RESUMO Neste artigo, são rejeitadas duas teses relativamente aceitas a respeito do projeto filosófico tardio desenvolvido por John Rawls. A primeira tese afirma que o objetivo de obras como "O Liberalismo Político" e "Justiça como Equidade: Uma Reformulação" seria o de revisar a natureza do argumento contratualista de Rawls. A segunda, por sua vez, afirma que a principal consequência dessa revisão teria sido certo recuo das implicações igualitárias de sua teoria da justiça original. Procurar-se-á rejeitar ambas as proposições mostrando que (...) "O Liberalismo Político" deve ser entendido como uma teoria acerca do uso legítimo do poder em uma sociedade democrática, e que essa teoria da legitimidade possui consequências distributivas próprias, incompatíveis com teorias liberais convencionais. ABSTRACT The article aims to reject two interrelated theses on the philosophical project carried forward by the late John Rawls. The first thesis states that there is an important change in Rawls' late works such as "Political Liberalism" and "Justice as Fairness: A Restatement" regarding the nature of his theory. Particularly, this change would had brought about a reassessment of Rawls' contractualist argument. The second thesis claims that one of the most important consequences of such reassessment is the retreat from strong egalitarian commitments, as they were present in Rawls' original theory of justice. The article rejects both theses, showing that Political Liberalism can be understood as a theory about the legitimate uses of power in a democratic society and that such new theory of legitimacy brings about distributive consequences by its own that sharply contrast with classical liberal theories. (shrink)

We expound an economic explanation of the nature, causes, and effects of moral conventions. We show, first, that systems of moral rules lead to Pareto-efficiency; second, that the efficiency they induce may be interpreted as the outcome of an exchange of courtesies; third, and finally, that moral exchange takes place whenever the costs of transaction are sufficiently low. We also explain various phenomena, including the diversity of moral rules in time and space. Finally, we give sufficient conditions for universal moral (...) rules to emerge in a sequence of agreements involving two agents only at a time. (shrink)

This essay is part of a larger project exploring the extent to which the market paradigm might be usefully employed to explain and in some instances justify nonmarket institutions. The focus of the market paradigm in this essay is the relationship between the idea of a perfectly competitive market and aspects of both the rationality of political association and the theory of collective choice. In particular, this essay seeks to identify what connections, if any, exist between one kind of market (...) account of the rationality of political association and one kind of market-based social choice rule. The market theory of political association I intend to discuss I call “market contractarianism,” and the collective choice rule whose relation to it I intend to explore is the unanimity rule. What, if anything, is the relationship between market contractarianism and the unanimity rule? (shrink)

The Adam Smith problem refers to a claimed inconsistency between the Theory of Moral Sentiments and the Wealth of Nations, regarding the portrayal of human nature in these two books. Previous research predominantly resolved the claimed inconsistency by uncovering virtuous, less selfish character traits in the Wealth of Nations. This article voices caution. I acknowledge – on methodological grounds – fundamental differences regarding the portrayal of human nature in Smith’s behavioral ethics, i.e. the Theory of Moral Sentiments, as compared with (...) Smith’s economic research. The key argument is that Smith’s two books address different research problems and hence do not, need not and cannot adopt the same view of human nature – for methodological reasons, so my argument. Adam Smith scholarship overlooked that Smith himself in considerable degrees understood “economic man” as a heuristic abstraction. I connect to the philosophies of science of Imre Lakatos and Karl Popper. (shrink)

This paper identifies and responds to four critiques of democratic contractarianism, as advocated in Democratic Justice and the Social Contract, to be found in this symposium. The first is that, as a contingent practice-dependent account of justice, democratic contractarianism lacks the capacity to explain civic cooperation. The second is that, despite its intentions, Democratic Justice does not lay out an authentic contractarian theory. The third is that the theory is incompatible with our considered judgements about justice. And the fourth is (...) that the ambition of Democratic Justice to use the empirical method to compensate for the failures of hypothetical contract theory fails because all social science needs interpretation. To each of these critiques, replies are offered, drawing attention to the way in which democratic contractarianism exemplifies a logic of social cooperation to mutual advantage that is compatible with justice provided the cooperation emerges from a bargaining situation of roughly equal power. (shrink)

Part one of this paper considers the question of property rights in general and asks how such rights can be justified, contrasting Consequentialist with other approaches and concludes that it is impossible to avoid a broadly Consequentialist approach. Part two considers the question of intellectual property (IP) and asks how property rights justifications apply to it. The basic economics if IP is indispensable in this discussion. Finally, part three, considers IP in the light of modern technological developments. I conclude that (...) the real dangers lie more in the specific ways government and special interests respond to this technology than from the nature of IP rights themselves. (shrink)

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.

Examines Hegel’s unique understanding and assessment of capitalism as an economic, social, and cultural phenomenon.

This paper argues that there are areas of political behavior for which the usual assumption of wealth maximizing homo economicus is to narrow to generate convincing explanation of behavior. In particular, it is argued that for many political decisions, people choose according to some set of moral preconceptions while for others, people have insufficient information to make economic choices even if they were inclined to do so. This implies that normative public choice can only be part of a political decision (...) process in which non-pecuniary concerns influence choices. Finally, constitutional economics insofar as it is conceptually conceived, must presume some set of moral and informational properties of the parties to the social contract. (shrink)

The paper focuses on Anthony de Jasay's "anarcho-liberalism" as based oon his game-theoretic approach to the problem of public goods provision.

ABSTRACT Self-Interest and Public Interest in Western Politics showed that the public, politicians, and bureaucrats are often public spirited. But this does not invalidate public-choice theory. Public-choice theory is an ideal type, not a claim that self-interest explains all political behavior. Instead, public-choice theory is useful in creating rules and institutions that guard against the worst case, which would be universal self-interestedness in politics. In contrast, the public-interest hypothesis is neither a comprehensive explanation of political behavior nor a sound basis (...) for institutional design. (shrink)

The aim of this paper is to critically review the game-theoretic discussion of Hobbes and to develop a game-theoretic interpretation that gives due attention both to Hobbes's distinction between “moderates” and “dominators” and to what actually initiates conflict in the state of nature, namely, the competition for vital goods. As can be shown, Hobbes's state of nature contains differently structured situations of choice, the game-theoretic representation of which requires the prisoner's dilemma and the assurance game and the so-called assurance dilemma. (...) However, the “state of war” ultimately emerges from situations that cannot be described by any of these games because they represent zero-sum games in which the outcome of mutual cooperation does not exist. (shrink)

With the publication of A Theory of Justice in 1971, John Rawls not only rejuvenated contemporary political philosophy but also defended a Kantian form of Enlightenment liberalism called “justice as fairness.” Enlightenment liberalism stresses the development and exercise of our capacity for autonomy, while Reformation liberalism emphasizes diversity and the toleration that encourages it. These two strands of liberalism are often mutually supporting, but they conflict in a surprising number of cases, whether over the accommodation of group difference, the design (...) of civic education, or the promotion of liberal values internationally. During the 1980’s, however, Rawls began to jettison key Kantian characteristics of his theory, a process culminating in the 1993 release of Political Liberalism and completing the transformation of justice as fairness into a Reformation liberalism. -/- Reconstructing Rawls argues that this transformation was a tragic mistake because it jeopardized the most important features of his theory, viz. the lexical priorities of right, liberty, and fair equality of opportunity as well as the difference principle. Controversially, this book contends that Rawls’s so-called “political turn,” motivated by a newfound interest in diversity and the accommodation of difference, has been unhealthy for autonomy-based liberalism and has pushed liberalism more broadly towards cultural relativism, be it in the guise of liberal multiculturalism or critiques of cosmopolitan distributive-justice theories. The book then demonstrates that the central elements of justice as fairness can only be defended within the context of a Kantian Enlightenment liberalism and that Rawls’s hope for a more pluralistic grounding for his theory, endorsed by a wide variety of belief systems present in modern democratic societies, is illusory. -/- Reconstructing Rawls is the first book to systematically compare Rawls’s and Kant’s theories and the first to offer an internal critique and reconstruction of justice as fairness, reconceiving it as a comprehensive, universalistic Kantian liberalism. By doing so, it gives us both the vision of a liberal world order—“a republicanism of all states, together and separately,” as Kant put it—and a mode of justification addressed to all men and women, not as members of particular nations, races, and faiths, but as human beings, as citizens of the world. In short, it reclaims Rawls for the Enlightenment. (shrink)

In this article, I derive a weak version of Kant's categorical imperative within an informal game-theoretic framework. More specifically, I argue that Hobbesian agents would choose what I call the weak principle of universalization, if they had to decide on a rule of conflict resolution in an idealized but empirically defensible hypothetical decision situation. The discussion clarifies (i) the rationality requirements imposed on agents, (ii) the empirical conditions assumed to warrant the conclusion, and (iii) the political institutions that are necessary (...) to implement the derived principle. The analysis demonstrates the moral significance of the weak principle of universalization and its epistemic advantage over the categorical imperative. (shrink)

There is, in Sarajevo, a man who comes out into the streets each day and plays his cello on the sidewalk. He does this at the same time each day, no matter how much shooting or shelling is going on, no matter how great the danger to himself. He describes himself as having decided to take a stand for beauty in the face of horror. Can the rational choice paradigm, as currently practiced in the various disciplines of economics, philosophy, political (...) science, and law, offer an account of this man's decision and his behavior? This admirable man seems to be a rebuke to the philosophies of calculated self-interest. Can we offer some account of his behavior, without descending into the tautological claim that he did what he did because he wanted to? Can we offer some insight into his wants that will make him intelligible? And not only intelligible, but can we account for him in a way that highlights his admirability, rather than suggesting that he is in some way an aberration, or perhaps even a fool? There is a deep disorder within the human condition. All of the essays in the present volume point to this fact in one way or another. Some characterize the disorder as a conflict between virtue and self-interest. Others point to the dichotomy between the individual and other persons as being the source of the tension between morality and self-interest. Some of the essays attempt to resolve the tension by collapsing the two categories into each other. (shrink)

After a regime-changing war, a state often engages in lustration—condemnation and punishment of dangerous, corrupt, or culpable remnants of the previous system—e.g., de-Nazification or the more recent de-Ba’athification in Iraq. This common practice poses an important moral dilemma for liberals because even thoughtful and nuanced lustration involves condemning groups of people, instead of treating each case individually. It also raises important questions about collective agency, group treatment, and rectifying historical injustices. Liberals often oppose lustration because it denies moral individualism and (...) ignores rule of law, and their only justifications for lustration are consequentialist ones. This article suggests that lustration may not necessarily be a problem for liberals. While group treatment might be justified on grounds of convenience and pragmatism in times of transitional justice, there are also valid moral arguments consistent with moral individualism and due process for wholesale group punishment after a war. This article offers four overlapping moral justifications, in a robust defense of the core concept of lustration that is covered by each argument. (shrink)

The concept of fairness as mutual advantage has been developed in the tradition of social contract theory. In this framework society is seen as an enterprise that coordinates the activities of its members in order to advance their interests. All acceptable social rules are in the interest of each member of society. Rules are agreed unanimously – no rules can be enforced against the interest of someone. It is assumed that individuals are basically self-interested and rational. Radical libertarianism claims that (...) individuals do not have to accept any a priori constraints on their behavior. “Libertarianism focuses on negative freedom”. (shrink)

Discoverers of “market failures” as well as advocates of the general efficiency of a “true, unhampered market” sometimes seem to disregard the fundamental fact that there is no such thing as a “market as such.” What we call a market is always a system of social interaction characterized by a specific institutional framework, that is, by a set of rules defining certain restrictions on the behavior of the market participants, whether these rules are informal, enforced by private sanctions, or formal, (...) enforced by a particular agency, the “protective state,” in J. M. Buchanan's terminology. (shrink)

Can nonhuman animals and artificial intelligence (AI) entities be attributed moral agency? The general assumption in the philosophical literature is that moral agency applies exclusively to humans since they alone possess free will or capacities required for deliberate reflection. Consequently, only humans have been taken to be eligible for ascriptions of moral responsibility in terms of, for instance, blame or praise, moral criticism, or attributions of vice and virtue. Animals and machines may cause harm, but they cannot be appropriately ascribed (...) moral responsibility for their behavior. This thesis challenges the conventional paradigm by proposing an alternative approach where moral agency is conceived as the competence to participate in moral responsibility practices. By shifting focus from intra-individual to contextual and socially situated features, this practice-focused approach appears to make the attribution of moral agency to nonhuman animals and AI entities more plausible than commonly assumed. Moreover, considering the current and potential future prevalence of nonhuman animals and AI entities in everyday settings and social contexts, a potential extension of moral agency to such entities could very well transform our social, moral, and legal practices. Hence, this thesis proposes that the attribution or withholding of moral agency to different entities should be carefully evaluated, considering the potential normative implications. (shrink)

Why do we have social norms—of fairness, cooperation, trust, property, or gender? Modern-day Humeans, as I call them, believe these norms are best accounted for in cultural evolutionary terms, as adaptive solutions to recurrent problems of social interaction. In this paper, I discuss a challenge to this “Humean Program.” Social norms involve widespread behaviors, but also distinctive psychological attitudes and dispositions. According to the challenge, Humean accounts of norms leave their psychological side unexplained. They explain, say, why we share equally, (...) but not why we disapprove of those who don’t. I defend the Humean Program against this challenge. In particular, I suggest an idea for how to extend the Program to account for the psychological side of norms. Socially adaptive behaviors aren’t just likely to emerge in a group; They are also likely to be widely taught within it. The transmission of these behaviors through instruction explains why they are associated with distinctive normative attitudes and dispositions. These attitudes play a pedagogical role in helping transmit these behaviors to children and newcomers. (shrink)

Order ethicists favour incentives as a means for making moral progress but largely ignore an alternative method, namely, nudging, which has come to prominence through the work of behavioural scientists in recent years. In this paper, we suggest that this is a mistake. Order ethicists have no reason to ignore nudging as an alternative method. Arguments they might press against it include worries about paternalism, manipulation, autonomy, and unintended bad consequences. These are, we argue, largely unfounded insofar as they involve (...) misconceptions or affect incentives as well. In particular, we contend that only some, but not all, nudges are paternalistic, manipulative, and autonomy-reducing. The same is true of incentives. Also, both nudges and incentives can have unintended bad consequences. Therefore, order ethicists cannot endorse arguments against nudges without undermining their favourable view of incentives. In addition, there might be positive reasons to prefer nudges to incentives, for instance, when they are more freedom-preserving, more effective, cheaper, easier to implement, or less inequality-inducing than the latter. (shrink)

Different why-questions emerge under different contexts and require different information in order to be addressed. Hence a relevance relation can hardly be invariant across contexts. However, what is indeed common under any possible context is that all explananda require scientific information in order to be explained. So no scientific information is in principle explanatorily irrelevant, it only becomes so under certain contexts. In view of this, scientific thought experiments can offer explanations, should we analyze their representational strategies. Their representations involve (...) empirical as well as hypothetical statements. I call this the “representational mingling” which bears scientific information that can explain events. Buchanan’s thought experiment from constitutional economics is examined to show how mingled representations explain. (shrink)

Michael Huemer argues that cross-cultural convergence toward liberal moral values is evidence of objective moral progress, and by extension, evidence for moral realism. Nathan Cofnas claims to debunk Huemer’s argument by contending that convergence toward liberal moral values can be better explained by ‘two related non-truth-tracking processes’: self-interest and its long-term tendency to result in social conditions conducive to greater empathy. This article argues that although Cofnas successfully debunks Huemer’s convergence argument for one influential form of moral realism – Robust (...) Moral Realism, which holds that moral facts are non-natural, stance-independent normative facts – Cofnas’s debunking argument broadly supports a second type of moral realism: Enlightened Self-Interest Realism, the view that moral facts are reducible to stance-dependent requirements of instrumental (‘means-end’) rationality. Finally, this article argues that insofar as different Enlightened Self-Interest Realist theories make specific predictions about the intra- and inter-personal mechanisms behind moral convergence toward liberalism, empirical observations of cross-cultural convergence can provide independent support for Enlightened Self-Interest Realism. I conclude that this is an important mark in favor of Enlightened Self-Interest Realism over Robust Moral Realism. (shrink)

When Buchanan discusses the constitutional changes that members of society would agree to, he uses the status quo as the default. If no agreement occurs, we continue with the constitutional rules that are currently in place. This article argues that this choice results in an unjustified status quo bias. To make this point, I examine and challenge three possible arguments in favor of using the status quo as the default. Then, I give two arguments in favor of a form of (...) contractarianism that does not use the status quo as a default. (shrink)

Thomas Piketty’s Capital and Ideology offers a powerful critique of ideological justifications for inequality in capitalist societies. Does this mean we should reject capitalist institutions altogether? This paper defends some aspects of capitalism by explaining the epistemic function of market economies and their ability to harness capital to meet the needs of the relatively disadvantaged. We support this classical liberal position with reference to empirical research on historical trends in inequality that challenges some of Piketty’s interpretations of the data. Then (...) we discuss the implications of this position in terms of limits on the efficacy of participatory governance within firms and the capacity of the state to levy systematic taxes on wealth. (shrink)

This forum contribution addresses two major themes in de Goede’s original essay on ‘Financial security’: (1) the relationship between stable markets and the proverbial ‘security dilemma’; and (2) the development of new decision-technologies to address risk in the post-World War II period. Its argument is that the confluence of these two themes through rational choice theory represents a fundamental re-evaluation of the security dilemma and its relationship to the rule of law governing market relations, ushering in an era of perpetual (...) physical and financial insecurity. (shrink)

This chapter uses Uskali Mäki’s (2009) concepts of “good” and “bad” imperialism to investigate the “economics imperialism” thesis. If science expands by offering (a) consilience, and (b) epistemological and ontological unity – that is, it explains more phenomena with greater parsimony – then this is good scientific expansion. Economics imperialism is only bad if the methodology of economics expands outside its domain without increasing understanding in the above manners.

Contractarians aim to derive moral principles from the dictates of instrumental rationality alone. But it is well-known that contractarian moral theories struggle to identify normative principles that are both uniquely rational and morally compelling. Michael Moehler's recent book, *Minimal Morality* seeks to avoid these difficulties by developing a novel "two-level" social contract theory, which restricts the scope of contractarian morality to cases of deep and persistent moral disagreement. Yet Moehler remains ambitious, arguing that a restricted version of Kant's categorical imperative (...) is a uniquely rational principle of conflict resolution. We develop a formal model of Moehler's informal game-theoretic argument, which reconstructs a valid argument for Moehler's conclusion. This model, in turn, enables us to expose how a successful argument for Moehler's contractarian principle rests on assumptions that can only be justified by subtle yet significant departures from the standard conception of rationality. We thus extend our understanding of familiar contractarian difficulties by showing how they arise even if we restrict the scope of contractarian morality to a domain where its application seems both promising and necessary. We show that the problem lies not in contractarians' immodest ambitions but in the modest resources rationality can offer to satisfy them. (shrink)

ABSTRACTOne of the recurrent motifs in political thought is the idea of the social contract, according to which a society, a government, or moral principles depend for their existence on agreements...

To what extent is a prevalent social order that is constructed upon the freedom of the individual impacted by decisions taken in the domain of positive economics? How does the Hobbesian reductionist view of the state of nature correlate to the Kantian view of selfruled individualism expressed through rationality and autonomy? Applying Hobbesian thought in a democratic-economic context explains established and customary behaviour patterns of political economy in a reduced environmental setting. In precisely such setting individuals remain individuals on the (...) basis of their ability to freely enter into contracts and any political means are attached to these individuals governed through an artificially constructed social contract. In the value-based and moral understanding of the social contract in its Kantian interpretation, the individual demands dignity and respect. This consequently justifies the individual as an end, rather than only a mean. How does Hobbesian and Kantian philosophy measure-up to Buchanan’s public choice theory and to what degree does the inclusion of morals in public choice lead to a normative diffusion of the social contract theory? (shrink)

Mainstream economics evaluates capitalism primarily from the perspective of efficiency. Social philosophy typically applies other or additional normative criteria, such as equality, democracy, and community. This essay examines the implications of these contrasting sets of criteria in the evaluation of capitalism. Its first two sections consider the criteria themselves, assuming that a trade-off exists between them. The last three sections question whether such a trade-off necessarily occurs, and explore the claim that improvements in nonefficiency dimensions of capitalist society may enhance, (...) rather than conflict with, efficiency. (shrink)

Barbara Fried takes the view that uniform taxation—that is, a single rate applicable to all income levels—cannot be defended on any grounds of justice. She goes further by saying that, of all possible rate structures, it might be “the hardest one”? to ground in “a”? theory of fairness. Using the contractarian-constitutional perspective advanced by John Rawls and James Buchanan, this article argues that tax uniformity can be seen as a requirement of justice. After modelling how the political world realistically decides (...) to distribute tax shares (self-interested parties act under a majority constraint), I show how the uniformity principle could emerge from the constitutional contract. In other words, rational individuals would choose uniformity as a procedural constraint under a “veil of uncertainty”?; that is, with limited knowledge regarding their positions under the future application of the rule. Moreover, I elucidate how the uniformity requirement integrates generalized criteria of fairness and efficiency into fiscal politics as it precludes fiscal exploitation and constrains majorities, and their most influential subgroups, to opt for policies in the direction of the Pareto frontier, and as such promotes outcomes acceptable to all participants. (shrink)

In times of digitalization and globalization, social expectations change at an increasing pace. In order to provide orientation in times of frequent change, this article argues to reinforce the meaning of moral principles, norms, or values as focal points, which build the basis of mutually aligned behavioral expectations. Accordingly, the paper explains the abstract meaning of focal points – having reciprocal expectations as foundation for social cooperation – as well as the particular relevance of the focal point ‘do no harm’.

The view of Mandeville as a pioneer of laissez-faire is difficult to reconcile with his repeated insistence that private vices were turned into public benefits by the 'dexterous management of the skilful politician'. Even if references to the skilful politician are regarded as shorthand for a legal and institutional framework, there remains the question of whether such a framework is a spontaneous order or the product of purposeful experiment as Mandeville thought? Mandeville warned about the harmful effects of meddling but (...) his complaint was about the actions of fashionable do-gooders rather than government. He understood that the voluntariness of a transaction could be regarded as a defence against complaints of unfairness but he was quick to point out the limitations of voluntariness especially in the market for labour. Mandeville's objective was to teach people what they are not what they should be. He pointed to the strengths of the emerging market system but was not afraid to expose its faults. (shrink)

The topic of moral diversity is not only prevalent in contemporary moral and political philosophy, it is also practically relevant. Moral diversity, however, poses a significant challenge for moral theory building. John Thrasher, in his discussion of public reason theory, which includes social contract theory, argues that if one seriously considers the goal of moral constructivism and considerations of representation and stability, then moral diversity poses an insurmountable problem for most public reason theories. I agree with Thrasher that moral diversity (...) poses a significant challenge for orthodox multistage social contract theories. In fact, I even add a further problem for such theories under the assumption of deep moral diversity. Nevertheless, I argue that my recently developed multilevel social contract theory overcomes these problems. I focus on some of the underexplored features of this theory to show that multilevel social contract theory offers one conceptually coherent and plausible way to render social contract theory viable and relevant for modern diverse societies. (shrink)

This paper argues that mandatory, government-enforced vaccination can be justified even within a libertarian political framework. If so, this implies that the case for mandatory vaccination is very strong indeed as it can be justified even within a framework that, at first glance, loads the philosophical dice against that conclusion. I argue that people who refuse vaccinations violate the ‘clean hands principle’, a moral principle that prohibits people from participating in the collective imposition of unjust harm or risk of harm. (...) In a libertarian framework, individuals may be forced to accept certain vaccines not because they have an enforceable duty to serve the common, and not because cost–benefit analysis recommends it, but because anti-vaxxers are wrongfully imposing undue harm upon others. (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 (type I democracy) and a principle of legitimation that draws on consent (type II democracy). 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 (and further improving) the legitimacy of both capitalistic firms and competitive markets. (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)

The article suggests that in a modern context, where value pluralism is a prevailing and possibly, even ethically desirable interaction condition, institutional economics provides a more viable business ethics than behavioural business ethics, such as Kantianism or religious ethics. The article explains how the institutional economic approach to business ethics analyses morality with regard to an interaction process, and favours non-behavioural, situational intervention with incentive structures and with capital exchange. The article argues that this approach may have to be prioritised (...) over behavioural business ethics, which tends to analyse morality at the level of the individual and favours behavioural intervention with the individual’s value, norm and belief system, e.g. through ethical pedagogy, communicative techniques, etc. Quaker ethics is taken as an example of behavioural ethics. The article concludes that through the conceptual grounding of behavioural ethics in the economic approach, theoretical and practical limitations of behavioural ethics, as encountered in a modern context, can be relaxed. Probably only then can behavioural ethics still contribute to raising moral standards in interactions amongst the members (stakeholders) of a single firm, and equally, amongst (the stakeholders of) different firms. (shrink)

Lorenzo Sacconi's recent re-statement of his social contract account of business ethics is a major contribution to our understanding of the normative nature of CSR as the expression of a fair multi-party agreement supported by the economic rationality of each participant. However, at one crucial point in his theory, Sacconi introduces the concept of stakeholders' conformist preferences - their disposition to punish the firm if it defects from the agreement, refusing to abide by its own explicit CSR policies and norms. (...) We take issue with him over this concept: we show that the assumption of conformist preferences is a moral premise, and it arguably weakens the normativity of the theory as a whole. As an alternative, we propose an evolutionary game theoretic approach. We draw upon recent applications of evolutionary game theory to moral philosophy , and we use a computer simulation of the trust game. According to this approach, the failure of the logic of reputation, which is the problem conformist preferences were introduced to solve, is overcome through the dynamics of interaction. (shrink)

Since the publication of John Rawls'sA Theory of Justice, normative democratic theory has focused principally on three tasks: refining principles of justice, clarifying the nature of political justification, and exploring the public policies required to ensure a just distribution of education, health care, and other basic resources. Much less attention has been devoted to examining the political institutions and social arrangements that might plausibly implement reasonable political principles. Moreover, the amount of attention paid to issues of organizational and institutional implementation (...) has varied sharply across the different species of normative theory. Neoliberal theorists, concerned chiefly with protecting liberty by taming power, and essentially hostile to the affirmative state, have been far more sensitive to such issues than egalitarian-democratic theorists, who simultaneously embrace classically liberal concerns with choice, egalitarian concerns with the distribution of resources, and a republican emphasis on the values of citizen participation and public debate. Neglect of how such values might be implemented has deepened the vulnerability of egalitarian-democratic views to the charge of being unrealistic: “good in theory but not so good in practice.”. (shrink)

This commentary aims to discuss the article “Ordo-responsibility in the Sharing Economy: A Social Contracts Perspective” from a sympathetic viewpoint toward its implementation of a constitutional contractarian approach to business ethics and due consideration of digital platforms as institutions resulting from a social contract. Nevertheless, the commentary also wants to criticize the article’s interpretation of constitutional contractarian theory and institutional reconstruction of the phenomenon, and thus even the governance structure it is proposed for sharing platforms. The commentary presents another understanding (...) of constitutional contractarianism, referring to both the ex ante agreement and the ex post compliance problem. Moreover, it reframes the history of the evolutionary process of institutions’ selection within the domain of the sharing economy consistently with the idea that the Internet should be framed as a common pool resource. In this way, the commentary suggests an alternative governance structure for sharing platforms, that is, platform cooperatives. (shrink)