How Virtuous is Your Firm? A Checklist

Abstract

Scholars are noting a change in the way business is being conducted. Many firms -- one scholar estimates the number at 15% -- are concerned about values rather than focusing exclusively on maximizing profits. This new kind of capitalism considers factors such as societal needs, quality, needs of employees, and environmental sustainability in business decision making. In addition, a large number of consumers (approximately 70 million Americans), known as values-driven consumers, prefer doing business with companies that have values. This paper provides a checklist that can be used by firms to determine whether or not they are indeed virtuous; if they are not, the authors provide reasons why they should change.

Keywords: business ethics, corporate social responsibility, virtuous firm, servant leadership, workplace diversity, spirituality

JEL Classification: A22, A23, D81, G18, G21, I20, L20, L21, M14, M19, M31, Q20, Q38