance this evolving literature.

ABSTRACT:In this article we set the context for this special issue focusing on individual and organizational reintegration in the aftermath of transgressions that violate ethical and legal boundaries. Following a brief introduction to the topic we provide an overview of each of the four articles selected for this special issue. We then present a number of potentially fruitful empirical, theoretical, and normative directions management and ethics scholars might pursue in order to further advance this evolving literature.

Moral identity has been touted as a foundation for understanding moral agency in organizations. The purpose of this article is to review the current state of knowledge regarding moral identity and highlight several promising avenues for advancing current understandings of moral actions in organizational contexts. The article begins with a brief overview of two distinct conceptual perspectives on moral identity—the character perspective and the social-cognitive perspective—that dominate extant literature. It then discusses varying approaches that have been taken in attempting to (...) measure moral identity. The final two sections of the article review empirical findings regarding the antecedents and consequences of moral identity, respectively. Mechanisms and situational factors that are pertinent to moral agency in organizations are emphasized in both sections. (shrink)

This article adds to the discussion of the legitimation of stakeholding, by studying the implications of investing financial assets, years of labor, community resources, or other such scarce goods in a corporation. It attempts to respond to those who argue that it is not possible for all stakeholders to be effectively represented in corporate governance and that if they were, this would undermine the well-being of the corporation.

Given that so many people think business ethics is oxymoronic, it might be prudent to investigate why and to determine what if any truth or partial truth they see. Thus, as a hueristic device, I propose to seriously examine the claim that business ethics is a contradiction in terms, and see what follows if business ethics is oxymoronic.

Given that so many people think business ethics is oxymoronic, it might be prudent to investigate why and to determine what if any truth or partial truth they see. Thus, as a hueristic device, I propose to seriously examine the claim that business ethics is a contradiction in terms, and see what follows if business ethics is oxymoronic.

This address uses the question “Is business ethics getting better?” as a heuristic for discussing the importance of history in understanding business and ethics. The paper uses a number of examples to illustrate how the same ethical problems in business have been around for a long time. It describes early attempts at the Harvard Business School to use business history as a means of teaching students about moral and social values. In the end, the author suggests that history may be (...) another way to teach ethics, enrich business ethics courses, and develop the perspective and vision in future business leaders. (shrink)