BUSINESS ETHICS: JAPAN AND THE GLOBAL ECONOMY Issues in Business Ethics VOLUMES Series Editors Brian Harvey, University of Nottingham, UK. Patricia Werhane, Loyola University of Virginia, US.A. Editorial Board Brenda Almond, University of Hull; Hull, u.K. Antonio Argandona, lESE, Barcelona, Spain William C. Frederick, University of Pittsburgh, US.A. Georges Enderle, University of Notre Dame, U.S.A. Norman E. Bowie, University of Minnesota, US.A. Henk van Luijk, Nijenrode, Netherlands School of Business, Breukelen, The Netherlands Horst Steinmann, University of Erlangen-Nurnberg, Nurnberg, Germany The titles published in this series are listed at the end of this volume. Business Ethics: Japan and the Global Economy edited by THOMAS W. DUNFEE The Wharton School, University of Pennsylvania and YUKIMASA NAGAY ASU Reitaku University, Japan SPRINGER-SCIENCE+BUSINESS MEDIA, B.V. Library of Congress Cataloging-in-Publication Data BUSlness ethics Japan and the global economy I edited by Thomas W. Dunfee, Yukimasa Nagayasu. p. em. -- <Issues in business ethics; v. 5) "In cooperation with the Institute of Moralogy, Kashiwa City, Japan. " ISBN 978-904814309-2 ISBN 978-94-015-8183-7 (eBook) DOI 10.1007/978-94-015-8183-7 1. Business ethicS--Japan. 2. Business ethics. I. Dunfee, Thomas W. II. Nagayasu, Yukimasa, 1941- III. Series. HF53B7.B8724 1993 174' .4·0952--dc20 93-27884 ISBN 978-90-481-4309-2 Edited versions of papers given at two conferences in Japan, held in December, 1989 and September, 1991 hosted by the Japanese Institute of Moralogy with the collaboration of Reitaku University, and with sponsorship and support from the Ministry of Foreign Affairs and the Ministry of International Trade and Industry Printed on acid-free paper All Rights Reserved © 1993 Springer Science+Business Media Dordrecht Originally published by Kluwer Academic Publishers in 1993 Softcover reprint of the hardcover 1s t edition 1993 No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without written permission from the copyright owner. CONTENTS List of Figures, Diagrams and Tables vii Note on the Contributors viii Acknowledgements xi PART I. INTRODUCTION Chapter 1 Global Business Ethics and 3 Japanese Economic Morality An Introduction and Overview (Thomas W. Dunfee, Yukimasa Nagayasu) Chapter 2 Business Ethics: A Japanese View 23 (Iwao Taka) PART II. BUSINESS ETmCS IN A GLOBAL ECONOMY Chapter 3 The Role of Ethics in International 63 Business (Thomas W. Dunfee) Chapter 4 Globalization and Business Values in 81 the Asian-Pacific Region (Yukimasa Nagayasu) Chapter 5 International Business, A Universal 95 Morality and the Challenge of Nationalism (Norman E. Bowie) Chapter 6 The Language of International Corporate 115 Ethics (Thomas Donaldson) Chapter 7 What is Business Ethics? 133 (Georges Enderle) v PART III. BUSINESS, ECONOMY AND ETmCS IN JAPAN Chapter 8 A Japanese Perspective of the 153 Transformation of Modern Civilizations (Haruo Naniwada) Chapter 9 Business Ethics in the Global Age 173 (Ken'ichi Odawara) Chapter 10 The Ideals of Moralogical Management 189 (Yukiyoshi Mochizuki) Chapter 11 Business Ethics and Corporate Strategy 209 in Japan (Shunji Kobayashi) PART IV. mSTORICAL DEVELOPMENT OF MARKET MORALITY IN JAPAN Chapter 12 The Japanese Tradition of Economic Ethics 219 (Yukichi Shitahodo) Chapter 13 The Japanese View of Business and Work 231 (Han-Yu Chang) Chapter 14 Economic De,velopment and Ethics in Japan 255 -A Historical Perspective (Tsunehiko Yui) vi LIST OF FIGURES, DIAGRAMS AND TABLES Figure 4-1 Various Kinds of Reciprocity 87 (Yukimasa Nagayasu) Diagram 7-1 Matrix of Value-Guided Human 139 Acting (Georges Enderle) Diagram 7-2 Problem and Action Oriented 146 Approach (Georges Enderle) Diagram 7-3 Different Conceptions of the 148 Good and the Idea of an Overlapping Consensus (Georges Enderle) Table 9-1 A Comparison of Japanese and 185 Western Companies and Labor Unions (Ken'ichi Odawara) vii NOTE ON THE CONTRIBUTORS Nonnan W. Bowie is the Elmer L. Andersen Chair in Corporate Responsibility at the University of Minnesota. He is the author, co-author, editor or co-editor of twelve books and numerous articles in business ethics and political philosophy. He is currently chair of the Department of Strategic Management and Organization and is past Executive Secretary of the American Philosophical Association. He is past president of the Society for Business Ethics and the Society for Value Inquiry. Han-Yu Chang is Professor Emeritus of Taiwan University. His publications include A Study of British Mercantilism: 1620- 1720 (1954), Economic Development and Income Distribution in Taiwan (1983), and A Study of Japanese Corporate Management (1989). Thomas Donaldson is the John F. Connelly Professor of Business Ethics in the School of Business, Georgetown University. At Georgetown University he also holds the positions of Adjunct Professor, Department of Philosophy, and Senior Research Fellow, Kennedy Institute of Ethics. Books that he has authored or edited include: Ethics in International Business (Oxford University Press, 1989); Ethical Issues in Business, 4th Edition (Prentice-Hall Inc., 1979-92), co-edited with Patricia Werhane; Issues in Moral Philosophy (McGraw-Hill, Inc., 1986); Case Studies in Business Ethics, 3rd Edition (Prentice Hall Inc., 1984-92); and Corporations and Morality (Prentice Hall Inc., 1982). Thomas W. Dunfee is the Kolodny Professor of Social Responsibility at The Wharton School of the University of Pennsylvania. At the Wharton School, he was Chair of the Legal Studies Department from 1979-85 and 1987-91. He was President of viii the American Business Law Association 1989-90, served as Editor-in-Chief of the American Business Law Journal 1975-77 and received the Distinguished Senior Faculty Award for Excellence from the ABLA in 1991. He currently is a member of the executive committees of the Society for Business Ethics and the Society for the Advancement of Socio-Economics. His research interests focus on the application of social contract theory to business ethics, corporate attorney whistle-blowing, and on developing ethical standards for global business transactions. He has written or edited over ten books and has published articles in a wide variety of journals in the fields of law, business and applied ethics. Georges Enderle is the Arthur and Mary O'Neil Professor of International Business Ethics at the University of Notre Dame, Indiana. He is author of several books including Handlungs orientierte Wirtschaftsethik, Grundlagen und Anwendungen (Action-oriented Business Ethics. Foundation and Applications: 1993) and contributing co-editor of Lexikon der Wirtschaftsethik (Encyclopedia of Business Ethics: 1993). He has written numerous articles on business ethics and is presently working on a research project on "International Business Ethics". Shunji Kobayashi is Professor at the School of commerce, Waseda University. His publications include Study of Managerial Environment (1990), and "Political Strategy of Corporations" (1992). Yukiyoshi Mochizuki is Director of Research Department, the Institute of Moralogy and Professor in the Faculty of Foreign Languages, Reitaku University. His publications include: Human Rights and Moralogy (1986), Beautiful Heart and Wonderful Life (1988), and Pleasure of Moral Practice (1990). Yukimasa Nagayasu is Professor at the International School of Economics and Business Administration, Reitaku University. He is also chief of the Economics Division of the Research Department, the Institute of Moralogy. His books include Ecology of Economic Civilization (1979), Principles of National Economy (1978), Principles of Political Economy (1981), and Cosmology of Economics (1991). ix Haruo Naniwada (1906-1991) was Honorary President of Kanto Gakuen University. His publications include Study of Economic Sociology (1971), Philosophy of Crisis (1974), Theory of Community (1982), and Morality and Economy (1983). Ken'ichi Odawara is Professor in the Faculty of Economics, Jochi (Sophia) University and lecturer of International Relations at the University of Tokyo. His edited books include International Political and Economic Theories (1988), and The World Economy (1982). His publications include American Disease (1980), "The Competition Principles in Japanese Companies and Labor Unions" (1988), and "What Lessons Have Japan and the U.S. Learned from Previous Bilateral Effort on Energy and Environment?" (1992). Yukichi Shitahodo is Professor Emeritus of Kyoto University and Advisor of the Institute of Moralogy. His books are Independent Education in Japan (1952), Education of Social Intelligence (1957), Anthropological Study of Sontoku Ninomiya (1965), Family Education and social Morality (1968), Spiritual Awakening and Human Development (1970), Drei Prinzipien der anthropologischen Padagogik (1971), and Anthropological Study of Shoin Yoshida (1988). Iwao Taka is Assistant Professor at the International School of Economics and Business Administration, Reitaku University, and Visiting Research Fellow at The Wharton School, the University .. of Pennsylvania. His publications include "J apanese History and Thought -- Based on a Philosophy of Sontoku Ninomiya --" (1990), "From Economics to Cognitive Science" (1989), "Intuitive Decision-Making and Creative Destruction" (1987), "Japanese Entrepreneurship After World War II" (1986), and An Introduction to New Principles of Management (with others) (1985). Tsunehiko Yui is Professor at Department of Business Administration, Meiji University. His publications include The Development of Japanese Business: 1600-1980 (1983), Japanese Management in Historical Perspective (1989), and History of Yasuda Financial Combines (1987). x