This article is about the relationship between business and ethics in academic research. The purpose of this investigation is to examine the status of the separation and the integration theses. In the course of this article, I defend the claim that neither separation nor integration is entirely accurate; indeed they are both potentially confusing to our audience. A strategy of reconciliation of normative and descriptive approaches is proposed. The reconciliation project does not entail synthesizing or dividing prescriptive and empirical approaches, (...) but rather respecting the identity of both inquiries, while recognizing the limitations they place on each other. The research agenda of the reconciliation project is discussed. (shrink)

Gender greatly impacts access to opportunities, potential, and success in corporate leadership roles. We begin with a general presentation of why such discussion is necessary for basic considerations of justice and fairness in gender equality and how the issues we raise must impact any ethical perspective on gender in the corporate workplace. We continue with a breakdown of the central categories affecting the success of women in corporate leadership roles. The first of these includes gender-influenced behavioral factors, such as the (...) requirements and expectations of gendered verbal and nonverbal communication styles as well as appearance. We move on to address the impact of family on corporate leadership opportunities and success, discussing the asymmetrical evaluation of an individual’s potential, authority, and competence based on gender stereotypes of familial obligations and expectations. Finally, we address how gender impacts access to networking and sponsorship opportunities and the long-term effects of systematic limitations on women’s inclusion in the upper echelons of corporate leadership. We conclude with a summary of the questions and issues raised by our discussion and direct individuals to consider how different ethical systems and moral requirements might influence their interpretations of gender and leadership in the corporate workplace. (shrink)

This paper explores the fundamental question of what ‘responsibility’ means to different sets of world views adopted implicitly by business students. The exploration adopts the stakeholder theory and three subsets of the Friedman mentality to explain how individuals may value sustainability initiatives. Subsequently, it explores whether it is better to flow with the dominant economic-driven world view as prescribed by the business school or to challenge it in order to cultivate business students with sustainability-driven values. The conclusion highlights implications for (...) business and management education, as well as the role of entrepreneurship to promote sustainability values. (shrink)

Palmer's defense of libertarianism as consequentialist runs afoul of his own failure to provide any consequentialist reasons for libertarian conclusions, and of his own defense of nonconsequentialist arguments for the intrinsic value of capitalism‐cum‐negative freedom. As suck, Palmer's article exemplifies the parasitic codependency of consequentialist and nonconsequentialist reasoning in libertarian thought. Sciabarra's defense of Ayn Rand's libertarianism is even more problematic, because in addition to the usual defects of libertarianism, Rand adds a commitment to ethical egoism that contradicts both her (...) concern for the consequences of capitalism and her commitment to the rights of everyone, not just herself. (shrink)

Abstract:The literature contains many recommendations, both explicit and implicit, that suggest how an ethics program ought to be designed. While we recognize the contributions of these works, we also note that these recommendations are typically based on either social scientific theory or data and as a result they tend to discount the moral aspects of ethics programs. To contrast and complement these approaches, we refer to a theory of the right to identify the characteristics of an effective ethics program. We (...) draw from Kant’s ethical theory to identify three guiding principles of a moral ethics program and then apply those principles to the specific components of ethics programs as discussed in the Federal Sentencing Guidelines. Doing so provides insights as to how an ethics program ought to be designed from a moral point of view and sparks discussion of the moral aspects of ethics programs. (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)

In recent times, representatives of American management science have been arguing increasingly for a functionalization of ethics to change economic thinking: what they are seeking is the systematic integration of ethics into the economic paradigm. Using the insights developed by Hirschman, I would like to show how one must first expose the rhetoric of those critics of change (referred to below as conservatives or reactionaries) in order then to implement that which is new (representatives of this approach are referred to (...) below as progressives). Such an ‹unmasking’ works particularly well when one can defuse the arguments of the reactionaries – which is precisely what one achieves by strategically integrating ethics into economics. In his work The Rhetoric of Reaction Hirschman examines three basic forms of reactionary thought: the perversity thesis, the futility thesis, and the jeopardy thesis. According to the perversity thesis, intended goals are transformed into their opposites. The futility thesis argues that the setting of goals is useless since history runs its own course independent of those goals. The jeopardy thesis claims to preserve what already exists since change might substantially endanger that which has already been achieved. The importance of Hirschman’s ideas for the strategic interplay between the academic disciplines can be seen quite clearly in the example of German business ethics. This will be displayed below with reference to Hirschman’s three theses. Finally, implications will be drawn for business ethics in general and for management theory in particular. (shrink)

In this paper I respond to separate criticisms by Bill Shaw (JBE, July 1988) and Richard Nunan (JBE, December 1988) of my paper A Critique of Milton Friedman's Essay The Social Responsibility of Business Is to Increase Its Profits (JBE, August 1986). Professors Shaw and Nunan identify several points where my argument could benefit from clarification and improvement. They also make valuable contributions to the discussion of the broad issue area of whether and to what extent business should exercise moral (...) initiative.My objectives are (1) to show, with the aid of examples (inspired by Shaw) and the addition of one point of correction (inspired by Nunan), that my disapproving critique of Friedman's famous argument remains sound, (2) to show that Professor Shaw's argument contains serious problems, and (3) to build on the base laid by my critics by developing important reasons why business should exercise moral initiative. (shrink)

Twice in the _Journal of Business Ethics_, Walter Block provides a libertarian argument that The Civil Rights Act of 1964 is unjust because it is a violation of a business’s property rights and therefore ought to be repealed. No libertarian reply to Block has ever been given, creating the mistaken impression that his argument is the true representation of libertarian theory with regards to civil rights. This paper focuses on Title II and argues that both Block, and this prevailing opinion (...) of libertarian theory, are wrong. There are different types of libertarian theory. Block’s theory of natural rights is one of them, but there is another strain of libertarian thought that embraces the common law, at least as it existed up until the late 1800’s. This paper explicates a libertarian argument, based on the common law, which supports and defends Title II of the 1964 Civil Rights Act. Specifically, the evolution of contracts via assumpsit arguments, found in Blackstone’s _Commentaries,_ endogenously and consistently gives rise to the obligation to serve all. Title II of the 1964 Civil Rights Act is consistent with this common law tradition on public accommodations. Libertarian arguments that accept the common law on contracts ought also to accept common law doctrine on public accommodations and, _perforce_, the justness of Title II. (shrink)

The theory of separation assumes, with provocation, that an organization cannot reconcile profits and social function. Organizations can reconcile these two, apparently contrasting, missions, by considering emotions, especially moral emotions, to create a genuine motivation for focusing on goals beyond simple economic earnings and protecting organizations or groups of people from dysfunctional attitudes and behaviors, as well as considering the important role of the stakeholder accountability. Using the PRISMA method, we created a review of records using keywords relating to a (...) socio-emotional value within organizations, with a particular focus on the last 20 years. We used the SCOPUS database and, after removing irrelevant records, we used the VOSviewer tool to create a cluster map of different areas in this topic. Some records cite the socio-emotional value that is related to organizational and employee suffering, while other articles consider it a positive factor that improves performance and prevents problems in organizations. (shrink)

PurposeThe set of stakeholders included in the social life cycle assessment guideline could create confusion as to the target of the assessment: individuals or society. This paper attempts to develop the epistemological foundations of S-LCA in social sciences. Its major discussion is who should be addressed in S-LCA: individuals or society as a whole. This article contributes to the definition of a social life cycle based on sociological perspectives.MethodsThis paper is a critical evaluation of well-being methodologies and sociological perspectives used (...) to analyze the effects of a change in a social system. The two perspectives, individualistic and holistic, have been evaluated based on four criteria: subjectivity, social values, possibility of aggregation of social data and rebound effects. We have examined different points of view in the sociologic discipline to determine which perspective would be more suitable. Insights have been taken from structural functionalist, symbolic interactionism, and conflict theories to answer the troubling debates identified in S-LCA: Can the life cycle defined for LCA be used in S-LCA? More specifically, does S-LCA include the same actors and timeline as LCA? Does aggregation of data of individuals convey the characteristics of a society?Results and discussionOrganizational or technical changes induce new cost and benefits in the social system. When focusing on the well-being of individuals, little emphasis is directed to the relations between people, and thus social costs and benefits are not valorized. The sociological perspectives that deal with social change seek to explain social phenomena based on the relations that are established and affected by a social phenomenon. The sociologic concept has brought insights to the definition of a social life cycle, the object of S-LCA.ConclusionsThis paper is an attempt to bring the attention of S-LCA practitioners to the concept of social change defined by sociologists. Whether society is considered as a sum of individuals or as an independent entity determines our approach as individualistic or holistic. This would obviously influence our perspective in the selection of stakeholders of the life cycle, the boundaries of the analysis, and the indicators to be assessed. We recognize the central social matter of a product system as its contribution to the overall order in a society. (shrink)

Emergent structural approaches to institutional complexity tend to inhibit the role of agency in addressing logic multiplicity scenarios. Prior studies of logic multiplicity have documented a diverse set of outcomes, ranging from domination through hybridization, and characterized by various levels of conflict. A new stream of research has emerged that seeks to explain this heterogeneity through the structural components of complexity. These studies tend to minimize the role of agency in institutional complexity scenarios, positing that outcome diversity, and the organization’s (...) ability to exert agency, can be accounted for by the interaction of exogenously determined parameters, such as centrality, compatibility, prioritization, and jurisdictional overlap. This article revisits the role of agency in these models, suggesting that agency is not only framed by, but may itself shape, structure. The article draws on a comparative case study in five Israeli nonprofit organizations, focusing on the introduction of the business logic through a strategic planning process, and the challenge that this represents for the legacy social logic. The case studies demonstrate that organizations regularly use a set of distinctive mechanisms to manipulate the structural components of complexity, and, in so doing, agentically regulate logic multiplicity outcomes. (shrink)

In the past few years, environmental activists and some academic studies of environmental political issues have portrayed environmental protection as a new social consensus. This view has some, though limited, capacity for explaining the controversial character of many environmental protection issues and the frequent losses that environmental activists experience in political struggles. In an effort to clarify this seeming conundrum, the author delineates the core of the societal consensus thesis’ best explanation for the controversial character of many environmental policy decisions. (...) This explanation is contrasted with explanation that draws on conflict among three coherent rival environmental perspectives in contemporary political life. These environmental views are integral, if frequently unrecognized, aspects of familiar general social perspectives distinguished by contrasting principles, values, and practical objectives. A strategy is designed to facilitate responsible environmental protection legislation in light of these three rival perspectives. (shrink)

Scientific progress has been understood as synonymous with the growth of knowledge and the advancement of humanity. In this brief survey, this concept is problematized both in rhetorical terms and within the neoliberal framework. Despite the sustained marketing of the scientific community and its funding agencies, the dangers associated with progress are explained and highlighted.

This paper examines the proposition that adopting a socially responsible, or philanthropic, management posture is not antithetic to the capitalist business model but rather can be seen as a sound approach to the development of long-term sustainability in business in a modern business environment, wherein a strand of corporate social responsibility is one core aspect of the composite utility function of the modern business. We suggest further that for many of the prominent/significant examples of the successful adoption of a policy (...) of informed benevolence in the management of employees that policy seems to be faith rooted – be that faith Christian, Buddhist, Jewish, Muslim or other. Indeed, even if one observed an organisation subject to an humanist or even atheistic based socially responsible management, one could see that as being rooted in that organisation’s ‘non-faith’ faith, or ethical bubble. Our argument also gives the lie to the proposition, in currency in some circles, that the term ‘business ethics’ is an oxymoron. To underpin the argument we cite examples (/set out mini-cases, or a mixture of these) from a range of faith based traditions including, Buddhism, the Quaker-Christian tradition, Judaism and Islam. (shrink)

Adam Smith rejected Mandeville's invisible-hand doctrine of 'private vices, publick benefits'. In The Theory of Moral Sentiments his model of the 'impartial spectator' is driven not by sympathy for other people, but by their approbation. The innate capacity for sympathy makes approbation credible. Approbation needs to be authenticated, and in Smith's model authentication relies on innate virtue, which is not realistic. An alternative model of 'regard' makes use of signalling and is more pragmatic. Modern versions of the invisible hand in (...) rational choice theory and neo- liberalism are shown to be radical departures from the ethical legacy of Enlightenment and utilitarian economics, and are not consistent with Adam Smith's own position. (shrink)

In the 1990s, the role of the chief executive officer (CEO) of major United States corporations underwent a profound transformation in which CEOs went from being bureaucrats or technocrats to shareholder partisans who acted more like proprietors or entrepreneurs. This transformation occurred in response to changes in the competitive environment of U.S. corporations and also to the agency theory argument that high levels of compensation by means of stock options helped to overcome the agency problem inherent in the separation of (...) ownership and control. Some critics charge that this new CEO role is objectionable for a variety of reasons, which may also be applicable to the current financial crisis in which CEO misconduct may have played a part. These objections are based largelyon a team production model of corporate governance, which is held by these critics to be superior to the standard agent-principal model. This article examines the objections offered by critics of the changed role of the CEO and argues that their negative assessment of this development and their use of the team production model to support their conclusions are not warranted. CEOs have changed from hired hands to co-owners, and this change may have contributed in some measure to the current financial crisis. However, in determining the morally preferable role of the CEO, care must be taken not to discard what is sound in the changed role. (shrink)

In this article, I defend a democratic form of the productivist welfare state. I argue that this form of the state can best cope, theoretically and practically, with the diversity of deeply morally pluralistic democratic societies for two reasons. First, the justification of this form of the state rests solely on general facts about human nature, basic human needs, and efficiency considerations in a world of moderately scarce resources. Second, this state does not aim to promote a specific view of (...) justice, but human flourishing more generally, expressed in terms of individual and collective productivity. The proposed democratic productivist welfare state supports its citizens up to the level that allows them to develop and exercise their talents and abilities without providing incentives for free riding. I argue that, under the specific empirical circumstances that I describe, in particular certain informational restrictions concerning the precise productive and destructive capacities of the members of society in practice and the soundness of the Aristotelian principle, this goal may best be achieved in practice by the introduction of an unconditional basic income at subsistence level, if society is sufficiently developed economically to provide such an income. On productivist grounds, such an unconditional subsistence income also addresses, pragmatically and partially, the problem of historical injustices against the weakest members of society and provides all group members with the means for democratic participation. (shrink)

An increasing number of large corporations find themselves caught between two seemingly contradictory goals: satisfying investors’ expectations for progressive earnings’ growth and the stakeholders’ growing demand for ethical conduct. There is an increasing realization across geographies concerning the growing relevance of resolving this issue. The present article is a tool kit for business organizations who want to become ethically fit. The article exhibits the dilemma faced by the corporate world regarding embracing ethics in business. It attempts to establish with the (...) help of some empirical findings that on a broader canvas ethical conduct is contributory towards the bottom line growth. It also suggests that to evaluate the performance of a business the frame of reference has to be changed. Further, it offers tangible suggestions as to what business corporations ought to do in order to get ethically fit. (shrink)

Although enterprise risk management (ERM) has many benefits for corporations, there has been virtually no discussion of the extent to which its practice may be said to constitute corporate social responsibility. This article presents a prima facie case for the convergence of the two and examines this case through a consideration of four possible objections or challenges. The conclusion of this article is a tempered optimism that ERM has the significant, but as yet untapped, potential to constitute socially responsible activity, (...) which, if realized, would enable Adam Smith's invisible hand of the marketplace to have an expanded sweep. (shrink)

As corporate managers interact with nonshareholder stakeholders, potential tradeoffs emerge and questions arise as to how these interactions impact shareholder value. We argue that this shareholder—stakeholder debate is an important issue within the overall corporate governance and corporate policy domain and examine one such stakeholder group - employees - by studying labor-friendly corporate practices. We find that announcements of labor-friendly policies are associated with positive abnormal stock returns. Labor-friendly firms also outperform otherwise similar firms, both in terms of long-run stock (...) market returns and operating results. In addition, we find that the probability and benefits of labor-friendliness increase with the demand for highly skilled labor. Our analysis of excess executive compensation suggests that top management derives no pecuniary benefits from labor-friendly practices. We interpret our results as consistent with a genuine concern for employees translating into higher productivity and profitability, which in turn facilitate value creation. It appears that the benefits of labor-friendly practices significantly outweigh the costs and that what is good for employees is good for shareholders. (shrink)

In this essay I discuss a powerful challenge to high-liberalism: the challenge presented by neoclassical liberals that the high-liberal assumptions and values imply that the full range of economic liberties are basic rights. If the claim is true, then the high-liberal road from ideals of democracy and democratic citizenship to left-liberal institutions is blocked. Indeed, in that case the high-liberal is committed to an institutional scheme more along the lines of laissez-faire capitalism than property-owning democracy. To present and discuss this (...) challenge, I let John Rawls represent the high-liberal argument that only a narrow range of economic liberties are basic rights and John Tomasi represent the neoclassical liberal argument that the full range of economic liberties are basic rights. I show that Rawls’s argument is inadequate, but also that Tomasi’s argument fails. I thus conclude that high-liberalism is in a precarious situation, but is not yet undone by the neoclassical liberal challenge. (shrink)

Abstract There has been a strong tendency in economic thought to try to take human wants, desires, and preferences as the basis for deciding how to act. This essay argues that ?needs? constitute a distinct category which cannot be reduced to preference. The reductive strategy is partly connected with a philosophical mistake about the relation between the subjective and the objective. The distinction between needs and wants must be central to any continuing form of human action, but it may also (...) not be understood in such a way as to posit some purely objective (perhaps biological) needs that can be specified independently of people's wishes and desires; nor can those desires be specified outside the context of an account of the various ways in which they arise out of, are embedded in, and are directed to ?objective? features of our world. (shrink)

The Australian Productivity Commission and a Joint Select Committee on Gambling Reform have recommended implementation of a mandatory pre-commitment system for electronic gambling. Organizations associated with the gambling industry have protested that such interventions reduce individual rights, and will cause a reduction in revenue which will cost jobs and reduce gaming venue support for local communities. This article is not concerned with the design details or the evidence base of the proposed scheme, but rather with the fundamental criticism that a (...) mandatory pre-commitment policy is an unacceptable interference with the liberty of the individual, and of organizations. It is argued that the concept of paternalism is a useful lens with which to study the interactions between business and society on this issue. It is contended that the benefits of a pre-commitment system to problem gamblers and society are socially and economically significant, and the cost to recreational gamblers, particularly the cost in terms of interference with the liberty of the individual, is minimal. Pre-commitment also requires gambling businesses to act in a more socially responsible manner. It is concluded that the proposed legislation constitutes a paternalistic intervention by government on the interaction between business and society, and that this is justified. (shrink)

The classical view of "rational man" as the unit of analysis for economic behavior and marketplace exchange has been changed by the late twentieth century with the help of behavioral economics that considers predictable irrationality as a normal mode of behavior. Instead of revising neoclassical economics to fit contemporary economic crises, it is recommended to follow Adam Smith's original concerns for the social setting of individual behavior and to treat economic crises with pragmatic flexibility rather than with dogmatic ideology.

In this article, I argue that conventional reasoning on corporate social responsibility (CSR) is based on the assumption of a liberal market economy in the context of a nation state. I build on the study of Scherer and Palazzo (Acad Manage Rev 32(4):1096-1120, 2007), developing a number of criteria to identify elements of liberal philosophy in the ongoing CSR debate. I discuss their occurrence in the CSR literature in detail and reflect on the implications, taking into account the emerging political (...) reading of the firm. I conclude that the apolitical framework in the mainstream CSR literature has to be overcome since it does not reflect recent changes in the socio-economic conditions for economic actors in a globalizing world. (shrink)

Anti-capitalist thinkers in the West have long argued that the expansion of markets creates new wants faster than it can satisfy them, and that consumption under capitalism is a form of addictive behavior. Recently, however, the relentless expansion of desire has come to be seen as a strength rather than a weakness of capitalist regimes. To understand this change socialists must consider whether there is a point to consumer spending that goes beyond satisfaction with what one gets. Freud's notion of (...) instinctual ambivalence illuminates the ways in which spending itself is a fusion of the desires to lose and to gain. This helps to explain how the socialist distinction between satisfying and addictive consumption misses the mark. Broadening this insight, we can see that Western thought about justice, originating in Judeo-Christian theology, conceals a fundamental ambivalence about both domination and gain by suggesting that inequality (beginning with that between God and man) is justified when the dominating party loses and the gainer submits. Ironically, however, the new post-utilitarian rationale for capitalism undermines this putative justification of social inequality in consumer-oriented capitalist societies by bringing our internal ambivalence about gain and dominance to the surface. This development creates an opportunity for a new beginning in Marxian social theory. The final sections of the essay suggest that social theory has been trapped in a debate over whether predators (and their human counterparts) kill in order to eat or eat in order to kill (Marx vs. Nietzsche). To break this trap we must shift the basis of social criticism from the metaphor of predation to the metaphor of parasitism. This changes the focus of critical analysis from unmasking the predator in every situation to identifying in every social structure the mechanisms of incorporation, mutual subversion, asymmetrical exchange, and surplus-creation (as distinct from equilibrium). If neither the desire for gain nor the desire for dominance are self-explanatory, then the Marxian critique of Nietzsche and the Nietzschean critique of Marxism both have valid points. The essay concludes with reflections about the importance of addressing the post-utilitarian rationale of capitalism with the same depth and comprehensiveness that we find in Marx's critique of its utilitarian rationale. (shrink)

The paper argues that there is no fundamental incompatibility between the use of vouchers and managed market mechanisms in the distribution of education und the principled aims of egalitarian educational policy. It takes those aims to be equality of opportunity, education for autonomy, and democratic education, and shows in each case how a voucher scheme could accommodate the aim. It explains why a judiciously designed voucher scheme may constitute a more politically feasible method of achieving central egalitarian goals than attempts (...) to improve public provision, but does not endorse the use of voucher schemes. (shrink)

In ways accentuated by the global coronavirus pandemic, corporations constitute vital instruments of the acts of beneficence needed by the people of the world to make progress in public health and increase collective and individual well-being. This article contributes to understanding the variety of moral forces that may lead corporations to commit acts of beneficence, including Friedman’s business case for corporate beneficence, the duty of beneficence as developed by business ethicists, and Dunfee’s social contract account of corporate obligation. Whereas Mejia (...) recently contributed to scholarship on corporate beneficence by expressly adopting shareholder primacy’s conception of corporate governance, this article embraces a stakeholder-oriented, managerialist picture of corporate governance. I extend the literature on beneficence by incorporating what I argue is the intuition underlying Dunfee’s contractualist formula of minimal contribution, namely that management’s duty to do good is awakened and unshackled to the extent management judges the corporation can afford to commit acts of beneficence, all stakeholders considered. The all-stakeholders-considered case for corporate beneficence compels management to act, I argue, when inaction would undermine the moral integrity of managers personally committed to promoting the well-being of humanity. (shrink)

This article sets out the contours of a Marxist hermeneutic approach to political economy. It begins by outlining how such a critique of political economy would function, with a particular emphasis...

The rise of liberal market economies, propagated by neoliberal free market thought, has created a vacant responsibility for public interests in the market order of society. This development has been critiqued by Catholic social teaching (CST), forcefully arguing that governments and businesses should be directed to the common good. In this debate, no attention has yet been given to the Reformational tradition and its principle of sphere sovereignty, which provides guidelines on the responsibilities of governments and companies for the public (...) interest of society. This article analyzes the differences and similarities between CST and the Reformational philosophy in their critiques of the neoliberal free market perspective of Hayek. We apply the three perspectives to the case of orphan drugs in the pharmaceutical industry and show that CST and the Reformational philosophy offer valuable insights in correction to Hayek’s views on the responsibilities of governments and companies for public health interests. (shrink)

Cet article propose une contribution théorique afin de penser la paix dans le champ de l’économie. Nous mettons en exergue que les conditions de pacification des relations socio-économiques demeurent en partie impensée par la discipline économique qui a pourtant consacré une part de ses analyses à la question de l’harmonie sociale. Codes JEL : A1, B13, B15, N01.

The market failures approach to business ethics argues that economic theory regarding the efficient workings of a market can generate normative prescriptions for managerial behaviour. It argues that actions that inhibit Pareto optimal solutions are immoral. However, the approach fails to identify goods that should be regulated or prohibited from the market, something common to the moral limits to markets approach to business ethics. There are, however, numerous assumptions underlying Paretian efficiency, including some about the preferences of market participants. Trade (...) in some goods violates some of these assumptions, and so these goods are morally suspect and can be understood to indicate that the market for these goods is not moral. This creates grounds sufficient for regulating, and possibly prohibiting, these goods. To help determine whether it is then necessary to regulate the goods, I propose a supplementary economic analysis to ascertain why an assumption regarding a particular preference is being violated. (shrink)

This article focuses on a specific political ethos of current developed societies, on what we call ‘self-service democracy’. The ethos essentially springs from the technologies, policies, structures and ideas promoting the ‘individualization trend’ in the provision of services as opposed to the allegedly passivizing system of the classical welfare state of the 1970s and the early 1980s. We review the conceptual history of self-service, its current core features, and the forms it has assumed in the political regimes of post-war Western (...) societies. The focus has moved from the services provided by the state to the activities and responsibility of individual citizens and organizations. Consumerist citizenship and personal responsibility, with the assistance of new information technologies, can open up novel channels for interaction and participation, but at the risk of rendering common political concerns into individual matters. The article investigates the political implications of this new emphasis on individualized, self-service-centred governance processes for democracy, and democratic participation and representation in particular. (shrink)

This article explores the motives underlying corporate responses to the COVID-19 pandemic. The analysis begins with Thomas Dunfee’s Statement of Minimum Moral Obligation, which specifies, more precisely than any other contribution to the business ethics canon, the level of corporate beneficence required during a pandemic. The analysis then turns to Milton Friedman’s neoliberal understanding of human nature, critically contrasting it with the notion of stoic virtue that informs the works of Adam Smith. Friedman contends that beneficence should play no role (...) in corporate settings. Smith, by contrast, emphasizes the need for prudence, beneficence and self-command in all human endeavours. The article then uses these competing frameworks to reflect on a published survey of 145 corporate responses to COVID-19. In many of these responses, the benefit to a non-financial stakeholder is clear, while the financial consequence to the firm remains nebulous. This supports the contention that during a pandemic, beneficence provides a more complete explanation of many corporate actions than the profit motive alone. The article contests Friedman’s Chicago School profit imperative and goes beyond Dunfee’s SMMO by endorsing the more full-throated embrace of beneficence and stoic virtue found in the works of Smith. (shrink)

In 1988, Colorado instituted a new regulatory system that was opposed by psychologists and social workers. We surveyed 306 psychotherapists about their attitudes regarding this system, which included profession-specific licensing boards and an omnibus board to handle grievances. Social workers and psychologists, members of more established professions, opposed creating an omnibus licensing board and favored the return of profession-specific grievance functions. Members of the newer professions and unlicensed psychotherapists were not as opposed to omnibus boards. All groups agreed in their (...) positive ratings of the performance of the Colorado grievance structure. These results are discussed in terms of "capture" theory, which postulates that professions capture governmental regulation and use it for their own interests. (shrink)

Based on the concept of shareholder primacy, many scholars have argued that it is more important for businesses to earn profits for their shareholders than to provide benefits to society at large. Corporate social responsibility is often regarded as an investment that comes at the expense of shareholders. In contrast, research analyzing the connections between the equity ownership structure of a company and its level of CSR engagement suggests that CSR offers benefits to shareholders that go beyond direct financial returns (...) from investments. This study provides a comprehensive review and systematic assessment of theoretical considerations and approaches regarding different forms of equity ownership and their relationships to CSR, and it discusses the relevant benefits and motivations of shareholders. The perceived value of these CSR benefits varies among different types of shareholders, as they assign unequal values to short-term financial or to rather long-term CSR benefits. Based on a literature sample of 146 publications, this review demonstrates central problems inherent in previous analyses. Given the ambiguous and partially contradictory findings of prior research, this study identifies potential moderating influences that help clarify empirical evidence. A contingency approach is suggested in future research, as this can help resolve the problem of contradictory empirical findings and theoretical arguments. (shrink)

The vast majority of indigenous communities are among the world’s poorest and are unlikely to be engaged in a thriving, mutually beneficial partnership with an MNC. While there are increasing studies on CSR initiatives in base of the pyramid communities, few—if any—feature the self-initiated stakeholder transition of an impoverished community. This paper examines the factors that motivated the stakeholder transformation process of an indigenous community, from its position as a non-stakeholder, one lacking in power and legitimacy, to the status of (...) being a primary stakeholder of the firm. We applied a constructivist grounded theory approach to longitudinal data to arrive at the conceptual framework. The findings presented are drawn from an in-depth case study of the Maasai, an indigenous community from East Africa. The findings point to the existence of entrepreneurial alertness that is instrumental in propelling the indigenous community to evolve from one stakeholder category to the next. Our research aims to propose a possible foundation for how communities deep in poverty can coalesce themselves to make their social needs salient to multinational organizations. (shrink)

In this review article, I survey books by three authors, each of which address the issues of debt and personal indebtedness. The authors are: Greta Krippner; David Graeber; and Maurizio Lazzarato. They argue, and I agree, that whilst money is broadly beneficial, its use in a capitalist context increases personal indebtedness, subjugates the individual, and reduces freedom. I briefly outline their positions, each of which make important contributions. However – contrary to Krippner’s lack of normative commitment, Graeber’s suggestion that we (...) need to forgive the debt and start again, or Lazzarato’s suggestion that we should to stop paying back debt and refuse to work – I suggest that we need to return to socialist principles, based on the premise that capitalism is no alternative. (shrink)

Despite the fact that Islam is one of the major religions, the frameworks of this faith are yet to be fully understood. As a consequence, it is being confused with activities contrary to its teachings. Islam has an elaborate treatment for almost every aspect of life including the affairs of business. Business is an acceptable and dignified occupation, which has to be conducted within the given frameworks. Islam encourages the creation, acquisition and consumption of wealth, and the fulfilling of certain (...) conditions in so doing. Wealth is held in trust as a gift from God. The terms of reference of this trust are to be complied with. Ethical principles do play a major role in shaping the behavior of a Muslim, in or out of business. In an era of globalization, the need for a better understanding of the premises of Islamic faith cannot be overemphasized. (shrink)

In this paper we will analyze the relationship between free market principles and ethics through an exploration of how too many business managers often approach the ideas of Adam Smith and Milton Friedman. In doing so, we aim to provide a thoughtful foundation for future discussions of how we ought to navigate this intersection. We briefly examine questions such as: What is the relationship between the “best” economy in terms of efficiency and the common good for society? Is pursuing one’s (...) individual economic advantage the same as promoting the general interest? As we analyze and discuss these questions, specifically in the context of Smith and Friedman, we also make some alternative normative assertions, grounded in social welfare, about adopting a broader societal perspective for the purpose of business. (shrink)

ABSTRACT:The major aim of this article is to show that John Rawls’s theory of justice cannot be applied effectively to questions of business ethics and corporate governance. I begin with a reading of Rawls that emphasizes both the critical and pragmatic nature of his theory. In the second section I look more closely at the notion of society’s “basic structure” and its place within Rawls’s theory. In the third section, I argue that “the corporation” cannot be understood as part of (...) this basic structure and is not, therefore, a subject of justice for Rawls or his interpreters. Finally, I show that Rawls’s inability to speak to the corporation is a weakness, regardless of one’s particular view on the corporation. I conclude by considering what Rawls’s theory helps us to understand about the problems involved in integrating corporate governance, business ethics, and political philosophy. (shrink)