Executive compensation has long been a prominent topic in the management literature. A main question that is also given substantial attention in the business ethics literature—even more so in the wake of the recent financial crisis—is whether increasing levels of executive compensation can be justified from an ethical point of view. Also, the relationship of executive compensation to instances of unethical behavior or outcomes has received considerable attention. The purpose of this paper is to explore the social, ecological, and existential (...) costs of economic incentives, by discussing how relying on increasing levels of executive compensation may have an adverse effect on managerial performance in a broad sense. Specifically, we argue that one-dimensional economic incentives may destroy existential, social, and systemic values that influence the manager’s commitment to ensure responsible business conduct, and have negative spillover effects that may reduce the manager’s performance. There are well-documented findings that demonstrate that reliance on sources of extrinsic motivation (such as economic incentives) may displace intrinsic motivation. Our perspective is a holistic one, in the sense that we will explore the influence of sources of extrinsic motivation on the manager’s intrinsic commitment to different types of values. We will in particular investigate how it may influence the manager’s ethical reflection and behavior or lack thereof. (shrink)

Departing from frequent use of moral conflict cases in business ethics teaching and research, the paper suggests an elaboration of a moral conflict approach within business ethics, both conceptually and philosophically. The conceptual elaboration borrows from social science conflict research terminology, while the philosophical elaboration presents casuistry as a kind of practical, inductive argumentation with a focus on paradigmatic examples.

In this study we argue that there is an interconnection between; the mechanistic worldview and competition, and the organic worldview and cooperation. To illustrate our main thesis we introduce two cases; first, Max Havelaar, a paradigmatic case of how business might function in an economy based upon solidarity and sustainability. Second, TINE, a Norwegian grocery corporation engaged in collusion in order to force a small competitor out of the market. On the one hand, in order to encourage market behaviour that (...) integrates economic, societal and environmental values we find that transparent cooperation within a context of an organic worldview takes care of important intrinsic as well as instrumental values. On the other hand, we find evidence for asserting that cooperation based upon a mechanistic worldview, typically leads to group egotistical consequences undermining the long term common good. (shrink)

This volume celebrates the work of Laszlo Zsolnai, a leading researcher and scholar in the field of the ethical and spiritual aspects of economic life, who has made significant contributions to the connection between ethics, spirituality, aesthetics and economic theory. The book offers a selection of essays concerned with the ethical, spiritual and aesthetic context within which economics as a social studies discipline should be situated in order to avoid the sort of dehumanising consequences that theories based on utility maximisation (...) and rational choice necessarily entail. It presents the economic activities of human beings not as some sort of preordained obedience to universal laws that operate independently of other human concerns, but, rather, as a part of the human desire for the Aristotelian good life. It looks at the various considerations –moral, spiritual and aesthetic – that take part in the formation of economic decisions in sharp contrast with theories that purport to explain economic phenomena solely on the basis of utility maximisation. (shrink)

With cutting-edge insights from leading European and North American scholars, this authoritative book addresses the fundamental problems of business in an age of crisis whilst presenting radical, but practical, solutions. The contributors explore three main value shifts: from inequality to equality, from the technical-materialistic to the ecological-spiritual, and from compliance and enforcement to autonomy and responsibility. A number of striking issues are addressed including the doctrine of self-interest, the purpose of business, codes of conduct, personal responsibility, existential perspectives on business (...) ethics and the development of ethical competence. This book will be an essential point of reference for academic researchers and postgraduate students in business ethics and corporate social responsibility, as well as practitioners interested in the relevance of business ethics to leadership, management, strategy and finance. (shrink)

How can businesses and business leaders contribute to solutions of the big ethical, social, and ecological challenges of today? Within this context this book offers theoretical and practical approaches to making the world a better place for existing and future generations. It uses diverse, often multidimensional frames of reference and illustrates them with real-life cases to show positive solutions. The author's broad professional background and humanistic worldview are reflected in his application of psychological and virtue-oriented theories as well as philosophical (...) approaches. Some of the articles have an essay format, others share his experiences and experiments in his ethics classes using roleplays to cultivate empathic and prudent ethical behaviour. A primary motivation of the book is to inspire leaders as well as teachers and students of leadership and business by enriching their worldviews to see ethics as a fundamental aspect at all levels of economic activity. (shrink)

A survey of recent research reveals that there is a growing interest in knowledge regarding the opinions and attitudes toward ethics amongst business school faculty members. Based on an empirical study conducted in Norway we address the following issue: "What do faculty members of the Norwegian Business Schools consider to be their responsibilities in preparing their students for leading positions in public and private organizations?" Moving on to interpreting the results from the survey, we discuss the empirical findings by comparing (...) the data using four different theoretical perspectives; neoclassical economics, strategic management, corporate social responsibility and socio-economics. The implications are highlighted. (shrink)

A survey of recent research reveals that there is a growing interest in knowledge regarding the opinions and attitudes toward ethics amongst business school faculty members. Based on an empirical study conducted in Norway we address the following issue: “What do faculty members of the Norwegian Business Schools consider to be their responsibilities in preparing their students for leading positions in public and private organizations?” Moving on to interpreting the results from the survey, we discuss the empirical findings by comparing (...) the data using four different theoretical perspectives; neo-classical economics, strategic management, corporate social responsibility and socio-economics. The implications are highlighted. (shrink)