The Ethics of Corporate Moral Reasoning, Moral Judgment, and Moral Justification

Abstract

Executive Summary This focal chapter deals with the understanding of important ethical theories used in executive moral reasoning such as teleology, deontology, dis-tributive justice and corrective justice, virtue ethics versus ethics of trust, from the perspectives of intrinsic versus instrumental good, moral worth versus moral obligation, and moral conscience versus moral justification. Ethical and moral reasoning will power executives to identify, explore, and resolve corporate moral dilemma, especially in the wake of emerging gray market areas where good and evil, right or wrong, just or unjust, and truth and falsehood cannot be easily distinguished. We focus on developing corporate skills of awareness of ethical values and moral imperatives in current otherwise highly commoditized and turbulent human, market, and corporate situations. The challenges of morality are multifaceted and diverse. Professionals usually have self-discipline and self-regulation abilities, ego strength, and social skills. Morality in the professions is not concerned with the issues of rudimentary socialization; rather, the issues involve deciding between conflicting values, where each value represents something good in itself. There are problems in both knowing what is right, good, true, and just on the one hand, and on the other hand, in doing what is right and avoiding wrong, doing good and avoiding evil, and being fair and just while avoiding being unfair and unjust. Several contemporary cases will illustrate the challenging dimensions of ethical and moral reasoning, moral judgment and moral justification embedded in executive decision processes, and corporate growth and profitability ventures. Case 7.1: Waksal and Stewart Samuel D. Waksal, founder of cancer-drug company Imclone Systems, and his acquaintance, Martha Stewart, founder of Martha Stewart Living Omnimedia, were two phenomenally successful business persons who overnight ruined their reputation and nearly destroyed two multi-billion dollar enterprises, simply by selling a few Imclone shares just before the release of the bad news that the FDA had de-licensed the cancer drug. Both were accused of insider trading, were driven out of the businesses they had founded, fined heavily, and served prison sentences for years. Imclone shares