In an expanding global economy where some critics claim the term “business ethics” is oxymoronic, it’s not surprising that very few leaders in the business world have even considered taking the bold next step: applying morality to the capitalist system.
But Stephen Young, a lawyer and former assistant dean of Harvard Law School, has done more than just giving the idea some thought. He’s written a book about it.
Young described the rationale behind his book-cum-blueprint - Moral Capitalism: Reconciling Private Interest with Public Good - while speaking to a group of more than 50 Fletcher students on Sept. 12, 2005. In the hour-long presentation, which included a question-and-answer session, Young argued that cultural values are integral in the formation and implementation of business plans.
“Valuation of enterprise has everything to do with values,” said Young, who serves as Global Executive Director of the Caux Round Table, an organization of business executives worldwide believing that the ethical standards inherent in capitalism have been compromised by cultural values hostile to its egalitarian, rational spirit.
“Without capitalism, none of you can succeed in what you want to do,” Young added.
Young drew upon his experiences furthering development abroad, in Vietnam and Thailand, to drive home the importance of factoring in culture when trying to incorporate Western business practices in non-Western nations.
During Young’s introduction, Dorothy Orszulak, associate program director for International Business at Fletcher, succinctly described his approach by saying, “Culture and values do count.”
Young offered several real-world examples to illustrate this point. In one scenario, he talked about the price of gold on the international market and how its monetary value is directly linked to its cultural value in places like India, where the precious metal is highly desired by brides receiving wedding gifts. Young noted that in a country of more than 1 billion people, if the culture were to decide it now prefers silver jewelry instead of gold, the market impact of both metals would be dramatic and felt worldwide, not just in India. For that reason, anyone thinking of investing in gold should be aware of its cultural nuances, Young said.
The lecture was the first in this year’s Global Speaker Series, sponsored by the International Business Program at Fletcher. In addition to supplementing classroom learning with exposure to participants shaping the global business arena, the lecture series allows students an opportunity to network with prominent leaders in the field.
“[The lecture] was right on target,” said Virginie Raphael, a first-year MALD student from France, who noted that Young interpreted value as the sense of morality.
“I really liked the way he involved us in the discussion,” she added.
Before starting his presentation, Young asked students to briefly describe their professional backgrounds and aspirations. He then incorporated the information to provide a more audience-specific lecture.
