Integrating Ethics Strategy With Selected Papers of Alan E Singer TThhiiss ppaaggee iinntteennttiioonnaallllyy lleefftt bbllaannkk Integrating Ethics Strategy With Selected Papers of Alan E Singer Alan E Singer University of Canterbury, New Zealand World Scientific N E W J E R S E Y • L O N D O N • S I N G A P O R E • B E I J I N G • S H A N G H A I • H O N G K O N G • TA I P E I • C H E N N A I Published by World Scientific Publishing Co. Pte. Ltd. 5 Toh Tuck Link, Singapore 596224 USA office: 27 Warren Street, Suite 401-402, Hackensack, NJ 07601 UK office: 57 Shelton Street, Covent Garden, London WC2H 9HE Library of Congress Cataloging-in-Publication Data Singer, Alan E. Integrating ethics with strategy : selected papers of Alan E. Singer / by Alan E. Singer. p. cm. Includes bibliographical references and index. ISBN-13 978-981-270-145-9 -- ISBN-10 981-270-145-1 1. Business ethics. 2. Strategic planning. I. Title. HF5387.S573 2007 174'.4--dc22 2006048909 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. Copyright © 2007 by World Scientific Publishing Co. Pte. Ltd. All rights reserved. This book, or parts thereof, may not be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system now known or to be invented, without written permission from the Publisher. For photocopying of material in this volume, please pay a copying fee through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA. In this case permission to photocopy is not required from the publisher. Typeset by Stallion Press Email: [email protected] Printed in Singapore. CheanChian - IntegratingEthics.pmd 1 9/20/2007, 11:24 AM b487_FM.qxd 6/26/2007 10:35 AM Page v CONTENTS IInnttrroodduuccttiioonn 1 PPaarrtt II:: SSttrraatteeggyy aanndd EEtthhiiccss 11 1. FRAMEWORKS: An Organising Framework for 13 Ethics and Strategy 2. CORRESPONDENCES: Strategy as Moral Philosophy 31 3. SYNERGIES: Competitiveness as “Hyper-Strategy” 57 4. LIMITATIONS: Market Limitations as Strategic Problems 76 5. IDEALS: Managing Human Systems and Advancing 97 Humane Ideals 6. ECOLOGY: An Ecological Understanding of Global 113 Business 7. WISDOM: Towards Wise Enterprise 143 8. CONSCIENCE: Consciousness and Conscience as 155 Emergent Properties PPaarrtt IIII:: MMooddeellss 165 9. RECURSIVITY: Strategy-Models are Self-Referential 167 10. GAMES: Game Theory and the Evolution of Strategic 187 Thinking 11. OPTIMALITY: Optimisation and Strategy 211 12. SYSTEMS: Management-Science and Business-Ethics 232 PPaarrtt IIIIII:: CCoonntteexxttss 249 13. POVERTY: Business Strategy and Poverty Alleviation 251 14. HEALTH: Curing Strategic Myopia 265 15. KNOWLEDGE: Meta-Theory and Intellectual Property 280 v b487_FM.qxd 6/26/2007 10:35 AM Page vi vi (cid:1) Integrating Ethics with Strategy 16. DIVESTMENT: Corporate Conscience and Foreign 312 Divestment Decisions 17. CORRUPTION: Management Decision and Political 331 Action 18. JUSTICE: Preferential-Hiring and the Dualism 346 Bibliography 359 Author Index 385 Subject Index 393 b487_Introduction.qxd 6/26/2007 10:36 AM Page 1 Introduction Since the late 1970s, the political trend towards global capitalism and increased corporate power has been thought of by detractors as a tempo- rary aberration in a broader historic movement to a technologically- enabled revitalisation of communities, social justice, humane ideals and the natural environment. Since then, the visible hand of governments almost everywhere have been pre-occupied with military-type security and sup- porting international business, with only modest efforts being directed towards compensating for the known imitations of market based systems. During that same era, however, the business ethics movement has gained momentum, especially in North America and Europe (although similar movements existed long before, particularly in the UK). The first issue of the Journal of Business Ethicswas in 1980 and the ensuing 30 years of steady growth represents a triumph for its founding editor, Alex Michalos. Soon after, Business Ethics Quarterly and other journals fol- lowed, as many philosophers turned their attention towards applied ethics and business ethics. These have provided a mixture of critical and sup- portive perspectives on business-as-usual and the academic management literature (e.g. Administrative Science Quarterly, Strategic Management Journal, Academy of Management Review, Journal of Management Studies, Journal of International Business Studies, etc.) but they have also come to represent a kind of parallel intellectual universe. Slowly but surely, the mainstream journals began to admit a trickle of ideological, moral or “values-based” challenges to their dominant dis- course. Articles on the relationship between economics and ethics, or on corporate social responsibility, or business and society, globalisation and international business, critical management and accounting, sustainable business, social entrepreneurship, social and green marketing, ethical investment, accounting ethics, social accounting, multi-bottom-line reporting and so on, all became more numerous and more prominent. 1 b487_Introduction.qxd 6/26/2007 10:36 AM Page 2 2 (cid:1) Integrating Ethics with Strategy Several management science and systems journals were also involved. Journals such as Human Systems Management(US) and Systems Practice (UK) broadly advanced the scientific, the technical and the ethical, rather than any particular ideology or methodology. This book records a sustained attempt by the author to bridge and inter-relate the parallel “discourses” or “universes” of business-as-usual and ethical business. It is comprised of 18 chapters, each being an adapted, updated and cross-referenced version of previously published work (with cited co-authors, in some cases) that has appeared since 1984 in various conference proceedings and business journals (full references are given in the chapter abstracts). Summary of the Chapters Part I of the book “Strategy and Ethics”is comprised of eight chapters, as follows: Frameworks (Chapter 1), Correspondences (Chapter 2), Synergies (Chapter 3), Limitations (Chapter 4), Ideals (Chapter 5), Ecology (Chapter 6), Wisdom (Chapter 7) and Conscience (Chapter 8). Each chapter elabo- rates on specific aspects of the relationship (e.g. corporate and collective moral agency, in Chapter 2 and Chapter 8). Part II then focuses upon the many available conceptual models of strategic and ethical decision making. Accordingly, there is more of a management science or systems flavour to this part. There are four chapters: Recursivity (Chapter 9), Games (Chapter 10), Optimality (Chapter 11) and Systems (Chapter 12). The final part of the book then investigates some contexts within which the preceding ideas can be applied, assessed and developed. It is comprised of six chapters, as follows: Poverty (Chapter 13), Health (Chapter 14), Knowledge (Chapter 15), Disinvestment (Chapter 16), Corruption (Chapter 17) and Justice (Chapter 18). Another useful way of partitioning the contents of the book concerns the likely appeal of each chapter (article) to the general reader versus the technical reader. It is suggested that the general reader or student might be well served by turning first to Chapters 1, 4, 5, 9, 12, 13, 14, 16 and 18 (see Table I). The remaining chapters should be skimmed at first (there are plenty of diagrams and tables to assist this) with a view to re-visiting them, later. b487_Introduction.qxd 6/26/2007 10:36 AM Page 3 Introduction(cid:1) 3 Table I Chapters suited to general versus technical readers. General Technical Part 1: Strategy and Ethics 1. FRAMEWORKS: An Organising 2. CORRESPONDENCES: Strategy as Framework for Strategy and Ethics Moral Philosophy 4. LIMITATIONS: Market Limitations 3. SYNERGIES : Competitiveness as as Strategic Problems “Hyper-Strategy” 5. IDEALS: Managing Human Systems 6. ECOLOGY: An Ecological and Advancing Humane Ideals Understanding of Global Business 7. WISDOM: Towards Wise Enterprise 8. CONSCIENCE: Consciousness and Conscience as Emergent Properties Part 2: Models 9. RECURSIVITY: Strategy-Models 10. GAMES: Game theory and the are Self- Referential Evolution of Strategic Thinking 12. SYSTEMS: Management-Science and 11. OPTIMALITY: Optimisation and Business-Ethics Strategy Part 3: Contexts 13. POVERTY: Business Strategy and 15. KNOWLEDGE: Meta-Theory and Poverty Alleviation Intellectual Property 14. HEALTH: Curing Strategic Myopia 17. CORRUPTION: Management 16. DIVESTMENT: Corporate Decision and Political Action Conscience and Foreign Divestment Decisions 18. JUSTICE: Preferential-Hiring and The Dualism Part I In the opening chapter, the dispersed academic literature that has dealt with the relationship between business strategy and ethics is classified into 16 distinct themes (e.g. trust, performance, stakeholders, market limitations, etc.). An organising framework is then set out, based upon the classical idea of a dualism;but one that has many specified components (involving values- priorities, ethical theories, language, etc.). Contributions to strategy and
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