Abstract
This paper examines the self-interested reasons that businesses can have for ethical behaviour. It distinguishes between economic and non-economic reasons and, among the latter, notes those connected with the self-esteem of managers. It offers a detailed typology of prudential reasons for ethical behaviour, laying particular stress on those to do with avoiding punishment by society for wrongdoing and, more particularly still, stresses the role of campaigning pressure groups within that particular category of reasons. It goes on to suggest that because of their occupation of the moral high ground, campaigning groups are well placed to damage the self-esteem of managers and that this is why those groups seem able to exert an influence that goes beyond their somewhat limited capacity to inflict economic damage upon businesses. The paper concludes with the suggestion that we may be witnessing a “virtuous spiral” whereby rising public expectations of morality in business lead to ever increasing moral commitments by business that then cause those expectations to rise still further.
Similar content being viewed by others
References
Barrie, C.: 1997, ‘Campaigning Shareholders Attack BAe Arms Sales’, Guardian, May 1, p. 26.
Bentham, J.: 1970, Of Laws in General, ed. H.L.A. Hart (Athlone Press, London).
Bray, J. (ed.): 1997, No Hiding Place (Control Risks Group, London).
Brown, K.: 1999, ‘Approval of Business in Britain at 30-Year Low’, Financial Times, February 22, p. 18.
Business in the Community: 1992, Annual Review (BITC, London).
Chryssides, G. and J. Kaler: 1993, An Introduction to Business Ethics (International Thomson Business Press, London).
Chryssides, G. and J. Kaler: 1996, Essentials of Business Ethics (McGraw-Hill, London).
Clarkson, C. M. V. and H. M. Keating: 1994, Criminal Law: Text and Materials (Sweet & Maxwell, London).
Cohen, M.: 1998, ‘Evidence of a New Environmental Ethic: Assessing the Trend Towards Investor and Consumer Activism’, in I. Jones and M. G. Pollit (eds.), The Role of Business Ethics in Economic Performance (Macmillan, London), pp. 111–140.
Cowton, C. J.: 1994, ‘The Development of Ethical Investment Products’, in A. R. Prindl and B. Prodam (eds.), Ethical Conflicts in Finance (Blackwell, Oxford), pp. 213–232.
Echiejile, I.: 1995, ‘The Business Case for Diversity’, Professional Manager ( July), 8–11.
Griffiths, A. and S. Wall (eds.): 1995, Applied Economics (Longman, London).
Hirschman, A. O.: 1970, Exit, Voice, and Loyalty (Harvard University Press, Cambridge, Mass.).
Lascelles, D. et al.: 1995, ‘Brent Spar Dents Oil Giant's Pride Rather Than its Profits’, Financial Times, June 10, p. 13.
Martinson, J.: 1999, ‘Byers Warns Over Executive Pay’, Financial Times, March 24, p. 10.
Price, A.: 1997, ‘In Search of Legitimisation-Payback and Practice’, in G. Moore (ed.), Business Ethics: Principle and Practice (Business Education Publishers, Sunderland).
Reed, M.: 1999, ‘Wide Open to the Web Warriors’, on http://www.marketing.haynet.com (from Marketing, February 4).
Singer, P.: 1979, Practical Ethics (Cambridge University Press, Cambridge).
Smith, M.: 1994, The Moral Problem (Blackwell, Oxford).
Smith, N. C.: 1990, Morality and the Market (Routledge, London).
Sparkes, R.: 1998, ‘The Challenge of Ethical Investment: Activism, Assets and Analysis’, in I. Jones and M. Pollitt (eds.), The Role of Ethics in Economic Performance (Macmillan, London).
Straw, J.: 1989, Equal Opportunities: The Way Ahead (Institute of Personnel Management, London).
Thompson, J. L.: 1993, Strategic Management: Awareness and Change (Chapman & Hall, London).
Wagstyl, S. and R. Corzine: 1997, ‘Rights and Wrongs’, Financial Times, March 18, p. 24.
Willetts, P.: 1998, ‘Political Globalization and the Impact of NGOs Upon Transnational Companies’, in J. V. Mitchell (ed.), Companies in a World of Conflict: NGOs, Sanctions and Corporate Responsibility (Earthscan, London).
Zadek, S. et al.: 1997, Building Corporate Accountability (Earthscan, London).
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Kaler, J. Reasons To Be Ethical: Self-Interest and Ethical Business. Journal of Business Ethics 27, 161–173 (2000). https://doi.org/10.1023/A:1006450018660
Issue Date:
DOI: https://doi.org/10.1023/A:1006450018660