Codes of Ethics in Companies are Not Only Superfluous but Also Meaningless
In the modern business world, codes of ethics are ubiquitous. They are intended to provide companies with guidance on ethical behavior and emphasize their responsibility to society. However, how ethical are these codes really? Can companies impose ethical rules on themselves, or are these codes merely a reaction to legal requirements? In this article, I will explore these questions from various perspectives, particularly through the lens of the philosophical concepts of Immanuel Kant and Emmanuel Levinas.
Ethics —> Law —> …
Codes of ethics in companies are formal documents that establish rules of conduct and moral principles. They are meant to ensure that all employees adhere to certain ethical standards. However, these codes often merely reflect legal requirements or anticipate future regulations. In this context, it can be argued that codes of ethics are essentially circular, as they are based on laws that, in turn, are founded on ethical principles.
Laws themselves are the result of ethical considerations and societal consensus on what is considered right and wrong. When companies create codes of ethics that merely reflect legal requirements, they essentially reinforce what is already established. This raises whether such codes truly offer added value or simply reiterate existing legal norms.
Philosophical Perspectives
- Immanuel Kant: Categorical Imperative
Kant’s Categorical Imperative states that one should act only according to that maxim whereby one can, at the same time, will that it should become a universal law. This principle demands universal rules and duties, regardless of consequences. In corporate ethics, this means that companies should act not only out of self-interest or to fulfill legal requirements but out of moral duty.
However, critics argue that Kant’s ethics are too formal and do not adequately consider the complex realities of the business world. For instance, strict universal principles could conflict with the dynamic and often contradictory demands of the market.
- Emmanuel Levinas: Ethics of Responsibility
Levinas, on the other hand, places the relationship with the Other at the center of his ethics. For him, the encounter with the face of the Other is the origin of ethical responsibility, which is infinite and cannot be reduced to rules. In business ethics, this means that companies have a responsibility to their stakeholders that goes beyond formal frameworks.
This perspective challenges companies to take on ethical responsibility in a more comprehensive and often less tangible sense. Implementing these principles in practice can be difficult, especially in a competitive environment that frequently prioritizes short-term profits over long-term ethical commitments.
Business Ethics and Their Implications
The term “business ethics” suggests that different ethical rules should apply to business than to other areas of life. However, this seems questionable. Ethics should be applied consistently across all areas of life. The question, then, is why different standards should be applied in business.
In practice, however, it typically turns out that business decisions are subject to different pressures than personal or social decisions. In short: it’s about money. This leads to the challenge of applying general ethical principles in this specific economic context.
Motivation for Codes of Ethics
The introduction of codes of ethics is regularly motivated by marketing reasons. The aim is to improve the company’s image and gain the trust of customers and society. “Sustainability” is one of the buzzwords most frequently mentioned.
However, if everyone acted according to ethical principles, as Kant demands, such codes would be superfluous or even meaningless. Companies that establish ethical rules but do not implement what they print on paper in dealing with people, finances, and the environment are unscrupulous. This should be made publicly clear. Companies must be measured by how they implement their own rules.
Disgraceful Examples
Looking at concrete examples can help assess the impact of codes of ethics. Companies like Siemens, Volkswagen, Iveco, Daimler, Volvo, and DAF had introduced codes of ethics but were still at the center of major scandals. Currently, those responsible for Cum-Ex, a billion-dollar fraud at the expense of German taxpayers, are on trial. These examples raise the question of whether codes of ethics in practice really lead to more ethical behavior, or if they are often merely used as PR tools.
Wasted Potential
Codes of ethics have the potential to promote ethical behavior, but there is a risk that they will be degraded to formal and instrumental purposes. The philosophical concepts of Kant and Levinas offer valuable perspectives to understand the foundations and challenges of corporate ethics. However, implementation almost always fails because nearly exclusively financial aspects are brought to the forefront of economic actions.
