There are important synergies for the next generation of ethical leaders based on the alignment of modified or adjusted mental models. This entails a synergistic application of moral imagination through collaborative input and critique, rather than "me too" obedience. In this article, we will analyze the Milgram results using frameworks relating to mental models (Werhane et al., Profitable partnerships for poverty alleviation, 2009), as well as work by Moberg on "ethics blind spots'' (Organizational Studies 27(3): 413-428, 2006), and by (...) Bazerman and Chugh on "bounded awareness" (Harvard Business Review, 2006; Mind & Society 6: 1-18, 2007) Using these constructs to examine the Milgram experiment, we will argue that the ways in which the experiments are framed, the presence of an authority figure, the appeal to the authority of science, and the situation in which the naïve participant finds herself or himself, all create a bounded awareness, a narrow blind spot that encourages a climate for obedience, brackets out the opportunity to ask the moral question: "Am I hurting another fellow human being?" and may preclude the subject from utilizing moral imagination to opt out of the experiment. We will conclude that these forms of almost blind obedience to authority are correctable, but with difficulty. We will argue that linking the modification of mental models to an unbinding of awareness represents an important synergistic relationship and one that can build effectively on the lessons learned from our experience with moral imagination. (shrink)

Over the last decade, and culminating in the 2008 global financial meltdown, there has been an erosion of trust and a concomitant rise of distrust in domestic companies, multinational enterprises, and political economies.In response to this attrition, this article presents three arguments. First, we suggest that trust is the “glue” of any viable political economy, and we propose that the stakes of violating public trust are particularly high in light of the asymmetry between trust and distrust. Second, we identify a (...) constellation of key barriers to overcoming distrust that companies face in the current environment: (1) corporate mind-sets that promote a preoccupation with quantification, hierarchical leadership models, and “blind trust” in authority; (2) the anonymity of core stakeholders; (3) the agency of the media as a driver of the political economy; and (4) firm-centric models of stakeholder relationships.Third, we argue that, notwithstanding these challenges, these phenomena are not fatal and can be addressed through a holistic transformation in corporate culture. Such a transformation might include a shift to collaborative leadership models and replacing authority models with responsibility, a “names and faces” approach to stakeholders through cases and stories, more egalitarian communication exchanges with external stakeholders, and a reprioritization of the firm as a vital element among others within a system rather than the central core of a network.We conclude that the value of trust at the individual, institutional, national, and global levels cannot be overstated. Without a reinvigoration of trust in our political economies, at all levels, the future of an economically vibrant planet is indeed bleak. (shrink)

While no one seems to believe that business schools or their faculties bear entire responsibility for the ethical decision-making processes of their students, these same institutions do have some burden of accountability for educating students surrounding these skills. To that end, the standards promulgated by the Association to Advance Collegiate School of Business, their global accrediting body, require that students learn ethics as part of a business degree. However, since the AACSB does not require the inclusion of a specific course (...) to achieve this objective, it may be satisfied by establishing a stand-alone course in ethical decision-making, by integrating ethical decision-making into the existing curricula, by some combination of the two strategies, or through some alternative mechanism. Notwithstanding the choice of delivery process, though, the institution must ensure that it is able to demonstrate the students' achievement of learning with regard to ethics, a bar that was raised, or arguably simply modified, in 2003. With learning objectives designed precisely to measure the student delta based on content, process and engagement in a particular class, those programs that have opted for stand-alone ethics courses may be more prepared to respond to assessment-related inquiries regarding their programs or satisfaction of the standards. The relevance of the AACSB standards modification to the current efforts at ethics integration in business programs is instead a re-examination of how to create a program of integration that is designed to ensure the most effective learning results possible, while responding to the challenges presented by the integrated approach. The purpose of this article is to explore some of those challenges that may be somewhat universal to business school programs implementing the integrated approach, and to share one large university's response to those challenges, along with lessons learned. (shrink)

An ongoing argument often made by business ethicists is that a singular preoccupation on profitability, will lead, in the long run, to disvalue for all the stakeholders and the communities it affects, and often, economic challenges for the company. On the other hand, we argue, a preoccupation with ethics and CSR as the primary aims of a for-profit company, it is, on its own, like a preoccupation with profitability, unsustainable. Indeed, without economic viability, a company will fail. Both of these (...) contentions point to our conclusion that one must take care in changing habits and rethinking business models. We illustrate through case examples, that merely being ethical and socially responsible is insufficient for the long-term well-being of business just as a preoccupation with profits for their own sake also is insufficient. What is realistic, practical, pragmatic, sustainable and profitable for corporations, and what also serves the interests of multiple stakeholders including those in the communities they serve, is a true balance of ethics, CSR, and economic value-added. Expanding on the recent work of Husted and Allen, we call this a strategic global strategy approach. (shrink)

When using cases to teach corporate strategy and ethical decision-making, the aim is to demonstrate to students that leadership decision-making is at its most effective when all affected stakeholders are considered, from shareholders and employees, to the local, national, and global societies in which the company operates. This paper challenges the obstructive perception of many Corporate Social Responsibility (CSR) advocates that the interests of private organizations in the alleviation of social problems should not be vested, but instead should originate from (...) charitable purposes. We evaluate an alternative approach to the role of business in contributing to social progress - Creating Shared Value (CSV), and present a case study that illuminates key features of CSV. We share pedagogical strategies for a classroom discussion of the Zynga.org case that encourage students to investigate the merits and hurdles of CSV as a pathway to harmonize the twin goals of economic value creation and social change. (shrink)

This paper builds on London and Hart’s critique that Prahalad’s best-selling book prompted a unilateral effort to find a fortune at the bottom of the pyramid. Prahalad’s instrumental, firm-centered construction suggests, perhaps unintentionally, a buccaneering style of business enterprise devoted to capturing markets rather than enabling new socially entrepreneurial ventures for those otherwise trapped in conditions of extreme poverty. London and Hart reframe Prahalad’s insight into direct global business enterprise toward “creating a fortune with the base of the pyramid” rather (...) than at the BoP. This shift in language requires a recalibration of strategic focus, we argue, and will necessitate implementation of “moral imagination” to formulate new mental models that can frame the possibility of local entrepreneurs working collaboratively and discursively with development partners drawn from civil society, corporate, and government sectors. Successful partnerships will arise from interactive processes of emergent, co-creative learning within a shared problem domain or “community of practice”. We call attention to three related pluralist framings of situated learning within such communities of practice: decentered stakeholder networks; global action networks; and a focus on “faces and places” as a cognitive lens to humanize and locally situate diverse inhabitants within base of the pyramid partnership projects. (shrink)

This book celebrates the work of Patricia Werhane, an iconic figure in business ethics. This festschrift is a collection of articles that build on Werhane’s contributions to business ethics in such areas as Employee Rights, the Legacy of Adam Smith, Moral Imagination, Women in Business, the development of the field of business ethics, and her contributions to such fields as Health Care, Education, Teaching, and Philosophy. All papers are new contributions to the management literature written by well-known (...) business ethicists, such as Norman Bowie, Richard De George, Ronald Duska, Edwin Hartman, Michael Hoffman, Mollie Painter-Morland, Mark Schwartz, Andrew Wicks, and others. The volume is comprised of articles that reflect on Werhane’s work as well as build on it as a way to advance further research. At the end of the festschrift, Pat Werhane provides responses to each chapter. The first chapter of the book also includes the overview of Patricia Werhane’s work and her academic career. The book is written to appeal to management scholars and graduate students interested in the areas of Business Ethics, Modern Capitalism, and Human Rights. Patricia Werhane is one of the most distinguished figures in the field of business ethics. She was a founder of the field, she is one of its leading scholars, and she has had a profound impact on the world of business practice. Among her many accomplishments, Pat is known for her original work on moral imagination, she is an acclaimed authority on employee rights in the workplace, and she is one of the leading scholars on Adam Smith. Having been active in Academia for over 50 years, Werhane is a prolific author of over a hundred articles and book chapters, and the author or editor of twenty-seven books, including Adam Smith and his Legacy for Modern Capitalism, Moral Imagination and Management Decision-Making, and co-authored books Organization Ethics in Health Care, Alleviating Poverty Through Profitable Partnerships, Obstacles to Ethical Decision-Making, Corporate Responsibility: The American Experience, and Research Approaches to Business Ethics and Corporate Responsibility. (shrink)

This book celebrates the work of Patricia Werhane, an iconic figure in business ethics. This festschrift is a collection of articles that build on Werhane’s contributions to business ethics in such areas as Employee Rights, the Legacy of Adam Smith, Moral Imagination, Women in Business, the development of the field of business ethics, and her contributions to such fields as Health Care, Education, Teaching, and Philosophy. All papers are new contributions to the management literature written by well-known (...) business ethicists, such as Norman Bowie, Richard De George, Ronald Duska, Edwin Hartman, Michael Hoffman, Mollie Painter-Morland, Mark Schwartz, Andrew Wicks, and others. The volume is comprised of articles that reflect on Werhane’s work as well as build on it as a way to advance further research. At the end of the festschrift, Pat Werhane provides responses to each chapter. The first chapter of the book also includes the overview of Patricia Werhane’s work and her academic career. The book is written to appeal to management scholars and graduate students interested in the areas of Business Ethics, Modern Capitalism, and Human Rights. Patricia Werhane is one of the most distinguished figures in the field of business ethics. She was a founder of the field, she is one of its leading scholars, and she has had a profound impact on the world of business practice. Among her many accomplishments, Pat is known for her original work on moral imagination, she is an acclaimed authority on employee rights in the workplace, and she is one of the leading scholars on Adam Smith. Having been active in Academia for over 50 years, Werhane is a prolific author of over a hundred articles and book chapters, and the author or editor of twenty-seven books, including Adam Smith and his Legacy for Modern Capitalism, Moral Imagination and Management Decision-Making, and co-authored books Organization Ethics in Health Care, Alleviating Poverty Through Profitable Partnerships, Obstacles to Ethical Decision-Making, Corporate Responsibility: The American Experience, and Research Approaches to Business Ethics and Corporate Responsibility. (shrink)

This volume brings together a selection of papers written by Patricia Werhane during the most recent quarter century. The book critically explicates the direction and development of Werhane’s thinking based on her erudite and eclectic sampling of orthodox philosophical theories. It starts out with an introductory chapter setting Werhane’s work in the context of the development of Business Ethics theory and practice, along with an illustrative time line. Next, it discusses possible interpretations of the papers that (...) have been divided across a range of themes, and examines Werhane’s contribution to these thematic areas. Patricia H. Werhane is a renowned author and innovator at the intersection of philosophy and Applied Business Ethics. She is professor emerita and a senior fellow at the Olsson Centre for Applied Ethics at Darden and was formerly the Ruffin Professor of Business Ethics. She is also professor emerita at DePaul University, where she was Wicklander Chair in Business Ethics and director of the Institute for Business and Professional Ethics. A prolific author whose works include Moral Imagination and Management Decision-Making and Organization Ethics for Health Care, Werhane is an acclaimed authority on employee rights in the workplace, one of the leading scholars on Adam Smith and founder and former editor-in-chief of Business Ethics Quarterly, the leading journal of Business Ethics. She was a founding member and past president of the Society for Business Ethics and, in 2001, was elected to the executive committee of the Association for Practical and Professional Ethics. Before joining the Darden faculty in 1993, Werhane served on the faculty of Loyola University Chicago and was a Rockefeller Fellow at Dartmouth College and Senior Fellow at Cambridge University. (shrink)

A main objective of this study is to assess the opinions of 50 behavioral health patients on selective control over their behavioral and physical health information. We explored patients' preferences regarding current consent models, what health information should be shared for care and research and whether these preferences vary based on the sensitivity of health information and/or the type of provider involved. The other objective of this study was to solicit opinions of 8 behavioral health providers on patient-driven granular control (...) of health information and potential impact on care.Electronic surveys were implemented at an outpatient Behavioral Health facility that provides care for behavioral health patients with non-serious mental illnesses. The Patient Survey included questions regarding patients' demographics and about their concerns and preferences for data sharing for care and research. The Provider Survey included questions about their view on the current consent process and perceptions on barriers and facilitators to implement patient-controlled granular consent models.This novel study provides valuable preliminary data that can help guide future studies to better understand privacy choices of this underrepresented patient group. (shrink)

RESUMEN: Este trabajo considera la conceptualización y aplicación de la figura de los ajustes razonables en Qatar tras nueve años desde la ratificación de la Convención sobre los Derechos de las Personas con Discapacidad (CDPD). En él se trata de analizar la situación de igualdad y no discriminación de las personas con discapacidad utilizando como medida de impacto la figura de ajustes razonables. El artículo destaca las principales fallas y virtudes del Estado de Qatar respecto a esta figura y traza (...) un camino a fin de poder avanzar en la inclusión de las personas con discapacidad a la luz de la CDPD. ABSTRACT: This paper considers the conceptualization and application of reasonable acommodation in Qatar after nine years since the ratification of the Convention on the Rights of Persons with Disabilities (CRPD). It analyzes the situation of equality and non-discrimination of people with disabilities using the figure of reasonable adjustments as an impact measure. The article highlights the main failures and virtues of the State of Qatar regarding reasonable accommodation and draws a path to move forward in the inclusion of people with disabilities in the light of the CRPD. PALABRAS CLAVE: ajustes razonables, igualdad, CDPD, Qatar. KEYWORDS: reasonable accommodation, equality, CRPD, Qatar. (shrink)

After experiments with various economic systems, we appear to have conceded, to misquote Winston Churchill that "free enterprise is the worst economic system, except all the others that have been tried." Affirming that conclusion, I shall argue that in today's expanding global economy, we need to revisit our mind-sets about corporate governance and leadership to fit what will be new kinds of free enterprise. The aim is to develop a values-based model for corporate governance in this age of globalization that (...) will be appropriate in a variety of challenging cultural and economic settings. I shall present an analysis of mental models from a social constructivist perspective. I shall then develop the notion of moral imagination as one way to revisit traditional mind-sets about values-based corporate governance and outline what I mean by systems thinking. I shall conclude with examples for modeling corporate governance in multi-cultural settings and draw tentative conclusions about globalization. (shrink)

Abstract:Most papers in this issue carefully analyze normative and empirical methodologies. I shall argue that (a) there is no purely empirical nor purely normative methodology; (b) some terms escape the division of the normative and descriptive. (c) Most importantly, dialogues such as this one point to a form of integration that allows us to reflect on what it is that each approach presupposes in its study of business ethics. Thus we have made progress in recognizing the importance of each methodology, (...) how each is dependent on the other, and how neither is singularly The Approach to business ethics. (shrink)

Taking the lead from Susan Wolf's and Linda Emanuel's work on systems thinking, and developing ideas from Moberg's, Seabright's and my work on mental models and moral imagination, in this paper I shall argue that what is often missing in management decision-making is a systems approach. Systems thinking requires conceiving of management dilemmas as arising from within a system with interdependent elements, subsystems, and networks of relationships and patterns of interaction. Taking a systems approach and coupling it with moral imagination, (...) now engaged on the organizational and systemic as well as individual levels of decision-making, I shall conclude, is a methodology that encourages managers and companies to think more imaginatively and to engage in integrating moral decision-making into ordinary business decisions. More importantly this sort of thinking is a means to circumvent what often appear to be intractable problems created by systemic constraints for which no individual appears to be responsible. (shrink)

Patricia Werhane synthesizes much of later Wittgensteinian thought, bringing together disparate arguments into a coherent text. Keeping in mind what Wittgenstein set out to accomplish in his later writings, the introduction of new material on the private language arguments, and the philosophical significance of these claims, Werhane develops the thesis that the notion of a rule is such a constitutive of language that a private language is impossible. Such a conclusion challenges many contemporary readings of the Philosphical (...) Investigations by bringing into question conventionalism, linguistic relativism, and idealism while defending the thesis that the notion of a private psychological experience makes sense. (shrink)

The Blackwell Encyclopedic Dictionary of Business Ethics provides clear, concise and highly informative definitions and explanations of the key concepts in one of the most important fields in contemporary business.

Abstract:During recent years, the principle and practice of employment-at-will have been under attack. While progress has been made in eroding the practice, the principle still governs the philosophical assumptions underlying employment practices in the United States, and, indeed, EAW has been promulgated as one of the ways to address economic ills in other countries. This paper will briefly review the major critiques of EAW. Given the failure of these arguments to erode the underpinnings of EAW, we shall suggest new avenues (...) for approaching employment issues to achieve the desirable goal of employee dignity and respect. (shrink)

1993: GE’s NBC News unit issues an on-air apology to General Motors for staging a misleading simulated crash test. NBC agrees to pay GM’s estimated $1 million legal and investigation expenses.February 1994: The Justice Department brought a criminal antitrust case against General Electric, accusing it of conspiring with an arm of the South African DeBeers diamond cartel to fix prices in the $600 million world market for industrial diamonds. General Electric denied wrongdoing...

Until recently, business issues in healthcare organizations were relatively insulated from clinical issues, for several reasons. The hospital at earlier stages of its development operated on a combination of charitable and equitable premises, allowing for providing care to be separated from financial support. Physicians, who were primarily responsible for clinical care, constituted an independent power nexus within the hospital and were governed by their own professional codes of ethics. In exchange for a great deal of control over their conditions of (...) practice, they took almost complete responsibility for patient care. Thus clinical and professional ethics could to some extent be compartmentalized from the business issues—a much easier feat when, as in much of the last few decades, virtually all care was reimbursed from some source or other. In addition, many HCOs were not categorized or treated as businesses, although of course they were presumed to be governed by the same expectation for good management as any other organization. (shrink)

One’s philosophical points of view, which form the bases for assumptions that we bring to management theory and practice matter, and matter deeply, to management thinking and corporate behavior. In this paper I outline three related threads of philosophical conversations and explain how they are important in management theory and practice: the “linguistic turn” in philosophy, deriving from the later writings of Ludwig Wittgenstein, a social constructionist perspective: a set of theories at least implicitly derived from the linguistic turn in (...) philosophy, and the notion of the impartial spectator. I then use these three theories to analyze the idea of the corporation, corporate cultures and corporate mission statements, stakeholder theories and their differences, and the limitations of the popular notion of “corporate social responsibility.” I conclude that how one frames these management ideas makes a difference, a difference in theory and in practice. (shrink)

Despite the fact that a number of economists and philosophers of late defend insider trading both as a viable and useful practice in a free market and as not immoral, I shall question the value of insider trading both from a moral and an economic point of view. I shall argue that insider trading both in its present illegal form and as a legalized market mechanism undermines the efficient and proper functioning of a free market, thereby bringing into question its (...) own raison d'etre. It does so and is economically inefficient for the very reason that it is immoral. Thus this practice cannot be justified either from an economic or a moral point of view. Insider trading is the reverse of speculation. It is reward without risk, wealth generated — and injury done to others — by an unfair advantage in information ... [T]he core principle is clear: no one should profit from exploitation of important information not available to the public. (shrink)

The most serious ethical challenge facing multinational corporations in the next century is their exportation of the mental model of Western-style capitalism. This model promises that industrialized free enterprise in a free trade global economy, where businesses and entrepreneurs can pursue their interests competitively without undue regulations or labor restrictions, will produce growth and well-being, i.e., economic good, in every country or community where this phenomenon is allowed to operate. This paper points to some limitations to this model and illustrates (...) how multinational corporations might meet this challenge. (shrink)

_Employment and Employee Rights_ addresses the issue of rights in the workplace. Although much of the literature in this field focuses on employee rights, this volume considers the issue from the perspective of both employees and employers. Considers the rights of both employees and employers. Discusses the moral and legal landscape and traditional assumptions about right in employment. Investigates arguments for guaranteeing rights, particularly for employees, which are derived from relational, developmental, and economic bases. Explores new dimensions of employment including (...) a model that incorporates growing workplace diversity, builds upon our understanding of the legal landscape, and expands upon our justifications for recognizing and protecting rights. (shrink)

"Keeping pace with recent developments, almost a third of the Eighth Edition is new. Ethical Issues in Business offers a mix of case studies - nine of which are new to this edition - and theoretical articles - ten of which are new to this edition. The articles range from classics in moral theory and economics, to modern commentaries by business executives."--BOOK JACKET.

The first issue of Business Ethics Quarterly was launched in 1991. At that time there were few general principles that could serve as guidelines for global business. However, since 1991 a plethora of such principles have been developed to serve as guidelines and evaluative mechanisms for global corporate responsibilities. But operationalizing these principles in practice has been a challenge for most transnational corporations and even for smaller, more local enterprises. This is because, in some cases, the principles ask too much (...) of companies. In other cases, the principles are ambiguous. And in still other cases,the principles, written by and large from a Western, rights-based perspective, cannot be operationalized in some cultural or religious settings. In this paper I will outline a series of dilemmas multinational enterprises face in the global market place, even when they sincerely sign on to one or another set of principles. These problems are not insurmountable, but in the imperfect world of commerce, require that our expectations of corporate responsibilities be satisficing rather than absolutist. (shrink)

This article presents a response to Richard Rorty's paper "Is Philosophy Relevant to Business Ethics?" The author questions Rorty's views on the depreciation of the role of philosophy in applied ethics, and outlines four reasons why philosophy retains its relevance. The author addresses the role of moral reasoning in the development of the moral imagination. The author also concludes that humans have the means necessary to make moral progress and are capable of moral reasoning, and need only to develop a (...) strong moral imagination. (shrink)

In this paper we set out to explore the claims that corporate social responsibility (CSR) itself is little more than a complementary extension of the project of coloniality initiated by the Enlightenment (e.g. Banerjee 2019). We will not dispute that claim. Rather we will develop three points. First, we will apply a non-linear, systems approach to demonstrate how we all, of any color, ethnic origin or historical location are all part of an interconnected interrelated sets of systems—what some thinkers call (...) a complex adaptive system or systems (e.g., Miller and Page 2007) so that dismissing or degrading any particular ethnic, gender, or racial group is dismissing part of our history and origin. Secondly, we will argue that Enlightenment, coloniality, as well as neo-coloniality, and decoloniality sprung up from the Enlightenment projects themselves. Thus, the very critiques of Enlightenment, accurate as they may be, evolved from that perspective and have to be taken into account even in those critiques. Third, what appears to be an “either-or” – that is, that commerce should stick to business and not engage in political activities (forms of neocolonialism) or accept these business-political activities despite critiques – is not a simple choice. Rather, conceding that commerce and political systems cannot be nicely separated, we will provide some principles or ways to evaluate these activities, seemingly ubiquitous particularly in emerging economies. (shrink)

With the recent rash of mergers and friendly and unfriendly takeovers, two important issues have not received sufficient attention as questionable ethical practices. One has to do with the rights of employees affected in mergers and acquisitions and the second concerns the responsibilities of shareholders during these activities. Although employees are drastically affected by a merger or an acquisition because in almost every case a number of jobs are shifted or even eliminated, employees at all levels are usually the last (...) to find out about a merger transaction and have no part in the takeover decision. Second, if shareholders are the fiduciary beneficiaries of mergers and acquisitions, then it would appear that they have some responsibilities or obligations attached to these benefits, but little is said about such responsibilities. In this essay I shall analyze these two ethical issues, and at the end of the paper I shall suggest how they are related. (shrink)

With the demise of Marxism and socialism, the United States is becoming a model not merely for free enterprise, but also for employment practices worldwide. I believe that free enterprise is the least worst economic system, given the alternatives, a position I shall assume, but not defend, here. However, I shall argue, a successful free enterprise political economy does not entail mimicking US employment practices. I find even today in 1998, as I shall outline in more detail, these practices, when (...) consistently carried out, by and large erode trust in the workplace, they are, on balance unfair to workers and managers, and, if Jeffrey Pfeffer is correct, they do not maximize long-term corporate earnings or growth. Getting clear on US employment practices and their weaknesses may help to shape other models for employment that neither contravene free enterprise nor are degrading to workers. (shrink)

The global expansion of free enterprise has been underway for some time, and the challenges for global companies are well‐known. Companies often operate in economically blighted communities and in corrupt environments without a rule of law. At the same time Western‐based global corporations are under increasing public pressure to take on responsibilities to these communities that are often beyond their expertise or economic purview. For example, at the 2008 Davos meetings Bill Gates proposed the idea of “creative capitalism, challenging business (...) to ‘meet the needs of the poor in ways that generate profits’...” In what follows I shall argue that while there have been many successful global ventures, the Gates’ challenge requires academics and managerial leaders to rethink their mind sets and expand their thinking about what we mean by globalization, poverty, and the multiple dimensions of free enterprise. (shrink)