In this book, we have developed some characteristics related to evolution and change in civilizations. They are composed of three main factors: lack of skills, ignorance and greedy attitudes.
We will just remind ourselves that this has been the case for a very long time. We can quote the French essayist and moralist Jean de la Bruyère [DEL 88]: “Everything has been said, and we have come too late, now that men have been living and thinking for seven thousand years and more.”
This means that our world is never perfect: according to the changes occurring in our society and our lives, there will always be problems of justice, equality and ethics. To quote de la Bruyère [DEL 96] again, we can say: “life is a tragedy for those who feel, and a comedy for those who think”.
Ethics is neither a lyrical subject nor an obsolete subject intended to satisfy skeptics. We must always fight to reduce greed and replace forgotten values, conventional rituals and references by rules of ethical behavior, leaving room for messianic salvation and justice.
As in the Rotary association (with our motto: “serve first”), ethics is always a “life” to build and not a grace to receive.
Ethics is what allows us to increase our space of liberty, our number of possible choices, and ultimately it preserves freedom and peace.
All throughout this book, we have tried to explain why greed is such a societal bankruptcy and why and how ethics is able to overcome the failures of current social and political systems. This is again of utmost importance since we are living in complex systems subject to holism and nonlinear dynamics.
Also, we must not forget that our world is again becoming spiritual (see Chapter 8 on Ethics and Spirituality) as in a periodic phenomenon, and that strong relationships exist between ethics and sustainability. Otherwise, if we continue ignoring such basic principles, nature will undertake a kind of societal “cleaning”: indeed, humankind is only an avatar of nature, we are just an element of a large puzzle, interdependent living beings.
The crisis is not a simple economic crisis. Analysis of the present situation is based upon a complex holistic approach in a multidimensional world. It can be summarized as follows:
During the last century, that is to say, in modern society, the main subject of interest was the “conquering society”: the objective was to propagate universality and conquer Europe through the Revolution or revolutionary projects. It was a break with the blood hierarchy (as in nobility or family businesses). Now, the post-modern society is centered on very specific properties:
When we can calculate everything, manufacture everything and unanchor not only the simple tasks required in a society but also reconsider the more elaborate tasks such as engineering or decision, is this the world we want to have? What about our freedom? Is this ethics?
The rights, the BDI of each of us, must be respected whatever their gender. But when a mother or a father of a family neglects his or her own progeny in order to satisfy his or her personal ambitions, do we live in an ethical society?
When one rejects the love and warmth of the family for the coldness of power and a disproportionate personal ambition, claiming that children can manage on their own, is this not the beginning of the end of civilization? We are very far from what is happening in the primitive wildlife: is this ethics?
When one ignores the very basic principles of evolution, it is the precepts of the Old Testament that we reject, it is the story of the Tower of Babel with its disproportionate ambitions, it is the need to conquer a paradise that we will lose. It is the problem of ethics that can no longer control a world that has become indecent and insane.
By analyzing various studies and papers carried out by specialists and economic and social experts, it was found that two trends are now emerging:
In fact, the two seemingly antagonistic trends are complementary! In reality, we are moving slowly towards a self-organized hyper-system in which ethics will have an important role to play: as seen in this book, laws and regulations are not enough to control and monitor complex systems. Thus, ethics will be found not only in central governance but also in individual governance. It is from this openness, of which we will now briefly discuss some aspects, and in which some existing networked organizations will be involved, that ethics will find its role in the future hyper-system.
Concentrating our efforts on economics is a great mistake. Talking about “governance” must be in terms of a holistic, global and holonic subject matter. To be sustainable, governance must cover economic, technological, social, political, human and environmental considerations [MAS 15a].
It is a question of a vital struggle for our whole society (or our civilization).
The two questions we have to ask ourselves constantly are very simple:
It is quite easy to imagine how the notion of “collectivity” can evolve worldwide, and how ethics can be applied. In the previous chapter, we have distinguished different fields such as participation, cooperation, collaboration, etc. Here, we will just highlight some conditions of the application ethics.
Within the present context, it is necessary to develop a collective intelligence, that is to say a social intelligence where everyone is in harmony with other people. Without empathy, love and ethics, human beings are nothing.
However, only ethics, at the top of or complementary to the regulations, allows us to become what we have chosen to become, independent of what nature has decided to make of us.
For some people, ethics appears as a solution to problems linked to social phenomena. Globalization and the loss of values and benchmarks make us seek answers to this uncertain and destabilizing context. We need new and better fitting landmarks and references to reinforce those already existing and we will try to find them in ethics. The objective is to again focus our efforts on moral values, on things and thoughts that we believe as being basic and unquestionable, or even as a set of assertions. Indeed, ultimately what is most feared is the constant questioning of our benchmarks, values and references. In fact, everyone always wants better, more just, more beautiful, more harmonious, more compelling items.
For explanation purposes, human beings are always trying to sort, classify, cluster, rank or discriminate everything, to understand, know and compare everything, in order to be convinced that nothing of what they established can be a mistake. It is a question of sustainability.
This is also the reason why most of the managers or leaders imbued with idealism and self-satisfaction do not agree that they are, like any human, fallible beings. It is not ethics or courage that stifles them: they are never wrong. To save their fame, they do not hesitate to push faults onto others, fellow workers or even friends or relatives; to blame others, sometimes punishing them unfairly. With the individualism that characterizes the new managers (class “Y”), such non-ethical behaviors are becoming more and more frequent.
What human beings establish always needs to be perfect, utopian, but the reality is far from being utopian. For instance, some managers demand more from others than they require from themselves. Ethics can also be a problem since we cannot have an answer to everything. For example, how do we know where the powers and authority of a manager begin and end? Where does abuse begin?
But what if professional ethics were not applied? How to judge severity? What counts as an offense? What type of sanction to apply?
Application of business ethics depends on many things such as the context, the activity, the personality of each person, the way in which everyone works and the sensitivity of each person, all things that will generate a difference in perception and points of view. This can nuance or obscure a business ethics appraisal. That is why we often resort to the judiciary for malpractice or professional faults when it is often more advisable to recover a fault by settling it, internally, through a job evaluation meeting.
The application of professional ethics is a problem in a world submitted to a steady acceleration and permanent evolution, in which the laws and their adaptation are continuously changing.
Within this context, the sharp and difficult questions are to be dealt with on a case-by-case basis in order to take into account small or big problematics, the complexification of everything in nature and the deviances of human beings.
Anyway, business ethics can be seen as a prospective for the future. It enables us to implement a well-defined and balanced development framework and to think about a reliable and sustainable development of decision and control systems. This is essential in all the sectors of activity. Indeed, in any action and in terms of main guidelines, all the situations have to be thought, analyzed, challenged and realized, both rationally and emotionally with our consciousness. These are part of the fundamental principles of good management of a company or team that have to be usefully oriented.
This important notion has been developed by Michel Volle [VOL 14b].
To explain this trend, we will consider a case study related to the non-ethical situation involving French agriculture.
Most production is not profitable because products are often sold below their production price. The result is an impoverishment of the agricultural population: presently, more than 25% of farmers and winemakers earn less than 400 € per month, that is to say one-third of the minimum wage (SMIC). It is the profession with the highest suicide rate. The loss of value of French agriculture amounts each year to more than 1.5 billion euros, despite the fact that it is a strategic resource (food industry) and while 20% of the world population suffers from undernutrition.
Non-ethical behavior is due to several possible causes related to the existing weaknesses in our society:
Through the example detailed above, we see that the individualism of each corporation or professional organization is the rule of the game: the market is unbalanced and there is an economic asymmetry that is not ethical. One solution is to put in place multi-disciplinary contracts involving all the stakeholders, in order to avoid unbalanced situations and the exclusion of producers (who are, in an economy, costs-centered) who are finally the poorest, the most deprived, the weakest, etc. Everyone has the right to live. Everyone must be able to live by their work.
Thanks to robotics, more and more repetitive tasks are going to be automated. It is the case in industry but also in finance (fast trading), in banking (help desks), medicine (diagnosis), and more. More and more people will be assigned to designing, development (innovation) and marketing tasks.
The relationships with all the stakeholders are of key importance since everybody needs pertinent information, formation and financial conditions to define the end product, its use, and to determine the added values that are required to get the best fitting decisions and equilibriums.
This is called the “commerce of consideration”.
This is a crucial point: a human brain that knows or believes it is not being listened to will stop functioning properly: his capability is decreased up to full sterilization (neutering). Therefore, in a networked workplace or production system, the one who brings a significant information related to the global process or general interest, and who feels his proposal is ignored will become disconnected from the whole system. He will be naturally excluded from the interconnected system since the links will be slowing down or withdrawn.
To give consideration to anybody, to maintain the resilience of an interconnected system, to listen and act towards better participation and cooperation is the result of commerce of consideration.
The one who is obsessed and seeks power loses the contact and control of his children or subordinates. It disconnects him from reality. He forgets that he is going to be isolated and that he will no longer have power. This is what happens in the family, in the economy, in politics.
The commerce of consideration is of key importance. It is the privileged concept that ensures the cohesion between:
In terms of conceptual integration, the ethics of consideration (oriented toward relationships) covers most of the human and political aspects of ways of life. It is fully compatible with and complementary to the two already existing concepts: the ethics of responsibility (for any rational reasoning) and the ethics of conviction (more emotionally oriented). This allows us to draw the following figure.
The ethics of consideration that has been introduced here provides a great advantage since it can be extended to several items subject to vulnerability. For instance:
Throughout this book, we have seen that Business Ethics was based on an ethics of responsibility and an ethics of conviction which were progressively amended with new concepts such as the ethics of naturalism and of consideration.
In fact ethics is dependent on many factors as described in the following graph.
As we can see, and as it is in the mind of many people, the concept of Sustainable Ethics is often linked with System Complexity. In our global context, ‘sustainability’ expresses the fact that most people are afraid of losing control of a “complex” phenomenon; there are too many factors in interaction and we do not know how to control and handle Business Ethics. How to implement it when we need to preserve a situation in the face of non-understandable and apparently irreversible change? Under these conditions, is sustainability a marketing trap? Or rather a real and primary concern? Considering what is happening in our world, we can’t yet tell, given that complexity is the normal evolution of nature.
With regard to our experience, and as stated in Sustainability Calling [MAS 15a], sustainability is driven by specific codes. In other words, to drive and manage a system developed by humankind, we have to integrate the following codes, in analogy to the five former elements able to unify the construction of the world. They are:
Under these conditions, sustainable ethics is simply an ethics that fulfills and integrate all these codes. If we analyze what has been developed in this book, we can say that task is partly covered; ethics, however, is inseparable from questions and concerns related to sustainability.
Ethics is often seen as philosophically-based concepts: we tried to open up that approach to ethics and to adapt it to the business. We also tried to integrate many advances common to our society and technologies. However, there are still a lot of advances to take into consideration in order to get a more consistent and pertinent sustainable ethics.
So, the global or sustainable ethics we propose differs from the common literature and philosophies in four ways:
The evaluation of ethics raises a number of problems. When the objective is not control-oriented (which seems advisable in the context of a program aiming to enable actors to take ownership of the business ethics approach), a system of self-evaluation must be implemented. This system can be biased as soon conventional survey techniques are used.
For instance, at the level of quantitative analysis, it is important to note that data scientists often use the notion of statistical means. When comparing qualitative criteria within a population, it must be recalled that the most reliable way is to use the notion of median. Without going into the details of this approach, it will simply be said that it is the most appropriate way for such measurements.
This is why it is preferable to use a projective method based on the scenarios methodology. This method consists in placing individuals in typical situations featuring decision-making problems in the business environment and proposing that they analyze them. This approach is based on decision-making simulations. The different possible decisions are proposed to the individuals (employees or managers) who will be able to evaluate them from different angles. This evaluation allows one both to analyze the individuals’ behavior (through an online system guaranteeing their anonymity) and to identify the situations that are subject to the most problems in a given job or activity sector of a company.
What are the expected results of an ethical evaluation? The implementation of an analysis approach is aimed at better defining and measuring the feeling the management may have about business ethics. It mainly concerns:
In such a ways a set of about five indicators can be defined and followed accordingly.
Among the historical actors of the space industry like SpaceX (Elon Musk), Blue Origin, Virgin Galactic, Thales or Airbus it is worth mentioning OneWeb (Greg Wyler) who just raised $1.2 billion to set up the so-called ‘OneWeb constellation’. It is an ambitious project of 900 satellites whose aim is to offer cheap internet access to all the inhabitants of our planet. Indeed, access to the web is an essential prerequisite for economic development, especially for “the other 3 billion” people who are not yet connected to the internet due to insufficient or failing infrastructures.
The OneWeb project has to be associated with the fact that nearly 50 billions RFID-type sensors (or similar features) are going to be used to collect information or to connect any object through the IOT. Here, it is important to note they will be globally interconnected everywhere, in all parts of the world.
One argued result is related to so-called ‘security’: some structured organization could be able to know everything, follow the evolution, and then anticipate everything about each interconnected object. Google can of course exploit all the data collected and utilize Big Data processing: Google, initially known as a data exploration service (with search engine) will gradually keep control over the IOT and become, for instance, a transportation provider (Google cars). It can also provide specific information to security agencies in many countries and replace them (as super-governance). There is no difference between marketing, politics and security: there is no limit in terms of a business model. The same thinking may apply to Microsoft. But where is the freedom of everyone? Or is the new morality that of the Big Data market? With autonomy and mobility in transportation, where are the responsibilities and how do we allocate them in case of accident or embezzlement? Everything, any opportunity is subject to questioning and challenges: this is the main principle of ambivalence in nature.
When a paradigm change occurs, how do we adapt and apply ethics?
Another example will now be detailed, just to understand how the face of our world is changing. We will illustrate this scenario with Amazon but any different worldwide company can be quoted. This example is based on e-commerce. Through a worldwide telecommunication service, new opportunities (in terms of BDIs) can emerge from social networking, but also new situations at the level of free market competition: here, for instance, some forecasters will say that Amazon may “control the underlying infrastructure of our economy”1. Is this possible? Is this ethical?
We often talk about Amazon as though it is a worldwide retailer: it sells more clothing, electronics, toys and books than any other company. Last year, in 2016, Amazon had a sales revenue going towards $150 billion (in the USA, the $3.6 trillion retail market has shifted to online business, and Amazon covers a part of that share). Walmart, however, had a much more profitable business with a sales revenue approaching $490 billion. In comparison their market cap is around $250 Billion for both2. Here, we can try to understand why investors value Amazon more than, or the as same as, Walmart?
As for mobile games (Candy Crush or Call of Duty), the objective of a business is to reason in terms of dynamic evolution rather than market share: to get a hit, this does not require a specific organization to copy the competition or reach a given revenue but to fulfill the trends of a new market and to take risks.
To be more precise, in 2015, most people looking to buy something online started at a search engine like Google. Today, most people go to Amazon or eBay. Moreover, people ignore the fact that Amazon knows everything about us (same as for Google or Microsoft) and threaten our freedom.
The Amazon website, already a dominant platform for digital commerce, is also able to dictate terms and prices to suppliers, fashions and trends to customers, to connect decision makers to a dynamic network of information, people and ideas and then to deliver business and financial information in order to influence important societal choices.
Taking into consideration their own potential role within the society, the large companies like Amazon are a weapon for shaking down some suppliers. For instance:
This can be critical because owning the infrastructure needed to quickly deliver packages to doorsteps is a key component of maintaining and sustaining an oligopoly in online commerce. But this is also an opportunity to develop a new and disruptive way to conduct another business.
In terms of business ethics, is it a simple question of the competitiveness factor? How to recompose the landscape of already existing companies such as UPS or FedEx? How to prepare for future BDIs?
How to share the specific interests of each stakeholder? What complementary role can be attributed to the stakeholder? How to define a general interest? What is the right solution: the speciation or the diversification of the species or economic actors?
It is time to design and implement a kind of meta-ethics issued from the collective consciousness.
Business ethics involves all of us, in a thousand ways and every day. From medical secrecy to industrial secrecy and professional confidentiality, we already use ethics without knowing it, knowing that this is not unknown to us.
Complexification of the world is going on and mandatorily implies the complexification of the ethics concept. More studies and deep thinking are still necessary to improve the notion of business ethics. Here, to explain the difficulty of this statement, we will just review and summarize a few reasons we already mentioned:
These are unlikely scenarios, since truth is always an equilibrium between extreme situations; however, this should not prevent us from focusing on the notion of ethics in terms of the emergence of ideas during the design, development and implementation of our future.
All these above considerations show that business ethics must cover two level of concerns: individual Business Ethics and collective Business Ethics. This allows us to also consider personal ethics and meta-ethics as well.
However, in this context that is also associated with complexification and over-regulation through laws, do we not become a little too dogmatic with our intent to dictate “good and evil” in our behavior, to impose some practices and to forbid others considered less advantageous?
This question arises. No one, at present, can claim to answer it. In any case, our society seems angry at the requirement that BECC frame our professional conduct.
The couplet economy–society fosters the evolution of management. This encourages managers, shareholders and employees to think about what the company of tomorrow will be.
This will also define the need for training and dissemination (as planned in the European investment programs).
A new organizational model can and should develop: that of the “participative” enterprise.
Employees already have the desire to play an important role in the management of the company but this importance will be amplified, especially in strategic management but also in participation and the sharing of results (not necessarily financial).
Such partnership will thus make it possible to answer and react more effectively to market expectations (and constraints), to innovate and to strengthen solidarity.
As a result, the enterprise will thus be stronger and more capable of overcoming the difficulties it will encounter.
The enthusiasm, during the last few years, for an ethical management created an environment committed to the promotion of business ethics. However, while such an approach allows the use of new management techniques, it leaves a wide margin of freedom according to the situations encountered.
In order to be operational, this approach must be made plausible among the company’s stakeholders, employees and managers. Indeed, the practice of ethics in the workplace is not only a matter of conformity to some values but also a permanent willingness to question the accepted ways of being and acting.
Ethical management does not have to replace the working procedures used by employees for deciding the meaning given to their work. It is only an aid to solve a problem, dedicated to the creation of a context conducive to a better sustainability.