Practical Wisdom as a Conceptual Framework - Example

REFLECTIVE JOURNAL by Student’s name Code+ course name Professor’s name University name City, State Date Outline Introduction 3 Class 5 3 Class 7 5 Class 8 7 Class 9 10 Conclusion 11 Introduction Issues concerning corporate social responsibility can be traced back to the industrial revolution. The beginning of industrial revolution has defined the correlation between operation of an organization and society. First, the industrial revolution’s era saw the upsurge of urbanization with people transitioning from agriculture to manufacturing work in towns. The shift causes poor health and safety environments which rapidly demanded industries to be accountable for the well-being of their employees. Later, the concept of New Capitalism emerged after Second World War demanding organizations to act voluntarily in the benefits of society at large. During this era, it was believed that corporations had responsibilities beyond profit maximization. Finally, globalization came with economic liberation such as the increased power of the multinational organizations, increased international trade and growing focus on short-term profits. Globalization resulted in irresponsible organization behavior that lead to loss of public confidence in business. Many organization resolved to corporate social responsibility as a solution to dealing with the public problem and accusations. However, the involvement of organization in social responsibility has been issues of debate. Should a company try to find solution to societal ills? Should the organization maximize their shareholders’ wealth? Class 5 As much as I want to act appropriately, it is not always easy to do the right thing. Most of the time I strive to be good, or at least work towards becoming a better version of myself, but am unsure of how to translate this abstract goal into my daily actions and decisions. I have adopted rules and principles to abide by and set goals to work towards, yet still get caught in moral dilemmas about how to act in a certain situation or context. Intuitively, I understand that these rules and principles are the good beginning point but eventually fall short when it comes to certain actions that a situation demands. In this situation, I am not talking about deciding between right and wrong, although that is certainly important. Instead, the difficulty lies in deciding how to act rightly given two good aims to pursue. Imagine you are in at a friend’s wedding and you friend is wearing an unflattering dress. She asks you how she looks. In such a situation, is it right to respond with honesty or kindness? Both options are considered strengths, yet each will produce great different outcomes. To begin figuring out how to respond, I will need to ask myself what it means to be a “good friend.” Does a niece friend always tell the truth, or are good friends supposed to boost one another’s confidence? To make decisions, I appeal to the Aristotelian conception of practical wisdom. Practical wisdom entails the capability to perceive accurately the situation at hand, to have the appropriate emotional state, to deliberate about the possible actions, and to use reasoned choice to select and do the right thing. Put it simply, practical wisdom is having the moral skill and the moral will to do what is right. Virtue ethics draws a connection between human flourishing and human excellence. Virtue ethics posits that the good life extends beyond feeling happy and experiencing pleasure. Flourishing consists a state of being where people’s character is aligned with and their ability to live well with reason and moderation. Therefore, living well is a process in which human beings develop their characters through cultivating the virtues to become the best one can be according to one’s individual human nature. Virtue ethics asks questions about the nature of “good ends” for humans to pursue and what character strengths are needed to work towards these ends. All these ideas originated from Aristotle’s conception of Eudaimonia, translated to happiness and flourish, which are presented in the Nicomachean Ethics. According to Aristotle, Eudaimonia is characterized by a life in pursuit of worthwhile ends made possible by the right dispositions and character one needs to be the best one can be. Just like the function of a flutist is to play the flute well and the function of the cobbler is to produce excellent shoes, the function of humans is to act with reason in accordance with the most fitting or complete excellence, which is the appropriate use of the virtues. I believe that these strengthens and virtues can be learned through practice and become disposition or habits to act in accordance with what is good. Instead of assessing well-being through particular incidents or experiences in one’s life, virtue ethics equates human flourishing with the kind of person one is and the way one’s life is taking shape as a whole. Relating human ethics to company’s social responsibility, I believe there is a need to do things in principle or because they are inherently right. A company should act for the highest good. The highest good is a good will and acting from a good will is acting from duty. Therefore, a company should consider ethic of duty rather than focusing on ethics of consequence. If going beyond the Government set standard to protect the environment is a good action, then the company consider the action rather that the consequence that make that action. The company should have its free will so as to act from right intentions. According to Utilitarianism theory, an action is right if it promote positive impacts and wrong if it propels negative consequences. Everyone including the government will feel the failure of the company to protect the environment. Therefore, the company should act to provide the best consequence. Class 7 Adam Smith was a Scottish theorist who established and developed economic theories during the early 19th century. He designed and operated theories of individualism and machines. It is known that he shaped the historical condition in Britain in 1850s. He advocated a liberal economy based on free trade, autonomous competition, and few government regulations. As well as providing an economic and political model that consented interests of the British are growing the commercial and industrial class. Adam Smith’s the Wealth of the Nation, published in 1876 was one of the most influential books at the beginning of the Industrial Revolution. By 1876, industrialization had begun changing Britain’s economy and society. In the book, wealth of Nations, Smith theories brings an understanding of the economic machine created by people as well as the internal working that drive these machines. Smith assumed that the costs and benefits of a free market should have elements of free fairness, and it should reject behaviors that seek to dominate others by creating substantial inequality. Smith’s concept of the wealth of nations theorizes that self-interested personal economic behavior will create an unintended impact that will inherently address and likely achieve two main goals of the political economy. First, Smith suggests that when individuals “endeavor” to implement their capital in the domestic industry by loaning funds from the foreign industry, they support the domestic value of the foreign nations. Secondly, when individuals pursue their interests, they normally uphold the society more effectively than when they really intend to promote it. Smith's words can be used to explain and justify individual economic gain because of the belief that his approach is for the common good. Smith combines concepts of personal self-interests and interest of the common good to acknowledge that selfish, social and unsocial motives are the basis for human action. Reflecting on Adam Smith’s notion, I understand that the function of a business is to make money. By serving the demands of the stakeholders, organizations produce wealth that satisfies the needs of the society. Class 8 Corporate social responsibility jeopardizes the long-term survival of the corporation by spending its precious resources. Sustainable development includes economic development, and if this function is undermined by corporate social responsibility practices, the wealth of future generation will be endangered. Social protection and environment are components that should be performed by the government which is a responsible for setting a legal framework for business enterprises. The free market is a highly competitive environment where costs are minimized for survival. Shareholders participating in social responsibility by spending money lose any competitive advantage by taking compromises on the quality of the product or laying off employees. Where no financial motivation for corporate social responsibility is present, acting opposite to laws of economics threatens the survival of the company. Besides, corporate social responsibility has reduced international competitiveness through marketing. Successful trademarks, logos and packaging created by design specialists are the main ingredients for successful marketing. Advertising has paid, and controlled mass communication is also one of the best marketing tools for corporations due to its selectivity, control of the impact and timing that transforms the corporate social responsibility into a futile marketing instrument. Advertising can be applied to image building or strengthening investors’ financial relations, and it represents an alternative to corporate social responsibility activities. Buyers of the product are more concern with quality, price, or sell by date than ethics. These features can be successfully promoted through advertising campaigns while the corporation should strive to improve its product specification rather than emphasizing on corporate social responsibility. Corporations that develop employment opportunities deliver desired goods and services and contribute to local, regional or national budgets by paying taxes in time have created themselves all the premises for a good public image. The notion that the legislation is the only expectation a free-enterprise, private-property-based society should have from companies diminishes the correlation between CRS and corporate image, the corporation should search worldwide for the best business environment and respect the local and international legislation, while building its image via branding, advertising, customer services or sponsorships. Public relations actions and special events organized in the public interest can best advance the public image of the company, but these activities need to perform only if they are fully accepted in their own interest. If a company wants to survive for a long time on the market, it has to take into consideration its external environment. Although it is questionable whether there is a direct causal effect of adopting corporate social responsibility practices and increasing revenues, establishing and consolidating good relations with various stakeholders and avoiding potential risks from the external environment is a must for the long-term oriented corporation. Corporate social irresponsibility can have minor effects in the short term, but, in the long run, it can prove to be disastrous for the very existence of the corporation. For instance, a company would have faced a scarcity of resource if the corporation was not interested in sustainable development. The corporation can be deprived of its basic inputs if it does not take into consideration its current outputs. Some companies or industry sectors have specific features (for example, a company participating in recycling activities) that automatically determine them to adopt a long-term perspective. Corporate social responsibility activities do not depend on alchemy, but they can prolong the longevity of the corporation by smoothening the relation with the external environment and by lowering the risks if faces. Since new marketing approach seeks to define the long-term and productive relationship with the customer; corporate social responsibility can function as a useful marketing tool. Sustainability is about a long-term vision that is mainly achieved through corporate social responsibility. CSR practices can make a difference between product and service that are perfect substitutes. Even if the products are not different, they can be differentiated. CRS is an alternative to price competition when it comes to promoting brands with low product differentiation. However, the purchasing behavior of the aware and responsible consumer segment is still a challenge to corporate social responsibility. Socially responsible activities can make products apparently different and offer a competitive advantage in a market with low real product differentiation. The best way a corporation can maintain good relations with regulatory bodies is by obeying the law. Corporate Social Responsibility is a cosmetic exercise and a voluntary approach that will allow companies to decide on what is socially responsible instead of delivering real responses to the needs and demands of stakeholders. Corporations should adopt a proactive attitude and contribute to sustainable development before CSR issues reach the political agenda; because publics that perceive organizations to be irresponsible frequently turn to the government for help. Government helps by setting up regulations and restrictions. It costs the organization a great deal to comply. Therefore, integrating socially responsible activities can smoothen off the relation with the regulatory bodies and avoid detrimental regulatory prescriptions. If a business practice is considered harmful or dangerous, it should be made illegal. Corporations also need to maintain positive relations with the regulatory by not engaging in these illegal activities. There is no need to go beyond the minimum requirements, to self-imposed constraints or to meet expectations when the government officially allows for business activity. It makes sense to expect governments to sympathize with those companies who respect the law since asking a corporation to be socially responsible makes no more sense than asking a building to be. Class 9 Reflecting on international issues, I think the quest for profit among the multinational corporation is the main cause of the global destruction of the environment, health issues, social dislocation, terrorism, genocides, civil wars and associated issues. The past few years have seen attention from the public regarding the environmental problem and criticism of multinational organization in their accountability and role in social responsibility. Such critic has been experienced among organization such Nike for the abuse of labor, and Monsanto for failing to address their stakeholders concerns. One significant challenge for a corporation operating in PNG is the notion of stakeholder engagement. BHP’s Ok Tedi mine have ignored the significance of stakeholder engagement. Consequently, there is strong criticism from the media, the public, and the international community concerning the ethical and moral duty of its stakeholders. Reflecting on this critics, I think BHP’s Ok Tedi mine should implement the measures so as to fulfill the interests, agendas, and wishes of its stakeholders. BHP’s Ok Tedi mine is demanded by the public policy to protect the environment from pollution at all cost. However, BHP is releasing more waste than it had originally intended. BHP should consider the interest of the society by taking responsibility for the impact of its activities on the wildlife, livestock, stockholder, and workers of the company as well as the recreational users of the catchment areas. The company should recognize that its operation and the society are intertwined rather than separate entities. Since the business functions of the company have resources and skills, the company has a moral obligation to protect the environment even if there is no potential short-run profit potential. By protecting the environment, BHP gains from being socially responsible and will help in developing it business opportunities, workforce, and trust in the society. Therefore, the company should consider views of stakeholders take appropriate measures to investigate the issue. Conclusion I believe practical wisdom is a conceptual framework that helps people do the right thing through guidance of moral perception, deliberating between ends and possible actions, making reasoned choices and taking appropriate actions. This concept originates from Aristotle’s virtue theory which argues that people flourish by using their strengths in moderation to do the right thing and to pursue worthwhile ends according to human excellence given our human nature. Practical wisdom is a necessary virtue to pursue flourish, as it balances and aligns personal goals and aims in accordance with what is ultimately good. It helps people understand and do the right thing in the novel and ambiguous situations, to form good habits, to cultivate a virtuous character and to become the best that one can be. Activities related to Corporate Social Responsibility can ensure the type of public image that cannot be built through advertising campaigns. The necessity to main a good corporate public image is not any longer just a topic for cinematography productions, but it has been experienced in different programs. Building a public image on corporate social responsibility can increase the credibility and probably the share price. Establishing and maintaining effective media, community, government, investor, consumer as well as international relations is significant for the survival of many corporation, especially those companies that are sensitive to media and criticism from NGO and group activists. Although these public might have a divergent interest, the strategic public relation can incorporate corporate social responsibility principles to equilibrate conflicting interests and to prevent public scrutiny as well as destructive image crises. The public relation of a company can accentuate the negative effects of crises or regulatory initiative. References Haidt, J., 2013, Moral psychology for the twenty-first century, Journal of Moral Education, Vol 42, No.3, pp.281-297. Read More