Strategy Ethics Leadership These three areas of inquiry and practice are very similar. All three involve knowing the situation and circumstances. Also, “leadership is about service not about power” just as strategy and ethics also both involve service and power. 8 REALLY IMPORTANT IDEAS IN STRATEGY & ETHICS FOR 21ST CENTURY 1. FP&R: future-proofing and resilience 2. RBMHG: reasonably-balanced mixture of the human goods 3. KLMBS: known limitations of market based systems 4. LPAMC: levers to pull to avoid mega-catastrophes 5. PGMIBG: public-good missions involving business and govt 6. GEHI: the general effectiveness of human intentions 7. TBRT: table of blue vs. red themes 8. MFoC & MOMA: the moral foundations of capitalism and a more-obviously-moral approach Capitalism & strategy wealth, negative-freedom (from state regimes) pleasure, aesthetics positivefreedom, health, happiness justice & fairness, negative-freedom (from private regimes) friendship, sociality care, nobility, charity More obviously moral approach KLMBS Monopolistic tendencies (concentration of power, wealth) Ignores aspects of Distributive-Justice (distribution of wealth and the HGs). Many lack the ability to pay for anything (no endowment, or legitimate opportunity) Lack of Information (about the things being exchanged, purchased) Preference vs. well-being (the dark psyche; the creation of desire) Externalities (e.g. un-priced pollution, no restorative-j) Un-priced public-goods (e.g. the benefits we all obtain when everyone else is healthy). Lack of universal access to non-rival goods (in strong IPR regimes) LIMITATIONS Monopolistic tendencies Distributive-Justice Ability to pay Information Preference vs. well-being Alienation Non-rival goods Externalities Public goods COMPENSATIONS Direct Support anti-trust, assist swarm Indirect Healthy offerings, education Indirect Restorative offerings Community projects Direct Mid-century Canyon wealth Leverage Factors 1st & 2nd worlds Trans-human civilization Mega -cats? Transhumanist divide USA average Lifted 4th & 3rd worlds 3rd & 4th world 2015 Momentum - Trends 2bn+ in squalor 2045 2100 PGSIBG Co-opetition & Self-governance e.g. Global Compact CSR Compensate for all KLMBS, In pursuit of dual mission & vision Corporation optimize tax globally Partner & engage for shared mission Lobbying & constructive engagement for common good, anti-corruption, etc. Informative advertising to explain KLMBS & HG-government Global Common Good Endorse & support HG-government cultivate & implant justice, efficiency, health, positive -freedom, happiness, etc. Government(1) I-NGO’s TGI’S & Lobby for selected HG’s & global good Government (2) Government (n) Build trust facilitate stability, Huri coordination & harmonization Networks e.g. UN, OECD Hypercompetitive Global Capitalism Hyper-competitive strategy CSR Compensate for selected KLMBS, to achieve valued reputation effects Corporation minimize tax globally Ignore, partner for reputation & ideology, or monitor & disrupt global quasifeudal corporate society Narrow lobbying to enable increased exploitation of KLMBS Selectively endorse & support sub-set of HG’s stability, contracts, negative-freedom, Political or ideological advertising Government(1) I-NGO’s TGI’S & Lobbying for selected HG’s or policies Government (2) Government (n) Build trust facilitate stability, Huri coordination & harmonization Networks e.g. UN, OECD Deliberate, intentional “Realized” Strategy Planned Strategy Unforeseen changes “un-realized” Strategy* This aspect of strategy did not work out Circumstances that strategist does not control but perhaps co-creates Emergent Strategy “Things just evolve in unpredictable ways” “The business system is an ecology” Deliberate, intentional Expected costs to society Due to Exploitation of KLMBS Realized* benefits for self & society Planned benefits for self Unforeseen changes un-realized outcomes Parts of the plan “came to nothing” Circumstances that strategist does not control but perhaps influences emergent Invisible benefits for hand self & society “Things just evolve in unpredictable ways” “The business system is an ecology” …by pursuing self-interest man frequently promotes the interest of society more effectively than when he directly intends to promote it (as if by an invisible hand). Adam Smith 1776 * i.e. “becomes real” Low expected costs to society Deliberate, intentional Planned Benefits for self & society Unforeseen changes “un-realized” outcomes This aspect of the plan “came to nothing” Due to compensation for KLMBS “Realized” Benefits for self & more for society Circumstances that strategist does not control but perhaps influences emergent benefits for self & society “Things just evolve in unpredictable ways” “The business system is an ecology” …by directly intending to promote the interest of self and society man frequently does promote both quite effectively(Business Ethics) Comments COMPONENT LEFT-POLE RIGHT-POLE KLMBS Compensate, refrain exploit Exploiting KLMBS yields market-power and generates “above normal” returns to s/h. Value-priority justice efficiency Econ.-efficiency implies aggregate wealth, so these values are like HG’s Variants stakeholder shareholder Variants of capitalism (legal, cultural) or models of strategic management (conceptual) Capitals multi-forms financial forms Human, social, ecological, cultural, moral, political, economic; Classes of equity and debt Politics econ-left econ-right Strong positions often reflect partial-knowledge, sense of identity, vague emotions Timing ethics now ethics later Co-opetition co-operation C competition D Language values-based value-based Agency (resp) corporate individual First get rich, then maybe give it to charity when you get old (but you won’t give enough) Dynamic prisoners’ dilemma games explain a lot about strategy and ethics. E.g. Tit-forTat There are separate (political) discourses, e.g. “Value-Based-Mgmnt” means s/h wealthmaxn. Pol-left endorses CM-Resp concept (like stakeholder modl.), right emphasizes indiv resp. Agency (rights) individual corporate Trust in governments in markets Hopes enlightenment for all prosperity for self Passions isothymic megalothymic Leader-style transformational transactional Focus We/the other I/the self Left wants to elevate peoples’ consciousness, Right seeks personal salvation or prosperity. Passion for justice or for power? Plato noted the two types of character (cf. virtue ethics). t-forml leader inspires and changes others’ abilities; t-actl uses +/- incentives (exchanges) Several psychological theories focus on this fundamental distinction (Etzioni, Piaget, Wu) Yin/Yang yin yang Female and male aspects in balance. L-R alignment is partial; yang includes “the light” Science Ecology Engineering Rate of innovn Gradual, evolving Rapid, driven Broadly, the right has an engineering view of economics; left has ecologicalunderstanding Weber noted that many do not want innovation, but just want to live in their “accustomed way” Pol-right endorses CM-Ri like right to political speech and funding. Left wants equal voices. Right tends to trust markets more than governments to deliver a satisfying HG mix. FORM OR THEORY Consequentialism Act vs. Rule sub-forms Utilitarianism without justice. Ethical Egoism. Utility-maximization (in markets) Utilitarianism with justice Deontology Ethic of Care. Contractarianism The spanning-theories CENTRAL IDEA Consider expected HG consequences of each considered action Each decision separately vs. use utiln-justified general rules. seek “the greatest good for the greatest number”, OK with slavery Best for oneself (including identity aspects & freedoms) Optimized satisfaction of participants’ preferences (good or bad). Associated with ‘let market decide’, if you ignore KLMBS. “Greatest good” but no-one is suffering beyond a reasonable limit. Logic, categorical imperative: Golden rule, others as ‘ends’. Feminist, care, kindness; Balance vs . Feminist or Socialist Revoln? Moral-political, free agreement & exchange, veil of ignorance, justice (difference) principle Dialectics (synthesis), Pluralism (all forms), Pragmatism (inquiry), Particularism (case-by-case) Virtue-ethics (character).