Biz| Društvo| Ekonomija

Business, Ethics, and Us

Chris Farmer RSS / 16.06.2010. u 13:28

I just came back from a conference on business ethics. The panel was quite distinguished and spoke very well of the need for more ethical conduct in business. The conference was organized by AmCham Serbia, presided over by the rapier tongue of Yugoslav Cosic, and included panelists from abroad, from the business community, and from the government. Many good points were made. Many heads in the audience nodded. But, sadly, we do not have these conferences because we are highly ethical beings and market participants.

We have them because we are, generally speaking, stinking liars and crooks.

A great many laws and regulations have been imposed in Serbia regarding anti-corruption, ethical business, and other such oxymora. Infractions of these laws, we are told, will lead to very high penalties and possible incarcerations. The message is that we should be very afraid of misbehaving. Or that we must now be very CLEVER about misbehaving. The government has put on a very grave face about this issue and seems to show us that they are very concerned about the issue of business ethics.

But in the meantime, we are still, generally speaking, stinking liars and crooks.

It was suggested in the panel discussion that people naturally would prefer to do business with ethical partners, with companies who comply with the law, with businesses who do not place profit above ethics, with people who are honest. To a certain extent, this is very true. If we have a deal to do, we would like to know that the other guy is not signing with one hand while preparing to knife us in the back with the other. Granted.

And yet we are still, generally speaking, stinking liars and crooks.

The thing that bothers me about all this talk is not that people feel some false sense of ethical or moral superiority by talking about it, but rather that it is the simple fact that it just does not seem to be the will of the society to enforce it. It is a matter or societal expectations. We expect to be cheated; we expect people to lie to us; we expect backdoor deals to be done; we expect political interference in business; we expect the rich to get richer and the poor to get screwed.

And we cannot WAIT for the chance to do it ourselves. Stinking liars and crooks.

If this sounds just the slightest but cynical, let me phrase it a little differently. As a society, we generally believe that it is a Bad Thing to murder another person. Ask anyone on the street and they will be morally outraged at the suggestion that murder could be seen as ok. And since we all agree about it, we are happy to know that the government has a law telling us not to kill each other.

On the other hand, when the government hands us a law that tells us to be ethical, we balk. Ethics is a game that cannot be played unless everyone is playing. If we decide that we should be an example of ethical business, it is a foregone conclusion that business will be lost to the stinking liars and crooks who maintain the old corrupt ways. It is also foreseeable that we will pay much more for our services and supplies. It is also possible that we will not be able to afford the best people.

In business the main goal most of us share is to have a functioning, profitable company. If we sell stuff, we want others to buy it. If we hire people, we want them to perform their duties. If we contract a service, we want to have it fulfilled. This is not so much about ethics as common sense.

My trouble with business ethics is not that we should oppose it, but rather we should address attention to the opposite side of the street. If it is no longer profitable to be a stinking liar or a crook, then suddenly we will all be ethical by default. But as long as regulations are not in place or enforced, as long as it is more beneficial to the business to skirt the law, there will always be players out there doing it - and when the least of us thumbs his nose at the law, the rest of us get sucked into a great chain of unethical behavior.

And we do not have to be, generally speaking, stinking liars and crooks to get caught in this trap.

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jednatanja jednatanja 13:55 16.06.2010

What

amazes me that here in Germany there were a few arrests in the last few years of the TOP people, for example, former Mannesmann, today´s Vodafone leaders (actually they got away with millions although they purposefully ruined the company), then Deutsche Post top guy was arrested last year. Even in this epitome of an orderly and behaved society, there are liars and crooks, at the highest levels. Except that the laws are strong, average citizen is pretty satisfied, so no one takes it as personally.

Good text.
mlekac mlekac 13:56 16.06.2010

I'm not good in economics...

But, I have nice example of a friend of ours who had become one of the leading owners of construction companies in BW.

When I've asked him what is a secret of his success, considering the fact that BW has big construction market and lots of company who might offer cheaper deals, he told me that his customers know that, with him, they get value for the money.

And really, he had never, ever, allowed his workers to pass with a poorly done work.

We witnessed when he had forced some guys who were working on covering certain roof to redo it 3 times, because it wasn't right.

My hubby was shocked with that, but our friend had very simple answer:

"I'm paying them to do work properly. As long as money is in my hands, they know that I won't pay them until is done. Once you give money in advance, you loose all control..."

Of course, those guys were well aware of his reputation and they knew that he is paying fair price. But, ONLY if work was finished properly.

I'm afraid that here lots of people tend to forget one thing which people in other countries don't even think about, for them, that one is second nature.

If you are paying for something, it's natural and proper to DEMAND best service for the price you are paying.

Of course, there is always that famous quotation from car repairing workshops -
I can work fast, or I can work cheap, and quality will be the same, but, if you want me to work both fast AND cheap, then don't expect quality!

duchesse duchesse 14:04 16.06.2010

:)

Ovo je Balkan... dishonesty is expected, and one is considered a fool if one abides by the law and complies with regulations. And, yes, you don't have to be a stinking liar and a crook to go with it. You just have to be well-adjusted.
jinks jinks 14:22 16.06.2010

Who

imposes the business ethics in the West? How are the rules of the proper business conduct defined ant trained there?

What is the singular business virtue that the westerners are brought up to live by: loyalty, success, social responsibility? How are people there directed to conduct in a particular manner, businesswise. Through some business societies, political or some other groups and social clubs?

p.s.

Maybe the underlying question is what at the end does it take to be successful.
mlekac mlekac 14:36 16.06.2010

Re: Who

jinks

Maybe the underlying question is what at the end does it take to be successful.


Not only to be successful - there are lots of ways how someone can become successful. But, what does it takes to be successful in the long term? To stay on top through various changes and is it possible to achieve all of that without compromising business ethics?
mikimedic mikimedic 16:20 16.06.2010

You expect

We expect to be cheated; we expect people to lie to us; we expect backdoor deals to be done; we expect political interference in business; we expect the rich to get richer and the poor to get screwed.


mikimedic to post a bad comment here. but he is not.

this is a good text. especially its conclusion.

My trouble with business ethics is not that we should oppose it, but rather we should address attention to the opposite side of the street. If it is no longer profitable to be a stinking liar or a crook, then suddenly we will all be ethical by default. But as long as regulations are not in place or enforced, as long as it is more beneficial to the business to skirt the law, there will always be players out there doing it - and when the least of us thumbs his nose at the law, the rest of us get sucked into a great chain of unethical behavior.

And we do not have to be, generally speaking, stinking liars and crooks to get caught in this trap.
Sepulturero Sepulturero 19:52 16.06.2010

Quod licet...

I do not quite understand what is the author trying to say. Does this problem concern only Serbia? Are there similiar panels organise in, so called, ethical countries?

Was there a panel about scams in, for example, USA with Madoff, Enron and other Ponzi schemes?

What about the scandals in UK with the members of parliament end gouvernment taking money in echange for certain services?

What was Siemens in Germany doing and bribing officials in other countries?

The only difference between Serbia and other, more developed, countries is that in these countries the corruption, lying and frauding are also more developed but not so obvious.
Chris Farmer Chris Farmer 20:20 16.06.2010

Re: Quod licet...

Although the yeah-buttal is a long-standing and oft used tool in these blog debates (i.e., yeah, but look what YOU did!), I point out that if Serbia had indeed cornered the market on unethical business it would be quite remarkable.

As it happens, I write about Serbia as I live here.

The only difference between Serbia and other, more developed, countries is that in these countries the corruption, lying and frauding are also more developed but not so obvious.


I take issue with this - Enron, Societe Generale, and ING Bank being only three examples. Lying and corruption take on mammoth proportions in these developed countries.

In fact (and problematically for Serbia) when the stakes are lower, ethics seem less often to apply.
mlekac mlekac 20:34 16.06.2010

Re: Quod licet...

Chris Farmer

In fact (and problematically for Serbia) when the stakes are lower, ethics seem less often to apply.


Unfortunately, I have to agree about this one.

It's like - this is so small, no one will bother to check me, so I don't have to obey any laws!

I'm sorry if I'm, kind of, simplifying things, but, as I said before - economy is not my field.

Arhiva

   

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