Session 1 - What is Ethics Slideshow

Kondo (1990) gives a vivid account of everyday life on the shop floor of a small family-owned sweet factory in Tokyo… she is sent to an ethics school with two other employees… Here is a brief description of the activities before breakfast each day. The day started at 5 am with a call to rise. Waking up late was regarded as unnatural, indulgent, selfish, slovenly. Cleaning came next and was a standard ingredient of spiritual education. Each cleaning task was to be performed with a glad heart. The counsellors would lead the group in chants of ‘Fight!’ as they hosed down the toilets, emptied the tins of sanitary napkins, and scrubbed the floors. After cleaning they jogged to the statue of the founder and after a rousing shout of good morning, they were lectured on an inspirational theme. A tape recorder played the national anthem as the flags were raised. They then had shouting practice where they were required to scream greetings at the top of their voices or shout ‘I am the sun of ‘x’ company. I will make ‘x’ company number one in Japan.’ Every word was rewarded by shouts of encouragement from the others and rounds of applause. The idea was to inculcate receptiveness and a willingness to greet and appreciate others and eliminate resistance toward responding positively towards authority. They ran for at least 1.5 miles as a rehearsal for the 7.5 kilometre marathon scheduled for the end of the programme. Shouting and chanting was required during running. Speed was not the issue, it was more important to finish and not give up. Neglect of the body was seen as lack of appreciation of the gift of life. Ritual ablution ceremonies with cold water, in order to give thanks to water, followed… morning classes were for reciting in unison phrases like ‘Hardship is the gateway to happiness’ and ‘Other people are our mirrors’. Students would be given instructions on how to bow at the proper angle, have a pleasant facial expression, and use the appropriate language level.

F. Wilson 1999, Organizational Behaviour: A Critical Introduction, Oxford: 143

In small groups, discuss this approach to education. Does it teach ‘ethics’? Is it ‘ethical’?

Nonwhites in South Africa are rightless persons in the land of their birth… the [black South African] cannot vote, cannot own land, and may not have his family with him unless he has government permission… by investing in South Africa, American companies inevitably strengthen the status quo of white supremacy… the leasing of a computer, the establishment of a new plant, the selling of supplies to the military all have political overtones…

The management of Caltex, however, did not feel that it should stop selling petroleum products to the South African government nor that it should leave South Africa. The company acknowledge that its operations provided a strategic resource for the racist South African government. Nevertheless, the company claimed its operations ultimately helped black South Africans, particularly the company's own black workers toward whom the company had special responsibilities. Opposing one of the many resolutions that stockholders repeatedly put forward, Caltex’s managers stated:

Texaco believes the continuation of Caltex operations in South Africa is in the best interest of employees of all races in South Africa… in management opinion, if Caltex was to withdraw from South Africa in an attempt to achieve political changes in that country, as the proposal directs, such withdrawal would endanger prospects for the future of all Caltex employees in South Africa regardless of race. We are convinced that the resulting dislocation and hardship would fall most heavily on the nonwhite communities. In this regard, and contrary to the implications of the stockholders, Caltex employment policies include equal pay for equal work and the same level of benefit plans for all employees as well as a continuing and successful programme to advance employees to positions of responsibility on the basis of ability, not race.

Among those who vigorously supported the resolutions asking American companies to leave South Africa was Desmond Tutu. To say that American companies should stay in South Africa because they pay higher wages and provided an economic benefit, Tutu said, was to, "… attempt to polish my chains and make them more comfortable. I want to cut my chains and cast them away."

In what ways can the following five ethical systems be used to argue the case of Caltex in South Africa?

a) Utilitarian argument(s)

b) Argument(s) based on notions of Justice

c) Argument(s) based on Rights

d) Ethics of Care

e) An Ethic of Virtue

Who are the stakeholders in this situation? What might be argued from each of their different perspectives?

Is it appropriate for a company to become involved in political matters?

What is the ‘business case’ for Caltex pulling out of South Africa?

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