Archive for the ‘values’ Category

A High-Tech Replacement for Sweatshop Labour! Um…yay?

When new technology puts sweatshop labourers out of work, is that a good thing or a bad thing? It’s not an entirely hypothetical question.

Here’s the story, from Fast Company: Nike’s New Thermo-Molded Sneakers Are Like Sculptures For Your Feet

The classic Air Force 1, Dunk, and Air Max 90 Nike shoes get the Vac Tech treatment–a thermo-molding technique that produces one-piece, stitch-free sneakers.

As a centerpiece for the holiday season, Nike Sportswear has released three of its most venerable brands–the Air Force 1, Dunk, and Air Max 90–constructed using a thermo-molding technique, a kind of vacuum compression method that allows the shoe to be held together without any noticeable seams or stitching. The Nike Dunk VT, above, basically recreates the familiar silhouette of the original design as sculpture around your feet.

Now presumably — though details are sketchy — the lack of stitching will mean these babies will be cranked out by machines, rather than assembled by hand by underpaid people in underdeveloped nations. Critics who think there’s no such thing as a good sweatshop should rejoice. But will sweatshop workers be so happy?

I hasten to add that the word “sweatshop” in its most pejorative sense doesn’t really apply to Nike. Nike, once villainized for having its shoes made by poorly-paid workers working under appalling conditions, is now widely recognized as a garment-industry leader in terms of labour standards. But that’s not to say that a job in a factory that makes Nike shoes is peachy. It’s still a hard life, by western standards. So is it good, or bad, for such labourers if a machine is developed that makes their services redundant?

As I’ve pointed out before, the workers vs machines conflict is, in the grand scheme of things, a false one. Machines can make workers more efficient (and hence valuable), can save humans from dangerous tasks, and can improve net social productivity in a way that stands to benefit literally everyone, in the long run.

But such generalizations don’t obviate the fact that there are some cases in which a new technology comes along and puts you out of work.

Unemployment is bad. Sweatshop jobs are bad. So do we celebrate or mourn when someone with a sweatshop job is put out of work? And is this a matter of choosing the lesser of two evils? Or the greater of two goods? And what does our answer to that question imply about the ethics of buying products made in the sweatshop jobs that remain?

Ethical Investing and Values-Based Investing

If you’re an investor, and if you want your money invested in companies that will not just bring you a return on investment, but will also some good in the world, that means you’re interested in what is variously called “responsible investing” or “ethical investing” or “values-based investing.”

I was recently interviewed for a documentary on the topic. Here it is: “Responsible Investing: An Evolving Story.” The 20-minute video was produced by the Ontario Teachers’ Pension Plan (OTPP). OTPP (colloquially known as “Teachers”) is one of the biggest institutional investors in Canada, managing a fund of just over a hundred billion dollars.

One of the main points I tried to make in the segments I’m in is that the key to thinking about values-based investing is to think of it as a mechanism for value-alignment. That is, it’s a way for investors to invest in companies whose values are like their own. It allows pacifists to avoid investing in arms manufacturers, and allows anyone who is stridently anti-tobacco to avoid investing in that industry. It’s not about all of us investing in products or industries that are “more ethical”, overall. Such global judgments are difficult to arrive at, and even harder to find consensus on.

That is, it’s best not to think of values-based investing as “ethical” investing, as if in contrast to all that other, unethical, investing. Indeed, referring to it as “ethical” investing probably makes the same mistake as references to “ethical oil” or “ethical food” does: it confuses the fact that there is ethical reasoning involved in such investing with a much grander claim that your investments are the only (or most) ethical ones.

Oil Poll: Human Rights or Environment?

A few days ago, I blogged about the notion of “ethical oil”. That’s the label one advocacy group is applying to oil from Canada’s oilsands, to distinguish it from oil from Saudi Arabia, a country with a less-than-admirable human rights record. That, of course, is a gross oversimplification.

But it’s still an interesting ethical issue. I said,

In principle, we could look at this as a matter of “choose your poison.” Do you want the oil that’s associated with human rights violations, or the oil that’s associated with environmental destruction?

It’s important to point out that there are two reasons this is a false dilemma. One is that consumers don’t actually get to choose: oil isn’t labeled by country of origin. The other reason is that neither of the nations named above is perfect, from a social and human rights point of view; nor is either country perfect from the point of view of environmental protection.

But it’s a philosophical thought-experiment worth conducting. So, let’s imagine: you’re driving your car, and your tank is near empty. You’re at an intersection with two gas stations. One is the Saudi brand and the other is the oilsands brand. Which one would you choose?


(Again, I do realize this is a gross oversimplification. It’s not a real choice. It’s a thought-experiment to get you to think about the relative value of the environment and human rights. Let’s all be thankful it’s not a choice we actually have to make.)

Which Oil is the More Ethical Oil?

It’s a clever marketing strategy. But is there really such a thing as ethical oil?

In today’s National Post, the Fraser Institute‘s Mark Milke argues that there is, and that “the ethical oil tag is useful shorthand for why Canada’s oil is preferable to that extracted elsewhere.” But “preferable” is a pretty grand, global conclusion. It implies that, all told, Canada’s oil is better, ethically. And that may well be, but it’s certainly not obvious. Don’t get me wrong — I’m a patriotic Canadian, proud of my country and its accomplishments. But I’m also a critical thinker, and a critical thinker can’t accept unreflectively a conclusion that happens to coincide with his own biases. Indeed, the fact that Milke’s conclusion conforms so neatly to my own biases is a strong reason for me to look at his argument more closely.

His argument is basically that Canada’s oil is ethically preferable to the oil produced in other places, considering especially places with serious histories of violating human rights.

OK, so let’s try it out. Let’s look at a rough sketch of the perceived negative ethical implications of oil from the top 10 countries listed by oil production….

Russia — widespread political & economic corruption;
Saudi Arabia — oppressive regime; human rights abuses;
United States — capital punishment; crazy war on drugs; irresponsible financial institutions;
Iran — human rights violations; insane political leaders;
China — human rights violations;
Canada — environmental degradation; poor treatment of indigenous peoples;
Mexico — widespread corruption; ongoing drug war;
United Arab Emirates — undemocratic;
Brazil — crushing poverty; immense social inequality;
Kuwait — undemocratic; human trafficking and abuse of migrant workers.

Feel free to add your own potential points of criticism to the list. And, of course, you can add significant environmental concerns to the worries for all oil-producing nations. That goes with the turf.

Now we absolutely must not make the mistake of treating this like a checklist, or treating all of the ethical “bads” listed above as equally bad. They’re not. And the other problem with this list is that it presumes that the only alternatives are various countries’ oil. Presumably much of the criticism of tar-sand oil isn’t that it’s so environmentally-evil that it’s ethically worse than, say, Saudi oil. Rather, the criticism has to be that tar-sand oil is worse than renewable energy sources that we ought to be developing, like solar and wind and geothermal.

So while I think the “ethical oil” label is rather, well, crude, I think the people promoting that label are at least doing us the unintentional service of reminding us that it’s far from clear what counts as an ethical source of energy. (If you use slave labour to build a wind turbine, is that an ethical source of energy?) As my friend Andrew Crane points out there are many dimensions along which to evaluate the ethics of any product — including not just the intrinsic properties of the product but also things like the process of production and nation of origin. That certainly applies to oil. I just wish I could believe that the people pushing the “ethical oil” label for my country’s oil were doing it to advance the debate, rather than to score points in it.

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Update: Take a hew poll on this topic, here: Oil Poll: Human Rights or Environment?

Reverse Discrimination in High-Profile Hiring

Discrimination has a bad name, in part because what we typically mean by the word “discrimination” is more like “unjustified discrimination” or “discrimination on morally-irrelevant grounds.” But discrimination per se — even discrimination based on normally-irrelevant characteristics like race or disability — is not always bad. In a very few cases, discrimination is rooted in bona fide job requirements. The classic example is that it’s OK to discriminate against the visually impaired if you’re hiring pilots; having good eye-sight is a bona fide requirement for being a pilot. Being white, on the other hand, is not.

For a recent controversy over reverse discrimination (or rather over a failure to engage in such discrimination) see this recent case from Halifax, Nova Scotia. By Clare Mellor, for the Chronicle Herald: Africville trust hiring prompts some anger: Choosing white minister ‘insulting’

Some members of Nova Scotia’s black community say they are outraged that a white person has been hired as executive director of the Africville Heritage Trust and are calling for her resignation.

“I find it insulting to all black people,” said Burnley (Rocky) Jones, a local lawyer and well-known human rights activist.

“Surely we, within our community, have many people fully qualified to do such a job.”

The trust was set up to establish a memorial to Africville, a major African-Nova Scotian community destroyed on the orders of Halifax officials in the 1960s.

The trust’s board of directors, which includes six representatives of the Africville community, recently hired Carole Nixon, a white Anglican minister, for the position….

So-called “reverse discrimination” is challenging, ethically. Preferential hiring of individuals from historically-disadvantaged groups can be a ham-fisted way to right past wrongs. But in at least some cases — particularly cases involving high-profile positions — the symbolic significance of the job in question has to at least be considered. (A very similar controversy arose a couple of years ago, when the Canadian National Institute for the Blind hired its first non-blind CEO.)

The first thing to note about the Halifax / Africville case is that it’s not primarily a black-vs-white dispute. It’s clear that those who oppose the hire don’t speak for Halifax’s entire black community. The Board of Directors of the Africville Trust is the body that did the hiring, and although detailed information about the composition of the Board is hard to find, the article cited above does say that the Board “includes six representatives of the Africville [i.e., black] community.” That doesn’t change the fundamental ethical questions at stake, but it does sweep away any thought that this is just an us-vs-them debate.

It’s also worth pointing out a legal worry, here. Hiring based on race is generally wrong, and typically illegal. It’s not clear to me (a non-lawyer) that excluding non-blacks from consideration for a job like this would even be legal. Do the critics of this hire simply think that the job posting should have said “Whites Need Not Apply?” Likely not. But a subtler position is logically open to them, anyway, namely a position that says something like “if in doubt, give the job to the black candidate” (based perhaps on a presumption of greater personal understanding of the issues at stake). But again, I don’t know whether that would be legal. (Does anyone reading this know?) And surely no on really wants to settle, as one activist quoted in the story suggests, for a candidate who is merely “fully qualified”. After all, there might well be a number of “fully qualified” candidates, and so you’re still going to need to make a decision. And if the job is important, then we likely want it filled not just by someone qualified, but by the most qualified person.

But on the other hand, critics of this decision do have a point, and that has to do with the symbolic value that would attach to putting a black person in charge of the Africville Trust. It’s not hard to see that selecting a black man or woman for this kind of leadership role would send a certain kind of message, and maybe give black kids in Halifax another positive role-model, one more non-white individual occupying a position of prestige and influence.

All in all, I’m not sure what to think about this one. But one thing I’m pretty sure of is this: if you think a case like this has a clear and simple answer, you’re probably not thinking about it hard enough.

Charity: Does Apple Do its Share?

Forget what your accountant tells you is tax-deductible. What counts as a charitable donation, ethically?

There have been a few rumbles around the internet recently about the lack of corporate philanthropy at Apple Computers, and about now-retired CEO Steve Jobs’ own lack of philanthropic donations. See for instance by John Cary and Courtney E. Martin, on CNN: Apple’s philanthropy needs a reboot

Apple’s…charitable identity — or egregious lack thereof — disappoints us. It’s time for Apple to start innovating in philanthropy with the same ingenuity, rigor and public bravado that it has brought to its every other venture….

Cary and Martin acknowledge Apple’s participation in the Product Red program (which has raised tens of millions for relief of AIDS in Africa, and for which Bono recently praised Jobs). But Apple made $14 billion in profits last year, and Cary and Martin think it’s pretty clear that Apple is obligated to give some of that away. They’re not so clear on where that obligation comes from, except to point to precedent within the computer industry. Both Google and Microsoft have well-established philanthropy programs — both of which, as Cary and Martin note, have drawn fire. Hmmm.

The interesting thing here is that Cary and Martin’s criticism implicitly raises interesting questions about what counts as philanthropy.

Take, for example, Apple’s sizeable donation to the fight against Proposition 8, California’s anti-marriage-equality effort. Was that a charitable donation, or a piece of political activism? Is there a difference?

Apple has also been known to donate computers to schools, and regularly gives students (and, ahem, professors like me) a discount on computer purchases. Of course, critics will propose that those are really marketing gimmicks. But then, no sane person thinks that corporate philanthropy stops being ethical when it’s a win-win proposition.

But then, back to the issue of why. Why are corporations obligated to give to charity? One group of critics is fond of pointing out that profits belong to shareholders, and so when corporate execs donate corporate funds to charity, they’re giving away other people’s money. And even within the modern Corporate Social Responsibility movement, the saner folks are at pains to emphasize that CSR isn’t about charity. It’s about making some sort of social contribution, preferably one that makes use of a company’s special capacities and core competencies.

And as a recent piece in The Economist pointed out that, if you’re talking about doing good in the world, you really must look at what Apple has done to put beautiful, highly-functional, productivity-enhancing devices in the hands of millions of consumers. That’s not exactly the same as feeding the world’s starving masses, but then neither is a corporate donation to build an opera house, or to get your company’s name on a plaque in the lobby of the local business school. The questions we ought to be concerned with are questions about a corporation’s net impact on the world, and the methods it uses along the way. A focus on corporate philanthropy risks obscuring both of those questions.

Highest Standards Aren’t Always Best in Ethics

No one wants low ethical standards, but it’s also a mistake to aim at the highest possible standards — at least it can be, depending on what you mean by “highest.”

See, for example, this useful piece on defence contractors, by Noah Shachtman for Wired: Pentagon Probe Will Review Every Darpa Contract

Since Regina Dugan became the director of Darpa [Defense Advanced Research Projects Agency], the Pentagon’s top research division has signed millions of dollars’ worth of contracts with her family firm, which in turn owes her at least a quarter-million dollars. It’s an arrangement that has raised eyebrows in the research community, and has now drawn the attention of the Defense Department’s internal auditors and investigators…

The story usefully points out that aiming for the highest possible standards of integrity can also cause trouble:

[A former director's] bright ethical guidelines had unintended consequences. If a company allowed an employee to take a sabbatical to join Darpa, the firm was essentially blocking itself from millions of dollars in agency research projects.

The result, of course, is that under the old rules the agency risked cutting off useful sources of expertise. That’s not to say that the old rules were worse. It’s just to point out that there’s a legitimate trade-off here.

There’s a very general lesson to be drawn from this. When thinking about ethics, the goal isn’t always to be squeaky-clean. The goal is to find standards that are high enough to merit the trust of relevant stakeholders, and to do so without sacrificing other, possibly-equally important, values.

Consider this graphic, which illustrates the challenge of choosing experts to make decisions. On one hand, we want people with real expertise. On the other hand, we want to avoid conflict of interest. That is, we want maximum expertise and minimal risk of bias. So the upper-left quadrant of this graphic is the sweet spot:

conflict of interest: bias and expertise

Note that what we’re looking for here is not the “highest possible” standard of integrity (i.e., the standard that implies the lowest possible risk of bias among decision-makers), but a system that makes the optimal tradeoff between risk of bias, on one hand, and relevant expertise, on the other. The point here is not that we’re trading off ethics and expediency. The point is that we’re trading off competing, ethically-significant values.

The point in thinking about ethics is not to aim at the highest standards, but at the best standards. We do enormous damage both to the functioning of organizations and to people’s willingness to talk openly about ethics when we talk about “high standards” in a way that comes off as unthinkingly pious.

Deaf Nudists, Rights, and the Responsibilities of Business

Here’s another “tempest in a teapot” story with much larger implications.

By Daniel Wiessner, for Reuters: Deaf man complains nudists would not provide interpreter

A deaf man has accused a nudist park in upstate New York of violating federal law by refusing to provide him with a sign-language interpreter at an annual festival.

Tom Willard, 53, of Rochester, filed a complaint with the U.S. Justice Department claiming Empire Haven Nudist Park violated the Americans with Disabilities Act (ADA) by refusing his requests for an interpreter.

“I am fed up with being turned away every time I try to do something, by idiots who somehow feel the ADA does not apply to them,” Willard wrote in the complaint….

Now it’s true that the ADA‘s “Public Accommodations” does require businesses and nonprofits to take reasonable steps to reduce barriers for the disabled. But according to this page explaining the application of the ADA, Willard is probably out of luck, legally speaking:

Q. Will a bookstore be required to maintain a sign language interpreter on its staff in order to communicate with deaf customers?

A. No, not if employees communicate by pen and notepad when necessary.

In other words, a business doesn’t have to provide a customer’s chosen accommodation, as long as they do something to achieve a fair outcome. (If someone reading this understands the application of the ADA better, please comment!) At a bookstore, you don’t need a translator as long as you’ve got a pen and paper. The same would pretty clearly apply at a nudist park.

Now all that is about the law, not about ethics per se. Ethics and the law are two different things, and that goes for the legal and ethical responsibilities of business, too. But that doesn’t mean that legal issues are “merely” legal issues. The legislation with regard to how businesses need to accomodate disabilities is right there, in black and white. But such legislation is must be interpreted, and interpretation inevitably involves the application of ethical principles, and the relevant ethical principles here include not just the principle that we ought to do more to lower barriers, but also a principle of reasonableness that says that the needs of the disabled have to be balanced against the legitimate interests of businesses and other organizations (and of their other stakeholders). Judges and juries end up having to apply such principles, among others, when discrimination cases reach court. In the 99.999% of cases that never end up near a courtroom, it’s up to businesses — and the people who work for them — to do their best to apply those principles too.

Topless in Not-Quite-”Public”

According to a CBC story, a Toronto woman was chastised by security guards after taking her shirt off (leaving only her rather modest black bra) at Toronto’s Festival of Beer.

Here’s the story: Toronto woman told to put her top on

…Jeanette Martin was at the annual Toronto beer gathering on Sunday when she took up a dare from one of her friends and took off her shirt. She was wearing a bra but apparently that wasn’t enough for organizers.

“Within 10 seconds flat I had a security guard telling me to put my top back on or else I’d be escorted out of the grounds,” Martin told CBC News….

The CBC story rightly points out that, 20 years ago, a young Canadian woman named Gwen Jacobs fought and won a legal battle for the right to go topless — entirely topless — in public.

What the CBC story misses, however, is that the Festival of Beer is not a public place. It’s a business venue. As we all know, there are plenty of business establishments with a policy: “No shirt, no shoes …no service!” The basic ethical principle here is that private establishments get to make their own rules about the tone they want to set.

In fact, the Beer Festival’s rules aren’t limited to proper attire. According to the Festival’s FAQ, there are plenty of rules, including for example:

What can’t I bring with me?

No pets
No children
No opened water
No food
No chairs
No coolers
No large video cameras
No cameras other than for personal use

Of course, these rules aren’t all about attire, but you see the point. A private business gets to set rules, including ones that set the tone for their events, and attire is a significant part of that. Bars and nightclubs in particular very often have dress codes — many forbid ripped jeans, for example, or require that men wear shirts with collars. (For interesting reading, see the rules for attire for customers of Harrod’s department store.) Now pointing out that companies generally have the right to make their own rules for decorum doesn’t mean that there are not ethical limits on such rules. It’s not hard to imagine truly morally obnoxious rules they could impose. For example, if a company imposed Victorian standards on women but put no limits at all on what men could wear, that would be unfairly discriminatory. But requiring shirts is far from that.

Unfortunately, while the Beer Festival’s organizers may have been within their rights to establish rules of decorum for their event, the reasons offered by the event’s organizers were weak ones. According to the CBC,

Martin was told that she would attract unwanted attention from men and her safety was at risk.

As Martin herself suggested (along with many who posted comments on the story), if men are behaving badly, then security should deal with them, rather than blaming Martin.
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Update (Aug. 12): I’ve learned through other news outlets that Martin says there were women wearing bikini tops at the Beer Fest on the day in question. That makes Security’s objections harder to understand. A business is still within its rights, but the distinction between a bra and a bikini top is, well, skimpy.

Are they Competing, or Just Trying to Sell You Something?

Peaceful coexistence isn’t always a good thing. In the marketplace, competition is what drives different producers of a good to improve their wares, and having one producer explain the superiority of his or her product is — embellishment and puffery aside — how consumers learn to differentiate among products. When different suppliers fail to engage in competition, the consumer is left in the dark. Let me give you two examples.

Here’s the first example. One of the problems — or rather, one of the warning signs — about so-called “alternative” medicine is that there are dozens of different kinds of alt-med, all making different and presumably conflicting assumptions about how the human body works, and yet they all get along cozily together. Nowhere do you find homeopaths, for example, explaining why their methods are superior to those of acupuncturists. Nor do you find Reiki therapists dissing Ayurveda. Crystal therapy gurus are unlikely to tell you about the problems with Traditional Chinese Medicine. And so on. As Robert Park wrote with reference to alt-med, in his book, Voodoo Science (p. 65), “there is no internal dissent in a community that feels itself besieged from the outside.” Of course, the existence of different alt-med treatments isn’t in itself surprising or problematic. Mainstream medicine too uses different treatments for different illnesses. But the different treatments offered by mainstream medicine are all, without exception, underpinned by a single coherent body of theory: the heart circulates blood, germs cause infection, physiological effect varies according to drug dosage, and so on.

So the fact that various systems of alternative therapy, underpinned by very different understandings of the human body (and indeed of metaphysics), can get along so chummily is a huge red flag. It suggests that purveyors of alt-med either a) aren’t thinking critically, or b) are more interested in sales than in healing.

Roughly the same concern arises with regard to different perspectives on how businesses should behave. Some will tell you that the obligations of business are all rooted in the notion of sustainability, with its indelible environmental overtones. Others will say no, it’s a matter of CSR — Corporate Social Responsibility. Still others say it’s all about values. Or leadership. Or citizenship. Or the (ug!) Triple Bottom Line. And each of those seems, at least, to be underpinned by a different understanding of the nature of the firm, its role in society, and what it is that makes an action right or wrong. And yet all kinds of folks seem to want to cleave to all of the above, or to glom onto one of them seemingly at random, as if it doesn’t matter which one you choose.

Again, this should be a big red flag.

I’m sure I’m going to be told that these different schools of thought don’t need to compete with each other — what’s really important, they’ll say, is that, you know, we focus on fixing the way business is done. But again, as with the case of alternative medicines, if someone tries to sell you some and isn’t willing to even try to explain why theirs is better than the other stuff, you should at least wonder whether they aren’t thinking critically, or are merely trying to sell you something.

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