The desire for work, income, and better living conditions is the main cause for international migration. Such labor migration is also called economic migration, although it has many non-economic aspects and side effects as well. This article seeks to examine the reasons for and the consequences of international labor migration in its different dimensions. This will take into consideration the interests of all three groups involved: the migrants and their families, the countries of origin and their peoples, the host countries, and the local populations. The core of the article is a social ethical evaluation of the conflicts of interest revealed in the analysis, considering the values of human dignity and justice. The aim is to explore how to balance different interests through a humane and fair immigration policy and international migration partnership.

This paper examines how Japan has embraced advanced technologies to address the challenges of an aging society and shrinking labor markets. Using Japan as a case study, this paper explores the relationship between human dignity, the intrinsic value of work, and the fourth industrial revolution. The paper is divided into four sections. The first section describes the scale of aging and shrinking labor markets in Japan, and the measures that the Japanese government has used to tackle these problems. The second section offers a selection of five mini cases that show how advanced technologies are used in different sectors of the Japanese economy. The third section outlines some ethical concerns that go beyond utilitarian benefits of using advanced technologies to address the problem of aging. The perspective of Catholic Social Teaching (CST) is adopted as a main advocate of a person-centered social ethics. The fourth section offers an assessment of Japan’s experiment and outlines further research opportunities.

Current models in finance make strong, self-limiting assumptions about the nature of human utility, human relationships, human flourishing, and human growth. These assumptions facilitate tractable solutions to financial problems but ignore subjective determinants of human well-being and value creation within the firm. The philosophical and theological traditions of Catholic teaching, as well as evidence on human flourishing from model social science, call us beyond these models. This paper focuses on three specific areas where a “disconnect” exists between Catholic teaching and current finance models, highlights the relevance of Catholic teaching, and sketches a framework for more fully integrating human flourishing into finance models.

The purpose of this qualitative research is to conceptualize the factors that influence human flourishing. Data has been gathered through in-depth, semi-structured interviews with thirty global heads of Human Resources of manufacturing companies in India and South Asia. Data from these interviews are analyzed using grounded theory methodology to categorize concepts and create a conceptual model of the main themes which contribute to human flourishing. This study highlights three such themes: (1) opportunities for advancement; (2) personal capability; and (3) leading people inclusively. This article provides implications for a more complete model for entrepreneurs, policy makers, and HR heads to understand the conditions necessary for human flourishing, filling a literature gap in the study of human flourishing from the perspective of an employer.

This paper aims to expound and develop the idea of work as enterprise in response to the challenges of the fourth industrial revolution and to demonstrate that Christian theology provides a conceptual framework which helps locate work within an understanding of purpose and human dignity. This paper defines enterprise, considers the purpose of work, and reflects on themes from the common Christian theological tradition which give meaning to the idea of work as enterprise. Further, this article considers the challenge of technology, the place of the market and ethics, the role of innovation and creativity, questions of freedom and regulation, the central place for the development of skills and education, and the transformational nature of work. In addition, this paper has three policy propositions and some practical advice. Work matters because it is at root an expression of our humanity. Technological advance poses both perils and opportunities. The development of the idea of work as enterprise within a framework of Christian theology places entrepreneurship, creativity, and innovation at the heart of our collective response to the fourth industrial revolution.

As our work is ever evolving from agrarian to more service-oriented tasks, the rise of machine learning is the advent of an intelligence that contrasts with the natural intelligence exhibited by humans. Many see the emergence of artificial intelligence (AI) as simply another opportunity for business to exploit. Additionally, as coding becomes the new language of the business world, the challenge of using data and analytics to help foster a new generation of human flourishing lessens with organizations solidifying their protocols for the use of AI. As our work changes, it is vital for business to recognize that being a force for good requires policies, procedures, and programs that will respect and promote human dignity at all levels, even amidst the changes brought by AI initiatives. This person-first philosophy needs to be a critical component of any future strategies business utilizes to uphold the well-being of all stakeholders.

The technological developments of the Fourth Industrial Age have set the stage for myriad breakthroughs in the field of data and analytics. However, these innovations have also brought with them new threats to the autonomy and dignity of the human worker. This paper aims to identify some of these new challenges to the integral human development of the worker and to propose principles from the Catholic Social Tradition on the worker that can be practically implemented to address them. By doing so, an ethical framework may be established to preserve the realm of work from dehumanization brought on by an increased focus on algorithmic computation.

This study provides an overview of the different forms of labor contracting in the Philippines, as found in the “formal” economy, i.e., the traditional sectors of Agriculture, Industry, and Services, as well as the “informal” or gig economy. It also discusses similarities and differences between the “formal” and “informal” economy, as well as the increasing precarity of labor contracting, regardless of industry sector and the nature of work. The paper concludes with recommendations to address the precariousness and inequality of labor contracting within the immediate future.

In this paper we have two main goals. The first is to challenge two key elements of reductionist thinking concerning human work inherited from the Information and Communication Technology revolution that have significantly shaped current concepts of work at both the individual and institutional level: the ‘flexible man’ model and the obsession with the objective function of economic productivity. We show how, combined with the logic of productivity as a means for continuous economic growth, these elements justify the overlapping of value and price. This overlap characterizes current meritocratic paradigms. Our second goal is to show how and why an emerging integrated paradigm is a more suitable model for taking into consideration the specifically human dimensions of work. These dimensions encompass the sphere of caring and are mostly buried in the functionalist-mechanistic system. In this context, we argue that the COVID-19 pandemic can work as an exogenous shock useful to boost the rise of this new paradigm of human work.

The acceleration of technological change due to Industry 4.0 causes a need for new features of old virtues. Recent discoveries in neuroscience and in cognitive behavioral therapy complement classical virtue theory, especially that of Aristotle and Aquinas, to offer new scientific appreciation for classical virtues and more effective strategies for their acquisition. Self-mastery requires the ability to maintain focus on the task at hand in accord with one’s commitments by avoiding rumination, intrusive thoughts, and distractions. Mindfulness, positive psychology, and neuroscience complement the recent philosophical study of the virtues of acknowledged dependence (MacIntyre) and offer strategies for embracing stress for personal and community growth through work within teams shaped by shared goals. The freedom to focus in accord with personal commitments can both contribute to and benefit from the shared goals of a team that is shaped by a common hope.

Industry 4.0, which is at the core of the Fourth Industrial Revolution, posits the challenge of humanizing it. Drawing upon Catholic Social Teaching (CST), this article offers a set of ethical and spiritual criteria for such humanization. The starting point is a positive attitude of CST toward technology, admiring it not only for its usefulness, but also as an expression of human creativity, ingenuity, and beauty. This entails a transcendent sense leading to praise the Creator. At the same time, CST warns that technology involves the risk of fostering a techno-centered worldview and calls for a humanistic-centered worldview. Other ethical criteria regard conducting technological developments with ethical guidelines, minimizing inside effects of technological implementations, managing technology for the common good, and introducing technology into the production process in respect of human dignity and favoring human flourishing.

In an era where autonomous technologies are progressively taking over more complex tasks and decision-making previously done by humans, the mastering of paradox-based skills and effectively reconciling paradoxical situations in everyday life will become increasingly important. This paper asserts that understanding and living with paradox is not only necessary for the future of work but also for human flourishing. While work is the primary means by which humans flourish in the traditional sense, there are deeper and more holistic understandings of human flourishing which requires the acceptance and learning of paradoxical realities. Those who are steeped in the understanding and reality of paradox in everyday life can also be more open to these deeper and more holistic understandings of human flourishing.

Ethics management programs have become a popular first step for organizations to manage ethical risks and employee behaviors. However, such programs may fail to foster moral responsiveness or acknowledge broader societal issues. This article contributes to this discussion through an analysis of qualitative data from an ethics survey of fifteen South African companies. Results indicate employees experience persistent unethical behaviors in the form of the disrespect, bullying and discrimination. Reflecting on these results, the article explores the limits of ethical management programs, and whether a compliance approach undermines the transformative ethics that is most needed in organizations struggling with diversity and inclusion. Drawing on Levinas, the article shows that openness to the face of the Other does not lend itself to instrumental orientations, nor to formalized, standardized responses. Instead, moral responsiveness to particular Others is required, and it is this aspect that may be absent from South African ethics initiatives.

Muhammad Yunus, Franck Riboud, Grameen Danone, those are some names and projects that may come to mind when thinking about social entrepreneurship. But what about Paul of Tarsus, John Chrysostom or Basil of Caesarea? In this theoretical article, we propose to revisit the ancient notion of oikonomia. Greek philosophers and after them the Church Fathers have drawn for more than twelve centuries the contours of this notion. In the light of their works, we consider the promise of an economy that can be intrinsically altruistic and generous. Building on the work of Paul Ricoeur, we study the ethical dimension of oikonomia as economy of the self, others and the city. The Christian oikonomia is then interpreted as practical wisdom. And at the top of it, social entrepreneurship appears as a sign of a new ethical form of economy that we call relational economy.

The benefit corporation (BC) is a for-profit corporation required to create a positive impact on workers, communities, society, and environment. The purpose of this paper is to explore how BCs reconcile dominant and alternative frames of profit. This study presented here explores three BCs in the U.S. through a dual-method approach based on observations and interviews. The study reveals how BC members understand and express the idea of profit. Furthermore, it shows the formation of an alternative frame of profit and elucidates three processes whereby the dominant and alternative ideas are reconciled. It highlights both interpretive capabilities and limitations of social actors within the dominant discourse of the contemporary social-economic system.

The prevalent rule-based perspective on diversity management renders most diversity initiatives more or less uniform, and it therefore also renders the individual(s) in charge of these initiatives replaceable. Against this background, this article argues that an ethical realignment towards a virtue-based perspective, focusing on the diversity manager him- or herself, could help rethink diversity management, and to refashion it into a more impactful shape. The virtue in question is the Aristotelian notion of the virtue of practical wisdom (phrónēsis). Making their practical wisdom a selection criterion for the recruitment process is a first step in the direction of upgrading the concept of diversity management. However, it is also important to adjust their working conditions, the design of their role, as well as their autonomy and performance evaluations in a way that allows them to develop, maintain, and practice this phrónēsis.

Impact investment ventures are growing in the modern economy. However, the recent failures of some impact investment ventures are a cause for concern. Unfortunately, our concern about the ethicality of these kinds of social exchanges seem to emerge when it is too late. Namely, we become concerned about lack of ethics when a venture has failed or is collapsing. A better approach would be for us to have a means to proactively assess and improve the degree to which the arrangements and practices of a social exchange meet ethical standards. Whereas much work has been done to equip social ventures to evaluate their impacts, little work has been done to create frameworks that could be used to assess the degree to which social exchanges integrate ethical practices in their designs. This paper proposes such a framework. For illustration purposes, the proposed framework would also be used to evaluate the One Acre Farm, an impact investment venture in Africa.

During the professional socialization process, nascent professionals internalize the moral values of their profession. Since professional socialization begins in professional schools, this article provides a new conceptual framework for professional ethics education which highlights the affective aspects of moral formation. To create the conceptual framework, this article synthesizes the ideas of Durkheim, Kohlberg, Hoffman, and Haidt on moral formation, with Durkheim as a common thread. In this conceptual framework, the internalization process is influenced and promoted by social discipline, which includes both cognitive and affective aspects. Desirable social discipline can be achieved when cognition and affect are well-balanced, with respect for individual differences. To illustrate how this conceptual framework can be applied to professional education, this article uses the specific example of engineering ethics education.

This study focuses on the role that a) Compassion for Oneself, Others and the Environment (COOE) and b) Desire for Sustainability Awareness (DSA) have on Fair Trade Fashion Consumption (FTFC). The newly derived COOE and DSA constructs help us understand how emotions of compassion and the desire for sustainability awareness may influence consumer behavior. Online surveys were distributed consumers who shop at Fair Trade clothing companies and consumers shop at conventional clothing companies. The sample size for this study is one hundred and twenty-nine, N=129. Results were analyzed through correlation and multiple regression. It was found that COOE and DSA are positively related to FTFC. In addition, Internet Engagement (IE) functions as a moderator for the relationship between DSA and FTFC.

The paper analyzes managers’ stance toward the ethical responsibility of those who work for multinational garment retailers. Most are charged with the social compliance policies affecting relationships with subcontractors. This study is based on interviews conducted with major European and American retailers. Our research question is: what is the normative stance of our respondents? We find that they reject the ideological way in which the normative debate on sweatshops has been conducted by business ethicists during the last decades. These executives’ implicit conception and scope of their moral responsibility is much more in line with Iris Young’s (2006) conception of ‘political responsibility’. This managerial ethical position has not been adequately captured by earlier writings on this topic. In general, the managerial ethical framing of issues like child labor, minimally decent labor conditions, a living wage, etc. is at odds with how these issues are usually treated in the philosophical debates around sweatshops. Examining both visions allows us to better grasp the pragmatic normative stance of business practitioners as well as the dynamics of social compliance policies. In the conclusion, we draw both management lessons and research implications for more ethical interactions with suppliers.

As currently designed, the business corporation is primarily designed for one simple purpose: the enrichment of stockholders. Considering the immense size and wealth of many modern corporations, however, this prioritized focus has deleterious ethical consequences, including a burgeoning wealth gap between those who own or manage the corporation and employees. Several individuals and organizations are calling for a redesign of the business corporation to benefit those affected by business organizations, such as employees and communities. One such design, developed in the village of Mondragon in the Basque region of Spain, is employee-owned with extensive profit sharing, employee training, limits on executive compensation, and financial support for the surrounding community. To examine the differences between the status quo corporation and a modified Mondragon model, an analysis was performed of the financial, employee compensation, and stock information of a sample of corporations of the Fortune 500 under both systems. While aggregate financial position and profitability did not differ significantly between the two models for the tested corporations and time period, the employee compensation, financial commitment to training and education, community financial support, and ethics of the two models have profound differences.

Most executives recognize that the long-term financial health, prosperity and survival of their firm depend upon leaders who have good moral character. The article argues that a retrieval of Aristotle’s work on character and virtue can bring new clarity on how to identify and select leaders of our business institutions. The study presents a discussion of Aristotle’s phronesis or practical wisdom and how this focus might aid and abet the selection of appropriate leaders. The original contribution offered here centers on how virtue only makes sense for Aristotle in the context of a teleological worldview whereby human beings are seeking what is intrinsically worthwhile—purpose, meaning, health, and community life. For Aristotle, virtues are much more than what makes a person attractive to the job market. Catholic social teaching reflects this Aristotelian perspective on the role of business in society. The article concludes showing how Aristotle’s insight on phronesis offers a way to enhance standard processes employed in the selection of business leaders.

The average annual profits before fees of the $10 billion plus Renaissance Technologies’ hybrid Medallion “Leveraged, High Frequency, Artificial Intelligence (LHFAI)” trading hedge fund between 1988 and 2019 were about 66 percent. Total trading profits during this period were over $100 billion. The fund has never had a losing year. The fund is not open to the general public. First, distinctions among, in more or less historical order, the traditional market-maker trading model, the hedge fund trading model, the artificial intelligence trading model, and the hybrid LHFAI trading model are discussed. Second, the micro components of the LHFAI trading model are explained in the context of Renaissance Technologies’ Medallion Fund. Third, key positive contributions of the model with respect to profitability, low annual volatility, market liquidity, and intellectual property development; negative ethical issues concerning exclusive access, tax fairness, financial transparency, shared responsibility for losses and systemic risk, and short vs. long-term capital allocation are discussed. Potential reforms that retain the positives, reduce the negatives, and that could positively transform the model are discussed. Fourth, potential impacts that the potential reforms might have on the macro LHFAI form of finance capitalism and the larger finance capitalism political-economic system are considered. Fifth, conclusions are offered and discussed.

Existing work in the field of business ethics has explored how concepts in philosophy and other disciplines can be applied to blame at work, and considers blame’s potential impact on organisations and their employees. However, there is little empirical evidence of organisational blaming practices and their effects. This article presents an analysis of interviews with twenty-seven employees from a range of occupations, exploring their experience of blame, its rationale and impact. A diversity of blaming practices and perspectives is revealed, and in making sense of these the authors draw on recent theoretical developments—Skarlicki, Kay, Aquino, and Fushtey’s (2017) concept of ‘swift-blame,’ and Fricker’s (2016) notion of ‘communicative blame.’ The study also reveals a tension between a desire to avoid ‘blaming’ on the one hand, and a need for ‘accountability,’ on the other, and the authors explore the implications of the findings for organisations in seeking to ‘manage’ blame.

This paper is split into two parts. The first half analyzes conflicts of interests’ effects on judgment, the harms these effects threaten, and our current policies and practices for handling conflicts of interest. This analysis relies on scholarship in several fields, most prominently psychology, all of which have reasons to worry about conflicts of interest. This analysis will show that our current classifications of conflicts of interest and our current strategies for handling conflicts of interest are confusing, of dubious benefit, or both. The second half provides some tools for helping us to limit or avoid the harms of conflicts of interest. These simple tools focus on how we think about and classify conflicts of interest. Specifically, I recommend beginning to classify conflicts of interest in a new way: as either severable or systemic. These new classifications are not intended to be heavy conceptual machinery, but simple and valuable tools. These new classifications, even though they are not meant to be exhaustive or comprehensive, help delineate tractable strategies and help determine the distribution of responsibilities for addressing specific conflicts of interest.

Governments and companies are increasingly promoting and organizing Responsible Innovation. It is, however, unclear how the seemingly incompatible demands for responsibility, which is associated with care and caution, can be harmonized with demands for innovation, which is associated with risk-taking and speed. We turn to the tradition of virtue ethics and argue that it can be a strong accomplice to Responsible Innovation by focussing on the agential side of innovation. Virtue ethics offers an adequate response to the epistemic and moral complexity in innovation and encourages moral behaviour. We enumerate a number of virtues that people involved in Responsible Innovation would need to cultivate both related to responsibility, such as justice, anticipation, civility and inclusion, and virtues related to innovation, such as courage, dedication, curiosity and creativity. We put forward practical wisdom (phronesis) as a key virtue to regulate relevant virtues and to deal with the tension between responsibility and innovation. Practical wisdom helps an agent to find an appropriate mean in exercising and expressing the other virtues—where the mean is relative to the specific context of action and the role and abilities of the agent.

In this paper, I argue that businesses bear a pro tanto, negative, moral obligation to refuse to engage in economic relationships with representatives of intolerable ideologies. For example, restaurants should refuse to serve those displaying Nazi symbols. The crux of this argument is the claim that normal economic activity is not a morally neutral activity but rather an exercise of political power. When a business refuses to engage with someone because of their membership in some group, e.g., Black Americans, this is a use of political power to signal that Black Americans are other. Conversely, when businesses engage with someone who is clearly representing an intolerable ideology, this is a use of political power that signals the acceptability of that ideology. Businesses should not do this.

This article expands on existing models of analyzing business ethics of monetization in video games using the concept of categorical imperatives, as posited by the philosopher Immanuel Kant. A model is advanced to analyze and evaluate the business logics of video game monetization using a Kantian framework, which falls in the deontological category of normative ethics. Using two categorical imperatives, existing models of game monetization are divided into ethical or unethical, and presented using the case example of Star Wars: Battlefront II (2017). This analysis aims to provide video game developers and businesses with ethical guidelines for game monetization which may also be profitable for them in the long term. Within the framework of video game monetization, a deontological analysis is relevant due to the fact that the game developer is engaged in a continuous role of making the game more playable/payable. This article applies Kantian business ethics to the context of a new sector, that of video game businesses, and thereby presents a broader ethical perspective to video game developers, which will help them monetize games in an ethical manner which is also profitable in the long run.

What does it mean to aspire to philanthropy? How might this shape popular views about charitable purpose? By one-on-one interviews and a review of the ethics of giving in the American experience, I take a long look at how views on philanthropic giving have changed over time and how this has helped to shape, and re-shape, the ethics of giving.

This paper aims to integrate the concept of autonomous and subordinated work into Aristotelian organizational theory by enhancing the epistemological framework of neo-Aristotelianism and by adding a Thomistic interpretation of organizational practical knowledge. We sustain that, in order to advance our understanding of the firm in terms of excellence and the common good, the concept of practical knowledge applied to organizational theory requires reflection on the nature of work in modern organizations. For this, we will explain (i) how an organization that aims for excellence is most appropriately defined as a community of autonomous work, (ii) how practical knowledge in organizations must be defined considering work as deliberative production and, finally, (iii) how productivity in organizations is best described when work is envisioned in terms of autonomy and subordination.

The paper examines Villarán’s definition of conflicts of interest to improve it. Some clarifications are necessary but also some amendments. The basic difference consists of first distinguishing between interest and moral grounds, and, second, by emphasizing the voluntary nature of the commitment of the person facing a conflict of interest. Such a commitment arises within a work-related or professional context. It must be explicit with regard to individuals, public institutions, private organizations, whether for profit or nonprofit, or professional associations. To support this concept, a method is used that is similar to the recent tradition of the English-speaking world expressed by Rawls, instead of the search for universal or essentialist concepts of the Platonic tradition. The result is not a true definition of conflicts of interest, but a necessary one given our historical-social context.

The present study evaluated the relationship between job satisfaction and unethical pro-organizational behavior (UPB), directly as well as indirectly, through organizational commitment. Multidimensional constructs were utilized for job satisfaction and organizational commitment to provide a granular understanding of how these constructs can motivate employees to engage in UPB, which can threaten organizations' success and diminish the public's confidence in organizations. In order to test these relationships, a diverse sample of 617 participants was recruited through the online survey distribution platform Amazon Mechanical Turk (MTurk®) to test the theoretical model using structural equation modeling (SEM). The results indicated that identification, affiliation, and exchange commitment served as intervening variables between growth satisfaction and UPB, while no significant indirect effect of internal work motivation on UPB was found. Implications for research and practice are discussed.

This study examines the relationship between corporate social responsibility (CSR), a central ethical concern, and firm total risk, a central business concern, using a large US dataset spanning 1991 to 2015. It includes considerations for the recent financial crisis to establish whether firm engagement in specific CSR dimensions decrease (i.e., the risk reduction hypothesis) or increase (i.e., the resource constraint hypothesis) firm risk. The findings demonstrate the impact of CSR engagement is different, depending on the specific CSR dimension in question, and the relationship between each of the seven CSR dimensions and total risk is time varying. Our empirical evidence suggests that firms should prioritize different CSR dimensions as an integral part of their CSR strategies and strategic management and change the priority in different market conditions.

This article outlines different attempts to define integrity, and argues, with reference to the theory of moral particularism, that definitions acquire universal applicability at the expense of their informative value. The article then proceeds to more delimitating definitions that emphasise the social aspect, and argues that their ideas of the concept, like courage, require certain situations in order to unfold. Since not every person is challenged to act with integrity, the delimitation requires a distinction between manifest integrity and dormant integrity, or dormant lack of integrity. Persons of influence, like politicians and managers, on the other hand, are challenged on a regular basis because their position requires communication of values in a public space, against which the public can evaluate their actions. A delimitating definition therefore ties the question of integrity to people in leading positions.

Is it socially responsible to price at a premium, company branded generic pharmaceuticals in emerging economies? Building toward an answer to this question, the study first describes the role of the branded generic sector in the economic success of the global pharmaceutical industry. Second, the concept of “shared value,” i.e., the link between competitive advantage (and its theoretical antecedents found in corporate reputation and signaling theory) and corporate social responsibility (CSR), is introduced and applied to the global pharmaceutical industry’s position on marketing generic pharmaceuticals. Third, an empirical evaluation ascertains whether there is sufficient shared value for this company branded generics pricing strategy to be considered “socially responsible.” Fourth, after concluding there is sufficient shared value, a discussion section offers a public/private (corporate and industry self-regulation) framework that will help ensure that safe and effective pharmaceuticals are sold to consumers in developing economies. Lastly, a summary and conclusion section completes the article.

In the last decade, scholars have rediscovered the Italian tradition of Civil Economy and the different vision of the market it offers, one that is anchored on reciprocal assistance in market exchange relationships. So far, scholars are discussing Civil Economy especially in the fields of the history of economic though and in economics and philosophy. Nevertheless, this article proposes looking also at business ethics and organizational studies through the lens of Civil Economy, especially considering the notion of virtue provided by civil economists. In particular, it sets forth an organizational model that derives from Civil Economy, i.e. the agape-based organization.

Since 2004, Nanyan Cao and some other scholars have implicitly or explicitly claimed that engineering ethics in China is importantly different from engineering ethics in the United States. The evidence for that claim relies on examination of official documents or certain large features of Chinese society (for example, millennia of Taoism, Confucianism, or Buddhism). Though neither is an uncommon approach to studying engineering ethics in China, neither actually studies engineering practice in China. This article does—or at least gets much closer. The authors have asked almost two hundred (Mainland) Chinese engineers about what they do and why they do it. The responses suggest that Chinese engineers, or at least those surveyed, think about engineering ethics much as American engineers do. The responses also suggest that much more empirical work needs to be done before we can claim to understand either the similarities or differences between engineering ethics in China and engineering ethics in “the West.”

Professional ethics refer to the rights and obligations of practitioners within any profession or sector. Engineering ethics can be discussed based on the nature of the engineer profession and its implications for professional morality. This paper takes the virtue ethics lens to discuss engineering ethics and argues that, since human and social good derives from professional virtues, protecting the public interest is a professional virtue of engineers. Further, since the protection of the public interest redounds to human and social good, then engineers are bound by the nature of their professional role to achieve these two interconnected aims, namely, protecting the public interest and promoting human good. The importance of virtues is eminent in the way an engineer improves her professional conduct and this has an impact on the social environment and on human good in general. Given an engineer’s concern with the broad public needs of people, the engineer’s function counts as a morally good role, and therefore can be described as one that can lead to human flourishing.

Spoofing is the act of placing orders to buy or sell a financial contract without the intention to have those orders fulfilled in order to create the impression that there is a large demand for that contract at that price. In this article, I deny the view that spoofing in financial markets should be viewed as morally permissible analogously to the way bluffing is permissible in poker. I argue for the pro tanto moral impermissibility of spoofing and make the case that spoofing is disanalogous from bluffing in at least one important regard—speculative trading serves an important economic role, whereas poker does not.

Decisions made by supply chain managers have a far-reaching impact on the economic, environmental, and social performance of entire supply chains, even though many activities in the supply chain occur beyond the direct control of those managers. Some firms establish a line of moral disengagement, beyond which they distance themselves from the impact of the activities of the supply chain. This research addresses the question of why some managers choose to take responsibility for the sustainability of their supply chain, while others do not. We argue that the ethical predisposition and moral complexity of the individual employee moderates the interpretation of the drivers of sustainability, increasing or decreasing their ability to build a business case for supply chain responsibility. We also argue that ethical predisposition moderates the likelihood of a business case being enacted. We then discuss theoretical and managerial implications resulting from this finding.

What is a conflict of interest? What is morally problematic about one? Beginning with the definition, this paper organizes the core (philosophical) literature and creates two continuums—one devoted to the more specific definition of ‘interest,’ and the other to that of ‘duty’ (two elements that belong to the definition of conflicts of interest and over which the debate revolves). Each continuum places the authors according to the narrowness or broadness of their positions, which facilitates the understanding of the debate as well as what is at stake when defining conflicts of interest. The paper then develops a moral analysis that leads to the sought-for definition and to an explanation of why we should treat conflicts of interest carefully. While doing so, the paper discloses the criterion to judge whether a definition is right and presents the duties that makes conflicts of interest special as ‘tertiary’ duties of morality.

This study explores the relationship between decision-making styles and moral judgements to understand how maximizers and satisficers differ in their analysis of ethical dilemmas. It also explores the linkage between decision-making styles and the moral reasoning perspectives of absolutism and relativism, investigating if ethical ideologies play a mediating role in how maximizers and satisficers evaluate ethical situations. In order to test these relationships, data is collected from a sample of 187 upper level business students. Results indicate that maximizers are significantly more likely than satisficers to judge ethically ambiguous actions as immoral. Underlying this effect, maximizers (vs. satisficers) have a more idealistic ethical ideology.

Many ethicists endorse a character-based approach to business ethics (CBE). This approach includes a focus on the development of particular traits of character amenable to virtuous business practices. Situationists claim, however, that traditional understandings of character are challenged by various findings in empirical psychology. While defenders of CBE have responded this claim, these responses are very similar to those made in defense of a more general virtue ethical theory against situationist arguments. I argue that whatever promise such responses to situationism have in defending a general virtue ethical theory, they are not up to the task of defending CBE. As a result, CBE is in need of novel responses to situationism or significant revision.

In the wake of judgement failures currently characterising professional audit practice, the article will argue that this case illustrates a larger problem associated with the technocratic deformity of practices within modern institutions. I will refer to the case of ethics, where human judgement has been offloaded to the performative practice of complying with codes and reduced to executing procedures. Getting to grips with what the issue is requires us to recognise the distinctive ethical nature of human rationality that cannot be replaced by machines. However, this distinctiveness is not sufficiently brought out in the current climate of work, where the conditions have instead reduced the capacities to engage in ethical judgment and to cultivate morality. Instead, the cognitive capacity to evaluate the ends of actions and the dispositions to act in that light are central to fostering morality. By drawing on the Aristotelian and sociocultural traditions, I point to the complexity and significance of rationality, and offer a way to rethink professional education practices that could reorient individuals’ thinking and cultivate ethical responsivity.

This article considers the problem of how employees and observers of business ethics behaviors often do not know how to safely and effectively engage with business ethics issues and cases. The ameliorative method of social situational business ethics framing was analyzed. Key parts of the related literature from philosophy, sociology, organizational studies, and business ethics are reviewed. A literature gap between general framing theory and business ethics was identified with respect to the need for social situational framing in business ethics at the micro individual, meso organizational, and macro institutional levels. Theoretical propositions for bridging the literature gap and a wide variety of business ethics engagement case examples are developed as illustrations of and support for the propositions. Practical social situational business ethics framing implications for safe and effective business ethics engagement are considered.

Step therapy is an insurance company policy whereby patients must try a less costly treatment and fail-first before the insurer will cover another, more costly treatment. This article argues that (1) there are relevant and well-established principles of medical ethics—the duty to practice evidenced-based medicine and the duty to consider cost-effectiveness when treating patients—that constrain and guide physician behavior with respect to step therapy; (2) clinical practice guidelines (CPGs) promulgated by authoritative physician groups attempt to incorporate and reconcile the competing demands of evidenced-based and cost-effective medicine, although it is unclear whether they do so in a manner that appropriately considers all relevant ethical factors relating to cost-effectiveness; and (3) despite the potential shortcomings of CPGs, the ethical principles guiding and constraining physician behavior can help demarcate the ethical boundaries for other actors in the drug prescribing and reimbursement matrix, including insurance companies and benefit managers.

If market transactions are optimal, why do so many transactions occur within firms themselves? Ronald H. Coase explains this phenomenon by arguing that market transaction costs differ from intra-company transaction costs and that clear intra-intra-firm property rights have the effect of reducing transaction costs. But what exactly are the relevant transaction costs, and what factors determine them? Oliver Hart argues that market contracts are incomplete, and that the key to improving efficiency is putting the power to deal with these unspecified circumstances into the hands of owners within the same entity.In this paper, I argued that, the development of the theory and practice of business ethics as well as China’s innovative practice in recent decades provide a new perspective, one that is especially relevant to the issues raised by Case and Hart and that bear directly on the reform of China’s state-owned enterprises.

The purpose of this paper is to contribute to a vision for leadership in business, banking, and politics based on a recovery of virtue. It draws principally on the works of the classical philosophers Aristotle (384–322 BCE) and Plato (c. 427–347 BCE) in line with the contemporary resurgence of Aristotle associated with Alasdair MacIntyre and others. In the context of an ethical analysis of the Irish banking crisis (2008-2016), the paper will show how virtue ethics can contribute to the avoidance of a repetition of the disastrous financial crisis of 2008 in Ireland and globally. It proposes a holistic approach that integrates virtue and culture, ethics and governance.

With the rapid growth of native advertising, there has been an increased interest to address ethical concerns and deception online. To address this concern, we look at the consumer's ethical efficacy toward native ads and we compare native ads (such as in-feed and advertorial) to banner ads. Results confirm that consumers trust native ads more than banner ads. Moreover, we uncover that consumers ethical efficacy (i.e., confidence in ethical decision making) affects their intention to share native ads through eWOM. However, consumer individual differences influence intention to share content online and trust in the native ads. We study the moderating effects of salience, using the fashion context, and its influence on ad trust and willingness to share through eWOM. Recommendations for business professionals and academics are discussed and future research guidelines are addressed.

Personal life events of a chief executive officer (CEO) can generate tensions between the CEO’s right to personal privacy and the desire of shareholders for information. Such circumstances can create information asymmetry between the executive management and the shareholders of a firm, a situation likely to produce unfavorable pressures on an organization’s stock price. Failure to fully disclose material personal life events can impact the decision-making actions of the CEO, causing the stock price of the firm to vacillate as a result of rumors and other informational uncertainties. These vacillations in stock price may impact a firm’s liquidity, increase the cost of capital, and affect long term returns to shareholders. We draw upon the ethical leadership and signaling theory literatures to demonstrate how a firm can reduce stock price volatility through a CEO making non-required disclosures that reduce information asymmetry.

B Corporations are for-profit companies meeting specific social and environmental standards. This exploratory study into B Corporations aims to enhance the understanding of the certification on organizational performance. As previous research indicates that third party labels impact financial performance and that positive corporate social performance can lead to positive financial performance, this paper first seeks to determine whether B Corporation Certification positively impacts companies’ financial performance. Second, following previous B Corporation literature, this research tests whether certification leads to positive non-financial results in the form of strategic advantages. Finally, it asks whether Certification negatively impacts organizations’ plans to develop internationally and/or by going public. While this study’s results provide little support that B Corporation Certification impacts organizations’ financial performance or growth, they do indicate that B Corporations experience positive non-financial strategic results post certification. The results of this study may be used to infer or test conclusions about socially responsible labels more broadly in the future.

More than half of the S&P 500 and the Fortune 500 companies publish corporate social responsibility (CSR) reports. CSR is at the heart of a new form of corporation, the benefit corporation, which requires the pursuit of a social purpose as well as pursuit of profit. Thirty-four states, plus the District of Columbia, have enacted benefit corporation legislation. Most laws require that benefit corporations publish reports on their social purpose performance using a third-party assessment format. The purpose of this paper is to analyze 1,530 benefit corporations identified by B Lab and the state of Minnesota for proof of social purpose performance, as demonstrated in reports on their websites. The study found some companies with excellent reports, but those had had a CSR focus prior to becoming benefit corporations or had been Certified B Corporations. However, most benefit corporations in the study had no published reports; many have no websites.

In this article, we propose to comprehend the corruption mechanisms of tender bidding processes in terms of Human Resource Management (HRM) practices within informal networks. Taking the context of Kazakhstan, we analyze the behavior of individual actors as members of informal networks. Our analysis shows that both corruption and anti-corruption mechanisms can be explained in terms of HRM practices such as (camouflaged) recruitment (e.g., of powerful government officials via network ties), compensation (e.g., kickbacks for corruption; social recognition or shame for anti-corruption) and performance management (e.g., demonstrative punishment for corruption; extreme formalization, peer pressure or social sanctions for anti-corruption).

The Schwartz Values Survey (SVS), developed by Shalom Schwartz, was used to explore the values and value priorities of undergraduate business students in a mid-sized Canadian university. These business students considered family security as their top individual value and ranked successful, healthy, and enjoying life among their top ten individual values. On the other hand, detachment, accepting my portion in life and social power were least valued. They regarded Benevolence and Achievement as their top two value types (cluster of related values), and ranked the higher order meta-value Self-Transcendence first followed by Openness to Change. The accounting and finance majors considered Hedonism as their top priority while the other business majors valued Benevolence most highly; however, overall, there were more similarities than differences between these two groups. When compared with the males, females valued the meta-value Self-Transcendence significantly more and exhibited values and value systems that have more of a social focus and less of a personal focus. First-year and fourth-year business students ranked the meta-values in the same order; however, Self-Transcendence was rated as significantly more important to the students in their first year compared to those in their fourth year.

Firm innovation creates an informational asymmetry between the firm and outside stakeholders. Since CSR activities have been shown to reduce asymmetries and risk we surmise that firms use discretionary CSR activities to reduce the asymmetries from innovation. We study an innovation intense industry (technology) and find results that support the hypothesis that firms use CSR to signal long term viability of innovative activities.

Here we provide an overview of some of the central ethical issues related to the use of surgical robots. Subsequently we introduce an anticipatory ethical analysis of possible consequences for the use of robotic surgery. Anticipatory ethics aims at identifying ethical problems with emerging technologies while they are at the introductory stages for a wide range of stakeholders. Robotic surgery presents a range of positive possibilities, which include treating patients more safely and effectively to caring for patients with telesurgery at remote locations. However, injuries and deaths caused by robotic surgical platforms (RSPs) pose roadblocks to full realization of this technology. Investment in RSPs by for-profits like hospitals requires a detailed stakeholder analysis that takes into account both institutional and patient perspectives. It will take carefully crafted policy and regulation based upon sound technical and ethical analysis to induce the widespread adoption of this surgical method.

In this study, we investigate the impact of frequent service learning on the emotional, personal development, and leadership characteristics of business students at a Catholic university in the United States. We examine the aforementioned impact of frequent service learning through a novel panel data set provided by the University’s Institute for Leadership and Service, ranging from the years 2008 through 2015. Specifically, we conduct an empirical analysis across the emotional, personal development, and leadership dimensions, and examine the too-much-of-a-good-thing (TMGT) effect of Pierce and Aguinis (2013) in relation to service learning. Our results suggest that business students experience statistically significant increases in several emotional, personal development, and leadership dimensions as the number of service learning experiences increases. We provide mixed evidence of the TMGT effect when aggregating the emotion and personal development dimensions against the number of service-learning experiences via examination of cross-dimensional averages. Our study yields implications for the optimal number of service learning projects for business schools.

Woiceshyn (2011) showed that leaders who exhibit rational egoistic behaviors not only make decisions that lead to organizational success, but that these decisions are also ethical. Woiceshyn’s ethical decision-making model consists of seven fundamental virtues associated with rational egoism: rationality, productiveness, justice, independence, honesty, integrity, and pride. In this paper, we define the rational egoism construct using a virtues-based ethical framework. We compare and contrast the seven virtues under rational egoism with alternative interpretations that arise under altruism, deontology, and teleology in order to further refine the construct. Based on this analysis, we conceptualize rational egoism as a Type II second-order formative model and develop a scale based on the seven underlying virtues. Through the use of partial least squares path modelling (PLS-PM), we validate this on a sample of 534 full-time American workers. We then demonstrate that this rational egoism construct has a strong, positive relationship to the transformational leadership construct. Implications for practice are discussed and areas for future study are suggested.

Conflicts of interest represent one of the defining problems of our time, and yet a clear definition of what constitutes a conflict of interest remains elusive. To move us closer to resolving this problem, this article first reviews and critiques attempts to define conflicts of interest, and, second, uses these critiques to ground a more conceptually consistent and practically useful definition. This definition builds on, but also breaks away from Michael Davis’s (1982) definition of conflicts of interest. Specifically, it articulates and defends defining conflicts of interest in terms of their threat to good judgment but does so in the broadest terms. Defining it in this way expands the domain of conflicts of interest, but also avoids unnecessary conceptual distractions and practical difficulties.

This essay offers an interrogation of Leadership-as-Practice (LAP) in the context of MacIntyre’s Three Rival Versions of Moral Inquiry. LAP is a constructionist leadership approach that rationalizes leadership as the co-creation of embodied leadership practices in organizations, and we argue that its theoretical and philosophical foundations are best aligned with a genealogist version of moral enquiry. We contend that LAP’s theoretical assumptions and implications place it in opposition to traditionalist and encyclopaedist moral philosophies and that application of LAP without an appreciation for our argument poses challenges for practitioners as it diminishes their ability to learn from opposing perspectives. We argue for an appreciation of diverse moral viewpoints and discouragement of coercive moral practices from any competing perspective. While the philosophy undergirding LAP may encourage moral relativism and possible conflicts in principled beliefs, we offer LAP may strengthen organizational members cognitively and emotionally, bringing greater long-term benefit for the organization.

This paper outlines the academic architecture of CityLab as graduate program course initiative and Principles of Responsible Management Education (PRME) capstone exemplar. When the United Nations launched the Millennium Goals in 2000 to focus global development on humanity rather than GDP, the Global Compact was launched as a collateral effort, challenging business, government, and social sector leaders to transform the global economic system. In 2007, the Six PRME focused on business schools, challenging them to reorient their curricula towards preparing students to lead the world in building “an inclusive and sustainable economy.” CityLab is an example of innovating the learning experience and challenging learners to take leadership roles in efforts to enhance the value of livable cities as the foundation of an inclusive and sustainable global economy for the Urban Century.

Many business and government institutions appear to have failed in meeting society’s expectations of them. Continuing scandals and failures, as well as an increasingly obvious lack of responsibility to customers, have caused communities to question the probity and operation of these organisations. Consequently, “social licence to operate” is becoming an increasingly common process and one which demands a change in management philosophy and behaviour in our institutions. Improving the quality of responsible management practice is a critical element in this new management philosophy, and which demands an intense focus on including ethical considerations in the core management competence of decision-making. We draw on a combined 100-plus years of international consulting experience, “C“ and senior executive work experience, and academic research to present a practical framework for responsible management practice which, we believe, can also form the foundation for the required organisational cultural transformation required of many existing organisations.

With the expansion of clientele’s demographics and international transactions, many law firms began to open doors to non-mainstreamers—minority lawyers to join the legal workforce. Decades have passed and the inequality in compensation between minority and non-minority attorneys is still one of the most controversial issues in the legal profession. Based on human capital and labor discrimination theory, we examine the productivity and compensation differences between minority attorneys and non-minority counterparts. The sample consists of 554 firm-year observations of the 200 largest U.S law firms from 2013 to 2016. We use OLS with clustered standard errors by year. We find minority partners are more likely to provide relatively routine and template-based services, which do not command fee premium, which results in low productivity of minority partners. We find that minority partners are compensated less than their non-minority counterparts after controlling for productivity. This paper aids in the understanding of diversity in the workplace and the effect of diversity on a firms’ productivity and the type of services to provide. Also, this paper has implications on the compensation gap between minorities and their non-minority counterparts.

With rapid growth in Far Eastern economies (in particular China’s), it is becoming imperative to understand the culturally driven ethical-value underpinnings of the management processes in this region of the world. In this study, we propose a broadened version of Hofstede’s and others’ conception of Confucian dynamics anchored in his teachings preserved in the Lunyu (or Analects), which form the foundation of individual-social moral interactions. Based on a content analysis of these Analects via a qualitative software, NVivo, we identified six work-based values (Leadership Attributes, Appropriate Conduct, Authority Protocol, Governance Policies, Long term Orientation and Collegiality and Teamwork) and six life-based values (Virtuousness and Appropriate Behavior, Handling Life’s Emotions, Learning and Teaching, Parent/Elder Relationship, Friendship and Worship) of the society, prescribed by Confucius in his Analects. These factors are further analyzed and mapped in the context of the three Confucian ethical dimensions (Yi or Righteousness, Li or Propriety, and Ren or Benevolence and Unbounded). The business implications of the results and directions for future research are finally discussed.

The concept of “auditor independence”—that the provider of assurance on financial information should be free of conflicting interests—is deeply embedded in the world’s capital markets. This paper examines stresses on the global model of Big Audit that call into question both the basis and the ongoing usefulness of auditor independence: The threats to the stability of the model, based on the dominance of the Big Four international accounting networks in providing audit services to the world’s large public companies. The balance between benefits and detriments of the independence requirements, and standards that are difficult to articulate and enforce. The implications for the continued value of independent assurance emerging from the evolution in Big Data tools and analytics, including the structural constraints of regulation. A broad re-examination is called for, in aide of the design of a sustainable public-company assurance model that is fit for purpose in the twenty-first century.

This article describes China’s century-long concern with the professional ethics of engineers, especially a succession of codes of engineering ethics going back at least to 1933. This description is the result both of our own archival research and of “philosophical history”, the application of concepts from the philosophy of professions to the facts historians (or we) have discovered. Engineers, historians, social scientists, and philosophers of technology, as well as students of professional ethics, should find this description interesting. It certainly provides a reason to wonder whether those who write about codes of professional ethics as if they were an Anglo-American export unlikely to put down roots elsewhere might have overlooked many early codes outside English-speaking countries. While code writers in China plainly learned from Western codes, the Chinese codes were not mere copies of their Western counterparts. Indeed, the Chinese codes sometimes differed inventively from Western codes in form (for example, being wholly positive) or content (for example, protecting local culture).

Corporate social responsibility (CSR) is a phenomenon of increasing interest. Today, it is practiced in most countries around the globe and studied in various fields of academia. However, the focus still lies on Western developed countries, their understanding, and implementation of CSR. This paper focuses on the comparison of the orientation towards CSR in Germany and Qatar, thereby closing a research gap by providing insights from a Middle Eastern country. Based on a survey among 265 business students in both countries, the research examines their perception of the economic, legal, ethical, and philanthropic responsibilities of a firm. Findings suggest that, next to economic obligations, Qataris appear more willing to support philanthropic activities of a business while Germans highly value ethical standards. Moreover, females in both countries value economic responsibilities less important than males do.

Corrupt, unethical and imprudent practices in the global banking sector have been identified as among the causes of the Global Financial Crisis (GFC). In this paper I (1) provide an analysis of institutional corruption that enables institutional corruption within the global banking sector to be (a) viewed in relation to economic injustice, and (b) demarcated from the unfortunate consequences of unavoidably risky market-based activity, poor judgment, ill-informed policy-making etc.; (2) argue for an understanding of and response to institutional corruption in the global banking sector that is holistic i.e., focuses on institutional purpose, industry structure and banking culture rather than simply structure or culture; and (3) argue for an account of moral responsibility for corruption and economic injustice in the global banking sector, and for combating it, in terms of meta-collective responsibility, a specific notion of collective moral responsibility that does not allow individual human actors to evade responsibility.

In recent years, the US, UK, and Continental Europe have pursued board gender diversity through markedly different means. Several European countries have imposed mandatory quotas, whereas the UK and US are relying on the endogenous mechanisms of social pressure and shareholder proposals respectively. Despite their obvious allure as a means of bringing about rapid change, evidence is mounting that European board gender diversity quotas may yield various deleterious side effects; and quotas may not be as successful in their core aim of promoting gender diversity as initial broad statistical measures indicated. In this paper we critique the European quota regime, and consider US shareholder proposals as an alternative change mechanism for improving gender diversity in corporate boards. We note the lack of shareholder representative democracy in Europe and conclude with the policy recommendation that, rather than extending quotas, European governments should focus on empowering shareholders.

This paper attempts to build on the contribution to moral imagination theory by Patricia Werhane by further integrating moral imagination with new theoretical developments that have taken place in the business ethics field. To accomplish this objective, part one will review the concept of moral imagination, from its definitional origins to its full theoretical conceptualization. Part two will provide a brief literature review of how moral imagination has been applied in empirical research. Part three will analyze and apply the construct of moral imagination as it relates to the key process stages of ethical decision making including awareness, judgment, intention, and behavior. Immoral imagination is then discussed, along with other behavioral ethics concepts as they relate to moral imagination. The paper concludes with potential future research directions, as well as teaching and managerial implications for the moral imagination construct.

It is important for philosophers to find out positive approaches for increasing mutual understanding on those fundamental questions in both the Confucian and Aristotelian traditions of doing virtue ethics. The Aristotelian concept of the good and the Confucian concept of dao pose a question about the way human beings see the final principle of ethics. Staying within the realm of human life, Confucius develops two co-related perspectives of seeing the dao of human being. The first perspective sees the dao as standing for the ultimate truth and goodness for human beings. Setting aside the Aristotelian metaphysics of nous, this conception does not stand that far removed from Aristotle’s view of the good. The second perspective sees the dao as the right way for individuals to start. This notion seems far from Aristotle’s view of right choice. The reason is that Confucius’s manner of comprehension embraces both understanding and insight, while that of Aristotle focuses solely on understanding. But Aristotle’s concept of right choice is, in some indirect way, related to Confucius’s view of the right way. For both Confucius and Aristotle, the right way refers to our initiating acting on something connected to the end with no more thinking.

The managers of colleges and universities have to make decisions on a wide range of issues with regard to goals and how they may be pursued. “Managers” refers to such positions as the president, provost, vice president dean, and director of a university. This paper lays out the theoretical basis for the right answer for these decisions. It does so by setting out the fundamental function of an academic institution, linking this function to a duty, and explaining how to satisfy this duty in hard cases. This article’s thesis is that university managers have a duty to shareholders alone. Shareholders are those who own the university. This duty is satisfied when managers satisfy the fundamental project shareholders assign to a university.

This paper describes the general disregard for relationships that leads to unethical behavior in business as well as in one’s personal life, using an illustration from 4,000 years ago and from today. Volkswagen has been characterized as just one more example of ethical violations that lead to long-lasting environmental, financial, and personal impacts. The story of Jacob’s life reflects the origin of this type of ethical behavior and stands in parallel to the eighty-year history of the Volkswagen corporation.

Using Daoism expressed by Chuang Tzu and the Confucianism in The Analects, The Great Learning, and the Mencius, this paper compares and contrasts Daoism and Confucianism as business ethics. In addition, it applies Daoism and Confucianism to several business cases.

Benefit corporation legislation has rapidly disseminated in the United States. Its advocates claim it is a necessary corporate form to address the unique needs of for-profit social enterprises, despite many scholarly and legal practitioners who doubt the need for or wisdom of adopting this organizational form. Others suggest that the legislation is flawed and deficiencies should be addressed. After reviewing the present status of benefit corporation legislation, this article contributes to the discourse arguing that (1) benefit corporations are unnecessary under the law; (2) benefit corporation legislation does not enhance corporate law; (3) benefit corporation laws create unnecessary new legal risks for both traditional and benefit corporations, and their respective directors; and (4) third party certification in entity formation law is inappropriate.

Organizational theory argues that institutional social responsibility, which represents managers’ moral values, ethics, and norms (i.e. community, environment), and technical (strategic) social responsibility, which represents firms’ relationship with key stakeholders (i.e., employees, suppliers, consumers), influence corporate ethical behavior. We examine and compare the impacts of strengths and concerns of institutional and technical (strategic) social responsibilities on the likelihood of corporate fraud. Using a sample of 152 high-profile corporate fraud cases in the U.S. during the 2000-2010 period, we find that firms’ corporate social responsibility activities reduce the likelihood of corporate fraud. More importantly, our study finds that both institutional strengths and technical strengths reduce the likelihood of corporate fraud. Institutional concerns also increase the likelihood of corporate fraud and institutional responsibility plays a more significant role than technical responsibility. Our study supports the legitimacy theory of social responsibility and highlights the importance of moral management to reduce the likelihood of corporate fraud.