Abstract:This paper examines two recent trends relative to boards of directors’ compensation, and their potential incompatibility. There has been some progress in increasing board diversity, specifically the inclusion of women and minorities on boards. The increasing trend requiring directors to hold/purchase equity as a requirement of board membership may seriously compromise further improvements in diversifying boards. Also, an increasing number of companies compensate directors partially or fully in stock grants and options. These compensation policies may be exclusionary, especially for women (...) and minorities, impacting the quality of boardroom discussions and decisions. This study systematically examines whether corporations requiring director equity are exclusionary toward women and minority directors. Contrary to being exclusionary, companies with director stock requirements and annual stock awards have greater representation by women and minorities on their board. Moreover, larger companies are both more likely to have such policies and have higher proportions of women and minorities on the board. (shrink)

To be in business is first to be. To do in business, is to enhance one's being and the being of others; it ought never result in the diminishment of either. This article invites philosophical reflection on the purpose of business.To be and do in business looks for an explanation that goes beyond the meaning of work. The meaning of work is a worthy philosophical inquiry; the meaning of business is a separate question. The purpose of business is relational. Business (...) is doing for others on condition of receipt of something of fair value in return. It deals essentially with exchanges. Persons in business relate to other persons whose needs, preferences, and desires are met, to some degree of satisfaction, by the product or service the business is organized to provide — at a price. To meet the need, preference or desire is the purpose of business. (shrink)

Most economists are committed to some version of egoism. After distinguishing among the various sorts of egoistic claims, l cite the empirical literature against psychological egoism and show that attempts to account for this data make these economists' previous empirical claims tautological. Moreover, the assumption of egoism has undesirable consequences, especially for students; if people believe that others behave egoistically, they are more likely to behave egoistically themselves. As an alternative to egoism I recommend the commitment model of Robert Frank. (...) The equivalent of egoism at the organizational level is that business firms seek (should seek) to maximize profits. I present arguments to show that a conscious attempt by managers to maximize profits is likely to fail. A committed altruism is more likely to raise profits. I suggest that a firm should take as its primary purpose providing meaningful work for employees. (shrink)