Abstract:Moral imagination is a reasoning process thought to counter the organizational factors that corrupt ethical judgment. We describe the psychology of moral imagination as composed of the four decision processes identified by Rest (1986), i.e., moral sensitivity, moral judgment, moral intention, and moral behavior. We examine each process in depth, distilling extant psychological research and indicating organizational implications. The conclusion offers suggestions for future research.The majority of men are subjective toward themselves and objective toward all others—terribly objective sometimes—but the real (...) task is in fact to be objective toward one’s self and subjective toward all others. (shrink)

This article adopts an issues management approach to corporate social responsibility implementation. Issues evaluation, which is an integral component of issues management, can be conducted by using the concept of three expectational gaps. However, the concept of expectational gaps suffers from an ambiguity that limits its application to issues evaluation. The legitimacy gap concept is used in this article to clarify the ambiguity surrounding expectational gaps. The study thus develops a four-gap framework for conducting a quantitative issues evaluation. This framework (...) is applied to six social and six environmental issues in the context of the forest products industry in the Northwest United States by means of a survey of 278 society and 94 industry respondents. Results empirically demonstrate the existence of expectational gaps and also provide insights into the nature of misalignment between societal and business perceptions along these social and environmental issues. Appropriate managerial responses are suggested to narrow or bridge different types of gaps. (shrink)

Abstract: In this article, I offer a proposal to clarify what I believe is the proper relation between value maximization and stakeholder theory, which I call enlightened value maximization. Enlightened value maximization utilizes much of the structure of stakeholder theory but accepts maximization of the long-run value of the firm as the criterion for making the requisite tradeoffs among its stakeholders, and specifies long-term value maximization or value seeking as the firm’s objective. This proposal therefore solves the problems that arise (...) from the multiple objectives that accompany traditional stakeholder theory. I also discuss the Balanced Scorecard, which is the managerial equivalent of stakeholder theory, explaining how this theory is flawed because it presents managers with a scorecard that gives no score—that is, no single-valued measure of how they have performed. Thus managers evaluated with such a system (which can easily have two dozen measures and provides no information on the tradeoffs between them) have no way to make principled or purposeful decisions. The solution is to define a true (single dimensional) score for measuring performance for the organization or division (and it must be consistent with the organization’s strategy), and as long as their score is defined properly, (and for lower levels in the organization it will generally not be value) this will enhance their contribution to the firm. (shrink)

As one of the most influential commentators on the role of modern philosophy, Richard Rorty's work impacted all areas of philosophical inquiry, including business ethics. Rorty's post-foundational approach to "moral imagination" can inform how we teach business ethics in a diverse and philosophically eclectic manner. A summary of Rorty's critique of philosophy, ethics, and applied ethics will be followed by a discussion of the implications for a critical pedagogy and the pragmatic use of an expansive philosophical lexicon in a business (...) ethics course. (shrink)