University Games

Copyright © 2002 by David P. Baron. All rights reserved. Reprinted with permission.

Moral Relativism• Individual relativism -- the reference is one’s own motives.

This is objectionable on the grounds that ethics is not to be idiosyncratic, particularly for one who holds an office in an organization. (Individual motives may affect for which organization one works.) Relying on one’s own motives can drift toward self-interest or casuistry.

• Cultural relativism -- the reference is the law and customs of the host society. Local standards and practices surely are not irrelevant but are they morally compelling?

• Universal relativism -- the reference is universal principles. Ethics is intended to contribute to mutually beneficial modes of conduct by everyone, but are all persons in the same circumstances.

Cultural Variation• Sen warns that generalizations about countries and cultures

“hide more than they reveal” and that it is important to recognize simultaneously:– the significance of cultural variation– the need to avoid cultural stereotypes and sweeping generalizations– the importance of taking a dynamic rather than a static view of

cultures– the necessity of recognizing heterogeneity within given communities

• It is important to avoid cultural imperialism-- always holding others to your country’s standards.

• Yet, there must be some universal moral standards.

Reasoning about Cultural Variation• Donaldson argues that companies should address two

conflicts in making moral judgments:– the conflict of relative development. Would the practice be acceptable

at home if my country were at the same stage of development?

– The conflict of cultural tradition. A practice is acceptable if the answer is “no” to the following two questions:

• Is it possible to conduct business successfully in the host country without undertaking the practice?

• Is the practice a violation of a core human value?

• Certain basic principles should be universal:– respect for individual autonomy

– acting to improve well-being

– just actions regarding the less advantaged

Cultural Factors• Customs

– girls sit in circles; woodcutters are barefooted• markets

– wages, hours, breaks, layoffs and overtime– children working

• management practices– firing workers, irregular employment – authoritarian

• tradeoffs– wages for safety

• ethics– autonomy– compensation for an injury

Preecha: Pride and Accomplishment

• Developed ancient and invented new puzzles• Began selling puzzles in the local bazaars• Developed a business from virtually nothing• Employs 300 people plus some work for the villages • Built a dormitory for the workers; the only employer

with one in that area• He is proud and independent -- and rightly so.• Bob Moog respects his accomplishments and his

autonomy.

Does Bob Moog have a moral duty?

• Moral duty to protect and advance rights.• Moral duty to work toward knowledgeable choices• Is Bob best-positioned to improve the difference

between benefits and costs, rights, and justice?– No. Government is. But it is absent on these dimensions.

Preecha is. But is he doing everything that should be done?

• Is Bob best-positioned to induce Preecha to take actions to improve the difference between benefits and costs, rights, and justice? (Calabresi and Melamed) – Yes. He represents 25% of Preecha’s sales.– The same conclusion applies to the other customer.

How should Bob Moog reason?• Are workers treated as autonomous ends, rather than solely as means?

• For example, do workers make voluntary choices; e.g., regarding

safety?– What questions should he ask?

• Are there adequate exits?• Are the doors and windows locked?• Are the work areas adequately ventilated? • Are there respiratory problems in the wood shop?• Is there a fire hazard; e.g., sawdust, solvents in the paint shop? Are there fire

extinguishers?• Is there lead in the paint?• Are saws and machetes cleaned (tetanus)?• Are there adequate rest rooms? Are they clean?• Is the dormitory safe? Clean?

How should Bob Moog reason?

• Are basic rights being violated?• Are workers there because of their free will? (yes) • Are they there because of desperation? (no; working

there is better than most of the alternatives; workers seem happy)

• Are children being employed? How old are the young boys and girls? (He asked and Preecha said 17. Should he check? No, he wants a relationship of trust with Preecha.)

• Are the residents of the dormitory free to come and go?

(yes)

How should Bob Moog reason?

• Are there actions he can take to improve the difference between benefits and costs?

• What about safety (instrumental) in the work place?– Some hazards are well-understood; e.g., barefooted wood

cutters are experienced professionals– Are there any hazards that are not well-understood?

• Respiratory problems from the sawdust– He was able to convince Preecha to purchase new power saws

that had sawdust and particulate collection features. (This also helped reduce damage to pieces and waste.)

• Lead in the paint– He verified that there was no lead. He checks on each visit.

(Also, necessary for imports to United States.)

• Is employment uneven causing excessive overtime and/or layoffs? yes

• Is it due to the scheduling of orders? yes, in part– Made longer-term commitments about quantity

and delivery schedules, so workloads could be balanced.

• Should anything be done about subcontracting to the

villages?

How should Bob Moog reason?

• Are the workers treated justly?• Are wages and work hours comparable to those in

northern Thailand? yes• Is it just to fire a worker who does not know what is

expected of him or her?

– Bob convinced Preecha to display model pieces and completed puzzles so that workers could see what was expected of them.

If Bob Moog has a duty, how should he develop influence over the situation?

• They will have a long-term economic engagement; should he develop a personal relationship rather than an arms-length relationship? How?– Developed a relationship with Preecha and his family. On

each visit to Chang Mai, brought gifts for the entire family.• Mailed information on workplace health and safety to Preecha’s

home.• Got lucky. Preecha’s wife was trained as a nurse and read the

materials.– saws and axes are cleaned to reduce risk of tetanus– workers in wood shop wear masks– moved painting away from wood shop and from where solvents were

stored– hired a supervisor for clean-up

If Bob Moog has a duty, how should he develop influence over the situation?

• Deepened the economic relationship

– established goals for each year• delivery, quality, new product development• included something else Moog wanted -- new restrooms

– smoothed production and held more inventory during off-season

– worked on improving some work practices• girls now paint a single color--but they still sit in circles

• Preecha earned more profits each year

– Moog rewarded him a bit

– sales of the Rain Tree line increased to $3 million

– number of employees doubled; built a second dormitory

Special issues in operating in some developing countries

• government may not have the means or the expertise to address some matters of importance

• institutions may not be in place or enforcement may be lax

• poverty -- people may not have the means to take care of their own interests or defend or exercise their rights

• education may be limited

• excess supply of labor can lead to choices made because of desperation

• rights may not be well-protected

• activist and advocacy groups may not be present

• corruption may be present and in some cases pervasive

• government may not be a democracy; people may not have political sovereignty