Business and Ethical Thinking: Business, Society and Responsibility
What are Ethics?
| "A moral or ethical statement may assert that some
particular action is right or
wrong; or that some actions of certain kinds are so; it may offer a distinction between good and
bad characters or dispositions; or it may propound some principle from which more detailed
judgements of these sorts might be inferred - for example that we ought always aim at the
general happiness or try to minimise the total suffering of all sentient beings, or ....... that it is
right and proper for everyone to look after himself. All such statements express first order
ethical judgements of different degrees of generality."
J L Mackie 1977 pp 9
Moral philosophy inquires into ...."the nature of "Moral laws and rational precepts of
Conduct
...(and)....the nature of ....reasonable human action and the method of attaining it"
(Sidgwick 1907, pp 3)
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What is the scope and relevance of Ethics to ourselves
and the conduct of business?
It is important to evaluate our thinking/reasoning processes and frameworks when taking action, making
assertions and entering into arguments about what is morally proper. We
all, from time to time, comment on the proper or wrongful behaviour of others. We make decisions
about what we ought or ought not to do. We are our own moral philosophers.
A philosophical approach requires us to reach beyond what is personal intuitive or has the
appearance of being common-sense. Often common-sense may be deceiving or not very common so
- there is value, as "moral archeologists", in digging deeper. We might then better
comprehend:
- the form of such thinking or reasoning and the "truth/plausibility" of concepts
and frameworks of moral argument.
- the meanings and applications (general and specific to business) of various
ethical terms and bases of argument.
Consider the following questions (not exhaustive).
- What kind of knowledge does ethics lay claim to? How is such knowledge defined?
- What is its relevance/application to business conduct?
- How is it (morality) acquired? What are the origins of ethics as systems of belief?
- Should I/you be good all the time? Must the answer always be "Yes" or are there
degrees of correct or wrongful action?
- Is morality necessarily related to religion?
- Is questionable morality necessarily criminal or needing a framework of control and
sanction? What form does a framework of sanction take - say - for the business person operating
in a global marketplace?
- Are some acts committed by people always wrong (murder, child abuse, theft, corrupt
practice, exploitation of others, damaging and irreversible destruction of the natural
environment)?
- Is moral, ethical behaviour bound by absolute, universal, undeniable rules which everyone
must accept and follow in life? What are such rules? How could they be so absolute?
Alternatively is such behaviour based more on
- avoidance of consequences (fear of personal harm/punishment) when making decisions or
taking action?
- socially and culturally determined and dynamic values (subject to evolution and change)?
- Do people have more of a propensity for goodness/evil, selfishness and greed (and are
business people particularly vulnerable?) or does altruism, generosity and kindness prevail?
- How do children best learn to behave morally?
- What could be the content of a framework of ethical principles that business people in the
modern (and postmodern) world might benefit from?
- in an extension to childhood do business people learn to behave morally? (Do children learn to
behave morally?)
- Who has the right to tell you/me what goodness and evil are? Who has the right to tell
business people what right and wrong conduct is in the context of their business dealings?
Ethical Concepts and Business Ethics
Those in business face some public disquiet and criticism
about the ethical standards and behaviours that business people exhibit. This is generally true in political life
and (Western) "society". The media, social commentators and politicians constantly revisit
questions about what is "ethically or morally wayward, dubious or wrongful" and what
we ought to expect from actors in the business and political worlds. In a sense,
they have to have something to write and talk about. But is there really a crisis of confidence? Is business
practice generally a major cause for concern?
The Business World - Vile or Virtuous
Business people acquire great personal identity and reputation, many of their
values/opinions and ways of doing things/behaving from their business circle and operating milieu.
Perspectives on "acceptable business
behaviour" overlap with the wider political, educational, health and family arenas. Is it the case that,
expectations for the ethical behaviour of business people are any different from what we expect of
others - notwithstanding that business decisions can affect many more people than those of a single,
ordinary individual? The answer is
"probably not" - given that "methods of ethics" are constructed in a social
realm.
The economic processes and structures of business are varied and more complex, so to
comprehend "the problem" we need conceptual frameworks to thoroughly debate what
is unethical. Such concepts and frameworks are available from the realm of moral philosophy.
Activity
List key points in your own history which have been influential in shaping your own views on
ethical issues - where matters of what is right and wrong, duty and obligation are concerned.
Where do ethical/moral beliefs originate?
We are social creatures. Very few of
us can live in total isolation. Much of our individuality is ascribed by and validated by and with
others. We need to establish and maintain a basic set of co-operative, reciprocal relationships
with friends and associates many of whom in one way or another may be rivals also.
Taboos and Codes
I remember as a child getting into great trouble and suffering immense embarrassment in taking
a spoon from a neighbour's house ..... simply because "I liked it and it was very, very similar
to one we had at home .... therefore it must be mine. "
The embarrassment is still with me today and affects me every time I fill in a business expense
claim form or fill in an insurance claim form or pay for the postage when I ask my company's post
room to frank a personal letter for me because I do not have time to go to the post office.
- Has unrestrained murder ever been acceptable in a community/society? Most communities
have taboos and social codes governing such action indicating the grounds on which people may
kill others e.g. in self-defence or war or ritual sacrifice.
- We are rightly nervous about talk of euthansia and allowing doctors to aid terminally-ill
patients who have decided to call it a day. The unease and the law illustrate the taboos, strong
religious influences. Common sense and experience tells us that that the aged, sick and others are
vulnerable to unscrupulous witchdoctors.
Such unease and consequent legal/societal frameworks reflect "taboos" but a taboo in
itself may not encompass principles universal to the treatment of others generally, liberty,
murder, stealing, ownership, telling the truth or sticking to agreements? Some traditional taboos
may exclude women or involve practices which harm weaker individuals.
The Great Eagle
Ethical positions may be bound by institutional rules and regulated by law
or religious belief. In the latter case the source of rules may be attributed to the deity,
"the Great Eagle - says it is fine to kill your enemy between sunrise and sunset but when he
knocks on your door after dark, begs for food and desires a bed for the night" you must be
polite and not proceed to kill him until the sun comes up again.
P.S. At dawn you must then give him a 10 minute head start."
Through the Great Mother or reference to a taboo or the law (the Geneva Convention, the Court of
Human Rights), we define the scope of various forms of morally acceptable behaviour and thus
legitimise our actions. These illustrate external, institutionalised systems of ethical values.
Individual Will, Reason and Social (Collective) Determination
We have our biological/genetic individuality and some would argue an ability to reason
independently and autonomously of others. But it is difficult to avoid up-bringing, education and
overall experience as shapers of what we are (the nature vs. nurture argument) and how we
behave/think. People, owners, traders, managers, professionals, employees, suppliers, buyers,
consumers, politicians, civil servants, benefactors and criminals, are all products of and
contributors to a society.
It is too simple to speak of one unified community. You may remember that Mrs Thatcher
exclaimed - there is no such thing as society! We are members of many reference groups.
Association or even dis-association with such groups may transcend cultural, religious, racial,
sexual and socio-economic (class?) boundaries.
- Artistole argued that the "state" functions to enable people (a collective) to share
ideas and agree on a common code of what might be termed "acceptable behaviour".
People are social creatures i.e. there is a natural characteristic to live in a state.
- Socrates (circa 469-399 BC) differentiated between the law and morality. The state might
legislate on right and wrong behaviour but every citizen should be vigilant in keeping under
review what is accepted as moral opinion.
But is the moral side to my nature just based on
- sticking to "externally defined rules" some or all of which stem froma divine tradition? If so, then "goodness" is learnt from
up-bringing, community membership and fear of retribution - and is not inherent in the nature of
"man".
or
- am I innately moral, with a propensity for goodness rather than evil (born with in built
capacity for sinfulness?
The N Commandments
Differences between religions highlight the implausibility of divine commandment. Even within a
religion rules of an ethical nature can be contradictory. If a divine order requires someone to be
murdered or a child to be sacrificed - must the follower who thinks independently and differently
carry it out?
This might be so but the reciprocity or golden rule seems to span
most religions.
Treat others as you would like them to treat you.
Views about human nature
- are typical starting point for ethical debate. "Man" is inherently good or bad - born an angel or a
devil.
- There is a likely X-Files-cum-science fiction cul-de-sac in thinking that future scientists
might identify a criminal or psychopath from a blood test. This smacks of master race political
rantings.
- We might accept that someone may be born with extreme extrovert characteristics (seeks
constant stimulus) and thus inclined to get into trouble as a child because of boisterous, high
jinks behaviour.
However it is also the case that family up-bringing, nurturing and conscious determination on the
part of the individual may enable them to become a librarian! Oedipus-schmedipus - what does it
matter so long as he loves his mother!.
Individual will versus collective forces
In moral philospohy the "individual will - collective forces" debate is important.
The ethically minded individual (you/me) may act from choice and not social influence (the
family tradition, following orders blindly, being incited by others to riot or join a lynch mob). In a
war, soldier kills soldier becauses the factions are in conflict. If it was up to individuals if
their own homes were not threatened and they did not personally identify with the cause, their
natural tendency might be to pack up and go home. The individual who who chooses might be quite
willing to die fighting or take the life of another if personal liberty is threatened and he/she
regards atrocities committed by others as "evil". Equally such matters may be seen to
be evil but the person is totally unwilling to take the life of another.
Business by example?
Imagine the employee who works loyally for the firm but sees a senior manager engaged in fraud or some other
unlawful action. If employee blows the whistle and exposes the senior manager they may - even
as the angel - may lose their job. Creer opportunities may be severely dented. Turning a
blind eye is easier. It may be difficult to see anyway that anyone in particular has been substantially hurt from the fraudulent activity.
The argument to confront however is that individuals exercising free will make moral choices. Indeed without free will can the notion of morality exist? Whilst a killer whale attacking and even mauling a seal is not behaving unethically, we generally see due punishment for a serial killer or rapist as necessary.
We may differ about the type of punishment and argue over contributory and mitigating factors - tortured family up-bringing perhaps. If someone was to steal a sheep today or paint a rude slogan about a politician or the police chief or rival deity on the wall - we would
regard it (Western liberal reaction) as unethical if such misdemeanour was punished
by a lobotomy or amputation of the offending limb?
Yet a good resident of ancient Rome would choose to enjoy a good day out at the circus with
captives on the lions' menu. Friends and family label our Roman as a
"party-pooper" if he had stayed at home muttering " such barbarity....is unethical".
Today - Monty Python visiting a Spanish bull-fight or bull-baiting in a local town festival - might be disgusted. Few holiday-makers seeking the sun, sangria and the good life would be prepared to boycott Spanish holidays. Furthermore most Spanish people would not agree with the argument that the obsession with frightening, mutilating and killing bulls in a public spectacle - a centuries old local tradition which outsiders do not appreciate - is unethical.
Case Study
The author of this resource (me) is 53 years of age, born in Manchester to a shop keeper in a poor, industrial area of the city. He attended Sunday school at a non-conformist chapel and was a
member of the Scouts. He succeeded, to parental delight, in gaining a place at Grammar
School and going on to university. Today he is an atheist who, nonetheless, regards himself as
guided by learned and useful Christian and humanist values. He has worked in industry as a
personnel and industrial relations manager and
was considerable affected by the UK's industrial unrest and management-labour struggles in the
1960s and 1970s. In terms of politics, he prefers giving room for individuals taking
responsibility and make choices for themselves rather than government intervening unnecessarily
to regulate social life. His mother is 95 years old and lives happily in a local authority
residential home for the elderly.
Recently I reversed my vehicle into a BMW parked behind me. No one saw or heard the crunch - it
was a quiet street on a Sunday.
My vehicle (a minibus with a towing bar projecting from the back which did the
(minor) damage - a small dent in the bonnet of the BMW and the front grill and a smashed number
plate. The mini-bus was not even scratched.
What would you have done in this situation? Knowing what you know about me - what do you think
I did?
Exercise
Write brief notes summarising the position taken up by each side in the "ban hunting and blood-sports debate" in the UK.
How far did the above debate about bull-fighting pre-condition your thinking?
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Relativism or Absolutism? The Nature of the Beast
If morality and ethical behaviour is all down to social and cultural influences on individual
development and not to essential human biology/chemistry, then, it is difficult to suggest
that a concrete, objective, ethical side to "human nature" really exists. The beast is
not inherently good or bad yet in our nature to be influenced by (adopt, adapt or reject)
the moral values and ways of the communities in which we live. Thus the simplicity of the nurture argument.....
Its not my fault that I blew up the cosmetics factory killing 200 people. It is the fault of society that failed to stop my friends and family filling my head with hostility towards those who insist on carrying out experiments on animals! Anyway its is the rest of society that is wrong and we who are right!
Is it all relative or are there some basic moral rules (draw-the-line
absolutes) which all people would subscribe to?
Moral beliefs change over time and differ between different countries, tribes,
different political communities and social classes. We would abhor the practice of public
executions as entertainment yet a day out at Tyburn in the 18th century was equivalent to todays visit to Disneyland, Paris or Thorpe Park. Even within a social group morally-related beliefs need not be homogeneous. Gays and religious devotees will differ about sex practices, abortion and the right of individual choice. Some would argue that it is a woman's right to choose whether or not to terminate an unwanted pregnancy. Others would argue that abortion involves taking a life. - from the point of conception onwards
Relativists would argue that it is all subjective judgement. Who am I to lay down the law for you?
Ethical absolutism.
Subjective feelings about behaviour - matters of opinion and judgement - may never reach the status of universal agreement - yet for those who tend toward an absolute, "you-have-got-to-draw-the-line-somewhere" position, clear-cut values as rules and imperatives which apply to all behaviour are still vital. Many raise from strong views on the "special quality" of being human.
For the absolutist, if a pot pourri of moral beliefs are all that we have and the goal-post can be moved at whim then who is right and who is wrong? How do we
demonstrate/prove that A is right and B is wrong? How do we protect our own liberties and the benefits to be gained from an open society? A relativist would be very sceptical of a
universal moral rule where there is no fixed moral knowledge but for an absolutist (universalist) certain basics are universal .... "although socially constructed - we are not moral nihilists". Some basic positions must be supported and applied by all people
regardless of belief, creed, following etc. Such rules, a realist would say, are a form of truth
(knowledge).
What kind of universals can be tabled?
- protect the young?
- don't cause sentient beings unnecessary, harmful pain ?
- don't murder innocent human beings ?
- outlaw slavery ?
- basic honesty in your deailings with others ?
The moral absolute problem is one of the exercise of power over others. One culture or group or individual can impose its moral values (an ideology) on another. History is populated with tyrants or self-righteous, crusading people who avow that "my moral truth is the correct one". Yet is the cultural and ethical interference of Eurocentric moral imperialism with its avowed "democratic" commitments obviously arrogant and wrong? The relativist view would be; stand back; leave people to live their own lives; do not interfere with other peoples' culture and social preferences.
Exercises
- From your own position of values, would you "live and let live" or reject this and intervene to prevent what you see as harm being done in each of the following cases.
- the practice of polygamy
- cannibalism and making human sacrifices to please the Gods
- ethnic cleansing
- bribery to officials and business people to get things done
- queue jumping where the rich can get to the front of the hospital queue first
- selling arms to totalitarian regimes
- killing tigers, farming mink and using small animals for the testing new medicinal products
- Evaluate the moral values, absolute and relative, that are evident in
Starfleet General Orders.
What guidance would these fictional regulations offer a multinational corporation in drafting a "Corporate Policy for Ethical Behaviour of Staff"?
Absolutists would "tut" at items listed in Exercise 1 above and suggest that regardless of differences between one group and the next certain basic, core values and rules are always true and should always be applied. A tribe may believe that if babies are sacrificed then everyone will benefit because the rains will come - but the existence of such a locally accepted belief does not necessarily make it valid and exceptable in an open, world system. Similarly just because there is an accepted political or religious belief - this does not mean that the belief is valid in itself. Neither does it mean you or I would give equal value to the views or community practice of another group over our own. Thus equestions must be asked about the assumptions and weaknesses of concepts of equality.
Politics and Competition
Here we enter the realm of politics where there is competition between values and beliefs. These extend to the need to protect our own values and beliefs from intrusion or persecution by others whose own views are not respected and are seen as unacceptable.
Thus an absolutist would argue that some moral beliefs and value positions are categorically true and whereas others are not. Our problem is in defining what is the categorical - the core values and securing their universal acceptance.
Absolutists claim that core values enable societies to exist and prosper yet the Nazis in Germany laid claim to clear, cohesive social rules - but few decried the way in which "democratic" allies interfered with Fascist values. Yet even after evidence of persecution and ethic cleansing in Kosovo, we still face political debate over whether or not it is right to interfere in " sovereign rights" and domestic affairs of a country. At best, where dilemmas of ethical judgement occur, we need to debate the issues and find practical and negotiated solutions to minimise the harms that we feel are being done.
This resource was written by Chris Jarvis © for the BOLA project.