BUSINESS VALUES AND RESPONSIBILITY TOWARDS SOCIETY EDWIN VASSALLO I am pleased to be attending this conference on business ethics, and I believe that we must rise to the challenge and not treat the subject of business ethics as another academic subject. A discussion on business ethics must spur us to action and should lead to a different attitude in an entrepreneur s every day life and in the way business decisions are taken. As Parliamentary Secretary for Small Business and the Self Employed, when I talk about business ethics, I know that I am speaking on behalf of 96% of all commercial activity in Malta. As a representative of the Maltese Government, I would like to take this opportunity to speak of how, together with business organisations, we recently published a code of ethics aimed specifically at the commercial sector. Value of Solidarity The value of solidarity is the key of the social teaching of the Catholic Church 1, and it inspired the development of the social politics of the Christian democratic ideology, which in turn is the source of our government s frame of thought. For practical reasons, the government, whose aim is to lead Malta to a sustainable economy and thus win in a competitive global market, has felt the need to link the concept of the value of solidarity, which as a concept is the core of the government s social political belief, the reality of using it as an instrument to help our economy win in competition. Solidarity Leads to the Common Good The message of the Church s social doctrine regarding solidarity clearly shows that there exists an intimate bond between solidarity and the common good. 2 1 Cf. Congregation for the Doctrine of Faith, Instruction Libertatis Conscientia, 73: AAS 79 [1987], 586. 2 Pontifical Council for Justice and Peace, Compendium of the Social Doctrine of the Church, Citta` del Vaticano 2004. 83
As a government, we believe in the notion of the common good which holds that the fulfillment of each person is found in our promotion of a society in which the care and protection of all human beings is promoted above all things. The Christian democratic ideology inspired by Catholic social teaching believes that the common good is not simply the sum of individual goods. The common good goes opposite to utilitarian ethics, which consider profit as the ultimate good. The aim of the common good is to promote the development in society of all those conditions of social living through which each and every person can be enabled to more fully achieve their authentic human development. Values in Business and Economics With this in mind, we come to understand that business and economics must not be considered as ends in themselves but rather as means to an end. They are the instruments with which we must seek the common good of all. Businesses should be characterized by its ability to serve the common good of society through the manufacture of useful goods and services. But besides this typically economic function, businesses also perform a social function, creating opportunities for meeting, cooperating and the enhancement of the abilities of the people involved. 3 To be authentic, economic growth, must be well rounded, it must foster the development of each man and the whole man. 4 On the same wavelength, Louis Joseph Lebret stated that: We cannot allow economics to be separated from human realities nor development from the civilization in which it takes place. What counts for us is man - each individual man 5 Our government gives importance to man and believes in individuals and not in numbers. The government s aim is to create a working environment in which each individual is encouraged to find his fulfillment. In the commercial sector, the primary aim of every business is profit, but this cannot be the sole objective. As human beings, the scope of our life needs to go beyond monetary gain, and must encompass the social sphere we live in. In fact we believe that: If the sole aim of an entrepreneurship activity is profit, then that activity is being restricted. On the other hand, when it is open to maximize the common good it becomes an entrepreneurial activity that understands that its work goes beyond the accumulation of profit. 6 This belief gives birth to a communitarian concern that goes beyond those tendencies towards a society in which unrestrained individualism alienates us. Business is given value 3 Cf. Ibid. 338. 4 Cf. Paul VI, Encyclical Letter Populorum Progressio 14. 5 L.J. Lebret O.P., Dynamique concrète du development. Paris, 1961, 28. 6 Parliamentary Secretariat for Small Businesses and the Self-employed Il-Valur Tas-Solidarjeta` fin-negozju: biex nirbħu fil-kompetizzjoni. 1.5. 84
when it integrates its work in the community giving its contribution to the development of society as a whole. 7 In his encyclical Centesimus Annus the Servant of God John Paul II states that: At the national level, promoting community and the common good requires creating employment for all, caring for the less privileged, and providing for the future. 8 This I can say has been our Government s agenda and aim. Government s Code of Ethics Inspired by these demo-christian values, my Parliamentary Secretariat for Small Businesses and the Self Employed, within the Ministry for Competitiveness and Communication, set out to publish a code of ethics and corporate social responsibility for those in business, entitled: Il-Valur Tas-Solidarjeta` fin-negozju: biex nirbħu fil-kompetizzjoni. Our document is addressed to all those in the business sector and is to be considered as the fundamental ethics manual for all those in trade. As we all know the government s role is limited in the life of society. The government cannot interfere with the social interaction of human persons nor should the government do things that cannot be handled effectively at lower levels of society. People working at the grass-roots level are closer to the problems and solutions that promote social growth and the Common Good. Acknowledging this fact we have aimed our ethics document at the owners of small businesses. In the very first section of our document, entitled Towards entrepreneurial value that will help us succeed in a competitive market, one finds listed the following: From entrepreneurial ethics to entrepreneurial values Business at the service of the community Business at the service of the individual The development of the social aspect of business The nurturing of the common good Loyalty towards the family Respect for the authorities Honesty with clients Respect for employees Safeguarding the environment Fair pricing Rights and Duties Each and every person has the right to participate in economic life. This also means then that everyone has the duty to contribute, each according to his own capacity, to the progress of all. If, to some degree, everyone is responsible for everyone else, then each person also 7 Cf. Ibid. p.3. 8 John Paul II, Encyclical Letter Centesimus Annus, 52.1. 85
has the duty to commit himself to the economic development of all. 9 Economic activity, when practiced morally, renders service by the production of goods and services that are useful for the growth of each person. It becomes an opportunity for every human being to embody the value of solidarity. The venture to build and carry out social and economic projects that are capable of encouraging a more equitable society and a more human environment, represents a difficult challenge to us, but is also a stimulating obligation for all who work in the trade and industry sector and are involved with the economic sciences. Although the economy has as its object the development of wealth and its progressive increase, we must insist that this increase must not be only in quantity but also in quality; this increase is ethically correct if it is directed to man s overall development in solidarity and to that of the society in which people live and work. In fact, development cannot be condensed to a mere process of accumulating goods and services. On the contrary, accumulation by itself, even were it for the common good, is not a sufficient condition for bringing about authentic human happiness. To Win in Competition It is in this light that we should understand our business ethics document s subtitle; Biex nirbħu fil-kompetizzjoni (To win in competition). We must develop our concept of the word competition; we must compete to achieve the common good of all rather than competing for the maximization of profit. To win in competition, is to compete for the quality of life. Everyone should make use of his talents to contribute to the abundance that will benefit all 10 Working alongside other government ministries, we have launched a campaign to spread awareness on what we are calling the improvement of the value added in each person s work. This goal will be reached only with the continuous commitment both on a personal and collective level in favour of enriching the quality of the products and services being offered. 11 Our Values - The Family Christian democratic belief: Insists on the need for business owners and management to strive to structure work in such a way as to promote the family. 12 9 John Paul II, Encyclical Letter Sollicitudo Rei Socialis, 32. 10 Cathecism of the Catholic Church, 2429. 11 Parliamentary Secretariat for Small Businesses and the Self-employed Gvern li jemmen fin-negozju: Nirbħu fil- Kompetizzjoni - Pjan ta Hidma 2007-2008. 12 John Paul II, Encyclical Letter Laborem exercens. 86
Thus for the government the family is of supreme importance. In fact, the ethics document we published states that; the greatest value of society and of each person is the family 13 it goes on to say that attentiveness on business must not reduce attention due to the family 14. One s family and the families of those around business owners must be safeguarded. Prime Minister Lawrence Gonzi, in his introduction to the document before the budget 2008 entitled: Familji fis-sod, states the following: I believe that society s strength is to be found in its cornerstone: the family. I believe that in our political policies and expenditure we should keep in mind that the family is the fundamental and essential core in our commitment and dedication that have the power to transform our society. 15 Respect for Authority Furthermore we believe that respect is also due to authority, which in turn must respect all in the business sector. This leads to a maturity of all involved, resulting in the maximization of the common good. The Environment In the document we have also dealt with the problem of the environment. Society risks irreversible decline from environmentally unsustainable development. 16 We need a decisive yes to care for creation and a strong commitment to reverse those trends that risk making the situation of decay irreversible. 17 Our government, through the code of ethics, is trying to safeguard the environment by being practical, proposing to business owners that they respect the environment they work in, creating less waste, respecting neighbors by causing less noise and so on. Business which does not care about the environmental value is a business which cannot be at peace with itself. A good entrepreneur knows how to give value and particular attention to the environment. One must respect the environment and those living around one by reducing pollution as much as possible. 18 It is our common responsibility that must mature beyond our shores; we must address the present ecological crises. We must develop in a sustainable way, because our responsibility towards the environment extends not only to the present needs but also to those of the future. 13 Parliamentary Secretariat for Small Businesses and the Self-employed Il-Valur Tas-Solidarjeta` fin-negozju: biex nirbħu fil-kompetizzjoni. 1.6. 14 Ibid. 15 Office of the Prime Minister Familji fis-sod - Dokument ta qabel il-bagit 2008. 16 Cf. Benedict XVI, Homily given at Loreto Italy. 17 Ibid. 18 Cf. Parliamentary Secretariat for Small Businesses and the Self-employed Il-Valur Tas-Solidarjeta` fin-negozju: biex nirbħu fil-kompetizzjoni. 1.10. 87
Fair Pricing The code of ethics insists on the value of a fair price, from which both producers and consumers benefit. This makes it possible to utilise resources better and facilitates the exchange of products. A truly competitive market is an effective instrument for attaining important objectives of justice. Our Values and the E.U. Our aim in publishing this code of ethics is to give a practical moral guide to entrepreneurs. Prime Minister Dr. Lawrence Gonzi in his message published in the code of ethics stated that the European Commission is insisting upon the importance of social responsibility in business, in all member states of the European Union. 19 The Maltese government is doing its best so that in Malta social responsibility in business is further developed. We are convinced that a healthy business needs a healthy community and that good business strengthens the community 20 Recently I was reading the address given by Manuel Barroso at the third ecumenical European assembly held in Sibiu, Romania, in which he stated that: In the 21st century Europe s mission is to favour economic and social development and to accept the challenge of globalisation, preserving our European Christian identity while respecting diversity 21. He goes on to say that: Europe has also another sense; it must defend and radiate those values to which Europeans have been attached, like human dignity, freedom, solidarity, tolerance, [and] social justice 22 These values, for the president of the European commission, are the cement which unifies Europe. 23 Conclusion The Christian democratic ideology held by our government is the instrument through which such values can be spread in order to enrich our society. This is why we are insisting upon the implementation of our document, as we see in it the great value it can yield to our society for the common good of all. Our government believes in the value of human dignity, freedom, solidarity, tolerance, and social justice, and is working hard to ensure that these values do not remain concepts but are put into practice. 19 Cf. Parliamentary Secretariat for Small Businesses and the Self-employed Il-Valur Tas-Solidarjeta` fin-negozju: biex nirbħu fil-kompetizzjoni. 20 Ibid. 21 http://www.db.avvenire.it/pls/avvenire/ne_cn_avvenire.c_leggi_articolo?id=787226&id_pubblicazione=4 22 Ibid. 23 Ibid. 88