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Business Ethics
Christian U. Becker
Designed cover image: Getty Images
Second edition published 2024
by Routledge
4 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN
and by Routledge
605 Third Avenue, New York, NY 10158
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2024 Christian U. Becker
The right of Christian U. Becker to be identified as author of this work
has been asserted in accordance with sections 77 and 78 of the Copyright,
Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or
utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in
any information storage or retrieval system, without permission in writing
from the publishers.
Trademark notice: Product or corporate names may be trademarks or
registered trademarks, and are used only for identification and explanation
without intent to infringe.
First edition published by Routledge 2018
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
ISBN: 978-1-032-43141-3 (hbk)
ISBN: 978-1-032-43140-6 (pbk)
ISBN: 978-1-003-36584-6 (ebk)
DOI: 10.4324/9781003365846
Typeset in Sabon
by Apex CoVantage, LLC
Access the Support Material: www.routledge.com/9781032431406
For
Elisa, Luca, and Luana
Contents
Conclusion207
Index209
Figures and tables
Figures
1.1 The instrumental perspective of business ethics 3
1.2 The philosophical perspective of business ethics 5
1.3 The levels of business ethics 7
2.1 The status of right and wrong in normative ethics 18
2.2 Applying the utilitarian method 21
2.3 Overview: methods for ethical decision-making 52
3.1 Characteristics and ethical challenges of the 21st-century economy 69
3.2 Traditional and new ethical questions about the economy 71
3.3 Traditional and new criteria for business being a positive force 72
4.1 The elements of organizational ethics 79
4.2 The four steps of the ELCA method 87
4.3 The four steps of the ESA method 99
4.4 The pillar model of corporate responsibility 102
4.5 Method for CR analysis 109
5.1 Criteria defining great leadership 146
5.2 Ten principles of ethical leadership 148
5.3 Elements of moral self-identity 155
5.4 The main ethical dilemma underlying the whistleblowing situation 168
5.5 Method for analyzing whistleblowing situations 169
6.1 The triangle of basic global business ethics 186
Tables
2.1 Utilitarian analysis of the example case: helping or not in case
of an accident 23
2.2 Utilitarian analysis of case 1: the underperforming friend 40
4.1 ELCA of a smartphone: steps I and II 89
About the author
Christian U. Becker lives with his family in Fort Collins, Colorado, USA, and is a
faculty member at the College of Business at Colorado State University. He earned
his PhD in economics from Heidelberg University (2003) and his Habilitation in
philosophy from Kaiserslautern University (2010). Christian U. Becker’s primary
research and teaching interests are in theoretical and applied ethics, the history of
economic thought, and sustainability studies. He has taught business ethics for more
than eighteen years in Germany, Canada, and the United States. Christian U. Becker
has published on ethical and economic topics in various journals, such as Archives
for Philosophy of Law and Social Philosophy; Ecological Economics; Ethical Theory
and Moral Practice; Ethics, Policy and Environment; Environmental Values; and
European Journal for the History of Economic Thought.
1 Introduction to business ethics
This book provides a systematic approach to business ethics. Based on ethical the-
ory and economic thought, the book develops tailored methods for analyzing and
addressing ethical challenges of business practice. The book addresses ethical topics
at the individual, organizational, societal, systemic, and global levels and discusses a
range of business ethics topics, such as ethical decision-making in business contexts,
professional ethics, leadership ethics, organizational ethics, corporate responsibility
strategies, whistleblowing, global business ethics, and sustainability ethics. The meth-
ods developed in this book are specifically designed to address ethical challenges of
business in the 21st century. A particular focus is on new challenges that result from
the global character and increasing complexity of modern business, as well as from
issues of sustainability.
At the center of this book are core questions of business ethics:
Various aspects of these questions are discussed in detail, and answers are provided
throughout the book. However, to introduce the topic, the remainder of this chapter
will outline some aspects of, and fundamental perspectives to, these questions.
DOI: 10.4324/9781003365846-1
2 Introduction to business ethics
are only perceived conflicts and not actual dilemmas. However, the book discusses
typical dilemmas in business contexts, such as whistleblowing, and develops tools
to analyze and address them. On the other hand, it is also important to uncover
apparent dilemmas and myths about conflicts of ethics and business. It is generally
more fruitful to first identify the potential win-win between ethics and business,
understand how ethics and business can support each other, and explore ways
to realize this win-win potential. This approach allows one to better distinguish
actual, serious areas of conflict between business and ethics, identify real dilem-
mas, and address them properly.
On a more fundamental level, though, the current economy has systemic ethical
limitations, particularly with regard to adequate ethical consideration of future gen-
erations and the environment. The book identifies and discusses such systemic ethical
shortcomings of the capitalist market economy. It argues for a reconsideration of
the ethical underpinnings of the 21st-century economy and suggests a broader ethi-
cal framework for future business. Some normative shifts can already be observed in
today’s business practice, and the capitalist market economy may be capable of an
inherent ethical reorientation to meet the ethical challenges of the Anthropocene, the
age of human dominance on Earth.
Ultimately, ethics as the field that studies the right and the good provides the refer-
ence points for normative and evaluative perspectives on business and the economy.
Ethics conceptualizes normative frameworks against which the right and the good in
business can be evaluated, guidelines for responsible business can be developed, and
business as positive force and a good economy can be defined.
For discussing the relationship between ethics and business, we will throughout
this book distinguish and apply two fundamental perspectives: the instrumental per-
spective, which considers ethics as a factor for business success, and the philosophical
perspective, which considers ethics as a framework to define good business and a good
economy. We outline the main characteristics of both perspectives in the following.
Another example for the relevance of ethics for business is the proper organiza-
tional functioning of larger corporations. The success of corporations depends on
various ethical factors, such as a sound ethical culture, ethical leadership, proper
design and implementation of rules and policies, proactive prevention of internal fric-
tions and wrongdoing, and a shared commitment of the leadership and employees to
the core values of the company. Lack of organizational ethics can result in significant
risks and harm for a business. For instance, an ethically corrupt culture, internal
frictions, and distrust can undermine successful work. Significant instances of inter-
nal wrongdoings, such as harassment cases, stealing from the company, and bribery
cases, can threaten business success and result in serious legal issues. In contrast, a
strong ethical culture promotes respect, care, fairness, and equality; empowers indi-
viduals to thrive and grow; builds teamwork and community; promotes excellence;
and, with all this, supports business success. Ethical aspects are also important for
managing the relationship of a corporation with its external framework; that is, its
stakeholders and the societies in which it operates. The downfall of Enron in 2001 or
the VW emission scandal in 2015 show that lack of ethics can do significant harm to
a company, its stakeholders, and society.
A third example of why ethics matters in business contexts is the relevance of
ethics for individual careers. Ethical principles, values, and virtues matter in profes-
sional life. Two main factors are crucial for a successful career: excellent professional
knowledge and display of professional ethics. Basic ethical principles, such as integ-
rity, reliability, and responsibility, matter for any position and career. In addition,
certain positions or professions require ethical principles that are specifically rele-
vant to them. For accountants, accuracy and objectivity are crucial; engineers have a
specific responsibility for public safety; leaders need to be responsible and fair; and
employees are expected to be reliable and trustworthy. Also, in professional life, one
4 Introduction to business ethics
can encounter various ethically difficult situations and dilemmas and may have to
make, communicate, and justify tough decisions. It is crucial to be able to clearly
identify the rationales, values, and principles that guide such decisions.
The book discusses the various functions of ethics in business systematically and
in detail and provides methods for using ethical reflection and ethical instruments in
business practice. For practical purposes, it is not only crucial to develop an ability to
understand and identify the various functions of ethics for business; it is also impor-
tant to determine how to effectively apply ethics in business contexts and decisions.
For this, the book develops various tailored methods for addressing a range of busi-
ness ethics applications.
From an instrumental perspective, it is also crucial to understand that business eth-
ics is a highly dynamic and increasingly complex challenge. Businesses are constantly
facing new ethical challenges and need to have tools to recognize and effectively
address new and shifting ethical landscapes. There are, for instance, new ethical
challenges in business that result from technological progress, such as ethical chal-
lenges of artificial intelligence, issues of security and privacy related to data storage
and analysis, or ethical challenges and risks related to social media use. Another set
of new ethical challenges for business results from the increasing globalization and
global complexity of modern business. In global contexts, businesses need to develop
the ability to reasonably interconnect different normative requirements: adherence
to their own values, principles, and rules; compliance with various legal frameworks
of the countries in which they operate; and following fundamental global principles,
such as human rights and respecting cultural differences. Current and future business
also faces fundamental systemic challenges, such as the challenge of sustainability.
Due to systemic environmental limits on a global scale, businesses increasingly must
assume responsibility for the environmental, global, and future effects of their busi-
ness operations, supply chains, and product life cycles. The ability to systematically
analyze these challenges is crucial for long-term business success and an important
aspect of strategic management.
one may wonder how these economic aspects of life fit into one’s overall life plans,
personal values, and ideas of a good life. How much does a job, or career, or being a
professional in a certain field contribute to one’s overall self-identity and individual
happiness? How important are professional success, money, and material wealth in
comparison to other ends in life, such as family, health, friends, or hobbies? What is
a good work-life balance? If someone asks these questions, they consider the relation-
ship between ethics and business from a philosophical perspective. They consider
the ethical meaning of economic and business aspects against the backdrop of more
fundamental values and goals in life.
The philosophical perspective also includes more general ethical questions about
the economy and its role in society and the world: What is a good economy? How
does (a certain design of) the economy fit into the overall values of a society and
promote the flourishing of that society? How can we define and realize business as
a positive force in the world? Such questions have always been discussed. Defining
and developing optimal forms of economy have been crucial philosophical and politi-
cal topics throughout history. There are, for instance, (ethical) reasons for having a
capitalist market economy. Proponents of capitalism have argued that this type of
economy serves individuals and society best and supports fundamental ethical prin-
ciples, such as individual freedom and equality. Capitalism is supposed to provide
opportunities to everyone, enable everyone to choose a career and pursue goals, pro-
mote fair competition, reward performance, stimulate innovation and growth, and
realize an efficient allocation of goods and services (see Chapter 3).
However, in an ever-changing world and economy, we have to reassure ourselves
that the economy is still ‘good’ with regard to traditional ethical criteria, and we
also need to discuss whether these ethical criteria are still sufficient to define a good
6 Introduction to business ethics
economy. In other words, we need to reflect on the question of what it means for
business in the 21st century to be a positive force in the world against the backdrop
of the characteristics of today’s economy and the challenges of the Anthropocene, the
age of human dominance on earth, which is characterized by a significant overuse of
the planet’s resources and sinks. One needs to carefully analyze ethical aspects of the
current economic system and consider whether the economy needs modification to
properly address new ethical challenges and normative requirements. For instance,
new ethical challenges result from the issues of sustainability. In the sustainability
perspective, the economy needs to not only be good for our current society and its
individuals but also consider future generations, nature, and people around the world.
Contemporary business thus faces new ethical challenges and needs to consider new
ethical requirements to be a positive force in the world. Such new ethical challenges
are significantly influencing today’s business practice and are broadly addressed in
crucial current business ethics approaches, such as corporate responsibility strategies
or environmental, social, and governance (ESG) (see Chapters 4 and 7). Business is an
important and powerful societal force, and it is imperative to make this force fruitful
for addressing societal challenges and for positively contributing to the future devel-
opment and flourishing of society.
This book will overall consider both the instrumental perspective and the philo-
sophical perspective outlined earlier. Ultimately, both perspectives are interconnected.
A key function of business ethics is to properly relate business to its societal contexts,
i.e., to the norms and values of stakeholders and society. With this, the internal func-
tion of ethics for business cannot be separated from the general ethical frameworks
of societies and the overall ethical expectations and reflections on business and the
economy. For an encompassing analysis of business ethics, the interrelation of both
perspectives needs to be considered.
the organizational level. Other challenges may even exceed the organizational level
and ability, and so may require concerted actions in the industry or societal and legal
solutions. However, even in such cases, individuals or organizations sometimes need
to make ethical decisions and take action by themselves, particularly in cases where
the level in charge does not, or cannot, fix the issue. With regard to more complex
ethical issues of business, a model of shared responsibilities might be the best answer
and solution. In a complex modern business world, many ethical issues are caused by
the interplay of various actors, such as companies, suppliers, customers, and regula-
tory agencies, each of which has some responsibility for an issue, and thus needs to
join together and make concerted efforts to address the issue (see Chapter 4).
Specific ethical topics require specifically tailored methods for properly analyzing
them. In this chapter, we develop a set of methods that can be applied to the analy-
sis of ethical issues in business contexts. For this, we refer to the tradition of moral
philosophy and established ethical theory and make the insights of philosophical eth-
ics fruitful for the purpose of this book. Established ethical theory can, as we will
demonstrate in this chapter, be directly used as a tool for ethical decision-making
and justification of decisions in business. The application of ethical theory to busi-
ness cases is limited, though, to certain types of cases and certain situations. In later
chapters we will further build on the ethical approaches developed in this chapter and
develop more complex methods for further types of business ethics cases.
We will start by introducing the subject matter and questions of ethics in general
and then outline the main ethical approaches of utilitarianism, Kantian ethics, and
virtue ethics.1 We discuss the application of these theories for the analysis and solu-
tion of ethical issues and for ethical decision-making in business contexts. Finally, we
will also refer to some additional, more recent ethical theories, such as ethics of care,
Rawlsian ethics, and discourse ethics, to complete our set of business ethics methods.
DOI: 10.4324/9781003365846-2
12 Ethical theory and its application to business contexts
simply because they are (economically) beneficial to us, and this can be quite alright.
However, we also make decisions and plan our lives based on norms and values. For
instance, we may reject an economically attractive action, deal, or job offer because
it is not in line with our values, looks shady, conflicts with fundamental norms, con-
tradicts what we stand for, potentially tarnishes our reputation and integrity, and so
on. Personal values are a crucial part of our self-identity. We strive for a good life
and wonder about doing right to others, specifically regarding difficult situations and
decisions. As these examples demonstrate, norms and values are crucial for society as
well as individual lives, and it is important that we properly establish them.
In many everyday situations, norms and values are actually not difficult, and we
do not even actively reflect on them. We know rather well what is right, what we are
supposed to do, and intuitively follow given norms and values. For instance, we know
that it is wrong to steal and that it is wrong to lie to our partner or parents about
serious issues; we know that we are supposed to keep commitments; we know what
is appropriate and inappropriate when interacting with others; we know that we are
not supposed to cut the line, or queue jump; we know that insider trading, bribery,
and certain types of price discrimination are wrong; and so on. There already exist a
large amount of written and unwritten norms, rules, principles, and values that guide
one’s actions.
Where do these norms and values come from, and how do we come to know them?
In modern, diverse, and dynamic societies like the United States, there are various
sources that provide such knowledge, and their influence on individual persons dif-
fers to some extent depending on personal and societal circumstances. An individual
learns many norms and values by socialization: from parents, friends, and school.
Through socialization, we learn what is right and wrong and apply it automatically
without explicit reflection. For instance, we do not need to reflect on the question: Is
it right or wrong to cut the line? We automatically do not cut the line – it is common
knowledge in our society. Another important source is the law. Many things we will
or won’t do because we know that there is a rule or a law that tells us what is right or
wrong. For instance, we do not need to make our own decision about the appropriate
speed on a specific road – a sign tells us the speed limit. In many cases, authorities are
crucial. Parents, teachers, and various other authorities provide us with norms and
values, either by formulating explicit rules or by being role models. Traditionally,
religion also has played a crucial role in establishing norms and values for individuals,
groups, or even entire societies.
2.1.1 Sources of everyday values and norms, and the function of ethics
There is an important difference between having values, knowing norms, getting them
from some of the sources discussed earlier, and acting according to them, on the
one hand, and explicitly thinking about values and norms by oneself or explicitly
discussing them with others, on the other. One can receive norms and values from
authorities, rules, religion, or custom and accept them as guidance for what is right
and wrong, or one can reflect on what is right and wrong and ask for reasons and
justification for norms and values. The latter, the explicit reflection on norms and val-
ues, is traditionally called ethics. The former, having values and norms, is sometimes
called morality to distinguish it from ethics.
Ethical theory and its application to business contexts 13
Ethics thus refers to another source from which every person can get norms and
values: human reason. In contrast to all other sources mentioned earlier, reason is an
internal reference point everyone can refer to, not an external one. Ethics assumes
that humans are beings endowed with reason who can ask themselves what is right
and wrong and make judgments about right and wrong actions. In other words, ethics
assumes that one does not need to be religious to be ethical, and one does not need
any authority telling one what to do in order to act ethically, but everyone has the
potential to be an ethical person just by virtue of one’s rational potential to reflect
on the question of right and wrong and to exchange rational arguments with others.2
Why do we need ethics? Why is reflecting on, and rational argumentation about,
norms and values important? What is the relevance and function of ethics if we already
have established external sources that tell us what is right and wrong, such as parents,
school, authorities, laws, rules, or religion? Against the background of the various
external sources of norms and values, ethics has a crucial function for every individual
person and for society. Ethics is the ultimate reference point and justification for right
and wrong actions as well as for institutions that establish and oversee societal norms
and values. Ethics is important because the sources mentioned previously cannot give
us complete and secure normative guidance for every situation. Ethics is the basic tool
for normative guidance that we have as human beings. In the following, I give some
examples to support this claim.
First, all external sources of norms and values discussed earlier are substantially
underspecified. They do not always provide complete, reliable ethical guidance. It
is possible that an authority issues unethical orders. Think, for instance, about evil
dictators. Additionally, no one can and should expect that authorities provide guid-
ance for every single decision and action. For instance, asking a supervisor for advice
for every small action would probably not be very well received. We expect in most
jobs, and particularly from well-trained professionals, that individuals have the abil-
ity to make their own judgments and decisions, at least to some extent. The law also
does not provide complete ethical guidance. Law and ethics are not equivalent. Not
all ethical aspects of life are ruled by laws, and not all laws are automatically ethical.
There is, for instance, no law that forbids lying to one’s partner or parents (except
contractual and similar contexts) about a serious matter. However, in most cases, one
would consider private lies as unethical, although they are technically legal. It is also
possible that a law is unethical. In extreme cases, it can even be the ethical right thing
to act against the law. For instance, in Nazi Germany there were laws that discrimi-
nated against Jews and led to their persecution and, ultimately, to the Holocaust. No
one would seriously claim that it was ethical to follow these laws, but rather that it
was ethical to resist them. Another example is actions during the civil rights move-
ment against some laws in the United States; for instance, when Rosa Parks broke the
law and freely chose a seat on the bus. The intention here was to protest against an
unethical law. Modern businesses increasingly operate globally and may connect to
areas in the world that show substantial lack of law or law enforcement. In such cases,
businesses need to decide for themselves what is the right thing to do and what actions
they should refrain from. Lack of law or loopholes in legal frameworks do not imply
that actions are ethically permissible. For instance, lacking laws against child labor or
forced labor in some areas in the world would not automatically imply that it is ethi-
cally OK for a business to employ children or use forced labor in this area.
14 Ethical theory and its application to business contexts
Custom and etiquette are also not sufficient guidance for what is ethically right and
wrong. Generally, custom and etiquette are not so much about fundamental ethical
guidance, but rather about politeness and smooth societal interactions. In some cases,
customs and etiquette can become ethically relevant, though. Violation of custom and
etiquette could be ethical in certain situations. This would be the case if the etiquette
expresses and reinforces questionable norms. Think about, for instance, gender pat-
terns reinforced by fashion etiquette in the 19th and early 20th centuries. Acting
against such etiquette can be a form of ethically legitimate public protest against gen-
der patterns. Other serious ethical reasons may also override custom and etiquette,
even if we generally approve them. For instance, cutting the line is considered to be
wrong. Like many customs, the custom of lining up has an underlying reason that
supports and justifies it: lining up makes societal interaction smooth and avoids cha-
otic and potentially dangerous situations. However, there may be circumstances that
justify cutting the line as an ethically right action. Imagine a physician who needs to
get to an urgent surgery and is facing an unexpectedly long line at the rental car desk
after arriving at the airport. It may be justifiable in this case for the physician to cut
the line, and one may expect others to agree that this is the ethically right action. On
the other hand, however, it can be unethical to ignore customs, e.g., if someone visits
another culture and deliberately ignores customs and, by doing so, offends people
unnecessarily. This could be considered disrespectful.
A second reason why reflection on, and rational argumentation about, norms and
values is crucial is the occurrence of conflicts and dilemmas. The various sources
that provide us with norms and values can sometimes contradict each other. In such
a conflicted situation, a person needs to ethically reflect and make a personal deci-
sion about what the right thing to do is. Other common types of conflict arise from
conflicting values or norms themselves. It is not always the case that all our personal
norms and values are in accordance with each other and give clear advice about the
right thing to do in each situation. It can happen that we have, for instance, duties,
obligations, or responsibilities to various persons, which we cannot all satisfy at the
same time. We may have professional duties, duties to friends, family members, our
community, and so on. We can come into situations in which we face a serious con-
flict between those. For instance, if you work in a human resources department and
have confidential knowledge that a very good friend is going to get fired and you
also know that he is just about to make a long-term investment buying a new home,
should you tell that friend or not? Should you override your professional duty of
confidentiality by the virtue of friendship? Such a situation, in which one is stuck
between conflicting values, norms, or principles, is called an ethical dilemma (see also
Section 5.5). In such cases, we need to ethically reflect on our entire set of values,
norms, and principles – on our various duties, obligations, and responsibilities – and
make a decision about their hierarchical order: What norm or value has priority and
overrides others in such a conflict?
A third reason for the importance of ethical considerations is novelty and change.
We live in a highly dynamic world that is changing quickly and producing new situ-
ations and ethical challenges that no rules, laws, or etiquette has thus far anticipated.
For instance, new technologies in medicine and information technology and the emer-
gence of social media have all resulted in new types or options for action and in new
ethical challenges and questions of what is right and wrong. Increasing dynamics and
Ethical theory and its application to business contexts 15
change is one reason why ethical reflection today is more important and more chal-
lenging than in previous times.
Overall, ethical reflection is crucial to guide our actions, and it is becoming
increasingly important for all the reasons discussed earlier, and particularly for mod-
ern businesses. Ethical challenges in business have become more complex due to the
increasing dynamic, global complexity and sustainability challenges of today’s busi-
ness world, and the ability to address ethical challenges is crucial for successfully
managing modern businesses. Ethics is crucial for ensuring the normative foundation
of organizations and institutions; ethics is crucial for making decisions in cases of
conflicts and dilemmas; and ethics is crucial for making decisions when facing new
situations or situations that lack ethical guidance. In all these cases, one needs to have
the ability to reflect on the question of what would be the right thing to do and to
make and justify a decision.
It is also important to develop the ability to properly judge whether ethical reflec-
tion is necessary in a situation. It may not be fruitful to start a fundamental ethical
discussion about each small issue. This can unnecessarily undermine efficiency and
effective action. On the other hand, it can be dangerous to not recognize the need
for ethical reflection in serious situations. For instance, it would be dangerous if the
traveling physician whose patient’s life is at stake lacks the ability of ethical decision-
making and just lines up at the rental car desk as usual, instead of cutting the line
claiming an emergency. It is an important ability and exercise to ask from time to
time, particularly in crucial situations: Is what I do (still) in line with who I want
to be? Is the action in line with my personal values and fundamental ethical princi-
ples? Pressures can be high in business contexts, and forces can pull people in various
directions. It is important to have and maintain an inner moral compass to guide
one’s actions. Ideally, businesses and organizations offer positive challenges and ethi-
cal guidance themselves, e.g., by organizational shared values and ethical leadership.
Such positive forces can support individual members’ professional, personal, and
moral development. However, one has to be aware that this is not always the case and
be prepared to recognize, and potentially resist, negative and ethically unacceptable
pressures in one’s professional career.
Definition 2.1: Ethics is the systematic reflection on values and norms: their con-
tent and changes and their meaning, justification, and determination.
Generally, there are different ways of reflecting on values and norms. First, one can
identify, analyze, and explain norms or values in a given society or group. I call this
empirical ethics. Questions of interest in empirical ethics are: What values and norms
exist in a specific group? What function do they have for the interaction within the
group? Where do the norms and values come from and how are they established?
How do the norms and values change over time? Such questions concern empirical
16 Ethical theory and its application to business contexts
subject matter and are studied in the (social) sciences, such as psychology, sociology,
and anthropology. Empirical studies of norms and values have been of increasing
interest in the business context. It is of interest to understand which norms and values
have what functions in what areas of business. For instance, which types of behav-
ior, strategic action, or bluffing are typically accepted in business negotiations and
which are not? What is respected as toughness in negotiations, and what would be
considered rough, aggressive, and inappropriate? Somewhat differently, what ethical
qualities do employees expect from leaders? Would certain ethical qualities make
employees more trusting and apt to follow? The analysis of such questions is of direct
practical relevance for business, and it can help to optimize the functions of ethical
elements in business contexts.
However, such analyses are not at the core of traditional philosophical ethics, as
they do not actually deal with and answer normative questions like: What is the right
thing to do? What is right in action and life? What is good character or a good per-
son? What kind of person should I become? These are all classical questions in moral
philosophy. Traditional philosophical ethics aims to analyze and answer such ques-
tions, and we will call this way of reflecting on norms and values normative ethics.
The following example illustrates the difference between empirical and normative
ethics. A mafia organization may be quite successful in achieving its goals. One might
want to study what role values and norms have in the operations and success of this
organization. One may figure out that specific, strictly enforced norms, such as con-
fidentiality and absolute obedience, are crucial for the mafia organization’s success,
and some character traits, such as brutality and recklessness, are highly evaluated and
admired among its members. One can also study how these norms are implemented
and enforced in the organization: possibly by pressure, intimidation, and force.
Through empirical ethical studies, one can get a pretty good understanding of what
norms and values exist in this organization, what function they have, and how they
are implemented. However, what is not addressed is the simple but important ques-
tion of whether the mafia is a good organization at all, or whether the mafia’s values
and norms are good and its actions are right. These are normative questions which
cannot be analyzed by the methods of social sciences but require specific methods
from normative ethics. We will explore these in detail in the remainder of this chapter.
A third field of ethical analysis is analytical ethics, which has been a larger field of
study in 20th-century philosophy, particularly in the United States. Analytical ethics
is engaged in the systematic reasoning about the use and meaning of evaluative and
normative concepts. It engages in questions such as: What is the meaning of the con-
cept good? How is this concept used, and how is it related to other concepts? There
is no well-established field of analytical business ethics, but questions of analytical
ethics certainly matter for business ethics. Many concepts in business, and specifically
economic concepts, are value-laden or have some normative or evaluative conno-
tation. For instance, profit is not a mere technical term defined by revenue minus
costs. In business, profit has a normative connotation: usually, profit is considered
to be good and one is supposed to strive for profit maximization. However, profit
is not an ultimate norm or value, and there might be ethical considerations to forgo
profit, e.g., if generating profit involves harmful or criminal activities. Identifying the
normative dimension of concepts and statements is a prerequisite for proper ethical
analysis. In practical contexts, normative and factual statements are often mixed,
which can mislead decision-making and discussions. For clarity of ethical reflection of
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Ten days later, as Anna Evauovna walked through the village, she
stopped at the door of the isba belonging to Ivan’s parents. There in
the doorway sat Grusha, the bride, peeling potatoes for the evening
meal, as unmoved and uninterested as if she had been peeling
potatoes in Ivan’s doorway for years. She had gone from one isba to
another: She had peeled her father’s potatoes, and now peeled
Ivan’s—that was all.
“Good luck to you, Grusha,” said Anna Evauovna. “But I suppose
you think you have luck by the forelock, as Ivan was faithful to you in
all that time.”
“Yes,” answered Grusha indifferently, splashing a potato in the
bowl of water.
“You have all you waited for—if I may say so and bring no ill-luck.”
“I have everything,” Grusha replied without enthusiasm.
Anna Evauovna looked at the girl’s stolid face, and laughed aloud.
“But you have lost one thing that you can not get back, Grusha.
You can never again wonder if Ivan is going to be faithful. An
unsatisfied wish is a fine thing to have, my child.”
She walked off still laughing, leaving Grusha puzzled and vexed.
At the corner the old woman met the bridegroom and gave him
greeting also.
“What a man you are, Ivan, to keep a girl faithful to you in all those
months. Were you not surprised at finding Grusha unmarried?”
Ivan scratched his head meditatively.
“I was surprised,” he said finally.
“And grateful?” asked Anna Evauovna.
“And grateful,” repeated Ivan, slowly.
“What would you have done if you had found her married?”
“Heaven bless me! If she had not waited, I could have found
another.”
Anna Evauovna nodded.
“They grow thickly, these women, but now you can settle down
quietly after your wanderings, Ivan.”
Ivan turned his cap round on his hand, and shook his head.
“Wandering is not bad, Anna Evauovna. One sees men and
women then. A man does not care so much to live in one place after
he sees the world. But we shall get on nicely, I suppose.”
Anna Evauovna walked on, her wrinkled old face all puckered with
laughter.
“That is what comes of what one waits and wearies for,” she said
to herself.
As she passed the hedge, behind which she had watched Ivan’s
home-coming, she heard two voices on the other side, and paused
to listen. A man and a woman were talking earnestly together.
“But you know it was you I always loved, Masha,” said the deeper
tones. It was Alioscha speaking.
Anna Evauovna went on her way, bending double with laughter.
She did not need to hear the answer Masha gave—for she knew all
things, did Anna Evauovna.
THE END
“Death and Love.”
The garden had been overgrown these three years. As the house
was tenantless nothing was ever trimmed or cut and the paths
skinned over with the green of intrusive weeds. The shrubs
expanded into masses of high dense leafage, the roses had run into
long stems that covered the walls or wound under the tall wavy
grass, the annuals had seeded themselves till they mingled in every
bed, and the whole was a delightful wilderness, more flowery than
any wood and more woodland than any garden. Milly and Jack
regarded the place as their own special domain. The house
belonged to Milly’s father and they were left to enjoy the garden
unwatched and undisturbed. Because their fathers were partners in
business they had made up their minds to marry when they grew up
and they announced their intention with the preternatural
seriousness of a boy of five and a girl of three. As they were really
fond of each other they never wearied of being together and as a
part of their precocious program they cared nothing for other
playmates. The garden was theirs and they were each others’ and
they lived in a community where children were little overseen or
tended. So they spent day after day in games of their own invention,
with no companion except a black kitten. Milly, who was proud of her
French, had named it Channoah and would have been deeply
grieved if anyone had insinuated that her pronunciation was far from
Parisian. Channoah was able to do without his mother when they
first began their games in the spring and was still a kittenish cat
when the autumn merged into winter. He entered into their sports
with almost a human interest and those long happy summer days
made a background for both the boy and the girl, which loomed up
behind all their future memories and where there were endless
pictures of each other, in long processions, punctuated and divided
by various postures and contortions of a coal-black kitten. As they
grew older and their companionship continued they had passwords
all for themselves and jokes that no one else entered into, all full of
allusions to the same pet.
II.
It was a rather awkward boy who came home from college for his
summer vacation. He had not seen his native place since the
autumn before, and the letters which had told him he must remain at
college, and which had disclosed most tenderly the fall in the family’s
fortunes had been worded so carefully that he had not realized the
full force of what had happened and had chafed at his exile as if it
were not inevitable. The first sight he had of his mother waiting on
the platform brought it all home to him. Her dress told more than any
words could have conveyed. He made a brave effort to be bright and
took care not to stare round him at the ugly walls of the cramped and
unfamiliar house, nor to look too curiously at the furnishings. The
gaps in the old belongings struck a chill to his heart, but he chattered
away about the college life to which he was to return, and over their
painfully frugal supper all were as cheery as old. The talk was a trifle
nervous and there was an anxiety to let no pause occur, but nothing
marred the warm greeting which had been made ready for him and
the meal ended naturally. The afternoon of talk had exhausted most
of what the greeters and the greeted had to ask and answer and
after they left the table the boy slipped into the entry and was hunting
for his cap among a litter of coats and capes, with a sick longing for
the old hall-piece and a strong distaste for the plain little walnut hat-
tree. The mother slipped out after him, shut the door noiselessly
behind her and asked:
“Where are you going, dear?”
“To see Milly, of course,” the boy answered.
“Has she written to you lately?” his mother queried.
“We haven’t written to each other at all,” he said. “I hate to write
letters, and it would make so much less for us to tell each other
afterwards.”
“You mustn’t go there, Jack,” she said, putting her hand lightly on
his shoulder with a caressing gesture.
“Why not?” he asked hotly, the blood rushing to his face.
“You know they have nothing to do with us any more, dear, since
your father and Mr. Wareham quarrelled.”
“I didn’t know it. You haven’t told me anything about what has
happened. And even if they have nothing to do with us, that wouldn’t
make any difference between Milly and me.”
“Isn’t it natural she should come to feel as her father and brother
feel?” the mother suggested tremulously.
“You mean she wouldn’t see me if I went,” he demanded, and he
was growing vexed and defiant.
“I did not mean that, dear. But her father might not allow her to see
you, and Albert always disliked you. And now they all hate all of us.”
“Why should they hate us? What have we done to them?”
“It was that selfish man ruined your father and people always hate
those they have wronged. Please don’t go, Jack.”
The boy twisted his cap in his hands and forced back his tears. He
was silent a moment and then he kissed his mother.
“It’s all right, mother dear,” he said, “I’ll go somewhere else. Thank
you for warning me.”
He went out into the dark. It was to the old garden that he walked.
The house was lit up and through the iron gate he saw trimmed and
unfamiliar shapes of shrubberies. He leaned against the bricks of the
gate-post and hated it all.
III.
A very lanky and gawky lad was waiting in the railway station at
the junction. He was loose-jointed and ill at ease in any position. His
clothes were mean and old and badly kept. His face was sad. For
some time now he had been waiting and he had hours of waiting
before him. He had looked over and over at everything in sight. Then
a train came up and a party of smartly dressed and handsome young
men and women entered. The lad’s face flamed. Jack had not seen
Milly for years. His father and mother were dead. He had to work at
hard and uncongenial things to make his living. He had as yet no
self-confidence and while he saw dimly a hope of better prospects,
neither to himself nor to his employers was anything apparent that
made his lot easier. Milly was a very lovely girl now. She was
perfectly dressed and the centre of a merry party. The boy watched
her hungrily, but she never glanced toward him. Her friends amused
themselves in various ways, but it seemed to the onlooker that Milly
was the soul of each diversion. After a while she took out a pair of
scissors and began cutting out figures from paper. Jack recalled with
a fresh pang the hours he and she had spent so. She had a
newspaper and cut out large and small shapes, of men and women,
of animals and other more difficult subjects, all with so neat an eye
for form and so keen an appreciation of what was striking that her
audience were carried away with admiration and delight, and one or
two who had never seen her do it before were amazed beyond any
powers of expression which they possessed. Their train came before
Jack’s and they rose, bustling, to go out. Milly’s dark scornful-browed
brother was with her and had stared at Jack sarcastically. Milly had
shown no sign of seeing him. The paper she had was full of big
advertisements and one sheet bore only six words on a side, in
broad black letters. Just as she stood up she cut out something,
while the rest were gathering up their belongings, and held it under
her thumb against a gaudily covered novel she carried in her left
hand. As she passed Jack she did not look at him, but he saw the
thumb of her glove move and a silhouette of an inky black kitten
fluttered down upon his knee. He took it up and stared at it. Then he
saw her look back at him from the door.
IV.
The german was a very dazzling and magnificent affair. The hall
was large and beautiful, splendidly lighted and most lavishly
decorated. The gathering was of people who were well satisfied with
themselves and had every reason to be so. John Henderson was as
well satisfied with himself as any man in the room. It gave him keen
pleasure to be in that set and to know that he had won his way into
it. His life was now one made delightful by every luxury and by the
constant sensation of success. Money came to him faster than he
had any use for it and friends gave him the most flattering evidences
that he was valued and liked. He was a tall strong young man, well-
knit and lithe. His clothes became him and he danced perfectly. He
was not merely among these courtly people, but welcome there. His
partner’s name had a decidedly patrician sound. And she was as
handsome as any girl in the room, he said to himself, save one. For
opposite him sat Miss Millicent Wareham. Her beauty was at its best
in her yellow satin ball-dress, and she looked proud and elate. He
had encountered her often recently, and they had been more than
once presented to each other, but had exchanged no words save the
formal acknowledgement of an introduction. He could not make out
whether she disliked him or merely reflected her brother’s manifest
antagonism. He took care not to look at her openly, but he glanced
toward her furtively very often. Toward the end of the dancing she
saw him approach her. Her face set and she looked at him full in the
eyes without any sign of expression as he asked her to dance with
him. But just when he uttered the last words of his slowly spoken
invitation he opened his hand and she saw the favor he was offering
her. It was a tiny kitten of black chenille made on wire, with minute
yellow beads for eyes. She blushed and smiled at the same time as
soon as she caught sight of it, rose graciously and they whirled away
together. Neither spoke at all and their separation came almost
immediately. Yet he felt more elated by that fragment of a dance than
by all the compliments of word and look he had had that evening
from men and women alike. She smiled at him again as she seated
herself and his heart leapt. He saw her as she was leaving, her wrap
open still and a bit of black on her yellow corsage.
V.
It was a dirty little square by the harborside, thronged with
boatmen, sailors of all nations ashore for a day’s outing, picturesque
cigarette-smoking loafers, fruit-sellers, negroes, uniformed police
and open-shirted porters. The shops facing it were dingy, the stones
of the quay awry in places, and the filth was more than is usual even
in Rio de Janeiro. Tawdry like every populous quarter there, it had
yet that pictorial air which all semi-tropical scenes, however much
defaced by man, never quite lose. To a stranger its most salient
feature was the clutter of six-sided, gaily-hued kiosques, which are
scattered all through the streets of Rio, many decorated with flags
and each selling lottery tickets, whatever else it might have for sale.
By one, which dispensed coffee in steaming cups and cognac in tiny
thin-stemmed glasses, stood an American talking to a Portuguese.
The noticeable thing about the Brazilian was that he was usual and
commonplace in every way. There was nothing in his form, features
or dress which could possibly have served to remember him by. One
might have conned him for an hour and after he was out of sight it
would have been impossible to recall anything by which to describe
him so as to distinguish him from any one of hundreds in the crowds
of the capital. Not even his age could have been specified or
approximated to. He was deliberate in his movements, watched his
environment without appearing to do so and attracted no attention.
Now he sipped his brandy while his interlocutor drank coffee, and the
two talked in subdued tones. Discussing a purchase of ship stores,
one would say.
A boatman in a suit of soiled white duck was loitering near, looking
over the harbor. He sidled up to the American and cut in between
speech and reply, in a deprecating voice:
“You wan’ Macedo see you talkin’ at Guimaraens, senhor
Hen’son?”
“Where’s Macedo?” the other demanded.
The boatman pointed and the two men followed his hand. A boat
was approaching across the sparkling water, and they saw the
peculiar stroke of the navy and police-boats, in which the men pull
and then rest so long with their oars poised that they seem
hypnotized in mid-stroke and a novice expects them to stay so
forever.
“There Macedo now, comin’ from Nictheroy,” said the fellow
meaningly.
“What do you want me to do, Joao?” the American asked.
“Oh, Guimaraens he wait anywhere, come back when Macedo
gone. You get in my boat, I row you roun’ pas’ those docks. Then
Macedo won’ see you ’tall.”
The Portuguese disappeared softly into the crowd. The boat
unobtrusively threaded the swarm of small craft, whipped behind a
lighter, doubled the nose of the nearest pier, and drifted
imperceptibly on while Joao reconnoitred.
“I guess we get behin’ that Lamport and Holt lighter. I don’ know
wha’ Macedo goin’ to do.”
They scraped along past the spiles of the wharf and then
dexterous strokes of the stubby oars kept them practically
motionless under the wharf’s planking, close to one spile.
“What on earth is that?” the passenger queried, and put out his
hand to the post. He grasped a watersoaked kitten, clinging
desperately to the slippery wood, and too exhausted to mew.
“A cat!” the American ejaculated. “I didn’t know you had cats in this
country. The city is knee-deep in dogs, but I haven’t seen a cat since
I came.”
“I guess he fall overboard from that Englis’ bark, what jus’ tow out,”
Joao said serenely. “That captain he got his wife too, an’ I see some
little cat along the children.”
The kitten was coal black, not a white hair on it, and very wet.
Henderson dried it with a handkerchief and warmed it inside of his
jacket. Presently Joao said:
“Macedo’s boat gone roun’ Sacco d’Alferes. I don’ see Macedo.
You bett’ not go back.”
“Go round to the Red Steps, then,” came the indulgent answer.
They rowed past the ends of the long piers, all black with shouting
men in long lines, each with a sack of coffee on his head, or hurrying
back for another. Then they bumped through a pack of boats of all
kinds and Henderson stepped out upon the worn and mortarless
stones. Joao nodded and was off without any exchange of money.
The morning was a very beautiful one and this was the landing most
frequented always. At the top of the steps John paused in a whirl of
feelings. Before him stood Millicent Wareham in a very pretty
yachting suit, and she was accompanied only by her maid. She was
looking alternately back toward the custom-house and out over the
bay. Secure in the fellow-feeling of exiles for each other he stepped
up and greeted her. She looked startled but a moment and then her
face lit with an expression of real pleasure and she held out her
hand. They had not had a real conversation since childhood and yet
she began as if she had seen him yesterday:
“I am so surprised. I had no idea you were here. We came only
last week. That is our yacht out there. When did you come?”
John looked once only at the yacht, but keenly enough never to
mistake it afterwards, and answered:
“I have been here a long time. I am on business, not pleasure.”
“We may be here some time, too. I like this part of the world and
we mean to go all round South America.”
John wondered who “we” might be. He knew her father was dead
and he had heard of the breaking off of her betrothal to a titled
European. It was her brother she was with, likely enough, but he
hoped it might be some party of friends instead.
“You’ll like it all if you like this,” he answered. “But I certainly am
astonished to see you. Few Americans come here as you have. And
the odd thing is that I was just thinking of you, too.”
She looked at him with an expression he remembered well from
her girlhood, and smiled banteringly:
“You mustn’t say that. You know you don’t really mean it. You are
just being complimentary.”
“I have documentary proof right here,” he laughed, sliding his hand
inside of his coat. The kitten was dry and warm now and it mewed
hungrily.
“The dear little thing,” she exclaimed. “Give it to me, won’t you?”
“Indeed I will,” he said fervently. “I am glad to find so safe a
harborage for it. And ten times glad that I had the luck to find it just in
time to give it to you.”
She beamed at him, fondling the wriggling little beast.
“I am going to call it Channoah,” she said, mimicking her childish
pronunciation archly. The maid standing by, and the moving crowd all
about, they stood chatting some minutes. The sunrays danced on
the little waves of the harbor, the soft August weather of the sub-
tropical winter of the southern hemisphere was clear and bright, the
yellow walls of the custom house, of its warehouses, of the arsenal
and military school and the army hospital, strung out along the
water-front, with the bushy-headed leaning rough-trunked palms
between and the red tiled roofs above made a fine background.
Beyond and above the round bulging green Cariocas rose hill behind
hill, topped and dominated by the sharpened camel’s hump of
Corcovado. From one of the islands a bugle call blew. The throng
hummed in many tongues. Then John asked:
“And may I hope to see you again before you leave?”
Her expression changed entirely, her face fell and she looked
confused. She said:
“I am afraid not. I quite forgot everything in my pleasure at seeing
a fellow-countryman and an old playmate. I could not deny myself
the indulgence of greeting you and then I quite lost myself, it was so
natural to be with you. But Bertie may be back any minute and it
would never do for him to know I have been talking to you. Please go
now.”
Her manner was constrained and her air was resuming that
distance and hauteur which he was used to seeing in her.
“Goodbye,” she said, “and thank you for the kitten.”
John walked quickly to the coffee exchange and from out of the
crowd that filled it he had the satisfaction of seeing Albert Wareham
pass and of knowing that he did not notice him and could not
suspect that Milly had seen him. It was something to have even that
secret between himself and Milly.
VI.
During the years following his abrupt departure from Rio
Henderson flitted about the Southern Hemisphere. He was in
Australia, in South Africa, and on many islands, but most of his time
was spent in South America, on one side or other of the Andes. In
his last venture he saw the face of death near and ugly and felt that
he had lost some of his nerve afterward. Likewise, as he himself
expressed it, he had made his pile. So he resolved to run no more
risks, but to return to his native land and settle down to enjoy his
gains. Like many another wanderer he fancied he would like to buy
the house in which he had been a happy child and he was not sure
but he would find his native town a permanent bourne.
He noticed the change in grade of the railroad as his train steamed
in. It entered the city now over a viaduct which cleared the streets on
trestles and crossed the main thoroughfare on a fine stone arch.
Under that arch he passed in the hotel omnibus. Just beyond it he
noticed a shop with cages of birds, stuffed animals and a pretty little
black kitten just inside the plate glass of the front. He noted the
number and meant to return later after he had had his supper.
A square or so farther on he saw pass him a handsome open
carriage. His heart stood still at sight of the figure in it. Milly saw him
and returned his bow with a cordial smile. She was still beautiful,
with a full-grown woman’s best charms. Very haughty she looked
too, as became the heir of the Wareham fortune. Henderson had
heard of her brother’s death sometime before.
About sunset John entered the animal-seller’s shop. The kitten
was gone. Could not say when it had been sold. Could not say to
whom it had been sold. Could not send to the purchaser and try to
buy it back. Grumpy and curt replies generally. John left the shop in
a bad humor.
Flicking with his cane the tall grasses in the neglected spaces
before wooden front-yard fences John strolled in the twilight to the
old garden. The house was empty again and the garden had run
wild. It was not the wilderness he remembered but it had the same
outlines and the same general character. His heart warmed over it
and memories thronged.
His feet carried him he knew not whither. In the late twilight he
found himself before the splendid Wareham mansion. He was vexed
that he had not been able to get that kitten and send it to Milly in a
big box of pink roses, like the roses in the old garden. Then he was
vexed that he had not thought to send her the roses anyhow, as
soon as he had found he could not get the kitten. Then he opened
the gate, walked springily in and rang the bell.
Yes, Miss Wareham was at home. The warm lamp-light which had
led him in shone from the room into which he was ushered. Milly was
reading by the lamp itself. She rose to greet him. Her yellow satin
gown became her well and her voice was sweet to his ears. Her
words were cordial. But what Jack noticed to the exclusion of
everything else was the very black kitten he had failed to purchase,
tucked under her arm, purring vociferously, and very becoming, it
seemed to his eyes, to the color of her dress. The instant he saw it
he knew what he meant to say to her. And the look in her eyes told
him almost as plainly as the pet she fondled what her answer would
be.