Virtue+Ethics+and+Business

A very old concept, virtue has existed since the time of Aristotle, 384 BC. Focusing on how to live a good life, as opposed to acting in the right way, virtue ethics emerged in 1958 with the publication of [|Elizabeth Ascombe’s paper on modern moral philosophy]. As individuals, virtues are a part of who we are and helps form our character. In business, corporate character and virtue ethics are formed in the pursuit of excellence. Within business, a common manifestation of virtue ethics is the corporate statement of values or core values.
 * Virtue Ethics in Business **

Two approaches to applying ethics in business:

1. The traditional approach: this approach is based on action and is drive by rules and guidelines to constrain corporate leaders’ actions. The rules and guidelines are aligned with the defined corporate character and ethics represented in the organization’s values.

2. The agent-based approach: this approach involves character and motivations of the individual or “agent”. A virtuous agent is one that exercises the virtues where moral behavior is not limited to following to a rule or guideline but involves the individual rationally pursuing moral excellence.

According to Dobson the virtue ethics theory is attracting increasing interest from business ethicists. He says “In essence, the 'virtue' in virtue-ethics is defined as some desirable character trait, such as courage, that lies between two extremes, such as rashness and cowardice.” This means the 'virtuous' agent is continually focused on finding balance in decision-making.

“Such an agent does not apply any specific 'rules' in making decisions, but rather attempts to make decisions that are consistent with the pursuit of a particular kind of excellence that in turn entails exercising sound moral judgement guided by such 'virtues' as courage, wisdom, temperance, fairness, integrity, and consistency.”
 * Implications for businesses **

There are significant implications on the role of business organizations. The structures and values embodied by the organization must provide an environment that allows the virtues to flourish; MacIntyre says "one cannot think for oneself if one thinks entirely by oneself, .. it is only by participation in a rational practice-based community that one becomes rational .."

Within the business organization, the goals of the individual or agent working for them must be nurtured and supported. "Corporations are real communities,..and therefore the perfect place to start understanding the nature of virtues." Solomon focuses on the link between virtue-ethics and this expanded role organizations in nurturing their community: "It is an Aristotelian ethics precisely because it is membership in a community, a community with collective goals and a stated mission - to produce quality goods and/or services and make a profit..."