The Ethics Alliance: Why now?

After almost thirty years of existence, The Ethics Centre has chosen this particular time to establish The Ethics Alliance. Why the Alliance, and why now?

I’ve heard it suggested that the Alliance is a necessary response to a period of history in which our trust in institutions – including banks, governments and the media – has dropped to a new low point. Some may see it as an opportunity for organisations to restore their battered reputations.

Others may see the Alliance a little more generously, as a community of like-minded organisations with a common commitment to good business practice. A collaborative effort to raise the standards of good business behaviour. A source of insights and tools that will enable better culture to emerge.

While low levels of trust certainly form part of the context within which The Ethics Alliance is emerging, we believe the root cause of our current malaise is something far more significant: the fact that we are on the edge of a transformation that will change our society in ways every bit as profound as those caused by the First Industrial Revolution.

The Ethics Alliance has a clear function. It is a mechanism for developing collective insight and practical measures that will support its members to manage this historic transition. The Alliance will enable companies – and the leaders who work in them – to harness change for the benefit of employees, customers and shareholders alike. The ultimate beneficiary will be the society in which we all live.

We are already seeing clues as to the general shape of the coming changes. Many of these are the product of scientific and technological innovation. Artificial Intelligence and robotics (including nano-fabrication by 3D printers) will displace vast numbers of people from employment. New jobs may be created – but there are very few credible plans in place to ensure the necessary transition will be just or orderly.

The upheaval in employment will be accompanied by a revolution in medicine. Gene editing (using the ‘cut & paste’ functions of CRISPR), pharmaco-genomics, the use of stem cells to regenerate organs and a myriad of other developments will see a startling increase in the lifespan of those who can afford these therapies.

The resulting seismic shift in demography will challenge all of our assumptions about what makes for a worthwhile life, about the status of long-established social institutions, about sources of value and so on. What kind of economy will be needed to support such a society? What is the role of the market, of government, of civil society?

These questions will create new practical challenges within every workplace. If one of the key responsibilities of business leaders is to anticipate and plan for the emerging future and creating organisations which are fit for purpose, then there is much to discuss. Scientists, economists, engineers and lawyers can help us to know what we could do in response to issues of this kind. But only ethics can help us decide what we should do.

We believe business, professional and government organisations not only have a responsibility to help meet the challenges of the future – they also have the capacity to do so.

These matters are not just for governments to solve. Few, if any, organisations will be able to address such ‘civilisational’ challenges alone. Aggregating the resources, energy and insights of members of The Ethics Alliance will achieve outcomes that individual organisations could never achieve on their own.

The Ethics Alliance will also provide practical tools to its members – building their capacity to make better decisions – even in conditions of uncertainty. And it will support innovation. The Ethics Alliance has been designed as a safe place for testing the boundaries of what might be possible.

Society may have lost a little of its faith in government and business lately, and that’s something we should all be concerned about. We believe business, professional and government organisations not only have a responsibility to help meet the challenges of the future – they also have the capacity to do so.

These same organisations cannot afford to ignore these issues or mismanage their response. This is not just about managing risk. It is also about learning how to harvest the dividends of progress without compromising the future.

In that sense, The Ethics Alliance is not so much a response, as a product of the times in which we live.

This article was originally written for The Ethics Alliance. Find out more about this corporate membership program. Already a member? Log in to the membership portal for more content and tools here.


Big Thinker: Bill Mollison

Bill Mollison (1928—2016) was an Australian ecologist and the ‘father of permaculture’, a type of agricultural design and practice he created, named and taught.

Having co-wrote Permaculture One with his student and colleague David Holmgrem, Mollison later founded the Permaculture Institute of Tasmania and taught his Permaculture Design Course and Certificate (PDCC) all around the world.

Today, his philosophy has reached millions. His commitment to ethics brings philosophy back into the marketplace and onto the farm – down to its earthworms and well-tilled soil.

What is permaculture?

Permaculture is an ethical design framework for sustainable farming. It combines traditional farming methods of Indigenous and Aboriginal communities with renewable technologies and low-energy materials. Masanobu Fukuoka, a Japanese farmer and creator of “Do-nothing Farming”, is cited as another influence on Mollison’s farming philosophy.

Mollison believed that farming monocultures, like corn, or wheat, was unsustainable. Instead, he called for ‘food forests’ – a varied collection of plant and tree species that support equally as diverse animal life.

Like a delicate structure of checks and balances, the little relationships formed in such an ecosystem would keep it self-sufficient. According to Mollison, once complete, a successful permaculture design wouldn’t need any human touch at all.

What’s wrong with what we’ve got now?

Because monocultures are more efficient, fast and easy to harvest, they’ve been the go-to for industrial farming. But, according to Mollison, their future is limited, with no means to reproduce the same healthy ecosystem it profits from. In fact, it’s often expected to meet the surplus demand of nations that already have enough food.

Mollison considered this form of agriculture as unethical, self-destructive and “temporary”. Rather than people being relied on to provide yields, he wanted to make us another part of the agricultural web. No more, no less.

This, along with permaculture’s three core ethics (earth care, people care and fair share), would transform how plants, animals and humans all interact with each other. People – not just farmers – would turn into active stewards of the earth. The social and economic needs of interdependent communities would be satisfied and looked after, with global surplus distributed to those most in need.

Some people find his views noble, but unrealistic. Indeed, his repositioning of farming as political might be novel. But applying ethics to fulfil basic needs of food and shelter, to Mollison, is essential: 

“The greatest change we need to make is from consumption to production, even if on a small scale, in our own gardens. If only 10% of us can do this, there is enough for everyone. Hence the futility of revolutionaries who have no gardens, who depend on the very system they attack, and who produce words and bullets, not food and shelter.”


Big Thinkers: Thomas Beauchamp & James Childress

Thomas L Beauchamp (1939present) and James F Childress (1940present) are American philosophers, best known for their work in medical ethics. Their book Principles of Biomedical Ethics was first published in 1985, where it quickly became a must read for medical students, researchers, and academics.

Written in the wake of some horrific biomedical experiments – most notably the Tuskegee Syphilis Study, where hundreds of rural black men, their partners, and subsequent children were infected or died from treatable syphilis – Principles of Biomedical Ethics aimed to identify healthcare’s “common morality”. These are its four principles:

  1. Respect for autonomy
  2. Beneficence
  3. Non-maleficence
  4. Justice

These principles are often in tension with one another, but all healthcare workers and researchers need to factor each into their reflections on what to do in a situation.

Respect for autonomy

Philosophers usually talk about autonomy as a fact of human existence. We are responsible for what we do and ultimately any action we take is the product of our own choice. Recognising this basic freedom at the heart of humanity is a starting point for Beauchamp and Childress.

By itself, the idea human beings are free and in control of themselves isn’t especially interesting. But in a healthcare setting, where patients are often vulnerable and surrounded by experts, it is easy for a patient’s autonomous decision to be disrespected.

Beauchamp and Childress were writing at a time when the expertise of doctors meant they often took extreme measures in doing what they had decided was in the best interests of their patient. They adopted a paternalistic approach, treating their patients like uninformed children rather than autonomous, capable adults. This went as far as performing involuntary sterilisations. In one widely discussed court case in bioethics, Madrigal v Quillian, ten Latina women in the US successfully sued after doctors performed hysterectomies on them without their informed consent.

Legally speaking, the women in Madrigal v Quillian had provided consent. However, Beauchamp and Childress explain clearly why the kind of consent they provided isn’t adequate. The women – who spoke Spanish as a first language – were all being given emergency caesareans. They were asked to sign consent forms written in English which empowered doctors to do what they deemed medically necessary.

In doing so, they weren’t being given the ability to exercise their autonomy. The consent they provided was essentially meaningless.

To address this issue, Beauchamp and Childress encourage us to think about autonomy as creating both ‘negative’ and ‘positive’ duties. The negative duty influences what we must not do: “autonomous actions should not be subject to controlling constraints by others”, they write. But positively, autonomy also requires “respectful treatment in disclosing information” so people can make their own decisions.

Respecting autonomy isn’t just about waiting for someone to give you the OK. It’s about empowering their decision making so you’re confident they’re as free as possible under the circumstances.

Nonmaleficence: ‘first do no harm’

The origins of medical ethics lie in the Hippocratic Oath, which although it includes a lot of different ideas, is often condensed to ‘first do no harm’. This principle, which captures what Beauchamp and Childress mean by non-maleficence, seems sensible on one level and almost impossible to do in practice on another.

Medicine routinely involves doing things most people would consider harmful. Surgeons cut people open, doctors write prescriptions for medicines with a range of side effects, researchers give sick people experimental drugs – the list goes on. If the first thing you did in medicine was to do no harm, it’s hard to see what you might do second.

This is clearly too broad a definition of harm to be useful. Instead, Beauchamp and Childress provide some helpful nuance, suggesting in practice, ‘first do no harm’ means avoiding anything which is unnecessarily or unjustifiably harmful. All medicine has some risk. The relevant question is whether the level of harm is proportionate to the good it might achieve and whether there are other procedures that might achieve the same result without causing as much harm.

Beneficence: do as much good as you can

Some people have suggested Beauchamp and Childress’s four principles are three principles. They suggest beneficence and non-maleficence are two sides of the same coin.

Beneficence refers to acts of kindness, charity and altruism. A beneficent person does more than the bare minimum. In a medical context, this means not only ensuring you don’t treat a patient badly but ensuring you treat them well.

The applications of beneficence in healthcare are wide reaching. On an individual level, beneficence will require doctors to be compassionate, empathetic and sensitive in their ‘bedside manner’. On a larger level, beneficence can determine how a national health system approaches a problem like organ donation – making it an ‘opt out’ instead of ‘opt in’ system.

The principle of beneficence can often clash with the principle of autonomy. If a patient hasn’t consented to a procedure which could be in their best interests, what should a doctor do?

Beauchamp and Childress think autonomy can only be violated in the most extreme circumstances: when there is risk of serious and preventable harm, the benefits of a procedure outweigh the risks and the path of action empowers autonomy as much as possible whilst still administering treatment.

However, given the administration of medical procedures without consent can result in legal charges of assault or battery in Australia, there is clearly still debate around how to best balance these two principles.

Justice: distribute health resources fairly

Healthcare often operates with limited resources. As much as we would like to treat everyone, sometimes there aren’t enough beds, doctors, nurses or medications to go around. Justice is the principle that helps us determine who gets priority in these cases.

However, rather than providing their own theory, Beauchamp and Childress pointed out the various different philosophical theories of justice in circulation. They observe how resources are distributed will depend on which theory of justice a society subscribes to.

For example, a consequentialist approach to justice will distribute resources in the way that generates the best outcomes or most happiness. This might mean leaving an elderly patient with no dependents to die in order to save a parent with young children.

By contrast, they suggest someone like John Rawls would want the access to health resources to be allocated according to principles every person could agree to. This might suggest we allocate resources on the basis of who needs treatment the most, which is the way paramedics and emergency workers think when performing triage.

Beauchamp and Childress’s treatment of justice highlights one of the major criticisms of their work: it isn’t precise enough to help people decide what to do. If somebody wants to work out how to distribute resources, they might not want to be shown several theories to choose between. They want to be given a framework for answering the question. Of course when it comes to life and death decisions, there are no easy answers.


A guide to ethical gift giving (without giving to charity)

It’s easy to be frustrated by “charity giving” during the festive season. Little Billy gets a card from World Vision thanking him for support he never knew he gave. All because his sanctimonious aunt decided a new bike wasn’t particularly important.

We’d expect Billy to be pretty upset. But is objecting to “charity giving” childish or is donating on a friend’s behalf incompatible with Christmas giving altogether?

Reminding others of their ethical duties at a time of celebration is, in many ways, noble. There is also value for charity gifts as responses to the hollow commercial practices of modern Christmas traditions.

Charity giving overhauls the tradition of giving. It seeks to fulfil a social need without consideration of the putative “receiver”. As such, the moral case for charity giving isn’t black and white.

While the act might be well-intended, it is poorly executed. When we give at Christmas, presents convey a specific message – one that charity gifts miss altogether.

When we give, we create a sense of shared meaning between individuals. The gift establishes a relationship on the basis of common commitment. In the case of Christmas, the commitment is to one another. Different gifting rituals have other messages.

For instance, during Kwanzaa, members of the African diaspora give homemade gifts to encourage one another to remember their heritage. Kwanzaa emphasises the creation of a moral community in which each member is dedicated to the other. Do-it-yourself gifts foster an attitude where the focus is not on the gift itself, but the recipient.

It might seem as though the charity gift does something similar. By doing good in the name of the recipient, perhaps we foster a relationship based on social justice rather than consumption. But there is a difficulty here.

When our gift is a donation for a distant community, we’re no longer giving a gift to our friend or family member. We’re giving a gift to that distant community.

However deserving the community is, this form of giving is radically different to the form inherent to Christmas or Kwanzaa. We effectively cut the receiver out of the process and instead use the gift ceremony as a means to achieving our own moral agenda.

If charity gifts are a problem, can we give in a way that goes beyond the department store notions of giving and escapes the cycle of consumption?

Yes, but the solution doesn’t lie in what we give, but in how we give.

We can take cues from other cultures. There are entire systems of morality built around the idea of the gift. The famous sociologist Marcel Mauss wrote of gift economies in tribal cultures. He learned how members of traditional Samoan communities gain or lose standing based on their ability to give and to receive well. The exchange of property there is more about establishing relationships than obtaining any particular object or achieving any social goal.

This idea of the giving being more important than the gift isn’t foreign to Christmas traditions. The first recorded act of Christmas gifting was Queen Victoria to her children in 1850. You’d have to rack your brain to find something that the kids of imperial royalty needed. Indeed, the gifts they got were purely symbolic, gestures of goodwill.

So if you’re toying with the idea of ethical giving this Christmas, don’t line up the usual suspects. Make donations to your chosen charities in your own name, but avoid treating them as a replacement for gifting. Charity gifts don’t show others what they mean to you, they substitute the gift for some other moral end.

Give some thought instead to the received wisdom of gift cultures.

Begin by asking yourself, “what does this person mean to me?” “How best can I show them?”

If the gift is a way of sending a certain message, focus on the message. The object is just a means of communication – the message lies in the giving.

Become an artist of the gift – creative, thoughtful and mindful of the recipient – and you can give without being smarmy or sanctimonious.

Truly a modern Christmas miracle.


Measuring culture and radical transparency

The Ethics Centre is often asked whether it’s possible to “measure” or evaluate organisational culture. Executives and Directors are now alive to the considerable responsibility they bear for the workplaces they preside over – and this has led to a growing demand for robust and credible measurement tools.

Using a methodology developed over 25 years, The Ethics Centre’s Everest process is a forensic review into a company’s ethical culture. It’s based on a simple proposition: that good culture can be measured. Global research shows a healthy culture is essential to sustainable, long-term performance; it enables innovation and builds trust between staff, clients, and customers. Conversely, poor culture leads to bad decisions and an erosion of trust and credibility. The result, inevitably, is disengagement, cynicism, and loss of value.

In the face of challenging conditions, many leaders are tempted to focus their efforts on compliance to prevent ‘bad’ behaviour. But this over-reliance on regulation and surveillance can be counterproductive. Not only can it restrict growth of a positive ethical environment that enables people to innovate and act with a shared purpose and direction, it also doesn’t work. Failures persist. A strong ethical culture is critical to managing risk and building a foundation that will support long term value and performance.

We’ve employed Everest to evaluate the culture of numerous, very different, organisations.  We’ve used it on one of Australia’s “big four” banks and a leading superannuation fund. We’ve measured the culture of universities, insurance companies, and leading sports organisations including the Australian Rugby Union, Cricket Australia, and the Australian Olympic Committee.

In carrying out the process both in Australia and abroad, we look at the misalliances between what a company says it stands for, and what occurs in practice. Using this premise, we check how organisations live up to the standards they set for themselves through an audit of systems, policies, procedures, and practices. We undertake extensive qualitative and quantitative research to determine how employees and key stakeholders view the organisation. Out of this process comes a set of powerful insights into the degree of alignment between purpose and practice. We identify the gaps.

Once we’ve made sense of the current state of an organisation, we’re in a position to ask our clients some tough questions about the kind of company they’d like to be.  We present clients with a Future State Framework that maps the pathway from the present to the future – asking them to imagine the pinnacle of what’s possible for their organisation.  In doing this, we examine five domains:

Culture: The operating system through which people create meaning, purpose, and belonging.

Ecosystem: Organisations are complex, interconnected, and interdependent. They sustain, and are sustained, through relationships, mutual dependencies, and the value they bring to the whole.

Leadership: Providing the guidance, direction, and consistency that allows an organisation to respond to the challenges of uncertainty and change.

Readiness: The ability of an organisation to anticipate and respond to uncertainty. The ability to pre-empt a possible future before it arrives fully formed.

Legacy: The future’s perspective on the present. The map we leave behind for others.

The nature of Everest, particularly when coupled with the independence of The Ethics Centre, is that we can confront leaders with issues that have not previously been articulated, recognised, or challenged. And we do this in a way that lessens defensiveness and focuses on building on the goodwill contained in the existing culture of the organisation.

We’re proud that our process has provided leaders across business and government with the expertise to shine a spotlight on current practices and make choices about the culture and style of organisation they wish to cultivate in the future.

One final note: our Everest reports are delivered to our clients on the understanding that everything contained therein is strictly confidential.  What a company does with the report is entirely up to them. None had ever been made public until we worked for the Australian Olympic Committee in 2017.

Facing a media storm over their culture, the AOC took the brave step of releasing the report, in its entirety, to the public. Thanks to this act of radical transparency, we’re able to share it with you here.


Big Thinker: Mary Wollstonecraft

Mary Wollstonecraft (17591797) is best known as one of the first female public advocates for women’s rights. Sometimes known as a “proto-feminist”, her significant contributions to feminist thought were written a century before the word “feminism” was coined.

Wollstonecraft was ahead of her time, both intellectually and in the way she lived. Pursuing a writing career was unconventional for women in 18th century England and she was denounced for nearly a century after her death for having a child out of wedlock. But later, during the rise of the women’s movement, her work was rediscovered.

Wollstonecraft wrote many different kinds of texts – including philosophy, a children’s book, a fictional novel, socio-political pamphlets, travel writings, and a history of the French Revolution. Her most famous work is her essay, A Vindication of the Rights of Woman.

Pioneering modern feminism

Wollstonecraft passionately articulated the basic premise of feminism in A Vindication of the Rights of Woman – that women should have equal rights to men. Though the essay was published during the French Revolution in 1792, its core argument that women are unjustifiably rendered subordinate to men remains.

Rather than domestic violence, women in senior roles and the gender pay gap, Wollstonecraft took aim at marriage, beauty, and women’s lack of education.

The good wife: docile and pretty

At the core of Wollstonecraft’s critique was the socioeconomic necessity for marriage – “the only way women can rise in the world”. In short, she argued marriage infantilised women and made them miserable.

Wollstonecraft described women as sacrificing respect and character for far less enduring traits that would make them an attractive spouse – such as beauty, docility, and the 18th century notion of sensibility. She argued, “the minds of women are enfeebled by false refinement” and they were “so much degraded by mistaken notions of female excellence”.

Mother of feminism and victim blamer?

Some readers of A Vindication for the Rights of Woman argued Wollstonecraft was only a small step away from victim blaming. She penned plenty of lines positioning women as wilful and active contributors to their own subjugation.

In Wollstonecraft’s eye, expressions of feminine gender were “frivolous pursuits” chosen over admirable qualities that could lift the social standing of her sex and earn women respectdignity and quality relationships:

“…the civilised women of the present century, with few exceptions, are only anxious to inspire love, when they ought to cherish a nobler ambition, and by their abilities and virtues exact respect.”

While some might find Wollstonecraft was too harsh on the women she wanted to lift, her spear was very much aimed at men, “who considering females rather as women than human creatures, have been more anxious to make them alluring mistresses than rational wives”.

Grab it by the patriarchy

Like the word feminism, the word patriarchy was not available to Wollstonecraft. She nevertheless argued men were invested in maintaining a society where they held power and excluded women.

Wollstonecraft commented on men’s “physical superiority” although she did not accept social superiority should follow.

“…not content with this natural pre-eminence, men endeavour to sink us still lower, merely to render us alluring objects for a moment.”

Wollstonecraft’s hammering critique against a male dominated society suggested women were forced to be complicit. They had few work options, no property or inheritance rights, and no access to formal education. Without marriage, women were destined to poverty.

What do we want? Education!

Wollstonecraft pointed out all people regardless of sex are born with reason and are capable of learning.

In a time where it was considered racial to insist women were rational beings, Wollstonecraft raised the common societal belief that women lacked the same level of intelligence as men. Women only appeared less intelligent, Wollstonecraft argued, because they were “kept in ignorance”, housebound and denied the formal education afforded to men.

Instead of receiving a useful education, women spent years refining an appealing sexual nature. Wollstonecraft felt “strength of body and mind are sacrificed to libertine notions of beauty”. Women’s time was poorly invested.

How could women, who were responsible for raising children and maintaining the home, be good mothers, good household managers or good companions to their husbands, if they were denied education? Women’s education, Wollstonecraft contended, would benefit all of society.

Wollstonecraft suggested a free national schooling system where girls and boys were taught together. Mixed sex education, she argued, “would render mankind more virtuous, and happier” – because society and the term mankind itself would no longer exclude girls and women.


Ethics Explainer: Tolerance

For some people, the value of tolerance is simply the opposite of intolerance. But to think of tolerance in simple binary terms limits our understanding of important aspects of the concept.

We gain greater insight if we consider tolerance as the midpoint on a spectrum ranging between prohibition at one end to acceptance at the other:

Prohibition ————— Tolerance ————— Acceptance

The Ancient Greek philosopher Aristotle called this middle point of the spectrum, the golden mean. Approaching tolerance this way, makes it what philosophers call a virtue – the characteristic between two vices.

For example, Aristotle places the virtue of courage at the midpoint (or golden mean) between cowardice and recklessness. So, a courageous person has a proper appreciation of the danger to be faced but stands steadfast and resolute all the same.

Cowardice ————— Courage ————— Recklessness

Although Aristotle’s doctrine of the golden mean can help us understand tolerance, quite a bit more needs to be said. Some things deserve to be rejected and prohibited. And some things ought to be accepted.

We should neither accept or tolerate behaviour that denies the intrinsic dignity of people – for example, the defiling of synagogues by anti-Semites. Instead, we should have a general acceptance and respect for everyone’s intrinsic dignity. People should neither be rejected nor merely tolerated.

Unacceptance ≠ Prohibition

However, there are some things you might reasonably not accept, yet not want to prohibit. This is typically the case when you encounter an idea, custom or practice that is either unfamiliar or at odds with your own convictions about what makes for a good life.

For example, a vegetarian might be convinced it is wrong to eat animals. Such a person may never accept the practice as part of their own life. However, they may not want to stop others eating meat. Instead, they will tolerate other people’s consumption of animals.

This reveals an essential aspect of tolerance. Toleration is always a response to something that is disapproved of – but not to such a degree as to justify prohibition. Tolerance is, by definition, a mark of disapproval.

And so some people seek from society something more than ‘mere tolerance’. Instead, they look for acceptance.

Tolerance to acceptance

The word ‘acceptance’ rang out loud when it was revealed a majority of Australian voters answered yes to the same sex marriage postal survey in 2017. For gay and lesbian couples, the result is evidence of wide acceptance of their equality as citizens.

Individuals and communities are not only entitled to think about what should be accepted, tolerated or prohibited. We can also be obliged to consider these things.

Without wanting to confuse ethical with legal obligations, this is the difficult task of parliaments. To continue with the same sex marriage example in Australia, they were obliged to consider what behaviours should be accepted, tolerated, or prohibited in terms of wedding services and religious freedoms.

The ethics of tolerance

Ethics calls upon people to examine their lives – including the quality of their reasons when forming judgements. An ethical life is one that goes beyond unthinking custom and practice. This is why judgements about what is to be accepted, tolerated or prohibited need to be made free from the distorting effects of prejudice. Beliefs, customs and institutions should be evaluated for what they actually are – and not on the basis of assumptions about people or the world. The quality of our judgment matters.

There can be sincere disagreement among people of good will. Respect for persons – and the general acceptance this requires – can sit alongside ‘mere’ tolerance of each other’s foibles.

And that may be the best we should hope for.


Ethics Explainer: Conscience

Conscience describes two things – what a person believes is right and how a person decides what is right. More than just ‘gut instinct’, our conscience is a ‘moral muscle’.

By informing us of our values and principles, it becomes the standard we use to judge whether or not our actions are ethical.

We can call these two roles ethical awareness and ethical decision making.

Ethical Awareness

This is our ability to recognise ethical values and principles.

The medieval philosopher Thomas Aquinas believed our conscience emerged from synderesis: the ‘spark of conscience’. He literally meant the human mind’s ability to understand the world in moral terms. Conscience was the process by which a person brought the principles of synderesis into a practical situation through our decisions.

Ethical Decision Making

This is our ability to make practical decisions informed by ethical values and principles.

In his writings, Aristotle described phronesis: the goodness of practical reason. This was the ability to evaluate a situation clearly so we would know how to act virtuously under the circumstances.

A conscience which is both well formed (shaped by education and experience) and well informed (aware of facts, evidence and so on) enables us to know ourselves and our world and act accordingly.

Seeing conscience in this way is important because it teaches us ethics is not innate. By continuously working to understand our surroundings, we strengthen our moral muscle.

Conscientious Objection

In politics, much of the debate around conscience concerns the “right to conscientious objection”.

  • Should pro-life doctors be required to perform abortions or refer patients to doctors who will?
  • Must priests break the confessional seal and report sex offenders who confess to them?
  • Can pacifists be excused from conscription because of their opposition to war?

For a long time, Western nations, informed by the Catholic intellectual tradition, believed in the “primacy of conscience” – the idea that a person should never be forced to do something they believe is against their most deeply held values and principles.

In recent times, particularly in medicine, this has come to be questioned. Australian bioethicist Julian Savulescu believes doctors working in the public system should be banned from objecting to procedures because it compromises patient care.

This debate sees a clash between two worldviews – one where people’s foremost responsibility is to their own personal beliefs about what is good and right and another where this duty is balanced against the needs of the common good.

Philosopher Michael Walzer believes there are situations where you have a duty to “get your hands dirty” – even if the price is your own sense of goodness. In response, Aristotle might have said, “no person wishes to possess the world if they must first become someone else”. That is, we can’t change who we are or what we believe in for any price.

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Ethics Explainer: Progressivism

Progressivism is a political ideology based on the possibility of moral progress. In practice, this looks like an optimism about the future of humanity.

Progressives believe the course of human history is moving us closer to a state of peace, equality, and prosperity. They also tend to believe in human perfectibility. Politics, technology, and education can overcome human failings to create a utopia.

We can see this in the work of philosophers Steven Pinker and Michael Shermer. Pinker says since the Enlightenment, altruism has been on the rise and violence is declining around the world. Shermer suggests each generation has been smarter than the last, which he believes, has continually reduced impulsive violence.

Hegel’s synthesis

German philosopher Georg Wilhelm Friedrich Hegel believed moral progress was inescapable. He thought the forces of history shape humanity for the better, pushing it toward perfection.

Hegel believed history unrolled according to a “dialectical” pattern. This was where opposing sides clashed and compromised with one another. These opposing forces, which he called the “thesis” and “antithesis”, would clash before reaching a “synthesis”.

This synthesis would then spark a new antithesis and the process would continue. Hegel thought each stage in the thesis-antithesis-synthesis series moved us closer to a state of perfection. His work is said to have inspired other progressive thinkers, most notably communist philosopher Karl Marx.

The darker side of progress

Today, new forms of genetic editing promise a cure to a range of illnesses and maybe even death itself. Transhumanists believe we can overcome the limitations of our humanity and mortality. They suggest a range of options, from changing our biology to uploading our consciousness into a supercomputer.

But practical efforts to create this perfect world have not always been pleasant. At times it has been outright barbaric.

One example is the eugenics movement. It aimed to breed some people, like those with disabilities, out of society altogether, and cited social progress as their defence.

This is one reason why conservatives often urge caution around progress. They encourage us to be mindful of the potential unintended side effects of new policies or technology.

But progressives are often concerned this will inhibit life changing new developments. They suggest we deal with issues as they arise, rather than trying to predict them in advance.

Heaven on earth

Progressives often see education as the silver bullet solution for social problems. Like Ancient Greek philosopher Socrates, they tend to believe all vice is the result of ignorance, not malice. They suggest humans are fundamentally good and education will bring out the better angels of our nature.

But some are sceptical whether education alone will fix all humanity’s woes. They agree humans are mostly good but don’t blame ignorance for evil. Instead, they see war, conflict and violence as the product of oppression and inequality.

Karl Marx believed conflict between the wealthy and the working class was a central theme in human society. He believed the power imbalance between rich and poor was bad for everyone. He famously claimed people would be better throwing away hierarchies based on class and wealth. Only when we’re all equal, he thought, will we be able to perfect ourselves.

English philosopher Mary Wollstonecraft suggested the path to human perfection might require both politics and education. She argued that political change requires us to educate marginalised groups. Otherwise, any change will continue to exclude the groups already on the fringes of society.

This explains why more women and culturally diverse people have contributed to progressive thinking in recent decades. In the past, the leading progressive thinkers tended to be white men. Improved access to education has enabled a greater range of voices to contribute to the larger conversation of what a perfect world might look like and how we could create it.


In the court of public opinion, consistency matters most

If you’re like us, you spend a lot of time reading the business news. And you’re be familiar with a strange paradox: while some highly respected business leaders can be brought to their knees by one poor decision or ethical stumble, there are others that seem to get away with it time after time. In the language of the CBD, they’re Teflon-coated.

It hardly seems fair that those who have spent their career doing the right thing attract more criticism when they fail. But it seems there is nothing the public hates more than a hypocrite.

Psychologist Dr. Melissa Wheeler says hypocrisy is often considered a bigger sin than the transgression itself.

“The thing that really gets people’s attention is someone’s moral hypocrisy – when you say something, but do something very differently. Or you condemn something, but then have been found to be doing it as well”, says Wheeler, who has a PhD in moral and social psychology and is a Research Fellow in the Department of Management and Marketing at the University of Melbourne.

Cyclist Lance Armstrong is therefore judged more harshly because he was a healthy-life champion who was doping himself throughout a career, which included winning seven Tour de France events.

“The thing that really gets people’s attention is someone’s moral hypocrisy – when you say something, but do something very differently.”

Conversely, we shrug off US President Donald Trump’s Twitter diatribes and troublesome behaviour because they’re generally consistent with his career and private life over the decades.

“With Trump, I keep wondering why people aren’t more outraged and shocked at all the things that are coming out, scandal after scandal, and why are people not even batting an eye anymore”, says Wheeler.

“And I think it is because we have come to expect that from him, because it conforms with what you are expecting and it conforms with your stereotype of what he, as a politician, is.”

Surprise makes a scandal ‘stick’

Mud seems to “stick” if someone does the unexpected or flouts their own stereotype, she says.

In the corporate world, Volkswagen’s falsification of its vehicle emissions data became one of the biggest scandals of 2015. It was trading on its “green” credentials, but was lying about its performance.

Organisations cannot even expect that their good record will help insulate them from future mistakes.

“If you do anything to fall from that grace, it is going to be worse”, says Wheeler.

In fact, not only can “good-practise champions” attract more criticism when they fail, they can also draw more scrutiny in the first place, according to the managing director of the Australian Centre for Corporate Social Responsibility, Dr Leeora Black.

“Paradoxically, sometimes companies with stated good intentions are targeted [by activists] more frequently than companies without, simply because they are more likely to respond.”

Black, an advisor with a PhD in Corporate Social Responsibility, says change campaigners will target companies that already have expressed a commitment to be socially responsible. “They know they will get more traction from those companies than companies that don’t care.”

“Paradoxically, sometimes companies with stated good intentions are targeted more frequently than companies without, simply because they are more likely to respond.”

Activists target companies they can change

Public opinion and media coverage often follow the activists, which goes some way towards explaining why socially responsible companies get more flak for their ethical breaches, she says.

“Normally, without that targeting by activists, if a company is doing well and it stumbles, stakeholders are more likely to give it the benefit of the doubt.”

“Many people have spoken to me about this [phenomenon] in their companies, particularly in the early days, when they get started. Normally, companies that are further advanced in their corporate responsibility journey become more resilient and they also develop stronger relationships with stakeholders and so they are much less likely to suffer that kind of backlash when they do slip”, says Black.

“It is the companies that are newer to CSR that are more likely to get targeted and may be more concerned about it.”

However, fears of harsh judgement should not be a disincentive to hold and display high ethical standards. The business case of corporate social responsibility (CSR) is that the “benefits outweigh the troubles”, she says.

“And the troubles are short term and the benefits are long term.”

Black says the benefits of CSR are better employee attraction and retention, higher employee productivity and organisational commitment.

“For companies listed on the stock exchange, over time, their better performance will be rewarded by shareholders. There is also the opportunity for enhanced risk identification and management, enhanced innovation and improved reputation”, she says.

“But it does take consistency and persistency. You don’t just do one good thing and expect everybody to fall all over the place, gobsmacked about how wonderful your company is. That doesn’t cut it. That is the kind of thing that is more likely to be viewed as hypocrisy.

“Where there are systemic, fundamental, deep-seated commitments being made by the company that are being expressed in its culture and its strategy, then, over time, the persistence and the consistency will be rewarded and the company will become much more resilient to shocks that may happen from an occasional stumble.”

Scandal recovery depends on response

Wheeler says once a scandal has broken, an organisation’s ability to recover will depend on how it handles the aftermath and whether it uses it as an opportunity to grow.

Effective responses include taking responsibility, working around the facts of the transgression, not sweeping it under the rug and providing appropriate explanations for the wrongdoing.

“I think there is a real sincerity in that. So, it is not just like trying to weasel out of the blame.

“And then people like to see that the companies are willing to accept and serve what might be considered an equitable punishment. They want to see there is some punishment for the action and some consistent internal changes – what sort of rehabilitation are they doing?”

University of Pittsburgh researchers studied 100,000 social media tweets to see how the tenor of the public discussion changed in the weeks following Volkswagen’s emissions data scandal.

A sentiment analysis over four separate weeks showed how criticism of the company abated once Volkswagen and the regulators took action.

“Ultimately, if the company’s efforts at recovery are successful, the sentiment returns to a neutral state”

Sentiment about the brand was extremely negative immediately after the news broke, but shifted once the company started recovery efforts (such as an apology and recall) and regulatory agencies placed responsibility with the company.

“Ultimately, if the company’s efforts at recovery are successful, the sentiment returns to a neutral state”, says the study’s lead author, Vanitha Swaminathan, Thomas Marshall Professor of Marketing at the Katz Graduate School of Business at the University of Pittsburgh.

Learning from the experience

The damage to Volkswagen included a plunge in their stock price, government investigations in North America, Europe and Asia, the CEO’s resignation, the suspension of other executives, the company’s 2015 record loss, and a tab estimated at more than $US19 billion to rectify the issues, according to American economist, Boris Groysberg, in the Harvard Business Review.

There are also expected to be long term impacts on the careers of Volkswagen employees. “Our research shows that executives with scandal-tainted companies on their résumés pay a penalty on the job market, even if they clearly had nothing to do with the trouble”, says Groysberg.

“Overall, these executives are paid nearly 4 per cent less than their peers. Given that initial compensation in a job strongly affects future compensation, the difference can become truly significant over a career.

Good news for those who have slipped up is that surviving a scandal can result in a stronger operating performance in the long term – if the organisation has learned from the experience, ejected the wrongdoers and put into place measures to avoid a recurrence.

Researchers at the University of Sussex studied 80 corporate scandals and discovered that although share prices plummeted by between 6.5 and 9.5 per cent in the month after the bad headlines started, the experience could lead to improved performance in the long term. The scandals included breach of contract, bribery, conflicts of interest, fraud, price fixing and other white-collar crimes, as well as personal scandals such as a CEO having an affair, lies on CVs and harassment cases.

Dr Surendranath Jory, who led the study, said safeguards put into place to protect against further abuses seemed to allay investor fears and avoid further drops in a company’s stock price, ensuring they rebound to the levels of their rivals. “Three years on from scandals, the share price performance of firms matched those that had not been affected by scandals.

“Clearly, investors value ethics and they place a premium on it.”

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This article was originally written for The Ethics Alliance. Find out more about this corporate membership program. Already a member? Log in to the membership portal for more content and tools here.