Summary
Title: Business Ethics Revised Edition: Corporate Values and Society
Author: edited by Milton Snoeyenbos, Robert Almeder and James Humber
Publisher: Prometheus Books
ISBN: 0879752076
Pro:
• Wide variety of essays from different authors with different perspectives
• Complex, but makes ethical issues comprehensible
• Not simply theoretical - includes case studies for real application of ethics
Con:
• None
Description:
• More than two dozen essays by different authors
• Numerous real-world case studies to illustrate applying ethical insights
• Addresses important ethical topics, including in accounting practices
Book Review
Perhaps they should be told to sit down and read the book Business Ethics edited by Milton Snoeyenbos, Robert Almeder and James Humber. This book is superior to most texts dealing with business ethics in that it does not simply address issues specific to the business world, but it is also philosophically sophisticated — yet not so sophisticated that it is incomprehensible to those who don’t specialize in philosophy and ethics.
It certainly covers quite a lot of ground when it comes to business-specific issues, with large sections on the nature of ethics in social organizations, the obligations of employees, the rights of employees, the rights of consumers, obligations to the environment, and of course ethics in accounting practices.
The book also covers a great deal of philosophical and ethical ground, summarizing in the introduction various basic ethical theories and weighing their relative strengths and weaknesses. This discussion of utilitarianism, egoism and deontology is good enough that it would be worthwhile for anyone to read, even if they aren’t very interested in the rest of the volume.
The choices of articles is also excellent, providing a number of different perspectives on the responsibilities and duties of business organizations. For example, the first section includes articles by John Ladd and Milton Friedman arguing that the basic obligation of corporations is to maximize value and profit to shareholders, and thus any ethical duties which might reduce such value simply do not apply. As Ladd puts it:
- For logical reasons ...formal organizations cannot assume a genuine moral posture towards individuals. ...For the only relevant principles in rational decision making are those relating to the objectives of the organization. Hence individual officers who make the decisions for and in the name of the organization, as its representatives, must decide solely by reference to the objectives of the organization. ...the individuals who are officers of the organization, i.e. those who run it, operate simply as vehicles or instruments of the organization. ...For precisely the same reason, the rights and interests of persons outside the organization and of the general public are eo ipso ruled out as logically irrelevant to rational organizational decision...
This is exactly the kind of attitude which Max Weber feared as the logical result of the increased bureaucratization of society. He regarded the development of such formal organizations and their reliance on instrumental rationality as a threat to freedom, and the attitudes expressed above certainly seem to be those which inform much of what occurs in corporate America today.
Contrasting essays are also offered, but it is unusual to have a chance to read articles which do not hide the fact that they are specifically arguing against the idea that ethics should have much of a role in business. Because Ladd’s essay is well organized and argued, it presents others with an opportunity to provide a thorough critique of the premises and inferences behind the perspective that moral issues need not trouble the decisions made by corporate leaders.
The book also includes a number of real-world case studies which help in applying the ethical principles and insights offered in the different articles. These studies include areas where actual problems have occurred, like a cost-benefit analysis of how the Ford Pinto was designed, and areas where problems might occur, for example various corporate policy statements and ethical codes.
Note: the above review was based upon the original 1983 edition. This edition was obviously dated by the inclusion of a section on the ethics of investing in South Africa — nevertheless, much of it was still relevant today. There exists now an updated, 3rd edition which includes material not addressed here.
