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deals with the specific of moral norms and values. Starting with a description of the
essential elements of norms in general, I used the normative structure to state the
key differences between moral rules and legal prescriptions. I have also defined the
specific social functions of morality and law to explain why we should keep two
distinct kinds of rules in business activities, as well as in any other sector of social
life. Analyzing the basic theoretical models of values, I paid a special attention to
cultural and ethical relativism, which tends to become the dominant axiological
perspective of our times. The merits and the shortcomings of relativism in business
ethics can be assessed in the light of the essential distinction between cultural
relativism a descriptive approach, supported with solid, undeniable facts and
ethical relativism, a normative approach, claiming that universal values are
impossible and should not exist.
No matter how strong our decision to keep the moral norms and to cherish
solid moral values, we confront sometimes complicated situations, which defy our
wish to make rational ethical decisions. Quite often, economic agents investors,
managers, shareholders, employees or consumers wish to do the right thing, but
they simply do not know how. There are too many conflicting interests involved, too
many practical alternatives, too many uncertain consequences. The fourth chapter
presents the most influential ethical theories utilitarianism, Kantian duty ethics,
and Aristotelian virtue ethics. Each one of them builds a conceptual framework and
an analytical pattern, which might help in finding strong arguments for the best
ethical decision under specific circumstances. These ethical theories cannot answer
a fundamental key question: why should one strive to act ethically in business? If
one really believes he or she should do ethical business, ethical theories can help in
making right decisions in complex situations. What can we say if one simply denies
that he or she should try to make profit acting in accordance with some ethical
standards?
The fifth chapter tackles probably the most important and no less controversial
topic of the so-called enlightened self-interest. Based on the logical analysis
specific to the game theory, the self-interest approach holds that one shrewd,
intelligent business leader should keep ethical standards since Good ethics is good
business. In a cold, pragmatic, and strictly rational perspective, moral norms and
values are not intrinsically worthy; however, paying them respect promises to
enhance profit over the long run, since a good moral reputation can attract devoted
consumers, stimulate dedicated employees, convince serious suppliers, etc. Applied
to competition and cooperation in business, game theory suggest that the best
winning long-term strategy should mix competitive aggressiveness and calculated
availability for cooperation with different categories of stakeholders. In my analysis,
this is a superficial understanding of the last logical and practical consequences of
game theory. In fact, enlightened self-interest recommends the immoral cooperation
between companies, which are supposed to compete for their exclusive benefit
and contrary to the legitimate interests of consumers, employees, local
communities, the state, etc. Besides, one should question if acting ethically in
business only for the sake of maximizing profit is morally worthy. In my opinion,
and according to the most influential ethical theories, it is not.
The sixth and last chapter deals with corporate responsibility. This expression
became lately a fad and an empty clich. Everybody speaks of corporate
responsibility be it the case or not. However, this is an extremely difficult concept,
which raises more than one tough theoretical and practical question. Truth is that
moral philosophy developed a language and a conceptual frame that apply to
individual behaviour and personal moral responsibility. It is not at all simple to
transfer the classical terminology and conceptual frame to corporations, which are
fictitious legal persons, deprived of many components of the individual moral
conscience: purpose, intentions, willpower, feelings, etc. This chapter presents the
pros and cons in connection with this tricky topic, trying to argue that, within
certain limits, we have reasons to speak of corporate responsibility, which contains
several forms or levels economic, legal, ethical, and discretionary or
philanthropic.
In my project, a second volume will approach the most significant specific
issues in business ethics, such as ownership and management; business and
employees; business and customers; environmental issues; international business
ethics and global market economy.
But first lets talk about basics.
Dan Crciun
Bucharest, 2012