Second Session : Ethics, Social Responsibility and Sustainable Investment

Speaker: Ernesto Illy

The Compass of Ethics

  • Differences between complex and complicated things
  • Complication is linear and can be squeezed in an equation, not containing time
  • Complexity is non linear, has many solutions, can only be told, contains time
  • Complexity is the mother of freedom, creativity and uncertainty
  • To reduce the global uncertainty we cannot control nature but our behavior
  • Ethical rules reduce uncertainty by making human behavior predictable
  • Free market is a complex net based on mutual confidence, respect and honesty
  • Ethics reduce the background noise in the channels of the market net
  • Competition is the selecting tool of a free market
  • Consumers are the selecting agents
  • Corruption, cronyism and monopolies deprive consumers from their right to choose
  • Innovation is the tool for survival of industrial brand in a competitive market
  • Innovation allows value competition
  • Lack of innovation results in price competition and the following elimination (creative destruction- Schumpeter)
  • Ecology is the science of survival of life
  • Ethics is a compass that needs an attractor to give a direction
  • The universal attractor should be :the survival of life on planet earth