Global Business EthicsGlobal Business Ethics ● Survey/Inventory: Dispositions ● Quick Review of Theories ● Discuss known problems ● Discuss new problems ● Looking forward: techniques and solutionsSurvey/Inventory: Dispositions ● Row boat problem ● Character traits ● Voice of God scenarioUnderstand theories ● Immanuel Kant – Groundwork of the Metaphysics of Morals (1785) – Nothing possible to be good in itself except human will – Our intention to act in accordance with a universal principle is the measure of our humanity – Persons are rational agents, due equal respect, cannot be used as objects – Christianity on steroids – without GodUnderstand theories ● Utilitarianism – Principles of Moral Legislation (1789) – Utilitarianism (1861) – The greatest good for the greatest number – A calculation done by an ideal (indifferent) spectator – Quantity as well as quality of “pleasures” (benefits, welfare) – Aimed against intuition, “feeling”Understand theories ● Virtue Theory – Aristotle (384 -322 BCE): Nichomachean Ethics – Common sense in high gear – Virtues are perfections of innate human capacities – The Golden Mean: ● Courage = neither fearful nor foolhardy – Intellectual and Moral virtues develop over time – Naturalistic: the basis for “natural law” moral systemUnderstand theories ● W. D. Ross – Prima Facie Duties – Fidelity, Reparation, Gratitude – Non-injury, Harm prevention – Beneficence: foster health, security, wisdom, moral goodness, happiness of others – rests on fact of existence of “others.” – Self-improvement, Justice – Suggested additions: Respect for Freedom, Care, Non-partisanismUnderstand theories ● Summary: Use of traditional theories involves understanding, applying and balancing four kinds of concerns: – Human dignity – value of each individual – Humanity at large – benefits to all concerned – Human virtues/perfections – natural capacities – Duties – intuitive/cultural mandatesUnderstand Theories ● Example: Outsourcing/Plant Closing – Human dignity – value of each individual ● Do not “use” human beings; do not throw them away – Humanity at large – benefits to all concerned ● People in third world liberated from poverty – Human virtues/perfections – natural capacities ● People in both worlds ultimately have new opportunities – Duties – intuitive/cultural mandates ● Prior promises, obligations to shareholders, employeesDiscuss known problems ● Kantianism – Inflexible and absolutist: never lie? – Seems entirely counter-intuitive: does not look to consequences – Difficult to apply/understand “act according to that maxim which you can will to be a universal law” Discuss known problems ● Utilitarianism – Logically allows colossally unjust worlds: can be used to justify slavery – Does not look to intentions or value of each human being – How is welfare (happiness, preferences) to be measured?Discuss known problems ● Virtue Theory – Seems bound to specific time/place/culture – Definition of “natural” in dispute – Biology or natural tendencies cannot be basis of morality (should be reason) – Too vague for application to complex issues, conflict resolutionDiscuss known problems ● Ross's Theory – Prima Facie Duties – Just a form of intuitionism: what guarantees correct fulfillment of duties? – What to do when duties conflict? (Choose the “higher” duty is just circular reasoning)Discuss known problems ● Summary: Ethics appears inconclusive at best; possibly just pseudoscience – Theories contradict each other, have different starting places, yet each claims to be true – Contemporary philosophers contradict each other, but still hold ● Religion is no better, in fact far worse ● Cultural Relativism cannot be the answer ● Moral Realism (Objectivism) is probably true ● Moral progress has been madeDiscuss new problems ● General Problems – Improper Analysis/Defense: Business Ethics based on old philosophies; almost nothing in 20th Century – “...business ethics in its present form is at best window dressing and at worst a calculated lie.” -Jones, et. al., For Business Ethics – Smith's defense of capitalism seems crude. After Kant, virtue of prudence was demoted, leaving capitalism without a proper defense. A naturalistic/Aristotelian defense of rational selfinterest is needed. (Machon and Chester, A Primer on Business Ethics) – Global intellectual/cultural movements work against easy resolution (PM attack)Discuss new problems ● Corporate Social Responsibility Problem: theories are old, apply to individuals, not to corporations ● Metaphysical/Cultural Problem: ethical dialogue impossible under differing cultural/metaphysical perspectives ● Postmodern Attack on Reason: theories are merely power plays or intuitions ● New Individuals Problem: theories do not address contemporary individual complexity Corporate Social Responsibility Problem ● Theories assume individual actor; Corporation is not a true individual, no one actor implies no true responsibility ● Do corporations have social responsibilities? – Friedman: No. Government has responsibility – Contemporary Business Ethics: Yes. Inescapable impact of corporate decisions; implied social contract with community ● Can a corporation have a duty, a virtue, or is utility the primary consideration?Metaphysical/Cultural Problem ● Possibility of moral discussion (duties, utilities) undermined by cultural/metaphysical perspectivesPostmodern Attack on Reason ● Nietzsche (1844-1900) Derrida (1930-2004) ● Death of God, Death of Master Narrative ● “Reason” culminates in Holocaust/Materialism ● Western “Ideals” denigrate “the other” ● Pluralism, Relativism, or Skepticism in Ethics Postmodern Attack on Reason ● Forms of responses to postmodernist pluralism Based on: Singer, M. (1997). Ethics and Justice in Organizations: A Normative-Empirical Dialogue – Unfriendly Deconstruction: preserve differences ● Coexistence of alternate perspectives is unstable – Friendly Deconstruction: respect differences but work toward finding common ground ● Coexistence more stable, working towards peace – Experimental Pragmatism: try to satisfy needs of people with different perspectives ● May be workable or stable – but at what cost?New Individuals Problem ● Shoshana Zuboff (Harvard Business School) – Individuals today have nothing in common with kind of individuals addressed in age of major theories – “In the second half of the twentieth century a new society of individuals emerged – a breed of people unlike any the world has ever seen. ...Their sense of self is more intricate, acute detailed, vast and rich than at any other time in human history.” (The Support Economy, p. 3) – Public and private institutions need to be reinvented – “Discontinuous change will require a bold reexamination of our social contract and the rules of wealth creation in a global system.” (Business Week, #4098, pp. 83-84)Summary: Old and New Problems ● Intellectual and moral evolution continues; dialectical tensions, yin-yang, is normal Reason Tradition PM Attack Creative DestructionLooking Forward: Principles ● Start where you are – universal cultural and business values already exist ● Accept partial solutions without relativism ● Metaphysical conditions (freedom, rationality) determine context ● Unify rather than separate – believe in reason ● Avoiding evil is not sufficient – seek truth in a peaceful society; the Good is GrandLooking Forward: Solutions 1 ● Apply already-accepted standards of business that enable trust (truthfulness, promise-keeping) ● Expand application of universal values Wisdom Traditions from personal to global scale Universal Business Ideals ● Trust ● Fair competition ● Valued Characteristics/Virtues – Leadership – Honesty – Industry ● ServiceUniversal Values Smith, Huston (1994). The Illustrated World's Religions. San Francisco: Harper. Application of Wisdom Tradition Charity Humility Truthfulness Service to community: to those actually in need Is your product a contribution? Are your skills adequate to the job?Representations made to public Your charity may not be a good fit – costs to your customersLooking Forward: Solutions 2 ● Develop a Check List for major decisions – Who is impacted? (K) – What are the consequences? (U) – What are my duties (corporate duties)? (R) – Does it respect human beings? (K) – What virtue or perfection does it exemplify? (A) – Does it survive the “in their shoes” test? (PM) – Does it follow a rule? (K, U) – Would I publish my reasoning? (T)Looking Forward: Solutions 3 ● Accept PM critique – pluralism without relativism (friendly deconstruction) ● Rule 1: Aim to satisfy 2 or 3 out of 4 – Utilitarianism – Kantianism – Aristotelianism (Virtue Theory) – Prima Facie DutiesLooking Forward: Solutions 3 ● Rule 2: Try for “the best” rather than “the perfect” in an imperfect world with insoluble problems – Limitations in knowledge, predictions – Continuous reevaluation: Retractions are OK – Acknowledge limitations in theories – Acknowledge individual and corporate limitations in reaching sound judgment (humility)Looking Forward: Solutions 3 ● Rule 3: Use varying perspectives to map “moral space” Based on Morgan, Eileen, Cross-Cultural Ethics: What Global Managers Do Right to Keep from Going WrongLooking Forward: Good is Grand Nuclear Power Plant: http://www.moonbattery.com/archives/2007/01/found_sincere_g.html Virgin Galactic http://tastyblogsnack.com/2008/07/28/virgin-galactic-launch/Dubai: World's Tallest Building http://www.therealestatebloggers.com/2007/07/21/burj-dubai-becomesworlds-tallest-building/Toward Global Ethics: Summary ● An imperfect world with many insoluble problems; use pluralistic approach but – Honor individual integrity and freedom – Reward initiative and creativity – Protect those opting out or unlucky ● Resolve cultural/metaphysical issues in favor of liberal democracy (Mill's defense, K, U, A, R) ● Creative Destruction aimed at Service for Humanity