Historically the professions have maintained a commitment to what MacIntyre calls the “internal goods of practice” as opposed to the external goods of practice associated with monetary compensation and activities directly related to monetary compensation. This paper argues that the growing financialization of the economy has fostered a climate of managerial control exemplified in the proliferation of auditing and procedures associated with auditing. Accordingly professionals, whose organizational function includes responsibility for the internal goods, are thereby frustrated in so far as they have been forced to become preoccupied with performance indicators and the goals of financial efficiency imposed by hierarchies founded on managerial expertise rather than professional achievement and competence. A reaffirmation of professional commitment to the internal goods may well require a communitarian approach that entails a reorganization of society around the common good rather than the efficiency ethos that has displaced it.

The paper of Klaus Leisinger is a comprehensive description and reflection on the role and responsibilities of key stakeholders to complex and urgent issues, and suggests novel approaches such as stakeholder collaborations for Global Health. Most corporations have, until recently, focused on a small set of stakeholders in regard to creating corporate value. Increasingly, however, corporations are facing broad ranging and complex issues. To deal with them, they realize that their present business model might be too narrow. To improve the quality of life of poor patients in low-income countries, a broader set of stakeholders needs to be included in new and innovative ways.

The analysis of narrative processes and metaphorical language are the topics generally focused on by business ethics researchers interested in the work of Paul Ricœur. Yet his work on political questions also applies to the ethical issues associated with organizations. Ricœur’s ethical enterprise can be expressed as a triad composed of teleological, deontological, and sapiential levels, associating ostensibly opposing positions of Aristotelian and Kantian origin. In this study, I examine politics, economics, and ethics in their dialectic relation as established by Ricœur. Against a vertical, mechanistic, and axiologically neutral vision of management, he opposes the two conceptual pairs of conviction/imagination and ideology/utopia as well as a superior definition of justice associating reciprocal indebtedness and mutual disinterestedness. Through this analysis, it becomes clear that the vertical, hierarchical nature of politics tends to undermine the horizontal interactions necessary to procure just institutions in society. And any business ethic that does not acknowledge political tensions will be mute. What is needed instead is practical wisdom that is developed through interaction, and often through conflict, involving all the different players.

The market-based innovation known as assisted living (AL) has changed the landscape of long-term care in the US. Using Edgar Schein’s three-level conceptual framework of organizational culture and data from a two-year qualitative study of five AL facilities located in suburban Philadelphia, we argue that misalignments among publicly stated values, material artifacts, and underlying assumptions can create a climate that fosters ethical tension. Drawing on forty-five in-depth interviews with staff at all levels, we derive five operational assumptions that guide behavior in the facilities included in our study, and we describe how facility artifacts and espoused values give rise to ethical tensions and, at times, ethical violations. The findings highlight the imperative for providers and managers in all industries to look beyond the façade of artifacts and espoused values to underlying assumptions, and to recognize that these three levels must be aligned in order to create and sustain a culture in which ethics is a visible and enduring element and where ethical conduct is encouraged on an everyday basis.

This study examines whether reputable analysts and brokerage houses as thinker-driven middlemen led corporations (doers) to engage in CSR by investigating the causal relation between CSR and analysts and brokerage houses’ reputations. While theory of information asymmetry predicts that corporations with higher level of CSR tend to attract more reputable analysts and brokerage houses such that they can disseminate valuable information to outside investors, the social pressure theory expects corporations, which receive coverage from more reputable analysts and brokerage houses, tend to have higher CSR. Our findings suggest that CSR activities per se do not attract experienced analysts and reputable brokerage houses. Instead, we find that corporations which are covered by more experienced analysts and reputable brokerage houses tend to increase their CSR activities, indirectly supporting the social pressure hypothesis based on thinker-led-doer model. In addition, we find that corporations tend to have higher CSR strengths, lower CSR concerns, and increased CSR components of diversity and product when they are covered by more reputable analysts and brokerage houses. We interpret these findings are supportive of the social pressure hypothesis, rather than the information asymmetry hypothesis.

This paper examines the collective fraudulent behaviors taking place during the residential real estate bubble in the United States from 2002 to 2006 and the influence of others’ choices on decision making leading to a herd mentality. The antecedents of collective fraud are discussed in terms of the sociological theory behind human herding and the fraudulent behaviors during the real estate bubble are examined. Using archival witness testimony as a primary basis for analysis, this paper argues that without widespread collective fraud, the bubble may not have developed and the herd mentality may have dissipated without the consequences of financial disaster. The aim of an analysis of this nature is to offer a plausible explanation of some of the preconditions to the event under study.

Trust in leadership is at all all-time low and the impact on organizational behavior and performance cannot be ignored or denied. As leaders, there is a way for you to reverse this trend. You can decide to establish and sustain trust in the workplace—by getting naked—not in the physical sense, but from the perspective of being authentic and transparent. Earning the trust and loyalty of those you are privileged to lead lays the groundwork for a high performing, motivated, and, engaged culture . . . a definitive competitive advantage. Needless to say, culture is always a reflection of our leadership values and behavior. Through our words, decisions, and behavior, the culture is “sculpted.” In every case, culture is created either by intentional design or by default. If you aspire to make a profound, positive, and sustaining impact on your organization, the hearts and minds of those you lead must be earned. In a world and time where corruption, deceit, and ethical lapses are commonplace, we’ve never had a greater need for trusted, ethical leaders. If you choose to be a trusted leader, you have the opportunity to differentiate yourself and your organization and enjoy a sustainable competitive advantage while making the world a better place.

The “basic debate” in business ethics between shareholder theory and stakeholder theory has underlined the field since its inception, with wide ranging normative, descriptive, and instrumental arguments offered on both sides. We maintain that insofar as this is primarily a normative debate, clarity can be brought by elucidating how it is framed by the political philosophies of liberalism and libertarianism.With liberalism represented by John Rawls’s theory of justice and libertarianism represented by the ideas of Milton Friedman and Robert Nozick, and (separately) Edward Freeman, the paper shows that both liberalism and libertarianism can be interpreted to justify shareholder and stakeholder theory respectively. The debate between shareholder theory and stakeholder theory is framed by liberal and libertarian justifications that hinge primarily on whether and to what extent one should have exogenous or endogenous safeguards on corporate behavior. Accordingly, political philosophy turns out to be highly relevant to both business ethics and corporate governance, not because the corporation resembles the state, but because of the potential safeguards placed on the corporation by the state.

This paper is a commentary on C. Richard Panico’s article “Naked Leadership: Lead to Win Hearts and Minds.” The relationship between academic and practitioner literature on leadership is symbiotic. Both approaches have their limitations. Academic theories may be impractical and practitioner’s ideas are sometimes anecdotal and highly contextual. Yet, as the paper demonstrates, the two literatures can overlap in interesting ways.

We develop a vision of consumer responsibility in purchasing decisions in light of the Coalition of Immokalee Workers’ boycotts. These boycotts succeeded in convincing large fast food companies and national supermarket chains to pay tomato growers a penny more per pound, to improve working conditions and wages for pickers. The C.I.W. efforts to generate consumer support eschewed claims associated with rule-based obligations in favor of appeals more typically associated with virtue and caring ethics. The strategies encouraged consumers to understand the plight of tomato pickers and to extend concern in an effort to improve the world. These strategies are associated more with encouragement to contribute to the social good rather than claims that in refusing to help, consumers would fail to fulfill an obligation. Insights from virtue ethics and caring ethics are offered as a model for a broader account of consumer social responsibility.

Extortion is one of the ways that the formal economy leaks. Like bribery, extortion is not adequately documented because perpetrators are unlikely to record it. Like bribery, it raises the cost of business. It is similar to facilitating payments in that neither seeks something to which the payer is not entitled and so they may seem less harmful than outright bribery (Argandoña 2005). Both are however harmful and lead to worse forms of corruption, (Argandoña 2005). This paper explains how extorters operate and proposes a framework of what characterizes every incident.The paper examines 159 victim narratives of experiences of extortion of fifty-five postgraduate students. In a challenging economy (Tsalikis and Nwachukwu 1991) where businesses struggle for profitability, a discussion of money leakages is relevant. Understanding how extortion works will make it easier to recommend anti-extortion mechanisms. The extortion cycle proposed depicts the incidence and spread of corruption through self-perpetuation. Adopting the style of Nielsen (2003) the paper concludes by suggesting a bidirectional approach to fighting extortion—one aiming at creating a more enabling environment for ethical behaviour and another at forestalling individual unethical behaviour.

Trust is a crucial component of the relationship between a professional and those whom the professional serves because those served often lack the past experience and specialized training necessary to adequately assess the reliability of the professional’s judgments on their behalf. This article is an attempt to enhance our understanding of the conditions under which client trust of a professional is plausible. Trust, I will explain, is an emotional attitude with a unique evaluative dimension that can lead the one who trusts to anticipate that the one trusted will not betray her even when she cannot adequately assess evidence of the trusted’s reliability. It is, however, precisely because evaluating someone’s trustworthiness differs in important respects from assessing their reliability that substantive trust of a professional is implausible in cases where those served by a particular profession, for example, medicine or journalism, conceive of it as merely a commercial enterprise.

To what extent does the ethicality of an advertisement depend on the good or service being advertised? This question has engaged business ethicists for decades. Some say that an ad for something good is always good, while an ad for something bad is always bad. Others insist that advert-evaluation and product-appraisal are entirely independent of one another—the ethics of selling has nothing to do with what is being sold. In this paper I add another dimension to the debate. I do this not by offering an alternative answer to the question, but by inverting the questions itself. I ask: To what extent does our moral assessment of advertising influence our moral evaluation of particular products? I hope to show that one’s general attitude towards advertising invariably colours one’s appraisal of particular goods and services. If advertising is seen as a morally objectionable enterprise, products which may seem innocuous start to look not only useless, but baneful and corrupting. If advertising is seen as a morally, psychologically and socially valuable activity, the same innocuous products start to look fulfilling, enriching, and overall life-enhancing.

Tax avoidance practices by Multinational Enterprises (MNEs) such as Google, Microsoft, Apple, Starbucks and others are increasingly under scrutiny both from a legal and an ethical perspective. In 2013, the OECD launched an ‘Action Plan’ to encourage the G20 countries to address Base Erosion and Profit Shifting through an internationally co-ordinated approach, arguing that tax avoidance represents a risk for tax revenues and tax fairness, potentially “undermining taxpayers voluntary compliance.” The analysis of tax avoidance in the existing business ethics literature suffers from a black-and-white approach, contending either that tax avoidance is unethical (e.g. Prebble & Prebble 2010) or that, being legal, tax avoidance is also ethical (e.g. Houghton 1979). However, we believe that within tax avoidance practices there are important distinctions to be made. In this paper, we analyze the ethics of tax avoidance by identifying three different forms of avoidance practices: state-induced, strategic, and toxic avoidance. We develop a more nuanced approach reviewing both the ethical arguments in defense and the ethical issues associated with each form of tax avoidance. Finally, we propose an ethical framework that could assist executives and policy-makers in their decision-making concerning tax avoidance.

Porter and Kramer (2006, 2011) are very clear that shared value is not corporate social responsibility. Not only do they criticize the four principles on which CSR rests: moral obligation, sustainability, license to operate, and reputation, as ineffective and vague, they maintain that the only reason for companies to engage in sustainability projects is to decrease costs and thus increase profits, not because they have a corporate responsibility to help protect the environment the people who dwell in it. Because social problems cause extra costs for companies and thus decrease profits, they say that companies should have strategies that might appear to be socially responsible, but are not because the intent is to improve profits. This paper will describe the current definitions and focus of CSR, explain shared value, and then propose ways that commitment to CSR can be made public by leaders and their businesses, such as using social license to operate, third-party assessors, and new business structures.

This paper applies Alain Badiou’s ethic-of-truths to the context of business ethics. Business ethics is redefined as self-regarding, aspirational, and internal to a given firm. Firms are defined as sites. The event is a radical innovation experienced by a given firm. Ethics emerges as the challenge of fidelity to the truths engendered by the event.

In this paper the Firestone Tire & Rubber Company’s decision to continue rubber production during Liberia’s chaotic civil war is critically discussed. Evaluating whether this decision, in intent or execution, violated ethical norms for MNEs operating internationally is complicated by the fact that such norms seem not to exist. If as Windsor (2004) suggests such norms are only likely to be established through an evolutionary path then it should be asked whether Firestone’s experiences, and discussion thereof, have informed the development of norms in any meaningful way. It is argued here that conflicting conclusions about the meaning and morality of Firestone’s decisions have meant that the case study has contributed little in the way of meaningful norms for future decisions made by MNEs in conflict zones. Further it is argued that the underlying chaos of broad, violent conflict may make consensus around specific norms—and progress along the path to the development of norms—more laborious and fraught with difficulty than other policy arenas such as labor and environmental standards.

I am grateful to the Editors of for the opportunity to respond to the address given by Steve Williams at the Vincentian Conference of 2013, and published in the preceding pages. Mr. Williams takes the 2008 crisis of Western capitalism as his focus and offers at least two distinct narratives: in the first of these he outlines his experience of an extensive and complex professional, commercial world in . In a more extensive, second theme he offers some constructive suggestions as a means to recovering from this cataclysm and moving away those characteristics which he identifies as somehow causal. I will interpretively retrace Mr. Williams’s insights of the recent financial crisis. I will also comment on the challenges he outlines towards a resolution of this crisis. I draw on selected business and professional ethics positions, along with my personal experience of management practice and the pedagogy of business ethics in Western Management Schools. I delimit this appreciation of market capitalism as the systemic dominant social paradigm, the status quo.

Privacy issues surrounding the use of social media sites have been apparent over the past ten years. Use of such sites, particularly Facebook, has been increasing and recently business organizations have begun using Facebook as a means of connecting with potential customers or clients. This paper presents an empirical study of perceived privacy violations to examine factors that influence the expectations of privacy on Facebook. Results of the study suggest that the more important Facebook is to users, the more likely they are to perceive privacy violations and the more likely those violations are to be considered serious. Furthermore, how information is used is more important than the way this information is accessed.

This paper consists of the text of a key-note address to the Vincentian Business Ethics Conference in Chicago in 2013. The content is substantially as delivered; some few ad hoc comments have been removed to preserve consistency of meaning in a printed text. The speech is presented by a senior executive of a number of FTSE listed firms. It offers his insights into the 2007 / 8 financial crisis and some retrospective interpretations of both ‘what’ happened and ‘how’ this changed things. These insights, and some clear criticisms, are complemented with his suggestions for a way to reconstruct business in society less unsustainably.