The discussion is presented in five sections: 1) the emergence of business ethics in Denmark; 2) the systems- theoretic approach to philosophy of management; 3) the phenomenological and hermeneutic approach to leadership and ethics in organizations; 4) corporate religion, existentialism, and Aggregated; and 5) a conclusion. I. The Emergence of Business Ethics: Towards the Political Firm In Denmark, recent debates about philosophy of management in public and riveter organizations were initially limited to issues of business ethics and leadership and only later to deeper issues of epistemology and organizational ontology. Traditionally, Danish business ethics have been characterized by P. Kowalski (De. ), Elements of a Philosophy of Management and Organization, Studies in Economic Ethics and Philosophy, DOI 10. 007/978-3-642-11140-2_2, @ Springer-Average Berlin Heidelberg 2010 19 20 Protestant ethics, which promoted the norms of integrity, respect for hard work, and trustworthy behavior; however, more recently it became evident hat better thinking on business ethics was necessary. During the asses and 19905 the question of whether the term “business ethics” is fundamentally moronic (that is, whether it is possible to combine ethics, values, and social responsibility with profits and efficiency) became a major concern (Prune 1998, 10). 1 Instead of traditional bureaucratic methods of management, new kinds of values-driven and ethics-based forms of leadership were proposed.
Many Danish companies have realized that a focus on CARS, ethics, and sustainability may be a competitive factor internationally, but also locally as a sign of high integrity and trustworthiness. Accordingly, business ethics is proposed as an important part of leaders IP, management, and corporate governance. 2 There are five important aspects of the focus on ethics and leadership in Denmark: 1) understanding the significance of the political consumer, 2) ethical investing, 3) the ethical and social responsibility of the corporation, 4) ethical accounting, and 5) values-driven management. 3 The concept of the political consumer expresses the role that the external world plays in corporate ethics.
It can be argued that external pressure by ell-educated and politically conscious citizens has been a driving force in the emergence of business ethics in Denmark. Public focus on issues of 2 3 PETER PRUNE: “Have re ETSI I reversible”, in: KURT BOLLARDS: ETSI I Dank reversible – friends Lauderdale, ?rush (Joylessness’s Robersonville) 1998, up. 1 Off. See also JACOB DAHL REND T ROOF: Overcompensated, Fredericksburg (Countersignature) 2007. It is arguable that Denmark is one of the most developed countries is this regard. At the Copenhagen Business School, research in management philosophy and business ethics began in 1986 with the creation of a apartment of system’s theory and system’s science.
This department developed into the Department of Management, Politics, and Philosophy, combining management education with education in communication and philosophy. This has further developed and today we find teaching in philosophy of management in most Danish universities and business schools. See PETER PRUNE: “Have re ETSI I reversible”, in: KURT BOLLARDS: ETSI I Dank reversible – friends Lauderdale, Argus (Joylessness’s Robersonville) 1998, up. Puff. See also JACOB DAHL REENTERED: Overcompensated, Fredericksburg (surrealistically) 2007. PETER PRUNING “Have re ETSI I reversible”, in: KURT BOLLARDS: ETSI I Dank reversible – friends Lauderdale, Argus (Joylessness’s Robersonville) 1998. See also JACOB DAHL REENTERED: Overcompensated Kёbeneath (countersignature) 2007.
PHILOSOPHY OF MANAGEMENT 21 ecology and human rights has doubtlessly been helping to increase the involvement of businesses in ethical and political issues. Danish companies have become focused on ethical investing, including a focus On the general social responsibility Of corporations towards their employees. Institutional investors in Denmark have increasingly been evolving strong policies on business ethics and CARS; therefore, major corporations have been forced to have policies on ethics in order to be acceptable objects for investments. Indeed, the Danish government has been promoting the voluntary ethical and social responsibility of the corporation as a means of encouraging firms to act as good corporate citizens and to become more involved in society.
The importance of being open to civil society and also in relation to the political system has been important for the development of CARS, as well emphasizing how CARS provides a form of competitive advantage for firms. This development also includes the concept of ethical accounting, which promotes the integration of values in these functions of the corporation. The efforts of Danish organizations to include general social and civil dimensions in their accounting and reporting practices have taken different forms (e. G. , alternative reporting measures based on dialogue and communication with employees, “balanced score cards,” and other instruments are important in this respect).
Indeed, different forms of reporting procedures have been central for ethical management and leadership. This is particularly the case guarding triple bottom line reporting, which accounts for the ecological, social, and economic dimensions of corporate performance. The predominant Danish arguments for values-driven management and business ethics have been those emphasizing the relation between good corporate citizenship and sustainable economic performance. Corporate governance is also viewed as a means to foster better management and encourage ethical demands for good governance. Thus, values-driven management is considered important for protecting the reputation, self- understanding and identity of corporations.
This includes values-driven management and business ethics as a means of focusing corporate contributions to the maintenance of sustainability, according to the triple bottom line. It is argued that corporations need to build good reputations and trusting relationships in society. In this way, there will be a closer connection between the values of the company and of society as a totality, integrating the company in the general societal conception of ethics and preserving the 22 “good life with and for the other in just institutions” as proposed by the French philosopher, Paul Recur. 4 Together, these elements can be said to constitute a Danish model of CARS ND business ethics that is peculiar, in the sense that it integrates CARS into social policy.
Beginning in the early asses, it Was used as a tool to silently change the track of the welfare state. The social minister of the social democratic-led government began to focus more on social responsibility, moving welfare policy from being rights based to more strongly encouraging active employment (I. E. , moving from ‘welfare’ to ‘workfare’). The Scandinavian welfare state has developed a model protecting social rights while promoting a stable and well-functioning employment market. Some eve characterized this model as flexibility, whereby workers can easily be fired but at the same time they are protected by the social security of the welfare state.
The social democratic government of the asses had a good understanding of the role that CARS could play in this policy shift. Increasing the number of partnerships between public authorities and private companies was decisive for developing an inclusive labor market. Greater interchange between public authorities and private companies was needed in order to establish greater links between private enterprise and broader social goals. To this end, the Copenhagen Centre for Corporate Social Responsibility was created with government support. Their purpose was to support social partnerships between public institutions, Nags, and private corporations.
At the same time, the government channeled social help into the labor market by giving us port to employment diversification schemes, including encouraging corporations to employ people normally excluded (e. G. , the elderly, people who are unable to work full time, or the disabled) by subsidizing more than half of their salaries. Under these plans, companies were encouraged to take social responsibility and contribute to an inclusive labor market, which -in an era of flexibility – has been positively received by both unions and employers. The creation of this kind of labor market can be considered as a realization of social responsibility and business ethics.
The idea of social responsibility in connection with values-driven management has contributed to an integration of basic social values in the workplace, fostering work-life balance, and preventing avoidable human tragedies. This has been accomplished by creating good and secure work conditions, decreasing the incidence of illness among workers, giving families 4 In OSI-m©me come UN Tauter (One Self as Another, translated by Kathleen Blamey, Chicago cur-perversity of Chicago press) 1 992, p. 172), PAUL IIRC-LLC develops this idea. 23 better conditions, and promoting personnel policies that prioritize personal development, diversity, integration, and good working conditions. As private political actors, corporations use different strategies to obtain legitimacy in society.
The idea of the political firm, whose emergence is a striking feature of this development regarding business ethics and corporate social responsibility, can be conceived as a search for the “reconciliation of the reticular with the universal. “5 A political firm is a firm that does not only act as an economic agent, but proposes a political view and takes part of policy- making. This may be formally but indeed also informally as a political actor in civil society. This is a very good way to describe the totality of the business ethics movement in Denmark. Social theorist Nielsen ?seekersёm Andersen argues that political firms are correlated to the developments of private policy networks-6 Andersen considers the political and socially responsible firm to be “the dream [of] civil society,” where all conflicts between the state, market, ND society are mediated and solved.
In this sense, he can be said to emphasize an organic dimension of the idea, because his somewhat romantic argument resuscitates an older, holistic vision of society from the nineteenth century, rather than acknowledging the functional reality of postmodern network society. According to this latter point of view – inspired by Nikolas Lehmann postindustrial society implies functional differentiation of different closed autopilots subsystems of society. Firms in such a functionally differentiated society are reflexive and strategic, and are aware of the importance of astigmatic in relation to their environment. A characteristic feature of these firms is polymorphic organization with many spheres and codes, with pa reticular forms and requirements Of legitimacy.
Andersen mentions specialization, optimization, sterilization, initialization (personalization), modernization, and normalization as expressions of this multitude of codes and forms of legitimacy in modern corporations. 7 Corporations are situated in different networks with different strategies of legitimacy. The role of the state is not primarily to ensure law and order and protect rights and welfare, but rather 5 7 NIELSEN ?SEEKERS˜M ANDERSEN: “Superintendence go den politesse overlooked”, in: CHRISTIAN FRANKEN (De. ): Virtuousness volunteering, Fredericksburg (Countersignature) 2004, p. 235. Fredericksburg (countersignature) 2004. See also SUSANNE HOLMS?M: Garners for answer – Den sensitive overlooked I diet reflective Samsung.
Certifiers, Center for varied overshadowed, Rookeries (ARC 5/2004). CHRISTIAN FRANKEN (De. ): Virtuousness volunteering Fredericksburg (Countersignature) 2004, up. 247-248. 24 to facilitate the possibility of these private firms to reflectively self-regulate tit regard to ethical and social issues in these private policy networks. 8 This description of the intimidation and normalization of the firm as an actor in a private policy network can be argued to express an ambitious dream of harmony between state, market, and society, explaining how it is possible to conceive of the political firm as a kind of reaction to the lack of values after the decline of Protestant ethics.
This is unusual because it is normally presupposed that the political firm is not primarily an ethical or socially responsible firm, but reflects a necessary response to the complex problems f modern society, in which societal requirements for legitimacy imply that the firm should take social responsibility and include different stakeholders in the formulation of its strategy, mission, and values. When dealing with the dream of harmony between state, market, and society, these efforts almost imply a new dimension of values. Social responsibility, values, and business ethics are conflated and promoted as brand and image with strong emotional content. With regard to political firms it is therefore important not to conceive Of values and business ethics as ideological concepts that lead to mythological ND simplistic understandings of the world, where ethics and values are reduced to propaganda to ensure the image and branding of the firm.
The vision of the political firm should not be based on irrational ethics, but rather we should try to work for the republican concept of the good corporate citizen, which implies a reflective, rational, and democratic conception of management and corporate governance. I. Values-driven Management and Organizational Systems The Danish philosopher of management, Ole Teethes, was very active in the ethical accounting movement. Actually, he was one of the inventors of the ERM in the late asses, when he and his colleagues Peter Prune and Meet Morning introduced it at Spar Nor, a bank in northern Denmark. Their concept of ethical accounting was based on the idea of ethical reasoning about major arguments. Dialogue about values was central to this concept.
In 1997, inspired by Habeas and Lehmann, Teethes wrote his 8 Ibid. , p. 254. 25 theory of values masterpiece, Values-driven management: About ethics in organizations-9 Conceiving of organizations as systems that are based on fundamental values, but also in constant interaction with their environments, we can posit aloes-driven management as the strategic response to the situation Of the corporation as an open system in society. In fact, I think it is possible to combine systems-based conceptions of organization with philosophical conceptions of ethics and practices within organization theory, in order to define the role of values-driven management as the basis for ethics in organizations.
By being explicit about ethical norms and values, communication and information about the organization can be improved. In this context, we can define organizations in the light of systems theory as systems based on communication. This communication is possible because it uses different media as basis for general codes of interaction. ID Thesis’s approach to ethical communication opens the organization to the environment and contributes to making the aim of organizational development more explicit. In this context, ethics is conceived as a reflective mechanism Of governance, which is an important supplement to the instruments of power and domination that are most commonly used In organizations, such as economic management and instrumental goal rationality.
In fact, because of the dominance of such systemic rationality, the press of economics, law, and politics are often alienated from moral reflection. Such strong distinctions between ethics, power, and economics have been criticized, because no social system can totally exclude ethics. For example, in cases where power also expresses an ethics – exactly the ethics of power it is important from the point of view of organization theory to investigate how individuals in organizational systems are absorbed by their roles, which change into forms of forced domination and accordingly limit ethical communication. In many organizations, what is required of individual employees increases according to the general demands for growth and profits. 1 According to systems theory, this kind of power has consequences in mass society, where individualizing and isolation make people who are outside of the functional systems and organizations in society feel even more lost. This need to belong to organizations and systems, combined with the increased pressure of the system on individuals in modern organizations, implies that 9 10 11 OLE TEETHES: Friendless, mm organization’s go ETSI, Kёbeneath (Guideline) 1997, 1 999 (3rd revised edition 2004). (Glendale) 1997, 1999, 2004. Ibid. 26 systems and structures cannot avoid challenging the humanity of modern organizations. Accordingly, ethical actors in organizational systems search for human solutions in order to avoid compromising human autonomy, dignity, integrity, and increasing vulnerability in modern organizations.
Ethics and voluptuaries management express efforts to deal with organizations as weltered systems of action producing outputs and reducing complexity. 12 The difficulty of values-driven management in organizational systems is dealing with situations of limited resources and choices determined by necessity. With values-driven management, we integrate ethics in the logic Of organizational systems of information. As ethical problems and dilemmas in relation to the confrontation between different stakeholders in the organization emerge, the logic of systems can no longer be based on system- immanent rationality, which is limited to the norms of instrumental rationality within the economic, legal, and political systems of organizational bureaucracy.
On the contrary, ethics can be conceived as a new instrument in the communicative process that deals with the solution to different types of inflict between stakeholders in organizations. Moreover, it also helps with organizational development and it creates a strategic vision for how to create the good life with respect for employees in the organization. Ethics in values- driven management is an important instrument to improve: 1) processes of decision making, 2) argumentation (providing a broader values foundation), 3) the legitimacy of decisions (for broader groups of stakeholders), and 4) the bases of decision making (transparency about decision-making processes).
With these different concerns, management can ensure a broader ethical axis for decision making. Accordingly, values-driven management may contribute to the demagnification of organizations. Management contributes by recognizing the importance Of employees for the decision-making process. Referring to Haberdasher’s views of communicative action, values-driven management must be based on the force of the better argument and ideological communication, where one is open to different points of view. 1 3 Such democratic communication between employees and managers may be conceived as a post-conventional form of management, which limits traditional hierarchical trustees of power based on the personal conceptions of managers.
From this perspective, management concerns the common good and decisions should be based on common democratic deliberation. 12 13 JњURGE HABEAS: Theories des communicative Handel’s I-II, Frankfurt (Surpass Average) 1981. 27 Values-driven management as an instrument for ethics may be particularly necessitated by the fact that we cannot know whether the vision of the common good in society is implied in organizational decision-making. Values are multiple and expressed at different levels of the organization, both internally and externally. It is the task Of values-driven management to clarify the function of values in the organization and to determine what values are important for the future.
From this perspective, we can perceive voluptuaries management as an important instrument to ensure communication between individuals with many individual conceptions of values. Voluptuaries management integrates ethics in general conceptions of management, thereby assuring that ethics will be central to organizational development. This is illustrated by the role of values-driven management in change management. 14 Theorists of change management consider values as very important for developing the organization. Change processes are much more likely to succeed when they are governed by a strong vision, based on efforts to change the collective consciousness and identity of the organization. A vision of change management must be honest and convincing.
This is possible when it appeals to ethics and a conceptualization of the common good and aim of the organization. Moreover, change management of values implies that the world is open and indeterminate, and that no standard bureaucratic picture of the reality of the organization can communicate the ewe values and deal with the complexity of changing the organization. In this sense, the soft vocabulary of values has replaced the bureaucratic vocabulary Of instrumental rationality Of efficiency and organizational imperative. In change processes, values-driven management implies an appeal to the system transcending character, radicalism, and creativity of proposing ethics and social responsibility as an alternative to traditional organizational governance.