STAYING TRUE: WHEN SHOULD INDIVIDUAL AND CORPORATE VALUES EVOLVE? ANDREW JOHN ASSOCIATE DEAN | FACULTY ASSOCIATE PROFESSOR OF ECONOMICS (andrew.john@mbs.edu)
US Constitution, Article 1, Section 2, Clause 3 Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers 2
US Constitution, Article 1, Section 2, Clause 3 Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers, which shall be determined by adding to the whole Number of free Persons … three fifths of all other Persons. 3
What were they thinking? Slavery Stolen generations Racist attitudes Sexist attitudes Opposition to same‐sex marriage Opposition to LGBTI rights 4
Evolving values Our values clearly evolve – Slavery was originally accepted – Then it was proscribed – Now we have learned that it is unethical So how does this happen? Just as importantly, when should it happen? 5
The arc of the moral universe bends towards justice “I do not pretend to understand the moral universe, the arc is a long one, my eye reaches but little ways. I cannot calculate the curve and complete the figure by the experience of sight; I can divine it by conscience. But from what I see I am sure it bends towards justice.” ‐Theodore Parker (1853) Well, maybe 6
Your mission, should you choose to accept it I have been set a major challenge – When should our values and principles change? – When should you stay true to your own principles? – When do principles and values themselves stay true? 7
When my information changes “When my information changes, I alter my conclusions. What do you do, sir?” ‐ John Maynard Keynes (maybe) 8
When my information changes “When my information changes, I alter my conclusions. What do you do, sir?” ‐ John Maynard Keynes (maybe) What is the equivalent in the moral domain? 9
The wisdom of crowds In the field of decision‐making, we know there are occasions when it is beneficial to aggregate individual information – Most particularly, if there are independent and unbiased errors 10
The wisdom of crowds in a moral universe How might we apply this idea to morality and ethics, to values and principles? 11
Distributed moral experience Look to the wisdom of others … if they bring independent judgment and new information 12
Distributed moral experience Look to the experience of others … if they bring independent judgment and new information Everyone else Everyone else Liberal metropolitan Support for and elite opposition to same‐sex marriage in the 1980s 1990s 2000s Today U.S Older Americans, Alabamans Everyone else Southerners, Evangelical Protestants African Americans (Conservative) Republicans Evangelical Protestants Republicans Source: D. Baunach, Changing Same‐Sex Marriage Attitudes in America from 1988 through 2010, https://doi.org/10.1093/poq/nfs022; https://fivethirtyeight.com/features/support‐for‐same‐sex‐marriage‐isnt‐unanimous/ 13
Distributed moral experience Ask yourself: Does this person come with different life experiences from which I can learn? – Seek out conversations with people who have been abused, people who have been homeless, people who have lived paycheck‐to‐paycheck, people who have been discriminated against, people from different countries, people who have lived different lives from yours, people who just see the world differently from the way you do 14
The crowd within in a moral universe Interrogate yourself – Individual judgment may be aided by use of “the crowd within” – This applies to moral reasoning as well as trivia – “If we reason best in interpersonal contexts of argumentation … we might be able to improve the reliability of private deliberation by thinking of it as a process of internal argumentation .” – “Mercier and Sperber argue that an individual agent is more likely to be able to counter confirmation bias if they deliberate “proactively,” by imaginatively projecting themselves into a dialogical context.” Source: C. Donovan, C. Fine, and J. Kennett, “Reliable and Unreliable Judgments About Reasons” 15
Expertise and wisdom In science, peer review has a de‐biasing role Peer review can likewise be de‐biasing for moral judgment But is there a moral equivalent to the scientific expert? – “All of us who have lived long enough have fairly extensive experience in the moral domain” – “We suggest that expertise in the moral domain closely corresponds with what is more commonly called wisdom” Source: C. Donovan, C. Fine, and J. Kennett, “Reliable and Unreliable Judgments About Reasons” 16
(And what is wisdom?) According to Tiberius and Swartwood, it comprises – Deep understanding – Reflective capacities – Problem‐solving capacities – Motivation to choose well and to help others choose well Source: C. Donovan, C. Fine, and J. Kennett, “Reliable and Unreliable Judgments About Reasons”; Photo: https://www.tcd.ie/Philosophy/ 17
Combining these ideas: “select crowds” Look to the experience of others … if they bring independent judgment and new information … and are wise – Again, there is related research in social psychology: averaging the opinions of the knowledgeable is better than the wisdom of crowds or a single expert Source: A. Mannes, J. Soll and R. Larrick, The Wisdom of Select Crowds, DOI: 10.1037/a0036677 18
To summarise Research in social psychology and decision‐making tells us that – We can use the wisdom of crowds (distributed knowledge) – Even better: look to a select crowd with particular knowledge or skill – A similar idea can be applied within an individual (the “crowd within”) Meanwhile, work in moral philosophy suggests parallels in the moral sphere – We can use the experiences of others (distributed moral experience) – Even better: look to the opinions of those with wisdom – Interrogate yourself 19
But… There are likewise many occasions when crowd decisions do not lead to better outcomes Photo: Chris Booth, Northern Echo 20
The folly of crowds Herding Conformity/groupthink Strategically linked decisions Photo: Chris Booth, Northern Echo 21
The folly of crowds When individual choices are linked in such ways, we enter a world of self‐fulfilling prophesy – In the jargon of game theory, we can have multiple equilibria – Bank runs, speculative attacks, debt crises, bubbles, business cycles 22
The folly of crowds Again, there are parallels in the moral domain Be wary of looking to others’ values to inform your own when – They don’t bring independent information – It is in your own self‐interest to follow others’ values Photos: US Holocaust Memorial Museum 23
Corporate values Just as individual values change, so also do corporate values – “The subversion of the class structure of 19th century England by making available to the working and lower‐middle classes, upper‐class quality at prices the working and lower‐middle classes could well afford.” – “M&S is a unique retailer with a great heritage. We operate Food, Clothing & Home and other retail businesses using the M&S own‐brand model, focused on delivering great value for money.” • “To help 10 million people live happier, healthier lives” • “To help transform 1,000 communities” • “To become a zero‐waste business” Source: https://www.economist.com/news/2009/06/02/mission‐statement; https://corporate.marksandspencer.com/annual‐report‐2018/mands_annualreport_2018.pdf 24
Corporate values Changing corporate values are particularly apparent when we consider the evolution of corporate social responsibility 25 Source: Google ngram viewer
Corporate values Changing corporate values are particularly apparent when we consider the evolution of corporate social responsibility – Social and environmental goals are now expected, even required – CSR has become a cost of doing business Much of this change is driven by evolving individual values – Customers, employees, and other stakeholders take an interest in corporate values … but they don’t necessarily speak with one voice – Companies are increasingly taking a stand on social issues 26
Corporate values Similar principles apply to the selection and evolution of corporate values as to individual ones – Benchmarking is good – Benchmarking against firms and organisations that bring different perspectives to your own is better – Be wary of groupthink in your industry Source: https://www.economist.com/news/2009/06/02/mission‐statement; https://corporate.marksandspencer.com/annual‐report‐2018/mands_annualreport_2018.pdf 27
The alignment of individual and corporate values Individual values evolve; corporate values evolve These changes can cause or exacerbate misalignment of individual and corporate values – As a company, you have to decide whether you have a right to police employee values – As an customer or supplier, you have to decide whether to engage with a company that doesn’t share your values – As an employee, you have to decide whether to stay with a company that doesn’t share your values 28
Living your values in the workplace Can you drive your organization’s values? 29
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