In the business ethics literature, many argue that managerial decision making ought to be improved by more robust ethical concerns. Some see the virtue of “practical wisdom” as the key for improved managerial decision making. However, because of the epistemic limitations confronting decision makers in the face of irreducible market complexity, there is a risk that practical wisdom, employed in the context of day‐to‐day managerial decision making, becomes an impractical concept. Nevertheless, if the attempt to incorporate virtue ethics (and its (...) related concepts) into business practices is laudable, if indeed a virtuous life is worth pursuing and practical wisdom plays an essential role toward that end, it is important to attempt to salvage practical wisdom and uncover its appropriate usage. Thus, this article pursues two major ends. First, upon surveying some of the prominent and standard usages of the term, it articulates concerns, rooted in epistemic limitations, about the way that practical wisdom appears in business ethics literature. Second, it offers a new way forward for understanding “practical wisdom.” By contextualizing day‐to‐day, rule‐based managerial decision making within the ethical value of the market order, practical wisdom reappears as the higher‐order capacity to pursue vocations, as morally worthwhile projects, in business. (shrink)

Alasdair MacIntyre’s After Virtue presented a reinterpretation of Aristotelian virtue ethics that is contrasted with the emotivism of modern moral discourse, and provides a moral scheme that can enable a rediscovery and reimagination of a more coherent morality. Since After Virtue’s publication, this scheme has been applied to a variety of activities and occupations, and has been influential in the development of research in accounting ethics. Through a ‘close’ reading of Chaps. 14 and 15 of AV, this paper considers and (...) applies the key concepts of practices, institutions, internal and external goods, the narrative unity of a human life and tradition, and the virtues associated with these concepts. It contributes, firstly, by providing a more accurate and comprehensive application of MacIntyre’s scheme to accounting than that available in the existing literature. Secondly, it identifies areas in which MacIntyre’s scheme supports the existing approach to professional accounting ethics as articulated by the various International Federation of Accountants pronouncements as well as areas in which it provides a critique and challenge to this approach. The application ultimately provides an alternative philosophical perspective through which accounting can be examined and further research into accounting ethics pursued. (shrink)

This article makes the case for servant leadership as a model for business in its analysis of the leadership style of former Philippine president, Corazon C. Aquino. Premised on the idea that self-management requires deep spirituality lived integrally (and sustained by an interior or inner life), we identify specific traits and virtues of Aquino and their implications on her leadership and effect on people. The article begins with an introduction to establish the contribution of servant leadership on business. It continues (...) with a summary of key points in servant leadership literature. Then, we analyze Aquino as a person and leader and find that the former spilled over to the latter. We conclude by providing a model based on Aquino’s journey into the role of servant leader; thus, presenting a framework that charts the path toward servant leadership to help businesses address the leadership crisis brought on by an Enron-WorldCom-Tyco dominated business culture. (shrink)

In this paper we present a theoretical hybrid framework for ethical decision making, drawing upon Emmanuel Levinas’ view on ethics as “first philosophy”, as an inherent infinite responsibility for the other. The pivotal concept in this framework is an appeal to a heightened sense of personal responsibility of the moral actor to provide the ethical context within which conventional approaches to applied business ethics could be engaged. Max Weber’s method of reconciling absolutism and relativism in ethical decision making is adopted (...) to provide the synergy between personal responsibility and contextual realities, forging a coherent framework. The paper concludes by discussing ways that business could make way for the flourishing of ethics of responsibility in individuals. (shrink)

This article identifies an integrated teaching strategy that was originally developed for engineers, the so-called ‘micro-insertion’ approach, as a practical and effective means to teach ethics at business schools. It is argued that instructors can incorporate not only generic or thematic learning objectives for students into this method (i.e., the intended content of what is being taught: in our case, an underlying ethical base for doing business), but also do so via a strategically integrated approach regarding the appropriate mix and (...) timing of these micro-insertions. With this in mind, we propose a qualitative and example-based approach that endeavors to provide a versatile way for business teachers to incorporate ethics into their general business classes. We also present a conceptual and theoretical framework that underpins this method, and we further provide a set of specific examples and a practical table that show how business instructors might integrate ethics-oriented micro-insertions into their teaching. (shrink)

Caritas in Veritate (CV) poses a challenge to the business community when it asks for “a profoundly new way of understanding business enterprise” (CV 40). The paper proposes the concept of the “common good” as a starting point for the discussion and sketches a definition of the common good of business as the path toward an answer for this challenge. Building on the distinction between the material and the formal parts of the common good, the authors characterize profit as the (...) material part of the common good of business and work as the formal part that expresses the essential significance of business. (shrink)

The capability approach developed by Amartya Sen focuses on the enhancement of people’s capabilities, i.e. their real freedom to choose a life course they have reason to value. Applying the CA to the organizational context, the focus of human resource management is transformed, shifting away from the needs of the organization to the freedoms of the individual. This shift happens also inside the so-called ‘liberated companies,’ firms with an organizational form that allows employees the complete freedom, along with the responsibility, (...) to take any actions they decide are best. In this paper we show the contribution of the capability approach for management and for organizational ethics by focusing on this innovative model of ‘liberated companies.’. (shrink)

Leaders are faced with ethical and moral dilemmas daily, like those within the military who must span from large-scale combat operations to security cooperation and deterrence. For businesses, these dilemmas can include social and environmental impact such as those in mining; and for governments, the social and economic impact of their decision-making in their response to COVID-19. The move by Western defence forces to align their foundational principles, policies, and “soldier” dispositions with the changing values of the countries they serve (...) are starkly illustrative of challenges faced by all leaders. While admirable, such changes face the apparent contradiction of enhancing individual moral agency within a hierarchical organization that maintain enforceable codes of conduct. Ethical leadership theory provides aspirational goals, but lacks empirically based guidance on how to implement policies that facilitate values-based behavior. Using a discourse theory analysis of a moral dilemma vignette with Royal Australian Air Force personnel, this research identifies important aspects of agency and subject position that must be addressed if such policies are to succeed. These findings show that the potential contradiction can be addressed by acknowledging the contrasting tendency to bureaucratic process by leaders at upper levels, while lower-level leaders address moral issues by incorporating their subjectivity and making a conscious deontological choice between humanity and comrade loyalty. (shrink)

The aim of this paper is to explore the ethical dimension of hawala, an ancient informal financial practice rooted in Islamic moral traditions. Widely used in countries with an Islamic background and their diasporas, hawala is considered an important vehicle for the financial and economic development of some less developed countries. Nevertheless, in Western countries, hawala is regarded with suspicion due its controversial ethical nature. Unlike other Islamic financial institutions, the controversial questions are not the legitimacy of profit sources or (...) the interest charged, but rather the lack of transparency that surrounds hawala transactions. Yet, the literature on hawala has neglected its ethical perspective. Our study delves into this dimension with a critical approach, using the Triple Font Theory, grounded on virtue ethics. We conclude that if hawala transactions are carried out with honesty, and fairness, this practice deserves a positive ethical appraisal. However, it is necessary to implement efficient regulatory measures to guarantee that the system is not abused by money launders and criminals. In practice, it becomes imperative to bring over a change in the regulatory approach to hawala toward a more ethically, culturally, and economically sensitive strategy. Thus, future research should focus on how “hyper-norms” or fundamental principles inherent to humanity, which are common to both “formal” and “informal,” “Western” and “non-Western” financial practices, could run the new AML/ctf regulation agenda. (shrink)

This study examines the implications of practical reason for entrepreneurial activities. Our study is based on Thomas Aquinas’ interpretation of such virtue, with a particular focus on the partition of practical reason in potential parts such as synesis, or common sense, and gnome, or perspicacity. Since entrepreneurial acts and actions deal with extremely uncertain situations, we argue that only this perspicacity, as the ability of correctly judging in exceptional cases, has the power to find wisdom under such blurred conditions. Perspicacity (...) frees entrepreneurs from their cognitive schemata rendering them able to be truly entrepreneurial. Based on this vision and thanks to a semantic analysis of the meaning of the Greek word gnome, we construct an interpretative model for entrepreneurial judgment composed of three dimensions, specifically, knowledge-cognitive, external-affective and personal-reflective. The model highlights how a ‘successful’ entrepreneurial judgment is also such from a holistic point of view. (shrink)

Despite many twenty-first century efforts to minimize corporate corruption, initiatives taken by local governments, global organizations, academic institutions, or the corporate world itself, it is clear that corporate corruption is perpetuating itself. In this paper, I apply the Aristotelian concept of “akrasia” (moral weakness) in order to provide an interpretation of corporate corruption as an act of moral failure and misapprehension of the right thing to do, if not an act of wickedness, which originates with lack of integrity. By utilizing (...) Aristotle’s philosophical framework, I attempt a redefinition of integrity not only with reference to the Aristotelian moral and intellectual virtues but also with a combination of theoretical and practical wisdom, that is, a connection between theory and action, definitive of moral consistency. Through this interpretation, I also wish to further emphasize the need for a philosophical background of contemporary managerial practices for a more effective countering of corporate corruption. (shrink)

Although much of the growing literature on organizational identity implicitly recognizes the normative nature of identity, the ethical implications of organizational identity work and talk have not yet been explored in depth. Working from a meta-ethical perspective, we claim that the dynamic, processual, and temporal activities recently associated with organizational identity always have an ethical dimension, whether "good" or "bad." In order to describe the ethical dimensions of organizational identity, we introduce the balance theory of practical wisdom as a theoretical (...) framework, and connect this theory to existing organizational identity concepts. We present an empirical case focused on an international paint company to illustrate the relevance of this theory for empirical organizational identity research. Our intention is to expand existing theory by bringing an aspect of organizational identity that has been tangentially acknowledged to the forefront, and by identifying it as a fruitful avenue for future theory development as well as empirical research. (shrink)

Some business schools have come under considerable criticism for what observers see as their complicit involvement in the corporate scandals and financial crises of the last 15 years. Much of the discussion about changes that schools might undertake has been focused on curriculum issues. However, revisiting the curriculum does not get at the root cause of the problem. Instead, it might create a new challenge: the risk of decoupling the discussion of the curriculum from broader issues of institutional purpose. In (...) this article, we argue that the most pressing need facing business schools is not to teach new courses to be responsive to social demands and stay relevant. Instead, it is to revisit their basic mission—the principles and beliefs on which they were founded—and then to re-evaluate their curriculum design choices in this light. We contrast the Spartan and Athenian educational paradigms as a way of shedding light on the nature of a coherent response. (shrink)

Some virtue ethicists are reluctant to consider principles and standards in business ethics. However, this is problematic. This paper argues that realistic Personalism can be integrated into virtue-based business ethics, giving it a more complete base. More specifically, two principles are proposed: the Personalist Principle (PP) and the Common Good Principle (CGP). The PP includes the Golden Rule and makes explicit the duty of respect, benevolence, and care for people, emphasizing human dignity and the innate rights of every human being. (...) The CGP entails cooperation to promote conditions which enhance the opportunity for the human flourishing of all people within a community. Both principles have practical implications for business ethics. (shrink)

Socrates’ inquiry into the nature of the virtues and human excellence led him to experience Socratic ignorance, a practical puzzlement experienced by his recognition that his central life commitments were conceptually problematic. This practical perplexity was not, however, an epistemic weakness but a reflection of his wisdom. I argue that Socratic ignorance, a concept that has not received scholarly attention in business ethics, is a central aim that business practitioners should seek. It is what a truthful, thorough, and courageous inquiry (...) into their professional roles and commitments leads to. It wakes them up from the moral complacency engendered by organizations, forcing them to become much more critical of their day-to-day activities and more intentional about living virtuously. It curbs the corrupting potential of authority positions and prevents the tendency of subordinates to routinely conform to sanctioned norms and expectations. Finally, it opens up novel and creative moral avenues and provides a promising model to deal with the conflicts posed by our globalized and increasingly polarized world. (shrink)

This paper considers how a Shi’a Islamic perspective of wisdom can inform contemporary business ethics theory. Given the growing business ethics literature that adopts an Islamic orientation, it is vital that Islamic tenets in a business context are established. Thus, this paper thoroughly researches the tenets of Shi’a wisdom theory using a hermeneutic analysis, guided also by Iranian theological scholars of ancient Persian and Arabic foundational texts, to provide a comprehensive explanation of the foundations of Shi’a faith relevant to business (...) ethics. Having established the principles of Shi’a wisdom, we outline points of consonance and dissonance in comparison to the Western humanist, primarily Aristotelian, orientations to wisdom. Although identifying apparently irreconcilable differences, this analysis reveals important elements of Shi’a wisdom theory that can significantly invigorate and influence business ethics theory. (shrink)

The core of the paper consists of dialogue from a true case where an employee experienced moral dilemmas following a disquieting directive from his manager. The case is considered from the perspective of Dancy's particularistic theory of moral reasons. This case was chosen not to illustrate the theory, but rather to test the assumption that an approach to moral judgement based on Ross and Dancy has general applicability. It is suggested that, in its simplest form, that approach approximates to the (...) manner in which people in organisations, without prior knowledge of ethical theorising, would ordinarily deal with comparable situations, and so it can be relatively easy to learn given practice. Based on this case, some insight is also offered into individuals' moral learning, including their need for personal qualities such as assertiveness and independence of mind. In that context a reciprocal relationship between Dancy's approach and Werhane's thinking on moral imagination is suggested. (shrink)

One of the fundamental struggles in corporate social responsibility (CSR) is the uncertainty and inherent contradictions that stem from a company being an individual legal entity and a community of persons. The authors contend that CSR has departed from the essence of “social responsibility.” The paper is a commentary on CSR, presented as two frameworks rooted in individualism—The Merchant Trade (the strategic view of CSR) and The White Man’s Burden (self-righteous CSR heroism that assumes the shackles of responsibility normally offered (...) by others). Both, however, contradict the essence of “social responsibility” pitting individual against community, business against society, and economic needs and realities versus ethical reflection. The authors present a model that advocates a more moderate and realistic approach to CSR that goes back to the essence of social responsibility. (shrink)

Purpose– The purpose of this paper is to present a novel mnemonic, ACTIVE, inspired by Mason's 1985 PAPA mnemonic, which will help researchers and IT professionals develop an understanding of the major issues in information ethics.Design/methodology/approach– Theoretical foundations are developed for each element of the mnemonic by reference to philosophical definitions of the terms used and to virtue ethics, particularly MacIntyrean virtue ethics. The paper starts with a critique of the elements of the PAPA mnemonic and then proceeds to develop (...) an understanding of each of the elements of ACTIVE ethics, via a discussion of the underpinning virtue ethics.Findings– This paper identifies six issues, described by the mnemonic, ACTIVE. ACTIVE stands for: autonomy, the ability of the individual to manage their own information and make choice; community, the ethical effect of an information systems on the community which it supports; transparency, the extent to which the derivation of content and process in an information system is made clear; identity, the social and ethical effect of an information system on the definition and maintenance of the distinctive characteristics of a person; value, the value or moral worth placed on information associated with an individual and hence on the relationship with the individual; and empathy, the ability of the information systems professional to emotionally connect with the user and the extent to which the information system distances or connects.Originality/value– The paper applies virtue ethics to developing a tool to help information professionals reflect on their ethical practice in developing and supporting information systems. (shrink)

The article aims to provide a standpoint from which to critically address two broad concerns. The first concern surrounds a naïve view of mindfulness, which takes it as a given that it is a good thing to cultivate mindfulness and attendant qualities like compassion because these virtues are key to improving the quality of life and bettering effective decisionmaking within business. Yet the virtue of mindfulness has roots in religious and spiritual traditions, and the virtue of compassion is complex and (...) contextual; neither of these virtues operate in a vacuum. Nor do they function independently from other virtues and values. Reasonable people of goodwill possessing the virtues of mindfulness and compassion in good measure, may nevertheless strongly disagree about what the compassionate, mindful thing to do is, particularly in a business setting. It is, moreover, conceivable that intensively cultivating mindfulness and compassion could lead one to reject altogether the “dog-eat dog” culture of competitive business that draws upon selective features of mindfulness meditation that lie in the corporate comfort zone yet which are not especially countercultural from a religious or spiritual vantage point. The second concern is that Western virtue-based business ethics is largely confined to academic philosophical theories. As such, virtue-driven business ethics is often more centered around developing theoretical wisdom than developing “hard core” practical wisdom earned through yoga asanas, meditation, chanting, and breathing, whereas for contemplative practices the reverse is the case, with practical wisdom emphasized over theoretical wisdom. Accordingly, the article examines prospects for cross-fertilization between, on the one hand, mindfulness and compassion interpreted as virtues in Eastern contemplative practices, and on the other hand, mindfulness and compassion as interpreted within Western virtue-oriented business ethics. Illuminating a pathway for such interpretative cross-pollination calls for an appropriate conceptual frame of reference that the article organizes around a set of interconnected themes. The first theme is that mindfulness and compassion represent key virtues within contemplative practices. This indicates a promising touchpoint between Eastern and Western traditions: their respective focus upon character, inner states, intrinsic motivation, and self-improvement toward ethicality in the world. The second theme is that such virtues in Eastern contemplative practices, as well as character traits integral to Western virtue-oriented approaches, denote contested “normative-interpretive” concepts that engage philosophical debate rather than indisputable empirical-criterial concepts that can be taken at face-value. The third theme advocates moving beyond behaviorist and neuropsychological accounts of virtue, approaching character traits of Eastern contemplative practice and Western virtue ethics through nonscientific inquiry into normative interpretive questions concerning such virtues. This supports debate over competing views of the nature, purpose, cultivation, and cultural context of mindfulness, compassion, and other virtues – issues arising as mindfulness enters the business management sphere -- to be conducted on normative grounds. With the background conceptual framework established, the article presents key points about the prospects for cross-fertilization between virtue ethics and contemplative practice, and why it matters, with reference to business ethics. (shrink)

A recent special issue in the Journal of Business Ethics gathered together a variety of papers addressing the challenges of putting virtue ethics into practice :563–565, 2013). The editors prefaced their outline of the various papers with the assertion that exploring the practical dimension of virtue ethics can help business leaders discover their proper place in working for a better world, as individuals and within the family, the business community and society in general :563–565, 2013). Scholars are yet to explore (...) the role of virtuous organisational leaders in the pursuit of Eudaimonia. This paper is a qualitative study which considered company directors’ self-understandings in light of a virtue ethics conceptual framework. The aim of the study is to explore whether virtue ethics rather than deontology and consequentialism is a better vehicle for expressing directors’ self-understandings about their ideals and role. (shrink)

The aim of this study is to contribute to a conceptualization of organizational politics that underscores the possibility of developing positive political behavior at the workplace. In this respect, we seek to provide a context of re-evaluating the normative foundations of organizational politics. Normative issues are critically discussed in the context of mainstream ethical theories that illuminate the interaction of ethics and political behavior. More specifically, it is argued that a deontological framework is of particular importance for the proper management (...) of negative political behavior, whereas a virtue-ethics context can be employed so as to foster positive political behavior at the workplace. Finally, the implications of this approach for organizational life and HRM processes and practices are taken into consideration. (shrink)

Virtue ethics is generally recognized as one of the three major schools of ethics, but is often waylaid by utilitarianism and deontology in business and management literature. EBSCO and ABI databases were used to look for articles in the Journal of Citation Reports publications between 1980 and 2011 containing the keywords ‘virtue ethics’, ‘virtue theory’, or ‘virtuousness’ in the abstract and ‘business’ or ‘management’ in the text. The search was refined to draw lists of the most prolific authors, the most (...) cited authors, the most cited articles, and the journals with the most virtue ethics publications. This information allows one to chart how virtue ethics articles have evolved through the decades and to establish ‘schools’ or clusters of authors as well as clusters of themes. The results of this quantitative analysis of authors, ‘schools’, themes, and publications provide a foundation for the future study of virtue ethics in business and management, identifying its achievements and potentials. (shrink)

How leaders and managers respond to not knowing is highly relevant given the complex, ambiguous, and chaotic business environment of the twenty-first century. Drawing on the literature from a variety of disciplines, the paper explores the dominant, unfavorable conceptualization of not knowing. The authors present some potential ethical implications of a negative view of not knowing and suggest how organizations would benefit from identifying any unhelpful aspects of the culture that may encourage unethical, undesirable, and/or hasty actions in situations of (...) not knowing. The paper specifically illustrates how patience, courage, honesty, integrity, and humility are integral to negative capability in the contexts of not knowing. Finally, the paper calls for deeper inquiry into the role of virtue ethics in preparing managers and leaders for not knowing and urges organizations to embrace negative capability in not knowing rather than engaging in damaging delusion. (shrink)

This paper draws from the work of sixteenth century theologian, philosopher, and ethicist Domingo de Soto and considers his virtue-based approach to the ethical evaluation of commerce within an Aristotelian–Thomistic framework for the articulation of business and the common good. Particular attention is given to the fundamental emphasis placed by Soto in distinguishing between commerce as an activity and the specific conduct of persons engaging in commercial activity. The distinction between the material and the formal parts of the common good (...) is then employed to shed light on the way Soto articulates commercial practices, virtuous character, and the common good. It is concluded that Soto’s major contribution for business ethics is clarifying that the key element for the ethical evaluation of commerce is the embodiment of virtuous personal conduct in the exercise of commercial activity. In this framework, the fulfillment of commerce’s potential to contribute to the common good is thus fundamentally interconnected with putting virtues into practice. (shrink)

While many scholars agree that the ‘‘separation thesis’’ (Freeman in Bus Ethics Quart 4(4):409–421, 1994)—that business issues and ethical issues can be neatly compartmentalized—is harmful to business ethics scholarship and practice, they also conclude that eliminating it is either inadvisable because of the usefulness of the positive/ normative distinction, or actually impossible. Based on an exploration of the fact/value dichotomy and the pragmatist and virtue theoretic responses to it, we develop an approach to eliminating the separation thesis that integrates ‘‘business’’ (...) with ‘‘ethics’’ while still permitting a positive/ normative distinction, which we call ‘‘ethics from observation.’’. (shrink)

Gender greatly impacts access to opportunities, potential, and success in corporate leadership roles. We begin with a general presentation of why such discussion is necessary for basic considerations of justice and fairness in gender equality and how the issues we raise must impact any ethical perspective on gender in the corporate workplace. We continue with a breakdown of the central categories affecting the success of women in corporate leadership roles. The first of these includes gender-influenced behavioral factors, such as the (...) requirements and expectations of gendered verbal and nonverbal communication styles as well as appearance. We move on to address the impact of family on corporate leadership opportunities and success, discussing the asymmetrical evaluation of an individual’s potential, authority, and competence based on gender stereotypes of familial obligations and expectations. Finally, we address how gender impacts access to networking and sponsorship opportunities and the long-term effects of systematic limitations on women’s inclusion in the upper echelons of corporate leadership. We conclude with a summary of the questions and issues raised by our discussion and direct individuals to consider how different ethical systems and moral requirements might influence their interpretations of gender and leadership in the corporate workplace. (shrink)