Ethics, Management & Governance: Interests, Values, Traditions, Slides of Commercial Law

Download Ethics, Management & Governance: Interests, Values, Traditions and more Slides Commercial Law in PDF only on Docsity! Ethics, Management and Governance Docsity.com Why is there such interest today in ethics, management, leadership and governance?  Financial scandals, increased regulation, convictions of executives, Sarbanes-Oxley…  KPMG International/CEO Study, 2005: Corporate Ethics = + reputation and social legitimacy; attraction and retention of motivated employees; competitive and financial advantages  Archie Carroll: Increase in “strategic philanthropy” by companies, integrating corporate goals and community needs  Milton Friedman (BusinessWeek, August 2005): “Ethical public relations” are to be encouraged, if they profit shareholders Docsity.com Example of Confusion: Enron Is the Enron scandal…  Financial?  Legal?  Cultural?  Moral?  Ethical? Docsity.com Ethics: Critical reflection and basic desire to live a “good” life? Charles Taylor’s notion of hyper-good: “While I naturally want to situate myself in relation to all of the goods…recognizing that my life excludes a hyper-good can prove devastating…for it touches the very roots of my being as a person. But…the distinction of a hyper-good fragments the other goods that are judged to be inferior.” Charles Taylor Philosopher and political scientist, McGill and Oxford Docsity.com Hyper-Goods: Keystones that ensure the equilibrium between systems of thought, action and existential meaning Strategic keystone for the equilibrium of the system = “g” Ethics: Critical reflection on keystones and choices Docsity.com Number of Ethical Traditions (defending different hyper-goods) considered in:  Business ethics (academic) : 1 - 5  Business ethics (corporate) : 3 - 5  Moral philosophy (classical) : 20 - 25  Moral philosophy (contemporary): 100 + Tendency: Fragmentation  Pluralism Adapted to a simple world  complex Docsity.com Business Ethics ≈ 5 Traditions (more or less developed) Academic: Ex. Journal of Business Ethics Corporate: Ex. 1999 OECD Report, ERC 2003, KPMG 2005 Deontology: Jeremy Bentham, Emmanuel Kant Affirmative action, codes of ethics Utilitarianism: John Stuart Mill Neo-liberalism, law of the market, self-regulation Ethics of rights, contractualism: John Locke, Jean-Jacques Rousseau Paternalism: Models, codes of values, mission statements, P.R. Justice and equity: John Rawls Corporate Social Responsibility (CSR) Virtuous character: Aristotle Stakeholders Theory Docsity.com Classical Moral Philosophy ≈ 25 Traditions Western Men Western Women Others Thomas Aquinas Martha C. Nussbaum Aristotle Elisabeth Cady Stanton Saint Augustine Jeremy Bentham Ciceron John Dewey Friedrich Engels Epicurus Michel Foucault Jürgen Habermas Alexandre Hamilton G.W.F. Hegel Thomas Hobbes David Hume Emmanuel Kant Abraham Lincoln John Locke Martin Luther King Jr. Nicolas Machiavelli James Madison Karl Marx Thomas Nagel Friedrich Nietzsche Robert Nozick Pericles Plato John Rawls Jean-Jacques Rousseau Adam Smith Baruch Spinoza John Stuart Mill Docsity.com (I)Traditions Included/Project 1. Ancient Foundations Rigoberta Menchu Tum Native Ethics - 2000 ? - Guatemala, world Hammourabi Imperial law -1792 -1750 ? Mesopotamia Moses Decalogue -1527 - 1407 ? Egypt Buddha Ethics of Awakening -560 - 480 ? India Confucius Ethics of Rituals -551 - 479 China Plato The Good, the True and the Beautiful -428 - 347 Greece Aristotle Virtuous Character -384 - 322 Greece 2. Rationality Thomas Hobbes Ethics of Survival 1588 – 1679 England Adam Smith Commercial Society 1723 – 1790 Scotland, England Emmanuel Kant Categorical Imperatives 1724 - 1804 Germany Jeremy Bentham Deontology 1748 – 1832 England John Stuart Mill Utilitarianism 1806 – 1873 England 3. Politics Karl Marx Egalitarianism 1818 – 1883 Germany Milton Friedman Neo-liberalism 1912 - USA John Rawls Contractualism 1921 – 2002 USA Anthony Giddens Politics of the 4th Way 1938 - Germany Docsity.com (II)Traditions/Project 4. Power Nicolas Machiavelli Political Realism 1469 - 1537 Italy Hannah Arendt Totalitarianism 1906 - 1975 Germany Aung San Suu Kyi Ethics of Resiliance 1945 - Burma Martin Luther King Jr. Non-Violent Evolution 1929 - 1968 USA 5. Identity Jean-Jacques Rousseau Social Convention 1712 - 1778 Switzerland Friedrich Nietzsche Ethics of the Superman 1844 - 1900 Germany Charles Taylor Hyper-Goods 1931 - Canada 6. Social Émile Durkheim Ethos 1858 - 1917 France Simone de Beauvoir Feminine Ethics 1908 - 1986 France Jürgen Habermas Ethics of Discussion 1929 - Germany Eleanor Roosevelt International Charters 1884 - 1962 USA Wangarie Mathai Community Activism 1940 - Kenya 7. Ecology Charles Darwin Ethology 1809 - 1882 England Rachel Carson Ecocentric Ethics 1907 - 1964 USA Gro Harlem Brundtland Sustainable Development 1939 - Norway Jane Goodall Animal Ecology 1912 - England Docsity.com (III)Traditions/Project 8. Business Henry Ford Paternalism 1863 - 1947 USA R. Edward Freeman Stakeholders Theory 1951 - USA Archie B. Carroll Corporate Social Responsibility (CSR) 1940 - USA Francisco Van der Hoff Equitable Commerce 1937 - Holland, Mexico Rochedale Society Cooperatism 1844 - England Anita Roddick Corporate Activism 1942 - England 9. Developmental Lawrence Kohlberg Moral Psychology 1927 - 1987 USA Carole Gilligan Ethics of Care 1936 - USA Paul Ricœur Narrative Ethics 1913 - France 10. Transcendence Henri Bergson Ethics of the Witness 1859 - 1941 France Simone Weil Spirituality of Work 1909 - 1943 France Mohandas Gandhi Experiences of Truth 1869 - 1948 India Hans Küng Global Ethics 1928 - Germany Dalaï-Lama Ethics of Compassion 1935 - Tibet 11. Emerging John Dewey Pragmatism 1859 - 1952 USA Hans Jonas Principle of Precaution 1903 - 1993 Germany Nelson Mandela Moral Leadership 1918 - South Africa Amartya Sen Ethical Economy 1933 - India, USA Docsity.com R&D Project 1. Book and multi-media website  Choice of major ethical traditions (50?) Three criteria: 1. Conceptually different in terms of their hyper-goods 2. Relevant for management, leadership and governance 3. Five affirmations for each tradition, validated as statistically distinct  7-8 page chapter on each tradition, jargon-free: 1. Summary of the tradition and its hyper-goods 2. Implications for management, cases and tools 3. Limits and dangers  Multi-media website 1. Complementary readings and resources 2. Films, videos, art, interviews 3. Statistical comparisons by profession, industry, country… Docsity.com R&D Project 2. Computer-based diagnostic tool (I)  Computer-based questionnaire: 5 affirmations for each tradition, evaluated from 1 to 6 “Strongly in disagreement,” “Strongly in agreement”,” presented randomly  Examples of affirmations: “Considering that we lack consensus on ethics in our modern societies, only the mechanisms of the price-setting market can determine what has value.” (Milton Friedman) “Since the egotistical and violent instincts of humans aren’t ethical, an absolute authority must be established to ensure peace through force and law.” (Thomas Hobbes) “Our ethical suffering arises from the purely materialistic development of technology and cannot be resolved except by a spiritualization of work.” (Simone Weil) Docsity.com R&D Project 2. Computer-based diagnostic tool (II)  Second part of questionnaire: Ethical strategies and tools used in the organization: Affirmative action; code of deontology; value statement; ombudsman; protection for “whistle blowers;” corporate social responsibility (CSR); sustainable development; stakeholders management; visits to developing countries; ethics committee on the board of directors, etc.).  Evaluation (1 to 6) of the effectiveness of these strategies and tools, and of their level of use.  Third part of questionnaire: Demographic data (age, sex, education, profession, culture, etc.) and basic data on the organization (size, climate, sector, degree of diversification, revenues, profitability, country of origin, etc.) Docsity.com R&D Project 3. Dialogue Circles To develop within an organization, an ethical system requires: 1. A community 2. Respectful dialogues 3. Different space-time dimension  Dialogue circles of 20-25 managers, executives or directors and other partners, focused on the ethical challenges and practices in the organization  Dialogue session guided by 3-5 chapters on the major ethical traditions, their hyper-goods and implications for management  Coaching between sessions, if necessary, and strategic links between dialogue circles, management committees and the board of direction See the “Guide to the Introduction and Facilitation of Dialogue” and the demonstration video on the website of the Chair Docsity.com Integral Ethics in Management 4 domains X 3 levels… in which the elements of the major ethical traditions are distributed A. Ethical sensitivity & discernment B. Courage to act morally, competence Culture, climate and values Ethical tools & business processes C. D. Potential of regrouping the 50 + ethical traditions into 12 generic approaches. Hypothesis to be tested… Ethics in management ≠ perfection. Goal is first to go from level 1 to 2, with level 3 representing an ideal. Docsity.com Ex. Implications of Certain Traditions (4 domains X 3 levels, to be validated by scientific research) 3. Study, meditation, service: Dalaï-Lama, Mandela, Weil... 2. Humanistic development: Gilligan, Kohlberg, Rousseau 1. Individualism, market rule, respect for law: Friedman… 3. Development of virtuous character: Aristotle, Confucius… 2. Effectiveness of action: Machiavelli… 1. Behavioral control: Bentham, Ford… 1. Imposition of social norms: Hobbes… 2. Moral education: Durkheim, Carroll, Freeman… 3. Pluralism, criticism: Arendt, de Beauvoir, Luther King... 1. Calculation of costs and benefits: Stuart Mill… 2. Collective decision-making: Habermas, Rawls, Rochedale… 3. Ecology of mind, resilience: Gandhi, Goodall, Ricoeur, Kyi A B C D Docsity.com Simone Weil Philosopher and Activist, France “Mindfullness is necessary for becoming conscious of even the most simple realities. The person who would invent a method for rallying people together without a degeneration of their thinking processes would produce in history a revolution comparable to that which resulted from the discovery of fire, of the wheel, of the first tools.” Docsity.com Comparison of this R&D project with other approaches to ethics (I) Corporations, Organizations Business Schools Philosophy Departments Proposed R&D Project Obediance and punishment. Ex. Deontological codes Acquisition of patterns: Fictional cases Archaeology of knowledge: 25 traditions, mostly Western Pluralist archaeology: 50 + traditions → 12 ? Socialization. Ex: Value statements Rationality: Decision models Philosophical debate: Logic, principle of non-contradiction Scientific approach: Innovative, computer-based tool Strategic P.R., aligned with financial interests; CSR attempts Scientific research: 1-5 Western traditions Public involvments: publications, social debates, media, ethics committees… Individual and collective process based on real cases and links with strategy, governance Docsity.com Comparison (II) Ethics: Need for dedicated space-time? Training for senior mgt. per year in ethics/CSR Time commitment per year expected of board members Additional time proposed per year for dialogue  63.5%: 1-2 hours  80.8%: 4 hours or -  7.7% : 8 hours or +  10 formal meetings with a pre-defined agenda, of which 2 aren’t attended by the chairperson and/or CEO  10 supplementary meetings, real or virtual, without a pre- defined agenda  Source: KPMG Report, Canada, 1000 organizations (80% private), 2002  Source: Report by the Caisse de dépôt et placement du Québec, 2003  Dialogues, guided by ethical traditions on current and emerging issues Docsity.com