The moral theory ethical egoism:in the business of life - Essay Example

The Moral Theory Ethical Egoism: In the Business of Life This essay will first outline the basic meaning of ethical egoism, its strengths and weaknesses, and finally, offer an opinion as to its value as a moral concept for business behavior. Background on egoism, ethics and moral development will also be discussed to explain or clarify meanings or ideas. Examples of hypothetical and real situations will be used to illustrate personal understanding and interpretation. The contention is that this theory can only work positively in business decisions if all parties concerned operate from the same rational basis, with similar moral values. Ethical egoism, in simple terms, might be described as "looking out for number one" by following the doctrine that everything we do 'should' be in our own best interests because we know our own goals and should pursue them. According to Moseley (2006), "The individual aims at her own greatest good." And - "it is always moral to promote one's own good, and it is never moral not to promote it." So the theory suggests that it is morally right to be self-serving, that should be the motivation. However, it does not end there, for the idea that developing oneself, enhancing life, taking steps to achieve goals, make the individual a better person, and this impacts for the good on others. The case of Bill Gates of Microsoft comes to mind; here is someone who set out to achieve his goals, who might be perceived as an ethical egoist and who now, uses his fortune to help others. He might actually be practicing altruism, the total opposite of egoism. It is necessary to look at definitions to relate to that idea. Egoism is linked to Freud, first of the great psychoanalysts. Freud (1923) defined the ego as "the conscious, rationalizing section of the mind" (Freud, cited in Philip's 1999) and acted as the mediator between the id, wherein lay desires and potentially dangerous emotions, and the super-ego, a sort of prohibitive conscience. The main premise is that this is how we all are, acting selfishly and rationalizing our acts, because we need to have our desires followed through, and never mind anyone else, and the ego helps us to this. This in fact relates to psychological egoism, and not ethical egoism, which in many respects involves doing some good for others, even if the motivation stems from self-interest. This has to happen, for no business could operate otherwise, all morality and reason would go out the window. Care must be taken to differentiate between psychological and ethical egoism, the first operating from the premise of it just 'is' and the second from the idea of 'should'. Ethics is a huge topic and many different philosophers have defined their views. In the case of ethical egoism, Aristotle's 'Nichomachean Ethics' (320 BC) fit closely. He believed that thinking well and doing virtuous acts led to happiness, but nobody can get there without other, external goods, of the material kind. "for it is impossible, or not easy, to do noble acts without the proper equipment. In many actions we use friends and riches and political power as instruments.." (Aristotle, 320 BC) It would seem that, like Bill Gates, once you have all the external riches, you can be happy in being virtuous and doing good acts. But the other side of the coin could be the Categorical Imperative of Immanuel Kant, which says duty over self is what we 'ought' to do. This might cause a re-think on the morality of ethical egoism. "that a rational being is constrained by reason not to bend others to his own purposes, not to enslave, abuse or exploit them." (Scruton, 1981, citing Kant). In other words, he was putting forward a set of moral laws that everyone ought to adhere to and apply to others, expecting the same in return. Though big businesses appear to flout this law, it would seem to fit with the positive aspects of the underlying principle of ethical egoism, to do no harm and to work things out to the mutual benefit of all concerned. Hobbes, (1651) in Leviathan, took the view that humans were a physical mechanism, but pointed out that if everyone followed the rules of law in society, then the common good would be served. He could be seen as advocating ethical business practice, "the wealth and riches of all the particular members are the strength;equity and laws, an artificial reason and will" (Hobbes, Introduction, 1651) He believed that every act we do is to relieve ourselves of uncomfortable desires and appetites, so we are motivated to achieve our own well-being. This can cause conflict, but if we enter into contracts with each other, then all benefit. This fits well with the contention by ethical egoists that the moral theory is a way of resolving conflict, because if a person is totally self-interested, then cooperation is better than conflict in achieving their aims. A business example might be that two companies are trying to expand their sales in the bio-yogurt market. Both have decided, for the sake of argument, to target Japan. Company A may secure the contracts first, gaining a monopoly. However, the market could be further expanded if more and different products than theirs were on offer. So Company A could allow Company B to market those different products to their mutual advantage; greater varieties will raise the profile, resulting in bigger sales. They would thus be sharing resources, using each other's particular strengths, serving their own interests by conflict resolution and cooperation. As mentioned earlier, moral values play a large part and human beings possess moral reasoning, in the main, on which to base ethical behavior. The example quoted here comes from the classification of moral development, created in 1969 by the psychologist Lawrence Kohlberg. He believed that human's first level of moral thinking happens when we are around five or six years old (level 1) and we behave 'properly' to obey an authority figure and for fear of punishment; the next stage is "that right behavior means acting in one's own best interests." (Barger, citing Kohlberg, 2000). Level 2, taking in stage 3, is when we look for approval from others, and stage 4, complying with the law and doing our duty. Finally, in Level 3, at stage 5, we understand the need for a social contract and really caring about other's welfare. Stage 6 is about respecting "a universal principle and the demands of individual conscience." (Barger, 2002, citing Kohlberg, 1969). Kohlberg himself did not think many adults ever reached stage 6, as he could not find enough people to help him define it. Ethical egoism, in its strongest form, from a personal viewpoint, seems to be striving towards this moral model, while appearing to be defined in stage 2. The strengths of the theory might be seen as allowing a person to choose their own values and to set and achieve goals. It lays out a clear path, for who knows a person better than himself or herself If they serve their own needs first, they do themselves the greatest good, and no harm to others. In business this would lead to a decision maker who works from a standpoint of self-respect and self-esteem, who has confidence that in doing what is right for him, he is achieving goals and helping his company. These are good leadership qualities, a good example for workers and colleagues to follow. Business associates and competitors would believe they are dealing with a person of integrity whose judgment is to be trusted, for that person will behave well in order to serve his own ends. A further strength in decision making is that the ethical egoist will be motivated to see things through and base them on rational decisions, not just short term feelings or desires, but on reason and results. This quality can carry people along with it, motivating them to achieve too. Conflict resolution is another strength, and an example of this in operation might be as follows: The owner of a small company is having temporary financial difficulties, and his first thought is to reduce the workforce by letting two of his most highly paid, long serving workers go. But many of the workers are related to the two in question, and though loyal to the company, a family firm, are likely to respond by working less productively, thus adding to the difficulties. Now, a strong ethical egoist decision could be to pay the workers off, stay solvent and work toward his goals. Conflict is resolved when he explains the situation to all the workers, offering them the chance to keep their jobs, but on a basic wage rate for a time, till matters improve. He offers the alternative, of letting two men go, and the workers agree to his first solution. He is serving his own interests in the long term, while resolving conflict and doing no harm. Ayn Rand (1964) with her philosophy of Objectivism, reinforces these strengths in her book 'The Virtue of Selfishness' when she asserts: "A man's "interests" depend on the kind of goals he chooses to pursue, his choice of goals depends on his desires, his desires depend on his values - and, for a rational man, his values depend on the judgment of his mind." (Rand, 1964 p. 7) She believed that man has a moral right to be guided by his own judgment, based on rational principles "a morality of rational self-interest - or a rational selfishness." Thus a rational person will make efforts to work hard in order to follow his moral code and achieve his own goals. The main weaknesses center around the belief that only the needs of the individual are important and it might appear that living by this theory is walking over other people. Good behavior is not about the greater good of all, but about the self. The danger, in the business context, lies in becoming too focused on personal goals and dismissing other's values or needs. Another doubt arises on the question of doing no harm, and not being obliged to positively assist others and to consider the consequences that only affect oneself. For example, if a business competitor is not doing so well and their demise would benefit the ethical egoist's company by giving it a bigger share of the market, the theory would allow the competitor to go down, for there is no responsibility to help others. The idea is that the 'winning' company has might and power, but in the wider business community, such non-assistance might be seen as immoral, cutthroat in fact. But if the ethical egoist wants to serve his own interests and reason on his long term goals, he would cooperate and possibly offer assistance, thus keeping his good name and reputation, which is in his best interest to do. A final weakness lies in the assumption that everybody should work from the same rational basis and set of values, and they do not. As Kohlberg demonstrated in his theory of moral development, and indeed others before and since, most people do attempt to fulfill duties and obey laws. There is an intrinsic desire in humanity to reach out and assist others, not just to further our own ends but because we believe it to be the 'right' thing to do. There is no way ethical egoism can overturn that desire. In conclusion, it is difficult to decide if ethical egoism in business or otherwise, is a true ethical philosophy or moral theory, or just a defense of selfish behavior. If everyone lived by it, then what would happen if somebody, sometime needed help and nobody anywhere was prepared to offer it This is not going to make anybody happy, and the wheels of commerce would grind to a halt. Surely the point of achieving goals is to be happy - so there is a contradiction in how the theory works. A final example that combines the morality of altruism with ethical egoism is presented here, to explain the personal dilemma raised by the issue. Two young men set up a small building company, utilizing their different but compatible skills. They form a partnership, buy extra equipment, and create a business account. One has more equipment and greater skills, the family name and reputation and the contacts to make the business work. The other is a hard worker, with good experience. He is also very materialistic and motivated by money and status and fits the profile of the ethical egoist in many respects. The business prospers, they win many projects and work hard. After a few months, the accountant notices that quite large sums of money are disappearing from the business account, taken by the second partner. When confronted, he apologizes and pays the money back - in time. The other young man operates from a moral stance of altruism, he understands that his partner had financial problems, so continues to work with him from a sense of generosity, loyalty and friendship. However, smaller amounts of money continue to disappear, traceable to the partner and trust is destroyed. The partner stealing from the business lies and evades any discussion. The first young man decides to dissolve the partnership, as his moral values have been abused and his own efforts to achieve his goals are being thwarted. The personal dilemma is whether, by dissolving the partnership, this individual has acted from ethical egoist motivation, or the moral view that selfish and self-centered actions go too far against his own values. The conclusion here must be that ethical egoism has its place in business and in life, so long as it is taken to the point where, in order to serve one's needs, it is necessary to ensure that other's welfare matters too. There is the dilemma, the contradiction and the opinion that the theory has not the strength to be a true ethical or moral principle at all. Works Cited Aristotle, Nicomachean Ethics, Book 1, Chapter 8. 320 BC, ebook 2 February, 2007 http://www.constitution.org/ari/ethic_01.htm Freud, S. The Ego and the Id. Cited in Philip's World Atlas and Encyclopedia. London: Philip's 1999. Kohlberg, L. Theory of Moral Development - 1969. A Summary of Lawrence Kohlberg's Stages of Moral Development, Barger, R. N. PhD. 2000 2 February, 2007 http://www.nd.edu/rbarger/kohlberg.html Hobbes, T. Leviathan. 1651 Introduction. Renascence Editions ebook. 2 February, 2007. http://darkwing.uoregon.edu/rbear/hobbes/leviathan.html Moseley, A. Egoism - The Internet Encyclopedia of Philosophy. 2006. 2 February, 2007. http://www.iep.utm.edu/e/egoism.htm Rand, A. The Virtue of Selfishness. New York: Signet 1964 and 1970. Scruton, R. A Short History of Modern Philosophy, 2nd Edition. London and New York: Routledge 1984 - 1995. Read More