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A governance perspective on moral character development

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  • Hielscher, Stefan
  • Schultz, Felix Carl
  • Valentinov, Vladislav
  • Pies, Ingo

Abstract

This short contribution extends Smith et al.'s "Moral Moments Model" by adding a governance lens. We contend that compliance-based control systems (CBCSs) confine moral agency through rigid rules and narrow discretion, whereas virtue-based control systems (VBCSs) purposefully preserve uncertainty to nurture moral judgment and character. Using Structured Ethical Debriefings (SEBs) as an illustration, we show how institutionalized debriefings can rekindle moral moments by embedding reflection on ethically charged incidents even within highly regulated environments. Two propositions follow: (1) well-designed governance mechanisms can spark moral moments in either system; and (2) cultivating moral character is a critical challenge not only for individuals but also for organizations-especially for corporate citizens striving to shoulder genuine social responsibility.

Suggested Citation

  • Hielscher, Stefan & Schultz, Felix Carl & Valentinov, Vladislav & Pies, Ingo, 2025. "A governance perspective on moral character development," Discussion Papers 2025-07, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.
    • Handle: RePEc:zbw:mlucee:323215
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    References listed on IDEAS

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    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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