Monday, March 27, 2000

Martin Luther vs. Plato



            Imagine using a time machine to go back to the period of the classical thinkers like Plato and Martin Luther. When given the chance, what would you ask them? While the possibilities are practically endless, these two great philosophers revealed in their works, the circumstances and political and social atmosphere required to create and maintain a good society. It will be discovered how Plato’s ideas found in The Republic reveal what justice is in three realms, political, social and individual. The relationships between classes create a just society. It will be shown that while Martin Luther’s ideas on Christianity and the ideal society are vastly different than Plato’s, each great thinker contributes something to political thought that remains relevant today and elements of each author can contribute to a more ideal society, even in modern times.
            History reveals that many systems of thought have existed and each following generation has viewed the world with a slightly different lens. While this is clear, many of the same social issues have been discussed since the beginning of recorded history. In order to get a clearer understanding and foundation for comparison, we must first focus our attention on the life and theories of Plato. It is said that political thought began to emerge around 400 B.C through the philosophical ideas created by Socrates. While he was very well known for his contributions to political thought, he never officially recorded his ideas for others to share. This is what makes Plato so important and a worthy subject of research, as he was the man to follow Socrates and was responsible for recording much of what is known about both Socrates and Plato’s ideas, as an offshoot of his teacher. Plato’s method of thinking was different than that of the thinkers who came before him. Authors note “Plato’s explorations of political questions in the form of written dialogues, or fictitious philosophic conversations, that are still admired for the beauty of their composition and studied for the depth of their wisdom” (Deutsch & Fornieri, 2009, p. 2). What is remarkable about this great thinker was his devotion to truth and justice, through continuous and deep reflection. Perhaps Plato’s most notorious political concepts are contained within his great work known as the Republic. In this work, he utilizes his creation of dialogues to evaluate many aspects of life, particularly of great relevance to our discussion, is the idea of a good society.
            Throughout the Republic, Plato continues to utilize Socrates as a main character of his philosophical inquiry. Through the conversations with close friends and other well-known thinkers, he is able to bring up the ideas commonly held by others and follow up with reasons why these ideas are valid or not, and to what extent. During book one of the Republic, his conversation with others focuses on the meaning of justice, and commonly held notions of how to go about acting upon this idea. It is said “In response to Thrasymachus’contention that injustice is more profitable than justice, Socrates observes that in justice leads to faction or conflict among human beings, so that they cannot then cooperate with a view to a common enterprise” (Deutsch & Fornieri, 2009, p. 4). With this thought in mind, what can be said about the social and political climate that allows for the creation of order yet seeks to create harmony and find the good of the community? These ideas are discussed in further detail in book one and other sections of the Republic.
            The nature of justice itself is only an intangible dream. What makes the ideal worthy of study is the practical application of the ideal settings in which justice can thrive and the common good can be met, thus creating the ideal society. One main concept discussed by Plato is the idea of social classes, giving way to a more productive society and one which allows specialized involvement of each member of society for a preconceived purpose. In this way, Plato also goes on to discuss the importance of the ideal society having appropriate rule. This can be established through a relatively unknown concept at the time. Plato believed that while each class had their purpose in this ideal society, the ruler should be a philosopher, capable of dialectic inquiry. Authors note;
He concludes by writing that those who become properly trained in argumentation must be tested in the city’s matters before being allowed to practice philosophy and rule the city…Plato argues through the allegory of the Cave and the divided line that philosophers possess true knowledge, and thus are best suited to be guardians (Lublink, 2011, p.5)
The idea of an educated and justice seeking ruler is not the only forefront of the just society but also includes three other classes, with could be said to be just as important. Many have argued the direct reason for acting just during very trying times as experienced by Plato and his fellow thinkers. Due to an imbalance of power and strength, injustice, as manifested through acting out on what one wants despite the chances of others getting hurt as a result, is not the ideal state of being for the common good. We should understand that “Rather than suffer this, the many agree to treat each other justly—not because they believe justice is good in itself, but rather because they fear being treated unjustly by others” (Deutsch & Fornieri, 2009, p. 5) This inherent need throughout society would benefit from a system intended on creating harmony. Perhaps one of the most interesting and important additions to the ideal city is out of the need to find a balance. By following this line of thinking it can be said,
Thus Socrates (as purposed by Plato) contends that the human community requires a division of labor according to which people work only at the jobs for which they are best suited by nature, or for which they have the greatest aptitude. ‘‘One man, one art’’ and ‘‘minding one’s own business’’ become fundamental principles of the Republic’s city in speech (Deutsch & Fornieri, 2009).
Three classes each have their own role in the ideal society. The Artisans purpose is to create goods that can be used by the rest of society. Next, there must be citizens willing to lay their life on the line and protect the public as well as carry out orders of the ruler. Finally, the ruler is meant to be full of wisdom and seek justice. This is why the ruler should ideally be a philosopher. In some ways, the ruler would be known as the true guardians of the city. Authors state “The city’s guardians must be ‘naturally dialectical’, which means that they must be capable of achieving the kind of unified vision described in the allegory of the Cave” (Lublink, 2011, p. 5).
Not only is the class system an important part of the ideal society, other subjects work to form elements that either add or take away from achieving this end. Other virtues are important for the individual as well as the whole society and can be particularly important for the ruler.
These ideas are the emphasis on self-discipline to control physical desires, the value of dialogue, and the requirement that leaders of the ideal state must have acquired adequate knowledge, sufficient experience and wisdom that comes from reaching a mature age before they can start their work as rulers (Lotter, 2003, p.190)
The notion of the importance of wealth in the idea society is also discussed by Plato, and is imperative in understanding his political thought. Not only does this notion allow for the betterment of the citizens but also perpetuates Plato’s notion of seeking and being just. Plato uses dialect found in the Republic to speak on important issues concerning individual morality and thus, also introduces us to circumstances which would either create the ideal society or prevent it. In speaking with an old man in the beginning of the Republic, Plato (technically his characters) question the value of old age and in doing so, gets the response that some money is necessary to help aid morality and good behavior. Authors note “By implication Plato is saying that a lack of money-poverty-makes it very difficult to live a moral life. Adequate resources to escape poverty thus seem a prerequisite for living Plato’s moral life” (Lotter, 2003, p. 192). Other important subjects relevant to fostering the ideal city according to Plato include education and the development of the youth. Perhaps he believed that raising the youth required careful planning and deliberate introduction to certain ideas. Deutsch and Fornieri note;
Both the formation of character in the young and the preservation of character in the mature, it seems, require that some things not be heard. Thus the city in speech, the just city, requires a regime of censorship or public control of speech and artistic expression (Deutsch & Fornieri, 2009, p.13).
The ideas developed by Plato are ones which may seem foreign to the modern society but used and adapted accordingly could serve to bolster a stronger economy and create a just community of loving and caring citizens. The practical application of such ideas will be discussed later in terms of how our modern society may benefit from reverting to classical modes of thought.
            Many philosophers have learned and adapted theories of previous great thinkers while some have looked at an issue or concept in a completely different way. Given the time gap between Plato and Martin Luther, it would be easy to assume that the theories held by each would be drastically different even when attempting to find solutions to similar problems. The theories held by Martin Luther will be the next topic of discussion. A central focus of Luther’s is the idea of giving an order to the balance between politics and Christian thinking. It is through his ideas on Christianity and just actions that we may understand what he may have believed to be the ideal society. He is well known for his actions in resisting the Catholic Church and many of their political expressions of authority over the common people. Authors note the extremist views of the church during the time of Martin Luther in stating “By the end of the Middle Ages such religious claims over the political realm had been formalized in the clearest and most extreme fashion in the idea of absolute papal supremacy” (Deutsch & Fornieri, 2009, p. 145) It was Luther who played a significant role in changing the tide of roman catholic rule and thus helped changed the political culture of the era.
            An important concept to understand is the basis of Christian belief and distinction between Roman Catholicism and Lutherans ideas. Previous thinkers like Aristotle developed the notion of learning to cultivate virtuous and moral behavior through equally virtuous and moral deeds. Authors note;
Theologians from Aquinas down to Ockham and Gabriel Biel had adapted this teaching in various ways to limit the biblical teaching concerning the fallenness of human nature and thereby to define a role in the economy of salvation for the moral efforts of human beings” (Deutshce & Fornieri, 2009).
Luther believed that the Roman church used this thinking to control the citizens of the community in expecting them to do certain deeds, all of which did not necessarily help the individual gain religious salvation. According to his famous posting on the church door at Wittenberg;
For this reason most people are necessarily deceived by that indiscriminate and high-sounding promise of release from penalty… Thus those indulgence preachers are in error who says that a man is absolved from every penalty and saved by papal indulgences (Fordham, 2013).
 It is with this focus that we could take elements of Luther’s beliefs to create the ideal society, through the actions of the individual affecting the rest of society.  Luther does not use his ideas to deny the just and helpful actions of individuals in society yet he understood that these actions could not lead to salvation but nonetheless could lead to a better society. Authors state “ At the same time, the very meaning of good works shifts from an emphasis on sacramental performances, dependent upon the authority of ordained priests, to ordinary service addressing the mundane needs of one’s neighbor” (Deutshce & Fornieri, 2009). In a way, Luther believed that if society was made up of true Christians, who did good deeds and worked towards the betterment of all mankind, there would be no need for traditional leadership or kingship. Another concept covered by Luther was the idea of resistance to tainted authority. He allowed the community to resist the powers of the ruling class if they were to work against the things that were commanded as Christians. It is on this reformation of thought that Martin Luther’s political thoughts are based and despite the fact that they may not hold outwardly obvious relations to political application, the very society created by followers of Luther’s ideas would in fact result in a more ideal society, an important focus of political ideology.
After examining some key points of each philosopher, we can see how each topic discussed can stand alone and also be useful in understanding the larger picture. Each philosopher’s perspective establishing justice, the ideal citizen and the proper use of authority and morality, work to form the ideal society. While the topic is the same, the methods of getting there differ from thinker to thinker; therefore a comparison is needed for further reference. Luther’s ideas were not inherently political while Plato’s did appear to have a more obvious political tone. Both philosophers spoke adamantly about justice yet it was defined in different terms and was manifested in different ways. Luther’s ideas were based mostly off of the recognition of Christian based values and teachings while he spoke out about Roman Catholicism and their political use of papal authority. Plato focused more on establishing a class that helped the ideal society through the division of labor and ruler being distinctly capable of virtuous and moral dialectic thought. To this end, the ruler must be a philosopher to be an effective guardian (ruler). Plato spoke about the role of each person in society in the terms of this separation of jobs based on specific abilities yet Luther used the idea of Christian virtues and actions to establish that everyone should be ministers of Gods words despite the current separation of priests and laity. He believed in the concept of the priesthood of all believers. Plato also spoke about communism of property in regards to the way in which the guardians lived. Luther did bring up concepts regarding the order in which power was established for secular and religious authority and worked against the traditional established ideas of his time and spoke up about the authority of the individual citizen to resist tyrannical authority. This type of resistance did not appear to be a significant idea held by Plato.
While these two philosophers had different ideas on what could lead to the ideal city or society, each author was a product of their era. Luther’s reform and ideas of the importance of Christian beliefs has been an element that has stood the test of time. To some extent, Christian virtues are still seen as an important commodity among political actors. Plato’s idea of the just city is one which may be more practical in theory than in reality when it comes to modern day society, yet many elements of his works hold important relevance to today. Earlier accounts of an attempt to utilize elements that mirrored Plato’s republic were only somewhat successful to say the least. It had been termed the perfectionist movement in the 19th century and was a cult type setting established by John Humphrey Noyes. One element that was derived from Plato’s republic was the sharing of property and wealth. Authors state “From the mid-1840s on, therefore, they agreed to share all their belongings, giving their goods and money over to the community and in turn being supported by it” (Foss,2010, p.4). This was similar to the concept of community forced upon the guardian class of Plato’s republic. Other elements from family relations to sexual partners were dictated by rules which could be seen in both Plato’s Republic and Noyes’s society. Regardless of this early attempt to follow Christian teachings and elements of Plato’s political ideas, the Republic has implications for the 21’st century.
The idea that mature age brings knowledge and helps calm the desires, choosing moral obligation and conversation over desires, is one which we currently hold, to a small degree, in America. Presidents are meant to be over a certain age, most likely to have experience enough to have gained wisdom and understanding. President Clinton made it painfully clear how important control over physical desires can be when it comes to an ideal society and acting as rulers. His inability to remain faithful to his wife had gotten in the way of his moral and political obligations. The role of money and wealth is in fact an important discussion to be made in regards to the ideal society both back then (Plato’s era) and in modern times. In many ways, money is necessary to live a life where other ideas and actions can be perused. If someone is in constant need of money, they may be more willing to act immorally to get it and thus individual justice and society’s justice is lost. An important idea of wealth found in ideas by Plato also discusses the concept of having too much wealth. In America, there is a significant gap between the rich and the poor and this may be why there is a sense of jealousy, discontentment and immoral behavior. Statistical analysis shows that there is a disparity between crime committed by certain races, who tend to be minority and live in areas of high poverty and little distribution of wealth. Immoral acts are committed in an attempt to gain power and provide for oneself, a concept that was meant to be controlled in Plato’s republic.
In some ways, politicians seem to rely on the fact that the majority of society has no formal training and does not necessarily know what is being spoken. Society members are not well versed in the ability to follow Plato’s method to the truth and therefore, modern day politicians are capable of easily leading and misleading the average voter and citizen. Authors state “Plato’s warning in Republic VII is thus a warning about the practice of dialectic in general, and especially a warning about practicing dialectic with or in front of young people “ (Lublink, 2011 p. 9)..Plato seemed to believe that those who blindly seek the truth, (let us say from dialectic questioning politicians) will become more lost than they had been before and will most likely be at the mercy of those providing the information. This has become a major problem with the media and politics today, that the average person is bombarded by information, and will likely trudge through to find the truth only to get lost. Plato also believed in public control of speech and artistic expression. In a modern society this does not exist in most cases. While we do have the FCC who regulates certain mediums like the lyrics of music deemed inappropriate, our society’s freedom of speech allows the expression of the utmost ridiculous ideas and concepts. This can be seen by evaluating the purpose of music and certain television shows. The youth could become corrupt through daily exposure to these mediums and popular culture plays a large role in the socialization of society. This has seemed to create a less than ideal society. Perhaps we would benefit from the regimen of controlled public speech and artistic expression purposed by Plato yet the reality is that Americans are too set in their ways to relinquish this right they deem inalienable, as set forth by the constitution. Despite the goodness it may cause, we are blind and dumb to the far reaching consequences of our actions.
Luther’s contribution to modern thought is also important. America is purported to be founded on Christian beliefs. The constitution was written to be vague enough to allow for interpretation of specific laws according to the situation at hand. It is a living document that is the law of the land in modern times. As a whole, our society has become less and less religious and our political correctness has attempted to establish a clear cut line between church and state. It is based on Luther’s religious focus that I believe many of our society’s problems could be remedied. His ideas on the relevance of Christian virtues would allow us to treat others like we want to be treated; the golden rule. His ideas of resisting tyrannical rule also come into play in our modern society. At times, some rulers may come across as being manipulative and may lie to gain control. Luther’s ideas of resistance in accordance with morality and the harmony of the community would serve the best interest of our nation.
Upon understanding the main concepts of Plato and Martin Luther, we realize that certain blanket problems existed even during their days and will continue to exist well past ours. While the problem of the ideal society can be examined and reached by changing different elements of that society, the combinations and actors will determine which route is necessary in a dynamic society like the United States.  We may understand the importance and relevance of these two philosophers’ ideas yet their practicality may not be as tangible as we may wish. A stubborn society will be one who is not open to new ideas or even ones which were well established in different times throughout history.

           
           
References
Deutsch, K., Fornieri, J. (2009) An Invitation to Political Thought. Belmont, CA: Thomson Wadsworth
Fordham (2013). 95 Theses. Retrieved from http://www.fordham.edu/halsall/source/luther95.txt
Foss, C. (2010). Plato's American Republic. History Today, 60(12), 36-42

Lotter, H. P. (2003). The significance of poverty and wealth in Plato's Republic. South African Journal of Philosophy, 22(3), 189-206
Lublink, S. (2011). Who May Live the Examined Life? Plato's Rejection of Socratic Practices in Republic VII. British Journal for the History of Philosophy, 19(1), 3-18. doi:10.1080/09608788.2011.533009

Sunday, March 26, 2000

In this assignment, I have chosen to do the case study “Verizon: The Legacy of WorldCom and MCI” on pg 351 – 356 of Business Ethics: Ethical Decision Making and Cases. In the following paragraphs, I will address the following four questions: a.) What are the factors that caused WorldCom to crumble? b.) Why did MCI bail out WorldCom? c.) Why did Verizon and Qwest go after MCI? d.) Are there any ethical concerns in the future for Verizon, Qwest, and others?

The factors that caused WorldCom to crumble were illegal accounting practices by finance CFO Scott Sullivan, improper transparency of the well being of the company, and the improper use of company stock by unqualified, CEO Benard Ebbers in order to obtain a controversial loan worth $408 million dollars. CEO Bernard Ebbers also borrowed $2.65 billion from multiple banks which was supposed to be paid in one year; instead WorldCom used the entire amount in six weeks before the banks had a complete discloser. Even when WorldCom was audited by an outside auditor, the illegal activities either were not recognized, or for whatever reason, auditors assumed that WorldCom’s accounting practices were within legal guidelines; however, per the SEC inquiries, the outside auditor’s reply was questionable in its failure to recognize illegal accounting activities in WorldCom. The scenario broke down as following: WorldCom was paying its expenses and attributing that expense to another asset; whereby, not applying it to stockholders equity; which in essence, showed no decrease in net income when it should have. Normally, an accounting formula is assets [cash, land, building(s)] has to equal liabilities [what you owe] , plus stockholder’s equity [how much the company is worth to investors] . Due to their improper accounting practices, WorldCom was unable to pay their 7.7 billion dollars in debt and finally filed for Chapter 11 bankruptcy. The most interesting concept that was brought out in the failing WorldCom investigation was that the Board of Directors were bending to Bernard Ebbers demands and were not looking out for the shareholders; therefore, stock prices for the shareholders have dropped immensely to only 9 cents a share. It appears to me, another point that was brought out by the investigation was some of the accounting employees had a ‘differential association’ like syndrome; whereby, in this case the employees in the accounting department, learned unethical behavior by their fellow associates and used loyalty for superiors as a standard for their behavior. In the final conclusion, the whole ordeal with WorldCom had shattered trust of the shareholders and other stakeholders. (Business Ethics, pg 182, 2008) (Business Ethics, pp 354-355, 2008) (Wikipedia, 2009)

The reason why MCI bailed out WorldCom is initially MCI was subsidiary of WorldCom; whereby, it was only connected by its parent company which was WorldCom and it could still survive, because of Citigroup. MCI was WorldCom’s long distance giant subsidiary. MCI was still in service when WorldCom filed for Chapter 11, thereby, stayed afloat, with the support from Citigroup. To eliminate any uncertainties, Citigroup paid $2.65 billion to alleviate any protracted litigations. Citigroup’s CEO also created a global ‘compliance’ function and had a tight rein on stock ownership rules by making senior managers own 25% of the company’s shares. They also created an ethics hotline for staff issues (Business Ethics, pp 354-355, 2008) (Wikipedia, 2009)

Verizon and Qwest were competing for MCI merger, because MCI had the telecommunication technology with Fortune 500 companies and the federal government; however, Verizon won the merger agreement. Verizon was dominating in the Northeast. Verizon was already larger and in better shape than Qwest; whereby, this knowledge for compatibility was very alluring to MCI. To MCI’s advantage, it owned a portion of Internet backbone via Tier 1 ISP UUNET which in itself was very complimentary to Verizon. Verizon was well aware that customers demanded different high-tech products and services. The solution for Verizon was to buy MCI. Verizon was only a regional provider, but MCI would boost business with corporate clients with a sales force as competitive as AT&T. MCI brings a large residential customer base as well as cable TV services. (Business Ethics, pp 355-356, 2008) (MSNBC, 2005) (MSN Money, 2005)

The question that may be asked is whether there is any ethical concerns in the future. For starters, there are now just five major players for phone service which includes Verizon, Qwest, AT&T, Sprint and a newcomer Vontage. So far, competition among the five is good for the consumer, price-wise. One ethical issue that Verizon has already touch base with is allowing National Security Agency to obtain customer data. To some people this may be considered an invasion to their privacy. To others, they have nothing to fear, because they feel that it needs to be done to keep our homeland safe. This ethical issue is debatable; however, Verizon has experienced civil lawsuits arguing this issue. Another issue for Verizon is some employees are concerned about fair compensation. At the present, Verizon deducts sales commission when the employee fails to persuade directory advertisers to renew accounts. Verizon also deducts employees’ wages if the company has to credit advertisers, which is obviously out of the employees’ control. The outcome of this issue is the employees are now fighting back with a lawsuit. For Vontage, having based its business on Voice-over-IP, there are ethical concerns on packet sniffing and TCP/IP hijacking (both eavesdropping) which can be avoided with encryption streams. The Federal Communication Commission would enforce that if need be. The state-of-the-art G.729 speech codec can be in service over a regular phone line. (Business Ethics, pp 355-356, 2008) (PCworld, 2007) (Vocal, 2009) (ZDnet UK, 2003)

I believe the major point that I acknowledge in this assignment, is ethical issues will eventually arise when CEOs believe that their company can survive, be profitable, and not be accountable even though their ethical company’s culture is very tainted or non-existent. I believe it breeds corruption. Another point is mergers, in itself, is not a necessary evil, rather it can help a company become more competitive and profitable for the company and their stakeholder. It is only when the competition narrows to a limited few that it becomes dangerous to all of us, because now we’re entering the fixed-price-zone without competition, limits choices and may create dissatisfaction among its stakeholders.

References
Ferrel, O. C., Fraedrich, J., & Ferrell, L. (2008). Differential Association In Business Ethics
Ethical Decision Making and Cases (pg 182). Boston, New York: Houghton Mifflin
Company
Ferrel, O. C., Fraedrich, J., & Ferrell, L. (2008). MCI Becomes WorldCom In Business Ethics
Ethical Decision Making and Cases (pp. 354-355). Boston, New York: Houghton Mifflin
Company
Ferrel, O. C., Fraedrich, J., & Ferrell, L. (2008). Verizon in the Future In Business Ethics
Ethical Decision Making and Cases (pp. 355-356). Boston, New York: Houghton Mifflin
Company
Anonymous (2009). MCI Communications
Retrieved February 29, 2009, from Wikipedia website:
http://en.wikipedia.org/wiki/MCI_Communications
Shrader, K. (2006, May 16). NSA denied access to Qwest files by ex-CEO
Retrieved February 29, 2009, from Wikipedia website:
http://findarticles.com/p/articles/mi_qn4188/is_20060513/ai_n16369663?tag=content;col1
Anonymous (2005, February 14). Verizon to buy MCI for $6.7 billion
Retrieved February 29, 2009, from MSNBC website:
http://www.msnbc.msn.com/id/6964419/
Anonymous (2005, February 14). Verizon steals MCI away from Qwest
Retrieved February 29, 2009, from Money Central website:
https://moneycentral.msn.com/content/invest/extra/P109480.asp
Anonymous (2009). G.729 Speech Codec
Retrieved February 29, 2009, from Vocal website:
http://www.vocal.com/data_sheets/g729.html
Dunn, J. (2007, November 23) Expert scares world with VoIP hacking proof
Retrieved February 29, 2009, from PC World New Zealand website:
http://pcworld.co.nz/pcworld/pcw.nsf/feature/19161B2A5CDFF8E2CC25739B006A7693
McCullagh, D. (2007, November 23) FBI seeks power to eavesdrop on Net
Retrieved July 23, 2003, from ZDnet UK website:
http://news.zdnet.co.uk/security/0,1000000189,39115339,00.htm

Friday, March 24, 2000

the Federal Sentencing Guidelines for Organizations and Sarbanes-Oxley Act

The first section includes three key dimensions of ethical compliance in the areas of competition, safety, and environment which are voluntary boundary, core practice, and mandated boundary along with examples. Second, I will give a brief summary of the Sarbanes-Oxley Act and details on its eleven titles. Lastly, I will explain how the Federal Sentencing Guidelines for Organizations (FSGO) keeps organizations ethical.
1.) Voluntary Practices: This is where management initiates boundaries of conduct which includes beliefs, values, voluntary polices and voluntary contractual obligations. An example of this is would be giving back to the community by investing in a piece of land for public usage such as a park that the surrounding community could enjoy, or providing employees with a good health coverage regardless of work hours (part-time vs. full time). (Business Ethics, pg 90-91, 2008)
2.) Core practices: Are usually best practices that are documented that ensure compliance in business. This usually includes legal requirements, industry self-regulation, and social implications. An example of a self-regulatory body would be Better Business Bureau which provides direction for solving customer disputes and reviews advertising cases. The board of directors is usually the people accountable for core practices and is required to oversee ethics and compliance of that particular business. (Business Ethics, pg 91, 2008)
3.) Mandated boundary is the external boundary of conduct. This includes laws, rules and regulations that can affect a company. These laws and regulations are established to protect the stakeholders. And usually these laws can change within time, because these laws encompass regulations that are acceptable by society at that certain time; therefore, what is acceptable during one era, may be changed tomorrow, because of different views by the courts and society. There are laws and regulations established by federal jurisdiction/Congress and state legislation; these laws encourage competition and protection for the consumers, workers and the environment. For any business/organization, ethical and legal standards need to be enforced in order to reduce legal risk and promote ethical standards in today’s society. (Business Ethics, pg 93, 2008) An example of laws promoting safety is OSHA. Laws that promote equality would be The Equal Pay Act of 1963 or Americans with Disabilities Act of 1990. Finally, an example of laws protecting the environment would be regulations of the Environment Protection Agency (EPA) which relates to air, water, and land pollution; this would include the clean air act that many establishments have now; recycling of computer parts, and cleaning up toxic waste caused by businesses, such as Minnesota Mining and Manufacturing Company (3M) dumping perfluorochemical waste in Woodbury Site or the Oakdale Dump in the past. [Minnesota Department of Health, 2005, 2007]
In 2002, the Sarbanes-Oxley Act was implemented to create a federal system that oversees business accounting practices. This law makes securities fraud a criminal offense and establishes harsher penalties for business fraud. This law also created an accounting oversight board that registers, established standards for audits, inspects, investigates, and enforces compliance for accounting practices in businesses. It also requires corporations to establish a code of ethics for financial reporting and develop greater transparency in financial reporting to its investors and stakeholders. This law also requires top management to sign off on their firm’s financial status and hold them responsible for any misrepresentation of their company's financial position through fines and perhaps incarnation. 'It also requires the executives of any company disclose stock sales immediately and prohibits companies from making loans to top executives' This law was established , because of all the deception and fraudulent activity done by businesses, that in itself, created a great distrust in their stakeholders. This act/law was put into effect to gain back the confidence of the stakeholders. A couple examples of companies that did fraudulent activities are Enron and WorldCom. (Business Ethics, pg 15, 102-108, 2008)
There are eleven titles :
Title I, Public Company Accounting Oversight Board – It provides auding services and oversight as stated as above [Sarbanes-Oxley, 2009]
Title II is to establish standards for external auditors independence and limits conflicts of interest. It addresses new auditor, approval requirements, audit partner rotation, and auditor reporter requirements. [Sarbanes-Oxley, 2009]
Title III is corporate responsibility for accuracy and completeness of corporate financials. [Sarbanes-Oxley, 2009]
Title IV is enhanced financial exposures. This includes reporting requirements for financial transactions, off balance transactions, stock transactions of corporate officers, and internal control to ensure accuracy. [Sarbanes-Oxley, 2009]
Title V describes measures to restore investors confidences. [Sarbanes-Oxley, 2009]
Title VI defines practices and conditions to restore investors confidence and security authority to censor or bar security professionals from practice. [Sarbanes-Oxley, 2009]
Title VII requires Comptroller General and Security Executive Commission to study and report their findings. [Sarbanes-Oxley, 2009]
Title VIII is the Corporate and Criminal Fraud Act of 2002 which describes criminal activities for fraudulent manipulation, destruction of financial records. [Sarbanes-Oxley, 2009]
Title IX is the White Collar Crime Penalty Enhancement Act of 2002 which increases criminal penalties created by white collar crime and conspiracies. [Sarbanes-Oxley, 2009]
Title X states that no matter what, the CEO must sign the company tax return. [Sarbanes-Oxley, 2009]
Title XI is a Corporate Accountability Act of 2002 was created to seek out corporate fraud and record tampering and charge the act of criminal offices. [Sarbanes-Oxley, 2009]
One disadvantage of this act is that the cost of compliance is high; therefore, some small businesses and companies outside the USA are opting out of the US market. [House.gov, 2005]
Congress passed the FSGO in 1991 in order for organizations to develop and promote ethical and legal compliance programs; whereby, these programs need to be continuously monitored and updated. The FSGO also made public the guidelines to govern sentencing for offenders by the federal judges. Penalties for sentencing are based on a point system for determining the severity of the offense.
‘The guidelines encourage organizations to develop ‘effective programs to prevent and detect violations of law’, and prescribe seven ‘types of steps’ that should be included in an effective program. Where organizations demonstrate an effort to implement the seven steps, lower sanctions are levied by Federal Judges.’ (Ethics.org, 2008)
The synopsis of this FSGO puts the responsibly of the program effectiveness directly ‘on the shoulders of the firm’s leadership’ Those companies who participate also have the responsibility to collect data and measure the impact on how well employees respond to various ethical and legal risks. [Business Ethics, pg 110, 2008]
Like the Wild West in the past, laws and regulations were passed in order to get crime under control. This is true with businesses that produces fraudulent activities and have a mindset they can get by with it. The Federal Guidelines for Organizations and the Sarbanes-Oxley Act are watch-dogs for the stakeholders, community where the business resides, and the environment of our country. These laws and regulations provide businesses with incentives to take a hard look at their ethical issues and be responsible for their actions. Like I said in the papers before “you do the crime, you do the time”.

Resources
Anonymous (2007, Feburary). 3M Woodbury Site
Retrieved January 31, 2009, from Health Department of Minnesota website:
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Company.

Martin Luther vs. Niccolo Machiavelli



                There are many things that play a role in your life and in the decisions that you make. It could be the way that you were brought up or the lessons that you have learned from past experiences. It could be rules and regulations that are forcing you to act a certain way or do things a certain way. For some, however, there are other factors that play a role in this, and that would be religion. Everyone believes in something different, but no matter what you believe, it can play a role in the decisions that you make. Individuals who are passionate about religion tend to have religion play a role in the decisions that they make. This can make it very difficult to gain support from individuals that do not believe.
            When you are a leader, whether it be a leader of a company or a leader in society, you are going to need to be able to gain support from individuals in order to help you achieve your plans and goals. However, if someone does not like you or does not believe in the same things that you believe in, they are going to be resistant to help you or follow you. This can also be the case when religion is involved. When someone is a leader and many of the decisions that they make are based according to what they believe, that can cause some problems. There are going to be some people that are not going to want to help you or follow you because they do not believe in the same things that you believe in.
            There were two key leaders that experienced this same thing. Niccolo Machiavelli and Martin Luther were two leaders who accomplished some great things. However, they were looked down upon and not followed by some because of the fact that they incorporated religion to some of their greatest accomplishments. They were men who knew what they believed in and felt very strongly about it, and they were not going to let the words or actions of others take that away from them. They stood strong for what they believed and went through life displaying it proudly.
            Martin Luther was a man became one of the most influential figures in Christian history when he began the Protestant Reformation in the 16thcentury (Martin Luther Biography). However, he did not always know that this was going to be the path in life that he was going to take. Martin’s father wanted him to become a lawyer, so he enrolled him in school for that and he received his Master’s degree. In July of 1505, Luther got caught in a violent thunderstorm, in which a bolt of lightning nearly struck him down. He considered the incident a sign from God and vowed to become a monk if he survived the storm. The storm subsided, Luther emerged unscathed and, true to his promise, Luther turned his back on his study of the law days later. Instead, he entered an Augustinian monastery. In 1512, Luther received his doctorate and became a professor of biblical studies. Over the next five years Luther's continuing theological studies would lead him to insights that would have implications for Christian thought for centuries to come. (Martin Luther).
            Perhaps one of the most known pieces of work for Martin Luther was the Disputation on the Power and Efficacy of Indulgences, also known as The 95 Theses. The 95 Theses later become the foundation of the Protestant Reformation. The first two of the theses contained Luther's central idea, that God intended believers to seek repentance and that faith alone, and not deeds, would lead to salvation. The other 93 theses, a number of them directly criticizing the practice of indulgences, supported these first two. The 95 Theses spread very quickly throughout Germany and Rome (Martin Luther and the 95 Theses).
            Niccolo Machiavelli began serving in the political field in 1494 as a diplomat. He served in that position for 14 years in Italy's Florentine Republic during the Medici family's exile, during which time he earned a reputation for deviousness, enjoying shocking his associates by appearing more shameless than he truly was. After his involvement in an unsuccessful attempt to organize a Florentine militia against the return of the Medici family to power in 1512 became known, Niccolo was tortured, jailed and banished from an active role in political life (Niccolo Machiavelli Biography). Despite this treatment, Niccolo never forgot his faith and used that to get through this rough and difficult time in his life. It would have been very easy to give up at a time like this, but Niccolo did not.
            Though it was initially a dark period for his career, Machiavelli's time away from politics gave him the opportunity to read Roman history and to write political treatises. One of his most notable works is a book written called “The Prince.” The main theme of this short work about monarchal rule and survival is man's capacity for determining his own destiny in opposition to the power of fate, which has been interpreted as the political philosophy that one may resort to any means in order to establish and preserve total authority (Niccolo Machiavelli Biography). This was a primary piece of Niccolo’s career and is one of the pieces that he is most known for. However, it was not perceived well by everyone.
            Pope Clement VIII condemned The Prince for its endorsement of rule by deceit and fear. One excerpt from the book reads: "Since love and fear can hardly exist together, if we must choose between them, it is far safer to be feared than loved” (Niccolo Machiavelli). The fact that you have a piece of work that you have dedicated much of your time and effort in to condemned is not something that can be taken easily. This was a time in Niccolo’s life that he really had to stand by what he believed in and continue to move forward. He did just that by writing many other works that displayed what he believed in.
            Both of these men used religion in their day to day lives, and they did not let it influence their way of doing things or their motivation to pursue things the way that they believed they should occur. Both men met some struggles along the way. However, whether their decisions included religion or not, they did not let that influence them. They did what they believed was right and it worked out in the end the way that it should be.















References
Martin Luther. (n.d.). Retrieved November 8 2013 from
 http://www.greatsite.com/timeline-english-bible-history/martin-luther.html
Martin Luther and the 95 Theses. (n.d.). Retrieved November 9, 2013 from
            http://www.history.com/topics/martin-luther-and-the-95-theses
Martin Luther Biography. (n.d.). Retrieved November 7 2013 from
            http://www.biography.com/people/martin-luther-9389283
Niccolo Machiavelli. (n.d.). Retrieved November 9, 2013 from
            http://www.britannica.com/EBchecked/topic/354571/Niccolo-Machiavelli
Niccolo Machiavelli Biography. (n.d.). Retrieved November 7 2013 from
            http://www.biography.com/people/niccol%C3%B2-machiavelli-9392446


           
               
               

Wednesday, March 22, 2000

Karl Marx vs. Adam Smith



Karl Marx vs. Adam Smith
Introduction and thesis
How much authority should be placed in the state? German philosopher, Karl Marx, believed capitalism contained the seeds of its own destruction and that communism was the inevitable end to the process of evolution begun with feudalism and passing through capitalism and socialism (Beales Kaidantzis, 2008). Scottish philosopher, Adam Smith, believed that economic development was best fostered in an environment of free competition that operated in accordance with universal “natural laws” but also felt that the government should enforce contracts, copyrights, and grant patents to encourage inventions and new ideas as well as provide public works (Henderson, 2008). Analysis and contrast of the views of Karl Marx and Adam Smith reveal these philosophers’ markedly different views of how much authority should be placed in the role of state through their individual interpretations of how human nature morally interacts and how those actions determine the level of governance needed to create a society that produces the most benefit.
Karl Marx
Karl Marx’s views on how much authority should be placed in the role of state are intertwined with the symbolic role of money as a representation of social labor. Information retrieved from journal article: Marx and the Mixed Economy: Money, Accumulation, and the Role of the State, author Ann E. Davis ascertains that Marx notes the role of the state is in the issue of money (Davis, 2010).  The author quotes Karl Marx, “Coining, like the establishment of a standard of price, is the business of the State because money is “purely conventional” and must have “general acceptance”” (Davis, 2010). The author explains how Marx felt that money should be managed by the state in proper proportion to gold. The author discusses how Marx analyzed that the role of state is integral to the issue and management of money with money being the manner in which all contracts are settled including taxes as well as payments for wages and commodities (Davis, 2010). Information from the article also suggests that Marx felt that the gold and silver were typical substance that were the universally equivalent of the symbolic role of money as representative of social labor (Davis, 2010).  Marx believed in complete socialism where everything is owned by the people and private property should cease to exist (Ollman, 2004). Marx felt that all land, factories, mines, and businesses should be owned by the people (Ollman, 2004). Marx believed that all food and goods should be equally shared by all (Ollman, 2004). Marx felt that government should equal the people and there should be complete equality and no social classes (Otteson, nd).
Karl Marx’s view of the level of authority needed to ensure the most benefit within a society was one in which Marx felt that a powerful state should be assumed. Karl Marx believed that the role of state is integral to the issue and management of money with money being the manner in which all contracts are settled including taxes as well as payments for wages and commodities (Davis, 2010). Marx viewed capitalism as a systematic misrecognition by implying that individuals are taken not as human beings, but as means of production (Lofton, 2012). Marx contrasted capitalist views in that he maintained that people come to believe certain confused ideas about themselves in the world, and Marx felt those ideas were successful precisely because they seemed liberating, and not oppressing (Lofton, 2012).
Karl Marx rationale of how much authority should be placed in the role of state was one in which Marx believed workers were exploited and disadvantaged by a capitalist system (Davis, 2010). Marx believed that capitalism created problems through permanent social classes. Marx’s views also viewed that under capitalism the poor will suffer because they always be poor. Marx felt that the capacity to issue money is complimentary with other roles of the state such as protection of private property, adjudication of that private property, and the development and protection of foreign markets (Davis, 2010). Marx believed that the commodity form of labor power managed by means of legislation with the associated authority of the capitalist firm (Davis, 2010). Karl Marx believed “the prodigality of the capitalist never possesses the bona-fide of the open-handed feudal lord’s prodigality, but on the contrary has always lurking behind it, the most sordid avarice and the most anxious calculation” (Baumol, 1976). Karl Marx believed that economic forces predicted and determined the outcome of a society (Ollman, 2004).
Adam Smith
Adam Smith’s views on how much authority should be placed in the role is primarily based on the notion that the role of state should be limited but well defined.  In journal article: Unintended Order & Intervention: Adam Smith's Theory of the Role of the State, author: Jeffrey T. Young, the author explains that Smith’s system of natural liberty stating that the sovereign has only three duties to attend to; three duties of great importance, indeed, but plain and intelligible to common understandings: first, the duty of protecting the society from the violence and invasion of other independent societies; secondly, the duty of protecting, as far as possible, every member of the society from the injustice and oppression of every other member of it, or the duty of establishing an exact administration of justice; and thirdly, the duty of erecting and maintaining certain public works and certain public institutions, which it can never be for the interest of any individual, or small number of individuals, to erect and maintain; because the profit could never repay the expense to any individual or small number of individuals, though it may frequently do much more than repay it to a great society (Young, 2005).
Adam Smith’s view of the level of authority needed to ensure the most benefit within a society is derived from Smith’s avid belief that the role of state should be limited but well defined supporting the three natural laws of economics (Lipford & Slice, 2007). Smith three natural laws of economics include: the natural law of self-interest; the natural law of competition; and the natural law of supply and demand (Otteson, nd).  Smith’s view was one in which Smith believed in “Laissez Faire” economics in whereas free trade equals no government regulation or interaction and that nations do not grow wealthy from tariffs (Otteson, nd). Smith’s “Laissez Faire” economics include free market; free economy; and natural laws (Otteson, nd).  In an Independent Review journal article entitled: Adam Smith's Roles for Government & Contemporary U.S. Government Roles, by authors: Jody W. Lipford & Jerry Slice find that Adam Smith viewpoint pertaining to government's proper roles in one of which government's proper role in society should be limited but well defined noting that Smith believed that government should provide national defense, the administration of justice and public goods (Lipford & Slice, 2007).
Adam Smith’s rationale of how much authority should be placed in the role of state is supported by Smith’s belief that limited authority enables the free market which is most economically beneficial to society by promoting self-interest (Lipford & Slice, 2007)Smith felt that the division of labor exploits knowledge and specialization leads to surplus and in turn surplus leading to increasing goods and decreasing prices resulting in “universal opulence”  (McQuillan, 1982). The rationale for Smith’s beliefs is one in which Smith proposes that that each individual would work in his own self- interest for his own benefit (Lipford & Slice, 2007). Smith believed by in doing so, that the people would in turn develop a market where only the value of the perceived benefit expected to delivered by the good and the producers would only sell products for as much as or higher than they would have spent on producing a good (Lipford & Slice, 2007). Smith felt that the obvious and simple system of natural liberty would enable more and more to ascend out of poverty (Otteson, nd).  Smith’s idealistic economy would be one in which there would be no surplus or deficit supply or demand; markets would always be equal, benefiting both consumer and producer (Lipford & Slice, 2007). Adam Smith felt that “it would be a serious mistake to entrust the economic welfare of a society to the good intentions of any man” (Baumol, 1976).
Key Contrasts
Key Contrasts of Karl Marx views and that of Adam Smith. Information retrieved from journal article: THE GOOD SOCIETY: LESSONS FOR INTEGRATED GOVERNANCE, author Christina Neesham notes that the key contrast of Smith’s vs. Marx’s views is Smith’s system of natural liberty and Marx’s political economy of human value (Neesham, 2009).  Smith felt that through the removal of state intervention in economic activities, the perfect system of natural liberty delivers invaluable benefits, such as fair distribution of wealth, equality and justice (Baumol, 1976). Marx's view of the role of state as one in which government is only needed in the revolutionary and socialist stages (Neesham, 2009). The author states that Marx's view implies that based on centrally planned economy, mature communism will have the resources to do away with both government and the market, and enjoy the triumph of civil society (Neesham, 2009). Marx believed in complete socialism in which everything is owned and shared by people including businesses and that all private property should cease to exist (McQuillan, 1982). Smith believed that all companies should be private and free trade, free competition, and the abolition of special privileges (state enforced monopolies will lead to economic prosperity for every one including workers (Otteson, nd)
Conclusion
Adam Smith proposed that the free market, where merchants and manufacturers are free to produce and trade as much as they want and the prices are based upon what the consumers are willing to pay, would result in the most efficient and desirable economic outcome due to the “Invisible Hand” (Baumol, 1976)..  Smith preferring stability, sought peace over revolution. Karl Marx believed that capitalism was fundamentally linked to a society in which it is essentially bound by segments of class which fueled his suggestion of a revolution by the working class against the middle class in hopes of creating a more equal society (Baumol, 1976). Analysis and contrast of the views of Karl Marx and Adam Smith reveal these philosophers’ markedly different views of how much authority should be placed in the role of state based is upon their individual interpretations of how human nature morally interacts ultimately promoting two very different philosophies on how human interaction determines the level of governance needed to create a society that produces the most benefit.










References
Baumol, W. J. (1976). SMITH VS. MARX ON BUSINESS MORALITY AND THE SOCIAL INTEREST. American Economist, 20(2), 1-6. Retrieved December 1, 2013, from http://ehis.ebscohost.com.ezproxy.rasmussen.edu/eds/pdfviewer/pdfviewer?vid=6&sid=4ced124f-189a-46df-aa35-5cacae46ec37%40sessionmgr4002&hid=4110
Beales Kaidantzis, J. (2008). Karl Marx (1818-1883) The Concise Encyclopedia of Economics . Retrieved November 25, 2013, from Library of Economics and Liberty: http://www.econlib.org/library/Enc/bios/Marx.html
Davis, A. E. (2010, July). Marx and the Mixed Economy: Money, Accumulation, and the Role of the State. Science and Society, 74(3), 409-428. Retrieved November 10, 2013, from http://ehis.ebscohost.com.ezproxy.rasmussen.edu/eds/pdfviewer/pdfviewer?vid=12&sid=2aeb0014-54b3-4332-8bdd-f951ae1f2ebd%40sessionmgr112&hid=15
Henderson, D. R. (2008). Adam Smith (1723-1790) The Concise Encyclopedia of Economics. Retrieved November 25, 2013, from Library of Economics and Liberty: http://www.econlib.org/library/Enc/bios/Smith.html
Lipford, J. W., & Slice, J. (2007). Adam Smith's Roles for Government & Contemporary U.S. Government Roles. Independent Review, 11(4), 485-501. Retrieved November 10, 2013, from http://ehis.ebscohost.com.ezproxy.rasmussen.edu/eds/pdfviewer/pdfviewer?vid=20&sid=2aeb0014-54b3-4332-8bdd-f951ae1f2ebd%40sessionmgr112&hid=15
Lofton, K. (2012). THE SIGH OF THE OPPRESSED? New Labor Forum (Murphy Institute), 21(3), 58-65. doi:10.4179/NFL.213.0000008
McQuillan, K. (1982). On the Development of Marxist Theories of Population. Canadian Studies in Population, 9, 109-116. Retrieved December 4, 2013, from http://www.canpopsoc.org/journal/CSPv9p109.pdf
Neesham, C. (2009). THE GOOD SOCIETY: LESSONS FOR INTEGRATED GOVERNANCE. Bulletin Of The Transilvania University Of Brasov. Series V: Economic Sciences, 2(51), 2:213-230. Retrieved November 10, 2013, from http://ehis.ebscohost.com.ezproxy.rasmussen.edu/eds/pdfviewer/pdfviewer?vid=17&sid=2aeb0014-54b3-4332-8bdd-f951ae1f2ebd%40sessionmgr112&hid=15
Ollman, B. (2004). Dialetical Marxism - The Utopian Vision of the Future (Then and Now) A Marxist Critique. Retrieved December 7, 2013, from New York Universtiy: http://www.nyu.edu/projects/ollman/docs/utopian_vision.php
Otteson, J. R. (nd). The Classic Liberal Tradition: Adam Smith vs. Karl Marx. Retrieved December 8, 2013, from Yeshiva University: http://c457332.r32.cf2.rackcdn.com/wp-content/uploads/2010/03/Adam-Smith-and-the-Classical-Liberal-Tradition-10-Read-Only-Compatibility-Mode.pdf
Young, J. T. (2005). Unintended Order & Intervention: Adam Smith's Theory of the Role of the State. History of Political Economy, 37:91-119 ;. Retrieved November 10, 2013, from http://ehis.ebscohost.com.ezproxy.rasmussen.edu/eds/pdfviewer/pdfviewer?vid=25&sid=2aeb0014-54b3-4332-8bdd-f951ae1f2ebd%40sessionmgr112&hid=106