Edwin Hartman argues that ethical principles should not derive from abstract theory, but from the real world of experience in organizations. He explains how ethical principles derive from what workers learn in their communities (firms), and that an ethical firm is one that creates the good life for the workers who contribute to its mission. His approach is based on the Aristotelian tradition of refined common sense, from recent work on collective action problems in organizations, and from social (...) contract theory. (shrink)

Virtue ethics, the authors believe, is distinct and superior to other options because it considers, in the first place, which preferences are worth pursuing, rather than just blindly maximizing preferences, and it takes into account intuitions, emotions and experience, instead of acting solely on abstract universal principles. Moreover, virtue ethics is seen as firmly rooted in human biology and psychology, particularly in our freedom, rationality, and sociability. Work, business, and management are presented as vital areas for the development of virtues, (...) not the least with a view to human flourishing. We conclude by introducing the articles included in this special issue. (shrink)

Virtue ethics, the authors believe, is distinct and superior to other options because it considers, in the first place, which preferences are worth pursuing, rather than just blindly maximizing preferences, and it takes into account intuitions, emotions and experience, instead of acting solely on abstract universal principles. Moreover, virtue ethics is seen as firmly rooted in human biology and psychology, particularly in our freedom, rationality, and sociability. Work, business, and management are presented as vital areas for the development of virtues, (...) not the least with a view to human flourishing. We conclude by introducing the articles included in this special issue. (shrink)

The virtue approach to business ethics is a topic of increasing importance within the business world. Focusing on Aristotle's theory that the virtues of character, rather than actions, are central to ethics, Edwin M. Hartman introduces readers of this book to the value of applying Aristotle's virtue approach to business. Using numerous real-world examples, he argues that business leaders have good reason to take character seriously when explaining and evaluating individuals in organisations. He demonstrates how the virtue approach (...) can deepen our understanding of business ethics, and how it can contribute to contemporary discussions of character, rationality, corporate culture, ethics education and global ethics. Written by one of the foremost Aristotelian scholars working in the field today, this authoritative introduction to the role of virtue ethics in business is a valuable primer for graduate students and academic researchers in business ethics, applied ethics and philosophy. (shrink)

Abstract:There is good reason to take a virtue-based approach to business ethics. Moral principles are fairly useful in assessing actions, but understanding how moral people behave and how they become moral requires reference to virtues, some of which are important in business. We must go beyond virtues and refer to character, of which virtues are components, to grasp the relationship between moral assessment and psychological explanation. Virtues and other character traits are closely related to (in technical terms, they supervene on) (...) personality traits postulated by personality psychologists. They may therefore be featured in respectable psychological explanations. But good character fits no familiar psychological pattern. A person of good character is sufficiently self-aware and rational that his or her virtues are not accompanied by the vices that psychologists find usually associated with them. A course in business ethics can help develop this self-awareness, which a good life in business requires. (shrink)

It may be nearly impossible to use standard principles to make a decision about a complex ethical case. The best decision, say virtue ethicists in the Aristotelian tradition, is often one that is made by a person of good character who knows the salient facts of the case and can frame the situation appropriately. In this respect ethical decisions and strategic decisions are similar. Rationality plays a role in good ethical decision-making, but virtue ethicists emphasize the importance of intuitions and (...) emotions as well.Virtue ethics suggests a reconciliation of the factual and the normative. Virtues may explain as well as justify actions. The same is true of other psychological states and events. That psychological terms have normative implications does not render them useless in explanation. As Aristotle does not distinguish cleanly between the normative and empirical, so many moral philosophers today reject the is-ought dichotomy. They are prepared to learn from economists, psychologists, and other empirical scientists who offer information about the nature of the good life and of values. Social psychologists who study community or corporate culture suggest a close relationship between organizational and ethical features, much as Aristotle saw a close relationship between politics and ethics. We should infer from all this that in business ethics there is good reason for philosophers and organization scholars to work closely together. (shrink)

To teach that being ethical requires knowing foundational ethical principles – or, as Socrates claimed, airtight definitions of ethical terms – is to invite cynicism among students, for students discover that no such principles can be found. Aristotle differs from Socrates in claiming that ethics is about virtues primarily, and that one can be virtuous without having the sort of knowledge that characterizes mathematics or natural science. Aristotle is able to demonstrate that ethics and self-interest may overlap, that ethics is (...) largely compatible with common sense, and that Aristotle’s virtuous person can make ethical decisions rationally. Case studies can help students improve their ethical perception and keep their values from being overwhelmed by corporate culture. (shrink)

It may be nearly impossible to use standard principles to make a decision about a complex ethical case. The best decision, say virtue ethicists in the Aristotelian tradition, is often one that is made by a person of good character who knows the salient facts of the case and can frame the situation appropriately. In this respect ethical decisions and strategic decisions are similar. Rationality plays a role in good ethical decision-making, but virtue ethicists emphasize the importance of intuitions and (...) emotions as well.Virtue ethics suggests a reconciliation of the factual and the normative. Virtues may explain as well as justify actions. The same is true of other psychological states and events. That psychological terms have normative implications does not render them useless in explanation. As Aristotle does not distinguish cleanly between the normative and empirical, so many moral philosophers today reject the is-ought dichotomy. They are prepared to learn from economists, psychologists, and other empirical scientists who offer information about the nature of the good life and of values. Social psychologists who study community or corporate culture suggest a close relationship between organizational and ethical features, much as Aristotle saw a close relationship between politics and ethics. We should infer from all this that in business ethics there is good reason for philosophers and organization scholars to work closely together. (shrink)

Abstract:Phillips and Margolis argue that moral philosophy is a poor basis for business ethics, but their narrow view of moral philosophy would exclude Aristotle, for one. They criticize me for assimilating states and organizations in using the Rawlsian device, but they put too much faith in Rawls’s distinction between states and voluntary organizations and pay too little attention to the continuities between them. Their plea for a conceptually autonomous ethics for organizations I interpret as reasonable and largely compatible with my (...) own stated opinion. (shrink)

Behaviorism is consistent with the assumptions of perfect competition, with the homo economicus model, and with a form of ethics that enshrines market-based notions of utility, justice, and rights and encourages rational maximizing. Economics and business courses foster this deficient form of ethics, assuming an overriding desire for money, which, according to MacIntyre and Aristotle, crowds out the associative virtues. These beliefs, often associated with Taylor and Friedman, lead to such practices as incentive compensation, which would be effective only if (...) employees were homines economici and thus rational in the sense of knowing how to satisfy whatever desires they have. Against Davidson’s view that psychology cannot be a natural science, Aristotle believes that there can be a teleological, if not exact, science of behavior. Aristotle believes that emotions and objectives may be rational or irrational. But rationality—phronesis, practical wisdom—is not a matter of applying algorithms. Doris questions whether character generates the first premises of an agent’s practical syllogisms, while Haidt has argued that we often act on emotions rather than on the basis of the reasons that we claim motivate us. Aristotle agrees that many people are not virtuous and that weakness of the will is a common occurrence, and he agrees that emotion drives actions. But if you are virtuous, your emotions and desires support your rationality. Aristotle gives us reason to reject the notion that people are homines economici and to treat them as rational deliberators, in part by creating an appropriate culture. The claim that it is in the nature of human beings to deliberate rationally is in part aspirational, but also in part scientific—in Aristotle’s modest sense. (shrink)

Abstract:Phillips and Margolis argue that moral philosophy is a poor basis for business ethics, but their narrow view of moral philosophy would exclude Aristotle, for one. They criticize me for assimilating states and organizations in using the Rawlsian device, but they put too much faith in Rawls’s distinction between states and voluntary organizations and pay too little attention to the continuities between them. Their plea for a conceptually autonomous ethics for organizations I interpret as reasonable and largely compatible with my (...) own stated opinion. (shrink)

Abstract:A complex organization is in effect a commons, which supervisory techniques cannot preserve from free riding. A corporate culture strong enough to create the requisite community-minded second-order desires and beliefs may be morally illegitimate. What morality requires is not local enforcement of foundational moral principles—a futile undertaking—but that the organization be a good community in that it permits the disaffected to exit, encourages reflective consideration of morality and the good life, and creates appropriate loyalty.

When aristotle identifies form with substance he may have sufficiently refuted heraclitus' contention that we cannot step into the same river twice, But he is left with two problems: (1) how an object can have matter but be identical to its essence and different from its matter; and (2) there are some questions about the conditions for identity of a substance across time. (staff).

Abstract:We have reached a rough moral consensus in the field of business ethics. We believe in capitalism with a safety net and enough regulation to deal with serious market imperfections. We favor autonomy for individuals and democracy for governments, though not necessarily for organizations. We recognize the rights of citizens and the different rights of employees. We respect a variety of possible sets of values, and so countenance a distinction between public and private. In other words, we are capitalists, pluralists, (...) and liberals. But globalization will force us and businesspeople who share our views to deal with significant stakeholders who do not. The 21st century will see the accelerating pace of globalization. The great challenge for business ethics, for its philosophers and its scholars of business, will be to identify and advocate morality that takes adequate account of globalization, and that in so doing avoids untenable parochialism without falling into relativism. (shrink)

Edwin Hartman explores Aristotle's metaphysical assumptions as they illuminate his thought and some issues of current philosophical significance. The author's analysis of the theory of the soul treats such topics of lively debate as ontological primacy, spatio-temporal continuity, personal identity, and the relation between mind and body. Aristotle presents a world populated primarily by individual material objects rather than by their parts or by universals. The author notes that defense of this view requires Aristotle to create the notion (...) of form or essence. A material object, the Philosopher holds, is identical with its particular essence, and is not a combination of form and matter. Most important, a person is a substance and his essence is his soul. Personal identify is therefore bodily identity, and survival consists in bodily continuity. The relation between a state of perceiving and a state of the body is a special case of the weak identity between form and matter. Originally published in 1978. The Princeton Legacy Library uses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These editions preserve the original texts of these important books while presenting them in durable paperback and hardcover editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905. (shrink)

Edwin Hartman explores Aristotle's metaphysical assumptions as they illuminate his thought and some issues of current philosophical significance. The author's analysis of the theory of the soul treats such topics of lively debate as ontological primacy, spatio-temporal continuity, personal identity, and the relation between mind and body. Aristotle presents a world populated primarily by individual material objects rather than by their parts or by universals. The author notes that defense of this view requires Aristotle to create the notion (...) of form or essence. A material object, the Philosopher holds, is identical with its particular essence, and is not a combination of form and matter. Most important, a person is a substance and his essence is his soul. Personal identify is therefore bodily identity, and survival consists in bodily continuity. The relation between a state of perceiving and a state of the body is a special case of the weak identity between form and matter. Originally published in 1978. The Princeton Legacy Library uses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These editions preserve the original texts of these important books while presenting them in durable paperback and hardcover editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905. (shrink)

Christopher McMahon links political theory and business ethics and thereby takes the latter to a new level of philosophical sophistication. McMahon argues that legitimate authority, political or managerial, characteristically preempts certain of one’s judgments, so that one may reasonably submit to a directive to do something that contravenes one’s principles. Authoritative preemption does not involve weighing reasons pro and con, as one who is considering breaking a promise must do: it disqualifies competing considerations.

The American Assembly of Collegiate Schools of Business has called for stronger ethics programs. There are two problems with this battle cry. First, the AACSB rejects, with weak arguments, the single best way to get ethics into the curriculum. Second, the AACSB can only vaguely describe some unpromising alternatives to that strategy. A number of leading business ethicists have challenged the AACSB to defend and clarify its views, to little avail. The proposed Procedures and Standards cannot by themselves bring about (...) any significant change in the teaching of business ethics. There is a gap between the AACSB’s professed objectives and the means for achieving the objectives and determining whether they are being achieved. The Statement about Curriculum Content gives great prominence to the teaching of business ethics, but the interpretation of the statement, especially in the standards for measuring achievement, shows how improbable it is that the proposed Procedures and Standards will have the desired impact. We must recognize the constraints on the AACSB as we consider current standards and the controversy over a free-standing course versus an integrated curricular approach. The evident conclusion is a call, not only to the AACSB but to all business school educators, to set the stage for strengthened ethics education rather than to have standards imposed on us from outside. (shrink)

The American Assembly of Collegiate Schools of Business has called for stronger ethics programs. There are two problems with this battle cry. First, the AACSB rejects, with weak arguments, the single best way to get ethics into the curriculum. Second, the AACSB can only vaguely describe some unpromising alternatives to that strategy. A number of leading business ethicists have challenged the AACSB to defend and clarify its views, to little avail. The proposed Procedures and Standards cannot by themselves bring about (...) any significant change in the teaching of business ethics. There is a gap between the AACSB’s professed objectives and the means for achieving the objectives and determining whether they are being achieved. The Statement about Curriculum Content gives great prominence to the teaching of business ethics, but the interpretation of the statement, especially in the standards for measuring achievement, shows how improbable it is that the proposed Procedures and Standards will have the desired impact. We must recognize the constraints on the AACSB as we consider current standards and the controversy over a free-standing course versus an integrated curricular approach. The evident conclusion is a call, not only to the AACSB but to all business school educators, to set the stage for strengthened ethics education rather than to have standards imposed on us from outside. (shrink)

The Stern School is undertaking a program to teach business ethics to Stern professors and others who have an interest in ethics but no previous formal instruction. The two-year series of faculty seminars will produce a cadre of professors who are well equipped to do research, to write scholarly papers, and to teach business ethics at a high level. The documentation of the seminar series will be available for others to use.

We typically test norms with reference to their usefulness in dealing with social problems and issues, though sometimes we use hypernorms to evaluate them. The hypernorms that we find most acceptable do not guide action in the way local norms do. They do, however, raise challenging questions that we should ask in evaluating any practice and its associated norms. In this respect, they differ from the principles associated with traditional, as opposed to modern, morality. As societies become more alike, in (...) part as a result of globalization, they will face increasingly similar problems. Then their local norms will be more similar, and they will be more likely to share hypernorms. Insofar as we can agree to try to justify our hypernorms, we are likely to converge on the hypernorms characteristic of modern rather than traditional morality. But people are often attached to their old norms and so are not very good at seeing how hypernorms raise questions that challenge the old norms. Here moral imagination should aid in the adjustment process. A system of democratic capitalism is hospitable to a good kind of moral convergence. (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)

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)

In attacking utilitarianism Bernard Williams1 likes to consider the case of the man who has a choice of saving his wife or a stranger from drowning. Williams takes it as clear, and a problem for consequentialism, that the man has a moral obligation to save his wife. The relationship is a good thing without reference to consequences that one might suppose it requires if it is to be valuable.David Messick suggests a consequentialist view of certain relationships—for example, those that create (...) a limited altruism—that have survival value. Some kin relationships are like that; and insofar as they are, there is something to be said for them from a utilitarian point of view. Messick does not rest there, as his primary concern is fairness, but he does seem to hold that there is a utilitarian basis for valuing families and family ties. One need not be a sociobiologist to learn something about practical morality from the facts Messick adduces. (shrink)