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Multi-level marketing companies (MLMs) such as Amway, Herbalife, or Tupperware differ from most other companies. They market their products and services by means of self-employed distributors who typically work from home, sell products to end consumers, and recruit, motivate, and educate new distributors to do the same. Although the industry's growth seems to illustrate the attractiveness of MLMs, the industry has been facing several legal and ethical problems. In this paper, we focus on these problems and argue that an extended MLM model may help us to understand why such problems continue to occur, despite the countermeasures that have been implemented. By explicating how problems relate to a specific but often overlooked characteristic of MLMs, i.e., the socalled distributor network, we provide an extended understanding of (a) MLMs' mode of operation, (b) the sources of their legal and ethical problems, and (c) the reason that currently implemented and suggested countermeasures may not suffice. Moreover, based on our extended understanding of MLMs and their problems, we propose additional countermeasures.

To discuss moral behavior in organizations, a growing number of authors turn to a 'virtue ethics' approach. Central to this approach is the so-called moral character of individuals in organizations: a well-developed moral character enables organizational members to deal with the specific moral issues they encounter during their work. If a virtue ethics perspective is seen as relevant, one may ask how organizations can facilitate that their members can exercise and develop their moral character. In this paper, we argue that the way tasks are defined and interlinked (the organization's structure) has a profound influence on ''exercising and developing moral character''-it can enhance and frustrate it. In order to show how structures may support organizational members to exercise and develop their moral virtues, the paper first describes what it means to exercise and develop virtues in an organizational setting and what is required for it. Next, the paper sets out to explain how specific values on different structural parameters (formalization, decentralization, specialization, and unit grouping) at different structural levels (micro, macro, and network) relate to exercising virtues in organizations.

In this paper, Beer's Viable System Model (VSM) is applied to knowledge management. Based on the VSM, domains of knowledge are identified that an organization should possess to maintain its viability. The logic of the VSM is also used to support the diagnosis, design and implementation of the knowledge processes that should make and keep organizationally viable knowledge available.

PurposeThe purpose of this paper is to use de Sitter's design theory to show how organizational structures can be designed so as to attenuate organizational disturbances and amplify regulatory potential. It is argued that organizational structures with low values on so‐called design‐parameters are themselves no source of disturbances and have the required built‐in regulatory potential.Design/methodology/approachKey concepts from de Sitter's design theory are introduced and used to show how structures can attenuate disturbances and amplify regulatory potential.FindingsThe analysis in this paper deepens our understanding of the role of organizational structures for dealing with organizational complexity, and of the design parameters that should be manipulated to achieve structural attenuation and amplification.Practical implicationsHaving a structure permitting organizations to attenuate and amplify is a crucial condition for organizational viability. This paper provides guidelines for the design of such structures.Originality/valueThis is one of a limited number of studies that makes apparent how general insights from (management) cybernetic (e.g. viability, attenuation and amplification) may be realized in organizations by their structural design.

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