The Ethical Contribution of Organizations to Society: Volume 14

In this paper, we present a conceptual and terminological system – what we term the ‘Comprehensive Integrity Framework’ – capable of applying to both personal and institutional integrity, and to different levels of institutions (including sub-institutions and institutional complexes). We distinguish between three sorts of integrity: consistency-integrity (whether the agent’s acts accord with her claimed values); coherence-integrity (whether the agent’s character and internal constitution accord with her claimed values); and context-integrity (whether the agent’s environment facilitates her living up to her claimed values). We then employ this conceptual system to explore similarities, differences and overlaps between personal and institutional integrity, drawing in particular on moral philosophic work on personal integrity (on the one hand) and on ‘integrity systems’ and public administration approaches to institutional integrity (on the other).

The purpose of this general review is to enhance understanding of the importance of a corporation’s whole ethics of governance regime and the connection to governance practices. This connection is often missing from corporate governance discussion. There is need for better business community awareness of a well-developed ethics of governance regime guiding appropriate board structure and composition choices subject to firm age and size, understanding of how these choices evolve as the firm matures and grows, plus the benefits from more emphasis in this area for company director training and development. This paper synthesises the theoretical and empirical insight from the ethics and corporate governance literatures to give guidance on best practice for large, medium size and small stock exchange listed companies. This synthesis of the literature evidences that the preferred Australian Institute of Company Directors agency theory prescription for a corporate board is not always optimal. In terms of practical implications advice is given on sound choices on board composition, director selection, plus director training and development that will give the best probability of effective board decisions and strong firm performance – this is not ‘one size fits all’ corporations advice. Future research should focus on whole ethics of governance regimes and governance practices in place for companies that have succeeded compared with companies that have failed. This will improve understanding in this area. This is a substantial future research agenda item as deeper knowledge of this contrast may add significantly to understanding of corporate success and failure.

This paper considers the effects of the military organization upon the morality of the society within which that military organization exists. It initially considers Drucker’s arguments as to the end of the Prussian Army which explores the significance of the military’s role as an organization within a society. It then examines some dilemmas of military service and some of the harsher realities of military training. It concludes by considering those aspects with regard to a military reservist’s account of his 18-year service in the military reserves where he remained loyal to his military unit whilst steadfastly opposed to much of what that military was helping to secure in part by his continued service in the military reserves.

Economic activity is typically provided by three distinct sectors. For-profit entities seek to maximize owner profit by providing various goods and services. The not-for-profit sector consists of private or quasi-public entities that provide goods and services without regard to making an explicit profit. Government entities extract resources from the economy and redistribute them to achieve certain public goods.

Recently a fourth or gray sector has developed that combines elements of the other three. As a corporate form that explicitly sacrifices profit maximization to advance some predetermined social good, benefit corporations are one example of this gray sector. Owners are aware of this dual mission but still invest as the social objectives are consistent with their personal goals. Thus, the benefit corporation can be viewed as a for-profit entity subject to an explicit social welfare constraint.

Since the late 1960s governments have spent trillions of dollars on a wide variety of social welfare programs. Nevertheless, poverty persists and government altruism may have made poverty more intractable in some respects. Economic logic suggests that providing social welfare transfer payments with few work or training requirements can make recipients dependent and enable dysfunctional behavior. Over time this may rob recipients of opportunities for labor and self-sufficiency.

Benefit corporations are typically viewed as a form of socially responsible investment that leverages the economic advantages of market-based systems. To date, however, little has been written about the benefit corporation’s potential ethical dimensions. The purpose of this paper is to provide a moral argument based in Catholic Social Teaching to support the use of benefit corporations as a substitute for some government service programs. Our arguments are centered on the primary principle of Human Dignity and will include, but not be limited to: Work, Solidarity and there role social and economic society as well as the Role of Government or Subsidiarity (including the Welfare State).

This paper explores the question of whether the identification of many wrongdoings in an organisation requires knowledge of the technical and operating mechanisms of that organisation. If such is the case, many ethical problems cannot be resolved by a generalist. They must be left to people with knowledge of that industry. In attempting to answer the question, the paper examines 11 different types of organisations. It then asks how the ethical issues in those organisations might be resolved. The organisations are veterinarians, pharmacies, media companies, engineering firms, doctors, general businesses, including two sub disciplines, marketing and accounting organisations, nursing institutions, political parties, scientific research organisations, legal firms and information technology companies. Each can be a small professional company, locally based, or a large organisation, possibly international. Each exhibits one or more ethical problems that are not easily resolved by accepted ethical theory. Accepted theory, as further defined in the text, is the mainline ethical theories that would be core components of most ethics texts or courses. The question arises then on how would ethics be taught if the ethical issues require specialised knowledge of that industry sector. After examining the 11 industries, the paper puts forth two views. One is that a number of wrongs can be identified in industries and organisations where the ethical problems are complex and difficult to resolve, and where the standard ethical theories are of little or no help. Resolving these issues requires action from the organisation, or from the industry association encompassing all companies within that sector. A further complication has developed in the near explosive growth in whistleblower protection systems. These systems, now introduced in close to 30 countries around the world, have their own lists of wrongdoings for which the whistleblower will receive administrative and legal support. These lists of wrongs are distinct from any moral theory One conclusion to be drawn is that new methods possibly need to be found for teaching the identification and resolution of ethical issues. A second is a consequence of the first – that the teacher of ethics in these courses has to be drawn from within the industry. Further questions then arise: One is whether this demand then requires that this industry specialist learn moral theory? A second is then how would generalist applied ethics causes be taught (in humanities departments for instance)? Alternate viewpoints on joint teaching by a moral specialist and an industry specialist have been put forward. The paper puts forward one possible approach for the industry courses – that the industry specialist has to present the course, with new methods and content, but that a theoretical content is taught by someone knowledgeable in ethical theory. For generalist courses, the moral theorist has to include a sufficiently wide sample of industry and organisational ethical issues to ensure that students are aware of the wide range of ethical concerns that can arise, as well as approaches to resolving them.

The Equator Principles are a transnational corporate social responsibility initiative in the project finance sector. In 2013, the Equator Principles Association celebrated the tenth anniversary of its principles and at the same time the formal launch of the latest generation of the Equator Principles (EP III). The paper describes the historic development of the Equator Principles – from the initial drafting process in the early 2000s up to the latest review process which led to the third generation of the Equator Principles. The paper also analyzes the current state of affairs of the Equator Principles (Association) and gives a brief outlook on potential lines of (future) development. In particular, the paper deals with the following questions: What are the main characteristics of the Equator Principles framework? What are the relevant actors involved in the drafting and reviewing process? Why are the EPs and other organizational and associational codes of conduct in the finance sector so important? What has been achieved so far by the Equator Principles (Association) and the participating (financial) institutions and what remains to be done?

The first veterinary school was founded in 1761, as a professional school not as a trade school. This has had a lasting impact on the role of the veterinarian in society, in industry, and in organizations. This paper recounts the circumstances of the founding of that first school in France and discusses the impact that professional institutions can have on ethics in organizations more generally.

Moral exemplars provide us with important case studies of optimal moral flourishing. Although most historians rate Abraham Lincoln as the most moral American president, their analyses do not utilize the perspective of moral development theory or research. This project asked whether such a perspective could contribute to a better understanding of Lincoln’s abundantly well-examined self and actions. This study examined the moral self of U.S. President Abraham Lincoln through close textual analysis of his brief autobiographical writings and his ethical turning point, his 1854 Peoria Speech attacking the morality of slavery. Even the limited sample of one major speech and three brief writings about life events provided evidence for the usefulness of McAdams’ method of examining life narratives for central themes and textual elements and for Colby and Damon’s (1992) method of interviewing exemplars and identifying common traits. Our methods allowed for no carefully constructed interview or clarification questions but rather relied on historical texts constructed for political goals. Major figures in the exploration of moral selves suggest that the centrality of morality to people’s sense of self lies at the heart of moral motivation and action. Studies of historical moral exemplars provide individuals and organizations with powerful role models for optimal ethical functioning and highlight the importance of fostering the centrality of morality in organizational leaders.

While much of the existing research regarding moral exemplarity has focused on living individuals, examination of the lives of historical figures can also prove invaluable in understanding moral motivation. Consequently, this paper sought to apply Frimer and Walker’s (2009) reconciliation model and methodology in examining themes of agency and communion in the motivation of Miep Gies. Frimer and Walker’s (2009) Self-Understanding Interview and the VEiN coding method (Frimer, Walker, & Dunlop, 2009) served as guides for examining published and audio-recorded interviews, biographical and autobiographical information, as well as video-recorded speeches given by Gies. Aspects of an integrated moral identity appeared evident in the personality of Miep Gies as indicated in statements reflecting an overlap of both agency and communion. The study was limited in its reliance on publically available documents about or by Gies. Further, reliance on these documents, as opposed to a “live” interview, limited the ability of the author to identify responses to all questions included in Frimer and Walker’s (2009) interview or fully utilize the VEiN coding method (Frimer et al., 2009). Exploration of life narratives of historical figures can provide insight into an integrated moral identity as well as examples of developmental crossroads Frimer and Walker (2009) cited as essential in their reconciliation model. Comprehension of this reconciliation process is critical to understanding what lies at the heart of moral motivation and action as well as the ability to promote such growth in the lives of others.