ETHICS OF BUSINESS 1. Science of ethics.—Ethics comes from a Greek word meaning "custom." In modem times it has come to be virtually synonymous with morality and is the science which seeks to determine the fundamental distinction between right and wrong human conduct. The mere fact that a certain practice is customary is no longer accepted as evidence that it is ethical or moral. A great gulf often lies between morality and conventionality.
Philosophers are not in agreement as to the scien tific basis of ethics. Adam Smith, a Scotch professor of moral philosophy, who, in 1776, published the first systematic treatise of political economy and is kmown as the father of that science, found the basis of right and wrong in the principle of sympathy, but few phi losophers have agreed with him. The Utilitarian school of philosophers regarded the greatest good of the g,reatest number as the fundamental principle of ethics; an act which causes more pain than pleasure, more suffering than happiness, does more harm than good and is wrong. The tenets of this school have been severely attacked, especially by theologians, as encouraging materialism and selfishness. Some phi losophers have taught that men know right and wrong by intuition, while others have held that the canons or laws of morality are to be found only in the Bible and could never have been known by men except thru divine revelation.
But we are not concerned about the philosophical basis of ethics. In a civilized countly business some times gives rise to perplexing problems in ethics, the dividing line between right and wrong conduct not being perfectly clear, but as a rule all business men know perfectly well when they are violating the moral law. Their common sense, their judgment tells them so. By the way, when common sense or judgment is passing on the moral quality of an act it is called con science.
While the customary procedure is not always or necessarily the most ethical, nevertheless we may safely assume that any procedure, practice or policy is right and ethical if it has the general approval of our business associates, especially those most respected in the community. The essence of practical ethics is
undoubtedly found in the golden rule, "do unto others as you would have them do unto you." In the "street" this law finds expression in the "square deal." 2. The moral imperative in business.—What are the moral obligations, the duties of the business man? Is it enough that he be honest and square in all his dealings? His reputation as an honest dealer, as a man who has never cheated a customer nor violated the law, is a valuable business asset. Has be, having earned this reputation, performed ail his duties as a business man? Business is a cooperative matter. Nothing much can be accomplished in it unless men work together for a comraon result. Now, men cannot be closely associated, working side by side, some subordinate to others, without that clashing of self-interest whith gives rise to moral or ethical problems. It is evident that honesty cannot be regarded as the sole necessary virtue in business. Duty demands =ell more of a business man.
Responsibility and duty are usually commensurate with power and authority; hence the head of a large business with many eraployes subject to bis will carries upon his shoulders serious duties as well as responsibilities. He may ignore the moral imper ative or command, but no civilized conscience will ac cept the excuse of Cain that he is not "his brother's keeper." Economics teaches that in general the rate of wages is fixed by the law of demand and supply. When an employe thinks that his particular wage "ought" to be raised, has the employer done his full duty by that employe when he quotes to him the law of demand and supply? Or should he, or one of his representatives, make clear to the employe just why he is not worth more and what lie must do to make his services more valuable? The laws of political economy are based On condi tions as they exist, not on conditions that ought to be.