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.

1. FP&R: future-proofing and resilience2. RBMHG: reasonably-balanced mixture of the human goods

3. KLMBS: known limitations of market based systems

4. LPAMC: levers to pull to avoid mega-catastrophes5. PGMIBG: public-good missions involving business and govt

6. GEHI: the general effectiveness of human intentions

7. TBRT: table of blue vs. red themes8. MFoC & MOMA: the moral foundations of capitalism and a more-obviously-moral approach

8 REALLY IMPORTANT IDEAS IN STRATEGY & ETHICS FOR 21ST CENTURY

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

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

210020452015

Trans-humancivilization

Momentum - Trends

Trans-humanist

divide

3rd & 4th world2bn+ in squalor

Mid-centuryCanyon

Lifted 4th & 3rd worlds

Mega -cats?1st & 2nd

worlds

LeverageFactors

wealth

USA average

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

GlobalCommon

Good

Government (2)

Government (n)

TGI’S &Networks

e.g. UN, OECDBuild trustfacilitatestability, Huricoordination &harmonization

Lobby for selected HG’s & global good

Endorse & support

Co-opetition &Self-governancee.g. Global Compact

optimize tax globally

PGSIBG

Corporation

Government(1)I-NGO’s

global quasi-feudal

corporate society

Government (2)

Government (n)

TGI’S &Networks

e.g. UN, OECDBuild trustfacilitatestability, Huricoordination &harmonization

Lobbying for selected HG’s orpolicies

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-competitivestrategy

Hypercompetitive Global Capitalism

PlannedStrategy

“un-realized”Strategy*

EmergentStrategy

“Realized”Strategy

Deliberate,intentional

This aspect of strategy did not work out

Unforeseenchanges

Circumstances that strategist does not control but perhaps co-creates

“Things just evolve in unpredictable ways”“The business system is an ecology”

Plannedbenefits for self

un-realizedoutcomes

emergentbenefits for

self & society

Realized*benefits for self

& society

Deliberate,intentional

Parts of the plan “came to nothing”

Unforeseenchanges

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

Expectedcosts to society

Due toExploitation of KLMBS

PlannedBenefits for self

& society

“un-realized”outcomes

emergentbenefits for

self & society

“Realized”Benefits for self

& more for society

Deliberate,intentional

This aspect of the plan “came to nothing”

Unforeseenchanges

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 expectedcosts to society

Due tocompensation for KLMBS

COMPONENT LEFT-POLE RIGHT-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-maxn.

Agency (resp) corporate individual Pol-left endorses CM-Resp concept (like stakeholder modl.), right emphasizes indiv resp.

Agency (rights) individual corporate Pol-right endorses CM-Ri like right to political speech and funding. Left wants equal voices.

Trust in governments in markets Right tends to trust markets more than governments to deliver a satisfying HG mix.

Hopes enlightenment for all prosperity for self Left wants to elevate peoples’ consciousness, Right seeks personal salvation or prosperity.

Passions isothymic megalothymic Passion for justice or for power? Plato noted the two types of character (cf. virtue ethics).

Leader-style transformational transactional t-forml leader inspires and changes others’ abilities; t-actl uses +/- incentives (exchanges)

Focus We/the other I/the self Several psychological theories focus on this fundamental distinction (Etzioni, Piaget, Wu)

Yin/Yang yin yang Female and male aspects in balance. L-R alignment is partial; yang includes “the light”

Science Ecology Engineering Broadly, the right has an engineering view of economics; left has ecological-understanding

Rate of innovn Gradual, evolving Rapid, driven Weber noted that many do not want innovation, but just want to live in their “accustomed way”

Ethics theories* MOMA MFoC The partitioned ethics-set identifies and locates forms of (pol-) moral-reasoning on both sides.

FORM OR THEORY CENTRAL IDEAConsequentialism Consider expected HG consequences of each considered actionAct vs. Rule sub-forms Each decision separately vs. use utiln-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.Deontology Logic, categorical imperative: Golden rule, others as ‘ends’. Ethic of Care. Feminist, care, kindness; Balance vs . Feminist or Socialist Revoln?

ContractarianismMoral-political, free agreement & exchange, veil of ignorance, justice (difference) principle

The spanning-theoriesDialectics (synthesis), Pluralism (all forms), Pragmatism (inquiry), Particularism (case-by-case) Virtue-ethics (character).