IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i3p1156-d317069.html
   My bibliography  Save this article

The Relative Role of the Intellectual and Moral Virtues in Sustainable Management Decisions: The Case of Practical Wisdom and Justice

Author

Listed:
  • Natàlia Cugueró-Escofet

    (Faculty of Economics and Business Studies, Universitat Oberta de Catalunya, Rambla del Poblenou, 156, 08018 Barcelona, Spain)

  • Josep M. Rosanas

    (IESE Business School, Universidad de Navarra, Avinguda Pearson, 21 08034 Barcelona, Spain)

Abstract

We analyze the status of virtues in management by going in some depth into the two main virtues, justice and practical wisdom. We next study how ethics requires that all virtues should be present under the ideal concept of a ‘unity of virtues’ for a completely wise person and discuss the practical limitations of this concept. Then, we draw a framework for decision making depending on whether the decision maker possesses justice and practical wisdom or lacks one of them and then discuss which one is better to have. We conclude that justice is more important, as it is about setting objectives and prioritizing, whereas practical wisdom is about attaining these objectives, once listed, in a rationally wise and contextual way. Hence, we conclude that objectives (justice) must come first, because this makes it more likely that, in the end, practical wisdom is developed, and thus we end up having the two virtues.

Suggested Citation

  • Natàlia Cugueró-Escofet & Josep M. Rosanas, 2020. "The Relative Role of the Intellectual and Moral Virtues in Sustainable Management Decisions: The Case of Practical Wisdom and Justice," Sustainability, MDPI, vol. 12(3), pages 1-21, February.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:3:p:1156-:d:317069
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/3/1156/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/3/1156/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Claudius Bachmann & André Habisch & Claus Dierksmeier, 2018. "Practical Wisdom: Management’s No Longer Forgotten Virtue," Journal of Business Ethics, Springer, vol. 153(1), pages 147-165, November.
    2. Michael C. Jensen, 2010. "Value Maximization, Stakeholder Theory, and the Corporate Objective Function," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(1), pages 32-42, January.
    3. Beabout, Gregory R., 2012. "Management as a Domain-Relative Practice that Requires and Develops Practical Wisdom," Business Ethics Quarterly, Cambridge University Press, vol. 22(2), pages 405-432, April.
    4. Natàlia Cugueró-Escofet & Marion Fortin, 2014. "One Justice or Two? A Model of Reconciliation of Normative Justice Theories and Empirical Research on Organizational Justice," Journal of Business Ethics, Springer, vol. 124(3), pages 435-451, October.
    5. Josep Maria Rosanas, 2013. "Decision-Making in an Organizational Context," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-32415-3, October.
    6. Tepper, Bennett J., 2001. "Health Consequences of Organizational Injustice: Tests of Main and Interactive Effects," Organizational Behavior and Human Decision Processes, Elsevier, vol. 86(2), pages 197-215, November.
    7. Natàlia Cugueró-Escofet & Pilar Ficapal-Cusí & Joan Torrent-Sellens, 2019. "Sustainable Human Resource Management: How to Create a Knowledge Sharing Behavior through Organizational Justice, Organizational Support, Satisfaction and Commitment," Sustainability, MDPI, vol. 11(19), pages 1-20, September.
    8. David Lipka, 2013. "The Max U Approach: Prudence Only, or Not Even Prudence? A Smithian Perspective," Econ Journal Watch, Econ Journal Watch, vol. 10(1), pages 2-14, January.
    9. Marion Fortin & Russell Cropanzano & Natàlia Cugueró-Escofet & Thierry Nadisic & Hunter van Wagoner, 2019. "How do people judge fairness in supervisor and peer relationships? Another assessment of the dimensions of justice," Post-Print hal-03139218, HAL.
    10. Cugueró-Escofet, Natàlia & Rosanas, Josep M., 2015. "Justice: A Sufficient Condition for Goal Congruence in Management Control Systems," IESE Research Papers D/1129, IESE Business School.
    11. Treviño, Linda Klebe & Butterfield, Kenneth D. & McCabe, Donald L., 1998. "The Ethical Context in Organizations: Influences on Employee Attitudes and Behaviors," Business Ethics Quarterly, Cambridge University Press, vol. 8(3), pages 447-476, July.
    12. Natàlia Cugueró-Escofet & Marion Fortin & Miguel-Angel Canela, 2014. "Righting the Wrong for Third Parties: How Monetary Compensation, Procedure Changes and Apologies Can Restore Justice for Observers of Injustice," Journal of Business Ethics, Springer, vol. 122(2), pages 253-268, June.
    13. Mark S. Schwartz, 2016. "Ethical Decision-Making Theory: An Integrated Approach," Journal of Business Ethics, Springer, vol. 139(4), pages 755-776, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Natàlia Cugueró-Escofet & Marion Fortin, 2022. "How Should We Distribute Rewards in Social Sustainable Organizations? Investigating Individual Preferences for Justice Allocation Norms," Sustainability, MDPI, vol. 14(3), pages 1-23, February.
    2. Natàlia Cugueró-Escofet & Josep M. Rosanas, 2020. "Practical Wisdom for Sustainable Management and Knowledge Sharing," Sustainability, MDPI, vol. 12(10), pages 1-17, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rosanas, Josep Mª & Cugueró-Escofet, Natalia, 2016. "Leadership, Ethics, Prudence and Justice: Prudence Alone Is not Enough for Decision-Makers," IESE Research Papers D/1144, IESE Business School.
    2. Rasim Serdar Kurdoglu, 2020. "The Mirage of Procedural Justice and the Primacy of Interactional Justice in Organizations," Journal of Business Ethics, Springer, vol. 167(3), pages 495-512, December.
    3. Natàlia Cugueró-Escofet & Josep M. Rosanas, 2020. "Practical Wisdom for Sustainable Management and Knowledge Sharing," Sustainability, MDPI, vol. 12(10), pages 1-17, May.
    4. Sandrine Frémeaux & Thibaut Bardon & Clara Letierce, 2020. "How To Be a ‘Wise’ Researcher: Learning from the Aristotelian Approach to Practical Wisdom," Post-Print hal-03232780, HAL.
    5. Raymond O. S. Zaal & Ronald J. M. Jeurissen & Edward A. G. Groenland, 2019. "Organizational Architecture, Ethical Culture, and Perceived Unethical Behavior Towards Customers: Evidence from Wholesale Banking," Journal of Business Ethics, Springer, vol. 158(3), pages 825-848, September.
    6. Natàlia Cugueró-Escofet & Marion Fortin, 2022. "How Should We Distribute Rewards in Social Sustainable Organizations? Investigating Individual Preferences for Justice Allocation Norms," Sustainability, MDPI, vol. 14(3), pages 1-23, February.
    7. Robert Couch & Caleb Bernacchio, 2020. "The Virtues of Equality and Dissensus: MacIntyre in a Dialogue with Rancière and Mouffe," Journal of Business Ethics, Springer, vol. 164(4), pages 633-642, July.
    8. Carlos Ferro-Soto & Luz Amparo Macías-Quintana & Paula Vázquez-Rodríguez, 2018. "Effect of Stakeholders-Oriented Behavior on the Performance of Sustainable Business," Sustainability, MDPI, vol. 10(12), pages 1-27, December.
    9. Rahizah Sulaiman & Paul Toulson & David Brougham & Frieder Lempp & Jarrod Haar, 2022. "The Role of Religiosity in Ethical Decision-Making: A Study on Islam and the Malaysian Workplace," Journal of Business Ethics, Springer, vol. 179(1), pages 297-313, August.
    10. Sandrine Frémeaux & Thibaut Bardon & Clara Letierce, 2021. "How To Be a ‘Wise’ Researcher: Learning from the Aristotelian Approach to Practical Wisdom," Journal of Business Ethics, Springer, vol. 171(4), pages 667-681, July.
    11. Cugueró-Escofet, Natalia & Fitó, Àngels & Rosanas, Josep Mª, 2016. "Integrating justice and trust in MCS: How to generate goal congruence and long term fairness coherent with the firm's mission," IESE Research Papers D/1145, IESE Business School.
    12. Alpaslan, Can M. & Mitroff, Ian I., 2021. "Exploring the moral foundations of crisis management," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    13. Maha Faisal Alsayegh & Rashidah Abdul Rahman & Saeid Homayoun, 2020. "Corporate Economic, Environmental, and Social Sustainability Performance Transformation through ESG Disclosure," Sustainability, MDPI, vol. 12(9), pages 1-20, May.
    14. Mara Del Baldo, 2012. "Corporate social responsibility and corporate governance in Italian SMEs: the experience of some “spirited businesses”," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(1), pages 1-36, February.
    15. repec:dau:papers:123456789/1059 is not listed on IDEAS
    16. Scholtens, Bert, 2008. "A note on the interaction between corporate social responsibility and financial performance," Ecological Economics, Elsevier, vol. 68(1-2), pages 46-55, December.
    17. Thomas Maak & Nicola M. Pless & Christian Voegtlin, 2016. "Business Statesman or Shareholder Advocate? CEO Responsible Leadership Styles and the Micro-Foundations of Political CSR," Journal of Management Studies, Wiley Blackwell, vol. 53(3), pages 463-493, May.
    18. Marc Bollecker & Pierre Mathieu & Claude Clementz, 2006. "Le Comportement Socialement Responsable Des Entreprises : Une Lecture Des Travaux En Comptabilite Et Contrôle De Gestion Dans Une Perspective Neo-Institutionnaliste," Post-Print halshs-00769052, HAL.
    19. Erik G. Hansen & Stefan Schaltegger, 2018. "Sustainability Balanced Scorecards and their Architectures: Irrelevant or Misunderstood?," Journal of Business Ethics, Springer, vol. 150(4), pages 937-952, July.
    20. Ferrell, Allen & Liang, Hao & Renneboog, Luc, 2016. "Socially responsible firms," Journal of Financial Economics, Elsevier, vol. 122(3), pages 585-606.
    21. Ante Glavas & Lindsey Godwin, 2013. "Is the Perception of ‘Goodness’ Good Enough? Exploring the Relationship Between Perceived Corporate Social Responsibility and Employee Organizational Identification," Journal of Business Ethics, Springer, vol. 114(1), pages 15-27, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:3:p:1156-:d:317069. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.