Newswise — Perhaps the only people who find some delight in the current economic crisis are analysts and ethicists. The financial meltdown has spawned a number of intriguing questions that challenge market paradigms and invite examination of key ethical questions related to business.
Much of the stagnation in the economy and the suffering it has caused has been due to shortsightedness and poor decision making. But decisions don't simply happen; they are willful and deliberately chosen courses of action. To choose one course of action over another is to affirm the value of what is chosen and hold another possible avenue as less important. So it is worthwhile to explore what values — or lack thereof — that have generated these uncertain times if we are to avoid future pitfalls.
The many rounds of Congressional hearings, economic summits, and meetings of financial analysts are doing just that. What we are witnessing is a collective examination of business consciousness — a type of soul searching that should reveal the missteps and choices that have polluted the business spirit. Underlying all the discussion and formulation of proposals are value judgments regarding the "right" or "good" direction that government and businesses should take. Considerations are being made about acting "responsibly" and giving Wall Street, Main Street and the American people a "fair'' deal.
These terms signify that the resolution of the problem hinges on qualitative as well as quantitative judgments. One can easily assign numeric values to tax rates, bailouts and volume of shares traded, but how does one measure the irresponsibility of some lending practices, the mismanagement of assets or the pain of hundreds of thousands of families who face precarious financial instability? These values are impossible to add up on fingers. The foundational role that ethical values play in making business decisions goes unnoticed by many because they do their work in silence.
While it is true that the number one value of business in a capitalistic economy is profit, the current crisis reveals that it cannot be isolated from others. Pursuit of profit is restrained by a matrix of other equally important values. Profit may not be had by exploiting human weakness or misuse of public funds because such choices are immoral and have detrimental consequences for business and society. The acquisition of profit and economic growth needs to be contextualized within a broader framework of values.
Robert C. Solomon argued that business is like a game, both have specific goals and rules by which they are played: rules frame the game, as well as the actions of the players. It seems that the current examination of business consciousness is about reviewing the rulebook and rediscovering the fundamentals of the game. Business demands an appreciation of those characteristics or values that ensure the game of business be played fairly, so that players have the best chance of winning.
In his book, "The Power of Principles; Ethics for the New Corporate Culture," Father William Byron, S.J., proposes several values essential for ethical business. They are: integrity, veracity, fairness, human dignity, workplace participation, commitment, social responsibility, the common good, subsidiarity and love. In his introduction, Byron explains the importance of the word "principles." He defines them as "initiating impulses" or "internalized convictions that produce action." As such, they are the foundational values that underlie the ethical choices that a business makes.
What I like most about Byron's approach is that he doesn't rely on academic, scholarly tomes to argue his thesis. His sources are prominent leaders from large and small businesses from across the country who share their thoughts on how these values influence their everyday business decisions. In Solomon's terms, they are the star athletes who know how the game is played successfully and fairly.
His text demonstrates that talking about values in the workplace is not mere window dressing and how some business leaders take their ethical obligations seriously. In the examination of business consciousness, the values explored by Byron can serve as an index by which to evaluate choices and measure right and wrong. If we accept Solomon's analogy, these values can help business leaders and government entities establish perimeters and boundaries for the game, knowing when lending money ought to be "out of bounds" or if bail outs will be "off sides" or an "unfair advantage."
Like all past economic crisis, we hope that this one will soon pass. The numbers will eventually add up, there will be more profit than loss, God will be in heaven, and all will be right in the business world. However, if this happens without an appreciation for those ethical missteps that contributed to the problem, we will miss a perfect opportunity to prevent future meltdowns. In addition to all the numeric financial analysis, what we also need is an examination of business consciousness and the essential role that values play in its formation.
Charles Zola, Ph.D., is the executive director of the Ethics Institute of Northeastern Pennsylvania at Misericordia University.
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