Business Ethics Paper

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CatholicSocialTeaching.pptx

Key Principles of Catholic Social Teaching

Link to the Compendium of the Social Doctrine of the Church

Link to the Compendium of the Social Doctrine of the Church: http://www.vatican.va/roman_curia/pontifical_councils/justpeace/documents/rc_pc_justpeace_doc_20060526_compendio-dott-soc_en.html

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Four Permanent Principles

Constitute the central character of CST

Dignity of the human person

Foundation of all other principles and entire content of CST

Common Good

Subsidiarity

Solidarity

Reciprocal, complimentary, and interrelated

There are four “permanent principles,” or foundational principles which constitute the central character of Catholic Social Teaching. First is the dignity of the human person. This first principle serves as the foundation of all other principles as well as the entire content of CST. The other three principles are the common good, subsidiarity, and solidarity.

It is important to note that the four permanent principles exist in a unity. We are morally compelled to appreciate the importance of these principles and to articulate them in such a way that we recognize the reciprocity, interrelatedness, and complementarities inherent to their structure. In other words, remove one of these four and you no longer have CST.

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Human Dignity

Foundation of Catholic Social Teaching

Human life is sacred; made in the image of God; inherent dignity of the person

A just society cannot be achieved without respect for the dignity of the human person

See Compendium, Chapter 3

The concept of human dignity is the foundation of Catholic Social Teaching, and its basis is the idea that humans are created in the image and likeness of god. Human dignity is inherent and immeasurable regardless of any contingent factor we can think of, meaning that each and every human life is considered sacred. This includes a radical equality before god regardless of who you are, where you come from, and any other considerations.

The concept of human dignity is similar to the UN’s Declaration of Human Rights. The main difference is in the justification or foundation of the principles. Whereas the UN Declaration attempts to build upon the work of John Locke and Immanuel Kant, Catholic Social Teaching is based on Catholic doctrine and dogma. The question could be raised, does it matter what the foundation is? Michael Ignatieff argues in “Reimagining a global ethic” that we need not necessarily agree on the metaphysical underpinnings of a moral code in order to agree on what practical action is required.

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The Common Good, Community, and Participation

Humans are social

We have responsibilities to contribute to the good of the whole society, because how we order society directly affects human dignity

All people have a right to participate in economic, political, and cultural life of society

See Compendium, Chapter 4

The principle of the common good is that which is authentically good for all people, not what we may individually or even collectively desire. Since we are social creatures, the common good is rooted in the social conditions which would allow for the flourishing of everyone. Human flourishing has a physical dimension (clean water, nourishing food, relatively toxin-free environment), intellectual dimension (access to education), and moral dimension (cultivation of virtue). Communities must work together to fulfill these requirements (no one person can do this alone). The common good is not the highest good, since that is only achieved through god, but the common good grounds individuals and groups in the pursuit of the ultimate good.

Human life cannot flourish in isolation, but rather only by engaging with the community as full members. The relationship between individuals and community should be reciprocal; we have an obligation to help those around us while also allowing ourselves to be helped. The themes of community and participation have their roots in the family example, but we are called to be engaged with the wider society, in the pursuit of justice. The Church does not often recommend specific ways in which to participate, so that people can understand participation in their own cultural and political contexts.

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Universal Destination of Goods

Goods of creation are destined for all humanity

Appropriation of private property is legitimate for purposes of security, freedom, and dignity

Goods of production should be employed in ways which benefit greatest number

Political authority has right and duty to regulate exercising of right of ownership for the sake of common good

See Compendium, Chapter 4

The earth and its goods are destined for the benefit of all. Each person should have access to the level of well-being necessary for full flourishing. The principle has to be put into place according to differing social and cultural contexts, and does not mean that everything is at everyone’s disposal (not communism). A right to use the goods of the earth needs to be exercised in an equitable and orderly way, according to a specific juridical order. Nor does this principle exclude the right to private property. Nevertheless, it is important not to lose sight of the fact that property is only a means, not an end in itself. What is important to keep in mind is that: "The principle of the universal destination of goods is an invitation to develop an economic vision inspired by moral values that permit people not to lose sight of the origin or purpose of these goods, so as to bring about a world of fairness and solidarity, in which the creation of wealth can take on a positive function" (No. 174). The Compendium also insists on the principle of a preferential option for the poor, to be exercised by means of Christian charity and inspired in the poverty of Jesus and his attention to the poor.

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Solidarity and Subsidiarity

Solidarity

We are one human family

Moral commitment to the common good

“Love your neighbors” regardless of where they live, recognize global and interdependent dimensions

Subsidiarity

Principle of organization

Matters ought to be handled by smallest, lowest, and least centralized authority

Government has positive purposes

To serve and protect common good

As interdependent beings, it is a simple fact that we cannot live well independent of others. Solidarity is the idea that this interdependence is a good to be cherished. Solidarity is the idea that we are all brothers and sisters. Modern technology has made connecting with others easier, but it does not necessarily lead to true fraternity (Pope Benedict). Solidarity is a moral value. It can be practiced between people, between institutions, and between nations. A good example of solidarity in practice is twinning arrangements between towns or parishes of different countries. Solidarity also encourages us to analyze our own institutions for structural sin, such as institutional racism.

Subsidiarity is a principle of organization which states that matters ought to be handled by the smallest, lowest, and/or least centralized authority. The principle is one which attempts to honor the right and duty for all members to participate in the community and work for the common good. This is made difficult by highly removed and bureaucratic institutions. In other words, government should work for the defense and preservation of common goods, but should serve rather than dominate. Government should not be any larger than is necessary to accomplish what needs to be accomplished. Some recognized matters rightfully undertaken by federal governments are national defense, interstate cooperation, and international treaties. The government should not overreach to alleviate all problems, though. Problems are best solved and human energies best spent by those closest to them. It is recognized that a balance is difficult to achieve, and there are no easy solutions. The Church recognizes that different degrees of government intervention will be appropriate in different circumstances. However, all Catholics are obliged to work to find solutions to contemporary social problems in light of the wisdom of teachings.

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Option for the Poor and Vulnerable

Basic moral test of society regarding how well the poor are fairing

Evaluate person, social, and economic choices in terms of their effect on the poor and vulnerable

Essential part of effort toward common good

Necessary part of a healthy community

When considering rights and duties, the poor and badly off have a claim to special consideration. Wealthy people have many ways of shielding themselves and do not need help from the State, whereas the poor have little to no resources to fall back upon. The obligation to provide justice to all means that the poor have the most urgent economic claim on the conscience of a nation. The notion of charity taught in the Gospel instructs us that the more fortunate should renounce some of their rights so as to provide for others because everyone has a right to possess a sufficient amount of the earth’s goods for themselves and their families and to be active participants in pursuit of the common good. This form of neighborly love for the poor is a concretization of the principle of justice. As such, the poor have the single most urgent economic claim on the conscience of a nation.

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Stewardship of Creation

Goods of earth are gifts from God, intended for benefit of all

How we treat the environment is a measure of our stewardship and a sign of respect for the Creator

We are entrusted with these gifts to preserve them for future generations

A latecomer to CST, care for resources is a responsibility toward respecting human dignity and working toward peace. As a gift from god, creation is the physical fabric of our lives, providing the necessary resources and backdrop for the pursuit of human fulfillment in our hearts and communities.

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Promotion of Peace

Peace can only come about when we learn to treat each other as brothers and sisters and recognize our shared vocation as children of God.

Positive, action-oriented concept

“Peace is not just the absence of war. It involves mutual respect and confidence between people and nations. It involves collaboration and binding agreements.” ~Pope John Paul II

Peace is not simply the absence of war (though, CST supports those who refuse to take arms on the ground of conscience), but also a complete trust and fraternity between people. Peace should be profound and lasting, and should reflect what we have learned through a relationship with god.

It is still the case that military action may be permissible (even necessary) for the protection of innocents, according to CST. CST does recognize, however, that such cases are rare and most, if not all, conflicts around the world do not meet necessary standards to be considered justified within CST.

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Dignity of Work and Rights of Workers

Work is dignified, and an intrinsic good

Workers must always be respected and valued

The economy must serve people, not the other way around

Workers have rights to productive work, decent and fair wages, safe working conditions, and union organization

Rerum Novarum (the condition of labor) (268)

Work is to be understood as an intrinsic good, not a necessary evil or a means of control. Work is thought to precede “the fall” and so is not punishment. Other important Biblical aspects of work are the importance of keeping the Sabbath and seeing Jesus the carpenter as an example of how work should fit into our lives.

An important element of the Church’s approach to work is the importance of fair and respectful treatment of workers. As such, the Church has historically supported trade unions and state safeguards. Rerum Novarum is a historical Catholic text dealing with the rights and duties of capital and labor. A central theme is the inherent dignity or both labor and laborer. It is considered the first of the Church’s modern social canon. (Pope Leo XIII, 1891)

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The Dignity of Work

Objective and subjective dimension (270-71)

Subjective precedence

Human person as goal of work

Work as a duty (274)

Relationship between labor and capital (276-80)

Labor’s intrinsic priority

Challenges of antagonism

Human work has two dimensions: objective and subjective (outer significance and inner significance). The objective dimension has to do with the activity and the material world in which that activity takes place. The objective dimension of work varies in expression due to changes in political, cultural, and historical contexts. The subjective dimension of human work has to do with the inner meanings of human work. It involves our plans, decisions, rationality, and pursuit of self-realization. The subjective dimension of work is independent of the products it produces (objective). The subjective dimension is what gives work its dignity, since it is not reducible to products or commodities. Since this is so, the subjective dimension must take precedence over the objective. The person should not be seen as an instrument of labor, but as a subject in pursuit of subjective goals. The human person, therefore, is the proper end of work, not the products produced. We work ultimately to achieve self-realization and grow closer to god.

Work is also a duty. We all have an obligation to work because this is how we maintain and develop our own humanity, as well as contribute to our communities and provide for future generations as previous generations have provided for us.

As to the relationship between labor and capital, the Church sees that labor has an intrinsic priority over capital, since this is where dignity is found. There is also a relationship of complementarity between labor and capital. One does not exist within an economic framework without the other. An inherent respect for the dignity of the laborer can lead to greater efficiency, as discussed in 278. We do see, though, that labor and capital often end up in relationships of antagonism, and this presents a challenge to the full expression and recognition of human dignity at work. We should work hard to overcome this relationship, especially considering the concerning modern aspects of this relationship. In 279 the Compendium mentions “an unrestrained quest for productivity” and “the lowest possible wages.” The forces of globalization and technological advancement can expose workers to greater exploitation, and we should take care to maintain respect for the dignity of the laborer at all times.

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The Right to Work

Work is fundamental good and right for all humans (287-90)

How we contribute to the common good and care for our families

Full employment is an objective

Instruction and education as requisite

Presence of women in the workplace (295)

Special care to exploitation of children (296)

As we have made clear, work is a fundamental good for all humans because it is how we express and lend to human dignity. It is also how we contribute to the common good and care for our families. Since it is a fundamental good, it must be available to all people capable of participating. Full employment is a recognized goal (mandatory objective) for any economic system which aims for justice and the common good. No system in which people are hindered from reaching satisfactory employment levels can be ethically justified and cannot be oriented toward peace, and we should examine whether our political or economic policies tend in this direction.

Since employment depends more and more on instruction and educational backgrounds, and with the recognition of changing economic conditions requiring re-training, we should employ educational systems which teach people to act on their own initiative as well as those to support re-training programs for unemployed and supports for those just entering the job market.

In 295, the Compendium says that women need a guaranteed place in the workplace as well; included is the right to instruction and education. The Compendium recognizes long-standing discrimination against women in the workplace and that more needs to be done to address issues of pay, insurance, and social security, among other things.

In 297, the Compendium addresses child labor. There are times when child labor may be justified and necessary, but the Compendium makes clear that many forms of child labor are exploitative and violent in nature and special care should be taken to reduce this exploitation in order to protect human dignity.

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The Rights of Workers

See list of some rights (301)

Fair remuneration and income distribution (302-3)

Fair pay allows worker to gain access to goods

Agreements between parties overruled by justice

Concern with both process and end-state distribution

Right to strike (304)

Right to unionize (305-9)

In 301, the Compendium lists some important rights of workers.

The Compendium says that a just wage is the legitimate fruit of work. A salary is what allows the worker to participate in the activities of human life and pursue the goods necessary to flourish. Remuneration should be fair in the sense that a worker should be able to cultivate his or her own flourishing, that of their community, and in general the common good. If a worker and employee agree upon a wage, this in itself does not make the wage just. There is a natural law which supersedes any agreement, by which “a wage must not be below the level of subsistence.” (Cuilla’s Exploitation of need)

There is also a concern with end-state distribution. The economic well-being of a country is not defined only by its level of production (efficiency), but also by its distribution of wealth. Wealth in a society should be distributed such that everyone can access what is essential to their own personal development. There may be need for social policies for redistribution of wealth, with consideration of both merit and need.

The Church also recognizes the right for workers to peacefully strike, as this can be a way to achieve proportionate benefits of economic activity. It must be peaceful if it is to be morally justified, and becomes immoral when accompanied by violence or other activity contrary to the common good.

The Church also recognizes the right for workers to unionize as this is a method of protecting workers’ rights, and as they contribute to a sense of solidarity among workers. Unions are tools for social justice and should use their power for the common good, specifically to promote cooperation rather than competition. Taking into account economic and historical changes, the Church also notes the necessity for new forms of workers’ associations and worker solidarity.

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Morality and the Economy

Intrinsic relationship between morality and economy (330-34)

Economy’s task is production, distribution, and consumption of material goods and services

Morality asks, “To what end?”

Business Initiatives (336-45)

Business should be characterized by service to the common good

Production of goods and services

Social functions

Profit as indicator, not underlying value

Central importance of owners and managers

The Compendium recognizes the relationship between the economy and morality. These two realms cannot be torn apart, but are intimately joined. Reasons for the one must take into account considerations of the other. We cannot ask for the fulfillment of moral duties which would require operation outside the laws of economics. At the same time, economic activity must operate with considerations of human dignity and the common good. Economic activity is about production, distribution, and consumption of goods and services. But morality guides us in terms of purpose. We are reminded again of the importance of solidarity, and that is economics has a moral character, it should be that it operates for the good of everyone (so that everyone can participate). We are also concerned not just with quantity of production, but also with quality. Simple accumulation is not a moral good. True development (morally and economically) involves not gross accumulation, but pursuit of human happiness. The common good is not served by a culture of consumption or consumerism.

The purpose of business is multifaceted. On the one hand, business often allows individuals to utilize talents in the pursuit of human flourishing. To protect this right, the Church says we must protect individual initiatives and entrepreneurial endeavors. Business also exists to contribute to the common good, by providing goods and services. Also, business serves a social function, allowing opportunities for cooperation and enhancement of human abilities. But business does not exist to serve one person’s private interests. There should always be a conscious recognition that business community exists for the good of everyone.

Profit is recognized as the first indication that a business is functioning well. But the pursuit of profit for profit’s sake is not in accords with the teachings of the Church. There should always be a dedication to social justice, whereby profit is earned without forgetting that business should contribute to the common good and respect the rights of all employees.

Owners and managers hold a central importance because their decisions are felt throughout the company and beyond. Owners and managers should reflect carefully of the motivations of their decisions, making sure that economic concerns do not overshadow their commitment to the concrete recognition of the dignity of all persons.

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