The private provision of security services has attracted a great deal of recent attention, both professional and popular. Much of that attention suggests the questioned moral legitimacy of the private vs. public provision of security. Linking the literature on moral legitimacy and responsibility from new institutional and stakeholder theories, we examine the relationship between moral legitimacy and responsible behavior by both private security companies (PSCs) and their stakeholders. We ask what the moral-legitimacy-enhancing responsibilities of both might be, and contribute to both literatures and their managerial implications by detailing the content of those responsibilities, emphasizing the reciprocal nature of moral obligations. We suggest that the moral legitimacy of the industry depends upon responsible behavior by both PSCs and their stakeholders.

This essay attempts to provide a useful research agenda for researchers in both strategic management and business ethics. We motivate this agenda by suggesting that the two fields started with similar interests, diverged, and are beginning to converge again. We then identify several streams that hold particular promise for developing our understanding of the relationship between strategy and ethics: stakeholder theory, managerial discretion, behavioral strategy, strategy as practice, and environmental sustainability.

If, like Hegel and Dewey, one takes a historicist, anti-Platonist view of moral progress, one will be dubious about the idea that moral theory can be more than the systematization of the widely-shared moral intuitions of a certain time and place. One will follow Shelley, Dewey, and Patricia Werhane in emphasizing the role of the imagination in making moral progress possible. Taking this stance will lead one to conclude that although philosophy is indeed relevant to applied ethics, it is not more relevant than many other fields of study (such as history, law, political science, anthropology, literature, and theology).

Although prior work has shown that employees with ethical leaders are less likely to engage in deviant or unethical behaviors, it is unknown whether all employees respond this way or to the same extent. Drawing on social learning theory as a conceptual framework, this study develops and tests hypotheses suggesting that two follower characteristics—conscientiousness and core self-evaluation—moderate the negative relationship between ethical leadership and workplace incivility. Data from employees of a U.S. public school district supported our predictions. Implications and future research directions are discussed.

This paper concerns the influence of gender on a firm’s moral and economic performance. It supports Thomas White’s intimation of a male gender bias in the value system underlying extant business theory. We suggest that this gender bias may be corrected by drawing on the concept of substantive rationality inherent in virtue-ethics theory. This feminine-oriented relationship-based value system complements the essential nature of the firm as a nexus of relationships between stakeholders. Not only is this feminine firm morally desirable, but it is also economically more efficient in that trust becomes a more feasible implicit contractual enforcement mechanism. In an organizational context, therefore, from both a moral and an economic perspective, long established economic man is dominated by nascent economic woman.

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.

The paper examines the contribution of the French philosopher Michel Foucault to the subject of ethics in organizations. The paper combines an analysis of Foucault’s work on discipline and control, with an examination of his later work on the ethical subject and technologies of the self. Our paper argues that the work of the later Foucault provides an important contribution to business ethics theory, practice and pedagogy. We discuss how it offers an alternative avenue to traditional normative ethical theory that both converges and diverges with other extant alternatives. By situating ethics as practices of the self, and by demonstrating the conditions under which freedom in organizations can be exercised, Foucault’s ethics attempt to connect an understanding and critique of power with a personal project of self. He therefore provides a theory of subjectivity that potentially informs a reshaping of contemporary virtue ethics theory, value-based management, and business ethics teaching.

Most economists are committed to some version of egoism. After distinguishing among the various sorts of egoistic claims, I cite the empirical literature against psychological egoism and show that attempts to account for this data make these economists’ previous empirical claims tautological. Moreover, the assumption of egoism has undesirable consequences, especially for students; if people believe that others behave egoistically, they are more likely to behave egoistically themselves. As an alternative to egoism I recommend the commitment model of Robert Frank.

The equivalent of egoism at the organizational level is that business firms seek (should seek) to maximize profits. I present arguments to show that a conscious attempt by managers to maximize profits is likely to fail. A committed altruism is more likely to raise profits. I suggest that a firm should take as its primary purpose providing meaningful work for employees.

Consumer surveys indicate that concerns about privacy are a principal factor discouraging consumers from shopping online. The key public policy issue regarding privacy is whether the US should follow its current self-regulation course (where the FTC encourages websites to obtain private “privacy web-seals”), or whether a European style formal legal regulation approach should be adopted in the US.

We conclude that the use of assurance seals has worked reasonably well and websites should be free to decide whether they have a privacy seal or not. Given the narrow scope and the wide variety among these seals, we do argue that the seals should commit themselves to the key features of a good privacy policy and that an opt-in provision be required. We believe that insufficient evidence exists to propose formal Government mandated Internet privacy regulation.

The challenge that confronts corporate decision-makers in connection with global labor conditions is often in identifying the standards by which they should govern themselves. In an effort to provide greater direction in the face of possible global cultural conflicts, ethicists Thomas Donaldson and Thomas Dunfee draw on social contract theory to develop a method for identifying basic human rights: Integrated Social Contract Theory (ISCT). In this paper, we apply ISCT to the challenge of global labor standards, attempting to identify labor rights that could serve as guides for corporations producing or outsourcing outside of their home country. In addition to identifying areas of universal agreement, we also examine whether ISCT is, in fact, a sufficient basis for determining worker rights; we seek to define the parameters of the “sweatshop” problem; we include the application and results of our ISCT analysis as applied to labor standards: the global labor rights hypernorms; and conclude that ISCT is sufficient only for rights that are universal. We also discuss whether market-driven decisions can identify the boundaries of labor rights, or at least assure that market outcomes are compatible with maintaining labor rights, in order to respond to the shortcomings of ISCT. We conclude with some comments on directions of analysis for labor rights determination.

Business ethicists have increasingly used Aristotelian “virtue ethics” to analyze the actions of business people and to explore the question of what the standard of ethical behavior is. These analyses have raised many important issues and opened up new avenues for research. But the time has come to examine in some detail possible limitations or weaknesses in virtue ethics. This paper argues that Aristotelian virtue ethics is subject to many objections because the psychology implicit within the ethic is not well-suited for analyzing some problematic forms of behavior. Part One offers a brief overview of the firm and of the good life from a virtue ethics perspective. Part Two develops a number of criticisms of this perspective.

Many companies engage in dialogue with nongovernmental organizations (NGOs) about societal issues. The question is what a regulative ideal for such dialogues should be. In the literature on corporate social responsibility (CSR), the Habermasian notion of communicative action is often presented as a regulative ideal for stakeholder dialogue, implying that actors should aim at consensus and set strategic considerations aside. In this article, we argue that in many cases, communicative action is not a suitable regulative ideal for dialogue between companies and NGOs. We contend that there is often an adversarial element in the relation between companies and NGOs, and that an orientation towards consensus can be in tension with this adversarial relation. We develop an alternative approach to stakeholder dialogue called ‘agonistic deliberation.’ In this approach, conflict and strategic considerations play a legitimate and, up to a certain point, desirable role.

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.

Ethical research on consumption has focused mainly on the obligations, principles and values guiding consumers' actions and reasons for action. In doing so, it has concerned itself mostly with such bounded contexts as voluntary simplifiers, anti-consumption movements or so-called ‘ethical consumers,’ thereby fostering an artificial opposition between ethical and non-ethical consumption. This paper proposes virtue ethics as a more apt conceptual framework for the ethical analysis of consumption because it takes into account the developmental dynamic triggered by engagement in consumption practices. We build on MacIntyre's goods-virtues-practices-institutions framework and Beabout's concept of a domain-relative practice and argue that when engaging in consumption activities, agents may pursue goods internal to practices, further their individual life narratives and contribute to the good of their communities, thus developing virtues that perfect themselves both as consumers and as ethical agents.

This article reviews four key orientations in environmental ethics that range from an instrumental understanding of sustainability to one that acknowledges the intrinsic value of sustainable behavior (i.e., sustainable resource use, conservation and preservation, rights-based perspectives, and deep ecology). It then shows that the current scholarly discourse around corporate sustainability management—as reflected in environment management (EM), corporate social responsibility (CSR), and corporate political activity (CPA)—mostly favors an instrumental perspective on sustainability. Sustainable business practices are viewed as anthropocentric and are conceptualized as a means to achieve competitive advantage. Based on these observations, we speculate about what corporate sustainability management might look like if it applied ethical orientations that emphasize the intrinsic value of nature. This discussion also includes an introduction to two articles in this special section focused on the role of the environmental manager and sustainability standards, both of which offer paths for incorporating intrinsic valuation of the environment into sustainability management.

The literatures of business ethics and international business have generally had little influence on each other. Nevertheless, the decline in the power of nation states, the emergence of non-governmental organizations, the proliferation of self-regulatory bodies, and the changing responsibilities, roles, and structure of multinational corporations make constructive engagement between these two disciplines imperative. This changing institutional landscape creates many areas of common concern. In this article, we describe the changing institutional context of global business and suggest ways in which both business ethics and international business may inform each other more fruitfully.

Should companies’ human rights responsibilities arise, in part, from their “leverage”—their ability to influence others’ actions through their relationships? Special Representative John Ruggie rejected this proposition in the United Nations Framework for business and human rights. I argue that leverage is a source of responsibility where there is a morally significant connection between the company and a rights-holder or rights-violator, the company is able to make a contribution to ameliorating the situation, it can do so at modest cost, and the threat to human rights is substantial. In such circumstances companies have a responsibility to exercise leverage even though they did nothing to contribute to the situation. Such responsibility is qualified, not categorical; graduated, not binary; context-specific; practicable; consistent with the social role of business; and not merely a negative responsibility to avoid harm but a positive responsibility to do good.

Do corporations have a duty to promote just institutions? Agreeing with Hsieh’s recent contribution, this article argues that they do. However, contrary to Hsieh, it holds that such a claim cannot be advanced convincingly only by reference to the negative duty to do no harm. Instead, such a duty necessarily must be grounded in positive obligation. In the search of a foundation for a positive duty for corporations to further just institutions, Stephen Kobrin’s notion of “private political authority” offers a promising connecting point. Political authority implies political responsibility; Political obligation, however, includes more than merely not doing any harm—it is essentially positive obligation. The implications of the new political responsibilities of multinational corporations may even go far beyond the particular duty to promote just institutions; they may be symptomatic for a much more profound shift from an individual to a collective age.

The multitude of corporate scandals has prompted research that examines factors that influence an individual’s engagement in unethical behavior. This article extends previous research by examining the psychological processes through which unethical behavior may occur. We develop and test a model that uses self-regulation theory to explain and predict how and under what circumstances individuals are likely to engage in unethical behavior. Results from data collected from 107 professionals at two points in time and 205 employees from various industries confirm that job insecurity increases emotional exhaustion, which subsequently impairs an employee’s ability to activate self-regulating processes to avoid engaging in unethical behavior. However, the link between job insecurity and emotional exhaustion as well as the mediated relationship between job insecurity and unethical behavior through emotional exhaustion are weaker for employees who have high adaptability and stronger for employees who are highly embedded in their organization.

Recent developments in personality research point to an alchemy of character composed of five elements: extroversion, agreeableness, conscientiousness, neuroticism, and openness to experience. This paper surveys this research for its implications to the study of the virtues in organizational ethics. After subjecting each of these five character traits to several tests as to what constitutes a virtue, the empirical evidence supports an organizational virtue of agreeableness and an organizational virtue of conscientiousness. Although the empirical evidence falls short, an argument is mobilized on behalf of an additional organizational virtue of openness to experience.