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Business continuity professionals are forever trying to justify to their organizations the time and expense put into continuity programs. They display graphs and formulas to the suspicious upper management attempting to demonstrate that the effort spent in managing risk will eventually be paid back in terms of the organization’s bottom line, whether it be by preventing immediate loss of revenue or long-term loss from damage to the firm’s reputation.
But these arguments can be difficult to make. For one, it is very
difficult to quantify risks. There is a human tendency to overstate
risks that have a strong psychological impact. Many people fear
terrorism above more mundane risks such as crime, even though crime is
a far greater threat to most people than terrorism. Also, statistical
generalizations of risk often do not apply well to a particular
organization’s situation, which may dictate a very different order of
risks.
Measuring the impact of events can be even more difficult. Many
business continuity systems advise asking different people within an
organization to rank the importance of different functions to determine
criticality, but these judgments are highly subjective. A book seller
that takes in $5 million in orders a day through its Web site may
assume that having the Web site down for a day will cost it $5 million
in business, but who is to say that many of those potential customers
will not come back the next day? If they shop at the online site
because it is more convenient than driving to the store, it is probably
more convenient the next day as well.
But maybe there is a different way to justify business continuity.
Perhaps business continuity is a moral imperative of an organization.
If so, then the continuity professional will have a whole different
justification in his or her arsenal, one that does not require appeal
to the bottom line. I argue that a case to be made for the moral duty
of business continuity management that goes beyond benefits to the
organization.
Moral Arguments
We first have to understand that there are two general ways to justify
a moral position. One is consequentialist, which is the view that an
act is right if the balance of good consequences it produces outweighs
the bad consequences. I might argue that my town should spend its tax
surplus on education rather than park improvements, because there will
be more overall benefit to the town from better education than better
parks. I am making a consequentialist argument, because I claim that
putting the money toward education will produce the best aggregate
outcome for all involved.
The traditional justification for business continuity is essentially
consequentialist, because it tries to show that the benefits of
spending money on continuity programs outweigh the costs; in other
words, the money produces the best possible outcome for the
organization. But the traditional justification faces the problem
endemic to consequentialist arguments, that the consequences of an
action are notoriously difficult to predict with any accuracy. It’s
hard to say how likely the server is to crash, and the likely costs of
that crash, in order to prove that the back-up server will pay for
itself in the long run. The data is just not that available.
But there is another type of moral argument, one that does not appeal
to consequences. A deontological argument appeals to something other
than consequences, such as duties. For instance, I might prefer to live
in a warmer climate over the long Vermont winters (which I would), but
I have a son from my first marriage that I would not think of leaving.
I believe that I have a moral duty to take care of my son regardless of
the benefits that I might receive by living somewhere else. A moral
duty is not derived from balancing benefits and costs. It comes from
another source – such as my position as a father – and trumps
consequences. My duty to take care of my son was given to me by my
choice to have a son, and is independent of consequentialist
considerations.
The Duty to Business Continuity
In recent years business ethicists have challenged the traditional view
that a business’ decisions should be driven solely by the bottom line.
They have turned away from this consequentialist thinking by claiming
that businesses have moral duties to a variety of constituencies, such
as customers, workers, and the community. Whereas a business might
decide to reduce pollution out of fear of lawsuits, or the hope that
reducing pollution improves its image, more and more businesses are
coming to see these kinds of choices as resulting from a duty to be a
good corporate citizen of the community.
There are a number of reasons to believe that business continuity is
also a corporate duty. One comes from the legitimate expectations of
others. For instance, as a teacher, my students have a legitimate
expectation that I will grade them without bias. If I fudge up a
student’s grade because she is the daughter of a colleague, the other
students can rightfully complain that I have treated them unfairly.
Similarly, customers often sign on to a service in the expectation that
a business has continuity programs to reduce the likelihood of
disruptions in service. If my cable reception goes out due to a storm,
I assume that my provider has sent a crew to try to restore service. If
I call my provider after a couple of days without service and am told
they have no interest in fixing the problem because they decided that
they did not want to serve my neighborhood anymore, I would argue that
they betrayed my trust when I signed up with them. It may not have
explicitly stated in our agreement, but it was tacitly implied that
they would make reasonable efforts to provide continuity of service
when I signed up. Just as my duty to unbiased grading does not need to
be spelled out in a contract, the customer’s legitimate expectation of
continuity of service does not need to be spelled out, it is often
implied.
The business continuity community normally couches its work in terms
of the importance of continuity of service to customers, but it forgets
that by doing so it also serves the organization’s workers by helping
to preserve their jobs through a business disruption. This is not just
a secondary benefit of continuity practices, but a duty of the
corporation. Just as businesses assume that they have a duty to
generate profits for shareholders on grounds that the shareholders have
invested in the business, they have a duty to workers that have also
invested in the corporation. These investments come in a variety of
forms. At the very least, by choosing to accept a position a worker
forgoes positions at other companies. They may have also planted roots
in the community by purchasing a home and sending their children to
local schools. These investments are lost if a company goes under.
Finally, businesses have a duty to the community to make efforts to
protect its investment in the organization. The community provides
roads needed for supplies and police and fire protection. The community
has also benefited the business by providing the infrastructure needed
to allow employees to move in to the area and to keep employees around.
The community also relies on the tax revenue from the business to
provide services like police protection and education. It might have
built a new school under the assumption that the revenue would
continue. The fact that my son relies on me due is part of what creates
my obligations to him, and this reliance creates a duty to preserving
business operations on the part of the company.
Continuity professionals have always justified their work in terms of
the enlightened self-interest of the organization. But their work is
more important than the corporate bottom line. Business continuity is
not just good business, but a moral imperative of the organization. A
business sits at the nexus of a web of dependencies that result in a
moral duty for the business to reduce the likelihood that it cannot
serve those dependencies.
John Orlando, Ph.D., is the program director for the Norwich University Master of Science in Business Continuity Management.
"Appeared in DRJ's Fall 2008 Issue"
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