Peter Whates (editor). BSI Business Information. 234 pages. £40. Paperback.
Martin Luther King’s observation that ‘the law can’t make a man
love me’ is a sage truth for the world of business ethics, as this
collection of 13 essays is at pains to point out.
Phil Rudolf makes that view abundantly clear in an excellent opening
chapter on the experience of ethics legislation in the US, arguing that
rules create a tick-box mentality at best and a temptation to cheat at
worst.
Much of what follows is therefore devoted to picking over the body of
alternative ‘soft’ regulatory initiatives that have emerged in place of
the statute book. While too many chapters veer towards directory-style
lists or overly theoretical argument, one of the main strengths of the
book is its scope. Editor Peter Whates has carefully selected the
authors so as to bring perspectives from the multilateral, regional and
national levels, as well from across the sectoral divides.
But the temptation of business ethicists is often to concentrate on
their theories and processes instead of the facts on the ground. The
general paucity of practical company case studies in this volume
underlines that failing, with the one exception being Justin O’Brien’s
informative chapter on Citigroup.
So why do measures to improve business ethics, be they voluntary or
mandatory, so often fail? In part, the book argues, the obsession with
quarterly returns provides a poor breeding ground for corporate angels.
The decision to devote three chapters to ethical issues in financial
markets is therefore well justified. In equal part, however, many
business people slide towards the easy, rather than the ethical,
option. Chapters on the teaching of ethics in business schools indicate
how this might change.
This book, however, makes clear that the benefits of ethical business
practice are not yet sufficient to jettison a rules-based
framework. The law might not inspire a man to virtue, but, as King
pointed out, ‘it can stop him from lynching me, and I think that’s
pretty important.’
Oliver Balch
