Global Business Ethics : Global Business Ethics
Global Business Ethics : Global Business Ethics Survey/Inventory: Dispositions
Quick Review of Theories
Discuss known problems
Discuss new problems
Looking forward: techniques and solutions
Survey/Inventory: Dispositions : Survey/Inventory: Dispositions Row boat problem
Character traits
Voice of God scenario
Understand theories : Understand 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 God
Understand theories : Understand 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 : 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 system
Understand theories : Understand 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-partisanism
Understand theories : Understand 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 mandates
Understand Theories : Understand 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, employees
Discuss known problems : Discuss 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 : 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 : 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 resolution
Discuss known problems : Discuss 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 : 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 made
Discuss new problems : Discuss 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 self-interest is needed. (Machon and Chester, A Primer on Business Ethics)
Global intellectual/cultural movements work against easy resolution (PM attack)
Discuss new problems : 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 : 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 : Metaphysical/Cultural Problem Possibility of moral discussion (duties, utilities) undermined by cultural/metaphysical perspectives
Postmodern Attack on Reason : Postmodern 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 : 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 : 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 : Summary: Old and New Problems Intellectual and moral evolution continues; dialectical tensions, yin-yang, is normal Reason
Tradition PM Attack
Creative
Destruction
Looking Forward: Principles : Looking 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 Grand
Looking Forward: Solutions 1 : Looking 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 : Universal Business Ideals Trust
Fair competition
Valued Characteristics/Virtues
Leadership
Honesty
Industry
Service
Universal Values : Universal Values Smith, Huston (1994). The Illustrated World's Religions. San Francisco: Harper.
Application of Wisdom Tradition : 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 customers
Looking Forward: Solutions 2 : Looking 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 : 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 Duties
Looking Forward: Solutions 3 : Looking 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 : 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 Wrong
Looking Forward: Good is Grand : Looking 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-becomes-worlds-tallest-building/
Toward Global Ethics: Summary : 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