Business ethics should include illicit businesses as targets of investigation. For, though such businesses violate human rights they have been largely ignored by business ethicists. It is time to surmount this indifference in view of recent international efforts to define illicit businesses for regulatory purposes. Standing in the way, however, is a meta-ethical question as to whether any business can be declared unqualifiedly immoral. In support of an affirmative answer I address a number of counter-indications (...) by comparing approaches to organized crime and to corporate crime, comparing the ethical critique of businesses studied in business ethics and those socially banned, and comparing the business ethics assumption as to businesses’ ethicality to societal ethical neutrality regarding war-related businesses. My conclusion: to help advance respect for human rights, business ethicists should apply their expertise to the task of defining illicit businesses. (shrink)

Many scholars and activists favor banning illicit businesses, especially given that such businesses constitute a large part of the global economy. But these businesses are commonly operated as if they are subject only to the ethical norms their management chooses to recognize, and as a result they sometimes harm innocent people. This can happen in part because there are no effective legal constraints on illicit businesses, and in part because it seems theoretically impossible to (...) dispose definitively of arguments that support moral relativism. Progress is being made, however, towards a “second best” arrangement consisting of widespread institutional agreements regarding ethical norms. This development might eventually enable us to transcend moral relativism in some respects. Indeed, although some business ethicists who examine illicit business practices accept moral relativism, others attempt to surmount it. The latters’ endeavor, I show, is cross-cultural in nature in that it involves businesses that are deemed illicit in at least one but not every culture. I then recall some traditional solutions and their limits: ideological teachings are culture-specific, hence both temporally and spatially limited; legal constraints, though potentially helpful, are too diverse hence often narrow in reach. Especially problematic are defense industry businesses, which are inherently transcultural and, though uniquely harmful, are not effectively banned in any culture. Harm to quality of life (QoL) can, however, be measured. So I recommend institutional support for international human rights tied to QoL data as a workable way to counter moral relativism regarding illicit businesses. (shrink)

Business ethicists should examine ethical issues that impinge on the perimeters of their specialized studies (Byrne 2011 ). This article addresses one peripheral issue that cries out for such consideration: the international resource privilege (IRP). After explaining briefly what the IRP involves I argue that it is unethical and should not be supported in international law. My argument is based on others’ findings as to the consequences of current IRP transactions and of their ethically indefensible historical precedents. In particular I (...) examine arguments from political philosophy for more equitable distribution of resources and appeals to property rights as a means of achieving this; business ethicists’ critiques of contemporary resource appropriations; and legal historians’ accounts of despoliation of aboriginal peoples, especially in what is now the United States, involving acquisition via conquest, asserted jurisdiction, and religious and racial preeminence. I also consider relevant human rights’ standards; supportive views of some theorists, especially early modern realists and current supporters of group rights and multidimensional rectification; some de facto incidences of substantive restitution; and proposals for effecting further rectification. (shrink)

There has been an alarming increase in the numbers of illicit massage businesses (IMB) in the United States and the revenue generated by this illegal industry. Although empirical research on IMBs is scant, it is well documented that most of the women exploited in IMBs are immigrant women entrapped in trafficking situations involving commercial sex and/or labor exploitation. First, our research comprises an exploratory study of women exploited in US illicit massage parlors using a sample of news (...) articles highlighting law enforcement raids in the US. Next our research adopts a novel theoretical perspective to develop a conceptual framework of trauma proliferation experienced by these women. Our theoretical analyses build on the literature related to migration, as well as homelessness, to present a framework of trauma proliferation in IMBs. Implications for theory and practice, and how this research has implications towards promoting just and inclusive societies are discussed. Particularly, this work has implications for the well-being and cultural integration of women exploited in IMBs. We also make recommendations for inclusive clinical practices, services, and support resources. (shrink)

. This paper explores the relationship between gift giving, guanxi and corruption through a study of the relationships between UK manufacturing companies in China and their local component suppliers. The analysis is based on interviews in the China-based operations of 49 UK companies. Interviews were carried out both with senior (often expatriate) staff and with local line managers who were responsible for everyday purchasing decisions and for managing relationships with suppliers. The results suggest that gift giving is perceived to be (...) a significant problem in UK-owned companies in China. However the relationship between these payments and established understanding of gift giving within guanxi-networks appears to be weak. Gift giving appears to be associated with illicit payments, corruption and the pursuit of self-interest. Firms seek to reduce the incidence of illicit transactions by changing staff roles, instituting joint responsibilities, which include the separation of different aspects of sourcing/purchasing, ineasing the involvement of senior staff in the process and through the education of employee and suppliers. (shrink)

The essay begins with an explanation of St. Alphonsus Liguori’s understanding of the distinction between formal and material cooperation, identifying also some problems inherent in that understanding. The essay goes on to expound related ideas in the writings of St. Thomas Aquinas, ideas that are applicable to cases not easily analyzable by means of the distinction between formal and material cooperation. The essay then applies these ideas to two contemporary issues: the use of vaccines connected in some way with abortions (...) and the objection by the Little Sisters of the Poor to the contraceptive mandate issued by the US Department of Health and Human Services. (shrink)

This research explores the relationships between business students’ academic misconduct and their attitudes toward professional ethics, specifically credential embellishment and business unethicality. Based on 135 survey responses from business students in a northwestern university, we tested hypothesized relationships using multiple regression analyses. We found that students’ attitudes toward academic misconduct, especially illicit collaboration and exam cheating, were positively correlated with their attitudes toward credential embellishment, unethical business operations, and unethical employee practices. In addition, gender yielded meaningful differences related to (...) perceptions of both dimensions of business unethicality. We emphasize the importance of ethics education, and suggest actionable remedies including placement of strict policies, promotions of shared norms and cultures, and curriculum redesign guidelines for business educators and administrators. (shrink)

The aim of this paper is to evaluate the prevalence in the 27 member states of the European Union of a little discussed illicit wage arrangement in which formal employees are paid two wages by their formal employers – an official declared salary and an additional undeclared wage, thus allowing employers to evade their full social insurance and tax liabilities. Reporting the results of a 2007 Eurobarometer survey involving 26,659 face-to-face interviews, the finding is that one in 18 formal (...) employees received such an envelope wage from their formal employer and that envelope wage payments are more prevalent in member states with lower (rather than higher) levels of state intervention. The tentative conclusion is that illicit envelope wage payments are a product of under-regulation, rather than over-regulation, and that further research is now required to test the validity analysis of this thesis in other global regions. (shrink)

I explored the relationship between the “Black Axe” Confraternity and cybercrime, with a particular emphasis on the structural dynamics of the Business Email Compromise (BEC) schemes. I investigated whether a conventional hierarchical system governs the membership and remuneration for BEC roles as perpetrators by interviewing an accused “leader” of the “Black Axe” affiliated cybercriminal incarcerated in a prominent Western nation. I supplemented the analysis of interview data with insights from tapped phone records monitored by a law enforcement entity. I merged (...) Actor-network theory and Social Network theory as analytical frameworks and thematically analyzed data to produce six overarching themes: (1) The fluidity of Structure and Adaptive Roles in BEC, (2) Challenges in Visualizing Criminal Networks, (3) Globalization and Transnational Dimensions, (4) Social and Cultural Influences, (5) Internal Cybersecurity Threats and Money Laundering, and (6) Remuneration and Influences of Cryptocurrency, casting a brighter light on the topic. Unlike traditional organized crime, BEC scammers have adopted a nonhierarchical model that is flexible and fluid. I found no evidence of a rigid hierarchy dictating positions and remuneration for BEC roles. Instead, I observed that cybercriminals involved in BEC activities functioned horizontally, promoting fluidity, maneuverability, collaboration, and specialization across various facets of their illicit pursuits. I also highlighted the cross-border links BEC offenders have with other criminal actors facilitated by Black Axe organizational machinery. My research adds value to the existing body of knowledge, utilizing a unique dataset comprising direct testimonies of a high-profile BEC offender affiliated with the ‘hard–to–access,’ Black Axe gang. (shrink)

Despite the depiction of decisions to formalize informal firms as rational and ethical, many entrepreneurs in developing countries continue to operate informally regardless of its perceived illicit status. While existing research on why entrepreneurs choose informality emphasizes the economic costs and benefits of such decisions, this often overlooks the realities of the informal economy and the constraints which marginal populations—particularly women—face. In this paper, we use institutional theory and sensemaking to understand the experiences of women in the informal economy (...) and what formalization means to them. We use a qualitative approach to collect data from 90 women entrepreneurs in three different cities in Nepal. In our findings we identify three groups of women with distinctive understandings of formalization—business sustainability, livelihood sufficiency and strategic alignment. Their interpretation of formalization reveals the complex, dynamic, and cyclical nature of formalization decisions. Decisions are also guided by the optimization of social and emotional logics, whereby formalization is conceived differently depending on different life stages, experiences within the informal economy and wider socio-cultural contexts. Our findings highlight the ethical implications of formalization where being a ‘good citizen’, rather than complying with formal rules and regulations, is about attuning to and fitting in with socially prescribed roles. Our research provides a nuanced view of formalization decisions, challenging idealized and ethical notions of formalization as a desired end state. (shrink)

Under higher education’s contemporary consumer model, students are treated as customers and professors are encouraged to increase student engagement through more personal out-of-class interactions, often in social settings. In the course of this more personal student-faculty involvement, students inevitably encounter or learn of their professors’ occasional inappropriate or unethical behavior. In the present study, we investigated the impact of 145 American undergraduate Business students’ perceptions of their professors’ inappropriate out-of-class behavior on student beliefs and in-class behavior. Results indicate that student (...) perceptions of professors engaging in inappropriate out-of-class behavior were associated with students viewing these professors as lower in ethical character and reporting a stronger likelihood of attending these professors’ classes under the influence of alcohol and illicit drugs, swearing and using vulgarity in these professors’ class discussions, and showing disregard for these professors’ rules, time, and effort. These relationships held even when student grade satisfaction and professor in-class behavior were accounted for. Our results suggest professors’ behavior outside the classroom may impact students’ behavior inside the classroom, re-igniting dialogue regarding the professorial role and the boundaries on oversight of that role. We offer suggestions as to how higher education may address these concerns without infringing upon professors’ personal freedoms. (shrink)

This philosophical narrative delves into deepening crises afflicting modern democracies, when extreme inequality and its resultant alienation grips not just adults but, even more anguishingly, children. These children and often their parents come in far under the social radar, so out-of-touch that even census takers overlook them. In this milieu, weapons and narcotics are as much an unquestioned part of life as breathing. The world beyond this invisible cage entirely escapes them, nor does the larger society miss them or know (...) about them. This documentary narrative follows a thirteen-year-old who forces himself to escape his oblivious father, not out of hope, but for sheer escape from the execrable situation, without even the will to be himself, whatever that is. He also must navigate through his nightmare existemce, relying on an illicit business, the only thing he knows as well as breathing. If the individuals in this milieu--which cut across racial boundaries--ever even hear of voting, they are drawn to strong-arm politicians, who appeal to these scattered inhabitants, as examples of strength, no-nonsense, even hatred. The ethics of such circumstances' mere existence--further extreme than even those in Les Miserable--in our societies poses a formidable challenge to the ethics of social and political philosophy and are hardly touched upon in the academic literature. The central philosophical question is whether it is possible for a political system to preempt such conditions, particularly when these individuals, especially the children, are veritably invisible. The metaphilosophical issue is why philosophy does not focus more concern about this ignored human morass. To say an indictment of soiciopolitical philosophy is not justified here, that the persons encountered here are merely messed-up self-indulgent people, only adds cause to the charge. (shrink)

Teaching business ethics classes can often be difficult because many students memorize enough of the moral theories to pass their tests, but never understand the motivating spirit underlying the theories. The result is that students are able to apply the moral principles to various situations, but produce the wrong results due to their illicit biases and rationalizations.What is needed is a practical test, which will strip away as many biases and rationalizations as possible, while at the same time emotionally (...) connecting the students to why morality is important in business. My suggestion is the Moral Paradigm Test, which is a version of the Ideal Person Standard. (shrink)

Barnett and Block (Journal of Business Ethics, 2009 ) attack the heart of modern banking by claiming that the practice of borrowing short and lending long is illicit. While their claim of illegitimacy concerning fractional reserve banking can be defended, their justification lacks substance. Their claim is herein strengthened by a legal analysis of deposits and loans based on Huerta de Soto (Money, Bank Credit and Economic Cycles, 2006 ). A combined legal and economic analysis shows that while lending (...) deposits can be regarded as illicit, the maturity mismatching of loans is legitimate contrary to Barnett and Block’s claim. No over-issuance of property rights is involved with this practice once the distinction between present and future goods is taken into account. However, while the practice is not illicit per se , it is greatly assisted and developed through the presence of a fractional reserve banking system, and can sometimes breed detrimental effects. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Reviewed by:Confessions of a Poisoner, Written by HerselfGail K. Hart (bio)Confessions of a Poisoner, Written by Herself. Translated and introduced by Raleigh Whitinger and Diana Spokiene. New York: MLA, 2009. xliii + 196 pp. $12.95.Confessions of a Poisoner is an epistolary, autobiographical novel, first published anonymously in German as Bekenntnisse einer Giftmischerin in 1803. Lurid accounts of sex, incest, murder, and other crimes contributed to its status as a (...) sensational document in its day, especially in light of the illicit activities of the Countess Charlotte Ursinus, who was arrested and prosecuted for multiple poisonings allegedly committed between 1779 and 1803. Readers were eager for details of the countess's affairs and crimes, and the novel can indeed be read as an account, perhaps her account, of a very busy life of iniquity.The book is extremely engaging, and absorbing because our autobiographical narrator has unusually acute insight into human affairs and human character. From early youth, she finds pleasure in the art of seeming and she is proud of the skill with which she reads those who have something to offer her. Indeed the book could double as a seminar in social manipulation as the narrator negotiates her culture's obstacles to women's self-fulfillment. One is often reminded of George Lillo's murderous Millwood from The London Merchant, who in 1731 made the observation:It is a general maxim among the knowing part of mankind that a woman without virtue, like a man without honor or honesty, is capable of any action, though never [End Page 68] so vile. And yet what pains will they not take, what arts not use, to seduce us from our innocence and make us contemptible and wicked, even in their own opinions?(I:3)The narrator of Poisoner, though she might agree with Millwood, sees her part in the vile actions as both determined and chosen. The early steps of corruption were abetted by passion (incited with some calculation by early lovers) but also by the education she received, which she describes as being more masculine than feminine. Her father's failure to guide and restrain her thirst for knowledge has apparently left her with the ambitions of a conquerer and the social duties of an aristocratic woman—and, as Countess Orsina would have it, where men use daggers, women use poison. Yet she also accepts responsibility for all that she has done, quite convinced that most of it was wrong. The moral philosophy of the piece is somewhat peculiar, but she strives in the space of the one long letter that makes up the book to give an honest account of her duplicitous deeds.This intriguing life story also has significant scholarly value, and the editors/translators, Raleigh Whitinger and Diana Spokiene, have appended an excellent introduction that examines the poisoner's confessions as a document of its time. Our narrator is both wise and well-educated, and she discourses frequently on contemporary literature and philosophy, inserting herself into a variety of cultural debates. For example, her opinions on the value of Richardson's novels for the education and protection of young woman—that Richardson's ideals of virtue are delusional and therefore dangerous—run counter to prevailing wisdom on what young ladies should read. Her struggles with Kant and critical philosophy, which, she claims, diminished her pulchritude, are also instructive. Additionally, the editors make a very convincing case for the authorship of Friederike Helene Unger, whose husband was the publisher, and whose other works bear certain strong resemblances to the prose and the ideas of Poisoner.All of this excitement and knowledge comes to us in a supremely lucid and readable translation. I rarely read fiction in translation without being regularly reminded in some way of the translator. One sees an odd word, puzzles out a sentence and thinks about how one might have done that differently—and one gets distracted. That is not the case with this text, and this is especially surprising because the original German is that "of an era both culturally and historically distant" (xxvii). Whitinger and Spokiene have done a superb job of resurrecting a forgotten German text, embedding it in... (shrink)

Euthanasia advocates argue that end-of-life decisions should be based on patients’ autonomous evaluations of their own quality of life. The question is whether a patient’s quality of life has deteriorated so far as to make death a benefit. Criteria for evaluating quality of life are, however, unavoidably arbitrary and unjust. The concept is difficult to define, and human autonomy has limits. This essay discusses the moral issues raised by quality-of-life judgments at the end of life: who makes them, what criteria (...) they use, and what clinical actions the conclusions justify. It then looks at ways in which quality of life can be considered legitimately, in relation not to euthanasia, which is always illicit, but to specific proposed treatments. If a patient decides to forgo treatment, the decision should be based on the judgment that the treatment, its side effects, or its long-term consequences would be excessively burdensome or useless. (shrink)

The principal theme of this paper is secondary liability ‐ to what extent should we hold those who cooperate in wrongdoing and illicit behavior accountable? We probe this question by considering a lawsuit filed by the entertainment industry against the file‐swapping services of Grokster and StreamCast. Our focus is on the legal and moral implications of this case. We argue that the courts, which have so far ruled in favor of the defendants, have misapplied the socalled Sony precedent for (...) two reasons. The business model of these companies depends on copyright infringement with advertising volume directly proportionate to the level of that infringement. Also, Sony’s safe harbor should not apply if there is active inducement of infringement. The key ethical question is the extent to which technological innovators must design and write their code to deal with infringement ex ante. We argue that purveyors of peerto‐ peer technology are formal cooperators in wrongdoing if they deliberately configure their system to enable the illicit copying of copyrighted music and movie files. We also consider the conditions for unjustifiable material cooperation, and propose these conditions as a normative standard especially relevant for software vendors. (shrink)

This research analyzes how family embeddedness affects the decision of owners in charge of small entrepreneurial family firms operating in an emerging country to participate in private-sector corruption. Prior research has typically assumed that those in charge of family firms choose to participate in corruption to receive an immediate economic benefit. We challenge this assumption and argue that family influences the decision of the owner of small entrepreneurial family firms to participate in private-sector corruption driven by the pursuit of both (...) short-term economic (profit maximization) and long-term non-economic goals, including attaining upper social class status (even if this decreases economic gains) for the family unit. We further find that in the context of an emerging market, trusted intermediaries can be seen as family members by the owners in charge of small entrepreneurial family firms and can influence them to participate in illicit activities. We also contend that those in charge of small entrepreneurial family businesses manage participation in private-sector corruption by dissociating and framing means. (shrink)

Cryopreservation and vitrification are techniques employed in fertility clinics to preserve embryos not used in in vitro fertilization cycles. These frozen embryos carry the dignity of persons, and it has been suggested that they could be unfrozen and adopted. Experts have offered divergent opinions on the legitimacy of this practice. This essay reviews the debate and offers a phenomenological description of embryo adoption considered in itself, as well as reflections on current circumstances which the author proposes make embryo adoption not (...) only imprudent but illicit. (shrink)

There is a long-standing interest in business ethics around the concept of free will, but study of its possible influence on consumer behavior is only in the nascent stage. This lack of research is particularly acute in certain consumption contexts, especially ones based on highly restricted access that appear to suggest abrogation of the will. In this paper, we offer a novel approach that involves reexamination of qualitative/ethnographic research that has chronicled consumption restrictions without consideration of potential implications for free (...) will. Using a new reanalysis method, we show that some of what is described as “vulnerability” using other theoretical paradigms is subsumed within this domain. Findings demonstrate that a complex relationship between free will and various consumption processes and outcomes exists that is acted out within and outside licit and illicit/formal and informal markets. These restrictions allow for a different vantage point to address free will and consumption, with implications for business ethicists and researchers interested in human quality treatment or human dignity-centered business frameworks. (shrink)

This paper addresses a certain lacuna in moral theological reflec­tion. An institutional review board (IRB) reviews research on human subjects and so represents the institution’s ethical review mechanism for research. The author argues that if an IRB approves a research project that is immoral, it thereby implicates the institution in formal cooperation. The author also argues that numerous ethical concerns are created by current research enterprises—concerns that extend beyond the “usual suspects” of embryonic stem cell research and research using cell (...) lines of illicit origin. The author describes these more subtle issues and shows how IRBs at Catholic hospitals can navigate them. National Catholic Bioethics Quarterly 11.2 (Summer 2011): 257–266. (shrink)

We stipulate, arguendo, that fractional-reserve-demand deposit banking is per se fraudulent. We ask whether or not time deposit banking can also be illicit, and answer in the positive, if there is a mismatch between the time dimensions of deposits and loans. To wit, if an intermediary borrows short and lends long.

At the close of Philosophy and the Mirror of Nature Richard Rorty lays out a contrast between what he calls 'systematic' and 'edifying' philosophical anthropologies. Whereas the systematic philosopher aims to speak for the ages, the edifying philosopher addresses herself to issues of her day, often by way of shattering conventional idols. Rorty sees these two approaches as mutually exclusive. The aim of this paper is to defend a conception of philosophy as both systematic and edifying in the relevant senses. (...) I first respond to Rorty's argument that Wilfrid Sellars' account of picturing, as an isomorphic relation between the world and states of the central nervous system, involves an illicit 'mind as mirror' metaphor. I then lay out some of the philosophical anthropology that motivates Sellars' account of picturing, and I connect this anthropology to philosophical and scientific work undertaken in Europe and America in the nineteenth and early twentieth centuries. On this basis I argue that we are left with a (systematic) project handed down to us by earlier generations, and that in taking up this project we are in the (edifying) business of creating new ways of thinking about ourselves as part of the natural world. (shrink)

This paper examines ethical, legal and economic dimensions of the decision facing employers regarding whether it is appropriate to monitor the electronic mail (e-mail) communications of its employees. We review the question of whether such monitoring is lawful. Recent e-mail monitoring cases are viewed as a progression from cases involving more established technologies (i.e., phone calls, internal memoranda, faxes and voice mail).The central focus of the paper is on the extent to which employer monitoring of employee e-mail presents a structure (...) of costs and benefits to the employer which are unlikely to make such a practice profitable or practical to the employer. The practice of employer monitoring to detect illicit employee behavior (e.g., fraud, harassment of fellow employees, industrial espionage) is considered. (shrink)

Certain scholars wish to acquit St. Thomas Aquinas of the “illicit inference from facts to norms” commonly referred to as the naturalistic fallacy. Seeing in certain passages his awareness of illegitimate ways to derive morality from natural ends, many have come to read Aquinas as agreeing with the view that knowledge of the moral order does not derive from knowledge of human nature and of the natural ends of its parts and powers. This paper aims to expose the deficiencies (...) of this reading as a way of bringing more fully into view the whole thought of Aquinas on the question. National Catholic Bioethics Quarterly 13.4 : 637–661. (shrink)

Human cell lines are well-characterized laboratory cultures of human cells derived from a single source. In recent years, much moral controversy has surrounded human cell lines and biological materials obtained from aborted fetuses and destructive human embryo research. Dignitas personae instructs scientists of good conscience to avoid using biological materials of illicit origin, to distance themselves from evil, and to avoid scandal. The author suggests that the Instruction allows a scientist to delay discontinuing the use of a morally controversial (...) cell line for a reasonable amount of time and allows a citizen of conscience to financially support—in a limited and restricted manner governed by prudence—philanthropic organizations that fund controversial biomedical research programs. National Catholic Bioethics Quarterly 10.2 : 265–272. (shrink)

The author applies the definitions of surrogacy offered by Donum vitae to the question of embryo adoption and shows that embryo adoption does not in fact constitute an act of surrogacy. The author shows that neither Donum vitae nor Dignitas personae condemns heterologous embryo transfer or embryo adoption per se but only when these acts also involve illicit forms of artificial fertilization or surrogacy. The author suggests that the apparent reason for a lack of endorsement of embryo adoption by (...) Donum vitae and Dignitas personae is pastoral caution, concern for scandal, and the connection between embryo adoption and IVF; it is not because embryo adoption is intrinsically illicit. National Catholic Bioethics Quarterly 11.2 (Summer 2011): 249–256. (shrink)

The following is excerpted from Sean Gurd’s translation of Euripides’ Hippolytus published with Uitgeverij this year. Though he was judged “most tragic” in the generation after his death, though more copies and fragments of his plays have survived than of any other tragedian, and though his Orestes became the most widely performed tragedy in Greco-Roman Antiquity, during his lifetime his success was only moderate, and to him his career may have felt more like a failure. He was regularly selected to (...) have his plays performed in the annual festival of Dionysus at Athens. But the plays were performed in a competition, and in the competitions he lost and lost, winning first place only five times in a career that spanned more than forty years. His corpus reads like the remains of a life spent trying to get a few things right and never being quite satisfied: scenes and schematized combinations of elements recur again and again, each time slightly changed. Hippolytus itself is an example: it contains two scenes in which a sick or dying character lies on a couch or a stretcher and is surrounded by silence and grief; he had experimented with such scenes in Alcestis, and would work with them again in Herakles and Orestes. Nor, judging from appearances, was he immune to the desire to score a hit, or to satisfy the audiences and the judges at the competition. Hippolytus is a rewrite of another Hippolytus, performed several years earlier, which scandalized the audience and certainly did not take first place. In that earlier Hippolytus (called by later writers Hippolytus Veiled), Euripides fashioned a Phaedra who was neither ashamed of loving her stepson nor incapable of taking steps to satisfy her desire. The forwardness of her approach to Hippolytus so outraged him that he covered his head with a robe (hence the play’s later title). Euripides liked to write energetic and self-confident women like this. He staged his Medea in 431, just three years before he revised Hippolytus, and in it the jilted title character murders her children in revenge for Jason’s new marriage to a more politically advantageous wife. Another flop: the play came in third of three. Evidently the judges did not like their women showing agency, especially when the consequences were transgressive. “The ornament of women,” wrote another great Athenian a little earlier, “is silence.”i Euripides’ Medea and his first Phaedra had other decorations. So three years after Medea crashed and burned and some time after the first Hippolytus suffered the same fate, he produced another Hippolytus play with a different setting and story. How could this one not have been a reaction to the failure of the first? “Second thoughts are always better,” he has one of his characters say, as though he were offering an apology for his first thoughts on the same story. In this new version, Phaedra is suicidally ashamed of her love, choosing to die rather than have it discovered, and willing to bring down her beloved Hippolytus in the service of the same end. Now it is Phaedra herself who covers her head in shock and horror at her desire. Only an intermediary, a slave of the house and an old crone with her fingers in all sorts of illicit pots, communicates Phaedra’s secret – against orders – and in consequence brings about the demise of two resolutely moral figures. It worked. For his tale of two well-born nobles with an unswerving commitment to moral action, destroyed by the meddling of a slave (and by the hostility of some particularly uncaring divinities), the judges crowned Euripides winner. It was the first time he had won, after almost thirty years of work. *** What Hippolytus wants more than anything else, as he protests with outrage just before leaving Trozen for the last time, is the benefit of due process – oaths, witnesses, an investigation that would reveal who really lusted after whom. Ironic, given that in the first Hippolytus, as far as we can make out, he did get a trial – but too late, and Theseus’ successful processing of Hippolytus failed to prevent his death. I cannot help hearing in the second Hippolytus’ complaints the anger of his authorial semblable who lost year after year by a process of judging that might have seemed brutal to him. Judges took no cognizance of how he worked, how long or hard or why; they just voted, and Euripides lost. But then I hear, in the fate of the first Hippolytus, an even grimmer commentary. Processed or not, we lose. We run aground. At the very least, this might cast a darker shadow on the business of watching or reading a play: in that twilight, things move too fast to make a fair assessment and, in any case, the reasonably high definition of what you see and hear belies the truth of indistinction, the multiplicities just below the surface. Watching is a constrained activity, a form of captivity, but reading is plastic. This translation was begun to supply the script for an audio version of the play, recorded in the spring of 2012, and here and there it sacrifices literalness for sayability and the voices and passions of the actors on that occasion. But it was finished to be read, and engineered to create a reading caught between the poles of specificity and non-specificity that the play itself conjures and relies on at its generative core. Thus two texts: the one clear, perhaps overprecise, respectably modern in its presentation, and the other ancient, a reasonable approximation of the classical reading process, and indistinct in vital ways. Like early modern dramatic texts, the exact provenance and original function of the scripts that have made it down to us are unknown. We do know that the ultimate survival of Hippolytus was thanks to its wide-spread use as a school text. But its relation to the first performance in 428 BCE is a matter only of speculation. Euripides presumably had a fair copy before production began; it was probably modified during rehearsals. The actors may have had copies, too (probably the young men who served in the chorus did not). The chor?gos, a wealthy Athenian who paid for the production, might have been presented with or just made sure to get his hands on a high-quality text, to commemorate the play’s success. Fans might have been able to buy copies. Any one of these sources might have provided the ultimate progenitor of our text. Several of them might have, in fact, if later editors compared and conflated traditions. The plays toured extensively in the Greek-speaking world, and were restaged as repertoire for centuries afterwards. In the process they were subjected to enough modifications by producers and actors that in the later fourth century the Athenian statesman Lycurgus had a law passed prohibiting performances at Athens from deviating from the official “city” text of the tragedies (which he had commissioned). It is unlikely that the city text was the last word; but it marks an important moment in Athens’ role in their dissemination, since after this the major sites of textual curatorship moved overseas, to Alexandria, Pergamum, Rome, Antioch, Constantinople. Any single text of any single play is thus no more than a moment of clarity and stability, crossed and subtended by multiple vectors of change, including that of textual flux (from Euripides’ first drafts to the latest printed text) and that of Euripides’ life work as a writer, in the light of which the Hippolytus is just one attempt to produce something exactly right, to win the prize or finally satisfy himself or prove to himself that all this longing for perfection was a waste of time. I am intrigued by the possibility that a single text might somehow serve as a lens onto this wider zone of indistinction, representing a small region clearly but nonetheless containing a blurred image of the whole, like a Leibnizian monad. After all, no text is a witness: it is, rather, a perception and a performance, and what every Hippolytus must perform is the awkward overlay of singular and plural, social practise and subliminal drive, that structures the tragedy. Modern critical editions can do this by juxtaposing a (relatively) clean and simple text with a textual apparatus reporting variants and theorizing the relationship between textual instantiations. A translation lacks the resolution to catch the fine variations which feed into the construction of an apparatus. But there are other means to hand. Guessing at the exact words of the original text is always just that – guessing – though Hippolytus is less problematic than plays like Iphigenia at Aulis. But we can make a pretty secure guess at what such a text looked like. Texts read by fifth-century readers were fundamentally different from what is presented in the best medieval MSS and printed in modern publications. The texts of Euripides’ time and for many centuries afterwards did not indicate word division with spaces (or by any other means) and were extremely sparing in punctuation, often avoiding it altogether. There was only one “case” of letters – what we call “capitals.” Musical sections were inscribed as though they were prose, without line endings to reflect their rhythm or their rhetorical structure. There was no indication of the speakers within a dramatic text, either. The earliest surviving dramatic texts, which come from over a century after Euripides’ death and a time which was much more elaborate and precise in its textual culture, indicated speaker-change with a little line or paragraphos below the line and a double-point [:] at its end. This convention almost certainly does not date back to Euripides’ own time; it may not even date to Lycurgus. In any case, such indications were understood to be readers’ marks: they did not have the same authority as the text and they were subject to readers’ revisions. At least ideationally, if not in concrete and distinguishable fact, a dramatic text was understood as containing no indication of speaker-change (and certainly none of who was saying what). The reader had to figure that out for him-/herself. The clear, legible, easy texts we are accustomed to reading are the fabrications of medieval and modern reading cultures. The first text, then, presents the translation as the text would have been in the mid-fourth century, perhaps decades after Euripides’ death. The second text processes Hippolytus, makes sense of it and makes it “readable.” That is: too distinct, dangerously so. It gets in your way, conjures fantoms, tries to make you see. Fragments of the Hippolytus Veiled, otherwise almost entirely lost, are juxtaposed with similar passages in the text – not to suggest a reconstruction, but a dialogue and a complex set of reassessments. I have not tried to represent the full variety of textual variants, but I have signalled where, for one reason or another, the text is soft and different editions propose excisions or changes. The two texts must be read together: you, reader, form the bridge between the distinctly seen and the indistinct invisible. You, in the end, will be its mask. *** illsandhateddiseaseswhatcanidoforyouwhatshouldinotdohereisthelightandthebrightairyoursickbedisnowout s idethehouseyoureverywordwastocomeherebutyouwillrushbacktoyourbedroomagainyoufadequicklyyoudelig htinnothingyoudislikewhatyouhaveyoulovewhatyoudontitsbettertobesickthantendthesickthefirstissimpleto the secondattachesheartspainandhandsworkeveryhumanlifeispainfulthereisnoendtotoildarknesshidesbehindclo udswhateverisdearerthanlifeweproveunhappyloversofwhatshineshereforlackofknowledgeofanotherlifethere isnoproofforthingsbeneaththeearthonlystoriessustainus liftmybodystraightenmyheadthebondsofmylimbsareloosenedtakemyhandsandmypalearmsthishatistooheavy formyheadtoweartakeitoffspreadmyhairovermyshoulders couragechilddonttossandturnsoviolentlyyouwillbearyoursicknessmoreeasilywithpeaceandanoblemindallmort alssuffer aiaiiwanttodrinkpurewaterfromadewyspringiwanttoliebackandrestunderthetreesinsomegrassymeadowchildw hycrydontsaythesethingsnearthecrowdhurlingwordsmountedonmadness sendmetothemountainiwillgototheforestwherebeastkillingdogspressthespotteddeergodsilongtoshouttothedo gstoshootthethessalianjavelinpastmyblondhairtoholdthebarbeddartinmyhandwhythisanxietychildwhatdoyouc areabouthuntingwhydoyoulustforflowingspringstheresahillwithwaterjustnexttothetowerwecangetyouadrinkt h ereartemismistressofthesaltlakeandthecoursethunderingwithhorseshoovesiwishiwereonyourplainsbreakings t uds whythrowthesefrenziedwordsaboutjustnowyouweresettingoutforthemountaintohuntandnowyoulongforhorses onthewavelesssand thesethingsneedanoracletotellwhichgodreinsyouinanddrivesyoufromyoursenseschild whathaveidonehowfarhaveibeendrivenfromgoodthoughtsiwascrazyiwascursedbysomepowerpheupheualasn ursecovermyheadagainimashamedofwhativesaidcovermeatearmovesdownfrommyeyeanditembarrassesm eithurtstostraightenourmindanditisterribletobeinsanebesttodiebeforeyoubecomelucidagain illcoveryoubutwhenwilldeathcovermeimoldivelearnedalotmortalsshoulddrinkoffriendshipmoderatelynotfrom th edeepestmarrowofthesoulamindslovecharmsshouldbeeasytoundoorthrustawayortiemoretightlyitisaverydiffic ultweightforonesoultolaborovertwopeopleasiamwrackedbypainforhertoomuchdisciplinecausesmoreharmthan pleasureandwarswithhealthipraisetoomuchlessthannothinginexcessandthewiseagreewithme *** Scene 1 Enter Phaedra and the Nurse; the former is recumbent on a couch while the latter bustles about her with gestures that might be those of a caregiver or a guard. NURSE Ills and hated diseases! What can I do for you? What should I not do? Here is the light, and the bright air; your sick bed is now outside the house. Your every word was to come here, but you will rush back to your bedroom again. You fade quickly. You delight in nothing. You dislike what you have. You love what you don’t. It’s better to be sick than tend the sick – the first is simple. To the second attaches heart’s pain and hand’s work. Every human life is painful. There is no end to toil. Darkness hides behind clouds whatever is dearer than life. We prove unhappy lovers of what shines here for lack of knowledge of another life. There is no proof for things beneath the earth. Only stories sustain us. PHAEDRA Lift my body, straighten my head: the bonds of my limbs are loosened. Take my hands and my pale arms. This hat is too heavy for my head to wear. Take it off, spread my hair over my shoulders. NURSE Courage, child; don’t toss and turn so violently. You will bear your sickness more easily with peace and a noble mind. All mortals suffer. PHAEDRA Aiai. I want to drink pure water from a dewy spring. I want to lie back and rest under the trees in some grassy meadow. NURSE Child, why cry? Don’t say these things near the crowd, hurling words mounted on madness. PHAEDRA Send me to the mountain. I will go to the forest where beast-killing dogs press the spotted deer. Gods! I long to shout to the dogs, to shoot the Thessalian javelin past my blond hair, to hold the barbed dart in my hand. NURSE Why this anxiety, child? What do you care about hunting? Why do you lust for flowing springs? There’s a hill with water just next to the tower; we can get you a drink there. PHAEDRA Artemis, mistress of the salt lake and the course thundering with horse’s hooves: I wish I were on your plains breaking studs! NURSE Why throw these frenzied words about? Just now you were setting out for the mountain to hunt – and now you long for horses on the waveless sand. These things need an oracle to tell which god reins you in and drives you from your senses, child. PHAEDRA What have I done? How far have I been driven from good thoughts? I was crazy, I was cursed by some power. Pheu pheu. Alas. Nurse, cover my head again. I’m ashamed of what I’ve said. Cover me – a tear moves down from my eye and it embarrasses me. It hurts to straighten your mind and it is terrible to be insane. Best to die before you become lucid again. NURSE I’ll cover you. But when will death cover me? I’m old; I’ve learned a lot. Mortals should drink of friendship moderately, not from the deepest marrow of the soul. A mind’s love-charms should be easy to undo, or thrust away, or tie more tightly. It is a very difficult weight for one soul to labor over two people, as I am wracked by pain for her. Too much discipline causes more harm than pleasure and wars with health. I praise “too much” less than “nothing in excess,” and the wise agree with me. ***. (shrink)

Legitimate corporations exist within a common space that is shared with a different type of organization, one that is engaged in illicit or criminal activities.Activities taking place in this sector of the global commons threaten the integrity of the global markets and contribute to public distrust of corporations. In addition, they are placing legitimate organizations in an unanticipated and unwelcomed role within a larger law enforcement regime that requires them to participate in preventing the legitimization of illicit monetary (...) gains through money laundering. This paper provides information on the global initiatives implemented to curb money laundering. It concludes with a discussion of needed research. (shrink)

A recent consensus statement claimed that double effect can justify induction of labor before viability when life-threatening pathological complications arise from the interaction of a normally functioning placenta with the diseased heart of the mother. The authors of this essay agree. They analyze two pieces published in response, using the framework of the first and fourth criteria of double effect; identify and attempt to clarify inaccuracies and other sources of ambiguity in the discussion; and acknowledge practical implications for other scenarios (...) previously considered illicit. They conclude that more thorough medical and moral discussion is needed regarding the fourth criterion, even if the act itself is not intrinsically evil. National Catholic Bioethics Quarterly 15.2 : 251–261. (shrink)

Dialogue about the moral permissibility of sex reassignment surgery (SRS) in Catholic health care has recently received considerable attention. In an effort to further this discussion and bring clarity to the debate, the author uses Pope St. John Paul II’s robust theological and philosophical anthropology to evaluate the morality of SRS and enter dialogue with current arguments that suggest SRS is morally licit. The author argues that John Paul II’s anthropology renders SRS morally illicit. Moreover, current arguments supporting SRS (...) rely on an anthropology of body–soul dualism. This conclusion suggests that future arguments for the permissibility of SRS in Catholic health care will always be invalid if they fail to uphold the body–soul unity of the person. (shrink)

Difficulties in the moral assessment of embryo transfer and adoption include distinguishing it from illicit procedures like IVF and cryopreservation, determining the moral status of the human embryo, and reconciling embryo transfer and adoption with the procreative and unitive aspects of marriage. Many scholars who support embryo transfer and adoption limit their discussion to heterologous embryo transfer, the transfer of a genetically unrelated embryo into the uterus of a married woman. In this paper, the author focuses on homologous embryo (...) transfer, the transfer of a genetically related embryo, as a viable option for married couples. It is the responsibility of the genetic mother to implant her embryos regardless of how they were created. When this option is not feasible, heterologous embryo transfer is possible in limited circumstances. (shrink)

The question of embryo adoption remains unresolved. Dignitas personae expresses reservations about the practice, but does not reject it. A proper interpretation of Dignitas personae n. 19 shows that the Vatican does not hold that human embryo adoption is intrinsically immoral, but that the question of its morality depends on the circumstances that surround the practice. Embryo adoption as practiced today is often compromised by illicit cooperation with objectionable reproductive technologies; nonetheless, it is possible to identify a best case (...) scenario which may lessen or even eliminate these concerns. That best case is when a Catholic couple, who have not previously utilized in vitro fertilization to overcome a problem of infertility, adopt an abandoned embryo and choose to raise that child as their own. National Catholic Bioethics Quarterly 10.2 (Summer 2010): 329–347. (shrink)

Abstract:One so-called paradox of blackmail concerns the fact that “two legal whites together make a black.” That is, it is licit to threaten to reveal a person’s secret, and it is separately lawful to ask him for money; but when both are undertaken at once, together, this act is called blackmail and is prohibited. A second so-called paradox is that if the blackmailer initiates the act, this is seen by jurists as blackmail and illicit, while if the blackmailee (the (...) person blackmailed) originates the contract, this is commonly interpreted as bribery and is not illicit.But these are paradoxes only for legal theorists innocent of libertarian theory. The authors use that perspective to reject the claim that blackmail should be unlawful. If this act were legalized, then both paradoxes would disappear, precisely their contention. (shrink)

The recent Instruction Dignitas personae from the Congregation for the Doctrine of the Faith formally addresses the issue of the use of biological material of illicit origin. We now face the challenge of applying the principles it sets forth to daily realities. While the issue of vaccines that use such illicit cell lines has been addressed, other scenarios involving the everyday scientist or researcher in the laboratory or clinic will have to be confronted. It is a critical time (...) for the cell line issue, and much work is needed by the scientific community to find ethical solutions. This article hopes to encourage positive steps in that direction. National Catholic Bioethics Quarterly 10.2 (Summer 2010): 273–280. (shrink)

The author explores whether Catholic hospitals should be required by law to perform augmentation mammaplasty on male-to-female transsexuals. The case involves a male-to-female transsexual who presented at a Catholic hospital for breast augmentation surgery. The hospital refused and was sued on the basis of aviolation of the Unruh Civil Rights Act. The hospital formulated a policy on how to deal with such cases in the future. It determined that the same standards thatapply to any woman be applied here, since the (...) mammaplasty was not part of the actual transgender surgery. The author argues that augmentation mammaplastyis part of the transgendering process and illicit for a Catholic hospital to perform. Legislation protecting Catholic hospitals from having to perform abortions shouldbe expanded to include transsexual reassignment surgery in all of its stages. National Catholic Bioethics Quarterly 9.3 (Autumn 2009): 453–458. (shrink)

Diane Vaughan’s popular book, The Challenger Launch Decision: Risky Technology, Culture and Deviance at NASA, advances a thesis that I termed the “cog in the machine manifesto”: since the Challenger disaster was the result of the determined, mechanistic movement of the parts of the organizational system; once the mechanism was set in motion, the disaster was inevitable, and could not have been prevented. In order to expose the fallacies of the cog in the machine manifesto, I consider an alternative umbrella (...) thesis and four sub-theses. The umbrella thesis proposes that the causes of the Challenger disaster were the lack of an overall 'safety first' ethos, and irresponsible choice and poor decision-making practices in the lead up to and including the final risky decision. The four sub-theses are as follows: (1) the widespread justification that one always faces inherent risk when one operates in the realm of risky technology (a thesis foreshadowed by Vaughan’s book) is an illicit and misleading justification when one considers that there is no binding necessity to employ the risky technology; (2) the real culprit is not so much "risky technology," which locates the risk in the technology, but "risky assessment," which locates the risk in the decision to employ technology while not basing that decision on known safe designs and continued use on performance data; (3) the decision to choose an Orbiter without a passenger and crew abort system is proof in and of itself of a lack of a "safety first" management priority; (4) an analysis of the fateful eve of the Challenger launch teleconference launch decision makes it impossible to construe it as a banal, routine and inevitable organizational mistake. A careful examination of the “cog in the machine manifesto” and similar frameworks that purport to explain moral disasters will reveal that the language of risky technology, organizational complexity, and inevitable accidents is deeply pernicious and should thus be avoided at all costs. (shrink)

We stipulate, arguendo, that fractional-reserve-demand deposit banking is per se fraudulent. We ask whether or not time deposit banking can also be illicit, and answer in the positive, if there is a mismatch between the time dimensions of deposits and loans. To wit, if an intermediary borrows short and lends long.

Acquisition and purchase of counterfeit and pirated products are illicit and morally questionable consumer behaviors. Nonetheless, some consumers engage in such illicit behavior and seem to overcome the moral dilemma by justification strategies. The findings on morality effects on consumer responses to counterfeit and pirated products are diverse, and the underlying theories provide no clear picture of the process that explains how morality and justification lead to particular consumer responses or why consumers differ in their responses. This study (...) presents a meta-analysis of 788 effect sizes from 207 independent samples provided in 196 manuscripts that synthesizes the research on the influence of morality on attitudes, intentions, and behavior toward counterfeit and pirated products. The meta-analysis tests competing theoretical models that describe the morality-justification processes, and identifies the deontological–teleological model as the superior one. The meta-analysis further shows that the institutional and social context of consumers explains the differences in morality effects on justifications and responses to counterfeit and pirated products, and provides evidence for the context-sensitivity of the underlying theories. (shrink)

The current conflict between the recording industry and a portion of its customers who are involved in illicit copying of music files arose from innovations involving the compression and electronic distribution of files over the internet. This paper briefly describes some of the challenges faced by the recording industry, and examines some of the ethical issues that arise in various industry and consumer responses to the opportunities and threats presented by these innovations. The paper concludes by highlighting the risks (...) associated with responses that threaten further innovation, ultimately reducing the chances of finding solutions that hold appeal for all parties. (shrink)

This article studies the underinvestigated but fascinating issue of the sociological determinants of accounting misbehavior while focusing on an allegedly illicit accounting practice (i.e., restatement) in family- vs. nonfamily-controlled corporations. Under the framework of institutional anomie theory, we examined whether sociological structures (i.e., legal forces and cultural values) influence accounting errors inducing restatements. By applying a multivariate regression analysis to a sample of restating firms listed in 23 countries during the 2006 to 2014 period, we found that legal forces (...) and cultural values significantly moderate the severity of accounting errors. The results of this study suggest that investors, managers, and policymakers should more fully consider the sociological structures of societies when debating the feasibility of corporate misbehaviors, as combining firm-level and country-level analyses could help to predict a firm’s accounting misbehaviors, such as more severe accounting errors. (shrink)

This article provides empirical results indicating that acting in a socially respon- sible and lawful manner is a necessary, though not sufficient, condition for increasing shareholder wealth. It meta-analyzes 27 event studies that have mea- sured the stock market's reaction to incidences of socially irresponsible and illicit behavior. It finds that for firms engaging in socially irresponsible and illicit behavior, the effect on shareholder wealth is negative (wealth decreases), statisti- cally significant (p <.001), and so substantial in size (...) (D = -.932) that the distribution of abnormal returns is shifted nearly a full standard deviation to the left (i.e., negatively) from their expected standard normal distribution. This result gives rationally self-interested firms a self-interested reason to act in a socially responsible and law-abiding manner. It also provides support for a moral position called enlightened self-interest, which prescribes that firms should act in a socially responsible manner to promote the shareholders' interests. (shrink)

In a number of recent articles, the debate on the ethics of fractional reserve “free” banking has been extended to loan maturity mismatching, specifically the banking practice of borrowing short and lending long. Barnett and Block :711–716, 2009; 2010) claim the practice is illicit, because like fractional reserve banking it creates duplicate property titles. They argue there is a continuum in the time dimension between the two kinds of activities. Bagus and Howden :399–406, 2009; 106:295–300, 2012a; Eur J Law (...) Econ, 2012b; Bus Ethics 22:235–245, 2013) maintain that loan maturity mismatching does not create duplicate titles and is not illicit, and that from an economic and legal perspective there is no continuum with fractional reserve banking. Cachanosky and Evans enter the debate from the free-banking standpoint and view both practices as legitimate. In this paper, I agree with the conclusions of Bagus and Howden, but adopt a different approach to support this position. Using the title-transfer theory of contract, I demonstrate from first principles why loan maturity mismatching does not create duplicate property titles and is a legitimate practice. Employing this same theory, I then present a novel argument to show why the contractual arrangements found in fractional reserve banking are logically contradictory and illegitimate. (shrink)

Financial misconduct has come into the spotlight in recent years, causing market regulators to increase the reach and severity of interventions. We show that at times the economic benefits of illicit financial activity outweigh the costs of litigation. We illustrate our argument with data from the US Securities and Exchanges Commission and a case of investment misconduct. From the neoclassical economic paradigm, which follows utilitarian thinking, it is rational to engage in misconduct. Still, the majority of professionals refrain from (...) misconduct, foregoing economic rewards. We suggest financial activity could be reimagined taking into account intrinsic and prosocial motivations. A virtue ethics framework could also be applied, linking financial behavior to the quest for moral excellence and shared flourishing. By going beyond utilitarian thinking and considering alternative models, we offer a fuller account of financial behavior and a better perspective from which to design deterrence methods. (shrink)

Despite the enormous size of the illicit market in the United States, there is a paucity of research concerning the rights of consumers of illegal products. In this article it is argued that the illicit nature of a transaction should not deny consumers the right to safety and redress. Recognition of these rights is not only in line with the public policy goal, i.e., protecting public interests, but it can also serve as a deterrent factor for the sales (...) of illegal products. (shrink)

This study examines the role of executive compensation in public governance. We collect data on corruption cases that involve top-level executives in Chinese listed state-controlled firms. We find a significant positive relationship between underpayment of executives and the likelihood of an investigation into corrupt behavior. We also show that corruption is positively associated with firm performance and that the relationship between underpayment of executives and corruption is influenced by firm performance, suggesting that top managers are more likely to engage in (...) illicit behavior if they are compensated poorly while the firms under their control perform well. Finally, we find that pay-performance sensitivity decreases when top executives are involved in corruption investigations, indicating a lack of pecuniary incentives. Our empirical findings point toward an important relationship between executive compensation and corrupt behavior, thus providing valuable input to the understanding of executive pay and its effects in China’s state sector. (shrink)

The new business opportunities and prospects emerging in Europe within the Common Market and other Western and European countries also raise important ethical challenges. This work comprises a collection of ethical insights to enhance the conduct of business in an evolving Europe.