Recalling several profound disagreements about business ethics as it is currently discussed in Western societies, I emphasize the need for business ethics as an academic discipline that constitutes the “backbone” for both teaching business ethics and improving business practice (section 1). Then I outline a conceptual framework of business ethics that promotes a “bottom-up” approach (section 2). This “problem-and action-oriented” conception appears to be fruitful in terms of both practical relevance and theoretical understanding. Finally, I argue for (section 3) the (...) relevance of discussing goals at all levels of human action (i.e., individuals, organizations, systems) as well as the indispensability of human rights, and propose Amartya Sen's “goal-rights-system” approach as a normative-ethical framework for business ethics that integrates these two fundamental aspects. (shrink)

“Utility,” in plain English, means usefulness. In Australia, a ute is a useful vehicle. Jeremy Bentham specialized the meaning to a particular sort of usefulness. “By utility,” he said, “is meant that property in any object, whereby it tends to produce benefit, advantage, pleasure, good, or happiness or to prevent the happening of mischief, pain, evil, or unhappiness to the party whose interest is considered”. The “principle of utility” is the principle that actions are to be judged by their usefulness (...) in this sense: their tendency to produce benefit, advantage, pleasure, good, or happiness. When John Stuart Mill spoke of the “perfectly just conception of Utility or Happiness, considered as the directive rule of human conduct,” he was using “Utility” as a short name for this principle. “The greatest happiness principle” was another name for it. People who subscribed to this principle came to be known as utilitarians. (shrink)

Wayne Sumner, in the first six chapters of his excellent book Welfare, Happiness and Ethics, argues for what he calls an authentic life satisfaction theory of welfare. Somewhat generally, Sumner's theory of welfare is a sophisticated subjective account that treats one's happiness of a certain sort, and in the right conditions, as enhancing one's welfare. In this essay, I critically explore Sumner's account of welfare. I argue that Sumner's arguments for his own account of welfare, when followed to their logical (...) conclusion, support a position which is slightly, but significantly, different from his own position. Additionally, I argue that Sumner's account of welfare has several counter-intuitive implications. I conclude that his account is seriously flawed. (shrink)

Neo-liberal economics is built upon the claim that the freedom to pursue one's self-interest and rational choice leads to economic growth and development. Against this background neo-liberal economists and policymakers endeavoured to universalise this claim, and insistently argue that appropriate economic policies produce the same results regardless of cultural values. Accordingly, developing countries are often advised to embrace the neo-liberal economic credo for them to escape from the trap of underdevelopment. However, the economic success of South East Asia on the (...) one hand and the failure of economic development in sub-Saharan Africa on the other, are increasingly proving that the 'economic' argument cannot be taken dogmatically: self-interest and rationality do not seem to be the sufficient explanations for economic development. One other avenue to be taken seriously is the link between cultural values and economic development. After viewing the principle of self-interest against its historico-cultural background, I consider this link in the African context, and argue that, although they cannot be taken as the sole factor, people's cultural beliefs and values are crucial for economic development. Economic growth and development need to be a substantiation of a people's beliefs and values. In African value system, this substantiation could lead to what one would call 'ubuntu economy' in which the state, the markets and the people are all agents, and not patients, in the process of economic growth and development. (shrink)

Contemporary Austrian‐school economists reject neoclassical welfare theory for being founded on the benchmark of a perfectly competitive general equilibrium, and instead favor a formal theory deemed consistent with the notions of radical subjectivism and disequilibrium analysis. Roy Cordato advances a bold free‐market benchmark by which to formally assess social welfare, economic efficiency, and externalities issues. Like all formalist, a priori theory, however, Cordato's reformulation cannot meet its own standards, being theoretically and empirically flawed, and perhaps ideologically suspect.

This note comments on Bruni and Sugden's interesting notion of fraternity among contract partners as joint commitment to cooperate for mutual benefit. I raise two points on their paper, both concerning the role of sacrifice. First I maintain that, differently from other social preferences, guilt aversion does not imply self-sacrifice. Secondly, I argue that aiming for mutual benefit does not prevent individuals from facing trade-offs between their own and their partners’ surplus, so the notion of sacrifice cannot be entirely eschewed. (...) To the contrary, reciprocal ‘sacrifices’ enhance cooperative intentions and help create feelings of friendliness. (shrink)

The most common argument against the use of rational choice models outside economics is that they make unrealistic assumptions about individual behavior. We argue that whether the falsity of assumptions matters in a given model depends on which factors are explanatorily relevant. Since the explanatory factors may vary from application to application, effective criticism of economic model building should be based on model-specific arguments showing how the result really depends on the false assumptions. However, some modeling results in imperialistic applications (...) are relatively robust with respect to unrealistic assumptions. Key Words: unrealistic assumptions • economics imperialism • rational choice • as if • robustness. (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.

Preferences play a role in well-being that is difficult to escape, but whatever authority one grants to preferences, their malleability seems to cause problems for any theory of well-being that employs them. Most importantly, preferences appear to display a status-quo bias: people come to prefer what they are likely rather than unlikely to get. I try to do two things here. The first is to provide a more precise characterization of the status-quo bias, how it functions, and how it infects (...) commonly accepted theories of well-being. The second is to give an alternative characterization of an agent's preferences that succeeds in avoiding the status-quo bias. (shrink)

The psychological condition of being happy is best understood as a matter of a person’s emotional condition. I elucidate the notion of an emotional condition by introducing two distinctions concerning affect, and argue that this “emotional state” view is probably superior on intuitive and substantive grounds to theories that identify happiness with pleasure or life satisfaction. Life satisfaction views, for example, appear to have deflationary consequences for happiness’ value. This would make happiness an unpromising candidate for the central element in (...) a theory of well-being, as it is in L. W. Sumner’s work. Yet on an emotional state conception, happiness may prove to be a key constituent of well-being. The emotional state view also makes happiness less vulnerable to common doubts about the importance of happiness, and indicates that mood states are more important for well-being than is generally recognized. (shrink)

Why is unpleasant pain bad for us? Evidently because of how it feels. This bit of commonsense is a challenge for well-being perfectionism, since pain doesn’t look anything like failure to fulfill human nature. Here, I sketch a new version of perfectionism that avoids this problem. To explain what is basically good for us, it appeals to the capacities whose functioning defines who we are, or our subjective nature, instead of human nature. I argue that these capacities have a telic (...) structure, so that practical reason, for example, constitutively aims at competently realizing valuable ends that are in harmony. According to telic perfectionism, we do well when such formal aims are realized and badly when they’re frustrated. Crucially, our subjective nature is defined not only by how we reason but also by how we feel. And valenced experience, too, has built-in directionality, according to the most plausible views about the nature of pleasure and pain. The phenomenal character of unpleasant pain is inseparable from its setting for us the end of eliminating itself. As long as we are in pain, then, the formal aim of our self-defining capacity for valenced experience is frustrated. For telic perfectionism, unpleasant pain is thus robustly bad for us, and the explanation of its badness makes essential reference to how it feels. (shrink)

How should we distinguish between ethical and unethical ways of pursuing profit in a market? The market failures approach (MFA) to business ethics purports to provide an answer to this question. I argue that it fails to do so. The source of this failure is the MFA’s reliance on Pareto efficiency as a core ethical principle. Many ethically “preferred” tactics for seeking profit cannot be justified by appeal to Pareto efficiency. One important reason for this is that Pareto efficiency, as (...) understood by the theory of welfare economics upon which the MFA relies, assumes a static conception of efficiency. This is a problem because many ethically “preferred” tactics can only be justified by appeal to dynamic efficiency considerations. I argue that, instead of Pareto efficiency, we should look to the value of wealth creation to understand the ethical constraints on how market actors may pursue profit. (shrink)

This paper addresses the recent rise of the use of alternative medicine in Western countries. It offers a novel explanation of that phenomenon in terms of cognitive and economic factors related to the free-market and patient-centric approach to medicine that is currently in place in those countries, in contrast to some alternative explanations of this phenomenon. Moreover, the paper addresses this troubling trend in terms of the serious harms associated with the use of alternative medical modalities. The explanatory theory defended (...) here is then predicated on the idea that an extreme patient-centric model of medical practice that treats largely ignorant patients as consumers of medical products and services endowed with an essentially unrestricted power of freedom to choose treatments predictably leads serious and avoidable harms. Some important moral and epistemological consequences of this model are then articulated and corrective measures are suggested. (shrink)

Philosophy Compass, Volume 17, Issue 2, February 2022.

The central question in this paper is whether anthropogenic mass extinction is ethically problematic above and beyond the sum of extinctions involved. The point of asking this question is not to determine the ethical status of anthropogenic massive extinction, which is clearly ethical horrendous. It is to see if - as is the case with interrogating the wrongness and badness of extinction - answering it illuminates something about the value of what is being lost and sharpens the considerations that substantiate (...) the view; and, if so, whether that might be useful in the context of evaluating mooted approaches to mitigating or adapting to it. The view defended is that massive extinction driven by undermining the conditions that make life forms possible for diverse and higher taxonomic groups constitutes a planetary shift, a phase change, different in kind from merely accelerated anthropogenic change. Justified partiality to the current assemblages of species and biomes is grounded in human relationships, dependencies, histories, and connections with this particular planetary state. This partiality warrants recognizing the loss of this state of the planet - these biospheric conditions, species assemblages, and biomes - as bad, above and beyond the individual harms and species losses involved. This account explains and substantiates why a mass extinction is worse than an equal number of extinctions spread over multiple systems or planets, all other things being equal. This account also provides reason not to embrace the anthropocene or embark on a synthetic age. (shrink)

This paper will show that if we take conventional ethics seriously, then there is no moral justification for business profits. To show this, we explore three conventional ethical theories, namely Christian ethics, Kantian ethics and Utilitarian ethics. Since they essentially reject self-interest, they also reject the essence of business: the profit motive. To illustrate the relationship, we will concretize how the anti-egoist perspective expresses itself in business and business ethics. In business, we look at what many businesses regard as proof (...) of their virtue. In business ethics, we look at what many business ethicists say about the relationship between morality and self-interest and, thus, the profit motive. Ultimately, we will argue that conventional ethics can, at most, only justify the means of business, but not the end of business. (shrink)

This paper analyzes the family business as an organizational entity and as a proprietary form useful to transmit personal values and company assets to the next generations. This paper aims to introduce the legal instruments in Italy to transfer family businesses and to evaluate how these are useful for ensuring not only the survival of the company in the market but also that family values and characteristics pass from one generation to the next maintaining a prosocial humanistic management perspective. The (...) legal status of the family business and the fact that most small- and medium-sized companies in Italy are not listed, which considerably affects disclosure obligations and makes it more challenging to get consistent and reliable information at affordable costs, has to date limited research on this model. In recent years, given their growth in size and market share, the strategic potential of family businesses was recognized by both academics and practitioners, giving rise to further study. A primary goal of a family business is to maintain its competitive advantage in the market and pass down its values in the succession line. Hence, one of the most important themes on which scholars focused has been how this process takes place to ensure continuity. This paper argues that the trust and the family pact are both valid legal instruments to this end, albeit with different advantages depending on the circumstances surrounding the succession. (shrink)

This study addresses a fundamental concern of research on economic ethics by examining the values of economics. While other studies have linked the study of economics to the adoption of rational economic behavior, this study goes one level deeper, investigating the values that underpin neoclassical economics and whether they are transmitted to students. We find that the study of economics is associated with an increase in hedonism and power values, a decrease self-direction value, and possibly a decrease in universalism value. (...) We measure value change among economics students using a quasi-experimental research design in accordance with the methodology of research on academic socialization. We discuss the practical implications of the internalization of economic values. (shrink)

It has been argued that some animals are moral subjects, that is, beings who are capable of behaving on the basis of moral motivations. In this paper, we do not challenge this claim. Instead, we presuppose its plausibility in order to explore what ethical consequences follow from it. Using the capabilities approach, we argue that beings who are moral subjects are entitled to enjoy positive opportunities for the flourishing of their moral capabilities, and that the thwarting of these capabilities entails (...) a harm that cannot be fully explained in terms of hedonistic welfare. We explore the implications of this idea for the assessment of current practices involving animals. (shrink)

In this dissertation, I argue that all extant theories of prudential value are either a) enumeratively deficient, in that they are unable to accommodate everything that, intuitively, is a basic constituent of prudential value, b) explanatorily deficient, in that they are at least sometimes unable to offer a plausible story about what makes a given thing prudentially valuable, or c) both. In response to the unsatisfactory state of the literature, I present my own account, the Disjunctive Hybrid Theory or DHT. (...) DHT answers to and remedies each of the above inadequacies in a way that no other approach can. This account has the following general structure:Disjunctive Hybrid Theory (DHT): Thing x is basically good for person P if and only if x is either a) cared about (sufficiently and in the right way) by P, b) a bearer of (the right kind of) attitude-independent value, or c) both.Although it follows other recent accounts in combining elements from objective and subjective theories, DHT is a hybrid theory of a quite new kind. This is because it denies both subjective necessity (the constraint that, if thing x is to be basically good for person P, P must have some pro-attitude toward x) and objective necessity (the constraint that, if thing x is to be basically good for person P, x must have some attitude-independent value). I argue that the rejection of both necessity claims is called for if we are to move beyond the enumerative and explanatory limitations of existing accounts.I begin by outlining the general structure of DHT. I then argue, against various recent authors, that desire-satisfactionism remains the most appealing subjectivist approach to prudential value, in that it is best able to capture the central subjectivist insight. This insight is that a person can confer prudential value upon things by caring about them (sufficiently and in the right way). The subjectivist strand of DHT will thus be a version of desire-satisfactionism, which must be interpreted in line with what I call the object, as opposed to the combo, view. I move on to further motivate and develop the second, objectivist strand of DHT. This part of the theory involves a commitment to robustly attitude-independent prudential goods. I close by addressing some puzzles for the theory, and considering some of its more specific applications. (shrink)

Big decisions in a person’s life often affect the preferences and standards of a good life which that person’s future self will develop after implementing her decision. This paper argues that in such cases the person might lack any reasons to choose one way rather than the other. Neither preference-based views nor happiness-based views of justified choice offer sufficient help here. The available options are not comparable in the relevant sense and there is no rational choice to make. Thus, ironically, (...) in many of a person’s most important decisions the idea of that person’s good seems to have no application. (shrink)

The ethics of bioculture deals with moral questions raised by the cultivation and farming of living things. P. W. Taylor believes that they have an inherent worth just like animals and wild plants. Therefore, judgment about how they should be treated cannot be limited to the principle of greater efficiency for the benefit of humans. Taylor developed a comprehensive theory that is founded on the symmetry between human and environmental ethics. He believes that every living thing is teleologically oriented and (...) a member of the earth's biotic community. A systemic and hologrammatic approach is the alternative to Taylor's ethics of bioculture. Each component of an ecosystem characterised by contingency, plays a role in co-evolution. Therefore, as moral agents, we must take historical responsibility for domesticating and employing other living things, and we should reconsider the emerging model of economic development and define criteria of ethical sustainability for bioculture companies. Such an ethics of bioculture can contribute to oriented decision-making to ensure that an increase in well-being for all living things is an economically and environmentally sustainable and political perspective. (shrink)

The author of the paper investigates Martha C. Nussbaum’s philosophical concept of education in which education is considered key to all human development. In the first part, the author focuses on some of the more interesting ideas in Nussbaum’s philosophy of education regarding the growth, development and improvement of the individual, community, society, nation, country and humankind. The second part is a critical exploration of the individual in education, looking specifically at the general development of humankind and the shaping of (...) abstract cosmopolitan world citizens, which are the main political goals of Nussbaum’s philosophy of education. (shrink)

The starting point of this paper is the need to promote a people-centred corporate social responsibility framework in a context where many human needs and rights remain unsatisfied and where businesses may have both a positive and a negative impact on the quality of life of human beings today and tomorrow and may even lead to irreversible damage. Our normative definition of CSR is consistent with the criteria established by the EU Commission in 2011. We conceive CSR as a responsibility (...) towards human development in two complementary ways: a holistic responsibility shared by companies together with other actors to safeguard humanity and a direct liability of each company for its impact on stakeholders' capabilities. We apply Nussbaum's list of central capabilities and concept of thresholds to specify the nature and extent of corporate responsibilities towards employees, subcontractors, investors, customers, and humanity as a whole. In addition, we leverage fieldwork in developing and developed countries to analyse the effect of business activities on human capabilities. We demonstrate that by quantifying the impact of businesses' activities on various dimensions of stakeholders' lives, and especially on the most vulnerable ones, these businesses can be held accountable for the negative externalities they produce. (shrink)

Joseph Heath defends competitive markets and conceptualizes business ethics with reference to Pareto efficiency, which he takes to be the “implicit morality of the market.” His justification for markets is that they generate Pareto efficient outcomes, meaning that markets optimally satisfy consumer preferences. And, for Heath, business ethics is the set of normative constraints—regulation and beyond-compliance norms—needed to preserve that outcome. The present paper accepts Heath’s claim that the economic justification for markets is ethical, in that satisfying consumer preferences is (...) a good. But, contra Heath, the ethical consideration at work is a consequentialist one; and acknowledging this consequentialism exposes limitations of Heath’s “market failures” approach to business ethics. We suggest two limitations, and we expect many will accept our argument that Heath’s conception of business ethics is too narrow. The present paper outlines two broader implications. First, acknowledging that the justification for markets is ethical eliminates the apparent—and false—conflict between purportedly amoral economic activity on one hand and ethical considerations on the other; instead, business ethics is a matter of weighing the consequentialist ethical benefit of economic activity and markets against other moral arguments/other ethical considerations. Second, Heath restricts business ethics to the constraints needed to protect the market’s ability to efficiently satisfy consumer preferences, constraints he calls “efficiency imperatives”; this restriction supports the widespread tendency to think that all social problems are economic; and, a business ethics so-conceived diminishes the perceived importance of noneconomic values—this attitude is dangerous. (shrink)

Critics of commodification often claim that the buying and selling of some good communicates disrespect or some other inappropriate attitude. Such semiotic critiques have been leveled against markets in sex, pornography, kidneys, surrogacy, blood, and many other things. Brennan and Jaworski (2015a) have recently argued that all such objections fail. They claim that the meaning of a market transaction is a highly contingent, socially constructed fact. If allowing a market for one of these goods can improve the supply, access or (...) quality of the good, then instead of banning the market on semiotic grounds, they urge that we should revise our semiotics. In this reply, I isolate a part of the meaning of a market transaction that is not socially constructed: our market exchanges always express preferences. I then show how cogent semiotic critiques of some markets can be constructed on the basis of this fact. (shrink)

A particularly important topic for Marxist theory is that of popular politics: the ways in which the underclasses of society express their interests and values through collective action. Classical Marxism postulates a fundamental conflict of interest among classes. It holds that exploited classes will come to an accurate assessment of their class interests, and will engage in appropriate collective actions to secure those interests. The result is a predicted variety of forms of underclass collective action: boycotts, rent strikes, tax and (...) food riots, rebellion, and revolution. Underclass members of society instigate and support such protests because it is in their material class interest to do so. It will emerge, however, that this account is too schematic to provide a basis for explanation of popular politics. The microfoundations approach to Marxist theory will prove useful in this context because it directs us to some of the resources needed to provide a more adequate account of popular collective action. (shrink)

In this article I shall undertake a preliminary exploration of the notion of second best. I shall follow a three-step strategy. First, I shall introduce some applications of the theorem of the second best in different fields of philosophy and social sciences. Secondly, I shall make several conceptual distinctions related to the theorem. I aim to show that there are certain theoretical results that are similar but not identical to the theorem of the second best, and that the notion of (...) second best is often used quite loosely. Finally, I shall try to shed some light on the question of how the theorem is description-sensitive. The overall aim of the paper is to pay attention to the generality of the problem of the second best and stress the importance of the theorem in political theory in particular. (shrink)

As the need for more diversity in business ethics is becoming more pressing in our global world, we provide an historical study of a Fair Trade (FT) movement, born in rural Mexico. We first focus on the basic assumptions of its founders, which include a worker–priest, Frans van der Hoff, a group of native Indians and local farmers who formed a cooperative, and an NGO, Max Havelaar. We then review both the originalities and challenges of the FT movement and its (...) potential contributions to the current theories and practices in business ethics. (shrink)

Child poverty is one of the biggest challenges of today, harming millions of children. In this book, it is investigated from a philosophical social justice perspective, primarily in the context of modern welfare states. Based on both normative theory (particularly the capability approach) and empirical evidence, the authors identify the injustices of child poverty, showing how it negatively affects the well-being of children as well as their whole life course. But child poverty is not 'given by nature'. It is avoidable (...) and there is certainly the moral duty to alleviate it. Therefore, Graf and Schweiger develop a normative theory of responsibilities, which clarifies the moral role of different agents in the poor child's environment: the family, the state and many others, that have so far been neglected in philosophical theories. They conclude their book by sketching how their theory can be extended to global child poverty and what it means to show equal respect and concern for every child - no matter where and in which context they were born. (shrink)

Many economists and philosophers assume that status quo bias is necessarily irrational. I argue that, in some cases, status quo bias is fully rational. I discuss the rationality of status quo bias on both subjective and objective theories of the rationality of preferences. I argue that subjective theories cannot plausibly condemn this bias as irrational. I then discuss one kind of objective theory, which holds that a conservative bias toward existing things of value is rational. This account can fruitfully explain (...) some compelling aspects of common sense morality, and it may justify status quo bias. (shrink)

A research forum published in Business & Society in 1995 (Issue 2) analyzed whether Fortune magazine's annual Reputation Survey (FRS) is viable as a corporate social performance (CSP) research database. We examine plausible alternative interpretations for a number of assertions and conclusions by the forum authors, including the premise for Brown and Perry's proposed transformation: that the Fortune data are confounded by the presence of a financial "halo," which biases ratings of nonfinancial attributes. Finally, we examine the appropriate roles of (...) the two primary corporate rating systems in the context of CSP. (shrink)

A group of economists has recently begun addressing questions at the intersection of ethics and economics. They are preparing new definitions of individual choice that combine self-interest and other-interest, new processes of interpersonal exchange that result in cooperation rather than conflict, and new measures of social well-being that include rights as well as outcomes. This article surveys that work, and suggests areas where conceptual inputs from business ethicists are clearly needed, and where multiple opportunities for interactive research are obviously present.

A quick look at what is happening in the corporate world makes it clear that the stakeholder idea is alive, well, and flourishing; and the question now is not “if ” but “how” stakeholder theory will meet the challenges of its success. Does stakeholder theory’s “arrival” mean continued dynamism, refinement, and relevance, or stasis? How will superior stakeholder theory continue to develop? In light of these and related questions, the authors of these essays conducted an ongoing dialogue on the current (...) state and future of stakeholder thinking. Beginning with a review of research and theory that has developed since the major stakeholder theorizing efforts of the 1990s, the authors individually offer their perspectives on the key issues relevant today to stakeholder thinking, and to suggest possible approaches that might lead toward and enable the continuing development of superior stakeholder theory. (shrink)

This paper argues that corporate governance reformers in Anglo-American jurisdictions should consider a different approach in their quest for better corporate governance. Traditionally, corporate governance reform has taken a structural approach, tightening the rules around the number of independent directors required on boards and committees and fine-tuning the definition of independence. However, such an approach has failed to achieve effective corporate governance. Moreover, this approach is informed by the arguably discredited assumption that individuals are rational self-interest utility maximizers. This conceptual (...) paper questions why corporate governance scholars and regulators remain uncritical of this assumption and suggests an approach to reform inspired by a different view of human nature. Indeed, incorporating an actor-based approach to reform into existing structures may better achieve effective corporate governance while addressing an unjustified adherence to this flawed assumption. (shrink)

This encyclopedia entry urges what it takes to be correctives to common (mis)understandings concerning the phenomenon of incommensurability and incomparability and briefly outlines some of their philosophical upshots.

A quick look at what is happening in the corporate world makes it clear that the stakeholder idea is alive, well, and flourishing; and the question now is not “if ” but “how” stakeholder theory will meet the challenges of its success. Does stakeholder theory’s “arrival” mean continued dynamism, refinement, and relevance, or stasis? How will superior stakeholder theory continue to develop? In light of these and related questions, the authors of these essays conducted an ongoing dialogue on the current (...) state and future of stakeholder thinking. Beginning with a review of research and theory that has developed since the major stakeholder theorizing efforts of the 1990s, the authors individually offer their perspectives on the key issues relevant today to stakeholder thinking, and to suggest possible approaches that might lead toward and enable the continuing development of superior stakeholder theory. (shrink)

Growing inequality and its implications for democratic polity suggest that corporate social responsibility has not proved itself in twenty-first century business, largely as it lacks clear criteria of demarcation for businesses to follow. Today the problem is viewed by many commentators as an ethical challenge to business itself. In response to this challenge, we begin by examining Porter and Kramer’s :64–77, 2011) call for a shift from a social responsibility to a shared value framework and the need to respond to (...) the problem of the ‘separation thesis’ between business and ethics :89–118, 1996; Harris and Freeman, Bus Ethics Q 18:541–548, 2008). We identify the eighteenth century economist and philosopher Adam Smith in his book The Theory of Moral Sentiments as a source for an ethical approach to business. Building on his central concept of ‘sympathy’, we introduce the idea of the Impartial Spectator Test, which we argue builds on traditional stakeholder perspectives and which provides an objective route to ethical criteria of demarcation. We conclude by assessing how this approach adds to the existing debate around social responsibility and shared value. (shrink)

The paper assesses the rationale, contributions, structure, and challenges of the field of development ethics. Processes of social and economic transformation involve great risks and costs and great opportunities for gain, but the benefits, costs, and risks are typically hugely unevenly and inequitably distributed, as is participation in specifying what they are and their relative importance. The ethics of development examines the benefits, costs, risks, formulations, participation, and options. The paper outlines a series of ways of characterizing such work, arguments (...) for and against its importance, and some of its major sources and contributions, especially from the interdisciplinary stream of work represented over several decades by Denis Goulet. Definitions are diverse since the work covers many different intersections of practice and theorizing, at multiple levels. The paper considers and replies to arguments against discussing development ethics: the claim that it involves only endless proliferation of different opinions, is an expensive luxury that undermines long-run development, is superfluous if one already works with the capability approach or the human rights tradition, or never has influence. Finally, it presents suggestions for how development ethics thinking can have increased impact, with reference to incorporation in policy analysis and planning methods, professional codes and training, and to its intellectual location and communication strategies. The field should articulate the methodological pragmatism which much of it has adopted, consistent with its required role as a practice-oriented interdisciplinary meeting ground. (shrink)

F. A. Hayek's realistic economic theory has been replaced by the formalistic use of equlibrium models that bear little resemblance to reality. These models are as serviceable to the right as to the left: they allow the economist either to condemn capitalism for failing to measure up to the model of perfect competition, or to praise capitalism as a utopia of perfect knowledge and rational expectations. Hayek, by contrast, used equilibrium to show that while capitalism is not perfect, it contains (...) error‐correcting institutions that bring it closer to perfection than is intuitively apparent. (shrink)

Abstract:Western business philosophy is rooted in the concepts of free enterprise, free markets, free choice. Yet freedom has its limits. Nature itself imposes constraints. In the state of nature each business must try to accomplish everything autonomously and ward off the attacks of rivals. These activities cost the business a great deal of freedom. The social contract emerges from such anarchy to increase the freedom available to all members of society. It does so by setting limits on individual freedom which (...) actually increase the overall amount of freedom available within the system. The Social Equation presents a relational model of this contract to show how overall freedom is increased in a state of society. In so doing, the obligations which society places on businesses to produce beneficial goods and services is developed. Next, the complex relationship between socially enforced constraints and social moral constraints is examined, showing that social moral constraints increase freedom more than do enforced constraints. This work concludes with proposed uses of the Social Equation as a heuristic for business ethics. (shrink)

Abstract:Organizational justice is a behavioral science concept that refers to the perception of fairness of the past treatment of the employees within an organization held by the employees of that organization. These subjective perceptions of fairness have been empirically shown to be related to 1) attitudinal changes in job satisfaction, organizational commitment and managerial trust beliefs; 2) behavioral changes in task performance activities and ancillary extra-task efforts to assist group members and improve group methods; 3) numerical changes in the quantity, (...) quality and efficiency of divisional outputs; and—though this is far more tentative—4) eventual changes in the competitive advantage and financial performance of the full organization. The authors propose that these constructs can be applied to all stakeholders, rather than just to the current employees of the firm, and that objective determinations of fairness by the managers can be related to subjective perceptions of fairness by the stakeholders that will result in the sequential series of attitudinal, behavioral and numerical changes that will lead to performance improvements. In short, the authors propose a normative stakeholder theory of the firm, based upon ethical principles, that will have testable descriptive hypotheses derived from the behavioral constructs. (shrink)

ABSTRACT:A fundamental question of global business ethics is, “When moral business conduct standards conflict across borders, whose standards should prevail?” Western scholarship and practice tends to depict home country standards as “higher” or more “restrictive” or “well-ordered” than the “lower” standards of emerging market actors. As much as the question appears culturally neutral, many who ask it do so with a culturally-specific lens shaped by prevailing conditions of Western economic strength. However, the dominant economic powers of the future are not (...) likely to be the same North American and Western European markets that have reigned supreme in the recent past. As corporations increasingly re-examine their political roles in global governance, we need also to re-examine the moral authority of global ethical norms so they do not merely reflect the dominant ideologies of the most economically powerful market actors. (shrink)

There are, broadly speaking, two ways to think about rationality, as defined in the following passage: ‘Reason’ for a long time meant the activity of understanding and assimilating the eternal ideas which were to function as goals for men. Today, on the contrary, it is not only the business but the essential work of reason to find means for the goals one adopts at any given time. To use what Horkheimer called objective reason, and what others have called expressive or (...) non–instrumental reason, is to reflect on one's goals, to attempt to determine what preferences one ought to hold. On the other hand, to use what Horkheimer called subjective reason is to ‘be concerned with means and ends, with the adequacy of procedures for purposes more or less taken for granted’, that is, to be instrumentally rational. This contrast between non-instrumental and instrumental reason is at the heart of many contemporary social and philosophical disputes. 1. (shrink)

Welfarism is the view that morality is centrally concerned with the welfare or well-being of individuals. The division between welfarist and non-welfarist approaches underlies many important disagreements in ethics, but welfarism is neither consistently defined nor well understood. I survey the philosophical work on welfarism, and I offer a suggestion about how the view can be characterized and how it can be embedded in various kinds of moral theory. I also identify welfarism's major rivals, and its major attractions and weaknesses.