Toward an Ethical Theory of Organizing
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Date
2014
Authors
Naveed Yazdani
Murad, Hasan Sohaib
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Business Ethics
Abstract
Current organizations are underpinned by utilitarian
ethics of Modernity. Pure economic motive driven
organizations detach themselves from larger societal
interest. Rising number of corporate scandals and intraorganizational
income inequalities are breeding similar
trends in society at large. Current organizations base their
competitive advantage on resources and capabilities which
boils down to economic supremacy at all cost whether it is
named I/O or RBV of the firm. This theoretical article
posits Ethics-based Trust as the main competency and
capability for attaining sustained competitive advantage. It
in no way condemns utility view of the firms but treats it as
a natural yet secondary outcome of genuine ethicality of
the firm. Cultivating an ethical culture in the firm through
identifying antecedents, organizational practices, and the
outcomes where profitability is an automatic but secondary
outcome under the supremacy of ethics is detailed in the
multilevel model presented in this article. The main call of
this article is to posit ethics and morality over and above
short-term profits so that organizations fulfill their trustee
role for society through enacting socio-humanistic theories
within organizations. A brief analysis of the proposed
ethical theory of firm is undertaken in light of the
‘‘schooling’’ notion in the contemporary organization theory
literature.
Description
Keywords
Business Ethics, Theory of Firm, Quantum Organizations, Trust-Dependence View of Firm, Transformative Learning, Ethical Leadership, Organization Theory Schools
Citation
Yazdani, N., & Murad, H. S. (2014). Toward an Ethical Theory of Organizing. Journal of Business Ethics, 1-19.