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Business
Ethics MGT610
VU
LESSON
14
MORALITY
IN INTERNATIONAL CONTEXTS
Thefollowing
four questions can help
clarify what a multinational
corporation ought to do in
the
face of these difficulties:
1.
What does the
actionreally mean in the
localculture's
context?
2.
Does the action
produceconsequences that
areethically acceptable
fromthe point of
view
of at least one of the four ethical
theories?
3.
Does the local
governmenttruly represent the will of
itsentire people?
4.
If the morally
questionableaction is a common
localpractice, is it possible to
conductbusiness
there withoutengaging in
it
Thischapter
examines the ethicalaspects
of the market
systemitself--how it is justified,
and
whatthe
strengths and weaknesses of the
system are fromthe
point of view of ethics. It
begins
by
discussing the
economicconditions in the
U.S. at the close of the
20thcentury, when
proponents
of industrial policy
wereurging the government to
help declining industries
and
theirworkers
to adjust to neweconomic
conditions. Othersurged
caution, advisingthe
government
to "avoid the pitfalls of
protectionism." This
dichotomyillustrates
thedifference
betweentwo
opposite ideologies, those whobelieve in
the "free market" and those
who
advocate
a "planned" economy.
These
two ideologies take
differentpositions on some
very basicissues: What is
humannature
reallylike?
What is the purpose of social
institutions? Howdoes
society function?
Whatvalues
should
it try to protect?
In
general, two
importantideological camps,
theindividualistic and
communitarianviewpoints,
characterizemodern
societies. Individualisticsocieties
promote a limitedgovernment
whose
primary
purpose is to protect property,
contractrights, and open
markets.Communitarian
societies,
in contrast, define
theneeds of the community
first and then define the
rights and
duties
of community membership to ensure that
those needs are met.
These
two camps face the problem
of coordinating the
economicactivities of their members
in
twodistinct
ways. Communitarian systems use a
command system, in which a
singleauthority
decideswhat
to produce, who will produce
it, and who will get it.
Free market systems
are
characteristic
of individualistic societies.
Incorporatingideas from
thinkers likeJohn Locke
and
AdamSmith,
they allow individualfirms
to make their own decisions about
what to produce
and
how to do so.
Freemarket
systems have two
maincomponents: a private
propertysystem and a
voluntary
exchangesystem.
Pure free market systems would
have absolutely no constraints on
what one
can
own and what one can do
withit. Since such systems
wouldallow things like
slavery and
prostitution,however,
there are no puremarket
systems.
FreeMarkets
and Rights: John Locke
JohnLocke
(1632-1704), an Englishpolitical
philosopher, is generallycredited
with
developingthe
idea that human beings have
a "natural right" to liberty and a
"natural right" to
privateproperty.
Locke argued that if there
were no governments,human beings
wouldfind
themselves
in a
state of nature. In
thisstate of nature, each
manwould be the political
equal of
allothers
and would be perfectlyfree of
any constraintsother than
the law
of nature--thatis,
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Business
Ethics MGT610
VU
themoral
principles that God gave to
humanity and that eachman
can discover by the use
of
hisown
God-given reason. As he putsit, in a
state of nature,all men
would be in:
"A
state of perfect freedom to
order their actions and
dispose of
theirpossessions
and
persons as they think
fit,within the bounds of
thelaw of nature,
withoutasking
leave,
or depending upon the will of
any other man. A state also
of equality, wherein
allthe
power and jurisdiction is reciprocal, no
one having morethan
another...
withoutsubordination
or subjection [toanother]....
But... thestate of nature
has a
law
of nature to govern
it,which obliges everyone:
and reason, which is that
law,
teachesall
mankind, who will butconsult
it, that beingall
equal and independent,
no
one ought to harm another in
his life, health, liberty,
or possessions."
Thus,according
to Locke, the law of nature
teaches us that we have a
natural right to
liberty.
Butbecause
the state of nature is so dangerous,
says Locke,
individualsorganize
themselves
into
a political body to
protecttheir lives and
property.The power of
government is limited,
however,extending
only far enough to protect
these very
basicrights.
Locke'sviews
on property rightshave been
very influential in America.
The FifthAmendment
to
the U.S. Constitution even
quotes Locke directly. In
thisview, government does
notgrant or
createproperty
rights. Rather,nature does,
and governmentmust therefore
respect and protect
theserights.
Locke's view thatlabor
creates propertyrights has
also beeninfluential in
theU.S.
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