Values
Beliefs Ideology
Overview
Terminology?
Capitalist, liberal and socialist ideologies
Significance for values and beliefs?
Major religions and secularism
Management in a multicultural society accommodating differences in individual
values?
Value and Belief
Value and values
Worth, desirability, usefulness - qualities influencing
judgment.
Economic purchasing power of a good or service in
exchange.
Science: an amount or ranking which gives a measure of
X
Ethics: principles or standards to judge what is
important or valued in life.
Belief
mental acceptance of a proposition, statement, or fact,
held to be true on the ground of authority or evidence
(OED).
when what is believed cannot be observed, or is based
on testimony.
Ideology
philosophy of mind, value-based framework of
explanation.
body of ideas, values, beliefs guiding behaviour &
underpinning power
 Used to define & criticise political, economic , religious
beliefs & values.
 Is religion - an ideology?
 Is science - an ideology?
 Compare ideology and paradigm
Ideologies embedded in institutional functions, activities
and values.
 'Victorian values', 'gospel' of prudence, hard work but
th
 19 C society also had poverty, unemployment & poor
health.
Marx & Engels - “ideology” - feature of class-divided
societies.
Many perspectives on
capitalism
Right: conservative UK is socialist state-funded welfare system
Left: Soviet Union was practising
state capitalism.
many variations in different
economies: China, Japan, USA,
Germany, Sweden.
Unethical or ethical?
Capitalism essentially unethical?
system based on exploitation and greed.
actions based on self-interest (for a Kantian unethical).
Capitalism essentially ethical
the more laissez faire - the more ethical it is
maximises human freedom and, from history, wellbeing.
 economic superiority cf. other economic systems
 works on a large scale
 social benefits from economic performance.
 unregulated it can produce harsh social
consequences
 where costs > benefits - regulate
Tenets
Capitalist, free enterprise system
Origins


Asia and 14thC (Catholic) Italy.
Protestantism and the 'capitalist work ethic'
private ownership: property + means of production
consumer freedom to "buy/sell as I choose"
reward for producers who satisfy consumer needs.
free competition - "smoke filled rooms", cartels &
public interest.
ideological?
can we achieve economic goals in isolation?
flourishes across races, creeds and politics
Growth
14thC. Italy (banking)
Mercantilism and state monopolies
English capitalist growth
17thC --> 1920s.
 technological advance & industrialisation
 liberalisation, corporations, enterprise funding
USA
post-Civil War. Go West, agriculture, communications,
population growth. Corporate institutions.
Bureaucratic systems (stability & growth). Economies
of speed & efficiency. Mass marketeers & distribution.
International expansion
Tensions within the capitalist
system
right to property & liberty to do what
one wishes with it, free from
external interference.
right to justice and a fair share of
the product of one’s society
Liberte, Egalite, Fraternite
reconciling liberty and equality - not
easy.
Liberalism - various political
ideologies
Libertarianism (agency theory)
principles of liberalism and individualism
 negative - a person is diminished, damaged if principles
violated. Privacy - sovereign right to be left alone.
 natural rights (born with) - independent of social or
political institutions
John Locke (1632-1704) philosophy of individual
rights.
 NOT interfering & imposing on rights of others
 NO obligation to do anything for others and vice versa
 NO right to paid employment or other material necessities.
Insistence on individual rights constrains intervention.
NANNY State: intrusion for common good or
general welfare
Libertarianism
Focus on basic rights: freedom. life, property and liberty
legitimately owned property - two principles of justice:
 in acquisition: originally acquired without infringing the rights of
others
 in transfer: voluntarily transferred by previous legitimate owner
not acting under duress.
Role of state
defend & promote these rights
enforce laws of ownership & property transfer
defend the realm & protect against violence to person or property
enforce the law of contract.
No role to provide education or health or general welfare unless
owners of property agree to fund it
Minimise taxation. Leave to charity, social provision for those who
cannot afford to pay or insure.
Libertarians
oppose slavery, children working in
factories
support
self-determination of smaller nations
universal suffrage,
press freedom
trade unions
religious tolerance
hierarchy and privilege
privatisation
Adam Smith and the “Invisible Hand”
1776 Wealth of Nations.
Individual efforts aggregated for the general
benefit by the 'hidden hand' of individuals acting
and choosing in own self-interest
Governments: refrain from regulating business
activity.
Laissez-faire encourages free trade and wealth
generation.
Smoke-filled rooms and moral sentiments
Friedman
 moral defense of capitalism
 critique of corporate social responsibility.
Egalitarianism (utilitarian)
Fairness - most important societal value
Role of
right to a fair share in the product of that society
state
share to the weak generally > laissez faire portion
define fair
 Problem: defining & measuring fairness and "felt fairness"
share +
 Judgment about fairness depend on subjective views policies to
distribute
 State intervention
Strong egalitarianism
 Equal share for all. Utopian dream. A caricature.
Weak egalitarianism
 not equal but reduction in inequalities - ideological basis of most
social democratic movements.
 Rawls' (weak egalitarian, just system)
 maximize benefits to weakest member
 recognise value of incentives & inequalities for economic
growth.
Exercise
Nation of 1000 members
strong egalitarian policy (GNP £10 million).
 strongest and weakest each gets 1 % of this GNP
(£10,000).
weak egalitarianism
 incentives foster innovation & growth, national GNP of
£25 m.
 Strong few receive 1 % of GNP (£250,000)
 Weak majority receive 0.5 % (£12,500)
With similar price levels which is the fairer or more
just society?
Virtue-oriented liberals
Locke's analysis does little to control the brutal.
de Tocqueville (1805-1859) 'virtue theory'
a civil religion and network of voluntary, liberal
democratic societies.
T.H. Green (1836-1882) “communitarianism”
democratic, pluralistic society of voluntary
organisations
'anti-statist' - no undue intervention by
government bureaucracy.
Socialism - late 18th and 19th
centuries
Utopian socialism
Thomas More’s Utopia.
common sharing, community of property & means of
production
Communes to practise 'true Christianity' & redress harsh
socio-economic conditions of industrial change.
Revolutionary socialism
Marx & Engels’ Communist Manifesto (1848)
radical socialism - industrial conditions in Manchester
reject private property as a social force for good
capitalism and revolutionary socialism are moral opposites
Marxism - Das Capital
An economic analysis not a moral philosophy
Tenet: class conflict will continue until economic forces in
society are liberated from the pursuit of continuous
profit (capitalism)
All change follows from economic production - politics,
religion, philosophy and the arts.
Society is divided into classes defined by economic
roles
religious, race, gender & other class conflicts stem from
economic differences.
The state (controlling political/legal authority) has a
class character
Change it (peacefully or violently).
Socialist criticisms of
capitalism
Workforce Exploitation
the majority can only sell their labour. Their return is wages.
Labour a factor of production - sold at less than real value vs. what
is produced.
employer hires labour solely to create added or 'surplus value'.
surplus value = profit
To maximise profits, minimise costs (wages & exploitation).
Alienation
people commoditised - not ends in themselves
Individual separated from product of his/her labour.
Cash nexus - wages are an economic not social obligation
'Divide and rule' - one class controls the others
Deskilling suppresses creativity and expression
Substitution with machine technology devalues character/dignity of
work.
Socialist criticisms of
capitalism - 2
Protection of vested interests
Ownership rewards a minority over the un-propertied majority
Inequality of master/servant relationships
Effects of over-production
Capitalism fundamentally unstable. Growth, slump, change cycle
Cannot provide jobs + higher living standards and maximise
profits.
Labour suffers from market fluctuations & bargains from weakness.
Capitalists have reserves.
Institutional inequalities
Institutions - monarchies, religions, owners, speculators, political
parties, banks etc maintain class rule & live off exploitation.
“Workers of the world unite”.
Abolish capitalism for justice and equality (ethical values)
Moral justification of
capitalism and free enterprise
"Capitalism is morally preferable to socialism" because it:
enhances moral value of individual freedom thru. thrift &
expression
 greater wealth for more people
 Efficient distribution system
 Preferred - we are free to choose our own economic
system.
When is profit acceptable - not excessive or exploitative?
What other mechanisms are at play? Note unions and
government in wage determination, profit sharing, better
living standards etc
Does capitalism, private ownership & mass production really
led to alienation of labour ? Will it disappear if no
ownership?

Friedman: The Business of
Business
is
Business
business has no wider obligation than to its shareholders
managers assuming a wider obligation are acting irresponsibly and
unethically.
Managers
 are agents whose role is to maximise returns for shareholders.
 no right to use shareholders' funds for social programmes.
 Action that detracts from this is tantamount to theft
Decisions about social provision are political decisions
 it is not the task of business people to act as politicians.
 Artifacts (the company) cannot have social responsibility only people
 "invisible hand" ensures that the pursuit of private ends leads to
maximisation of social benefit.
 Business pursuit of social ends will lead to sub optimum social
results.
 Legal conformance - the minimum and maximum social obligation.
Exercise
A trader sponsors her local home
of the mentally and physically
handicapped.
Using Friedman's view, what
factors may lead this to be a
legitimate or illegitimate act?
Critique of Friedman
the firm is not separate from the society in
which it is operating. It is part of that society.
the firm is a "responsible artifact".
Big business decisions and consequences
(investment, unemployment, etc) require a
political response.
business people have a strong influence on
law-makers. Heavy representation in state
policy and administration
Peer network and social backgrounds
The Social Contract View
The firm has contract with society
 institutional recognition through limited liability and legal
personality.
 society provides resources and infrastructure for socially
desirable outputs: production, employment, wealth creation.
 the firm can make a fair profit, subject to being a good
citizen (controlling pollution, protecting health & safety,
supporting community activities etc).
Society gives
 limited liability in return for socially responsible behaviour.
 permission to operate
if business reneges on contract, society has right to
 withdraw permission to operate e.g. revoke license
 impose conditions on its operations e.g. energy saving "duty
of care"
Stakeholder Theory (Kantian
and utilitarian)
moral obligation not just to its shareholders but to stakeholders
also - those who can be affected by its actions (or inactions).
 Employees
 Shareholders
 Customers
 Suppliers
 local community
 Government
 competitors?
 natural environment
But this is covered by commercial and social contract !!!
Exercise
Discuss the implications of
stakeholder theory for:
A. the owner (sole proprietor) of
a restaurant in a regional town
B. the chief executive of a
privatised water company
Exercise
What are the virtues and who are the virtuous in a
capitalist system?
the entrepreneurs?
 Innovating
 taking chances with their own (and other people's)
money?
the petit bourgeois?
 carefully managing their money
 spending in a restrained way
 saving to protect against a rainy day?
Values and beliefs in religion
Acquisition of polico-economic ideas thru. socialisation & education
Yet many values and beliefs based on a religious faith (something
more than ideology) - we feel more fulfilled:
'The believer who has communicated with his god is not merely a
man who sees new truths of which the unbeliever is ignorant; he
is a man who is stronger. He feels within him more force either
to endure the trials of existence, or to conquer them.'
Durkheim
Ingredients of religion
 Charisma.
 The Sacred and the Profane.
 Dogma.
 Rites, behaviours, ceremonies, rituals.
 The Cult.

Business and religion
Do the world's main religions +
humanism reflect capitalist values?
Do managers, in multicultural societies,
need understanding of leading religious
beliefs?
Do religious similarities/differences
influence formal and informal
exchanges between organisational
members at home and in the global
economy?
Buddhism
Nirvana achieved through goodness but not during lifetime.
Cycle of karma and rebirth
Karma affects how we will be reborn and our lives on the journey
Goodness in this life enhances future lives and vice versa.
worldly things are transient but take life sseriously.
Those on the path should not try too hard to change things, but
develop acceptance and forbearance through meditation.
Noble Truths: life is suffering caused by self-seeking .
Take the Eightfold Path:
right knowledge, right thinking, recognition of the noble truths,
willingness to abandon all that interferes with personal liberation.
Buddhism - ethical precepts
Refrain from taking life (vegetarianism)
Do not take what is not given
Practise charity
Avoid sexual misconduct through selfcontrol
Practise right speech. Refrain from lying
and malicious gossip
Abstain from intoxicating drinks and drugs
Find a 'right livelihood' which does not
interfere with achieving the precepts.
Buddhism - Cardinal virtues
love, compassion, joy, equanimity
(absence of greed, hatred, envy).
no underlying self, self-seeking is
futile.
Other virtues
 generosity, righteousness
 patience and wisdom
the greatest virtue = compassion for
others
Christianity - "Sin"a dominant
feature
Constant need of salvation & forgiveness
inherent selfishness, pride and self-reliance
 Goodness of creation inspires motivation & enterprise.
Business activity: working with God for the common
good.
Moral dilemma?
 What business does vs. actions undermining well-being.
Imperative: love thy neighbour + focus on the needy
Confront
 ideologies encouraging elitism, alienation or conflict
 governments that oppress access to God's bounty
 respect individuality - the "Golden rule"
 "growth and expression" in work and business.
 The vocation, a 'call' to do God's work diligently
Protestant - Catholic variants.

Christianity - "Sin"a dominant
feature
Constant need of salvation & forgiveness
inherent selfishness, pride and self-reliance
 Goodness of creation inspires motivation & enterprise.
Business activity: working with God for the common
good.
Moral dilemma?
 What business does vs. actions undermining well-being.
Imperative: love thy neighbour + focus on the needy
Confront
 ideologies encouraging elitism, alienation or conflict
 governments that oppress access to God's bounty
 respect individuality - the "Golden rule"
 "growth and expression" in work and business.
 The vocation, a 'call' to do God's work diligently
Protestant - Catholic variants.

Hinduism
teachings & practices seek 'liberation' or moksha - a way of
"seeing" partly achieved through good actions.
Samsara: belief in rebirth - a cycle until a soul achieves
liberation and integration into the 'ultimate being'.
Karma: Life's actions affect future lives of our soul.
Hindu ethics in scriptures (Vedas) explore links between
 social and spiritual life:
 moral actions: honesty, friendship, charity, truthfulness,
modesty, celibacy, religious worship, purity of heart, and
Abimsa, non-violence (Gandhi).
 Pursuit of virtues avoids the vices: bad intentions,
swearing, falsehood, gambling, egoism, cruelty, adultery,
theft, injury to life.
Islam
All God's creation is good
Wrong behaviour arises through disobedience of the 'Sharia'
(law)
The Qur'an (scripture revealed to Muhammad) and Sunna set
out the 'way of life' of the Prophet, recorded in the tradition
(Hadith).
God provides all necessary guidance for a life of good conduct .
Believers must follow this in private and public.
Tenets: the unity of God, human beings and of religion.
Shari'a requires (no exceptions)
 regulates almost every relationship across all Muslim
society, spiritual (between Creator & self) and secular.
 decent and benevolent actions
 no wrongdoing or harm to others
 Golden rule: deal with others as you would wish them to
deal with you.
Islamic ethical business &
commerce
history of international trade & diverse customs:
free enterprise & private property:
 Respect "community" and others right to 'eminent domain'
 Avoid abuse/waste
Profit: valid reward if reflecting brotherhood, solidarity, charity
& payment of 'Zakat' (tax).
Halal & Haram distinction between legitimate and illegal (riba)
profits.
Riba: No money lending but reasonable, fixed interest (profit)
Muslims may profit from own work or, if capital is involved,
when risk of loss is shared.
No profiteering from misfortune of others.
Speculation is contentious - legitimate risk vs. gambling
(prohibited).
Islamic ethical business &
commerce
Honest contractual obligations
key to commercial regulation between
Muslims & non-Muslims.
Taking unfair advantage of others is not
permissible.
Unconditional fairness: the means & end
of all transactions
Honesty: a virtue and requirement.
Investment in mutual funds or other
financial ventures: acceptable if investors
share risk of potential loss.
Judaism
Life's task: show God's 'righteousness' and 'holiness'
Torah and rabbinic teaching - the Talmud
Right and wrong actions - determined by God's laws.
 nothing immoral about possession & wealth acquisition
 Endeavour will satisfy economic needs.
 Pursuit of wealth is morally legitimate & essential.
 No spiritual value or redemption in poverty.
 powerful, all-pervasive Greed can result in injustice &
oppression.
 fear of uncertainty fosters Greed
 minimise risk through legitimate or moral means.
 In a world where we know our future needs and can
satisfy them, there would be no fraud, exploitation or
business immorality.
God will provide - so - no need to be unethical
Let the buyer beware? God's sees & knows everything so - full
disclosure by seller.
Humanism
Origins: classical Greek thought and European Enlightenment
Parallels in Buddhism and Confucianism.
Main tenets

'man is the measure of all things' - autonomous, rational,
moral
 the world sustains & constrains what we can do.
 Interpret life & the world from natural, rational perspectives
 Strive to endure, enjoy & work.
 scepticism about belief in fate & the supernatural
 rejection of authoritarian religions and ideologies.
commitment to democracy, education, science, secularism.
freedom & responsibility - obligation to judge, choose & act
rationally.
Knowledge of values, beliefs
and ideologies
Essential understanding for
democratic pluralism in global & tech. environments.
balancing political or religious beliefs in a multicultural society by
 not opposing different belief-systems
 adopting the 'Golden Rule' in day to day practice.
Capitalism: supported and challenged by various
ideologies
these have moral commitments (more than greed/envy).
major religions - not opposed to non-exploitative business
share belief in
 uniqueness of the individual and place in community.
 business contribution to community needs and adherence to
its norms.
 problems in reconciling raw profit-seeking with religion &
humanism
FONTE: 43
http://www.brunel.ac.uk/~bus
tcfj/ethics/ideology.ppt