The moral intuitions and arguments of some prominent business ethics authors regarding the ethics of monopoly are drenched with contestable economic theory. Discussions too typically ignore theoretical alternatives and debates about the nature of monopolies, their assets and liabilities. I review the theoretical debates and show why they matter to business ethics. That there may be genuine cases of rivalrous monopoly, that monopolies might in the odd circumstance prove more efficient or become advantageous in contests with labor or useful in (...) respect of a nation''s international affairs does not imply we should unwary of monopolies. However, not only the best theory to date, but also the mere fact of serious disagreement in the field suggests that there is no necessary connection between monopolies and practices such as price discrimination, price fixing, bribery, collusion, and so on. This frustrates the most pervasive and most prominent argument so far for the claim that monopolies are intrinsically unethical. (shrink)

Recent finance literature attributes the development of derivative instruments to technological advances, and improved mathematical models for predicting option prices. This paper explores the role of social ethics in the acceptance of financial derivatives. The relationship between utilitarian ethical principles and the demise of turn-of-the-century bucket shops is contrasted with modern tolerance of financial derivatives based upon libertarian ethical precepts. Our conclusion is that a change in social ethics also facilitated the growth in trading in modern financial derivatives.

The history of the field of business ethics in the U.S. remains understudied and misunderstood. In this article I begin to remedy this oversight about the past, and I suggest how it can be beneficial in the present. Using both published and unpublished primary sources, I argue that the business ethics field emerged in the early twentieth century, against the backdrop of the establishment of business schools in major universities. I bring to light four important developments: business ethics lectures at (...) the University of California and Yale University, Leon Marshall’s curriculum at the College of Commerce of the University of Chicago, and the William A. Vawter Foundation on Business Ethics at Northwestern University. Then, I consider the payoffs of my historical account for business ethics theory, pedagogy, and practice. Specifically, I present four implications of my account under these headings: business ethics as a public problem; the place of ethics in business schools; historicizing business ethics; and historical self-knowledge. (shrink)