Abstract

INSTITUTIONALIZING ETHICS ON CORPORATE BOARDS* By THEODORE V. PURCELL, S. J.+* Georgetown University This paper does not primarily discuss ethics as applied to economics but rather ethics as a needed input into corporate decision-making. Economic thinking is already one component of such decisions, along with law, politics, technology, finance, and so forth. But our treatment should also have relevance for economic theory and research.' Why should managers explicitly ask ethical questions? The post- Nixon corporate Watergate, followed by sensational investigations of international payoffs, aroused unprecedented distrust of big business and further stimulated the so-called "ethical investor" movement. Therefore, it becomes plain good strategy for the firm and its individ- ual managers to be concerned with ethics, if for no other reason than "to keep the restless natives quiet." Of course there is a much deeper reason than that. Most people want and need to be ethical persons not only in private life, but also in business, where a manager's decisions may affect many thousands, perhaps hundreds of thousands of persons. Also, individuals normally want to be part of an organization whose purpose and activity they believe is beneficial to society. I. WHOSE ETHICS? One hears doubts raised about the