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Evolution & Business Ethics 1
Running Head: EVOLUTION & BUSINESS ETHICS
Evolution & Business Ethics
Johnnie J. O'Dell
OM8102
July 30, 2010
Ethics and Social Responsibility
303 Park Avenue #1256
New York, NY 10010
Telephone: (917) 804-4907
Email: [email protected]
Instructor: Steve Tidwell, PhD.
Evolution & Business Ethics 2
Abstract
Ethics, an investigation into moral standards is investigated through the lens of
Darwin's theory of evolution as it applies to business ethics. Ethics cannot be forced on
businesses, it must come from within the organization. Ethics globally, are as diverse as the
countries in which business ethics are practiced. There is no real guide that suggest that
business ethics will have a positive effect for businesses across such a diverse sphere of
influence. Evolution in business ethics attempts to answer the question, “how does evolution
apply to business ethics and is it reasonable?”
Why Evolution in Business
Ethics is an investigation into moral standards (Velasquez, 2001). This paper is an
ethics investigation into evolution and how it can be applied to business ethics. The moral
standards of business can be much more concrete drawing from evolution. The pertinent
question is, “how does evolution apply to business ethics and is it reasonable?”
Ethics as an Issue
Business ethics research has consistently widened in scope since the 1990s (Kolb,
2007). Research has always been interdisciplinary, however, matters outside the business
organization have come into sharp focus. Traditional ethical issues are intrinsic of corporate
strategies, policies and organizational structure. Now external concerns are focusing on
corporate social responsibility (CSR) and the ethical conduct of the organization with outside
stakeholders. Stakeholders include, shareholders, consumers, suppliers, strategic partners,
communities, and the environment. CSR, also known as corporate responsibility or corporate
governance and focus on mainly on philanthropic issues. Other ethical fields include strategic
concerns such as sustainable development and the triple bottom line, i.e., integration of
economics, social, and environmental issues.
Evolution & Business Ethics 3
Ethics scandals in recent years has ignited inquiry into ethical best practices.
Corporate scandals and the ensuing regulatory response between 2001 and 2004 has
focused attention on ethics research centers and the formation of new ones (Kolb, 2007). The
initial response to such corporate ethics scandals involving companies such as Enron,
WorldCom, Parmalat, and Tyco, was to introduce compliance-focused legislation. Conversely,
rule-based approaches to business ethics is not a sufficient requirement to ensure ethical
behavior in business. Rather, there must exist a reality within the minds of the organization
that defines and appropriates organizational values. These values in turn, will guide ethical
decisions helping to define organizational culture.
Business Values Derived from Evolution.
Values are the beliefs individuals have in an organization in which they are emotionally
invested (Value, 2010). It gives decision makers a right or wrong feeling in which ethics are
built. To derive values from Darwin's theory of evolution, we must first understand its
paradigm. Darwin's theory of evolution is a descriptive study, not a normative study
(Darwinism, 2010). That is it describes evidence for evolution rather than a mechanism for
genetic change. It demonstrates all species and plant life are intertwined in an evolutionary
process (Darwin, 2010). Conversely, normative studies of evolution have given rise to horrific
theories, catch phrases, and ideas. For example, Herbert Spencer coined the phrase,
“survival of the fittest.” Such ideas are reminiscent of a bomb ready to explode. Something
individuals would like to get away from as quickly as possible. It suggest that individuals of a
species are less fit to survive in a niche and are flailing for survival. The truth is that others
within the population may occupy niches in which they are well adapted. Those species that
do face extinction, face a slow arduous death,
Two business values can be derived from the above discussion. The first value is a
Evolution & Business Ethics 4
derivative of the interconnection between animals and plant life. Sir Charles Lyell influenced
Darwin early in his life (Desmond & Moore, 1992). His theory of uniformitarianism fascinated
Darwin and sparked his interest in the origins of life. The existing forces operating on earth to
the present time has shaped its current form. Much like evolution has shaped the form of life
on earth. Change the conditions, and life changes. Additionally, if the environment changes to
fast for a species to adapt, extinction will ensue (Darwin, 1999). We see this in business
ethics and global issues with respect to the environment. Environmental issues are summed
in the term Green. Business are going Green to remain ethical in the eyes of consumers.
Green circumscribes such ideas as ecological concerns, conservation of the planet and its
natural resources, CSR, and more (Saha & Darnton, 2005). The values people hold for
maintaining the environment does have its dimensions in evolution. As to date, business
cases show that Green business are simply window dressing the issues, i.e. greenwashing
(Orange & Cohen, 2010). Compliance-focused legislation is not enough to ensure the
protection of our environment, the values must come from within the organization.
The second value is derived from the term survival. Survival of the fittest is not a reality,
but a conjuration of a madman. Reality is that others seek safe harbor in complementary or
adjacent niches. Values derived from such an ideas lead to Social Darwinism, eugenics, and
evolutionary ethics. Spencer and Walter Bagehot in England and William Graham Sumner in
the United States came to the conclusion that the meaning of fit is equivalent to wealth (Social
Darwinism, 2010). That is, wealth is a sign of natural superiority. Conversely, business cases
in New York City can demonstrate that Darwin’s theory applies to populations doing business
in other niches. These cases are derived from personal observation and inquiry. In this case,
many business owners are poor. They have section 8 housing and have much of their rent
paid by the federal government. Many are on SSI or some other form of disability. These
Evolution & Business Ethics 5
businesses under current law are illegal. Reporting income from a business source would
exclude these proprietors from receiving benefits from local and federal governments.
Moreover, they would face criminal charges such as tax evasion, fraud and other related legal
actions, However, they continue to operate a business despite the risk of being discovered.
There are many variations of the same theme. For example, housing and other needs may be
met through refugee funds from the federal government. Yet, the benefactor runs a small
business. The capacity to understand, operate and be held accountable for a traditional
business may lay beyond the limits of the proprietor. In addition, the physical capacity of
working as laborer may as well be beyond their physical limitations. This is consistent with
Darwin's survival observations. The businesses occupy niches in which they are well adapted.
Extinction is a slow arduous process (Darwin, 1999). Humanitarianism may have arisen, i.e.
philanthropy, to thwart its destructive effects and final conclusion.
Humanitarian efforts may be an evolutionary trait passed on through natural selection.
This is purely a descriptive observation. If all species play the survival game, then logically,
one of the species has to win. The truth in this statement still has to be ascertained. Charles
Darwin, (1999) states that the utter extinction of a group is generally, as we have seen, a
slower process than its production. Extinction, a slow death of a species of Earth, is rigorously
recorded in geology. Natural selection and extinction has led to a divergence of character.
Why would we want to reproduce it in society, other than it benefits the wealthy. Natural
selection has given a species a random opportunity to win the Kings gambit in the form of
humanitarian efforts. Humanitarianism may give time for people to to diversify, raising their
defenses against extinction. This diversification can allow for environmental influences to
impact a fraction of the species rather than the whole.
The two values that are rooted in evolution, environmental and humanitarian values,
Evolution & Business Ethics 6
have their evolutionary roots. The philanthropy of CSR is well justified. Unfortunately, Darwin’s
descriptive studies has been distorted by other scientist normative studies base on Darwin’s
observations. Additionally, evolutionary dimensions may influence the ethics of investors and
entrepreneurs to realize new opportunities. For example, investors may find micro loans,
micro credit and other such investing activities ethical. Investors, via the current business
climate have become ethical investors. Moreover, organizational decision makers may see
new opportunities for distribution; and help resolve issues in other business niches in an
compassionate manner. Evolution in business will create values reshaping ethics for more
sound moral decision making in business and uncover new business opportunity.
Ethical Components of Evolution in Business Ethics
Ethical Business Practices and Evolution
Ethical business practices vary across the globe. Such business ethic studies
investigates moral standards, and how those standards apply to social systems and business
organizations (Velasquez, 2001). Ethical issues address the systemic, corporate, and
individual. Applying ethics to an organization is controversial at best. For example, are
corporations morally responsible in the same sense that individuals are? There lies a
discrepancy in justice. Arthur Andersen provides a case in point. Andersen working as an
accountant for Enron, was charged with obstructing justice. This is due to the belief that
companies do not commit crimes. Conversely, there is an emotional conflict that arises as to
whether this is right or wrong.
The Enron case can shed some light on the role corporation play and if individuals not
the company should be held accountable for a business crimes. Consider organizations as
groups of people. Cooperation within groups tends toward moral ambiguity (Eck, 2003).
Interaction among group members can provide business with functionality, however,
Evolution & Business Ethics 7
cooperation can be used as a weapon against other group members within the organization.
This was clearly demonstrated in the case of American Airlines. CEO Donald Carty intended
to pay executives top dollar in bonuses and other perks while asking the employees for
shared sacrifice in a layoff. Andersen is no different. Andersen used its cooperation with
Enron as a weapon against other outside groups. This double edge sword can be viewed in
terms of multilevel selection theory.
Multilevel selection theory is applied to all levels of hierarchy (Wilson, 2003). Within-
group selection creates a bubble in which individuals use each other maximizing their fitness.
The verdict according to evolution applied to business is well justified. Group selection gives
rise to morality within groups, however, it is absent in between-group interactions. The
evolution of a single trait reduces the ambiguity when applying it to business ethics. This is
the most fundamental component of evolution in business. For example, if Andersen’s actions
only damage himself, then there is no need to understand its moral issues. However, his
behavior in business effected society and brought legal action against him. This is consistent
with evolution. When an individual's behavior impacts society, they are judged on their own
merits and the merits that society values. The corporation is not held accountable since the
moral sense is a derivative of social instincts (Darwin, 1981). The corporation is a
manifestation of community in which both, are at first, are exclusively related too. Moral
development in a global context varies from society to society. This is largely in part to an
individual's moral development within a society.
Lawrence Kohlberg modeled the development of an individual's ability to deal with
moral issues (Velasquez, 2001). Kohlberg model consist of three stages of development.
Each stage has two subgroups. The latter of the subgroups is the more advanced in moral
development. The three levels of moral development include the preconventional,
Evolution & Business Ethics 8
conventional and the postconventional. The first stage, punishment and instrumentation serve
as an initial guide for moral development. This includes consequences of a child’s actions in
the form of punishment. When the child learns the right actions, they become instrumental in
filling the child’s needs. The conventional stages are interaction with peer groups, family and
national expectations. Loyalty is develop and the individual is integrated into society as a
whole. In the last stage of moral development, ethical principles become universal. Doing
right is based on an abstraction of earlier learning. Thus, business ethics cannot be based on
what feels right or wrong. What may be right for one individual, may be wrong for another or
socially irresponsible. Evolution as applied to business ethics seeks to find the underpinnings
of such ethics to facilitate moral standards. It is not a normative study to draw conclusions
about how evolution directs business. Rather a descriptive study of observations. Therefore
avoiding the dangers of ethical manipulation that distort reality and lead to destructive
behaviors.
Ethical Components of Evolution in Business
There is an infinite list of ethical components circulating the globe. Business ethics rely
on ethical foundations that have been in existence for thousands of years. For example,
Confucianism business ethics is based in the teachings of Confucius. Confucius philosophy
considers human nature to be perfectible. Perfection is obtained through reciprocity, justice
with justice, generosity with generosity (Confucius, 2010). Business ethics is a set of
postulates that guide behavior in business (Ferrell, Fraedrich & Ferrell, 2006). Definitions of
business ethics range from rules to what is right or wrong to conformity-based religious
underpinnings. Those standards have been derived from society at large.
Many ethical structures exist that have evolved over time. Many business ethics have
their roots in religion. A small list of religious ethics include: Buddhist ethics, Christian ethics,
Evolution & Business Ethics 9
Confucian ethics, Hindu ethics, Islamic ethics, Jewish ethics, and Western ethics (from the
Bible). Many of the ethical constructs make into the organization. For example, in Korea,
there are two main corporate cultures, Hyundai and Samsung (Budhwar & Debrah, 2001).
However, the two cultures are tied together by Confucian work ethics. Common traits of
Confucian work ethics are top-down decision-making, paternalistic leadership, loyalty, and
individualism. The management style in Korea is usually a owner-manager or clan
management with lifetime employment. Ethical business practices are as varied across the
globe as religion. Evolution in business ethics seeks to find evolutionary underpinnings that
can facilitate ethical investigations into moral standards.
Definition
It is helpful to give a term to give a term for evolution in business. Evolutionary
business ethics needs a definition that is both simple and descriptive. Such a term needs a
working definition. In search for such a definition, the concept of right or wrong need be
excluded. Right and wrong only serves to complicate the definition and leads to ambiguity.
Moreover, it is inappropriate for it to have normative implications. Rather, following in Darwin's
footsteps, it should be open and descriptive to avoid any conclusive sediments that can lead
to misinterpretation of the definition. History has shown normative interpretations of evolution
have led to such concepts as Social Darwinism, evolutionary ethics, and eugenics which is
associated with Nazi Fascism. Evolution in business ethics is simply an influence derived
from Darwin's theory of evolution on the values which sway ethical investigation into moral
standards with respect to business.
Business ethics has a variety of definitions. Moreover, business ethics is a normative
study of ethics and how it can be applied to business as a means to an end. However, the
definition must not be one of right or wrong (Jones, Parker & Bos, 2005). It must be precise
Evolution & Business Ethics 10
enough to use in business applications, yet devoid of the right or wrong paradigm. If some
business activity is right or wrong, then some concrete assertions about business practices
have been made. Sternberg (1994, as cited in Smit, & Morgan,1996), gives the following
description:
business ethics is the application of ethical reasoning to specifically business
situations and activities, so that moral issues that arise in business can be resolved or
at least clarified.
This description satisfies the above requirements. Right or wrong are not included in the
definition. Coupling the evolution with Sternberg's description, the following definition
emerges. Evolutionary business ethics is the influence of the theory of evolution on business
ethics adding clarity to moral issues arising in business. This definition is simple and precise
enough to be applied to business, yet open ended to avoid any conclusive reasoning leading
to the use of evolution as evidence of ethical and moral correctness. Moral qualities according
to Darwin (2009), are advanced, either directly or indirectly, much more through the effects of
habit, the reasoning powers, instruction, religion, etc., than through natural selection. Rather,
natural selection works on social instinct in which moral qualities are reliant.
Evolutionary Algorithm
Recent advances in evolutionary theory can give evolutionary business ethics a
glimpse into the theater of ethical controversy. In Darwin's life time, theorist had no realization
that units of their culture were subject to selective forces, i.e. memes (Blackmore, 2000). The
Oxford English Dictionary (1999, as cited in Blackmore, 1999) gives the following definition:
meme. And element of culture that may be considered to be passed on by non-genetic
means, esp. imitation.
Memes are imitated through a process of an evolutionary algorithm. This algorithm is
Evolution & Business Ethics 11
mindless action, completely unintentional. The outcome of such an algorithm are units of
culture, however, there is no way to predict what that unit of culture will be.
The evolutionary algorithm consist of heredity, variation, and selection. Darwin was
able to explain the appearance of a diversity of species. Evolutionary business ethics can use
meme theory or memetics, in an attempt to understand concepts in business ethics. For
example, moral reasoning is always undergoing change due to evolution. It is amorphous or
polymorphic. Moral standards are inherited within society. However, there is a variation in the
set of moral standards used to judge policy, institution or behavior. The fractional information
concerning policy, institution or behavior, is now pitted against inherited moral standards with
variations. Those moral standards that are less fit, will find other niches, i.e. those people who
hold onto their beliefs, or will be selected out.
Extinction is a gradual process, thus, ethics may fade gradually through time. For
example, the case of slavery in the chocolate industry, demonstrates that slavery is still a
business practice in the twenty-first century. Half of the world's cocoa beans are grown on the
Ivory Coast, Ghana and a small country in Africa (Velasquez, 2001). Young slave boys ages
twelve to sixteen are sold to cocoa farmers from the surrounding nations of Benin, Burkins
Faso, Mali, and Togo. In response, the International Labor Organization adopted a convention
to stop all forms of slavery. Eighty-nine countries ratified the convention. The Ivory Coast
sided with the other ninety-three countries that did not ratify the convention. American
chocolate makers such as Hershey, Mars, and Nestle were aware of the slaves on cocoa
farms. The Chocolate Manufacture Association condemned these practices in 2001. However,
to date, attempts to resolve the slave issues has been unsuccessful.
Memes are very viral. Ethical issues that are morally offensive can spread to infect a
susceptible population (Blackmore, 1999). Once the susceptible population is infected, then
Evolution & Business Ethics 12
like a virus, it stops. In the above business case, memes were spread around the globe via
True Vision (Velasquez, 2001). True Vision is a British television company who recorded
videos of the slave boys on the Ivory Coast. These videos documentaries were broadcast in
the United States and in Britain. These memes infected such entities as the United Nations
Children's Fund, The U.S. State Department, The International Labor Organization and the
general population of 195 countries around the world. Like a virus, it infected enough of the
susceptible populations globally for eighty-nine countries to ratify the convention based on
their moral standards. Enough of the population of the host counties of chocolate
manufactures, such as were infected to bring about a review of their business practices and
CSR. In response, The Chocolate Manufactures Association sponsored an ethical
investigation into the slave issue and establish an international foundation for oversight.
Ethical standards of bribery and lack of infrastructure contributed to the lack of success.
These ethical memes are in competition with the ethical memes of the farmers in their host
countries and with those of the nations that did not ratify. What is ethical and unethical in our
experiences is a process of both natural and mimetic selection. Ethics is best understood
when no conclusions about them are made.
Niches
Brand equity in the twenty-first century is driven by marketing strategies such as niche
marketing, integrated marketing, lifestyle marketing permission marketing and CSR initiatives
(Kolb, 2007). Branding was designed to create mass appeal of a product to niche markets
leaving traditional marketing behind. Branding in the twenty-first century became a function of
management consultants and executives. It spread across all major industries.
A flood of brands had ensued by the late twentieth century. At the end of the century,
market segments were reaching saturation (Kolb, 2007). To differentiate a product or service,
Evolution & Business Ethics 13
branding strategy gave the brand definition, a brand personality, its place in the market, and a
market strategy. The brand also carried an ethical core. A brand is an organizations
personality and agency. An agency that enacted a company to produce products for the
consumer. Organizations that have maid true their claims, became the most trusted brands.
Those deceptive organization seeking only commercial gain lost favor and lost the trust of the
consumer.
The medial bombarded consumers with a flood of advertisements. Products and
services had to be highly differentiated to survive the intense media clutter. The branding
process defined the shopping experience and only those products that occupied a niche could
survive. Thus, niche marketing was born. Some rare companies have seen the benefit of
relating and implementing marketing to Darwin's theory of evolution. This process can be
seen in the business case of Darwin's Marketing Evolution Inc.
Szekfű (2010) claims that Darwin's Marketing Evolution Memetic Networks is the next
step in the evolution of marketing. Darwin's Marketing Evolution Inc., founded in 2003, is a
marketing research company based in Budapest, HU. Darwin's clients include firms such as
Abbott Laboratories, T-Moble, and K&H Bank. Founders László Mérő and Balázs Szekfű have
differentiated their consulting firm grounding it in the theory of evolution and applying it to
marketing.
At the core of Darwin's marketing organization, is a research facility that decodes and
recodes fundamental thought structures rudimentary to society. These technology gives rise
to smart marketers. Much of the research is overseen by Douglas Rushkoff of New York
University (NYU) and Dr. Paul Marsden of the London School of Economics. Marketing
methodology is based on two branches of science: memetics and networkology. Combining
these two technologies, Darwin's creates messages via memetic engineering. These
Evolution & Business Ethics 14
messages are designed to standout from ideas that compete in society.
A project example, for BetterPlace Inc consists of engineering an eCar Meme. This
meme will create a thought pattern facilitating its spread throughout the human population.
The project consist of mapping memes with respect to electric cars. Then, by examining the
global consciousness of electric cars, Darwin's will engineer the most competitive eCar Meme
for BetterPlace Inc. Once the eCar Meme is tested and proven, a strategy will be formulated
the diffusion of the meme. One of the goals of the eCar Meme is to create eCar communities
both globally and nationally. Thus, the goal of making the BetterPlace' eCar standout from the
rest of electric cars, hybrids and city-eCars would be realized.
THE LAW OF HONOUR
William Paley, a British Christian apologist, philosopher and utilitarian, is known for his
argument of the existence of God in his book, Natural Theology. Paley was a influential
philosopher during the era of Enlightenment in Britain. His work effected both the British
Parliament and the U.S. Congress and was required reading for Darwin in his early academic
years. Paley (1823) gives the following definition of THE LAW OF HONOUR:
THE LAW OF HONOUR is a system of rules constructed by people of fashion, and
calculated to facilitate their intercourse with one another; and for no other purpose.
The biggest problem with THE LAW OF HONOUR, is with both communication and exchange
between individuals and groups (Paley, 1823).
This law only facilitates ethics within a group. That is, an individuals peer group has
become an ethical bubble in which they exist. What clearly sets this group apart from other
groupings, is the omission of those not circumscribed within the group. Our behavior is
derived from the feedback we receive from society (Darwin, 1981). The tendency opposing
our social instincts is THE LAW OF HONOUR. That is, according to Darwin (1891), the law of
Evolution & Business Ethics 15
the opinion of our equals, and not of all our countrymen. Overturning this law, even through
ethical and moral argument, inflicts emotional battery upon an individual in which it was
overturned. Communities respond with judgment and disdain for such behavior. Their sense
of justice usually lacks rigor without the cognitive facilities to negotiate these particular
problems. Thus, the welfare and happiness of society is never realized. The business case of
conflict diamonds demonstrates the action of the LAW OF HONOUR.
Diamond producers such as De Beers realized some of the diamonds they traded
came from rebels who fought brutal civil wars (Velasquez, 2001). These rebels financed their
war by taking siege to diamond mines in Angola and the Democratic Republic of the Congo
(DROC). The DROC was previously known as the Belgian Congo (American University, n.d.).
Belgium attempted to colonize the DROC in 1884 and withdrew in 1960. At that time, the
DROC was granted its independence. The result left the DROC in civil strife and politically
and economically unstable. By the 1990s, thirty years of armed conflict had ensued the
colonial state.
Colonialism coupled with the The Law of Honour produced a system of rules legislated
by Belgium settlers. These laws and rules initiated the thirty years of bloody conflict in the
DROC. Belgium’s withdraw is very predictable. Overturning these laws in the face of ethical
and moral arguments would inflict emotional battery to both citizens and the nation of
Belgium. The communities of the DROC responded with judgment and disdain for the
behavior of Belgium, the settlers, and other active groups within the DROC. The community
was fragmented. The DROC was extremely underdeveloped and rampant with ethnic
upheaval. Not only did the DROC lack rigor in their justice, they lacked the education and
infrastructure to deal with their problems.
There is little doubt that factions in the DROC felt their situation was unjust and lacked
Evolution & Business Ethics 16
fairness. Ethnic strife is derived from discrimination, unjust favoritism and distributing the
burdens of society fairly (Velasquez, 2001). Under colonial law, the benefits and burdens of
society were unfairly balanced in its administration. This created groups who shared the same
ethics and views of other opposing groups. Within each group, the shared ethics creates an
ethical bubble in which each member is viewed as morally responsible. Intergroup interaction
is where ethical conflict arises.
Judgments of each ethical group in response to their situation in the DROC, is usually
given in the best long term interest of each faction (Darwin, 1981). The lack of education and
the ability to reason out their problems, led to the behaviors in opposition of the welfare and
happiness of the citizens of the DROC. Rather, social instinct coupled with sympathy within
groups is the primary impulse and guide. In laying siege to the diamond minds, rebels
mutilated twenty thousand children, women and men by cutting of their arms and hands
(Velasquez, 2001). Once the diamond mines were under control of the rebels, they were able
to finance a series of civil wars. Thus, the welfare and happiness of the democracy of the
DROC was never realized.
Business ethics in the U.S. has concluded that is morally wrong for business to trade in
conflict diamonds (Velasquez, 2001). Rebels that took over the diamond minds violated the
human rights of those individual whose hands and arms were removed. those rebels are
morally responsible for the injuries and the handicapped life they must live without the use of
their limbs. The three conditions of moral responsibility are met: (1) rebels caused injury, (2)
rebels knew what they were doing, and (3) rebels did so of their own free will. As a business
organization, they are now responsible and in violation of the Universal Declaration of Human
Rights as set forth by the United Nations. These are fundamental freedoms that demand
respect for one another as human beings, regardless of race, religious beliefs, nationality, or
Evolution & Business Ethics 17
ethnicity (Brenkert, 2009). But what of the actual behavior of physically removing limbs in the
hostile takeover of the diamond business.
Because of the the DROC's underdevelopment after colonialism, the dilapidated
human condition, i.e. ignorance, has lead to the deplorable instinctual behaviors from rebel
forces. Darwin (1981) made the following observation,
hence the strangest customs and superstitions, in complete opposition to the true
welfare and happiness of mankind, have become all powerful throughout the world.
Another example of such a manifestation comes from the social theater. Honor killings has
been an issue in the Netherlands. Turkish communities have killed their daughters via
breaking their chastity (Eck, 2003). Honor killings have many moral implication for groups
outside the Turkish communities in the Netherlands. A strange custom based on superstition
indeed. In light of the brutality of rebel forces, the World Diamond Counsel has pledged to
exclude conflict diamonds from trade. Conversely, their efforts have met with little success.
Business ethics does apply ethics to situations to solve problems. From evolutionary
business ethics, an answer may be derived. By looking at the rebel factions as interacting
ethical communities, i.e. ethical bubbles, laboratories can engineer memes to boost political
and economic stability in the region. Drawing from Darwin's Marketing Evolution Inc.,
laboratories can decode, and then recode fundamental thought structures on which the
DROC ethical communities are based. The purpose would be to create political and economic
memes, that radiate amongst the ethical communities. One possibility, is that the DROC could
wake up each day listening to John Lennon's song, “Imagine.”
Evolution & Business Ethics 18
The Organization
Organizational Behavior as an Organization
Altruism
Darwin was baffled by the implications of altruism (Post, Underwood, Schloss &
Hurlbut, 2002). That is an unselfish act for the welfare of another. He believed that true
altruism was grounded in nature. Darwin was strongly opposed to ideas that gave rise to
theories of human behavior undermining its sense of community and freedom. Rather, Darwin
felt that altruism is derived from anatomical, physiological, and psychological adaptations with
their foundations in social species. Altruism contrasted Darwin's theories of selfish motives.
Moral acts were not the motivated by the pursuit of pleasure. Morality is motivated by social
instincts by which cooperation is in the best interest of the community giving rise to the
greatest number of healthy individuals. However, the selfish motive may not be as obscure in
the light of altruism.
Communities can be viewed as an individual organism much like a corporation. For
example, a member of the Red-necked Pademelon, will send an alarm signal to the
community by thumping its rear foot when threatened (Ozinga, 1999). This altruistic act
transfers selfish motives to the collective. The collective is acting as an individual rather than
competitive members of a society. Genuine altruism can be explored through the business
case of Merck and Company, Incorporated.
Merck a pharmaceutical company decided to tackle the problem of “river blindness” to
help villagers living in tropical regions in Africa and Latin America along the river banks
(Velasquez, 2001). River blindness is spread by the black fly that breeds in the river waters.
When the black fly bites a person, a parasitic worm enters the body. Eradication efforts to
eliminate the black fly failed when when they build an immunity to the pesticides. Merck's
Evolution & Business Ethics 19
Ivermectin, a pharmaceutical for animals at the time, proved to be effective against river
blindness. However, the developing the drug for human use would cost over one-hundred
million dollars. In addition, the villages would not be able to afford the drug, nor would a
market develop do to poverty in the regions. Even if the first two problems of developing
Ivermectin were overcome, there were no distribution channels to distribute the drugs in such
remote locations in Africa and Latin America.
Despite the obstacles facing the Merck company, they decided to go ahead with the
research, development and distribution of the human version of the drug Ivermectin. Merck
also faced economic problems as well. The companies two billion dollars in sales was
threatened by the cost of RD, and industry climate. The Drug Regulation Act posed a
considerable problem by allowing competitors to copy and manufacture Merck's drugs.
Generic drugs were also ahead of the line as a cheaper alternative to brand name drugs.
Medicare and Medicaid required that generic drugs be used in place of brand names. The
logistical problems and the declining conditions in the drug industry made this an altruistic act.
“Mectizan,” the final result of Merck's efforts, proved effective in eradicating the
parasite from the human body. One pill taken once a year was an effective defense. Merck's
production and distribution of a drug that does have its selfish motive intact. The company
knows that Africa and Latin America will remember the company in the future giving them a
foot hold in the market. The company had learned this lesson in Japan with its drug
streptomycin. Streptomycin was used to eliminate tuberculosis after WWII, a rampant
epidemic. Merck made no money at the time, however, today they are the largest American
pharmaceutical company in Japan.
Altruism as an unselfish act really makes no sense. In Merck's case, the concern for a
Evolution & Business Ethics 20
such a vicious disease was legitimate and without prejudice. Merck included all segments of
society in their efforts to eradicate the parasite from the human body. The medical community
places no boundaries around organizations or individuals such that they are biased out. It's
roots and traditions may reside in the Hippocratic oath. Thus, Merck's case has a tendency to
support zoology's definition of altruism (Altruism, 2010).
Zoology. Instinctive behavior that is detrimental to the individual but favors the survival
or spread of that individual's genes, as by benefiting its relatives.
Merck is a corporation which has no life span. It has put itself in danger by developing new
products and distributing them without are return on their investment. Their CSR has given
Merck lasting rewards far into the future. Evolutionary business ethics has given insight into
altruism. However, what are contrasting cases where altruism is the banner of light and the
meme infection is detrimental to society. The business case of Mother Teresa demonstrates
just such a problem with altruism.
Mother Teresa (2010) is a Roman Catholic nun, founder of the Order of the
Missionaries of Charity. Mother Teresa's father owned a grocery store. Here interest moved
her to India where she became a nun and studied nursing. In 1948, she moved to Calcutta
and founded her order. Her mission was to help the sick, blind, disabled, and the dying.
Conversely, her CSR is lacking in all respects. The memes that are spread in the name of
“good,” are actually detrimental to society (Blackmore, 1999). Much of the worshipers time is
spent spreading the divine word of God. Moreover, it is readily accepted to discriminate
against women, gays, prostitutes and others that may be classified as sinners.
Mother Teresa is considered a saint. The Catholic Church may canonize her one day.
She is claimed to be altruistic and a selfless individual. However, evolutionary business ethics
demonstrates that selfless acts of heroism are not normally observed in nature. Rather,
Evolution & Business Ethics 21
altruism is a selfish act benefiting the community as a whole. Blackmore (1999) cites:
Some of the inhabitants of Calcutta accuse her of diverting attention from the real
needs of the city's poor, of giving Calcutta a bad name and of helping only those who
were prepared to take on Catholic teachings.
Additionally, her outreach met with wome whom she left with no access to contraceptives.
Mother Teresa was clearly anti-abortion, and anti-birth-control. She deprived these women
control over their own reproductive systems in the face of rape and with no access to health
care under the banner of altruism. The orders policy would indicate that people were bred
and forced into the ranks of the Catholic Church by suffering.
Mother Teresa led hundreds of thousands into misery breding people like herds of
cattle without the possibility of proper medical care, housing, and basic humanitarian rights.
This is the strategy of the Catholic Church that has promoted the sacred heart for 700 years.
The sacred heart campaign originated at the beginning of the thirteenth century (Herbermann,
C.D, Pace, E.A., Knights of Columbus, 1913). As stated in The Catholic Encyclopedia
(Herbermann, C.D, Pace, E.A., Knights of Columbus, 1913, p. 165) John replied that this
revelation had been reserved for subsequent ages when the world, having grown cold, would
have need of it to rekindle its love. According to Edred Thorsson (1984), “Heart” (actually an
ancient representation of female genitalia and a representation of the female buttocks)-
sensuality, eroticism, love. In Old Norse books of magic the sign often appears in spells of
love magic; a symbol of sexual intercourse. Therefore, there resides a dependence of sacred
heart and human reproduction.
The Order of the Missionaries of Charity is a far cry from Merck and Company Inc. The
order is a predatory organization servicing the Catholic Church. In 1979, Mother Teresa
received the Nobel Prize for Peace for her efforts.
Evolution & Business Ethics 22
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