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.

It is proposed that mangers have to be moral, have to be concerned about the distribution of benefits and the allocation of harms brought about by their decisions and actions, in order to build trust, commitment, and effort among the stakeholders of the firm. Trust, commitment, and effort on the part of all of the stakeholders are essential for long-term corporate success, given the economic conditions of intense global competition that now exist for the foreseeable future.

Abstract:Organizational justice is a behavioral science concept that refers to the perception of fairness of the past treatment of the employees within an organization held by the employees of that organization. These subjective perceptions of fairness have been empirically shown to be related to 1) attitudinal changes in job satisfaction, organizational commitment and managerial trust beliefs; 2) behavioral changes in task performance activities and ancillary extra-task efforts to assist group members and improve group methods; 3) numerical changes in the quantity, (...) quality and efficiency of divisional outputs; and—though this is far more tentative—4) eventual changes in the competitive advantage and financial performance of the full organization. The authors propose that these constructs can be applied to all stakeholders, rather than just to the current employees of the firm, and that objective determinations of fairness by the managers can be related to subjective perceptions of fairness by the stakeholders that will result in the sequential series of attitudinal, behavioral and numerical changes that will lead to performance improvements. In short, the authors propose a normative stakeholder theory of the firm, based upon ethical principles, that will have testable descriptive hypotheses derived from the behavioral constructs. (shrink)

Professors Bill Shaw and John Corvino, in a response article published in the July, 1996 issue of Business Ethics Quarterly, provide a clearly courteous and obviously well-intended criticism of my original (1994) position on the question of why a manager, and in consequence an organization, should be moral. I disagree with their reasoning and, because I believe that this form of the “Why Be Moral?” question lies at the heart of any potential juncture between our field of business ethics and (...) the economic and behavioral disciplines of business management, I should like to reply in what I hope will be equally courteous and well-intended terms. (shrink)

Abstract:We have a very decent belief structure or general paradigm underlying Business Ethics as a formal field of study. It has an explicit moral base. It can be stated in simple and direct terms. It has been developed over a number of recent years by a group of respected scholars from a variety of academic disciplines. It is, however, subject to multiple interpretations and open to extensive conflicts. We can easily tolerate if not benefit from the differing interpretations. We must—at (...) some point—moderate if not resolve the debilitating conflicts. The argument I wish to make in this paper is that we have reached that point. It is time to resolve the conflicts, and the way to do so is to generate awkward, undeniable facts through basic empirical research. Those facts will then have to be incorporated into acceptable—and eventually accepted—theory. (shrink)

This article is the result of a survey taken to determine the respect and position of Business Ethics as a field of study within Schools of Business Administration. 379 questionnaires were delivered to individual, not institutional, subscribers to Business Ethics Quarterly. 158 were filled out and returned, for a response rate of 41.6%. The general finding from an analysis of those responses is that many persons active in the teaching and research of Business Ethics at large (over 10000 students) and (...) very large (over 30000 students) universities, both public and private, believe that neither their teaching nor their research "count" for merit salary increases and promotion/tenure decisions at their institutions, and that few enjoy high levels of support from deans, faculty, or students. (shrink)

The first issue of Business Ethics Quarterly appeared five years ago. This article classifies the content of the 141 articles that have appeared since that time along 18 dimensions, and 118 categories within those dimensions, to determine trends within the discipline. The major trend appears to be a shift in focus towards the increased discussion of a new approach/paradigm for the field, and towards a normative/descriptive interface of the theory. The major problem seems to be a lack of explicit conceptual (...) definition and beginning empirical effort to support that new focus, which may thus prove unsustainable over time. (shrink)

A group of economists has recently begun addressing questions at the intersection of ethics and economics. They are preparing new definitions of individual choice that combine self-interest and other-interest, new processes of interpersonal exchange that result in cooperation rather than conflict, and new measures of social well-being that include rights as well as outcomes. This article surveys that work, and suggests areas where conceptual inputs from business ethicists are clearly needed, and where multiple opportunities for interactive research are obviously present.

There is a very apparent conflict between economists and ethicists over the moral standards that should be applied to the managers of business firms. The view of most economists is that moral standards in business are not relevant, beyond the normal personal obligations to speak the truth and observe the law, because profit maximizing behaviour, under market and resource constraints, leads inexorably to social welfare optimization. The opposing view of most humanists is that modern markets are not competitive enough to (...) be constraining, that profit maximization often leads to social harm, and that welfare benefits are unjustly distributed. The article examines the moral constructs in microeconomic theory and the ethical objections to that theory at both the pragmatic and theoretic levels, and concludes that inappropriate assumptions about the nature and worth of human beings in the economic paradigm require the use of moral standards for business decisions and actions. (shrink)

Investigations of large scale industrial accidents generally take one of two alternative approaches to identifying the cause or causes of those destructive events. The first is legal analysis, which focuses on the mechanical failure or human error that immediately preceded the accident. The second is socio-technical reasoning, which centers on the complexities of the interlocking technological and organizational systems that brought about the accident. Both are retrospective, and provide little insight into the means of avoiding industrial accidents in the future. (...) This article looks at six levels of managerial responsibility within a firm, and suggests specific changes at all levels that should logically help in the prevention or mitigation of these high impactllow probability events. The most basicneed, however, is for imagination, empathy, and courage at the most senior level of the firm. (shrink)

The first issue of BusinessEthics Quarterlyappeared five years ago. This article classifies the content of the 141 articles that have appeared since that time along 18 dimensions, and 118 categories within those dimensions, to determine trends within the discipline. The major trend appears to be a shift in focus towards the increased discussion of a new approach/paradigm for the field, and towards a normative/descriptive interface of the theory. The major problem seems to be a lack of explicit conceptual definition and (...) beginning empirical effort to support that new focus, which may thus prove unsustainable over time. (shrink)

A very large hydroelectric generating project has been proposed for the northern regions of Quebec. Numerous benefits will be derived from this project: inexpensive power, reduced pollution, and improved quality of life. The native peoples living in the region object strongly, however, and claim that the project will destroy their culture. A 35-minute video describes this conflict and challenges students to make the “build/don't build” decision.

Investigations of large scale industrial accidents generally take one of two alternative approaches to identifying the cause or causes of those destructive events. The first is legal analysis, which focuses on the mechanical failure or human error that immediately preceded the accident. The second is socio-technical reasoning, which centers on the complexities of the interlocking technological and organizational systems that brought about the accident. Both are retrospective, and provide little insight into the means of avoiding industrial accidents in the future. (...) This article looks at six levels of managerial responsibility within a firm, and suggests specific changes at all levels that should logically help in the prevention or mitigation of these high impactllow probability events. The most basicneed, however, is for imagination, empathy, and courage at the most senior level of the firm. (shrink)

Audio-visual material is extremely useful in the teaching of Business Ethics, yet no bibliography of the commercially available films and videotapes seems to be available. We have prepared a formal listing, complete with titles, descriptions, sources, prices and a brief evaluation, and have explained our selection and use of this material.

The authors, one an ethicist and the other an economist, look at the issue of free trade with Mexico and other low wage rate countries from the viewpoints of their disciplines. The conclusion of the paper is that these disciplines differ on their priorities and analytical methods, not on their objectives.