The Moral Imagination of Patricia Werhane: a Festschrift Issues in Business Ethics

Eminent Voices in Business Ethics 47

R. Edward Freeman Sergiy Dmytriyev Andrew C. Wicks Editors The Moral Imagination of Patricia Werhane: A Festschrift Issues in Business Ethics

Volume 47

Series Editors Wim Dubbink, Department of Philosophy, School of Humanities, Tilburg University, Netherlands Mollie Painter-Morland, Nottingham Trent University Business School, UK

Consulting Editor Pat Werhane, Director, Institute for Business and Professional Ethics, De Paul University, USA

Former Series Editors Brian Harvey, Henk van Luijk†, Pat Werhane

Editorial Board Andreas Scherer, University of Zurich, Switzerland Campbell Jones, University of Auckland, New Zealand Daryl Koehn, University of St Thomas, Minneapolis-St. Paul, USA Georges Enderle, University of Notre Dame, USA Ghislain Deslandes, ESCP Europe, Paris, France Horst Steinmann, University of Erlangen-Nürnberg, Germany Hiro Umezu, Keio University, Japan Joseph Desjardins, St. John’s University, Minnesota, USA Lu Xiaohe, Shanghai Academy of Social Sciences, P.R. China Pierre Guillet de Monthoux, Copenhagen Business School, Denmark

Eminent Voices in Business Ethics

Series Editors Wim Dubbink, Department of Philosophy, School of Humanities, Tilburg University, Netherlands Mollie Painter-Morland, Nottingham Trent University Business School, UK The Issues in Business Ethics series aims to showcase the work of scholars who critically assess the state of contemporary business ethics theory and practice by means of rigorous philosophical analyses and/ or normative evaluation. The series wants to be an outlet for authors who bring the wealth of philosophical literature to bear on contemporary issues in the global business ethics realm. The series especially welcomes work that addresses the interrelations between the agent, organization and society, thus exploiting the differences and connections between the micro, meso and macro levels of moral and political analysis. The series aims to establish and further the conversation between scholars, experts and practitioners who do not typically have the benefit of each others’ company and as such, it welcomes contributions from various philosophical paradigms, and from a wide array of scholars who are active within in the international business context. Its audience includes scholars and practitioners, as well as senior students, and its subject matter will be relevant to various sectors that have an interest and stake in international business ethics. The scope of the series is therefore broad, but preference will be given to studies that draw on a thorough literature review and other theoretical methodologies, rather than empirical work. Authors from all continents are welcome to submit proposals, though the series does seek to encourage a global discourse of a critical and normative nature. The series insists on rigor from a scholarly perspective, but authors are encouraged to write in a style accessible to a broader audience and to seek out subject matter of practical relevance.

More information about this series at http://www.springer.com/series/11544 R. Edward Freeman • Sergiy Dmytriyev Andrew C. Wicks Editors

The Moral Imagination of Patricia Werhane: A Festschrift Editors R. Edward Freeman Sergiy Dmytriyev Darden School of Business Darden School of Business University of Virginia University of Virginia Charlottesville, VA, USA Charlottesville, VA, USA

Andrew C. Wicks Darden School of Business University of Virginia Charlottesville, VA, USA

ISSN 0925-6733 ISSN 2215-1680 (electronic) Issues in Business Ethics ISBN 978-3-319-74291-5 ISBN 978-3-319-74292-2 (eBook) https://doi.org/10.1007/978-3-319-74292-2

Library of Congress Control Number: 2018935951

© Springer International Publishing AG, part of Springer Nature 2018, corrected publication 2018 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Printed on acid-free paper

This Springer imprint is published by the registered company Springer International Publishing AG part of Springer Nature. The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Contents

1 An Essay to the Festschrift in Honor of Patricia Werhane �� 1 R. Edward Freeman, Sergiy Dmytriyev, Andrew C. Wicks, and James R. Freeland 2 Werhane’s Role in the Development of the Discipline of Business Ethics: A Critical Appreciation �� 9 Richard T. De George 3 Employee Rights, Moral Imagination, and the Struggle with Universal Values: A Quick Overview of Werhane’s Contributions to Ethics in Employment �� 29 Norman E. Bowie 4 Patricia Werhane and Adam Smith, with Side Comments on Aesthetics and Wittgenstein �� 45 Ronald F. Duska 5 Aristotle and Werhane on Moral Imagination �� 59 Edwin M. Hartman 6 Building on Werhane’s Foundation: Toward a Theory of the Morally Imaginative Organization �� 73 Timothy J. Hargrave 7 Ethical Decision Making Surveyed Through the Lens of Moral Imagination �� 95 Mark S. Schwartz and W. Michael Hoffman 8 Trading Zones and Moral Imagination as Ways of Preventing Normalized Deviance �� 121 Michael E. Gorman 9 Weaving the Embodied Fabric of Moral Imagination: Implications for Women in Business �� 133 Mollie Painter-Morland

vii viii Contents

10 Building Bridges: Patricia Werhane, Business Ethics and Health Care �� 143 Sergiy Dmytriyev and Andrew C. Wicks 11 Moral Imagination and the Business of Education �� 165 Carla J. Manno 12 Making Ethics Practical in the Undergraduate Classroom �� 175 Howard Harris 13 Closing Remarks from Patricia Werhane: An Informal Appreciation �� 183 David Bevan 14 Patricia Werhane’s Response to the Works on Her Contributions to Business Ethics and Beyond �� 201 Patricia H. Werhane Erratum �� E1

Appendix 1: Patricia H. Werhane’s Publications �� 217

Appendix 2: Emmy Award-Winning Documentary Television Series Big Questions �� 235 About the Editors and Contributors

Editors

R. Edward Freeman is University Professor, Elis and Signe Olsson Professor, Academic Director of the Institute for Business in Society, and Senior Fellow of the Olsson Center for Applied Ethics at the University of Virginia Darden School of Business. He is best known for his award winning book, Strategic Management: A Stakeholder Approach (Pitman, 1984; and reprinted by Cambridge University Press in 2010). His latest book is Bridging the Values Gap with Ellen Auster published by Barrett Koehler in July 2015. He has received honorary doctorates (Doctor Honoris Causa) from Radboud University Nijmegen, Universidad Pontificia Comillas in Spain, the Hanken School of Economics in Finland and Sherbrooke University in Canada for his work on stakeholder theory and business ethics. Freeman is Co-Editor-in-chief of the Journal of Business Ethics, one of the leading journals in business ethics. He is the author of more than 200 publications in a wide variety of academic and practitioner outlets. At its 2010 annual meeting, the Society for Business Ethics presented Freeman with its “Outstanding Contributions to Scholarship Award” for his stakeholder theory work, to which there has currently been more than 50,000 citations. He is a lifelong student of philosophy, martial arts and the blues. Freeman is a founding member of Red Goat Records (redgoatrecords. com) bringing the joy of original soul and rhythm and blues music into the twenty- first Century.

Sergiy Dmytriyev is pursuing a doctorate in Business Ethics at the University of Virginia Darden School of Business. His research interests include supererogation in organizations, stakeholder engagement, stakeholder responsibility, mindsets toward work, company success, disagreements, and meaning in life. His recent co- authored book is Cambridge Handbook of Research Approaches to Business Ethics and Corporate Responsibility (Cambridge University Press, 2017). He is also the author of several articles and book chapters on stakeholder theory. Prior to working at Darden, Dmytriyev worked for Procter & Gamble, Bain & Company, and

ix x About the Editors and Contributors

Monsanto in Europe. As a management consultant at Bain, he conducted multiple projects on strategy development, company transformation, and organization rede- sign in the financial services, airline, oil and gas, FMCG, and real estate industries.

Andrew C. Wicks is the Ruffin Professor of Business Administration at the University of Virginia Darden School of Business. He is Director of the Olsson Center for Applied Ethics, and Director of the Doctoral Program and Academic Advisor for the Institute for Business in Society. Wicks also serves as an adjunct professor in the Religious Studies department and the Frank Batten School of Leadership and Public Policy at UVA. Wicks is co-author of four books. He has published over 50 articles and his work has appeared in a wide variety of journals in business ethics, management and the humanities. His research interests include stakeholder responsibility, stakeholder theory, trust, health care ethics, total quality management, and ethics and entrepreneurship. He works with MBA students, executives and corporations in the United States and abroad.

Contributors

David Bevan Ph.D (King’s College London) FHEA, has served the faculties of Schools of Management and Business Schools in UK, France, Belgium, Hong Kong and China at which he has developed and taught courses in Business Ethics, Corporate Social Responsibility and Sustainable Business Strategy. David’s research interests focus on reconsiderations of his reading of Continental authors (Levinas, Derrida, Badiou et al.). David and Patricia Werhane have co-authored 12 papers and chapters since 2006, and continue to collaborate.

Norman E. Bowie is Professor Emeritus at the University of Minnesota. He is perhaps best known for bringing the moral philosophy of Immanuel Kant to bear on issues in business ethics. He is co-editor of the text Ethical Theory and Business now in its ninth edition. His most recent book is Business Ethics in the twenty-first Century. He is past president of the Society for Business Ethics and former Executive Secretary of the American Philosophical Association. In 2009 The Society for Business Ethics honored him with an award for lifetime scholarly achievement.

Richard T. De George Distinguished Professor Emeritus at the University of Kansas, is the author of over 200 articles and author or editor of twenty books, including Business Ethics, 7th ed. (2010), Ethics of Information Technology and Business (2003), and Competing With Integrity in International Business (1993). He is past President of the American Philosophical Association; the International Society for Business, Economics and Ethics; the Society for Business Ethics; and the Metaphysical Society of America. About the Editors and Contributors xi

Ronald F. Duska PhD, held the Charles Lamont Post Chair of Ethics and the Professions at The American College from 1996 until July of 2011. The Post Chair supported research and studies of the social responsibilities and ethical challenges facing the financial services industry. He also served as the director of the American College Center for Ethics in the Financial Services and organized The Mitchell Forum, which sponsors a yearly forum on ethical leadership that brings together prominent chief executives from financial services companies with internationally prominent business ethicists, for ten years. He is currently engaged in business ethics consulting, speaking engagements, delivering workshops, and developing and presenting continuing education programs. He is a recognized expert in ethics in financial planning.

James R. Freeland is Sponsors Professor of Business at the University of Virginia’s Darden Graduate School. From 1993 to 2012 he served as Senior Associate Dean for Faculty and Research. Major accomplishments during this time include hiring over 61 new faculty, increasing the diversity of the Darden faculty substantially, maintaining Darden’s strong reputation for teaching, and significantly increasing research productivity. He received a BSIE from Bradley University and MSIE and PhD from Georgia Tech. Before joining Darden he was on the Stanford Business School faculty. He is the author of numerous technical and managerial papers in operations and management science. His most recent research project looks at the role of business in economic inequality.

Michael E. Gorman President of the International Society for Psychology of Science and Technology. He is a Professor in the School of Engineering & Applied Science at the University of Virginia, where he teaches courses on ethics, invention, psychology of science and communication. Currently he is Director of the Science, Technology & Society program in the Department of Engineering & Society. His current research is in the kind of interdisciplinary trading zones that will be needed for scientists, engineers and other stakeholders to collaborate on the development of new technologies.

Timothy J. Hargrave is Assistant Professor in the College of Business at Central Washington University. He teaches and does research in the areas of strategic management, knowledge management and innovation, sustainable business, and business ethics. His specific research interests include the emergence and growth of green industries, the management of contradictions in organizations, and moral imagination. Dr. Hargrave’s research has been published in Academy of Management Review, Academy of Management Journal, Organization Science, Business Ethics Quarterly, and elsewhere. Prior to coming to academe, Dr. Hargrave worked in Washington D.C. on global climate change policy. He earned his Ph.D. in Strategic Management and Organization from the University of Minnesota’s Carlson School of Management. He also holds an MBA and a master’s degree in Energy and Resources from the University of California at Berkeley. xii About the Editors and Contributors

Howard Harris obtained his PhD in applied philosophy at the University of South Australia after a career in industry. He first met Patricia Werhane while attending conferences in the United States. Howard served as President of the Australian Association for Professional and Applied Ethics and taught applied ethics in Adelaide, in Singapore, Hong Kong and Kuala Lumpur. He is now an Adjunct Associate Professor in the School of Management at UniSA. His particular interest is in the relevance of traditional virtues such as courage and love in contemporary management. His first degree was in chemical engineering and he was founding Director of Smartlink, Australia’s National Institute for Manufacturing Management.

Edwin M. Hartman taught at the Stern School of New York University, the business school and the philosophy department at Rutgers, and the philosophy department at the University of Pennsylvania. He was also a management consultant. He has authored many articles and four books. The latest, Virtue in Business: Conversations with Aristotle, was published in 2013 by Cambridge University Press. In 2015 he received a lifetime achievement award for scholarship from the Society for Business Ethics.

W. Michael Hoffman is the founding Executive Director of the Hoffman Center for Business Ethics, and the Hieken Professor of Business and Professional Ethics at Bentley University. He has published 16 books and over 100 journal articles, and consulted for numerous organizations. He has lifetime achievement awards from SCCE, ECOA, SBE, CEEMAN, and Bentley University, and was named the 2007 Humanist of the Year by the Ethical Society of Boston.

Carla J. Manno currently with the Olsson Center for Applied Ethics at the University of Virginia’s Darden School of Business, has worked in education for 25 years. She has served as a professor, school administrator, teacher, and consultant in both the US and overseas. She holds a PhD from UVA’s Curry School of Education, and an MBA from Darden. Her research and practice interests currently focus on the intersection of education and business, and many related topics.

Mollie Painter-Morland is Professor of Ethics and Organization at Nottingham Business School, where she leads the Responsible and Sustainable Business Lab. She is also the part-time Coca-Cola Chair of Sustainability at IEDC-Bled Business School in Slovenia. She has been active in the business and professional ethics field since 2001, playing leadership roles in various business ethics and sustainability centers and NGOs in South Africa, the USA, Belgium, Slovenia and the UK. She is also the Africa Director of the Academy of Business in Society (ABIS), leading a project on Leadership Development for Responsible and Sustainable Business in Africa. She has published multiple research papers in highly ranked journals on business ethics, leadership, accountability and responsible management education. She is the author or co-editor of 5 books, amongst which Business Ethics and Continental Philosophy, with Rene ten Bos (Cambridge University Press, 2011). About the Editors and Contributors xiii

Mark S. Schwartz is Associate Professor of Business Ethics at York University’s School of Administrative Studies in Toronto, Canada. Dr. Schwartz received his JD from Osgoode Hall Law School at York University and his MBA and PhD special- izing in business ethics from the Schulich School of Business at York University. Dr. Schwartz is an award winning teacher and researcher. Dr. Schwartz has published in several leading journals including the Journal of Business Ethics, Business Ethics Quarterly, and Business & Society.

Patricia H. Werhane is the Wicklander Chair Emerita at DePaul University and Ruffin Professor Emerita at the University of Virginia. Werhane is founding editor of Business Ethics Quarterly, a Rockefeller Fellow at Dartmouth, Visiting Professor at the University of Cambridge, and Erskine Visiting Fellow at the University of Canterbury. In 2008 she was listed as one of the 100 most influential people in business ethics by Ethisphere Magazine. Professor Werhane is the author or editor of over twenty-five books, includingMoral Imagination and Management Decision- Making, and over 100 articles and book chapters. She is also the co-producer of an Emmy award-winning documentary series, Big Questions.

The original version of this chapter was revised. The book was inadvertently published with multiple authors in the reference in chapter 14. An erratum to this chapter can be found at https://doi.org/10.1007/978-3-319-74292-2_15 Chapter 1 An Essay to the Festschrift in Honor of Patricia Werhane

R. Edward Freeman, Sergiy Dmytriyev, Andrew C. Wicks, and James R. Freeland

About Patricia H. Werhane as a Scholar and as a Person

Patricia Werhane is one of the most distinguished figures in the field of business ethics. She was a founder of the field, she is one of its leading scholars, and she has had a profound impact on the world of business practice. Among her many accomplishments, Pat is known for her original work on moral imagination, she is an acclaimed authority on employee rights in the workplace, and she is one of the leading scholars on Adam Smith. Having been active in Academia for over 50 years, Werhane is a prolific author of over a hundred articles and book chapters, and the author or editor of twenty-seven books, including Adam Smith and his Legacy for Modern Capitalism, Moral Imagination and Management Decision-Making, and co-authored books Organization Ethics in Health Care, Alleviating Poverty Through Profitable Partnerships, Obstacles to Ethical Decision-Making, Corporate Responsibility: The American Experience, and Research Approaches to Business Ethics and Corporate Responsibility. In addition to her impressive scholarly contributions, Pat will be long remem- bered for her contributions in building the field of business ethics. She is a founding member and a past president of the Society of Business Ethics (SBE) – she was part of a small group of insightful academics who saw the potential and great value of creating a distinct field called business ethics. In addition to her role in creating and leading SBE, Pat was the founding editor of Business Ethics Quarterly (BEQ). She helped establish BEQ as one of the premier outlets for business ethics research, she used her role to help develop quality research in the field, and she used the platform of editor to raise the profile of business ethics within academia. In addition, Pat is

R. Edward Freeman (*) · S. Dmytriyev · A. C. Wicks · J. R. Freeland Darden School of Business, University of Virginia, Charlottesville, VA, USA e-mail: [email protected]; [email protected]; [email protected]; [email protected]

© Springer International Publishing AG, part of Springer Nature 2018 1 R. E. Freeman et al. (eds.), The Moral Imagination of Patricia Werhane: A Festschrift, Issues in Business Ethics 47, https://doi.org/10.1007/978-3-319-74292-2_1 2 R. Edward Freeman et al. the past president of the American Society for Value Inquiry, past president of the International Society for Business, Economics and Ethics, and served in the executive committee of the Association for Practical and Professional Ethics. Patricia Werhane was listed as one of the 100 most influential people in business ethics by Ethisphere Magazine. Patricia Werhane has also had a substantial impact on the institutions where she has worked. Werhane was originally hired at Loyola after a Ph.D. at Northwestern on Wittgenstein. She agreed to develop a course on business ethics, along with her colleague Thomas Donaldson. Loyola consequently became one of the leading sources of thinking and teaching about business ethics. In 1993, Werhane moved to the University of Virginia Darden School of Business where she worked tirelessly on institutional issues, service to the School and University, as well as scholarship and service to the broader field of business ethics. She made indelible contributions to the Darden School and the University of Virginia over the 16 years she was a full time member of the faculty. We were fortunate to attract her to Darden. In our hiring and appointment process we communicated with many of the leading scholars in business ethics over the world and she was held in the highest regard by everyone. She served in critical leadership positions within the Darden School, within the University of Virginia, within her profession, and within her community. Upon joining Darden she was awarded the Ruffin Chair in Business Ethics that is only awarded to eminent scholars. While at Darden, she served as co-director of the Olsson Center for Applied Ethics, and she continues today as Senior Fellow at the Center. Over the years, Werhane contributed to the Darden community in many significant ways: she served as Area Coordinator of Strategy, Entrepreneurship, and Ethics, Director of the Ph.D. Program, Course Head for the required first year MBA Ethics course, and head of the Equity Council. At Darden, she worked intensively with MBA and doctoral students. She was responsible for the development of at least three different elective courses. Werhane often held classes at her house and met with students outside of the typical classroom. She was active with a number of student organizations including GWIB (Graduate Women in Business) and the Health Care Club. Pat was instrumental in starting the Ph.D. program for business ethics at Darden. Upon her hiring, Pat realized there were few opportunities for doctoral students to receive training to prepare them to contribute to the field. With Ed Freeman and an array of other faculty at Darden, Pat saw the potential to attract, educate and mentor the next generation of thought leaders in the field of business ethics. Starting in the early 1990’s, the Darden Ph.D. program has produced numerous scholars who are now among the most prolific and influential members of the field. Even after she left Darden, Pat has remained an important part of the program as an advocate and mentor. Beyond the bounds of the Darden program, Pat has also been a strong supporter of doctoral students and emerging scholars – particularly through organizing special programs that are part of the SBE annual meeting designed specifically for them. An important contribution that Patricia Werhane made was in the search, hiring, and mentoring of women faculty at Darden. She was a great role model for women. When Pat joined the faculty we had four women faculty members out of a faculty of 1 An Essay to the Festschrift in Honor of Patricia Werhane 3

49. None of these were tenured at the time. When she left in 2009 we had 13 women faculty out of a faculty of 66, and six were tenured at the time (ultimately three more got tenure). Over her time at Darden the School actually hired 19 women (nine left for various reasons) out of 52 total professorial faculty hired. Without her support and work this would not have been possible. Much of this important work occurred behind the scenes. Werhane was also active in working with the staff at Darden. She served as Ombudsperson for several years and dealt with a number of delicate issues. Staff members often sought her advice and guidance. She was a wonderful mediator and counselor for the entire Darden community. Within the University Werhane served as Chairperson of the Faculty Senate and worked on many projects and relation- ships with other schools including medicine, education, engineering, and the College of Arts and Sciences. From Darden, Pat moved to a position with DePaul University to run its business ethics center, and to take over the journal, Business and Professional Ethics. While at DePaul, Pat discovered another passion - film making. She has worked with world class documentarians to produce an award winning series, BIG QUESTIONS, aired on Chicago Public Television that focuses on how people are working to eliminate poverty and misery around the world. Beyond her professional accomplishments, Pat is a truly kind and decent person who goes out of her way to serve others and build community. Her generosity and hospitality are legendary. She never met a stranger and she finds ways to make people from all walks of life feel welcome. Pat has hosted scores of parties and welcomed countless visitors into her home simply as an expression of her kindness. It is hard to meet Pat and not feel like she is someone you have known for a very long time and that she cares about you. This warmth and compassion extends to professional settings. Pat is a great storyteller, has a brilliant sense of humor, and finds a way to make people welcome her comments, even when she is explaining the seven reasons why their argument is fatally flawed. In an academic context that can feel stuffy and impersonal, Pat has infused humanity, personality, and community in virtually everything she has done.

About the Festschrift

In April 2016, The University of Virginia Darden School of Business hosted a 3-day conference with about 100 management scholars from around the US and abroad to celebrate the extensive and influential work of Patricia Werhane, an iconic figure in the field of business ethics. Continuing the celebration of Werhane’s remarkable legacy, we are happy to present for readers this book – the festschrift in honor of Patricia Werhane. The volume, written as a collection of academic articles devoted to analyzing Werhane’s most influential ideas, is unique in several ways. First, the book com- prises only new works that are written particularly for the purpose of contributing to 4 R. Edward Freeman et al.

Werhane’s festschrift. A number of well-known business ethicists had a critical look at Werhane’s impressive legacy in business ethics as well as outside of the field and built on the important theoretical foundations laid by Werhane to advance her influential ideas further. Second, the collection of scholarly contributions provides a balanced overview of Pat Werhane’s major works over her career which is worth reading in itself. Third, the volume includes Werhane’s own reflections and responses to the works included in the festschrift which makes the reading of the book especially engaging. With contributions from seventeen authors, the volume provides the diversity of voices and the variety of perspectives on Werhane’s work. The style of the chapters differs across the festschrift – while many chapters are written as a scientific paper contribution, some others are written in a less scholarly, more colloquial form. We, as the book editors, see this heterogeneity in voices and perspectives as a festschrift’s strength that makes it especially interesting. As such, seeing value in the presence of different styles of analyzing Werhane’s heritage, we on purpose tried to preserve non-homogenized approaches to the festschrift contributions among the authors. The body of Werhane’s works over her career as a scholar is broad in scope and diverse in content. At the same time, there are a number of common themes running through her works, which is reflected in the contributions to the festschrift. The reader may find it helpful to know that the first part of the volume (Chapters2 , 3, 4, 5, 6, 7, 8, and 9) focuses more on Werhane’s contributions to business ethics. In this part, the authors cover Werhane’s works in such areas as Moral Imagination, the Legacy of Adam Smith, Employee Rights, Women in Business, as well as Werhane’s essential role in the development of the field of business ethics. All these topics, intertwined in Werhane’s works, are at the very center of business ethics academic and practitioner discussions. The second part of the book (Chapters 10, 11, 12, and 13), focuses more on Werhane’s contributions beyond the field of business ethics such as Health Care, Education, Teaching, and Philosophy. The final section (Chapter 14) consists of Werhane’s reflections and responses to the volume chapters written by well-known business ethicists. In what follows, we provide more details on what the reader can expect from each chapter. Chapter 2 delineates Werhane’s important and lasting impact on the academic field of business ethics. Here, Richard De George thoroughly describes the four steps undertaken by Werhane that were essential to the field: Werhane’s work on one of the first anthologies in business ethics, her leadership roles in the Society for Business Ethics, especially in developing young scholars, her dedication to founding and running the Business Ethics Quarterly journal, and her own influential scholarship in business ethics. Then, De George analyzes Werhane’s work on moral imagination, mental models and systems thinking, and notes her approach to writ- ing on normative ethics without moralizing. While deeply appreciating Werhane’s work, De George also provides his critical analysis of Werhane’s scholarship on these topics and argues that Werhane did not go far enough in some areas while she went too far in some others. De George also shares his thoughts on bridging Werhane’s work with major moral theories. 1 An Essay to the Festschrift in Honor of Patricia Werhane 5

In Chapter 3, Norman Bowie takes note of Werhane’s contributions to several areas in employment literature and then traces the evolution of Patricia Werhane’s theory of employee rights. Bowie argues that Werhane moved away from the traditional human rights view (i.e. a universal account of employee rights) to a socially constructed view of employee rights. By analyzing the progression of Werhane’s theory of employee rights, Bowie concludes that Werhane ended up with a less robust view of human rights compared to her initial work on a theory of human rights. Bowie argues that if she would adopt the work of Amartya Sen and, especially, Martha Nussbaum’s human capabilities approach, Werhane could bridge her work on employee rights with a universal account of human rights and have ample space for exercising moral imagination. Chapter 4 recognizes Werhane’s leadership in business ethics by exemplifying her contribution to the understanding of Adam Smith. In this chapter, Ronald Duska examines Werhane’s influential work on challenging misbeliefs about Adam Smith’s legacy for contemporary business. Duska shows appreciation for Werhane’s work where she demonstrated that self-interest, according to Smith, is constrained by justice. Further, Duska outlines the similarities that he found between Werhane’s account of Smith’s self-interest and a “true” egoism described by Aristotle. This argument, coupled with some other insights on Werhane’s work, allowed Duska to argue that Werhane, as well as Smith, are more Aristotelean than Werhane might have initially thought. Chapter 5 continues examining Werhane’s work from an Aristotelean perspective, but looks at a different body of Werhane’s scholarship. Edwin Hartman analyzes Werhane’s moral imagination and finds some similarities with Aristotle’s ‘perception’ – the enabling faculty for identifying the essence of the situation. By the same token, a failure of moral imagination, explored in Werhane’s works, could be explained by Aristotle as applying the wrong principle to a situation causing its misperception among the involved parties. Hartman also looks at some of the issues with financialization and property rights to illustrate the relevance of applying Werhane’s moral imagination, and argues that Aristotle would probably agree with the approach taken by Werhane to address these issues. Werhane’s moral imagination continues to be the central theme of the next section of the festschrift, Chapter 6, where Timothy Hargrave explores it through the lens of knowledge-creating companies. The author first provides an overview of the impact of Werhane’s moral imagination scholarship on the field of business ethics and beyond. Then, Hargrave offers a theoretical extension by developing the concept of the morally imaginative organization. His new prescriptive model of organizational moral imagination – where moral imagination is embedded in the organizational knowledge spiral – integrates elements from both Werhane’s moral imagination and Nonaka’s theory of the knowledge-creating company. Hargrave’s normative model of morally imaginative organization involves all organizational actors and aims to become an integral part of the organization’s knowledge-creating processes. To honor Werhane’s rich legacy, the author calls for further research at the intersection of business ethics and social science to explore ways of creating more morally imaginative organizations. 6 R. Edward Freeman et al.

Chapter 7 also extensively builds on Werhane’s work on moral imagination but Mark Schwartz and Michael Hoffman look at it through the prism of ethical decision making. The authors argue that Werhane’s discussion of moral imagination provided the key theoretical bridge between moral imagination and ethical decision making. Building on Werhane’s work, Schwartz and Hoffman attempt to integrate moral imagination with new theoretical developments in the field of business ethics. They explore the origins of the moral imagination concept and its application in empirical research, and then review the construct of moral imagination at each stage of ethical decision making: awareness, judgment, intention, and behavior. The authors also analyze immoral imagination and how the lack of moral imagination is explained in behavioral ethics. The chapter ends with potential future research directions on moral imagination, as well as its teaching and managerial implications. While immoral imagination was only partially discussed in the previous chapter, Chapter 8 is entirely devoted to a somewhat similar concept – normalized deviance. The latter takes place when an organization adopts dysfunctional norms with respect to ethics or safety. Michael Gorman argues that Werhane’s work on moral imagination can enable the members of such organizations to see their dysfunctional beliefs (where even well-established standard operating procedures can be dysfunctional) as mental models; this can open the possibility for developing better norms and practices in their organizations. In an attempt to advance Werhane’s work on moral imagination, the author introduces the term ‘trading zone’ borrowed from anthro- pology. Even if it is hard to switch to a better mental model as people may not be ready for accepting another organizational culture, they can try to ‘trade’ their mental models with others, and this trading can lead to an improved work climate in the organization. The author also provides his suggestions for future research in this area. Finally, being a professor at an engineering school, Gorman shares his experience of teaching business ethics, including moral imagination, to engineering students. Chapter 9 takes another twist on Werhane’s scholarship. Mollie Painter-Morland examines Werhane’s work in the area of women in business. The author outlines the main themes on women in business discussed by Werhane, and her key contributions to the corresponding scholarly literature. Painter-Morland argues that Werhane’s work on women in business is especially promising if it is placed within the context of Werhane’s own professional practice and her broader work on mental models, moral imagination and systems thinking. The author also identifies some unresolved tensions in Werhane’s work and suggests that we might need to re- conceptualize gendered notions such as ‘vision’ and ‘emotion’. Painter-Morland shares her thoughts on the need for further research to further advance Werhane’s ideas and to address the remaining tensions in her work. The author ends the chapter with the suggestion that Werhane’s own professional life itself can provide rich insights for a better understanding of women’s leadership. Chapter 10 marks a transition of the festschrift focus from exploring Werhane’s contributions to business ethics scholarship to examining Werhane’s work beyond the field of business ethics. Sergiy Dmytriyev and Andrew C. Wicks analyze 1 An Essay to the Festschrift in Honor of Patricia Werhane 7

Werhane’s extensive research on health care and identify five main themes that cut across her work: identifying and challenging misconceptions about business in health care; adopting a stakeholder approach to health care; theorizing about health care as a complex adaptive system; applying systems thinking to health care using mental models and moral imagination; and elaborating on intellectual property rights (particularly compared to the rights to survival). While noting Werhane’s substantial contributions to health care, the authors identify opportunities to enrich her work, especially in applying business ethics to health care organizations. Further, Dmytriyev and Wicks explore whether Werhane’s work on health care could provide a framework that could be used by scholars trying to connect insights from business ethics to other fields. The authors identify four stages along Werhane’s work on health care which could serve as a model for extending business ethics theories to other fields. Chapter 11 explores a potential application of Werhane’s scholarship on yet another field outside of business ethics – education. Carla Manno considers K-12 education in the United States and argues that, due to a natural fit, education is a ripe ground for adopting Werhane’s work on moral imagination. The author looks at the application of moral imagination ideas at three cascading and interdependent levels: at the individual leadership development level, at the larger management of education level, and at the broader policy development level. Manno also elaborates on the potential future implications of integrating moral imagination into K-12 education. Chapter 12 continues in the path of exploring the impact of Werhane’s work on education, but differently from the previous chapter that looked at K-12 education in the United States, Howard Harris focuses his analysis on the undergraduate class- rooms in business schools in Australia and Asia. The author demonstrates the relevance of Werhane’s work for business students and shows how her positive, influential work has contributed to making business ethics something more than (dry, academic) philosophy, but very relevant in business and life. Harris draws examples from his experience of teaching undergraduate business and professional ethics classes. The author outlines the specific contributions of Werhane’s work to the teaching of business ethics in the undergraduate classroom that are threefold: through many concepts (that draw from moral imagination and action), resources (Werhane’s textbooks and individual articles), and pedagogy (Werhane’s talks at conferences and on new media). Chapter 13 steers the festschrift focus back to the three-day conference held in April 2016 where about a hundred business ethicists celebrated the rich legacy of Patricia Werhane. David Bevan attempts to summarise Werhane’s performance at the conference and offer some insights into the light-handed carefulness that char- acterizes the continuing project of her work and practice in the field of business ethics. The author explores some possible origins and symbolic significance of the summary of Werhane’s work presented at the conference by herself (e.g., a text box containing the words “the linguistic turn”; distinct areas of Werhane’s interest, including her ongoing work; an animated graphic of an endless pile of turtles, one on top of the next). Bevan tries to find a clue to such questions as “How might this 8 R. Edward Freeman et al. linguistic turn, that Werhane has identified for us as a unifying thread, arise?” and “What may we understand of its significance among her otherwise eclectic interests?” The last section of the volume, Chapter 14, is written by Patricia Werhane herself in the form of reflections and responses to each and every contribution made to this festschrift. Werhane’s responses to the authors reveal who Pat really is – a great scholar with a humble character. In her reflections on the contributions to the book, she does not talk much about all the positive words on her works (which most authors in this volume use in their analysis of Pat’s works), instead she mainly focuses on the critique, a large part of which she modestly and respectfully admits. Since hearing a hundred times is not as good as seeing once, we finish the festschrift with the summary of all the publications written by Werhane throughout her career (Appendix 1). This extensive list provides a good understanding of how prolific Patricia Werhane has been as well as how many people have repeatedly enjoyed working together with her. The list of publications is followed by a detailed description of Werhane’s recent passion – the project that she has been devoting a lot of her attention to in the recent years (Appendix 2) – the documentary TV series Big Questions.

* * *

As a final touch, before we move to the articles written in Werhane’s honor, we would like to mention that Patricia Werhane has had an extremely energetic lifestyle for the last 50 years, which resulted not only in numerous great achievements throughout her life, but also in helping many others around her in Academia and beyond. Working next to Pat has always been a pleasure because you know that no matter what, you can rely on her wisdom, wit, and understanding. The joint journey with this incredible person and scholar has always been and will be challenging, never boring, and rewarding! Chapter 2 Werhane’s Role in the Development of the Discipline of Business Ethics: A Critical Appreciation

Richard T. De George

It would be difficult to exaggerate the importance of Patricia Werhane’s contributions to the field of business ethics as an academic discipline. It has been has been enormous and far reaching, as a glance at her curriculum vitae attests. She has written or edited, singly or with others, 27 books in the field; she has written or co- authored 77 articles, 69 book chapters, and 74 case studies; and she has given 241 lectures or presentations. She was one of the founders and first officers of the Society for Business Ethics, one of the founders and the first Editor-in-Chief of the Business Ethics Quarterly, President of the International Society for Business, Economics and Ethics, and has received numerous honors and awards. Some scholars labor on the plains. They are excellent at seeing the small details in their work, and their view is keen but limited. Others, mountain people, climb to the summit and gaze freely out onto the totality within their broad purview. Pat has toiled both on the plains and on the summit. I shall not comment on her work on the plains, for others in this volume discuss specific aspects of her work. Rather I shall present and comment on three aspects of her influence that I think are central: her contributions to defining the field; the importance of her emphasis on moral imagination, mental models, and systems thinking; and her methodology in developing a distinctive view of business ethics. In each case I take the liberty of going beyond what I find explicitly in her work to what I find implicitly—the latter sometimes being more important than the former.

R. T. De George (*) University of Kansas, Lawrence, KS, USA e-mail: [email protected]

© Springer International Publishing AG, part of Springer Nature 2018 9 R. E. Freeman et al. (eds.), The Moral Imagination of Patricia Werhane: A Festschrift, Issues in Business Ethics 47, https://doi.org/10.1007/978-3-319-74292-2_2 10 R. T. De George

Defining the Field

Professor Werhane was one of the founders of the field of academic business ethics. What she did in the early years came to help define the field for a large number of those who followed after her. She cleared a path where there was none, and others followed. If one goes back to when Pat entered the general area of business ethics, there was no academic field of business ethics. There was, of course, what I have called ethics in business,1 that is, people--both business people and academics— made moral evaluations of and in business. There was also the academic field of social issues in management. When she was asked as an assistant professor at Loyola University to teach a course on ethical issues in business, there were no textbooks in the area. She had to decide what to teach, how to teach the subject, and what material to use. Her then-colleague at Loyola, Thomas Donaldson, was in the same boat, and they combined forces. The result of that effort emerged in print as one of the first anthologies in business ethics: Ethical Issues in Business: A Philosophical Approach (1979). This is the first of four steps in defining the field. 1. As the title of the book indicates, the Donaldson-Werhane anthology took a philosophical approach to ethical issues in business. The emphasis on a philosophical approach was in part what distinguished business ethics, as the field became known, from social issues in management, which was taught in business schools, and which took primarily a social sciences approach to social issues. Initially business ethics was taught primarily in philosophy departments. The text was at least apparently aimed at philosophy professors teaching the course. They could be pre- sumed to know ethical theory and did not have to be told what it was or how to do an ethical analysis. They would also be familiar with many of the writings in the text—pieces by Hobbes, Butler, Smith, Marx, Locke, Rawls, and various contemporary philosophers. Since there was no field of business ethics at the time, the editors took the best writings they could find on ethical issues in business. The writings by non-philosophers were typically written from the viewpoint of conventional moral- ity. The book was divided into three parts: “Philosophical Issues in Business Ethics”, “Economics, Values and Justice,” and “Rights, Liability and the State”. Each part was further broken down into specific topics. The text thus provided the scaffolding for a course in business ethics. One could argue about the specific divisions, and what was included and omitted. But its importance was in showing that there was a set of related ethical issues in business that formed a rough sort of a whole. From the start the text included cases, since the case-study method was dominant in schools of business. The text became one of the sources that other teachers who entered the field used to teach themselves what business ethics was. Many of the early papers submitted to business ethics meetings or conferences referenced the articles col- lected in that text (and its competitor by Beauchamp and Bowie (1979)), as if those

1 See my article, De George (2006) for a description of what I identify as the three components of business ethics: Ethics in Business, Business Ethics as an Academic Field, and Business Ethics as a Movement. 2 Werhane’s Role in the Development of the Discipline of Business Ethics: A Critical… 11 were the only writings in the area. It was a while before a new body of literature in the field emerged, and the early texts came in fact to define the field. As the market began to switch from courses taught in philosophy departments to courses taught in business schools, the assumption that the teachers would know ethical theory became doubtful, and in later editions of Ethical Issues in Business, Werhane and Donaldson introduced a brief presentation of ethical theory and ethical argumentation in their “Introduction to Ethical Reasoning”. An unintended con- sequence was that teachers and authors who relied primarily on this and similar texts for their philosophical approach to ethical reasoning suffered from the syn- drome of “a little knowledge is a dangerous thing.” They did analyses from a utilitarian or a deontological point of view (or less frequently from an Aristotelian point of view) that failed to show command of the nuances of those approaches, and they frequently contrasted approaches from the two points of view as if one could take one’s choice of method in ethical analysis and reach the conclusion one wanted on either side of an issue. The 7th edition (2002) included a chapter on the Kantian approach to ethics and one on the Aristotelian approach. The 8th edition (2008) added a chapter on the utilitarian approach and another on the approach of pragma- tism. The question of what to do with the four approaches remained up to the teacher or student. It is not clear what Professor Werhane’s view on that matter is, but the anthology did not fall into the trap of countering each article with its antithesis. Yet many divergent voices were presented, and some students and perhaps their teachers, could and did take away the feeling, if not the belief, that if one were smart enough one could justify whatever position he or she wanted. The critical task of evaluating the variety of arguments presented and of forming a coherent approach from the diversity presented remained the task—often unfulfilled—of the students or teacher. These deficiencies could not be remedied by changing the contents of the anthology, although Werhane and Donaldson did make changes with each new edition, making it more inclusive and introducing the new material in business ethics as it appeared in conferences and in print. By the eighth edition the book had a different feel. There were more case studies, fewer articles from the classical philosophers, and five parts to reflect the field as it had developed. The book now had a coherent structure and was not simply a collection of ethical issues in business. It wasn’t comprehensive or exhaustive in its coverage, but it did not pretend to be and by its nature could not be. Professor Werhane, however, took other means to help remedy the obstacles posed by the limitations of an anthology. 2. A field is not defined simply by having textbooks and having teachers teach courses with the title of business ethics or moral issues in business, or the like. Initially those who started working in what was to become an academic field worked pretty much in isolation, with one or two people at any given college or university. The start of the Society for Business Ethics offered a professional venue where those isolated individuals could come together, share their experiences, discuss new issues and approaches, and begin to function as a distinct group. Defining the field required imagination. The initial work consisted of seeing business through a moral lens, from a moral point of view, from the point of view of consumers and workers 12 R. T. De George as well as of managers, and from a variety of perspectives rather than simply those adopted by business and generally accepted by the general population. That meant challenging the view that “business is business” meant acceptance of the way business operated, as if it operated according to laws of nature which are to be adapted to and not changed. The Society for Business Ethics was started by a small group of philosophers in 1980.2 It is no coincidence that the Society, which initially met together with the American Philosophical Association at the December meeting of the Association’s Eastern Division, was initially run from Loyola University. Professor Werhane was the one who ran the operation in her capacity as the equivalent of secretary-treasurer (the Society initially had no designated officers). The existence of the Society started to give the field an identity and its meetings provided an outlet for papers. In addition, Werhane and Donaldson ran an annual conference in Chicago on business ethics. The organizers of the meeting chose the general topic, invited key speakers, and initially vetted the summited papers. So once again they had a hand in helping define the field as a field. A challenge from the start of the field was how to encourage younger scholars and graduate students to choose the field as their area of specialization. Professor Werhane was especially acutely attuned to the need for graduate students to have a forum of colleagues with similar interests, and she spearheaded the Emerging Scholars program as an integral part of the Society. Just as faculty members were often isolated in their institutions, so were graduate students. The Society, through its Emerging Scholars program, not only gave them a forum and venue to meet faculty and students from other institutions with similar interests, but also provided students with helpful comments, questions and suggestions on their theses or other research interests from those with more experience and knowledge in the field. 3. The next step was a journal. Those who started publishing articles in business ethics found the number of outlets amenable to their work was minimal. To become an accepted field those in it had to produce contributions of high quality; and to get promoted, assistant professors had to publish in prestigious journals. In truth, many of the early papers written for submission were not of high quality, which is not surprising for a fledgling field in the process of defining itself. What was needed, although probably not articulated as such, was a high quality, highly visible academic journal. Werhane was instrumental in founding the Society’s journal, the Business Ethics Quarterly, and served as its first Editor-in-Chief. The first issue of the Business Ethics Quarterly appeared in January 1991. As its first Editor in Chief she made a lasting impact on the journal. She helped set its parameters and set and enforced its academic standards through its editorial process. From the start the journal was not only a publishing outlet, but a center of learning. The journal expected its editorial reviewers not only to require high quality in papers they recommended for publication but also to write detailed comments that would help authors whose papers were rejected or recommended for revision- and-resubmission to redo their papers. The point was to help those newer to the field

2 For a fuller description of Werhane’s part in the start of the Society see De George (2005).