Ethics In Globalization
Ethics in Globalization
Ethics in Globalization
Moderator:
Panelists:
Rafael M. Di Tella, Joseph C. Wilson Professor of Business Administration
Robert R. Glauber, Adjunct Lecturer, Harvard Kennedy School
Michael G. Oxley, Former Congressman and Chairman, House Financial Services Committee
Daniel L. Vasella, Chairman and CEO, Novartis AG major shock that 2) suggests systemic corruption. Both call into some question the legitimacy of U.S. capitalism.
Overview
It is ethically legitimate for businesses to place the
The current financial crisis has raised questions about the legitimacy of capitalism. Ethical failures certainly played a role. While it remains to be seen whether and how many people blatantly broke the law, there are abundant signs of various forms of potentially unethical behavior. These include greed, unreasonable amounts of leverage, subtle forms of corruption (such as ratings agencies that appear to have had a conflict of interest), complex financial instruments that no one really understood, and herd behavior where people just followed along and failed to exercise independent judgment.
customer’s interests above all else, because only through profit comes the freedom to contribute to society (Vasella). Business leaders must use their personal moral compasses to make ethical decisions.
As for the business’s compass, it should be oriented toward satisfying customers above all stakeholders.
That is the orientation that allows for the greatest competitive success and profitability. In Mr. Vasella’s view, only by making a profit does a company earn the right to pursue social goals; that is why pursuing profit is ethically legitimate. A company’s primary responsibility is to produce perpetually improved products/services.
Secondarily, it has a duty to contribute to solving social issues. The key ground rule in the pursuit of profit is transparency. Per Mr. Vasella, “We should not do anything which we cannot put on the table and show.”
It is
Ethics in Globalization
Moderator:
Panelists:
Rafael M. Di Tella, Joseph C. Wilson Professor of Business Administration
Robert R. Glauber, Adjunct Lecturer, Harvard Kennedy School
Michael G. Oxley, Former Congressman and Chairman, House Financial Services Committee
Daniel L. Vasella, Chairman and CEO, Novartis AG major shock that 2) suggests systemic corruption. Both call into some question the legitimacy of U.S. capitalism.
Overview
It is ethically legitimate for businesses to place the
The current financial crisis has raised questions about the legitimacy of capitalism. Ethical failures certainly played a role. While it remains to be seen whether and how many people blatantly broke the law, there are abundant signs of various forms of potentially unethical behavior. These include greed, unreasonable amounts of leverage, subtle forms of corruption (such as ratings agencies that appear to have had a conflict of interest), complex financial instruments that no one really understood, and herd behavior where people just followed along and failed to exercise independent judgment.
customer’s interests above all else, because only through profit comes the freedom to contribute to society (Vasella). Business leaders must use their personal moral compasses to make ethical decisions.
As for the business’s compass, it should be oriented toward satisfying customers above all stakeholders.
That is the orientation that allows for the greatest competitive success and profitability. In Mr. Vasella’s view, only by making a profit does a company earn the right to pursue social goals; that is why pursuing profit is ethically legitimate. A company’s primary responsibility is to produce perpetually improved products/services.
Secondarily, it has a duty to contribute to solving social issues. The key ground rule in the pursuit of profit is transparency. Per Mr. Vasella, “We should not do anything which we cannot put on the table and show.”
It is