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In the aftermath of the Enron, Arthur Andersen, and other similar debacles, the pressure for ethical or moral transparency has increased. Typically, business ethics dilemmas result from the need to balance economic performance and social performance (Hosmer 1996). Determining and maintaining the ‘right’balance are becoming more difficult as today’s business organizations operate in an environment that is characterized by an unprecedented level of complexity, intense competition, and social obligations. Managers use three types of analysis in determining the ‘right’balance between economic and social performance: economic analysis, legal analysis, and philosophic analysis (Hosmer 1996: 85–86). Together, economic and legal analyses provide insights into financial revenues and costs, and the legality of the situation. Philosophic analysis is based on rational thought processes. It suggests that a manager should have a single principle of behaviour or a single statement of belief that is ‘right’and ‘proper’and ‘just’in and of itself. Such a principle will guide the decision maker to a decision on the duties he/she owes to others. Solving ethical dilemmas requires that managers be able to perform the three types of analysis effectively.

In general, managers have been trained to conduct economic and legal analyses but are not as well versed in philosophic analysis. In part, this lack is owing to the fact that more knowledge about economic and legal analyses exists than about philosophic analysis. More importantly, education and training on economic and legal issues are easily accessible, whereas learning and adopting principles of ‘right’and …