Patricia Werhane

Although many challenges remain, business ethics is flourishing in North America. Prominent organizations give annual business ethics awards, investments in socially screened mutual funds are increasing, ethics officers and corporate ombudspersons are more common and more influential, and new ideas are being tested in practice. On the academic side, two major journals specializing in business ethics are well-established and other major journals often include articles on business ethics and new organizations emphasizing ethics have been initiated. Within business schools, the number of endowed chairs is growing and the ethics curriculum is expanding. Canada is a major player in the business ethics discipline while business ethics in Mexico is just beginning to emerge as a focus of interest in both the business and academic communities.

I argue, contra Sabina Lovibond, that one cannot defend a viable form of moral realism from the perspective of linguistic conventionalism. Appealing to the later Wittgenstein, I argue that Wittgenstein's alleged linguistic conventionalism rests on the objective ground of the notion of a rule. While Wittgenstein acknowledges that the subjective and social context out of which we operate precludes getting at reality independent of a perspective, neither is he an anti-realist nor does he replace truth conditions with assertibility conditions. If conventions are grounded in the notion of a rule, we can then use this conclusion to defend a form or moral realism

This article presents a response to Richard Rorty's paper "Is Philosophy Relevant to Business Ethics?" The author questions Rorty's views on the depreciation of the role of philosophy in applied ethics, and outlines four reasons why philosophy retains its relevance. The author addresses the role of moral reasoning in the development of the moral imagination. The author also concludes that humans have the means necessary to make moral progress and are capable of moral reasoning, and need only to develop a strong moral imagination

The article, Inside Trading Revisited, has taken the stance that insider trading is neither unethical nor economically inefficient. Attacking my arguments to the contrary developed in an earlier article, The Ethics of Inside Trading (Journal of Business Ethics, 1989) this article constructs careful arguments and even appeals to Adam Smith to justify its conclusions. In my response to this article I shall clarify my position as well as that of Smith to support my counter-contention that insider trading is both unethical and inefficient.

I agree with much of Freeman and Reichart’s paper; so, by way of comment, I will simply supplement his argument in two ways. First, agreeing with their conclusion that we can, and should, re-direct business toward environmental protection without embracing a nonanthropocentric ethic, I will show that the pre-occupation of recent and contemporary environmental ethics with the anthropocentrism/non-anthropocentrism debate is avoidable. It rests on a misinterpretation of possible moral responses to the arrogance with which Western science, technology, and culture has treated nature. A better understanding of the history of the idea of nonanthropocentrism will, I believe, strengthen Freeman and Reichart’s case for pluralism in environmental ethics and values. Second, I will emphasize several points that seem to me to fit well with Freeman and Reichart’s approach, and which would provide important detailing for the type of approach he sketches, arguing that much hard intellectual work stands between us and a satisfactory, and useful, but pluralistic, and life-centered ethic for business and the environment.

The global expansion of free enterprise has been underway for some time, and the challenges for global companies are well‐known. Companies often operate in economically blighted communities and in corrupt environments without a rule of law. At the same time Western‐based global corporations are under increasing public pressure to take on responsibilities to these communities that are often beyond their expertise or economic purview. For example, at the 2008 Davos meetings Bill Gates proposed the idea of “creative capitalism, challenging business to ‘meet the needs of the poor in ways that generate profits’...” In what follows I shall argue that while there have been many successful global ventures, the Gates’ challenge requires academics and managerial leaders to rethink their mind sets and expand their thinking about what we mean by globalization, poverty, and the multiple dimensions of free enterprise.

With the recent rash of mergers and friendly and unfriendly takeovers, two important issues have not received sufficient attention as questionable ethical practices. One has to do with the rights of employees affected in mergers and acquisitions and the second concerns the responsibilities of shareholders during these activities. Although employees are drastically affected by a merger or an acquisition because in almost every case a number of jobs are shifted or even eliminated, employees at all levels are usually the last to find out about a merger transaction and have no part in the takeover decision. Second, if shareholders are the fiduciary beneficiaries of mergers and acquisitions, then it would appear that they have some responsibilities or obligations attached to these benefits, but little is said about such responsibilities. In this essay I shall analyze these two ethical issues, and at the end of the paper I shall suggest how they are related.

Patricia Werhane synthesizes much of later Wittgensteinian thought, bringing together disparate arguments into a coherent text. Keeping in mind what Wittgenstein set out to accomplish in his later writings, the introduction of new material on the private language arguments, and the philosophical significance of these claims, Werhane develops the thesis that the notion of a rule is such a constitutive of language that a private language is impossible. Such a conclusion challenges many contemporary readings of the Philosphical Investigations by bringing into question conventionalism, linguistic relativism, and idealism while defending the thesis that the notion of a private psychological experience makes sense.

Until recently, business issues in healthcare organizations were relatively insulated from clinical issues, for several reasons. The hospital at earlier stages of its development operated on a combination of charitable and equitable premises, allowing for providing care to be separated from financial support. Physicians, who were primarily responsible for clinical care, constituted an independent power nexus within the hospital and were governed by their own professional codes of ethics. In exchange for a great deal of control over their conditions of practice, they took almost complete responsibility for patient care. Thus clinical and professional ethics could to some extent be compartmentalized from the business issues—a much easier feat when, as in much of the last few decades, virtually all care was reimbursed from some source or other. In addition, many HCOs were not categorized or treated as businesses, although of course they were presumed to be governed by the same expectation for good management as any other organization

There are important synergies for the next generation of ethical leaders based on the alignment of modified or adjusted mental models. This entails a synergistic application of moral imagination through collaborative input and critique, rather than "me too" obedience. In this article, we will analyze the Milgram results using frameworks relating to mental models (Werhane et al., Profitable partnerships for poverty alleviation, 2009), as well as work by Moberg on "ethics blind spots'' (Organizational Studies 27(3): 413-428, 2006), and by Bazerman and Chugh on "bounded awareness" (Harvard Business Review, 2006; Mind & Society 6: 1-18, 2007) Using these constructs to examine the Milgram experiment, we will argue that the ways in which the experiments are framed, the presence of an authority figure, the appeal to the authority of science, and the situation in which the naïve participant finds herself or himself, all create a bounded awareness, a narrow blind spot that encourages a climate for obedience, brackets out the opportunity to ask the moral question: "Am I hurting another fellow human being?" and may preclude the subject from utilizing moral imagination to opt out of the experiment. We will conclude that these forms of almost blind obedience to authority are correctable, but with difficulty. We will argue that linking the modification of mental models to an unbinding of awareness represents an important synergistic relationship and one that can build effectively on the lessons learned from our experience with moral imagination

When using cases to teach corporate strategy and ethical decision-making, the aim is to demonstrate to students that leadership decision-making is at its most effective when all affected stakeholders are considered, from shareholders and employees, to the local, national, and global societies in which the company operates. This paper challenges the obstructive perception of many Corporate Social Responsibility (CSR) advocates that the interests of private organizations in the alleviation of social problems should not be vested, but instead should originate from charitable purposes. We evaluate an alternative approach to the role of business in contributing to social progress - Creating Shared Value (CSV), and present a case study that illuminates key features of CSV. We share pedagogical strategies for a classroom discussion of the Zynga.org case that encourage students to investigate the merits and hurdles of CSV as a pathway to harmonize the twin goals of economic value creation and social change.

After experiments with various economic systems, we appear to have conceded, to misquote Winston Churchill that "free enterprise is the worst economic system, except all the others that have been tried." Affirming that conclusion, I shall argue that in today's expanding global economy, we need to revisit our mind-sets about corporate governance and leadership to fit what will be new kinds of free enterprise. The aim is to develop a values-based model for corporate governance in this age of globalization that will be appropriate in a variety of challenging cultural and economic settings. I shall present an analysis of mental models from a social constructivist perspective. I shall then develop the notion of moral imagination as one way to revisit traditional mind-sets about values-based corporate governance and outline what I mean by systems thinking. I shall conclude with examples for modeling corporate governance in multi-cultural settings and draw tentative conclusions about globalization