We examine the writings of Adam Smith and Milton Friedman regarding their interpretation and use of the concept of self-interest.We argue that neither Smith nor Friedman considers self-interest to be synonymous with selfishness and thus devoid of ethicalconsiderations. Rather, for both writers self-interest embodies an other-regarding aspect that requires individuals to moderate theiractions when others are adversely affected. The overriding virtue for Smith in governing individual actions is justice; for Friedman it isnon-coercion.

The aim of this paper is to discuss popular conceptions of business ethics and their relationship to the problem of racial injustice by way of reviewing Spike Lee’s (1989) _Do the Right Thing_. Taking place on one day in late 80’s Bedford-Stuyvesant, and set against a tense decade of racial conflict in New York City, Spike Lee’s masterpiece has deeply influenced American discourse on race, capturing many of the complex interpersonal dynamics that are both constitutive and consequence of American racial (...) hierarchies. Instead of focusing on shareholders and stakeholders, I argue that _Do The Right Thing_ suggests a more political understanding of business’s ethical obligations: a business’s ethical obligations don’t emanate from internal relations but from its social and political position. I conclude by discussing a more recent film, Steve McQueen’s (2020) _Mangrove_. Like _Do the Right Thing_, _Mangrove_ also focuses on a business that is at the center of an urban racial conflict, but which stands in a very different relationship to this tension, providing an alternative illustration of business ethics informed by political and social positioning. (shrink)

Significant research has found that corporations have a social responsibility beyond maximizing shareholders' value. This study examines the effect of high-profile corporate bankruptcies on perception of corporate social responsibility. Undergraduate and graduate business students rated the importance of corporate social responsibility on profitability, long-term success and short-term success, before and after high-profile bankruptcies. The results indicated that students in general perceived corporate social responsibility to be more important to profitability and long-term success of the firm and less important to short-term (...) success after media publicity of corporate scandals. Several demographic factors such as gender, age and college major played a role in this perception. These findings have important implications for business education, especially as it relates to corporate social responsibility. (shrink)

In recent years, the biopharmaceutical industry has seen an increase in the development of so-called orphan drugs for the treatment of rare and neglected diseases. This increase has been spurred on by legislation in the United States, Europe, and elsewhere designed to promote orphan drug development. In this article, we examine the drivers of corporate social responsibility (CSR) activities in orphan drug markets and the extent to which biopharmaceutical firms engage in these activities with a strategic orientation. The unique context (...) of orphan drugs constitutes a research opportunity to test the applicability of existing theoretical perspectives on CSR and strategic CSR. Using Schwartz and Carroll’s (Bus Ethics Q, 13(4):503–530, 2003) three-domain approach to CSR and the literature on strategic CSR as a theoretical background, we employ a combination of semi-structured interviews and a quantitative website content analysis to study practices of biopharmaceutical firms in the United States and European Union. Our findings show that both US- and EU-based companies engaged in orphan drugs development perceive their involvement as a responsible business activity beyond the economic dimension of CSR. However, for the majority of these companies their CSR activities do not qualify as strategic according to the criteria established in the literature. We also find significant differences between larger and smaller firms in their use of CSR. Based on these findings, we make several suggestions regarding orphan drug legislation and other measures that might help firms exploit strategic CSR benefits. (shrink)

Milton Friedman famously stated that the only social responsibility of business is to increase its profits, a position now known as the shareholder model of business. Subsequently, the stakeholder model, associated with Edward Freeman, has been widely seen as a heuristically stronger theory of the responsibilities of the firm to the society in which it is situated. Friedman’s position, nevertheless, has retained currency among many business thinkers. In this article, we argue that Friedman’s economic writings assume an economy in which (...) businesses operate under the protections of limited liability, which allows corporations to privatize their gains while externalizing their losses. By accepting limited liability, Friedman must also accept a view of business as embedded in social interdependency, which serves as the logical and moral foundation for corporate social responsibility (CSR). To achieve consistency with his economic principles, Friedman must either abandon limited liability or modify his doctrine on CSR and his related shareholder model of business. (shrink)

The objective of this paper is to discuss some of the foundational issues centering around the question of integrating education in human values with professional engineering education: its necessity and justification. The paper looks at the efforts in ‘tuning’ the technical education system in India to the national goals in the various phases of curriculum development. The contribution of the engineering profession in national development and India’s self-sufficiency is crucially linked with the institutionalization of expertise and the role of morality (...) and responsibility. This linkage can be created through a proper understanding of the social role of the profession—what motivates the professionals and what makes professional life meaningful. Value education facilitates the process of moral maturity and the development of a ‘holistic’ mindset. This paper deals with the need to create such a mindset, the human values associated with it and gives examples of efforts to impart such education through ‘action-oriented’ programmes introduced in some institutes of engineering in India. (shrink)

This research examines the relationships between education in business ethics, Reynolds’s (J Appl Psychol 93:1027–1041, 2008) “moral attentiveness” construct, or the extent to which individuals chronically perceive and reflect on morality and moral elements in their experiences, and Singhapakdi et al.’s (J Bus Ethics 15:1131–1140, 1996) measure of perceptions of the role of ethics and social responsibility (PRESOR). Education in business ethics was found to be positively associated with the two identified factors of moral attentiveness, “reflective” and “perceptual” moral attentiveness, (...) and with the PRESOR “stakeholder view” factor. Also, reflective moral attentiveness was found to act as a mediator in the relationship between education in business ethics and the PRESOR stakeholder view factor. Evidence of gender and social desirability bias effects was also found. The implications of these relationships and social cognitive theory for improved understanding of the mechanisms by which a variety of variables have their effects on PRESOR in business are discussed. (shrink)

Ian Maitland defends sweatshop labor on the grounds that “A wage or labor practice is ethically acceptable if it is freely chosen by informed workers” (he calls his view “the Classical Liberal Standard,” CLS). I present several examples of economic exchanges that are mutually beneficial and satisfy the requirements of the CLS, but, nonetheless, are morally wrong. Maitland’s arguments in defense of sweatshops are unsuccessful because they depend on the flawed “CLS.” My paper criticizes Maitland’s arguments in defense of sweatshops, (...) but I do not claim that his conclusions are false—I do not claim to have shown that the labor practices Maitland defends are morally wrong. I argue that some of the disagreements about sweatshops between Maitland and his critics depend on disagreements about the answers controversial questions in ethical theory. In the absence of definitive answers to those questions , there are no decisive arguments for or against Maitland’s view about sweatshops. (shrink)

This study examines the issues associated with the disinvestment of U.S. interests from South Africa that took place in the mid-80s from the perspective of three dominant moral theories: utility, rights, and justice. By examining the issues in light of these three theories, the paper attempts to establish a decision framework from which managers and investors can evaluate similar decisions they are facing around the world today. Similarly, the reading may prove useful to educators who incorporate discussions of ethical decision (...) making into the classroom.Training in business ethics too often takes a strictly utilitarian perspective, or worse, a relativistic one. This study attempts to illustrate how utilitarian theory and related rights and justice issues can he interwoven into the heuristics associated with the contemporary concepts of corporate social responsibility. (shrink)