The Ethical Lessons from the Titanic
Milton Friedman was awarded the Nobel Prize and is credited with offering what is considered the accepted definition of the responsibility of business, which he stated is to maximize profits within the bounds of the law. This raises the question of what happened to ethics, as ethics represents a much higher standard than the law. The makers of the Titanic in the early 20th century built a ship that was four times larger than any other ship of the day, and the regulations that governed lifeboats were based on the size of the ship. At that time, there was no lifeboats-for-all provision in the law, meaning the number of lifeboats required was based on the ship's size, not the number of passengers. Knowing that the regulation would eventually catch up and require lifeboats for all, the shipbuilders chose to save money by not equipping the Titanic with enough lifeboats, leaving empty berths where lifeboats would go once the law required them. Consequently, the Titanic only had 25 percent of the lifeboats needed for the number of passengers on board. In 1912, when the Titanic hit an iceberg, 75 percent of the passengers died. Despite this, the shipbuilders broke no laws. This scenario draws a parallel to modern CEOs who, after engaging in unethical behavior, often defend themselves by stating that they did not break any laws, illustrating the standard for business where legality is prioritized over ethics.
Our Governance
At Hygiene Cleaning Services, our commitment extends beyond compliance with legal standards to a broader dedication to ethical excellence. We believe that true leadership involves anticipating the needs of the future and setting new benchmarks for responsibility and care.
