The market failures approach is amongst the most influential theories of business ethics. Its interest within the field is, in large part, a result of its rejection of moralism and any sort of applied ethics approach, favouring, in contrast, a focus on the institutionally embodied goal of economic activity, which it takes to be that of Pareto efficiency. From this articulation of the goal, or purpose, of markets, a set of efficiency imperatives are derived that are taken to comprise the (...) implicit morality of the market. However, the market failures approach has not adequately explained the basis of market actors’ moral motivation, that is, the reasons individuals have to self-consciously adhere to moral norms governing market transactions. This failure, I argue, stems from its misspecification of the purpose of the market. After explaining this failure to address the problem of moral motivation, I argue that a distinctive mode of freedom understood as a form of self-authorship is better seen as the purpose of the market, a goal that actually animates individual market participants. I then argue that this notion of freedom is intrinsically linked to a conception of responsibility and that this notion of responsibility can be more adequately conceptualized as involving a set of market virtues focused on promoting mutually beneficial transactions. Thus, the link between freedom and responsibility, stemming from an individual’s need to legitimize their freedom in a market context, provides the basis for a self-conscious sense of moral motivation. As such, this approach better captures the implicit morality of the market while also addressing the problem of moral motivation. (shrink)

Lamenting the deplorable state of business ethics is, itself, a staple of the deplorable state of business ethics. But if, as its many critics claim, business ethics continuously fails to deliver on its promise, what could take its place in management education? After business ethics—How else can we integrate ethics into the curriculum? This article argues that an ethical grounding of business theory and corporate practice requires a critique of conventional economics, replacing the mechanistic paradigm that predominated economics over the (...) last 200 years with a humanistic alternative. (shrink)

As business ethics is grappling with criticisms of its relevance for ethical practice, it may find perspective and direction in various conceptions of ethos. While ‘ethics’ is rooted in ‘ethos’, a term with a long and rich history of interdisciplinary research, conceptions of ethos are so far scarcely discussed in business ethics. The purpose of this conceptual article is to explore the potential of a pivot towards business ethics as an ethos-driven practice, drawing on John Dewey’s work. First, it introduces (...) four conceptions of ethos from interdisciplinary research and explores their varied resonance in business ethics. Second, it offers a unified conception of ethos that builds on John Dewey’s approach to economics, moral life and ethics, particularly on his understanding of habits and forms of valuation. It is then argued that understanding ethos in terms of ‘valued modes of embedded, embodied and associational conduct’ encourages business ethics to engage in the intelligent, practical and meaningful reconstruction of evolving business practices. The article concludes that an ‘ ethotical turn’ for business ethics would not only invigorate practical, corporeal and environmental perspectives but also open the field to interdisciplinary insights and ideas. (shrink)

Managers face increasingly volatile, uncertain, complex and ambiguous situations that are more and more challenging to navigate. Ethical decision-making has become particularly complicated considering that codes, frameworks and protocols have proven deficient in resolving moral dilemmas. Managers’ unpreparedness to handle such challenges reflects the ineffectiveness of business ethics education, calling for new approaches towards training managers. This article makes a case for transforming business ethics education by taking it back to its roots. This implies the re-incorporation of its foundational discipline: (...) philosophy. Philosophy offers a rigorous approach for decision-making, which helps managers face the unknown. It helps them analyse situations from different perspectives, reconsider how things are done and examine the underlying premises of their thinking. It can strengthen one of the most central managerial competencies: the ability to reason, especially ethically. As the foundational discipline of business, ethics and their intersect, philosophy is uniquely positioned to elevate business ethics education for managers at all levels. It can help current and future managers to reflect more deeply and critically on the ethical issues they face. (shrink)

The long-term health of business ethics is suspect. In particular, there are some troubling trends within the discipline’s methodology that should be closely monitored and, in some cases, countered. Furthermore, business ethicists and management theorists should take some steps to make business ethics more robust and more relevant to actual business practice. Part 1 of this article argues that, while the dominance of the social science approach should be curtailed, relations between normative and empirical scholars need not be hostile; on (...) the contrary, there are some modest ways in which the two approaches could complement each other more than they have to date. Part 2 examines why business ethics needs more systems thinking. Part 3 explores why business ethicists in general should follow the lead of some of our colleagues who are engaging in powerful and influential research with direct and immediate practical applications. The article closes with a few modest suggestions for enhancing business ethics theorizing and provides some concrete ways for scholars to become more involved with business practitioners and business practice and to learn from the latter in ways that can productively feed research streams. (shrink)

Numerous ethical theories have been proposed as a foundation of business ethics, and this often brings about appreciable perplexity. This article seeks to identify specific problems for a sound foundation of this discipline. A first problem is this multiplicity of ethical theories, each with its own metaethics, often accepted without a serious discussion of their philosophical grounds. A second problem is the fragmentation of theories; some centred on duties or obligations, others on consequences, virtues, or moral sentiments. In addition, some (...) theories focus on universal principles, while others take the singularity of each situation as their focal point. A third problem is that not every ethical theory covers the personal, organizational and societal dimensions of business ethics, and this introduces reductionism. These problems cannot be satisfactorily addressed through ‘ethical pluralism’, in which all theories are accepted, without falling into ethical relativism. ‘Ethical pragmatism’, which welcomes any ethical theory only on the basis of their practically, is also questioned. Furthermore, there is the problem of integrating ethics into business theory, which is often extrinsic to the economic function. After analysing these problems, the article concludes by exploring some proposals that might serve to build a sound and complete ethical theory which includes human goods (objective values), principles (or norms) and virtues. The necessity of reconsidering the human action for a closer integration of ethics into business theory is also suggested. (shrink)

The aim of this article is to briefly spell out why corporate moral agency is a fallacy and to show how this conclusion should shift the field of business ethics more in the direction of political philosophy and the rule of law. An argument based on a false assumption can be valid, but it cannot be sound. If corporate moral agency is a fallacy, and thus also moral prescriptions for corporations, how do we salvage the field of business ethics? To (...) the extent that business ethics is about corporate behaviour (rather than individual managerial behaviour), the field can shift its foundational paradigm from ethics (which requires the attributes of moral agency) to legal accountability (which can be imposed instrumentally on corporate legal agents). By letting our elected representatives legislate the norms of acceptable corporate behaviour we can hold corporate legal entities legally accountable. What these norms should be then becomes the central focus of business ethics seen through the lens of political philosophy. (shrink)