Journal of Business Ethics (2011) 100:1–2 Ó Springer 2011 DOI 10.1007/s10551-011-0764-6 Foreword: Pathos for Ethics, Business Michael Aßla¨nder Excellence, Leadership and Quest John Filos for Sustainability Byron Kaldis

Ethos, pathos and logos are classical elements of policy are felt more than ever. Ethical reflection Aristotelian rhetoric. Ethos refers to the personality becomes a foremost duty of responsible manage- or trustworthiness of the speaker who expresses ment. herself with integrity and reputation. Logos refers to Apart from the emotional elements of character the internal consistency of reasoning, whereas pathos (ethos) and, more generally, the Aristotelian treat- is an appeal to (the audience’s) emotion. Although ment of ethical virtues, Aristotle’s other crucial Aristotle believes that argumentation is crucial for element, that of intellectual virtue, namely phronesis, convincing the audience, he sees pathos and ethos as must also be stressed, especially given the current connected elements that if used in a suitable and conditions of financial crisis. It is no accident that appropriate manner, express the credibility of the Aristotle links that part of the intellect concerning speaker. As Aristotle points out, rhetoric and ethics right action with the activities of economics and are interrelated. Pathos, in the classical Greek sense, finance not just once but in several places. Aristotle refers to passion and describes how passionately a laid significant emphasis on the excellence appro- person stands up for his or her personal moral con- priate to good or proper deliberation by means of victions. right reasoning that underlies phronesis. Proper In the organizational context, this kind of pathos deliberation based on logos deals, unlike scientific is an indispensable element of (ethical) leadership knowledge of general principles or of unalterable and a driving force when striving for (business) truths, with the contingent elements or means of an excellence and (organizational) improvements. Pa- action that are alterable. To the extent that recent thos for ethics can influence business life or the way worrisome developments regarding gross malprac- corporations unfold their corporate strategies and tices in the financial sector worldwide cry for the conduct their business. However, during the recent imposition of regulative solutions, one might think economic crisis, it became obvious that ethical pas- that Aristotelian virtue ethics should yield to a sion is missing in many corporations. Not least the deontological type of theories putting forward an crisis was caused by insufficient corporate gover- analysis in terms of obligation and rights. Never- nance, a lack of sustainable CSR policies, wrong theless, far from challenging Aristotelian ethics, the leadership and lacking ethical practice. The crisis has recent malpractices foregrounding gross failure of caused uncertainties for consumers, employees and trust and disrespect for fiduciary values have opened creditors all round the world, has jeopardized the anew discussions regarding the nature of financial savings of pensioners and small investors and even agency and the kind of deliberation it must involve. pension funds. What is more, the financial crisis has The recent turn of events thus recommend even unsettled our erstwhile naı¨ve confidence in national more strongly an Aristotelian approach of agency sovereignty, seeing how whole countries may be based on the exercise of virtuous judgment rather adversely affected. Today, the need for responsible than an ethics based on general principles that need business practice, fair reward policy, stable business only to be applied. Let us recall that Aristotle does relations, job security and sustainable corporate not limit phronesis to simply manipulating means to 2 Michael Aßla¨nder et al. an end, but calls it a kind of correctness in deliber- all colleagues who agreed to serve as reviewers for the ation that seeks or tends towards something good. conference as well as for this issue. We especially Even if well-known theses by some contemporary express our gratitude to the Organizing Committee economists disparaging regulation of financial mar- and our Greek colleagues from Deree College of The kets, and especially of derivatives, and other such American College of Greece for organizing and financial instruments and products churned up hosting this 22nd EBEN annual conference. And last by ‘financial wizzards’, hold true in claiming that but not least, we thank all the participants to the financial speculation and inventing of new such conference who contributed in various workshops instruments have positive social and economic and plenary sessions to this unique event at the consequences, the need for proper deliberation by birthplace of western philosophy. means of right reason on the part of those involved Let us close this short Foreword with an apt and in such practices becomes even more indispensable. quite topical reminder of Montesquieu’s: This special issue of the Journal of Business Ethics presents selected papers from the 22nd Annual The citizens of ancient Greek-poleis, who lived in a Conference of the European Business Ethics Net- political society of government by the people, did not recognize anything other than virtue as the only force work (EBEN) held in Athens from 10th to 12th that could support them. Those of today talk of September 2009. Dedicated to the great works of the nothing but manufacturing, commerce, finance and ancient philosophers the conference bore the title fiscal policy, of riches and luxury. ‘‘Pathos for Ethics, Business Excellence, Leadership and Quest for Sustainability’’ and comprised various Michael Aßla¨nder perspectives on the virtues of business leaders and on International Graduate School Zittau, governance in times of economic turmoil. Zittau, Germany The present special issue starts with the keynote E-mail: [email protected] address of Alejo Sison held in the final plenary ses- sion of the conference that is a tribute to Aristotelian John Filos political philosophy and his definition of citizenship Panteio University, and citizen rights which also might be fruitful for the Athens, Greece recent discussion about corporate citizenship. It is E-mail: jfi[email protected] followed by a series of conceptual and empirical works on corporate responsibility. Next come con- Byron Kaldis tributions addressing questions on organizational School of Humanities, behaviour and corporate governance. Finally, we The Hellenic Open University, present some works on ethical finance and the idea Athens, Greece of micro-insurances. E-mail: [email protected] As guest editors of this special issue, on behalf of the EBEN Executive Committee we would like to thank