The paper develops a responsibility-based account of professional ethics in banking. From this perspective, bankers have duties not only toward clients—the traditional focus of professional ethics—but also regarding the prevention of systemic harms to whole societies. When trying to fulfill these duties, bankers have to meet three challenges: epistemic challenges, motivational challenges, and a coordination challenge. These challenges can best be met by a combination of regulation and ethics that aligns responsibilities, recognition, and incentives and creates what Parsons has called (...) “integrated situations”. Professional associations play an important role for this purpose, especially as spaces in which peer recognition is earned. But financial incentives equally need to be brought in line, for example, through deferred bonuses or claw backs. Such measures can create a new culture of accountability in banking. (shrink)

Does the content of a physically dangerous job affect the moral permissibility of hiring for that job? To what extent may employers consider costs in choosing workplace safety measures? Drawing on Kantian ethical theory, this article defends two strong ethical standards of workplace safety. First, the content of a hazardous job does indeed affect the moral permissibility of offering it. Unless employees need hazard pay to meet basic needs, it is permissible to offer a dangerous job only if prospective employees (...) have a reason other than hazard pay to choose this job instead of safer alternatives. Second, employers typically cannot justify omitting expensive safety measures by paying employees more, even if employees prefer higher pay to greater safety. Employers offering dangerous jobs must meet these two standards to avoid treating their employees merely as means. (shrink)

According to an existing “environmental” narrative, the financial crisis of 2007-2009 was due in part to executive compensation packages in the financial services industry that incentivized excessive risk-taking. Also according to this narrative, those who have a duty to protect society – principally, government regulators, but also firms themselves – are open to blame for how executives were paid, and must take steps to change executive compensation. This narrative is important but incomplete. I offer a supplementary “agential” narrative. According to (...) this narrative, executives are open to blame for the financial crisis for taking socially excessive risks. Moreover, since executives can play a role in shaping their compensation, they have an obligation to ensure that it does not incentivize them to take such risks. (shrink)

While deliberation has traditionally played a central role in philosophical and behavioral accounts of ethical decision-making, several recent studies challenge the value of deliberation. These studies find that deliberative thinking, such as considering divergent views or different perspectives, leads to less ethical decisions. We observe, however, that these studies do not address normative deliberation, in which decision-makers consider or apply a normative standard. We predict that normative deliberation improves ethical decision-making. Across six experiments, we examine the effects of non-normative deliberation (...) and normative deliberation on ethical decision-making. We find that normative deliberation improves ethical decision-making and, in contrast to recent studies, no form of deliberation harms ethical decision-making. (shrink)

Recent corporate social initiatives (CSIs) have garnered criticisms from a wide range of audiences due to perceived inconsistencies. Some critics use the label “woke” when CSIs are perceived as inconsistent with the firm’s purpose. Other critics use the label “woke washing” when CSIs are perceived as inconsistent with the firm’s practices or values. I will argue that this derogatory use of woke is stigmatizing, leads to claims of hypocrisy, and can cause stakeholder backlash. I connect this process to our own (...) field by considering inconsistencies in our organizations and in our teaching that could garner similar criticisms. After describing the stigmatization process, I consider the moral implications of inconsistencies for CSIs and draw parallels to our field. I end by suggesting next steps for our field in response to the stigmatization of CSIs and to guard against the stigmatization of our own work. (shrink)

ABSTRACTBusiness actors often act in ways that may harm other parties. While the law aims to restrict harmful behavior and to provide remedies, legal systems do not anticipate all contingencies and legal regulations are not always well-enforced. This article argues that the logic of double effect, which has been developed and deployed in other areas of practical ethics, can be useful in helping business actors decide whether or not to pursue potentially harmful activities in commonplace business activity. The article illustrates (...) how LDE helps to explain the exploitative nature of payday lending, the distinction between permissible and impermissible forms of market competition, and the potential wrong of imposing risk of harm on others. The article also addresses foundational debates about LDE itself. We offer the article as an illustration of the sort of “midlevel” theorizing that can address directly the needs of practitioners. (shrink)

Nach einem weit verbreiteten Urteil gibt Kant der Ökonomie in seinem Werk keinen nennenswerten Raum. Die vorliegende Studie widerlegt dies, indem sie Kants Äußerungen zu ökonomischen Themen systematisiert: zur Selbstständigkeit, zum Kaufmann, zum Handel, zum Geld, zur „Staatswirthschaft" sowie zum technischen Fortschritt. Sie erschließt Kants Ökonomie aus der Ergänzung rechtlicher und ethischer Pflichten durch deren anthropologische Ausführungsbedingungen. Dabei geht sie aus von einem zeitgenössischen Verständnis der Ökonomie als Wissenschaft vom Wohlstand. Im deutschsprachigen Raum des 18. Jahrhunderts konkurrieren hier drei Paradigmen (...) miteinander: das aristotelische, das smithianische und das kameralistische. Sie identifizieren jeweils das Haus, den Markt oder den Staat als zentrale Handlungssphäre der Ökonomie. Die Studie kommt zu dem Schluss, dass Kants praktische Philosophie für Ergänzungen aus jeder dieser ökonomischen Handlungssphären offen ist, solange diese freiheitliche Prinzipien erfüllen; sie ist damit nicht, wie gelegentlich behauptet, auf eine einzige Wirtschaftsordnung festgelegt, etwa auf eine rein marktliberale. Relevant ist dies für die Kant-Forschung, für die Wirtschaftsphilosophie sowie für die Ideengeschichte. (shrink)

This research investigates the importance of trade-off salience in understanding how variations in consumers’ construal levels can influence moral judgments. Across five experiments, trade-offs are implied and explicitly made salient, and construal levels are manipulated by altering temporal distance and perceptual fluency, and by using a well-established cognitive method. Consistent with prior research, we demonstrate that higher construal levels can reduce anticipated unethical behavior, when trade-offs are not salient, by making higher-level moral values more prominent. When trade-offs are salient, however, (...) we reveal that unethical behavior is increased when construal levels are elevated by making desirability-related thoughts relatively more prominent, compared to feasibility-related thoughts. Tests of mediation provide support for the role of desirability- and feasibility-related thoughts. Together, our results provide insight into the opposing predictions made by construal level theory for ethical decision making by revealing how trade-off salience, often inherent in ethical dilemmas, systematically influences the effects of construal level on ethical decision making. (shrink)

Although much work has been done on Kant’s theory of moral agency, little explored is the possibility of a Kantian account of the moral agency of groups or collectives that comprise individual human beings. The aim of this paper is to offer a Kantian account of collective moral agency that can explain how organized collectives can perform moral actions and be held morally responsible for their actions. Drawing on Kant’s view that agents act by incorporating an incentive into their maxims, (...) it is argued that groups of agents can engage in practical deliberation in much the same way individual agents can, resulting in the formulation of a distinctive “group maxim” for which the group, as such, can be morally responsible. (shrink)

ABSTRACT:Many ethicists argue that contract theory offers the most promising strategy for regulating risks. I challenge the adequacy of the contractualist approach for evaluating the complicated, novel risks associated with some structured financial products, particularly focusing on risks to third parties. Structured financial products like collateralized debt obligations (CDOs) divide a pool of financial assets into risk “tranches” organized from least to most risky. Investors purchase various tranches based on their individual risk-and-return preferences. Whereas contract theory holds that investment risks (...) are ethically permitted (roughly) when everyone—including both parties directly involved in the investments and third parties—consents to them, structured financial products like CDOs show that even risks to which everyone consents are ethically problematic when they involve systemic risks of ruin. (shrink)