Difference Between Rational And Reasonableness

Submitted By kklee
Words: 1248
Pages: 5
Open Document
In my work as a lawyer advising business clients on labour, employment and human rights issues I have found that there is a general confusion about two types of related but distinct forms of logic: the "rational" and the "reasonable". The distinction between the rational and the reasonable has been recognized explicitly or implicitly by philosophers like Max Weber, Chaim Perelman, and John Rawls. In my view, understanding the distinction is of essential importance to understanding Corporate Social Responsibility (CSR) obligations. Proper understanding of the distinction can allow business to maximize fundamental business objectives like profitability while ensuring social sustainability. Failure to recognize and act upon the distinction is a recipe for disaster. Let me explain...

Both rationality and reasonableness refer to the character of logical validity. If we say someone is acting "rationally" or "reasonably", we mean in both cases that they are acting logically. There are occasions where the terms will be synonymous. Sometimes however, there will be an essential distinction between the terms. For example, we can say that someone is acting "rationally", but that they are entirely "unreasonable". We may, to use a blunt example, say that a criminal acted "rationally" because they carried out their crime in a logical way. They have acted "unreasonably" however because we believe that crime is wrong. Such a statement makes sense because of the subtle difference between the terms. Rationality is a form of logic that flows from premises that are self-evident or incontestable. Such premises may be objectively or empirically verifiable. They may also simply be squarely within the personal preference of the actor under consideration. In this sense, economic actors are said to be "rational" insofar as they act upon their own preferences. Those preferences, as logical premises used to draw logical conclusions regarding the "rationality" of the economic actor, cannot be contested. We cannot challenge someone's preferences as "invalid" or "untrue". A person's preferences are their preferences, and as such are self-evident and uncontestable facts, to the extent they are identifiable.

Evaluations of "reasonableness" do not flow from self-evident premises. Instead, we evaluate reasonableness based upon shared preferences, or values, or other normative considerations which themselves may be subject to contestation because different audiences may have different understandings of what is reasonable or not. Reasonableness, as a question, is therefore determined by considering the preferences, values, or interests of a broader social audience than simply the actor being evaluated as "reasonable" or "not reasonable". For an assessment of reasonableness or unreasonableness to be logically true, the one making the assessment must give consideration to whether the criteria used to assess reasonableness are persuasive, and then consider whether the evaluated actor is acting in a way consistent with acceptable premises. Only then will the conclusion of "reasonableness" or "unreasonableness" have any meaning. Conversely, this means that a reasonableness assessment can be challenged on the basis that it has applied the wrong premises, meaning that the criteria of "reasonableness" are not persuasive and should not be used, or that the evaluated actor actually has acted in a manner consistent with such premises.

On the contrary, if a conclusion of rationality is drawn it will be valid so long as the premises are empirically true, and the evaluation is logically sound. Normative concepts, such as values etc., cannot be shown to be empirically true in this way (except to show that they are empirically shared by a salient audience and are thus appropriate for such an audience to use in a reasonableness evaluation). As such, reasonableness evaluation is not an empirical exercise, as much as it is an act of persuasion, employing the logic of
Show More

Related Documents: Difference Between Rational And Reasonableness

Case Study 2 Inventec Corp Essay

1Sharyl Lau Business Analysis & Valuation Case Study 2: Inventec Corporation Michael Porter’s 5 forces in ODM 1. Rivalry: There is a large no. of competitors Low switching cost Industry is growing (20%) High fixed to variable cost Low excess capacity Therefore, competition between existing companies is high 2. New entrants (Entry barriers): First mover advantage; small market share left High cost involved for machinery and R&D Patents on existing competitors Medium entry barriers 3. Bargaining…

Words 509 - Pages 3

Risks: Web Hosting Service and Online Systems Solutions Essay

have a system procedure for all of the tasks that need to be done. About Online Systems Solutions - Web hosting services In recent times we have branched out into web hosting. The web hosting section of our business is small but growing rapidly. The web servers for our hosting business and the servers for our admin systems (finance, payroll, staff scheduling etc.) have outgrown the space allocated for the IT infrastructure and the servers are now located in two rooms in the same building. Room…

Words 1717 - Pages 7

Essay on Bureaucracy in Organization: Advantages, Disadvantages

The concept of objectivity indicates that the interactions between client and organisation must be structured in a way that personal feelings and judgements of employees do not play any role in operating an organisation. According to this principle client should be treated equally an just on the basis of formal and structural instruction of organisation or business. From an Ethical point of view this latter principle is so important and can offer higher degree of…

Words 2117 - Pages 9

Budgeting: Costs and Budget Budgeted Income Essay

actual data differ significantly from the static budget, there's no way to change the budget or to determine if the costs to produce the revenue were properly control. On the other hand Flexible budgets is a more sophisticated method because the new business owner can make changes to the budget in the middle of the reporting period Flexible budgets require knowing in advance which costs are fixed or variable, and how expenses are affected by changes in revenue. Q2 The company budget is the management…

Words 794 - Pages 4

Ferro Case Study Answer Essay

discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request…

Words 2437 - Pages 10

Community Resources Essay

Denis office manager of Abilities. DECSA – Distinctive Employment Counselling Services of Alberta (i) Their Mission A community based not for profit organization operating since 1977. Who works collaboratively with agencies and employers to aid clients in overcoming barriers to employment in a changing world. Decsa offers supportive, individualized programs for people requiring skill development, job placement or on the job support. While assisting them in acquiring paid, meaningful employment…

Words 1582 - Pages 7

London and Uk Labour Market Essay

Exploring Economic and Labour Market Developments and change: Participation, Equality and Disadvantage at the National and Regional Level. Issues and implications for People Management and Policy and Practice Introduction: In the last 100 years the British labour market has been in many ways a more equal and fairer society it has ever been. For example, 70 years ago women were not allowed to work after they got married and people were openly discriminated on their colour of their…

Words 3572 - Pages 15

Unit 1 M2 Business

In this report, I would describe the influences of two different economic environments on organisations activities within a selected organisation and I would describe how different factors; political, legal and social factors influence on the business activities of the selected businesses and on their stakeholders. Furthermore, I will also link different challenges to selected businesses in two contrasting economic environments. I will also analyse how political, legal & social factors have affected…

Words 1398 - Pages 6

Labour Economics and British Airways Essay

Contents page Introduction Page 1 Labour Market definition: Page 1 Labour market patterns Page 1 Trends in the Graduate market Page 1-2 Prediction for Graduates in 2013 Page 2 PEST:- Economic…

Words 2452 - Pages 10

International Business - Thailand Essay examples

Cummins Monday 27 May 2013 Ms Cummins COnducting Business in Thailand International Business COnducting Business in Thailand International Business Contents 1.0 Introduction 1 1.1 Aim 1 1.2 Scope 1 1.3 Sources 1 2.0 General Considerations and Implications for Business 1 2.1 Currency and Exchange Rates 1 2.2 Political and Economic Climate 1 2.3 Language, Religion and Cultural Differences 1 3.0 Business Dealings 1 3.1 Status Issues 1 3.2 Cultural Differences…

Words 2852 - Pages 12