We trace the genealogy of wisdom to show that its status in epistemological and management discourse has gradually declined since the Scientific Revolution. As the status of wisdom has declined, so the status of rational science has grown. We argue that the effects on the practice of management of the decline of wisdom may impede management practice by clouding judgment, degrading decision making and compromising ethical standards. We show that wisdom combines transcendent intellection and rational process with (...) ethics to provide a balanced and integrated way of knowing, deciding and acting for managers in a complex and uncertain business environment. Finally, we discuss the role and value of wisdom across a range of business functions including knowledge management, strategic management, leadership and international business. (shrink)

We trace the genealogy of wisdom to show that its status in epistemological and management discourse has gradually declined since the Scientific Revolution. As the status of wisdom has declined, so the status of rational science has grown. We argue that the effects on the practice of management of the decline of wisdom may impede management practice by clouding judgment, degrading decision making, and compromising ethical standards. We show that wisdom combines transcendent intellection and rational process with (...) ethics to provide a balanced and integrated way of knowing, deciding, and acting for managers in a complex and uncertain business environment. Finally, we discuss the role and value of wisdom across a range of business functions including knowledge management, strategic management, leadership and international business. (shrink)

This article explores managers’ views on various ways in which business schools can contribute to providing solid ethics education to their students, who will ultimately become the next generation of business leaders. One thousand top level managers of Icelandic firms were approached and asked a number of questions aimed at establishing their view on the relationship between ethics education and the role of business schools in forming and developing business ethics education. Icelandic businesses were badly hurt (...) by the 2008 crisis, and therefore Iceland provides an interesting foundation for an empirical study of this sort as the aftermath of the crisis has encouraged managers to consciously reflect on the way their business was and should be conducted. Based on the results of the survey, a few main themes have developed. First, it appears that according to practicing managers, business schools should not be held responsible for employees’ unethical behavior. Nevertheless, managers believe that business schools should assist future employees in understanding ethics by including business ethics in teaching curricula. Second, managers believe that the workplace is not where ethics are learned, while also insisting that former students should already have strong ethical standards when entering the workplace. Third, managers call for business schools not only to contribute more to influencing students’ ethical standards, but also to reshape the knowledge and capabilities of practicing managers through re-training and continuous education. Based on the results of the study, the article also offers some recommendations on how to begin reformulating the approach to business ethics education in Iceland, and perhaps elsewhere. (shrink)

In this article we (a) interlink the philosophical ideas of Ernst Schumacher and Karl Popper within the framework of planning and management, (b) describe project management cases implemented using the principles of project cycle management (PCM) and (c) study whether the success or failure can be attributed to following these concepts. We consider two basic concepts for perceiving the world surrounding us: the concept of organisation and that of self-organisation. The former emphasises the predictability of the future, (...) where the results of each activity are predetermined and can always be achieved through thorough analytical planning. The latter sees the world as a generic whole where numerous interactions take place simultaneously, leaving the future unknown. As it has been shown, for example, by Schumacher, Hayek and Popper, the real world is uncertain and orders of great complexity appear spontaneously in a self-organised manner. Mankind has thus to cope with the self-organising world and to plan and manage therein. PCM is one of the most widespread contemporary management techniques used for that purpose in both the private and public sectors. However, PCM lacks a proper theoretical basis as well as philosophical framework. We have proposed elsewhere that the concept of piecemeal social engineering elaborated by Popper in his The Poverty of Historicism could serve as a theoretical basis, which can combine the organisational nature of planning and the self-organising and fuzzy world. Thus the task is mentally to split the planning and implementation issue: to take the whole into pieces and rearrange them in a desired manner in the planning phase (concept of organisation; convergent problem solving). The actual implementation of the plan ought to be conducted following a stepwise approach, re-planning all through the process (concept of self-organisation; divergent problem solving). “The future cannot be forecast, but it can be explored.” Not all human actions are unpredictable, but we cannot be sure what the results would be or judge the value of an action based on its inclusion in some plan. (shrink)

Alasdair MacIntyre’s critique of managerial capitalism is well known, with some arguing that MacIntyrean thought is antithetical to contemporary capitalist business. Nevertheless, substantial efforts have been taken to demonstrate how different business activities constitute MacIntyrean practices, which points to an incoherence at the heart of MacIntyrean business ethics scholarship. This article proposes a way of bridging these perspectives, suggesting a reimagined MacIntyrean approach to business that is thoroughly ‘practice-led.’ A detailed comparison of accounting and management (...) shows that while neither are practices in ‘good order,’ they differ in significant ways: where management does not meet the criteria for a MacIntyrean practice, accounting is a ‘distorted’ practice. This leads to a categorisation of practice-led business activity, whereby the traditional tasks of management are subsumed, shared or subordinated to practices and practitioners. Insights on how this can be implemented are drawn from the ‘communities of practice’ literature and a consideration of professions. (shrink)

Recent academic articles point to an increased vagueness and overlap in concepts related to business ethics and corporate responsibility. Further, the perception of these notions can differ in the smallbusiness world from the original academic definitions. This article focuses on the cognition of small-business owner-managers. Given the impact of small-business owner-managers on their ventures, corporate responsibility and ethical issues can take a different route in SMEs. The small-business owner-manager is able to shape the corporate culture and (...) to enact values other than profit. Adopting a cognitive perspective, we have identified how the small-business owner-manager makes sense of notions linked to corporate social responsibility (CSR) and business ethics. The concept of sensemaking has recently been applied to CSR (Basu and Pallazzo, 2008; Cramer et al., 2006). Applying a cognitive perspective to small-business owners may help in explaining specific phenomena found within smallbusiness ownership. For this research, the Repertory Grid Technique (RGT) is used, a method that has not previously been widely applied in the business and society field. Our findings to an extent invalidate the confusion in terminology found in the academic literature. Smallbusiness owner-managers, pragmatically and rather clearly, differentiate among the various concepts related to corporate responsibility and business ethics but, at the same time, they recognise the interrelationships and interdependencies of these concepts. These findings contribute to a better understanding of how small-business owners think and integrate corporate responsibility and ethical issues into their decisionmaking. (shrink)

Recent academic articles point to an increased vagueness and overlap in concepts related to business ethics and corporate responsibility. Further, the perception of these notions can differ in the small-business world from the original academic definitions. This article focuses on the cognition of small-business owner-managers. Given the impact of small-business owner–managers on their ventures, corporate responsibility and ethical issues can take a different route in SMEs. The small-business owner–manager is able to shape the corporate culture (...) and to enact values other than profit. Adopting a cognitive perspective, we have identified how the small-business owner–manager makes sense of notions linked to corporate social responsibility (CSR) and business ethics. The concept of sensemaking has recently been applied to CSR (Basu and Pallazzo, 2008; Cramer et al., 2006). Applying a cognitive perspective to small-business owners may help in explaining specific phenomena found within small-business ownership. For this research, the Repertory Grid Technique (RGT) is used, a method that has not previously been widely applied in the business and society field.Our findings to an extent invalidate the confusion in terminology found in the academic literature. Small-business owner–managers, pragmatically and rather clearly, differentiate among the various concepts related to corporate responsibility and business ethics but, at the same time, they recognise the interrelationships and interdependencies of these concepts. These findings contribute to a better understanding of how small-business owners think and integrate corporate responsibility and ethical issues into their decision-making. (shrink)

As the world moves into the 21st century, business managers face new and daunting challenges to their legitimacy. Those who run the world’s 72,0000 multinational firms and their 828,000 subsidiaries face special difficulties.1 These firms constitute a global economy that has produced much that is useful, including wondrous technologies and great wealth for many. Nevertheless, one in five of the world’s six billion people lives in extreme poverty, surviving on less than $1 a day. Half the world lives on (...) less than $2. In spite of roughly $1 trillion that has been spent to fight poverty around the globe in the last 50 years and vastly increased trade and investment, most people in Latin America, the Middle East and Central Asia are poorer today than they were ten years ago, and most Africans were better off 40 years ago.2 Environmental degradation increases, as do disease and violations of human rights. Unreasonable as it may be to blame business for the world’s ills, the blame sticks, because the ills — like multinationals — transcend national boundaries and are in many ways beyond the power of existing governments to affect. And global government has yet to evolve. Furthermore, the governments of many countries lack either the will or the ability to reduce poverty within their jurisdictions, meaning that if MNCs do not do it, it won’t be done.3 In addition to the undesirable costs of the globalisation they have helped to create, managers are concerned also with the greed, crime and scandal in their own ranks. So it is appropriate to help them inspect the assumptions that have been used to justify their power and authority, and to consider whether those assumptions need renovation. This I shall do in Part I of this essay. In Part II I shall seek a historical perspective, because in many ways the criticism of business and globalisation today echoes the debate in the 1930s about which economic system was best, communism, socialism or capitalism. Capitalism, we suppose, has won, but if so, what is it? Is it the same everywhere — in China, Japan, Europe, Mexico, the United States, and elsewhere? If not, is the very word not misleading? (shrink)

There is growing appreciation of the challenges posed by our current economic activity in terms of the natural environment. Increasingly, people have come to appreciate that business must not only be more aware of its environmental impact, but also must be more environmentally sustainable in its core operations. Academic theories of management influence managerial practice. They clarify what is important to the corporation, and where managers and employees should direct their attention. The focus of this paper is to (...) explore the extent to which three possible managerial mindsets—shareholder value maximization, stakeholder value maximization, and the triple bottom line—may either enhance or inhibit the ability of corporations to manage in an environmentally sustainable way. We discuss the implications of each of these mindsets and highlight their relative strengths and weaknesses, noting that all three hold promise, but each has limitations in enabling managers to operate sustainably. (shrink)

This essay comments on the past and the future of the Social Issues in Management (SIM) Division of the Academy of Management (AOM). The essay addresses the two major questions posed to the commentators on this special issue: First, does the past of the SIM Division provide any clues as to its future? Second, where is the SIM Division going or where should it be going? The author has been a member of SIM since 1971 and served as (...) program chair in 1975 and division chair in 1976 to 1977. SIM is certainly a field at the community and administrative levels, and you could argue that SIM is a discipline, though we are interdisciplinary. It is not as certain that we are unique or distinctive at the intellectual level because we are not always that different in kind or quality from what is being done elsewhere in AOM, and there are more and more scholars in other divisions now working on topics that we once worked on exclusively. However, it is equally unlikely that many of the other AOM divisions could meet a test of intellectual uniqueness. The essay emphasizes some ideas that might help improve the intellectual rigor of the SIM meetings, and the value of alliances with Society for Business Ethics (SBE) and International Association for Business and Society (IABS). A division name change, even if desirable, is not a compelling issue. (shrink)

The concept of sustainable development of the Brundtland Report and the related one of the Rio Declaration are interpreted differently by United Nations agencies, NGOs and business corporations. What should really be sustained includes quality of life; this requires sustainable natural systems and social systems. Living within our carbon budget is a prominent example. The management of resources on others’ behalf should share with ‘stewardship’ characteristics of care for what is intrinsically valuable, and responsibilities not only to owners (...) but also towards present and future people and other creatures. Reasons are considered for holding capitalist companies and capitalism itself to be unsustainable, such as its inbuilt imperative of growth. Sustainability cannot wait for a different system, as by then serious climate change will be irreversible. Carbon footprints need to be limited now. Practical measures include not blocking transitional steps, and finding innovative ways to reduce one’s company’s carbon footprint. (shrink)

This paper considers the UN efforts to introduce a legally binding Treaty on corporate accountability for human rights impacts in the context of other proposed legislation at country level, on the one hand, and existing voluntary initiatives like the UN Guiding Principles (2011), on the other. What we are interested in is whether the proposed Treaty signals a transition from voluntary initiatives (based on moral commitments) to law (that is, a focus on compliance), and the extent to which it might (...) stimulate or hinder links between judicial and non-judicial initiatives. The scholars who have explicitly addressed these two divides are – Michael Sandel, on theory v. practice; and Amartya Sen, on law v. morality. We engage with their views, in sections II and III respectively, seeking to build an integrated approach to help us overcome these dualisms. We further consider John Ruggie’s “principled pragmatism”, a strategy that he uses to build the Protect, Respect and Remedy (henceforth, PRR) Framework; and we invoke arguments from casuistry as well as a practice-focused deontology (Thomas Donaldson’s) in favour of an ethics ‘beyond cognition’, which we consider better suited than either utilitarian or principle-based theories to guide the debate on human rights. This is because it allows us to take non-rational factors into account (such as emotions and personal affiliations), when judging the kind of common good we consider worth pursuing. In the last section of the paper, we investigate whether and how might the Treaty illustrate the two divides, trying to (a) distinguish between purely legal elements and those of a wider nature, to do with morality; and (b) understand what might help bridge the gap between theoretical commitments to the universality of human rights and various practical challenges. Our aim is not to evaluate the Treaty, from a legal viewpoint, or suggest improvements to it (lawyers are better placed to do that); rather, we seek to investigate the way in which the proposed Treaty – which is the first attempt to address the challenge of transnational business and human rights in international law – combines moral and legal aspects, and what this tells us about the world we live in. (shrink)

This paper draws on MacIntyre’s ethical thought to illuminate a hitherto underexplored religious context for business ethics, that of the Amish. It draws on an empirical study of Amish settlements in Holmes County, Ohio, and aims to deepen our understanding of Amish business ethics by bringing it into contact with an ethical theory that has had a signifcant impact within business ethics, that of Alasdair MacIntyre. It also aims to extend MacIntyrean thought by drawing on his neglected (...) critique of modernity in the context of business ethics. The Amish context allows us to appreciate the relationship between MacIntyre’s critique of modernity, his conception of practices and communities, and his distinctive approach to the virtues. It also helps us to better understand how the ethical life is possible within our emotivist culture. (shrink)

This paper examines the controversial governance mechanism of classified boards. Classified board advocates believe that multiple year terms give directors a longer-term horizon. Shareholder activists push for declassifications of boards because they argue that agency problems are likely to arise. In a longitudinal study of six years of KLD, RiskMetrics and Compustat data, we test the influence of classified boards on social performance dimensions. We find that classified boards are negatively associated with social performance strengths in (...) the areas of community and diversity, indicating that they are not proactive in these areas. However, classified boards are negatively associated with social performance concerns on five out of six dimensions, providing evidence that while these boards are not proactive in stakeholder management, neither are they harmful nor neglectful towards stakeholders. The overall findings suggest that classified boards may be associated with a stakeholder management philosophy of “do no harm.”. (shrink)

This book presents a selection of articles with focus on the theoretical foundations of business ethics, and in particular on the philosophy of management and on human rights and business. This implies identifying and discussing conflicts as well as agreement with regard to the philosophical and other foundations of business and management. Despite the general interest in corporate social responsibility and business ethics, the contemporary discussion rarely touches upon the normative core and philosophical foundations (...) of business. There is a need to discuss the theoretical basis of business ethics and of business and human rights. Even though the actions and activities of business may be discussed from a moral perspective, not least in the media, the judgments and opinions relating to business and management often lack deeper moral reflection and consistency. Partly for this reason, business ethicists are constantly challenged to provide such moral and philosophical foundations for business ethics and for business and human rights, and to communicate them in an understandable manner. Such a challenge is also of scientific kind. Positions and opinions in the academic field need to be substantiated by thorough moral and theoretical reflection to underpin normative approaches. Far too often, business ethicists may agree on matters, which they approach from different and sometimes irreconcilable philosophical standpoints, resulting in superficial agreement but deeper-lying disagreement. In other cases, it may be of high relevance to identify philosophical standpoints that despite conflicting fundamentals may arrive at conclusions acceptable to everyone. (shrink)

Mainstream management scholarship has for the last half century largely legitimated its scholarship and production of knowledge on the grounds that its research is objective, neutral, scientific and uninfluenced either by its researchers or by data distorted by subjectivist human factors (Locke & Spender 2011). However, over the decades there have been serious and sustained criticisms of aspects of this scholarship not least from within the field by mainstream scholars, eg Otley (Accounting, Organizations and Society 5: 413-428, 1980, 1995, (...) 2007) and Panozzo (Accounting, Organizations and Society 22: 447-480, 1997) on grounds of the inadequacy of synchronic studies that were found to be non-replicable; of the limitations of surveys/questionnaires, so frequently used to acquire data; of abstract idealisations unrelated to the real world and on an ‘obsessive preoccupation with numbers’ (Locke & Spender 2011:xiii). Serious criticisms have been made of this type of scholarship more generally in the social sciences on the grounds of political bias (see eg Bourdieu 1990). Claims to the scientific nature and therefore legitimacy of this type of research have also been contested. On the other hand examples of alternate scholarship, advocating and using mixed method and multi-paradigmatic approaches, have been published in the same high-ranking journals as has research using the mainstream approaches mentioned above (see eg Chenhall & Euske 2007, Brown & Brignall 2007). These showed a richness in the data, generally unobtainable in solely objectivist approaches. Yet despite these factors, mainstream scholarship has in the main continued to produce objectivist, empiricist, quantitative-focussed research and knowledge (Green 2013). Reasons for this have been suggested, at the local level, the academy, including its administration, heads of department and journal editors driven by the criteria set by high-ranking journals (Green 2012b). At a wider level, the US government’s fright at the successful launch of the Soviet Sputnik led to demands for ‘hard’ science also in the management field (Green 2012b). Managerialism, a dominant ideology (and not only in the West), has been an influence on researchers’ approaches, giving managers the prerogative of having the necessary knowledge and also the power and capability successfully to implement strategies independently of their subordinates (Green 2012b, 2013). Although these explanations may have some mileage in explaining the persistence of this type of scholarship, and its resistance to the multitude of criticism against it and to compelling examples of more inclusive research, further explanations have been sought. It is argued in this paper that deeper explanations may lie in the power of neoliberal ideas, principles and policies which have spread beyond economics, permeating and seriously affecting other aspects of life including education and scholarship. (shrink)

Trying to introduce post-graduate management students to the world of philosophy is indeed no easy task. Not only is there a shortage of formal schooling in philosophy amongst business school or business management departmental academic staff, but there is resistance from many sides. Fellow academics question the necessity of such ‘wishy-washy’ issues for business and management students and institutional challenges make it difficult to create a syllabus that falls within the expertise area of another (...) academic department. This paper tracks the development of a postgraduate module introducing students to philosophy and philosophical thinking, but this is not done under the auspices of a Philosophy department. Rather, it is the initiative of a Business Management department. The paper tracks the whole journey of how the module History and Philosophy of Management came to being under the auspices of the Department of Business Management at UJ and presents an argument for an increased focus on and sensitivity toward philosophy and the bearing it has on management research and practice. (shrink)

In Australia as is the case elsewhere, ethics is a developing aspect of business behaviour. Many educational institutions and business enterprises have a strong interest in the subject, particularly from the practical viewpoint of creating an ethical culture in business that has substantial practical effects. In this paper, the codes of ethics of five large enterprises are examined. They were selected as being typical of a collection of corporate codes used in Australia held by the Ethics (...) Research Group at the University of Technology, Sydney. Two codes were from international companies: a chemical manufacturing company and a health, beauty and medical manufacturer. The other codes were from an Australian bank, an Australian federal government business agency, and an Australian mining company.Corporate codes of ethics rarely contain operational definitions to direct their addressees on situations of moral hazard and the required response, to achieve a particular desired ethical corporate culture. Consequently, addressees constitute the locus of ethical decision making in enterprises. By contrast, the language used in the corporate codes examined construct an authoritarian position in the writer/reader relationship from the overuse of grammatical structures such as relational clauses, the passive, nominalisation, grammatical metaphor and modality. Collectively, these structures communicate a strong sense of obligation and even powerlessness since a strong authoritarian tone is established which does not give the addressees the possibility of discretionary decision making. (shrink)

In this paper, the approaches of a sample of small firms to environmental issues in the UK and the Netherlands are compared.The study makes a contribution by addressing the lack of research on small firms and the environment, as well as offering insights intothe influence that cultural. institutional, and political frameworks can have on small firm owner-managers' attitudes to external issues. The environment is considered here as an ethical issue, drawing on work on the environmental responsibility of business by (...) both Bowie (1990) and Hoffman (1991). It is argued that the approaches to the environment identified in this study by Dutch and UK small firm owner-managers do not fit in with the positions of either Bowie or Hoffman. The concept of stakeholder cooperation is proposed as a more realistic alternative. (shrink)

The article is guided by two main research questions: First, do the Equator Principles (EPs), a voluntary CSR-initiative in the project finance sector, and the recently published working paper of the Thun Group of Banks adequately address the U.N. Guiding Principles on Business and Human Rights or do they fall behind the ‘Ruggie framework’? Second, is the demand for human rights due diligence sufficient to classify the EPs as a positive and leverage-based concept of CSR (à la Wettstein and (...) Wood) or is this requirement still a feature of a negative and impact-based concept of CSR? In case it is a negative and impact-based concept of CSR, the question comes up which further steps should be taken by financial institutions to fulfill their positive and leverage-based responsibilities. The article argues that positive and leverage-based responsibilities for multinational companies exist – due to the moral nature of human rights and due to the political authority of multinational companies – and that the current (Ruggie-like) requirements for human rights due diligence are not adequate for a positive and leverage-based concept of CSR. Further measures should be taken by multinational companies – and especially (Equator) banks which possess a high leverage-influence over their clients – to not only ensure the respect for human rights, but also the on-the-ground protection and realization of human rights. (shrink)

If a manager is evangelical, does it color the style he uses in his relationship with his subordinates? The paper sketches briefly the two familiar, historical ethical positions... the Protestant ethic and humanism and relates them to two styles of management. Then it points up the recent healthy growth of the evangelical movement, and the basic beliefs of evangelicals; then relates elements of these beliefs to the manager. A comparison of the three management ethics (Protestant, humanist, and evangelical) (...) suggests some differences in the characteristics of managers who follow each ethic. There is increased evidence of the effect of the evangelical ethic in political, medical, and judicial life. Is it not logical to assume it is also affecting business and management? (shrink)

Corruption in business is as old as business itself. Corruption exists to some extent in all cultures, under all market systems and in all countries. The objectives of this paper are not to stand in judgement or to consider moral issues. This article considers the findings of a study concerning managerial attitudes towards corruption in business. The methodology involves a number of scenarios which could be construed as being deviant or dishonest. These are presented to respondents. Respondents (...) are then asked questions regarding each situation. The findings were interesting. While the sample in general condemned corruption and corruptive practices, the perceived participation by the peer group was higher than one would have expected. The findings of a more comprehensive study of a similar nature should be meaningful to corporate policy in this regard, not only in respect of corruption, but also when decisions have to be made regarding the receipt of gifts. (shrink)

The goal of this article is to present the possibility of using Diagnosis- Related Groups (DRG) in the hospital management process and to analyse the need for business performance management on the part of hospital management staff. The following research methods were used: literature analysis, case studies, and poll analysis. It is not possible to increase the effectiveness of operation of healthcare entities without increasing the importance of IT systems and using DRG more effectively in the (...) management process. Training users in IT and the use of DRGs is important to achieving hospital effectiveness. The increased importance of analyses and planning in a hospital should be reflected in the organisational structure of service providers. Hospital controllers should have a similar role to those present in most companies in other industries. (shrink)

In practice, the relationship between business and ethics is not well-settled. In the past, organisations have developed an interest in setting value charts but this has been approached from a purely managerial perspective following the momentum and interest aroused by research on organisational cultures. Although interest in managing organisational cultures has slowly died down, for both theoretical and practical reasons we argue that there are feasible ways to explore values as part of an organisational culture. Indeed it is our (...) claim that it is feasible and productive to discuss values within organisations. However, rather than developing sophisticated theoretical frameworks, more efforts should be put into thinking about the conditions under which participants can enter into productive dialogue. It is our claim that if processes are carefully examined people within organisations can make better sense of their work and discover their own perspective to account for what they actually do and to project themselves into what they think they should be doing. Thus, values identified within the organisation can eventually reach a point where they become an expression of a shared commitment. The experience we describe aims to illustrate only one example of a concrete application of this approach. (shrink)

Recognition is a fundamental good that corporations ought to give to employees, a good that is essential to their well-being, and thus, recognition should be among the central notions in our understanding of organizations and in any theory of business ethics. Drawing upon the work of Philip Pettit and Robert Brandom as well as themes from instrumental stakeholder theory, I develop a complex notion of recognition involving both status recognition and capacity recognition and argue that this account meets three (...) fundamental desiderata of any adequate account of business ethics: It makes salient key normative features of the practice of business. It articulates a genuine ethical demand that is not reducible to the economic imperatives typical of self-interested actors. And it is compatible with the strategic demands that organizations face to remain competitive. Status recognition involves treating others as persons whose rights are legally enshrined. Capacity recognition involves treating others as persons possessing specific capacities. When corporations accord these forms of recognition to employees, they promote their well-being in a fundamental way and they promote the long-term success of the firm. Thus, recognition represents an underappreciated concept that may further contribute to theory development in business ethics and organization studies and more ethical business practice. (shrink)

One of the most difficult supply network challenges facing companies today is how to diffuse sustainability not only among their direct (first-tier) suppliers but also throughout their supply networks. Although a growing body of research has been dedicated to addressing this challenge, the role of purchasing and supply management (PSM) in sustainable supply network development remains underexplored. In this paper, we present a systematic review of the literature on the role of PSM in the diffusion of sustainability in supply (...) networks. We analysed 133 peer-reviewed papers published in 21 journals in the field of PSM. We scrutinized the theories, methods and levels of analysis used in sustainable PSM research, classified the practices for diffusing sustainability in supply networks and identified the role of PSM in the diffusion of sustainability. Accordingly, we put forward a set of propositions that link diffusion practices—and the role of PSM in these practices—with embedded and peripheral sustainability and suggest future research directions. (shrink)

This article responds to a call from Philosophy of Management (Vandekerckhove 2020) to open a discussion on the contribution of Albert Camus’s work to management. The aim of this article is to argue that Camus’s sense of cyclicality related to the recurrence of crises is particularly important for existential management. This idea is embodied primarily by Camus’s famous retelling of the myth of Sisyphus, which is not only a provocative metaphor of his thoughts, as discussed by many (...) authors, but is also an inspiring expression of the idea of ​​revolt, which is further developed in Camus’s later work. The article focuses on recent updates to Camus’s Sisyphean revolt in existentially oriented approaches to management. These are mainly the concepts of the existential manager, an analysis of managerial lived experience within existential hermeneutic phenomenology, and the perspective of an absurd organization. Camus’s motif of cyclicality represents a stimulating framework for analysing lived managerial experience, which is characterized by alternating phases of success and failure. The article also draws attention to other important motives in Camus’s work, such as avoiding extremes and idealistic constructs, and expressing the value of human life as a basis for ethical behaviour. All the mentioned motives are closely related to the concept of revolt. This article also provides several explanatory comments on the editorial, which help to take a closer look at Camus’s style of thinking and avoid possible misinterpretations. In this respect, the distinction between Camus’s approach and forms of existentialism is particularly important. (shrink)

Nurses’ experiences in, and the overall effectiveness of, widely used alternative‐to‐discipline programs to manage nurses’ substance‐use problems have not been adequately scrutinized. We uncovered the conflicted official and experiential ways of knowing one such alternative‐to‐discipline program in a Canadian province. We explicated this conflict through an institutional ethnography analysis. Ethnographic data from interviews with 12 nurses who were enrolled in an alternative‐to‐discipline treatment program and three program administrators, as well as institutional texts, were analyzed to explore how institutional practices and (...) power relations co‐ordinated and managed nurses’ experiences. Analysis revealed the acritical acceptance of a standardized program not based on current norms of practice. Potential and actual conflicts of interest, power imbalances, and prevailing corporate interests were rife. Nurses were not afforded the same rights to quality ethical health care as other citizens. ‘Expert’ physicians’ knowledge was privileged while nurses’ knowledge was subordinated. Conclusions were that regulatory bodies cannot rely on the taken‐for‐granted standardized treatment model in widespread use. Individualized treatment alternatives reflecting current, scientific evidence must be offered to nurses, and nurses’ knowledge, expertise, and experiences need to be included in decision‐making processes in these programs. (shrink)

This essay proposes that management is too often seen as problem solving, and that the equally important art of ignoring problems has not received enough attention. With reference to the thinking of Ludwig Wittgenstein, the essay argues for letting go, and attempting to leave thoughts at rest.

To what degree has biology influenced and shaped the development of moral systems? One way to determine the extent to which human moral systems might be the product of natural selection is to explore behaviour in other species that is analogous and perhaps homologous to our own. Many non-human primates, for example, have similar methods to humans for resolving, managing, and preventing conflicts of interests within their groups. Such methods, which include reciprocity and food sharing, reconciliation, consolation, conflict intervention, and (...) mediation, are the very building blocks of moral systems in that they are based on and facilitate cohesion among individuals and reflect a concerted effort by community members to find shared solutions to social conflict. Furthermore, these methods of resource distribution and conflict resolution often require or make use of capacities for empathy, sympathy, and sometimes even community concern. Non-human primates in societies in which such mechanisms are present may not be exactly moral beings, but they do show signs of a sense of social regularity that—just like the norms and rules underlying human moral conduct—promotes a mutually satisfactory modus vivendi. (shrink)

Many have preached the need for business schools to "teach" ethics, but very few have considered that business schools should also adopt and implement their own codes. The authors' previous research indicates that there is a perceived need for a code of ethics for business schools. Currently, relatively few schools have in fact adopted codes of ethics applicable to all the constituents of the institution. Proposals made to businesses to help them determine which values should be included (...) in a corporate code do not appear to adequately address the distinctive issues faced in an academic environment. In an earlier survey, the authors identified general principles of conduct that seemed to encompass the values expressed by the respondents. Relying on research that has indicated that ideally a code of ethics should be inspirational and value oriented rather than prescriptive and proscriptive, the authors herein propose ten values and correlating definitions that would provide a framework for a business school code of ethics. (shrink)

We examine how corporate social responsibility (CSR) perceptions (association and participation) affect manager creativity at the workplace and its mediating link through organisational identification. We collected data from the National Forum of Environment and Health (NFEH) 2019 that awarded 52 companies in Pakistan. NFEH is a purely non-profit, non-governmental, and voluntary organisation registered under the Voluntary Social Welfare Agencies Ordinance 1961. We employed convenience sampling to collect data from managers of 52 CSR performing organisations in Pakistan. We analyse the data (...) with structural equation modelling (SEM) via R. Findings reveal that CSR association does not affect creativity. In contrast, CSR participation has a significant positive effect on manager creative performance. Furthermore, the decomposition analysis indicated that only in the case of CSR participation, OI has a mediating effect. (shrink)

Ubuntu, or humanness, has been theorized as a uniquely African contribution to the world. At the same time, others insist that it is a universal ethical principle. This paper particularly wants to look at a sub-theme of ubuntu studies, regarding how some of the authors and researchers have wanted to apply it to business, even suggesting that ubuntu can provide a model for ethical management principles that can also result in better outcomes for businesses. To approach business (...) with an ethical emphasis is clearly better than casting ethics aside in pursuit of profit without concern for human flourishing. But, can ubuntu management principles be used in a global capitalist framework, to soften the hard edges of cutthroat capitalism? Or does the ubuntu management approach without capitalist critique fall short of reaching the goal and practice of humanness? Additionally, perhaps the fault of current practices is not only due to the capitalist global economy, but also, an historical and a current global anti-black racism as well as sexism, which continues to skew the numbers of managers to greatly over-represent white males. This is due to historical privileging of men and the white race. We need to put forth our best efforts to ensure fair treatment of workers, who are valued as persons, and paid a good wage, with profits to go to them so that they can nourish and support their extended families. An ubuntu ethic could indeed be helpful as a guide for deciding which kinds of changes to the larger economic and political structures we should advocate and fight for (Publisher's website includes free full text). (shrink)

This paper sets out and examines the presuppositions and presumptions of management educators. It is based on an empirical study of 25 management educators from three UK Business Schools who are responsible for management education and development. The aim of the study is not to generalise the findings but to adopt an interpretive methodology to identify and question the hidden and unexamined presuppositions and presumptions of management educators that underlie management programme development and design. (...) The author finds the presuppositions and presumptions problematic, inaccurate and uncritical, and they are responsible for producing and re-producing the practices of management for contemporary organisations and wider society. The author articulates these concerns in a philosophical manner in order to raise questions and challenge the embedded fads and wisdom. This paper concludes by inviting management educators to rethink management education and development and examine their own presuppositions and presumptions underpinning programme development and design. (shrink)

This paper develops and explores a pedagogical innovation for integrating virtue theory into business students' basicunderstanding of general management. Eighty-seven students, in 20 groups, classified three managers' real-time videotaped activitiesaccording to an elaboration of Aristotle's cardinal virtues, Fayol's management functions, and Mintzberg's managerial roles. The study's empirical evidence suggests that, akin to Fayol's functions and Mintzberg's roles, Aristotle's virtues are also amenable to operationalization, reliable observation, and meaningful description of managerial behavior. The study provides an oft-called-for (...) empirical basis for further work in virtue theory as an appropriate conceptual framework for the study and practice of management. The results indicate that virtue theory may be used to re-conceive our fundamental understanding of management, alongside its capacity to weigh moral judgment upon it. implications and suggestions for future research are discussed. (shrink)

Growing concern about economic inequality has generated a polarized narrative regarding the causes and consequences of extreme wealth. We contend that divided ideological positions obscure a more mundane reality about the typical wealthiest 1% households. Using data from the triennial survey of consumer finance, we demonstrate that there is substantial heterogeneity within the 1%. Contrary to public discourse, the typical 1% household does not have wealth reflective of popular rich lists, but derives a significant share of its wealth from ownership (...) and active management of small- to medium-sized private enterprise. We use these findings to shed new insights on business families’ relationship to economic inequality and open promising new areas of inquiry regarding the role of the family business in society. (shrink)

ABSTRACT:In a world filled with poverty, environmental degradation, and moral injustice, social enterprises offer a ray of hope. These organizations seek to achieve social missions through business ventures. Yet social missions and business ventures are associated with divergent goals, values, norms, and identities. Attending to them simultaneously creates tensions, competing demands, and ethical dilemmas. Effectively understanding social enterprises therefore depends on insight into the nature and management of these tensions. While existing research recognizes tensions between social missions (...) and business ventures, we lack any systematic analysis. Our paper addresses this issue. We first categorize the types of tensions that arise between social missions and business ventures, emphasizing their prevalence and variety. We then explore how four different organizational theories offer insight into these tensions, and we develop an agenda for future research. We end by arguing that a focus on social-business tensions not only expands insight into social enterprises, but also provides an opportunity for research on social enterprises to inform traditional organizational theories. Taken together, our analysis of tensions in social enterprises integrates and seeks to energize research on this expanding phenomenon. (shrink)

ABSTRACT:In a world filled with poverty, environmental degradation, and moral injustice, social enterprises offer a ray of hope. These organizations seek to achieve social missions through business ventures. Yet social missions and business ventures are associated with divergent goals, values, norms, and identities. Attending to them simultaneously creates tensions, competing demands, and ethical dilemmas. Effectively understanding social enterprises therefore depends on insight into the nature and management of these tensions. While existing research recognizes tensions between social missions (...) and business ventures, we lack any systematic analysis. Our paper addresses this issue. We first categorize the types of tensions that arise between social missions and business ventures, emphasizing their prevalence and variety. We then explore how four different organizational theories offer insight into these tensions, and we develop an agenda for future research. We end by arguing that a focus on social-business tensions not only expands insight into social enterprises, but also provides an opportunity for research on social enterprises to inform traditional organizational theories. Taken together, our analysis of tensions in social enterprises integrates and seeks to energize research on this expanding phenomenon. (shrink)

We examine managers’ earnings forecasts for evidence of incentive alignment or subversion characteristics. We find that forecasts by managers compensated via relative performance (RP) goals are more likely to be pessimistic and less accurate than those by managers compensated via absolute performance (AP) goals. For firms not issuing earnings forecasts, disclosures in Form 10-Ks are more pessimistic for RP firms than for AP firms. Furthermore, we find that RP firms perform worse than AP firms in terms of future stock returns. (...) Overall, our evidence is consistent with a proposition that, contrary to sound ethical business practices, RP managers make self-serving earnings disclosures to subvert the efforts of their peers to meet performance targets more easily. (shrink)

This financial, economic, and organizational behavior literatures have been reviewed in order to evaluate three competing theories regarding ownership and management of the firm: 1) firms are not affected in terms of performance and policy by control status; 2) owner-controlled firms attempt to provide larger dividend payouts; and 3) owner-controlled firms tend to have smaller dividend payouts. No generalizations regarding either the superiority or the equality of employee-owned firms to professionally-managed firms can be drawn.

It will be argued that, by reading Marx’s theory of value not as an explanation of capitalist development but as anthropology of capitalism’s moral implications, certain ethical contradictions of HRM can be identified. The main areas of conflict are seen in HRM’s pretence to equitable exchange relations in the workplace, its propensity to replace material with symbolical recognition through corporate culture and ideology, and in its tendency to lay claim not only on the employee’s labour power but on his or (...) her whole personality. (shrink)

In the following, I concentrate on the nefarious, harmful and unethical dimensions emerging only slowly as the rather new phenomenon of cryptocurrencies and blockchain at large become visible only gradually. For the positive and pro-social use of cryptocurrencies please refer to the article of Claus Dierksmeier in this issue of HMJ. As there are many different dimensions still unknown, I concentrate on the ethical issues emerging from the secretive nature of cryptocurrencies, less on the environmental carbon footprint or economic implications (...) of volatility also discussed in the literature. Among the most critical issues are black market transactions of weapons used in terrorist attacks, drugs, or childpornography. Additionally, cryptocurrencies are more and more found in blackmailing people and as payment for ransom-ware and other computer viruses. Money laundering also is on the rise via cryptocurrencies. I argue that the nefarious use of cryptocurrencies threatens the prosocial potential of cryptocurrencies and in general makes criminal activity easier for criminals and less likely to track down by legal authorities. In closing, I discuss current debates about emerging regulation presenting an overview of some jurisdictions and the option of regulated central bank issues cryptocurrencies. (shrink)

A genuine commitment to ethics and compliance (E&C) programs means that top management adopt them for what they represent and not for other purposes. Only then can they truly build socially responsible behavior and a successful and sustainable business, as stated in the latest international standard for compliance management practice (ISO 37301:2021), which we found to be consistent with a new business narrative as conceptualized in Freeman's work. However, it also requires that top managers place a (...) moral value on these practices, rather than simply using them for instrumental reasons. Building on Kohlberg's six stages of moral development as applied to managers' moral thinking, this manuscript offers a model to explain how top managers' moral valuing of these practices varies along a moral reasoning continuum, resulting in four distinct modes. It also theorizes that each mode of moral valuing yields an archetype of E&C programs. It thus offers a new approach that contributes to the business ethics and management literature by incorporating a morally grounded perspective on the adoption and implementation of E&C practices and how it might shape their features and characteristics. It also aims to improve professional practice and business contributions to Freeman's ideas through genuine ethics‐based E&C programs. (shrink)

Recently, Amartya Sen and Martha Nussbaum have developed the capabilities approach to provide a model for understanding the effectiveness of programs to help the developing nations. The approach holds that human beings are fundamentally free and have a sense of human dignity. Therefore, institutions need to help people enhance this dignity by providing them with the opportunity to develop their capabilities freely. I argue that this approach may help support business ethics based on virtue. Since teleology has become problematic, (...) virtue ethics has had difficulty giving itself an ultimate justification. By combining virtue ethics with the capabilities approach, it becomes possible to ground virtue ethics on the basis of the existence of human dignity. This frees virtue ethics of the need for a strict teleology, replacing it with the notion that people must work to develop the capabilities of others although those capabilities are not pointed toward a definite goal. I further suggest that by grounding virtue ethics in capabilities, the actions of a virtuous manager become clearer. Rather than simply charging a manager with serving the public, the manager is charged with serving the stakeholders in a way that develops their capabilities. For example, a manager should not just give their employees what is just but must give them the environment and the encouragement to grow and to find fulfillment in their job. (shrink)

As corporations are going global, they are increasingly confronted with human rights challenges. As such, new ways to deal with human rights challenges in corporate operations must be developed as traditional governance mechanisms are not always able to tackle them. This article presents five different views on innovative solutions for the relationships between business and human rights that all build on empowerment, dialogue and constructive engagement. The different approaches highlight an emerging trend toward a more active role for corporations (...) in the protection of human rights. The first examines the need for enhanced dialogue between corporations and their stakeholders. The next three each examine a different facet of empowerment, a critical factor for the respect and protection of human rights: empowerment of the poor, of communities, and of consumers. The final one presents a case study of constructive corporate engagement in Myanmar (Burma). Altogether, these research projects provide insight into the complex relationships between corporate operations and human rights, by highlighting the importance of stakeholder dialogue and empowerment. All the five projects were presented during the Second Swiss Master Class in Corporate Social Responsibility, held in Lausanne, Switzerland on December 12, 2008. The audience for this conference, which examined business and human rights, was composed of researchers, governmental representatives, and business and non-governmental organization practitioners. (shrink)

Quite frequently, business periodicals feature articles on the importance of building and maintaining a "network" of businessfriends. Typically, these articles offer practical suggestions for "networking." This article is a philosophical investigation of businessfriends, and business friendships. Relying upon Aristotle's classic analysis, I argue that business friendships are instances of"incomplete friendships for utility." Viewed in this way, much is revealed about what business friendships are; even more is revealedabout what business friendships are not. It is perfectly (...) natural to say that business friends use one another; this raises the issue of whether business friendships violate the Kantian "categorical imperative." I argue that they need not, and that-so long as they are truly"friendships"-they do not. What this discussion makes clear, however, is that business friendships are in continuous peril of eroding intorelationships that cannot survive moral scrutiny. I conclude with a few practical suggestions-and philosophical cautions. (shrink)

As corporations are going global, they are increasingly confronted with human rights challenges. As such, new ways to deal with human rights challenges in corporate operations must be developed as traditional governance mechanisms are not always able to tackle them. This article presents five different views on innovative solutions for the relationships between business and human rights that all build on empowerment, dialogue and constructive engagement. The different approaches highlight an emerging trend toward a more active role for corporations (...) in the protection of human rights. The first examines the need for enhanced dialogue between corporations and their stakeholders. The next three each examine a different facet of empowerment, a critical factor for the respect and protection of human rights: empowerment of the poor, of communities, and of consumers. The final one presents a case study of constructive corporate engagement in Myanmar (Burma). Altogether, these research projects provide insight into the complex relationships between corporate operations and human rights, by highlighting the importance of stakeholder dialogue and empowerment. All the five projects were presented during the Second Swiss Master Class in Corporate Social Responsibility, held in Lausanne, Switzerland on December 12, 2008. The audience for this conference, which examined business and human rights, was composed of researchers, governmental representatives, and business and non-governmental organization practitioners. (shrink)

This study focuses on the differences in the perception of business ethics across two groups of management students from France and Romania (n = 220). Data was collected via the ATBEQ to measure preferences for three business philosophies: Machiavellianism, Social Darwinism, and Moral Objectivism. The results show that Romanian students present more favorable attitudes toward Machiavellianism than French students; whereas, French students valued Social Darwinism and Moral Objectivism more highly. For Machiavellianism and Moral Objectivism the results are (...) consistent with the literature and our hypotheses. However, contrary to our expectations, we find that Social Darwinism is more important in France than Romania. The results indicate that religious practice does not influence preferences for the three business philosophies. In terms of gender differences, women have less favorable attitudes toward Machiavellianism and more favorable attitudes toward Moral Objectivism than men. (shrink)

A critical comparative analysis of howfarmers and scientists classify and manage soilsreveals fundamental differences as well assimilarities. In the past, the study of local soilknowledge has been predominantly targeted atdocumenting how farmers classified their soils incontrast to understanding how such classificatoryknowledge was made use of in actually managing soilsfor sustaining production. Often, classificatorydesigns – being cognitive and linguistic in nature –do not reflect the day-to-day actions in farming.Instead of merely describing local soil classificationin relation to scientific criteria, understanding howdifferent (...) types of ethnolinguistic soil categories arerelated to crops, climate, subsistence needs,fertility, market demand, and cultural norms of thesociety would be far more effective in focusingresearch and development efforts. (shrink)