Leadership, Ethics, Prudence and Justice: Prudence Alone is Not Enough for Decision-Makers

17 Pages Posted: 27 Sep 2016

See all articles by Natàlia Cugueró-Escofet

Natàlia Cugueró-Escofet

University of Navarra, IESE Business School

Josep M. Rosanas

University of Navarra - IESE Business School

Date Written: September 2, 2016

Abstract

It is not unusual for management researchers to take the stand that value judgements and, thus, virtues, are an unrealistic approach to management, because what is considered to be realistic is achieving specific results, which may be easier to obtain in the short-run if managers follow some rules not based on morality but on "fact" (i.e., empirical relationships between quantitative results and the actions taken).

We argue that, on the contrary, virtues are crucial for competent decision-making, mainly if we take a dynamic, long-run view of the organization. We then analyze virtues, knowledge, and the relationship between them, to show the interrelationships between prudence, practical wisdom and justice. We argue that the unity of virtues, while it is a desirable end, may have to be acquired through practice, and that, for that purpose, justice has to be the main priority. Justice will then help to develop prudence and, with the other virtues incorporated as well, provide a better future for the organization in all its aspects.

Keywords: Ethics, Virtues, Prudence, Practical Wisdom, Justice

JEL Classification: I31, M14, M15

Suggested Citation

Cugueró-Escofet, Natàlia and Rosanas, Josep M., Leadership, Ethics, Prudence and Justice: Prudence Alone is Not Enough for Decision-Makers (September 2, 2016). IESE Business School Working Paper No. Working Paper WP-1144-E, Available at SSRN: https://ssrn.com/abstract=2844115 or http://dx.doi.org/10.2139/ssrn.2844115

Natàlia Cugueró-Escofet

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

Josep M. Rosanas (Contact Author)

University of Navarra - IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain
34 932534200 (Phone)
34 932534343 (Fax)

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