Patricia Werhane

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

Global Economic Ethic is a stunning set of principles. However, in this response I shall raise some questions concerning its implementation. First, from the perspective of a global Western-based transnational corporation, there are ambiguities in the principles and implementation in practice. Second, from a non-Western cultural perspective, one has to to think about whether and how these principles could be interpreted in different non-European/non–North American cultural settings. Finally, the biggest challenge is whether or how we as individuals, as executives and managers, and as part of the global community work to change political climates of corruption, domination, patronage, and protectionism, climates that hinder or preclude going forward with the adoption and operationalization of these principles everywhere.