A significant effect of China’s rejection of a planned economy for a free market is the stimulus this has given to discussion of the relationship between morality and the market. Some Chinese believe that the introduction of a market economy has had a negative effect on public morality. Others disagree and maintain that it has had only a positive effect. Besides this particular debate there are two others. In the first of these debates, it is maintained on the one side that conduct in the market is amoral and essentially contractual or transactional in nature: a boundary must be drawn between economic conduct and conduct in other spheres of social life. Against this it is argued that ethical norms apply equally to all aspects of social life including the economy. In the second debate one side holds that the market engenders its own “ethical” norms. In opposition it is argued that the moral categories articulated in moral philosophy are applicable to behaviour in the market.

After exploring MacIntyre’s (1985) practice—institution distinction, the article demonstrates its applicability to business-as-practice and to corporations as institutions. It then considers the implications of MacIntyre’s schema to ethical schizophrenia, to the claim that the market is a source of the virtues and to the opposite claim that capitalism corrodes character. A fully worked out modern virtue ethics, based on MacIntyre’s work, is then established and the claim is made and substantiated that such an understanding of MacIntrye’s work revitalises it and makes it directly applicable to business and to corporations.

This article argues that the important organizational values to study are organizational moral values. It identifies five moral values (honest communication, respect for property, respect for life, respect for religion, and justice), which allow parallel constructs at individual and organizational levels of analysis. It also identifies dimensions used in differentiating organizations’ moral values. These are the act, actor, person affected, intention, and expected result. Finally, the article addresses measurement issues associated with organizational moral values, proposing that content analysis is the appropriate measurement technique to be used for an organization-level conception of moral values.

This article puts forth the thesis that the contractualist account of moral justification affords a powerful reply in business contexts to the question why a business person should put ethics above immediate business interests. A brief survey of traditional theories of business ethics and their approaches to moral motivation is presented. These approaches are criticized. A contractualist conception of ethics in the business world is developed, based on the work of John Rawls and Thomas Scanlon. The desire to justify our choices in terms that others can be reasonably expected to accept, or at least in terms that others cannot reasonably reject, is identified and differentiated from other accounts of motivation. It is this desire that constitutes the core motive to be moral in business on the contractualist conception. Implications of this contractualist conception for the theory and practice of business ethics are then discussed.

Tom Carson’s recent paper on “Deception and Withholding Information in Sales” contains a critique of my contribution to sales ethics. In this response I outline the approach I develop in two earlier papers and address the four criticisms Carson makes. These criticisms are largely based on a misunderstanding of my position. I suggest that our fundamentally different approaches to applied ethics may lie at the root of Carson’s misunderstanding. Carson uses what I call a theory-application model in which the search for justification in terms of fundamental rules is central, while I attempt to contextualize ethical judgments and consider alternative ways of structuring social roles. In contrasting these approaches I raise the question of which way of doing applied ethics is likely to be more fruitful.