Global Business Ethics : Copyright Anthony Birch 2008 1 Global Business Ethics
Global Business Ethics : Copyright Anthony Birch 2008 2 Global Business Ethics 1. Survey/Inventory: Dispositions
2. Understand theories
3. Discuss known problems
4. Discuss new problems
5. Looking forward: techniques and solutions
Global Business Ethics : Copyright Anthony Birch 2008 3 Global Business Ethics If GBE were a stock....
1. Survey/Inventory: Dispositions : Copyright Anthony Birch 2008 4 1. Survey/Inventory: Dispositions Row boat problem
Two men in a rowboat in the middle of the ocean with food enough only to save one; one is a genius working on a cure for cancer, the other is quite ordinary; whom do you save?
The genius
Decide by flipping a coin
Share the food and hope for a miracle
Voice of God scenario
The voice of God is speaking to you, and you are quite certain it really is God. God says: I am going to give you two statements and you must pick the true one or risk damnation. The first statement is: slavery is wrong. The second statement is: the ultimate material constituents of the world are string-like entities vibrating in space-time; in other words, physicists' contemporary string theory is true.
I choose statement ONE.
I choose statement TWO.
Character traits
What is the single most important character trait for everyone in business?
1. Survey/Inventory: Dispositions : Copyright Anthony Birch 2008 5 1. Survey/Inventory: Dispositions Row boat problem - ANSWERS
Two men in a rowboat in the middle of the ocean with food enough only to save one; one is a genius working on a cure for cancer, the other is quite ordinary; whom do you save?
The genius = You are a Utilitarian
Decide by flipping a coin = You are a Kantian
Share the food and hope for a miracle = You are a Kantian
Voice of God scenario - ANSWERS
The voice of God is speaking to you, and you are quite certain it really is God. God says: I am going to give you two statements and you must pick the true one or risk damnation. The first statement is: slavery is wrong. The second statement is: the ultimate material constituents of the world are string-like entities vibrating in space-time; in other words, physicists' contemporary string theory is true.
I choose statement ONE. Seems like the most clear choice.
I choose statement TWO. Why would you trust scientists over God?
Character traits - ANSWERS
What is the single most important character trait for everyone in business? Truthfulness, optimism, determination, leadership, hope, fairness
2. Understand theories : Copyright Anthony Birch 2008 6 2. 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
Example: Loan Officer
2. Understand theories : Copyright Anthony Birch 2008 7 2. 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”
Example: Lower prices, slower expansion
2. Understand theories : Copyright Anthony Birch 2008 8 2. 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
Example: Beauty product advertisements
2. Understand theories : Copyright Anthony Birch 2008 9 2. 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
Example: Product health and safety precautions
2. Understand Theories : Copyright Anthony Birch 2008 10 2. Understand Theories Example: Outsourcing/Plant Closing
Human dignity – value of each individual (K)
Do not “use” human beings; do not throw them away
Humanity at large – benefits to all concerned (U)
People in third world liberated from poverty
Human virtues/perfections – natural capacities (A)
People in both worlds ultimately have new opportunities
Duties – intuitive/cultural mandates (R)
Prior promises, obligations to shareholders, employees
2. Understand theories : Copyright Anthony Birch 2008 11 2. Understand theories Summary: Use of traditional theories involves understanding, applying and balancing four kinds of concerns:
Human dignity – value of each individual (K)
Humanity at large – benefits to all concerned (U)
Human virtues/perfections – natural capacities (A)
Duties – intuitive/cultural mandates (R)
3. Discuss known problems : Copyright Anthony Birch 2008 12 3. 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”
How does this apply to global enterprises, employment, and service to others?
3. Discuss known problems : Copyright Anthony Birch 2008 13 3. 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?
3. Discuss Known Problems : Copyright Anthony Birch 2008 14 3. Discuss Known Problems Example: Ford Pinto Case
Social Costs of existing tank: 2100 accidents, with 180 fatalities and 180 serious burns
Cost of cars ($700 each)
Social cost of burn victims ($67,000 each)
Social cost of deaths ($200,000 each)
Total = $46 million
Social Benefits of existing tank:
Save $11 on 12.5 million cars and trucks
Total = $146 million See Shaw and Barry, Moral Issues in Business, 9th ed., p. 85
3. Discuss known problems : Copyright Anthony Birch 2008 15 3. 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
3. Discuss known problems : Copyright Anthony Birch 2008 16 3. 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)
3. Discuss known problems : Copyright Anthony Birch 2008 17 3. 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
4. Discuss new problems : Copyright Anthony Birch 2008 18 4. 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, the virtue of prudence was demoted, leaving capitalism without a proper defense (Machon and Chester, A Primer on Business Ethics)
Global intellectual/cultural movements work against easy resolution
4. Discuss new problems : Copyright Anthony Birch 2008 19 4. Discuss new problems a. Corporate Social Responsibility Problem: theories are old, apply to individuals, not to corporations
b. Metaphysical/Cultural Problem: ethical dialogue impossible under differing cultural/metaphysical perspectives
c. Postmodern Attack on Reason: theories are merely power plays or intuitions
d. New Individuals Problem: theories do not address contemporary individual complexity
4a. Corporate Social Responsibility Problem : Copyright Anthony Birch 2008 20 4a. 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?
4b. Metaphysical/Cultural Problem : Copyright Anthony Birch 2008 21 4b. Metaphysical/Cultural Problem Possibility of moral discussion (duties, utilities) undermined by cultural/metaphysical perspectives
4c. Postmodern Attack on Reason : Copyright Anthony Birch 2008 22 4c. 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
4d. New Individuals Problem : Copyright Anthony Birch 2008 23 4d. New Individuals Problem Shoshana Zuboff (Harvard Business School)
Individuals today have nothing in common with kind of individuals addressed in age of major theories
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)
4. Discuss new problems : Copyright Anthony Birch 2008 24 4. Discuss new problems Summary: Old and New
Slide 25 : Copyright Anthony Birch 2008 25
5. Looking Forward: Principles : Copyright Anthony Birch 2008 26 5. Looking Forward: Principles a. Start where you are – universal cultural and business values already exist
b. Metaphysical conditions (freedom, rationality) determine context of debate and resolve disputes
c. Accept partial solutions without relativism (pluralism)
5a. Looking Forward: Solutions 1 : Copyright Anthony Birch 2008 27 5a. Looking Forward: Solutions 1 Apply already-accepted standards of business that enable trust (truthfulness, promise-keeping)
Expand application of universal values derived from the Wisdom Traditions – expand from personal to global scale
Closing gap between personal and corporate concepts of “agency with virtue” may mitigate CSR problem
Universal Business Ideals : Copyright Anthony Birch 2008 28 Universal Business Ideals Trust
Fair competition
Valued Characteristics/Virtues
Leadership
Honesty
Industry
Service
Universal Values : Copyright Anthony Birch 2008 29 Universal Values Based on: Smith, Huston (1994). The Illustrated World's Religions. San Francisco: Harper.
Application of Wisdom Tradition : Copyright Anthony Birch 2008 30 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
5b. Looking Forward: Solutions 2 : Copyright Anthony Birch 2008 31 5b. Looking Forward: Solutions 2 Use varying perspectives to map “moral space” but avoid cultural relativism Based on Morgan, Eileen, Cross-Cultural Ethics: What Global Managers Do Right to Keep from Going Wrong
5b. Looking Forward: Solutions 2 : Copyright Anthony Birch 2008 32 5b. Looking Forward: Solutions 2 Use varying perspectives to map “moral space” but avoid cultural relativism
Russian “fatalism” not supported by Kantian metaphysics (existentialism, history)
Dr. Michael Santaro, on case for PNTR with China: The case for granting PNTR to China is I think a simple and compelling one. The greatest human rights impact that the United States can have on China will come through trade and investment. In my book I call this phenomenon "human rights spin-off." ...By granting PNTR to China, the United States will accelerate "human rights spin-off," fuel the dramatic social changes taking place in China, and thereby hasten the day that democracy and human rights can flourish in China.
5c. Postmodern Attack on Reason : Copyright Anthony Birch 2008 33 5c. 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?
5c. Looking Forward: Solutions 3 : Copyright Anthony Birch 2008 34 5c. Looking Forward: Solutions 3 Accept PM critique – pluralism without relativism (friendly deconstruction):
Moral truths real, but partial (Lawrence Hinman)
Ethics not a body of coherent/consistent truths
Rule 1: Aim to satisfy 2 or 3 out of 4
Utilitarianism
Kantianism
Aristotelianism (Virtue Theory)
Prima Facie Duties
5c.Looking Forward: Solutions 3 : Copyright Anthony Birch 2008 35 5c.Looking Forward: Solutions 3 Rule 1: Check List for major decisions
Who is impacted? (K, U)
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)
5c. Looking Forward: Solutions 3 : Copyright Anthony Birch 2008 36 5c. 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)
Global Business Ethics - Conclusion : Copyright Anthony Birch 2008 37 Global Business Ethics - Conclusion 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 freedom and liberal democracy (Mill's defense, K, U, A, R)
Think: Creative Destruction aimed at Service for Humanity