Archive for the ‘values’ Category

SkyDrive: Is Microsoft a Nanny State?

When should a corporation play the role of legal and moral enforcer? And when does a corporation start to take on the obligations — and limits — of a government?

Consider Microsoft’s Windows 8 operating system. When it was released last year, the new OS has met with mixed reviews. But at least one review, by PC World, noticed something interesting about SkyDrive, the new cloud storage service integrated into Windows 8:

“Microsoft restricts the types of files you may upload: Illegally copied commercial content is prohibited, and so are files that contain nudity or excessive violence.”

Just what does that mean? Let’s focus here just on the nudity part.

During an online Q&A session this summer, two Microsoft engineers clarified. Apparently SkyDrive’s rules mean that you are free to store your nudie pics, as long as they don’t include any child pornography. But if you use SkyDrive’s file-sharing feature, the limits are more strict: no nudity at all. So, those topless beach photos from your Mexican vacation are OK to store, but not to share. Is Microsoft checking to make sure stored erotica doesn’t include children? That’s not clear.

This raises interesting problems related to the amount of control that corporations have over everyday activities like storing computer files, especially when — as is the case with many tech companies — their services become part of the infrastructure of our lives, woven into everything we do.

Such power isn’t going to go away. But it does raise questions about the ethical standards that apply to corporate behaviour. If corporations have the kinds of power that were once reserved for states, do they then have the same kinds of obligations? Do the same standards for surveillance and search-and-seizure apply to Microsoft and its users as apply to a government and its citizens?

Of course, if Microsoft users don’t like it, they are in principle free to opt out. There are alternatives to SkyDrive — including Dropbox, Apple’s iCloud, and many others. But Microsoft’s market penetration in terms of operating systems means that for many users (especially ones who aren’t technically sophisticated) SkyDrive is the default. And default options matter; there’s a vast psychological literature on how often people simply go with the default, even when an alternative is available that would advance their interests better.

With great market power comes great responsibility.

Women, Bank Notes, and Patterns of Inequity

Canada’s government is under fire with regards to gender equity, and business leaders should take notice.

Attention has recently been drawn to a petition calling for women on bank notes. Currently, Canada’s bank notes feature only dead (white) male politicians. Queen Elizabeth is the only woman featured, and she’s not Canadian. The result is that Canadian women, no matter how accomplished or historically significant, are excluded from being celebrated in this high-profile way. The petition notes that Canada’s $50 bill once featured “The Famous 5″ (women instrumental in the fight to acknowledge women’s legal personhood) and Thérèse Casgrain, a Canadian senator who had once been a leader in the women’s suffrage movement in Quebec. But in 2012, those images were replaced with an image of an icebreaker.

Zero representation of Canadian women seems a clear matter of inequity. Of course, it can be pointed out by way of rebuttal that the bills mostly honour dead Prime Ministers, all of whom (the dead ones, that is) happen to be men. But that just means that it’s a case of systemic discrimination, sort of like back when certain police forces required officers to be over 5’10” or something. They didn’t say that women couldn’t be officers; it just happened (*ahem*) to be the case that very few women qualified.

The other thing that might be pointed out is that it’s not as if anyone is asking for anything onerous or expensive, here, in asking for women to be represented. It’s an easy move with plenty of symbolic significance. It’s the respectful thing to do. Other Commonwealth countries have done it. Why couldn’t Canada?

Of course, it’s easy to pick on individual issues like this, and to see them as representing a general attitude of disrespect. And that’s not always fair. So it makes sense to look more generally at what the Government of Canada has done to show its commitment to gender equality.

Let’s start at the top. How has the Government of Canada done at showing commitment to gender equity by, say, appointing women to Cabinet? Well, there are 12 women in Prime Minister Stephen Harper’s cabinet, out of a total of 39 cabinet ministers. That means Cabinet is 31% women. That’s very roughly proportionate to the number of women in Parliament, since there are currently 76 women sitting in the House of Commons (out of 308 seats, for 25%), and 38 more in the Senate (out of 105, for 36%). But of course it’s nowhere near proportionate to the number of women in the Canadian population, or for that matter on the list of eligible voters. That represents a middling grade at best. This is, after all, 2013.

The Harper government has also been criticized for the under-representation of women on the Supreme Court of Canada. I don’t have a real opinion on this, and I realize that in selecting SCC judges the matter of qualification for the job has to be paramount, far more important in fact than in selection of cabinet ministers. But still, well-informed individuals, including SCC justices, say there’s room for improvement.

Add to this the fact that there have been claims that women’s rights have in fact suffered significant setbacks under Harper’s government.

When you put it that way, the lack of Canadian women on Canadian banknotes looks a little more significant, more like part of a pattern than an aberration.

What’s the take-away for business leaders? If you don’t want to have every decision and policy questioned from an equity point of view, make sure your track record on the issue is one that reassures, rather than provoking cynicism or outright antagonism.

Why Do (or Don’t) Companies Go Green?

Why do some companies “go green,” while others are satisfied to go grey? Why do some develop robust sustainability programs while others sit back and watch?

Yesterday, as part of my Business Ethics Speakers Series at the Ted Rogers School of Management, I had the pleasure of hosting Hamish van Der Ven, a Ph.D. candidate from the University of Toronto. The title of Hamish’s talk was “Big-Box Retail and the Environment: Why Some Firms Innovate and Others Stagnate.” His main contention was that the main factor at play is the socialization of high-level executives at multi-stakeholder sustainability networks. In other words, what matters is whether the leaders of the company in question make use of opportunities to sit down with a range of folks to talk about sustainability.

The main competing theory of why companies go green is the theory that it all has to do with profitability. Companies go green, on this theory, because they buy into the “business case” for sustainability. That is, they come to believe that reducing energy usage, minimizing packaging and waste, and so on, will be good for the bottom line. Alternatively, they come to believe that being perceived as environmentally-progressive will win them customers, and increase profits that way.

But as Hamish rightly points out, that explanation suffers from a serious defect. Every company is subject to those pressures — they all want to cut costs and reduce waste and attract environmentally-concerned consumers— but only some of them actually put much effort into sustainability programs that will do those things. If the business case is such an important motivator, why don’t all companies buy into it?

Much more significant, Hamish argues, are the opportunities executives take, or don’t take, to open themselves up to internalizing new social norms. The process of socialization involves precisely the process of internalizing social norms. And that happens through social interaction.

And when leaders change their thinking, they tend to do a lot to change corporate culture. As the head of CSR for one major corporation told me, “We talked a lot about going green, but then one day the CEO called and said ‘Make it happen,’ so it happened.”

Of course, this isn’t just just a story about how policy-makers and activists can influence companies by influencing leaders. It’s also a story about how leaders can implement change in their own organizations. As Hamish put it, “If you sit down with people who think differently, you start to see things in a new light. We cannot expect change to result from [instead] sitting around a table with people who think just like you.”

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Update, Dec. 14, 2013: Hamish has now published a paper based on this research. “Socializing the C-suite: why some big-box retailers are “greener” than others,” Business and Politics Ahead of print (Dec 2013)

Starbucks to Guns: “No Thanks”

Starbucks CEO Howard Schultz has stirred up controversy by posting an open letter asking Americans not to bring firearms into the coffee chain’s stores, even where it is legal to do so.

“Few topics in America generate a more polarized and emotional debate than guns,” Schultz wrote. “In recent months, Starbucks stores and our partners (employees) who work in our stores have been thrust unwillingly into the middle of this debate. That’s why I am writing today with a respectful request that customers no longer bring firearms into our stores or outdoor seating areas.”

I think Schultz is to be commended. Not for the position he has taken, but for the way he went about taking it. His open letter lays out the problem frankly and even-handedly. Some people are in favour of openly carrying firearms. Others are made incredibly uncomfortable by the idea of armed civilians behind them in line while they order a grande, half-sweet, non-fat, no-whip mocha. And Schultz doesn’t want his employees caught in the middle, so he’s making a polite request.

But, not surprisingly, the request has generated a firestorm of opposition. Not all of that opposition was well reasoned.

Twitterers who screamed that their rights were being tread upon, for example, were doubly incorrect. First, it is important to note that Starbucks isn’t imposing a ban on firearms in their stores. They’re asking politely, and have given no indication that they’re going to do anything more than that. Asking politely doesn’t infringe anyone’s rights.

Secondly, Starbucks isn’t the government, so appealing to the Second Amendment right to bear arms is (no pun intended) off-target. The US Constitution and the amendments to it protect citizens from intrusions by government, not from (supposed) intrusions by other citizens or private institutions like Starbucks.

But this raises larger, more interesting questions. It’s easy for me to say that, hey, Starbucks is a private company and it can make whatever requests it wants. It could even outright ban firearms from its stores, if it wanted to. They certainly wouldn’t be the first to do so. The stores are private property, and Americans do have constitutionally-protected property rights. Schultz doesn’t have to allow visitors to his home to carry guns, and he doesn’t have to allow visitors to his stores to carry them either.

But there’s an important sense in which a big company like Starbucks isn’t “just a company,” and a sense in which its stores are not fully private property. Starbucks has over 13,000 stores in the US alone (and over 60,000 worldwide), making their stores the go-to spot for coffee, a soft chair, and free wifi for plenty of Americans. And Schultz’s own vision for Starbucks was to make it a ‘third place’ between work and home, a kind of quasi-public meeting place. And so there’s a sense in which Starbucks, like Google and Facebook, is effectively a part of our public infrastructure.

That’s not to say that Starbucks has the legal obligations of a government. That would be a dangerous position to take. But it suggests that the range of ethical obligations we attribute to big companies with an important role in public life are a fit subject for debate. Schultz deserves praise, I think, for taking a good first step by presenting his reasoning openly, and making it fodder for public discussion.

University Frosh Rape Chant Poses Leadership Challenge

Last week, a scandal sprouted on Canada’s east coast, when it was discovered that part of Frosh Week activities at Saint Mary’s University (SMU), in Halifax, included the chanting of a song promoting the sexual assault of underage girls. The news broke shortly after a video of the chant was posted online. Condemnation was broad and swift. Some were angry at the students. Others were angry at university administrators. Others simply lamented the sad state of “youth today” and the perpetuation of the notion that it is OK to glorify rape.

As it happens, I taught for about a decade in SMU’s Philosophy Department; I still have friends who teach there. I know some of the administrators involved in this case, and have more than a little affection for the place, generally.

My own particular scholarly interest in this case, though, has to do with the ethics of leadership. I think the events described above provide a good case-study in the ethics of leadership. That’s not to say that it is an example of either excellent or terrible leadership. But rather, that it’s a case that illustrates the challenges of leadership, and an opportunity to reflect on the ethical demands that fall on leaders in particular, as a result of the special role they play.

Two key leaders were tasked with handling the SMU situation. One was Jared Perry, President of the Saint Mary’s University Student Association. Perry has now resigned. Reflecting on his error, Perry said “It’s definitely the biggest mistake I’ve made throughout my university career and throughout my life.” The other leader is SMU president Colin Dodds. For his part, Dodds has condemned the chant and the chanters, and has launched an internal investigation and a task force.

A leader facing a crisis like this needs to balance multiple objectives.

On one hand, a leader needs to safeguard the integrity and reputation of the organization. Of course, just how to do that can be a vexing question. Do you do that by effecting a ‘zero tolerance’ policy, or by a more balanced approach? Do you focus on enforcement, or education?

A leader also needs to deal appropriately with the individuals involved. In this case, that means offering not just critique (or more neutrally, “feedback”) to the students involved, but also offering compassion and advice in the wake of what everyone agrees is a regrettable set of circumstances. In particular, a situation like this involves a “lead the leaders” dynamic. It is an opportunity for university leaders to teach something specifically about leadership to the student leaders involved. It is also, naturally, yet another opportunity for university leaders to learn something about leadership themselves; unfortunately, that lesson must take the form of learning-by-painfully-doing.

Finally, a leader needs to be responsive to reasonable social expectations. In this case, those expectations are complex. On one hand, society wants institutions entrusted with educating the young provides a suitably safe setting, and arguably one that fosters the right kinds of enculturation. On the other hand, society wants — or should want — universities to be places where freedom of speech is maximized and where problems are addressed through intellectual discourse. Indeed, my friend Mark Mercer (in SMU’s philosophy department) has argued that what the university ought to demonstrate, in such a situation, is its commitment to intellectual inquiry and to the idea that when someone uses words we disagree with, we should respond not with punishment but with open discussion and criticism.

Balancing those objectives is a complex leadership challenge. And there’s no algorithmic way to balance such competing objectives. But one useful way to frame the leadership challenge here is to consider the sense in which, in deciding how to tackle such a challenge, a leader is not just deciding what to do. He or she is also deciding what kind of leader to be, and what kind of institution he or she will lead. Each such choice, after all, makes an incremental difference in who you are. It is at moments like this that leaders build institutions, just as surely as if they were laying the bricks themselves.

Does the Right Tone at the Top Guarantee Success? Part 1

I spent the morning today speaking at Centre for Accounting Ethics Symposium called “Accounting Ethics and Tone at the Top” (put on by the School of Accounting and Finance, University of Waterloo). I was part of a panel discussion that took on the provocative question of whether positive ethical tone at the top ensures success.

It’s a provocative question because the word “ensure” pretty much points to a negative answer. Success is never guaranteed in business. In fact, it is the constant fear of failure that drives competition, that drives the pursuit of efficiency, that drives innovation. Nothing – literally nothing – guarantees success. Will a killer product ensure success? Of course not! You need the right financial model, the right marketing channels, the right organization, and the right competitive environment too. Will a great team ensure success? No, of course not. Other organizations have great teams, too. You also need the right leadership, a product that consumers want, and so on.

So positive tone won’t guarantee success, but neither will anything else. The right tone won’t guarantee ultimate victory in the marketplace, but that’s hardly a criticism. The fact that a positive ethical tone won’t guarantee success doesn’t mean it’s not important, indeed, essential. Without it, an organization’s chances of long-term success – defined either in terms of integrity or in terms of the bottom line – are considerably diminished.

So what do we mean when we refer to “tone”? Tone is much more complicated than it sounds.

In this context ethical “tone” means the tone or tenor that a leader sets with regard to choices between right and wrong, between more and less admirable forms of behaviour. Tone is the signal that is sent from top to bottom within an organization about what kind of behaviour is to be admired and emulated, and what kinds of behaviour will not be tolerated. Ethical leadership means taking responsibility for the tone you set.

But tone takes many forms. It is crucial to see that setting the right tone means much more than just sounding ethical. It also means acting ethically, and being seen as acting ethically. Tone consists in the set of signals given through the words a leader says and the deeds she does and the attitudes she displays.

It means doing what you can to manage that elusive something called “organizational culture,” and knowing that culture trumps strategy every time.

In particular, setting the right tone means avoiding – in both words and deeds – excuses and rationalizations. Rationalizations (“I had no choice;” “No one was really hurt;” “It’s not my job;” “It’s a stupid rule anyway…”), are an absolutely key ingredient in a great many instances of wrongdoing. And we don’t generally make up rationalizations on our own and learn how to apply them from scratch. We learn them, unfortunately, from our role models, from people we look up to, from people we see as leaders. Leaders can and must set the tone, in neither helping themselves to such rationalizations, nor tolerating them when used by others.

Setting the right tone also means fostering open conversation about ethics, about the obligations of and obligations within your organization. It means putting ethics on the table. It means letting those who work for you know that it’s OK to ask questions about ethics, and to make values and principles an explicit part of their decision-making. A leader needs to build decision-making capacity and empower employees to take responsibility.

We can sum up the significance of tone this way: A great deal has been written about ethical leadership, and the significance of ‘tone at the top.’ That literature might be usefully summed up by two sweeping statements, two unavoidable truths:

1) Ethics must come from the top down. People take their cues from their leaders. Yes, people learn their basic values from their parents and other childhood role-models, long before they become employees. But they learn how to enact those values in a business context from their workplace mentors and leaders. All of us learn basic lessons about honesty and integrity from our parents. But few of us learn about technical concepts such as Conflict of Interest from our parents. They don’t teach us about the moral obligations embodied in fiduciary relationships, or about how to balance the various interests at stake in a quasi-adversarial relationship between buyer and seller. We need leaders – specifically business leaders – to teach us those things. So: Ethics must come from the top down.

The second grand lesson is this:

2) Ethics cannot come from the top down. It cannot be imposed. You need buy-in. You can lead a horse to water, but you cannot make it drink. You can hand every employee a copy of “their” brand-new code of ethics, commissioned by HR and endorsed by the CEO and the Board. But that doesn’t guarantee that anyone will read it, let alone take it to heart. A code won’t overcome an organizational culture that puts short-term profit-seeking above all else; or a culture where individuals put moral blinders on, focusing narrowly on their own jobs rather than taking responsibility for the ethically-significant elements of the organization’s mission. It won’t make up for a culture that tacitly endorses playing fast and loose with accounting rules. That’s why tone – not just sermons handed down from on high – is so important.

A focus on tone can of course easily become confused with a focus on words, and on the personal integrity that a leader takes him- or herself to have. We see this all the time. When the mayor of a major city prides himself on integrity, on wanting to “clean up City Hall” and to put an end to the “gravy train,” but then cannot recognize a blatant conflict of interest when he sees one, you see “tone at the top” gone awry.

In my next blog entry, I’ll continue this topic by addressing what it means to focus on “tone at the top” and whether it can ensure or at least contribute to success.

The Business Significance of the ‘Trolley Problem’

streetcarThere’s a famous philosophical thought experiment known as “the Trolley Problem.” It goes roughly like this. Imagine one day you see a trolley — the famous San Francisco variety, or something more like a Toronto streetcar — hurtling along its track. The driver is incapacitated, and the trolley is bearing down on 5 people, mysteriously unconscious on the track. You happen to be standing next to a switch, which can divert the trolley onto a different track. But lying on this other track is another unconscious person.

So assuming (as the philosophy professor insists you must) that you don’t have time to haul any of the various unconscious persons off the tracks, your choice is effectively this: should you divert the trolley, thereby killing one person, or do nothing, and allow 5 people to die?

The puzzle is intended to get you to think about what’s more important: promoting good outcomes (fewer deaths instead of more) or sticking to cherished principles (like the principle that you should not cause the death of an innocent person). It makes for a fun and often fruitful classroom discussion.

But as a model of real-life ethical decision-making, the trolley problem is pretty bad. Seldom does life present you with two cut-and-dried options, neatly packaged by your philosophy professor. As Caroline Whitbeck points out, real life isn’t a multiple-choice test. In real life — in business, for example — ethical problem solving is more like a design problem: you need to design the options, before you get to choose among them.

But the trolley problem can still serve as a useful starting point for talking about business ethics. The key is to ask the right questions. Here are a handful of questions designed to make the trolley problem relevant to business ethics. Each, of course, requires a bit of mental translation. We are not, after all, primarily interested in actual trolleys.

1) Does your business need a policy for situations like this? Is your business one in which trolley-problem-like dilemmas come up often? Are employees often faced with situations that require them to trade off outcomes against principles? If so, do existing policies tell them how to deal with such dilemmas appropriately?

2) Is there anything you can do to prevent situations like this from happening in the first place? One of the key characteristics of the trolley problem is that it’s a lose-lose situation: either you kill an innocent person, or you allow several people to die. It’s worth asking (especially if such problems are common; see #1 above) whether there’s something you can do to avoid such situations so that you don’t have to deal with them at all.

3) What kind of corporate culture have you fostered, and how will that culture push people one way or the other in such situations? The trolley problem is a true dilemma, and reasonable people can disagree about it. But what about situations in which you can throw a switch and kill 5 people (metaphorically, at least) in order to save one? And what if that one isn’t a person, but is your company’s bottom line? Will your company’s culture encourage employees to put short-term profit ahead of all other considerations

4) Will people in your organization recognize situations akin to the trolley problem as being ethical problems in the first place? Or will they make the decision on purely technical grounds? Will they see past the fact that flipping switches is, you know, their job? Or past the fact that hey, the trolley has to run on time, and we always flip this switch that way at this time of day?

5) Finally, if the decision were being made by a team, or members of a hierarchy, rather than by an individual, would members feel empowered to speak their mind if they felt the team, or their boss, was making a bad decision?

Philosophical puzzles like the trolley problem become famous for a reason. They get at something deep. And they can provide fruitful fodder for discussion as part of corporate ethics training. The core of a great discussion is there: you’ve just got to know the right questions to ask.

Is Fare by Weight Fair?

Is it fair to charge airline passengers based in part on weight? That’s the plan recently announced by Samoa Air, and it’s a plan that is raising a few eyebrows.

Yes, it’s an ethical issue. But no, there’s no clear answer.

Interestingly, the mainstream media stories I’ve read about this thus far have made little mention of the obvious moral worry, namely discrimination. On the face of it, this looks like systemic discrimination against overweight and obese flyers. You and I could be in adjacent seats, booked seconds apart, but if you happen to be 20 pounds chubbier than me, you’ll pay more.

Whether being fat is sufficiently under personal control to make it a permissible basis for discrimination is hotly debated. But it’s worth noting that a weight-based policy also discriminates against those whose extra pounds are pure muscle. A heavyweight boxing champ would be about fifty pounds heavier than me, and would therefore pay more. The same goes for someone with the same build as me, who happens to be 4 inches taller. So if this is discrimination, it’s discrimination against those who are heavy, not those who are fat.

The other factor not mentioned in the few stories I’ve read about this is the environment. In aviation terms, weight translates into fuel, and more fuel burned means more environmental impact. So in charging by weight, an airline is basically levying a kind of carbon tax. And while how much you weigh isn’t fully within your control, the amount of luggage you bring with you is, and Samoa Air charges based on the total weight of you plus your luggage. Charging more on that total encourages people to carry less, and in principle might nudge frequent flyers, at least, to lose a few pounds. Such reductions eventually mean reductions in carbon emissions, and that’s a good thing. So even if there is a problematic form of discrimination going on here, there’s at least one factor on the other side of the moral equation.

Finally, it’s worth noting that to the extent that we’re worried about discrimination against bigger people (regardless of why they are big), being charged extra for their weight is far from the only price bigger people pay. Sufficiently large people also “pay,” for example, in the form of pain suffered by squeezing into airline seats not designed for people their size. That’s one of innumerable ways in which people who are outside the norm suffer in a world of products and services that are mass produced. But then, if the unusually large person pays a price for being squeezed into a seat designed for smaller folk, the person next to them pays a part of that price, too.

Of course, Samoa Air is a tiny airline, based in a tiny country. And commentators suggest that the company’s example is unlikely to be copied by major airlines. Indeed, it’s probably next to impossible: Samoa Air not only charges more to heavier passengers, it gives them more space — something likely impossible on standardly-configured passenger jets. But it is precisely for this reason that Samoa Air makes for a good case to use in ethics training and education. Before coming down on one side or the other, it’s important to tease out not just that there’s an ethical issue at all, but that there are in fact a range of ethical questions here.

The Ethics of Innovation

Innovation is a hot topic these days. It’s been the subject of studies and reports and news reports. In fact, I spent the entire day this past Monday at the Conference Board of Canada’s “Business Innovation Summit,” listening to business leaders and civil servants talk about how Canada is lagging on innovation, and how much is left to be done to promote and manage innovation. And certainly technological innovations like Google’s new glasses and 3D printing make for compelling headlines.

So sure, hot topic. But how is it connected to ethics? What is an ethics professor like me doing at an event dedicated to innovation?

If you understand the domain of ethics properly, the connection is clear. In point of fact, innovation is an ethical matter through and through, because ethics is fundamentally concerned with anything that can promote or hinder human wellbeing. So ethics is relevant to assessing the goals of innovation, to the process by which it is carried out, and to evaluating its outcomes.

Let’s start with goals. Innovation is generally a good thing, ethically, because it is aimed at allowing us to do new and desirable things. Most typically, that gets expressed in the painfully vague ambition to ‘raise productivity.’ Accelerating our rate of innovation is a worthy policy objective because we want to be more productive as a society, to increase our social ‘wealth’ in the broadest sense. The 20th Century has seen a phenomenal burst of innovation and increases in wellbeing, exemplified not least by the fact that life expectancies in North American have risen by more than half over the last hundred years. The extension and enriching of human lives are good goals, which in turn makes innovation generally a good thing.

Indeed, when looked at that way, innovation isn’t just a ‘good,’ but a downright moral obligation. Yes, lives for (most) people in developed countries are pretty good. But many still don’t have happy and fulfilling lives; many children, even here, still go to bed hungry. Boosting productivity through innovation is a key ingredient for making progress in that regard. And if less developed nations are going to be raised up to even a minimally tolerable standard of living, we need innovations that will help them, and we need innovations that will make us wealthy enough that we can afford to be substantially more generous toward them than we currently are.

Which brings us to ethical evaluation of the specific fruits of innovation. Some innovations are plainly good: they make human lives better in concrete ways. Penicillin was a very good innovation. So was the birth control pill. So was the advent of the smartphone. Other innovations are less good: nuclear weapons are a clear candidate here, as perhaps are complex financial instruments such as derivatives, which Warren Buffet famously referred to as “financial weapons of mass destruction.”

The problem, of course, is that innovation brings risks. Some of those risks are of course borne by the innovator, by the entrepreneur. Others are borne by society. For one thing, we often don’t fully understand which category a particular innovation will end up in until years later. Is the net benefit of splitting the atom positive or negative? The jury is still out.

But ethical evaluation doesn’t just apply to individual innovations: systems of innovation bring a mix of risks and benefits. If we set ten thousand entrepreneurs loose on the world, and tell them (or incentivize them) to make something innovative that sells, some will bring us the proverbial ‘better mouse trap,’ and others will bring us video lottery terminals, biological weapons, and other bits of detritus that only serve to increase human suffering. If you give your tech company’s R&D department free reign, someone may invent the next ‘killer app,’ and someone else may simply crash your server. And the only way a system can preclude ‘negative’ innovation altogether is probably to discourage innovation altogether.

Hence the recent interest not just in innovation, but in managing innovation. The notion of managing innovation reflects the fact that innovation can be fostered — doing so is an obligation of ethical leadership — and is an activity rooted in creativity, not anarchy. So for practical purposes, the ethics of innovation ends up being a branch of the ethics of management and leadership. Organizations, from small teams to nations, face a range of ethical questions as a result. They need to figure out how much to spend on encouraging innovation, as compared to spending on existing programs. They need to figure out what combination of carrots and sticks to use to foster innovation. They need to figure out how much autonomy to give potential innovators, how much freedom to experiment. And finally, they need to figure out how to spread the risk of innovation, in order to make sure that risks and benefits are shared fairly, and to make sure that fear of risk doesn’t dampen our appetite for innovation. And all of those are fundamentally ethical questions.

Lance Armstrong: How the Mighty (Book) Has Fallen

It's not about the bike.

Lance Armstrong: It’s Not About the Bike.

What are we to make, at this point, of Lance Armstrong’s best-selling 2000 book, It’s Not About the Bike: My Journey Back to Life? I have to admit that I never read the book, and my interest in doing so has not increased in the wake of accusations of doping. But why? After all, the book was a best-seller, one by an athlete whom many regard — still regard — as a hero.

The picture above is one I took, of a box of free books a neighbour of mine left outside on the sidewalk. When I ran by one recent Saturday afternoon, only one book remained: Armstrong’s book. Funny but sad, I thought. When I passed again roughly 24 hours later, the box looked exactly the same: just one book, unwanted even for free. I snapped a picture.

(Another perspective on the book’s value: Amazon is still selling the book, for about $11, though you can also buy a used copy via Amazon for just a penny — in other words, for the cost of shipping it.)

The book, as you can surmise from reading any of a number of reviews, tells the story of Armstrong’s rise to prominence in cycling, his battle with and ultimately triumph over cancer, through to his victory at the 1999 Tour de France. It is, in short, the story that made him a hero to so many.

We are now all but certain that Armstrong’s meteoric rise to the pinnacle of the cycling world was aided by pharmaceuticals, a sophisticated and rigorous doping program that he not only stuck to but bullied his teammates into adopting. Should he still be regarded as a hero in any sense? And is his book still worth reading? We all know now that the book left out crucial details, but as far as I’ve heard there’s no reason to doubt the basics: he had cancer, he had surgery, he “beat” the cancer, he trained hard, he won the Tour de France. So the basics of the hero story remain as valid today as they were when the book came out over ten years ago. So why is the book now effectively — literally! — consigned to the trash-heap?

For some, the explanation might be simple personal disillusionment. When a hero falls, he falls really hard. So some who previously lionized Armstrong may not want even to think back upon what they now see as their own naiveté. Others may not want to be ‘inspired’ by someone they see as a liar: perhaps they just don’t want to listen to life lessons and inspiring stories, no matter how useful, told by someone who cheated and then lied about it.

The best answer, I think, lies in the loss of trust. Armstrong’s message was one of hope and courage, and it can only really bring hope and courage to the reader if the reader trusts Armstrong’s words. Armstrong’s message was like that of the kind, experienced physician in whom the cancer patient puts his or her faith. “We’re going to take good care of you,” says the physician. Armstrong’s message: You too can triumph over adversity. Neither messenger can guarantee results: surviving cancer is much more a matter of luck, and good medical care, than it is of gutsy determination. But the other half of the message — the reassurance, the comfort, the message of hope — requires that the patient put their faith in the messenger. And that is the part of his own message that Armstrong so effectively killed.

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