Global Ethics 3 PPT

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 – D'Souza 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 is 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: Advertising

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) Scientific, against intuitions or feelings Example: Lower prices, slower expansion

2. Understand theories : Copyright Anthony Birch 2008 8 2. Understand theories Virtue Theory Aristotle (384 - 322 BCE): Nichomachean Ethics The Good is the Natural 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 – but in moral evaluation of acts, we ask “what happened as a result of the action”? 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 contracts, 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 primarily to intentions or value of each human being: counter-intuitive Seems to require ability to reliably predict future 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 (e.g., “natural” slaves) 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

Global Business Ethics : Copyright Anthony Birch 2008 18 Global Business Ethics If GBE were a stock.... Despite known problems, philosophers hold on to Realism or Objectivism: Moral truths are knowable

4. Discuss new problems – D'Souza : Copyright Anthony Birch 2008 19 4. Discuss new problems – D'Souza Basic Problem Contemporary techno-capitalism has created wealth and prosperity for millions around the world System has no apparent answer for basic question: what is the meaning of my life? Left points to huge divergences in wealth Right points to disruption of moral values in relationships with family, community, nature

4. Discuss new problems – D'Souza : Copyright Anthony Birch 2008 20 4. Discuss new problems – D'Souza Capitalism seems to have a predicable “end game” In a letter from John Adams to Jefferson: Industry > Riches > Luxury > Vice and Folly Bell: The Cultural Contradictions of Capitalism Capitalism based on hedonism > Erosion of habits of industry, thrift, deferred gratification > These same principles are necessary for capitalism > Capitalism fails

4. Discuss new problems – D'Souza : Copyright Anthony Birch 2008 21 4. Discuss new problems – D'Souza Capitalism seems to have a predicable end game Adam Smith “The man whose whole life is spent in performing a few simple operations...has no occasion to exert his understanding, or to exercise his invention...He...generally becomes as stupid and ignorant as it is possible for a human creature to become. The torpor of his mind renders him not only incapable of...any rational conversation...but of conceiving any generous, noble or tender sentiment...”

4. Discuss new problems – D'Souza : Copyright Anthony Birch 2008 22 4. Discuss new problems – D'Souza How did capitalism evolve? Review Ancien Regime (Traditional Systems) Aristotle: Craftsmen and traders not citizens Dante: Avaricious consigned to Hell Confucius: “The gentleman understands what is moral; the small man understands what is profitable.” Greeks: Politics and morality concerned with developing the best people Classic virtues: Wisdom, Justice, Temperance, Courage, Faith, Hope, Charity = Civilization

4. Discuss new problems – D'Souza : Copyright Anthony Birch 2008 23 4. Discuss new problems – D'Souza How did capitalism evolve? Review Ancien Regime (Traditional Systems) Saint Jerome: :All riches proceed from sin. No one can gain without another losing.” Aristotle: Work cannot be the foundation of life; contemplation is the goal Technology: a distraction; conquest of nature is wrong because it is inhumane Civilization and purpose of life defined by classic virtues: Wisdom, Justice, Temperance, Courage, Faith, Hope, Charity, Prudence

4. Discuss new problems – D'Souza : Copyright Anthony Birch 2008 24 4. Discuss new problems – D'Souza How did capitalism evolve? New ideas emerge 1500 – 1800 C.E. Two waves: Maciavelli, Hobbes, Mandeville Iconoclasts, Revolutionaries Bacon, Locke, Smith Moderate, Systematic Primary Result: Abandonment of traditional values of ancien regime – substitution with new values that make capitalism work

4. Discuss new problems – D'Souza : Copyright Anthony Birch 2008 25 4. Discuss new problems – D'Souza

4. Discuss new problems – D'Souza : Copyright Anthony Birch 2008 26 4. Discuss new problems – D'Souza

4. Discuss new problems – D'Souza : Copyright Anthony Birch 2008 27 4. Discuss new problems – D'Souza Since 1776 – 200+ years of “Success” Auto Biography of Benjamin Franklin (1790) Temperance, Silence, Order, Resolution, Frugality, Industry, Sincerity, Justice, Moderation, Cleanliness, Tranquility, Chastity, Humility Actual Character: prideful, avaricious 2000: 10s of Millions very well off, little poverty Formula for “success” spreading around the world

4. Discuss new problems – D'Souza : Copyright Anthony Birch 2008 28 4. Discuss new problems – D'Souza Summary: Capitalist System still provides NO ANSWER to fundamental life questions; both individual and corporate life seems empty Method of contemporary Business Ethics seems to rest on mistake: application of theories of traditional philosophy to system designed to replace or ignore it Worse! (D'Souza) System may undo all its good by destroying human nature through biotech

5. Looking Forward: Principles : Copyright Anthony Birch 2008 29 5. Looking Forward: Principles a. Start where you are – universal cultural and business values already exist; revive and reinterpret “the good is the natural” b. Metaphysical conditions (freedom, rationality) determine context of debate and resolve disputes c. Accept partial solutions without relativism (pluralism)

5a. Looking Forward: Solutions 1Reinterpretation : Copyright Anthony Birch 2008 30 5a. Looking Forward: Solutions 1Reinterpretation Apply already-accepted standards of business that enable trust (truthfulness, promise-keeping) Expand application of universal values derived from the Wisdom Traditions and ancien regime Rationale: Traditions can indicate reason; human excellence can thrive in natural commerce Historical Demands: Nodal points in history “cause” reinterpretation

Universal Business Ideals : Copyright Anthony Birch 2008 31 Universal Business Ideals Trust (exceed legal requirements) Fair competition (D'Souza: provide need-based scholarships through college) Valued Characteristics/Virtues Leadership Honesty Industry Service (D'Souza: put imagination to work for others and be rewarded accordingly)

Universal Values : Copyright Anthony Birch 2008 32 Universal Values Based on: Smith, Huston (1994). The Illustrated World's Religions. San Francisco: Harper.

Application of Wisdom Tradition : Copyright Anthony Birch 2008 33 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 2Metaphysics : Copyright Anthony Birch 2008 34 5b. Looking Forward: Solutions 2Metaphysics Dispute may be resolved by appeal to Kant Based on Morgan, Eileen, Cross-Cultural Ethics: What Global Managers Do Right to Keep from Going Wrong

5c. Looking Forward: Solutions 3Pluralism : Copyright Anthony Birch 2008 35 5c. Looking Forward: Solutions 3Pluralism Accept PM critique – pluralism without relativism (friendly deconstruction): Moral truths real, but partial (Lawrence Hinman) Ethics not a body of coherent/consistent truths Aim to satisfy 2 or 3 out of 4 Utilitarianism Kantianism Aristotelianism (Virtue Theory) Prima Facie Duties

5c. Looking Forward: Solutions 3Pluralism : Copyright Anthony Birch 2008 36 5c. Looking Forward: Solutions 3Pluralism 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 37 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 38 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)

5c. Looking Forward: Solutions 3 : Copyright Anthony Birch 2008 39 5c. Looking Forward: Solutions 3 Rule 3: Build new virtues and practices that attempt to satisfy needs for prosperity as well as needs for primal relationships 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 40 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