1.3 Virtue ethics

Virtue ethics focuses on developing moral character rather than following rules or maximizing outcomes. It emphasizes cultivating virtues like courage, justice, and temperance to achieve eudaimonia - a state of human flourishing.

Rooted in ancient Greek philosophy, virtue ethics offers a different approach to business ethics. It encourages leaders to embody ethical traits, build virtuous organizational cultures, and apply practical wisdom in navigating complex moral situations in the business world.

Foundations of virtue ethics

• Virtue ethics focuses on the moral character of the individual rather than rules or consequences
• Emphasizes the development of good character traits or virtues such as courage, justice, temperance
• Traces its origins back to ancient Greek philosophers like Aristotle who saw the goal of human life as eudaimonia or flourishing

Aristotle's ethics

Eudaimonia as highest good

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• For Aristotle, the highest human good is eudaimonia, often translated as happiness or flourishing
• Eudaimonia is achieved through rational activity of the soul in accordance with virtue
• Involves fulfilling our proper function as human beings by cultivating virtues
• Not a subjective state but an objective standard of well-being

Virtues vs vices

• Virtues are stable dispositions to act in ways that promote eudaimonia
• Main virtues for Aristotle include courage, temperance, justice, generosity, and magnanimity
• Vices are character traits that hinder eudaimonia such as cowardice, self-indulgence, injustice
• Virtues are means between extremes of excess and deficiency (courage between cowardice and recklessness)

Doctrine of the mean

• For each virtue, Aristotle identifies a mean between two extremes
• Mean is not an arithmetic average but relative to the individual and situation
• Requires practical wisdom (phronesis) to discern the appropriate response
• Examples:
  • Courage is the mean between cowardice and recklessness
  • Generosity is the mean between stinginess and extravagance

Other key virtue ethicists

Confucius and Mencius

• Ancient Chinese philosophers who emphasized cultivation of virtues like humaneness (ren), righteousness (yi), propriety (li)
• Saw moral exemplars (junzi) as key to moral education and development
• Believed virtues were grounded in human nature and could be cultivated through self-reflection and practice

Aquinas and Christian virtues

• Incorporated Aristotelian virtues into Christian framework, adding theological virtues of faith, hope, and charity
• Saw virtues as habits that dispose us to act in accordance with reason and divine law
• Emphasized the role of grace in developing virtues and overcoming sin

MacIntyre and modern virtue ethics

• Argues for a return to virtue-based approach in contrast to modern moral philosophies focused on rules and utility
• Sees virtues as acquired human qualities that enable us to achieve the goods internal to practices
• Emphasizes the importance of moral traditions and communities in shaping virtues
• Key work "After Virtue" sparked renewed interest in virtue ethics

Virtues in business

Integrity and honesty

• Being truthful, sincere, and consistent in one's actions and commitments
• Avoiding deception, fraud, and misrepresentation in business dealings
• Maintaining confidentiality and keeping promises
• Examples:
  • Not falsifying financial reports or misleading investors
  • Honoring contracts and agreements with suppliers and customers

Courage and perseverance

• Standing up for what is right even when it is difficult or unpopular
• Persisting in the face of challenges, setbacks, and failures
• Taking calculated risks and making tough decisions
• Examples:
  • Whistleblowing to expose unethical conduct
  • Continuing to innovate after a failed product launch

Justice and fairness

• Treating others equitably and impartially
• Giving each person what they are due and avoiding favoritism
• Ensuring fair processes and outcomes in hiring, compensation, promotions
• Examples:
  • Paying a living wage to all employees
  • Using objective criteria for performance evaluations

Temperance and self-control

• Moderating desires and impulses to avoid excess
• Exercising restraint and discipline in the pursuit of goals
• Avoiding greed, gluttony, and other vices that can lead to unethical conduct
• Examples:
  • Not exploiting market position to gouge prices
  • Avoiding lavish perks and executive compensation

Cultivating virtues

Virtue as a practice

• Virtues are developed through practice and habituation, not just intellectual understanding
• Requires effort, discipline, and repetition to ingrain virtuous dispositions
• Practices are complex social activities that enable us to realize goods and cultivate virtues
• Examples:
  • Practicing honesty by always telling the truth even when it is inconvenient
  • Developing courage through facing fears and standing up for beliefs

Role of moral exemplars

• Moral exemplars provide models of virtuous character for us to emulate
• Can be real people (mentors, leaders) or fictional characters that embody virtues
• Inspire us and show us what is possible in terms of moral excellence
• Examples:
  • Learning compassion from a teacher who goes above and beyond for struggling students
  • Modeling integrity after a CEO who takes responsibility for mistakes

Virtues and moral education

• Virtues are shaped through moral education, both formal and informal
• Includes direct instruction in ethics as well as modeling and mentoring
• Aims to develop practical wisdom and judgment, not just convey rules
• Examples:
  • Company ethics training programs that use case studies and role playing
  • Coaches who emphasize sportsmanship and character development

Virtue ethics vs other frameworks

Virtue ethics vs deontology

• Deontology focuses on moral rules and duties (Kant's categorical imperative)
• Virtue ethics focuses on character and what kind of person one should be
• Deontology emphasizes right actions, virtue ethics emphasizes good character
• Example: Deontology says lying is always wrong, virtue ethics says honesty is a virtue but allows for exceptions

Virtue ethics vs consequentialism

• Consequentialism judges actions by their outcomes or consequences (utilitarianism)
• Virtue ethics judges character traits and dispositions rather than individual acts
• Consequentialism aims at maximizing overall utility, virtue ethics aims at eudaimonia
• Example: Consequentialism may justify lying to prevent harm, virtue ethics sees honesty as intrinsically good

Strengths and weaknesses

• Strengths of virtue ethics:
  • Captures important moral concepts like character, wisdom, flourishing
  • Provides guidance for moral education and development
  • Fits with common sense notions of ethics and admirable people
• Weaknesses of virtue ethics:
  • Lacks clear action guidance in specific situations
  • Allows for different conceptions of the virtues based on cultural traditions
  • Can lead to conflicts between different virtues

Applying virtue ethics in business

Virtuous leadership and management

• Virtuous leaders embody and model ethical character traits for the organization
• Includes virtues like integrity, courage, justice, humility, and prudence
• Virtuous managers focus on developing the character of employees, not just compliance
• Examples:
  • A CEO who takes a pay cut during tough times to avoid layoffs
  • A manager who gives honest feedback and development opportunities

Organizational virtue and culture

• Organizational virtue refers to the character traits and ethical climate of the company as a whole
• Includes virtues like trustworthiness, responsibility, citizenship, and caring
• Virtuous cultures select and socialize members to embody organizational virtues
• Examples:
  • A company known for its integrity and transparency in business dealings
  • An organizational culture that rewards teamwork and mutual support

Virtues in marketing and sales

• Virtues relevant to marketing and sales include honesty, fairness, respect, and responsibility
• Avoiding deceptive or high-pressure sales tactics that exploit customers
• Being truthful in advertising and labeling about product features and limitations
• Examples:
  • A salesperson who recommends the product that best fits the customer's needs
  • A marketing campaign that accurately represents product capabilities

Virtues in finance and accounting

• Virtues important for finance and accounting include objectivity, trustworthiness, prudence, and diligence
• Avoiding conflicts of interest and misrepresentation of financial information
• Exercising due care and competence in financial management and reporting
• Examples:
  • An auditor who resists pressure to rubber-stamp questionable accounting
  • A financial advisor who recommends prudent investments suited to client's goals

Critiques of virtue ethics

Lack of action guidance

• Virtue ethics focuses on character, not actions, and so seems to lack specific guidance
• Does not provide clear rules or decision procedures for resolving moral dilemmas
• Requires judgment and practical wisdom to determine right action, which can be challenging
• Example: Virtue ethics says be honest, but doesn't specify when if ever lying might be warranted

Relativism and subjectivity

• Different cultures and traditions specify the virtues differently, raising concerns about relativism
• Virtues grounded in social practices and roles, not universal principles
• Agent's own conception of eudaimonia seems subjective - my vs your flourishing
• Example: Different lists of virtues in Aristotle, Confucius, Christianity, etc.

Conflict between virtues

• Virtues can conflict with each other in particular situations, leading to moral dilemmas
• No clear way to prioritize or balance virtues when they clash
• Requires practical wisdom to navigate conflicts, but still leaves room for disagreement
• Example: Honesty vs. loyalty when asked about a friend's misbehavior

Situational challenges to virtue

• Situational factors can make it difficult to act virtuously even with good character
• Milgram obedience studies show power of authority to overwhelm individual conscience
• Zimbardo prison experiments show how institutional roles can corrupt character
• Example: A virtuous person in a highly competitive business environment may feel pressure to cut ethical corners to succeed