Domènec Melé

Practical wisdom in managerial decision making

Purpose – The aim of this paper is to present the necessity for practical wisdom in the managerial decision making process and its role in such a process. The paper seeks to contrast the position with two conventional approaches based on maximizing and satisficing behaviors respectively.Design/methodology/approach – Following Aristotle and Thomas Aquinas it is argued that a correct decision should consider an “integral rationality” which includes not only “instrumental rationality” but also “practical rationality”. The latter permits the evaluation of both means and ends from the perspective of human good. Practical wisdom helps the decision maker to determine how a decision will contribute to the human good in each particular situation.Findings – Maximizing and satisficing behaviors are based on the facts‐values dichotomy, which separates business and ethics and presents a rationalistic and incomplete view of the reality. The alternative presented here sees the decision as a whole, and this is a more com...

European vs. American approaches to institutionalisation of business ethics: the Spanish case

This paper reports on a study of the largest Spanish corporations concerning the status of corporate ethics policies. The research project, the first of its kind in Spain, has two parts. First, the types of formal documents the companies use are analysed, including those dealing with ethical values or norms. Three groups of companies are distinguished: the first group has no formal documents dealing with ethical values, and the reasons given for not having any ethical statement are discussed. A second group has one document mentioning ethical values (generally the vision and/or mission statement), and a third group has in place two or more documents (one generic and the other more detailed, such as a code of conduct). The findings show that the latter group is more proactive than the former in implementing measures for promoting business ethics throughout the organisation. In the second part of the research, the study analyses the differences between companies whose headquarters are in Spain, Europe and USA regarding the arguments, the focus and the practices used to formalise business ethics.

Loyalty in Business: Subversive Doctrine or Real Need?

Loyalty within the firm, though praised by some, is criticized by others. An analysis ofthe historical and current significance ofthe concept of loyalty can aid in both understanding its critics and responding to them. Loyalty in the business world is generally understood in three ways: i) transactional retention, ii) sentimental attraction, and iii) willingness to commit oneself. In the third type, the commitment to adhere to a person, cause, or institution may contribute to human flourishing and therefore generate the human virtue of loyalty. The human virtue of loyalty is as far from fanaticism as it is from the betrayal of legitimate commitments freely undertaken. As with all virtues, its content must be rationally determined. Loyalty thus understood enhances the humanity of both persons and business firms and contributes to heightened cohesion and cooperation within the firm. Moreover, according to some recent research, managing a business on the basis of loyalty can enhance economic results.

Organization of work in the company and family rights of the employees

The duty to respect, protect and help the family rights is related very closely with the organization of work in the firm. This paper summarizes and illustrates, using mini-case studies, the relationship between the organization of work in companies and the family rights and duties of employees.

ETHICS IN MANAGEMENT: EXPLORING THE CONTRIBUTION OF MARY PARKER FOLLETT

Abstract Mary Parker Follett never wrote on ethics in management or on business ethics. Today, both topics are not only popular but essential. However some implicit and even explicit references to these topics can be found in her thought. What is more, underlying her whole approach to business and management are concepts that have much to do with ethics. Follett holds that the manager has to accept standards which come from professional managerial associations. Additionally, Follett is aware of the contribution of business management to individual development, to the welfare and culture of society. She also presents a seminal approach to stakeholder theory. Her concept of ethics is related to her dynamic vision of the individual and society. It overcomes subjectivism and the narrow view of an individualistic ethics, but it is not an ethics rooted in ethical principles or in human virtues.

Humanistic corporate community involvement: Walgreens/MEF One‐On‐One program

Purpose – The purpose of this article is to discuss a humanistic perspective on corporate community involvement (CCI), proposing the concept of humanistic corporate community involvement (HCCI). This concept is illustrated through a case study.Design/methodology/approach – The understanding of humanism applied is one drawn from Catholic social teaching. The case has been developed from the personal experience of one of the authors (Mammoser), enriched with interviews and reports, along with some public information, which helps to understand the socio‐cultural context.Findings – HCCI is defined by four characteristics: recognizing and respecting human dignity and rights, fostering integral human development, acting virtuously; this means that the social actions included in CCI have the direct motive of doing good, and organizing social actions in accordance with both the Principle of Solidarity and the Principle of Subsidiarity. The specification of these characteristics can vary from one situation to anot...

Three Keys Concepts of Catholic Humanism for Economic Activity: Human Dignity, Human Rights and Integral Human Development

Understanding Catholic Humanism and its consequences in economics and business entails discussing three key concepts of this humanism with great ethical relevance: human dignity, human rights and integral human development. The chapter presents the Catholic position on these concepts and discusses their foundation. This foundation, based on a combination of faith and reason, harmonically intertwined, entails a comprehensive view of the human being. Being open to transcendence gives a profound meaning to the ultimate questions of human life and makes a valuable proposition for economics and business.

Towards an holistic understanding of management

Purpose – The purpose of this paper is to introduce the special issue and to point at how much in the current economic and social crisis has to do with having lost an integrative, holistic and humanistic approach to management and organizations.Design/methodology/approach – Following a brief introduction of the current context, this piece summarizes the main points of the six papers selected for inclusion in this special issue. These papers were selected from among the more than 80 presented at an International Symposium on Ethics, Business and Society hosted by IESE Business School in Barcelona in May 2010.Findings – The main contributions from the papers in this special issue include conceptual elaborations on the conditions for work, that is, meaningful, holistic management delivered through management education programs, the interface between ethical values/responsibility and firm strategy, corporate community involvement, gift and gratuity dimensions of organizational analysis, and developing trust t...

The Christian Notion of Αγάπη (agápē): Towards a More Complete View of Business Ethics

Business Ethics, significantly developed over the last three decades, generally does not consider the notion of ἀγάπη (agapē) which is central in Christian ethics. This article analyses the meaning of agapē in the Christian Bible and argues that this Greek word can be translated as “love”, in the sense of a self-giving love, and including the sacrificing of one’s own interests for the good of others. Agapē is a virtue which inspires all other virtues in the Christian tradition. Philosophically speaking, agapē means “love of benevolence”, a notion which is not too far from the Confucian notion of ren, generally translated as “benevolence” or “loving others”. The article moves on to discuss how agapē can be introduced in business ethics and argues that a business ethics theory which includes the consideration of “love of benevolence” is more complete than others which ignore it.

Developing a Corporate Values Statement — A Case Study

In recent years many companies have established their corporate mission, which is the rationale for the existence of an organisation that makes it worthwhile in the eyes of its stakeholders, particularly employees (Campbell & Tawadey, 1990).