Skip to main content
SpringerLink
Log in

The Limits of Strategic Rationality: Ethics, Enterprise Risk Management, and Governance

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

This article explores the links between strategic goals, enterprise risk management, and ethics. We offer a typology of managerial attitudes toward strategic goals and rationality and explore the interaction between strategic and ethical decision making. In so doing, we offer a practical framework for managers to approach ethical dilemmas in the highly complex, volatile, and risky economy that we currently find ourselves in.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • R. J. Alsop (2004) The 18 Immutable Laws of Corporate Reputation Creating, Protecting, and Repairing Your Most Valuable Asset. New York: Wall Street Journal Press.

    Google Scholar 

  • T. J. Andersen, J. Denrell, R. A. Bettis (2007) Strategic Responsiveness and Bowman’s Risk-Return Paradox. Strategic Management Journal 28(4): 407–429

    Article  Google Scholar 

  • D. Apgar (2006) Risk Intelligence: Learning to Manage What We Don’t Know. Boston: Harvard Business School Press

    Google Scholar 

  • S. M. J. Bonini, L. T. Medonica, J. M. Oppenheim (2006) When Social Issues Become Strategic. McKinsey Quarterly 2:21–32

    Google Scholar 

  • P. Bromiley, K. D. Miller and D. Rau (2005) Risk in Strategic Management Research. In M. A. Hitt, R. E. Freeman, J. S. Harrison (eds) The Blackwell Handbook of Strategic Management. Oxford: Blackwell Publishing, pp. 259–288

    Google Scholar 

  • R. Cyert, J. G. March (1963) A Behavioral Theory of the Firm. Englewood Cliffs, NJ: Prentice Hall

    Google Scholar 

  • Davis, I.: 2005a, ‹The Biggest Contract: By building Social Issues into Its Strategy Business can Recast the Debate About Its Role’, Economist, May 28, 2005

  • Davis, I.: 2005b, ‹How to Escape the Short Term Trap’, Financial Times, April 11, 2005

  • M. Friedman (1962) Capitalism and Freedom. Chicago: University of Chicago Press.

    Google Scholar 

  • D. A. Gioia (1992) Pinto Fires and Personal Ethics: A Script Analysis of Missed Opportunities. Journal of Business Ethics 11(5–6): 379-389.

    Article  Google Scholar 

  • B. W. Husted, J. de Jesus Salazar (2006) Taking Friedman Seriously: Maximizing Profits and Social Performance. Journal of Management Studies 43(1): 75–91.

    Article  Google Scholar 

  • J. Lam (2003) Enterprise Risk Management: From Incentives to Controls. New Jersey: John Wiley and Sons

    Google Scholar 

  • J. G. March, H. Simon (1958) Organizations. Cambridge, Mass: Blackwell.

    Google Scholar 

  • L. S. Paine (2003) Value Shift: Why Companies Must Merge Social and Financial Imperatives to Achieve Superior Performance. New York: McGraw Hill

    Google Scholar 

  • Porter, M. E. and M. R. Kramer: 2006, ‹Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility’, Harvard Business Review 84, 78–92

    Google Scholar 

  • Samuels, D.: 2006, ‹Judgment Versus Risk Management Science: Are We Getting the Balance Right’, RMA Journal 88(9), 16–19

    Google Scholar 

  • A. K. Sundaram and A. C. Inkpen (2004) The Corporate Objective Revisited. Organization Science 15(3): 350–363.

    Article  Google Scholar 

  • D. Vogel (2006) The Market for Virtue: The Potential and Limits of Corporate Social Responsibility. Washington DC, Brookings Institute Press.

    Google Scholar 

  • Woellert, L.: 2006, ‹HP Wants Your Old PCs Back’, Business Week, April 10, 2006. http://www.businessweek.com/magazine/content/06_15/b3979109.htm.

Download references

Author information

Authors and Affiliations

  1. Schulich School of Business, York University, Toronto, Canada

    David Weitzner & James Darroch

Authors
  1. David Weitzner
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. James Darroch
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to David Weitzner.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Weitzner, D., Darroch, J. The Limits of Strategic Rationality: Ethics, Enterprise Risk Management, and Governance. J Bus Ethics 92, 361–372 (2010). https://doi.org/10.1007/s10551-009-0159-0

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-009-0159-0

Keywords

Search

Navigation