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

According to the instrumentalism of Friedman and Machlup it is irrelevant whether the explanatory principles or “assumptions” of a theory satisfy any criterion of “plausibility,” “realism,” “credibility,” or “soundness.” In this view the main or only criterion for selecting theories is whether a theory yields empirically testable implications that turn out to be consistent with observations. All we should require or expect from a theory is that it is a useful instrument for the purpose of prediction. Considerations of the “efficiency” (...) of a theory for the purpose of ordering our experiences are permitted, but considerations of “plausibility” are not. “Explanatory assumptions” are not really explanatory in the sense that they claim to represent underlying causal processes in reality; they only serve to generate, by deduction, implications that are in accordance with as many observations as possible. (shrink)

This is a comprehensive anthology of works concerning the nature of economics as a science, including classic texts and essays exploring specific branches and schools of economics. Apart from the classics, most of the selections in the third edition are new, as are the introduction and bibliography. No other anthology spans the whole field and offers a comprehensive introduction to questions about economic methodology.

Most methodological writing on economics is by economists. Although the bulk is produced by lesser members of the profession, almost all leading economists have at one time or another tried their hand at methodological reflection. The results are usually poor. If one read only their methodology, one would have a hard time understanding how Milton Friedman or Paul Samuelson could possibly win Nobel Prizes. It thus is less surprising that the economics profession professes such scorn for philosophizing than that its (...) members spend so much of their time doing it.Methodological reflections on economics pose other puzzles, too. Although this literature is heavily influenced by philosophy—both current and, especially, out-dated—, it is cut off from philosophical discourse. This quasi-autonomy is puzzling, since this literature is concerned with questions that appear to be instances of, if not the same as the questions with which philosophers of science are concerned. (shrink)

In The Joyless Economy, Tibor Scitovsky proposes a model of human behavior that differs substantially from that of standard economic theory. Scitovsky begins with a basic distinction between “comfort” and “stimulation.” While stimulation is ultimately more satisfying and creative, we frequently fall for the bewitching attractions of comfort, which leads to impoverished lives. Scitovsky's analysis has far‐reaching implications not only for the idea of rationality, but for the concept of utility (by making it plural in nature) and, perhaps most importantly, (...) for the importance of freedom (including the freedom to change our preferences). (shrink)

The paper discusses some of the criticisms of contingent valuation (CV) and allied techniques for estimating the intensity of peoples' preferences for the environment. The weakness of orthodox utilitarian assumptions in economics concerning the commensurability of all items entering into peoples' choices is discussed. The concept of commensurability is explored as is the problem of rational choice between incommensurate alternatives. While the frequent claim that the environment has some unique moral intrinsic value is unsustainable, its preservation often raises ethical and (...) other motivations that are not commensurate with the values that people place on ordinary marketable goods. Nevertheless, CV is also claimed to have some advantages and it is concluded that little progress will be made in this area until both sides in the debate recognise what is valid in their opponents' arguments. (shrink)

Lakatos' MSRP is utilized to provide a response to Koertge's claim (in her ‘Does Social Science Really Need Metaphysics?’) that the heuristic significance of metaphysics has been vastly overrated. By outlining the hard cores and positive heuristics of the two major research programmes in economics (namely, the ‘orthodox’ and ‘Marxist’ research programmes), the paper demonstrates (in opposition to Koertge's claim) not only that the metaphysical statements in the respective hard cores are far from vague but also how these exert an (...) important regulative influence both on the theories and economic policy recommendations generated within the respective programmes. It also indicates how the adoption of the MSRP method of appraisal in economics would help to protect against the danger of entrenched metaphysical dogmatism with its implications not only for economic policy recommendations but also for moral and political recommendations. * We appreciate the assistance given by Professor N. Koertge, who provided us with translations of her articles, and the helpful comments of an anonymous referee. (shrink)