"Business Ethics and Values" introduces students to the complexities and principles of ethical issues by focusing on developing ethical awareness and the ability to argue business ethics matters. A proven resource, the second edition of this text continues to present a successful blend of concrete issues and academic theory, suitable for undergraduate and postgraduate students with or without practical experience of the world of organisations. It gives as much importance to individual conscience at work as it (...) does to socially responsible behaviour at the corporate level and within the global business world. Hallmark features: Broad coverage of the many issues in this subject ensures that students see the whole picture. The use of real-world case studies and simulations helps to stimulate debate and appreciate the multi-faceted aspects of ethical arguments. New to this edition: New material on the ethics of e-communication, sustainability and the ethical impact of globalisation ensures that students are learning from the most up-to-date material available. Further analysis of Anglo-American approaches to corporate governance and their ethical underpinnings. Short test and assignment questions at the end of each chapter help students to consolidate their learning. More simulation exercises and activities give students the opportunity to reflect on their attitudes to this engaging subject. A well-developed supplements package to support tutors and students includes an instructor's manual, PowerPoint slides and a companion website. Colin Fisher is Professorof Managerial Ethics and Values, Nottingham Business School, Nottingham Trent University. Alan Lovell is Professor of Organisational Accountability and Head of the Department of Accounting, Finance & Economics, Nottingham Business School, Nottingham Trent University. (shrink)

Discerning the motives that lead businesspeople to make ethical decisions in economic contexts is important, for it aids the moral evaluation of such decisions. But conventional economic theory has for too long assumed an egoist model of motivation, to which many contrast an altruist view of ethical choices. The result is to see business decision making as implying dilemmas. On the other hand, we argue, if one assumes multiple motives, economic and ethical, in ordinary business (...) decisions, a more fruitful model of ethical motivation in such decisions emerges. In this paper multiple motives are assumed to be the norm in a world of large organizations, complex decisions and stakeholder management. An example of a technology acquisition decision, with environmental overtones is presented in illustration of this approach. A method for discerning motives, primarily in terms of behavioural efficacy is presented. On this basis a two step approach to morally evaluating mixed motives in business decisions is proposed. First, the fit of motives with substantive ethical values should be ascertained, and then the efficacy of moral motives in yielding ethical behaviour and outcomes should be determined. This approach, we conclude, offers a much more concrete model of the actual role of moral motives in business decision making. It also signals the importance of moral learning in organizations. (shrink)

Globalization, with its undisputed benefits, also presents complex moral challenges that business leaders cannot ignore. Some of this moral complexity is attributable to the scope and nature of specific issues like climate change, intellectual property rights, economic inequity, and human rights. More difficult aspects of moral complexity are the structure and dynamics of human moral judgment and the amplified universe of global stakeholders with competing value claims and value systems whose interests must be considered and (...) often included in the decision-making process. While managing moral challenges is considered in management literature to be a legitimate and crucial function of business leadership, the complexity of moral challenges in a globalized business culture stretches the managerial capacities of individuals who rely on a personal moral compass and their own wisdom traditions of philosophy or religion for guidance. The Global Moral Compass introduces an expanded epistemic value framework as an aid to understanding and managing moral complexity in a globalized business culture. (shrink)

This paper presents a theoretical and practical approach to teaching business ethics, stakeholder management and CSR within the framework of the thematic seminar on business ethics and corporate social responsibility at Roskilde University. Within our programs in English of business studies and Economics and Business Administration the author of this article is responsible for this seminar that integrates issues of CSR and the ethics of innovation into the teaching ofcorporate social responsibility, (...) stakeholder management and business ethics. This research oriented seminar provides a unique possibility for teaching CSR with an integration of methodological, theoretical and practical dimensions of business ethics. The idea is that the thematic seminar represents a tutor supported frame for extended studies of business ethics, stakeholder management and the social aspects of business and entrepreneurship. Each student shall present a paper on the basis of a collection of articles on the topic of ethics and social dimension of business. Moreover, it is required that the student is discussant of two other papers during the course. In addition, students shall prepare interactive participation in discussion of each paper. The sessions begin with a short introduction to the topic by the professor, then student presentations, after this discussant remarks, and finally general discussion followed by an evaluative assessment by the professor. During the seminar the student shall present both theory and case discussion so that we find a close interaction between theory and practice in the presentation. In the following, the paper elaborates on this development, in particular in the relation between theory presentation and case studies. (shrink)

A modern form of narrative, comic books are used to communicate, discuss, and critique issues in business ethics and social issues in management. A description of comic books as a legitimate medium is followed by a discussion of the pedagogical uses of comic books and assessment techniques. The strengths of the pedagogy include crossing cultural barriers, understanding the complexity of individual decision-making and organizational influences, and the universality of dilemmas and values. We provide an initial source for (...) educators on the topics, comic books, plotlines, and other commentary for consideration of use in the classroom from high school to graduate business ethics and social issues in management courses. (shrink)

Contemporary economic thought presumes that individuals in a society always act according to their self-interest or private economic incentives, while important ethical motivations for action, such as a concern for others and public interest, are largely ignored. This paper is based on my experience of teaching an undergraduate course that highlighted the divergence between economic incentives and ethical motives for action in present-day life and business. Teaching tools such as lectures, case and group discussions (...) were employed to address important ethical dilemmas of individuals and managers in contemporary societies. Readings underscored the evolving relationship of business ethics and economic incentives, and the relevance of ancient ethical principles (e.g., Ethics of Interdependence, and Ethics of Prudence and Self-Development) to present-day business ethics. The course emphasized the imminent need in contemporary societies to reduce the divergence between economic incentives and ethical motives for action, and called for a greater understanding of business ethics today, given the complex ethical concerns that managers confront in the current global environment. (shrink)

In this research we employ an inter-disciplinary project that uses active learning theory to help bridge the gap between a university’s extensive liberal arts core and its business program. We believe this project will improve and enrich classroom discussions of the more complex and nuanced issues found in the application of business principles. To redress the fact that many undergraduate students do not have extensive work experience to draw on when discussing the application of business (...) class='Hi'>ethics principles, we present a project that uses a classic novel, Hard Times, to improve students’ abilities to contextualize and apply common business ethics frameworks. The project focuses on active learning and non-linear thinking, and aims to immerse the student in a fictional environment that models the complexity of, without being identical to, a real world business setting. (shrink)

In this re-visioning, business ethics would integrate feminist theories and pedagogy which include the diversity of women in terms of race/ethnicity, class and sexual orientation, thereby expanding its coverage to include issues of power, gender, cultural and theoretical conceptualizations, both in the conceptualization of morality, as well as in ethical constructs of analysis. My research indicates that the integration of feminist scholarship, ethics and pedagogy would make it possible to teach ethical decision making, and ultimately increase the (...) likelihood of ethical behavior, by showing students how to harness the multi-cultural ways of thinking needed to resolve ever more complex organizational problems.Use of the four-stage model I propose would effectively address the three major issues which make teaching business ethics in a new way to critical. The curricula, as modified, would present enriched ethical theories which are contextual and grounded in experience and which grant the connected nature of all organizational stakeholders. By recreating personal identity, autonomy and power as a theories of community, teaching its responsible use would be easier. Expanding the definition of business ethics to include authenticity and mutuality would move it beyond "social responsibility" to a model of interrelationship which encourage principled thinking leading to more ethical behavior. By combing empirically connected ethical theories, and conflict resolution techniques, ethical precepts can be molded into more usable curriculum models. (shrink)

This article is the result of an empirical research project analyzing the decision behaviour of Austrian managers in ethical dilemma situations. While neoclassical economic theory would suggest a pure economic rational basis for management decisions, the empirical study conducted by the authors put other concepts to a test, thereby analyzing their importance for managerial decision making: specific notions of fairness, reciprocal altruism, and commitment. After reviewing some of the theoretical literature dealing with such notions, the article shows (...) the results of an online survey working with scenarios depicting ethical dilemma situations. By judging such scenarios the respondents showed their preference for the named concepts, though with different degrees of confirmation. The results (with all limitations of an online survey in mind) support the theoretical work on the named concepts: Fairness elements (including Rawlsian principles of justice and an understanding of fairness as conceived by a reference transaction) play a major part in management decisions in ethical dilemma situations. Also, commitment as a behaviour that sticks to rules even if personal welfare is negatively touched, and reciprocal altruism as a cooperative behaviour that expects a reciprocal beneficial action from other persons have been concepts used by Austrian managers when analyzing ethical dilemmas. The article also tries to put the results into a comparative perspective by taking into account other studies on ethical decision factors conducted with, e.g. medical doctors or journalists, and by discussing intercultural implications of business ethics. (shrink)

I perform an economic and ethical analysis on wealth and income inequality. Economists have performed many statistical studies that reveal a number of, often contradictory, findings in connection with the distribution of wealth and income. Hence, the statistical findings leave us with no better knowledge of the effects that inequality has on economic progress. At the same time, the existing theoretical results have not provided us with a definitive answer concerning the effects of inequality on progress. By gaining (...) knowledge of the nature of inequality, and bringing basic economic principles to bear on the subject, we can come to an understanding of what the causal relationship is between inequality and economic progress. Furthermore, I apply a new theory of ethics – rational egoism – to assess economic inequality. I show that, in the right context, economic inequality is both economically and morally desirable. (shrink)

Business Ethics for Better Behavior concisely answers the three most pressing ethical questions business professionals face: 1. What makes business practices right or wrong? 2. Why do normal, decent businesspeople of good will sometimes do the wrong thing? 3. How can we use the answer to these questions to get ourselves, our coworkers, our bosses, and our employees to behave better? Bad behavior in business rarely results from bad will. Most people mean well much of (...) the time. But most of us are vulnerable. We all fall into moral traps, usually without even noticing. Business Ethics for Better Behavior teaches business professionals, students, and other readers how to become aware of those traps, how to avoid them, and how to dig their way out if they fall in. It integrates the best work in psychology, economics, management theory, and normative philosophy into a simple action plan for ensuring the best ethical performance at all levels of business practice. This is a book anyone in business, from an entry-level employee to CEO, can use. (shrink)

Case teaching occupies a central place in the history of business education and in recognition of its significance, the Journal of Business Ethics recently created a new section for cases. Typically, business ethics cases are used to teach moral reasoning by exposing students to real-life situations which puts them in the position of a decision-maker faced with a moral dilemma. Drawing on a critical management studies' (CMS) critique of mainstream business ethics, this (...) article argues that this 'idealtype' decision-focused case underplays the social, political and economic factors which shape managerial decisions. An alternative 'dark side' case approach is presented, which highlights the structural features of capitalism and the role of government in regulating the market. The 'dark side' approach is illustrated with the case of a New Zealand woman, dependent on an oxygen machine, who died when her power was disconnected by her Stateowned electricity supplier because of an unpaid bill. The case considers the actions of both the company and the industry regulator within the context of a 'light-handed' approach to government regulation. The article concludes with a discussion of how this approach to the case method, which moves beyond managers and their moral dilemmas, can provide students with a deeper understanding of the complexity of business ethics. (shrink)

Both Adam Smith and Herbert spencer, albeit in quite different ways, have been enormously influential in what we today take to be philosophies of modern capitalism. Surprisingly it is Spencer, not Smith, who is the individualist, perhaps an egoist, and supports a "night watchman" theory of the state. Smith's concept of political economy is a notion that needs to be revisited, and Spencer's theory of democratic workplace management offers a refreshing twist on contemporary libertarianism.

The paper describes two practical exercises (and their learning outcomes) requiring students to consider certain concrete decisions made by managers in business and professional life. The first exercise requires students to consider that competitive economic exchange inevitably puts managers in situations where they cannot accurately predict the outcomes of their decisions, and often results in harm to innocent people. In this practical exercise, seven discussion situations are described and students are asked to make decisions that take into account (...) the individuals affected by these managerial decisions. Students are asked to consider various ethical theories and devise creative solutions so as to avoid unnecessary harm. The second exercise places students in roles that represent shareholders and stakeholders and asks them to consider the relocation of a manufacturing company to their community. (shrink)

This article concerns the importance of teaching moral reasoning and ethical leadership to all undergraduate students and in particular makes the case that students in business especially need familiarity with these capacities and theories given the complex world in which they will find themselves. The corollary to this analysis is the claim that content on moral reasoning and ethical leadership be mandatory for all business majors and that all degrees require course material on these subjects.

This paper advocates inclusion of a wider set of ethical theories into the accounting canon. We find that the mainstream accounting curriculum does not adequately engage with non-Western ethical theories or contemporary Western ethical thought, as evidenced by the ethics content of core accounting texts and the International Federation of Accountants’ ethics publications. We suggest adopting a ‘thematic’ approach to teaching ethics as an integrated part of accounting curricula. This approach addresses two competing principles implicit in (...) International Education Standard 4: (i) that all accountants need to be educated to meet global ethical standards, and (ii) that teaching ethics should accommodate ethical traditions and practices that could vary between nations and cultures. The thematic approach we propose requires less additional space within existing accounting curricula and less additional preparation by accounting educators than the alternative approach of teaching substantive ethical theories from a sufficiently diverse range of cultures and traditions. The paper also provides exemplars of this thematic approach to teaching ethics in accounting. (shrink)

This book introduces a study of ethics and values to develop a deeper understanding of markets, business, and economic life. Its distinctive feature is its thorough integration across personal and institutional perspectives; across applied ethics and political philosophy; and across philosophy, business, and economics. Part I studies markets, property rights, and law, and introduces normative theories with many applications. ¿Part II examines the purpose of corporations and their responsibilities. Parts III and IV analyze business (...) and economic life through the ethics and values of welfare and efficiency, liberty, rights, equality, desert, personal character, community, and the common good. This Second Edition maintains the strengths of the First Edition ¿ short, digestible chapters, and engaging writing that explain challenging ideas clearly. The material is user-friendly, with an emphasis on a strong theoretical core. Easily adaptable to the instructor¿s teaching, the chapters are separable and can be shaped to the interests of the instructor with suggested course outlines and flexible application to case studies. This text is designed both for coursework in Business Ethics as well as interdisciplinary programs in Philosophy, Politics, Economics, and Law. This Second Edition: Expands presentation of eight normative theories, with increased emphasis on links between these theories and business and economic life Incorporates recent scholarship on shareholder / stakeholder debates about the purpose of corporations, bringing this important topic up to date Includes a new streamlined Preface/Introduction that provides a quick overview of the book before smoothly guiding the reader to the first chapter Uses updated examples and applications for today¿s readers Revamps a useful Appendix, including enhancing the popular primer on ethics Introduces a List of Further Readings at the end of each chapter and notable biographies throughout, directing students to the most promising literature for further research Includes a new ending chapter on the value of an ethical life. (shrink)

Facing a near-death experience naturally pushes people to re-examine their basic moral values. During the recent global economic melt-down, calls to solve the concomitant ‘moral’ crisis come in from all fronts. The presumption is that we need business ethics courses to teach our business students to learn to take the moral high-road; we need ethics pledges and codes of ethics to teach business students to do the right thing. But in reality, what impact (...) can a business ethics class have on business people in the real world of tough choices and intense competition? It is my contention that if we look at the teaching of business ethics from the traditional Foundational Platonic perspective, we over-promise and under-deliver. By contrast, a Post- Foundational perspective gives us a pragmatic and viable picture of business ethics pedagogy that can make a real difference. (shrink)

In this study, we examined moral issues and gender differences in ethical judgment using Reidenbach and Robin’s [Journal of Business Ethics9 (1990) 639) multidimensional ethics scale (MES). A total of 340 undergraduate students were asked to provide ethical judgment by rating three moral issues in the MES labeled: ‚sales’, ‚auto’, and ‚retail’ using three ethics theories: moral equity, relativism, and contractualism. We found that female students’ ratings of ethical judgment were consistently higher than that of male students (...) across two out of three moral issues examined (i.e., sales and retails) and ethics theories; providing support for Eagly’s [1987, Sex Differences in Social Behavior: A Social-role Interpretation. (Lawrence Erlbaum Associates, Inc, Hillsdale, NJ, England)] social role theory. After controlling for moral issues, women’s higher ratings of ethical judgment over men’s became statistically non-significant. Theoretical and practical implications based on the study’s findings are provided. (shrink)

This article examines and assesses Bernard Hodgson’s critique of the Neoclassical concept of rationality and its place in the literature. It is argued that Hodgson’s Trojan horse critique is superior to the others because it addresses the role of empiricist epistemology in reducing reason to instrumental rationality and consequent disappearance of the human subject of political economy. The second phase of the empiricist level of analysis reintroduces the capacities for ethical deliberation, self-determination, and the socio-historical conditions and institutional setting (...) of the economic agent. Because Hodgson’s solutions presuppose empiricist terrain, they are arbitrary. This occurs because the fundamental problem of Neoclassical rationality is its ontology. Yet by introducing the human subject into economic theory, Hodgson’s solutions move onto an ontological terrain adequate for economic analysis of human subjects. (shrink)

In Cosmopolitan Business Ethics: Towards a Global Philosophy of Management, Jacob Dahl Rendtorff maps the concept of global business ethics, related to sustainability and corporate governance, via an examination of the major theories of business ethics and the philosophy of management. The book is based on the philosophy of Immanuel Kant and the European tradition, which is applied as the foundation for the analysis of the contemporary European and Anglo-American debate on business (...) class='Hi'>ethics in order to formulate an up-to-date theory of global business ethics. The book will compare the different schools of business ethics, corporate citizenship and the philosophy of management and will address the modern-day issues of sustainability, business and human rights, corporate social responsibility, stakeholder management and corporate governance, offering insights on how to deal with these international challenges of global economics, the development and protection of human rights and the environment. This book proposes a decision-making model for Cosmopolitan business ethics as the foundation of management and leadership in dealing with the complexities of globalization. The case-studies will address the efforts of businesses to work with global and cosmopolitan business ethics at the levels of maintaining corporate integrity. Both the theoretical argument and case-studies presented in the book are supplemented with interviews with notable business ethicists, philosophers of management, business managers and public policy-makers. (shrink)

This article investigates the relation between corporate governance and business ethics in the Asia-Pacific region. It draws on four examples of countries in the region (Australia, China, Singapore, and India), not because they are representative of certain regional characteristics, but as a means of reflecting on the diversity in this region. These countries display pronounced differences in terms of inter alia, historical development, cultural and social factors, legal system, corporate governance model, political system, and economic development. The (...) complex interaction of all these considerations provides the context for corporate governance and business ethics in each of the countries. The article highlights different orientations to stakeholder management and integrity behavior in the boardroom and executives’ offices. Although globalization and financial market hegemony suggests a convergent model is theoretically desirable, this research suggests that the human capacity to protect diversity and enshrine regional and local interests seems likely to inhibit rapid change. (shrink)

The scope of the paper is to investigate whether e-learning is a good alternative to achieve business ethics teaching goals in the challenging context of disembedded economies. To achieve this goal, I used various interdisciplinary methods and approaches, content analysis of the relevant literature, and a case study. Firstly, I focus on the current challenges of business ethics teaching. Then, based on my experience of teaching business ethics in various forms, I (...) distinguish the methods applied within them and evaluate them, taking as criteria the cognitive, applicative, and reflective goals of teaching business ethics. Models and theories of educational psychology provide a framework to distinguish some elements that are responsible for the learning success of the student in terms of the defined teaching goal. Empirical results show that although e-learning scored best when it comes to achieving three differentiated goals of business ethics teaching, it is followed closely by seminars. This leads to the conclusion that perhaps a hybrid form, containing e-learning and seminars, would be the optimal way to achieve the goals. (shrink)

Given the pervasive influence of neoclassical economic theory on the field of business, the opposition of the standard economists to the inclusion of moral factors in economic decisions provides an intellectual resistance to the ideas of many business ethicists. Etzioni (1988) offers a theoretical alternative to the neoclassical model, an alternative that includes a moral dimension. This article: (1) highlights the differences between Etzioni''s proposed model and the neoclassical economic paradigm; (2) describes (...) and critically evaluates Etzioni''s proposed theory in view of his objective of synthesizing the neoclassical paradigm with a duty-based morality; and (3) discusses the implications of Etzioni''s proposed paradigm for the field of business ethics. (shrink)

Legal practice is both a profession and, increasingly, a business. Lawyers are routinely confronted with a complex set of ethical questions due to the adversarial nature of legal practice and justice, and at the same time handle relationships with different stakeholders within their own practice, including clients, partners, and managers. This presents a unique set of challenges that are not experienced in other professions. This book provides a framework to guide the practicing lawyer through these various levels of (...) ethical complexity. Written in a highly accessible style, The Lawyer's Guide to Business Ethics transforms business ethics theory for the practice of law, identifying the unique applications and ways in which lawyers can utilize the theory and principles to enhance their decision making and case management techniques. The book examines the social, ethical, personal, and economic forces influencing lawyers' work, explains the rules of professional conduct, and presents real-life ethical dilemmas to enhance learning and to assist in finding appropriate outcomes. This book will be an invaluable resource for legal practitioners, law students and business students, and anyone interested in maintaining ethical behavior in the practice of law. (shrink)

This paper argues that the dominant mainstream neo‐classical economic theory propounds a world‐view which is based not simply on half‐truths, but on straight lies. This is particularly significant since the influence of the economic world‐view reaches into every realm of social thought. Although overtly grounded in utilitarianism, the basis of neo‐classical thought has undergone two shifts of meaning which have converted the original self‐evident utilitarian presuppositions into an ideology.The first of these alters the utilitarian proposition that ‘we seek (...) satisfaction’ into the statement that ‘we only seek satisfaction’. It follows that human action is motivated by nothing other than selfishness and greed, and that altruism therefore cannot exist: anything that looks like altruism is therefore nothing other than egoism in disguise, and there is no place for ethical reasoning in individual choice.The second shift alters the premise that our goal is ‘maximum satisfaction’ to the assertion that what we seek is ‘maximum monetary gain’. This shift is already present in the writings of Jeremy Bentham, and forms the basis of much subsequent work in economics. In particular, it has facilitated the emergence of what one might term ‘economic imperialism’, i.e. the use of economic theory to analyse social issues – family size, racial discrimination, marriage, education choices, among others. In all of these cases monetary gain is the paramount criterion. For business ethics the most obvious example here is the absolutisation of profit as the sole criterion of business achievements, and of salary as the sole criterion of work choice and worker satisfaction.Both of these premises are then used to demonstrate that it is free competition which will ensure maximum social welfare. This conclusion is both relativistic and reductionistic. In the first place, the necessary conditions for perfect competition can never exist. Nor can ‘optimum social welfare’ be translated into ‘optimum welfare for all’ in an economic world‐view which sees wealth and poverty as the ‘just deserts’ of hard work and laziness respectively.The dominant economic theory is thus explicitly immoral in that it enshrines the absolute sovereignity of the individual and the law of the jungle as social norms. The qualitative measure of human happiness is desire, the quantitative measure is money. From an ethical perspective we must reject the falsity of this world‐view. (shrink)

For several decades, business has operated according to the tenets of neoclassical economic theory, where the primary obligation of corporations is to maximize profit for shareholders. However, the larger social mandate for business has changed, represented by the rise of language such as "sustainable development", "corporate social responsibility" (CSR) and "stakeholder groups." Nevertheless, the theoretical shift implied by the use of such language has not occurred. Issues of sustainable development and CSR continue to be justified in (...) the terms of neoclassical economic theory through the rationalization of "doing well by doing good".Within this economic paradigm, CSR cannot move beyond enlightened self-interest (acting in socially responsible ways in order to further one''s own ends) because all behavior must be justified economically. This implies that corporate socially responsible behavior will simply cease when it becomes uneconomic, regardless of the impact on interrelated systems which in turn will re-impact the business realm. (shrink)

This paper provides a comprehensive overview of the evolution of 30 years of academic research on organizational trust in socio-economic practice in the management and business ethics literature. A systematic review of 160 papers published in leading management and business ethics academic journals reveals two interpretations—one based on a transactional, cause-and-effect idea of the benefit of trust within relationships (or utilitarian trust), and one based on personal, sincere, and virtuous attributes of character allowing the participant (...) to engage in trusting (or virtuous trust). Our review contributes an analysis of the state of prior research and the literature's intertextual coherence which allows problematization of the current theory and identification of opportunities for further contributions. Future work could be based on the interconnections among these two research traditions, ways to expand the current understanding of utilitarian trust, and proposals for a basic moral framework to support virtuous trust from the perspective of an understanding of trust in the socio-economic practice in which contemporary trust problems arise. Our reinforcement of the theoretical underpinnings of trust also offers practical guidance as it sheds light on trust's nuanced dimensions in complex organizational and socio-economic environments. (shrink)

The processes of economic integration induced by globalization have brought about a certain type of legal practice that challenges the core values of legal ethics. Law firms seeking to represent the interests of internationally active corporate clients must embrace and systematically apply concepts of strategic management and planning and install corporate business structures to sustain competition for lucrative clients. These measures bear a high conflict potential with the core values of legal ethics. However, we observe in (...) parallel a global consolidation of these core values through an enhanced cooperation of national professional bodies, the use of international codes, and comparative legal ethics teaching and research. Furthermore, state regulation of the legal profession is concerned with preserving the core values of legal ethics to conserve the lawyer's role in upholding the rule of law. This article defends that legal ethics is adapting to the pressures exerted by "managerial" approaches to legal practice without this altering core values that underlie legal ethics. (shrink)

Business, Institutions, and Ethics: A Text with Cases and Readings is the first text to use the analysis of social institutions to examine business ethics. It explains fundamental concepts in ethics and how to apply them to business and economics. The author shows how social institutions are constituted by an integrated set of ethical, economic, and legal principles, and then uses these principles to study the ethics of commerce at the individual, organizational, (...) and market levels. This unique work features thirty-four cases and articles that are organized into economic categories, providing a conceptual unity and flexibility not found in similar texts. The first half of the text focuses on theory, beginning with a case study that illustrates and unifies the theoretical discussions that follow. It examines market institutions, organizational structure, and individual decision making; interprets moral development as a process within institutional settings; and explains egoism, care, utilitarianism, right, and pluralistic ethical theories. It also discusses how economic analyses of markets and firms incorporate ethical principles, and argues that law reinforces ethical and economic aspects of social institutions important to the continued existence and well-being of society. The second half of the text consists of cases and articles organized by the economic categories of property, risk-reward relationships, information, and competition. Topics covered include corporate control, workplace dangers, marketing, and manufacturing relocation. Applicable in both business schools and philosophy departments, Business, Institutions, and Ethics shows how ethical principles can help us gather, sort, and interpret information necessary for making sound business decisions. Ideal for courses in business ethics and business and society, it is also a valuable reference for business professionals and philosophers. (shrink)

The global expansion of free enterprise has been underway for some time, and the challenges for global companies are well‐known. Companies often operate in economically blighted communities and in corrupt environments without a rule of law. At the same time Western‐based global corporations are under increasing public pressure to take on responsibilities to these communities that are often beyond their expertise or economic purview. For example, at the 2008 Davos meetings Bill Gates proposed the idea of “creative capitalism, challenging (...) business to ‘meet the needs of the poor in ways that generate profits’...” In what follows I shall argue that while there have been many successful global ventures, the Gates’ challenge requires academics and managerial leaders to rethink their mind sets and expand their thinking about what we mean by globalization, poverty, and the multiple dimensions of free enterprise. (shrink)

Business theory and management practices are outgrowths of basic economic principles. To evaluate the proper place of ethics in business, the meaning of ethics as defined by economic theory must be assessed. This paper contends that classical economic thought advocates a nonethical decision-making context and is not functional for a modern complex, interdependent environment.

This article pursues the question whether and inasmuch theories of corporate responsibility are dependent on conceptions of managerial freedom. I argue that neglect of the idea of freedom in economic theory has led to an inadequate conceptualization of the ethical responsibilities of corporations within management theory. In a critical review of the history of economic ideas, I investigate why and how the idea of freedom was gradually removed from the canon of economics. This reconstruction aims at a deconstruction (...) of certain axioms of neoclassical economics that hamper contemporary efforts in integrating ethics firmly into management education. I intend to show by these deconstructive endeavors that a constructive use of the idea of responsible freedom could correct and complement the current quantitative focus in business theory through qualitative orientations. I argue that with the help of qualitative success criteria, the strategic integration of the tenets of both business ethics and Corporate Social Responsibility into business practice can be advanced by further research. (shrink)

In this article, I want to draw attention to one strand ofthe complex web of processes that are involved when people group others, including themselves, into social categories. I will focus on the tendency to treat members of one's own group more favorably than nonmembers, a tendency that has been called ingroup favoritism. The structure of the article has three parts. First I will offer anevolutionary argument as to why ingroup favoritism, or something very much like it, is required (...) by theories of the evolution of altruism. I will then review some of the basic social psychological research findings dealing with social categorization generally, and ingroup favoritism specifically. Finally, I will examine two problems in business ethics from the point of view of ingroup favoritism to suggest ways in which social psychological principles and findings may be mobilized to help solve problems of racial or gender discrimination in business contexts. (shrink)

Neoclassical economic theory, which still dominates the science, has proven inadequate to predict financial crises. In an increasingly globalised world, the consequences of that inadequacy are likely to become more severe. This article attributes much of the difficulty to an emphasis on equilibrium as an idealised property of economic systems. Alternatively, this article proposes that actual economies are typically out of balance, and that any equilibrium which may exist is transitory. That single changed assumption is central to (...) complexity economics, a view which is presented in detail. It is suggested that economic crises will be most effectively avoided when economists utilise methods, grounded in complexity theory, which can identify threat in an early stage. As a programmatic example, the use of Agent-Based Models (ABMs) combined with Boolean networks (BNs), is defended as a promising method for recognising vulnerability. (shrink)

During the current financial crisis, the need for an alternative to a laissez-faire ethics of capitalism (the Milton Friedman view) becomes clear. I argue that we need an order ethics which employs economics as a key theoretical resource and which focuses on institutions for implementing moral norms. -/- I will point to some aspects of order ethics which highlight the importance of rules, e.g. global rules for the financial markets. In this regard, order ethics (“Ordnungsethik”) is (...) the complement of the German conception of “Ordnungspolitik” which also stresses the importance of a regulatory framework. This framework is needed not to tame the market, but to make it more profitable in the long run. -/- The conception of order ethics relies heavily on contractarianism, especially on James Buchanan’s work. Unlike many other conceptions of ethics, it does not start with an aim to achieve, but rather with an account of what the social world – in which ethical norms have to be implemented – is like. Our social world is different from the pre-modern one. Pre-modern societies played zero-sum games in which people could only gain significantly at the expense of others. And the types of ethics that we are still used to today have been developed within these pre-modern societies. -/- Modern societies, by contrast, can be characterised – by economists and other social theorists alike – as societies with continuous growth. This growth has only been made possible by the modern competitive market economy which enables everyone to pursue his own interests within a carefully devised institutional system. In this system, positive sum games are played, which makes it in principle possible to improve the position of every individual at the same time. Most kinds of ethics, however, resulting from the conditions of pre-modern societies, ignore the possibility of win-win-situations and instead require us to be moderate, to share, to sacrifice, as this would have been functional in zero-sum games. These conceptions distinguish – in more or less strict ways – between self-interest and altruistic motivation. Self-interest, more often than not, is ultimately seen as something evil. -/- Such an ethics cannot be functional in modern societies. Ethical concepts lag behind. Within zero-sum games, it was necessary to call for temperance, for moderate profits, or for a condemnation of lending money at interest. Within positive-sum games, however, the morally desired result of a social process cannot be brought about by changes in motivation, by switching from ‘egoistic’ to ‘altruistic’ motivation. The second theoretical element introduced by order ethics is the distinction between actions and rules, which was already mentioned. Traditional ethics concerns actions: It calls directly for changes in behaviour. This is a consequence of pre-modern conditions as reconstructed before: People in the pre-modern world were only able to control their actions, not so much however the conditions of their actions. In particular, rules like laws, constitutions, social structures, the market order, and also ethical norms have remained stable for centuries. In modern societies, this situation has changed entirely. The rules governing our actions have increasingly come under our control. -/- In this situation, ethics has to focus on rules. Morality must be incorporated in incentive-compatible rules. Direct calls for changes in behaviour without changes in the rules lead only to an erosion of compliance with moral norms. Individuals that continue to behave ‘morally’ will be singled out, because the incentives have not been changed. Moral norms which are to be justified cannot require people to abstain from pursuing their own advantage. People abstain from taking ‘immoral’ advantages only if adherence to ethical norms yields greater benefits over the planned sequence of actions than defection in the single case. Thus ‘abstaining’ is not abstaining in the long run, it is rather an investment in expectations of long-term benefits. By adhering to ethical norms, I become a reliable partner for interactions. The norms do indeed constrain my actions, but they simultaneously expand my options in interactions. And people consent to rules only if these rules hold greater advantages for them, at least in the long run. -/- In general, ethics cannot require people to abandon their individual calculation of advantages. However, it may suggest improving one’s calculation, by calculating in the long run rather than in the short run, and by taking into account the interests of our fellows, as we depend on their acceptance for reaching an optimal level of well-being, especially in a globalized world full of interdependence. -/- The problem of implementation can now be placed at the beginning of a conception of order ethics, justified with reference to the conditions of modern societies I have sketched. Under the conditions of pre-modern societies, an ethics of temperance had evolved that posed simultaneously the problems of implementation and justification. The implementation of well-justified norms or standards could then be regarded as unproblematic, because the social structures allowed for a direct face-to-face enforcement of norms. Pre-modern societies not only favored an ethics of temperance, they also had the instrument of face-to-face-sanctions within their smaller and non-anonymous communities. This instrument is no longer functional in modern anonymous societies, and so we have to face up to the problem of implementation right at the start of our ethical conception. Simultaneously, an order ethics relies on the implementation of sanctions for enforcing incentive-compatible rules. In modern societies, rules and institutions, to a large extent, must fulfil the tasks that were, in pre-modern times, fulfilled by moral norms, which in turn were sanctioned by face-to-face sanctions. Norm implementation in modern societies thus works by setting adequate incentives in order to prevent the erosion of moral norms, which would happen if ‘moral’ actors were systematically threatened with exploitation by other, less ‘moral’ actors. -/- This conception of order ethics is then elaborated further in the area of business ethics. -/- . (shrink)

Teaching business ethics offers an opportunity to encourage students to use ethical theory to develop critical thinking skills and to use these skills to practice creative, ethical problem solving that will serve them well in the course of their professional lives. In the first part of this article, I detail how the disciplined use of ethical theory not only develops students’ moral perceptions but also gives them the conceptual tools to engage in detailed, innovative analysis. In the (...) second section of the article, I use Nike’s “green rubber” dilemma to illustrate how students can use ethical theories to construct analyses of business challenges and design innovative solutions that further the interests of diverse stakeholders. In the last section, I describe class exercises and assignments that both model detailed, creative problem solving and direct students to practice these cognitive skills on their own. (shrink)

Ethical decision theory may not be sufficiently well developed to furnish reliable guidelines to people involved in complex decision making that involves conflict between ethical considerations and business imperatives such as making a profit. In conditions of ethical uncertainty hindsight bias may occur, and this study reports on an exploration of hindsight bias effects among participants in continuing education in business programmes. Perceptions of business ethics were found to differ among groups within the sample depending (...) on what they thought had been the outcome of the ethical decision concerned. (shrink)

In this article, I want to draw attention to one strand ofthe complex web of processes that are involved when people group others, including themselves, into social categories. I will focus on the tendency to treat members of one's own group more favorably than nonmembers, a tendency that has been called ingroup favoritism. The structure of the article has three parts. First I will offer anevolutionary argument as to why ingroup favoritism, or something very much like it, is required (...) by theories of the evolution of altruism. I will then review some of the basic social psychological research findings dealing with social categorization generally, and ingroup favoritism specifically. Finally, I will examine two problems in business ethics from the point of view of ingroup favoritism to suggest ways in which social psychological principles and findings may be mobilized to help solve problems of racial or gender discrimination in business contexts. (shrink)

Without question “business ethics” is one of the hot topics of the day. Over the past months we have seen business after business charged with improper practices that violate commonly-accepted ethical norms. This has led to a loss of confidence in corporate management, and has had severe economic consequences. From many quarters business educators have heard the call to put more emphasis on ethical practices in their business courses and curricula. Engineering educators are (...) also heeding this call, since the practice of engineering usually involves working for (or leading) a business and/or engaging in business transactions. In the summer of 2002, Auburn University’s Engineering Professional Development program made the decision to produce—based on the author’s Executive MBA course in Business Ethics—a distance-delivered continuing education program for professional engineers and surveyors. Participants across the USA now may use the course to satisfy continuing education requirements with respect to professional licensing and certification. This paper outlines the purpose and content of the course and describes its production, distribution, application, and evaluation. (shrink)

Neoclassical and Austrian/evolutionary economic paradigms have different implications for integrating corporate social responsibility (corporate citizenship) and competitive strategy. porter's "Five Forces" model implicitly rests on neoclassical theory of the firm and is not easily reconciled with corporate social responsibility. Resource-based models of competitive strategy do not explicitly embrace a particular economic paradigm, but to the extent their conceptualization rests on neoclassical assumptions such as imperfect factor markets and profits as rents, these models also imply a (...) trade-off between competitive advantage and corporate social responsibility. Differences in Austrian/evolutionary economic model's assumptions about equilibrium, profits, and other economic concepts allow this paradigm to embrace alternative views of strategy such as the activities or dynamic capabilities views. These alternative views of strategy focus on learning and adaptation; they align more easily with corporate social responsibility. In practice this alignment comes about because social engagement facilitates the learning and adaptation that are a source of competitive advantage. Among the many business arguments for CSR such as improved employee morale/productivity or brand differentiation, this view prioritizes innovation. (shrink)

Business ethics can be taught as a stand-alone course or be woven throughout a curriculum. There is a debate over whether to teach ethics in the form of theory or real-world connectedness or both. A moral-judgment gap exists, and many believe Business education should promote knowledge and skills that enable ethical intentions to be followed with ethical behaviors. This conceptual paper diagrams where the gap exists in Business Ethics education and theorizes how multi-modal, learning-centered (...) ethics teaching can bridge this shortfall. Literature from the field of Education is drawn upon for pedagogies that promote learning and application. Case studies, constructed narratives, and simulations function as several key components useful for developing complex skills needed for applying ethical reasoning. Additional components and strategies that undergird and reinforce the case studies and other active learning components are laid out in pyramid form toward an overall best-practices approach to developing principled moral reasoning in Business Ethics. (shrink)

An economic man, i.e., the leading role in economic ethics, has been deeply investigated in our study considering a human being’s economic behavior and the hypotheses for an economic man in traditional economics based on M. Weber’s and S. N. Bulgakov’s Christian economic man. Among various channels to study business ethics and economic ethics, we chose the definition of an economic man given by Weber and Bulgakov to review a (...) hypothesis about a rational economic man in economics and discussed L. von Mises’s and A. Sen’s contentions for an economic man’s substantive freedom and innermost being. The issue deserved to be further investigated by scholars who concern business ethics and economic ethics consists in reconciling egotism and altruism commonly embedded in an economic man’s heart and boosting more altruistic economic men. (shrink)

This article contributes to the current debate regarding management education and research. It frames the current business school critique as a paradox regarding the arguments for ‘self-interest’ versus ‘altruism’ as human motives. Based on this, a typology of management with four representative types labeled: unguided, altruistic, egoistic, and righteous is developed. It is proposed that the path to the future of management education and research might be found by relegitimizing the ‘altruistic’ spirit of the classics of the great Axial (...) Age (900-200 BCE) and marrying those ideas with the self-interest ideal of mainstream management theories based on economics. By advocating this, a business school agenda that is simultaneously rigorous, relevant, and righteous is promoted. (shrink)

This paper starts off from what seems to be a difficulty of ethics in African Business today. For several years now Transparency International has placed some African countries high on its list of most corrupt countries of the world. The conclusion one draws from this assessment is that either African culture has no regard or concern for ethics, or that there has been a gradual loss of the concept of the ethical and the moral in contemporary African (...) society. Equally problematic is the teaching and promotion of Business ethics in organizations. Western philosophical theories and systems alone have not succeeded in providing access to ethical life of people in modern Africa. This paper is an attempt to inject an orientation that takes into account African manners and customs, their religious convictions and their understanding of the world as a whole, in the teaching of Business Ethics. East and Central Africa have been selected due to their common lingua franca, Kiswahili, and the fact that the author has more teaching experience within that region. (shrink)

Business ethics has largely been written from the perspective of analytical philosophy with very little attention paid to the work of continental philosophers. Yet although very few of these philosophers directly discuss business ethics, it is clear that their ideas have interesting applications in this field. This innovative textbook shows how the work of continental philosophers - Deleuze and Guattari, Foucault, Levinas, Bauman, Derrida, Levinas, Nietzsche, Zizek, Jonas, Sartre, Heidegger, Latour, Nancy and Sloterdijk - can provide (...) fresh insights into a number of different issues in business ethics. Topics covered include agency, stakeholder theory, organizational culture, organizational justice, moral decision-making, leadership, whistle-blowing, corporate social responsibility, globalization and sustainability. The book includes a number of features designed to aid comprehension, including a detailed glossary of key terms, text boxes explaining key concepts, and a wide range of examples from the world of business. (shrink)

Teaching experiments are valuable when it comes to sensitizing students for business ethics that addresses the behavior of agents in modern societies. Many students are coined by the often predominantly individualistic ethical reasoning that they are accustomed to from their living environments. In our classes, we confront them with the volatility of their own ethical behavior by the use of experiments that ideally work with real incentives. We believe experiments to be a powerful tool not only to (...) illustrate theoretical concepts, but also to make students experience the compulsion of economic incentives first-hand. This may lead to the insight that one is more prone to the contingencies of the situation than expected. Experiments may make students question their own behavior and re-evaluate the implementability of their moral ideals - as consumers, citizens and managers. (shrink)

As we know, the most interesting themes in modern Chinese societies are economic developments and environmental problems, both of them adhere closely. By the way, the main body of economic development is enterprise, the sustainable environments and economic developments are possible when enterprises make efforts to do their responsibilities for ‘green growth’. In shorts, enterprises are the most important agents for green growth. Like this, the roles of enterprises for green growth are very important for our future. (...) Every economic activity is made by enterprises, the government and the individuals. Also, all of them are interrelated with the sustainable environmental problems. Environmentally sustainable economic development is emerging as a new conceptual framework to address escalating environmental challenges created by increased pressure for economic growth and development. A sustainable future is one in which protection of the natural environments, economic prosperities and social justice are pursued simultaneously to ensure the good qualities of our life. It must be accomplished for our descendants, but it is not easy. And so, all of us have to do our best responsibilities. Business ethics is concerned about the members of corporations who make decisions and promote policies with moral value. After more than twenty years of development, business ethics in China demonstrate their own characteristics and development trends. In recent years, due to world economic circumstances, researches in Chinese business ethics concentrate on risks and security issues of enterprises, especially on cultural ethical risks. Under economical globalization, risks of transnational enterprise development include not only economic ones, but also political ones including unrest, potential for local war, and concerns about terrorism. In the long-terms, they also face cultural ethical risks. Generally speaking, through marketing research and self-growth, enterprises pay enough attention to trans-national and trans-regional economic or political risks, and exercise means of prevention. However, as for ethical risks, on the one hand, enterprises ignore their existence, or ignore their influence on enterprise’s security and sustainable development. On the other hand, during operations, firms lack prevention methods and avoidance strategies. This drives enterprises to consider ethical risks and corresponding ethical costs during transnational and trans-regional economic activities, so as to guarantee the real enterprise security in economic crises. In the mean time, social contribution of corporations is assumed to be one of their duties in modern societies. Especially, ethical management of corporations and their efforts for social contribution play a significant role in enhancing their corporate images and brand values, and help them greatly in getting consumers' reliability. Nowadays, Chinese enterprises also must be concerned about Creating Shared Value(CSV) in modern societies. Also, all moral considerations aside, we are left with the question concerning the possible positive contributions of unequal ranking and rewarding to social systems. The evidence regarding the mixed outcomes of social inequality strongly suggests the examination of alternatives. The evidence regarding the possibilities of social growth under conditions of more equal rewarding are such that the exploration of alternatives seems eminently worthwhile. In this paper, I have started from the development of business ethics and social enterprise in modern societies, and then elaborates the origin and characteristics of enterprise ethical risks, discusses the major types of ethical risks Chinese enterprises are facing, and on reducing risks and guarantee safety, provides some principals and paths which can be referred to. (shrink)