The challenge that confronts corporate decision-makers in connection with global labor conditions is often in identifying the standardsby which they should govern themselves. In an effort to provide greater direction in the face of possible global cultural conflicts, ethicistsThomas Donaldson and Thomas Dunfee draw on social contract theory to develop a method for identifying basic human rights: Integrated Social Contract Theory (ISCT). In this paper, we apply ISCT to the challenge of global labor standards, attempting to identify labor rights that (...) could serve as guides for corporations producing or outsourcing outside of their home country. In addition to identifying areas of universal agreement, we also examine whether ISCT is, in fact, a sufficient basis for determining worker rights; we seek to define the parameters of the “sweatshop” problem; we include the application and results of our ISCT analysis as applied to labor standards: the global labor rights hypernorms; and conclude that ISCT is sufficient only for rights that are universal. We also discuss whether market-driven decisions can identify the boundaries of labor rights, or at least assure that market outcomes are compatible with maintaining labor rights, in order to respond to the shortcomings of ISCT. We conclude with some comments on directions of analysis for labor rights determination. (shrink)

The authors argue that corporate philanthropy is far too important as a social instrument for good to depend on ethical egoism for its support. They claim that rule utilitarianism provides a more compelling, though not exclusive, moral foundation. The authors cite empirical and legal evidence as additional support for their claim.

Virtues are habits of character that advance excellence in all of ones endeavors. In the Aristotelian formulation, training in the virtuesis driven by a sense of the “good,” that is, by a widely shared agreement on the components of a good society and on the roles (and appropriate virtues or excellencies) of the “social animals” that energize that society. In the modern era, however, a strong sense of community has been much diminished. Freedom from the restraints of the Church and (...) other social institutions and an emphasis on individual autonomy has fostered a different ethical perspective, a perspective in which the market enters importantly into one’s conception of the good. Does the market generate virtues which in turn sustain it? What guides the development of virtue in market economies that are entering the “information superhighway,” and a new millennium as well? (shrink)

The notion of rationality underlying contemporary business and business ethics, or the “rational actor” model of moral decision-making in business, links a roughly utilitarian notion of the good to a contractarian notion of human agency. The “C-Umodel” provides inadequate means for explaining how business people do or ought to behave or think about their behavior, because the notion of rationality upon which it relies is far too narrow a picture of business people’s character. An alternative to these assumptions and to (...) the Contractarian-Utilitarian model, is offered in an ethics of virtue. Despite the traditional apparent conflict between these divergent models, the C-U model, if founded in a notion of rationality consistent with Aristotelian ethics, is recognized as a useful instrument in business ethics and business decision-making. Hence, a reconciliation is effected between the C-U model and virtue ethics. (shrink)

This article examines the various pedagogic models suggested by widely used texts and finds them to be predominately rule-based or rule directed. These approaches to the subject matter of business ethics are quite valuable ones, but we find them to leave no room for the study of the virtues. We intend to articulate our reasons for supporting a central if not exclusive role for virtue ethics.

Professor Thomas Mulligan undertakes to discredit Milton Friedman's thesis that The Social Responsibility of Business Is to Increase Its Profits. He attempts to do this by moving from Friedman's paradigm characterizing a socially responsible executive as willful and disloyal to a different paradigm, i.e., one emphasizing the consultative and consensus-building role of a socially responsible executive. Mulligan's critique misses the point, first, because even consensus-building executives act contrary to the will of minority shareholders, but even more importantly, because he assumes (...) that the mandate of a shareholder majority brings legitimacy to efforts of corporate managers to utilize corporate wealth in solving social problems. It is the role of our democratic institutions to deal with national agenda issues such as inflation, unemployment, and pollution, not that of the private sector. Corporations and private individuals do have a role to play in enhancing the quality of the human environment, however, and the author suggests a coherent means of developing that role in an effort rescue corporate social responsibility from Mulligan no less than from Friedman. (shrink)

This paper argues that the desirable features of postmodernism identified by Ronald Green are not exclusive to postmodernism; that to the extent these features are postmodern, they are not necessarily features of business ethics; that, with qualification, these are desirable features to include in business ethics; that the best way to accomplish this inclusion is by appealing to an Aristotelian model; and that post-modernism has implications for the legal environment of business.

In his “Why be Moral? A Different Rationale for Managers,” , La Rue Tone Hosmer argues that managers should be moral because “acting in ways that can be considered to be ‘right’ and ‘just’ and ‘fair’ is absolutely essential to the long-term competitive success of the firm.” According to Hosmer, moral behavior generates trust among stakeholders, which leads to stakeholder commitment, which leads to increased stakeholder effort, which ultimately leads to corporate success. Though we agree with Hosmer’s causal reasoning, we (...) are concerned about an ancient loophole, namely, cases where the mere appearance of morality will generate the same trust, and commitment, and so on, and will thus enable managers to reap the material benefits of morality while nevertheless engaging in immoral practices. We conclude that a virtue ethics perspective will strengthen Hosmer’s model so as to cover such cases. (shrink)

InThe Moral Dimension, Amitai Etzioni critiques the neoclassical economic paradigm (NEP), a model built upon ethical egoism and which equates rationality (the logical/empirical domain) with the maximization of preferences by self-interested economic units. Etzioni finds the NEP’s exclusion of the moral/affective domain to be a glaring failure and, because of this omission, he claims that the economic model is not capable of achieving its design functions: prediction and explanation. Etzioni introduces a socio-economic model, the I & We paradigm, in which (...) the moral/affective encapsulates the logical/empirical. Further elaboration and testing of this model remains to be undertaken. We find it to hold more promise than its neoclassical economic rival, and we explicate its value for the modern manager. (shrink)

Professor Ian Maitland advances a version of utilitarianism, constrained by Robert Nozick’s minimal state, that finds no connectionbetween the pervasiveness of “market values,” which he gamely pursues, and the kind of problems that dominate our social scene. Inhis judgment, the prevailing tendency towards community or communitarian ends needlessly obstructs freedom, the overriding value of the libertarian-minimal state. When coupled with wrongheaded and perverse policies, communitarianism shackles the free market with crippling inefficiencies. This paper will interrogate Maitland’s characterization of communitarianism, challenge (...) his view that traditional values can be instrumentalized without harming community, and paint a more plausible and complex picture of thecommunitarian tendency. (shrink)

InThe Moral Dimension, Amitai Etzioni critiques the neoclassical economic paradigm (NEP), a model built upon ethical egoism and which equates rationality (the logical/empirical domain) with the maximization of preferences by self-interested economic units. Etzioni finds the NEP’s exclusion of the moral/affective domain to be a glaring failure and, because of this omission, he claims that the economic model is not capable of achieving its design functions: prediction and explanation. Etzioni introduces a socio-economic model, the I & We paradigm, in which (...) the moral/affective encapsulates the logical/empirical. Further elaboration and testing of this model remains to be undertaken. We find it to hold more promise than its neoclassical economic rival, and we explicate its value for the modern manager. (shrink)

This article examines the legal, economic, and ethical arguments supporting and opposing comparable worth. The co- authors advance opposing views on the wisdom of adopting comparable worth as a public policy, and those views are not reconciled within the limits of this essay.

This paper examines judge Richard A. Posner’s “The Concept of Corrective Justice in Recent Theories of Tort Law,” as well as arestatement of that position in The Problems of Jurisprudence, and argues that Judge Posner has mistakenly claimed Aristotle’s notion of corrective justice as a significant component of the economic theory of law.

The United States has a population of three hundred million, according to latest Census Bureau estimates. Forty-seven million, including many non-citizens, are uninsured. That is, 16% of the total United States population has no health insurance. Millions more have inadequate coverage and are in danger of losing that. Private, corporatized medical coverage, structured by the insurance industry, is the basis for the current system. This article is an attempt to lay out the principal health care issues, to look at the (...) alternatives and the cost of those alternatives, and to try to determine whether there is a particular regime that, despite its imperfections, is the best available to us now. (shrink)

This commentary finds much to like about the work of Professor Thomas I. White, "Business, Ethics, and Carol Gilligan's 'Two Voices." (Vol. 2, No. 1, January 1992) At the same time it suggests further work is needed on the following points: (1) White must consider how males respond to dilemmas if he hopes to articulate a difference between male and female methods of responding; (2) White must support his conclusion that the "ethics of care" is the ethic most likely to (...) produce the results that he assumes to be true, and further explain why he thinks that the studies he chooses support the lIethics of care," and (3) White must explain why the "ethics of care" is not just as likely to produce a result opposite to that found by researchers. (shrink)

This paper examines four major arguments advanced by opponents of race and gender conscious affirmative action and rebuts them on the basis of moral considerations. It is clear that the problem of past racial/gender discrimination has not disappeared; its effects linger, resulting in a wide disparity in opportunities and attainments between minorities/women and whites/males. Affirmative action, although not the perfect solution, is by far the most viable method of redressing the effects of past discrimination. Thus it cannot be dismissed lightly (...) by way of arguing for mere colorblindness. (shrink)

The author examines the categories of bribes that are prohibited under the Foreign Corrupt Practices Act from the perspective of three significant moral theories: utility, rights and justice. He concludes that the Act does not go too far in demanding ethical behaviors from U.S. business people doing business in foreign markets, therefore, it is not in need of a major revision. With regard to accounting provisions, movement from a reasonableness standard to one of materiality would be appropriate however.

This article evaluates inside trading from a legal and a moral perspective. From both of these points of view, the practice of inside trading is fraudulent whether it occurs in the traditional format or in the variation known as misappropriation. Fraud is a legal tort and a moral wrong consisting of a breach of duty that intentionally causes harm to persons that the insider can reasonably foresee. In defense against allegations of fraudulent inside trading, the defendant may argue that one (...) or more elements of fraud are not evident, or, if the elements are clear, that the fraud was a justified means of avoiding some worse evil or of achieving some greater good. The article concludes that inside trading, under circumstances approved by shareholders, is neither fraudulent nor unfair. (shrink)

The United States has a population of three hundred million, according to latest Census Bureau estimates. Forty-seven million, including many non-citizens, are uninsured. That is, 16% of the total United States population has no health insurance. Millions more have inadequate coverage and are in danger of losing that. Private, corporatized medical coverage, structured by the insurance industry, is the basis for the current system. This article is an attempt to lay out the principal health care issues, to look at the (...) alternatives and the cost of those alternatives, and to try to determine whether there is a particular regime that, despite its imperfections, is the best available to us now. (shrink)

This paper is a twenty-five year retrospective on the development of environmental consciousness in the US The Clean Air Act is taken as proxy for companion measures in water and other areas of the environment, and the emphasis on "efficiency" and "market compatibility" is noted with a mixture of caution and hope. The work of an eminent pragmatic ethicist, Ado Leopard, is re-visited. From the pages of A Sand County Almanac, his notion that right and wrong, good and bad, be (...) assessed in terms of the tendency to produce or preserve "the integrity, beauty, and stability of the biotic community" is explicitly adopted. Leopold''s ethical consciousness raises a question: what reasons do we have to believe that an efficient, booming economy can be made compatible with a finite natural system? Are there boundaries that the economy must respect, or can we "out run" those limits with our technology and expertise? (shrink)