Business Ethics and Development Sandra Dawson Planet Lebanon 2004 Lebanese International Business Council

What is business ethics? The values, beliefs and actions of PEOPLE in business investorsboard members customerspoliticians employeespublic servants NGO representativesjournalists In a context set by law and custom

Fundamentals of business ethics sense of right and wrong motivation, intention and strategy performance management disclosure, transparency and communication consideration of the ‘other’..altruism codes of practice and rules of governance law and custom sense of fairness, justice and trust

Trust is fundamental to collective human activity The basis of many activities is the belief that others will do as they say, and we will do as others believe we will ‘ the confident expectation of benign intentions in another free agent’ Dunn, 1990 p27 Never wholly guaranteed-people let each other down-there are untrustworthy deceitful people The efforts to prevent an abuse of trust are gigantic,relentless and expensive and inevitably their results are always less than perfect People’s motivation and the rule of law are fundamental

Why is trust important? Morally Moral sentiments Happiness, contentment, psychological well being Instrumentally Predictability Sustainability Costs of alternatives (intended and unintended)

Questions for us all Would you trust yourself? Do you trust others ?

Free enterprise may deliver Surplus value,goods, services and innovation…AND… community programmes impetus for social and economic development taxation increase standard of living social mobility and meritocracy An anchor for a strong policy environment and civil society

free enterprise may also deliver fraud, crime and sharp practice greed and self serving decisions widening gap between the rich and poor double standards and hypocrisy global strategies with apparent disregard for poverty, human exploitation, environmental devastation, disease and debt

What can businesses do? Supply private capital and private disciplines, with more rigorous deployment of results-driven capital to grow competitive sustainable businesses Example of micro credit schemes which enfranchise economically via ownership, discipline and accountability Develop and sustain ethical standards in international trade and investment from an appreciation of local and long term impact Support the rule of law

Why? morality and humanitarianism risk of failure: vicious circle discontent, migration, disease opportunity of success:virtuous circle global demand, enlarged markets

Business Ethics and Development Sandra Dawson Planet Lebanon 2004 Lebanese International Business Council