The Ethics of (BK?) Business
Posted: 31 May 2011
The Ethics of Business by Christopher Drake
Profits or prophets? Chris Drake looks over his shoulder at the latest perceptions of moral and ethical values in commerce.
In the past two years several major scandals have rocked the world of business. These have affected high-profile names in the City of London such as centuries-old Barings Bank, which collapsed under US$1.3bn in debt, and the highly reputable Morgan Grenfell.
Elsewhere, the New York branch of Daiwa racked up losses of US$1.1bn through trading US Treasury bonds, while the secret copper trades of ‘Mr. Five Percent’ at Japan’s Sumitomo resulted in losses now put at US$2.6bn. Prominent politicians in India and Pakistan, and even two former Presidents of Korea, have all been given leading parts in an unending gallery of greedy rogues.
In a case of widespread fraud at German steel and engineering giant Thyssen, one of the top anti-corruption prosecutors said “We are witnessing a loss of values in Germany. Moral and ethical principles in German boardrooms have gone to the dogs ... the only thing that seems to matter is profits and selfish materialism.” Lax controls, the bending of rules and white-collar crime are seen as having reached epidemic proportions with allegations from Australia to Alaska tarnishing household names previously seen as representing the paragon of boardroom ethics....
....the values we should express in business are the values that we aspire to in our moral and social lives.
What does this mean in practical terms? A number of things including:1. The business should not involve an activity of itself immoral.
2. Look closely at how the business is run. On what values or principles are decisions and actions based?
3. What are the motives of those involved in the business? Why are they carrying it out?
4. Given that the business itself passes these tests, what effect does it have on people and their lives?