Ethics in the International Context

Ethics in the International Context

Tuesday, May13th 2014

Prof. Birgit Weyer, M.Sc., D.M.

20.04.23 International Project Week, Helsiniki 1

1 What are goals of today‘s lecture?

Students are able to understand the context of ethics in business

They know the basic assumptions of how individuals develop morals

They can name business functions frequently concerned with ethical questions

They now how Corporate Social Responsibility is defined and how it can be measured

20.04.23 Unternehmensethik 220.04.23 2International Project Week, Helsiniki

2.1 Definition Ethics und Moral

Morals = Norms and values in action = Behavior

Ethics = Clarification and justification of these norms and values based on reflection


2.2 Ethics in the Business Context


(Source: see Waibl, 2005)

2.3 Ethics – a Science

20.04.23 520.04.23 5International Project Week, Helsiniki



3. How We Develop Morals


´3.1 Nature or Nurture?

Experiment streetcar out of control15 workers in deadly danger, what would you do? Switch the tracks – 1 innocent man dead, push the heavy-set person, do nothing?

300.000 people questioned

Religion, education, age, culture are not a factor

Moral is nature not nurture(Marc Hauser, Cognitive Psychology Harvard Universität)

Wir don‘t care about side effects,if we don‘t have to act directly!

20.04.23 8International Project Week, Helsiniki

3.2 Do Animals have Morals?

Experiment Primates – Cucumbers or grapes?Franz Deval (Center for primates in Atlanta)

Sense of fairness as basis for moral understanding

Moral beginns with carrying for others- empathy- favours for one another- care for others- making up after quarrels

Advantages for survival by holding back egoism


3.3 Tabula Rasa or Everything There?

Aristoteles (blank slate being written on successively)

Jean Piaget (4 step of development)

Kohlberg (Cognitive theory of development of moral judgement)

Experiment „Is it ok to steal sweets and how would you feel when eating them?“Moral knowledge has categorical meaning (it is bad, but not, it is not allowed)

Moral motivation develops later(stolen sweets taste good to kids up until 11 years of age)

Moral knowledge and moral motivation are different processes


3.4 Do Babys have an understanding of morals?

Babys between 6 and 10 month old

Observation of figures with different colors

Figure tries to climb hill – helper – hinderer are being shown

Later on, babies choose helper

Facial reaction when closeness to hinderer is befriended

Social understanding necessary for moral system


3.5 Universal grammar of moral

Universal principles of morals are natural, not conscious

Differentiation between active and projected passive damage (e.g. assisted death)

Action is evaluated as more negative, even when the result is the same

Moral decision are frequently a reflex and are taken sub-consciously

Intuitive actions should be replaced by rational decisions


3.6 How our brain takes moral decisions?

Prefrontal cortex localized through MRT

However, brain is a network and very complex

Braindamaged patients have no „emotional breaks“, they only act based on the end (e.g. streetcar accident)

Map of the brain is not really researched


3.7 The Moral Dilemma

(Source: see. Kohlberg, 1996)


3.8 Levels of Moral Behavior

3. Postconventionelle Ebene

(few adults afterage 20)

2. Conventional Level

(most teenagers and adults)

1. Preconventional Level (up to 9 years)

(Source: see Kohlberg, 1996)


Levels of Moral Development


① Reward and punishmentPunishment should be avoided and the power of authority should be obeyed

② Keeping the goal in mindInterests and needs are satisfied while living in a world where consideration for others is necessary.

Preconventional level



③ Agreement with others

One wants to fulfill the expectations of loved ones. It is important to have positive intentions and to help others.

④ Orientation toward society

It is good and important to support groups or institutions. Responsibilities have to be fulfilled and law has to be obeyed (unless this collides with other commitments)

Conventional Level



⑤ Social contract and individual rights

Laws are to benefit every one and to protect the rights of all. There should be biggest possible use for the greatest number of people. Life and freedom are values of absolute value.

⑥ Ethical principles

An individual who is reasoned believes in the validity of moral principles and feels personaly obligated. Principles are general believes of fairness, e.g. equal rights.

Postconventional Level

Moral Thinking and Acting are Situational

Component 1: Interpretation of the situation with regard to the effects on our behavior on others

Component 2:State what a moral action would be: Identification of what moral actions would look like in a specific

Component 3:If, conflicting values, select the value which is most important. Decision on whether to act on the value in a particular situations

Component 4: Acting upon and finishing what you intend to do.

(Source: see Rest, 1986)




4. Which Values Give Orientation?


Value Oriented Thinking as Support for Normative Ethics

1. Philosophy (Aristoteles, Kant)(Philosophical ideas give concrete behavioral advise)

2. Society(Businesses are part of the system with norms and values)

3. Law(Basic values are reflected in laws and regulations)

4. Theology(Principles and guidelines reflect religious believes)

(Quelle: vergl. Haupt & Lachmann, 1998)

20.04.23 Unternehmensethik 2220.04.23 22International Project Week, Helsiniki

5. Moral Topics in Business

http://www.scu.edu/ethics/practicing/focusareas/cases.cfm


5.Should Businesses Carry MoralResponsibility?

Who? For Whom? What For?

http://www.scu.edu/ethics/practicing/focusareas/cases.cfm


Beyond legal requirements…

Germany § 14 Constitution

Property is an obligation. Using it should be positive for society.

EU Commission has picked up on this thought in 2000

Greenbook


6. Corporate Social Responsibility

„Concept, which should be the basis for companies to include social matters and environmental matters into business and stakeholder management on a voluntary basis...“

http://www.youtube.com/watch?v=yzvy5IgqTvw

Source: Greenbook, Europäische Kommission, 2001


6.1 What promotes CSR?

Reduced influence of governments due to- Reduced Ressources- Misstrust against regulation

Call for more transparence

Increased customer interest on ethical behavior of companies influencing - Buying behavior- Investment behavior

Battle for employees

Conditions on the supplier market

(Source: http://www.bsdglobal.com/issues/sr.asp) 20.04.23 27International Project Week, Helsiniki

http://www.bsdglobal.com/issues/sr.asp

6.2 Levels of Responsibility

Legal Framework

Society

Core Business

Source: Hansen & Schrader, 2005


Tripple Bottom Line oder 3-Pillar Principal

Sustainability

Ecology Society Economy


Central Elements in CSR

CSR in the Core Business (own company and suppliers)- Environmentally safe production- Minding working norms- Protection of human rights- Avoiding corruption

CSR in society- Corporate Giving (Spenden und Sponsoring)- Corporate Volunteering

CSR in legal framework- Lobbying- Self-regulation

Quelle: Hansen & Schrader, 2005


6.3 CSR Related Concepts

Corporate Citizenship

Business Ethics

Sustainable Development

Corporate Governance

CSR

Volunteering

Foundations

Giving


What are typical measures?

Engagement in society and science(foundations, education, societal support)

Engagement for environment(sustainability, architecture, energy efficiency, recycling, CO2-reduction)

Engagement for employees(development, life balance, equal opportunity, health and safety)

Protection of youth(Behavioral codex)


An Example....


http://www.youtube.com/watch?v=_1YKPF2ycLQ

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Ethics in the International Context

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