Virtue Theory

We argued for earlier ( in the previous

lectures) that there are not two
moralities ( i.e., one for individual and
one for business) but a common
framework for judging both individual
and corporate activities .
•This lead us to anticipation that we can
get some guidance for business activities
by looking at what Aristotle has seen as
morally good life .
• Virtue Theory:
This theory asserts that there is no common agreement
in contemporary society on basic moral principles
because we have lost a sense of a common cultural
tradition from which moral values spring.
Today people argue from widely different premises, some
that moral values came from the will of God, others
that morality is what makes us individually happy,
others that mortality comes from individual rights, still
others that it comes from the good of society.
• Thus a shared view of a cultural tradition is
needed to tackle the mistaken view that
ethical issues can not be decided by rational
means. Virtue theory is an attempt to that
end.
• Alsdair macIntyre, a contemporary advocate
of virtue theory, defends Aristotle's moral
view, which is known as virtue theory.
• According to Aristotle, the values to be learned
by studying the lives of heroic persons.
• Societies where virtues such as honesty ,
fidelity( loyalty), honor, generosity are the
norm point to great individuals as models that
provide the guidance for individual moral
action. He thinks all virtues are communicated
this way.
• Confused about honesty? Look to stories of
honest behavior, in spite of consequences, as
related in stories and epic poetry.
• Virtue theory emphasizes the importance of
history and literature, for they are a society’s
cultural memory and provide examples of
admirable conduct to be copied and of
abhorrent (hateful) conduct to be avoided.
• So, too, in business. Moral values are often
communicated by stories about the company’s moral
ideas even when financial disaster loomed and the
temptation was strong to sacrifice values for the
bottom line.
Difficulties:
: A major difficulty in the application of virtue ethics is
the question of an increasingly multicultural society.
Aristotle’s ancient Greece is a society where there
was a commonly held cultural ideal.
• Increasingly global dimension of business
activities makes virtue theory less applicable
to business.
• Hence virtue theory seems to imply a
relativists position, with its emphasis on
shared cultural traditions, and the apparent
rejection of any grounds for ethics other than
a shared cultural tradition.
Key traits of Virtue Theory:
• It derives from a shared cultural tradition;
• Here values are communicated through
exemplars ;
Limitations:
• Difficult to apply to novel situations ;
• Lack of guidance in cross-cultural situations.
• Aristotle had no knowledge of the intricacies
of corporate existence , but his keen insights
into the nature of the moral life are still as
valuable for us today as they were when he
wrote them.
 The search for well-being
• Aristotle, in his analysis of his moral life, raises
an important question. It is:
What is it that we desire for its own sake?
His answer is happiness(eudaimonia)?
Happiness is a fulfilled life, one that is lived
according to reason and guided by
moderation.
• There are two corollaries of his analysis:
(i)Happiness is a quality of life that one
generate throughout one’s life. To seek
happiness is a lifetime activity.
(ii) One can not seek it directly, for happiness
is derived from other goals that we can seek
directly. ( e.g., we have to free us from poverty
to become happy.)
• Aristotle devotes more discussion to
‘friendship’ than to any other single topic. We
need to have meaningful relationship with
others to become happy.
• Aristotle defines happiness as ‘ activity in
accord with virtue’.
Importance of Virtue Theory for Business:

David Stewart writes that ‘What eudaimonia is to the individual,

profits are to the business.’

Without profit a business dies. And just as individuals achieve

happiness by seeking other goals, there is growing evidence
that the business goal of profit can best be sought if a
company first pursue such goals as enduring quality of its
product, service to the customers, and a commitment to
ensuring a stable community and work force.
 Virtue as Excellence
• Business leaders do speak of their commitment to
quality and excellence. And these two words are
close to what Aristotle means by virtue. Virtue is
an imperfect translation of Greek word arete. This
means not only moral virtue, but also excellence in
a broad sense.
• For Aristotle, there is an arete for every kind of
activity (starting from individual relation to
business relation). Even an animal can have virtue.
• When business leaders talk about the need for
total quality management, when they claim that
‘quality is job one’ or ‘ the mark of excellence’,
these are all reference to arete or virtue.
• According to MacIntyre, we are tempted to
think that morality is nothing but the expression
of personal preference. So it seems difficult to
securing moral agreement in our society in a
rational way.
• He arguers that modern society has lost the
common understanding of our essential human
purpose. In this situation, for him, a consideration of
ethics in term of virtue can helps us to resolve moral
debates that seem to dominate our culture. Virtue,
as a common understanding of essential human
purpose, does help addressing competing moral
claims.
• Thus he suggests us to return to Aristotelian
emphasis on virtue.