It is widely agreed that one of the core functions of government is to supply public goods that markets either fail to provide or cannot provide efficiently. I will suggest that arguments for government provision of public goods require fundamental moral judgments in addition to the usual economic considerations about the relative efficacy of markets and governments in supplying them. While philosophers and policymakers owe a debt of gratitude to economists for developing the theory of public goods, the link between (...) public goods and public policy cannot be forged without moral reflection on the proper function and scope of government power. (shrink)

There are three main approaches to scientific explanation in the philosophical literature. The unification approach claims that science explains by fitting the particular facts and events within a general theoretical framework. The mechanistic approach claims that science explains by identifying mechanisms. According to the manipulationist approach an explanation ought to be such that it can be used to answer a “what-if-things-had-been-different question.” The article examines whether these three approaches are compatible or not in the case of the social sciences, and (...) it concludes by defending explanatory pluralism. (shrink)

Scientific research is reconstructed as a language game along the lines of Robert Brandom's inferentialism. Researchers are assumed to aim at persuading their colleagues of the validity of some claims. The assertions each scientist is allowed or committed to make depend on her previous claims and on the inferential norms of her research community. A classification of the most relevant types of inferential rules governing such a game is offered, and some ways in which this inferentialist approach can be used (...) for assessing scientific knowledge and practices are explored. Some similarities and differences with a game-theoretic analysis are discussed. (shrink)

: Accusations of infeasibility or utopianism are common in debates over libertarian institutions, but exactly what we mean when we say an idea is “utopian” or “infeasible” is often left unspecified. After reviewing recent philosophical work attempting to clarify the concept of “feasibility,” I consider how the concept has been deployed in the debate among libertarians […].

The paper reconstructs in economic terms Friedman's theorem that the only social responsibility of firms is to increase their profits while staying within legal and ethical rules. A model of three levels of moral conduct is attributed to the firm: (1) self-interested engagement in the market process itself, which reflects according to classical and neoclassical economics an ethical ideal; (2) the obeying of the "rules of the game," largely legal ones; and (3) the creation of ethical capital, which allows moral (...) conduct to enter the market process beyond the rules of the game. Points (1) and (2) position the Friedman theorem in economic terms while point (3) develops an economic revision of the theorem, which was not seen by Friedman. Implications are spelled out for an instrumental stakeholder theory of the firm. (shrink)

The article reconstructs, in economic terms, managerial business ethics perceptions in the Japanese consumer market for fast-moving daily consumption products. An economic, three-level model of moral agency was applied that distinguishes unintentional moral agency, passive intentional moral agency and active intentional moral agency. The study took a qualitative approach and utilized as empirical research design an interview procedure. The study found that moral agency of Japanese firms mostly extended up to unintentional and intentional passive moral agency. Certain myopic managerial views (...) were found to affect active moral agency. This leaves room for business ethics program that aim at the development of active moral agency. (shrink)

The paper maps out an alternative to a behavioural (economic) approach to business ethics. Special attention is paid to the fundamental philosophical principle that any moral ‘ought’ implies a practical ‘can’, which the paper interprets with regard to the economic viability of moral agency of the firm under the conditions of the market economy, in particular competition. The paper details an economic understanding of business ethics with regard to classical and neo-classical views, on the one hand, and institutional, libertarian thought, (...) on the other hand. Implications are derived regarding unintentional and passive intentional moral agency of the firm. The paper moves on to suggest that moral agency can be economically viable in competitive ‘market’ interactions, which is conventionally disputed by classical/neo-classical and institutional, libertarian economics. The paper here conceptualises active moral agency of the firm as the utilisation of ethical capital in firm--stakeholder interactions. This yields a reinterpretation of instrumental stakeholder theory. (shrink)

Niklas Luhmann held a skeptical view of the role of morality in the modern society. The present paper reassesses this skepticism in view of his early work showing the regime of functional differentiation to be supported by fundamental human rights. Building on this argument, the paper advocates a more positive view of morality which is shown to be related to the sustainability of social systems in their encompassing societal and natural environment. This view is warranted by the overarching Luhmannian theme (...) of the precariousness of system–environment relations. If this view is accepted, Luhmann’s work on fundamental human rights can be read as an illustration of moral problems caused by the overexpansion tendencies of the political system. This argument is shown to connect up with the ideas of Buchanan and Rawls, as well as to fit in with the Luhmannian construct of the dilemma of structure and function. (shrink)

ABSTRACTThe ten essays in this symposium offer a rich and varied set of challenges to the market-democratic research program. Rather than replying to each critic in turn, I respond only to the main lines of critical challenge raised in this collection: that my account of thick economic liberty is too vague, that economic liberties are not basic, that market democracy gives too little attention to socialist possibilities, that market democracy can accommodate only an impoverished conception of fair equality of opportunity, (...) and, most notably, that market democracy is grounded upon a tendentious or “bourgeois” conception of the person. To meet these criticisms, I refine a central claim of market democracy: that the right to private ownership of productive property is a basic right. In response to the worry that market democracy allows for class domination, I revise market democracy on the issue of bequests. After replying to the critics I extend my challenge to social democracy, presenting an historical argument against liberal democratic socialism. (shrink)

In Unfit for the Future, Ingmar Persson and Julian Savulescu present a challenging argument in favour of biomedical moral enhancement. In light of the existential threats of climate change, insufficient moral capacities of the human species seem to require a cautiously shaped programme of biomedical moral enhancement. The story of the tragedy of the commons creates the impression that climate catastrophe is unavoidable and consequently gives strength to the argument. The present paper analyses to what extent a policy in favour (...) of biomedical moral enhancement can thereby be justified and puts special emphasis on the political context. By reconstructing the theoretical assumptions of the argument and by taking them seriously, it is revealed that the argument is self-defeating. The tragedy of the commons may make moral enhancement appear necessary, but when it comes to its implementation, a second-order collective action-problem emerges and impedes the execution of the idea. The paper examines several modifications of the argument and shows how it can be based on easier enforceability of BME. While this implies enforcement, it is not an obstacle for the justification of BME. Rather, enforceability might be the decisive advantage of BME over other means. To take account of the global character of climate change, the paper closes with an inquiry of possible justifications of enforced BME on a global level. The upshot of the entire line of argumentation is that Unfit for the Future cannot justify BME because it ignores the nature of the problem of climate protection and political prerequisites of any solution. (shrink)

A number of business ethics theorist have highlighted the potential for economics to contribute to the advancement of business ethics. In response, this article emphasizes the insights of a particular area of economics that could provide such expansion and development. Subjectivist economics may yet provide an effective analytical framework through which to investigate and evaluate business decision making, and hence the ethics of business. Integrating the concepts of uncertainty, time and imagination, subjectivist economic theory contributes to a greater appreciation of (...) economic choice and behaviour. While such notions are often effectively omitted from modern economic analysis to aid formal representation, business ethicists could utilize such concepts more effectively than their colleagues in economic theory. Significantly, the well-known economists who have championed the insights of subjectivist economics have themselves recommended its extension to an analysis of ethics. (shrink)

ABSTRACT:In response to criticism of empirical or “positive” approaches to corporate social responsibility (CSR), we defend the importance of these approaches for any CSR theory that seeks to have practical impact. Although we acknowledge limitations to positive approaches, we unpack the neglected but crucial relationships between positive knowledge on the one hand and normative knowledge on the other in the implementation of CSR principles. Using the structure of a practical syllogism, we construct a model that displays the key role of (...) empirical knowledge in fulfilling a firm’s responsibility to society, paying special attention to the implications of the “ought implies can” dictum. We also defend the importance of one particular class of empirical claims; namely, claims from the field of economics. Even positive economic theory, which is often criticized for endorsing profits rather than values, can cooperate in intriguing ways with non-economic concepts in the implementation of CSR goals. (shrink)

The gap between economic rationality, as embedded in utility maximization, and ethical rationality, identified with a set of rules that prescribe the right course of action, has been a challenging issue for economists, philosophers, and business ethicists. Despite the difference and the noncompetition between a scientific economic approach of economics and business ethics, and a behavioral and philosophical one, we highlight the importance of the Aristotelian concept of prudence or phronesis applied to business activity. Phronesis allows for a conceptualization of (...) rationality that can be simultaneously applied to economics and ethics. It also allows conceiving the intrinsically ethical nature of economic rationality. This relationship requires an appropriate education and the intervention of the state. (shrink)

This article addresses major arguments in the controversy about the “rationality” of moral behavior: can moral behavior be explained by rational choice theory (RCT)? The two positions discussed are the incentives thesis (norms are incentives as any other costs and benefits) and the autonomy thesis claiming that moral behavior has nothing to do with utility. The article analyses arguments for the autonomy thesis by J. Elster, A. Etzioni, and J. G. March and J. P. Olsen. Finally, the general claim is (...) discussed whether norm following and norm emergence are utility maximizing. The conclusion is that the autonomy thesis is not tenable if one applies a wide subjectivist, social psychological version of RCT that includes the assumption of “bounded rationality.” The autonomy thesis is only compatible with a narrow version of RCT that excludes internal outcomes and that refers to norms that do not have external outcomes. It is argued that such a narrow version is not capable of explaining many forms of behavior social scientists are interested in. (shrink)

Contract-based approaches have been a focus of attention in business ethics. As one of the grand traditions in political philosophy, contractarianism is founded on the notion that we will never resolve deep moral disagreement. Classical philosophers like Hobbes and Locke, or recent ones like Rawls and Gaus, seek to solve ethical conflicts on the level of social rules and procedures. Recent authors in business ethics have sought to utilize contract-based approaches for their field and to apply it to concrete business (...) dilemmas. However, the application of contractarianism to management contexts can cause difficulties. Our article discusses this conceptual problem of contractarian business ethics and presents the idea of order ethics as an alternative. Order ethics, as we argue, can make a difference by conceptually bridging the gap between contractarianism and business ethics. (shrink)

This article discusses the possibility of an economic foundation for a work and savings ethic. In particular, James M. Buchanan has, in his late works, endorsed traditional 'Puritan' demands for working and saving more, while arguing that this is beneficial for all members of a society. I will question Buchanan's analysis of the 'Puritan' ethic both in normative and methodological respects before aiming at a constructive interpretation.

Many traditional conceptions of ethics use categories and arguments that have been developed under conditions of pre-modern societies and are not useful in the age of globalisation anymore. I argue that we need an economic ethics which employs economics as a key theoretical resource and which focuses on institutions for implementing moral norms. This conception is then elaborated further in the area of business ethics. It is illustrated in the case for banning child labour.

John Stuart Mill provides a classic defense of individual and group rights to liberty with respect to purely private or self-regarding matters: The only part of the conduct of any one, for which he is amenable to society, is that which concerns others. In the part which merely concerns himself … directly, and in the first instance, … his independence is, of right, absolute.… From this liberty of each individual, follows the liberty, within the same limits, of combination among individuals; (...) freedom to unite, for any purpose not involving harm to others: the persons combining being supposed to be of full age, and not forced or deceived. (shrink)

ABSTRACT:The notion of “democracy” has become a much-debated concept in scholarship on business ethics, management, and organization studies. The strategy of this paper is to distinguish between a principle of organization that fosters participation and a principle of legitimation that draws on consent. Based on this distinction, we highlight conceptual shortcomings of the literature on stakeholder democracy. We demonstrate that parts of the literature tend to confound ends with means. Many approaches employ type I democracy notions of participation and often (...) take for granted that this also improves type II democratic legitimation. We hold this to be a mistake. We provide examples of the ambiguity of organizational procedures and show that under some circumstances a decrease in the degree of participation may actually increase legitimation because a governance structure that results in higher productivity can provide higher benefits for all parties involved, serve their interests and therefore meet their agreement. Less type I democracy may mean more type II democracy. We believe this to be an important insight for judging the legitimacy of both capitalistic firms and competitive markets. (shrink)

Political liberalism began in the eighteenth century with the effort to establish a secular state in which religious differences would be tolerated. If religious views include universal principles to apply to all by force if necessary, diverse religions must conflict, perhaps fatally. In a sense, then, political liberalism was an invention to resolve a then current, awful problem. Its proponents were articulate and finally persuasive. There have been many comparable social inventions, many of which have failed, as Communism, egalitarianism, and (...) perhaps socialism have all failed to date. The extraordinary thing about political liberalism is that it seems to have succeeded in its authors' initial hope for it. It may have helped end the turmoil occasioned by religious differences. Political liberalism has since expanded in various ways under other influences, and, if it were not for Islamic fundamentalism with its seemingly coercive theocratic program, we might no longer today associate religious conflict with the core of liberalism in its actual practice. (shrink)

This paper analyses whether the aggregation of individual happiness scores to a National Happiness Index can still be trusted once governments have proclaimed their main objective to be the pursuit—or even maximization—of this National Happiness Index. The answer to this investigation is clear-cut: as soon as the National Happiness Index has become a policy goal, it can no longer be trusted to reflect people’s true happiness. Rather, the Index will be systematically distorted due to the incentive for citizens to answer (...) strategically and the incentive for government to manipulate the Index in its favour. Such a distortion would arise even if the measurement of subjective well-being correctly reflected actual happiness before the intervention of government. Governments in a democracy should establish the conditions enabling individuals to become happy. The valuable and important results of happiness research should be introduced into the political process. Each person should be free to pursue happiness according to his or her preferences. This process is supported by obedience to the rule of law, human rights and free media, as well as by extended political participation rights, decentralized public decision-making, an open and effective education system fostering upward mobility and the possibility to find suitable employment. (shrink)