Category Archives: Culture

These posts will deal with Copyright and other cultural topics

MBAs, Ethics and Morals

Posted on by

Yesterday on Facebook I started quite the little discussion after posting a discussion about MBA education based on an article on Bloomberg. The author of the article, a professor at the University of Chicago Booth School of Business. Essentially the article argues that the method used to discuss ethics results in amoral education. What this is saying isn’t that they are teaching a lack of morality, it’s that they aren’t teaching the actual moral result of these choices in a way that makes it clear that one option is moral while the other is not.   Without explicitly stating which option is moral or immoral, it can create ambiguity (we know that business people hate uncertainty) and the illusion that either one of the options could be moral.

Why does this cause a problem? First, not many people actually have any education in ethics to begin with. If someone put together a list of 8 must take classes ethics would be somewhere around 100. Ethics courses aren’t easy and they make you really look at how you think about things, figure out why you think that way and try to make you change the way you think. They aren’t always successful, but ethical thinking is like critical thinking, the more exposure you have to it the more you are able to practice it. The second reason why this is a problem, is that many people going into business school may have less scruples, be willing to take advantage of people or are amoral. Not everyone is, but we know from research that business leaders tend to have personality traits of psychopaths. We also know that in games like prisoner’s dilemma business leaders act the most ruthless (same goes for economists). The only question is the direction of causality. Does business school create these types of people, does it exacerbate these personality types or do these people go into business already behaving in these manners? I don’t know the answer to that question.

While I was in the Netherlands I listened to a seminar that discussed the way that ethics is taught within the Dutch military. All new recruits must go through ethics courses and then every so many years they are required to recertify on the ethics course. The goal is to bring in new officers with a sense of ethical norms that can prevent atrocities and allow officers to do the right thing when they need to. Of course the military believes there is a fine line between creating a thinking solider and a solider that ends up in analysis paralysis because they are going through too many ethical situations in their mind. The goal of the education is to ingrain many of these ethical situations so reaction is more instinctual even for the ethical choice.

I believe that there is a similar balance that needs to be considered in business. What are the social norms for ethical behavior in many institutions? Well, I think that this really does depend on the institution and the environment that they are in. I think there are no ethical norms within the big banks, which has been played out over and over again with the sub prime, then LIBOR and now HSBC’s money laundering. Perhaps the ethics are there, it’s just considered ethical to make as much money as you can without getting caught doing something that is obviously screwing someone over. The question becomes, can a truly ethical MBA graduate come into an environment and succeed? I think that they will be able to do well compared to your average person, but they will quickly be out shined by their unethical colleagues.  These are businessmen, they understand incentives well, so they will adjust their behavior based on their incentives. This is a normal and rational thing to do.

Are there ways to instill more ethical behavior at companies? I think there are ways. Some are through legal changes, which lower the bar for what is considered a crime when it comes to fraud and unethical behavior. This would either drive the behavior more underground (likely) or change some of it. Other ways would be through forcing a cultural norm where these companies are punished through lack of investment and loss of business. This one has a coordination issue. Many people have no qualms about ethical issues that would use a service like this. Additionally, the sheer number of firms behaving unethically makes it unrealistic for a person to buy ethically made products. I wrote about this at the Urban Times, noting that Apple is being singled out when the entire industry behaves in this manner.

Ethics needs to be taught at many different levels, it encourages critical thinking and self reflection. Developing ethical leaders in all respects of business and politics should be a goal of all universities. However, ethics courses are being cut and many people just don’t see the value in them.

You always have a choice

Posted on by

The phrase “You always have a choice” is extremely prevalent in super hero movies. Ranging from Batman Begins to Spiderman 3 to Wolverine. In whatever situation you’re in, you can do the right thing do the wrong thing or through brute force come up with an alternative that you can force to occur. This really epitomizes the rugged individual and the ideal American to some extent. No matter how down on your luck you always have the choice to be or do something better. The GOP really pushes for this, where many of the candidates argue that they were self made men. I think this is also the root cause for a typical response to the 99% protesters (or someone asking for an increase in minimum wage) – “Get a job.” If the choices are get a job, or not work, the C -brute force response now is – “start your own company” or “make your own job.”

Before, you assume I’m just bashing the GOP, this also comes from the left. The environmental movement also assumes this is possible in regard to personal behavior and reducing your carbon footprint. In many cases they assume that it’s easy for people to change their behavior, because they want to protect the environment. If we wanted to we could drive less, we could buy the less impactful light bulb, we could turn off our computers at night, etc, but people are lazy or don’t care.

So, are the GOP and environmentalists right? We’re all lazy and don’t want to make the right choices? That we don’t want to work or that we don’t want to do what’s right for the environment? I think that for the most part neither is true. You will find freeloaders or people that protest saving electricity by turning on as many lights as possible. However, most people don’t behave that way. So what’s the problem? Why do we have uneven unemployment in some areas, why don’t we all work to save the environment?

It goes back the the choices we can make. One of the big assumptions in economics is that the work force is mobile, that when there’s unemployment in one part of the country people move to where the work is. However, we saw that in the US that isn’t true with this recession. The only people moving were migrant workers which may have been illegal. Why? Why wouldn’t someone with no job in California move to another state to find a job? Well some of it comes down to their ability to move. If they own a house and the choice is to lose everything end up in deeper debt because selling your house (if you could sell it) would leave you hundreds of thousands of dollars in the hole with nothing to show for it, do you really have a choice?

In this way our choices are bounded by our situations. A woman may want to drive less because she wants to do what’s best for the environment, but she has a difficult choice. Move closer to work so she could walk and take her children out of a great school and move them into a lower quality school. I think it’s a no brainer which one she would choose. However, let’s say that the schools are the same, her children may not want to move because they’d have to make all new friends. The gains would be very minimal. There are a lot of costs to moving closer to work even if everything else would stay the same. This case also assumes that there’s only one driver. In many cases this choice would involve two people and the trade offs for one driving farther could complete negate the benefits of moving.

Unfortunately, I don’t believe that we are able to make whatever choices we want. Our choices are constrained by the circumstances we live in. There are ways to work around these constraints to improve our ability to make choices, but that is not easy and certainly not free. When we make policies that impact choices and make assumptions about people’s ability to make choices we need to be aware of these constraints and work to remove them.

Texas Repulicans

Posted on by

Yesterday the Texas Republican Party released their platform. It’s terrifying. It starts out innocently enough saying that they plan to uphold the constitution and that everyone is created equally. However, that’s the end of the good stuff. As I tweeted out yesterday there’s a portion that says that they do not support teaching children critical thinking or anything that could lead them to question their current belief system or parental authority.

I can’t think of a better definition of science than critical thinking, questioning current beliefs and authority. When a scientist makes a discovery that doesn’t conform to the current scientific paradigm(program) accepting the results for the experiment REQUIRE these abilities. Looking at the faster than light neutrino fiasco of the past year is a perfect example of this. Scientists saw a result that was highly suspect (faster than light speeds), but they were willing to accept it, if it passed enough tests. They were critical of the results, didn’t accept it on face value, they were willing to question the current paradigm (relativistic physics) and the authority of nearly 100 years of work based on that paradigm.

This is also a case of biting the hand that feeds. Texas’s growth has been fueled through science, technology and research at businesses. With Houston as the center of the oil world, which is driven by better science of getting oil out of the ground, new technologies to do so and the research for increasing the conversion rates from crude oil to gasoline and other goods, you’d think that Texas would understand why it’s important to have scientists. While Texas doesn’t have as many Tier 1 research universities as California (3 vs 9) these three are extremely powerful and wealthy. UT is the 3rd richest in the country and Texas A&M is the 10th. They are both research powerhouses in the academic world. Creating policies that negatively impact the education system that feeds these schools is only going to hurt their abilities to compete in the future.

The Texas Republicans also want to “Teach the Controversy” with equal air time for every side of the argument. In this case when they get to evolution I hope the controversy they discuss is the recent disagreement between Evolutionary Biologists Richard Dawkins and EO Wilson, because that’s the biggest one going on in Evolution right now. However, I know this is not what they mean. They plan to teach the “controversy” of creationism in science class. This is as dangerous as not teaching critical thinking.

If you couple the lack of critical thinking with teach the controversy approach, you have a recipe for disaster. You create students that are unable to really understand the differences and take what the teacher believes at face value. If the “biology” teacher is a creationist (which has happened in some states) then they will not adequately teach evolution and the students will not understand why creationism is wrong and evolution is scientifically accurate. They will be unable to critically reason the differences. This is a terrifying prospect.

These are not the only areas that Texas Republicans are showing that they are out of touch with the youth of America. The DailyKOS has further analysis  a lot of the bad policy stances that are coming down the road in Texas from Republicans.

Upholding of Citizen’s United

Posted on by

Today, the Supreme Court of the United States (SCOTUS), upheld the controversial Citizen’s United ruling of two years ago. I’ve written about some of this in the past and I’ve talked to many people about the implications of this. However, there are two major tenets in this ruling that matter. One: that you cannot limit the amount of money spent during a campaign because that restrict free speech. Two: that two separate groups can raise funds and use their right to speech without corrupting the political candidate. Additionally, there were some ground rules that were established as to when you are considered breaking this ruling and in violation of the law. One of these is that the two groups cannot coordinate their strategies and that the two groups must remain independent of each other. 

In this most recent ruling, the SCOTUS essentially has stated that there hasn’t been any reason to revisit their previous ruling and that it now also applies to states. This is important as Montana had laws on the books that limited the amount of money that could be donated. This law was put into place to fight corruption in 1912.

This ruling is difficult because on one hand, at what point can you limit the amount of money someone wants to spend of their own money on political speech without restricting freedom of speech? If someone is willing to let you put ads up and pay money for it, isn’t it your right to do so? That part of the ruling is really difficult to argue with. However, The part that isn’t hard to argue with is the lack of independence. This has been pretty well displayed during the Republican primary. Without some of the mega funders campaigns effectively folded. Santorum is a prime example of this where his primary doner pulled out and that ended his campaign. Was this person willing to fund him because their views aligned extremely well or was Santorum changing his views to align more closely with the doner? We’ll never know to be sure, but it’s likely that there was conversations between parts of the campaigns and the doner.

In the US we will likely continue to have huge doners and this will likely continue unabated until we are able to pass a law or constitutional amendment to make this sort of donation illegal. Many liberals argue that the 1st amendment for free speech wasn’t designed to allow the wealthy to say whatever they want. That it was to give an equal voice to everyone. Sadly, media is run by people that wish to make a lot of money. Until we figure out a better way to disseminate political information that is unfiltered, we will likely continue to have the same unbalanced views portrayed.

Ex-Pat Entrepreneurs

Posted on by

This morning on KUT I heard about a plan here in Austin to encourage Mexican Nationals to start companies based in Austin. This initiative is being pushed by the Hispanic Chamber of Commerce and Austin’s IC2, an incubator. I think this is a great idea. This will allow a great cross pollination of ideas between Mexico and the United States. Bringing together people with great ideas leads to more interesting ideas. This is something I really loved about my Master’s program. I was continually surrounded by people with big ideas, vision and energy.

I think that this idea also can help Americans see that people in other countries can have and do have, fantastic exciting ideas that can drive technology, the economy and employment. With our US-centric view of entrepreneurship and venture capital we tend to overlook this. It’s not fair and it short changes potential collaborators, because we assume that Americans have the best ideas.

This collaboration also shows that resources in America can be used to help develop entrepreneurship within a community of immigrants. We have seen some of this with Silicon Valley and the Indian and Chinese populations there, but we have not see it with another community in the US or with a Latin American culture. I think that this experiment will be useful in spreading knowledge and developing future entrepreneurs in Mexico to the south.  It will also likely lead to an increase in entrepreneurship within Mexico over time. It will not happen immediately, but a group of these entrepreneurs will eventually move back to Mexico and will start companies there or at least subsidiaries in their home country. This will produce more legitimate work for Mexicans in Mexico that could offer wages that can compete with the drug cartels and develop a larger business community.

This type of growth is important for Mexico, as it will increase the amount of resources for Mexicans to develop their own businesses. It will increase legitimate pressures on the government to fight corruption and make efforts to reduce the impact on organized crime on the government. It will provide employment for highly capable graduates from Mexican universities which will continue to drive improvement for the country.

Most of this is a decade or two in the future, but there will be a great deal of benefits for both Austin, the Hispanic community in the city and for Mexico. Austin will benefit, because it will continue to grow as entrepreneurs will bring more money in, more jobs and new ideas.

The Mexican nationals will fuel increase knowledge sharing between the US and Mexico and will act as de facto ambassadors for their home country. They will educate people on the real Mexico and show Austines that Mexico has a great deal to offer besides amazing food.