Putting ethics and economic rationality together: an Aristotelian and philosophical approach

Numerous researchers have examined the antecedents of trust between managers and subordinates. Recent studies conclude that their influence varies depending on whether what is being examined is a manager's trust in a subordinate or a subordinate's trust in a manager. However, the reasons given to justify this phenomenon present limitations. This article offers a new theoretical approach that relates the influence of each antecedent to Aristotelian forms of reasoning, ethical, and instrumental. The proposed approach shows that the influence of each antecedent depends on which rationality prevails in the person who trusts. The contribution of this article is to better explain the phenomenon of interpersonal trust formation and its logic, while offering at the same time several practical implications for managers interested in developing an organizational culture based on trust. The article begins with a literature review of more relevant empirical studies analyzing superior-subordinate trust formation and presents some theoretical limitations of the arguments described in these works. Then, it offers a new theorerical approach based on Aristotelian thought to explain the influence of the antecedents of trust in management-subordinate relationships. The theoretical contribution is then confirmed in an empirical study of 163 mid-level managers in Spain.

Section: Discussionmentioning

confidence: 99%

“…: 712). Although both kinds of reasoning will be present in any act of trusting others (Queiroz ), it seems logical that the extent to which they are each present would influence the weight given to the three antecedents of trust described by Mayer et al . ().…”

Section: A New Theoretical Approach For Understanding the Influence Omentioning

confidence: 99%

The influence of ability, benevolence, and integrity in trust between managers and subordinates: the role of ethical reasoning

Nalda

Guillén

Pechuán

2016

“…Framing moral hazard in entrepreneurial terms is far more realistic than assuming mechanical (and morally uninteresting) ‘principals’ and ‘agents’ solving optimization problems, as sometimes happens in the economic theory of the firm (Vranceanu ). In fact, economics in general relies on simplifications and abstractions in order to build theoretical models (Queiroz ). However, starting with entrepreneurship means approaching moral hazard with more human and realistic notions of action and morality.…”

Section: The Moral Heritage Of Moral Hazardmentioning

confidence: 99%

“… Weinman () appears to agree with Pauly that rational behavior and immoral behavior do not intersect. Queiroz () argues economic and ethical rationality can be brought together using an Aristotelian framework.…”

mentioning

confidence: 99%

The morals of moral hazard: a contracts approach

McCaffrey

2016

Although moral hazard is a well-known economic concept, there is a long-standing controversy over its moral implications. The language economists use to describe moral hazard is often value-laden, and implies moral judgments about the persons or actions of economic agents. This in turn leads some to question whether it is actually a scientific concept, or simply a convenient tool for criticizing certain public policies. At present, there is no consensus about the moral meaning of moral hazard, or about whether the concept can be salvaged by economists. As a first step toward resolving this problem, I suggest a contracts approach to moral hazard. I use the 'title-transfer' theory of contract to clarify the moral content of moral hazard, thereby increasing its value to scholars in numerous disciplines. A contracts view is useful for economic policy discussions because it does not include hidden value judgments. At the same time, however, it is also valuable for ethicists because it directly explains a moral dimension of behavior under moral hazard, namely, the violation of property rights.

“…Much of current business ethics research has an underlying aim, a desire to improve business practices in ethical terms (Campbell & Cowton ). However, relationships between economic and ethical dimensions are, to say the least, controversial (Queiroz ). A myriad of factors create tensions in these relationships.…”

Section: Introductionmentioning

confidence: 99%

Autocratic tensions, cronyism, and the opacity of business information: party newspapers and circulation figures during the Francoist dictatorship (1939–1975)

Gago‐Rodríguez

Nickel

2016

Autocracies draw their political power from cronyism and organized repression. The opacity of business information (economic censorship) protects these regimes and their crony firms from any opposition. However, autocracies might also desire to eliminate cronyism (and therefore opacity) because it dampens economic growth. Autocracies survive through repression that engenders tensions, as evident in the Spanish newspaper industry during the Francoist dictatorship. State control over this industry was important because the press disseminated news to the public. From 1939 to 1957, the autocracy institutionalized both cronyism and the opacity of circulation figures to sustain the political powers of Franco and the single party state. Opacity concealed the economic performance of newspapers owned by sole legal party and any distribution of resources in its favor. Franco authorized voluntary disclosure of reliable circulation figures in 1964, after eliminating cronyism in favor of a freer market. Repression guaranteed support for this industry until Franco's death.