This article develops a liberal theory of the virtues in business. I first articulate two key liberal values embodied within market society: self-authorship and mutual benefit. Self-authorship is a mode of autonomy given expression through the effective exercise of economic liberties. Mutual benefit involves the intentional pursuit of the well-being of one’s transaction partners within economic exchange. These values are uniquely realized, I argue, within business, conceptualized as a distinct, firm-level, social practice. More specifically, individuals realize self-authorship by purposively integrating cospecialized resources, forms of knowledge, and business functions to facilitate mutually beneficial transactions. Through their commitment to mutual benefit, businesspersons establish ongoing, cooperative relationships with customers, members of other firms, and various stakeholders more generally. These relationships are constitutive of a distinct liberal notion of the common good. The practice of business and the common good in a market society are sustained by a range of individual-level virtues. I recount these virtues and, before concluding, discuss several other theoretical implications of this account.

The existing literature provides conflicting evidence of whether a collectivistic value orientation is associated with ethical or unethical behavior. To address this confusion, we integrate collectivism theory and research with prior work on social identity, moral boundedness, group morality, and moral identity to develop a model of the double-edged effects of collectivism on employee conduct. We argue that collectivism is morally bounded depending on who the other is, and thus it inhibits employees’ motivation to engage in unethical pro-self behavior, yet strengthens their motivation to engage in unethical pro-organization behavior. We further predict that these effects are mediated by the psychological mechanism of organizational goal commitment and moderated by a person’s strength of moral identity. Results of three studies conducted in China and the United States and involving both field and experimental data offer strong support for our hypotheses. Theoretical and practical implications of the research are discussed.

Deferred prosecution agreements (DPAs) are legal means, alternative to trial, for the resolution of criminal business cases. Although DPAs are increasingly used in the US and are spreading to other jurisdictions, the ethics of DPAs has hardly been subjected to critical scrutiny. We use a multidisciplinary approach straddling the line between philosophy and law to examine the ethics of DPAs used to resolve cases of multinational enterprises’ (MNEs) foreign corruption. Deontologically, we argue that the normativity of DPAs raises critical concerns related to the notion of justice as punishment, with serious cases of international corruption resolved with minimal retribution for offending MNEs. Taking a utilitarian ethical perspective, we also evaluate the effect of DPAs on MNEs’ tendency to self-regulate or re-offend. Our conclusion, supported by critical analysis of the juridical literature and case evidence on MNEs’ recidivism, is that DPAs do not foster ethical behavior.

Drawing on early work on ethical leadership, we argue that when leaders engage in leader moral hypocrisy (i.e., ethical promotion without ethical demonstration), followers can experience psychological reactance—a negative response to a perceived restriction of freedom—which can have negative downstream consequences. In a survey of employee–manager dyads (study 1), we demonstrate that leader moral hypocrisy is positively associated with follower psychological reactance, which increases follower deviance. In two subsequent laboratory experiments, we find similar patterns of results (study 2) and explore potential alternative mechanisms (study 3). We demonstrate in a final experiment with working adults that the relationship between leader moral hypocrisy and psychological reactance is partly explained by increased perceptions of a leader’s use of power (study 4). We discuss the implications of our findings and advocate for further understanding of the risks associated with psychological reactance in response to leaders and other workplace situations.

In the shadow of various business scandals and societal crises, scholars and practitioners have developed a growing interest in authentic leadership. This approach to leadership assumes that leaders may access and leverage their “true selves” and “core values” and that the combination of these two elements forms the basis from which they act resolutely, lead ethically, and benefit others. Drawing on Heidegger’s work, we argue that a concern for authenticity can indeed instigate a leadership ethic, albeit one that acknowledges the unfounded openness of existence and its inherent relationality. On this basis, we propose an ethics-as-practice approach in which leaders respond to the situation at hand by being “attuned to attunement,” which cultivates an openness to otherness and a responsibility to others.