The first guidelines for individuals and business owners to manage their financial affairs in an ethically accountable manner date back over 3,500 years. The Hebrews believed that God bestowed moral freedom on all people and gave them the capacity and personal responsibility to choose between good and evil. The Hebrews also emphasized the dignity of the individual and hence the need to express mercy toward the poor and oppressed. Over time these ethical principles were reflected in both Christian and Islamic theology.
According to some scholars, the foundation of capitalism can be traced back to the Protestant Reformation in 1517. Not only did the Reformation give individuals a religious obligation to pursue wealth, but it also gave them the self-discipline to do so. Convinced that prosperity was God’s blessing and poverty His curse, Protestants had a spiritual inducement to labor industriously. They viewed hard work, diligence, efficiency, and prudence as necessary traits for businessmen to succeed in a highly competitive world.
By the time of the Industrial Revolution (circa 1760) the exemplary Protestant was no longer a selfless saint, but rather an enterprising businessman, motivated by self-interest. Calvinist values of work and prudence thus degenerated over time into harsh individualism, materialism, and selfishness. This turnaround was given added impetus by liberals such as Adam Smith, who contended that individuals who acted from self-interest worked harder and achieved more. He also argued that a free economy, in which private enterprise was unimpeded by government regulations, was as important as political freedom for the well-being of the individual and the community.
By the 18th century, hitherto “accepted” business practices such as child labor and slavery, however, came under increased scrutiny. Religious groups, such as the Quakers, for example vehemently opposed the slave trade. As they also shunned enterprises that produced and sold alcohol and weapons, the Quakers became the first individuals to integrate their personal values with their investment and business decisions. Unfortunately, few investors, business owners, and appointed managers followed suit.
With the progression of time, the notion “greed is good” has become firmly ingrained in the modern psyche. However, in contrast to previous centuries, the adverse consequences of unsustainable and unethical business practices now reverberate globally. I firmly believe that the current state of affairs could be attributed, albeit in part, to the anthropocentric (human-centered) economic models that form the foundations of most tertiary commerce curricula. These models not only promote self-interest and the pursuit of short-term shareholder wealth maximization, but they also encourage what Hobbes and Descartes called “mechanistic materialism”—the view that nonhuman nature is a set of inert raw resources to be mastered and exploited. This view has led to the unrestrained exploitation of natural resources for economic ends, often harming local communities in the process.
As aptly pointed out in this textbook, a fundamental shift is required in how future business managers are educated. Although many tertiary institutions have recognized the need to shape morally mature and ethically aware corporate actors (especially after the 2008 global financial crisis), many grapple with the goal of business ethics education and question whether business ethics courses should be grounded in philosophy or business. Others question whether business educators should focus on theoretical underpinnings or practical relevance, and whether ethical decision making should be taught within a dedicated module or whether it ought to be integrated throughout the business curriculum.
This textbook goes a long way in addressing these questions. Many practical examples are provided to enhance the cognitive moral development (and hence moral behavior) of adult learners. These examples span key functional areas such as human resource management, marketing communications, and operations management. One chapter is also devoted to teaching the increasingly important and complex phenomenon of responsible change management. I also found the chapters dealing with ethics teaching in business law courses and building ethics as a foundational principle across an integrated undergraduate curriculum particularly insightful and valuable.
The advice imparted in this textbook will greatly assist business educators in shaping the moral judgment and courage of the next generation of managers, directors, analysts, policy makers, and investors. Only when business educators (and here I include myself) take our responsibility of imbuing students with intellectual and moral virtues more seriously, could the tide of unsustainable and unethical business practices be stemmed.
German philosopher Arthur Schopenhauer once remarked that there are three steps in the revelation of any truth: in the first instance it is ridiculed, in the second, resisted, in the third it is considered selfevident. I think this textbook greatly contributes to making ethical decision making self-evident in all realms of business. Its greatest value lies not in being prescriptive, but rather in empowering business educators in teaching a complex and emotive subject.
May future generations reflect back on our era as one in which the values of respect, accountability, and integrity in business dealings made a strong and sustained resurgence.
Prof Suzette Viviers
Department of Business Management
Stellenbosch, South Africa