Based on theoretical insights of discourse ethics as developed by Jürgen Habermas, we delineate a proposal to further develop the institutionalization of social accounting in multinational corporations (MNCs) by means of “Social Accountability 8000” (SA 8000). First, we discuss the cornerstones of Habermas's discourse ethics and elucidate how and why this concept can provide a theoretical justification of the moral point of view in MNCs. Second, the basic conception, main purpose, and implementation procedure of SA 8000 are presented. Third, we critically examine SA 8000 from a Habermasian perspective, and discuss advantages and drawbacks of the initiative. Fourth, to address the drawbacks, we introduce a “discourse-ethically” extended version of SA 8000. We show that this approach is theoretically well-founded and able to overcome some of the current deficits of the certification initiative. We demonstrate that the extended version of SA 8000 can be successfully applied on a cross-cultural basis, and that our findings have significant implications for other international ethics initiatives.

Evidence abounds that when ethics initiatives are decoupled from the actual work of organizations, ethics policies may become little more than “window dressing” (Weaver, Trevino, and Cochran 1999; Collen and Gonella 2002). We found, however, an unexpected, positive feature of decoupling in the study of a local government; namely, when organizational members engage in discussions that turn away from the letter of an ethics code they often do so to address higher ethical principles embedded in the spirit of the code. The decoupled understanding of the code in these cases becomes a symbolic, legitimating gesture grounded not in strict provisions but in creative and complex interactions. This counterintuitive explanation of decoupling capitalizes on discourse that evolves from a legalistic interpretation to rich discussions that value the multiplicity of voices within organizational life. What follows is that ethical decision making emerges as creative, dynamic, and responsive to its constituents.

We analyze corporate ethics programs as control systems, arguing that how control is exercised may have pernicious consequences and be morally problematic. In particular, the control cultivated by ethics programs may weaken employees’ ability and motivation to exercise their own moral judgment, especially in novel situations. We develop this argument first by examining how organization theorists analyze control as an instrument of management coordination, and by addressing the political implications of control. We discuss coercive and enabling control as variations that help account for the distinction between compliance-based ethics programs and values-based ethics programs. We then explore three potential drawbacks of ethics programs: the specter of indoctrination, a politicization of ethics, and an atrophy of competence. Ethics programs that rely on coercive control may undermine their own effectiveness at stemming misbehavior.

Work is a place where many adults devote significant portions of their waking lives, but it is also a place where civil liberties, including freedom of speech, are significantly constrained. I examine the regulation and control of expressive activity in and around the workplace from legal, managerial, and ethical perspectives. The focus of this article is on workplace freedom of expression: the ability to engage in acts of expression at or away from the workplace, on subjects related or unrelated to the workplace, free from the threat of discipline or discharge. I present a taxonomy of workplace-relevant acts of expression, describe the present legal status of workplace expression, review and integrate theoretical perspectives on free speech, drawn mainly from legal theory and philosophy, and critically assess the state of freedom of expression in the workplace, arguing that it is excessively and unnecessarily limited in both law and management practice.

Although business ethicists have theorized frequently about the virtues and vices of employee loyalty, the concept of loyalty remains loosely defined. In this article, we argue that viewing loyalty as a cognitive phenomenon—an attitude that resides in the mind of the individual—helps to clarify definitional inconsistencies, provides a finer-grained analysis of the concept, and sheds additional light on the ethical implications of loyalty in organizations. Specifically, we adopt the psychological contract perspective to analyze loyalty's cognitive dimensions, and treat loyalty as an individual-level construction of perceived reciprocal obligations. Based upon this perspective, we present a three-tiered framework of loyalty that provides a psychologically informed definition of the concept, specifies the variety of obligation types that loyalty can imply, and anticipates the potential for asymmetrical loyalty configurations between employers and employees. We use the framework to articulate moral issues associated with both symmetrical and asymmetrical loyalty configurations and discuss the implications of the framework for theory and practice.