Business Ethics, Strategy and Organizational Integrity: The Importance of Integrity as a Basic Principle of Business Ethics That Contributes to Better Economic Performance

With focus on the role of integrity in relation to business ethics versus economic strategy the chapter contains following sections: 1. The concept of organizational integrity as a moral notion as it is described in the work of Lynn-Sharp Paine on organizational integrity. 2. The concept of integrity as an economic notion as it is described in the recent work of Michael Jensen. This section will discuss recent efforts in the business economics literature to consider integrity as an important notion of strategy. 3. Paine contra Jensen: A virtue or a workability concept of integrity. Here the authors discuss the basic dilemmas and problems of integrating integrity, economic performance and strategy in the perspective of the two theories of about integrity of Paine and Jensen.