Integrating Ethics with Strategy

The following sections are included:

• Summary of the Chapters
  • Part I
  • Part II
  • Part III

• Conclusion

The following sections are included:

• CONTENTS

This chapter is adapted and developed from (i) Introduction to Business Ethics and Strategy, Ashgate, England, 2007 (Edited reference collection, in the series The International Library of Private and Public Ethics) and (ii) “An organising framework for strategy and ethics,” Proceedings of ANZAM, Rockhampton, Australia, December 2006. The growing literature dealing with the relationship between strategy and ethics is classified into 16 distinct themes (e.g. trust, performance, market-limitations, etc.) with various sub-themes (e.g. types and levels of trust, etc.). A comprehensive organising framework is then set out, based upon the classical notion of a dualism. Experience suggests that the new framework is very helpful for researchers and students in these areas.

This chapter is extracted and abridged from Human Systems Management 11(1), pp. 7–22, 1991; Strategic Management Journal 15, pp. 191–213, 1994 and Strategy as Rationality, Ashgate Series in Philosophy, 1996. It develops the “correspondence” thesis mentioned in Chapter 1. A mapping is constructed from a set of about 40 distinctively defined rational-moral concepts to another set of commonly used but independently-defined strategy concepts. Several more specific “correspondences” that have been proposed in the business ethics literature from time to time (such as local-responsiveness as a form of caring) can be placed and evaluated within this overarching conceptual framework.

Parts of this chapter are based upon (i) “Competitiveness as hyper-strategy,” Human Systems Management14, pp. 163-178, 1995 and (ii) Strategy as Rationality,Ashgate, 1996. The first part briefly discusses the concept of synergy, as it applies to business strategy. It proceeds to a consideration of competition and cooperation amongst diverse types of productive entity. The strategy-as-moral philosophy correspondence framework (Chapter 2) is then expanded and adapted to incorporate the abstract notion of synergies amongst distinctive forms of rationality, or hyper-rationality (in the sociological sense first used by Ritzer and LeMoyne, 1991). The concept can be generalised to the full rationality-set, where it yields a general and integrative re-conceptualisation of the competitiveness of any strategic entity.

This chapter is an abridged version of “Enterprise action for the common good: market limitations as strategic problems,” Journal of Enterprising Culture11(1), pp. 69–88, 2003. It is suggested that many companies have attempted to lead ethically by example, yet have nonetheless operated quite uncritically within the global market despite that systems’ known limitations. As a result, corporate communications that refer to the “common good” often lack credibility. A framework and methodology is proposed for augmenting enterprise strategies and communications in this respect. It is then applied from a distance to a well-known profitable Japanese company that also has an expressed social and environmental mission. Finally, some related cultural issues are discussed.

This chapter is extracted and adapted from “Global strategy and ethics: managing human systems and advancing humane ideals,” Business Ethics Quarterly,2006. That paper reviewed and constructively critiqued Milan Zeleny's recent book: “Human Systems Management: Integrating Knowledge, Management and Systems,” World Scientific Publishing, Singapore, 2005. In the critique, two variants of capitalism are described: Human Systems Management (HSM) and Humane Ideals Management (HIM). They are compared with Financial-Market-Capitalism (i.e. the Anglo-US variant, or business-as-usual). HSM and HIM both embody distinctive ways of thinking about the relationship between business strategy and ethics.

This chapter is based upon “Global business and the dialectic: towards an ecological understanding,” Human Systems Management21(4), pp. 249–265, 2002. It discusses the dialectical tensions that are still very evident in almost all international business episodes, as well as in the perceptions and value-priorities of once-separated civilisations. Although these have hardly ever been mentioned in the mainstream business media, as well as in professional education, much has been communicated (and replicated) on the related subjects of business-ecology, product-ecology, knowledge-ecology and ecology-of-mind. These latter ideas together with the sciences of life and mind that support biotechnology and information technology are all related to the principle of dialectic (intuitively, historically and formally). Accordingly, it is argued that much greater emphasis should now be placed upon dialectical reasoning in contemporary strategic business analysis and political calculation.

This chapter foreshadows a larger project by the author, with others, on “Wisdom and Entrepreneurship”. The various personal characteristics and business practices associated with entrepreneurship are identified and placed in correspondence with some distinctive components of wisdom, including its ethical aspects. This new “correspondence” framework (cf Chapter 1) indicates several prescriptions for “wise-enterprise”, including (i) the selection of good purposes, (ii) a mindfulness of the business and personal lifecycles, (iii) authentic prioritisation, and (iv) explication: the demonstration as well as explanation of enterprise purposes and plans.

This chapter is an adapted version of “Planning, consciousness and conscience,” Journal of Business Ethics 1(3), pp. 113–117, 1984. It argues against the contested notion of corporate or collective moral agency, from a broad evolutionary perspective. This was briefly referred to in Chapter 2, where it was compared with several other arguments on either side of the issue.

This chapter is an abridged version of “Strategy and recursivity,” Human Systems Management 22, pp. 73-85, 2003. An argument is put forward that conceptual models of strategy can themselves be depicted and described in a variety of ways, such as objects-of-choice in a metamodelling decision, or as end states of a transition process, or as patterns that replicate in managers’ minds. Discussions of the strategy models and their uses then typically invoke the same categories of meaning that are found in the general discourse on strategy itself Accordingly, recursivity and self-reference are pervasive in the theory of strategy. This, in turn, indicates a potential synthesis with ecological thinking.

This chapter is an abridged version of “Game theory and the evolution of strategic thinking,” Human Systems Management 16, pp. 63–75, 1997. The idea that the study of game theory could help managers to think better about strategic problems is re-interpreted with reference to various extensions and adaptations of that theory. An “adapted” conceptual model of an Ultragame is then set out, in which the players are plurally rational strategic-entities. Conceptual models of this type can help managers to augment their language, their ideology and their integrity. Compared to the formal mathematical extensions of game theory, which have found but a few business applications, the adapted conceptual models are more directly relevant to contemporary business problems such as those involving the players’ boundaries and identities, as well as their likely future problems and others’ problems.

This chapter is adapted from “Optimality and strategy,” International Journal of Operations and Quantitative Management 2(2), pp. 111–126, 1996. The original paper was prompted by conversations with Arnold Reisman of Case Western Reserve University. It is argued that conceptual models of strategy-without-trade-offs challenge conventional notions of optimality and optimisation. This challenge is broadened by the several distinctively defined forms of optimality within the behavioural and managerial sciences. It is then shown that each form of optimality corresponds with an identifiable segment of the strategic management theory. Although the metaoptimality arguments remain ambiguous or incomplete, they can play a role similar to the general theory of rationality in informing the theory of strategic management, particularly with respect to its systemic and ethical dimensions. Once again, the resulting prescription is for methodological adaptations, with their associated ideological transitions.

This chapter is an adapted version of AE Singer and MS Singer, “Management-science and business-ethics,” Journal of Business Ethics 16, pp. 385–395, 1997. It is noted that many leading management scientists have advocated ethicalism: the incorporation of social and ethical concerns into traditional “rational” OR- MS techniques and management decisions. In fact, elementary forms of decision analysis can readily be augmented, using ethical theory, in ways that sweep in ethical issues. In addition, alternative conceptual models of decision-analysis, game-theory and optimality are now available, all of which have brought OR-MS and business-ethics into a closer alignment.

Corporations justify their strategic priorities with reference to wealth creation and innovation. They do not normally view the alleviation of global poverty as an explicit strategic goal. In this chapter, which is an adaptation of “Business strategy and poverty alleviation,” Journal of Business Ethics 66, pp. 225–231, 2006. It is argued that if MNCs are going to contribute to the reduction of global poverty, their deliberate strategies will need to systematically take into account the known limitations of market based systems, many of which compound the effects of poverty. To achieve this, existing strategies can be augmented in ways that involve partnership with NGOs, governments and trans-governmental networks.

This chapter is adapted from “Curing strategic myopia: drug pricing and health care,” Human Systems Management 23, pp. 161–168, 2004. Various elements of pharmaceutical corporate strategies are described and evaluated from a perspective that sees dialectical tensions at all levels of economic and social systems. Dialectical reasoning is applicable to the formulation and evaluation of corporate strategies in general, but it is especially relevant to strategies involving health (i.e. life and mind), where it also indicates the potential and suitability of business-government partnerships. Several ways of augmenting corporate and industry strategy and communications are indicated, accordingly.

This chapter is an adaptation and extension of (i) “Dissolving the digital dilemma: meta-theory and intellectual property,” Human Systems Management 20, pp. 19–33, 2001, by A.E. Singer and J.M. Calton and (ii) “Profit without copyright,” Small Business Economics 16(2), pp. 149–156, 2001 (Special issue on Networks, Internationalisation and Policy), by A. E. Singer, J. Calton and M. Singer. It analyses the contemporary worldwide dissensus and dilemma concerning the nature and enforcement of intellectual property rights, particularly copyrights and software patents, indicating that the debate can be informed by metatheory. Intellectual Property Rights (IPR) policy can be depicted as a resultant of narrowly defined interests of stakeholder groups. It can also be described in terms of rational deliberations that span scenarios and strategies, but are informed by social science theories and metatheories. When these are considered together, the case for weaker IPR policy regimes (e.g. much shorter patents) becomes quite compelling. A wider potential for contributions from meta-theory to public policy and business strategy is also indicated.

This chapter is based on “Corporate conscience and foreign divestment decisions,” Journal of Business Ethics 6, pp. 543-552, 1987, by A. E. Singer and N. T. van der Walt. It discusses the notion that the rational-agent frame of reference for the analysis of all types of corporate strategic decision-making might be expanded to a moral-agent perspective, whereby decision content is seen as comprising commercial, strategic and ethical factors. The relevant “factors” in any strategic decision can be classified on the basis of commercial, strategic and ethical decision principles to which they relate: rational-egoism, self-referential altruism or deontology. This approach is illustrated with reference to the paradigm case of strategic divestment: MNCs operating in South Africa, during the era of Apartheid.

This chapter is a development of “Reducing corruption in international business: behavioural managerial and political approaches,” Journal of Economic and Social Policy 10(2), pp. 3–24, 2006, by A. Roy and A. E. Singer. It sets out some approaches to managerial decision making in corruption-related contexts. These include structuring the generic consequences of bribery for individual decision makers and incorporating principle-based reasoning into decision models, or guides. It is argued that the reduction of corruption ultimately depends on corporate support for NGO anti-corruption initiatives, as well as a plausible consensus at the political level.

This chapter is an adapted version of “Justice in preferential hiring,” Journal of Business Ethics 10, pp. 91-97, 1991, by M. S. Singer and A. E. Singer. It describes empirical studies of perceptions of preferential selection. Preferential selection is widely perceived as unfair. Indeed, the level of perceived unfairness is directly related to the discrepancy in candidates’ test scores on job-relevant tests. Furthermore, the provision of particular “ethical” or “legislative” justifications for the selection decisions increased the perceived level of unfairness. The question of preferential hiring, far from being an esoteric and annoying HR issue, can be thought of as representative of the larger “strategy versus ethics” question. It is only when people take the time and make the effort to fully contemplate and discuss all the arguments on both sides of the issue that they can reoccupy the centre.

The following sections are included:

• Bibliography

• Author Index

• Subject Index