ECONOMIC ETHICS – DISCIPLINE AND RESPONSIBILITIES GEORGI FILIPOV Master in EU Program and projects, EU Integration Europe on the move – NGO in the field of education, youth and culture [email protected] Bulgaria CONTENTS 1. World Economic ethics 2. EU economic ethics 3. Bulgaria and economic ethics In his book “Ethics in Economics”, Jonathan B. Wight explains how important are ethical considerations in Economics’ life. Wight calls for a deeper examination of the origin and evolution of our moral norms. He argues that economic life relies on three interrelated ethical systems: outcome-based, duty- and rule-based, and virtue-based. Integrating contemporary theoretical and applied research on ethics within a historical framework. Some good examples for the meaning of Ethics in the Economic world are: the financial crisis in 2008, the moral limits of the markets, the innovative concept of ethical pluralism and all these lead to better understanding of human behavior and better policy decisions. In the present paper I tend to research on three main spheres of the Ethics in Economics: World Economic Ethics; EU and the Ethics in Economy and Bulgaria. The research will give positive and negative examples in the sphere and will create long lasting bridges for the Economies in the world to accept Ethics in their everyday environment. The essence of Economics involves individuals to make decisions within a social environment. Even the biggest villain still has social feelings. As, Adam Smith – the founder of Economics says: “Choices in economics are often framed by social relations and governed by different ethical norms and viewpoints”. Wight tends to determine the economic actors as homo economicus – socially isolated and morally disinterested egoists. Before we can proceed with the main part of the research it is vital to determine what Ethics mean: “The study of one’s proper interactions with others: it is the analyses of right and wrong.” Very important in Economics is to discover how humans interact in groups. Ethics provides the “institutional framework” within which economic activity unfolds. The biographies of great entrepreneurs show that they often hold complex motives and inspire others for a variety of reasons. Many technological breakthroughs of the 20th century, for example—relativity, computing, DNA, television, and the Internet—were driven by entrepreneurs with non-pecuniary motives. So how does the world acts when hears – Ethics in Economics? 1. World economic ethics Economists have long assumed that ‘value’ and ‘price’ are synonymous and interchangeable. The various contributions explore the different dimensions at the frontier between the rational and the moral in political economy, ethics and philosophy. “Do market prices reflect values? What is the relation between social norms and economic incentives? Do economic agents respond to ethical arguments?” In the declaration Manifesto for a Global Economic Ethic fundamental principles and values of a global economy are set forth, according to the Declaration toward a Global Ethic issued by the Parliament of World Religions. The Manifesto lays out the fundamental principles and values of a global economy. The goal of the manifesto is to start a dialog. It aims to address all stakeholder groups in the business world, to create a cultural and ethical framework across borders. According to the documents - all players should respect and protect the internationally accepted codes of conduct for business, and contribute to realizing them within their sphere of influence. The signatories commit themselves to be guided by both the letter and the spirit of this declaration in their day-to-day business decisions, actions, and conduct. The basic values for global economic activity are: non-violence and respect for life; justice and solidarity; honesty and tolerance and mutual respect and partnership. Intelligibility and fairness, data protection and education for all are among the main principles for Ethics in Economy. One of the main documents which lay the foundations in the field is called Manifesto of Global Economic Ethics. The Preamble of the documents cites: “For the globalization of economic activity to lead to universal and sustainable prosperity, all those who either take part in or are affected by economic activities are dependent on a values-based commercial exchange and cooperation. This is one of the fundamental lessons of today’s worldwide crisis of the financial and product markets. A global economic ethic – a common fundamental vision of what is legitimate, just, and fair – relies on moral principles and values that from time immemorial have been shared by all cultures and have been supported by common practical experience. Each one of us – in our diverse roles as entrepreneurs, investors, creditors, workers, consumers, and members of different interest groups in all countries – bears a common and essential responsibility, together with our political institutions and international organizations, to recognize and apply this kind of global economic ethic. The principles in this manifesto can be endorsed by all men and women with ethical convictions, whether these be religiously grounded or not. Every human being should be equal no matter his sex, age, religion, etc. and he possesses inalienable and untouchable dignity. According to article 1 of the Manifesto: “The ethical goal of sustainable economic action, as well as its social prerequisite, is the creation of a fundamental framework for sustainably fulfilling human beings’ basic needs so that they can live in dignity.” Humanity will benefit only when there is respect for the individual. Good should be promoted against all evil. What you do not wish to yourself, do not do to the others. The principle of humanity makes it possible to do global business: “To be authentically human in the spirit of our great religious and ethical traditions means that in public as well as in private life we must be concerned for others and ready to help. Every people, every race, every religion must show tolerance and respect – indeed high appreciation – for every other. Minorities – be they racial, ethnic, or religious – require protection and support by the majority.” Responsibility creates social policies. They create Business relations. Business it means – Economic activities. Economy in Ethics – World Business Ethics. Sustainable treatment of the natural environment on the part of all participants in economic life is an uppermost value-norm for economic activity. To be an authentic human being means – in the spirit of the great religious and ethical traditions – not misusing economic and political power in a ruthless struggle for domination. Such power is instead to be used in the service of all human beings. Self-interest and competition serve the development of productive capacity and the welfare of everyone involved in economic activity. Therefore, mutual respect, reasonable coordination of interests, and the will to conciliate and to show consideration must prevail. Articles 9 of the document states: “A major goal of every social and economic system that aims at equal opportunity, distributive justice, and solidarity is to overcome hunger and ignorance, poverty and inequality, throughout the world. Self-help and outside help, subsidiarity and solidarity, private and public engagement – all these are two sides of the same coin: they become concrete in private and public economic investments, but also in private and public initiatives to create institutions that serve to educate all segments of the population and to erect a comprehensive system of social security.” All of the above examples of world Ethics in Economy prove the importance of the matter in all relations between human beings and cultures in the nowadays world. The diversity of cultural and political convictions, as well as the diverse abilities of individuals and the diverse competencies of organizations, represents a potential source of global prosperity. Mutual esteem and partnership between all those involved – in particular, between men and women – is at once the prerequisite and the result of economic cooperation. Partnership is the main principle of Ethics in the economic decisions in the world. As a conclusion of this part we can state that all economic actors should respect the international rules in economic life. More business, mean more relations, more communication – more rules of economic culture = Ethics in Economy In this framework of the world Economy and Ethics – let’s see what the EU and its member states think on the topic? 2. EU economic ethics When the financial crisis made clear the extent of western banks' involvement in Eastern Europe, concerns surfaced about the effects on western economies, re- awakening perceptions of the East as unruly and unpredictable. In the East, meanwhile, suspicions were reinforced that the West was interested in the new EU member states only insofar as they provided an opportunity to expand existing markets. What are the ethical and political implications of a globalized economy in general, and of western companies' expansion in Eastern Europe in particular? What does the European integration project really mean, not only economically but also at a social and cultural level? In an interview: French president Emmanuel Macron did not mince words when speaking to technology magazine Wired about the upcoming disruption by artificial intelligence (AI): "In the US, it is entirely driven by the private sector, large