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Strategy Ethics Leadership These three areas of inquiry and practice are very similar. All three involve knowing the situation and circumstances. Also, “leadership is about service not about power” just as strategy and ethics also both involve service and power.
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1. FP&R: future-proofing and resilience 2. RBMHG: reasonably-balanced mixture of the human goods 3. KLMBS: known limitations of market based systems 4. LPAMC: levers to pull to avoid mega-catastrophes 5. PGMIBG: public-good missions involving business and govt 6. GEHI: the general effectiveness of human intentions 7. TBRT: table of blue vs. red themes 8. MFoC & MOMA: the moral foundations of capitalism and a more-obviously-moral approach 8 REALLY IMPORTANT IDEAS IN STRATEGY & ETHICS FOR 21 ST CENTURY
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wealth, negative-freedom (from state regimes) pleasure, aesthetics positive- freedom, health, happiness More obviously moral approach Capitalism & strategy justice & fairness, negative-freedom (from private regimes) friendship, sociality care, nobility, charity
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Monopolistic tendencies (concentration of power, wealth) Ignores aspects of Distributive-Justice (distribution of wealth and the HGs). Many lack the ability to pay for anything (no endowment, or legitimate opportunity) Lack of Information (about the things being exchanged, purchased) Preference vs. well-being (the dark psyche; the creation of desire) Externalities (e.g. un-priced pollution, no restorative-j) Un-priced public-goods (e.g. the benefits we all obtain when everyone else is healthy). Lack of universal access to non-rival goods (in strong IPR regimes) KLMBS
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210020452015 Trans-human civilization Momentum - Trends Trans- humanist divide 3 rd & 4 th world 2bn+ in squalor Mid-century Canyon Lifted 4 th & 3 rd worlds Mega -cats? 1 st & 2 nd worlds Leverage Factors wealth USA average
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Passive Corporations Government(s) Voters understand the KLMBS Elect Capitalism with Democracy Regulations: taxation vs monopoly environment protection vs externalities Public goods, DJ etc. Regulations to overcome KLMBS
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Politically Active Corporations* Government(s) Distracted Voters Narrow lobbying Revolving door political advertising & biased information Elect Capitalism without Democracy *with influential managers & shareholders Regulations serve narrow corporate interests
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Corporation Government(1) Lobbying & constructive engagement for common good, anti-corruption, etc. Informative advertising to explain KLMBS & HG-government CSR Compensate for all KLMBS, In pursuit of dual mission & vision HG-government cultivate & implant justice, efficiency, health, positive -freedom, happiness, etc. I-NGO’s Partner & engage for shared mission Global Common Good Government (2) Government (n) TGI’S & Networks e.g. UN, OECD Build trust facilitate stability, Huri coordination & harmonization Lobby for selected HG’s & global good Endorse & support Co-opetition & Self-governance e.g. Global Compact optimize tax globally PGSIBG
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Corporation Government(1) I-NGO’s global quasi- feudal corporate society Government (2) Government (n) TGI’S & Networks e.g. UN, OECD Build trust facilitate stability, Huri coordination & harmonization Lobbying for selected HG’s or policies Selectively endorse & support CSR Compensate for selected KLMBS, to achieve valued reputation effects Ignore, partner for reputation & ideology, or monitor & disrupt Political or ideological advertising Narrow lobbying to enable increased exploitation of KLMBS sub-set of HG’s stability, contracts, negative-freedom, minimize tax globally Hyper-competitive strategy Hypercompetitive Global Capitalism
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Planned Strategy “un-realized” Strategy* Emergent Strategy “Realized” Strategy Deliberate, intentional This aspect of strategy did not work out Unforeseen changes Circumstances that strategist does not control but perhaps co-creates “Things just evolve in unpredictable ways ” “The business system is an ecology”
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Planned benefits for self un-realized outcomes emergent benefits for self & society Realized* benefits for self & society Deliberate, intentional Parts of the plan “came to nothing” Unforeseen changes Circumstances that strategist does not control but perhaps influences “Things just evolve in unpredictable ways ” “The business system is an ecology” …by pursuing self-interest man frequently promotes the interest of society more effectively than when he directly intends to promote it (as if by an invisible hand). Adam Smith 1776 * i.e. “becomes real” Invisible hand Expected costs to society Due to Exploitation of KLMBS
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Planned Benefits for self & society “un-realized” outcomes emergent benefits for self & society “Realized” Benefits for self & more for society Deliberate, intentional This aspect of the plan “came to nothing” Unforeseen changes Circumstances that strategist does not control but perhaps influences “Things just evolve in unpredictable ways ” “The business system is an ecology” …by directly intending to promote the interest of self and society man frequently does promote both quite effectively(Business Ethics) Low expected costs to society Due to compensation for KLMBS
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COMPONENTLEFT-POLERIGHT-POLE Comments KLMBS Compensate, refrain exploit Exploiting KLMBS yields market-power and generates “above normal” returns to s/h. Value-priority justice efficiency Econ.-efficiency implies aggregate wealth, so these values are like HG’s Variants stakeholder shareholder Variants of capitalism (legal, cultural) or models of strategic management (conceptual) Capitals multi-forms financial forms Human, social, ecological, cultural, moral, political, economic; Classes of equity and debt Politics econ-left econ-right Strong positions often reflect partial-knowledge, sense of identity, vague emotions Timing ethics now ethics later First get rich, then maybe give it to charity when you get old (but you won’t give enough) Co-opetition co-operation C competition D Dynamic prisoners’ dilemma games explain a lot about strategy and ethics. E.g. Tit-for- Tat Language values-based value-based There are separate (political) discourses, e.g. “Value-Based-Mgmnt” means s/h wealth- max n. Agency (resp) corporate individual Pol-left endorses CM-Resp concept (like stakeholder mod l.), right emphasizes indiv resp. Agency (rights)individualcorporate Pol-right endorses CM-Ri like right to political speech and funding. Left wants equal voices. Trust in governmentsin markets Right tends to trust markets more than governments to deliver a satisfying HG mix. Hopesenlightenment for allprosperity for self Left wants to elevate peoples’ consciousness, Right seeks personal salvation or prosperity. Passionsisothymicmegalothymic Passion for justice or for power? Plato noted the two types of character (cf. virtue ethics). Leader-styletransformationaltransactional t-form l leader inspires and changes others’ abilities; t-act l uses +/- incentives (exchanges) Focus We/the other I/the self Several psychological theories focus on this fundamental distinction (Etzioni, Piaget, Wu) Yin/Yang yinyang Female and male aspects in balance. L-R alignment is partial; yang includes “the light” ScienceEcologyEngineering Broadly, the right has an engineering view of economics; left has ecological- understanding Rate of innov n Gradual, evolvingRapid, driven Weber noted that many do not want innovation, but just want to live in their “accustomed way” Ethics theories*MOMAMFoC The partitioned ethics-set identifies and locates forms of (pol-) moral-reasoning on both sides.
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Consequentialism U + J Act-ut Rule-ut Deontology Logic based Golden rule(s) Utility-max. in markets Contractarianism Free exchange agreements Distributive justice Dialectics, Pluralism, Pragmatism Particularism, Virtue-ethics MFoC MOMA Egoism Utility-aspects Justice constraint & conditions U - J Ethic of Care Inter-dependence Attend to vulnerable Agapism (love ethic) Fiduciary- Duty & Financial- stewardship Expressive aspects of ethical-egoism Various aspects of altruism RBMHG
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FORM OR THEORYCENTRAL IDEA ConsequentialismConsider expected HG consequences of each considered action Act vs. Rule sub-formsEach decision separately vs. use util n -justified general rules. Utilitarianism without justice. seek “the greatest good for the greatest number”, OK with slavery Ethical Egoism.Best for oneself (including identity aspects & freedoms) Utility-maximization (in markets) Optimized satisfaction of participants’ preferences (good or bad). Associated with ‘let market decide’, if you ignore KLMBS. Utilitarianism with justice“Greatest good” but no-one is suffering beyond a reasonable limit. DeontologyLogic, categorical imperative: Golden rule, others as ‘ends’. Ethic of Care.Feminist, care, kindness; Balance vs. Feminist or Socialist Revol n ? Contractarianism Moral-political, free agreement & exchange, veil of ignorance, justice (difference) principle The spanning-theories Dialectics (synthesis), Pluralism (all forms), Pragmatism (inquiry), Particularism (case-by-case) Virtue-ethics (character).
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Monopolistic tendencies Distributive-Justice Ability to pay Preference vs. well-being Lack of Information Alienation Externalities LIMITATIONS Support anti-trust, assist swarm Healthy offerings Restorative offerings COMPENSATIONS Direct Indirect Direct Indirect
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