Manuel Velasquez

Making Business Ethics Practical

Our critics confuse the role normative ethical theory can take in business ethics. We argue that as a practical discipline, business ethics must focus on norms, not the theories from which the norms derive. It is true that our original work is defective, but not in its form, but in its neglect of contemporary advances in feminist ethics.

INTERNATIONAL BUSINESS, MORALITY, AND THE COMMON GOOD

The author sets out a realist defense of the claim that in the absence of an international enforcement agency, multinational corporations operating in a competitive international environment cannot be said to have a moral obligation to contribute to the international common good, provided that interactions are nonrepetitive and provided effective signals of agent reliability are not possible. Examples of international common goods that meet these conditions are support of the global ozone layer and avoidance of the global greenhouse effect. Pointing out that the conclusion that multinationals have no moral obligations in these areas is deplorable, the author urges the establishment of an international enforcement agency.

Globalization and the Failure of Ethics

As the 21st century breaks upon us, no ethical issues in business appear as significant as those being created by the rapid globalization of business. Globalization has created numerous ethical problems for the manager of the multinational corporation. What does justice demand, for example, in the relations between a multinational and its host country, particularly when that country is less developed? Should human rights principles govern the relations between a multinational and the workers of a host country, and if so, which principles are the correct ones? How should a multinational deal with a government in which corruption is rife? What are the ethical considerations involved in determining whether and how to transfer a risky technology to a country whose people may not be able to safely absorb that technology? What kind of labor and environmental standards should a multinational adopt when operating in a country whose government legislates only very low standards?

Why Ethics Matters: A Defense of Ethics in Business Organizations

I argue that Plato was right in claiming that justice is more profitable, more rational, and more intrinsically valuable than injustice, and that this is particularly true for business organizations. The research on prisoners’ dilemmas and social dilemmas shows that ethical behavior is more profitable and more rational than unethical behavior in terms of both the negative sanctions on unethical behavior when interactions with stakeholders are iterated, and the positive rewards of habitually ethical behavior when stakeholders can identify those who are predisposed to be ethical. In addition, the psychological research on justice shows that justice is intrinsically valued, both from an outcome and from a process perspective, and so crucial for business organizations, particularly in terms of organizational effectiveness.

International Business Ethics: The Aluminum Companies in Jamaica

I evaluate the adequacy of the three models of international business ethics that have been recently proposed by Thomas Donaldson, Gerard Elfstrom and Richard De George. Using the example of the conduct of the aluminum companies in Jamaica, I argue that these three models fail to address the most important of the ethical issues encountered by multinationals because they focus too narrowly on human rights issues and on utilitarian considerations. In addition I argue that these models also evidence an inadequate understanding of microeconomic theory. I end by proposing that these defects can be remedied by a model of ethics that incorporates a theory of moral rights, a utilitarian-based theory of the market, and a theory of justice.

Religion and Business: The Catholic Church and the American Economy

In 1986, the American Catholic Bishops wrote a letter on the American economy. It went through three revisions, took three years to write, and involved the input of thousands of people. In its final form, it elaborated several moral principles and described the implications of these principles for economic policies pertaining to employment, poverty, agriculture, the international economy, and collaboration. The letter has incited a significant amount of discussion, both pro and con, and its policy recommendations have generated considerable controversy. The authors detail the process of writing the letter, review its contents, and analyze its positions.