A governance perspective on moral character development

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

No 2025-07, Discussion Papers from Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics

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.

Keywords: Moral Agency; Moral Character; Moral Moments; Governance; Virtue Ethics; Structured Ethical Debriefing; Moralische Handlungsfähigkeit; moralischer Charakter; moralische Momente; Tugendethik; strukturierte ethische Nachbesprechung; corporate citizens (search for similar items in EconPapers)
JEL-codes: D63 D83 M14 Z13 (search for similar items in EconPapers)
Date: 2025
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