Surendra Arjoon

Virtue Theory as a Dynamic Theory of Business

This paper develops a meta-theory of business based on virtue theory which links the concept of virtues, the common good, and the dynamic economy into a unifying and comprehensive theory of business. Traditional theories and models of business have outlived their usefulness as they are unable to adequately explain social reality. Virtue theory shows firms that pursue ethically-driven strategies can realise a greater profit potential than those firms who currently use profit-driven strategies. The theory expounds that the business of business is ethical business and that the crises that business and society face today are crises of leadership and ethics. The issues of leadership and corporate social responsibility are discussed in the context of the proposed theory.

Reconciling Situational Social Psychology with Virtue Ethics

For the past four decades, debate has occurred in respect of situational social psychology and virtue ethics. This paper attempts to reconcile this debate. Situationists propose a fragmentation theory of character (each person has a whole range of dispositions, each of which has a restricted situational application) and do not subscribe to a regularity theory of character (behaviour is regulated by long-term dispositions). In order to support this view, they cite a number of experiments. It is proposed that the substantive claims made by situationist social psychologists, for the most part, do not undermine or disagree with an Aristotelian virtue ethics perspective, but stem from a misunderstanding of concepts of moral character, faulty conclusions and generalizations in respect of experimental results. Situationists take a narrow view of character and morality. Evidence from organizational behaviour and managerial research literature supports the view that both situational (organizational) features and inner characteristics (including virtues) are powerful influences and determinants of morally upright and morally deviant behaviour. The role of practical judgement in bridging these views is discussed. As a way forward in reconciling situational social psychology with virtue ethics, the paper proposes an Aristotelian–Thomistic framework to overcome some of the problems associated with inadequate regulative ideals in building a normative moral theory.

Impact of ethical leadership on creativity: the role of psychological empowerment

This study examines the relationship between ethical leadership and employee creativity with mediating role of psychological empowerment. Data were collected from 183 supervisor–subordinate dyads in different hotels across Pakistan. Confirmatory factor analysis confirmed the distinctiveness of variables used in our study. The results also confirmed that ethical leadership promotes creativity at workplace, while psychological empowerment mediates the effect of ethical leadership on creativity. The cognitive evaluation theory was used to support findings. Implications are also discussed.

Islamic Work Ethic, innovative work behaviour, and adaptive performance: the mediating mechanism and an interacting effect

This study’s focus is on the relationship between Islamic Work Ethic (IWE) and adaptive performance with the mediating role of innovative work behaviour (IWB) and moderating role of ethical leadership among hospitality sector employees in Pakistan. Data were collected using questionnaires from 257 employees working in various hotels across Pakistan. Results indicate that IWE significantly predicts adaptive performance both directly and indirectly through IWB. In addition, results also confirm the moderating role of ethical leadership between IWE and IWB. Theoretical and practical implications are discussed.

Knowledge Workers and Virtues in Peter Drucker’s Management Theory

The fallout of the 2008 global financial crisis and frequent disregard for labor, environmental, and social standards have instilled new vigor into the study of ethics and virtues. In the contemporary knowledge society, the issue of which virtues the modern day workforce needs to possess is of crucial significance. This study specifies the virtues laid out in the management theory of Peter Drucker (1909-2005), focusing upon the conceptual category of the knowledge worker as the primary unit of the contemporary information and innovation-based knowledge society. The idea and role of intellectual virtues are not yet fully developed in the literature, especially as those identified in this article are the source of critical and creative thinking. This intervention, therefore, identifies prudence, effectiveness, excellence, integrity, and truthfulness as the knowledge worker’s intellectual virtues, whereas practical wisdom, responsibility, cooperation, and courage are seen to constitute the knowledge worker’s moral character.

Portfolio behaviour of commercial banks in the commonwealth Caribbean

Work done on models of portfolio behaviour in developing countries is critically reviewed and a theoretically more rigorous specification of the models is given. Models for Trinidad and Tobago (T&T), Jamaica and Barbados are investigated. Tests of independence, homogeneity, myopic behaviour and symmetry of the data are also considered. The overall results show that the use of financial policy instruments would be most effective in T&T, and least effective for Jamaica. The paper also shows that interest rates have become an increasingly more important factor in determining portfolio allocation in the T&T case.