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1. Issues in Social and Environmental Accounting
Vol. 1, No. 2 December 2007
Pp 199-216
Towards an Ethical Framework Grounded in
Everyday Business Life
Gabriel Donleavy
Faculty of Business Administration
University of Macau, China
Abstract
Business is increasingly concerned to reconcile investor driven pressure to perform with state
driven pressure to conform (to a cascade of new regulation). Ethics generally favors the latter at
the expense of the former. The ethical frameworks developed in the last few years differ from
their classical predecessors, however. Integrative Social Contract Theory begins with the busi-
ness contract and moves out from there to the wider society. Care theory begins with the rela-
tionship between two individual persons and moves out from there. Both theories are skeptical
of the Universalist claims of classical ethical and religious frameworks and both claim to be
user friendly. This paper compares and contrasts the two theories and hopes to show how the
ethical lacunae in ISCT can be fixed by Care Theory. How a business would operate under the
sway of Care Theory is described. Fears that Care Theory cannot be applied to business without
weakening competitive strength are addressed. The paper is offered as a step towards merging
ISCT and Care Theory to evolve an ethical framework for business. It would be a framework
that engages fully with business realities, especially competitive realities, but that is directly
and clearly guided by classical ethical principles.
Keywords: Integrative Social Contract Theory, Care Theory, Business Ethics
1 Introduction - Market freedom prices accordingly. Free markets opti-
and ethical absolutism mally allocate scarce resources. Mo-
nopolies appropriate resources undesira-
Adam Smith (1774/2001) famously pro- bly and should be made to behave like
posed that the intervention of an invisi- firms under free competition. Other than
ble hand would transmute the general that, classical economists wish govern-
greed and self interest of players in free ment regulation of markets to be as little
markets into the beneficial effects of a as possible.
general improvement in welfare. Sellers
and buyers compete to minimize re- Political philosophers of a libertarian
source waste and markets then optimize disposition similarly wish to reduce the
Prof. Gabriel Douglas Donleavy is Full Professor of Management and Dean of Faculty of Business Administration,
University of Macau China, email: gabrield@umac.mo
2. 200 G. Donleavy / Issues in Social and Environmental Accounting 2 (2007) 199-216
role of government to the minimum nec- themselves what minimum regulation
essary to ensure adequate safety for citi- their community must have to serve eve-
zens. This is one extreme of social con- ryone’s interests. For Hobbes, that
tract theory: At the other extreme is the meant an agreement to have a govern-
implicit social contract between the state ment with a monopoly on the use of
and the privileged learned professional force, so that safety could be assured.
associations such as lawyers, doctors For Rawls (1974), it meant equality of
and CPAs. They are allowed to be self opportunity and a minimum social wel-
regulating by the state so long as such fare safety net in order to set a lower
regulation operates in the interests of the limit to permitted levels of destitution.
community. This usually results in a For ISCT, it meant different things at
plethora of very detailed regulations by different times as the theory developed
the societies.. Near this end of the spec- from its long list in 1989 to a much
trum is the subdivision of the social con- shorter list by 1994. In a later formula-
tract paradigm proposed by Donaldson tion by members of the Erasmus School
(1982, 1988, and 1990) both alone and in Rotterdam (van Oosterhout et al
with Dunfee (1994, 1995, and 2002) 2006), the list of hypernorms has be-
Integrative Social Contract Theory come almost empty, so keen are the pro-
(hereafter ISCT). It proposes that indi- ponents on avoiding external interfer-
vidual firms and entrepreneurs are ence with free contracting whether for-
bound by agreements they make with mal or informal.
each other, and that these agreements
exist in a moral free space, where no In mainstream jurisprudence, Kelsen
interference or regulation is ethically (1934/2002) invented the idea of a Basic
justified, unless necessary to enforce Norm for any society whose effect was
what they call hypernorms. Hypernorms to serve as the ultimate validating source
are generally agreed ethical constraints of all of its law. The Basic Norm may be
on contractual freedom. ISCT appeals to a written constitution, a sovereign’s de-
classical economists and libertarians, cree, the Koran or any other root agency
because it minimizes the role of state or event any particular society regards
control and general regulation, so keeps the fundamental root of its identity.
markets as free as possible within any
one country’s prevailing social and legal All Basic Norms begin with real histori-
framework. cal events or real people in power or
both. Social contract hypernorms, how-
ever, begin with imaginary states of na-
2 Absolutism and imagined states of ture giving rise to imagined agreements
nature about the content of social contract
terms. Critics, especially feminist critics
Social contract theories, such as ISCT, such as Held (1993), say this makes the
generate their hypernorms from an authority of such alleged hypernorms
imagined condition rather than a real doubtful
one. The imagined condition is a state of
nature existing before any type of con- Hypernorms are thus rooted in less solid
tract. In that state a set of rational adult foundations than jurisprudential basic
people is imagined who discuss among norms, though to them are attributed a
3. G. Donleavy / Issues in Social and Environmental Accounting 2 (2007) 199-216 201
similar legitimising and validating role is no less capable of ending up enforced
within society by ISCT. by a dictator than an ethics sourced in
total isolation and introspective detach-
ment. Religious ethics, of course, are
3 Deontological dictatorship necessarily and proudly dictatorial. Ide-
ologies, notably Communism, are quite
In contrast to social contract theory, the explicitly dictatorial, even if they say
classical ethical frameworks, such Utili- there will someday be a withering away
tarianism and Kant, or such development of the state.
paradigms as Kohlberg’s (1978, 1981,
and 1986); believe that ethical validity In sum, Universalist ethical frameworks
entails universal application. Utilitarian are susceptible to misuse by dictators
calculus is to be applied anywhere. precisely because they are Universalist.
Kant’s categorical imperative, in any of Hobbesian and Rawlsian social contract
its three formulations, also is to be ap- theories are Universalist; ISCT is not.
plied anywhere, anytime, to any one. For Business generally, and free market pro-
Kohlberg, if it was not universal, it was ponents particularly, do not readily sup-
not ethics (Gilligan 1998). The univers- port dictatorships over themselves,
alism of classical ethics sits uneasily whatever they may tolerate when it oc-
with free market advocates, as it seems curs over others.
to legitimate restraints of trade and busi-
ness by reference to axioms, norms and
beliefs indifferent to, sometimes hostile 4 Relativism as democracy: the
to, and often written centuries earlier case of ISCT
than, regular business conduct.
ISCT shares with other versions of Con-
Moreover, once a politician, religious tractarianism the belief that ethical va-
leader or regulator is convinced of his lidity requires the prior consent of the
own insight into universal ethical valid- parties. This crucial role for consent
ities, it becomes ethical for him to pre- gives it a democratic credential quite
vent behaviour inconsistent with these absent from the traditional Universalist
norms and encourage behaviour that fur- ethics. Such democratic credentials are
thers them. Dictatorship is said to be obtained through the doorway of ethical
justified to achieve the ethical ends one relativism,. For liberals and libertarians,
is sure are right. democratic credentials may be more im-
portant than the mental security obtain-
If one’s ethical framework, like Kant’s, able from Universalist ethical absolutes.
requires treating all other humans as Free marketers, Friedmanites, the Chi-
ends in themselves not means, then dic- cago School of economists and conser-
tatorship can only be justified by the vatives naturally suspicious of any grand
further belief that human nature is inca- theory may all join postmodernists in
pable of treating people that way without finding attractive the moral free space
effective legal and regulatory restraint. inhabited by ISCT. The concession to
hypernorms may be like Milton Fried-
An ethical framework such as Kant’s man’s concession that although the so-
grounded in an imaginary state of nature cial responsibility of the firm is to in-
4. 202 G. Donleavy / Issues in Social and Environmental Accounting 2 (2007) 199-216
crease its profits, nonetheless it should may imply a hypernorm, as may widely
obey the law. It seems like a concession endorsed standards such as the Universal
made to broaden the potential market for Declaration of Human Rights.
the intellectual product rather than a sin-
cere commitment. That however is much Thus, a local community's micro-norm,
less applicable to the Donaldson Dunphy supported by consent and the right to
(hereafter DD) version of ISCT than the exit, is—if it does not violate a hyper-
Erasmus School’s (van Oosterhout et al, norm—a "legitimate" norm. If norms
2006) recent adaptation of it. DD take conflict, then their reconciliation or pri-
hypernorms very seriously, are clearly oritization is facilitated by the following
committed to their crucial role within guidelines:-
ISCT but have a difficult time deciding
what the content of current hypernorms 1. Transactions solely within a single
are or should be. community, which do not have sig-
nificant adverse effects on other
The core propositions of ISCT are as humans or communities, should be
follows per Corny (1995): governed by the host community's
norms.
1. Local economic communities may 2. The more extensive or more global
specify ethical norms for their mem- the community which is the source
bers through micro social contracts. of the norm, the greater the priority
2. Norm-specifying micro social con- which should be given to the norm.
tracts must be grounded in informed 3. Where multiple conflicting norms
consent buttressed by a right of exit. are involved, patterns of consistency
3. In order to be obligatory, a micro among the alternative norms pro-
social contract must be compatible vide a basis for prioritization.
with hypernorms.
Clearly the ethical validity of micro-
DD themselves (1994: 264-65) general- norms within ISCT is strongly affected
ize ISCT thus: by what the hypernorms actually com-
A norm (N) constitutes an authentic ethi- prise.
cal norm for recurrent situation (S) for
members of community (C) if and only Donaldson (1989: 81) initially proposed
if: the idea of fundamental international
rights that limit the free decision-making
1. Compliance with N in S is ap- capabilities of international actors, in-
proved by most members of C. cluding businesses. It is interesting to
2. Deviance from N in S is disap- consider both content and the order of
proved by most members of C. priority of this list.
3. A substantial percentage (well over
50%) of the members of C, when 1. The right to freedom of movement.
encountering S, act in compliance 2. The right to ownership of property.
with N. 3. The right to freedom from torture.
4. The right to a fair trial.
ISCT holds that the convergence of reli- 5. The right to non discriminatory
gious, cultural and philosophical beliefs treatment (freedom from discrimi-
5. G. Donleavy / Issues in Social and Environmental Accounting 2 (2007) 199-216 203
nation on the basis of such charac- authority of such ‘key transcultural
teristics as race or sex.) truths’ as the idea that all humans de-
6. The right to physical security. serve respect. It inhabits a ‘moral free
7. The right to freedom of speech and space’ where economic communities
association. and nations have their own norms unless
8. The right to minimal education. those norms entail ‘flagrant neglect of
9. The right to political participation. core human values’. The minimum con-
10. The right to subsistence. tent of a global social contract is arrived
in a state of nature and comprises the
Horvath (1995) shows that, in his reply rights of individuals to voice within and
to Hodapp (1990), Donaldson (1990: exit from any group and compatibility
137) goes further: "... we will allow pro- with globally accepted hypernorms rec-
ductive organizations to operate only on ognized by religions, philosophies and
the condition that they respect rights, cultural beliefs around the world., espe-
observe standards of justice, and respect cially for businesses these three, per van
broader societal needs. Hence, tbe pro- Oosterhout et al (2006):
ductive organization is not morally enti-
tled to harm unemployed persons, nor is 1. firms should adopt adequate health
it entitled to harm unemployed persons, and safety rules for their workers
nor is it entitled to deny tbeir rigbts, to and give them the right to know the
treat them unjustly, or to damage their risks of doing any relevant jobs,
natural environment." 2. no lies should be told
3. business obligations should be hon-
DD's 1994 (p267) list of hypernorms ored in a spirit of honesty and fair-
has, however, shrunk to the following: ness.
• core human rights, including those The Van Oosterhout et al (2006:522)
to personal freedom, physical secu- writers praise contractualism’s ‘content
rity and well-being, political par- independent normative commitment,
ticipation, informed consent, the based on whatever norms institutions
ownership of property, the right to choose to live by which as a result they
subsistence; and say ‘coheres well with liberal democracy
• the obligation to respect the dignity and a system of free market exchange”,
of each human person. and they do not posit any specific hyper-
norms, only general and abstract ones.
We may wonder why there is such a dif-
ference between the two lists, so close in
time but so different differ in scope and 5 Problems with social contract
specificity. theory in general
ISCT was explained by Dunfee and There are at least three basic problems:
Donaldson (1994, 1999, and 2002) as 1) the accuracy of the descriptions of
lying midway between ethical relativism human nature,
and ethical absolutism in a way that 2) questions about the normative au-
combines individual contracts with thority of human nature, and
deeper social contracts. It recognizes the 3) whether the logic connecting human
6. 204 G. Donleavy / Issues in Social and Environmental Accounting 2 (2007) 199-216
nature to a particular form of gov- its own framework. Moreover, the
ernment is real, is sufficiently framework itself could allow cannibal-
strong, is determinative. ism, consent to being harmed, and it can
exclude large blocks of people from its
The conceptual problem is obvious; if reach (Kittay 1999).
human nature is so ephemeral that the
major theorists define it in such different Scanlon (2001) says validity of a moral
ways, then a normative architecture, right lies in whether it can be reasonably
where human nature is an ingredient for rejected so justification to self n others is
the foundation's cement, will be too bedrock of contractualism. This rules out
weak to support an ethical framework or unilateral protection of its citizens from
any social contract. their own folly.
Darwall (2006: 208) says ‘mutual ac- Darwall (2006) argues that the ground-
countability is what morality is funda- ing of morality in mutual accountability
mentally about’, but others, such as rules out state protection of citizens from
Keeley (1995) question the concept of the consequences of their own folly and
consent as a viable ethical criterion. that means negative externalities to a
Even assuming that consent is norma- contract are born by everyone within and
tively significant, why should we think outside the contract. There is no rule
that hypothetical consent has any norma- against imposing externalities in ISCT,
tive force? (Is it morally permissible for and hypernorms that do frown on such
you to take my car without asking me, conduct are conceded by Scanlon (2001)
just because I would have consented had to be deontic imports rather than part of
you asked?) contractualism’s own inner morality.
The exclusion of children has been rec-
Van Oosterhout et al (2006: 528) say no ognized by Scanlon (2001) who would
idea of contract ‘could carry normative appoint trustees able to contract on be-
force under conditions of slavery or dic- half of the contractually disabled but this
tatorship, or when processes of exchange simply creates a new field for the prob-
and social coordination are predomi- lems of fiduciary duty to grow.
nantly organized in a hierarchical and
unilateral fashion’. However, one might
counter that big business is organized in 6 Gender equality in search of a
just such a fashion in most industries in hypernorm
most jurisdictions.
To find an appropriate list of hyper-
Buss (2005) closely argues that deceit norms, DD (1994:267) offer a survey of
and manipulation can coexist with various writers, codes, and conventions,
autonomy, but it is incompatible with ultimately proposing a minimum stan-
the inner morality of ISCT. Brand- dard of review for:
Ballard (2004) argues equally closely
that contractualism can only support re- (a) Core human rights, including
strictions on behavior outside the con- those to personal freedom, physi-
tent of the contract or agreement by im- cal security and well-being, politi-
porting deontic positions from outside cal participation, informed con-
7. G. Donleavy / Issues in Social and Environmental Accounting 2 (2007) 199-216 205
sent, the ownership of property, powerless." (Rhoodie, 1989).
the right to subsistence, and Even if ISCT were still to include as
(b) The obligation to respect the dig- global hypernorms principles that favor
nity of each human person. equal authority and opportunity for
They believe that constructing a list of women in the workplace, there is, say
hypernorms, or even delineating criteria Mayer and Cava (1996), no clear im-
for their discovery, is difficult. Mayer provement over deontological ap-
and Cava (1995) note that, as a result of proaches to multinational gender equal-
this difficulty, following the prescribed ity issues. Where values are in flux and
ISCT procedure in gender discrimination in conflict, the very situations that call
cases becomes problematic. To put the for a theory of business ethics that can
legal/ethical interaction into some per- provide nuance and principle without
spective, they suggest consideration of at ethical relativism or ethical imperialism,
least three types of examples. In Type I hypernorms are likely to be needed to
examples, a company valuing gender complete the calculations in DD’s algo-
equality operates in a host country rithm. For issues of gender equality,
whose values and laws are intolerant or ISCT as yet provides neither "detailed
even hostile to gender equality. In Type normative assessment of particular ethi-
II examples, a company valuing gender cal problems in economic life" nor
equality operates in a host country "unequivocal boundaries on moral free
whose values — but not laws — are hos- space" (quotes are from DD, 1994: 279).
tile to gender equality. In Type III, a Accordingly, ISCT is not yet more de-
company not valuing gender equality tailed, flexible, or practical than standard
operates in a host country whose values normative theories such as Kantianism
and laws promote gender equality. or universal rights. It may also be seen
as not yet really ethical, as it is not yet
We cannot readily apply the hypernorm clear by which specific hypernorms,
aspect of DD's in the type II of case; a business contracting should be bound.
conflict of cultural values between home
and host country in which laws are not
clearly dominant as factors in manage- 7 Care theory fills the hypernorm
rial decision-making. We cannot do so vacuum
because of a conceptual cloudiness over
hypernorms — what they are and how Hoffman (1989) argued that justice first
we may come to know them. of all presupposes an attitude of caring, a
sense of compassion for those in a less
If there are both empirical and rational advantageous position and only secon-
origins of hypernorms, the reality of a darily is concerned with matters, rights,
global hypernorm favoring gender equality or merit. Noddings (1994) for-
equality in work settings is doubtful, mulated the first care theory framework.
since many countries appear to reject She said that traditional theories that
gender non-discrimination in work set- place justice as the foundation of moral-
tings. To use the epigram of a South Af- ity are wrong. Instead, care should be
rican apartheid era writer from her major the foundation, with justice as the super-
global survey, women throughout the structure. Ethics then is concerned with
world are largely "poor, pregnant, and relationships, not with atomistic indi-
8. 206 G. Donleavy / Issues in Social and Environmental Accounting 2 (2007) 199-216
viduals. Such feminist ethicists as Noddings
(1994) and Held (1993) saw the mother
Care theory takes as its distinctive ele- baby relationship as the foundation of all
ments an attention to particular others in ethics, because it is the historical foun-
actual contexts (Held, 1987), a focus on dation for everyone of all their subse-
the needs versus the interests of those quent relationships (the baby part that is,
particular others (Tronto, 1993), and a not the mother part). Other feminists
commitment to dialogue as the primary consider friendship as the ideal relation-
means of moral deliberation (Benhabib, ship (e.g., Baier, 1985; Code, 1987).
1992). Care may even be "not a system This relationship is voluntary, not per-
of principles, but a mode of responsive- manent, and can be equal, although it
ness" (Cole and Coultrap-McQuin, often is not. It seems to be a better
1992). model for real-world relationships, par-
ticularly among stakeholders: but other
According to Noddings (1994), people relationships also exist in the real world,
naturally privilege their family members notably relationships of convenience or
and friends in making decisions. She necessity that may not be modeled well
wants us to move beyond that immediate by friendship.
circle to care for others who are related
to us either through our intimates or A problem with some feminist writing
through some role we play—for exam- on care theory (e g Gilligan 1982) is that
ple, at work. Noddings sees relation- it often seems to place caring and justice
ships, and thus caring, as not stopping in opposition to each other. Tong (1993)
even with everyone we know. Instead, argues that caring and justice are not
we are even to care for those with whom opposed but complementary attributes of
we have no present relationship, merely the good society: both are necessary but
an anticipated hypothetical relationship. not sufficient.
Noddings defends herself against the
charge of ethical relativism by arguing However, care as a source of ethics faces
that a caring attitude is universal, indeed the difficulty of compatibility with com-
that it is fundamental to all humans. petitiveness. MacIntyre (1984: 254)
However, she rejects universal laws, quoted by Dobson (1996) argues that
saying that ethics is about concrete, par- "..the tradition of the virtues is at vari-
ticular relationships, not abstract con- ance with central features of the modem
cepts like the good of society. economic order .." Specifically, Macln-
tyre isolates three "central features of the
Moral dilemmas for Noddings are not modern economic order" that exclude it
individual but relational, not a mono- from the virtues. These are
logue but a dialogue, because each "individualism ... acquisitiveness and its
moral dilemma will involve a relation- elevation of the values of the market to a
ship and thus affect all people involved central social place". However, just as
in that relationship. Consensus is the individuals may reach the limit of their
goal of all those engaged in dialogue care capacity at the front door, so com-
regarding moral dilemmas. Above all, pany people may not need to care so
we are not to cause anyone pain or sepa- much about competitors as about stake-
ration. No good is worth that. holders, but such limits are quite consis-
9. G. Donleavy / Issues in Social and Environmental Accounting 2 (2007) 199-216 207
tent with care theories approval of care Noddings views general mission state-
intensity diminishing as relations are ments claiming to care as representing
more remote. More specifically, care only a "verbal commitment to the possi-
theory provides a possible decision rule bility of care" (1994:18). The quality of
for the firm that wants to apply the care particularity is essential—caring lives in
concept to its interactions with stake- the relationship between me, an individ-
holders:-"I will privilege those with ual, and you, another individual. With-
whom I have a close relationship." This out this particularity, the caring connec-
is not necessarily a relativistic rule. tion is lost and we must re-label the new
Relativism concerns a rule that is process: no longer "caring", it becomes
adopted by a particular individual or "problem-solving", in Nodding's termi-
society as applicable only to that indi- nology. “The significance of the differ-
vidual or society. The quoted relational entiation between caring and problem-
rule would be applicable universally. solving goes far beyond semantics. The
What is necessary from Noddings' point process of defining generalized
of view is that harm not be caused at "problems" and decoupling these from
all—but this seems impossible to fulfill the lived experiences of individuals who
in real life. What Burton and Dunn we see ourselves as having relationships
(1996) propose instead is a hybrid ap- with, risks two outcomes antithetical to
proach, recommending that special at- care. The first is the loss of particularity
tention be given to the least advantaged and resulting dehumanization of the in-
members of the moral community. Fol- dividuals in need.”(Liedtka 1996). Fer-
lowing Rawls (1971), the principle guson (1984) has argued that bureauc-
would then read, "Care enough for the racy is antithetical to the ability to care.
least advantaged stakeholders that they The rules in a bureaucracy become, over
not be harmed.” time, the ends rather than the means.
Thus, caring, even for the customer or
In the ethic of care, the focus is the con- client, is subordinated to perpetuation of
crete needs of particular individuals. It is the organization in its current state. Fi-
the conduct of daily life, lived for the nally, Ferguson asserts that openness,
most part with long intervals in between which is central to caring, is impossible
the kind of moral dilemmas that have to sustain in a bureaucracy, as it threat-
dominated business ethics discussions, ens the status quo that the structure lives
that is its arena (Liedtka 1996). It places to protect.
less emphasis on the exercise of free will
and choice, and more on recognizing the It is only in the process of personally
moral demands ever-present imposed engaging with the particular other that
upon us (Scaltsas, 1992). Though this we gain the specialized knowledge of
lack of interest in prescribing moral so- their context, history, and needs that per-
lutions has raised questions as to the mits us to fully care for them on their
adequacy of care as a moral theory terms, rather than ours (Benhabib 1992).
(Koehn, 1995), it suits well the realities Herman (1993) has noted, in her explo-
of corporate life, which are often about ration of Kant's duties for benevolence
that which is required, rather than that and mutual aid, that the focus here, as
which is chosen. there, is not on pursuing one's ends/or
them, it is on enhancing their capability
10. 208 G. Donleavy / Issues in Social and Environmental Accounting 2 (2007) 199-216
to pursue their own ends. If, as Flanagan Clement (1996)’s earlier grounding of a
(1982) states, the "motor of cognitive general care duty in our not quite so
development is contradiction, caring readily evident fact of our condition of
may well be comprised more of "tough general vulnerability to others. Baier
love" than of indulgence. Bateson ob- (1985) said what makes us human is the
serves (1990:155): "The best care-taker care we receive from others and that all
offers a combination of challenge and unhealthy and sociopathic behavior
support...To be nurturant is not always could be traced back to a deficiency of
to concur and comfort, to stroke and flat- care. Kittay (1999) asserts that society
ter and appease; often, it requires offer- would cease to exist altogether if nobody
ing a caring version of the truth, cared for anyone else;- the implication
grounded in reality. Self-care should being that care is a general duty because
include the cold shower as well as the society must self-evidently be sustained.
scented tub. Real caring requires setting Fineman (2004, 48) agrees and focuses
priorities and limits. Even the hard on ‘caring for’ rather than caring about
choices of triage have their own tender- in her assertion: “It is caretaking labor
ness." that produces and reproduces society.”
Self-care, Gilligan (1992) argues, is a
precondition for giving morally mature 8 Care as parentalism
care to others. Similarly, bereft of a
strong regard for particularity, commu- The replacement of the universalist fa-
nities can smother difference and subju- ther of classical ethics by the caring
gate those in need of care. The develop- mother of feminist care theory carries
ment process evolves out of the aspira- the danger of failing to respect the indi-
tions and capabilities of the cared for, viduality of the other party. Brock
rather than being driven by the needs (1996) reviews how Kultgen (1995) pro-
and goals of the care-giver. Gilligan poses safeguards against this.
(1982) is supported in the above by
Tronto (1993) and Slote (2000), though For Kultgen, there is some appropriate
self care obviously becomes self indul- form of caring which manifests itself in
gence when in excess. Caring is neither parents caring for children, and this
a positive nor negative attribute but in- should serve as a model for other con-
stead forms part of a subjectively experi- texts.
enced relationship, which may be used
both to control and/or to empower others Kultgen's definition of parentalism is
(Chodorow 1978, Court 1994). this:
Call the parentalistic agent, P, the
Engster (2005) attempts to ground a gen- subject acted on, S, and the paren-
eral paradigm on the basis of care theory talistic act, A. Then: Action A is
by extending the work of such writers as parentalistic if and only if (a) P be-
Fineman (2004) and Kittay (1999), who lieves that A is an intervention in
had grounded their own assertion of a S's life; (b) P decides to perform A
general duty of care on the evident fact independently of whether S author-
of our general inter-dependency. They in izes A at the time of the perform-
turn had developed their view from ance; (c) P believes that A will con-
11. G. Donleavy / Issues in Social and Environmental Accounting 2 (2007) 199-216 209
tribute to S's welfare; and (d) P per- on S independently of her consent):
forms A for this reason. An action P may be justified in promotive paternal-
is parentalistic if it is an interven- istic intervention in the affairs of S in
tion in a subject's life for his benefit situation C, when both the following
without regard to his consent. conditions are met:
(Ml). P has special responsibilities to
He offers us a principle for evaluating care for or promote S's well-being
when parentalism is justified. His in certain ways, W, in situations
"Principle of Parentalism" is this: such as C.
Persons are justified in acting parentalis- (M2). S is sufficiently vulnerable, de-
tically if and only if they believe that the pendent, incompetent or ignorant
expected value of the action for the re- so that S's well-being is unlikely to
cipient is greater than any alternative be promoted in ways, W, if P does
and they have reason to trust their own not intervene, particularly in situa-
judgment despite the opposition of any- tions such as C.
one, including the recipient.
Thus any vacuums in the ISCT hyper-
The potential for ‘nanny style’ dictator- norms could be filled by parentalistic
ship is evident in the above, and Brock intervention in specific contexts (and so
(1996) proposes limitations to result in not ground any new general restrictions),
what she styles ‘the appropriate care but such interventions would breach
view” ISCT’s key requirement of consent. Care
theory and ISCT are in head on conflict
For Protective Paternalism (i.e., inter- over the status of consent, and it is out-
vention which aims to protect S from side the scope of this paper to discuss
harm independently of her consent): the significance or curability of this con-
flict.
P may be justified in protective paternal-
istic intervention in the affairs of S in
situation C, when both the following 9 Effects of a care theory framework
conditions are met: on business conduct
(TI). Great harm is likely to ensue to S Corporate behaviour guided by the prin-
from non-intervention in situation ciples of care theory would manifest like
C. (The greater the harm, or the a refinement of the well known Theory
more irrevocable effects of that Y, itself a humanization of the widely
harm are likely to be, the more practiced and bottom line driven Theory
justified the intervention, ceteris X.
paribus.)
(T2). S does not know that grave harms “If we think of ourselves as deeply and
are likely (or does not understand involuntarily connected, and we care
what that entails) for S in situation about each other's survival more than
C. our own, how do we approach corporate
downsizing? If we expect our work re-
For Promotive Paternalism (i.e., inter- lationships to move predictably from
vention which aims to bestow benefits initial dependence through increasing
12. 210 G. Donleavy / Issues in Social and Environmental Accounting 2 (2007) 199-216
independence to separation, how does customers' needs.
that influence our hiring, training, and
promotion practices? If we value nurtur- Expertise will be shared and individuals
ing, encouraging, and empowering as will be teachers of some things and
managerial skills, how should we struc- learners of others simultaneously, as
ture managers' compensation? If we individuals are constantly stretched to
value competitive striving and ranked develop their talents. Contrary to the
achievements at a particular stage of image of sentimentality often attached to
employee development, what are the the notion of care, "tough love," as noted
appropriate measures and rewards? How previously, may be a more apt descrip-
can we create an assessment instrument tion. Caring organizations will need to
that fosters healthy competition, but also be as tough-minded and results-oriented
recognizes and celebrates the unique as any other organization. It will be their
strengths of individual contribu- methods and aspirations that distinguish
tors?” (Derry, 1999) them, not their lack of attention to out-
comes. The values of mutual respect,
Liedka’s (1996) Table below shows the honesty, and patience will be its founda-
distinctions between the attitudes and tion. Similarly, there must be clear
behaviors she finds embedded in the boundaries around each individual's and
transactional focus of the market mecha- each organization's responsibility to
nisms versus the relationship-based care. Such focus is necessary to avoid
processes of care (see the next page). overwhelming the care-giver with re-
sponsibilities that exceed his or her emo-
If caring organizations cannot be bu- tional, intellectual, and physical capacity
reaucracies, they have to nonetheless be to care.
coherent. Because the concept of reach
is partially a function of decision-
making scope, the architecture of the 10 Conclusion – Building the Union
organization would need to be highly of Bottom Up or Grounded Busi-
decentralized. It would entail the crea- ness Ethics
tion of a network of connections, where
the focus was on the relationships be- Kant argued, "The basis of obligation
tween individuals, rather than the posi- must not be sought in human nature or in
tion of "boxes" in a hierarchy. Iannello the circumstances of the world in which
(1992) has reported on similar efforts at [man] is placed, but a priori simply in
"de-alienating the workforce," by putting the concepts of pure reason." (Abbott
"meaning and values back in jobs." 1909:389). Despite its starting from such
Engagement, based on Kahn's work a different place from Kant, “ an ethic of
(1990), is itself the product of meaning- care is clearly consistent with the 2nd
ful work, a safe environment and the formulation of the Categorical Impera-
availability of resources. In this world, tive to always treat persons as ends, and
organizational members at every level not merely means. Interpreting this
need to be strategic thinkers, who under- within an ethic of care, however, would
stand the organization's purpose and its require that we recognize and treat each
capabilities, as they respond to ever- person as a concrete, rather than a gener-
changing opportunities to better meet alized other” (Benhabib, 1992).
13. G. Donleavy / Issues in Social and Environmental Accounting 2 (2007) 199-216 211
Role Business as Market Business ad Caring
Transaction Relationship
Customer Ancillary: Process is driven Primary: Process is driven by the
by organization’s need to organization’s desire to attend care-
sell its solution to some fully to customer’s self-defined
identified set of problems. needs and aspirations and facilitate
These come with customers their achievement.
attached.
Employees Expendable/Replaceable: Primary: Developing members of a
Their labor is purchased at community of mutual purpose and
market rates in order to pro- linchpin that creates the organiza-
duce and sell organization’s tional capability set and connects it
solutions. with customer needs.
Suppliers Interchangeable: Interested Primary: As partners in the process
in selling their solutions as of attending to end uses in the value
input into the production of chain that we share, they attend to
next downstream product. us and make possible our customers
As their customers, our firm focus.
is ancillary to their purpose.
Organization and Senior Primary: To plan, supervise, Supporting: To Create a caring
Management control, and monitor the context and systems which provide
processes of production and resources and decentralized author-
selling to ensure quality and ity that enables employees to care
efficiency. for customers.
Shareholders Primary: As owners of the Supporting: As members of the
business, their interests, in workplace community, they pro-
the form of profits earned, vide capital that facilitates the proc-
dominate decision-making. ess of meeting the needs of other
stakeholders. Their needs are met
as project succeeds.
ently-that is, drawing on the local and
Both ISCT and Care Theory are partici- particular to inform the search for shared
pative rather than detached. To the ex- understandings and traditions rather than
tent that this entails relativism in some start with the universal and assume one
sense, taking a non-universalist ap- has what is necessary. Indeed, embrac-
proach need not entail rejection of Kant- ing a non-universalist position need not
ian moral norms. Nor does it require that entail the rejection of international hu-
we conclude they have no importance in man rights or other cross-cultural moral
the quest to expand international coop- norms (Wicks, 1998). However, there
eration. Instead it means one should ap- appear to be three key differences in tak-
proach and develop these norms differ- ing a non-universalist vantage point.
14. 212 G. Donleavy / Issues in Social and Environmental Accounting 2 (2007) 199-216
First, there is a greater skepticism and relativism into a general theory in the
scrutiny brought against any candidate. following manner. Because resources of
Second, more attention is paid to the money, time and energy are limited, care
details of any alleged convergence in effort has to be allocated according to
moral understanding to ensure that, for some sort of priority schema. It is rea-
example, the language of rights and the sonable and efficient for us to care more
content a given right may embody is for those especially dependent on us
truly shared. And third, ethicists would such as our intimate family. This in-
approach this task from within given cludes a primary duty to care for our-
traditions or cultural contexts to arrive at selves enough to prevent us becoming an
these notions rather than relying on a unnecessary burden on others. This
theoretical argument to generate them ‘universal principle of partiality’ is the
(i.e., more inductive or dialectical rather core of Engster’s general care theory
than purely/primarily deductive). project. It means each person should
care primarily for her/his intimates and
Held (1993:195) says social contract dependants because generally that will
theories of a Rawlesian or Hobbesian distribute care resources most effectively
type which begin with independent man across society. As for those left out and
in a state of nature are wrong, since such uncared for by their intimates, they be-
a state of nature is quite impossible and come the responsibility of everyone.
therefore cannot validly serve as a start- However, he does not say how resources
ing point for any theory, positive or nor- can consistently, fairly or effectively be
mative, of human nature, inasmuch as allocated to such unfortunates whose
any so called independent men would numbers may be rather large and in-
have begun life as babies dependent on creasing over time.
mothers. Folbre (2001) applies similar
criticisms to market and contractualist Let us end this article with a quote from
based morality paradigms, saying that Solomon on the ethical executive to
productive labor and entrepreneurs first show what the essential contribution of
have to be bred and raised, and someone care theory to corporate life would be,
has to care enough to make that happen. even though Solomons himself is a vir-
Finally from this perspective, Kittay tue ethicist not a care theorist.
(2001:535) says the duty to care should
be seen as a “categorical imperative… “An executive who is forced to fire
derivable from universalizing our own someone, a military commander who has
understanding that were we in such a to order men to their death may well feel
situation, helpless and unable to fend for and ought to feel distress because, while
ourselves, we would need to care to sur- doing their duties, they also feel com-
vive and thrive.” Engster (2005) won- passion. At such times, it is good to feel
ders if there exists a basic human right to bad, and to avoid the pain is. in some
obtain care when it is needed, on the sense, immoral. Thus when the execu-
grounds that the such a right is a prereq- tive pleads that 'it's just a business deci-
uisite of human survival, survival being sion' or the commander insists that 'it's
taken to be a self evident basic good. nothing personal' we can recognize in
From here he ingeniously proceeds to their detachment a kind of moral 'bad
make Care Theory’s particularity and faith.' So much for the 'wisdom' that says
15. G. Donleavy / Issues in Social and Environmental Accounting 2 (2007) 199-216 213
that "you shouldn't take it personally." Ethics, Vol. 115, No. 2, January
195-235
Taking it personally is what converts a Chodorow, N. (1978) The Reproduction
difficult or distasteful action into an ac- of Mothering: Psychoanalysis
ceptable one”. (Solomon 1998) and the Sociology of Gender.
Berkeley: University of Califor-
nia Press.
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