Posts tagged with: pope benedict xvi

Samuel Gregg, director of research at the Acton Institute, reflects on business ethics in his recent commentary.  Gregg explores the presence of business ethics courses in business schools; however, with the large presence of business ethics courses we still have a lack of ethics present in business.  The lack of ethics in business became a major factor in our current financial crisis.  Gregg further explains that business is not just about management or the business ethics that are taught, but businessmen and women need to also learn stewardship:

Business, however, is about more than management. It also involves stewardship (inasmuch as managers have moral and fiduciary responsibilities to their clients and investors) and entrepreneurship – the actual creation of wealth. Many business leaders would be shocked to discover that studying entrepreneurship remains optional in many business schools today.

This underlines another problem for some business schools. It’s not clear that all business professors are convinced of the morality of economies based on free enterprise, limited government, and rule of law. This ambivalence cannot help but be communicated to their students, which they take with them into the marketplace. It is very difficult for business schools to teach the moral habits associated with successful business when many business professors regard private enterprise and markets as, at best, useful but morally-insignificant phenomena.

Gregg also makes references it Pope Benedict XVI’s new social encyclical, Caritas in Veritate, to demonstrate the need for morality in business:

Hence, though Benedict speaks approvingly of the rise in ethics-consciousness in the worlds of finance and business, he cautions that simply attaching the label “ethical” to a given enterprise tells us nothing about the actual morality of its practices. What ultimately matters, the Pope affirms, is the precise vision of morality – and therefore the understanding of the human person – informing not simply a particular business, but the entire economy (CV 45).

Blog author: mcavedon
Monday, July 27, 2009
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God is rational, and the universe is governed by unchanging natural laws instituted by Him. The Bible tells us in the Book of Genesis that “God created the heavens and the earth.” God is not arbitrary; the Bible also tells us that He is just and that He keeps promises to His people. The prophet Jeremiah tells us that God has established “ordinances of heaven and earth.” Since they come from a perfect lawgiver, we know that these laws do not change on a whim.

These beliefs were radical, and given historical trends in philosophy, they remain so. Pagans argued that truth exists, but that it is dependent on the will of the gods. Since these gods were capricious rulers of the universe, there were no unchanging laws that could be discovered by humans. In our own day, postmodern constructivist philosophers like Giambattista Vico also argue that objective truth is unknowable. For them, this is because truth is only accessible to humans insofar as we agree with something we have manufactured and labeled as the truth. As Vico put it, “the norm of the truth is to have made it.” If pure naturalism is correct and there is no role for God, then Vico can reasonably argue “the mind does not make itself as it gets to know itself and since it does not make itself, it does not know the genus or mode by which it makes itself.” After all, our ability to understand things as they truly are is difficult to argue in the absence of any reason to think that human reason itself is reliable.

Christianity offers just that reason by asserting two main points: that God has made the universe according to natural laws and that He has given humanity the means to understand them. As God asks Job, “Who endowed the heart with wisdom or gave understanding to the mind? Who has the wisdom to count the clouds? Who can tip over the water jars of the heavens when the dust becomes hard and the clods of earth stick together?” God gives understanding to the mind so that we may know Who has made the world and the universe as it is.

God intends for us to exercise our reason and seek to know reality. Jesus says that He is the Truth, and He promises His followers that “the truth will set you free.” The truth that Jesus speaks of is not, of course, purely scientific and rationalistic. It is the truth of the universe and of humanity. Pope Benedict XVI reiterates this in Caritas in Veritate, where he writes, “Truth, by enabling men and women to let go of their subjective opinions and impressions, allows them to move beyond cultural and historical limitations and to come together in the assessment of the value and substance of things.”

Since truth is objective, reason can discern it. Reason is the universal nature of humans, regardless of our race, culture, language, class, or religion. We all have access to the truth. In a world where subjective truths compete, humanity can no longer find common ground and rise above struggles for power and influence. The truth about humanity and natural reality becomes “Nordic,” “bourgeois,” “imperialist,” or “chauvinist.” The idea that truth is subjective does not set us free. It pits us against each other and fails to let us seek the truth.

Caritas in Veritate points out the dire social consequences: “Without truth, without trust and love for what is true, there is no social conscience and responsibility, and social action ends up serving private interests and the logic of power, resulting in social fragmentation, especially in a globalized society at difficult times like the present.” If we are to seek true solidarity and the creation of a humane world, we must commit ourselves to pursuing the truth. Otherwise, humanity’s divisions will only grow.

By choosing instead to follow constructivism, fundamentalism, fideism, and the consensus view of the truth, we are enslaving ourselves to error and cutting off the truth that unites us. We are also rejecting the duty that God has given us to use the gift of reason to seek Him out. Since this sin only gives us error in place of the truth about us and the universe we inhabit, it results in suffering, tyranny, and conflict.

The truth will set us free in the measure that we are willing to seek it as God commands us to, and in the measure that we reject anything less than the full, universal, reasonable nature that it has.

Back in 1983, economist Thomas Sowell wrote The Economics and Politics of Race, an in-depth look at how different ethnic and immigrant groups fared in different countries throughout human history. He noted that some groups, like the overseas Chinese, Japanese, and Jews, tended to thrive economically no matter where they went, bringing new skills to the countries that they arrived in and often achieving social acceptance even after facing considerable hatred and violence. Other groups, like the Irish and the Africans, tended to lag economically and found it difficult to become prosperous.

Sowell explained many of these differences by looking at the cultures both of the immigrant groups and of the dominant powers in the countries that they moved to. The Chinese, Japanese, and Jews, for example, valued work. They often arrived in countries with little more than the clothes on their backs, but they worked long and hard hours in menial labor and saved money scrupulously to make life better for their children. Even if they lacked social acceptance, they were allowed the freedom to develop their talents and contribute to the economic life of their new homes.

Irish and African cultures were never offered these opportunities. Ireland’s feuding lords had prevented hard work from being rewarded in Ireland, a situation that only got worse with British occupation. Sowell shows how Africans were similarly discouraged from working hard because slavery and the Jim Crow Era made it impossible for skills and effort to pay off in better standards of living. So long as hard work never paid off, there was no incentive for Irish or African cultures to emphasize entrepreneurship, and the members of these ethnic groups suffered from poverty rates much higher than those of other populations in the places they lived.

Fast forward to 2009. With many of the institutional barriers to the advancement of ethnic minorities gone from most countries, historically disadvantaged groups are catching up with the general population in economic terms. Pope Benedict revisited the theme of economics and culture in his encyclical Caritas in Veritate, coming to similar conclusions as Sowell does about the role that culture plays in the development of the human person. (more…)

Kathryn Lopez, editor of National Review Online, has a Townhall.com column on Caritas in Veritate titled, “Liberal Catholics Can’t Handle the Truth.”  Lopez looks at the commentary on Caritas in Veritate, especially by the left, and shows why the encyclical should not be politicized.  The encyclical is about truth, which can not be bent to advance a political agenda, she asserts.  Kishore Jayabalan, director of Acton’s Rome office, was also quoted in Lopez’s article:

Neither side . . . seems ready to take Benedict’s theology — his own field of expertise — seriously. Part of this is a result of our habitual, liberal-democratic tendency to separate Church and State and not let theological arguments influence our politics. This tendency invariably blinds us to the pope’s combination of respect for life with the demands of social justice. … Reading ‘Charity in Truth’ for partisan purposes can yield moments of agony and ecstasy for left and right alike.

Both Jayabalan and Lopez remind us to read Caritas in Veritate without politicizing it or categorizing it left or right.

In his commentary, “The Pope, the Rabbi, and the Moral Economy,” Samuel Gregg compares recent statements by Britain’s Chief Rabbi, Lord Jonathan Sacks, and Pope Benedict XVI, on the market economy and other social questions. “Benedict and Sacks rigorously deny that markets are intrinsically flawed,” Gregg writes. “Each also maintains that there are fundamental limits to state power. They do, however, insist that morality’s ultimate sources come from neither state nor market.”

Gregg demonstrates the parallels between Pope Benedict XVI’s Caritas in Veritate and an op-ed printed in the London Times by Rabbi Sacks:

The pope and the rabbi had a similar message, which amounts to the following. Some of our contemporary economic problems reflect a deeper moral crisis within Western civilization. Until we acknowledge this, shifts in economic policy and business practice will only provide limited solutions.

Drawing upon the parallels between Pope Benedict the XVI and Rabbi Sachs, Gregg concludes that both question “those who limit morality to politically-causes and the associated refusal of many working economies…”

Energy has been a hot topic not just in the United States but throughout the world.  From cap-and-trade legislation to the talks that occurred at the G8 Summit, energy is making headlines everywhere.  Caritas in Veritate also addresses the issue of energy; however, it is in a different light from that which is occurring in the politics.

In Caritas in Veritate, Pope Benedict calls for us to be more conscious of our use of energy, and for larger, more developed countries to not hoard all of the energy.  Furthermore, Pope Benedict calls for the international community to be more conscious of its use of non-renewable energy and to begin to regulate the use of non-renewable.  His concern is that poor countries will not be able to gain access to energy resources, especially non-renewable energy.

The United States is the largest energy producer, but it is also the largest energy consumer.  In fact, according to the Energy Information Administration, in 2006 the United States produced 71.054 quadrillion Btu and consumed 99.889 quadrillion Btu.  These figures point out a large difference between the amount of energy produced and consumed by the United States.  At face value these figures make the United States look like an over-consumer of energy and that the Pope’s message on energy would strike an enormous note with the United States.

However, looking beyond these numbers and what they consist of, the United States is not the mass over-consumer that these numbers make it look like.  In 2006, the United States issued 89,823 patents (more patents were issued by the United States alone than the by the rest of the countries combined).  The number of patents issued in the United States can be correlated into the manufacturing that occurs in the United States.  Since the United States issued 89,823 patents in 2006 it can be expected that a large number of new products were manufactured in the United States or developed in the United States and manufactured abroad.  As a result, in order to manufacture and develop this large amount of new products, in addition to the manufacturing that was already occurring, the United States used a large amount of energy.

The Energy Information Administration also keeps records on the amount of energy used by manufacturers in the United States.  Of the 99.889 quadrillion Btu consumed by the United States in 2006, 21,046 trillion Btu was consumed by manufactures in the United States.  Since the United States manufactures a large number of goods it is able to export these goods across the world.  According to the United States Census, 1,451,685 goods and services were exported by the United States in 2006.  Compared to 2005, this number was actually up by 12.7 percent.

While the United States uses a large amount of energy it is able to manufacture goods that are exported to other countries through trade.  As a result, countries that do not have the technology, finances, or capital to increase their energy usage to manufacture more goods benefit from the United States.  The United States, who can afford to purchase energy to manufacture goods and services, can send its goods and services to the poor countries that do not use a large amount of energy and do not have the means to manufacture the goods that can be produced in the United States.  The trade the United States engages in encourages poor countries to develop so they can export even more of their goods to the United States.

However, just because the United States is able to provide goods and services to countries that do not have the means to produce such commodities, does not mean the United States is exempt from conserving energy.  We are all called for to be stewards of  Earth.  As Pope Benedict states in Caritas in Veritate, “At the same time we must recognize our grave duty to hand the earth on to future generations in such a condition that they too can worthily inhabit it and continue to cultivate it.”  As Christians, we still need to be consciousness of our use of energy to make sure our children will be given an Earth that has the same resources we are blessed to have.  Furthermore, we also need to be conscious of the condition of the poor and not exploit energy and natural resources.  Simply because we, as citizens of the United States, have the financial means that allow us to utilize and have access to energy and natural resources does not mean the same benefits are procured by those less fortunate.

I recently spoke with journalist Antonio Gaspari of the the Zenit news agency about Caritas in Veritate. Here’s the interview that Zenit published:

Kishore Jayabalan: Development Involves “Breathing Space”

ROME, JULY 10, 2009 (Zenit.org).- An Acton Institute director is explaining the importance of “Caritas in Veritate” for India and China, and is pointing out the innovative ideas of Benedict XVI’s latest encyclical.

Kishore Jayabalan is the director of the Acton Institute’s Rome office. He is a former analyst for the Pontifical Council for Justice and Peace, where he dealt with environmental and disarmament issues and served as a desk officer for English-speaking countries.

In this interview with ZENIT, he spoke about Benedict XVI’s latest encyclical, which was released to the public Tuesday.

ZENIT: What is your overall opinion of the encyclical “Caritas in Veritate?”

Jayabalan: My very first reaction was that it is long and not an easy document to read quickly and summarize. But as I have been reading and re-reading it, I am starting to appreciate its vast scope and significance.

The moral and ethical basis for the market economy is very often neglected.

Even its supporters tend to make utilitarian arguments in favor of the market, while opponents tend to blame the free exchange of goods and services for all kinds of cultural phenomena which have little to do with economics itself.

When things are going well and everyone is making money, no one wants to hear about greed and materialism. But once the bubble bursts, everyone seems to become a moralist and a prophet with amazing hindsight.

This is what Benedict has referred to in other places as “cheap moralism,” one which takes no account of the technical workings of the economy but reminds us of the need to make ethics more integral to our everyday lives. So in this encyclical, the pope realizes it makes no sense to issue condemnations that a child can make. (more…)

At the time of his election in April 2005, Pope Benedict XVI was widely perceived to be a “conservative” in our modern political parlance. It should not surprise, then, that many commentators have expressed either shock or joy, depending on their own affiliations, with last Tuesday’s publication of his encyclical letter Caritas in Veritate (Charity in Truth), the first extended statement on social and economic issues of his pontificate.

Conservatives are dismayed by his calls for increased foreign aid, the redistribution of wealth, and a United Nations with “real teeth”. Liberals are wondering why the pope had to ruin such lovely sentiments by bringing up the evils of abortion, euthanasia, and birth control. Prominent voices on both sides think the pope is hopelessly naïve and unrealistic. Reading Charity in Truth for partisan purposes can yield moments of agony and ecstasy for left and right alike.

Neither side, however, seems ready to take Benedict’s theology – his own field of expertise – seriously. Part of this is a result of our habitual, liberal democratic tendency to separate Church and State and not let theological arguments influence our politics. This tendency invariably blinds us to the pope’s combination of respect for life with the demands of social justice.

Such a synthesis is not easy nor is it likely to satisfy partisans. It’s hard enough to imagine an international authority that can command universal support – not even the pope has that within his own Church. In many ways our current systems of democratic governance are more modest because they do not assume any such unanimity, theological or otherwise. But the real question is whether a society built solely on competing interests will ultimately be worth the trouble. Will it reflect Benedict’s insistent demands for human dignity? Experience keeps telling us something more is clearly needed.

Our political categories of left and right originate from the French Revolution, which infamously saw the Catholic Church as its great enemy. Which makes it all the more remarkable that the modern social teachings of the papacy may provide the soundest moral defense of liberté, égalité et fraternité in today’s world. (more…)

My commentary on the new social encyclical appeared in today’s Wall Street Journal. Here is the full text:

In his much anticipated third encyclical, Caritas in Veritate (Love in Truth), Pope Benedict XVI does not focus on specific systems of economics — he is not attempting to shore up anyone’s political agenda. He is rather concerned with morality and the theological foundation of culture. The context is of course a global economic crisis — a crisis that’s taken place in a moral vacuum, where the love of truth has been abandoned in favor of a crude materialism. The pope urges that this crisis become “an opportunity for discernment, in which to shape a new vision for the future.”

Yet his encyclical contains no talk of seeking a third way between markets and socialism. Words like greed and capitalism make no appearance here, despite press headlines following the publication of the encyclical earlier this week. People seeking a blueprint for the political restructuring of the world economy won’t find it here. But if they look to this document as a means for the moral reconstruction of the world’s cultures and societies, which in turn influence economic events, they will find much to reflect upon.

Caritas in Veritate is an eloquent restatement of old truths casually dismissed in modern times. The pope is pointing to a path neglected in all the talk of economic stimulus, namely a global embrace of truth-filled charity.

Benedict rightly attributes the crisis itself to “badly managed and largely speculative financial dealing.” But he resists the current fashion of blaming all existing world problems on the market economy. “The Church,” he writes, “has always held that economic action is not to be regarded as something opposed to society.” Further: “Society does not have to protect itself from the market, as if the development of the latter were ipso facto to entail the death of authentically human relations.”

The market is rather shaped by culture. “Economy and finance . . . can be used badly when those at the helm are motivated by purely selfish ends. Instruments that are good in themselves can thereby be transformed into harmful ones. But it is man’s darkened reason that produces these consequences, not the instrument per se. Therefore it is not the instrument that must be called to account, but individuals, their moral conscience and their personal and social responsibility.” (more…)

As one would expect with an encyclical from Benedict XVI, its strength lies in its use of theology to re-orientate Catholics and other Christians away from thinking in a merely secular — and sometimes hyper-politicized way — about questions such as economic and political questions.

The Christian understanding of truth and love and Catholicism’s careful integration of these theological and moral realities lifts us up and out of what the Pope calls the false ideologies and utopias that disfigure our minds and actions. Though they are mentioned sparingly, St. Augustine and St. Thomas Aquinas are clearly two of the major influences upon the theology informing this text, alongside sacred Scripture.

In these respects, Benedict XVI is being faithful to his theological method of “ressourcement,” pioneered by figures such as Henri de Lubac, S.J., which involves renewing the Church through returning to the primary sources of Christian inspiration. This helps to explain, for instance, the language of gift that permeates the encyclical and reminds us that the model of Christ the Son as God the Father’s gift to us has implications for economic and political life.

Obviously, there will be intense debate about some of the prudential judgments about questions of economic policy expressed in “Caritas in Veritate.” Here we find an element of “on the one hand this, on the other hand that,” which is not always coherent. I would also suggest that the often-negative relationship between extensive wealth-redistribution and the prior necessity of wealth-creation have not been sufficiently considered.

Concerning the global economy, there is nothing new about the encyclical’s reference to a world political authority from the standpoint of Catholic social teaching. In fact, some argue that it represents a logical extension of natural law reasoning about the political order.

The problem is how a world authority could possibly manage the global economy — i.e., billions of economic choices by billions of people and institutions on a daily basis. The principle of subsidiarity provides us with some guidance, but the encyclical may underestimate the tendency of state and international bureaucracies to pursue agendas that have everything to do with their own interests and nothing to do with the poor.

Of course, there are many economic and cultural observations in the encyclical that bear repeating. Benedict XVI’s dismissal of dependency theory as ” erroneous,” his warning against protectionism, and his affirmation that it is people rather than the market economy per se that creates economic evils should be welcomed as helpful correctives to particular ideas that often prevail among social justice activists.

Above all, the insistence upon permeating commercial and economic life with Christian truth — especially moral truth — and Christian love represents a bold challenge for us to apply the Catholic faith to every aspect of our economic lives.

In this regard, Benedict XVI is neither an anarcho-capitalist from the pages of “Atlas Shrugged,” nor a socialist straight out of “Das Kapital.” He is nothing more and nothing less than a disciple of Jesus Christ.

Published July 9 on Zenit
, the Catholic news agency.