STAYING TRUE: WHEN SHOULD INDIVIDUAL AND CORPORATE VALUES EVOLVE? ANDREW JOHN ASSOCIATE DEAN FACULTY ASSOCIATE PROFESSOR OF ECONOMICS

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1 STAYING TRUE: WHEN SHOULD INDIVIDUAL AND CORPORATE VALUES EVOLVE? ANDREW JOHN ASSOCIATE DEAN FACULTY ASSOCIATE PROFESSOR OF ECONOMICS

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 2

3 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

4 What were they thinking? Slavery Stolen generations Racist attitudes Sexist attitudes Opposition to same sex marriage Opposition to LGBTI rights 4

5 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

6 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

7 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

8 When my information changes When my information changes, I alter my conclusions. What do you do, sir? John Maynard Keynes (maybe) 8

9 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

10 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

11 The wisdom of crowds in a moral universe How might we apply this idea to morality and ethics, to values and principles? 11

12 Distributed moral experience Look to the wisdom of others if they bring independent judgment and new information 12

13 Distributed moral experience Look to the experience of others if they bring independent judgment and new information Support for and opposition to same sex marriage in the U.S Liberal metropolitan elite Everyone else 1980s 1990s 2000s Today Everyone else Everyone else Older Americans, Southerners, African Americans Evangelical Protestants Republicans Alabamans Evangelical Protestants (Conservative) Republicans Source: D. Baunach, Changing Same Sex Marriage Attitudes in America from 1988 through 2010, for same sex marriage isnt unanimous/ 13

14 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

15 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

16 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

17 (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: 17

18 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: /a

19 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

20 But There are likewise many occasions when crowd decisions do not lead to better outcomes Photo: Chris Booth, Northern Echo 20

21 The folly of crowds Herding Conformity/groupthink Strategically linked decisions Photo: Chris Booth, Northern Echo 21

22 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

23 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

24 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: statement; report 2018/mands_annualreport_2018.pdf 24

25 Corporate values Changing corporate values are particularly apparent when we consider the evolution of corporate social responsibility Source: Google ngram viewer 25

26 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

27 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: statement; report 2018/mands_annualreport_2018.pdf 27

28 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

29 Living your values in the workplace Can you drive your organization s values? 29

30 Living your values in the workplace Imagine that you researching a large pharmaceutical company with a major oncology division, and you learn that they are considering the following marketing initiative How about we make How about we make a calendar with pictures of cancer patients on it? 30

31 Moments in Time Matt Haus, the Medical Director at AstraZeneca South Africa, wanted to create a project to help cancer patients and oncologists He came up with the calendar idea 31

32 Moments in Time The project was launched in

33 Moments in Time

34 Moments in Time

35 Moments in Time

36 Conclusion We have a responsibility to keep examining our own values What have you truly changed your mind about? We have a responsibility to live our values, as best we can, in our place of work as well as our private lives Corporate values change when individuals drive that change 36