Despite growing interest in workplace democracy, the question whether nonworker stakeholders, like suppliers and local communities, warrant inclusion in the governance of democratic companies, as workers do, has been largely neglected. We inspect this question by leaning on the boundary problem in democratic theory. We first argue that the question of who warrants inclusion in democratic workplaces is best addressed by examining why workplace democracy is warranted in the first place, and offer a twofold normative benchmark—addressing objectionable corporate power and (...) upholding efficiency—to assess the principles of democratic inclusion on offer. Against this benchmark, we next argue that the All-Affected Principle is unfit due to its over- and underinclusive extensional results, and that the All-Subjected Principle, whose variants we examine alongside their extensional results, holds more promise when coupled with independent considerations of justice or a constrained variant of the All-Affected Principle. These combinations need not entirely preclude, but speak against, nonworker stakeholder inclusion. (shrink)

Many nongovernmental forms of business regulation aim at reducing ethical violations in commerce. We argue that such nongovernmental ethics standards, while often laudable, raise their own ethical challenges. In particular, when such standards place burdens upon vulnerable market participants (often, though not always, SMEs), they do so without the backing of traditional legitimate political authority. We argue that this constitutes a structural analogy to wars of humanitarian intervention. Moreover, we show that, while some harms imposed by such standards are desirable, (...) others are best thought of as a form of collateral damage. We thus look at the well-developed literature on just war theory for inspiration and find that the principles of jus ad bellum and jus in bello contain many insights that can be fruitfully adapted to the case of nongovernmental standard-setting. Consequently, we propose the Ius ad Normam—a set of principles that should guide would-be standard-setters in assessing whether imposing those burdens is ethically justifiable in particular cases. We also discuss how powerful multinational businesses often act simultaneously as standard-takers and standard-setters and explore the normative implications of this dual role. (shrink)

Most business ethicists maintain that corporate actors are subject to a variety of moral obligations. However, there is a persistent and underappreciated concern that the competitive pressures of the market somehow provide corporate actors with a far-reaching excuse from meeting these obligations. Here, we assess this concern. Blending resources from the history of philosophy and strategic management, we demonstrate the assumptions required for and limits of this excuse. Applying the idea of ‘the state of nature’ from Thomas Hobbes, we suggest (...) that corporate actors would be excused from duties if complying with them threatened their vital interests. We show how this excuse is not available for most individuals within firms; instead, it is an excuse perhaps available to firms themselves, but only given substantive assumptions about corporate personhood. For those willing to make these assumptions, we apply the competitive advantage construct to delimit the scope of this excuse. We suggest that firms are excused from fulfilling an obligation when complying leads to a competitive disadvantage, as this imperils the firm’s vital interests. After revealing why this excuse does not generalize, we conclude by considering when we should reform the market to avoid the legitimacy of this excuse. (shrink)

Shirking, the act of avoiding the demands of one’s job, is generally seen as unethical. Drawing on empirical evidence from the sociology of work, I develop a normative conception of shirking as a form of worker resistance against illegitimate managerial power. In doing so, I present a new approach to the political theory of the firm, which is more adversarial and agent-centered than available alternatives. It is more adversarial as it recognizes the political value of counterproductive and disruptive behavior in (...) capitalist firms. It is more agent-centered because it theorizes the firm from the perspective of workers, asking what pro tanto reasons they have to shirk. I show that shirking under the structural domination of capitalism has diagnostic, agential, and epistemic values. The paper contributes to the wider methodological ambition to tailor political theorizing to the positionality of social actors by shifting attention from the institutional design of the firm to the methods of worker resistance. (shrink)

A citizens’ movement in Berlin advocates for the expropriation of housing corporations and has won a significant majority in a popular referendum in September 2021. Building on this proposal, this paper develops a general account of expropriation as a measure for corporate reform and thereby contributes to the ongoing debate on the democratic accountability of business corporations. It argues that expropriation is a valuable tool for intervention in a dire situation in some economic sector to enable a re-structuring of the (...) governance of the assets in question. Compared with other tools available, expropriation is a more forward-looking, genuinely political measure that does not depend on the legal assignment of guilt but rather proceeds in a pragmatic and problem-oriented manner. It also allows us to reconsider in how far the market mechanism should be employed in the administration of assets. Objections from private property rights against expropriation fail as corporations generally are privileged, quasi-public institutions that can justifiably be subject to democratic interventions. Expropriation is thus an important addition to the arsenal of corporate reform proposals, especially for those concerned with a broad democratization of the corporation. (shrink)

Game theory involves deliberating about what to do in light of what other people are likely to do. One of the central frameworks of game theory is the prisoner’s dilemma, in which participants who make rational choices end up in suboptimal outcomes. Using the prisoner’s dilemma to model competition between firms sets the stage for a new and promising approach to business ethics: the market failures approach.

In July 2020, more than 1000 companies that advertise on social media platforms withdrew their business, citing failures of the platforms (especially Facebook) to address the proliferation of harmful content. The #StopHateForProfit movement invites reflection on an understudied topic: the ethics of boycotting by corporations. Under what conditions is corporate boycotting permissible, required, supererogatory, or forbidden? Although value-driven consumerism has generated significant recent discussion in applied ethics, that discussion has focused almost exclusively on the consumption choices of individuals. As this (...) article underscores, value-driven consumerism by business corporations complicates these issues and invites further examination. We propose principles for the ethics of boycotting by corporations, indicate how these principles relate to different CSR paradigms, and show how these insights can help assess recent instances of corporate boycotting. (shrink)

This article reviews and criticizes Joseph Heath’s market failures approach (MFA) to business ethics. Our criticism is organized into three sections. First, we argue that, even under the ideal assumptions of perfect competition, when markets generate Pareto-efficient distributions, Heath’s approach does not rule out significant harms. Second, we show that, under nonideal conditions, the MFA is either too demanding, if efficiency is to be attained, or not sufficiently demanding, if the goal of Pareto efficiency is abandoned. Finally, we argue that (...) Heath’s appeal to regulations and specific moral requirements as a remedy for market failures is unlikely to safeguard efficiency and exposes a number of general worries regarding the moral force of the MFA. We end this article with a constructive suggestion on how to adjust the MFA to avoid these problems while preserving its contractualist and Paretian spirit. (shrink)

This conceptual paper contributes to the critique of a body of literature that will be named ‘deliberative corporate governance’ by defending non-deliberative acts performed by stakeholders. It first argues that this literature introduces to the corporation a decision-making process where it does not belong, given the corporation's economic role. This leads to an ‘efficiency constraint’ on any attempt to justify deliberation – deliberative governance theorists must show that it is the most efficient and cost-effective way to address the issues that (...) concern them. A real case example where deliberation would have been counter-productive in that regard will show that this is not the case. Building on this example, the paper uses the theory of democratic agonism to argue that non-deliberative acts should be part of governance. A sketch of managerial duties vis-à-vis such acts is attempted as well. The paper does not seek to reject deliberative corporate governance entirely, but rather to defend the importance of non-deliberative practices in addressing its theoretical concern. It makes a conceptual contribution to corporate governance theory, from which it draws practical implications for stakeholders-oriented management. (shrink)

We evaluate the effectiveness of impact investing from the perspective of the market failures approach (MFA) to business ethics. Under the MFA, businesses are ethically obligated to contribute to market efficiency by mitigating market failures. The MFA ethics literature emphasizes a negative externality interpretation of market failures, with ethical practice as self-regulation. We argue that the MFA also obligates businesses, and investors, to produce positive externalities, a form of private provision of public goods. We develop a graphical MFA ethical framework (...) addressed to impact investing. The framework is based on impact projects’ dual financial and social returns. Dual returns trade-offs originate in market failures and increase with positive externalities. In practice, a key determinant of market failure and the size of returns trade-offs is the availability of intermediate public goods. This varies systematically across sectors and country-markets. We identify the market circumstances under which impact investing is feasible. We show how provision of positive externalities mitigates market failures. We show that the effectiveness of impact investing depends on the interaction of the determinants of feasibility and of the size of project trade-offs. We show how government supporting intervention, through blended finance vehicles, can improve impact investing effectiveness. Finally, we show that evidence of actual patterns of impact investing across sectors and countries supports our analysis. (shrink)

Politics, Philosophy & Economics, Volume 21, Issue 2, Page 190-227, May 2022. There is a sense of fairness that is distinctive of markets. This is fairness among economic competitors, competitive fairness. We regularly make judgments of competitive fairness about market participants, public policies and institutions. However, it is not clear to what these judgments refer, or what moral significance they have. This paper offers a rational reconstruction of competitive fairness in terms of non-domination. It first identifies competitive fairness as a (...) distinctive claim, advanced within markets in turn characterized as antagonistic, instrumental and procedural. It distinguishes competitive fairness from a number of familiar ideals with which it might be confused: legitimate expectation, equality of opportunity, sporting fairness and economic efficiency. While many exponents likely assume competitive fairness can be explained in terms of one of these ideals, in each case there are significant objections to doing so. Instead, the paper argues that the most promising justification of competitive fairness is under the republican ideal of non-domination, which can reconstruct many of the intuitive judgments of competitive fairness that we make in particular cases. However, it concludes, this explanation makes it difficult for exponents to continue to emphasize competitive fairness, given diverse other risks of domination, and to other values, in markets. (shrink)

Business, management, and business ethics literature pay little attention to the topic of AI robots. The broad spectrum of potential ethical issues pertains to using driverless cars, AI robots in care homes, and in the military, such as Lethal Autonomous Weapon Systems. However, there is a scarcity of in-depth theoretical, methodological, or empirical studies that address these ethical issues, for instance, the impact of morality and where accountability resides in AI robots’ use. To address this dearth, this study offers a (...) conceptual framework that interpretively develops the ethical implications of AI robot applications, drawing on descriptive and normative ethical theory. The new framework elaborates on how the locus of morality and moral intensity combine within context-specific AI robot applications, and how this might influence accountability thinking. Our theorization indicates that in situations of escalating AI agency and situational moral intensity, accountability is widely dispersed between actors and institutions. ‘Accountability clusters’ are outlined to illustrate interrelationships between the locus of morality, moral intensity, and accountability and how these invoke different categorical responses: illegal, immoral, permissible, and supererogatory pertaining to using AI robots. These enable discussion of the ethical implications of using AI robots, and associated accountability challenges for a constellation of actors—from designer, individual/organizational users to the normative and regulative approaches of industrial/governmental bodies and intergovernmental regimes. (shrink)

This paper clarifies the usage of Albert Hirschman’s categories of market behaviour as of exit and voice in debates about workplace democracy by taking seriously his critique of the neoclassical analysis of competition. Pro-market liberals are generally hostile to the idea of workplace democracy and tend to favour top-down hierarchies as a way of organising labour. This hostility is generally inspired by the neoclassical analysis of exploitation and efficiency, which leads them to defend distributions achieved through exit-based competitive equilibria. Following (...) Hirschman, I propose to consider a hypothetical alternative: a democratic equilibrium, reached through the use of voice. I show that it would present the same appealing characteristics than its competitive counterpart while also accounting for the non-ideal conditions in which markets operate. Support for free markets should entail support for workplace democracy minimally understood as a strengthening of voice. (shrink)

One of the main contentions of the framework for Responsible Innovation (RI) is that social and ethical aspects have to be addressed by deliberative engagement with stakeholders and the wider public throughout the innovation process. The aim of this article is to reflect on the question to what extent is deliberative engagement suitable for conducting RI in business. We discuss several tensions that arise when this framework is applied in the business context. Further, we analyse the place of deliberative engagement (...) in several theories of business ethics. We conclude that there remains a tension between the ideal of RI and the way in which the competitive market operates. Hence, RI scholars should reflect more critically on changes that are required in the market in order to make RI possible, modify the ideal of deliberative engagement for RI in business, or attempt to strike a balance between these two responses. (shrink)

Business ethics is often understood as a variety of professional ethics, and thus distinct from ordinary morality in an important way. This article seeks to challenge two ways of defending this claim: first, from the nature of business practice, and second, from the contribution of business. The former argument fails because it undermines our ability to rule out a professional-ethics approach to a number of disreputable practices. The latter argument fails because the contribution of business is extrinsic to business in (...) a way that distinguishes from the established professions. The article ultimately suggests we adopt a more aspirational approach to business ethics, which retains an appeal even in the face of charges of anti-capitalist irrelevance. (shrink)

The aim of this paper is to take normative aspects of animal welfare in corporate practice from a blind spot into the spotlight, and thus connect the fields of business ethics and animal ethics. Using insights from business ethics and animal ethics, it argues that companies have a strong responsibility towards animals. Its rationale is that animals have a moral status, that moral actors have the moral obligation to take the interests of animals into account and thus, that as moral (...) actors, companies should take the interests of animals into account, more specifically their current and future welfare. Based on this corporate responsibility, categories of corporate impact on animals in terms of welfare and longevity are offered, including normative implications for each of them. The article concludes with managerial implications for several business sectors, including the most animal-consuming and animal-welfare-threatening industry: the food sector. Welfare issues are discussed, including the issue of killing for food production. (shrink)

Efficient markets are alienating if they inhibit us from recognizably caring about one another in our productive activities. I argue that efficient market behaviour is both exclusionary and fetishistic. As exclusionary, the efficient marketeer cannot manifest care alongside their market behaviour. As fetishistic, the efficient marketeer cannot manifest care in their market behaviour. The conjunction entails that efficient market behavior inhibits care. It doesn’t follow that efficient market behavior is vicious: individuals might justifiably commit to efficiency because doing so serves (...) the common good. But efficient market systems nevertheless have significant opportunity costs. The discussion yields a range of desiderata for non-alienated economic organization. (shrink)

Societies change over time. Chattel slavery and foot-binding have been abolished, democracy has become increasingly widespread, gay rights have become established in some countries, and the animal rights movement continues to gain momentum. Do these changes count as moral progress? Is there such a thing? If so, how should we understand it? These questions have been receiving increasing attention from philosophers, psychologists, biologists, and sociologists in recent decades. This survey provides a systematic account of recent developments in the understanding of (...) moral progress. We outline the concept of moral progress and describe the different types of moral progress identified in the literature. We review the normative criteria that have been used in judging whether various developments count as morally progressive or not. We discuss the prospects of moral progress in the face of challenges that claim that moral progress is not psychologically possible for human beings, and we explore the metaethical implications of moral progress. (shrink)

A standard framework for business ethics views the inquiry as an application of major ethical theories to specific issues in business. As these theories are largely presented as being principled, the exercise therefore becomes one of applying general principles to business situations. Many adopting this standard approach have thus resisted the implementation of the most prominent development in ethical theory in recent history: that of particularism. In this article, I argue that particularist thinking has much to offer to business ethics (...) and that standard resistance to particularist business ethics is based largely on misunderstandings. I do so by illustrating how the harbinger of particularism, W. D. Ross, countenances the practical wisdom of particularist ethics while being 1) invulnerable to standard objections to particularist business ethics and 2) compatible with the generalism of the standard approach. The Rossian business ethic is therefore one that the standard approach should be eager to include. (shrink)

Online retailers are using advances in data collection and computing technologies to “personalize” prices, i.e., offer goods for sale to shoppers at their reservation prices, or the highest price they are willing to pay. In this paper, I offer a criticism of this practice. I begin by putting online personalized pricing in context. It is not something entirely new, but rather a kind of price discrimination, a familiar pricing practice. I then offer a fairness-based argument against it. When an online (...) retailer personalizes prices, it competes unfairly for the social surplus created by a transaction. I defend this argument against objections, and offer a simple remedy: online retailers should either disclose that they are personalizing prices, or stop doing so. (shrink)

As information technologies have become synonymous with progress in modern society, several ethical concerns have surfaced about their societal implications. In the past few decades, information technologies have had a value-laden impact on social evolution. However, there is limited agreement on the responsibility of businesses and innovators concerning the ethical aspects of information technologies. There is a need to understand the role of business incentives and attitudes in driving technological progress and to understand how they steer the ethics discourse on (...) technology. In the information technology industry, there is an observed trivialization of ethics supported by a business driven and technology-centric approach to ethics. This trivialization rests on hardened beliefs, ideologies, and arguments which hint at reduced accountability for business and tend to individualize social responsibility. The phenomenon of ethics trivialization needs to be duly addressed to resolve the tensions between business needs and ethical concerns. This paper has identified from literature and conceptually analyzed the beliefs and ideologies underlying ethics trivialization which undermine ethics in business contexts. The paper has attempted to address the business concerns indicated by this phenomenon as well as highlight the weaknesses of its assumptions, rhetoric, and justifications. The aim of this paper is to systematically present the justifications in favor of and against the practice of ethics trivialization in the information technology domain, thereby highlighting the need to develop frameworks for assessment of ethical responsibility, accountability, and democratization of the value trade-offs involved in the design of technologies. (shrink)

The Market Failures Approach (MFA) is one of the leading theories in contemporary business ethics. It generates a list of ethical obligations for the managers of private firms that states that they should not create or exploit market failures because doing so reduces the efficiency of the economy. Recently the MFA has been criticised by Abraham Singer on the basis that it unjustifiably does not assign private managers obligations based on egalitarian values. Singer proposes an extension to the MFA, the (...) Justice Failures Approach (JFA), in which managers have duties to alleviate political, social, and distributive inequalities in addition to having obligations to not exploit market failures. In this paper I describe the MFA and JFA and situate them relative to each other. I then highlight a threefold distinction between different types of obligations that can be given to private managers in order to argue that a hybrid theory of business ethics, which I call the MFA +, can be generated by arguing that managers have obligations based on efficiency and duties based on equality to the extent that these latter obligations do not lead to efficiency losses. This argument suggests a novel theoretical option in business ethics, elucidates the issues that are at stake between the MFA and the JFA, and clarifies the costs and benefits of each theory. (shrink)

This paper explores the notion that business calls for an adversarial ethic, akin to that of sport. On this view, because of their competitive structure, both sport and business call for behaviours that are contrary to ‘ordinary morality’, and yet are ultimately justified because of the goods they facilitate. I develop three objections to this analogy. Firstly, there is an important qualitative difference between harms risked voluntarily and harms risked involuntarily. Secondly, the goods achieved by adversarial relationships in sport go (...) beyond the function of sport, i.e. to entertain audiences. Thirdly, the most plausible account of the athlete’s motivational development starts with their love of the sport, which can explain a commitment to the sporting ethics in a way that is not paralleled in business. I close by drawing attention to the ways in which an Aristotelian conception of business ethics may be able to accommodate these objections. (shrink)

Given his view that the modern world is ‘radically evil’, Adorno is an unlikely contributor to business ethics. Despite this, we argue that his work has a number of provocative implications for the field that warrant wider attention. Adorno regards our social world as damaged, unfree, and false and we draw on this critique to outline why the achievement of good work is so rare in contemporary society, focusing in particular on the ethical demands of roles and the ideological nature (...) of management’s self-understanding. Nevertheless, we show that Adorno’s comments on activities such as art and philosophy mean that it is possible to draw on his work in a way that contributes constructively to the conversation about good and meaningful work within business ethics. (shrink)

In this paper, I argue that businesses bear a pro tanto, negative, moral obligation to refuse to engage in economic relationships with representatives of intolerable ideologies. For example, restaurants should refuse to serve those displaying Nazi symbols. The crux of this argument is the claim that normal economic activity is not a morally neutral activity but rather an exercise of political power. When a business refuses to engage with someone because of their membership in some group, e.g., Black Americans, this (...) is a use of political power to signal that Black Americans are other. Conversely, when businesses engage with someone who is clearly representing an intolerable ideology, this is a use of political power that signals the acceptability of that ideology. Businesses should not do this. (shrink)

Equality is typically presumed to be an end of justice; however, in this chapter, we argue that it is better understood as a condition of justice. Our argument draws on the Just World Fallacy, the phenomenon of people mistakenly believing fortuitous patterns of reward or harm to be reflective of justice. This phenomenon can undermine relationships of equality even where differences in reward or harm are ostensibly deserved. If everyone received equal pay, then the propensity for people to defer to (...) the more successful or derogate the less successful would be diminished, and thus there would be greater scope for people to enter into the sorts of relationships of equal respect and regard that just communities require. (shrink)

Scholars who favor shareholder primacy usually claim either that managers should not fulfill corporate duties of beneficence or that, if they are required to fulfill them, they do so by going against their obligations to shareholders. Distinguishing between structurally different types of duties of beneficence and recognizing the full force of the normative demands imposed on managers reveal that this view needs to be qualified. Although it is correct to think that managers, when acting on behalf of shareholders, are not (...) required to fulfill wide duties of charity, they are nevertheless required to fulfill a variety of narrow duties of beneficence. What is more, the obligation to fulfill these duties arises precisely because they are acting on behalf of shareholders. As such, this article 1) refines our understanding of the duties of corporate beneficence and 2) helps to identify which duties of beneficence are imposed on managers when they are acting on behalf of shareholders. (shrink)

The “question of reasonable compliance” concerns how business firms should comply with morally reasonable laws that have been democratically enacted. This article argues that, out of respect for the governing authority of democratic citizens, firms should comply with the law in accordance with legislators’ normative expectations of compliance. It defends this view against arguments from the legal, economic and business ethics literatures that focus on the contentious nature of democracy and the competitive nature of the market. In response this article (...) argues that these adversarial features of democracy and capitalism do not limit the ability of democratic legislatures to set normative expectations of market actors, nor the duty of firms to comply with them. (shrink)

This paper defends an account of forgiveness that is sensitive to recent work on anger. Like others, we claim anger involves an appraisal, namely that someone has done something wrong. But, we add, anger has two further functions. First, anger communicates to the wrongdoer that her act has been appraised as wrong and demands she feel guilty. This function enables us to explain why apologies make it reasonable to forgo anger and forgive. Second, anger sanctions the wrongdoer for what she (...) has done. This function allows us to explore the moral status of forgiveness, including why forgiveness is typically elective. (shrink)

A tension between acting morally and acting rationally is apparent in analyses of moral emotions that ascribe an inherent subjectivity to ethical thinking, leading thence to irresolvable differences between rational agents. This paper offers an account of emotional worthiness that shows how, even if moral reasons fall short of philosophical criteria of rationality, we can still accord reasonableness to them and recognize that the deliberative weight of social norms is sufficient to address the moral limitations of strategic rationality.

A question facing nearly all private firms is whether they may keep employee pay secret. Many think it is obvious that firms are obligated to disclose a good deal of pay information once we properly appreciate the severity of pay discrimination in our economy and the autonomy-related interests that would be served by pay disclosure. This article puts forth a dissenting voice against the vast majority of recent commentary. It exploits a fissure between reasons we have to support certain coercive (...) regulations and reasons firms have to act in the absence of such regulation. While acknowledging that we may need transparency regulations for firms that fail to act morally, it argues that otherwise moral firms need not disclose pay on the surveyed grounds. (shrink)

ABSTRACT:Many companies engage in dialogue with nongovernmental organizations about societal issues. The question is what a regulative ideal for such dialogues should be. In the literature on corporate social responsibility, the Habermasian notion of communicative action is often presented as a regulative ideal for stakeholder dialogue, implying that actors should aim at consensus and set strategic considerations aside. In this article, we argue that in many cases, communicative action is not a suitable regulative ideal for dialogue between companies and NGOs. (...) We contend that there is often an adversarial element in the relation between companies and NGOs, and that an orientation towards consensus can be in tension with this adversarial relation. We develop an alternative approach to stakeholder dialogue called ‘agonistic deliberation.’ In this approach, conflict and strategic considerations play a legitimate and, up to a certain point, desirable role. (shrink)

Business ethics denial refers to one of two claims about moral motivation in a business context: that there is no need for it, or that it is impossible. Neither of these radical claims is endorsed by serious theorists in the academic fields that study business ethics. Nevertheless, public commentators, as well as university students, often make claims that seem to imply that they subscribe to some form of business ethics denial. This paper fills a gap by making explicit both the (...) various forms that business ethics denial can take, and the reasons why such views are ultimately implausible. The paper argues that this type of serious engagement with business ethics denial should be an important part of the job description for teachers of business ethics. (shrink)

As behavioural economics reveals, human decision-making deviates from neoclassical assumptions about human behaviour and people (often) fail to make the ‘right’ welfare-enhancing choice. The purpose of Sunstein and Thaler’s concept of ‘nudge’ is to improve individual welfare. To provide normative justification, they argue that the only relevant normative criterion is whether the individual is ‘better off as judged by themselves’, so that the direction in which people are to be nudged is defined by their own preferences. In light of behavioural (...) findings, however, people’s choices do not provide a sound basis for eliciting preferences and thus for assessing welfare. In this paper, I aim to challenge Sunstein and Thaler’s normative view, arguing that it is unreasonable to rely on conventional welfare economics, particularly considering the given context. Sunstein and Thaler depend on an approach of ‘preference purification’ which assumes informed, latent, and true preferences: As a result they face crucial methodological, epistemological, and practical objections, and cannot show how their approach enhances individual welfare. By building on the concepts of R. Sugden and C. Schubert, I develop an alternative normative framework for behavioural public policy, based on a contractualist perspective in which people may consent to collective choice rules in order to align future behaviour with values, to achieve particular goals or to preserve personal integrity. Individual consent and citizens’ participation and deliberation are crucial to this approach. This contractualist approach may provide a normative justification for behavioural public policy, and help to reconcile behavioural and normative economics. (shrink)

Moriarty argues that the Market Failures Approach to business ethics is inapplicable to “real world” problems, because it treats “market failure” as a failure to achieve Pareto efficiency. Depending upon how it is applied, Pareto efficiency is either trivially easy to satisfy or else so demanding that no real-world market could ever satisfy it. In this Commentary, I argue that Moriarty overstates these difficulties. The regulatory structure governing markets is best understood as an attempt to maximize the number of Pareto-improving (...) exchanges that occur. There is no reason to think business self-regulation cannot be guided by the same normative-conceptual framework. (shrink)

The view of business ethics that Christopher McMahon calls the “implicit morality of the market” and Joseph Heath calls the “market failures approach” has received a significant amount of recent attention. The idea of this view is that we can derive an ethics for market participants by thinking about the “point” of market activity, and asking what the world would have to be like for this point to be realized. While this view has been much-discussed, it is still not well-understood. (...) This paper seeks to remedy this problem. I begin by showing, against some recent commentators, that McMahon’s view and Heath’s view are fundamentally the same. Second, I clarify the sense of “efficiency” at work in the market failures approach. Finally, I argue that, in its current form, this view has little relevance to the real world of business. I conclude by sketching two ways of modifying it to fit our world. (shrink)

This article indicates a new direction for business ethics, which Lon Fuller pioneered with his work on social architecture. “Eunomics”, as Fuller called it, is “the theory or study of good order and workable arrangements”. How should we appraise the effects of the various ways of organizing and running a corporation, for example, with regard to the different structures and basic plans it can espouse? We should reject the “doctrine of the infinite pliability of social arrangements”, as some forms of (...) organization are unsound. They cannot be implemented in a proper fashion given the boundaries and the rules of the market established. A theory of business eunomics explains why each kind of legal process, including managerial direction, is better suited for the pursuit of a limited number of ends, and thus why we should not force a single institution to solve all ethical problems. (shrink)

Hussain claims that ethical consumers are subject to democratic requirements of morality, whereas ordinary price/quality consumers are exempt from these requirements. In this paper, we demonstrate that Hussain’s position is incoherent, does not follow from the arguments he offers for it, and entails a number of counterintuitive consequences.

This paper offers the concept of “justice failure,” as a counterpart to the familiar idea of market failure, in order to better understand managers’ ethical obligations. This paper takes the “market failures approach” to business ethics as its point of departure. The success of the MFA, I argue, lies in its close proximity with economic theory, particularly in the idea that, within a larger scheme of social cooperation, markets ought to pursue efficiency and leave the pursuit of equality to the (...) welfare state. As a result, the core ethical responsibility of business actors is to avoid profiting off of market failure. After reviewing this approach I challenge its emphasis on efficiency. I argue that just as we note the suboptimal efficiency of actual markets, we should also take seriously the suboptimal equality of actual welfare states. Taking this idea seriously results in a whole other set of ethical responsibilities for businesses to take into account; in addition to market imperfections and regulatory lacunae, managers should also avoid profiting from, and exacerbating, structural inequalities and injustices. I offer an outline of the kinds of injustices and inequalities that would have bearing on business ethics, and the kinds of ethical responsibilities that this approach suggests that business actors should take into account. (shrink)

According to the Market Failures Approach to business ethics, beyond-compliance duties can be derived by employing the same rationale and arguments that justify state regulation of economic conduct. Very roughly the idea is that managers have a duty to behave as if they were complying with an ideal regulatory regime ensuring Pareto-optimal market outcomes. Proponents of the approach argue that managers have a professional duty not to undermine the institutional setting that defines their role, namely the competitive market. This answer (...) is inadequate, however, for it is the hierarchical firm, rather than the competitive market, that defines the role of corporate managers and shapes their professional obligations. Thus, if the obligations that the market failures approach generates are to apply to managers, they must do so in an indirect way. I suggest that the obligations the market failures approach generates directly apply to shareholders. Managers, in turn, inherit these obligations as part of their duties as loyal agents. (shrink)

The aim of this paper is to provide some insights for a normative theory of corporate political activities. Such a theory aims to provide theoretical tools to investigate the legitimacy of corporate political involvement and allows us to determine which political activities and relations with government regulators are appropriate or inappropriate, permissible or impermissible, obligatory or forbidden for corporations. After having explored what I call the “normative presumption of legitimacy” of CPAs, this paper identifies three different plausible strategies to criticize (...) and object to corporate political involvement: the “egalitarian” strategy, the “corporate citizenship” strategy, and the “market failures” strategy. It constitutes an attempt to develop the market failures approach to reflect on CPAs. My main claim is that within such an account, the idea that corporations have a license to operate considerably limits their right to engage in political activities. (shrink)

This article presents the most important strands of the philosophical debate about markets. It offers some distinctions between the concept of markets and related concepts, as well as a brief outline of historical positions vis-à-vis markets. The main focus is on presenting the most common arguments for and against markets, and on analyzing the ways in which markets are related to other social institutions. In the concluding section questions about markets are connected to two related themes, methodological questions in economics (...) and the topics of business ethics and corporate social responsibility. (shrink)

Managers often have discretion in interpreting their ethical requirements, and they should seek democratic guidance in doing so. The undemocratic nature of managerial ethical discretion is shown to be a recurring problem in business ethics. Joseph Heath’s market failures approach (MFA) is introduced as a theory better positioned to deal with this problem than other views. However, due to epistemic uncertainty and conceptual indeterminacy, the MFA is shown to allow a much wider range of managerial discretion than initially appears. The (...) paper explores how this range can be narrowed down with democratic input, comparing models based on formal state institutions and on the informal public sphere. A case study from the pharmaceutical industry illustrates the merits of the informal public sphere approach. (shrink)

El trabajo y las relaciones laborales, centrales en la obra de Aristóteles, Adam Smith o Karl Marx, han vuelto a ocupar un lugar destacado en la filosofía reciente, con contribuciones relevantes en tres áreas. La primera es la naturaleza del trabajo: ¿qué rasgos debe tener una actividad para que sea trabajo y qué categoría ocupan actividades como los cuidados, las labores comunitarias o la generación de datos personales? La segunda es el valor del trabajo: ¿qué bienes, y bajo qué condiciones, (...) puede proveer el trabajo y qué relaciones objetables, como la explotación o la alienación, puede implicar (quizá hasta el punto, como algunos sostienen, de que una economía automatizada y sin trabajo sería preferible)? La tercera es la organización del trabajo: ¿qué principios deben gobernar la distribución y organización del trabajo, así como la respuesta a la desigualdad salarial, los abusos gerenciales o la dualización del mercado de trabajo? Esta entrada introduce las principales contribuciones, en especial desde la filosofía analítica, a estas tres áreas. -/- . (shrink)

This article provides an overview of the field of business ethics.

This article explores the cooperation of government and the private sector to tackle the ethical dimension of artificial intelligence. The argument draws on the institutionalist approach in philosophy and business ethics defending a ‘division of moral labor’ between governments and the private sector. The goal and main contribution of this article is to explain how this approach can provide ethical guidelines to the AI industry and to highlight the limits of self-regulation. In what follows, I discuss three institutionalist claims. First, (...) principles of AI ethics should be validated through legitimate democratic processes. Second, compliance with these principles should be secured in a stable way. Third, their implementation in practice should be as efficient as possible. If we accept these claims, there are good reasons to conclude that, in many cases, governments implementing hard regulation are in principle the best instruments to secure an ethical development of AI systems. Where adequate regulation exists, firms should respect the law. But when regulation does not yet exist, helping governments build adequate regulation should be businesses’ ethical priority, not self-regulation. (shrink)

In recent years, insurance companies have begun tracking their customers’ behaviors and price premiums accordingly. Based on the Market-Failures Approach as well as the Justice-Failures Approach, I provide an ethical analysis of the use of tracking technologies in the insurance industry. I focus on the use of telematics in car insurance and on the use of fitness tracking in life insurance. The use of tracking has some important benefits to policyholders and insurers alike: it reduces moral hazard and fraud, increases (...) actuarial fairness, and incentivizes safe behavior. These benefits, however, are outweighed by significant moral objections. First, the use of tracking technologies significantly undermines the fairness of the interaction between insurance companies and policyholders. Specifically, the use of tracking eliminates information asymmetries, but in such a way that favors insurers exclusively. Furthermore, tracked behaviors and the ability to choose to behave safely are highly correlated with other variables such as income. Therefore, tracking-based insurance relies on and exacerbates existing inequalities and injustices, which undermines the benefits that tracking is supposed to introduce. (shrink)

Joseph Heath argues that we should reject the idea of a ‘just wage’ because market prices are supposed to signal scarcities and thereby to promote overall efficiency, rather than reward contributions. This argument overlooks the degree to which markets are institutionally, socially, and culturally embedded. Their outcomes are hardly ever ‘pure’ market outcomes, but the result of complex interactions of economic and other factors, including various forms of power. Instead of rejecting moral intuitions about wage justice as misguided, we can (...) often understand them as pointing towards questions about the embeddedness of markets, or lack thereof. At least in some cases, changes in the framework of markets can both increase efficiency and get us closer to conventional notions of fair wages, e.g. when gender discrimination is reduced. Thus, while an abstract notion of a ‘just wage’ remains problematic, we can and should recognize that some wages are unjust. (shrink)