Business Ethics
April 29, 2007
“Ethics,” says The Columbia Encyclopedia (Bartleby.com), “has developed as people have reflected on the intentions and consequences of their acts.” Ethics theory encompasses two so-called extremes—“innate moral sense” and “power of discrimination acquired by experience”—and everything in between. My own beliefs fall more strongly into the “innate moral sense” camp.
We businesspeople who care about ethics understand that doing what we know is right doesn’t ensure personal gratification—satisfaction at a higher level, absolutely, but not gratification. “H. A. Prichard [and] W. D. Ross argued that moral obligations are intrinsically compelling whether or not their fulfillment results in some greater good” (Columbia Encyclopedia). I agree, except that I do feel that living up to moral obligations does result in “greater good,” even if it’s not seen or recognized. A clear conscience and a good reputation go a long way.
Regarding business ethics, The Columbia Encyclopedia says, “Managers must balance the ideal against the practical—the need to produce a reasonable profit for the company’s shareholders with honesty in business practices, safety in the workplace, and larger environmental and social issues.” In my view, honesty in business practices and safety in the workplace aren’t always in the same camp as “larger environmental and social issues.” We business owners shouldn’t compromise honesty and safety for the sake of profits, but we might need to weigh other issues against what we believe and value and what’s good for our business.
I enjoyed reading Theodore Roosevelt’s nearly-century-old writing on ethics: “First and foremost, we must stand firmly on a basis of good sound ethics. We intend to do what is right for the ample and sufficient reason that it is right. If business is hurt by the stern exposure of crookedness and the result of efforts to punish the crooked man, then business must be hurt…. On the other hand, we must beware…of being misled by wicked or foolish men who would condone homicide and violence, and apologize for the dynamiter and the assassin…. It is essential that we should wrest the control of the government out of the hands of rich men who use it for unhealthy purposes…. But it would be just as bad to put the control of the government into the hands of demagogues and visionaries who seek to pander to ignorance and prejudice by penalizing thrift and business enterprise, and ruining all men of means…. The tyranny of politicians with a bureaucracy behind them and a mass of ignorant people supporting them would be just as insufferable as the tyranny of big corporations. The tyranny would be the same in each case, and it would make no…difference that one was called individualism and the other collectivism” (from History as Literature, 1913, on Bartleby.com).
And I like the positive attitude of Betsey L. Brewer, 2006–2007 CPCU Society president: “As a broker, I personally feel that we should uphold—even epitomize—ethical behavior in the insurance industry. …By being ethical, you will more than survive. You will succeed” (“Ethics is everything,” Insurance Journal–West Region, March 12, 2007).
