’Although the empirical and conceptual underpinnings of New Finance have been rigorously tested, its ethical underpinnings have not been explored.’These are seen to derive from the social remoteness of late twentieth century individualism, which needs to be countered by sensitivity to the social context of finance and to the developmental nature of ethical behaviour. The author is Fellow in Finance at Templeton College, Oxford.

This paper discusses the impacts of different formal and informal institutions upon the Regional Forest Programme of Southwest Finland. The divide between formal and informal institutions is a binary distinction: it is used as a discursive tool for identifying social structures and processes and for articulating their significance in development and environmental planning, valuation and decision-making. In the end part of the paper, there is a brief discussion of how normative and moral issues can be explicitly and more creatively integrated (...) into the practice of environmental policy. (shrink)

Companies offer ethics codes and training to increase employees’ ethical conduct. These programs can also enhance individual work attitudes because ethical organizations are typically valued. Socially responsible companies are likely viewed as ethical organizations and should therefore prompt similar employee job responses. Using survey information collected from 313 business professionals, this exploratory study proposed that perceived corporate social responsibility would mediate the positive relationships between ethics codes/training and job satisfaction. Results indicated that corporate social responsibility fully or partially mediated the (...) positive associations between four ethics program variables and individual job satisfaction, suggesting that companies might better manage employees’ ethical perceptions and work attitudes with multiple policies, an approach endorsed in the ethics literature. (shrink)

Some practical criteria for free-will are suggested where free-will is a matter of degree. It is argued that these are more appropriate than some extremely idealised conceptions. Thus although the paper takes lessons from philosophy it avoids idealistic approaches as irrelevant. A mechanism for allowing an agent to meet these criteria is suggested: that of facilitating the gradual emergence of free-will in the brain via an internal evolutionary process. This meets the requirement that not only must the choice of action (...) be free but also choice in the method of choice, and choice in the method of choice of the method of choice etc. This is directly analogous to the emergence of life from non-life. Such an emergence of indeterminism with respect to the conditions of the agent fits well with the `Machiavellian Intelligence Hypothesis' which posits that our intelligence evolved (at least partially) to enable us to deal with social complexity and modelling `arms races'. There is a clear evolutionary advantage in being internally coherent in seeking to fulfil ones goals and unpredictable by ones peers. To fully achieve this vision several other aspects of cognition are necessary: open-ended strategy development; the meta-evolution of the evolutionary process; the facility to anticipate the results of strategies; and the situating of this process in a society of competitive peers. Finally the requirement that reports of the deliberations that lead to actions need to be socially acceptable leads to the suggestion that the language that the strategies are developed within be subject to a normative process in parallel with the development of free-will. An appendix outlines a philosophical position in support of my position. (shrink)

James Baldwin wrote: "People who shut their eyes to reality simply invite their own destruction, and anyone who insists on remaining in a state of innocence long after that innocence is dead turns himself into a monster." When people impute meanings to events--such as the 2020 killing of George Floyd, the shooting of Jacob Blake, and subsequent upheavals--they do so with ideas that already make sense to them. And what makes most sense to people is typically due to others with (...) whom they share identities and experiences, and from whom they’ve inherited their basic intellectual scaffolding. But making sense of an event isn’t enough. We’re driven to mobilize action by convincing ourselves that our cause is morally or politically in the right. So people build on their stable-yet-evolving intellectual scaffolding and explanatory schemes to rationalize, justify, and sanctify their conduct. The easiest part of becoming what Baldwin called a moral monster is to build up these self-justifying rationalizations. The more complicated part is to construct a justifying consciousness that insures we’ll arrive safely at foregone conclusions with little risk of confronting others’ experiences in a way that might unsettle our equilibrium or sap our vehemence. In this way, people avoid facing realities that might upend their pretenses, so they are now ideally positioned to be, in Dewey’s words, “profoundly moral even in their immoralities.". (shrink)

ABSTRACTIn Robust Political Economy, Mark Pennington argues for a minimal state founded not on neoclassical economic principles but on a return to classical liberalism. Pennington makes his case on the basis of Hayek’s “knowledge” problem and public-choice theory’s “incentive” problem. While this is a welcome start, classical liberalism is a promising agenda for a new economics, and for the “reform of capitalism,” only if it is accompanied by an explicit rejection of Milton Friedman’s subordination of normative to positive economics, and (...) by a move beyond the traditional division of the economy into twin spheres to embrace a third element: the domestic sphere. (shrink)

What are economic exchanges? The received view has it that exchanges are mutual transfers of goods motivated by inverse valuations thereof. As a corollary, the standard approach treats exchanges of services as a subspecies of exchanges of goods. We raise two objections against this standard approach. First, it is incomplete, as it fails to take into account, among other things, the offers and acceptances that lie at the core of even the simplest cases of exchanges. Second, it ultimately fails to (...) generalize to exchanges of services, in which neither inverse preferences nor mutual transfers hold true. We propose an alternative definition of exchanges, which treats exchanges of goods as a special case of exchanges of services and which builds in offers and acceptances. According to this theory: (i) The valuations motivating exchanges are propositional and convergent rather than objectual and inverse; (ii) All exchanges of goods involve exchanges of services/actions, but not the reverse; (iii) Offers and acceptances, together with the contractual obligations and claims they bring about, lie at the heart of all cases of exchange. (shrink)

Within the Anglo-American world, economic liberalism is generally viewed as having only one progenitor—Adam Smith—and one offspring—neoliberalism. But it actually has two. The work of G. W. F. Hegel was also very influential on the development of economic liberalism, at least in the German-speaking world, and the most powerful contemporary instantiation of economic liberalism within that world is not neoliberlaism, but ordoliberalism, although this is generally unknown and certainly unacknowledged outside of Continental Europe. Accordingly, what I am going to be (...) doing in this piece is trying to bring ordoliberalism more directly into the light—I will argue that by comparing and contrasting the views of Smith and Hegel or at least between how Smith and Hegel tend to be currently (mis)understood, we can better understand both the roots and the nature of these two contemporary incarnations of economic liberalism, and the light this sheds, in turn, brings some interesting and important features of these two contemporary theories into view. From Smith, for example, neoliberals took the idea of the invisible hand, although I am going to argue that contemporary advocates of invisible hand theory have largely misconstrued or at the very least overstated the significance of this metaphor. From Hegel, in contrast, ordoliberals took the idea of the civil society, and I will argue that the civil society is a much better metaphor not only for Hegel's but also for Smith's views. Indeed, I will argue that ordoliberalism, not neoliberalism, is a better and more coherent instantiation of economic liberalism than neoliberalism could ever be. (shrink)

This study explored several proposed relationships among professional ethical standards, corporate social responsibility, and the perceived role of ethics and social responsibility. Data were collected from 313 business managers registered with a large professional research association with a mailed self-report questionnaire. Mediated regression analysis indicated that perceptions of corporate social responsibility partially mediated the positive relationship between perceived professional ethical standards and the believed importance of ethics and social responsibility. Perceptions of corporate social responsibility also fully mediated the negative relationship (...) between perceived professional ethical standards and the subordination of ethics and social responsibility. The results suggested that professions should develop ethical standards to encourage social responsibility, since these actions are associated with enhanced employee ethical attitudes. (shrink)

The first part of this book - consisting of chapters 2, 3 and 4 - is a philosophical exploration of the characteristics of an economics that intends to be relevant for the problem of sustainability. In chapter 2, 1 will analyse economic and political theories as conceptual constructs referring to the economic and political sphere respectively. I will argue that such conceptual constructs inevitably are value-laden and that, hence, different conceptual constructs of the same sphere can exist. I will argue, (...) moreover, that and why it is important to distinguish between the economic and the political sphere. I will derive the latter arguments from a confrontation between Buchanan's and Arendt's political theory.In chapter 3, 1 will discuss an economy as consisting of two dimensions, a symbolic or institutional one and an ecological one. Such interpretation will allow us to understand the ecological performance of an economy as the counterpart of its institutional organisation. I will further argue that, in order to get insights into the internal relationships between an economy and its ecological performance, we need insights into the institutional whole of an economy. And I will elaborate on what I mean by "an institutional whole". I will suggest that it is a matter of conceptually analysing different types of economic institutions and different hierarchies of institutions. Chapter 3 will thus offer us some substantive norms for an economics that aims at contributing successfully to the political objective of "sustainability".In chapter 4, 1 will derive four norms for the nature, rather than the content, of a politically successful economics. I will suggest that a politically successful economics should, to start with, be objective in the sense that it should aim at intersubjective consensus among economists. Objectivity as intersubjective consensus does, however, not imply neutrality. I will suggest, further, that economics should provide economic policy with insights, rather than instruments. This means that economics should aim at description and explanation, not at prescription and prediction. I will assert, finally, that economics should be rather impartial than partial. It should explain economic sources of political inequality and contribute to political freedom. Both Arendt's interpretation of politics as a deliberative democracy and Weber's and Neurath's philosophical reflections on the nature of the social sciences will function as the breeding ground for these norms.In the second part of this book, i.e., chapters 5, 6, 7 and 8, 1 will confront the norms developed concerning both the content and the nature of an ecologically successful economics with the writings of David Pearce and Daniel Bromley. Chapters 5 and 7 are a substantive reconstruction of Pearce's and Bromley's theoretical work respectively, Chapters 6 and 8 are an analysis of the nature of their economics. Chapters 5 and 7 will make clear to what extent their writings comply with the substantive norm 1 propose in chapter 3. Chapters 6 and 8 will illuminate to what extent their writings meet the four norms suggested , in chapter 4, for the nature of an ecologically successful economics.Part 1 and 11 will be closed by chapter 9, in which 1 will give an overview of the main conclusions of this research project. (shrink)

This paper shows how John R. Commons’ analysis of a firm’s goodwill value gives analytical support to Professor Amartya Sen’s contention (BEQ, 1993) that business ethics makes economic sense. A firm’s market value consists of the value of both tangible and intangible capital, including the goodwill value of ongoing customer relations. If a firm is to defend its goodwill value, it needs to have the protection of the courts and to pursue ethical practices. The courts defend fair competition by giving (...) protection from unethical competitors while the firm defends its reputation with honest dealings.By implication, firms which depend on ongoing customer relations will tend to engage in more ethical business practices than firms which do not. Even a firm which makes a mistake that compromises its product’s safety may reduce the loss of goodwill value over time by admitting the mistake early rather than hiding it.Also by implication, the transition from a command socialist economy to a market economy cannot be made instantaneously since trust, reputation, and these ongoing customer relations-key institutions of market economics-cannot be generated instantaneously. (shrink)

This paper proposes a description of the moral obligations of economic agents. It will show that a threefold division should be adopted to distinguish moral obligations applying to their interactions in the market, obligations applying to their interactions inside business firms and obligations applying to their interactions with agents outside the market. Competition might be permissible in the first case since markets are special patterns of social interactions (called adversarial schemes). They produce their benefits when agents try to satisfy exclusive (...) preferences at the expense of others. However, moral obligations inside the firm and moral obligations outside the market are of a different nature. This argument will be developed in the two first parts of this paper. In the third part, it will outline the relevant strengths of that account in relation with two popular views of economic agents’ moral obligations: the shareholder primacy view and the stakeholder theory. (shrink)

This paper shows how John R. Commons’ analysis of a firm’s goodwill value gives analytical support to Professor Amartya Sen’s contention (BEQ, 1993) that business ethics makes economic sense. A firm’s market value consists of the value of both tangible and intangible capital, including the goodwill value of ongoing customer relations. If a firm is to defend its goodwill value, it needs to have the protection of the courts and to pursue ethical practices. The courts defend fair competition by giving (...) protection from unethical competitors while the firm defends its reputation with honest dealings.By implication, firms which depend on ongoing customer relations will tend to engage in more ethical business practices than firms which do not. Even a firm which makes a mistake that compromises its product’s safety may reduce the loss of goodwill value over time by admitting the mistake early rather than hiding it.Also by implication, the transition from a command socialist economy to a market economy cannot be made instantaneously since trust, reputation, and these ongoing customer relations-key institutions of market economics-cannot be generated instantaneously. (shrink)

This paper seeks to examine the relationship and the interaction between institutions, policy and the labour market in the light of the ideas of the first generation of institutional economists, who, in contrast to neoclassicals, conceived of the economy as a nexus of institutions, underlining, therefore, the significant role of institutional and non-market factors in the functioning of an economic system. They also criticised those who define (economic) welfare only in terms of efficiency and satisfaction of consumer interests; institutionalists instead (...) focus on issues related to justice, human self-development and labourers' welfare. In addition, early institutionalists paid considerable attention to the institutional framework of the labour market. In particular, the first generation of institutional economists highlighted the importance of institutions and other non-market parameters in determining the level of wages and employment (e.g. the role of the bargaining power of workers and employers). Furthermore, they made substantial contributions towards the field of labour policy and they were pioneers in the formulation of economic and social policy. Specifically, various modern institutions and labour market policies, such as unemployment benefits, industrial training and active employment policies, were implemented in the US, during the first decades of the 20th century, after the recommendation of the institutional labour economists. Therefore, their ideas, besides being interesting from a historical point of view, may also be useful in today's analysis of workers' problems and the functioning of modern labour markets. (shrink)

Este artículo discute la idea de la economía colaborativa en términos conceptuales y analíticos señalando algunas de las dificultades que aparecen en su comprensión. Para ello, se analizan dos de sus interpretaciones más extendidas, en particular, la que le imputa un carácter emancipador. El artículo defiende que esta interpretación emancipadora de la economía colaborativa suele mostrar tres importantes limitaciones. La primera es el excesivo protagonismo que otorga a las comunidades colaborativas y a las relaciones paraigualitarias. La segunda es su modo (...) de entender la racionalidad humana y su relación con la actividad económica. La última es su perspectiva a-institucional sobre la naturaleza y el funcionamiento de los mercados. El artículo concluye sugiriendo que para que la economía colaborativa pueda desplegar su potencial emancipador, se requieren instituciones sociales y políticas que pongan a funcionar la colaboración en beneficio de todas y todos. (shrink)

Cet article associe trois approches issues de l’institutionnalisme historique : l’école historique allemande, l’institutionnalisme américain originel et la théorie de la régulation. Il en dégage les principes méthodologiques partagés et analyse leur application au processus d’élaboration théorique. Codes JEL : B15, B25, B40, B52, E02, Z13.

Les dynamiques industrielles du capitalisme sont liées aux transformations des structures organisationnelles de production. Ainsi, la firme verticalement intégrée à la Chandler s’est effacée au profit de firmes modernes désintégrées. Cette profonde transformation de l’environnement industriel, qui s’est manifestée dans les années 1980 et 1990, a conduit les firmes à développer de nouvelles stratégies de coopération inter-firmes et à faire émerger des formes de quasi-intégration verticale. L’objectif de cet article est d’analyser ces changements institutionnels à l’aune de la théorie économique. (...) L’article se focalise sur les travaux originaux de trois auteurs influents qui ont développé leur propre approche de la quasi-intégration dans la seconde moitié du xx e siècle : Williamson, Houssiaux et Blois. (shrink)

This article describes Chester Barnard, the author of The Functions of the Executive, one of the twentieth century’s most influential books on management and leadership. The book emphasizes competence, moral integrity, rational stewardship, professionalism, and a systems approach, and was written for posterity. Barnard emphasized the role of the manager as both a professional and as a steward of the corporation. His teachings drew on personal insights as a senior executive of AT&T, which saw good governance as the primary means (...) of winning public acceptance of its telecommunications monopoly. Barnard provided a conceptual scheme of the theory of organization based on the following structural concepts: the individual and bounded rationality, cooperation, formal organization, and informal organization. The principal dynamic concepts include communication, consent theory of authority, free will, the decision process, dynamic equilibrium and the inducement–contributions balance, and leadership, executive responsibility, and moral codes. (shrink)

Despite the growing interest in understanding the effects of income inequality on economic growth, the influence of entrepreneurship-related institutional constraints on the inequality–growth association remains less understood. Drawing on an institutional constraints perspective in the context of startup entry regulation and credit constraints, we propose that under increasing income inequality, ease of startup or access to credit from the financial sector is positively associated with per capita economic growth. In a sample of 92 countries, robust to alternate specifications, we find (...) support for our hypotheses. Our findings contribute to the debates about the income inequality–growth nexus and imply potential policy interventions in the form of lower startup regulations and domestic credit provision from the financial sector to enhance economic growth under increasing economic inequality. (shrink)

Recent interest in the alleged rationality and fatalism of Russian peasants illustrates persistent tendencies to objectify certain social actors—and to assign normative labels to their vexing behavior. Sometimes those labels are demeaning. I call attention to this unpleasant tendency, and ask why some social actors attract our analytical interest, while other social actors escape such scrutiny. This disparity is particularly interesting when the two social actors are engaged in a setting where extractive power is present yet unnoticed.

’Although the empirical and conceptual underpinnings of New Finance have been rigorously tested, its ethical underpinnings have not been explored.’These are seen to derive from the social remoteness of late twentieth century individualism, which needs to be countered by sensitivity to the social context of finance and to the developmental nature of ethical behaviour. The author is Fellow in Finance at Templeton College, Oxford.

Este artículo discute la llamada economía colaborativa para señalar, en primer y segundo lugar, algunas dificultades que aparecen (o pueden aparecer) a la hora de comprenderla tanto en términos analíticos como conceptuales. En tercer lugar, expone dos de las interpretaciones más extendidas actualmente para, en cuarto lugar, centrarse en aquella que atribuye a la economía colaborativa un carácter emancipador. En particular, se discuten tres importantes limitaciones a las que usualmente debe hacer frente dicha perspectiva: el excesivo protagonismo que otorga a (...) las comunidades colaborativas y al principio de paraigualdad; su modo de entender la racionalidad humana; y su visión a-institucional y meramente psicológica de la naturaleza y el funcionamiento de los mercados. El artículo concluye sugiriendo que, para lograr que la economía colaborativa despliegue su potencial emancipador, se requieren instituciones sociales y políticas que pongan a funcionar dicha colaboración en beneficio de todas y todos.This paper discusses the so-called collaborative economy, first and second, by pointing out some difficulties that appear (or can appear) in its understanding, both in conceptual and analytical terms. In the third section, two of its most currently widespread interpretations are analysed, while the fourth section focusses in the one that imputes to it an emancipatory character. In particular, three of this interpretation’s most usual boundaries are analysed: the excessive prominence that it confers to collaborative communities and to the principle of egalitarianism; its understanding of the human rationality; and its a-institutional and its mere psychologic approach to the nature and the functioning of markets. The paper concludes by suggesting that, in order to collaborative economy deploy its emancipatory potential, social and political institutions that turns collaboration in benefiting everyone are required. (shrink)

The academic debate why and how companies are dealing with sustainability is dominated by two main arguments—the profit-seeking and the legitimacy-seeking view. While the first argues that companies establish sustainability management measures if this helps to increase their economic success, others emphasize that companies predominantly react on societal pressure dealing with sustainability to secure legitimacy. Whereas both lines of argument have gained a lot of attention in academia, little is known about their relative importance in shaping corporate practice. This papers (...) aims to fill this gap with an empirical analysis of corporate practices of large companies in ten countries worldwide. To capture the organizations’ rationale in sustainability management practice, we systematically applied various measures related to actors and operational activities focusing on the companies’ intention to pursue sustainability management, the integration of sustainability management to the core business, and the actual implementation of related measures. Overall the findings indicate that seeking legitimacy dominates corporate sustainability management practices. (shrink)

The introduction of new energy technologies may lead to public resistance and contestation. It is often argued that this phenomenon is caused by an inadequate inclusion of relevant public values in the design of technology. In this paper we examine the applicability of the value sensitive design approach. While VSD was primarily introduced for incorporating values in technological design, our focus in this paper is expanded towards the design of the institutions surrounding these technologies, as well as the design of (...) stakeholder participation. One important methodological challenge of VSD is to identify the relevant values related to new technological developments. In this paper, we argue that the public debate can form a rich source from which to retrieve the values at stake. To demonstrate this, we have examined the arguments used in the public debate regarding the exploration and exploitation of shale gas in the Netherlands. We identified two important sets of the underlying values, namely substantive and procedural values. This paper concludes with two key findings. Firstly, contrary to what is often suggested in the literature, both proponents and opponents seem to endorse the same values. Secondly, contestation seems to arise in the precise operationalization of these values among the different stakeholders. In other words, contestation in the Dutch shale gas debate does not arise from inter-value conflict but rather from intra-value conflicts. This multi-interpretability should be incorporated in VSD processes. (shrink)

Presently, the social responsibility literature is replete with the diverse ways in which work organizations and the regulatory nation states in which they are domiciled can improve the quality of their workers’ lives. But do workers themselves become motivated to contribute (i.e., give back) to society when they experience a work life of better quality than their peers? Specifically, which sectors of society do such workers contribute to? Through a questionnaire that was administered to a cross section of workers in (...) the private sector of Nigeria, this study found out that quality of work life (QWL) correlates significantly and positively with workers’ motivation to contribute to society. However, workers were less motivated to contribute to Nigeria’s government sector that is globally known for corruption than making contributions to the piety and social infrastructural sectors. Results also revealed that both the paternalistic and consultative forms of social responsibility were positively related with QWL. These results imply that social responsibility should be seen as a veritable platform on which satisfied stakeholders of business organizations can reciprocally make their own contributions for the overall good of society. By virtue of stakeholders’ contributions, the benefits of corporate social responsibility can actually reverberate into other sectors of societal life (e.g., the piety sector) that were never thought of during the design phase of socially responsible programmes. Finally, the study’s findings give credence to Anil Sarin’s Contributory Theory of Existence which states that people who have once received help from a particular organ of society (e.g., educational system, health care system, etc.) will be motivated to contribute to that organ or other organs of society. (shrink)

Interfirm collaboration and trust are topics currently exciting research interest. The literature treats trust as a unitary concept, providing little understanding of those processes that create trust, or are employed by parties relying on trust. I suggest that two distinct forms of trust can be observed in economic exchanges: fragile trust and resilient trust. I define these kinds of trust, speculate on processes by which economic actors learn about them, and explore contexts in which they are likely to be relied (...) upon by economic actors. I conclude with a discussion of implications for practice and scholarship. (shrink)

Among the various institutional structures of an economy like the firm and the marketplace is one that is like no other. Science is unique. This uniqueness raises an important question: why does science exist? From an economic perspective, there are two potentially meaningful approaches to the existence of science. They both encompass institutional pluralism. A substitutes theory of comparative institutions presupposes the primacy of the commercial marketplace over firms—that firms substitute for the market when markets fail. This theory has not (...) been used to explain the existence of science. A complements theory postulates that many simultaneous institutional responses, including science, are necessary for creating an efficient and equitable economy. The economic function of science is to produce fundamental theoretical abstractions about our world. Scientific theories are public goods that would not likely be produced within the governance structures of commercial markets and firms. The aim is to complement but not supplant traditional philosophical answers that science exists to discover truth and knowledge. (shrink)