Table Of ContentEthical Infrastructure
Ethical Infrastructure:
The Road to Moral Management
By
J ana N adoh Bergoc
and DanaMesner Andolsek
Cambridge
Scholars
Publishing
Ethical Infrastructure: The Road to Moral Management
By Jana Nadoh Bergoe and Dana Mesner Andolsek
This book first published 2019
Cambridge Scholars Publishing
Lady StephensonLibrary, Newcastle upon Tyne, NE6 2PA, UK
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Copyright© 2019 by Jana Nadoh Bergoe and Dana Mesner Andolsek
All rights for this book reserved. No part ofthis book may be reproduced,
stored in a retrieval system, or transmitted, in any fonn or by any means,
electronic, mechanical, photocopying, recording or otherwise, without
the prior pennission ofthe copyright owner.
ISBN (10): 1-5275-3295-X
ISBN (13): 978-1-5275-3295-3
Jana-To my family: for supporting me always.
Dana-To my wonderful sons ert and AljaZ.
TABLE OF CONTENTS
List of Illustrations .................................................................................. xi
List of Tables ........................................................................................... xii
AckIIowledgments. ................................................................................. xiii
.............................................................................................. 1
Introduction
Chapter One: Conceptual Foundation for the Study of Ethical
Infrastructures and Their Impact on the Moral Behaviour of
Management. ............................................................................................. 6
1.1 Disciplinary framework. ................................................................... 6
1.1.1 Business ethics .......................................................................... 8
1.1.1.1 Philosophy in business ethics ......................................... 10
1.1.1.1.1 Duty ........................................................................ 13
1.1.1.1.2 Rights. ..................................................................... 14
1.1.1.1.3 Benefits ................................................................... 15
1.1.1.1.4 Virtues .................................................................... 17
1.1.1.1.5 Relationship ............................................................ 19
1.1.1.2 Business ethics theory .................................................... 22
1.1.1.2.1 The stakeholder concept ......................................... 22
1.1.1.2.2 Corporate social responsibility ............................... 24
1.1.1.2.3 Corporate sustainability .......................................... 27
1.1.2 Theories of organisation ......................................................... 29
1.1.2.1 Rationality/economy in organisational theories ............. 30
1.1.2.2 The »social« in organisational theories .......................... 32
1.1.2.3 Self· realisation in organisational theories ...................... 35
1.1.2.4 Responsibility in organisational theories ........................ 36
1.1.3 Fundamental sociological concepts ........................................ 39
1.1.3.1 Structure ......................................................................... 39
1.1.3.2 Organisational structure ................................................. 41
1.1.3.3 Organisation as a system of roles and the role
of managers ................................................................................ 43
1.1.3.4 Acting and the role of habitus ........................................ 49
1.1.3.5 Organisation as a process of structuring and power ....... 55
viii Table of Contents
1.2 Organisational framework .............................................................. 59
1.2.1 New values in organisations ................................................... 60
1.2.1.1 Learning, knowledge and creativity ............................... 60
1.2.1.2 New psychological contract ........................................... 63
1.2.1.3 Trust ............................................................................... 66
1.2.1.4 Emotions ........................................................................ 69
1.2.2 Morality in business ................................................................ 72
1.2.3 Morality in organisations ........................................................ 75
1.3 At the end of tbe first chapter. ........................................................ 79
82
Chapter Two: Studying Morals and Management.. ............................
2.1 Morality and management in the light of contemporary
approaches to leadership and management .......................................... 83
2.1.1 Transformational leadership ................................................... 84
2.1.2 Theory of exchange between leaders and followers ............... 89
2.1.3 Participative leadership ........................................................... 94
2.1.4 Humanistic leadership ............................................................. 98
2.1.5 Servant leadership ................................................................. 103
2.1.6 Responsible leadership .......................................................... 108
2.2 Moral management... .................................................................... 117
2.3 Moral behaviour of managers ....................................................... 126
2.3.1 The moral manager·a good manager? ................................... 130
2.3.2 The moral manager·an ideal manager? ................................. 133
2.4 At the end of tbe second chapter .................................................. 136
Chapter Three: Enhancement of Moral Behaviour
139
in Organisations. ...................................................................................
3.1 Etbics management ...................................................................... 143
3.1.1 Models of ethics management .............................................. 145
3.1.1.1 DeColle and Werhane (2008)·A model of managing
ethics focusing on the concept of moral imagination ............... 149
3.1.1.2 Rossouw and van Vuuren (2003)· The Modes of
Managing Morality Model ....................................................... 154
3.1 1.3 Ackerman (1977)·Phases oftbe institutionalisation
of ethics in organisations .......................................................... 158
3.1.1.4 The EFQM Business Excellence Model as a Platform
for Etbics Management (1991, 2010) ....................................... 162
3.1.1.5 Kaptein (1998)·Ethics qualities model ......................... 171
3.1.2 The elements of etbics management ..................................... 176
3.1.2.1 The code of ethics ........................................................ 176
3.1.2.2 Etbics statements .......................................................... 181
Ethical Infrastructure: The Road to Moral Management ix
3.1.2.3 Internal reporting and advisory systems 184
.......................
3.1.2.4 Risk analysis and management... .................................. 187
3.1.2.5 Organisational departments/functions for ethics 190
..........
3.1.2.6 Education and training in the field of ethics 194
.................
3.1.2.7 Ethics reporting 200
............................................................
3.2 Institutional incentives for managing ethics in organisations 205
.......
3.2.1 The international environment and Europe 206
...........................
3.2.1.1 The EU for corporate social responsibility 208
...................
3.2.1.2 Guidelines and standards for corporate ethics 211
..............
OECD Principles of Corporate Governance 211
........................
OECD Guidelines for Corporate Governance of State-
Owned Enterprises 213
...............................................................
OECD Guidelines for Multinational Enterprises 215
.................
OECD Good Practice Guidance on Internal Controls,
Ethics, and Compliance 219
.......................................................
3.2.1.2.2 The United Nations (UN) 221
.....................................
The United Nations Guidelines on Business and Human
Rights 221
..................................................................................
Universal principles of the Global Compact UN 225
.................
Guidelines of the International Labour Organisation 226
..........
3.2.1.2.3 International Organisation for Standardisation 228
.....
3.3 At the end of the third chapter.. 231
....................................................
Chapter Four: Ethical Infrastructure as a Factor in Enhancing the
234
Moral Behaviour of Managers ............................................................
4.1 Formal systems in ethical infrastructure 238
.......................................
4.1.1 System offormal communication 240
.........................................
4.1.2 System offormal control 243
......................................................
4.1.3 System offormal rewarding and sanctioning 248
........................
4.2 Informal systems in ethical infrastructure 250
....................................
4.2.1 System of informal communication 253
......................................
4.2.2 System of informal control 256
...................................................
4.2.3 System of informal rewarding and sanctioning 257
....................
4.3 Role of ethical climate in ethical infrastructure 260
............................
4.3.1 Victor and Cullen (1988)-Types of ethical work climate 260
......
4.3.2 Ethical climate as part of ethical infrastructure 265
.....................
4.4 At the end of the fourth chapter. 268
...................................................
