Nevertheless, consumer power is being applied to put pressure on mutinational companies-massive corporate giants typically based in a wealthier country but that take advantage of cheaper labour and infraatructure cost to locate manufacturing operations in poorer countries.
In recent years the idea of ethical investment came to prominence in the 1970 when the wave of anti-Vietnam war fervour extended to Americans withdrwing investment from companies involved in the war.A number of prefessional fund managers have since set up funds that enable members of the public to place cash with them for investment in comapnies chosen primarily on the basis of ethical criteria instead of just commercial ones. Now there are some US$160 billion invested in easy conscience funds in America, and a more modest GBP1 billion or so in the UK . Managers of such funds gererally avoid companies with interest in armaments, nuclear power, tobacco, alcohal or gambling.
In reality humans are moral beings, endowed with reason, conscience and innate understanding of primary and in alienable qualities such as justice, fairness, respect, honesty,responsibility,integrity and compassion.These moral values are just not universal to all humanity but also universal to all human activity i.e. they are just as valid and called for in economic and commercial life as they are in personal, family and social life. In other words, the values we should express in the business are the values that we aspire to in our moral and social lives.
What does this mean in practical terms? A number of things including:
1. The business should not involve an activity of itself immoral.
2. Look closely at how the business is run. On what values or principles are decisions and actions based?
3. What are the motives of those involved in the business? why are they carrying it out?
4. Given that the business itself passes these tests, what effect does it have on people and their lives?
When looking at the effect that business activity has, at the broadest level there may be an impact on the environment. A business that result in injury to the natural surroundings causes excessive pollution or destroys non-renewable natural resources, with a consequent loss to humanity as a whole, therefore runs the risk of being unethical.
Next there is the society in which the business is located, what effect does the business have on the people and their lives? For example, a tourism or entertainment business may unnecessarily disturb the cumminity in the place where the business is located because of the nimber of people it attracts, the times they are there or their activities so that the community as a whole suffers.
It is sometimes tempting to justify a wrong action by saying that it was not done with bad intentions, but motives alone are not a sufficient touchstones for judginhg whether an activity is right or wrong. Many wrongful deeds are motivated by misguided altruism, or the Robin Hood syndrome. While Robin may have been giving all to the poor and deserving keeping nothing for himself, the fact remains that depriving someone else of their property in such a way is theft. Even if it is done in the name of a good cause, a wrong action is still a wrong action.
While there may be some complexity when applying them to individual situations, the underlying and guiding principles are therefore clear. Business and investment should reflect ethical factors , and even in purely monetary terms, they may be more profitable in the long term if they do so.One school of economics theory hold prosperity comes when businesses are guided by the individuals hand of the market rather than being subjected regulations.
Business people today are often motivated by fear and greed more than anything else and if pride comes before a fall then greed comes before a poverty and fear before downfall. For profit with peace of mind what is now needed more than the invisible hand of the market is the invisible hand of God, or the conscious commitment to act in accordance with moral principles. If this sounds like a novel approach it should not really as it was long, long ago that St Mathew summed it all up " What is a man profited if he gains the world but loses his soul.