Lecture Notes: Honorable Business

Introduction

• Speaker: Philosophy PhD teaching at Wake Forest University Business School
• Main Question: Can there be such a thing as honorable business?
  • Common perception of business is often negative (e.g., Bernie Madoff, Enron)

The Perception of Business Education

• Business students often asked why they study business.
• Common answers: to get a job or make money.
  • These answers lack inspiration.
• Is there a moral purpose for business?

Comparison with Medicine

• Both have specialties and require technical knowledge.
• Business professionals are often told to "give back to society" unlike medical professionals.
• The phrase "give back" implies something was taken (theft).
• Need to re-evaluate the morality of business practices.

The Importance of Business

• Business should be understood as valuable in itself, not just for post-factum contributions.
• Aim to find a morally inspiring motivation for business.

Historical Context: Wealth Creation

• Graph of Gross World Product shows dramatic wealth increase over time.
• Deirdre McCloskey's "Great Enrichment" highlighted.
• Current average wealth: $48 per person per day worldwide; $164 in the U.S.
• Wealth increase is not due to biological differences but cultural change.

Morality in Business: Extraction vs. Cooperation

• Two ways to obtain what you want:
  • Extraction: Stealing, fraud, imperialism.
  • Cooperation: Voluntary exchanges, partnerships.
• Historical view shift around the 16th to 19th centuries:
  • Recognition that extraction is morally wrong and cooperation is preferable.

Moral and Economic Implications

• Extraction is zero-sum; only one party benefits.
• Cooperation leads to mutual benefit; both parties benefit from the exchange.
• Example: Starbucks transaction benefits both buyer and seller.

Principles of Honorable Business

1. First Do No Harm: Avoid extractive behavior.
2. Engage in Cooperative Behavior: Respect autonomy, provide an opt-out option.
   • Everyone must have the right to say no.
3. Honor Promises: Keep commitments regardless of oversight.
4. Benefit Others: Use your resources to help others according to their values.

Money and Meaning in Life

• Money isn't the only important factor.
• Wealth enables focus on more meaningful aspects of life (food security, education).
• Engage in business that benefits both yourself and others.

Conclusion: Why Business?

• Honorable business treats people with dignity and respect.
• It is mutually beneficial and leads to increased overall prosperity.
• Use your resources to benefit yourself while also benefiting others.
• Say no to opportunities that benefit you at the expense of others.
• Business can be a moral calling if approached with the right principles.

Final Thought

• Consider the version of honorable business proposed as a morally valuable pursuit.