Floridi - 2009 - Network Ethics Information and Business Ethics in A Networked Society

Network Ethics: Information and Business Ethics in a Networked Society
Author(s): Luciano Floridi

Source: Journal of Business Ethics, Vol. 90, Supplement 4: THE IMPACT OF NETWORK
ETHICS ON BUSINESS PRACTICES (2009), pp. 649-659
Published by: Springer
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Journal of Business Ethics (2009) 90:649-659 © Springer 2010
DOI 10.1007A10551-010-0598-7
Network Ethics: Information and Business
Ethics in a Networked Society Luciano Floridi
ABSTRACT. This article brings together two researchimpact of ICTs but that, so far, have remained lar-
fields in applied ethics - namely, information ethics and
gely independent. The task is made pressing by the
business ethics- which deal with the ethical impact of realisation that we live in a networked society in
information and communication technologies but that,needso of a distributed, information-based business
far, have remained largely independent. Its goal is to
ethics. This is not to say that IE and BE have not
articulate and defend an informational approach to the
been conversing for some time (see, for example,
conceptual foundation of business ethics, by using ideas
and methods developed in information ethics, in view of
Coates, 1982; Langford, 1999). It goes without
saying that the emergence of a global information
the convergence of the two fields in an increasingly
networked society. society, with its ICT-based ethical challenges, and
the growing importance of ICT-intensive and net-
worked
KEY WORDS: business agent, business process, ethical business interactions, have made academic
and practical barriers between IE and BE increas-
principles, information ethics, infosphere, networked
society, network ethics, profit ingly porous (De George, 2003, 2006). Nor does it
mean that ethicists, policy makers, lawyers, and
businesses more generally have failed to recognise
Introduction the intrinsically hybrid nature of many key ethical
issues. It is widely acknowledged that privacy,
Information and communication technologiescopyright,
(ICTs) informed consent, transparency and dis-
have profoundly changed many aspects of life, P2P, digital divide, and so forth (Ennals,
closure,
1994;
including the nature of entertainment, work, com-Mason et al, 1995; Vaccaro, 2006; Vaccaro
munication, education, health care, industrial andpro-
Madsen, 2009) can be fully understood only if
duction, business, social relations and conflicts. they are placed at the intersection between IE and
Therefore, they have had, and continue to have, a BE (Hodel et al, 1998). Rather, the exact point in
deep, widespread and increasing influence on our question is that, despite their obvious commonali-
moral lives and on contemporary ethical debates ties, overlapping interests and joint concerns (Wong,
(Floridi, 2007a, b). The goal of this article is to 2000), IE and BE have not yet converged on a
bridge two research fields in applied ethics - namely, shared, conceptual foundation of their investigations.
information ethics (henceforth IE) and business Such common roots are what I hope to disclose in
ethics (henceforth BE) - which deal with the ethical the following pages, which are structured as follows.
In section 'From information ethics to business
ethics: a methodological contribution', I shall pro-
A first version of this article was presented at 'Network Ethics:
vide an outline of IE. The focus will be intentionally
Tlte New Challenge in Business, ICT, and Education', the
limited to only those features that will be useful to
second in a series of biennial conferences on ethical issues of
technology in business, education and society, organised by the
approach BE informationally. In section 'The
Center for Ethics Business and Economics (CEBE) of the informational analysis of business', I shall develop an
Catholic University of Lisbon - FCEE, Carnegie Mellon informational analysis of business agents and pro-
University, and the University of Northern Iowa, and held at cesses. This will lead, in section 'The WHI ethical
the Catholic University of Lisbon, Portugal, June 23-25, questions: what, how and impact', to the identi-
2009.
fication of the three main ethical questions to be
650 Luciano Floridi
addressed by anour information-based

moral choices and actions, affected the way in
namely: which we understand and evaluate moral issues and
posed fundamental ethical problems, whose com-
(1) What goods or services are provided? plexity and dimensions are rapidly growing and
(2) How are they provided? and evolving. It would not be an exaggeration to say that
(3) What impact do (1) and (2) have? many of the new ethical problems we are facing
today are related to the information revolution.
Answers to these questions offer evidence about
Readers of this journal do not need to be intro-
the moral performance of the system. However, in
order to motivate, prompt or cause the system to
duced to the nature and scope of BE. In general,
I agree with Martin and Freeman (2004) when they
improve its behaviour, one has to identify the main
argue that 'business ethicists are uniquely positioned
points where normative pressure can be exercised.
to analyse the relationship between business, tech-
Such points are analysed in section 'Normative
nology, and society'. However, the same readers
pressure points'. In section 'The ethical business:
might be less well acquainted with IE. In recent
from IE to BE', I shall argue that profit is neither part
years, IE has emerged as the theoretical foundation
of the definition, nor the function, of business, but a
of applied computer ethics (Floridi, 1999a), the
goal that provides no ethical input by itself. Instead,
in order to understand what it means for a business discipline that deals with ICT-based ethical issues
(Moor, 1985). Providing even a short introduction
to be morally good, we need to understand its
to IE lies well beyond the scope of this article.1 The
deepest philosophical roots (ontology), and realise
relevant point here is that IE offers an innovative and
that business is an ethically good force in so far as it
flexible methodology, which turns out to be par-
embodies human tension between being in favour of
ticularly well-suited to model some foundational
systemic growth and well-being, and against waste-
aspects of BE in the new context of a highly net-
fulness (of opportunities, of resources, of demands,
worked society. Such methodological approach is
of supplies, and so forth), that is, in favour of the
based on four main features, which can be briefly
flourishing of, and against the destruction, corruption,
outlined as follows.
pollution and depletion of (parts of) the natural and
(1) The nature of moral agents (Floridi and Sanders,
man-made environment in which a business oper-
2004). IE defends a much less anthropocentric
ates. I shall therefore argue that a business agent is
concept of agents, which also include non-human
increasingly morally good the more successful it is in
(artificial) and non-individual (distributed) entities,
implementing four pro-flourishing and anti-waste-
as well as networked, multiagent systems and hybrid
fulness principles, mediated from IE. In the con-
agents (e.g. companies and institutions). This goes
clusion, I shall offer a positive note about the
hand in hand with BE's stress on business organi-
respectful, caring, but also fostering and construc-
zations as ethical agents in and of themselves.
tionist role that business agents may play as stewards
(2) The nature of moral receivers (Floridi, 2003). IE
for the realities that they can positively affect.
argues in favour of a more inclusive and less bio-
logically biased concept of potential receivers of
moral actions as 'centres of ethical worth', which
From information ethics to business ethics: now encompasses not only humans or living entities,
a methodological contribution but also engineered entities and their networks.
Again, this is in tune with BE's interest in the fate of
The informationalization of our environment, of
business organizations as well as with BE's expansion
of the concept of receivers to include not only
human society and of ordinary life has created
shareholders, but also stakeholders of various kinds
entirely new realities, made possible unprecedented
phenomena and experiences, provided a wealth (Freeman,
of 1984). This allows the expansion of classic
extremely powerful tools and methodologies, stakeholder
raised theory (Phillips, 2003) to informational
entities, the fabric of their networks and, ultimately,
a wide range of unique problems and conceptual
to the whole environment or infosphere2 (more on
issues, and opened up endless possibilities hitherto
this below).
unimaginable. As a result, it has also deeply affected
Information and Business Ethics in a Networked Society 651
(3) The nature of the environment. IE offers an infor- When 'business' is to be understood as a process, activi
mational, network-based conception of the environ- or interaction, rather than as the agent that is its sour
ment, which now includes both natural and artificial the following definition is equally unproblematic:
(synthetic, man-made) eco-systems. This is known as
infosphere. The term denotes the whole environment Business (activity)
understood informationally, that is, as constituted by - def. the provision of goods or services (2)
all informational entities (thus also including infor- to customers.
mational agents like us or like companies, govern-

ments, etc.), their properties, and the network of their Although (1) and (2) are uncontroversial, the read
interactions, processes and mutual relations. The inf- will notice that they contain no reference to prof
osphere is an environment, and hence a concept, that which therefore turns out to be a feature that is
is rapidly evolving. The alert reader will notice a shift neither necessary nor sufficient to qualify something
from a semantic (the infosphere understood as a space as a business agent or process. The importance of this
of contents) to an ontological conception (the info- remarkable absence is not often appreciated in full,
sphere understood as a networked environment and I will return to it later in the article. At this stage,
populated by informational entities). (1) and (2) may seem obvious, but that is the nature
(4) Tìte nature of the moral relations and interactions. of all starting points of an adequate logical analysis:
IE supports an environmental, receiver-oriented they should be uncontroversial to the point of being
approach. It is the well-being of the receiver of the trivial. What follows immediately from (1) and (2) is
moral action that, in principle, ought to contribute to that one can define business agents as the source
the possible guidance of the agent's ethical decisions, of business activities. Wherever some provision of
and potentially constrain and orient the agent's moral goods or services to customers occurs, there we find
behaviour. The receiver of the action is placed at the a business agent, whether this is an individual selling
core of the ethical discourse, at the centre of the ethical coconut water on a beach, a school offering tuition,
network, while the 'transmitter' of any moral action or a multinational corporation refining crude oil.
(the agent), is moved to its periphery. This approach Once (1) is understood on the basis of (2), it
resonates with a variety of BE's more advanced views, becomes possible to analyse (2) in relational terms:
which can be employee-, customer-, shareholder- the agent is defined in terms of the activity that
and stakeholder-centred (Agle et al, 2008). characterises it, and the activity is defined in terms of
These four features make IE and BE highly the ternary4 relation that constitutes it. To put it
compatible and invite the application of IE to the simply, we want to be able to state that x counts as a
informational analysis of BE, as we shall see in the business if and only if, if x is an agent and y is a good
next section. or service and z is a customer, then x provides y to
z. Using classic, first-order predicate logic and the
following abbreviations:
The informational analysis of business
A (x) = x is an agent
Our first step consists in revisiting the definition of B (x) = x is a business

'business' from a network-based informational per-
spective. There are, of course, two main senses to be C (z) = z is a customer
taken into account: business as an agent, that is, as a
node in the network, and business as an activity, that D(y) = y is a (deliverable) good or service
is, as a relational process in the network. The stan-
dard definition of 'business' as an agent states that P(x, y, z) = x provides y to z
we obtain:
Business (agent)
=def. the provider of goods or services (1) V* Vy Vz (B(x) <-> ((A(x) A D(y) A C(z)
to customers.
^P(x,hz)))) U
652 Luciano Floridi
The formula in ternary

(3) relations can be reduced to combinations
expresses more of pr
binary relations,
stated above more informally. The ade.g. by transforming '3 is between 2
and 4' into
it makes it easier to "*3 is bigger than 2' and '3 is smaller than four
appreciate
that we shall need in the rest of the article. 4'". It follows that, although it might seem that
First, (3) shows that it is perfectly possible to have business as an activity might necessarily require a
cases in which x = y = z. In other words, this ternary relation P in order to connect three, non-
means that the three variables could be replaced by empty sets of related elements - namely B, consti-
the same constant, as in the extreme (and rather tuted by the business agents, C, constituted by the
unlikely) case in which a business sells (parts of) itself customers, and D, constituted by the deliverable
to (some other parts of) itself. Of course, normally x, goods and services - one can actually transform
y and z will be interpreted as different constants. P into a conjunction of two relations 5 and
This is as it should be, since our model would be R without any loss of logical adequacy. The eco-
extremely inadequate if it could not accommodate nomic interpretation of S and R would normally be
the rather common case in which a business sells a in terms of 'supplying' and 'demanding'. Given the
product, which could also be a business, to a cus- informational approach adopted in this article, we
tomer, which could also be another business. In shall use a different semantics and read S as 'sending'
short, the formula allows for the highest degree of and R as 'receiving'. The result is shown in Figure 1.
interpretative flexibility. We are now ready to simplify the analysis further
Second, (3) is process- or relation-centred, as and obtain the initial model that, once transformed
required above: first comes the concept of business as from static to dynamic, will serve us for the rest of
a transaction, which then defines the related ele- the article. I shall refer to it as the concentric ring model
ments as business agent and customer, not vice versa. (see Figure 2). Note that this is not a Venn diagram,
Third, from (3), it is simple to obtain a customer- where the smaller unit is completely contained
centred (or receiver-centred) model, as illustrated by within the larger one, nor a 'layer' diagram, like a
Figure 1 below. cake. Rather the three sets C, D, B could be seen as
Finally, one can apply to (3) a standard reduction three doughnuts. C is like a filled doughnut. It is
theorem in predicate logic, which proves that surrounded by D, which can be imagined to be
similar to a ring doughnut (technically, a torus). In
its turn, D is surrounded by B, also shaped like a ring
doughnut. The threshold between C and D is the
relation R, and the threshold between D and B is the
relation S. We have finally obtained an accurate but
also intuitive representation, as a single object, of our
Set B of businesses Set D of goods/services Set C of customers

logical model in Figure 1.
The concentric ring model, illustrated in Figure 2,
Figure 1. The relational analysis of business. places customers at the centre of all business activities.
! /Customers
I /
f / ' fî A ~ -f-~ "' ' i / /Goods and Services
Figure 2. The concentric ring model of business.
This is a valuable feature. The model further high- We now have a sufficiently detailed analysis of the
lights the absence not only of profit as part of theobject whose properties need to be investigated.
definition of business (whether as an agent or as anGiven the complex, informational, networked sce-
nario represented by the whirlpool model, what are
activity it does not matter), as expected, but also of
two other aspects that have been extensively dis-the main kinds of ethical questions faced by business
cussed in the literature on business ethics: the agents? This is the key issue addressed in the next
problem of (fair) prices, which now appear to section.
be a
property of elements of D, and the nature/identity
of business agents, that is, the elements of the set B,
The WHI ethical questions:
now defined as the sources of good/services. The
model, however, still has one major limit: it is how and impact
what,
merely static. Hence, it fails to take into account the
Consider Figure 3. It seems evident that the funda-
interactions between business agents and customers
over time and within a shared, networked envi- mental questions to be addressed by an informa-
ronment. This is the last refinement that needs to be tionally modelled BE concern:
provided.
(1) What goods/services are provided?
The parameters in our dynamic model are obvi-
(2) How are they provided?
ously time (the x axis) and the number of interac-
(3) What impact do (1) and (2) have on both
tions between the various elements (the y axis). By natural and artificial environments?
placing the concentric ring models or whirlpools
(their influence on the surrounding environment Figure 4 illustrates how the questions may be
proceeds like decreasing waves), obtained above, in located in our model. Let me briefly comment on
such a 2D space, we finally reach a more accurate each of them.
description of the development of business interac- By asking (1), an ethical theory concentrates on
tions in real life, one which will suffice to explain the product and hence shows that questions
and discuss critically the analysis developed in the regarding the moral nature of the sender ('is the so
rest of the article. I shall refer to this model as the and so business agent/source morally good or evil?')
whirlpool model Figure 3 provides an illustration.are still important but can be dealt with as secondary.
Note that it is like a snapshot of a dynamic system:This is perfectly in line with mainstream ethical
the whirlpools should be imagined as constantlytheories, which consider 'good' and 'evil' as prop-
increasing and then decreasing. erties qualifying primarily actions and their out-
comes, and only secondarily their sources. We
qualify someone as mainly good or evil depending
on whether his or her actions or their effects are
mainly evil or good. Accordingly, in our model,
business agents, their states and plans, are identified
H^ôHh
as morally good or evil not in themselves, but only
in a derivative sense, that is, following the assessment
of their actions and the corresponding outcomes.
By asking (2), the same ethical theory addresses
the moral nature of the process that leads to a par-
ticular output. Whereas question (1) concerns the
nature of the elements of the set D, question (2)
concerns the nature of the relation 5 between
B and D.
Finally, no ethical analysis would be complete

without a careful investigation of question (3), that
is, the impact that the supply of specific goods/ser-
Figure 3. The whirlpool model of business. vices, and hence the presence of goods/services
654 Luciano Floridi
"Customers
Primary ethical questions: ' / / Goods and Services

1) What is provided? ••
^ .. • • • , ^ Á><* lêÊÊmi-^-á / Business
2) ^ How .. is • it • provided? • , ^ ••
3) What impact does it have? ? ^ ^SÊÊMS&Sfy* /

Seconday ethical questions: ! '„ ^^^^^^ >*
1) The nature of the sender i "~ /^"A
2) The nature of the receiver ¡/ 'V
1/ Interaction»
îrJyrjf^Çsffii^^ II IDO
Figure 4. The WHI ethical ques
themselves, have on
Pragmatically, insofarthe networked
as the processes of motivating,
within which fostering,
the causing or preventing agents
business new conducts are oper
with their customers. concerned, we need to identify ways in which the
Depending on how one answers questions (1)- performance of the system may be successfully
(3), there follows a different ethical evaluation of the affected. In other words, we need to identify the
business agent under investigation. However, if one main points where normative pressure can be exer-
wishes to modify that agent's behaviour, the WHI cised with some hope for success. Such points are
questions are of little help. They might signal that three (or a combination of them) since, ideally,
something needs to be done, but they cannot help in normative pressure should be exercisable on each of
achieving the required modifications. For such a the three sets constituting the model (see Figure 4).
pragmatic goal, the whirlpool model needs to (1) Educational pressure on C. One might exercise
identify what one may call the right points of nor- pressure on the system by educating or informing
mative pressure, the topic of the next section. customers about the answers to the WHI questions.
The availability, accessibility and transparency of
more and better information about
Normative pressure points • what goods/services are provided,

• how they are provided, and
We have just seen what the most fundamental eth- • the impact that their provision has, or might
ical questions that might be asked in BE are, when have, on the overall environment or info-
BE is approached from an IE perspective. I also sphere,
anticipated that it would be a mistake to think that
they are also the points where normative pressure helps customers to make and shape their choices,
can be exercised on the system. Answers to the WHI and hence provides a significant way of influencing
questions may indicate how well (or indeed how the moral behaviour of business agents. This is what
badly) the overall system is performing, morally drives not only standard competition, but also phe-
speaking, but they only contribute informatively to nomena such as ethical consumerism and fair trade cer-
the process of guiding and shaping the system. tification (Crane and Matten, 2007).
(2) Prescriptive pressure on D. The system may also Consider the tobacco industry and more specifi-
be influenced by indicating what goods / services oughtcally the cigarette business. B is represented by
to be (of course both positively and negatively). This
tobacco companies, which send (i.e., produce and sell)
often means identifying requirements, specifications goods in D, let us say cigarettes, which are received
or standards that ought to be satisfied by the pro-(i.e., bought) by C, individual customers. Answers to
vided goods/services. We shall see that quality cer- the three WHI ethical questions are well known and
tification and control, as well as the indication of do not have to be rehearsed here. What about the
what features goods/services should or should notnormative pressure points and the State's interven-
have, can be not only an ethical but also a legal issue.
tion? Through taxation, the setting of age limits, the
(3) Proscriptive pressure on B. Finally, business agentsindication of non-smoking areas or the constraint on
may be influenced directly, through moral (or legal,
advertising forms and targets, the State exercises an
see below) proscriptions about what ought not to be done.external control on the system which is not, in and
of itself, of a moral nature, but that has the function
As anticipated, in each of the previous three cases
pressure can be exercised not only morally, but alsoof facilitating moral behaviour. There is nothing
legally. The point is worth clarifying. So far, we have intrinsically right or wrong, morally speaking, in
analysed the ethical business system as if only twosmoking a cigarette in a cinema. By making it illegal,
types of agents were involved in the network, however, the State makes it easier to give up a bad
businesses, interpreted as senders, and customers,habit, to prevent fire hazards, to diminish passive
interpreted as receivers. The State (and by this smoking
I and so forth, and these effects have a
mean to refer to any entity with the legal power and morally positive value, insofar as they are good for
legitimacy to impose its decisions on the wholethe system in general and its individual receivers in
whirlpool system, at least in principle) represents aparticular. Smoking is unhealthy, can easily become
third set of agents. Ideally, by issuing laws, imposing an addiction and hence a moral vice, and the State
sanctions or disincentives and offering rewards orseeks to make the choice of smoking more difficult
incentives, the State is expected to play the role of
and responsible, without infringing individual lib-
facilitator, regulator and referee of the communica-erties. The same applies to wine, beer and spirits. It
tion system. Thus, the role of a liberal State in a should really apply to other recreational drugs as
modern democracy is proscriptive and proactive when itwell, such as cannabis. Next, by making it com-
comes to the behaviour of business agents: it focuses
pulsory to provide health information regarding
on what business agents should not do (the legalsmoking - e.g., health education in schools, docu-
don'ts) and on incentives to facilitate specific mentaries on TV, or health warnings on cigarette
behaviours which are morally good or beneficial to
packets - the State exercises direct moral pressure on
the whole system or society. However, the rolethe system through the Education of C, one of
the normative pressure point discussed above. In
becomes prescriptive and reactive when the goods or
services provided are concerned: the liberal Stateterms of prescriptions, the second pressure point,
legislates on what they ought to be (the legal dos) consider the ethical choice of producing only self-
and on the sanctions that might be imposed, if such extinguishing cigarettes (available since the 30s).
legislation is not respected. The State's interventionThis could be a moral choice of the producers,
in the network is usually hugely influential, as it addsinstead of becoming a proactive legal requirement
a third dimension: the system acquires not only
brought about by some legislation, as it is already the
ethical norms but also legal rules or laws, and hence
case in several American states, such as New York,
corresponding incentives, disincentives, prohibitions
Massachusetts and California, and it might soon
and sanctions (Nelson, 2006). Of course, ethicalhappen in the EU. After all, burning cigarettes are
norms aim at inviting endorsement, whereas legalamong the main causes of fires. Finally, in terms of
rules seek to enforce compliance. The former are proscriptions, Joe Camel' provides an illustrative
example. In 1987, RJR created Joe Camel as the
supposed to foster moral behaviour, the latter might
be entirely neutral about it. How does this third
mascot for the brand of Camel cigarettes. In 1991,
dimension affect our model? An example will helpthe American Medical Association reported that
to clarify the issue. the campaign had been particularly popular among
656 Luciano Floridi
5- and 6-year-old, who

unsatisfactory apparently
and needs to be rectified? Much seems c
Joe Camel moreto depend
easilyon how we than understand the ultimate
Micke
Flintstone, Bugs Bunny or even
nature of business itself, its function, goal and role in B
et al, This 1991).
led
society, the
in other association
words, its deep ontology.
to terminate
theRecall Joe
the definition of business given
Camel in (1). It
campa
applies both to for-profit
RJR initially declined, in 1997, and to non-profit
after business f
organizations. Indeed, following
the Joe Camel campaign was (1), even business
replace
what more adult campaign.
organizations The
with negative net profit poin
do not, for this
reason,
never lost a legal stop qualifying
battle on as business
this agents. issue
Hence,
way that, profit is the
whatever clearly notultimate
part of the essence of amotiv
business,
been, had a positive moral
not in the sense in which having outcome.
three sides is part of
the essence of a triangle. Unfortunately, this point is
often overlooked, by objecting that, being profitable
The ethical business: from IE to BE might not be part of the nature of what may count as
business, but it does capture its basic or primary
The previous analysis has provided the formal
function. At least in the case of for-profit enterprises,
framework within which BE can be interpreted
that very qualification refers exactly to what the task
ormodel
informationally. Some of the features of the function of a business is, although not its necessary
and sufficient
already cast a different light on the ethical agenda of conditions. If this is granted, then one
BE in a networked society. Three issues -might
(1) the
further argue that the function, i.e., profit,
determines
nature of business agents, (2) the fairness of prices of the moral quality of the function-bearer,
goods or services and (3) the obtainment ofnamely
profit the business. With an analogy, our opponent
(Friedman, 1970) - have been shown to be ofmight
muchargue that the definition of a knife does not
less pressing concern than (4) the natureinclude
of the'being sharp', but since a knife's function is
delivered goods or services, (5) the ways in to
which
cut, then the sharper the knife is the better it cuts,
they are produced and (6) what impact theirand so the better that knife should be judged to be.
provi-
sion might have on the overall environment. ThisThe is
reasoning is, once again, muddled, for it fails
to distinguish between a functional analysis ('for
interesting, since it seems that much of contempo-
rary BE has been focused more on (l)-(3) thancutting')
on and a teleological analysis (cutting in order
to achieve which goal?). Suppose, just for a moment,
(4)-(6). What the previous formal analysis cannot
provide yet is actual content (as opposed to athat profitability could qualify as the primary func-
formal
tion of business. A sharp knife is a very good knife
analysis) that is, a coherent vision, based on explicit
functionally
ethical principles, of what an ethical business in the speaking, but a morally bad tool in the
hands
information society should be like. This is the of a serial killer. A very profitable business
last
would
but perhaps most important contribution offered by be a very good business functionally speaking,
IE. but still a moral tragedy if run by a child-pornog-
It seems uncontroversial that, in order to rapher.
be just Clearly, if profit is understood as the func-
and fair, laws and regulations should be tion of business, this leaves unanswered any moral
at least
question worth asking. We have begun to rectify the
compatible with, if not directly based on, morally
confusion. From a functional perspective, profit may
right norms (ethical prescriptions and proscriptions),
which in turn may be expected to dependbe (and
on often is) the much desired effect of a well-
morally good principles. However, what run
sortbusiness,
of whose primary function, nevertheless,
remains that of providing goods and services to
morally good principles should guide business
agents? How are we going to know when customers.
the If the distinction is unclear, the following
analogy should help. People who argue that profit is
answers to the WHI questions are morally unsatis-
factory? And how can we judge whether, and the primary function of business are as mistaken as
what
sort and degree of normative pressure shouldthose be
who argue that the primary function of sexual
intercourse is pleasure. Naturally, pleasure plays a
exercised, and in which direction, if the behaviour
very important and positive role, and of course
of the agents in the networked system is deemed
animals may pursue sexual pleasure only for its ownbetween morally good or evil businesses. For prof
sake or, in the case of humans, for mental reasons as is ethically blind: it rewards any business that pursu
well. All this, however, should not blind us to the it successfully. Profit would still be a good thing
fact that sexual intercourse has a reproductivebusiness even if the business were that of tradin
function. slaves. The ethical question is addressed once w
So far we have established that profit is neither part move to (b). What is the business, for which profit i
of the essence nor the function of business. Recall indeed a good thing, good for? The answer m
that we are trying to understand on which moral arguably come from a consideration of the cont
principles a business could be ethically evaluated.bution made by the business in question to t
Now, our opponent has a further reply. Let us admitnetwork in which it is embedded, its overall env
that the distinction between essence, function andronment, by which I mean not just its physical
goal of a business is sound. Profit might be trans-natural habitat, but ultimately the whole ecosyst
formed into the teleological goal of a business, that is, affected by that business, by its practices and it
into its purpose or mission. A morally good businessproducts or, in the informational vocabulary of I
would then be one that takes due care of its goal -the region of the infosphere that is affected by that
being profitable - in view of the advantage that thisbusiness. Of course, (b) can be answered pure
brings for its shareholders. Here, we find the mostfactually, by arguing that profit is what business
dangerous mistake, because it is the least visible. First, good for. In this case, there is no circularity bu
let me clarify a final point about the function of rather mere consistency. The problem is not logic
business. Above, we assumed that profit could playbut conceptual: we are still failing to touch upon t
such a role. We conceded this only for the sake of moral question. Profit is good for business a
argument. Our opponent has now reinterpretedbusiness is good for profit. The ethical blindness
profit as playing the role of a business' goal. This has still there, as we are still unable to distingui
left empty the role of function. We know from (1)between a morally good and a morally evil busine
and (2) that the function of business is to provide In order to provide such a normative evaluation,
goods and services to customers. Like the knifeneed to address (b) in such a way as to step into t
before, the more successful a business is, in providing realm of ethical principles. We need to decide wh
goods or services to its customers, the better it is a business is morally good for. This is the deepe
functionally speaking. Notice, however, that ourontological question that really matters, ethicall
opponent is still waiting for an answer to his objec-speaking, and it is one that, following IE, can
tion that profit might be the purpose orientating the addressed from a receiver-oriented perspective.
function. This requires one further distinction. From the receiver-oriented perspective supporte
It is a fact that most, if not all, businesses haveby IE, business is the art of matching supply an
profit as their main, if not only, ostensible goal. This demand and, in so doing, fostering human flour
fact, however, should not mislead us into thinkingishing and avoiding wastefulness. By wastefulnes
that we have finally hit upon the foundation for anmean any kind of destruction, corruption, pollution a
ethical evaluation. Consider the difference between: depletion of (parts of) reality, that is, any form
impoverishment on the side of the receivers of t
(a) what is good for x; and business activities. It follows that a business agent
(b) what x is good for. increasingly morally good the more successful it is i
implementing the following environmental prin
We are interested in the case in which
ples, mediated by a more abstract and inclusi
x = business. Following (a), profit is certainly what
analysis provided by IE:
is good for business. Without it, business can much
less easily grow in size, develop in quality and
1. wastefulness ought not to be caused in th
flourish as a rewarding and successful enterprise worldfor
(the infosphere)
the people involved. Yet this is a factual remark,
2. wastefulness ought to be prevented in th
similar to what we said above about the sharp knife.
world (the infosphere)
3. wastefulness ought to be removed from the
Profit, in this sense, still does not draw any difference
658 Luciano Floridi
world (the spect and care exercised towards the infosphere by

infosphere)
4. the the business of
flourishing we agents inhabiting
entitiesit (Crane and Matten,
as
2004).
whole infosphere ought to be pro
preserving, cultivating and enrichin
properties. Notes
Following the analysis developed

1 The interested reader in t
might wish to consult Bynum
these four principles play a twofold
(2001), Tavani (2007) or Floridi (2008)). ro
hand, they can
provide
~ Infosphere is aclarification
neologism I coined in the 90s onwhethe
the WHI questions are
basis morally
of 'biosphere', a term referring unsatisfac
to that limited region
other hand, they can
on our indicate
planet that how
supports life. See, for the
example, Floridi
the overall system(1999b) or http://en.wikipedia.org/wiki/Infosphere.
could be improved. To
simply, they can3 See
be Pierce (1980) or Floridi
used as (2010).
a yardstick
4 This is a relation that needs three elements to be sat-
business matters are not going morally w
isfied, such as Germany is between France and Poland.
they can be rectified to go morally bette
Conclusion
Acknowledgements
I am very grateful to Antonino Vaccaro for his kind

We are living in a networked environmentinvitation
(info- and his comments on an earlier draft, to the
sphere) that is becoming increasingly synchronised
audience for the lively and valuable discussion during
(time), delocalised (space) and correlated (interactions).
and after the meeting, to the editors for their useful
Previous revolutions (especially the agricultural and and finally to the three referees whose com-
feedback
the industrial ones) created macroscopic transfor-
ments helped to improve the article significantly. Many
mation in our social structures and physical envi-also go to Donna Wood, who kindly provided
thanks
ronments, often without much foresight.
some The
extremely useful comments on the final draft.
informational revolution is no less dramatic. We
shall be in deep trouble if we do not take seriously
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Network Ethics: Information and Business Ethics in a Networked Society

Author(s): Luciano Floridi

Network Ethics: Information and Business

Ethics in a Networked Society Luciano Floridi

addressed by anour information-based

mational agents like us or like companies, govern-

Our first step consists in revisiting the definition of B (x) = x is a business

The formula in ternary

Set B of businesses Set D of goods/services Set C of customers

Figure 2. The concentric ring model of business.

Finally, no ethical analysis would be complete

Primary ethical questions: ' / / Goods and Services

3) What impact does it have? ? ^ ^SÊÊMS&Sfy* /

Figure 4. The WHI ethical ques

Normative pressure points • what goods/services are provided,

5- and 6-year-old, who

world (the spect and care exercised towards the infosphere by

Following the analysis developed

I am very grateful to Antonino Vaccaro for his kind

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