ValuesBeliefs

Ideology

ValuesBeliefs

Ideology

Overview

Terminology?Capitalist, liberal and socialist ideologiesSignificance for values and beliefs?Major religions and secularismManagement in a multicultural society - accommodating differences in individual values?

Value and BeliefValue 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 XEthics: principles or standards to judge what is important or valued in life.

 Beliefmental 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 19thC 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 systemLeft: 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 ismaximises human freedom and, from history, well-being. 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

TenetsCapitalist, free enterprise system  

Origins Asia and 14thC (Catholic) Italy. Protestantism and the 'capitalist work ethic'

private ownership: property + means of productionconsumer 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 

Growth14thC. Italy (banking)Mercantilism and state monopoliesEnglish capitalist growth

17thC --> 1920s. technological advance & industrialisation liberalisation, corporations, enterprise funding

USApost-Civil War. Go West, agriculture, communications, population growth. Corporate institutions. Bureaucratic systems (stability & growth). Economies of speed & efficiency. Mass marketeers & distribution. International expansion

Modern organisation - human construction with a life of its own.

Globalisatio

n

Globalisatio

n

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. Two schools of p

olitical p

hilosophy

with diffe

rent emphasis

Two schools of politi

cal philo

sophy

with diffe

rent emphasis

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

LibertarianismFocus 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 rightsenforce laws of ownership & property transferdefend the realm & protect against violence to person or propertyenforce the law of contract.No role to provide education or health or general welfare unless owners of property agree to fund itMinimise taxation. Leave to charity, social provision for those who cannot afford to pay or insure.

Libertariansoppose slavery, children working in factoriessupport

self-determination of smaller nationsuniversal suffrage,press freedomtrade unionsreligious tolerancehierarchy and privilegeprivatisation

 

Republicans &

red-neck

s?

Republicans &

red-neck

s?

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-interestGovernments: refrain from regulating business activity. Laissez-faire encourages free trade and wealth generation.Smoke-filled rooms and moral sentimentsFriedman moral defense of capitalism critique of corporate social responsibility.

Egalitarianism (utilitarian)Fairness - most important societal value

right to a fair share in the product of that societyshare to the weak generally > laissez faire portion

Problem: defining & measuring fairness and "felt fairness" Judgment about fairness depend on subjective views 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.

Role of statedefine fair share + policies to distribute

ExerciseNation of 1000 membersstrong 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 socialismThomas More’s Utopia. common sharing, community of property & means of productionCommunes to practise 'true Christianity' & redress harsh socio-economic conditions of industrial change.  

Revolutionary socialismMarx & Engels’ Communist Manifesto (1848) radical socialism - industrial conditions in Manchesterreject private property as a social force for goodcapitalism and revolutionary socialism are moral opposites

Marxism - Das CapitalAn 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 rolesreligious, race, gender & other class conflicts stem from economic differences.The state (controlling political/legal authority) has a class characterChange 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).

Alienationpeople commoditised - not ends in themselvesIndividual separated from product of his/her labour. Cash nexus - wages are an economic not social obligation'Divide and rule' - one class controls the othersDeskilling suppresses creativity and expressionSubstitution with machine technology devalues character/dignity of work.

Unfair and undemocratic.

Unfair and undemocratic.

Socialist criticisms of capitalism - 2

Protection of vested interestsOwnership rewards a minority over the un-propertied majorityInequality of master/servant relationships

Effects of over-productionCapitalism fundamentally unstable. Growth, slump, change cycleCannot provide jobs + higher living standards and maximise profits. Labour suffers from market fluctuations & bargains from weakness. Capitalists have reserves.

Institutional inequalitiesInstitutions - 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 etcDoes 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 shareholdersmanagers 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 administrationPeer 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 !!!

Political call to

arms

Claim rights of u

n-elected, self appointees

Lobbyists and radical actio

n groups

Political call to

arms

Claim rights of u

n-elected, self appointees

Lobbyists and radical actio

n groups

Exercise

Discuss the implications of stakeholder theory for:

 A. the owner (sole proprietor) of a restaurant in a regional townB. the chief executive of a privatised water company

ExerciseWhat 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.'

DurkheimIngredients of religion

Charisma. The Sacred and the Profane. Dogma. Rites, behaviours, ceremonies, rituals. The Cult.

Business and religionDo 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?

BuddhismNirvana achieved through goodness but not during lifetime. Cycle of karma and rebirthKarma 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 givenPractise charityAvoid sexual misconduct through self-controlPractise right speech. Refrain from lying and malicious gossipAbstain from intoxicating drinks and drugsFind 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.

Hinduismteachings & 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.

IslamAll God's creation is goodWrong 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/wasteProfit: 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 & commerceHonest 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 transactionsHonesty: a virtue and requirement. Investment in mutual funds or other financial ventures: acceptable if investors share risk of potential loss.

JudaismLife's task: show God's 'righteousness' and 'holiness' Torah and rabbinic teaching - the TalmudRight 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 unethicalLet the buyer beware? God's sees & knows everything so - full disclosure by seller.

HumanismOrigins: 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 businessshare 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: 43http://www.brunel.ac.uk/~bustcfj/ethics/ideology.ppt