In both the public and the business world, in academe as well as in practice, the ideas of Adam Smith are regarded as the bedrock of modern economics. When present economic conditions and management practices are criticised, Adam Smith is referred to by defenders and detractors of the current status quo alike. Smith, it is believed, defined the essential terms of reference of these debates, such as the rational pursuit of self-interest on part of the individual and the resultant optimal (...) allocation of goods in free markets thanks to the workings of an “invisible hand.” In this article, we question whether this standard view of Smith, the economist, is tenable. We provide an extensive review of the extant secondary literature from economists, business ethicists, and philosophers, comparing their assessments to crucial elements of Smith’s theoretical system. As a result, we show that Smith, far from being an advocate of a value-free or even value-averse conception of economic transactions, stood for a virtue-based and values-oriented model of business. Accordingly, we argue current management education and the pedagogy of business ethics ought to be changed, and certain strategic conclusions drawn for business practice. (shrink)

Jacob Viner introduced the term ‘sub-rational’ to characterize the faculties – human instinct, sentiment and intuition – that fall between animal instinct and full-blown reason. The Scots considered sympathy both an affective and a physiological link between mind and body, and by natural history, they traced the most foundational societal institutions – language and law, money and property – to a sub-rational origin. Their ‘social evolutionism’ anticipated Darwin's ‘dangerous idea’ that humans differ from the lower animals only in degree, not (...) in kind. Darwin had the ability to ‘trade places in the imagination’, as Adam Smith would say, with plants and animals, and ‘think’ as they do. The trend today is to ‘positivize,’ ‘behaviorize’ and otherwise reduce the sub-rational to the purely biological. My suggestion is that we trade places in the imagination with the Scottish moral scientists and Darwin, and try thinking as they did. (shrink)