Ethical decision-making descriptive theoretical models often conflict with each other and typically lack comprehensiveness. To address this deficiency, a revised EDM model is proposed that consolidates and attempts to bridge together the varying and sometimes directly conflicting propositions and perspectives that have been advanced. To do so, the paper is organized as follows. First, a review of the various theoretical models of EDM is provided. These models can generally be divided into rationalist-based ; and non-rationalist-based. Second, the proposed model, called (...) ‘Integrated Ethical Decision Making,’ is introduced in order to fill the gaps and bridge the current divide in EDM theory. The individual and situational factors as well as the process of the proposed model are then described. Third, the academic and managerial implications of the proposed model are discussed. Finally, the limitations of the proposed model are presented. (shrink)

Abstract:Extrapolating from Carroll’s four domains of corporate social responsibility (1979) and Pyramid of CSR (1991), an alternative approach to conceptualizing corporate social responsibility (CSR) is proposed. A three-domain approach is presented in which the three core domains of economic, legal, and ethical responsibilities are depicted in a Venn model framework. The Venn framework yields seven CSR categories resulting from the overlap of the three core domains. Corporate examples are suggested and classified according to the new model, followed by a discussion (...) of limitations and teaching and research implications. (shrink)

A study was conducted in order to examine the relationship between corporate codes of ethics and behaviour. Fifty-seven interviews of employees, managers, and ethics officers were conducted at four large Canadian companies. The study found that codes of ethics are a potential factor influencing the behaviour of corporate agents. Reasons are provided why codes are violated as well as complied with. A set of eight metaphors are developed which help to explain how codes of ethics influence behaviour.

Business codes are a widely used management instrument. Research into the effectiveness of business codes has, however, produced conflicting results. The main reasons for the divergent findings are: varying definitions of key terms; deficiencies in the empirical data and methodologies used; and a lack of theory. In this paper, we propose an integrated research model and suggest directions for future research.

Can a corporation have a conscience? What is wrong with reverse discrimination? Can ethical management and managed care coexist? Hoffman, Frederick, and Schwartz address these and many other current, intriguing, often complex issues in corporate morality. This introductory business ethics text contains a thorough general introduction on ethical theory, 54 readings, and 25 cases. Divided into five parts, each with an introduction that presents the major themes of its articles and cases, the text contains an impartial, point-counterpoint presentation of different (...) perspectives on the most important issues being debated in business ethics. Each chapter ends with questions that can be used for student discussion, review, tests/quizzes, or for student assignments. The fourth edition has 27 new readings, 15 new cases, and 10 new mini-cases. (shrink)

Are corporate codes of ethics necessarily ethical? To challenge this notion, an initial set of universal moral standards is proposed by which all corporate codes of ethics can be ethically evaluated. The set of universal moral standards includes: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship. By applying the six moral standards to four different stages of code development (i.e., content, creation, implementation, administration), a code of ethics for corporate codes of ethics is constructed by (...) which companies can be ethically audited for compliance. The newly proposed code of ethics for corporate codes of ethics was then applied to four large Canadian companies representing a variety of industries: telecommunications; banking, manufacturing, and high technology. The ethical audit of the four companies' ethics programs based on the proposed code indicates that all four companies have room to improve the ethical nature of their codes of ethics (i.e., content, creation, implementation, administration). (shrink)

How can one establish if a corporate code of ethics is ethical in terms of its content? One important first step might be the establishment of core universal moral values by which corporate codes of ethics can be ethically constructed and evaluated. Following a review of normative research on corporate codes of ethics, a set of universal moral values is generated by considering three sources: (1) corporate codes of ethics; (2) global codes of ethics; and (3) the business ethics literature. (...) Based on the convergence of the three sources of standards, six universal moral values for corporate codes of ethics are proposed including: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship. Relying on the proposed set of universal moral values, implications are discussed as to what the content of corporate codes of ethics should consist of. The paper concludes with its limitations. (shrink)

The study examines employee, managerial, and ethics officer perceptions regarding their companies codes of ethics. The study moves beyond examining the mere existence of a code of ethics to consider the role that code content and code process (i.e. creation, implementation, and administration) might play with respect to the effectiveness of codes in influencing behavior. Fifty-seven in-depth, semi-structured interviews of employees, managers, and ethics officers were conducted at four large Canadian companies. The factors viewed by respondents to be important with (...) respect to code effectiveness include: provisions of examples; readability; tone; relevance; realism; senior management support; training; reinforcement; living up to standards; reporting requirement; anonymous phone line; communicating violations; and enforcement. The factors found to be potentially important include: justification for provisions; employee involvement; and sign-off requirements. Factors found not to be important include: objectives for the code; prior distribution; testing; and relating ones performance review to compliance with the code. (shrink)

. Recent corporate scandals have focused the attention of a broad set of constituencies on reforming corporate governance. Boards of directors play a leading role in corporate governance and any significant reforms must encompass their role. To date, most reform proposals have targeted the legal, rather than the ethical obligations of directors. Legal reforms without proper attention to ethical obligations will likely prove ineffectual. The ethical role of directors is critical. Directors have overall responsibility for the ethics and compliance programs (...) of the corporation. The tone at the top that they set by example and action is central to the overall ethical environment of their firms. This role is reinforced by their legal responsibilities to provide oversight of the financial performance of the firm. Underlying this analysis is the critical assumption that ethical behavior, especially on the part of corporate leaders, leads to the best long-term interests of the corporation. We describe key components of a framework for a code of ethics for corporate boards and individual directors. The proposed code framework is based on six universal core ethical values: (1) honesty; (2) integrity; (3) loyalty; (4) responsibility; (5) fairness; and (6) citizenship. The paper concludes by suggesting critical issues that need to be dealt with in firm-based codes of ethics for directors. (shrink)

There appears to be an implicit assumption by those connected with the ethical investment movement (e.g., ethical investment firms, individual investors, social investment organizations, academia, and the media), that ethical investment is in fact ethical. This paper will attempt to challenge the notion that the ethical mutual fund industry, as currently taking place, is acting in an ethical manner. Ethical issues such as the transparency of the funds and advertising are discussed. Ethical mutual fund screens such as tobacco, alcohol, gambling, (...) and the military are preliminarily examined to better determine whether they can actually be defined as "ethical" screens as opposed to merely social, political, or religious screens. A code of ethics for ethical investment is constructed by which ethical mutual fund firms can be audited for ethical compliance. (shrink)

The article protests against the usage of ethical codes by business organisations. It asserts that professionals are in a different situation to that of employees; and that with the latter ethical codes are used by management to ensure compliance and are devoid of ethical content. Ethical codes it is argued are part of management's control system in a time of flatter organisational structures with a far wider span of control. It is also asserted that the ambitions of some to utilise (...) ethical codes so that the business organisation is able to engender societal change is dangerous and likely, if successful, to return us to an age which we could not seriously desire to re-visit. (shrink)

After years of near total neglect, the problem of childhood obesity is now in the limelight. Terms like “epidemic,” “crisis,” and “emergency” are used frequently when describing the trend. Progress is defined with strong language and fueled by statistics such as the observation that this generation of children will be the first to live shorter lives than their parents. Multi-disciplinary journals such as the Journal of Law, Medicine & Ethics have dedicated symposiums to the issue, and conferences have been convened (...) not only by health professionals but by government agencies, the food industry, and even professionals who market to children. The seriousness of childhood obesity is no longer in doubt, and finally attention has turned to the more complex question – what must be done? (shrink)

In November, 1991, the U.S. Congress enacted the U.S. Federal Sentencing Guidelines legislation which had a dramatic impact on corporate America. Can the Guidelines be used as a model or framework by other countries? Could other countries in the world benefit from adopting a similar piece of legislation? Are there any limitations to consider? In addressing these issues, the authors make the argument that the time has arrived for other countries to consider the development of legislation similar to the Guidelines (...) in order to improve organizational ethics. (shrink)

Can or should God be considered a managerial stakeholder? While at first glance such a proposition might seem beyond the norms of stakeholder management theory or traditional management practice, further investigation suggests that there might be both theoretical and practical support for such a notion. This paper will make the argument that God both is and should be considered a managerial stakeholder for those businesspeople and business firms that accept that God exists and can affect the world. In doing so, (...) part one of the paper first discusses the growth of religion and spirituality within the business and academic communities. Part two raises several arguments based on stakeholder theory and business reality to support the notion of God as a managerial stakeholder. Part three addresses the arguments against God as a managerial stakeholder. Part four discusses the managerial implications of considering God as a managerial stakeholder. The paper concludes with its limitations. (shrink)

ABSTRACTWhen attempting to articulate the nature and scope of corporate social responsibility , a variety of opinions emerge. The primary CSR issue appears to be: Should firms go “beyond profits”? In order to address this normative question, this article will explore the theoretical underpinnings of CSR and its practical application. Part one of the paper begins by discussing common CSR definitions. Part two outlines the CSR debate in terms of the “narrow view” of CSR versus the “broad view” . Part (...) three applies both the narrow and broad approaches to CSR in analyzing two classic business and society cases: the Ford Pinto; and Merck's river blindness pill. The article concludes with a proposed synthesis of the CSR approaches discussed. (shrink)

The paper examines both the phenomenology of the manic self as well as critical aspects of manic neurobiology, focusing, with respect to both domains, on manic temporality. We argue that the distortions of lived time in mania exceed mere acceleration and are fundamental for manic affectivity. Mania involves radical acceleration and radical asynchronicity, which result in an instantaneous existence. People with mania rebel against the facticity of reality and suffer from an existential leap towards the future, in which the self (...) abandons normal temporal boundaries. Excerpts from the interviews with persons with mania who experienced psychosis illustrate this phenomenon. Commenting upon disrupted circadian rhythms in mania and the role of lithium in its treatment the paper posits manic temporality as the link through which manic phenomenology and manic neurobiology intertwine. (shrink)

The paper explores the ongoing debate between the narrow version of CSR proposed by Milton Friedman and the broader version of CSR, which includes additional ethical and/or philanthropic obligations. Implications are then discussed.

In order to gain greater insight into the nature of corporate social responsibility (CSR) during a time of crisis, the study examines the commitment of firms to continue to engage in CSR activity despite financial pressures to divert their slack resources elsewhere. The setting of the study is CSR activity during the perhaps unprecedented global crisis associated with the COVID-19 pandemic. Based on a qualitative research method approach, both a variety of media sources and the relevant academic literature are reviewed (...) in order to identify examples of CSR activity related specifically to COVID-19. The examples are then categorized and situated according to Professor Archie Carroll’s well-known CSR Pyramid framework describing the economic, legal, ethical, and philanthropic domains of CSR. As such, this study is the first to extend the rich literature stream utilizing Carroll’s CSR Pyramid within the unique context of a global pandemic. (shrink)

This paper argues that intuition plays a role in the diagnosis of schizophrenia and presents its phenomenological rationale. A discussion of self-assessment questionnaires and empirical studies in the clinical setting provides evidence that despite the prevalence of operational diagnosis, the intuitive judgment of schizophrenia continues to take place. Two related notions of intuitive diagnosis are presented: Minkowski’s diagnostic by penetration and Rümke’s praecox feeling. Further on, the paper explores and clarifies the phenomenology behind the praecox feeling. First, it is argued, (...) intuitive diagnosis is neither a feeling nor an experience, but a typification operating at an implicit level. Second, it is not simply subjective as spatially it takes place in the in-between of the clinical interaction. Finally, it is not just momentary, but temporally extended, and, hence, partly reflective. The paper suggests that intuitive diagnosis requires critical testing on the side of the psychiatrist to either confirm or falsify it through reflective operations. In conclusion, the merits and shortcomings of intuitive vs. operational diagnosis are presented. (shrink)

In the field of business and society, several complementary frameworks appear to be in competition for preeminence. Although debatable, the primary contenders appear to include (a) corporate social responsibility, (b) business ethics, (c) stakeholder management, (d) sustainability, and (e) corporate citizenship. Despite the prevalence of the five frameworks, difficulties remain in understanding what each construct really means, or should mean, and how each might relate to the others. To address the confusion, the authors propose three core concepts—value, balance, and accountability—that (...) might be used to better integrate the five frameworks and potentially provide the basis for further discussion and theoretical development of the business and society field. (shrink)

This paper speculates upon the reasons for Peter Drucker's ongoing and vigorous denial of the relevance of business ethics. It contemplates whether Drucker consciously, or even perhaps subconsciously, associates the aims of business ethics with the aims of those associated with the Arbeitsfreude movement in Germany prior to the outbreak of the second world war. If this is the case the paper questions whether Drucker's distaste for some of the more notorious outcomes of that movement in Germany are reflected in (...) his hostility to business ethics. Drucker's reflections regarding the social responsibilities of business are discussed, as are the limitations which he imposes upon such corporate social responsibility. Drucker's distinction between societal ethics and individual ethics are also discussed. (shrink)

At the end of their article in the September 2014 issue of the Journal of Business Ethics, Douglas R. May, Matthew T. Luth, and Catherine E. Schwoerer state that they are “hopeful in outlook” about the “evidence that business ethics instructors are….able to encourage students…to develop the courage to come forward even when pressures in organizations dictate otherwise”. We agree with May et al. that it is essential to augment students’ moral courage. However, it seems overly optimistic to believe that (...) this improvement will result from any course in business ethics. Indeed, we question the appropriateness of their measure of moral courage and assert that business ethics educators must purposely design their courses to develop students’ moral courage. In particular, we advocate introducing business ethics students to works of literature featuring protagonists who exercise moral courage in organizations. Fiction provides rich accessible narratives that show students worlds beyond their experience, awaken their imaginations, and evoke their emotions. Further, we highlight morally courageous exemplars because they inspire the cultivation of character. Joining those who underscore the role of virtue in business ethics education, we argue that exposure to moral exemplars in fiction will help students to build the moral courage they need to carry out ethical decisions in the workplace. Results from 46 students at the end of an MBA ethics course featuring moral courage provide preliminary evidence of the effectiveness of our approach. (shrink)

Karl Jaspers' phenomenology remains important today, not solely because of its continuing influence in some areas of psychiatry, but because, if fully understood, it can provide a method and set of concepts for making new progress in the science of psychopathology. In order to understand this method and set of concepts, it helps to recognize the significant influence that Edmund Husserl's early work, Logical investigations, exercised on Jaspers' formulation of them. We trace the Husserlian influence while clarifying the main components (...) of Jaspers' method. Jaspers adopted Husserl's notions of intuition, description, and presuppositionlessness, transforming them when necessary in order to serve the investigations of the psychopathologist. Jaspers also took over from Wilhelm Dilthey and others the tools of understanding (Verstehen) and self-transposal. The Diltheyian procedures were integrated into the Husserlian ones to produce a method that enables psychiatrists to define the basic kinds of psychopathological mental states. (shrink)

Thomas W. Dunfee, in addition to his many other contributions to business ethics literature, has generated a stream of research that attempts to tackle the issue of corruption. Dunfee's research on corruption includes three primary contributions: the introduction of "Integrative Social Contract Theory" which provides a normative theoretical framework by which to judge the morality of global business activity including corruption; the "C2 Principles", which outline specific content and implementation measures that corporations can voluntarily adopt to combat corruption; and a (...) normative evaluation of "guanxi," a concept which can lead to questionable corruption practices in China. The article will highlight Dunfee's contribution to the literature and suggest future research directions based on his academic work. (shrink)

The goal of this paper is to introduce Phenomenology and the Cognitive Sciences’ thematic issue on disordered temporalities. The authors begin by discussing the main reason for the neglect of temporal experience in present-day psychiatric nosologies, mainly, its reduction to clock time. Methodological challenges facing research on temporal experience include addressing the felt sense of time, its structure, and its pre-reflective aspects in the life-world setting. In the second part, the paper covers the contributions to the thematic issue concerning temporal (...) experience in anxiety, depression, mania, addiction, post-traumatic stress disorder, autism, and in recovery from psychosis. The authors argue in favor of integrative and cross-disciplinary approaches. In conclusion, they present time as a significant aspect of human suffering. (shrink)

Basing ourselves on the writings of Hans Jonas, we offer to psychosomatic medicine a philosophy of life that surmounts the mind-body dualism which has plagued Western thought since the origins of modern science in seventeenth century Europe. Any present-day account of reality must draw upon everything we know about the living and the non-living. Since we are living beings ourselves, we know what it means to be alive from our own first-hand experience. Therefore, our philosophy of life, in addition to (...) starting with what empirical science tells us about inorganic and organic reality, must also begin from our own direct experience of life in ourselves and in others; it can then show how the two meet in the living being. Since life is ultimately one reality, our theory must reintegrate psyche with soma such that no component of the whole is short-changed, neither the objective nor the subjective. In this essay, we lay out the foundational components of such a theory by clarifying the defining features of living beings as polarities . We describe three such polarities: 1) Being vs. non-being: Always threatened by non-being, the organism must constantly re-assert its being through its own activity. 2) World-relatedness vs. self-enclosure: Living beings are both enclosed with themselves, defined by the boundaries that separate them from their environment, while they are also ceaselessly reaching out to their environment and engaging in transactions with it. 3) Dependence vs. independence: Living beings are both dependent on the material components that constitute them at any given moment and independent of any particular groupings of these components over time. We then discuss important features of the polarities of life: Metabolism; organic structure; enclosure by a semi-permeable membrane; distinction between "self" and "other"; autonomy; neediness; teleology; sensitivity; values. Moral needs and values already arise at the most basic levels of life, even if only human beings can recognize such values as moral requirements and develop responses to them. (shrink)

This paper attempts to build on the contribution to moral imagination theory by Patricia Werhane by further integrating moral imagination with new theoretical developments that have taken place in the business ethics field. To accomplish this objective, part one will review the concept of moral imagination, from its definitional origins to its full theoretical conceptualization. Part two will provide a brief literature review of how moral imagination has been applied in empirical research. Part three will analyze and apply the construct (...) of moral imagination as it relates to the key process stages of ethical decision making including awareness, judgment, intention, and behavior. Immoral imagination is then discussed, along with other behavioral ethics concepts as they relate to moral imagination. The paper concludes with potential future research directions, as well as teaching and managerial implications for the moral imagination construct. (shrink)

This paper examines the problem of vituperative feedback from peer reviewers. We argue that such feedback is morally unacceptable, insofar as it humiliates authors and damages their dignity. We draw from social-psychological research to explore those aspects of the peer-review process in general and the anonymity of blind reviewing in particular that contribute to reviewers’ humiliating comments. We then apply Iris Murdoch's ideas about a virtuous consciousness and humility to make the case that peer referees have a moral obligation not (...) to humiliate the authors whose work they review. (shrink)

Typically seniors like others choose to avoid institutional care. However, when age-related infirmity requires it, they not only enter into the care of others, but they also do so as vulnerable members of society. As their frailty increases with age, so does their dependence on the professionals who care for them and on the enforcement of policies concerning their care. A qualitative case study involving seniors and their carers revealed that breaches of confidentiality, unprofessional behaviour and the non-enforcement of policy, (...) continue to hide the physical and emotional abuse perpetrated by nursing and other staff on vulnerable consumers. Professional ethics, including at a corporate level, enforcing policy, protecting whistleblowers and creating reporting mechanisms for aged care researchers, are amongst the recommendations arising from this study. (shrink)

A research instrument is developed and preliminarily validated to formally measure the level of national business ethics activity for any country in the world. The seven dimensions measured include (a) academia, (b) business, (c) social or ethical investment, (d) business ethics organizations, (e) government activity, (f) social activist groups, and (g) media coverage. Results from the validation survey and examples are provided for each of the dimensions. The article concludes with future research directions for the instrument.

A number of business ethics theorist have highlighted the potential for economics to contribute to the advancement of business ethics. In response, this article emphasizes the insights of a particular area of economics that could provide such expansion and development. Subjectivist economics may yet provide an effective analytical framework through which to investigate and evaluate business decision making, and hence the ethics of business. Integrating the concepts of uncertainty, time and imagination, subjectivist economic theory contributes to a greater appreciation of (...) economic choice and behaviour. While such notions are often effectively omitted from modern economic analysis to aid formal representation, business ethicists could utilize such concepts more effectively than their colleagues in economic theory. Significantly, the well-known economists who have championed the insights of subjectivist economics have themselves recommended its extension to an analysis of ethics. (shrink)

Food safety problems in China, such as deadly tainted milk, have attracted growing attention from a corporate social responsibility perspective. To examine the forces that potentially drive CSR behavior within the Chinese food industry, our study is organized as follows. First, a review is conducted on the unique history of CSR in China as well as some of the major Chinese food scandals that have taken place. The primary drivers of CSR in China that have been suggested in the literature (...) are then summarized. Next, new institutional theory perspectives are drawn upon to analyze three forces that potentially affect the behavior of Chinese firms: coercive isomorphism, mimetic processes, and normative pressures. Based on a questionnaire survey of 164 Chinese managers and employees, the CSR behavior of firms operating in the Chinese food industry is found to only be significantly affected by the institutional factor of normative pressures. The study concludes with its limitations as well as the implications of the findings. (shrink)

The clinical ethics propounded by Richard Zaner is unique. Partly because of his phenomenological orientation and partly because of his own daily practice as a clinical ethicist in a large university hospital, Zaner focuses on the particular concrete situations in which patients and their families confront illness and injury and struggle toward workable ways for dealing with them. He locates ethical reality in the clinical encounter. This encounter encompasses not only patient and physician but also the patients family and friends (...) and indeed the entire lifeworld in which the patient is still striving to live. In order to illuminate the central moral constituents of such human predicaments, Zaner discusses the often-overlooked features of disruption and crisis, the changed self, the patients dependence and the physicians power, the violation of personal boundaries and their necessary reconfiguring, and the art of listening. (shrink)

A series of papers in Philosophy, Ethics and Humanities in Medicine (PEHM) have recently disputed whether non-heart beating organ donors are alive and whether non-heart beating organ donation (NHBD) contravenes the dead donor rule. Several authors who argue that NHBD involves harvesting organs from live patients appeal to.

This article explains Iris Murdoch's notion of moral vision and its importance as a basic concept within applied ethics. It does so by exploring the influence of Iris Murdoch upon Alasdair Maclntyre whose ideas are frequently discussed by business ethicists. Arguably, the British philosopher Iris Murdoch who wrote -amongst others -Metaphysics as a Guide to Morals, along with her contemporaries, Philippa Foot and Elizabeth Anscombe, pioneered the resurgence of Aristotle's virtue ethics. Furthermore, Iris Murdoch influenced Alasdair Maclntyre. Heather Widdows, in (...) her biography of Iris Murdoch lists Alasdair Maclntyre amongst those ' thinkers she inspired'. And in his writings Maclntyre does both examine Murdoch's work and acknowledge that ' Iris Murdoch has... put us all in her debt'. Murdoch was both an influential philosopher and a successful novelist. Maclntyre has stated that ' Iris Murdoch's novels are philosophy: but they are philosophy which casts doubt on all philosophy, including her own'. I therefore explore in this article the influence of Iris Murdoch's literary work, where ' true vision occasions right conduct' upon Alasdair Maclntyre's portrayal of us as ' storytelling animals' on a 'narrative quest'. (shrink)

Scholarship into the empirical relationship between moral intensity (MI) and ethical decision-making (EDM) offers only equivocal empirical results. This ethical decision-making study is the first cumulative review to synthesize and assess over three decades of research into Jones’ (1991) MI construct by investigating the influence of each of the MI characteristics on Rest’s (1986) ethical decision-making stages (EDMS): awareness, judgment, intention, and behavior. After classifying 125 empirical papers according to the effect each moral intensity characteristic has on each EDMS, only (...) two of six MI characteristics (magnitude of consequences and social consensus) were found to have a consistent positive association, three characteristics were observed to have a moderate relationship (temporal immediacy, concentration of effect, and probability of effect), while proximity appears to have only a weak connection with EDM. This research review challenges the current conceptualization of the MI construct on both empirical and theoretical grounds. The analysis concludes with a brief discussion of the managerial implications of the analysis. (shrink)

Discussions of both personal responsibility and the importance of trust in health-care settings are increasingly prominent in the bioethics literature. In this paper I link the two discussions and argue that health policies that include personal responsibility ought to address climates of social trust. Trust is a social good that is not always fairly distributed. Disadvantaged social groups often face default distrust. I suggest that agent-centered models in which responsibilities are negotiated do a better job of repairing social distrust than (...) authoritative models in which responsibilities are assigned. Attending to climates of trust, distrust, or antitrust is essential for addressing health inequalities. (shrink)

Backdating of stock options is an example of an agency problem. It has emerged despite all the measures (i.e., new regulations and additional corporate governance mechanisms) aimed at addressing such problems? Beyond such negative controlling measures, a more positive empowering approach based on ethics may also be necessary. What ethical measures need to be taken to address the agency problem? What values and norms should guide the board of directors in protecting the shareholders' interests? To examine these issues, we first (...) discuss the role values and norms can play with respect to underlying corporate governance and the proper role of directors, such as transparency, accountability, integrity (which is reflected in proper mechanisms of checks and balances), and public responsibility. Second, we discuss various stakeholder approaches (e.g., government, directors, managers, and shareholders) by which conflicts of interest (i.e., the agency problem) can be addressed. Third, we assess the practice of backdating stock options, as an illustration of the agency problem, in terms of whether the practice is legally acceptable or ethically justifiable. Fourth, we proceed to an analysis of good corporate governance practice involving backdating options based on a series of ethical standards including: (1) trustworthiness; (2) utilitarianism; (3) justice; and (4) Kantianism. We conclude that while executive compensation schemes (e. g., stock options) were originally intended to help remedy the agency problem by tying together the interests of the executives and shareholders, these schemes may have actually become "part of the problem," and that the solution ultimately depends upon whether directors and executives accept that all of their actions must be based on a set of core ethical values. (shrink)