Anomie is a condition in which normative guidelines for governing conduct are absent. Using survey data from a sample of U.S. manufacturing firms, we explore the impact of internal (cultural) and external (environmental) determinants of organizational anomie. We suggest that four internal organizational factors can generate or suppress organizational anomie, including strategic aggressiveness, long-term orientation, competitor orientation, and strategic flexibility. Similarly, we argue that external contextual factors, including competitive intensity and technological turbulence, can influence organizational anomie. We extend anomie and ethics research by considering the impact of these firm cultural and environmental factors according to whether firms are publicly-traded or privately-held. Findings demonstrate that a number of firm cultural and environmental factors can generate or reduce anomie in firms. Moreover, strategic aggressiveness, long-term orientation, and strategic flexibility influence organizational anomie differently depending on whether the firm is publicly-traded or privately-held. Theoretical and practical implications of our findings are discussed.

We extend the behavioral ethics literature to examining emotional labor as an antecedent to unethical behavior. We hypothesize that surface acting is positively associated with unethical behavior. In contrast, we produce competing hypotheses for the relationship between deep acting and unethical behavior. In Study 1, with a field sample of 123 full-time employees, surface acting was positively associated with unethical behavior, and emotional inauthenticity explained some of this relationship. In contrast, deep acting was not associated with unethical behavior. In Study 2, with a field sample of 117 full-time employees, we replicated the effect of surface acting in Study 1 and found a positive relationship between deep acting and unethical behavior via emotional inauthenticity. In Study 3, using a two-wave design, we replicated the results in Study 2 and found perceived fairness strengthens the relationship between surface acting and unethical behavior through emotional inauthenticity.

This paper deals with the ethical perceptions of business people and the current state of business ethics in east China. After surveying 800 business people in 59 enterprises and interviewing 42 chief executive officers, chairs and senior managers among them, the following conclusions can be drawn: First of all, business ethics has become a new and popular topic in east China. Second, quite a lot of business people are pessimistic about the ethical standards of their superiors and co-workers, and about the ethical climate of their enterprises. Third, more and more business leaders begin to realize the importance of business ethics. Finally, in east China, the establishment of the market economy and the improvement of business ethics will depend on each other. In short, business people in east China have various ethical perceptions, and the current state of business ethics in east China is also complex and changeable.

This paper explores the influence of social categories on the perceived trade-off between a relatively bad but equal distribution of resources between two parties and a profit maximizing yet unequal one. Studies 1 and 2 showed that people prefer to maximize profits when interacting within their social category, but chose not to maximize individual and joint profits when interacting across social categories. Study 3 demonstrated that outside observers, who were not members of the focal social categories, also were less likely to maximize profits when resources were distributed across social category lines. Study 4 showed that the transaction utility of maximizing profits required greater compensation when resources were distributed across, in contrast to within social categories. We discuss the ethical implications of these decision making biases in the context of organizations.

The detrimental impact of fraud on organisations, the economy, and society makes the fight against it imperative. The objective of this article is to show that a proper understanding of the phenomenon of fraud is required in order to be able to undermine it. Such an understanding required firstly a sufficient definition of fraud that can distinguish it clearly from the related phenomenon of corruption. Secondly, a theoretical framework for understanding and explaining fraud is needed. After providing both such a definition and a theoretical framework, the latter is then used in the analysis of interviews conducted with persons who were convicted on charges of fraud in South Africa. The findings of this analysis are thenused to suggest various avenues for fighting fraud. Among these suggestions are proposals indicating the role that ethical values can play in undermining fraud.

Reading these papers—each one a straightforward declaration of a preferred position—has the odd (and I trust, unintended) effect of projecting the reader into a world of virtual reality. The words, the concepts, the theories, the divisions and dualisms, the premises, the arguments themselves all seem to be real. They seem to make sense. Yes, we can say to ourselves, I see and understand what each one is saying. “Fact,” “value,” “empirical,” “normative,” “science,” “philosophy,” “naturalistic fallacy,” and similar terms all invoke meanings that seem to be clear and that help to clarify the issues being debated. But do they? To what extent is this particular discussion about business ethics only virtually real, a product of an imagined or invented dialogue that may rest on little more than the assumed and inherited meanings assigned to the phrases we toss around so freely?

By raising the question, it should be obvious that I am inclined to believe that the debaters have convinced themselves that they are engaged in a dialogue about something “real” but which actually exists only in the invented forms and phrases that they have brought to the debate. The issues are only “virtually” real. If that is so, then one needs to ask where did those inventions—the virtual realities of the debate—come from. Why are they so appealing? Why do they seem to make so much sense to us? Why are they defended so vigorously by both sides or, perhaps more aptly, by all sides?

The purpose of this paper is to formulate and defend a set of moral principles applicable to management. Our motivation is twofold: 1) to increase the coherence and utility of Integrative Social Contracts Theory (ISCT); and 2) to initiate an alternative stream of business ethics research. To those ends, we specify what counts as adequate guidance in navigating the ethical terrain of business. In doing so, a key element of ISCT, Substantive Hypernorms, is found to be flawed beyond repair. So we propose and defend a remedy: prima facie moral principles. After delineating the appropriate criteria and format for such principles, we formulate, explain, and defend five of them. We conclude with a brief comment on future research possibilities.

Drawing a framework from strategic stakeholder theory and using 1999 to 2010 panel data from the United Kingdom’s (UK) non-life insurance industry, we examine the effect of reinsurance on the decisions to donate to charities, and the amount given. We find that reinsurance substitutes for charitable giving as it optimizes the interests of multiple stakeholders. We further note that corporate giving is directly related to the size and age of insurers, proportion of female directorships and insider ownership, but generally inhibited by chief executive officer (CEO) bonus plans, dominant shareholders, and financial experts on the board. Interestingly, when reinsurance interacts with board-level variables we find that the donations decision is positively related to CEO bonus plans, and negatively linked with inside ownership and the proportion of female board members. Our research results could have important implications for stakeholders.

This paper presents the results of and conclusions from a survey of 2,830 college and university undergraduate business and philosophy departments regarding their business ethics offerings. The impetus for this survey included seeking a better understanding of the problems for which business ethics courses are the solution. It was proposed that, if we knew what it is that professors teaching business ethics believe they are teaching—not in terms of content or methods, but in terms of what criteria they are using to assess students’ achievement of the course objectives—we would have a better understanding of what issues business ethics attempts to resolve. The survey focused on ranking six possible assessment criteria drawn from the literature on teaching business ethics.

In addition to disclosing the specific survey results, the paper draws conclusions based on the fact that there are statistically significant differences between the rankings assigned to the six assessment criteria by business professors as contrasted with philosophy professors. The results of the survey indicate that there is more uniformity expressed in the responses by the philosophy professors teaching business ethics than by the business professors.

People are often involuntarily laid off from their jobs through no fault of their own. Employees who are dismissed in this manner cannot always legitimately hold employers accountable for these miserable situations because the decision to implement layoffs is often the best possible outcome given the context—that is, layoffs in and of themselves may be “necessary evils.” Yet, even in circumstances in which layoffs qualify as “necessary evils,” morality demands that employers respect the dignity of those whose employment is involuntarily terminated. In this paper I argue that to preserve the dignity of employees who are involuntarily terminated, in most cases employers have a substantial reason to offer a special kind of unemployment benefit, “severance pay.” To support my claim I draw and expand upon Bernard Williams’s analysis of “agent-regret,” which I believe greatly helps to address and articulate employers’ obligations in the context of involuntary termination.

This paper examines two recent trends relative to boards of directors’ compensation, and their potential incompatibility. There has been some progress in increasing board diversity, specifically the inclusion of women and minorities on boards. The increasing trend requiring directors to hold/purchase equity as a requirement of board membership may seriously compromise further improvements in diversifying boards. Also, an increasing number of companies compensate directors partially or fully in stock grants and options. These compensation policies may be exclusionary, especially for women and minorities, impacting the quality of boardroom discussions and decisions. This study systematically examines whether corporations requiring director equity are exclusionary toward women and minority directors. Contrary to being exclusionary, companies with director stock requirements and annual stock awards have greater representation by women and minorities on their board. Moreover, larger companies are both more likely to have such policies and have higher proportions of women and minorities on the board.

I discuss the characters Don Quixote and Sancho Panza and their relationship in order to understand better the place of idealistic theory and realistic practice in business ethics. The realism of Sancho Panza is required to made the idealism of Don Quixote effective. Indeed, the interaction and development of these characters can serve as a model for both the effective communication between and blending of the idealistic moral theoretician and the practical businessperson. Specifically, I argue that a quixotified Sancho Panza, as a combination of theoretical idealism and practical realism, is necessary for managerial statesmanship. I first consider the position that this concept is unrealistic. In the final section, however, I show that a number of leadership and business theorists believe that managerial statesmanship requires a quixotified Sancho Panza. I also consider the question, what helps to make a quixotic vision for business ethical, and what is its content?

The specific purpose of this introductory paper is to explicitly introduce readers to some of the important Biblical, Talmudic, and post-Talmudic texts which deal with business ethics. As the discussion will show, Judaism’s traditional texts treat an amazing variety of issues emphasizing responsibilities in the business context. These texts are both legalistic and aspirational in character. The theme of this study is that an authentic Jewish business ethics needs to grow out of an understanding of the needs of modern, complex economies but need not accept the status quo as binding. Jewish business ethics texts provide rules of behavior, but more importantly, the texts reveal a vision encouraging us to incorporate the highest human and spiritual ideals into the common world of business.

The second section of the paper emphasizes that in order to develop Jewish business ethics, especially (but not exclusively) at the level of the organization, models of aspiration will of necessity play an integral role. A Jewish business ethics which conceptualizes Judaism as merely a set of legal rules is bound to failure. A key conclusion of this section is that Jewish business ethics needs to continue to selfconsciously promote models of aspirations, as well as rely on fixed legal norms.

Finally, the third section of the paper examines a specific corporate policy (no smoking) in light of a Jewish business ethics.

There can be ethical understanding of organizational policy issues and that is important. However, there can be policy understanding about what the organization should do without understanding of individual level responsibility. There can be cognitive understanding of both policy and individual level ethics responsibilities and that is important. However, there can be cognitive understanding without affective, emotive concern. Intellectual understanding without affective concern can lead to understanding without motivation. There can be cognitive understanding and affective concern and that is important, but not enough. There can be cognitive understanding and affective concern without effective political method. An action-learning approach to organizational ethics can join cognitive understanding of policy and individual level issues with both affective concern and effective political method. Joining of cognitive understanding, affective concern, and effective political method can stimulate and enable ethical character.

Many people argue that we should practice conscientious consumption. Faced with goods from gravely flawed production processes, such as wood from clear-cut rainforests or electronics containing conflict minerals, they argue that we should enact personal policies to routinely shun tainted goods and select pure(r) goods. However, consumers typically should be relatively uncertain about which flaws in global supply chains are grave and the connection of purchases to those grave flaws. The threat of significant uncertainty makes conscientious consumption appear to be no better, or even worse, than an overlooked option. This overlooked option is consumption with relinquishment: disregarding each product’s possible connections with upstream grave flaws and using the time, money, and energy saved in this way to address grave flaws directly.

Legal scholars and business ethicists are interested in many of the same core issues regarding human and firm behavior. The vast amount of legal research being generated by nearly 10,000 law school and business law scholars will inevitably influence business ethics research. This paper describes some of the recent trends in legal scholarship and explores its implications for three significant aspects of business ethics research—methodology, theory, and policy.

This paper examines the extent to which the voluntary adoption of codes of conduct by multinational corporations (MNCs) renders MNCs accountable for the performance of actions specified in a code of conduct. In particular, the paper examines the ways in which codes of conduct coordinate the expectations of relevant parties with regard to the provision of assistance by MNCs on grounds of rescue or justice. The paper argues that this coordinative role of codes of conduct renders MNCs more accountable for the performance of actions specified in a code of conduct than they would be without a code of conduct. This interpretation of the significance of codes of conduct is contrasted with the view that codes of conduct render MNCs accountable for performing actions specified in a code of conduct by grounding contractual obligations for the performance of such actions.

Is business intimately related to ethics or can the two be separated? I argue that examining this question by focusing on how the two areas might be separated is logically flawed. Examining how business and ethics are connected, however, can bear fruit. This examination shows that business is a proper subset of ethics. Understanding this intimate connection has two practical benefits. It removes the seemingly incommensurable conflict between financial and ethical responsibilities of managers and it gives us new and positive insights into Milton Friedman’s view that the social responsibility of business is to increase its profits.

Confucian scholars express skepticism about rights. This skepticism is relevant to managers who face issues about the recognition of workplace rights in a Confucian culture. My essay examines the foundations of this skepticism, and the cogency of potential leading Western liberal responses to it. I conclude that Confucian skepticism is more formidable than liberals have recognized. I attempt to craft an argument that defuses Confucian skepticism about workplace rights while at the same time respecting the moral depth of Confucianism.