Rethinking the MBA
As the global financial crisis has subsided, some business schools have added one or two courses on ethics to their MBA programs. The courses are mostly an afterthought. The thinking behind them is: “Our financial institutions have behaved badly, so maybe it would be a good idea to add a touch of ethical instruction to the curriculum.” Nothing could be more revealing of the mindset of our economic thinkers than that business ethics has become a sideshow, an add-on, an extra frill.
The prevailing view of the economy as a giant autonomous mechanism following inexorable laws is a highly abstract, quasi-scientific conception. Like the laws of gravity, there isn’t much room for ethics. But, in fact, this prevailing view conflicts sharply with how we actually experience the economy in our day-to-day encounters.
The Hungarian philosopher Karl Polanyi emphasized the importance of what he called “tacit knowledge,” or non-conscious knowledge that accumulates from our experience with ideas, objects, people or institutions without our being fully aware of it.
A Philosophical View of the Economy
THE British philosopher A.N. Whitehead had many wise things to say about business and society. One of his wisest observations was his statement that a great society is one in which its busi- ness leaders “think greatly of their functions.” When they fail, Whitehead concludes, the consequences are “orgies of exploitation” followed by “a descending standard of living.”
This philosophical way of thinking about business and society is strikingly different from the dominant view of economists and politicians. They favor a more technical picture of economies operating in accord with impersonal laws. In this view economies are semi-autonomous entities obeying laws that are independent of the norms, mores and characters of the societies in which they are embedded. The moral vision of the nation’s business leaders carries little economic weight.
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