ETHICS IN SOCIAL SCIENCES

1. ETHICS IN SOCIAL SCIENCES DILIP NACHANE DIRECTOR, IGIDR UNDP PROGRAMME , IGIDR 23 MARCH 2009

2. "SOCIAL SCIENCE RESEARCH IS ALWAYS AND BY LOGICAL NECESSITY BASED ON MORAL AND POLITICAL VALUATIONS, AND THE RESEARCHER SHOULD BE OBLIGED TO ACCOUNT FOR THEM EXPLICITLY" (MYRDAL).

3. ETHICS (VALUE THEORY, AXIOLOGY) • ETHICS IS CONCERNED WITH WHY AND HOW PEOPLE VALUE ( AS DISTINCT FROM MARKET PRICES) OBJECTS, ( GOODS, SERVICES, IDEAS,ACTIONS, PERSONS, ETC.) • VALUE IS A PROPERTY OF OBJECTS • AN OBJECT WITH A HIGH VALUE MAY BE CONSIDERED AS ETHIC GOOD AND WITH A LOW VALUE AN ETHIC BAD

4. EXAMPLES . EVERY ONE ATTACHES HIGH VALUE TO ACTIONS LIKE SELF-SACRIFICE, CHARITY, MEDICAL HEALING,SCHOLARSHIP ETC. THESE ARE THEN ETHIC GOODS CORRESPONDINGLY ACTIVITIES LIKE CORRUPTION, MURDER, ROWDYISM, ETC ARE ETHIC BADS

5. RELATIVE AND ABSOLUTE VALUES • RELATIVE VALUES ARE SUBJECTIVE DEPENDING ON PERSONAL AND CULTURAL ATTITUDES E.G. SOME SOCIETIES RESPECT SCHOLARSHIP WHILE OTHERS RESPECT RELIGOSITY WHILE STILL OTHERS RESPECT PHYSICAL OR MATERIAL ACHIEVEMENTS. RELATIVE VALUES MAY CHANGE AS THE PERSON OR THE SOCIETY CHANGES.

6. RELATIVE AND ABSOLUTE VALUES (CONTD.) • ABSOLUTE VALUES ARE INDEPENDENT OF PERSONS OR CULTURE. HONESTY,CHARITY AND SELF-SACRIFICE ARE EXAMPLES OF ABSOLUTE VALUES. THEY WOULD COMMAND HIGH RESPECT IN AFRICA, INDIA, MIDDLE EAST OR EUROPE. (MOTHER TERESA, GANDHI, MARTIN LUTHER KING)

7. RELATIVE AND ABSOLUTE VALUES (CONTD.) • SIMILARLY CERTAIN ARTISTS/WRITERS/MUSICIANS ARE UNIVERSALLY RESPECTED (TOLSTOY, SHAKESPEARE, BEETHOVEN ETC.). ONE MAY THEN SAY THAT THEY COMMAND A HIGH ABSOLUTE VALUE.

8. VALUES IN SOME SOCIAL SCIENCES • PSYCHOLOGY : ISSUES OF INTEREST • HOW HUMAN BEINGS DEVELOP, ASSERT,AND BELIEVE IN CERTAIN VALUES. • HOW PERSONAL BEHAVIOUR IS GUIDED BY CERTAIN VALUES • HOW VALUES EVOLVE AT DIFFERENT STAGES OF HUMAN DEVELOPMENT • REFORMING CERTAIN VALUES IN CASES OF DEVIANT BEHAVIOUR (PSYCHO-THERAPY)

9. VALUES IN SOME SOCIAL SCIENCES (CONTD.) • SOCIOLOGY : • PERSONAL VALUES HELD BY VARIOUS COMMUNITIES (TRIBAL, RURAL AND URBAN) • VALUE TRANSITION • VALUE ENGINEERING

10. TWO TYPES OF ETHICAL BEHAVIOUR • FIRST-ORDER ETHICAL BEHAVIOUR : DOING THE RIGHT ACTION SIMPLY BECAUSE IT IS RIGHT , AND THE INDIVIDUAL DERIVES NO BENEFIT FROM PERFORMING THE ACTION (ANONYMOUS DONATION, HELPING ACCIDENT VICTIM) COMMITMENT • SECOND-ORDER ETHICAL BEHAVIOUR : DOING A RIGHT ACTION FROM WHICH THE INDIVIDUAL DERIVES A MEASURE OF UTILITY (CHARITY) SYMPATHY

11. TWO TYPES OF ETHICAL BEHAVIOUR (contd.) • COMMITMENT (FIRST-ORDER ETHICAL BEHAVIOUR) FAVOURS CORRECTIVE ACTION BECAUSE YOU FIND THE SITUATION ETHICALLY UNACCEPTABLE (HUMAN & ANIMAL RIGHTS) • SYMPATHY (SECOND-ORDER ETHICAL BEHAVIOUR) FAVOURS ACTION BECAUSE YOUR WELFARE IS DIRECTLY AFFECTED BY A CONCERN FOR OTHERS (CHARITY, MAINTAINING A QUEUE ETC.)

12. VALUES IN ECONOMICS • ECONOMIC VALUE RELATES TO THE PRICE A COMMODITY COMMANDS IN THE MARKET BECAUSE OF SUPPLY/DEMAND SITUATION, WHEREAS INTRINSIC VALUE IS THE INHERENT VALUE TO THE INDIVIDUAL • (WATER-DIAMOND PARADOX) • ETHICAL VALUE IS VALUE OF A GOOD OR ACTIVITY TO SOCIETY

13. ECONOMIC VALUE VS. ETHICAL VALUE • ECONOMIC AND ETHICAL VALUES MAY SOMETIMES BE IN CONFLICT. CIGARETTE INDUSTRY MAY HAVE ECONOMIC VALUE AS IT GENERATES INCOME FOR TOBACCO GROWERS, WORKERS, HEART AND CANCER SURGEONS, GOVERNMENT ETC. BUT IT DOES NOT HAVE MUCH ETHICAL VALUE (SIMILARLY ALCOHOL, DRUGS ETC.)

14. VALUES IN ECONOMICS • CAN ECONOMICS BE VALUE-FREE? OR DOES MORALITY MATTER TO ECONOMIC ANALYSIS? • THIS QUESTION HAS AGITATED ECONOMISTS FOR AT LEAST TWO CENTURIES.

15. VALUES IN ECONOMICS – A BRIEF HISTORICAL ACCOUNT • 1. UTILITARIANISM OR NEO-CLASSICAL APPROACH : • JEREMY BENTHAM (1748-1832) : • MORALS AND LAW CAN BE APPROACHED SCIENTIFICALLY • NATURE CAN BE EXPLAINED WITH REFERENCE TO LAWS OF PHYSICS, SO ALSO HUMAN NATURE CAN BE EXPLAINED BY THE PRINCIPLES OF PLEASURE & PAIN (PSYCHOLOGICAL HEDONISM).

16. JEREMY BENTHAM (1748-1832) : • PLEASURE AND PAIN ARE OBJECTIVE STATES AND ARE MEASURABLE IN TERMS OF A SINGLE NUMBER (UTILITY). THUS I CAN SAY THAT I DERIVE 20 UTILS FROM LISTENING TO BEETHOVEN’S 9TH SYMPHONY. IF YOU SAY THAT YOU GET 10 UTILS FROM THE SAME, THEN MY PLEASURE IS DOUBLE YOURS. PAIN CAN BE EXPRESSED IN NEGATIVE UTILS

17. JEREMY BENTHAM (1748-1832) : • EACH INDIVIDUAL EXHIBITS A NATURAL, RATIONAL SELF-INTEREST (EGOISM) • SELF-INTEREST DOMINATES OVER SOCIAL INTEREST • COMMUNITY INTEREST IS SIMPLY THE SUM OF THE INTERESTS OF THE INDIVIDUAL MEMBERS COMPOSING IT.

18. EXTENSIONS • LATER ECONOMISTS (SIDGWICK, MARSHALL, PIGOU) DEVELOPED UTILITY THEORY INTO A FULL SCALE NEO-CLASSICAL THEORY BASED ON THE FOLLOWING ASUMPTIONS : • UTILITY IS MEASURABLE (CARDINAL) AND ADDITIONAL CONSUMPTION YIELDS SMALLER AND SMALLER INCREMENTS TO UTILITY. • DIFFERENT PERSONS’ UTILITIES ARE COMPARABLE AND HENCE CAN BE ADDED

19. NEW WELFARE ECONOMICS • PARETO, HICKS, KALDOR ETC. • DISTINGUISH BETWEEN EFFICIENCY AND EQUITY. AVOID CONCEPTS OF CARDINAL UTILITY AND INTERPERSONAL COMPARISONS. • A SITUATION IS PARETO EFFICIENT IF BY ANY ALTERATION OF THE SITUATION WE CANNOT MAKE EVERYBODY BETTER OFF • EXAMPLES(PARETO INEFFICIENCY) INTRODUCTION OF A QUEUE AT A COUNTER, TRAFFIC LIGHTS AT A JUNCTION ETC.)

20. PARETO EFFICIENCY (CONTD.) • MOST REAL-LIFE SITUATIONS ARE MORE COMPLEX. AS AN EXAMPLE TAKE THE CASE OF CONSTRUCTION OF A BRIDGE FINANCED BY TAXES ON THE RESIDENTS IN THAT AREA. VEHICLES USING THAT BRIDGE GAIN BUT TAX PAYERS IN THAT AREA LOSE. • IF THE TOLLS THAT CAN BE COLLECTED FROM USERS OF THAT BRIDGE ARE SUFFICIENT TO REPAY THE TAXES COLLECTED WITH INTEREST THEN THE SITUATION CAN BE CONSIDERED PARETO OPTIMAL. OTHERWISE NOT. (KALDOR COMPENSATION PRINCIPLE) • OTHER EXAMPLES -- CONSTRUCTION OF A DAM, POLLUTING FACTORIES ETC.

21. EQUITY UNDER PARETO PRINCIPLES • EACH PARETO OPTIMUM MAY CORRESPOND TO A DIFFERENT INCOME DISTRIBUTION, SOME OF WHICH MAY INVOLVE GREAT INEQUALITIES. • DIFFERENT PARETO OPTIMA CAN BE COMPARED ONLY IF WE ASSIGN WEIGHTS TO THE WELFARE OF DIFFERENT INDIVIDUALS. THIS INVOLVES INTERPERSONAL COMPARISONS OF WELFARE. (SOCIAL WELFARE FUNCTION)

22. SOCIAL WELFARE FUNCTION

23. SOME CRITICISMS OF PARETIAN WELFARE ECONOMICS • WELFARE ECONOMICS GUIDED BY THE PRINCIPLE THAT WHAT MATTERS MOST IS THE WELFARE OF THE COMMUNITY—IN PRACTICE WELFARE IS IDENTIFIED WITH UTILITY • IT IGNORES THE FACT THAT MY UTILITY FROM AN OUTCOME DEPENDS ON HOW OTHERS ARE AFFECTED BY THAT OUTCOME

24. CRITICISMS OF PARETIAN WELFARE ECONOMICS (CONTD.) • INTERPERSONAL COMPARISONS AND VALUE JUDGEMENTS ARE INVOLVED. • MERE COMPENSATION IS NOT ENOUGH (E.G. DAM CONSTRUCTION AND DISRUPTION OF LIFE STYLES)

25. TWO FUNDAMENTAL CRITICISMS OF PARETO EFFICIENCY • 1. LIBERAL PARADOX • 2. THEORIES OF DISTRIBUTIVE JUSTICE • WE NOW HAVE A VERY BRIEF DISCUSSION OF EACH OF THE ABOVE CRITICISMS.

26. LIBERAL PARADOX

27. EXPLANATION • FOR EACH OUTCOME, RED COLOUR SHOW’S WIFE’S OUTCOME AND GREEN HUSBAND’S OUTCOME • UNDERLINED OUTCOMES ARE PARETO OPTIMAL (BOTH CANNOT BE BETTER OFF BY MOVING AWAY FROM THESE OUTCOMES)

28. LIBERAL PARADOX EXPLANATION (CONTD). • HUSBAND’S PREFERENCE : • STAYING HOME ALONE >GOING FOR MOVIE WITH WIFE > STAYING AT HOME WITH WIFE > GOING FOR MOVIE ALONE • WIFE’S PREFERENCE: GOING FOR MOVIE WITH HUSBAND > STAYING AT HOME WITH HUSBAND> GOING FOR MOVIE ALONE > STAYING AT HOME ALONE

29. AN IMAGINARY CONVERSATION • WIFE : I WANT TO GO FOR A MOVIE • HUSBAND : I WANT TO STAY HOME. YOU GO FOR THE MOVIE ALONE. • WIFE : OK. I WILL ALSO STAY AT HOME • ------------------------------------------------------- • H : WANT TO GO FOR A MOVIE OR STAY HOME? • W : LET’S GO FOR A MOVIE • H: I WOULD PREFER TO STAY HOME • W : OK. LET’S STAY HOME.

30. LIBERAL PARADOX EXPLANATION (CONTD). • THUS EVEN THOUGH THE PARETO OPTIMAL OUTCOMES ARE : • EITHER BOTH GO FOR A MOVIE OR • WIFE GOES FOR THE MOVIE ALONE • THE ACTUAL OUTCOME IS : • BOTH STAY AT HOME, WHICH IS NOT PARETO OPTIMAL, SINCE BOTH WOULD BE BETTER OFF BY GOING TO THE MOVIE

31. SOME OTHER THEORIES OF DISTRIBUTIVE JUSTICE • 1. STRICT EGALITARIANISM : • EVERY PERSON SHOULD HAVE THE SAME LEVEL OF MATERIAL GOODS & SERVICES • CRITICISMS : (I) UNDULY RESTRICTS FREEDOM AND INITIATIVE (II) MAY BE IN CONFLICT WITH WHAT PEOPLE DESERVE (III) EQUAL INCOMES MAY BE A PARETO INEFFICIENT SITUATION. • CARENS, J. (1981) : EQUALITY, MORAL INCENTIVES AND THE MARKET, CHICAGO UNIV. PRESS

32. STRICT EGALITARIANISM : SOME ISSUES • 1. SHOULD CONCEPT BE EXTENDED TO INCLUDE EQUALITY OF OPPORTUNITY ? • 2. MAY NOT BE WELFARE MAXIMIZING • 3. TIME-FRAMES. WHETHER STRICT EQUALITY APPLIES ONLY AT SOME INITIAL POINT (STARTING –GATE VERSION) OR WHETHER SHOULD HOLD AT ALL TIMES.

33. SOME OTHER THEORIES OF DISTRIBUTIVE JUSTICE • 2. RAWLS’ THEORY OF JUSTICE : • BASIC LIBERTIES OF A PERSON : • 1. POLITICAL LIBERTY (VOTING AND CONTESTING ELECTIONS) • 2. FREEDOM OF SPEECH AND ASSEMBLY • 3. FREEDOM OF PROPERTY • 4. FREEDOM FROM ARBITRARY ARREST

34. RAWLS’ THEORY OF JUSTICE (CONTD.) • RAWLS’ FIRST PRINCIPLE : • EACH PERSON IS TO HAVE AN EQUAL RIGHT TO THE MOST EXTENSIVE SCHEME OF EQUAL BASIC LIBERTIES, COMPATIBLE WITH SIMILAR LIBERTIES FOR OTHERS.

35. RAWLS’ THEORY OF JUSTICE (CONTD.) • RAWLS’ SECOND PRINCIPLE : • INEQUALITIES ARE JUSTIFIABLE IF THEY IMPROVE THE LOT OF THE LEAST-ADVANTAGED MEMBERS OF SOCIETY I.E INEQUALITY SHOULD NOT BE ACHIEVED BY WORSENING THE POSITION OF THE LEAST ADVANTAGED (DIFFERENCE PRINCIPLE)

36. ILLUSTRATION OF RAWLS’ SECOND PRINCIPLE

37. CRITICISM OF SECOND (DIFFERENCE) PRINCIPLE • 1. MAY NOT BE PARETO OPTIMUM • 2. MAY CONFLICT WITH FIRST PRINCIPLE. VERY LARGE RELATIVE WEALTH DIFFERENTIALS MAY MAKE IT DIFFICULT FOR THE POOR TO BE ELECTED TO POLITICAL OFFICE

38. RAWLS’ THEORY OF JUSTICE (CONTD) • RAWLS’ THIRD PRINCIPLE : • OFFICES AND POSITIONS MUST BE OPEN TO ALL UNDER CONDITIONS OF FAIR EQUALITY. • FAIR EQUALITY ═> OFFICES AND POSITIONS ARE DISTRIBUTED ON THE BASIS OF MERIT AND ALL HAVE REASONABLE OPPORTUNITY TO ACQUIRE THE SKILLS ON THE BASIS OF WHICH THAT MERIT IS ASSESSED.

39. DESERT-BASED PRINCIPLES OF DISTRIBUTIVE JUSTICE • INTELLECTUAL BASIS : • ARISTOTLE : VIRTUE SHOULD BE THE BASIS OF DISTRIBUTION OF REWARDS IN A SOCIETY • JOHN LOCKE : INDIVIDUALS SHOULD BE ENTITLED TO THE FRUITS OF THEIR OWN LABOUR AND ABSTINENCE

40. DESERT-BASED PRINCIPLES OF DISTRIBUTIVE JUSTICE (CONTD.) • PEOPLE DESERVE CERTAIN ECONOMIC BENEFITS IN THE LIGHT OF THEIR ACTIONS • CONTRIBUTION : PEOPLE SHOULD BE REWARDED FOR THEIR WORK ACCORDING TO THE VALUE OF THEIR CONTRIBUTION TO THE SOCIAL PRODUCT (DOCTORS, TEACHERS ETC. SHOULD BE PAID HIGHER THAN ARTISTS, LAWYERS ETC.) • MILLER, DAVID (1989) : MARKET, STATE & COMMUNITY – CLARENDON PRESS, OXFORD

41. DESERT-BASED PRINCIPLES OF DISTRIBUTIVE JUSTICE (CONTD.) • EFFORT : PEOPLE SHOULD BE REWARDED ACCORDING TO THE EFFORT THEY EXPEND IN THEIR WORK ACTIVITY (PHYSICAL WORKERS, FARMERS ETC. DESERVE GREATER COMPENSATION THAN POETS, DRAMATISTS AND STOCKBROKERS ) • MILNE, H. (1986) : JOUR. OF APPLIED PHILOSOPHY , VOL. 3, P.235-243 • SADURSKI, W. (1985) : GIVING DESERT ITS DUE (D.REIDEL: DORDRECHT, HOLLAND)

42. DESERT-BASED PRINCIPLES(CONTD.) • COMPENSATION : PEOPLE SHOULD BE REWARDED ACCORDING TO THE COSTS THEY INCUR IN THEIR WORK ACTIVITY (WORKERS IN SULPHUR-BASED INDUSTRIES, LAB TECHNICIANS WORKING WITH RADIO-ACTIVE MATERIAL, FIREMEN, TRAFFIC POLICEMEN ETC. NEED HIGHER SALARY AS THEIR WORK INVOLVES SUBSTANTIAL COSTS AND RISKS TO HEALTH AND LIFE)

43. OTHER THEORIES OF JUSTICE • 1. LIBERTARIAN THEORY (NOZICK(1974)—ANARCHY, STATE & UTOPIA, BASIC BOOKS, NY) • 2. RESOURCES-BASED DISTRIBUTIVE JUSTICE (DWORKIN (2000) –SOVEREIGN VIRTUE, HARVARD UNIV. PRESS) • 3. FEMINIST THEORIES(MACKINNON (2001)- SEX EQUALITY , FOUNDATION PRESS, NY) • 4. THEORY OF ENTITLEMENTS (SEN, A.K.(1982) -- POVERTY AND FAMINES : AN ESSAY ON ENTITLEMENTS AND DEPRIVATION, OXFORD, CLARENDON PRESS.

44. SEN’S ENTITLEMENTS THEORY : BRIEF DISCUSSION • 1. INTRODUCED BY SEN (1984) TO STUDY FAMINES • 2. A PERSON’S ENTITLEMENT SET IS THE FULL RANGE OF GOODS & SERVICES THAT HE CAN ACQUIRE BY CONVERTING HIS ENDOWMENTS (ASSETS, RESOURCES, LABOUR POWER ETC.) THROUGH EXCHANGE ENTITLEMENT MAPPINGS.

45. FOUR CATEGORIES OF ENTITLEMENTS • 1. PRODUCTION BASED (GROWING FOOD) • 2. TRADE BASED (BUYING FOOD) • 3. OWN LABOUR BASED (WORKING FOR FOOD) • 4. TRANSFER BASED (BEING DONATED FOOD BY GOVT/NGOs ETC)

46. INDIVIDUAL FACES STARVATION IF ALL ENTILEMENTS FALL SHORT OF SUBSISTENCE • FAMINE RAISES THE POSSIBILITY OF STARVATION AS IT RESULTS IN CATASTROPHIC DECLINES IN PEOPLE’S ENTITLEMENTS

47. TWO CAUSES OF FAMINES • 1. EXCHANGE ENTITLEMENT DECLINE (RISING FOOD PRICES, FALLING WAGES) • 2. FAD (FOOD AVAILABILITY DECLINE) • SEN LAYS GREATER STRESS ON FIRST CAUSE

48. CRITICISMS • 1. AMBIGUITIES IN SPECIFICATION OF ENTITLEMENTS • 2. ENTITLEMENT RELATIONS CONCENTRATE ON RIGHTS WITHIN THE GIVEN LEGAL STRUCTURE BUT DOES NOT COVER TRANSFERS OCCURRING DUE TO LOOTING, BRIGANDAGE ETC

49. 3. ACTUAL FOOD CONSUMPTION MAY FALL BELOW ENTITLEMENTS DUE TO IGNORANCE, FIXED FOOD HABITS, APATHY • 4. NOT ALL FAMINE MORTALITY IS DUE TO STAVATION –EPIDEMICS ARE AN EQUALLY IMPORTANT CAUSE • 5. FAMINES IN AFRICA SEEM TO BE BETTER EXPLAINED BY FAD THAN ENTITLEMENTS

50. ETHICS IN BUSINESS ORGANIZATIONS • MORAL OBLIGATIONS TO SHAREHOLDERS AND CREDITORS: PROPER AUDITING & ACCOUNTING PROCEDURES (DISCLOSURE OF COSTS AND PROFITS), NO SECRET BUSINESS OPERATIONS ETC.