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Prof's Perspective: COVID-19 and the tragedy of the common
By Paul Dunn
The COVID-19 pandemic has brought out some of the best and worst in people.
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Dillon’s Small Batch Distillers in Beamsville, Ont., used its supply of alcohol to produce hand sanitizer that it freely gave to health-care professionals — an example of a firm being socially responsible for the greater good of society.
Similarly, the government closed bars, restaurants and gyms in red zones for public safety. Preventing the spread of the disease benefits all of society. Unfortunately, personal self-interest encouraged some to flout the lockdown as they travelled to non-red zones for dinner or to attend spin class.
The parable of the tragedy of commons is normally used to illustrate the need for sustainability. The story also applies to diners and spinners, and future business leaders.
In ancient England, the townsfolk built their cottages around a large grassy, common area. At night, their animals grazed here. Eventually, one entrepreneur realized that if she put two cows on the common, she could sell the extra milk for a profit. Her next-door neighbour thought that if she could put two cows on the common, then he could have three sheep, and sell the extra wool for a profit. The third neighbour then decided to put four goats on the common. Eventually, there were so many animals that they ate all the grass.
From the perspective of each person’s narrow economic self-interest, the decision to put an additional animal on the common is rational. Unfortunately, it does not provide for the common good of the community.
The moral of the story is that if goods are perceived as freely available for anyone to use, then people will exploit them. Resource companies strip the earth of its minerals because the ores are there for the taking. People overfish the oceans because fish are plentiful. There is no economic motivation for any one firm or person to look out for the common good. Let everyone else be responsible while I make a profit.
The tragedy is a reminder that all economic decisions have social consequences. Unrestrained economic selfinterest results in the world’s resources no longer being available to future generations. Listen to the call of the Swedish activist Greta Thunberg.
The parable also has application to COVID-19. By travelling to a non-red zone, diners and spinners have the potential to harm the interests of society by increasing the chances of the disease being spread. Unbridled self-interest must be constrained for the common good. If we do so, eventually everyone can go to theatres, restaurants, bars and gyms because collectively we will have controlled the pandemic.
At the Goodman School of Business, we are developing and training future business leaders. Part of our mission is to ensure they are all keenly aware that every one of their economic decisions has social implications. Unconstrained self-interest may be economically worthwhile but is undesirable for the collective good. Ethically responsible leaders know that the survival of the common is essential for the continuation of business and society. Paul Dunn, Professor of Ethics
