Virtue Ethics, Corporate Identity and Success

Abstract

This sub-section will address the connection between virtue ethics with corporate identity and the success of an enterprise. It assesses to what extent an employees’ virtue-ethical behavior established within the culture of an enterprise can shape its corporate identity and, hence, also influence its success. The following lines highlight the importance of virtue (aretaic) ethics for successful companies. This is complemented with utility (utilitarian) ethics and duty (deontological) ethics. These three approaches combined have the potential to sustainably inspire ethically responsible actions. The example of VW’s emission scandal will illustrate how far vicious behavior can cause stakeholders’ mistrust and thus tremendous transaction costs and reputation damage. Secondly, the effects of virtue ethics to establish a sustainably responsible culture will be outlined. Thirdly, some methods to establish a virtuous corporate identity attractive for most stakeholders will be discussed.