The purpose of the present study is the investigation of distributed leadership agency. DLA is an activity-based concept, which is defined as employees’ active participation in leadership tasks. By combining a descriptive and a normative approach DLA has the potential of real employee empowerment. It can protect from arbitrary managerial power and lead to employees’ personal development through sharing organizational resources, influencing leadership activities and joint decision making in companies. The study examines individually perceived autonomy as an antecedent and employees’ (...) occupational self-efficacy as an outcome of DLA over time. Furthermore, the study tests the mediating role of DLA on the autonomy – self-efficacy relationship. The two-wave study applied an online survey in a Danish municipality with a time lag of seven months. We used regression analyses for testing the cross-sectional as well as cross-lagged relationships and an autoregressive model for analyzing the half-longitudinal mediation. The results revealed a significant positive effect of DLA on employees’ occupational self-efficacy cross-sectionally at Time 1 and Time 2, as well as cross-lagged. The cross-sectional and cross-lagged findings also support a significant positive impact of autonomy on DLA. However, DLA only mediated the autonomy–self-efficacy relationship cross-sectionally, but not over time. Computed alternative causal models corroborate the proposed direction of our hypothesized relationships. These results provide first evidence that structural features such as autonomy are timely prior to action-related behavior, and that participating in leadership tasks enhances employees’ occupational self-efficacy. (shrink)

ABSTRACT:A key factor in the decision to convert a publicly owned company to private status is the expectation that value will be created, providing the firm with rent. These rents have implications regarding the property rights of the firm’s capital-contributing constituencies. We identify and analyze the types of rent associated with the newly private firm. Compared to public firms, going private allows owners the potential to partition part of the residual risk to bond holders and employees, rendering them to be (...) co-residual risk bearers with owners. We propose that new promotion-based contracts with bond holders and employees, reflecting their particular investments, be negotiated as the firm migrates from public to private status. These contracts should acknowledge the firm’s intent to maximize shareholder value and its need to take the risks necessary to do so, but support that the firm’s survival not be undermined due to its possibly opportunistic owners. (shrink)

ABSTRACT:After a brief historical introduction, three interpretations of dignity in relation to management theory and business ethics are elaborated: Dignity as a general category, Human Dignity as Inherent and Universal, and Human Dignity as Earned and Contingent. Next, two literature reviews are presented under the headings of “Dignity and Business Research” and “Dignity and Business Ethics Research.” The latter discussion identifies three subcategories of business ethics research involving human dignity: the role of dignity as a cornerstone for paradigmatic shifts, the (...) role of dignity as the ‘ultima ratio’ for the protection of human rights, and the role of dignity in organizing business practices. The article concludes with summaries of the three articles chosen for this special section. (shrink)

There is a long-standing and growing interest in democratizing labor unions. Union democracy is important for many reasons, including fostering greater member voice in the workplace and society, improving the internal effectiveness of unions, building members’ capacities to engage in democracy in other contexts, and helping foster union renewal. Despite these benefits, democracy in unions as practiced today is characterized by several problems. In this paper, I analyze several of the remedies to increase union democracy proposed to date by scholars (...) and practitioners, finding that despite their potential positive impacts, many of them may have inherent limitations. I then argue that sortition—the use of lotteries in selecting leaders—shows potential in helping address many of the problems facing union democracy and overcoming the limitations of recent remedies. An important democratic tool in Ancient Athens and other city-states, sortition has a long history in political theory and practice, yet application to unions is in its infancy. I conclude by developing and evaluating several ways in which sortition could be used as a tool in union governance structures, and by discussing the implications of my theorizing for ongoing work on union democracy and union renewal. (shrink)

Many arguments have been advanced in favor of employee participation in firm decision-making. Two of the most influential are the "interest protection argument" and the "autonomy argument." I argue that the case for granting participation rights to some other stakeholders, such as suppliers and community members, is at least as strong, according to the reasons given in these arguments, as the case for granting them to certain employees. I then consider how proponents of these arguments might modify their arguments, or (...) views, in response to this conclusion. (shrink)

The United States is distinctive among advanced economies in that its employment laws and practices are governed byEmployment at Will (EAW). Most other nations have variations on Just Cause dismissal rules. I argue that the U.S. preference for EAW is unsupported by concerns about net social or economic consequences. More centrally, I argue that the basic moral commitments that underlie the U.S. system of private property and freedom of contract are commitments that lend support to Just Cause over EAW.

Despite the general expectation that ethical leadership fosters employees’ ethical behaviors, surprisingly little empirical effort has been made to verify this expected effect of ethical leadership. To address this research gap, we examine the role of ethical leadership in relation to a direct ethical outcome of employees: moral voice. Focusing on how and when ethical leadership motivates employees to speak up about ethical issues, we propose that moral efficacy serves as a psychological mechanism underlying the relationship, and that leader–follower value (...) congruence serves as a boundary condition for the effect of ethical leadership on moral efficacy. We tested the proposed relationships with matched reports from 154 Korean white-collar employees and their immediate supervisors, collected at two different points in time. The results revealed that ethical leadership was positively related to moral voice, and moral efficacy mediated the relationship. Importantly, as the relationship between ethical leadership and moral efficacy depended on leader–follower value congruence, the mediated relationship was effective only under high leader–follower value congruence. Theoretical and practical implications are discussed. (shrink)

In this paper, I specifically consider the issue of corporate governance and normative stakeholder theory. In doing so, I arguethat stakeholder theory and responsibilities to non-shareholder constituencies can be made more intelligible by reference to Kant’sconception of perfect and imperfect duties. I draw upon Onora O’Neill’s (1996) work, Towards Justice and Virtue: A Constructivist Account of Practical Reasoning. In her text O’Neill underlines a number of relevant issues including: the integration of particularist and universalist accounts of morality; the priority of (...) obligations over rights; the importance of the distinction between imperfect and perfect duties; and the relation between the virtues and imperfect duties. On the basis of the foregoing analysis, the paper argues that business ethicists should avoid recommending the institutionalising of stakeholder responsibilities in terms of legally defined sets of stakeholder rights. Instead, we should regard stakeholder responsibilities as uniformalised imperfect duties. Conceiving responsibilities to all stakeholder groups in this manner, allows the firm the freedom to perfect these duties in ways appropriate to cultural and societal setting, and in accordance with the capacity to do so. (shrink)

ABSTRACT:In this article we investigate a philosophical problem for normative business ethics theory suggested by a phenomenon that contemporary psychologists call “bounded ethicality,” which can be identified with the putative fact that well-intentioned people, constrained by psychological limitations, make ethical choices inconsistent with their own ethical beliefs and commitments. When one combines the idea that bounded ethicality is pervasive with the idea that a person morally ought to do something only if she can, it raises a doubt about the practical (...) relevance of the moral principles that business ethics theory prescribes. We call this doubt the Radical Behavioral Challenge. It consists in the idea that people cannot generally conform to the normative ethical principles that business ethics theorists prescribe, and that these principles are therefore practically irrelevant. We answer the Radical Behavioral Challenge and explore normative implications of our answer. (shrink)

One of the essential ethical issues in the employment relationship is the loss of employee voice. Many of the ways employees have previously exercised voice in the employment relationship have been rendered less effective by (1) the changing nature of work, (2) employer preferences for flexibility that often work to the disadvantage of employees, and (3) changes in public policy and institutional systems that have failed to protect workers. We will begin with a discussion of how work has changed in (...) the last 20 years in countries like Australia and the United States, and then take up the issue of employees as organizational stakeholders and the ethical duties that are owed them, with special attention given to issues of power. We will then consider whether voluntary action by employers such as social auditing is sufficient to ensure equity for employees, and conclude with a discussion of how changes in public policy might ensure greater fairness in the employment relationship by bringing employers and employees together in partnership. (shrink)

Abstract:Boundaryless careers may be beneficial to people with rare and valuable skills, but might prove harmful to many others. The idea ofemployabilityas an ethical responsibility of employers to employees is introduced; it is argued that attention to employability in private practice and public policy partially resolves the ethical problems inherent to in boundaryless careers. Because employability programs are considered to be voluntary, some means of holding employers accountable for such responsibilities needs to be considered when discussing boundaryless careers. Implications for (...) practice and public policy are also discussed. (shrink)

According to Palazzo and Scherer, the changing role of business corporations in society requires that we take new measures to integrate these organizations into society-wide processes of democratic governance. We argue that their model of integration has a fundamental problem. Instead of treating business corporations as agents that must be held accountable to the democratic reasoning of affected parties, it treats corporations as agents who can hold others accountable. In our terminology, it treats business corporations as “supervising authorities” rather than (...) “functionaries.” The result is that Palazzo and Scherer’s model does not actually address the democratic deficit that it is meant to solve. In order to fix the problem, we advocate removing business corporations from any policymaking role in political CSR and limiting participation to political NGOs and other groups that meet the standards we set out for a politically representative organization (PRO). (shrink)

ABSTRACT:The notion of “democracy” has become a much-debated concept in scholarship on business ethics, management, and organization studies. The strategy of this paper is to distinguish between a principle of organization that fosters participation and a principle of legitimation that draws on consent. Based on this distinction, we highlight conceptual shortcomings of the literature on stakeholder democracy. We demonstrate that parts of the literature tend to confound ends with means. Many approaches employ type I democracy notions of participation and often (...) take for granted that this also improves type II democratic legitimation. We hold this to be a mistake. We provide examples of the ambiguity of organizational procedures and show that under some circumstances a decrease in the degree of participation may actually increase legitimation because a governance structure that results in higher productivity can provide higher benefits for all parties involved, serve their interests and therefore meet their agreement. Less type I democracy may mean more type II democracy. We believe this to be an important insight for judging the legitimacy of both capitalistic firms and competitive markets. (shrink)

ABSTRACT:This article contributes to the business ethics literature by applying and extending an emerging theoretical perspective—stakeholder capability enhancement —to previously unexplored areas of business ethics inquiry related to work, dignity, and relationships between firms, ex-offenders, and other stakeholders. In particular, I direct attention to ex-offenders as critical community-based stakeholders pursuing employment opportunities with employers in these communities. I discuss how prevailing hiring practices in firms restrict opportunities for ex-offenders to obtain meaningful work and undermine stakeholder capabilities and dignity. I consider (...) three primary pathways for expanding employment opportunities for ex-offenders, enhancing the capabilities and dignity of ex-offenders and other community-based stakeholders, and maintaining critical employer rights. The article concludes with a discussion of potential directions for future research. (shrink)

One of the essential ethical issues in the employment relationship is the loss of employee voice. Many of the ways employees have previously exercised voice in the employment relationship have been rendered less effective by (1) the changing nature of work, (2) employer preferences for flexibility that often work to the disadvantage of employees, and (3) changes in public policy and institutional systems that have failed to protect workers. We will begin with a discussion of how work has changed in (...) the last 20 years in countries like Australia and the United States, and then take up the issue of employees as organizational stakeholders and the ethical duties that are owed them, with special attention given to issues of power. We will then consider whether voluntary action by employers such as social auditing is sufficient to ensure equity for employees, and conclude with a discussion of how changes in public policy might ensure greater fairness in the employment relationship by bringing employers and employees together in partnership. (shrink)

Employee governance, which includes employee ownership and employee participation in decision making, is regarded by manyas morally preferable to control of corporations by shareholders. However, employee governance is rare in advanced market economies due to its relative inefficiency compared with shareholder governance. Given this inefficiency, should employee governance be given up as an impractical ideal? This article contends that the debate over this question is hampered by an inadequate conception of employee governance that fails to take into account the difference (...) between employees and shareholders. It offers a different, more adequate conception of employee governance that recognizes a sense in which employees currently have some ownership rights. The argument for this conception of employee governance is built on an expanded understanding of the ownership of a firm. The article also suggests new strategies for strengthening the role of employees in corporate governance. (shrink)

This paper assesses employees’ moral agency within corporate capitalism from a politically liberal standpoint. While political liberalism has spelt out its key institutional implications at state level, it has neglected moral agency at work, assuming that a rights-based state that secures freedom of contract, free choice of occupation and a free labour market within a fair context would protect it sufficiently. Yet two features of corporate capitalism constrain employees’ moral agency: the relation of authority that forms part of the work (...) contract and organisations’ fragmented decision-making processes. Both seem at odds with the liberal ideal of allowing people to live by their own conception of the good. Consequently, this paper examines whether political liberalism should recommend greater safeguards for protecting workers’ moral agency. It proposes a criterion for assessing corporate capitalism: the ‘moral space’ defined as the socially shaped opportunities for action that can be enacted or endorsed from a comprehensive perspective. It argues that liberals should favour arrangements that widen workers’ moral space and suggests institutional designs that may achieve this while remaining within liberal boundaries. (shrink)

ABSTRACT:This paper re-examines the import of Rawls’s theory of justice for private sector institutions in the face of the decline of the welfare state. The argument is based on a Rawlsian conception of justice as the establishment of a basic structure of society that guarantees a fair distribution of primary goods. We propose that the decline of the welfare state witnessed in Western countries over the past forty years prompts a reassessment of the boundaries of the basic structure in order (...) to include additional corporate institutions. A discussion centered on the primary good of self-respect, but extensible to power and prerogatives as well as income and wealth, examines how the legislator should intervene in private sector institutions to counterbalance any unfairness that results from the decline of the welfare state. (shrink)

Rights claims are ubiquitous in modernity. Often expressed when relatively weaker agents assert claims against more powerful actors, especially against states and corporations, the prominence of rights claims in organizational contexts creates a challenge for virtue-based approaches to business ethics, especially perspectives employing MacIntyre’s practices–institutions schema since MacIntyre has long been a vocal critic of the notion of human rights. In this article, I argue that employee rights can be understood at a basic level as rights conferred by the rules (...) constitutive of practices. As such, employee rights correspond to the obligations of practitioners to treat fellow practitioners according to the standards of excellence and requirements of justice. Thus, one way that managers can ensure that their core practice is well-functioning is to recognize employee rights. One implication of this argument is that managers should adopt a more positive stance toward labor unions, insofar as they are a key way for employees to ensure that their voice is heard, and their rights respected. (shrink)

Our understanding of emotional labor, while conceptually and empirically substantial, is normatively impoverished: very little has been said or written expressly about its ethical dimensions or ramifications. Emotional labor refers to efforts undertaken by employees to make their private feelings and/or public emotion displays consistent with job and organizational requirements. We formally define emotional labor, briefly summarize research in organizational behavior and social psychology on the causes and consequences of emotional labor, and present a normative analysis of its moral limits (...) focused on conditional rights and duties of employers and employees. Our focus is on three points of conflict involving rights and duties as they apply to the performance of emotional labor: when employees’ and organizations’ rights conflict, when employees’ rights conflict with their duties, and when organizations’ rights conflict with their duties. We discuss implications for future inquiry as well as managerial practice. (shrink)

The study of ethical leadership has emerged as an important topic for understanding the effects of leadership in organizations. In a study with 845 working adults across multiple organizations, the relationships between ethical leadership with positive employee outcomes were examined. Results suggest that ethical leadership is related to both psychological well-being and job satisfaction in employees, but the processes are different. Employee voice mediated the relationship between ethical leadership and psychological well-being. Feelings of psychological ownership mediated the relationship between ethical (...) leadership and job satisfaction. A discussion of theoretical and practical implications concludes the article. (shrink)

This article provides an overview of the field of business ethics.