This article introduces the second of two special issues on philosophical approaches to leadership ethics. In this issue, the articles draw on the works of Plato, Niccolò Machiavelli, Michel Foucault, and Jürgen Habermas to explore questions in leadership ethics concerning leaders’ self-knowledge and self-constitution and their responsibilities to their followers. The articles in this issue demonstrate the potential of philosophy to deepen our understanding of leadership and ethics.

Although there is ample evidence that stock markets react negatively to unethical corporate behavior, our understanding of the mechanisms that shape variation in these reactions across different incidents of misconduct remains underdeveloped. We propose and test a framework for explaining this variation by focusing on the role of the media in disseminating initial information about misconduct. We argue that the signaling effects of this information are important for investors because corporations have strong incentives to limit the information they disclose about misconduct. More specifically, we hypothesize that investors are more likely to react negatively when the media presents clear and credible information that misconduct occurred, that the firm was responsible for it, and that the misconduct was the result of deeper organizational problems. We also predict that information which signals that a firm has restorative capacity tempers investor reactions when the media places blame for misconduct on the corporation rather than specific individuals. We test our hypotheses in a unique sample of 345 acts of corporate misconduct in five European countries. Our findings provide broad support for our hypotheses, and we discuss implications for research on corporate misconduct and the role of non-state actors in regulating unethical corporate behavior.

An influential set of economic theories argue that the firm is a nexus of contracts that institute a hierarchy to overcome the problems of incomplete contracting in the market. However, the economic theory of the firm as a hierarchy violates the moral requirement to respect the autonomy of those who contract into the firm. The internal logic of the theory depends on a morally unacceptable abdication of a part of the employee’s capacity to set her own ends in the future. So a different theory is needed to understand the nature and purpose of the firm. The development of such a theory can benefit from business ethicists engaging with existing economic theories of the firm to explore concepts like contracts, agency, and property.

The business ethics and leadership literature has paid little attention to the analysis of virtue in the Socratic dialogues, but Plato’s account of virtue and persuasion offer relevant insights for business leaders. In the Republic, Plato’s description of five types of leaders offers a new perspective on leadership selection and development using the moral psychology of both virtuous and non-virtuous leaders. In this article, I explain Plato’s account of virtue and knowledge, his three-part moral psychology, the four cardinal virtues that virtuous leaders develop, and his continuum of five leader types. I apply Plato’s model to leadership issues in today’s corporate world and explain how the model can guide leaders, board members, and investors.

Alasdair MacIntyre’s After Virtue has made a significant impact within business ethics. This impact has centered upon applications of the virtues-goods-practices-institutions schema (Moore & Beadle, 2006). In this article, I develop an extension of the practices-institutions schema (Moore, 2017), drawing upon MacIntyre’s later text, Dependent Rational Animals. Two key concepts drawn from this text are “networks of giving and receiving” and “the virtues of acknowledged dependence.” Networks of giving and receiving are non-calculative relationships that enable participants to cope with vulnerability. These relationships are sustained by the virtues of acknowledged dependence, including just generosity, misericordia, and beneficence, virtues that direct participants to treat the needs of others as reasons for action. Drawing upon research in social network theory, I develop an example illustrating the application of these concepts within an organizational and interorganizational context. I then suggest a number of applications and research questions related to this extension of the practices-institutions schema.

This article introduces the first of two special issues on philosophical approaches to leadership ethics. In it, we show some of the ways that philosophy contributes to the study of leadership and leadership ethics. We begin with an overview of how philosophers have treated some of the ethical aspects and challenges of leadership. These include discussions of self-interest, the problem of dirty hands, responsibility, moral luck, power, gender and diversity, and spirituality. The articles in this issue draw on philosophy to explore a variety of ethical questions related to leadership and the relationships that leaders have with followers and others.

This article explores how the idea of tragedy can highlight some of the complex and paradoxical aspects of the relationship between ethics and leadership. First, it offers a comparative analysis of the way in which questions of leadership are addressed as a practical and theoretical concern when leaders are confronted with situations of moral crisis. The context is provided by a critical reading of the MBA oath, a student-led pledge that tries to establish a higher moral standard for leaders, and by Norman Bowie’s attempt to develop a Kantian theory of leadership. Second, it introduces a novel philosophical approach based upon Hegel’s interpretation of tragedy and ethical life developed in his theory of aesthetics. Through the idea of tragedy, the concept of ethical leadership could also encompass those ambiguous situations when good conflicts with good and when a possible reconciliation of a moral conflict might require the sacrifice of otherwise legitimate ends.

This article examines the place of Machiavelli’s Prince in the history of ethics and the history of leadership philosophy. Close scrutiny indicates that Machiavelli advances an ethical system for leadership that involves uprooting corruption and establishing rule of law. He draws on history and current affairs in order to obtain a realistic understanding of human behavior that forms a basis for a consequentialist ethics. While he claims a good leader might do bad things, this is in situations where necessity constrains a prince to choosing the “least bad” course of action. Furthermore, Machiavelli advocates winning the goodwill of followers through leadership as a source of power. Machiavelli’s leadership ethics has a sophistication not fully enjoyed by his reputation in management scholarship. He would not score as especially “Machiavellian” on the Mach IV. Many of his ideas contain seeds for theories that are now considered important for leadership today.

Demands have been growing upon firms to take actions in the interests of workers, the environment, local communities, and others. Firms sometimes have felt they could best discharge such responsibilities by cooperating with other firms. This, however, is suspect from the point of view of a purely economic interpretation of competition law, since interfirm agreements may raise prices and thus lower welfare for consumers. Should competition law remain focused on competition enhancing economic welfare, or be reformed to allow for acts of cooperation that are socially beneficial? To answer this question, the article provides a philosophical reevaluation of the deep-seated view that firms are merely private actors. It argues that demands of political legitimacy should also be addressed at firms cooperating together, and that standard views of democratic accountability should be broadened, introducing a model of delegated, sequential decision making which allows regulatory agencies and parliaments to control interfirm agreements.

This article aims to enhance understanding of employee anonymous online dissent (EAOD), a controversial phenomenon in contemporary digital environments. We conceptualise and scrutinise EAOD as a communicative and interactional process among four key actors: dissenting employees, online outlet administrators, audiences, and targeted organisations. This multi-actor, dialectical process encompasses actor-related tensions that may generate unethical consequences if single voices are not brought out and confronted. Appropriating a Habermasian ethical and discursive lens, we examine and disentangle three particular challenges emerging from the EAOD process: lack of accountability and potential opportunism; equal participation and resolution of actor-related tensions; and organisational participation and internalisation of dissent. We show that EAOD can initiate plural dialogue that helps co-construct and balance different voices within an informal and noninstitutionalised context for interaction and public deliberation. We conclude our inquiry by offering reflections on practical implications and a research agenda for further investigation.

Despite extensive research on organizational virtue, our understanding about factors that promote virtue within organizations remains unclear. Drawing on upper echelon theory, we examine the relationship between five top management team (TMT) characteristics and organizational virtue orientation (OVO)—the integrated set of values and beliefs that support ethical traits and virtuous behaviors of an organization. Specifically, we utilize prospectuses of initial public offering (IPO) firms and 10-K post-IPO filings to explore how TMT composition with respect to member age, tenure, education, functional background, and gender influences OVO. Additionally, we examine the moderating effects of organizational size, and argue that the more expansive structures and processes associated with larger organizations diminish the main relationships. Our findings, using two sources of data, are consistent, but somewhat mixed in their support for our hypotheses. Overall, TMT characteristics do appear to influence OVO, but in more complex and counterintuitive ways than initially expected.

This article challenges the assumption that the source of ethical leadership is the well-intentioned leader of good character. Drawing from Michel Foucault’s critical philosophy, it argues that those aspiring to lead ethically must actively constitute themselves in order to become subjects who are free to exercise ethical agency. The practices of self-care (epimeileisthai sautou) and courageous speech (parrhesia) are introduced as means by which such self-constitution can be approached. The case of US President Barack Obama’s inability to close the detention centre at Guantanamo Bay serves as an illustrative device to ground Foucault’s ideas. The argument enriches a philosophically informed rendering of ethical leadership in three ways: by highlighting the role resistance plays in any leader’s attempts to achieve ethical ends, by demonstrating the importance of an orientation of critique on the part of those aspiring to lead ethically, and by revealing the importance of followers in realizing ethical outcomes.

This article contends that Hannah Arendt’s writing can add value to current discussions on responsible leadership. Specifically, considering responsibility through an Arendtian lens offers insights that deepen our understanding of the interconnections among leadership, responsibility, and ethical action. Turning to Arendt can, therefore, increase our grasp of the complexities of leading responsibly. She shows how acting responsibly requires not only ethical forethought but also a willingness to judge for ourselves. Her emphasis on judgment enriches discussions on responsible leadership, encouraging us to think more deeply about what it might mean to act responsibly, and how such action connects with ethics. Examples of irresponsible action are explored as they concern individual and collective judgment in particular political and corporate contexts. Thus, it is by engaging with the messy realities of everyday life that an Arendtian turn can help us rethink leadership, ethics, and responsibility in new and productive ways.

A common moral argument is that shareholders have a special status because of risk when considering the duties of corporate management. The privileges of this status usually include the idea that management should adopt the goal of maximizing shareholder wealth. We argue that modern financial theory demonstrates that this argument should be modified by the recognition of a principle of desert, the shareholder desert principle (SDP). Financial theory can usefully circumscribe the duty owed to shareholders and the extent to which risk bearing justifies a claim on corporate value. When combined with the SDP, the result provides management with a guideline for what is owed to shareholders before other stakeholder non-contractual claims may be satisfied. As such, our approach provides management with some guidance through the thicket of competing stakeholder claims.

This article addresses the fundamental question of what is ethical leadership by rearticulating relations between leaders and followers in terms of “affective leadership.” The article develops a Spinozian conception of ethics which is underpinned by a deep suspicion of ethical systems that hold obedience as a primary virtue. We argue that the existing research into ethical leadership tends to underplay the ethical capacities of followers by presuming that they are in need of direction or care by morally superior leaders. In contrast, affective leadership advocates a profoundly political version of ethics, which involves people in the pursuit of joyful encounters that augment our capacity to affect and be affected by others. Instead of being led by people in leadership positions, we are led by active affections that enhance our capacity for moral action.

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 transition from modern to postmodern society leads to changing expectations about the purpose and responsibility of leadership. Habermas’s social theory provides a useful analytical tool for understanding current societal transition processes and exploring their implications for the responsibility of business vis-à-vis society. We argue that integrative responsible leadership, in particular, can contribute to the reconciliation of business with societal goals. Integrative responsible leadership understood in a Habermasian way is not only a strategic endeavor but also a communicative endeavor. An essential part of integrative responsible leadership in light of the current societal transformation processes is the facilitation of discourses about a shared base of norms and values. This is exemplified alongside current societal developments like the European migration crisis or the emerging nationalist and fundamentalist movements in some countries. We specify how and when leadership should resort to communicative action and discuss the implications for leadership.