1. Values Beliefs Ideology

2. Overview Terminology? Capitalist, liberal and socialist ideologies Significance for values and beliefs? Major religions and secularism Management in a multicultural society - accommodating differences in individual values?

3. Value and Belief Value 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 X Ethics: principles or standards to judge what is important or valued in life. Belief mental 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.

4. 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 19 th C society also had poverty, unemployment & poor health. Marx & Engels - “ideology” - feature of class-divided societies.

5. Many perspectives on capitalism Right: conservative UK is socialist - state-funded welfare system Left: Soviet Union was practising state capitalism. many variations in different economies: China, Japan, USA, Germany, Sweden.

6. 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 is maximises 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

7. Tenets Capitalist, free enterprise system Origins Asia and 14 th C (Catholic) Italy. Protestantism and the 'capitalist work ethic' private ownership: property + means of production consumer 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

8. Growth 14thC. Italy (banking) Mercantilism and state monopolies English capitalist growth 17thC --> 1920s. technological advance & industrialisation liberalisation, corporations, enterprise funding USA post-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. Globalisation

9. 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 political philosophy with different emphasis

10. 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

11. Libertarianism Focus 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 rights enforce laws of ownership & property transfer defend the realm & protect against violence to person or property enforce the law of contract. No role to provide education or health or general welfare unless owners of property agree to fund it Minimise taxation. Leave to charity, social provision for those who cannot afford to pay or insure.

12. Libertarians oppose slavery, children working in factories support self-determination of smaller nations universal suffrage, press freedom trade unions religious tolerance hierarchy and privilege privatisation Republicans & red-necks?

13. 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-interest Governments: refrain from regulating business activity. Laissez-faire encourages free trade and wealth generation. Smoke-filled rooms and moral sentiments Friedman moral defense of capitalism critique of corporate social responsibility.

14. Egalitarianism (utilitarian) Fairness - most important societal value right to a fair share in the product of that society share 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 state define fair share + policies to distribute

15. Exercise Nation of 1000 members strong 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?

16. 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.

17. Socialism - late 18th and 19th centuries Utopian socialism Thomas More’s Utopia. common sharing, community of property & means of production Communes to practise 'true Christianity' & redress harsh socio-economic conditions of industrial change. Revolutionary socialism Marx & Engels’ Communist Manifesto (1848) radical socialism - industrial conditions in Manchester reject private property as a social force for good capitalism and revolutionary socialism are moral opposites

18. Marxism - Das Capital An 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 roles religious, race, gender & other class conflicts stem from economic differences. The state (controlling political/legal authority) has a class character Change it (peacefully or violently).

19. 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). Alienation people commoditised - not ends in themselves Individual separated from product of his/her labour. Cash nexus - wages are an economic not social obligation 'Divide and rule' - one class controls the others Deskilling suppresses creativity and expression Substitution with machine technology devalues character/dignity of work. Unfair and undemocratic.

20. Socialist criticisms of capitalism - 2 Protection of vested interests Ownership rewards a minority over the un-propertied majority Inequality of master/servant relationships Effects of over-production Capitalism fundamentally unstable. Growth, slump, change cycle Cannot provide jobs + higher living standards and maximise profits. Labour suffers from market fluctuations & bargains from weakness. Capitalists have reserves. Institutional inequalities Institutions - 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)

21. 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 etc Does capitalism, private ownership & mass production really led to alienation of labour ? Will it disappear if no ownership?

22. Friedman: The Business of Business is Business business has no wider obligation than to its shareholders managers 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.

23. 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?

24. 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 administration Peer network and social backgrounds

25. 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"

26. 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 S hareholders Customers Suppliers local community Government competitors? natural environment But this is covered by commercial and social contract !!! Political call to arms Claim rights of un-elected, self appointees Lobbyists and radical action groups

27. Exercise Discuss the implications of stakeholder theory for: A. the owner (sole proprietor) of a restaurant in a regional town B. the chief executive of a privatised water company

28. Exercise What 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?

29. 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.' Durkheim Ingredients of religion Charisma. The Sacred and the Profane. Dogma. Rites, behaviours, ceremonies, rituals. The Cult.

30. Business and religion Do 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?

31. Buddhism Nirvana achieved through goodness but not during lifetime. Cycle of karma and rebirth Karma 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.

32. Buddhism - ethical precepts Refrain from taking life (vegetarianism) Do not take what is not given Practise charity Avoid sexual misconduct through self- control Practise right speech. Refrain from lying and malicious gossip Abstain from intoxicating drinks and drugs Find a 'right livelihood' which does not interfere with achieving the precepts.

33. 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

34. 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.

35. 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.

36. Hinduism teachings & 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.

37. Islam All God's creation is good Wrong 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.

38. Islamic ethical business & commerce history of international trade & diverse customs: free enterprise & private property: Respect "community" and others right to 'eminent domain' Avoid abuse/waste Profit: 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).

39. Islamic ethical business & commerce Honest 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 transactions Honesty: a virtue and requirement. Investment in mutual funds or other financial ventures: acceptable if investors share risk of potential loss.

40. Judaism Life's task: show God's 'righteousness' and 'holiness' Torah and rabbinic teaching - the Talmud Right 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 unethical Let the buyer beware? God's sees & knows everything so - full disclosure by seller.

41. Humanism Origins: 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.

42. 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 business share 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

43. FONTE: 43 http://www.brunel.ac.uk/~bus tcfj/ethics/ideology.ppt