This paper argues that moral thinking is an essential management capability which strengthens organizations and contributes to their performance in the marketplace. The paper explains what moral thinking is, and addresses the most common reasons for considering it inappropriate or irrelevant to managerial practice. The argument provides a compelling rationale for the corporate ethics initiatives undertaken in recent years.

The central role of corporate leaders in setting the ethical tone for their organization is widely accepted. Four well known former CEOs are profiled to illustrate how their managerial ethical leadership not only influenced their firms but also the practice of business. Insights are drawn from their writings and speeches as well as other sources which examine demonstrated leadership abilities. Their behavior not only provides examples of leadership but also is exemplary from an ethical point of view. The article concludes with five common themes that describe these individuals and the essence of managerial ethical leadership.

The main purpose of this paper is to defend traditional ethical theory (utilitarianism and deontology) for its application in business against a more recent model consisting of utility, rights, and justice. This is done in three parts: First, we provide a conceptual argument for the superiority of the traditional model; second, we demonstrate these points through an examination of three short cases; and third, we argue for the capability of the traditional model to account for universais and particulars in ethics.

In the recent case of Nike v. Kasky both sides argued that their standard for distinguishing commercial speech from political speech would create the better policy for ensuring accurate and complete disclosure of social information by corporations. Using insights from information economics, we argue that neither standard will achieve the policy goal of optimal truthful disclosure. Instead, we argue that the appropriate standard is one of optimal truthful disclosure—balancing the value of speech against the costs of misinformation. Specifically, we argue that an SEC-sanctioned safe harbor available under a closely supervised system for social reporting will bring about optimal truthful disclosure. The scheme is intended to enhance stakeholder confidence in corporate social and political commentary, while at the same time encouraging corporations to provide accurate information in a fair playing field of public debate.

This paper re-examines the import of Rawls’s theory of justice for private sector institutions in the face of the decline of the welfare state. The argument is based on a Rawlsian conception of justice as the establishment of a basic structure of society that guarantees a fair distribution of primary goods. We propose that the decline of the welfare state witnessed in Western countries over the past forty years prompts a reassessment of the boundaries of the basic structure in order to include additional corporate institutions. A discussion centered on the primary good of self-respect, but extensible to power and prerogatives as well as income and wealth, examines how the legislator should intervene in private sector institutions to counterbalance any unfairness that results from the decline of the welfare state.

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.

The speed and degree to which e-commerce is infiltrating the very fabric of our society, faster and more pervasively than any other entity in history, makes an examination of its ethical dimensions critical. Though ethical lag has heretofore hindered our explorations of e-commerce ethics, it is now time to identify and confront them. In this paper we define e-commerce and describe the characteristics that set it apart from traditional brick and-mortar business. We then examine the ethical foundation of e-commerce, focusing on the question, “Is there a special e-commerce ethics?” Our answer is “no.” We support our answer by showing that the current issues in e-commerce ethics and brick-and-mortar business are fundamentally the same, but that e-commerce issues have different manifestations and scope. We then demonstrate that ethical principles and rules in e-commerce and brick-and-mortar business are fundamentally the same, but have different manifestations at the most specific level. We elucidate this point by discussing the use of personal information and the opt-in, opt-out debate. We conclude with a call for research on trust, a key value in the success of e-commerce.

This article addresses the nature of the interface between corporate sustainability and corporate identity at both the strategic and instrumental levels. We developed an empirical qualitative study in two countries in Southern Europe addressing retailers who are actively engaged in pursuing corporate-sustainability strategies. Data sources include in-depth interviews, observations, and physical artifacts of identity (digital and printed documents). Findings reveal that, at a strategic level, corporate sustainability is embedded in corporate identity reflecting the company’s strategy. Companies also instrumentally use corporate identity to operationalize corporate sustainability strategies. Organizations show different patterns in the way they bridge corporate sustainability and identity. The contributions of this article are threefold: it reports the symbiotic relationship between corporate sustainability and corporate identity; it scrutinizes how corporate sustainability and corporate identity are integrated at the strategic and operational levels; and it establishes distinct patterns at the interface of corporate sustainability and corporate identity.

In this study, we investigate how different internal and external stakeholders influence the innovation strategy of a social enterprise to adopt product, process, and partnership innovations that impact either social or commercial performance. Relying on survey data from a sample of work integration social enterprises, we find that in situations of turbulence, administrative leaders do not significantly influence the innovation strategy of a social enterprise. Instead, board members and external stakeholders seem to play a role. Our study contributes to strategic and business ethics research on social enterprises and, more broadly, to the literature that explores how business organizations combine social value creation and wealth generation.

The oft-cited privacy paradox is the perceived disconnect between individuals’ stated privacy expectations, as captured in surveys, and consumer market behavior in going online: individuals purport to value privacy yet still disclose information to firms. The goal of this paper is to empirically examine the conceptualization of privacy postdisclosure assumed in the privacy paradox. Contrary to the privacy paradox, the results here suggest consumers retain strong privacy expectations even after disclosing information. Privacy violations are valued akin to security violations in creating distrust in firms and in consumer (un)willingness to engage with firms. This paper broadens the scope of corporate responsibility to suggest firms have a positive obligation to identify reasonable expectations of privacy of consumers. In addition, research perpetuating the privacy paradox, through the mistaken framing of disclosure as proof of anti-privacy behavior, gives license to firms to act contrary to the interests of consumers.

This response to Dobson and White's call for a feminine firm argues that such a concept is based on a misinterpretation of Gilligan's research. Moreover, virtue ethics and feminine ethics do not share a common approach to nurturing relationships or the moral orientation of care. Acknowledging the worthwhile goals of Dobson and White's endeavor, the feminist firm is presented as offering greater potential to achieve these goals.

Business ethicists are eager to connect the ethical treatment of stakeholders with financial rewards. However, little attention has been paid to the cultural and industry context that influences how stakeholders are regarded by the firm, and how innovative strategies for engaging stakeholders can help a firm outperform its competitors. By reconnecting stakeholder theory to its roots in the field of strategy, we provide a framework for understanding the dynamic interplay between stakeholder relationships, innovation, and competitive advantage. The result is a set of testable propositions aimed at better characterizing when and how “ethics pays” (Paine 2003).

In recent years, two topics have made prominent debuts in the management literature—“virtual” corporations and trust within and among organizations. These two themes are related in that trust is important to the success of the virtual corporation. This article argues that confidence in the development of virtual corporations may be premature because of what we call the Virtual Corporation Paradox. This paradox can be succinctly stated: the short-term, transient deal-making on which the efficiency of the virtual corporation rests greatly impedes the development of the mutually trusting and cooperative relationships on which its success depends. We examine both economic and sociological explanations for the emergence of trust in similar situations and find both deficient. We conclude that the success of virtual corporations will ultimately depend on an ethics-based form of corporate “character” that allows firms to develop trusting relationships without the usual safeguards or social norms.

We review recent developments in ethical pluralism, ethical particularism, Kantian intuitionism, rights theory, and climate change ethics, and show the relevance of these developments in ethical theory to contemporary business ethics. This paper explains why pluralists think that ethical decisions should be guided by multiple standards and why particularists emphasize the crucial role of context in determining sound moral judgments. We explain why Kantian intuitionism emphasizes the discerning power of intuitive reason and seek to integrate that with the comprehensiveness of Kant’s moral framework. And we show how human rights can be grounded in human agency, and explain the connections between human rights and climate change.

Teachers and managers strive to be determining causes, leading those whom we instruct or supervise to act in some ways rather than others. If we are seeking to be causes, then we ought to admit our mission and monitor how well we are doing. Yet, instead of owning up to our failures, we hide behind claims such as “some students are unteachable because their habits are bad,” or “we have little time to affect our students who are being indoctrinated by other business school professors to believe that narrow self-interest does and should rule the world.” Perhaps it is we who have failed our students, not the reverse. Examining our business ethics pedagogy is crucial because regulation is not by itself going to prevent future scandals. This paper presents three structures for teaching business ethics in a liberal arts, transformative way. While no pedagogy comes with a guarantee, these approaches at least have the potential to transform students because they force students to have “some skin in the game.”

In this article we provide an overview of the literature on ethics and social responsibility of developing country multinationals (DMNEs) and an introduction to the contributions of the articles in this special section. With the rising influence of DMNEs in the global economy, there is increasing interest in applying descriptive, explanatory, and normative theories to understand the ethics and CSR behavior and practices of DMNEs. This article provides an overarching review of perspectives first from ethics, CSR, and business and society, and then from international business and management scholarship. We identify limits and gaps in the current literature and show how the articles in our special section contribute to fill these gaps. We highlight the emerging, transitional and distinct features of DMNEs that are different from their domestic and foreign counterparts. The very limited extant literature and the contributions of this special section underscore the influence of institutional voids and duality that appear to prompt DMNEs to pursue CSR as a signaling mechanism to gain legitimacy, overcome liabilities of foreignness and obtain a “license to operate” in developed countries. We outline the key contributions from the articles in this special section and discuss the future research agenda espoused by the issues raised in these articles.

The major aim of this article is to show that John Rawls’s theory of justice cannot be applied effectively to questions of business ethics and corporate governance. I begin with a reading of Rawls that emphasizes both the critical and pragmatic nature of his theory. In the second section I look more closely at the notion of society’s “basic structure” and its place within Rawls’s theory. In the third section, I argue that “the corporation” cannot be understood as part of this basic structure and is not, therefore, a subject of justice for Rawls or his interpreters. Finally, I show that Rawls’s inability to speak to the corporation is a weakness, regardless of one’s particular view on the corporation. I conclude by considering what Rawls’s theory helps us to understand about the problems involved in integrating corporate governance, business ethics, and political philosophy.

In this qualitative study we examine the role of caste, class, and Dalit janitorial labor in the aftermath of floods in Chennai, India, in 2015. Drawing from a variety of sources including interviews, social media, and news coverage, we studied how Dalit (formerly known as ‘untouchable’) janitors were treated during the performance of janitorial labor for cleaning the city. Our study focuses on two theoretical premises: (a) caste-based social relations reproduce inequalities by devaluing Dalit labor as ‘dirty work’; and (b) Dalit subjectivities, labor, and sufferings including occupational hazards become invisible and ungrievable forcing Dalits to provide a counter narrative to preserve the memory of their trauma and dignity injuries. We find that the discursive construction of janitorial labor as dirty work forced Dalit janitors to work in appalling and unsafe working conditions. Janitors suffered several dignity injuries in terms of social exclusion and a lack of recognition for their efforts and accomplishments. Specifically, we examine various ways through which caste, dirty work, and dignity intersected in the narrative accounts of Dalit janitors. We also explore memory and how processes of remembering and forgetting affected the dignity claims of Dalit janitors.

Employee governance, which includes employee ownership and employee participation in decision making, is regarded by many as morally preferable to control of corporations by shareholders. However, employee governance is rare in advanced market economies due to its relative inefficiency compared with shareholder governance. Given this inefficiency, should employee governance be given up as an impractical ideal? This article contends that the debate over this question is hampered by an inadequate conception of employee governance that fails to take into account the difference between employees and shareholders. It offers a different, more adequate conception of employee governance that recognizes a sense in which employees currently have some ownership rights. The argument for this conception of employee governance is built on an expanded understanding of the ownership of a firm. The article also suggests new strategies for strengthening the role of employees in corporate governance.

This paper argues that the personal interview method is particularly appropriate for the kind of exploratory and complicated theory-building research that ethical decision-making, as a topic, represents at present. In doing so, it examines the key tasks of the ethics researcher, the suitability of interviews for obtaining the kind of data needed to accomplish these tasks, and the ensuing problems faced by the interview methodologist. It concludes with suggestions for enhancing the validity and reliability of interview-based ethics research.