Business Ethics: A European Review
The study of business ethics: A case for Dr Seuss Michelle R. Greenwood In the begin...
137 downloads
605 Views
107KB Size
Report
This content was uploaded by our users and we assume good faith they have the permission to share this book. If you own the copyright to this book and it is wrongfully on our website, we offer a simple DMCA procedure to remove your content from our site. Start by pressing the button below!
Report copyright / DMCA form
Business Ethics: A European Review
The study of business ethics: A case for Dr Seuss Michelle R. Greenwood In the beginning. . . An analogy can be drawn between the function of business ethics cases for management education and the impact of classic cautionary tales on their audience. No cautionary tale is more `classic' than The Lorax by Doctor Seuss (Seuss 1971). At first glance this short story may appear to be perfect classroom reading for elementary school, but it is not out of place in the tutorial rooms of the modern university or in the training courses of large organisations. Indeed, a number of core ethical issues are addressed with great clarity in both the text and the illustrations of this story. This paper will consider the use of literature in organisation studies generally, and its use as case material, particularly in the teaching of management ethics. It will then illustrate how a children's story, The Lorax, can be used in management education to highlight particular ethical issues. The analysis will be based on a framework for ethical decision making.
The place of literature in the study of organisations The role of narrative fiction in the study of organisations was addressed as early as 1968 (CzarniawskaJoerges and Monthoux 1994: 7). Despite this, very little research and interest in the topic followed, although Monthoux's work provides an exception (Monthoux 1979, Czarniawska-Joerges and Monthoux 1994). More recently there has been a mild resurgence of interest in the topic. Writers such as # Blackwell Publishers Ltd. 2000. 108 Cowley Road, Oxford OX4 1JF, UK and 350 Main St, Malden, MA 02148, USA.
Phillips (1995) and Alverez and Merchan (1992) have brought to the discussion post-modern concepts of narrative and story telling in the organisational setting. Alverez and Merchan believe that narrative fiction has a pervasive claim in management education. They give two reasons for this. Firstly, the emergence of the concept of corporate culture, and its emphasis on values and their embeddedness in organisational symbols, myths and stories has created a role for organisational storytelling. Secondly, the acknowledgment of the importance of an ethical dimension in business has led some management schools to use fiction as a way of teaching moral issues. Given the interest in critical thinking within management it would not be surprising if this link with post-modern theory focuses new attention on the topic.
Literature as case material The literature on this topic focuses on the similarities and the differences between literature and social science case writing. Phillips (1995) emphasises the similarities between the practices of the two. He claims that social scientists often do what writers do; they create rather than discover, they focus on the unique and the individual, and they use illusion and rhetoric to make their case. Similarly, writers often act like social scientists: they test ideas against evidence, they generalise; they pose testable questions about the social world; and they try to remain faithful to details of external experience. He suggests, therefore, that
155
Volume 9
Number 3
there is an overlapping of boundaries, and that there is no specific point at which social science ends and narrative fiction begins. On the other hand, authors emphasise the primacy of the novel over more scientific case studies. Literature offers the possibility to move outside traditional forms of documentation and analysis. It provides organisational theorists with new ways of talking about organisations, and new things to talk about (Phillips 1995). It offers an opportunity to present the organisation in all its truly complex and contradictory forms, since in literature more room exists for doubt, uncertainty, contradiction and paradox. No sense of closure is present; no singular solution is demanded. The novel describes knowledge without necessarily analysing it, thus avoiding the scientific tendency to absurd reductionism (Czarniawska-Joerges and Monthoux 1994). The novel tells a story over time, and many different viewpoints can be included in the text; in this sense it is `live'. Easton (1995) differentiates between case studies that are `live', and case studies that are `dead'. A dead case presents all the information at the start. For a case to be live it must find a way to inject information over time. Narrative fiction also provides a medium for dealing with the affective aspects of organisational experience. It allows the reader to experience and discuss the fear, humour, lust, envy and ambition that drive so much of the behaviour in organisations (Phillips 1995). It draws the reader into an understanding of subjective individual experiences. The novel can reflect the temporality and individuality of experience, and its location in different cultures and traditions. It may provide insight into organisational forms that no longer exist or that may exist in the future. The novel also gives the opportunity to use Weberian `ideal types' in organisational analysis (Czarniawska-Joerges and Monthoux 1994). Caricatures, ironic portraits, satires, metaphors can emphasise, clarify or illustrate organisational behaviour and events; anecdote and rhetoric can be used to support a particular line of argument without invoking methodological distinctions. This use of fiction can provide a setting and an ambience that adds life and interest to academic articles. It can evoke
156
July 2000
feelings and images, and can provide atmosphere to otherwise dry academic discussion.
Literature as case material in business ethics Case studies were first used at Harvard Business School as early as 1919, and the case study method has since become a central method of teaching in many graduate and undergraduate business courses (Beauchamp and Bowie 1993). Easton (1995) notes the large number of variations possible in cases. They may range from a few sentences to hundreds of pages. They may be descriptions of real situations or works of fiction, or incorporate elements of both. They are not confined to business or management learning, but are used in social administration, psychiatry, architectural studies, education and potentially in any discipline. Although written cases are most common, they may be presented as film, audio tape, video tape and more recently via the internet: (the later can even be interactive, for an example see the website at http://www.esocrates.com). A key premise of the case method is that management learning involves a core of universally applicable principles that can be discerned and absorbed through the study and discussion of cases (Barnes, Christensen and Hansen 1994). In the teaching of business ethics it has been observed that case studies are employed most effectively when they can be used to draw out broader ethical principles and moral rules (Beauchamp and Bowie 1993: 43). Case method teaching is assisted by the use of an analytical framework. Decision-making frameworks have been developed by a number of different authors. Many of these frameworks are grounded in ethical theory, and in general they use references to normative ethical criteria and procedural maxims and caveats. For example, Northcott has identified ten core values which provide `guideposts' for ethical decision making (Northcott 1995). These are: caring; honesty; accountability; promise keeping; pursuit of excellence; loyalty; fairness; integrity; respect and responsible citizenship. Whilst there are real
# Blackwell Publishers Ltd. 2000
Business Ethics: A European Review
differences between some of these frameworks, there are also strong similarities. Most writers use a model of case analysis which involves a summary of the case (key players and events), identification of the issues and discussion of the issues raised by the details of the case, development of criteria for evaluating the case, development of alternative courses of action for the various players, evaluation of these alternatives, and finally a recommendation as to the most preferred course of action. This simple outline will form the basis of the case analysis that follows.
The Lorax as a business ethics case The literature considered suitable for use in management education varies greatly in its literary merit, its temporal and cultural setting and in its narrative style. It ranges from works by Zola and Kafka to The Firm by John Grisham. But even in the most eclectic of collections considered for management education (see for example CzarniawskaJoerges and Monthoux 1994, Coles 1989) The Lorax would be unique. This narrative is a distinctive and brightly illustrated children's book of only fifty pages. Nevertheless, these features enhance many of the characteristics that make it particularly suitable for use in management education. As previously noted, case studies within management education should encompass universally applicable principles that may be identified and analysed through study and discussion. The reader is likely to experience sympathy for the endearing characters and to appreciate the humour of the story. Indeed, many students have fond childhood recollections of Dr Seuss stories generally, if not specifically of The Lorax. The characters are portrayed as caricatures, the plot is metaphorical, and the symbols are transparent, universal and not tied to particular temporal or cultural contexts. The Lorax is written in beautiful poetic prose and has striking colourful illustrations. The students respond overwhelmingly to the whimsical nature of the story, and to the novelty of analysing such a non-traditional case.
# Blackwell Publishers Ltd. 2000
Analysing the case (i) Situation analysis: a summary of the case `Way back in the days when the grass was still green and the pond was still wet and the clouds were still clean. . .' A character called the Once-ler discovered a beautiful paradise and exploited it for all it was worth. Ignoring the warnings of the Lorax, he chopped down all the trees to make useless objects known as Thneads, and in the end created a lifeless desert. Centre stage is the Lorax. This grumpy old wise man is the advocate of social responsibility. He can be variously depicted as the `greenie' environmental activist, the government regulator or the local councillor. He claims to speak for the trees (as they cannot speak for themselves). He also purports to be the representative of the local inhabitants, the barbaloots, and of the non-human species, the swanee swans and the humming fish. He is there to monitor the behaviour of Once-ler, the faceless corporation, the multinational company which comes to this pristine environment and depletes the natural environment only to depart as quickly as it came. The local inhabitants, the brown barbaloots, had been living in the shade of the truffala trees eating truffala fruit for an indeterminate amount of time before the arrival of the Once-ler. They lived in harmony with the swanee-swans that enjoyed the fresh air, and with the humming fish that enjoyed the clean water. However when the Once-ler and his organisation began chopping down the trees these inhabitants could no longer survive in the environment and had to leave. The final result was absolute environmental degradation. The finale shows the Once-ler passing on the final truffala seed to a little boy, who depicts future generations, with much advice on protecting the natural resources in the future.
(ii) Ethical issues: identification and discussion of theory based ethical issues The creation of a product which did not exist before (the dependence effect)
`A Thnead's a Fine-Something-That-All-People Need' The economic world-view argues that the production
157
Volume 9
Number 3
of goods which satisfy the wants of consumers is part of a market-driven cycle which brings benefit to society. Production continues as more and new goods and services are desired by consumers. Despite increasing affluence there is no reduction in the urgency of desires for goods or services. The case in question here describes the development of a new product, a product which did not exist before. This product can serve many functions which are presently provided by a number of existing products. It is, therefore, a potential substitute for these existing products. Galbraith (1984) questions the whole issue of the justification of production based on the urgency of consumer wants. He suggests that if the wants are to be urgent then they must originate within the individual. They cannot be urgent if they have been fabricated, and they must not be contrived by the process of production by which they are satisfied. Hence the Once-ler is not warranted in justifying the production of Thneads, nor justifying the costs of that production by the fact that someone wants it (Figure 1). Figure 1: Extract from The Lorax (Seuss 1971)
``Look, Lorax,'' I said.``There is no cause for alarm. I chopped down one tree. I am doing no harm. I am being quite useful.The thing is aThnead. AThnead's a Fine-Something-That-All-People Need! It's a shirt. It's a sock. It's a glove. It's a hat. But it has other uses, yes far beyond that. You can use it for carpets. For pillows! For sheets! Or curtains! Or covers for bicycle seats!'' The Lorax said,``Sir you are crazy with greed. There is no one on earth who would buy that fool Thnead!'' But the very next minute I proved he was wrong. For, just at that minute a chap came along, and he thought that theThnead I had knitted was great. He happily bought it for three ninety-eight. I laughed at the Lorax,You poor stupid guy! You never can tell what some people will buy.'' The relationship of the company with various stakeholders
Since the 1980s stakeholder theory has developed the thesis that the organisation has a moral relationship with entities other than its owners (Freeman 1984). This claim is based on the
158
July 2000
assumption that an organisation, as opposed to an individual, possesses moral status and therefore has to act in a morally responsible manner. For Evan and Freeman (1988) this concept entailed two significant principles. The first principle, that of not harming the rights of others, is based on deontological ethical reasoning. The second principle, that of being responsible for the effects of the organisation's actions, is based on consequentialist tenets. The authors note that both these branches of moral theory must exist in balance within the modern corporation. Thus, the stakeholder model balances the rights of claimants on the corporation with the consequences of the corporate form. The entities known as stakeholders are commonly described as groups or individuals that are affected by or can affect the organisation. They include owners, employees, customers, suppliers and the local community. Occasionally this definition is extended to include the environment, non-sentient beings, non-human species and future generations. From this perspective the various characters who are affected by the Once-ler's actions, the Lorax, the Barbaloots, the swans and the fish could all be considered stakeholders, and could therefore potentially have legitimate claims on the organisation. Under the broader definition of stakeholders it is also possible to consider the trees and the little boy (a member of the future generation) as having stakeholder rights. The use of natural resources without limit (`tragedy of the commons',`free riders')
`I chopped down one tree, I am doing no harm' Traditionally, business has considered the environment to be a free, almost limitless good. Natural resources have been seen as available for business to use as it saw fit. The belief that corporations can access natural resources with no constraint and no cost to themselves has promoted wasteful consumption and can lead to disaster. The consequences of this attitude are described in a modern parable `The Tragedy of the Commons' (Shaw and Barry 1995). Imagine that peasants are allowed to graze their animals in the commons, the collectively shared pasture. It is in the interest of each to permit his or her animal to graze
# Blackwell Publishers Ltd. 2000
Business Ethics: A European Review
without limit. But the result of all doing so is that the commons is soon overgrazed, making it of no grazing value to anyone. Each believes that his or her own use of the commons has a negligible effect, but the cumulative result can be the gradual destruction of the public good. This story can be generalised and understood in the context of modern corporations. It illustrates the point that there can be a difference between the private costs and the social costs of corporate actions. Such social costs of business activities are referred to by economists as `externalities'. Unless some way of recovering these costs from businesses can be found ± for instance via taxation ± businesses assume the status of `free riders' in society. Distinction between human and non-human species
The case does not differentiate between human and non-human species. The inhabitants of the land, the Lorax and the Barbaloots, are not presented as identifiable humans. In fact, the only clearly human character in the case is the little boy who is handed the seed for the future. Many writers have argued that sentient animals have significant moral rights based upon their capacity to have interests and valid claims (Singer 1993, Partridge 1990). If it is argued that any being that can be benefited or harmed has rights, then the concept of non-human rights becomes valid. Consequently the distinction between human rights and non-human rights becomes blurred. On the other hand, it may be considered that the issue of rights is connected to the question of value. It is important to differentiate between intrinsic and instrumental value. According to Singer, something is of intrinsic value if it is good or desirable in and of itself, in contrast to the instrumental value attributable if something provides a use or purpose for others. It can be seen, for instance, that the Lorax does treat the Swomee Swans somewhat differently from the Brown Barbaloots. Whilst he claims to be in charge of the Barbaloots, he refers to `my poor Swomee Swans. . . .why, they can't sing a note!' indicating that he may see them more as possessing instrumental rather than intrinsic value.
# Blackwell Publishers Ltd. 2000
The rights of inert aspects of nature: Do rocks have feelings?
`I am the Lorax. I speak for the trees. I speak for the trees, for the trees have no tongues' The suggestion that intrinsic value, as opposed to instrumental value, extends beyond people and sentient beings is at the core of the debate on environmental ethics. Holmes Rolston III (1997) designates the `naturalistic ethic' as the view that some natural objects are morally considerable in their own rights apart from human interests. For example, human beings may value a mountain for a variety of reasons ± because they can hike it, build ski lifts on it, mine the ore deep inside it ± or simply because they like looking at it (Shaw and Barry 1995). According to a naturalistic ethic, however, the value of the mountain is not simply a function of human interests. Nature can have value in and of itself. In contrast, Partridge (1990) cautions against extending the concept of `rights' to insentient beings. He believes that while most people agree that we are not free to do what we please with regard to nature, extending the rights argument to include insentient beings dilutes its moral significance. The moral obligation to future generations
While most of us would agree that it would be immoral to make the world uninhabitable for future generations, the `rights' of future generations is a difficult concept to define. It has been suggested that since future generations do not exist they cannot claim any rights (Partridge 1990, Shaw and Barry 1995). It is impossible to know anything about the people that will constitute future generations, and therefore what their interests will be. In contrast, it is argued that regardless of how future generations evolve we can affect them for better or worse by our present actions. We may not know precisely who these individuals are, nor their specific interests, but we do know that they will have interests and what the general nature of these interests will be (Partridge 1990). We can assume such general interests will include access to natural resources such as fresh air and clean water, and environmental diversity. The Once-ler, in the end of the story, assumes that the truffala tree is of value to the young boy. It
159
Volume 9
Number 3
can be argued that the Once-ler had a moral obligation to maintain the natural resources for the future use of others. He has failed his moral responsibility, and unjustly passes on this responsibility to the boy when he entrusts him with the care of the last truffala seed. The actions of multinational corporations
The operations of multinational organisations are often the focus of public concern. Often the company is based in a developed country and establishes an operation in a third world country. This is usually for the purpose of using that country's natural or labour resources. The Lorax provides us with a clear example of this situation. The Once-ler, together with his extended clan, arrive at a place they have never been before, chop down trees of a kind they have never seen before, and do this in spite of the presence of beings they have never met before. Multinationals face many choices in how to guide the behaviour of their subsidiaries, branches or associate suppliers in their host country. They can adopt the ethical values or regulatory framework of the home country, they can adopt the ethical values or regulatory framework of their host country, they can do a combination of these, or they can do something entirely different. De George (1993) provides a set of guidelines for the moral behaviour of multinational corporations (Figure 2). It may be argued that the Once-ler failed to fulfil even one of these moral imperatives. He did not consult the local inhabitants about using their natural resources. He did not recognise the local inhabitants as stakeholders with respect to his enterprise. He did not attempt to establish any relationship or contract with the local inhabitants in any of the potential roles that they could have held (e.g. employees, customers, or suppliers).
(iii) Development of evaluation criteria When analysing a case it is essential to consider a range of alternatives and evaluate them against a set of criteria. These criteria may be derived from a number of different sources ± from earlier discussion surrounding the ethical issues at stake (e.g. `assuming we can predict the general interests
160
July 2000
Figure 2: Seven moral guidelines for multinational corporations (De George 1993).
1. MNCs should do no intentional direct harm. 2. MNCs should produce more good than bad for the host country. 3. MNCs should contribute by their activities to the host country's development. 4. MNCs should respect the human rights of its employees. 5. MNCs should pay their fair share of taxes. 6. To the extent that local culture does not violate moral norms, MNCs should respect the local culture and work with it not against it. 7. MNCs should cooperate with the local government in the development and enforcement of just background institutions.
of future generations. . .'), from normative ethical theory (e.g. `a deontologist would argue that. . .'), or perhaps from highly subjective opinion (e.g. `I could never allow. . . .'). It is likely that the criteria will involve a combination of derivations, that they will vary from one individual to another, and vary from one discussion to the next. The students can be encouraged to respond from their personal perspective ± for example, what concerns them or what is important to them. Alternatively they can be directed to develop criteria from a particular theoretical perspective ± for example, how would a utilitarian consequentialist decide what is important.
(iv) Development of alternative courses of action The case study analysis must include the consideration of alternative courses of action by the players. The `real' outcome of the case is only one of many potential courses of action. It is important to be creative at this stage, since this process can produce an enormous number of alternatives. Thus there must be some method of ranking the alternatives. The evaluation criteria, if already developed, will naturally provide such a method. It is important, however, not to dismiss alternatives too readily because they appear at face value to contradict the criteria. Once again,
# Blackwell Publishers Ltd. 2000
Business Ethics: A European Review
the students can be encouraged to respond from their personal perspective (e.g. What should the Once-ler have done? What would you have done if you were the Lorax?). Alternatively they can be directed to consider the alternatives from a particular theoretical stance (e.g. How would a deontologist view the actions of the Once-ler? How would a naturalist view the plight of the trees?)
(v) Evaluation of the alternatives The alternatives should be evaluated against the agreed upon criteria. Since the alternatives are often hypothetical, the outcomes will have to be assumed or predicted. For example, if it is suggested that the Lorax should use a means of physical intervention, such as tying himself to the super-axe-hacker, then the assumption is made that this intervention will be successful and have no unintended outcomes. Two warnings regarding predicting outcomes should be noted (Easton 1995). Firstly, all possible outcomes must be predicted. It may be that a particular solution solves one problem at the expense of creating another. Secondly, prediction is a difficult and uncertain process. Not all outcomes are equally likely to occur. This uncertainty should be taken into account in the evaluation process. There may need to be a series of stages where alternatives are elaborated, examined and qualified.
(vi) Recommendations A choice is made. The recommendation of a particular course of action must be understood in the context of the decision-making process, particularly with respect to the criteria used for evaluation. It should be clear from the previous stages why this particular outcome is considered most favourable.
And finally. . . The use of narrative fiction as case material for the study of management ethics has been demonstrated. However, The Lorax should be taken
# Blackwell Publishers Ltd. 2000
seriously, but not too seriously. Earlier discussion identified some significant values of fiction for organisational studies, but there are, of course, advantages to the use of more traditional types of material. The presentation of a case based on an actual organisation's genuine experience has the benefits of being `real' to the student. They may have heard of the company, bought its product, even know someone who worked for it. They may know of the events depicted from their direct experience or through the media. Most people remember events like the Challenger disaster or Dow Corning's problems with silicon breast implants. A management ethics programme should take advantage of both traditional and nontraditional case material. Whether the student is a naõÈ ve undergraduate or a seasoned manager, the use of one type of material exclusively has potential downfalls. Reliance on traditional material entirely risks the development of routine, boring, narrow courses and poses the ever present difficulty of finding suitable material. On the other hand, dependence on literature exclusively exposes the course to being seen as esoteric, impractical or even trivial. It is recommended that a programme begin with traditional material to provide a solid basis for the discussion of ethical issues and the understanding of case analysis technique. The introduction of non-traditional cases later in the programme will provide students with a broader and more intense experience and with the possibility of wider and more intense exploration of ethical issues.
Bibliography Alvarez, J. L. and Merchan, C. 1992. `The role of narrative fiction in the development of imagination for action'. International Studies of Management and Organization, 22: 27±39. Barnes L. B., Christensen C. R. and Hansen A. J. 1994. Teaching and the case method: text, cases and readings. Boston, Mass.: Harvard Business School Press. Beauchamp, T. L. and Bowie, N. 1993. `Ethical theory and business practice'. In Beauchamp, T.L. and Bowie, N. Ethical theory and business: 1±48. Englewood Cliffs, New Jersey: Prentice Hall.
161
Volume 9
Number 3
Coles, R. 1989. The call of stories: teaching and the moral imagination. Boston: Houghton Mifflin. Czarniawska-Joerges B. and Monthoux, P. G. d., (Eds.) 1994. Good novels, better management. Geneva: Harwood Academic Publishers. De George, R. T. 1993. `Ethical dilemmas for multinational enterprise: a philosophic overview'. In White, T.I. Business ethics: a philosophical reader: 784±789. New York: Macmillan Publishing Company. Easton, G. 1995. `The case method'. In Clark, G.L. and Prior Jonson, E. Management Ethics: 97±106. Sydney: Harper Educational. Evan, W. M. and Freeman, R. E. 1988. `A stakeholder theory of the modern corporation: Kantian capitalism'. In Beauchamp, T.L. and Bowie, N. Ethical theory and business: 75±84. Englewood Cliffs, NJ: Prentice Hall. Freeman, R. E. 1984. Strategic management: a stakeholder approach. Boston: Pitman. Galbraith, J. K. 1984. The affluent society. Boston: Houghton Mifflin.
162
July 2000
Monthoux, P. G. de 1979. `The ``novel'' approach to management'. Journal of General Management, 5: 42±53. Northcott, P. H. 1995. Public practice: ethics case studies. Burwood, Australia: Australian Society of Certified Practising Accountants. Partridge, E. 1990. `On the rights of future generations'. In Scherer, D. Upstream/downstream issues in environmental ethics. Philadelphia: Temple University Press. Phillips, N. 1995. `Telling organizational tales: on the role of narrative fiction in the study of organizations'. Organization Studies, 16: 625±643. Rolston III, H. 1997. `Feeding people versus saving nature'. In Gottleib, R.S. The ecological community. New York, Routledge. Seuss, D. 1971. The Lorax. New York: Random House. Shaw, W. H. and Barry, V. 1995. Moral issues in business. Belmont, California: Wadworth. Singer, P. 1993. Practical ethics. Cambridge: Cambridge University Press.
# Blackwell Publishers Ltd. 2000