Risk Taking and the Ethics of Entrepreneurship
Risk Management is not only about limiting risks, it is equally about encouraging people to take risks in a rational and controlled manner. This falls into the domain of entrepreneurship, some concepts of which are outlined. The article cites experimental
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Introduction In his famous article published in 1905, “the Protestant ethics and the spirit of capitalism”, Max Weber (1905/2005, 29) described the situation of the continental European textile industry until around 1850: “The number of business hours was very moderate, perhaps five to six a day, sometimes considerably less; in the rush season, where there was one, more. Earnings were moderate; enough to lead a respectable life and in good times to put away a little. On the whole, relations among competitors were relatively good, with a large degree of agreement on the fundamentals of business. A long daily visit to the tavern, with often plenty to drink, and a congenial circle of friends, made life comfortable and leisurely.” This was, according to Weber, capitalist economy only according to its form, but not according to its spirit. Its spirit was still that of a traditionalist economy, with its lifestyle, the traditional modest profit that was mutually accepted, and the traditional daily measure of work. However, this comfort zone was suddenly disturbed, when a new entrepreneur appeared who paid much more attention to the customers, and tailored products to their needs and wishes. It was then that the spirit of modern capitalism entered the arena. However, this entrance was not an easy one, as the entrepreneur found himself opposed by a wave of suspicion, even hatred, and moral outrage. Weber believed that only a certain character of entrepreneurs could prevent them from failure in business, a strong character that included clarity of vision, energy and, maybe most important, certain ethical qualities. Among them, Weber counted a kind of sober modesty: the new type of entrepreneur was supposed to be averse
C. Luetge () Peter Löscher Chair of Business Ethics, Technische Universität München, Munich, Germany e-mail: [email protected] C. Luetge and J. Jauernig (eds.), Business Ethics and Risk Management, Ethical Economy 43, DOI 10.1007/978-94-007-7441-4__1, © Springer ScienceCBusiness Media Dordrecht 2014
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to unnecessary effort; he could rather be seen as an ascetic, not living in luxury. According to Weber, it was primarily this specific ethos that led to the rise of the Occident, indeed to the rise of the entire capitalist economy. To pre-capitalist man, this ethos was completely incomprehensible: for him it was totally baffling, even despicable, how anyone could regard it as the only aim of his life to “to sink into the grave weighed down with a great material load of money and goods” (Weber 2005, 33). Pre-capitalists could only explain this as the “product of a perverse instinct, the auri sacra fames” (Weber 2005, 33). So it was Weber’s thesis that a certain ethos was driving capitalism. As historical evidence, however, has shown, this thesis can no longer be maintained (cf. e.g. Luetge 2012a). There are a lot of other situational conditions and constraints to be taken into account, too. A specific ethos, even coupled with a certain (Protestant, Calvinist) religion, cannot any longer be seen as t
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