One more time now …. do business ethics exist?

Do business ethics exist?

Yes business ethics exist but they are not what we think them to be.

In what way?

They are not a code of proscribed activities, ‘thou shalt nots’ or impositions that make business harder than it needs to be. They are not King III, company value systems or  regulatory affairs ‘tick boxes’.

Why is the field of business ethics so complicated.  How about a nice sound bite (or is that byte)?

The term business ethics is overly complicated because it seeks to address both the normative (interpersonal relationships) and descriptive (action driven) nature of business activity.  The term seeks to combine morality with professional codes of conduct, decision making responsibility and organisational ethics – the result being an intricate and complex way to explain human behaviour in the workplace.  

Come on, give it a try … define business ethics in one sentence….

Business ethics are a way to recognise the existence of ethical issues in business and to provide a framework for their resolution.  They also provide an opportunity to reflect on what has been decided/action taken. Was it the right course of action?  Commercially?  Ethically?  Now what are you going to do about it?  If anything?

One more time now … do business ethics exist?

They do and as moral beings we all care very much about how we, and the organisations we work for, behave in the marketplace.

Is it posisble to reconcile the profit motive to ethical business practice?

Is it possible to reconcile the profit motive to ethical business practice? 

Yes but only in certain circumstances. 

Firstly, business needs to be undertaken outside of a traditional business model within a stakeholder paradigm.  Within this construct all stakeholder interests are viewed in an egalitarian sense where it is the role of the Executive to bring about value creation for all. 

Secondly, business needs to be founded upon contractualist theory where all stakeholders are rational, reasonable, free and equal. 

The emphasis is placed on reasonableness so that the third requirement may be met: Reasonableness is defined in terms of ‘Can we all agree, or at least not reject, a course of action?’  Again, the Executive is responsible for framing issues in a manner that leads to one or the other of the available responses without resorting to trade off. 

And fourthly, a virtue ethic account is offered to mitigate the dual role business practitioners play in and outside of business. 

Virtue or ‘character’ ethics is viewed by many in corporate life as being an out dated concept. 

The reality is different in that almost every decision taken as to reward or discipline an individual comes down to a character assessment.  

Certainly King III, the New Companies Act, the Competition Commission all place personal responsibility on the part of a business practitioner fore and centre in any decision relating to right or wrong action.  

Virtue ethics then are as important today in asking ‘What sort of person would do that’?