BUSINESS PHILOSOPHY AND CHRISTIAN ETHICS 2008 PRELIMINARY CONSIDERATIONS ACCCORDING TO GHANDI 7 Deadly Sins SEVEN DEADLY SINS Wealth without work Pleasure without conscience Knowledge without character Science without humanity Politics without principle Religion without sacrifice Commerce(Business) without morality/ethics A CASE FOR ETHICS We are capable of reasoning from cause to effect and we know that each act has consequences We are capable of making choices on basis of human gifts—Self-awareness, Conscience, Imagination & Independent Freedom to Choose We have finiteness; we need coherence Human life is a dynamic phenomenon CASE FOR ETHICS (CONT’D) We can be taught to be good Human life and civilization depends on ethically responsible people A SPECIFIC IS TO ASK ABOUT BUSINESS ETHICS WHY BUSINESS ETHICS Business practices exert far-reaching influence on the lives of people anywhere in the world Since business practice affects so many it is imperative that business be socially responsible Business practitioners need help to avoid harming the general public and all stakeholders connected with business Environment also needs to be protected from contamination by business enterprise WHY BUSINESS ETHICS (CONT’D) Business firms also need protection from abuse by unethical employees and unethical competitors (one third of employees steal from work place; billions of dollars lost annually) Workers and others need protection from dangerous products and situations (mines) Most people want to act in ways that are consistent with their own sense of right and wrong. ETHICS DEFINED: A careful systematic examination of how the life and person of Jesus Christ should impinge upon our moral lives, of who we are and should be and what we should do in the light of what Jesus reveals to us about God and the cause of God. ETHICS A ND HUMAN CONDUCT – TYPES OF HUMAN ACTIVITIES Instinctive—Amoral ( e.g. breathing, heart beat etc) Psychological—Normal or not normal Moral-- What has to be present: Human being, Intention, consequences, consciousness, freedom EMERGE: When inspired by moral ideal personified or conditioned; in reference to authority, compelled internally by conscience, yielding to temptation or prompted by Spirit “HOW THEN MUST WE LIVE”? CULTURAL RELATIVISTS SAY: No moral or ethical standards apply to all people, all places and all times Moral practices vary from place to place, from people to people, and from time to time—Diversity Thesis Moral practices depend on cultural context— Dependency Thesis HOW THEN DO WE SURVIVE IN A SHRINKING GLOBAL COMMUNITY? SITUATIONALISM SAYS: Morality cannot be prescribed Only one thing is intrinsically good, that is LOVE. LOVE is the ruling norm in Christian decision- making Love and justice are the same for justice is love distributed LOVE wills the neighbor’s good whether we like him or not SITUATIONALISM (CONT’D) Only the end justifies the means, nothing else Love’s decision is made situationally and not prescriptively Strengths: Recognition of individual uniqueness Due reaction against rigid legalism Weaknesses: Subjective, not universally applied; presupposes accurate evaluation of situation by human beings; Can be selfish in seeking ends; Never defines LOVE. CONSEQUENTIALISM— Consequences to determine act There are TWO major strands for this theory: There is the EGOISM strand which states that action is good if it is to interest of person/agent There is UTILITARIANISM strand which states that action is good if it brings “greatest happiness to the greatest number.” OBJECTIONS: *Egoism is inconsistent—It is impossible to have harmony if every body pursues his own thing. OBJECTIONS AGAINST CON)SEQUENTIALISM (cont’d Egoism does not provide terms for settling conflicts Egoism creates conflicts and relational problems Two good things about Utilitarianism: It is socially conscious, and provides objective way out of dilemmas. Utilitarianism can be unjust. Needs fairness We do not really know what is good OBJECTIONS TO UTILITARINISM (Cont’d) Utilitarianism assumes that human beings know what is good and ignores their sinfulness Utilitarianism ignores the fact some actions are bad no matter how good they appear. The end does not justify the means. The process is as important as the intent POLITICAL NATURALISM SAYS: “Might makes right!” What is of interest to the powerful is right Power is the rule of life—Thrasymachus Justice is nothing but interest of the stronger Rulers are shepherds who fatten their sheep for the kill The cleverest is one who is able to impose his will upon all others. Machiavelli (1469 – 1527) revived Naturalism in his book: THE PRINCE IN THE PRINCE, MACHIAVELLI ASSERTS: “The ruler who abandons what is done for what ought to be done will rather learn to bring about his own ruin than his preservation.” Two natures in a person—human and beast: the successful ruler is a human lion and a fox, keeping faith when it is for his interest, breaking faith when new conditions arise (against his interest) Even in time of peace ruler prepares for war, bribes allies of rival states and disorders enemy MACHIAVELLI (Cont’d) Ruler does ANYTHING gain favor of subjects Ruler can use any means to strengthen his position— fraud, deception, killings and other bad things for his interest The Prince (ruler) is above restrictions of religion and ethics Christianity is detestable because it negates strong military virtues of the ruler and condemns his exaltation to honour Philosophy that is behind totalitarianism that POWER “ETHICS” Machiavelli’s totalitarianism repudiated human rights, suffocated religion, liquidated individuals or anything that stood in the way of the ruler. Friedrich Nietszche (1844 – 1900) attacked reason, morality and Christianity Nietszche advocated the SUPERMAN who is not subject to morality “Christian morality is the most malignant form of falsehood…It is decadent and weakening. POWER “ETHICS” (Cont’d) Nietszche asserted. “Christianity produces nincompoops, not men.” The struggle for power is primary. Whatever hightens the feeling of power and desire for it is good, whatever weakens it is bad” Courage is highest virtue: intellect, energy, virility, self-assertion and self-determination are means to power. Humility, meekness, obedience, compassion, forgiveness etc. are evidence of weakness. POWER “ETHICS” (Cont’d) Christians are not free from this WILL TO POWER “If Christians want us to believe in their Redeemer, let them appear more redeemed.” God has died and the SUPERMAN of the future has come. Marriage laws have to be revised to eliminate the unfit races Social Darwinism and Nietszche philosophy brought about Faschism, Nazism, Communism and other forms of evil “-isms” KARL MARX IMPACT (1818-1883) A new social order that is rooted in evolutionary materialistic world-view Communist Manifesto written with Engels Political naturalism with international force Convinced many that malady of human race is economic. Masses need economic power Religion deludes the worker with visions of imaginary satisfaction to compensate for actual deprivations.” Hence, religion is an “instrument of social passivity” to be eliminated as the “opiate of the people.” MARX AND ENGELS PROGRAM OF REFORM Abolition of private property Abolition of individual freedom to buy and sell services as well as goods, Abolition of family in its present traditional sense Abolitions of prevailing bourgeois culture centred on free enterprise Abolition of religion, the opium of the people. ATTRACTIONS OF MARXISM Promised swift and easy material gain Appeals to humanitarian instincts of man by forcing economic redistribution of wealth to achieve maximum good for the working classes Asserts historical inevitability of the outcome and scientific basis in the economic determinism of nature and history. WEAKNESSES OF MARXISM Unrealistic on ending class distinctions Problem of promoting absolute allegiance to the military leadership that is surrounded by propagandists who are in service of the party line, who exercise absolute control in the name of the state It negates what it promotes by denying some people their dignity and worth as individuals It destroys individual incentives, motivations and stifles initiative and creativity WEAKNESSES OF MARXISM (Cont’d) Marxism kills the goose that lays the egg by taking from productive ones to benefit the unproductive. By rejecting family it removes that institution which is basic in the formation of a person By rejecting religion it removes that which is basic in the formation of the moral life of a person to lead to responsible living. CAPITALISM—Adam Smith Wrote THE WEALTH OF NATIONS AND THEORY OF MORAL SENTIMENTS The rich are to invest to enable others to better their conditions Promoted private ownership even of means of production Has influenced business with profit motive of “selfinterest” and “enlightened self-interest.” PROBLEMS OF CAPITALISM It’s incompatible with justice Uses sinfulness of humanity to promote productivity Promotes human greed and selfishness leading to unjustifiable injustices we see today May contaminate environment and exploit resources without compensation—e.g. Union Carbide Disaster in Bophal and the Ozone layer challenges Takes advantage of less informed—Nestle Corporation CAPITALISM AND CONSUMERISM Currently, more than 67% of world’s population is poor 33% are in varying degrees well-off 7% use 50% of the world’s money and use 40% of the world’s energy 7% has ten times more doctors than 93% The gap between the rich and the poor continues to widen at a very disturbing rate and ratio It could even be worse now because the statistics are old. CAPITALISM IN FORMER APARTHEID SOUTH AFRICA 35 million blacks were dominated by 5 million whites 5million whites owned 87% of the land 35 million were entitled to 13% Income gap between the blacks and whites was so huge that even many corporations decided to disinvest as a way of protesting against the naked injustice Such set ups lead to oppression and exploitation of groups by other groups. Hence, this is not sustainable ethically. THE AFRICAN PHILOSOPHY OF UBUNTU Ubuntu essence of being human. The term is not translatable. It embraces hospitality, caring about others, being willing to go the extra mile for the sake of others “A person is a person through other persons..” My humanity is caught up and bound up in yours “I am because we are…we are because I am..” We share resources to meet community needs Ownership is not individual but collective (Nyumba) UBUNTU (Cont’d) Extended family system is real family Elders are respected Taboos are central in upholding community values Grievous violations like murder, robbery, disrespect for elders, failure to care for them, incest, neglect of widows and orphans are among the areas that call for taboos A sense of community regulates behaviour. CONSEQUENCES OF LOSS OF UBUNTU Weakened instruments of moral education A vacuum that has led to dangerous explosions Uncared for widows, orphans and street children Influx of refugees all over Africa today Rampant promiscuity and HIV/AIDs scourge Increased criminal behaviour The problem of abandoning the old traditional ways without fully accepting the new or replacing with the better. PILLARS OF CONSCIOUSNESSBASED EDUCATIONAL MODEL (CBE) Learning to Know—Stresses the cognitive and academic dimension of learning Learning to do –Highlights professional training and technical know how Learning to live together-- “The heart and soul of the African UBUNTU” and it concerns learning to live together by developing and understanding of social roles and appreciation for other people and for interdependence. PILLARS (Cont’d) Learning to be-- Highlights character development, with specific ethical values Without this you may have businessmen and lawyers who lend their expertise to gain illegal profits or skirt the law Our world is now corrupt and people are willing to do terrible things for money. For 10million people say: 23% willing to be in prostitution for a week, 16% willing to abandon spouse, 7% willing to kill an unknown human being…… THE GREATEST NEED OF THE WORLD “The greatest want of the world is the want of men (and women) who will not be bought or sold… who in their inmost souls are true and honest,…who do not fear to call sin by its right name,…whose conscience is as true to duty as the needle to the pole,… who will stand for the right though the heavens fall.” White, E. G. EDUCATION, p.57. BIBLICAL FOUNDATIONS Creation Story carries key concepts like: Image of God which signify dignity and value of human beings Responsibilities given to human beings signify stewardship of power, resources, time and life itself Covenant is basis of relationship between God and chosen human beings Law (torah) of God’ revealed instructions is spoken of as transcript of God’s character Law of God is eternal principle of action—self-evident, timeless and universal. GOD’S LAW—BONDAGE OR FREEDOM? Eternal, and universal principles of relationship First 4 deal with vertical dimension—God and human beings Last 6 deal with horizontal dimension– Human beings and human beings and the rest of creation To be considered in terms of marriage relationship They are commands that cannot be violated. One who attempts to violate is himself/herself violated BIBLICAL FOUNDATIONS (Cont’d) Prophets of Israel called for living in faithfulness to the Covenant National survival and prosperity were linked to adherence to Covenant provisions Moral rectitude was key to prosperity Jeremiah predicted a new Covenant to be written on the heart ETHICS AND JESUS CHRIST Sermon on the Mount carries ethics of the Kingdom He came to establish Beatitudes (Matt. 5:3-12) carry principles with farreaching implications for ethical living Jesus calls for radical righteousness that exceed that of the Pharisees and Scribes The righteousness that calls for is internalized and comes from a clean heart The story of Zacchaeus (Luke 19) is an illustration of a converted business person THE NEW COVENANT RELATIONSHP The Law of God is written in the heart –Jeremiah 31:31f; Hebrews 10:16f It’s a relational law of lovers Deficit Motivation has no room in the New Covenant Expression Motivation is mode of the new covenant relationship The highest stage in Lawrence Kholberg’s Construct MORAL REASONING Jean Piaget’s 3 levels are Pre-Operational (Pre- Conventional), Operational (Conventional) and PostConventional (Post-Conventional) Lawrence Kholberg expanded these and came up with 6 levels as follows: MORAL REASONING—KHOLBERG’S STAGES Punishment Obedience Orientation—Good and bad, right and wrong are only in terms of physical consequences Instrumental Relativistic Orientation—Right Action consists of that which instrumentally satisfies one’s needs and occasionally the needs of others– “Scratch my back and I’ll scratch yours.” The Interpersonal Good Boy/Nice Girl Orientation— Good behavior is one that pleases others and is approved by them. KHOLBERG’S STAGES –(Cont’d) The Law and Order Orientation– Orientation to authority, rules and maintenance of the social order Social Contract Legalistic Orientation– Right action is defined in terms of general individual rights and standards which have been critically examined and agreed upon by the whole society Universal Ethical Principle Orientation– Right is defined by the decision of conscience in accord with self-chosen ethical principles appealing to logical comprehensiveness, universality and consistency. ETHICS IN NEW TESTAMENT Apostles taught radical righteousness that draws from the New Covenant relationship with God after the Christ event. John emphasizes LOVE as the principle of living James emphasizes concern for the less fortunate—the poor, the widows and the orphans Paul has a lot to say on principles of conduct PAULINE PRINCIPLES OF CONDUCT Glorifying God in whatever is done Not to be unequally yoked with unbelievers * Not to be a stumbling block to the weak Not to defile one’s CONSCIENCE* To be free to act from expression motivation and not from deficit motivation * To be thermostats and not thermometers (Rom. 12:2) PROBLEMS FACED BY BUSINESS PEOPLE Honesty versus Prosperity—May test truth-telling Corruption—There is always this possibility Competition—May replace excellence Divided loyalties—Stakeholders, stock holders and government Security Questions—Business people may be used as spy agents Career mobility—Families may be affected as fathers(parents move around a lot; environment is family unfriendly ENRICHING YOUR MARRIAGE AND FAMILY No success in any business compensates for failure in marriage and family relationship. Life’s ledger will reflect imbalance, if not debt (Covey) Relationships tend toward ENTROPY Hence, need for SYNTROPY Investment in building relationships is not a waste Marriage and family need investments that those who are involved need to make. WAYS OF ENRICHING MARRIAGE AND FAMILY Retain a long-term perspective through rigors, struggles and challenges Rescript your marriage and family life. This is to be done by relating and modelling Reconsider your roles—either producer, manager, leader Reset your goals Realign family systems Refine 3 vital skills—time management, communication, problem solving WAYS OF ENRICHING (Cont’d) Regain internal security—Have a sense of personal worth Develop family mission statement SELECTED KNOTTY PROBLEMS Job satisfaction, Security and fair remuneration Equality on opportunities for employment and promotion, affirmative action programmes Discrimination and preferential treatment at work Employer/Employee Contracts Occupational Safety and health Working men and women– Implications to the family culture ETHICAL CODES AND BUSINESS CONDUCT--CATEGORIES Business Conduct Business Dealings and Relationships International Business Relationships and Practices Management Responsibilities Rights and Responsibilities of Employers and Employees Fundamental Honesty Protecting Proprietary and Confidential Information Internal Communication CATEGORIES OF CODES—(cont’d) Equal Employment and Affirmative Action Sexual and Non-sexual Harassment Substance Abuse in the Workplace Workplace Safety, Consumer Protection, Product Quality Ethics in Marketing and Advertising Compliance with Antirust laws Managing Computer-Based Information System Ethical Duties of Accountants CATEGORIES OF CODES—(cont’d) Expense Accounts, Credit Cards and Entertaining Corporate Citizenship and Responsibility to Society Protecting the Environment Administering the Code, Ensuring Compliance, Reporting Violations and Issuing Sanctions Ethics Training for Employees WHY ORGANIZATIONS NEED BUSINESS CODES Serve strategic and public relations purposes Provide guidelines to managers and employees alike Help acquaint new employees with the firm’s values and culture Improve the firm’s public and consumer image as well as its business reputation Offer protection in preempting or defending lawsuits Improve the company’s financial performance Enhance morale, employee self-image, company pride WHY CODES (Cont’d) Enhance loyalty, and integrity at workplace Facilitates the recruitment of outstanding employees May act as catalysts for constructive change Help stockholders interested in investing with firm Help integrate or transfer cultures of merged or acquired firms Help discourage managers from requiring subordinates to perform improper acts Help to stop subordinates from trying to get managers perform improper acts WHY CODES (Cont’d) Promote market efficiency, especially in in areas where the marketplace and laws are weak or inefficient Enable employees to take the responsibility to conduct themselves ethically as they take on the various business acts of the organization Ensure more consistent ethical behaviour by all members of the organization GUIDELINES FOR DEVELOPING CODES Identify one to approve the code in its final form How will the code be drafted? What will be the source of the ethical values that the code will reflect? Generally, CEO or chairperson of the board is one to give final approval Others are involved in code development, including managers, employees, legal counsel, at times outside consultants Can be a participative process across organ chart GUIDELINES FOR DEVELOPING CODES (Cont’d) Specific individual or group may be assigned task Participants may include CEO or individual/members of the board of directors, corporate legal department, finance, human resources, communications, employees and consultants Use existing documents on firm’s code of conduct, policy memoranda, current laws, consulting and examining codes developed by others and re-writing, re-shaping them to apply to specific needs IMPLEMENTING AND ENFORCING CODE OF CONDUCT Code has to be disseminated clearly Code has to be implemented consistently Code has to be enforced CORPORATE SOCIAL RESPONSIBILITY (CSR) “The Social Responsibility of Business Is to Increase Its Profits.” –Milton Friedman, the Nobel Prize Winner The statement has evoked a lot controversy in the business world How does this fair in the “Free Enterprise” business milieu? Is it worth talking about this in business? Many answers have been given. SOCIAL RESPONSIBILITY (Cont’d) “We are not in business to make maximum profit for our shareholders. We are in business to serve society. Profits are our reward for doing it well. If business does not serve society, society will not long tolerate our profits or even our existence.” –Kenneth Dayton Profit maximization ,as the only raison d’etre for business is rejected by quite a number of authorities It is known that well-treated employees are more loyal, more effective and more productive because they feel they are part of the greater good. SOCIAL RESPONSIBILITY (Cont’d) Communities served well by business establishment actually become “ambassadors” for the business establishment. So, doing something to meet the needs of employees and community members at large enhances Reputation Quotient of business However, business may engage in generous “social” programmes for its own interests and this may not do Example: Beer and tobacco companies may have a legal SOCIAL RESPONSIBILTY (cont’d) right to operate, their business is not ethically sustainable. To help people so that they are encourage to booze and puff more is not to help them at all and it is not socially responsible So, the kind of business that is established may be irresponsible in terms of moral values that are cherished and espoused by the community. SOCIAL RESPONSIBILITY (cont’d) At times animals are involved—Business may mean extinction of certain animals while serving a community of human beings. What should be the priority? At times stockholders’ profits may be reduced by issues of product affordability and increase of workers in the firm to improve people’s lives At times giving to charity reduces revenue to government. What should be the priority? SOCIAL RESPONSIBILITY (cont’d) Studies show correlation in terms of financial performance and concern with community’s wellbeing and over all growth Companies with code of conduct also perform better It pays to do business ethically and with levels of integrity A number of global initiatives have been established to facilitate compliance with acceptable standards of doing any business, and they all signal a need for social responsibility in business. ORGANIZATIONS ON SOCIAL RESPONSIBILITY Global Reporting Initiative Global Sullivan Principles Social Accountability 8000 UN Global Compact OECD Guidelines for Multinational Enterprise ILO Conventions AA 1000 ISO 14000 MORAL CAPITAL CALLED FOR It is important to talk about profits and financial capital It is important to underline importance of intellectual and social capital Today, it is crucially important to emphasize need for MORAL CAPITAL in business practices, especially in Africa. Virtue like “ubuntu”, trustworthiness, honesty, transparency, accountability, responsibility and such others are of crucial importance today. SUPERIORS AND SUBORDINATES The Superior has the following powers; Executive Power Power of Experience Power of Expertise Power to hire, fire or recommendation to do so SUPERIORS AND SUBORDINATES Relationships enhanced by : Consistency in communication Subordinate not treated as means to an end Loyalty as a two-way street Choosing the right pattern of relationship among: Paternalistic style—Superior feels he knows what is good for the subordinate and makes decision for the subordinate without input from subordinate. This threatens growth of subordinate * Collegiality-- Sharing everything with superior acting as supervisor. The problem is that the subordinates may be selfish and fail to see the bigger picture SUPERIORS AND SUBORDINATES Solidarity—Superiors and subordinates share the means and ends It is crucially important that the superior be a person of moral rectitude. PROFESSIONAL DUTIES To be educated—diligent studying formally and informally To grow---Sharpen the Saw Maintain professional conduct and dignity Render effective, efficient service delivery Maintain professional detachment Avoid professional competition WHISTLEBLOWING Whistleblowing defined: Types of Whistleblowing Obstacles in Whistleblowing Factors to consider in Whistleblowing KINDS OF WHISTLEBLOWING Unbending Resisters—These are strictly committed to their principles and they will not bend under threats or punishment. If the system does not allow, they go public Implicated Protesters—Those who speak up when there are moral inequities, but pull in when cornered or when there are legal dangers Reluctant Collaborators—Those involved in illegal or immoral practiced which they themselves condemn but go public only after retirement OBSTACLES IN WHISTLEBLOWING Process of erosion—When you have to blow on one you respect Occupational Harzards of losing promotion, privilege, job or even life You may not have inside information It may be used as revenge WHISTLEBLOWING IS JUSTIFIED WHEN: The company is in a practice or about to release a product which does serious harm to individuals or society in general. The more serious the harm, the more serious the obligation. The employee should report his concern or complaint to his immediate superior If no appropriate action is taken, the employee should take the matter up to managerial line. Before he is obliged to go public, the resources for remedy within the company should be exhausted. WHISTLEBLOWING JUSTIFIED: The employee should have documentation of the practice or defect…. Without adequate evidence, chances of succeeding are slim. The employee must have good reasons to believe that by going public he will be able to bring about the necessary change FACTORS TO CONSIDER IN WHISTLEBLOWING: Make sure the situation warrants whistleblowing Examine your motives Verify and document your information Determine the type of wrong doing you are reporting and to whom it should be reported State your allegations in an appropriate manner Stick t facts and not fiction Decide whether whistleblowing should be internal or external FACTORS (Cont’d) Decide whether whistleblowing should be open or anonymous Find out how much protection is there for whistleblowers Consult a lawyer CHRISTIAN VALUES AND BUSINESS—Samuel O. Oyieke Rightly asserts that business activities are relational In Concentric Circles of Concern, Thompson asserts: “relationship is the most important word in the English language.” The world rotates around relationships— God, friends, family, foes and so on. Business is to be considered in terms of guarding relationships by understanding the place TRUST in all relationships SELECTED VALUES Stewardship—A sense of recognition that human beings and the whole creation belong to God. Human beings are entrusted with God’s property for management Fairness—A value that should inform pricing, delivery, remuneration, advertising, promotion, employment and so on to convey what God is like Efficiency—Making the best use of available resources to maximize goodness in serving God and His people SELECTED VALUES (Cont’d) Equity—Acting fairly and impartially towards others. Partiality, hatred, jealousy, nepotism, discrimination and many other social evils mar business enterprises Excellence—Moving fully towards our God-given potential. This could qualify for the main purpose of living: “To glorify God and enjoy Him forever…” Honesty and Integrity—The quality of being truthful, authentic, credible, honorable and morally upright (Education pp. 57 and 14) SELECTED VALUES (Cont’d) Perseverance –Continual and steady efforts to achieve noble goals. Upward mobility and survival of the fittest syndromes would not infect many business people if they persevered in pursuing objectives in God’s way. Services—Activities intended to benefit society that has entrusted corporate world to provide needed goods and services. This places FIDUCIARY obligations on the corporate world Love—The supreme value that co-ordinates ALL! AT THE WORK PLACE Efficient Service Delivery without fear or favour avoiding bribes and all forms of corruption Avoiding misuse of public facilities like government or company vehicles, telephones and other facilities Avoiding tax evasions and “rendering unto Caesar what is Caesar’s…” Paying fair and LIVING WAGE to employees Providing for job satisfaction, job security, job safety and health AT THE WORK PLACE (Cont’d) Avoiding discrimination, reverse discrimination, preferential treatment and hiring, passive nondiscrimination. Make affirmative action programmes that work Avoiding Sexual Harassments and “Carpet Interviews” whereby benefits are denied to a person because he/she refuses sexual activities as price for due service or benefit. Power inequities to be considered on issues of “Sex in the forbidden zones…” GLOBALIZATION AND BUSINESS ETHICS More international business establishments in mining, retailing, communication, tourism, transportation and more Increase in markets and cheap labor in developing countries are among factors that feed globalization Benefits of developing countries where investments are and benefits reaped by Multinationals to be examined Ethical issues have arisen in terms of working conditions, product quality, environment, initiative… GLOBALIZATION ISSUES Local legislation by government may be favorable or unfavorable Studies still show that globalization has not done enough to improve the conditions of people they sought to help because they repartriate their profits Are these in for profits or to create local wealth and alleviate poverty? Process of obtaining licences may also be corrupt because of ethical relativism Environmental, lakes pollution and poisoning in Kenya pose serious challenge today CHALLENGES OF GLOBALIZATION Compromises on caring for the work force to maximize profits with social costs shifted to citizens and workers Example: Export Processing Zone in Kenya (EPZ) has not alleviated poverty according to 2004 assessment Structural Adjustment Programmes have failed because they capitalize on foreign investors gain Kenya Human Rights Commission has exposed evils of exploitation of the young, workers work long hours, no offs or holiday, withholding salaries for “poor work” etc CHALLENGE OF GLOBALIZATION (Cont’d) Need to adhere to Principle of Human Welfare, Well being or Beneficence Duty on non-maleficence or do no harm Prevent harm or stewardship Remedy harm Do good MORE UNFAIRNESS IN GLOBALIZATION Economic imbalances perpetuated Africa still not equal participant at the Round Table Africa still lacks towering leadership of global stature (except for Nelson Mandela who is expiring) Africa still threatened by dark cloud of HIV/AIDS Intellectual Capital still moves away from Africa— Brain drain African dictators still extinguish emerging lights Regional and Ethnic Conflicts MORE CHALLENGES IN AFRICA More refugees and asylum seekers More corruption and misuse of God’s blessings in Africa More anthropological poverty—doing evil in order to survive Still lack of politics of production, delivery and wealth creation Even the affluent of Africa (Sandton) are insecure Africa still produces raw materials for others MORE CHALLENGES Africa still marginalize in global economy and contributes only 2% to world trade Globalization has accelerated political and economic decay in Africa with leaders failing to develop policies that cope with changing world Globalization has also weakened sovereignty of national governments Africa has to chart its own course as Asian Tigers have done NEED FOR WORLD-CLASS TECHNIQUES IN AFRICA To develop and implement the following: Realigning Management Objectives, Customer focus, Organizing the work place, Visible Measurement Systems, Managing for Quality, Eliminating Waste, Best Operation Practice(BOP) and Continuous Improvement, Teamwork, Staff Empowerment and Involvement, Rewards and Recognition, Purposeful Communication, Continuous Learning. Need for Leaders, Managers and Employees with shared sense of destiny ACTING WITH RESPONSIBILITY In the world but not of the world– Means higher identity, loyalty and destiny. It means safe to send anywhere because of immunity against worldly influences Being intelligent citizens– Up to date with what is happening and the issues at stake Having a sense of history—World has not committed unpardonable sin. God still in control Being drivers and not hitch-hikers—Show direction ACTING WITH RESPONSIBILITY Promoting unity, community and interdependence within the human family Being a producer and not just a consumer Creator of jobs and not just working at jobs Standing courageously for what is right “SO SEND I YOU…” Can God trust you and send you? TOWARDS AFRICAN RENAISSANCE Numerous challenges in Africa to be welcome as opportunities to change and improve people’s lot To build on the good side of African heritage that has been Christianized. Highlighting fundamental values of Christianity and the best of African traditions of “ubuntu” Trustworthy men and women with internalized moral values need to rise to the occasion and engage in business practices that instill a sense of dignity and value of the human person—THE TOPLINE! NEED FOR ETHICAL LEADERSHIP– Thos who do not suffer from: Ethical Blindness—Either unable or unwilling to see ethical issues and are morally insensitive. Ethical Muteness---Fail to speak when they should. Like dogs that do not bark! Ethical Incoherence—Inability to recognize inconsistencies in values advocated. Ethical Paralysis---Prevented from putting values into action because of ignorance or fear of consequences DISEASES IN ETHICAL LEADERSHIP Ethical Hypocrisy—Lacking commitment to articulated ethical values, not “walking the talk” Ethical Schizophrenia---Lacking unified set of ethical values. At work holding to one set but elsewhere another set. Ethical Complacency---Thinking that one cannot do anything wrong because of who one is. Claiming immunity against ethical errors. A very dangerous disease, indeed! (Check in Christine Wanjiru Gichure, pages 208-209)