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This focal chapter deals with the understanding of important ethical theories used in executive moral reasoning such as teleology, deontology, distributive justice and corrective justice, virtue ethics versus ethics of trust, from the perspectives of intrinsic versus instrumental good, moral worth versus moral obligation, and moral conscience versus moral justification. Ethical and moral reasoning will power executives to identify, explore, and resolve corporate moral dilemma, especially in the wake of emerging gray market areas where good and evil, right or wrong, just or unjust, and truth and falsehood cannot be easily distinguished. We focus on developing corporate skills of awareness of ethical values and moral imperatives in current otherwise highly commoditized and turbulent human, market, and corporate situations. The challenges of morality are multifaceted and diverse. Professionals usually have self-discipline and self-regulation abilities, ego strength, and social skills. Morality in the professions is not concerned with the issues of rudimentary socialization; rather, the issues involve deciding between conflicting values, where each value represents something good in itself. There are problems in both knowing what is right, good, true, and just on the one hand, and on the other hand, in doing what is right and avoiding wrong, doing good and avoiding evil, and being fair and just while avoiding being unfair and unjust. Several contemporary cases will illustrate the challenging dimensions of ethical and moral reasoning, moral judgment and moral justification embedded in executive decision processes, and corporate growth and profitability ventures.

More than at any other period in human history, humankind is currently at the crossroads of war or peace, growth or decline, progress or regress, life or death, and hell or heaven. We cannot leave these opposite polarities and possibilities to politicians and bureaucrats, to chance and expediency. These are expressions of turbulent markets. We must design and invent, plan and predict, and monitor and control our future and that of our posterity. In this regard, the concept of human personhood cum human dignity and responsibility is a fundamental part of this new self-understanding and undertaking. Ethics and morality are critical components on this creative journey to destiny. Corporate ethics, in particular, requires the development of a clear understanding of the existential situation of turbulent markets – that is, the relationship between executive autonomy and freedom, between human creativity and innovation, and between human culture and corporate social responsibility. Other critical concepts such as accountability and moral responsibility, the ethics of rights and duties, the executive virtue of moral and ethical reasoning, the building of trusting and caring relationships, and the like will be discussed in subsequent chapters.

In the wake of the extraordinary financial scandals that both preceded and followed the September–October Financial Crises of 2008, discussions about the executive virtues of honesty and integrity are no longer academic or esoteric, but critically urgent and challenging. As representatives of the corporation, its products and services, corporate executives in general, and production, accounting, finance, and marketing executives in particular, must be the frontline public relations and goodwill ambassadors for their firms, products, and services. As academicians of business education, we must also analyze these corporate wrongdoings as objectively and ethically as possible. What is wrong must be declared and condemned as wrong, what is right must be affirmed and acknowledged as right. We owe it to our students, our profession, our stakeholders, and to the business world. Contemporary American philosopher Alasdair MacIntyre (1981) proposes the issue of morality in a threefold question: Who am I? Who ought I to become? How ought I to get there? The answer to every question refers to the virtues, especially to corporate executive virtues. This chapter explores corporate executive virtues, especially the classical cardinal virtues of prudence, temperance, fortitude, and justice as defining and enhancing corporate executive life.

Ethics is fundamentally a science of social and collective responsibility. Ethics concerns human behavior as responsible or accountable. Because of the nature of social interaction, certain members of the society will bear greater authority, and hence, greater individual and social responsibility than others. In our world, personal responsibility and social responsibility are hardly separable. Personal responsibility becomes responsibility for the world because the person and the world are inseparable. In this chapter, we use the term responsibility from a legal, ethical, moral, and spiritual (LEMS) standpoint as some promise, commitment, obligation, sanctioned by self, morals, law, or society, to do good, and if harm results, to repair harm done on another. Hence, responsibility from a moral perspective is trustworthiness and dependability of the agent in some enterprise. Its inverse is exoneration – the extent to which one is excused from commitment and repairing the harm done to others by one’s actions. We apply the theories and constructs of executive responsibility to two contemporary cases: (1) India’s Super Rich in 2014 and (2) the Fall and Rise of Starbucks. After exploring the basic notion of responsibility, we present a discussion on the nature and obligation of corporate responsibility into three parts: Part I: Classical Understanding and Discussion on Corporate Responsibility; Part II: Contemporary Understanding and Discussion on Corporate Responsibility, and Part III: A synthesis of classical and contemporary views of responsibility and their applications to corporate executive responsibility.

This first chapter explores the basic foundation of corporate ethics: the human person in all its dignity and mystery, its corporeality and emotionality, and its cognitive and volitive capacities of moral development. Four fundamental characteristics of the human person, namely individuality, sociality, immanence, and transcendence, will be examined for their potential to understand, live, experience, and witness corporate ethics and morals. We explore the profound meaning and mystery of human personhood invoking several philosophies of the good and human dignity as exposed by Aristotle and Thomas Aquinas in the West, by the doctrine of Dharma in the East as expounded by Gautama Buddha, Mahabharata, and Bhagavad Gita, and by Prophets Confucius and Tao, in the East. Several contemporary cases of great human personhood are analyzed: for example, Peace Nobel Laureate Nelson Mandela from South Africa (1993) and Peace Nobel Laureate Liu Xiaobo from China (2017) – cases of human abuse that turned into triumphs of human dignity.

Leadership cannot exist without followership. The phenomenon of direction and guidance, coaching and mentoring, has at least three components: the leader, leadership, and followers. With each component, the composition of purpose and goals, ethics and morals, rights and duties, and skills and talents is critically important. While the leader is the central and the most important part of the leadership phenomenon, followers are important and necessary factors in the leadership equation. Leaders and followers are engaged in a common enterprise: they are dependent upon each other; their fortunes rise and fall together. Relational qualities define the leadership–followership phenomenon. A major component of such a relationship is how the leaders create and communicate new meaning to followers, perceive themselves relative to followers, and how the followers, in turn, perceive their leader. This mutual perception has serious ethical and moral implications – how leader uses or abuses power, and how followers are augmented or diminished. This chapter features the essentials of ethical and moral, corporate executive leadership in two parts: (1) the Theory of Ethical and Moral Leadership and (2) the Art of Ethical and Moral Leadership. Several contemporary cases such as inspirational leadership of JRD Tata, Crisis of Leadership at Infosys, and Headhunting for CEOs will illustrate our discussions on the ethics and morals of corporate executive leadership.

Rights and duties are involved in every area of business and markets, and society and governments. Most often, rights and duties involve serious ethical and moral issues of conflict. A good theory of the ethics of rights and duties, obligations, and responsibilities will empower us to understand the impact of our actions on various stakeholders. Additionally, a deep understanding of rights and duties could help us to analyze better the impact of our executive actions on various stakeholders and, in particular, to fathom the damaging effects of rights and duties violated by the man-made current financial crisis when seen from an ethical and moral point of view. Our coverage on the ethics of corporate rights and duties will comprise of two parts: Part 1: The Nature of Corporate Business Rights and Duties, and Part 2: Respecting Corporate Rights and Duties. The chapter will feature Newcomb Wellesley Hohfeld’s framework of legal interests such as claims, privileges, power, and immunity and its various applications to contemporary market and corporate executive situations. We illustrate the theory of rights and duties using several cases from the current turbulent markets.