Theory of Truth in Business - Assignment Example

Theory of Truth in Business What is truth? Truth is defined in many ways through many criteria, and in some cases the existence of truth is even denied. It is most commonly taken to mean being in accordance with fact or reality as we perceive it. “In regard to scientific and philosophical systems of truth – the truth of the senses and of reason – [what is truth] is hardly questioned nowadays. The systems are admitted with their sources of truth: the dialectic of human reason and the testimony of the organs of the senses” (Sorokin, 1941, p.164). In philosophy, however, truth is more conceived of as a tool of discourse for examining agreement between claims (Williams, 1996, p.572), rather than by its nature. In this discussion, the concept of truth in business, more specifically in relation to the marketing and advertising aspect will be considered. There are three fundamental theories of truth – the correspondence theory, the pragmatic theory and the coherence theory. The correspondence theory of truth was advocated in the early 20th century by Russell and Moore. It asserts that truth is correspondence to a fact; that is, that truth is a “relational property involving a characteristic relation… to some portion of reality” where both the relation and reality are to be specified (David, 2009). This theory presupposes the existence of a set of known facts or truths, against which new claims are compared; when the new claims are consistent with the body of accepted facts, then they are also taken to be true. If they are inconsistent, then the new claims are considered false. The approach is metaphysical or objective, and the concept of truth is absolute (i.e., a claim is either true or false). The pragmatic theory is most attributed to William James. It states that a pronouncement is true if it allows an actor to function effectively and efficiently with the universe (i.e., the totality of the environment he moves in). For James, truth is defined by its relationship to the “practical consequences of ideas”; the test of the truth of an idea is “the conduct it dictates or inspires.” (Archie & Archie, 2004) Because of the relative nature of its definition, the pragmatic theory allows for degrees of truth where the actor may function more effectively with the cosmos by some means than others. By contrast, in correspondence theory the claim is adjudged either entirely true or entirely false. The coherence theory was advocated by Willard Quine. The theory holds that “a claim is true if it is logically consistent with other beliefs also held to be true.” (Archie & Archie, 2005). Conversely, a belief is false if it is inconsistent with other beliefs held to be true. Theory of truth that best relates to business and advertising Of the three fundamental theories of truth, that which best supports the concept of truth in business, particularly advertising, is the pragmatic theory. Of the pragmatists, James’ view appears to most closely approximate the view of business. “’The true,’ to put it very briefly, is only the expedient in the way of our thinking, just as ‘the right’ is only the expedient in the way of our behaving.” (Joyce, 1907, p.106). Expediency here is viewed as the quality of having the greatest effect with the least cost in time and effort. In business, the purpose of engaging in any enterprise or productive activity is to meet a want or need of the consuming public. In fact, one of the core principles of business is that “the customer is always right,” meaning that since it is the customer’s needs and wants that must be satisfied, then the attributes of the product that are to satisfy this need or want depends upon his personal preferences. That is why in any one particular industry or sector catering to a particular class of products, there are usually several variants to the product. Clothing, for instance, spans a great variety. There are clothes for men, women and children. There are formal wear, casual clothing, office attire, sportswear, undergarments, and so forth – all of which pertain to the practical use of the product. Even within one class, there are as many designs as needed to suit the wearers’ tastes in color, comfort, style, and size, among other considerations. Commercial products perform a dual function – they satisfy the customers’ needs, and when they do so their sales add to the revenues, and ultimately profits, of the firm. James’s views are that truth is relative, and that which is most true is that which enables the actor to function most efficiently and effectively in its environment. James’ theory also links the concepts of truth to what is right (by way of behavior) and good (by way of belief). Thus, what is true governs the belief and action of the actor. In transplanting these concepts to business, “effective” is taken to mean fulfilling the purpose for which it was intended; by “efficient” is meant that the objective is fulfilled in the most expedient (or least costly) manner. In business, when a particular product line or design is no longer patronized by the public, it no longer adds revenues to the firm, and is therefore discarded. The item is proven false, thus it is “not good” for the business, for which therefore it is “not right” to be produced any longer, and is therefore discontinued for production. Also, when a product is still selling, but not selling fast enough or in sufficient volume, then it tends to become inefficient, and the costs of producing it may approach or exceed revenues. In this case, the product is less true, because it is less “good” than other products, and it is less “right” to keep producing it. This matches James’s concept that there are several degrees of truth. Advertising, which is part of the marketing function of business, also mirrors this view. Of all the good and bad attributes of a product, advertisers view those attributes that are “most true” in a product that best satisfies the purpose of the advertisement – to entice the public to purchase the product. Thus, attributes that least effectively satisfy this purpose, are “less true” which therefore justifies the action (i.e., makes it “right”) that the “less good” product qualities may not be publicised together with the “good” product qualities. It is therefore little wonder that while all advertising campaigns comply with “truth in advertising” requirements, it is generally understood that the “truth” here is only partial truth, that negative qualities about the product are hidden, and that the product is portrayed “in its best light.” Comparison with another theory The theory that probably least conforms to the idea of truth in business is the correspondence theory. This is the theory of objective truth, which denies the existence of degrees of truth and merely identifies a thing as completely true or completely false. In business, such rigidity should apply only to the absolutely immoral products, those for instance that pose a clear danger to people’s health and welfare. Illegal narcotics and assault weapons would fall under this category. But within the range of legal and socially acceptable products, sticking to one “right” product that meets the business owner’s idea of what is true, right and good will generally cause that business to fail, unless he/she caters to a specific and captured market. The measure of truth is the owner’s preference, not the consumers’, and the objective of the business – to satisfy the customer – is rendered unimportant under this criterion. Business, therefore, will not thrive under the correspondence theory of truth. A business basically exists in relation to its market; it views what is true, right and good through the eyes of its consumers, and to some extent influences its customers’ perception through its advertising. Truth in business should therefore allow for many shades of meaning and perspectives in order for the business to exist. Bibliography Archie, L. & Archie, J.G. (2005) Reading for Philosophical Inquiry: A Brief Introduction to Philosophical Thinking. Accessed 29 September 2011 from http://philosophy.lander.edu/intro/introbook2.1/book1.html David, M. (2009) “The Correspondence Theory of Truth.” Stanford Encyclopedia of Philosophy. (Fall 2009 edition). Zalta, E.N.; Nodelman, U.; Allen, C; & Perry, J. (eds.) Stanford, CA: Stanford University. Accessed 30 September 2011 from http://plato.stanford.edu/entries/truth-correspondence/ Hookway, C. (2010) "Pragmatism", The Stanford Encyclopedia of Philosophy (Spring 2010 Edition), Edward N. Zalta (ed.). Accessed 30 September 2011 from http://plato.stanford.edu/archives/spr2010/entries/pragmatism/ James, W. (1907) Pragmatism: A New Name for Some Old Ways of Thinking. New York: Longman Green and Co. Williams, M. (1996) “Truth,” Encyclopedia of Philosophy. New York: Macmillan Publishers. Sorokin, P.A. (1941) The Crisis of Our Age: The Social and Cultural Outlook. New York: Dutton Read More