Patricia Werhane

The Challenger incident was a result of at least four kinds of difficulties: differing perceptions and priorities of the engineers and management at Thiokol and at NASA, a preoccupation with roles and role responsibilities on the part of engineers and managers, contrasting corporate cultures at Thiokol and its parent, Morton, and a failure both by engineers and by managers to exercise individual moral responsibility. I shall argue that in the Challenger case organizational structure, corporate culture, engineering and managerial habits, and role responsibilites precipitated events contributing to the Challenger disaster. At the same time, a number of individuals at Morton Thiokol and NASA were responsible for the launch failure. Differing world views, conflicting priorities of the engineers and managers on this project, and the failure of either engineers or management to take personal moral responsibility for decision-making contributed significantly to the event.

Most papers in this issue carefully analyze normative and empirical methodologies. I shall argue that (a) there is no purely empirical nor purely normative methodology; (b) some terms escape the division of the normative and descriptive. (c) Most importantly, dialogues such as this one point to a form of integration that allows us to reflect on what it is that each approach presupposes in its study of business ethics. Thus we have made progress in recognizing the importance of each methodology, how each is dependent on the other, and how neither is singularly The Approach to business ethics.

The first issue of Business Ethics Quarterly was launched in 1991. At that time there were few general principles that could serve as guidelines for global business. However, since 1991 a plethora of such principles have been developed to serve as guidelines and evaluative mechanisms for global corporate responsibilities. But operationalizing these principles in practice has been a challenge for most transnational corporations and even for smaller, more local enterprises. This is because, in some cases, the principles ask too much of companies. In other cases, the principles are ambiguous. And in still other cases,the principles, written by and large from a Western, rights-based perspective, cannot be operationalized in some cultural or religious settings. In this paper I will outline a series of dilemmas multinational enterprises face in the global market place, even when they sincerely sign on to one or another set of principles. These problems are not insurmountable, but in the imperfect world of commerce, require that our expectations of corporate responsibilities be satisficing rather than absolutist.

While no one seems to believe that business schools or their faculties bear entire responsibility for the ethical decision-making processes of their students, these same institutions do have some burden of accountability for educating students surrounding these skills. To that end, the standards promulgated by the Association to Advance Collegiate School of Business, their global accrediting body, require that students learn ethics as part of a business degree. However, since the AACSB does not require the inclusion of a specific course to achieve this objective, it may be satisfied by establishing a stand-alone course in ethical decision-making, by integrating ethical decision-making into the existing curricula, by some combination of the two strategies, or through some alternative mechanism. Notwithstanding the choice of delivery process, though, the institution must ensure that it is able to demonstrate the students' achievement of learning with regard to ethics, a bar that was raised, or arguably simply modified, in 2003. With learning objectives designed precisely to measure the student delta based on content, process and engagement in a particular class, those programs that have opted for stand-alone ethics courses may be more prepared to respond to assessment-related inquiries regarding their programs or satisfaction of the standards. The relevance of the AACSB standards modification to the current efforts at ethics integration in business programs is instead a re-examination of how to create a program of integration that is designed to ensure the most effective learning results possible, while responding to the challenges presented by the integrated approach. The purpose of this article is to explore some of those challenges that may be somewhat universal to business school programs implementing the integrated approach, and to share one large university's response to those challenges, along with lessons learned.

Taking the lead from Susan Wolf's and Linda Emanuel's work on systems thinking, and developing ideas from Moberg's, Seabright's and my work on mental models and moral imagination, in this paper I shall argue that what is often missing in management decision-making is a systems approach. Systems thinking requires conceiving of management dilemmas as arising from within a system with interdependent elements, subsystems, and networks of relationships and patterns of interaction. Taking a systems approach and coupling it with moral imagination, now engaged on the organizational and systemic as well as individual levels of decision-making, I shall conclude, is a methodology that encourages managers and companies to think more imaginatively and to engage in integrating moral decision-making into ordinary business decisions. More importantly this sort of thinking is a means to circumvent what often appear to be intractable problems created by systemic constraints for which no individual appears to be responsible.

In this article we discuss what are the implications for improving the design of corporate ethics programs, if we focus on the moral motivation accounts offered by main ethical theories. Virtue ethics, deontological ethics and utilitarianism offer different criteria of judgment to face moral dilemmas: Aristotle's virtues of character, Kant's categorical imperative, and Mill's greatest happiness principle are, respectively, their criteria to answer the question "What is the right thing to do?" We look at ethical theories from a different perspective: the question we ask is "Why should I do the right thing?" In other words, we deal with the problem of moral motivation, and we examine the different rationale the main ethical theories provide. We then point out the relation between moral motivation and the concept of rationality in the different approaches - is acting morally seen as an expression of rational behavior? Our analysis of moral motivation provides a useful framework to improve the understanding of the relationships between formal and informal elements of corporate ethics programs, emphasizing the importance of the latter, often overlooked in compliance-focused programs. We conclude by suggesting that the concept of moral imagination can provide a unifying approach to enhance the effectiveness of corporate ethics programs, by providing an intangible asset that supports the implementation of their formal components into management decision making.

With the demise of Marxism and socialism, the United States is becoming a model not merely for free enterprise, but also for employment practices worldwide. I believe that free enterprise is the least worst economic system, given the alternatives, a position I shall assume, but not defend, here. However, I shall argue, a successful free enterprise political economy does not entail mimicking US employment practices. I find even today in 1998, as I shall outline in more detail, these practices, when consistently carried out, by and large erode trust in the workplace, they are, on balance unfair to workers and managers, and, if Jeffrey Pfeffer is correct, they do not maximize long-term corporate earnings or growth. Getting clear on US employment practices and their weaknesses may help to shape other models for employment that neither contravene free enterprise nor are degrading to workers.

In this important book, a host of noted environmentalists and business ethicists examine ethical issues in consumption from the points of view of environmental sustainability, economic development, and free enterprise. These issues are at the forefront of international concerns about global legislation and regulation. The contributors challenge the reader to think carefully about how environmental sustainability, global economic development, and free enterprise might or might not be compatible values for ourselves and future generations. It is an essential book for students and scholars of business ethics, environmental ethics, public policy, and economic development.