The Business of Ethics Immanuel Kant and the Namibian Fishing Industry

OVER the past decade the profitability of the fishing sector was strongly influenced by the exchange rate. Currently export earnings of most companies in the fishing industry are being harmed by the US dollar’s strength against the Namibian dollar.

Many fishing companies face losses and shareholders believe that they have no other option but to improve productivity and reduce operational costs and thus improve operating income. Cutting operational costs means mostly shedding labour.From a pure accounting perspective, this is the easiest and most appropriate route to follow.However, any critical observer knows that the fishing industry’s long-term survival depends on its international competitiveness.This means that a company in the food-processing industry must create superior value for the final customer-cum-consumer in the food-value chain than its competitors.The exchange-rate argument loses its value in the long run.The purpose of this article is not to discuss appropriate international-relationship marketing strategies, but to reflect critically on the issue of ‘value creation’.WE know from history that no system, be it political or economic, can survive in the long run if it lacks the legitimacy of those involved.On a micro-level this means that the fishing industry in its present form may not survive if it is uncompetitive from a business persepctvie and loses the trust of the stakeholders (Government and labour), thus forfeiting the ethical perspective as well.For the fishing industry this means that more attention should be paid to its basic values (ethical conduct) and to reflecting on the moral dimension in business within Namibian society.Fish is a God-given natural product which should be exploited in the long-term interest of future generations.In its fundamental, practical sense, economic and business activity means ‘creating value’ (adding value), i.e. consumables, services and commodities to satisfy human needs.Since any reasonably efficient economy functions on the division of labour, it is out of necessity governed by the rules of societal interaction and distribution of profit.Socio-economic ‘value creation’ can thus be understood as a practice that has always been based on moral values and norms and is inescapably founded on certain ideal concepts of the good life and just co-existence between individuals.Economic activity should thus be based on moral principles or, if you like, business ethics, which are concerned with the fundamental consideration and reflection of the meaning and purpose of human existence and the environment we live in.In the Namibian context this is especially important, since our society needs economic transformation as part of the process of reconciliation.The fishing industry would thus be wise to find ways and means to ‘legitimate itself’ from the inside – foreign shareholders included.The ethical consideration to find a normative yardstick for the fishing industry could be found in the philosophy of Immanuel Kant, the German philosopher (1724-1804) whose ideas, although he passed away 200 years ago, are still very relevant today.Morals are always culture-bound and therefore one has to look at universal moral principles.In a multicultural society such as Namibia portrays, an ethical perspective on business conduct must be based on a guiding moral point of view that is universally applicable.We know as human beings that we are dependent upon mutual moral recognition.Mutual recognition in terms of emotional affection, solidarity and citizenry (legal and political recognition) creates and enables our being.(Zimbabwe is a good example where mutual recognition has disappeared out of the window.) It is therefore reasonable to propose the categorical preservation of human dignity and the recognition of basic human rights as a minimum ethical standard.It is important to note that dignity is not only confined to the rich and the political powerful, but equally bestowed on the poor and powerless.We should thus have respect for the dignity of every person, even if he or she is a poor labourer in the fishing industry.The ‘respect for persons’ is thus the second formulation of Kant’s categorical imperative.As Kant put it: “Act in such a way that you always treat humanity … never simply as a means, but always at the same time as an end”.Human beings do not have an instrumental value (the production cost item in the income statement), but an intrinsic one.To act morally, a business must thus respect the ‘personhood’ of people and never treat them simply as a means to an end in themselves.The categorical imperative is also used as moral point of view aimed at preserving the ecology (fishing resources) where, it is argued, intergenerational sustainability (living in partnership with nature) is a key norm.The only legitimate (i.e. justified, according to Kant) behaviour is then to pursue precedence for the dignity and moral rights of all those who are potentially affected.What we are talking about is no more and no less than the ‘regulative idea’ (Kant) of a reasoned (not only factual) consent (via reflective deliberation or having the right discourse) among the various stakeholders in the fishing industry.Business ethics is a permanent process of comprehensively reflecting on the normative preconditions of legitimate value creation.Before a breadwinner is put on the street (especially in a country such as Namibia which has a high unemployment rate and no social safety net), the business must reflect (based on rational arguments) the concept that all strategic avenues of value creation have been exploited before human ‘value’ is destroyed through retrenchments.The one-sided shareholder-value view is outdated anyhow in a caring world.The more ethically oriented business conduct thus gives priority to a more norm-oriented knowledge for a more socially responsible, human and ecologically sustainable economic life.It may sound paradoxical but, apart from competitiveness, business competence stems from critical reflection on the normative preconditions of ethically responsible and economically reasonable ways of doing business.This does not mean one should forget to make a profit.Business must generate an enlightened awareness of the guiding principles of an economy for the people; an economy with a human face; one that respects human beings (black and white) as ‘ends’ in themselves, as Kant would have put it, not as economic means.Business ethics thus makes business sense.* Rainer Ritter is an independent consultant – The article was written in appreciation of I. Kant and a better future for the fishing industry.Cutting operational costs means mostly shedding labour. From a pure accounting perspective, this is the easiest and most appropriate route to follow. However, any critical observer knows that the fishing industry’s long-term survival depends on its international competitiveness. This means that a company in the food-processing industry must create superior value for the final customer-cum-consumer in the food-value chain than its competitors. The exchange-rate argument loses its value in the long run. The purpose of this article is not to discuss appropriate international-relationship marketing strategies, but to reflect critically on the issue of ‘value creation’. WE know from history that no system, be it political or economic, can survive in the long run if it lacks the legitimacy of those involved. On a micro-level this means that the fishing industry in its present form may not survive if it is uncompetitive from a business persepctvie and loses the trust of the stakeholders (Government and labour), thus forfeiting the ethical perspective as well. For the fishing industry this means that more attention should be paid to its basic values (ethical conduct) and to reflecting on the moral dimension in business within Namibian society. Fish is a God-given natural product which should be exploited in the long-term interest of future generations. In its fundamental, practical sense, economic and business activity means ‘creating value’ (adding value), i.e. co
nsumables, services and commodities to satisfy human needs. Since any reasonably efficient economy functions on the division of labour, it is out of necessity governed by the rules of societal interaction and distribution of profit. Socio-economic ‘value creation’ can thus be understood as a practice that has always been based on moral values and norms and is inescapably founded on certain ideal concepts of the good life and just co-existence between individuals. Economic activity should thus be based on moral principles or, if you like, business ethics, which are concerned with the fundamental consideration and reflection of the meaning and purpose of human existence and the environment we live in. In the Namibian context this is especially important, since our society needs economic transformation as part of the process of reconciliation. The fishing industry would thus be wise to find ways and means to ‘legitimate itself’ from the inside – foreign shareholders included. The ethical consideration to find a normative yardstick for the fishing industry could be found in the philosophy of Immanuel Kant, the German philosopher (1724-1804) whose ideas, although he passed away 200 years ago, are still very relevant today. Morals are always culture-bound and therefore one has to look at universal moral principles. In a multicultural society such as Namibia portrays, an ethical perspective on business conduct must be based on a guiding moral point of view that is universally applicable. We know as human beings that we are dependent upon mutual moral recognition. Mutual recognition in terms of emotional affection, solidarity and citizenry (legal and political recognition) creates and enables our being. (Zimbabwe is a good example where mutual recognition has disappeared out of the window.) It is therefore reasonable to propose the categorical preservation of human dignity and the recognition of basic human rights as a minimum ethical standard. It is important to note that dignity is not only confined to the rich and the political powerful, but equally bestowed on the poor and powerless. We should thus have respect for the dignity of every person, even if he or she is a poor labourer in the fishing industry. The ‘respect for persons’ is thus the second formulation of Kant’s categorical imperative. As Kant put it: “Act in such a way that you always treat humanity … never simply as a means, but always at the same time as an end”. Human beings do not have an instrumental value (the production cost item in the income statement), but an intrinsic one. To act morally, a business must thus respect the ‘personhood’ of people and never treat them simply as a means to an end in themselves. The categorical imperative is also used as moral point of view aimed at preserving the ecology (fishing resources) where, it is argued, intergenerational sustainability (living in partnership with nature) is a key norm. The only legitimate (i.e. justified, according to Kant) behaviour is then to pursue precedence for the dignity and moral rights of all those who are potentially affected. What we are talking about is no more and no less than the ‘regulative idea’ (Kant) of a reasoned (not only factual) consent (via reflective deliberation or having the right discourse) among the various stakeholders in the fishing industry. Business ethics is a permanent process of comprehensively reflecting on the normative preconditions of legitimate value creation. Before a breadwinner is put on the street (especially in a country such as Namibia which has a high unemployment rate and no social safety net), the business must reflect (based on rational arguments) the concept that all strategic avenues of value creation have been exploited before human ‘value’ is destroyed through retrenchments. The one-sided shareholder-value view is outdated anyhow in a caring world. The more ethically oriented business conduct thus gives priority to a more norm-oriented knowledge for a more socially responsible, human and ecologically sustainable economic life. It may sound paradoxical but, apart from competitiveness, business competence stems from critical reflection on the normative preconditions of ethically responsible and economically reasonable ways of doing business. This does not mean one should forget to make a profit. Business must generate an enlightened awareness of the guiding principles of an economy for the people; an economy with a human face; one that respects human beings (black and white) as ‘ends’ in themselves, as Kant would have put it, not as economic means. Business ethics thus makes business sense. * Rainer Ritter is an independent consultant – The article was written in appreciation of I. Kant and a better future for the fishing industry.