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Journal of Business Ethics

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05-09-2017 | Original Paper

The Ubuntu Challenge to Business: From Stakeholders to Relationholders

Authors: Minka Woermann, Schalk Engelbrecht

Published in: Journal of Business Ethics | Issue 1/2019

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Abstract

This paper addresses whether, and to what extent, the African ethic of Ubuntu can contribute to ethical thinking in general and provide an alternative to stakeholder theory specifically. The conception of Ubuntu that is employed to further the analysis is Thaddeus Metz’s Ubuntu principle of right action, which focuses on promoting harmonious social relations premised on a shared identity and solidarity amongst people. This principle is used to develop an Ubuntu heuristic for organisational decision-making, which serves as the basis for a relationholder theory. It is argued that this relationholder theory can overcome the weaknesses identified with a libertarian account of stakeholder theory, as well as serve as a profitable framework for determining both the purpose of the firm, and the responsibilities that management has towards those parties who affect, and who are affected by, the firm.

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Van Niekerk (2013) describes Ubuntu as “a theory of moral value”, an “African communitarian philosophy“, and a “constellation of African value claims” (2013, p. vii). From the growing recent literature on Ubuntu Van Niekerk identifies a trend in explanations of the meaning of Ubuntu. First, a provocative slogan is claimed to capture the essence or meaning of Ubuntu (most often “Umuntu ngumuntu ngabantu”). Thereafter, examples are provided of actions that demonstrate (or are infused with, or are instances of) Ubuntu. The problem with this language game, according to Van Niekerk, is that the provocative moral appeal is not supported with normative clarity. The normative expectations entailed by Ubuntu remain vague and ambiguous. We return to the issue of normative clarity later in the article.

See Farland (2007) for a critique of Metz’s attribution of pro tanto wrongness to a number of these judgements, as well as Metz’s reply in Metz (2007c).

Metz (2007a) excludes moral considerations based on the supernatural. The reasons for this is that he wishes to develop a non-religious moral theory, and the literature indicates that “many African societies are best interpreted as believing moral norms to be logically independent of supernaturalist theses” (p. 328).

Note that the formulation of Metz’s principle of right action that is offered here constitutes a reworking of the original formulation provided in Metz (2007a: p. 338).

This does not mean that other relationholders, for instance investors, would not be engaged when strategy is formulated; however, the mode of interaction would be aligned to the intimacy of the relation—discussions could be held with shareholders while employees are engaged through employee fora and strategy workshops.

An additional implication is that the duration of the relationship could also impact the benefit. An employee that has been with the firm longer (developing a stronger shared identity and cementing solidarity), would therefore be allowed more shares or a larger part of the profit. However, this would have to be weighed up against the needs of other employees as well as the good of the firm as a whole.

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Title: The Ubuntu Challenge to Business: From Stakeholders to Relationholders
Authors: Minka Woermann
Schalk Engelbrecht
Publication date: 05-09-2017
Publisher: Springer Netherlands
Published in: Journal of Business Ethics / Issue 1/2019
Print ISSN: 0167-4544
Electronic ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-017-3680-6

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