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Business and Leadership Ethics Conference ± three

current themes

Tuomo Takala
University of JyvaÈskylaÈ, JyvaÈskylaÈ, Finland

Keywords Increasingly, accidents, malpractices, and any clear theoretical basis from which to
Ethics, Leadership, other harm caused by business are reported start. Why is this?
Postmodernism,
Competitive strategy,
by the media. Laws are not enough to control The author considers postmodern as back-
Total quality management the transactions between the company and ground for ethical orientations: the terms
society. We need also moral evaluation in ``modern'' and ``postmodern'' have become
Abstract this respect. Business and society, these two common currency in intellectual debates
Collects thoughts that emerged
systems, will be the most discussed partners concerning organizational studies. The post-
during the recent virtual confer-
ence, Business and Leadership during the coming decade. The most crucial modern is varyingly interpreted as an
Ethics. For the consumer, legisla- is how to manage this relationship. A true ``epoch'', a ``perspective'', or a new paradigm
tion often seems insufficient to of thought. To begin with, we could distin-
moral leadership is needed.
control the activities of business
This article aims to present three themes: guish ``modernity'', conceptualized as the
and business suffers as a result. A
company's ethical stance is fre- 1 postmodernism; modern age, from ``postmodernity'' as an
quently as important as more 2 competition; and epochal term to describe the period which
traditional considerations like allegedly follows modernity.
3 quality.
product, service and even pricing.
According to Cooper and Burrell (1988),
Considers three themes as a basis Are postmodern ethics good or bad things? If
for the ethical orientation of orga- modernism is ``that moment when man
nizations. Postmodernism is im-
a person has a postmodern attitude this invented himself; when he no longer saw
portant ± after all, this new question may not be relevant. We can, any- himself as a reflection of God or Nature''. The
collective consciousness is largely how, ask in which respect good or bad ethics, origins of the trajectory modernism are
responsible for the changing view
``anything suits'', is a permissive attitude traced back to the notion in the age of
of business that necessitates this
study. Despite links with older which is not bothered by rigoristic morality. enlightenment of ``reason'', which is consid-
business styles, competition can People are not condemned because of differ- ered to be the highest of human attributes.
be used to shift the ethical base, ent customs, appearance, race or complexion. Despite the opposition to systematic and
provided that the ethics of com-
The complexion is not even in network critical forms of modernism ± the one cham-
petition (as in sport) are also
considered. Total quality manage- decisive, but rather other virtues. Postmo- pioning the mechanization and the other
ment can easily be adapted ± the dern ethics has, however, the weak points seeking for emancipation in the living world
TQM fundamental of ``excellence'' typical of the relativistic attitude. If a person ± they share the commitment to an inher-
can become ``ethical excellence''.
Concludes that as business and
has this kind of an attitude he finds no more ently logical social world constituted by
society become partners a true criteria for the good and the bad. In such a reason.
moral leadership will be needed to case some charismatic figure (Hitler) starts In both positions, therefore, it can be found
make the relationship work. that the assumption is considering an
to order what is good and what bad. Faith
replaces critical scepticism and rational underlying unity that provides legitimacy
moral consideration. For its certain parts, and authoritative logic (Hassard, 1994). In its
This paper presents themes
that were originally part of the relativistic standpoint is unbearable, we most stark sense, postmodernism stands for
the Business and cannot draw from it a programme which the ``death of reason''. It has been said that we
Leadership Ethics Virtual would fulfil the principle of universatility presently live our life in a postmodern
Conference, held from society. One of the most important features of
28 June to 28 September and save people's welfare and guarantee
1998 their rights. The good is only the thing which postmodernism is that it rejects the notion
I feel to be good. This justifies strong egoism that reference is, or can be, an unequivocal
Received: June 1998 and, along with it, oppression of other people relation between forms of representation
Revised: August 1999 (words, images etc.), and an objective,
Accepted: September 1999 and even unscrupulous destruction of our
environment. Postmodern ethics cannot offer external world.
the business ethics, not at least at this stage, At the postmodern level of analysis the
Leadership & Organization
Development Journal focus is on ``the rules grounded in practices
20/7 [1999] 360±364 which precede subjectivity, which is essen-
The current issue and full text archive of this journal is available at
# MCB University Press tially the structuralist attack upon the
[ISSN 0143-7739] http://www.emerald-library.com
philosophy of consciousness. There is no real
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Tuomo Takala space for the voluntary actor as, instead, the Postmodern ethics denies the importance
Business and Leadership actor's space is found in the notion of action and relevance of great stories in the world of
Ethics Conference ± three the 1990s. It wants to be ethics of metropolis
current themes as ``play rather as agency'' (Lyotard, 1984).
Postmodern analysis succeeds in distancing where the values and action codices are
Leadership & Organization
Development Journal itself from the assumption of unity implicit determined without objective valuation
20/7 [1999] 360±364 in the enlightenment notion of reason; unlike grounds (a relative basis). Values both are
modernism, where faith is in the recovery of born and die socially. There is no objective
a relationship with nature, postmodernism measure for value, and there is no need for it.
gives rise simultaneously to increasing Freedom from the bonds restricting the
liberation from the natural world to the creativity of ego is of value, but not in the
splintering of culture into discrete spheres. traditional sense.
In postmodern thought, therefore, the ener- When thinking in a postmodern manner,
gies are released that demand reunification the ethics of metropolis, i.e. big cities, is
yet assert its impossibility. microethics. Ethical rules and norms are
The modern and postmodern can be defined through the social network of threads
defined through contrasting sets of anti- of the microlevel, by different subcultures.
nomies (Featherstone, 1988). The postmodern Any of the ``great men'' of thinking, Kant,
appears to represent a break with the Hegel, Mill etc. do not dictate with a top-down
modern, which is defined as being in contrast technique those imperatives which the post-
to it. modern group ought to follow. The ``top-down
What are those features that are consid- principle'' has been compelled to make way
ered typical of the postmodern mode of life for a horizontally forming set of principles
and thinking? Are they: which gets its power on the basis of the set's
. Multiplicity of meanings? Our social life is own functions.
seen to be loaded with multiple meanings. Speculatively thinking, we may in the
There is not only one ``right'' meaning future even talk about virtual reality, virtual
which can be given to an event or a morality. In the utmost case the ontology of
process. morality has to be scrutinized from the
. The death of great stories? Modernism is viewpoint that the moral actor is a solidly
seen to consist of many great stories constituted collective subject of the virtual
(e.g. communism in political life, enlight- reality/network. Virtual reality offers an
enment in history, abstract expressionism opportunity to an unpersonified moral sub-
in visual arts, etc. These ``-isms'' are said ject, which like Nietzsche, can demand
to be dead and buried, and in post- ``perfect freedom because God is dead''. It fits
modernism there only exist short and in perfectly with the unpersonified ``network-
fragmented narratives, local ``small self'', the Cartesian principle ``cogito, ergo
stories'' versus old superstories. sum''. A perfect solipsism comes true; as
. Fragmented reality? Our life is seen to Bishop Berkeley has stated: ``the outside
consist of many fragmented parts which world is only an idea in my mind''. The
do not have any interaction with each relativistic solipsistic ontology represents
other. In modernism these interactions the epistemological position to which also
were clear and evident, but now the whole postmodernism has committed itself.
society is non-transparent and extremely The postmodern attitude is the property of
difficult to understand. the inhabitants in metropolis, and yet, the
. Simulation? Lyotard has presented this biggest part of the world's population lives
concept of simulation rather well. outside metropolis, in the countryside, in
``. . . There are presently more genuine development countries and in other very
things and objects, everything can be primitive conditions. In those places the
produced by artificial simulation pro- postmodern attitude may not be possible but
cesses, nothing is `the real thing'''. their ethical norms are regulated by the
family, the god, the tradition etc. Postmodern
Everything is just copies, the slogan is:
business ethics is only possible in so-called
``Buy a copy, not an original''. Life in
new-technology firms where new working
virtual reality is now possible; who would
culture and customs prevail. A traditional
need ``real'' reality?
firm operates according to the same ethics as
. Living without objective values? It is not
it always has done. The personality of the
possible to set such moral norms to any
entrepreneur, the business idea, the business
person according to which he ought to act.
line, the manner in which things have always
Everything is allowed.
been handled, dictate the basis and direction
Other concepts that have been used are: of the ethics of activities.
disappearance of one's own ego, irony and no Matti Estola[1] wrote on competition in
absolute truth appears, only ``perspectives''. business and in nature . . . ``The conditions of
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Tuomo Takala survival are merely the laws of biology. . . . means another's misery; similarly, if one
Business and Leadership Ethics deals with the problem of choosing firm gets a customer, other firms will lose
Ethics Conference ± three between different kinds of life, and assumes
current themes that customer. Conversely, if an antelope
that there is real choice between different injures its leg, it has no hope against the lion.
Leadership & Organization
Development Journal kinds, or else there is no such thing as ethics'' This makes the survival game in nature
20/7 [1999] 360±364 (Knight, 1935, p. 71). In nature, those species unfair, because an injured ``player'' must
which win the survival game turn out to be take part in the game against its will. The
best in finding food and adjusting to varying business competition is not that unfair,
living conditions. The individuals within one because firms can choose the ``games'' at
species compete with each other about the whatever time they choose to take part.
leadership and about who can reproduce However, a bank may give notice of closing
their genes, which competition supports the loans to a firm at any time, and customers
best genes' continuation to the next genera- can change their suppliers at will. These
tion. We can agree that this competition phenomena show that the business competi-
keeps the species vital, although morally tion also has some crude elements.
thinking that the process is in many ways From this section we can learn two things:
crude and inhuman. Analysing animals' 1 the laws of nature controlling animal
behaviour on a moral basis is not mean- populations are similar to those control-
ingful, however. ling the number of firms as well as their
Predators eat prey, and the populations are expansion; and
connected with this relation. The greater the 2 the most effective species, firms and
prey population, the more food for predators individuals, win both these survival
which strengthens the predator population competitions in the long run.
and vice versa. In business we can think of
customers as ``prey'' and firms as ``preda- The competition in business and sport is
tors'', and their populations are connected similar in many ways. We can think of the
with this relation. A firm can survive in a firms of one industry as teams playing in the
``lack of food (customers) situation'', if it same series. The rules of sporting games are
catches its food from other areas (exports), or clearly stated, and if one team does not follow
if it can eat different types of food (expand its them, it can be ruled out of the series or
activities to other fields). In business, rich punished in some other way. The rules
and large companies buy small and less concerning the firms' competition are pre-
successful ones, which phenomena can be sented in the laws of society, and there also
legitimated on the basis of development, i.e. exist international laws which the firms
superiority in doing business. If this devel- must obey. If all teams obey the rules of the
opment decreases competition, it can raise game, they can be ranked according to their
product prices. This, however, attracts new playing against each other, and we can
firms to such industries, which hinders price consider that such a ranking is fair.
rises. The process is analogous to that where Error-correcting and motivating coaching
an increase in the prey population attracts as well as learning from other teams are
more predators to the area, which controls suitable strategies for success in sporting
the preying population. A small preying games. If one team does not hire good players
population limits the predator population, in and coaches, but other teams do, the original
the same way as a small number of customers team will not succeed. Similarly, if one firm
limits the number of existing firms. does not employ skilful workers, or does not
This example demonstrates the limiting raise to the leading positions the most
factors customers and other firms set for the qualified managers, that firm will not
success of a specific firm, in the same way as succeed. If all firms compete about customers
the existence of other animals limits the according to the existing laws, then the most
behaviour of every species and individual in effective firms will win the competition and
the nature. There thus exist similar ``laws of we can consider that the competition is fair.
nature'' in business competition to those The competition process is analogous in both
which exist in nature. cases, and it guarantees the development of
Though we cannot expect moral behaviour the players' (workers') skills, playing tools
from animals, we can still analyse the fair- (production technologies) and playing stra-
ness of competition. Although the competi- tegies (organising production). In both cases
tion of survival in nature is crude, every the co-operative skills of players (workers)
species and individual has some advantages and coaches (managers) are essential
by which they can survive in the game. The requirements for success.
advantage of an antelope against a lion is its High ethics are a general requirement in
speed, and the lion dies if it cannot catch its sport. The athletes competing in Olympic
prey for meat. In this way one's wellbeing games swear an oath about fair competition,
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Tuomo Takala obeying the existing rules. An athlete is (lower costs). The international competition
Business and Leadership considered to behave immorally if he uses between athletes (international trade of pro-
Ethics Conference ± three forbidden drugs or does not try to win the ducts) then favours the doped athletes (pol-
current themes
competition until the last moment. The last lutant firms), which makes the competition
Leadership & Organization
Development Journal requirement allows betting on the winner, unfair.
20/7 [1999] 360±364 because it rules out pre-negotiated results. We considered the ethics of business com-
Giving up in the middle of the game renders petition by comparing it to the competition in
the playing meaningless, which decreases the nature and in sport. Competition is an
winner's joy of winning the game. Competing important means of development in all these
in a sporting spirit requires that the winner three cases, although it can be crude and
can enjoy his victory, which occurs if other immoral. In sport and business the rules
players have seriously tried to win the game. (laws) can be prescribed so that immoral
In this vein we can consider that business competition becomes punishable. In nature
competition meets the requirements of high this is not possible, but we can support
morality, if all firms try to succeed in the threatened species by feeding or by other
business they are involved, and they observe means, if we consider it meaningful. With
legal methods in competition. The existing suitable rules and their effective control,
laws of societies do not, however, always competition is an effective source of
judge illegal all immoral behaviour of firms; economic development, and it meets the
firms' marketing, for instance, does not requirements of high morality.
always meet the requirements of high Competition classifies firms and indivi-
morality. If the laws of society allow firms to duals into successful and non-successful
compete by unfair methods, it is the politi- categories, which the latter group may con-
cians' task to prescribe the laws which sider unpleasant. People's goodwill is the
prohibit this. This takes place in economies moral basis for helping the non-successful
continually, in the form of new laws protect- competitors, which is an important factor in
ing workers, consumers, environment etc. keeping society safe. Social security can be
If the laws of society do not represent high financed by taxing the successful, and it is a
morality, it has serious effects on the fairness political matter to decide the exact tax rate
of the business competition. The referees in and the organising of the support. Essential
the NHL ice-hockey series, for example, allow in this is that the support does not distort the
more rough play than the European referees. competition and decrease the competitors'
This makes the administration of the games motivation for competing.
between European and North American TQM is an ethical imperative[2]. Doing the
teams difficult, and it is common for the right thing the right way the first time and
North American teams to refuse to play every time demands that several precondi-
under European referees. Playing with North tions be met. In instances where these
American referees forces the European preconditions are not completely fulfilled (in
teams to play rough, which has perhaps my opinion the majority of cases), TQM must
developed the game in the wrong direction. become a goal or strategy as well as a process.
This example shows that if the rules of a TQM preconditions include:
game allow unfair competition, every player 1 The organization must be able to define
is forced to use such methods if he wants to what is the right thing. This may involve
succeed in the game. studying customers, markets, competi-
If we consider only the ethics of competi- tors, regulators, suppliers, and stake-
tion, morally high level teams, firms and holders (including employees, creditors,
individuals should play fair. Conversely, and investors). For companies unsure of
there always exist individuals with low what the right thing is, TQM implemen-
morality, and if the means of competition are tation is secondary to planning and goal-
not controlled, the competition will favour setting activities.
these. If we want the most effective teams, 2 The organization must be able to do (and
firms and individuals to win the game, we afford to do) the right thing. This involves
have to set strict rules for the competition, the creation, implementation, mainten-
and we have to ensure that these rules are ance, and improvement of capable
followed. These rules should represent high systems and processes.
morality. An important element in this is 3 The organization must be able to do (and
that the rules (laws) are the same in every afford to do) the right thing consistently.
country. If, for instance, the doping rules The organization requires feedback, con-
(environmental laws) vary between coun- current, and feedforward control systems.
tries, those countries with less stringent Further, the organization must provide its
rules (laws) attract doped athletes (pollutant members with skill, information, and
industries) by better practising conditions support to take immediate corrective
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Tuomo Takala actions when errors or mistakes are approach to dealing with today's
Business and Leadership discovered. marketplace.
Ethics Conference ± three
current themes Implementing TQM as a strategy, goal, and
Leadership & Organization process to achieve and maintain these con-
Development Journal ditions is an ethical imperative from any of Conclusions and recommendations
20/7 [1999] 360±364
the four perspectives: Whether examined from the perspective of
1 Principle. Doing the right thing the right principle, purpose, consequence, or the
way implies a standard of excellence situation, TQM is an ethical imperative. The
external to the organization and its study of ethics and the behavior of various
members. Clearly, an organization's business, political, and religious leaders
attempts and accomplishments in this reminds us of course that knowing the right
arena are ethical. Although some views, thing to do does not always result in moral
for example the competing values and choices. Knowledge of the right thing, how-
stakeholder approaches, imply that it is ever, does allow the actor to ask the appro-
impossible fully to satisfy diverse or priate questions. Does this action coincide
conflicting definitions of the right thing, with an established, accepted principle? Are
they nonetheless suggest that those my actions well-intentioned? Is the antici-
stakeholders with the largest interest pated consequence appropriate? Does
and leverage must be satisfied to the the action fit the demands of the current
maximum possible extent. This is a situation?
Thrasymican (``might makes right'') view, Having an ethical rationale for TQM and
but it still implies a right thing or the resulting goals, strategies, and processes
principle independent of the actor. can assist organizational leaders as they
2 Purpose. Intending to do the right thing attempt to train, inform, motivate, and sup-
the right way is clearly ethical. Goal- port their employees in the pursuit of these
oriented TQM processes with the purpose goals and strategies. Comprehension of the
of defining, achieving, and maintaining ethics of principle, purpose, consequence,
the right thing the right way are ethically and the situation can help organizational
imperative. In Kantian terms, the act of members to see the need for and desirability
pursuing quality is genuinely moral when of TQM and can overcome objections to the
done out of pure respect for duty, in this implementation of the systems and processes
case to the customer and other stake- necessary to attain and sustain high quality.
holders. TQM can appeal to principle, purpose, con-
3 Consequence. The consequences ± by now sequence, and the current situation of the
well-documented in business ± of seeking organization. Therefore, adding ethical con-
to do the right thing the right way siderations to training and communication
consistently are lowered cost, increased could be beneficial in gaining managerial
value, higher customer satisfaction, and employee commitment to TQM.
increased competitiveness, and organiza-
tional and economic growth. Examined Notes
from this perspective, TQM is once again 1 Matti Estola is Senior Lecturer of Economics
a clear ethical imperative. at the University of Joensuu, Department of
4 Situationalism. This view would imply Economics, Joensuu, Finland.
that TQM could be ethical under certain 2 Larry Pace is Professor of Management at the
circumstances. Therefore, if the circum- Louisiana State University, Shreveport, USA.
stances under which TQM is ethical were
prevalent, then TQM would be an ethical References
imperative. This is precisely the case. Cooper, T. and Burrell, G. (1988), ``Modernism,
postmodernism and organizational analysis
Organizations worldwide are faced with
2: the contribution of Michel Foucault'',
intense competitive pressures, increasing
Organization Studies, Vol. 9 No. 2, pp. 221-35.
customer demands, higher stakeholder
Featherstone, M. (1988), ``Postmodern: an intro-
standards, and societal pressures to
duction'', Theory, Culture and Society, No. 5
democratize and transform the workplace. pp. 2-3.
Thus TQM is an ethical imperative from Hassard, J. (1994), ``Postmodern organizational
the relativist perspective because it pro- analysis'', Journal of Management Studies,
motes and enables organizational success Vol. 31 No. 3, pp. 304-24.
in precisely these circumstances. Further, Knight, F.H. (1935), The Ethics of Competition and
TQM becomes a source of sustainable Other Essays, Unwin Brothers Ltd, Woking.
competitive advantage. As such, TQM is Lyotard, J. (1984), The Postmodern Condition,
becoming a normative, prescriptive University of Manchester Press, Manchester.

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