Business Ethics and Theology
What is the moral challenge of globalization with regard to business practices?
- The challenge is for rich and strong countries not exploiting third world or developing countries. - Potential of aiding the exploitation of human workers and rights - Globalization is just an enlarged version of local markets.
2. Discuss Baird's Model for Ethical Decision Making.
Step 1: Be Attentive - Pay attention to what is happening around us - Thought in Buddhist philosophy - mindfulness: noticing what is happening without judgment - Finding out what we do not know - Find out what info is missing and what details have been ignored - Finding the facts, as well as knowing yourself, our motives and nature and our identity - Each of the four lenses anticipates that the ethical decision maker will view the context from different vantage points - The ethical decision maker has to have well developed moral sensibilities and be able to see ethical issues. Have to use tools of critical thinking to resolve the problem Step 2: Be Intelligent - Identify the stakeholders present in the situation - Evaluate the values in tension - Identify the competing individual community values that underlie the ethical conflict - Use the process of critical inquiry to determine what is accurate and trustworthy in what we see - What is the true state of affairs? What is happening around us? What is the most reliable data we have? - Seek to learn the best available info available and how to live well in this world Step 3: Be Reasonable - Must choose among competing values (we must judge among many good things and multiple goals) - Opportunity to assess the truth or falsify of another's statements as we discern for ourselves what is true as well as determine what we prefer - Analyzing what will or will not work (feasible or not feasible) - Move towards the greater good, to find the best result given what we know about the world and the humans that inhabit it - We must evaluate multiple courses of action against varying criteria for excellence - Look carefully at all aspects of the problem - Determine which values that should be emphasized Step 4: Be Responsible - Correct for personal biases and attend to the common good - Move away from blind spots and selfishness, become self-reflective and self-regulating - Pay attention to motives and actions - See what is right even when we don't particularly want to - Choose what balances the competing values in the community - Think about the greater picture (everything on our planet is connected) - Chose what will benefit us and those around us Step 5: Returning to Awareness - A Reprise - After going through the four steps, Baird invites us to pause and reflect - After we act, we have an opportunity to notice the intended and unintended results - Learn about ourselves - Figure out our strengths and weaknesses - Process of continuous self-awareness and self-regulation lets us see where our actions fail - Noticing where we need to restrain our desires - Our world intersect with each other in a lacework of fractals - seemingly random events that create exquisite patterns of life - As we move in the world, others decide what our actions mean and the context in which they want to hold the event, and we need to attend to their interpretation as well
What does it mean to speak of business as a moral institution?
- A business in its essence is a moral institution - it imposes some moral obligations that are inherent in its own ends, structure, and modes of operation. - those who labor in the business have many moral responsibilities Those who do not agree: - they fall prey to a common aristocratic prejudice - they diminish the prospects of the free society
What about business and humans rights? Does business have a responsibility to promote human rights?
- Business leaders should not be passive, but actively seek to show what they stand for, economically and in the moral dimension of their corporate existence - business corporations carry within them certain important moral virtues, such as the principles of creativity and community - Business corporations are crucial institutions of civil society, build on foundations such as rights of association, property, individual economic initiative and others - Most importantly, businesses are unified by the mutual respect that one human being owes another.
Articulate the Christian understanding of property
- Creation, Fall, and Redemption provide the context for understanding the theological understanding of property. - Property is a gift; as a gift, we cannot use it as a source of our own righteousness - Creation stands as a rejection of "private" property in the western legal sense of the term. -Property is held in trust. There is no private property against God. - In life, property is not fully mine, I cannot exploit it, it is not a means of justification nor evidence of sanctification. - Our relationship with property mirrors the fall and holds open the promise of redemption. - Individuals from different backgrounds behave differently because of reasoning process
Does business have environmental responsibilities?
- Sustainability is a prudent, long term strategy - the unmet market potential among developing economies can only be met in sustainable ways - significant cost savings can be achieved through sustainable practices - competitive advantages exist for sustainable businesses - sustainability is a good risk management strategy Economic sustainability eventually causes market failures such as: - Externalities - No open/free market exists to create a price for important social goods - Failure to realize and understand pollution issues - These market failures raise serious concerns for the ability of economic markets to achieve sound of environmental policy Possible solutions: - Internalize external costs - assigning property rights to un-owned goods such as wild species
Discuss DeJardins' Model for Ethical Decision making
- The model speaks about the goal of ethical decision making involving three important components: Understanding ethical issues, analyzing them, and becoming sensitive to the importance of ethics. He does not provide strict rules for ethical decision making, but he emphasizes the process of responsible decision making. Deciding how to act, how to live, who to be, are the fundamental challenges of living an ethical life. The following decision making model can help in this process: Step one: you must first have a fair and accurate understanding of the situation. You need to know the facts, you can't let emotions steer your line of thought and decision making. - Step Two: Identify the ethical issues involved: -- Explaining the ethical issue Step Three: Identify all of he stakeholders and how they will be affected: --- Who are the stakeholders in a decision? --- How will they be harmed or benefited? --- What is owned to them? Step Four: Employing moral imagination to understand alternatives: ---What choices are available? --- Put yourself in another person's situation --- Consider how your decision will be interpreted from another perspective Step Five: Consider how others will judge your decision Step Six: Make the decision then monitor and learn from the results
Discuss the Pillars of a just and abundant society
- The pillars illustrates the relationships between governments and markets at the local and national level. it conforms to Christian teachings and respect economic insight about such things like improving efficiency. - The three pillars of a just and abundant society are (1) democratic government: exploration of a wide range of alternatives, choices and values (2) the market economy (3) and strong religious and cultural institutions. These three pillars produce a rich variety of solutions to meet social, economic, and spiritual needs.
Define Trust and loyalty. Do all employees have a responsibility to be trustworthy? to be Loyal?
- Trust: to trust someone is to be confident in and rely upon their judgment when one is vulnerable to their decisions. Employees have a responsibility to ensure that their judgments are informed by the best professional standards available. A business firm ought to be able to trust that employees will keep their commitments, but it has no ethical basis to expect employees to go beyond this and sacrifice for the firm. - Loyalty: willingness to make personal sacrifices in the interest of the firm and, following the model of agency law in which agents have a legal duty of loyalty, it is often claimed to be loyal employees. Philosopher Ronald Duska argues that employees have no responsibility of loyalty to their employers. He believes that it is not loyalty that makes the business successful and rather that it is the self-interest towards profit that drives the business
Describe the ethical dynamics of diversity. How does diversity impact corporate culture?
- When an organization recruits individuals from diverse culture, the may bring varying ideals of what is right and what is wrong to the workplace. - There is a possibility that the ethical values subscribed to by the organization will undergo transformation. - Ethical values go groups and individuals are reflected in organizations corporate culture - Corporate culture is reflected in organization code of ethics ( norms, customs, beliefs, standards, and values) unique to each corporation. - Corporate culture can have a profound impact on the ethical standards and moral practices of individuals in organizations.
What does it mean to speak of business as a calling? What are the four characteristics of a calling? (Novak)
A calling is something we get the greatest pleasure and satisfaction from. The four characteristics of a calling is that it is unique to each individual, it requires certain preconditions, it reveals itself by enjoyment and sense of reward, and they are usually not easily discovered. Point of business is to accomplish something, contribute to society, do something of value, provide something unique, test a person's talents and character 4 characteristics of a calling 1. each calling is unique to the individual. 2. a calling requires certain preconditions: talent or specific ability in that area., love for the specific calling and the challenges that come along with it. 3. a calling reveals itself to us by the enjoyment we receive and the renewed energies it brings us each time we practice our calling. 4. Callings are not easy to discover. they require many trial and error attempts before finding a true calling.
What do Claar and Klay means when they talk about "Creation Care?" (Stewardship, theological justification)
Claar and Klay make the argument that many environmentalists hate Christianity. By destroying pagan animism, Christians made it morally acceptable to ignore nature's "feelings" of natural objects like rocks, trees, insects, and plants. Christians are incompatible with appropriate relationships between humans and the environment. However, Christians are called to be good stewards of God's creation. They must exercise caution and wisdom when pursuing environmental goals. When it comes to pollution C&K says that the optimal level isn't 100% clean up, neither is it 0%. The optimal level of pollution cleanup lies at the point where we decide additional cleanup is not worth the time, trouble or money. Societies will clean up their environment to the point where it is "good enough" and then move on to more urgent tasks. People can exercise good stewardship by making a difference wherever people may be, and using whatever gifts we have been given. That is, caring for the creation. It demands us for a thorough consideration of all costs and potential benefits of any proposed action. Relying on emotion alone may not produce the most optimal and efficient results.
Does business have a corporate social responsibility? (DeJardins, article Friedman+, shareholders vs. stakeholders)
DesJardins: There are several different theories regarding corporate social responsibility. There's the M. Friedman theory that argues that the only social responsibility corporations have is to maximize profits for the shareholders, the only constraint being the law. At its most libertarian extreme, this view also argues that the only appropriate laws are those that protect property and prohibit fraud and pressure. A more moderate theory is Norman Bowies'. He argues on Kantian grounds that beyond obedience of the law, business has an ethical duty to do no harm. At its most extreme, the only harms recognized as ethically legitimate would be those that violate the rights of other people, but a broader understanding of harms would lead to broader conception of business responsibility. Stakeholder theories essentially develop this notion by identifying ethically legitimate stakeholders other than investors and by articulating the specific duties that are owed to them.
Compare and Milton Friedman's theory of corporate responsibility to R. Edward Freeman's stakeholder theory.
In "The Social Responsibility of Business is to Increase Its Profits," Milton Friedman makes the argument that corporate executives are employees of the owner, and their only job is to maximize profits. Because the profits belong to the shareholders, the executive can't use that money for acts of "social responsibility," or do something that will decrease the profits. Spending money that isn't his on "social responsibilities isn't right for two reasons. First, principle because the imposition of taxes and the expenditure of tax proceeds are government functions, thus not something for a businessman to decide. Second, consequences because how does he know what is best for people? So the only "social responsibility" an executive or the business has is to maximize shareholder profits while following the rules and laws of the society. In "Managing for Stakeholders," Edward Freeman outlines the view of business where the basic idea is that businesses, and the executives that manage them, actually do and should create value for customers, suppliers, employees, communities, and shareholders. They need to pay attention to how value gets created for these stakeholders. He contrasts this idea with the dominant model of business activity, which believes that businesses should be managed only for the benefit of the shareholders, which is the idea Friedman talks about. Freeman believes that the stakeholders should not be treated as means, and to be a part of the end, they have to participate in determining the future direction of the firm they have a stake in. His way of solving conflicting stakes is by appeal to the Doctrine of Fair Contracts, the idea of fairness that ensures a basic equality among stakeholders. The responsibility of the business should be to manage it so there is a balanced benefit of the stakeholders.
What are the lenses that Baird develops and what are the core values upon which they are based?
Right/responsibility lens: - Deontological tradition with a rights/duty focus - Emphasizes the rights of individuals to determine the principles that govern how they should best live Results lens: - Teleological tradition with a goal focus - Encourages individuals to choose goals that will make them happy in light of changing needs and desires. Relationship Lens: - Deontological tradition with a justice/system focus - Determines when and how a community interest should take priority over individual interest in the name of justice Reputations Lens: - Teleological tradition with a virtue/character focus - Explores how character is shaped as individuals respond to community expectations.
What are the Christian principles and values that undergird a flourishing and just economy?
The Bible and the church are consistently teaching that to love and to pray to God are meaningless unless they cause Christians to behave differently in the real world than they would without spiritual guidance. Four Biblical teachings that relates to a just and flourishing economy: - Humans are given the calling and responsibility of stewardship, to manage resources in the best interest in service to others. - Humans are created to enjoy creations and to show gratitude for it, respecting God for the gifts of creations. - Human beings have an obligation to work, work is a calling where people have an opportunity to meet their personal, family, and community needs. - Society must take responsibility for the poor. Lastly, human beings are called to develop resources and apply their talents, in the exercise of stewardship. These biblical teachings help us as humans to build a flourished society and economy, by making sure that people take responsibility for their stewardship of God's creation and supporting their self-interest, family and community through work.
What does character have to do with business leadership? How is character formed, theologically and ethically? (Novak, DeJardins)
Virtue ethics is the tradition within philosophical ethics that seeks a full and detailed description of those character traits, or virtues, that would constitute a good and full human life. Rather than describing people as good or bad, Virtue ethics encourages a fuller description. Virtue ethics is also prescriptive in offering advice in how we should live. Virtue ethics asks us to examine how character traits are formed and conditioned. They are habits that we learn by doing over and over. They are formed through socialization. In business we are socialized to make a profit and being successful. Look at the actual business practices we find and ask what type of people are being created by those practices. So the question is how to handle those practices. Business practices are molding you, and it is an aggressive culture. Many individual moral dilemmas that arise in business can best be understood as arising from a tension between the type of person we seek to be and type of person business expects us to be. That is why it is so important for business leaders to take ethics seriously. The company's values are reflected by the leader's character. If the leaders are unethical, their employees will follow in their footsteps, voluntary or not. If the goal of corporate culture is to cultivate values, expectations, beliefs, and patterns of behavior that is best and most effectively support ethical decision-making, it becomes the primary responsibility of corporate leadership to steward this effort. Leaders are charged with this duty in part because stakeholders throughout the organization are guided to a large extent by the "tone of the top." Capitalism is morally neutral, however it depends on human capital that is founded by virtuous habits. Virtue is built up, nourished, criticized, celebrated, revised and kept vital by entire nations. Virtue is public as well as a private reality. Virtue is learned in the social context. We learn from others how to improve our moral skills and ourselves. There are three fundamental virtues of business: creativity, building community, and practical realism. Creativity needs courage, hard work and persistence. Building community needs honesty, generosity, and a spirit of justice. Realism implies a capacity to listen, stay alert, pay attention, and take a broad view, as well as the capacity for self- criticism and self-correction.
Identify and describe the seven internal obligation of a business:
▪ (1) To satisfy customers with goods or services of real value • - Honesty and openness ▪ (2) Make a reasonable return on the funds entrusted to the business corporation by its investors • - Also must account for a social responsibility • - Can only be met after #1 is met ▪ (3) To create new wealth • - Organizations invest in business, they donate excess wealth to non-profits and charities, these charities invest into those in need • - Adam Smith "Universal Opulence" = the real wages of workers grows over time, until the poor live at a level even kings in 1776 did not enjoy ▪ (4) To create new jobs • - Better to generate enough jobs for all willing citizens rather than to provide government grants that keep them permanently dependent ▪ (5) To defeat envy through generating upward mobility and putting empirical ground under the conviction that hard work and talent are fairly rewarded • God forbade greed 7 times • - Best method is to generate economic growth through many diverse industries and initiatives • - When people see subtle positive changes, they don't compare their position with their neighbor, rather their position in the next 3 years. ▪ (6) To promote invention, ingenuity, and in general, progress in the arts and useful sciences • - The great social matrix of such invention, discovery, and ingenuity is the business corporation ▪ (7) To diversify the interests of the public • The economic interests of some citizens are, in an important sense, at cross-purposes with the economic interests of others, and this is crucial to preventing the tyranny of a majority
What is the moral significance of the "universal priesthood" of believers, vocation, and occupation from self to service
● Universal Priesthood: We are the chosen race. It is our duty to god to contribute and participate to society. ● Occupation must have meaning and significance ● Vocation: a calling to fulfill God's mission in the world ● No distinction between professions. Each vocation is unique. Four characteristics of true vocation: 1. it is unique to each individual 2. it requires talents 3. you must get enjoyment out of it 4. it is not easy to find