The claim that managers have a fiduciary duty to shareholders to run the corporation in their interests is generally supported by two arguments: that shareholders are owners of a corporation and that they have a contract or agency relation with management. The latter argument is used by Kenneth E. Goodpaster, who rejects a multi-fiduciary, stakeholder approach on the grounds that the shareholder-management relation is “ethically different” because of its fiduciary character. Both of these arguments provide an inadequate basis for the (...) fiduciary duties of officers and directors of corporations. The basis is to be found, rather, in considerations of public policy, a point that was established in the Dodd-Berle exchange of the 1930s. This conclusion also shows the inadequacy of Goodpaster’s solution to the so-called stakeholder paradox, and an alternative solution to the paradox is presented. (shrink)

The claim that managers have a fiduciary duty to shareholders to run the corporation in their interests is generally supported by two arguments: that shareholders are owners of a corporation and that they have a contract or agency relation with management. The latter argument is used by Kenneth E. Goodpaster, who rejects a multi-fiduciary, stakeholder approach on the grounds that the shareholder-management relation is “ethically different” because of its fiduciary character. Both of these arguments provide an inadequate basis for the (...) fiduciary duties of officers and directors of corporations. The basis is to be found, rather, in considerations of public policy, a point that was established in the Dodd-Berle exchange of the 1930s. This conclusion also shows the inadequacy of Goodpaster’s solution to the so-called stakeholder paradox, and an alternative solution to the paradox is presented. (shrink)

The neuroscience revolution has revived interpretations of religious experiences as wholly dependent on biological conditions. William James cautioned against allowing such neurological reductionism to overwhelm other useful perspectives. Contemporary psychologists of religion have raised similar cautions, but have failed to engage James as a full conversation partner. In this article, we present a contemporary, applied version of James's perspective. We clarify the problem by reviewing specific James-like contemporary concerns about reductionism in the neuropsychological study of religion. Then, most centrally, we (...) employ three of James's conceptual tools—pragmatism, pluralism, and radical empiricism—to moderate contemporary reductionism. Finally, we point to a constructive approach through which neuroscientists might collaborate with scholars in the humanities and psychosocial sciences, which is consistent with our conclusion that it is often no longer fruitful to separate neurobiological studies from studies that are psychosocial or sociocultural. (shrink)

This presidential address to the Society for Business Ethics argues that business ethics rests upon the mistaken assumption thatteaching and research in the field ought to aim at the incorporation of ethics into managerial decision making. An alternative to this Moral Manager Model is a Moral Market Model, in which the aim is to develop markets that produce ethical outcomes. The differencesbetween the two models are discussed with reference to the themes of responsibility, participation, and relationships.

One way to recast the problem of cultural explanation in historical inquiry is to distinguish two conceptualizations involving culture: cultural meanings as contents of signification that inform meaningful courses of action in historically unfolding circumstances; and cultural structures as institutionalized patterns of social life that may be elaborated in more than one concrete construction of meaning. This distinction helps to suggest how explanation can operate in accounting for cultural processes of meaning-formation, as well as in other ways that transcend specific (...) meanings, yet are nonetheless cultural. Examples of historical explanation involving each construct are offered, and their potential examined. (shrink)

This chapter contains sections titled: Financial markets Financial services Financial management.

Employee governance, which includes employee ownership and employee participation in decision making, is regarded by manyas morally preferable to control of corporations by shareholders. However, employee governance is rare in advanced market economies due to its relative inefficiency compared with shareholder governance. Given this inefficiency, should employee governance be given up as an impractical ideal? This article contends that the debate over this question is hampered by an inadequate conception of employee governance that fails to take into account the difference (...) between employees and shareholders. It offers a different, more adequate conception of employee governance that recognizes a sense in which employees currently have some ownership rights. The argument for this conception of employee governance is built on an expanded understanding of the ownership of a firm. The article also suggests new strategies for strengthening the role of employees in corporate governance. (shrink)

In addressing the theme of this special issue of Business Ethics Quarterly on business ethics in the new millennium, I want to focusnot on business ethics as an academic field of study but rather on ethics in business. By ethics in business I mean the standards for ethical conduct that are generally recognized in business and the ways in which these standards are established. Ethics in business in this sense is, at least in part, what the field of business ethics (...) studies. (shrink)

Cognitive architectures are theories of cognition that try to capture the essential representations and mechanisms that underlie cognition. Research in cognitive architectures has gradually moved from a focus on the functional capabilities of architectures to the ability to model the details of human behavior, and, more recently, brain activity. Although there are many different architectures, they share many identical or similar mechanisms, permitting possible future convergence. In judging the quality of a particular cognitive model, it is pertinent to not just (...) judge its fit to the experimental data but also its simplicity and ability to make predictions. (shrink)

Parsons's epistemology of "analytical realism" could be developed only by first displacing Weber's alternative epistemology within the social action perspective. Reconsideration of Parsons's epistemological moves shows that he came to conclusions unsupportable within the social action perspective. Reassertion of the postulate of Verstehen retrieves his achievements from the pure functionalism and positivism he opposed, by establishing a comprehensive action scheme centered on ideal-type analysis.

ABSTRACT This paper investigates influences upon the development of library classification systems in nineteenth-century Britain. Two case studies – Edward Edwards's ‘scheme of classification for a town library’ of 1859 and the Bibliotheca Lindesiana of the earls of Crawford who made a number of significant contributions to the development of library classification over a fifty-year period – are deployed to explore how classification schemes reflected the habituses of their creators and how they were shaped by their socio-economic, epistemological and geographical (...) contexts. The paper also investigates the discourse of classification, examining authors’ claims for the legitimacy, widespread applicability and superiority of their schemes, while revealing how these claims were compromised or modified by practical considerations. The case studies suggest that a modernizing narrative of a transition in the second half of the nineteenth century from an aristocratic, largely rural and amateur paradigm of knowledge formation to a bourgeois, urban and professional model requires significant modification: a more nuanced approach is required, which recognizes the permeability of geographic and social boundaries and the continued relevance of aristocratic libraries as key sites of knowledge formation until the end of the century. (shrink)

ABSTRACT:Intermediaries, such as accountants, lawyers, and bankers, are gatekeepers, which are parties whose cooperation is necessary for corporations to function and who, by withholding cooperation, are able to prevent significant corporate misconduct. The recent scandals at Enron and other corporations were due, in part, to failures by gatekeeper institutions. However, intermediaries exist primarily to provide for-fee services and not specifically to detect and deter misconduct. Insofar as these institutions are gatekeepers or guardians, they serve reluctantly. Hence the question: What is (...) the responsibility of intermediaries to act as gatekeepers? This article argues that the appropriate moral, as well as legal, principle for justifying responsibility in a gatekeeper role is cost effectiveness. This conclusion is reached by means of a hypothetical exercise called the investors’ bargain in which investors—who bear the costs and receive the benefits of intermediaries’ gatekeeper role—are asked to choose the best means of protecting their interests. (shrink)

Rent seeking by lobbying for government favors is generally thought to be wasteful. In view of this wastefulness, it is puzzling that rent seeking by corporations has not been criticized as a failure to be socially responsible or even as an unethical business practice. This article examines the compatibility of rent seeking with corporate social responsibility by utilizing Thomas Dunfee's idea of a marketplace with morality. This idea is useful for solving this puzzle because in considering whether rent seeking is (...) compatible with corporate social responsibility, it is necessary, first, to define rent seeking, which this article argues is a normative concept, and, second, to find some principled way of identifying rent-seeking behavior. It also solves the puzzle about rent seeking by revealing that the concept of rent seeking itself is of little use in determining whether certain conduct is or is not socially responsible since rent seeking activity cannot be identified without first evaluating which activity is rent seeking. (shrink)

Intermediaries, such as accountants, lawyers, and bankers, are gatekeepers, which are parties whose cooperation is necessary for corporations to function and who, by withholding cooperation, are able to prevent significant corporate misconduct. The recent scandals at Enron and other corporations were due, in part, to failures by gatekeeper institutions. However, intermediaries exist primarily to provide for-fee services and not specifically to detect and deter misconduct. Insofar asthese institutions are gatekeepers or guardians, they serve reluctantly. Hence the question: What is the (...) responsibility of intermediaries to act as gatekeepers? This article argues that the appropriate moral, as well as legal, principle for justifying responsibility in a gatekeeper role is cost effectiveness. This conclusion is reached by means of a hypothetical exercise called the investors’ bargain in which investors—who bear the costs and receive the benefits of intermediaries’ gatekeeper role—are asked to choose the best means of protecting their interests. (shrink)

In their article, “Shrewd Bargaining on the Moral Frontier,” J. Gregory Dees and Peter C. Crampton challenge us with a puzzle about deception in bargaining. How can the practice of misleading others about our settlement preferences—the terms on which we are willing to come to an agreement —possibly be justified? On any standard ethical theory, they claim, Brer Rabbit's trick of professing fear of the briar patch in order to avoid being eaten by the fox would seem to be wrong, (...) and yet we read this tale to our children for their moral edification. The discussion by Dees and Crampton of this apparent inconsistency is penetrating, instructive, and well-informed. It is also a delight to read. (shrink)

In their article, “Shrewd Bargaining on the Moral Frontier,” J. Gregory Dees and Peter C. Crampton challenge us with a puzzle about deception in bargaining. How can the practice of misleading others about our settlement preferences—the terms on which we are willing to come to an agreement —possibly be justified? On any standard ethical theory, they claim, Brer Rabbit's trick of professing fear of the briar patch in order to avoid being eaten by the fox would seem to be wrong, (...) and yet we read this tale to our children for their moral edification. The discussion by Dees and Crampton of this apparent inconsistency is penetrating, instructive, and well-informed. It is also a delight to read. (shrink)

In order to understand the way in which the results of a study of business ethics could enter into the actual conduct of business, I formulate and examine five models of the role of the manager which can be found in the literature of management theory. These I call the engineering model, the economic model, the management of values model, the formal organization model, and the political model. While none of these models is wholly adequate, each provides important theoretical insights (...) into the relevance of ethics to management decision making which can be of use in the examination of specific cases. (shrink)

Although enterprise risk management (ERM) has many benefits for corporations, there has been virtually no discussion of the extent to which its practice may be said to constitute corporate social responsibility. This article presents a prima facie case for the convergence of the two and examines this case through a consideration of four possible objections or challenges. The conclusion of this article is a tempered optimism that ERM has the significant, but as yet untapped, potential to constitute socially responsible activity, (...) which, if realized, would enable Adam Smith's invisible hand of the marketplace to have an expanded sweep. (shrink)

In response to growing concern in the 1980s about the quality of public education across the United States, a tremendous amount of energy was expended by organizations such as the Holmes Group and the Carnegie Forum to organize professional development schools or “partner schools” for teacher education. On the surface, the concept of partnering is simple; however, the practice is very costly, complex, and difficult. In _Schooling, Democracy, and the Quest for Wisdom_, Robert V. Bullough, Jr. and John R. (...) Rosenberg examine the concept of partnering through various lenses and they address what they think are the major issues that need to be, but rarely are, discussed by thousands of educators in the U.S. who are involved and invested in university-public school partnerships. Ultimately, they assert that the conversation around partnering needs re-centering, refreshing, and re-theorizing. (shrink)

ABSTRACT:Intermediaries, such as accountants, lawyers, and bankers, are gatekeepers, which are parties whose cooperation is necessary for corporations to function and who, by withholding cooperation, are able to prevent significant corporate misconduct. The recent scandals at Enron and other corporations were due, in part, to failures by gatekeeper institutions. However, intermediaries exist primarily to provide for-fee services and not specifically to detect and deter misconduct. Insofar as these institutions are gatekeepers or guardians, they serve reluctantly. Hence the question: What is (...) the responsibility of intermediaries to act as gatekeepers? This article argues that the appropriate moral, as well as legal, principle for justifying responsibility in a gatekeeper role is cost effectiveness. This conclusion is reached by means of a hypothetical exercise called the investors’ bargain in which investors—who bear the costs and receive the benefits of intermediaries’ gatekeeper role—are asked to choose the best means of protecting their interests. (shrink)

The Delaware court's decision in eBay v. Newmark has been viewed by many commentators as a decisive affirmation of shareholder wealth maximization as the only legally permissible objective of a for-profit corporation. The implications of this court case are of particular concern for the emerging field of social enterprise, in which some organizations, such as, in this case, Craigslist, choose to pursue a social benefit mission in the for-profit corporate form. The eBay v. Newmark decision may also threaten companies that (...) seek to be socially responsible by serving constituencies other than shareholders at the expense of some profit. This examination of the court decision concludes that a legal requirement to maximize shareholder value may not preclude a commitment to social responsibility and may even permit the pursuit of a social benefit objective, such as the preservation of the culture developed by Craigslist. In particular, the court's decision in eBay v. Newmark reflects unique features of the case that could have been avoided by Craigslist and by other similar companies. (shrink)

Democracy is more than a collection of institutions, laws, and freely contested sources of authority. It is also an ideal. If we think of this ideal in republican terms, in terms of resistance to domination through the practices of mutual accountability, and if we recall that democratic life invariably comes with loss, then those of us who inhabit a democratic political society will need to locate, and then cultivate, responses to loss that do not undermine our commitment to this ideal. (...) Tolerance, one such response, is widely recognized and yet poorly theorized. Thomas Aquinas did not recognize it, but he did praise and endorse its act, toleration, and he does offer resources for bringing the virtue into focus and identifying some of the distinguishing features of its democratic variant. (shrink)

HOPING TO ADVANCE OUR UNDERSTANDING OF WHAT TOLERANCE INvolves and unsettling our assumptions about its history, in this essay I take a backward glance at some of the discourse about the virtue that emerged among the first Christian apologists in the debates they carried on with their pagan critics. Along the way, several conclusions come into view: that tolerance regards the objectionable differences of those with whom we share some sort of society, that the question of social membership always precedes (...) the question of tolerance, and that the logic of Augustine's largely ignored account of the virtue emerges against the backdrop of these findings from the second, third, and fourth centuries. Compel them in and then tolerate them: In some perverse way, this might make sense after all. (shrink)

Having taught management ethics for several years, I have been repeatedly frustrated by the practical mismatch between management problems and moral philosophy…. Unless we can connect ethical theory more closely with management practice, we may be dressing our business curriculum windows with philosophical finery but failing to meet the urgent need for clarity of thought in management ethics.