This essay responds to Patricia Werhane’s 1994 Ruffin Lecture address, “Moral Imagination and the Search for Ethical Decision-making in Management,” using institutional theory as an analytical framework to explore conditions that either inhibit or promote moral imagination in organizational problem-solving. Implications of the analysis for managing organizational change and for business ethics theory development are proposed.

This special issue of BEQ presents diverse reflections on business practice from within Western patterns of theology and piety. Our goal is to help both academics and business practitioners understand the ultimate contexts in which religiously minded individuals construe their participation in business, and what these contexts then mean for moral reasoning. To keep the project manageable in scope, we have limited this foray to Western traditions, soliciting views from within representative denominations or viewpoints in Judaism, Roman Catholicism and Protestant Christianity. If this sampling is well-received, essays representing other traditions—Orthodox Christianity, Islam, Buddhism, Confucianism, Hinduism—will be sought for a later issue.

We solicited essays from nine distinct perspectives, so as to present a cross-section of religious views. One of the questions we asked our contributors was: If a person in business were to take your tradition seriously, what does it teach him or her about God’s will for how business ought to be conducted? Here we were amply rewarded in our search for diversity. The nine contributions express a wide variety of religious beliefs and dispositions: from the fervent piety of evangelicals to the moral passion of modern Judaism, from the strict rules of traditional Judaism for containing greed to the exuberant permissions to innovate afforded by Roman Catholic social teaching, from a Lutheran focus on anxiety about security to an African-American struggle with an onerous historical legacy. (An even greater diversity is represented in the enormous recent anthology, On Moral Business, reviewed at the end of this issue.) The essays forcefully point to the importance of the quest to relate faith to business practice. They provide direction for those seeking to reconnect with their traditions. And to interested observers, they provide copious data for imagining how persons adhering to these traditions might interpret the business environment in which they work.

Statutory approaches toward whistle-blowing currently appear to be based on the assumption that most observers of wrongdoing will report it unless deterred from doing so by fear of retaliation. Yet our review of research from studies of whistle-blowing behavior suggests that this assumption is unwarranted. We propose that an alternative legislative approach would prove more successful in encouraging valid whistle-blowing and describe a model for such legislation that would increase self-monitoring of ethical behavior by organizations, with obvious benefits to society at large.

A defense contractor’s inspectors used improper calibration standards when inspecting missile parts and other military products, used noncertified inspectors when inspecting such products, and used employees without top-secret clearance to work on classified projects. This created potentially life-threatening products as well as potential compromises of military secrets.

Quality-control officials on the Trans Alaska Pipeline were threatened with physical harm, demoted, and spied on in an effort to force them not to turn in negative reports or report problems. As a result, the likelihood of damaging oil spills due to improperly built and maintained equipment is heightened.

A major corporation allegedly initiated an analysis of the cost savings that would result from circumventing or reducing compliance with health, safety and environmental standards. Two officers who objected to this noncompliance cost/benefit analysis were subsequently fired.

“International business ethics” is a fairly new field of investigation compared to “business ethics,” that already has a history of 25-plus years in North America, and, even more so, to the well-established disciplines of management, economics, and ethics. This new field is emerging not because it has been designed by academics, but primarily because international business itself has dramatically developed since the 1980s. It has brought about plenty of ethical implications and challenges. To a large extent, they affect not only “international” business but also “domestic” business, which are increasingly being interconnected, and reach far beyond the commonly defined “business domain.” This process of globalization with multiple dimensions is extremely complex and rather opaque and, therefore, needs a great deal of clarification through thoughtful and courageous business initiatives as well as academic expertise.

We examine the moral and managerial significance of some empirical studies in cognitive psychology. We suggest that these results may plausibly be interpreted as expressing deontological commitments of experimental subjects, even though psychologists who discuss the results seem to suppose that they show that people are irrational consequentialists. We argue that the plausibility of our interpretation suggests how managers who wish to take seriously entrenched social views on morality might best craft corporate policy on corporate responsibility, and we suggest that the form of argument we employ may be regarded as a kind of appeal to reflective equilibrium.

To date, BEQ has published contributions mainly from philosophers and social scientists. With these essays, we hope to expand this interdisciplinary conversation. The origins of this special issue extend back to a DePaul University conference some ten years ago, when Richard T. De George asserted that there was little that philosophers could learn from religious thinkers that would be of value for the field of business ethics (De George, 1986a). The challenge nestled deep in this author, much like the proverbial irritating grain of sand in the shell of an oyster, and it continues to merit serious reflection: what can religious approaches offer to the field? Are there indeed any pearls of insight to be harvested? Is there even an academic field of what might be termed religious business ethics?

This essay discusses the place of business principles and of moral sentiments in economic success, and examines the role of cultures in influencing norms of business behavior. Two presumptions held in standard economic analysis are disputed: the rudimentary nature of business principles (essentially restricted, directly or indirectly, to profit maximization), and the allegedly narrow reach of moral sentiments (often treated to be irrelevant to business and economics). In contrast, the author argues for the need to recognize the complex structure of business principles and the extensive reach of moral sentiments by using theoretical considerations, a thorough analysis of Adam Smith’s work, and a careful interpretation of Japan’s remarkable economic success. Referring to the economic corruption in Italy and the “grabbing culture” in Russia, he further shows how deeply the presence or absence of particular features of business ethics can influence the operation of the economy, and even the nature of the society and its politics. Being an Indian himself, he warns against grand generalizations like the superiority of “Asian values” over traditional Western morals. To conclude, it is diversity—over space, over time, and between groups —that makes the study of business principles and moral sentiments a rich source of understanding and explanation.

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.

Vice is a neglected concept in business ethics. This paper attempts to bring vice back into the contemporary dialogue by exploring one vice that is destructive to employee and organization alike. Interestingly, this vice was first described by Aristotle as akolastos. Drawing extensively on the criminology literature, the findings challenge both common sense and popular images of white-collar crime and criminals. While not all instances of employee betrayal are attributable to vice, some most certainly are, and the paper offers a description of those violations of trust in which vice may play a role.

Starting from the four theses that globalization is unavoidable, ambivalent, incalculable, and can be controlled rationally, ethics has an indispensable and important role to play in the process of globalization. Indeed, a number of international documents published in the 1990s not only acknowledge human rights but also speak explicitly of human responsibilities. The author pleads for the primacy of ethics over politics and economics and, in reviewing both the Interfaith Declaration for Jews, Christians, and Muslims, and the Caux Roundtable Principles for Business Conduct, he raises the question about the foundation for the unconditional validity of particular basic ethical values and attitudes. In Küng’s view, no universal ethic, but only religion, expressed by the three prophetic religions, the mystical religions of Indian origin, and the wisdom religions of Chinese origin, can provide this foundation. Yet, religion as a spiritual resource intends to influence concrete behavior and decision making. Therefore, the author stresses the importance of a personality culture for business executives and an “ethic of responsibility” to shape business culture and institutions. He then proposes the Declaration of the Parliament of the World’s Religions Toward a Global Ethic as a basis to develop a business ethics that can be supported by believers and non- believers alike.

This discussion develops six of the most important guiding principles of classical Jewish business ethics and illustrates their application to a complex recent case of product liability. These principles are: (1) the legitimacy of business activity and profit; (2) the divine origin and ordination of wealth (and hence the limits and obligations of human ownership); (3) the preeminent position in decision making given to the protection and preservation (sanctity) of human life; (4) the protection of consumers from commercial harm; (5) the avoidance of fraud and misrepresentation in sales transactions; and (6) the moral requirement to go beyond the letter of the law. Although these Talmudic principles are clearly obligatory only for “Torah-obedient” Orthodox and Hasidic Jews, many Jews share a sensibility informed by them. Non-Jews, too, may be instructed by Jewish teachings about business ethics.

Virtues are habits of character that advance excellence in all of ones endeavors. In the Aristotelian formulation, training in the virtues is driven by a sense of the “good,” that is, by a widely shared agreement on the components of a good society and on the roles (and appropriate virtues or excellencies) of the “social animals” that energize that society. In the modern era, however, a strong sense of community has been much diminished. Freedom from the restraints of the Church and other social institutions and an emphasis on individual autonomy has fostered a different ethical perspective, a perspective in which the market enters importantly into one’s conception of the good. Does the market generate virtues which in turn sustain it? What guides the development of virtue in market economies that are entering the “information superhighway,” and a new millennium as well?

Stakeholder theory has become a central issue in the literature on business ethics/business and society. There are, however, a number of problems with stakeholder theory as currently understood. Among these are: 1) the lack of a coherent justificatory framework, 2) the problem of adjudicating between stakeholders, and 3) the problem of stakeholder identification. In this essay, I propose that a possible source of obligations to stakeholders is the principle of fairness (or fair play) as discussed in the political philosophic literature of Rawls, Simmons, and Cullity among others. The principle of fairness states that, “Whenever persons or groups of persons voluntarily accept the benefits of a mutually beneficial scheme of co-operation requiring sacrifice or contribution on the parts of the participants and there exists the possibility of free-riding, there exist obligations of fairness on the part of these persons or groups to co-operate in proportion to the benefits accepted.” In this essay I discuss the gaps in the current stakeholder literature, elucidate and defend a principle of fairness that fills the gap, compare the fairness model to other similar models of business ethics, and draw some conclusions for the future of stakeholder theory.

This article represents an attempt to organize, critique, and extend research findings on gender differences in business ethics. The focus is on two dependent variables—ethical judgment and behavioral intent. Differences in findings between student and professional groups are noted and theoretical implications are discussed. The new research provided for this article contains two benchmark studies undertaken with identical stimuli and identical measures. These studies were followed by two additional studies, using the same measures but different stimuli, as a partial replication and extension of the first two. Findings suggest that little difference exists between the genders on behavioral intent for professional groups and only minimal differences for the ethical judgment measures. Student results, however, produced more substantial differences for behavioral intention.

This essay aims to deepen our comprehension of the economic ethics of different peoples in Asia, as well as realizing a degree of cultural relativism, in order to enhance amicable economic associations. It counterbalances the conventionally strong West-oriented views which regard exotic features of non-Western economies as backward and illogical elements that disturb smooth and orthodox development and, hence, should be eradicated. The author, first, recalls a number of facts which depict the eruptive economic transformation in Asia. He, then, criticizes the imposition of Western-style development and exploitation without excluding Japan’s colonialism in Taiwan and Korea, and pleads for multiple forms of development and modernity. Economic transactions should be analysed in relation to sociocultural aspects, and, therefore, communities and ethics groups play a substantive role between the public and private sectors, the market, and individuals. For instance, small farmers in Southeast Asia, struggling with the weakness of tenant farmers and pressures of the market mechanism, developed ingenious and participatory forms of survival, increasingly supported by non-governmental organizations. Case studies from Thailand, Malaysia, and the Philippines give a vivid picture of these activities. Because the developing economies are composed of market and non-market sectors, reasonable attention should be given to the ethics beyond market principles, with particular emphasis on community as foundation.

This article first describes some of the chief contrasts between Judaism and American secularism in their underlying convictions about the business environment and the expectations which all involved in business can have of each other—namely, duties vs. rights, communitarianism vs. individualism, and ties to God and to the environment based on our inherent status as God’s creatures rather than on our pragmatic choice. Conservative Judaism’s methodology for plumbing the Jewish tradition for guidance is described and contrasted to those of Orthodox and Reform Judaism.

One example of how Conservative Judaism can inform us on a current matter is developed at some length—namely, privacy in the workplace. That section discusses (1) the reasons for protecting privacy; (2) protection from intrusion, including employer spying; (3) protection from disclosure of that intended to remain private; (4) individualistic vs. communitarian approaches to grounding the concern for privacy; and (5) contemporary implications for insuring privacy in business.

The role of the business leader is key to develop the culture of an enterprise. To exemplify its importance in the national and global context, the Muslim author from Indonesia points with admiration to Konosuke Matsushita, founder of Matsushita Electric Corporation, who already in the 1930s set up the seven ethical principles for healthy business growth, which also are commended by the Islamic imperative. Due to the current dynamic business environment, Muslims find themselves confronted with serious dilemmas and need guidance from a clearly developed Islamic business ethics. For this purpose the author offers, first, the essentials of such an ethics: the utmost importance of all sort of productive work and the distribution of wealth in society; the vocation of trade; the fundamental principles of freedom and justice for business conduct; the prescription of certain manners such as leniency, service-motive, and consciousness of Allah; and mutual consultation. He, then, presents his personal view on leadership in business. It involves three basic ingredients: an inspiring vision of high and achievable standards; a value system based on the principles of freedom and justice and promoting fairness, business integrity, and efficiency; and courage to face tough decisions while putting one’s complete trust in Allah.

It is argued that virtuous peers in work organizations have two elements of character no matter what the nature of the goods the organization produces: loyalty to common projects for their own sake and trustworthiness. Each of these is shown to be a uniquely human attribute, an element of character that contributes to a life well lived, and a trait that leads to the flourishing of an entire work community.

This paper explores an ontological approach to the issue of whether corporations, like individuals, are morally responsible for their actions. More specifically, we investigate the identity of organizations relative to the individuals that compose them. Based on general systems theory, the traditional assumption is that social collectives are more complex, variable, and loosely coupled than individuals. This assumption rests on two premises. The first is a view of the individual as simple, stable, and tightly coupled (i.e., unitary). The second premise is that the relationship between social collectives and their members is characterized by the complete inclusion of individuals in higher order systems.

We examine the social science literature that bears on these premises and conclude that they are false. The differences between organizations and individuals in the magnitude of complexity or variability appear to be minimal or nonexistent. An implication of our analysis is that individuals and organizations are coterminous and, therefore, inseparable as moral agents.

Jewish business ethics in Israel addresses two major sources of economic immorality—unbounded desire and fear of economic uncertainty—through enforcement and spiritual education. Business is seen as a path to sanctity, when time is set apart for religious study, wealth is seen as originating from God, the vulnerable are protected against fraud and theft, charity is seen as an obligation, and mercy towards debtors is tempered by justice.