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Introduction

The purpose of this weblog is to share the richness of Catholic Social Teaching as it applies to ethics in business. Each entry will consist of a difficult ethical question and relevant quotations from the Magisterial documents of the Catholic Church. All are welcome to comment or suggest new questions or quotations.

Are we morally obliged to maximize profits

“The Church acknowledges the legitimate role of profit as an indication that a business is functioning well” Centesimus Annus, 35

“.. the purpose of a business firm is not simply to make a profit, but is to be found in its very existence as a community of persons who in various ways are endeavoring to satisfy their basic needs, and who form a particular group at the service of the whole of society.” Centesimus Annus, 35

“A theory that makes profit the exclusive norm and ultimate end of economic activity is morally unacceptable.” Catechism of the Catholic Church, 2424

Is it morally wrong to contribute to a culture of consumerism?

“It is not wrong to want to live better; what is wrong is a style of life which is presumed to be better when it is directed towards "having" rather than "being", and which wants to have more, not in order to be more but in order to spend life in enjoyment as an end in itself. It is therefore necessary to create life-styles in which the quest for truth, beauty, goodness and communion with others for the sake of common growth are the factors which determine consumer choices, savings and investments.” Centesimus Annus, 36

“We disagree with the assertion that advertising simply mirrors the attitudes and values of the surrounding culture. No doubt advertising, like the media of social communications in general, does act as a mirror. But, also like media in general, it is a mirror that helps shape the reality it reflects, and sometimes it presents a distorted image of reality” EIA, 3
“… the media of social communications have two options, and only two. Either they help human persons to grow in their understanding and practice of what is true and good, or they are destructive forces in conflict with human well being. That is entirely true of advertising.” Ethics in Advertising, 14

Are there any moral obligations about where or how we should invest our firm’s capital, beyond considerations of profitability?

“… even the decision to invest in one place rather than another, in one productive sector rather than another, is always a moral and cultural choice. Given the utter necessity of certain economic conditions and of political stability, the decision to invest, that is, to offer people an opportunity to make good use of their own labor, is also determined by an attitude of human sympathy and trust in Providence, which reveal the human quality of the person making such decisions.” Centesimus Annus, 36

“Goods of production - material or immaterial - such as land, factories, practical or artistic skills, oblige their possessors to employ them in ways that will benefit the greatest number.” Catechism of the Catholic Church, 2404

“… whoever has received from the bounty of God a greater share of goods, whether corporeal and external, or of the soul, has received them for this purpose, namely, that he employ them for his own perfection and, likewise, as a servant of Divine Providence, for the benefit of others.” Rerum Novarum, 36

Do we have any obligation to pay staff anything beyond the market rate, in order for them to receive a living wage?

“In determining fair pay both the needs and the contributions of each person must be taken into account. ‘Remuneration for work should guarantee man the opportunity to provide a dignified livelihood for himself and his family on the material, social, cultural and spiritual level, taking into account the role and the productivity of each, the state of the business, and the common good.’ Agreement between the parties is not sufficient to justify morally the amount to be received in wages.” Catechism of the Catholic Church, 2434.

“Let it be granted then that worker and employer may enter freely into agreements, and, in particular, concerning the amount of the wage; yet there is always underlying such agreements an element of natural justice, … that the wage shall not be less than enough to support a worker who is thrifty and upright.” Rerum Novarum, 63