There are several reasons why some are reluctant to apply business ethics to public sector ethics.
PublicPrivate Distinction
Those who draw a strong distinction between public and private might also seek to distinguish the ethics of their operatives. However, the distinction is often - criticized and the similarities between large government organizations and large no government organizations are frequently more illuminating than their differences. In particular, we have seen the strong similarities in the kinds of justifications for public and private sector institutions.
Only the state may lawfully incarcerate a citizen. Accordingly, those state organs who exercise that power are, properly, subject to higher legal standards and, it is generally thought, to higher moral standards. But the power of most other organs of government to affect citizens is comparable to that of large corporations. Although there are many differences of quality and degree, it would be argued that the power of all large organizations - governments, businesses and unions -generate ethical obligations. Institutional power is a point of similarity rather than difference between business and government ethics.
Thus most of the sources of differences between business and government tend to be either overstated or of limited relevance to the kind of ethics to be practiced in either. To the contrary, government and business ethics raise similar issues, similar problems and require similar solutions.
The problems of business and government conduct that give rise to cries about ethics are essentially problems with society most important institutions. Too few of neither government nor business institutions are living up to the kinds offends that would justify the power and privilege we concentrate in their hands.
The solutions lie in looking to the justifications of those institutions and use those justifications to generate appropriate legal rules, ethical standards and institutional structures.
This does not mean that the problems or the solutions are identical -institutions differ in their justifications and the institutional forms that defeat or support their realization. But the difference lies in the nature of those justifications and the institutional forms that can realize them rather than in whether they are, for the moment, in government rather than business hands.
It is axiomatic that we cannot improve the conduct of public sector officials by ethics alone. Ethics is a part of the process by which the improvement can be achieved - but it must ultimately involve legal reform and institutional design. That process involves considering the justification of the institution from which can be derived the three elements of the trinity.
In seeking that justification we could start with any of the elements - considering the purpose of the law or the mission of the institution. But despite the fact that ethics is not the only place to start, it is probably the easiest place to start because ethics is naturally seen as relating to values whereas so much of law and management are seen to be technical. The attempt to institutionalize public sector ethics is occurring at the same time as the state is updating its administrative law and reforming the organization of its public service.