Can a business be said to demonstrate moral virtues, and does being virtuous mean that it is more likely to behave ethically?

This paper argues that the desirable features of postmodernism identified by Ronald Green are not exclusive to postmodernism; that to the extent these features are postmodern, they are not necessarily features of business ethics; that, with qualification, these are desirable features to include in business ethics; that the best way to accomplish this inclusion is by appealing to an Aristotelian model; and that post-modernism has implications for the legal environment of business.

The debate concerning corporate moral agency is normally conducted through philosophical arguments in articles which argue from only one point of view. This paper summarises both the arguments for and against corporate moral agency and concludes from this that the arguments in favour have more weight. The paper also addresses the way in which the law in the U.K. and the U.S.A. currently views this issue and shows how it is supportive of the concept of corporate moral agency. The paper (...) concludes by considering the implications of the debate for business ethics in general, and stakeholder theory and virtue ethics in particular. (shrink)

In a commercial society, said Adam Smith, “every man becomes in some measure a merchant.” If Smith is right, what does that mean for the character of the society? This paper addresses the character forming effects of the market—and, specifically its impact on the “virtues.” There is a long tradition of viewing commerce as subversive of the virtues. In this view, the market is held to have legitimated the pursuit of narrow self-interest at the expense of social and civic obligations (...) and moral restraints. But, as Albert Hirschman has shown, many Enlightenment moralists saw commercial society as a moralizing force. Which view is right? This paper examines how many of the character traits that we commonly call virtues are rewarded— and so presumably reinforced and diffused—by the market. In this way, the market (as it were by a hidden hand) strengthens its own foundations and reproduces a moral culture that is functional to its own needs. (shrink)

This article extends earlier research concerning the relationship between corporate social performance and corporate financial performance, with particular emphasis on methodological inconsistencies. Research in this area is extended in three critical areas. First, it focuses on a particular industry, the chemical industry. Second, it uses multiple sources of data-two that are perceptual based (KLD Index and Fortune reputation survey), and two that are performance based (TRI database and corporate philanthropy) in order to triangulate toward assessing corporate social performance. Third, it (...) uses the five most commonly applied accounting measures in the corporate social performance and corporate financial performance (CSP/CFP) literature to assess corporate financial performance. The results indicate that the a priori use of measures may actually predetermine the CSP/CFP relationship outcome. Surprisingly, Fortune and KLD indices very closely track one another, whereas TRI and corporate philanthropy differentiate between high and low social performers and do not correlate to the firm's financial performance. (shrink)

In this comment Ichallenge two of the arguments made in the paper, “Toward the Feminine Firm.” First I challenge the claim that Gilligan’swork on gender differences in moral orientation provides a logically and empirically sound foundation for an alternative theory of the firm. I cite recent work that discredits any concise notion of a feminine ethic. Second I challenge the claim that, if such a firm were to exist, it would flourish in a competitive market economy. I suggest that, far (...) from flourishing, such a firm will rapidly perish. (shrink)

In a commercial society, said Adam Smith, “every man becomes in some measure a merchant.” If Smith is right, what does that mean for the character of the society? This paper addresses the character forming effects of the market—and, specifically its impact on the “virtues.” There is a long tradition of viewing commerce as subversive of the virtues. In this view, the market is held to have legitimated the pursuit of narrow self-interest at the expense of social and civic obligations (...) and moral restraints. But, as Albert Hirschman has shown, many Enlightenment moralists saw commercial society as a moralizing force. Which view is right? This paper examines how many of the character traits that we commonly call virtues are rewarded— and so presumably reinforced and diffused—by the market. In this way, the market (as it were by a hidden hand) strengthens its own foundations and reproduces a moral culture that is functional to its own needs. (shrink)

This article extends earlier research concerning the relationship between corporate social performance and corporate financial performance, with particular emphasis on methodological inconsistencies. Research in this area is extended in three critical areas. First, it focuses on a particular industry, the chemical industry. Second, it uses multiple sources of data-two that are perceptual based (KLD Index and Fortune reputation survey), and two that are performance based (TRI database and corporate philanthropy) in order to triangulate toward assessing corporate social performance. Third, it (...) uses the five most commonly applied accounting measures in the corporate social performance and corporate financial performance (CSP/CFP) literature to assess corporate financial performance. The results indicate that the a priori use of measures may actually predetermine the CSP/CFP relationship outcome. Surprisingly, Fortune and KLD indices very closely track one another, whereas TRI and corporate philanthropy differentiate between high and low social performers and do not correlate to the firm's financial performance. (shrink)

In this comment Ichallenge two of the arguments made in the paper, “Toward the Feminine Firm.” First I challenge the claim that Gilligan’swork on gender differences in moral orientation provides a logically and empirically sound foundation for an alternative theory of the firm. I cite recent work that discredits any concise notion of a feminine ethic. Second I challenge the claim that, if such a firm were to exist, it would flourish in a competitive market economy. I suggest that, far (...) from flourishing, such a firm will rapidly perish. (shrink)

Andrew Wicks recently reflected “On The Practical Relevance of Feminist Thought to Business.” Part of his reflection focussed on my contributions to this subject. In critiquing my work, Wicks notes the similarity between my views on business and those of Alasdair MacIntyre. He goes on to give a brief overview of our position as he sees it. Wicks’s overview, although insightful, is misleading in certain key respects. My purpose in this response, therefore, is to clarify MacIntyre’s views on business. In (...) doing this I will, by default, clarify my own.MacIntyre himself might be surprised by the frequency with which his name appears in the business-ethics discourse. Although, over a period spanning nearly fifty years, he has written prolifically on the subject of ethics, he has only, as far as I am aware, written two brief articles directly addressing the subject of business ethics. Why then should we in business or in business ethics concern ourselves with his views? I think our interest in MacIntyre stems from our interest in virtue ethics, specifically our interest in the applicability of the virtues to business. When it comes to virtue ethics MacIntyre is recognized as an authority, if not the authority. Even his fiercest detractors would, I hope, admit that he has been largely responsible for the resurrection of classical philosophy in the latter half of this century. His bookAfter Virtue,in which he criticizes modernity and praises a classical virtue-based approach to ethics, is undoubtedly one the most influential books on moral philosophy written this century. Indeed, as postmodernism gains steam as a cultural force, its full influence is perhaps yet to be determined. If MacIntyre’s critique of modernity proves correct, then much of business-ethics theory—not to mention moral theory in general—would be discredited. Thus interest in MacIntyre’s thesis, from many quarters, is understandable. (shrink)

Can a business be said to demonstrate moral virtues, and does being virtuous mean that it is more likely to behave ethically?

Abstract:The aim of this paper is to create a framework which can serve as a guide to the understanding of organizational ethicality. This is done by linking ethical and organizational theory. Organizational ethicality is about “being” as well as “doing”: relevant ethical theory is therefore both substantive (agent-centred, concerned with the “good”) as well as procedural (act-centred, concerned with the “right” in the sense of the moral or just thing to do). The ethical theories of Alasdair MacIntyre and Jurgen Habermas, (...) as representatives of these two traditions, are mapped onto a framework which characterises organizations as assemblages of practices supported by a climate embedded within an organizational culture. Organizational practice is articulated and given meaning within a discourse of “sensemaking” in which narrative creates space-time links between people and events. Within that same communicative climate practices are evaluated and decisions taken. This theoretical framework is specified in such a way as to highlight the parallels with the ethical theories of MacIntyre, who uses notions of practice, tradition and the narrative unity of moral experience to create an ethical theory of the “good,” and Habermas, who spells out the process of moral argumentation by which consensus on the “just” or “right” is reached. Some possibilities for further research are suggested at the end of the paper. (shrink)