Daryl Koehn

The long-term health of business ethics is suspect. In particular, there are some troubling trends within the discipline’s methodology that should be closely monitored and, in some cases, countered. Furthermore, business ethicists and management theorists should take some steps to make business ethics more robust and more relevant to actual business practice. Part 1 of this article argues that, while the dominance of the social science approach should be curtailed, relations between normative and empirical scholars need not be hostile; on the contrary, there are some modest ways in which the two approaches could complement each other more than they have to date. Part 2 examines why business ethics needs more systems thinking. Part 3 explores why business ethicists in general should follow the lead of some of our colleagues who are engaging in powerful and influential research with direct and immediate practical applications. The article closes with a few modest suggestions for enhancing business ethics theorizing and provides some concrete ways for scholars to become more involved with business practitioners and business practice and to learn from the latter in ways that can productively feed research streams.

Ludwig Wittgenstein famously said, "Ethics is aesthetics." It is unclear what such a claim might mean and whether it is true. This book explores contentious issues arising at the interface of ethics and aesthetics. The contributions reflect on the status of aesthetic en ethical judgments, the relation of aesthetic beauty and ethical goodness and art and character development. The book further considers the potential role art could play in ethical analysis and in the classroom and explores in what respects aesthetics and ethics might be intertwined and even mutually supportive.

Applied ethicists’ interest in narratives and narratives ethics has grown steadily. Some thinkers position narratives as supplements to ethics, while others see narratives as new form of ethics comparable to virtue or deontological ethics. In this paper, I analyze some of the main ethical claims being made on behalf of business and literary narratives from the perspective of Aristotelian virtue ethics. I argue that, while narratives can significantly contribute to the development of our character, to a better grasp of virtues and vices, and to a clarification of a virtue ethics framework, this contribution is highly nuanced. In particular, Aristotelian virtue ethics enable us to sensibly and helpfully distinguish the ethical value of _narratives within business ethics_ from _narrative business ethics _per se. This paper has three parts. Part One offers a provisional definition of narrative and sketches some of the large claims that literary critics, philosophers, theologians, and others have made for narratives’ relevance to and value for ethics. In Part Two, using narratives drawn from business and literature, I take up each of these claims in turn and examine whether the claim makes sense and is compelling from an Aristotelian virtue ethics perspective. Part Three gathers together the threads of the arguments in Part Two to specify the modest, but nonetheless significant, legitimate roles narratives might play within Aristotle’s virtue ethics. I also point to some limitations inherent in an Aristotelian critique of narrative ethics and suggest some questions for future research.

What is humane work? What does such work look like in a business context? This paper articulates two ways of thinking about humane work using an Aristotelian and a Confucian virtue ethics approach. This approach reveals the need to think about (1) work’s connection not merely with autonomy but with self-refinement and self-perfection, with craft, and with the production of genuinely good goods; (2) possible dangers (e.g., the risk of generating envy) of focusing too much on pay issues in connection with humane work; (3) the relation between humane work and political regimes; and (4) the role played by stakeholders other than managers in the humanizing of work.

When we think of ethics in medicine or business, we typically focus on whether the dignity and autonomy of patients and stakeholders are being respected. Ethicists have devoted a great deal of energy to showing how particular practices either foster or damage healthy personal relations. It is my contention that these analyses, while sometimes insightful, do not grapple with the key question: What does it mean to act in an increasingly technological age? Is it legitimate simply to apply some set of standard ethical categories to evaluate good and bad practices in medicine or business? This article argues that this type of applied ethics completely misses the larger ethical issues arising from the fact that our practices, including medicine, have become thoroughly technological in character. Technology by its very nature transforms our practices and our selves. What is more, it alters us in such a way that we simultaneously lose our capacity to judge the meaning and consequences of this transformation.

Behavioral economics is the latest trendy form of economics. Increasingly theorists are advocating using behavioral economics to do normative ethics or claiming that the behavioralists’ findings render normative claims otiose. I argue in this paper that we should be extremely wary when it comes to accepting any such normative pronouncements. I argue that behavioral economics: (a) minimizes and/or misunderstands the role that character and architectonic life goals play in accounting for the why of ethical behavior, (b) fundamentally misconceives human practical rationality, (c) often unduly narrows the range of human action and choice, (d) misleadingly assumes that options are merely given to us rather than generated by us in accordance with our character, (e) is parasitic upon normative ethics, (f) results in an unhelpful ad hoc approach to ethical thinking, which is unlikely to prove all that useful and may even dangerously mislead ordinary agents or those who operate corporate compliance programs and who seek to improve corporate cultures, and (g) ignores the key role played in ethical behavior by meso‐ and macro‐factors.

This book offers a much needed overview of the neglected notion of responsibility. Instead of offering vague talk about “individual responsibility” or “corporate responsibility,” Daryl Koehn examines in detail four accounts of responsibility, taking care to specify what responsibility does and does not mean in each account. She argues for a return to the ancient concept of Socratic dialogical responsibility, a concept that avoids many of the problems inherent in the other accounts. After examining the Anglo-American criminal legal system’s treatment of responsibility as intentional agency, she critiques Hans Jonas’s concept of responsibility as ontological care and Hannah Arendt’s notion of communicative responsibility. She provides a careful analysis of the strengths and weaknesses of each approach to responsibility. The final chapter makes the case for Socratic dialogical responsibility. Dialogical responsibility has many strengths in its own right and avoids the major pitfalls of the other notions of responsibility examined in the book. It serves as an eminently practical way to hold ourselves responsible for our actions and speech. In addition, dialogical responsibility alone qualifies as a virtue integral to the good life.

Confucianism is potentially relevant to business ethics and business practice in many ways. Although some scholars have seen Confucian thought as applicable to corporate social responsibility :433–451, 2009) and to corporate governance :30–43, 2013), only a few business ethicists :415–431, 2001b; Journal of Business Ethics 116:703–715, 2013; Romar in Journal of Business Ethics 38:119–131, 2002; Lam in The Analects, Penguin Classics, London, 2003; Chan in Journal of Business Ethics 77:347–360, 2008; Woods and Lamond in Journal of Business Ethics 102:669–683, 2011) have taken seriously the possibility that Confucius may have important insights to offer regarding virtue ethics, which has now become the most popular normative theory as evidenced by the number of recent articles published in business ethics journals :287–318, 2017). This paper aims to help rectify this oversight. The paper focuses on several distinctive aspects of Confucian ethics, discussing both how Confucius’ approach differs from Aristotelian virtue ethics in significant ways and how these key differences suggest numerous directions for future research.

The B case jumps ahead several years and outlines the turnaround efforts SBM undertook to address its grave missteps: shifting to a consumer-oriented, integrity-focused management style; providing greater transparency and communication; and establishing a corporate ethics committee and a Snow Brands Code of Conduct. In June 2002, after much consideration and reflection on Snow Brand’s issues (as outlined in the A case), Hiwasa joined its new board as its sole outside director, serving as the impetus for the changes the company made. Her appointment indicated SBM was indeed serious about reform and revitalization.

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.

Since the late 1990s, the number of apologies being offered by CEOs of large companies has exploded. Communication and management scholars have analyzed whether and why some of these apologies are more effective or more ethical than others. Most of these analyses, however, have remained at the anecdotal level. Moreover, the practical, economic consequences of apologies have not been examined. Almost no rigorous or systematic empirical work exists that examines whether stakeholders reward firms whose CEOs give apologies that are more, rather than less, ethical; and punish firms whose corporate apologies are not ethically sound. This lacuna is surprising given that the whole purpose of an apology is to restore trust between the apologizer and the recipients of the apology. It is also surprising, given that stock market participants do appear, in at least some cases, to evaluate and respond to apologies by CEOs. When Johnson and Johnson was hit by the Tylenol poisonings, its stock price plummeted. One day after CEO James Burke’s apology—an apology widely praised for being ethically sound—approximately a half billion dollars of its previously lost stock value was restored. It appears, then, that a good CEO apology may lead to an increased stock value ceteris paribus. But is the Johnson and Johnson case representative of how the market responds in general to CEO apologies?

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.

As use of the Internet has increased, many issues of trust have arisen. Users wonder: will may privacy be protected if I provide information to this Internet vendor? Will my credit card remain secure? Should I trust that this party will deliver the goods? Will the goods be as described? These questions are not merely academic. A recent Boston Consulting Group study revealed that one out of ten consumers have ordered and paid for items online that never were delivered (Williams, 2001). This year consumers filed around 11 000 complaints with the Federal Trade Commission alleging auction fraud, a figure up from the 107 lodged in 1997. It is no wonder that people are increasingly worried about whom to trust in online interactions. This paper explores the conditions under which online trust thrives and looks at examples of best and worst corporate practices. Online trust issues arise in a wide array of forums - chat rooms, news postings, e-catalogues, and retail transactions, to name a few. This paper focuses primarily on the online retail market, but the analysis applies to informational and entertainment sites as well.

A number of business writers have argued that business is a game and, like a game, possesses its own special rules for acting. While we do not normally tolerate deceit, bluffing is not merely acceptable but also expected within the game of poker. Similarly, lies of omission, overstatements, puffery and bluffs are morally acceptable within business because it, like a game, has a special ethic which permits these normally immoral practices. Although critics of this reasoning have used deontological and utilitarian arguments to show that deceit in business is just an immoral as it is in any other realm of human practice, little attention has been paid to the fact that the argument is one of analogy. The analogical argument for business' special ethic is only as strong as the alleged similarities between business and game-playing. This paper argues that this analogy is quite weak and incapable of either providing much insight into business or of offering a reason to think that the ethics of business are, or even could be, like those of a game.