Transparency - Risk To The Business Or Not

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Kate Carruthers

Discussion of issues related to transparency for business at the Social Business Summit Sydney http://bit.ly/c6hA5E

TransparencyRisk to the business or not? Kate Carruthers Social Business Summit Sydney March 2010 1 www.katecarruthers.com | © Kate Carruthers 2010

www.katecarruthers.com | © Kate Carruthers 2010 2 So what?

an open society … Ensures that political leaders can be overthrown without the need for bloodshed Where individuals are confronted with personal decisions as opposed to a “magical or tribal or collectivist society” Source: Karl Popper "The Open Society and Its Enemies, Volume One", Routledge (1945, reprint 2006), chapter 10 part I

these are not the same thing…

5 “Transparency doesn't magically make organizations more egalitarian and flat; it makes the asymmetries of power and hierarchy more visible.” Source: Michael Schrage http://blogs.hbr.org/schrage/2010/03/is-honesty-the-best-policy-in.html

asymmetries of power …

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Discussion Board (1): Very Good Answers (495) When Tocqueville refers to the principle of interest, he means that in the pursuit of personal interests, the countryman understood that there is some virtue understood in devoting small acts of service for the good of the State and society. When Tocqueville says that the principle of interest, rightly understood, as man’s remaining defense against themselves, he presents this as a defense against egotism. According to Tocqueville, egotism is “…the passionate and exaggerated love of self, which leads a man to connect everything with his own person.” (618) Egotism, as a result of the equality of conditions, acts destructively toward all personal and public life and promoting the love of one’s self. Tocqueville understood the dangers of egotism and that if “if the members of a community, as they become more equal, become more ignorant and coarse, it is difficult to foresee what pitch of their stupid excesses their egotism may lead them.” (646) Thus the principle of interest, rightly understood, acts to deter egotism because it leads and directs man in balancing acts of self-interest with small acts of sacrifice. The system of the jury is one of the best examples in which the principle of self-interest rightly understood is exercised. The jury allows people to exercise their small acts of sacrifice for the State and encourages participation and involvement because since the jury is not under the authority of the State, it directs collaboration and the interaction of opinions. According to Tocqueville, “it [the jury] makes them[man] all feel the duties which they are bound to discharge towards society, and the part which they take in the Government.” (331) With the jury, man thinks not only on the ramifications of his own actions, but must face the ramifications of others, bringing the same judgement he has on himself, onto others. Thus, a jury member becomes responsible in influencing and in turn is influenced through the exercise of power, judgement and thought when serving on the jury. As such, Tocqueville believes that “…the jury, which is the most energetic means of making people rule, is also the most efficacious means of teaching it to rule well.” (333) The principle of self-interest rightly understood can also be seen in how political associations are formed. “A association unites the efforts of minds which have a tendency to diverge in one single channel, and urges them vigorously towards one single end which it points out.” (220) The power of association is that it brings together people for a common goal of the simplest undertaking. The connection Tocqueville makes is that since all citizens in democratic nations are independent and feeble “… they eventually all fall into a state of incapacity, if they do not learn voluntarily to help each other.” (629) Thus, associations are unique because they allow the participation and promotion of individual self-interests with those who share the .

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1. TransparencyRisk to the business or not? Kate Carruthers Social Business Summit Sydney March 2010 1 www.katecarruthers.com | © Kate Carruthers 2010

2. www.katecarruthers.com | © Kate Carruthers 2010 2 So what?

3. an open society … Ensures that political leaders can be overthrown without the need for bloodshed Where individuals are confronted with personal decisions as opposed to a “magical or tribal or collectivist society” Source: Karl Popper "The Open Society and Its Enemies, Volume One", Routledge (1945, reprint 2006), chapter 10 part I

4. these are not the same thing…

5. 5 “Transparency doesn't magically make organizations more egalitarian and flat; it makes the asymmetries of power and hierarchy more visible.” Source: Michael Schrage http://blogs.hbr.org/schrage/2010/03/is-honesty-the-best-policy-in.html

6. asymmetries of power …