Processes and consequences in business ethical dilemmas: The oil industry and climate changes
AbstractThis paper proposes a framework to examine business ethical dilemmas and business attitudes towards such dilemmas. Business ethical dilemmas can be understood as reflecting a contradiction between a socially detrimental process and a self-interested profitable consequence. This representation allows us to distinguish two forms of behavior differing by whether priority is put on consequences or on processes. We argue that these forms imply very different business attitudes towards society: controversial or competitive for the former and aligned or cooperative for the latter. These attitudes are then analyzed at the discursive level in order to address the question of good faith in business argumentation, i.e. to which extent are these attitudes consistent with actual business behaviors. We argue that consequential attitudes mostly involve communication and lobbying actions aiming at eluding the dilemma. Therefore, the question of good faith for consequential attitudes lies in the consistency between beliefs and discourse. On the other hand, procedural attitudes acknowledge the dilemma and claim a change of the process of behavior. They thus raise the question of the consistency between discourses and actual behavior. We apply this processes/consequences framework to the case of the oil industry’s climate change ethical dilemma which comes forth as a dilemma between ‘emitting greenhouse gases’ and ‘making more profits’. And we examine the different attitudes of two oil corporations-BP Amoco and ExxonMobil-towards the dilemma.
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Bibliographic InfoPaper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 591.
Date of creation: Nov 2001
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Web page: http://www.econ.upf.edu/
Business ethical dilemma; procedural rationality; consequential rationality; oil industry; climate change; Kyoto protocol;
Find related papers by JEL classification:
- M14 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Corporate Culture; Social Responsibility
- Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
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- Marc Le Menestrel, 2001. "Economic rationality and ethical behavior," Economics Working Papers 584, Department of Economics and Business, Universitat Pompeu Fabra.
- Alexandros-Andreas Kyrtsis, 2011. "Insurance of Techno-Organizational Ventures and Procedural Ethics: Lessons from the Deepwater Horizon Explosion," Journal of Business Ethics, Springer, vol. 103(1), pages 45-61, April.
- Burkard Eberlein & Dirk Matten, 2009. "Business Responses to Climate Change Regulation in Canada and Germany: Lessons for MNCs from Emerging Economies," Journal of Business Ethics, Springer, vol. 86(2), pages 241-255, March.
- Timo Busch & Volker Hoffmann, 2009. "Ecology-Driven Real Options: An Investment Framework for Incorporating Uncertainties in the Context of the Natural Environment," Journal of Business Ethics, Springer, vol. 90(2), pages 295-310, December.
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