Daryl Koehn

The number of corporate apologies has increased dramatically during the past decade. This article delves into the ethics of apologies offered by chief executive officers (CEOs). It examines ways in which public apologies on the part of a representative (CEO) of a corporate body (the firm) differ from both private, interpersonal apologies, on the one hand, and nation-state/collective apologies, on the other. The article then seeks to ground ethically desirable elements of a corporate apology in the nature or essence of the corporate apology itself. It explores the largely ignored roles played by the speaker’s ethos and audience pathos in genuine or ethical apologies and suggests that attention needs to be paid to the problems posed by “role contamination,” context, and other overlooked factors. The reception by the actual audience of a given apology is a highly contingent matter. Ethicists should concentrate, therefore, on what makes a proffered apology, in principle, trustworthy and not merely efficacious for a given audience.

The discipline of business ethics traditionally has paid too much attention to articulating and applying the moral law and has devoted too little thinking to the nature and consequences of evil for our souls. For purposes of this discussion, I shall limit myself to Dante’s vision of evil as a diminution of human being. On his journey through hell, Dante encounters the shades—people who, through their own actions, have rendered themselves less than fully human. This paper concentrates especially on the various types of fraud andtheir psychic effects as portrayed by Dante in his book Inferno.

Multi-level marketing (MLM) schemes are one of the fastest growing types of business. However, little has been written about the ethics of MLMs. This oversight is somewhat surprising, especially because some prominent MLMs have been accused of being pyramid schemes. Pyramid schemes were the number one type of internet fraud in 1996, and the fourth most common form of internet fraud in 1997 (National Consumers League, 1997). This paper examines the nature of MLMs and their similarities with and differences from pyramid and endless chain schemes. The paper argues that MLMs pose some unique ethical issues, issues that are not easy to address or resolve.

Michael Pirron is CEO of Impact Makers, an IT consulting firm based in Virginia. Impact Makers decided to reincorporate as a Benefit Corporation when Virginia passed the legislation. In this interview with Professor Daryl Koehn from DePaul University, Pirron discusses why he chose to reincorporate and their organization’s decision to give all their profits to charity. To do this, Impact Makers set up a new financial innovation to protect the social purpose of the organization. They gave all their common stock to two public charities and if the organization is ever sold, all the proceeds would go to charitable organizations in their community.

Michael Hannigan is the CEO and co-founder of Give Something Back Office Supplies, the third largest office supply company on the west coast of the United States. Hannigan began his business in 1991, long before any benefit corporation legislation was enacted. He reincorporated his business as a benefit corporation after California passed such legislation in 2011. On April 23, 2015, he spoke at the 22nd Annual Stakeholder Dialogue Speaker Series convened at the University of St. Thomas, Minneapolis, by Daryl Koehn and the Veritas Institute. His remarks cover the genesis of his interest in socially responsible business and the start of his company. Hannigan also discusses the arc of what he refers to as the “fourth sector”—the emergence of the social enterprise sector. He evaluates where benefit corporations began and shares his reflections on how they may develop in the future. Hannigan’s talk concludes with a short question and answer session with audience members at the event.

“Responsibility” in Chinese consists of two words: “ze” and “ren” . In modern Chinese, although the two words “ze” and “ren” are mostly used as one word, people can still discern the close relationship between ze and right and between ren and the duty associated with a position or a power. In modern life, however, there is a serious problem with these historically close, key relationships. This paper raises the crucial question: how should we understand and deal with the separation of freedom from responsibility, right from obligation, and duty from power, particularly within China? The first part of the paper investigates the understanding of responsibility and concepts of duty, obligation, right, and power in the Chinese context. The second part analyzes the key issues of responsibility associated with the expansion of rights and powers in today’s China. The concluding part explores agents’ responsibilities on different levels and offers suggestions on how to cultivate responsibility as part of a systematic moral education

This paper examines what, if anything, "Eastern philosophy" can teach us about business ethics. The whole idea of "Eastern ethics" or so-called "Asian values" is suspect on a number of scores. The paper argues that It is better to refer to specific ideas of particular thinkers influential within one country or tradition. The paper concentrates on the philosophy of two such thinkers – Watsuji Tetsuro of Japan and Confucius. When this more "micro" approach is adopted, we can learn some important lessons with respect to the meaning of trust, the longterm nature of relations, and ethics that extend far beyond the limited idea of rights. The paper considers these lessons in the business context.

Rudyard Kipling famously penned, “East is East, West is West, and never the twain shall meet.” His poetic line suggests that Eastern and Western cultures are irreconcilably different and that their members engage in fundamentally incommensurable ethical practices. This paper argues that differing cultures do not necessarily operate by incommensurable moral principles. On the contrary, if we adopt a virtue ethics perspective, we discover that East and West are always meeting because their virtues share a natural basis and structure. This article sketches the rudiments of what a universal virtue ethic might look like. Such an ethic is especially relevant and valuable in this era of global business

In The Nature of Evil, Daryl Koehn takes us on a sweeping tour of different interpretations of evil. In this timely and serious discussion she argues that evil is not intentional malice, but rather violence that stems from a false sense of self. Violence is not true evil but a symptom of the underlying evil of our failure to really know who we are. Koehn examines situations in which good intentions can have horrific results. She explores such works as The Talented Mr. Ripley , Dante's Inferno , and The Turn of the Screw to illustrate the origins of evil and suffering. The Nature of Evil offers an insightful and engaging exploration at a time when we are all struggling to understand the roots of violence and suffering.

Dignity is an important concept in ethics. Human rights organizations justify rights by appealing to human dignity. Prominent politicians have cited the need to protect human dignity and urged the founding of international institutions. The concept of human dignity is often used to evaluate and critique the ethics of select practices. In addition, the idea of dignity is used as a universal principle to ground universalist business ethics.This paper argues that there are substantial differences between the ways in which the West and China construe human dignity. Having documented these major differences, we consider two cases to show how the differences might “cash out” in actual business practice. Instead of relying upon a nonexistent universal concept of human dignity, we suggest that it is respectful and sound to seek to identify the many goods (teamwork, initiative, autonomy, respect for elders) that differing parties see at play in the case at hand and then to try to come up with ways to realize as many of these goods as possible.

This three-case series examines the dilemma that faced the Japanese company Snow Brand Milk Products (SBM) as it confronted the task of rebuilding and revitalization after a series of scandals, many self-induced, had threatened the company’s future. The A case begins in spring 2002 when leading consumer activist Nobuko Hiwasa was invited to join Snow Brand’s board of directors. The CEO wanted her to assist in SBM’s revitalization efforts, which were beingimplemented in the wake of two recent scandals—contaminated milk and beef mislabeling—that had almost brought down the venerable company. Hiwasa was ambivalent about taking on this Herculean task. Was the company sincere in wanting to reform and revitalize? Would the board take her seriously? Was her presence to be mere publicity-driven window dressing? How would fellow consumer advocates view her if she accepted the position? This case details the history of Snow Brand Milk Products and the missteps and scandals that plagued it in the 1990s and early part of the decade that followed, and includes Hiwasa’s decision-making process as she considers whether to join the board of a company that has been badly tainted by scandal.

The number of corporate apologies has increased dramatically during the past decade. This article delves into the ethics of apologies offered by chief executive officers (CEOs). It examines ways in which public apologies on the part of a representative (CEO) of a corporate body (the firm) differ from both private, interpersonal apologies, on the one hand, and nation-state/collective apologies, on the other. The article then seeks to ground ethically desirable elements of a corporate apology in the nature or essence of the corporate apology itself. It explores the largely ignored roles played by the speaker’s ethos and audience pathos in genuine or ethical apologies and suggests that attention needs to be paid to the problems posed by “role contamination,” context, and other overlooked factors. The reception by the actual audience of a given apology is a highly contingent matter. Ethicists should concentrate, therefore, on what makes a proffered apology, in principle, trustworthy and not merely efficacious for a given audience.

. In this post-Enron era, we have heard much talk about the need for integrity. Today’s employees perceive it as being in short supply. A recent survey by the Walker Consulting Firm found that less than half of workers polled thought their senior leaders were people of high integrity. To combat the perceived lack of corporate integrity, companies are stressing their probity. This stress is problematic because executives tend to instrumentalize the value of integrity. This paper argues that integrity needs to be better defined because the current mode of talking about the subject is misleading. The paper considers three traditions’ understanding of the idea of integrity, argues that integrity is intrinsically valuable, and concludes with some reflections on the way in which integrity, properly understood, functions as a business asset.

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 avenuesfor research. But the time has come to examine in some detail possible limitations or weaknesses in virtue ethics. This paper arguesthat 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.

Michael Pirron is CEO of Impact Makers, an IT consulting firm based in Virginia. Impact Makers decided to reincorporate as a Benefit Corporation when Virginia passed the legislation. In this interview with Professor Daryl Koehn from DePaul University, Pirron discusses why he chose to reincorporate and their organization’s decision to give all their profits to charity. To do this, Impact Makers set up a new financial innovation to protect the social purpose of the organization. They gave all their common stock to two public charities and if the organization is ever sold, all the proceeds would go to charitable organizations in their community.

The economist Milton Friedman argued that business has only one ethical responsibility: Business has a responsibility to employ all available legal means to increase corporate profits owed to stockholders (Friedman, 1993). In this article, I explore why business students find this argument so attractive. I then argue that, as an account of business ethics, Friedman's legalism is both theoretically and practically unsound. I close with some suggestions as to what would constitute a truly ethical understanding of business practice.

Since St. Thomas Aquinas was one of the first scholastics to analyze the idea of a “just price,” economists, economic historians and philosophers interested in the philosophical underpinnings of the market have focused on Aquinas’s writings. One group insists that Aquinas defined the just price as the payment needed to cover sellers’ labor and material costs. A second camp vehemently counters that Aquinas’s just price is simply the going market price. We argue that neither of these views is correct. The Thomistic just price is the price that would be agreed to by a just person as part of an exchange. This “just person price” takes into account the well-being of the individual transactors and the good of the entire community. Such a price reduces neither to the cost-covering price nor to the market exchange price. A Thomistic concept of the just person price deserves to be reconsidered, especially because a Thomistic approach offers some useful ways to deal with issues quite differently from the popular neoclassical approach directed toward arriving at a socially optimal market price.

This three-case series examines the dilemma that faced the Japanese company Snow Brand Milk Products (SBM) as it confronted the task of rebuilding and revitalization after a series of scandals, many self-induced, had threatened the company’s future. The A case begins in spring 2002 when leading consumer activist Nobuko Hiwasa was invited to join Snow Brand’s board of directors. The CEO wanted her to assist in SBM’s revitalization efforts, which were beingimplemented in the wake of two recent scandals—contaminated milk and beef mislabeling—that had almost brought down the venerable company. Hiwasa was ambivalent about taking on this Herculean task. Was the company sincere in wanting to reform and revitalize? Would the board take her seriously? Was her presence to be mere publicity-driven window dressing? How would fellow consumer advocates view her if she accepted the position? This case details the history of Snow Brand Milk Products and the missteps and scandals that plagued it in the 1990s and early part of the decade that followed, and includes Hiwasa’s decision-making process as she considers whether to join the board of a company that has been badly tainted by scandal.

Abstract:Much of the current discussion of evil within business and professions locates evil within the individual employee. Dennis Moberg (1997) has argued for conceiving of employee viciousness as a lack of self-control. This paper argues, that while some evil behaviors may be well-modelled as instances of low self-control, this model does not fit much of what might qualify as evil (e.g., child-caregivers falsely accusing their fellow employees of ritual child abuse). The paper examines three alternative models of evil, two drawn from literature, one from theology, and shows why these alternative models are just as relevant for thinking about the nature and cause of evil as the low self-control model drawn from the criminology literature.How intoxicating to feel like God the Father and to hand out definitive testimonials of bad character and habits—Albert Camus.