This article uses bibliometric analysis to empirically examine research on business ethics published in a broad set of journals, focused over the period 1988-2007. We consider those journals with an emphasis on accounting. First, we determine the citation frequencies of documents to identify the core articles in accounting research with an ethics focus as well as the contributions of influential fields included in the research sphere of these journals. We also employ document co-citation analysis to analyze the scholarly communication patterns (...) that exist within the realm of the specified articles. Second, we utilize social network analysis tools to profile the centrality features of the co-citation network of these documents. (shrink)

This paper investigates how ethics is incorporated in the qualification process for prospective professional accountants across Australia and New Zealand. It does so by examining the structure of these qualification processes and by analysing the learning objectives and summarised content for ethics courses that prospective accountants take either at university or through the post-degree programs provided by CPA Australia and Chartered Accountants Australia and New Zealand. We do this to understand how the ‘sandwich’ approach to teaching ethics :77–92, 1993) is (...) implemented. This approach advocates a standalone ethics course, followed by ethical cases that are integrated across accounting courses, and subsequently a capstone course that combines ethics and professionalism. We test the extent to which this approach is adopted and examine how its application relates to the components of moral behaviour. The results provide three significant contributions. The first is that the ‘sandwich’ approach is not in place for most prospective accountants as only a minority of programs include a mandatory course with a substantial ethics component, and this is more likely in undergraduate rather than postgraduate programs. The second contribution is that although moral sensitivity and moral judgement are widely considered, little attention is given to issues of moral motivation and moral character. We suggest that change is unlikely without explicit ethical education requirements from the professional accounting bodies. The paper also makes a final contribution by proposing a more nuanced typology characterising the degree to which ethics is incorporated in particular courses. (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)

Despite a long history in eastern and western culture of defining leadership in terms of virtues and character, their significance for guiding leader behavior has largely been confined to the ethics literature. As such, agreement concerning the defining elements of virtuous leadership and their measurement is lacking. Drawing on both Confucian and Aristotelian concepts, we define virtuous leadership and distinguish it conceptually from several related perspectives, including virtues-based leadership in the Positive organizational behavior literature, and from ethical and value-laden leadership. (...) Then, two empirical studies are presented that develop and validate the Virtuous Leadership Questionnaire, an 18-item behaviorally based assessment of the construct. Among other findings, we show that the VLQ accounts for variance in several outcome variables, even after self-assessed leader virtue and subordinate-rated social and personalized leader charisma are controlled. (shrink)

What does it look like when an organization tentatively steps away from an exclusively rules-based regime and begins to attend to both rules and principles? What insights and guidance can ethicists and ethical theory offer? This paper is a case study of an organization that has initiated such a transition. The American Institute of Certified Public Accountants has begun a turn toward the promotion of ethical principles and best practices by adding a “conceptual framework” to its existing Code of Professional (...) Conduct. This conceptual framework calls upon its members to intentionally increase their awareness of significant threats to their compliance with its rules of conduct and to establish safeguards to offset or eliminate those threats. To this end, each member is required to regard every questionable situation, circumstance, transaction or relationship by attempting to view it through the eyes of an imagined reasonable third party. This paper examines this protocol theoretically and practically. First, we frame this analysis within the principles and ethical concepts that inform the professional ethics of accountants. Second, we critique the AICPA’s long-standing rules-based approach to its Code. Third, we examine the new conceptual framework with a view toward its potential for the promotion of a more principles-based approach to the professional ethics of the accounting profession. Fourth, we give attention to the notion of the “reasonable and informed third party,” which has been embedded in the new conceptual framework, and consider how two schools of thought—Adam Smith’s modernist “impartial spectator” concept and Emmanuel Lévinas’ postmodern phenomenology in regard to “the Other”—may offer theoretical support and clarity for this epistemic exercise. Finally, we point out several ways in which the AICPA’s commitment to its new conceptual framework could be strengthened and enhanced. (shrink)

Accounting ethics failures have seized headlines and cost investors billions of dollars. Improvement of the ethical reasoning and behavior of accountants has become a key concern for the accounting profession and for higher education in accounting. Researchers have asked a number of questions, including what type of accounting ethics education intervention would be most effective for accounting students. Some researchers have proposed virtue ethics as an appropriate moral framework for accounting. This research tested whether Smithian virtue ethics training, based on (...) Adam Smith’s “The Theory of Moral Sentiments”, is effective in improving accounting student’s cognitive moral development. This research used a pre-test, treatment, post-test, quasi-experimental design utilizing the Defining Issues Test 2 instrument to measure students’ CMD. Analysis of DIT-2 gain scores did show a significant improvement in subjects’ personal interest scores and a significant improvement in an overall measure of CMD, the DIT N2 index, whereas their DIT-2 post-conventional scores did not improve significantly. This research supports the proposition that the concepts contained in Smithian virtue ethics can contribute to an effective accounting ethics education intervention. However, further research is required to determine what concepts should be included to improve accounting students’ post-conventional moral reasoning. (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)

The field of journalism has experienced recent upheavals caused in part by shifts in technology, economic challenges, and questions about the concept of truth telling. This study compares the new version of the Society of Professional Journalists’ Code of Ethics with its 1996 version in an effort to determine how journalists who embrace the ethos of a profession have responded to these challenges, as reflected in the standards and practices outlined in their code. A framework for systematically reading codes is (...) offered. The changes are examined in light of relevant moral theories. (shrink)

Accounting literature has commonly judged the impact of regulation on auditors’ ethical commitment by studying daily audit practice. We argue that the content of the regulations themselves is an important determinant of such an impact. This paper evaluates the capacity of the content of regulation to promote audit ethics by reference to the European Union’s audit policy. Anchored in the extant conceptual perspectives on ethics, our analysis of relevant policy documents shows that the EU’s approach to audit ethics relates most (...) strongly to the deontological perspectives on ethics and leaves largely unexplored other means of promoting auditors’ ethical stance, such as by stimulating virtue ethics. We find that it is the EU regulators’ restricted view of the conceptual foundations of audit ethics that limits the capacity of their policy to effectively stimulate auditors’ ethical commitment. The paper also discusses the potential implications of our analysis for the design of future audit policy. (shrink)

We build on limited research concerning the mediation processes associated with the relationship between ethical culture and employee outcomes. A multidimensional measure of ethical culture was examined for its relationship to overall Person-Organization (P–O) fit and employee response, using a sample of 436 employees from social economy and commercial banks in Spain. In line with previous research involving unidimensional measures, ethical culture was found to relate positively to employee job satisfaction, affective commitment, and intention to stay. New to the literature, (...) ethical culture was also found to be associated positively with employee willingness to recommend the organization to others. These effects were observed even when perceptions of P–O fit were controlled. Importantly, ethical culture was also positively related to overall P–O fit, which in turn, partially mediated the relationship between ethical culture and employee outcomes. Our findings add to studies that focus on the importance of the degree of ethical congruence between the individual employee and the organization. They suggest that ethical culture, with its expected impact on virtuousness and emotional well-being, will positively influence outcomes independently of the degree to which there is a match between employee and organizational values. (shrink)

Even though management scholars have offered several views on the process of corporate sustainability, these efforts have focused mainly on the technical aspects of sustainability while omitting the fundamental role played by individual moral competences. Therefore, previous work offers an incomplete and somewhat reductionist view of corporate sustainability. In this article, we develop a holistic framework of corporate sustainability in which both the moral and technical aspects of sustainability are considered. We do so by integrating the ethical, normative perspective of (...) the Catholic social teaching with the competitive view of the natural resource-based view. This framework highlights the importance of CST principles and ideas in developing executive moral competences such as moral sensitivity and awareness, and moral cognition and motivation. Moral competences, in turn, influence the organizational selection of environmental strategies, giving leaders the intrinsic motivation to promote both a longer-term stance on corporate sustainability efforts and a relentless search for greener business models. Such strategies move the firm closer towards achieving environmental sustainability. Hence, by bridging the individual, normative-ethical with the organizational, implementational levels of corporate sustainability, our framework provides a more realistic, coherent, and complete perspective on the complex process of achieving corporate sustainability. (shrink)

Following corporate accounting scandals there has been an increasing concern with understanding the factors that undermine the occupational values of accounting professionals, which emphasize self-transcendence in the pursuit of public good and openness to change in the pursuit of autonomy and creativity. Prior studies have demonstrated that these values are undermined in economically rationalized organizational environments. Our study advances this research by examining how accounting professionals’ occupational values are influenced by the economic rationalization of countries where they are employed. While (...) economic rationalization of countries is recognized as a key macrostructural, social-level influence on individual values, the theory is divided regarding its normative effects. While economic rationalization may decrease the priority of occupational values by transforming professional action in accordance with the calculative logic of economic rationality, it can also increase the priority of these values by providing resources necessary for freeing professionals from the material constraints of survival. We test these divergent insights using the European Social Survey data for 28 countries. Our results indicate that economic rationalization decrease accountants’ occupational values beyond the effects of cultural values and work-related characteristics. (shrink)

The attention being paid to ethics education in accounting has been increasing, especially after the corporate accounting scandals at the turn of the century. This paper provides a comprehensive overview of the existing research in the field of ethics education in accounting. To synthesize past research, a bibliometric analysis that references 134 primary studies is performed and three bibliometric methods are applied. First, we visualize the historical evolution of ethics education in accounting research through historiography. Second, we use bibliographic coupling (...) to identify clusters of ethics education in accounting research before, during, and after major corporate scandals. Third, we perform a co-word analysis to connect the identified patterns into a map of a contextual space. The results reveal, in each decade, not only an increasing academic focus on this field of research, but also an increasing number of different research clusters. While the clusters Factors affecting moral judgement, Perception of ethics, and Lack of ethics topics in the last research period develop further from the respective clusters in the previous periods, Accounting beyond technical skills, Integration of ethics in accounting education, Use of developed ethics frameworks, and Professional values on the contrary develop anew in the last decade, as a consequence of a growing demand for teaching ethics. Overall, the paper presents the development patterns of ethics education in accounting research and sets up a research agenda that encourages future research. (shrink)

In this study, we examine the relationship between appeal to self-perceptions of moral identity, included in the teaching of ethics, and the strengthening of moral judgment among postgraduate business students. As appeal to moral identity emphasizes personal engagement in the appraisal of an ethically charged situation, it addresses critiques of abstract rule application and principle transfer leveled at traditional business ethics teaching. Eighty-one participants completed a series of reflective writing exercises throughout a twelve-week business ethics unit. Based on an instrument (...) completed at the beginning and end of the education process, our results indicate a positive shift in moral judgement intensity. We, therefore, recommend appeal to moral identity as a leverage strategy to be employed in business ethics education in order to strengthen students’ moral judgment. (shrink)

Current frameworks on ethical decision-making process have some limitations. This paper argues that the consideration of moral competencies, understood as moral virtues in the workplace, can enhance our understanding of why moral character contributes to ethical decision-making. After discussing the universal nature of four moral competencies (prudence, justice, fortitude and temperance), we analyse their influence on the various stages of the ethical decision-making process. We conclude by considering the managerial implications of our findings and proposing further research.

In recent years, character traits in general and virtue-related concepts in particular have been of considerable interest to philosophers, psychological researchers, and practitioners in the business ethics field. Three approaches to character traits can be used to incorporate ethics into organizations: virtues, character strengths, and competencies. The aim of this article is to clarify the concept of character traits, or virtues, and provide a unified operational version of it for incorporation into management. To this end, we first discuss the analogy (...) among virtues, character strengths, and competencies. Then, we propose a list of moral competencies that can be implemented in competency-based human resource management. (shrink)

Ethical networks are an emerging form of social alliance based on collaboration between organizations that share a common ethical commitment. Grounded in a theoretical framework of virtue-based business ethics and focusing on nonprofit alliances, this study investigates the virtuousness of ethical networks; that is, how they trigger virtuous practices in their member nonprofit organizations. Adopting a qualitative grounded theory approach, the study focuses on one of the largest Italian ethical networks of nonprofit organizations operating in the social care sector. The (...) findings show that shared ethical values and religious beliefs are positively associated with ethical network building. Based on these findings, a circular model of virtuousness is proposed in which ethical networks foster virtuous practices among their members at four levels: (1) the strategic orientation level, (2) the institutional level, (3) the organizational level, and (4) the relational level. At each of these levels, ethical networks foster a habituation to virtues and the propagation of virtuous behaviors among their members. Theoretical, practical, and social implications of the research findings are discussed. (shrink)

In this study, we examine the nature of the relationship between ethical leadership and unethical pro-organizational behavior (UPB), defined as unethical behavior conducted by employees with the aim of benefiting their organization, and whether the strength of the relationship differs between subordinates experiencing high and low identification with supervisor. Based on three-wave survey data obtained from 239 public sector employees in China, we find that ethical leadership has an inverted u-shaped (curvilinear) relationship with UPB. As the level of ethical leadership (...) increases from low to moderate, UPB increases; as the level of ethical leadership increases from moderate to high, UPB decreases. Further, we find that the strength of this inverted u-curve relationship differs between subordinates with high and low identification with supervisor. That is to say, the inverted u-shaped relationship between ethical leadership and UPB was stronger when subordinates experienced high levels of identification with supervisor. The theoretical and managerial implications of our findings for understanding how to manage UPB in an organizational context are discussed. (shrink)

Corporate codes of ethics, which have spread in the last decades, have shown a limited ability to foster ethical behaviors. For instance, they have been criticized for relying too much on formal compliance, rather than taking into account sufficiently agents and their moral development, or promoting self-reflexive behaviors. We aim here at showing that a code of ethics in fact has meaning and enables ethical progress when it is interpreted and appropriated with practical wisdom. We explore a model that represents (...) an uncommon organizational code of ethics: the monastic Rule of St. Benedict, written in the sixth century and still used today. Our empirical study—conducted in several monasteries living under this rule—shows that organization members interpret this rule, both hermeneutically and ethically, to adapt it to situations. They also appropriate this rule as a way of life and treat it as a dynamic framework that helps them to follow their purpose within their organization. This exceptional code actually offers an alternative model for practicing codes of ethics, in a virtue-ethical manner, beyond mere compliance with the text. The way in which reflexive and active agents practice the code, both individually and collectively, shapes their organizational experience and fosters their moral development. (shrink)

In light of the recent crisis and its aftershocks, it becomes crucial to reflect on the relationship between finance and accounting and on how to integrate ethics and efficiency, as well as on how to motivate and empower practitioners in the world of finance to commit to justice, fairness and enhanced understanding, and to improving their personal integrity. This article, written as an editorial introduction to a special issue includes works related to control measurement and ethical behavior, misbehaviors in finances (...) and accounting, professionalism in accounting, ethical investing and corporate reporting. We conclude by suggesting further research for a better integration of technical aspects of accounting and finances into business activity—human activity actually—and an for understanding of ethics not limited to rules, but as a mutual and interdependent system of values, virtues and principles. (shrink)

This research is motivated by the criticism levelled at the academic community for its failure to incorporate sufficient ethics education into the accounting curriculum :53–71, 2004; Madison and Schmidt 2006). The inclusion of ethics decision-making frameworks by professional bodies in their codes of conduct or as a standalone tool and the encouragement of their use as a part of ethics education to help students to identify and think through ethical issues in a business context has been subject to very limited (...) research to date. The aim of this study is to provide evidence of the impact of providing a framework on its own and providing a framework as part of a comprehensive integrated ethics education component of a first-year unit of study, on accounting students’ ethical sensitivity and judgment. Results indicate that providing students with a framework only does not increase students’ ethical sensitivity but does support their ethical judgment. In contrast, the integrated ethics component does increase student’s ethical sensitivity, however, an unexpected finding of this study is that increases in students’ ethical judgement are greater if they have not been previously exposed to the framework. Taken together, our findings suggest that it is the framework that has a significant impact on students’ ethical judgment, while an integrated ethics education can expose students to a range of ethical issues and thereby improve their ethical sensitivity, a critical component which initiates the ethical decision-making process. (shrink)

Theories of organization and management have offered several concepts and models which indicate that organizational values are an important factor for running organizations successfully. A still unexplained question concerns the creation of balanced organizational values, which can support the achievement of several different and even conflicting goals of modern organizations. To explore balanced organizational values in contemporary business practice, we tested different models of organizational values on a sample of Fortune 100 companies. Research results demonstrate that none of the proportions/ratios (...) of balance proposed by the main models of organizational values from existing literature possesses/presents the ideal balance that is currently pursued in the business field. As a conclusion, a new model of balanced organizational values is proposed. (shrink)

Perceived supervisor support is widely studied in terms of its positive outcomes. This paper, in contrast, investigates employees’ unethical pro-supervisor behavior as a negative consequence of perceived supervisor support. Drawing upon the multifoci approach of social exchange theory and the reciprocity principle, we hypothesized that perceived supervisor support can engender unethical pro-supervisor behavior via employees’ feelings of reciprocity towards the supervisor. Building on the instrumental reasons that underlie social exchanges, we further hypothesized that this mediation relationship is stronger for employees (...) high in Machiavellianism. We collected data for three experimental studies from full-time MBA students of a European business school and from U.S. working professionals, and the results provided consistent support for our proposed model. Taken together, the current study highlights the “dark side” of perceived supervisor support, in that it can lead to unethical behavior and that this effect can be accentuated by employees’ Machiavellianism. (shrink)

Over the past decade, a number of accounting and financial reporting frauds have led to lost stock wealth, destroyed public trust, and a worldwide recession that called for necessary reform. Regulatory responses and systemic reforms quickly followed, and we show that, while necessary, these reforms are insufficient. The purpose of this paper is to forward virtuous professionalism as a necessary path toward restoring financial reporting systems. We take the position of external observer and analyze the accounting profession over time to (...) assess what has transpired within our financial reporting systems. Our analysis reveals that the combined influence of commercialism and regulatory response has led to a systemic decline in accounting’s professional ideals and, as a result, an erosion of public trust. We then propose virtuous professionalism as a necessary process for restoring financial reporting systems based on sociological, professional, and philosophical theories. We argue that virtuous professionalism is necessary for restoring the public servant identity of the accounting professional. We conclude that efforts to restore financial reporting systems should begin with reforms that restore professional identity shaped by virtues. (shrink)

This paper examines whether appealing to learners’ moral identity makes a significant contribution to improving their ethical decision making beyond traditional, rule-based teaching. In response to criticisms leveled at rule-based ethics teaching by alternative approaches, we identify moral identity theory and experiments in moral psychology as useful sources to draw on for the creation of a new, identity-based ethics teaching approach. We develop and apply a set of regular self-reflection focused writing tasks added to the traditional teaching program over a (...) one-semester period, and assess the outcomes of an overall sample of 149 postgraduate business school students, who were randomly assigned to one of three conditions: exposure to both identity-based tasks and rule-based teaching, exposure to rule-based teaching only, and the control condition. Our findings show that, while the three groups reported the same level of ethical decision making at the beginning of the semester, at the end of the semester the students who were exposed to both identity-based and rule-based teaching reported higher level of ethical decision making compared to those who were only exposed to rule-based education. In addition, the students who received rule-based teaching reported higher ethical decision making compared to those in the control condition. These results suggest that a teaching approach which appeals to the learner’s moral identity can act as an effective leverage point when complementing rule-based teaching. This simple approach should be widely adopted as common practice in graduate business schools. (shrink)

Conceptualization and measurement of organizational commitment involve different dimensions that include economic, affective, as well as moral aspects labelled in the literature as: ‘continuance’, ‘affective’ and ‘normative’ commitment. This multidimensional framework emerges from the convergence of different research lines. Using Aristotle’s philosophical framework, that explicitly considers the role of the will in human commitment, it is proposed a rational explanation of the existence of mentioned dimensions in organizational commitment. Such a theoretical proposal may offer a more accurate definition of ‘affective (...) commitment’ that distinguishes feelings from rational judgments. The use of a philosophical explanation coherent with psychological findings also allows the discovery of a wider moral concept of ‘normative commitment’. (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)

This paper argues that corporate governance reformers in Anglo-American jurisdictions should consider a different approach in their quest for better corporate governance. Traditionally, corporate governance reform has taken a structural approach, tightening the rules around the number of independent directors required on boards and committees and fine-tuning the definition of independence. However, such an approach has failed to achieve effective corporate governance. Moreover, this approach is informed by the arguably discredited assumption that individuals are rational self-interest utility maximizers. This conceptual (...) paper questions why corporate governance scholars and regulators remain uncritical of this assumption and suggests an approach to reform inspired by a different view of human nature. Indeed, incorporating an actor-based approach to reform into existing structures may better achieve effective corporate governance while addressing an unjustified adherence to this flawed assumption. (shrink)

Conceptualization and measurement of organizational commitment involve different dimensions that include economic, affective, as well as moral aspects labelled in the literature as: ‘continuance’, ‘affective’ and ‘normative’ commitment. This multidimensional framework emerges from the convergence of different research lines. Using Aristotle’s philosophical framework, that explicitly considers the role of the will in human commitment, it is proposed a rational explanation of the existence of mentioned dimensions in organizational commitment. Such a theoretical proposal may offer a more accurate definition of ‘affective (...) commitment’ that distinguishes feelings from rational judgments. The use of a philosophical explanation coherent with psychological findings also allows the discovery of a wider moral concept of ‘normative commitment’. (shrink)

Six cardinal leadership virtues based on Aristotelian and Confucian typology were advanced through this study by developing a measurement instrument and examining its predictive validity by studying the causal association with perceived leader happiness. Based on a sample of 183 school principals engaged in various types of schools, the results of both exploratory and confirmatory factor analyses generated satisfactory empirical outcomes by finding adequate support for the overall leadership virtue scale and the constituent subscale elements. The paper concluded with the (...) theoretical and practical implications for this developed instrument of leadership virtue especially in the context of school education. The major contribution of the paper lies in developing a measurement scale of virtues for school leaders. (shrink)

This study responds to suggestions that business-school faculty are promoting distorted views of human nature and out-dated notions of ethics. Specifically, the paper examines in-depth interviews with a sample of 15 faculty centrally-positioned within the field’s symbolic market, namely, academics who completed their Ph.D. programs in the same institutional space as the editors of five top accounting journals. The paper finds that ethics are for the most part important to these individuals, but that the field’s general adherence to the neoclassical (...) economic model creates pressures that militate against a deeper concern for and more adequate treatment of the topic. (shrink)

Even though management scholars have offered several views on the process of corporate sustainability, these efforts have focused mainly on the technical aspects of sustainability while omitting the fundamental role played by individual moral competences. Therefore, previous work offers an incomplete and somewhat reductionist view of corporate sustainability. In this article, we develop a holistic framework of corporate sustainability in which both the moral and technical aspects of sustainability are considered. We do so by integrating the ethical, normative perspective of (...) the Catholic social teaching with the competitive view of the natural resource-based view. This framework highlights the importance of CST principles and ideas in developing executive moral competences such as moral sensitivity and awareness, and moral cognition and motivation. Moral competences, in turn, influence the organizational selection of environmental strategies, giving leaders the intrinsic motivation to promote both a longer-term stance on corporate sustainability efforts and a relentless search for greener business models. Such strategies move the firm closer towards achieving environmental sustainability. Hence, by bridging the individual, normative-ethical with the organizational, implementational levels of corporate sustainability, our framework provides a more realistic, coherent, and complete perspective on the complex process of achieving corporate sustainability. (shrink)

The move towards having more teaching of business ethics comes in part from a tendency to view managers negatively, drawing on anti-management theories that are presently popular in business schools. This can lead to a misdiagnosis of the causes of contemporary business problems. Teaching business ethics can, however, be ineffectual and counter-productive. Education in ethical philosophy can lead managers to be indecisive, sceptical or to rationalize poor conduct. The ethics of academics become salient and lapses in them undercut their claims (...) to authority. The philosophical viewpoint that stresses free choice runs contrary to the social science mission to reveal the causes that determine human behaviour and provide solutions to problems. Pro-management theory offers a more positive appreciation of managers, with its three components of structural functionalism, strategic functionalism and stewardship. (shrink)

This paper presents an epistemological or knowledge-theoretic reinterpretation of the role of external accountants. It presents a joint epistemic agent model in which corporate management and accountants together form a source of testimonial knowledge for the firm’s stakeholders about the firm’s financial situation. Recent work from virtue epistemology is used, according to which knowledge is, roughly, true belief that is justified by way of the exercise of epistemic virtue. In the joint epistemic agent model, corporate management provides information, while the (...) accountants ensure justification. The paper argues that to ensure justification, accountants have to exercise self-regarding epistemic virtues such as open-mindedness, but also other-regarding epistemic virtues such as generosity. It is also argued that these virtues are only partly encompassed in existing professional codes of conduct. (shrink)

The tension between external forces for better ethics in organizations, represented by legislation such as the Sarbanes–Oxley Act (SOX), and the call for internal forces represented by increased educational coverage, has never been as apparent. This study examines business school faculty attitudes about recent corporate ethics lapses, including opinions about root causes, potential solutions, and ethics coverage in their courses. In assessing root causes, faculty point to a failure of systems such as legal/professional and management (external) and declining personal values (...) (internal). We also found that faculty recommend external forces as a remedy more often than increased ethics educational coverage; we contextualize this finding with recent ethics education literature. We conclude by proposing that neither legislation nor ethics education alone are complete when addressing widespread unethical corporate acts and offer a multi-faceted approach to ethics educational opportunities. (shrink)

This study investigates how one important accounting professional authority—CPA Canada—discusses accounting ethics and exhorts its members to think about ethics-related issues. To do this, we rely on empirical evidence of the types of arguments used by CPA Canada to describe what they consider acceptable moral justifications in a variety of practical situations that accountants may encounter. We argue that the articles contained in the profession’s primary publication for all members, CPA Magazine, offer a wealth of such evidence. We analyze 237 (...) articles about accounting ethics that were published in CPA Magazine from January 2000 to December 2017, and find evidence of moral pluralism. Six categories of justifications dominate: private commitments, utility, perfectionist ends, general duties, and specific obligations, plus self-interest. Of these categories, the specific obligations logic is the most widely used. We offer a tentative explanation, and discuss the implications of our findings for a better grasp of the complexities of accountants’ practical conflicts and a rethink of the ongoing tension between professionalism and commercialism. (shrink)

The aim of this article is to present the dynamics of the structure of human action to enable us to link the organizational level of institutions, norms, and culture of the firm. At the organizational level, the existing institutions and culture are the confines of our individual action. However, at the individual level, we focus on the external consequences of our acts. It is our acts that maintain social institutions and culture. The ethics of personal virtues demands an ethics of (...) institutions, the ethics which deals with the institutional means of realizing individual ends. All individuals choose courses of action by deciding what type of life is worth living. In this view, virtue (arete) occupies a central position, defining the paradigm that each society with its institutions and norms sets as the model of life to be lived (eudiamonia). (shrink)

One of the prevailing explanations of the corporate scandals of the Enron era and the recent financial crisis is the failure of professional gatekeepers—such as auditors, corporate lawyers, and securities analysts—to detect and disrupt corporate misconduct. The alleged solution to this failure—typically proposed and justified on consequentialist grounds—is to impose legal liability on professionals. The purpose of this paper is to critically examine the normative foundations of gatekeeper liability. In the course of this paper, I shall defend the claim that (...) gatekeeper liability may be morally objectionable not only on grounds of fairness but also on consequentialist grounds. The expected contribution of this paper is threefold. First, it systematizes the framing and moral justification of gatekeeping duties. Second, it calls into question the normative underpinnings for targeting intermediaries instead of primary wrongdoers. Third, it anticipates some negative results of gatekeeping strategies in the accounting profession, specifically in the realm of clientele selection, the expectation gap, and auditor compensation. (shrink)

The nature and extent of Africa’s leadership challenge has been explored from multi-theoretical perspectives finding that amongst other issues, it is ethical in nature. This study therefore aimed to investigate and present a model of virtuous leadership within an indigenous African firm’s context drawing from the African virtue ethics of Afro-communitarianism. Using a qualitative case study design, it explored a model of virtuous leadership within a leading Nigerian pharmaceutical brand. Data was collected from multiple primary sources including semi-structured interviews and (...) informal conversations as well as secondary sources. This study found a virtuous leadership model underpinned by four African primary virtues—Truthfulness, Courage, Humility and Humanity within a context of communitarianism. It also found that the nature and practice of these four virtues by the leaders within the context positively shaped employees’ moral characters through visible modelling but not without its flaws. It concluded that virtuous leadership models are essential within the African leadership context to rise above existing status quo to build communities of practices that are not business as usual but seeking the ultimate end of facilitating the flourishing of immediate and wider communities alike. (shrink)

ABSTRACT Ethical leaders can influence followers’ ethical behaviors by establishing an ethical climate. However, followers’ responses to an ethical climate may also differ according to the amount of attention they devote to moral questions. This study analyzes whether moral attentiveness augments the positive effect of an ethical climate on employees’ ethical behaviors, as well as the indirect effect of ethical leadership on employee ethical behavior through an ethical climate. Data from 270 employees in the Malaysian manufacturing industry indicate that the (...) positive impact of an ethical climate on ethical behavior is greater among employees who exhibit high rather than low moral attentiveness; this moderating role also applies to the relationship between ethical leadership and employee ethical behavior through the ethical climate. This study thus sheds new light on the notable role of moral attentiveness in ensuring that ethical leadership and ethical climate enhance ethical behavior in the workplace. (shrink)

Ethical decision-making in school administration has received considerable attention in educational leadership literature. However, most research has focused on principals working in secondary school settings while studies that explore ethical reasoning processes of academic deans have been significantly few. This qualitative study aims to describe the ethical decision-making processes employed by a select group of Filipino college deans in solving ethical dilemmas using the ethical paradigms proposed in the works of Starratt (Educ Adm Q 27:185–202, 1991) and Shapiro and Stefkovich (...) (Ethical leadership and decision-making in education: applying theoretical perspectives to complex dilemmas, 2005) as frameworks for the analysis. Data was gathered using semi-structured interviews and field text was analyzed using deductive thematic analysis. Findings of this study show that majority of the deans chose to share ethical dilemmas involving students and teachers. The findings also show the ethical frameworks of care, justice, and profession as the dominant paradigms utilized by Filipino deans and their preference for adopting multiple ethical frameworks when making their decisions. Most of the ethical dilemmas which the deans narrated relate to their tasks of academic administration such as monitoring student performance, faculty evaluation and maintaining school discipline. Interestingly, only a few dilemmas involving university administrators were expressed, and dilemmas that refer to broader societal issues usually associated with school administrators’ utilization of the ethic of critique were also significantly left out in the narratives of this study. This paper intends to contribute to current literature by expanding research to administrators working in the context of higher education in the Philippine setting. The findings of this study could serve as knowledge base in designing ethics courses to enhance educational leaders’ ethical decision-making skills. The study also provides useful insights of ethical decisions and reasoning processes employed by academic administrators in resolving real life ethical dilemmas that could be useful at the practical level for aspiring and practicing deans. (shrink)

Ethical leaders can influence followers’ ethical behaviors by establishing an ethical climate. However, followers’ responses to an ethical climate may also differ according to the amount of attention they devote to moral questions. This study analyzes whether moral attentiveness augments the positive effect of an ethical climate on employees’ ethical behaviors, as well as the indirect effect of ethical leadership on employee ethical behavior through an ethical climate. Data from 270 employees in the Malaysian manufacturing industry indicate that the positive (...) impact of an ethical climate on ethical behavior is greater among employees who exhibit high rather than low moral attentiveness; this moderating role also applies to the relationship between ethical leadership and employee ethical behavior through the ethical climate. This study thus sheds new light on the notable role of moral attentiveness in ensuring that ethical leadership and ethical climate enhance ethical behavior in the workplace. (shrink)