Ethics in the International Context

1. Ethics in the International Context Tuesday, May13th 2014Prof. Birgit Weyer, M.Sc., D.M. International Project Week, Helsiniki

2. 1 What are goals of today‘s lecture? Students are able to understand the context of ethics in business They know the basic assumptions of how individuals develop morals They can name business functions frequently concerned with ethical questions They now how Corporate Social Responsibility is defined and how it can be measured 01.11.2014 Unternehmensethik International Project Week, Helsiniki 2

3. 2.1 Definition Ethics und Moral • Morals = Norms and values in action = Behavior • Ethics = Clarification and justification of these norms and values based on reflection International Project Week, Helsiniki

4. 2.2 Ethics in the Business Context (Source: see Waibl, 2005) International Project Week, Helsiniki

5. 2.3 Ethics – a Science 01.11.2014 International Project Week, Helsiniki 5

6. 2.3 Ethics – a Science 01.11.2014 International Project Week, Helsiniki 6

7. 3. How We Develop Morals International Project Week, Helsiniki

8. ´3.1 Nature or Nurture? Experiment streetcar out of control15 workers in deadly danger, what would you do? Switch the tracks – 1 innocent man dead, push the heavy-set person, do nothing? 300.000 people questioned Religion, education, age, culture are not a factor Moral is nature not nurture(Marc Hauser, Cognitive Psychology Harvard Universität) Wir don‘t care about side effects,if we don‘t have to act directly! International Project Week, Helsiniki

9. 3.2 Do Animals have Morals? Experiment Primates – Cucumbers or grapes?Franz Deval (Center for primates in Atlanta) Sense of fairness as basis for moral understanding Moral beginns with carrying for others- empathy- favours for one another- care for others- making up after quarrels Advantages for survival by holding back egoism International Project Week, Helsiniki

10. 3.3 Tabula Rasa or Everything There? Aristoteles (blank slate being written on successively) Jean Piaget (4 step of development) Kohlberg (Cognitive theory of development of moral judgement) Experiment „Is it ok to steal sweets and how would you feel when eating them?“Moral knowledge has categorical meaning (it is bad, but not, it is not allowed) Moral motivation develops later(stolen sweets taste good to kids up until 11 years of age) Moral knowledge and moral motivation are different processes International Project Week, Helsiniki

11. 3.4 Do Babys have an understanding of morals? Babys between 6 and 10 month old Observation of figures with different colors Figure tries to climb hill – helper – hinderer are being shown Later on, babies choose helper Facial reaction when closeness to hinderer is befriended Social understanding necessary for moral system International Project Week, Helsiniki

12. 3.5 Universal grammar of moral Universal principles of morals are natural, not conscious Differentiation between active and projected passive damage (e.g. assisted death) Action is evaluated as more negative, even when the result is the same Moral decision are frequently a reflex and are taken sub-consciously Intuitive actions should be replaced by rational decisions International Project Week, Helsiniki

13. 3.6 How our brain takes moral decisions? Prefrontal cortex localized through MRT However, brain is a network and very complex Braindamaged patients have no „emotional breaks“, they only act based on the end (e.g. streetcar accident) Map of the brain is not really researched International Project Week, Helsiniki

14. 3.7 The Moral Dilemma (Source: see. Kohlberg, 1996) International Project Week, Helsiniki

15. 3.8 Levels of Moral Behavior 3. Postconventionelle Ebene(few adults afterage 20) 2. Conventional Level(most teenagers and adults) 1. Preconventional Level (up to 9 years) (Source: see Kohlberg, 1996) International Project Week, Helsiniki

16. Levels of Moral Development • Reward and punishmentPunishment should be avoided and the power of authority should be obeyed • Keeping the goal in mindInterests and needs are satisfied while living in a world where consideration for others is necessary. Preconventional level International Project Week, Helsiniki

17. Levels of Moral Development • Agreement with othersOne wants to fulfill the expectations of loved ones. It is important to have positive intentions and to help others. • Orientation toward society It is good and important to support groups or institutions. Responsibilities have to be fulfilled and law has to be obeyed (unless this collides with other commitments) Conventional Level International Project Week, Helsiniki

18. Levels of Moral Development Postconventional Level • Social contract and individual rightsLaws are to benefit every one and to protect the rights of all. There should be biggest possible use for the greatest number of people. Life and freedom are values of absolute value. • Ethical principles An individual who is reasoned believes in the validity of moral principles and feels personaly obligated. Principles are general believes of fairness, e.g. equal rights. International Project Week, Helsiniki

19. Moral Thinking and Acting are Situational • Component 1: Interpretation of the situation with regard to the effects on our behavior on others • Component 2:State what a moral action would be: Identification of what moral actions would look like in a specific • Component 3:If, conflicting values, select the value which is most important. Decision on whether to act on the value in a particular situations • Component 4: Acting upon and finishing what you intend to do. (Source: see Rest, 1986) International Project Week, Helsiniki

20. 2.4 Ethics – a Science 01.11.2014 International Project Week, Helsiniki 20

21. 4. Which Values Give Orientation? International Project Week, Helsiniki

22. Value Oriented Thinking as Support for Normative Ethics Philosophy (Aristoteles, Kant)(Philosophical ideas give concrete behavioral advise) Society(Businesses are part of the system with norms and values) Law(Basic values are reflected in laws and regulations) Theology(Principles and guidelines reflect religious believes) (Quelle: vergl. Haupt & Lachmann, 1998) 01.11.2014 Unternehmensethik International Project Week, Helsiniki 22

23. 5. Moral Topics in Business • http://www.scu.edu/ethics/practicing/focusareas/cases.cfm International Project Week, Helsiniki

24. 5.Should Businesses Carry MoralResponsibility? • Who? • For Whom? • What For? • http://www.scu.edu/ethics/practicing/focusareas/cases.cfm International Project Week, Helsiniki

25. Beyond legal requirements… • Germany § 14 Constitution • Property is an obligation. Using it should be positive for society. • EU Commission has picked up on this thought in 2000 Greenbook International Project Week, Helsiniki

26. 6. Corporate Social Responsibility „Concept, which should be the basis for companies to include social matters and environmental matters into business and stakeholder management on a voluntary basis...“ http://www.youtube.com/watch?v=yzvy5IgqTvw Source: Greenbook, Europäische Kommission, 2001 International Project Week, Helsiniki

27. 6.1 What promotes CSR? Reduced influence of governments due to- Reduced Ressources- Misstrust against regulation Call for more transparence Increased customer interest on ethical behavior of companies influencing - Buying behavior- Investment behavior Battle for employees Conditions on the supplier market(Source: http://www.bsdglobal.com/issues/sr.asp) International Project Week, Helsiniki

28. 6.2 Levels of Responsibility Core Business Society Legal Framework Source: Hansen & Schrader, 2005 International Project Week, Helsiniki

29. Tripple Bottom Line oder 3-Pillar Principal Sustainability Economy Ecology Society International Project Week, Helsiniki

30. Central Elements in CSR CSR in the Core Business (own company and suppliers)- Environmentally safe production- Minding working norms- Protection of human rights- Avoiding corruption CSR in society- Corporate Giving (Spenden und Sponsoring)- Corporate Volunteering CSR in legal framework- Lobbying- Self-regulation Quelle: Hansen & Schrader, 2005 International Project Week, Helsiniki

31. 6.3 CSR Related Concepts Corporate Governance Foundations Corporate Citizenship CSR Sustainable Development Volunteering Business Ethics Giving International Project Week, Helsiniki

32. What are typical measures? Engagement in society and science(foundations, education, societal support) Engagement for environment(sustainability, architecture, energy efficiency, recycling, CO2-reduction) Engagement for employees(development, life balance, equal opportunity, health and safety) Protection of youth(Behavioral codex) International Project Week, Helsiniki

33. An Example.... • http://www.youtube.com/watch?v=_1YKPF2ycLQ International Project Week, Helsiniki