Treatises on Ethics
Ethis as the foundation of the humanistic company
2 April 2024
It is essential to understand the vital role ethics plays in business. But to do so, one must first understand what ethics is and what it is for, in order to better grasp how it can be applied to business management and what advantages it offers.
Ethics is a branch of philosophy that studies human behaviour from a moral standpoint. This nuance is important, as studying human behaviour through the lens of other disciplines—such as psychology—will lead to entirely different conclusions. Ethics concerns itself with whether an action is good or bad, rather than with the psychological or emotional motives behind decision-making.
Looking at its etymology, ethics derives from the Greek word ethos, meaning character or custom. Ethics relates to how we habitually behave—habits that, over time, shape our character. Those habits that are well-directed are known as virtues, while those that lack a meaningful ethical aim are called vices.
Ethics is primarily a practical form of knowledge; knowing the concept of justice does not make someone just. To become just, one must practice justice and turn it into a habit.
Ethics is an eminently practical knowledge. Knowing the idea of justice does not make a person just; to achieve this, one must practice justice and make that virtue a habit.
Ethical habits of conduct are acquired; they are not innate. It is a matter of “training” to acquire them. This requires the will to decide how we want to be.
It is important to understand that ethics becomes tangible in practice, as this quote explains: “The only way to make ethics real is for people to willingly put it into practice” (Hortal, 2017, 26).
Ethics is also characterized by its voluntary nature; it cannot be imposed. Freedom is the foundation of ethics. No one can be forced to be virtuous; they can only be invited to become so:
“The law commands an action, and in the case of rebellion, it imposes it coercively, but in the moral sphere, unlike the legal sphere, it would be futile to order someone to be virtuous: good is not imposed, good is invited..” (Gomá, 2019, p. 37)
Ethics and Business
We live in a society built on organisations, and if we want to create a better society, we must necessarily transform those organisations. The impact companies have on society will depend on their ethical management. One cannot speak of trust without bringing into the conversation one of the central concepts of 21st-century management: reputation.
The way one defines a business is the first step. It is not the same to understand a company as a community of people as it is to view it as a network of contractual relationships.
One of the great advantages ethics offers businesses is its ability to build trust, something that is crucial for business survival. The trust of stakeholders is what gives companies the legitimacy to operate and carry out their activities.
“Reputation is the paradigm of a good company.” (Villafañe, 2013, p. 5).
Reputation harmonises profit with ethics and sustainability.
It is a mistake to believe that an organisation can behave ethically without the ethical development of the people within it—without the cultivation of virtues. Ethics is enacted by individuals, and through them, it becomes embedded in the company. Companies can become true “schools” for the development of personal virtues. It’s about finding a balance between personal responsibility and corporate responsibility.
As Argandoña states: “…a good company must be an ethical company, and a manager cannot be excellent if he or she is not ethical.” (Argandoña, 2014, 4)
Our professionals—and especially our leaders—must develop and nurture virtues. Leading by example is, without doubt, an essential trait of the ethical manager or leader.
Training in Ethics
Ethics is often sidelined in our society—and in both the educational and business spheres—because it demands effort, self-control, and temperance. These are terms associated with mental fortitude, and they have all but disappeared from our everyday vocabulary. Ethics demands willpower because it is about instilling habits, as previously mentioned. It is not about conforming to an ideal model of person or society, but rather embracing a set of “universally consensual values” (Camps, 1993, p. 15). These universal values are the product of 25 centuries of philosophical thought and form the foundation of the Universal Declaration of Human Rights (1948).
Training business professionals in these “ethical ideals” can greatly contribute to building better companies, the companies that society needs.
Bibliography
Argandoña, A. (2014). La ética en la empresa y la ética del directivo. Boletín de Estudios Económicos, Vol. 69, No. 211, pp. 9–24.
Cortina, A. (1994). Ética de la empresa. Claves para una nueva cultura empresarial. Palencia: Simancas Ediciones.
Gomá, J. (2019). Dignidad (Gutenberg Ed.). Barcelona.
Hortal, A. (2017). Ética, conocimiento moral. Madrid: Universidad Pontificia Comillas de Madrid.
Villafañe, J. (2013). Propuesta para una Teoría de la Reputación Corporativa. Madrid: Pearson.
