Practically wise ethical decision‐making: An ethnographic application to the UNE‐Millicom merger

Abstract

Integrated approaches in the ethical decision‐making (EDM) and practically wise decision‐making literature are emerging as alternative perspectives to management theories that conceptualize decision‐making in a rationalist and value‐free manner. However, more dialogue between both perspectives and qualitative research that applies them is required. In addition, there is a need for empirical analysis on business engagement in the face of grand challenges in developing countries. This paper proposes an integrated practically wise EDM framework to study how Colombian councilors who, in 2013, voted for or against the merger between the Colombian state‐owned company UNE and the Swedish multinational Millicom interpret this decision and its public impact. Qualitative semi‐structured interviews were conducted with a voluntary sample of 18 of 21 councilors. Supporters of the UNE‐Millicom merger expressed open‐mindedness, seeing the merger as a means to achieve justice. On the contrary, the merger’s opponents expressed circumspection, doubting that Millicom’s intentions really leaned toward justice. We conclude that practical wisdom—embodied by both supporters and detractors—fosters an understanding of EDM beyond what leaders should not do. It also includes a democratic and balanced deliberation on what leaders think they should do to promote the common good.

Practical wisdom: A virtue for leaders. Bringing together Aquinas and Authentic Leadership

“…Specifically, evaluating all the possible circumstances pertains to circumspection, pondering potential obstacles and threats pertains to caution, and future effects and consequences are considered by foresight. Virtuous leaders are known for finding the best means to obtain worthy outcomes (Grassl, 2010;Melé, 2010) and for dealing with contextual contingencies (Díez Gómez & Rodríguez Córdoba, 2019;Sternberg, 1998Sternberg, , 2008. They are able to do this because they have a well-developed sense of caution, circumspection, and foresight, along with the ability to prioritize and balance internal and external goods (Grant et al, 2018), which enables them to calibrate the proper intensity of a virtuous behavior, thus, without deficiencies or excesses (Kaptein, 2017) for the survival and prosperity of their organization.…”

“…Cooper et al, 2005;Melé, 2010;Morales-Sánchez & Cabello-Medina, 2013). Similarly, a leader can struggle in general to gauge a situation and identify the best course of action (imprudence, thoughtlessness) (Díez Gómez & Rodríguez Córdoba, 2019), and can either jump the gun (precipitation) or be overly hesitant and lack commitment (inconstancy) or follow-through (negligence) (Calderón et al, 2018;Kaptein, 2017).…”

“…In particular, the role of practical wisdom and good judgment in decision making has emerged as a central topic in business (Bachmann, Habisch, & Dierksmeier, 2018; Cicmil, Gough, & Hills, 2017; Cunliffe, 2009; Mabey et al., 2015; Tsoukas, 2018). The importance of practical wisdom in decision making is in its potential for analyzing complex situations, detecting their moral content and implications (Díez Gómez & Rodríguez Córdoba, 2019; Roca, 2008), aiming at doing the right thing given a set of particular circumstances, and effectively safeguarding the inherent moral good relevant to the situation (Melé, 2010, 2012). Moreover, practical wisdom aids in understanding what purposes are worth pursuing, choosing the best means to achieve an already‐established end in accordance with the human good (Morales‐Sánchez & Cabello‐Medina, 2013).…”

In search of a fitting moral psychology for practical wisdom: Exploring a missing link in virtuous management

“…AS‐inspired practical wisdom is also limited in this regard in that it includes approaches that understand decision‐making as a rational, value‐free action 12 . Instead, integrated approaches to ethical and practically wise decision‐making (Díez Gómez & Rodríguez Córdoba, 2019) emerge with IPS's moral psychology. These approaches favor democratic and balanced deliberation, as well as promote common goods and fully inclusive notions of personal and group flourishing.…”

Practical wisdom as an adaptive algorithm for leadership: Integrating Eastern and Western perspectives to navigate complexity and uncertainty

“…Using practical wisdom as a heuristic to guide operations is not simply a moral issue-it is also a business strategy for success in complex environments. This approach improves ethical decision making by enhancing deliberative capacity and promoting the common good (Gómez, & Córdoba, 2019). To develop practical wisdom, leaders can introduce employees to relevant concepts from science, sustainability, and organizational theory.…”