Most modern economists can be classified as liberals who believe that the state should not enforce preferences since preferences are not rational. In contrast, the father of modern economics, Adam Smith, was a liberal perfectionist: He believed that some ends are better than others. This position follows from Smith's contention that economic institutions, such as the division of labor, create different characters and preferences among what would otherwise be a homogeneous population. If one wishes to evaluate these institutions, then, it (...) cannot be on the basis of whether they satisfy the very preferences they create. Education was a case in point. There did not seem to be a market for educating the poor, but such an education would have been valuable because it would, Smith thought, counteract the torpor created among workers by the minute division of labor. Therefore, he argued, government provision of education may be called for. The rationale here is paternalistic, yet liberal in the sense that the type of character that was to be formed by education was not passive and thoughtless, but was, rather, autonomous. (shrink)

Journal of Political Philosophy, EarlyView.

The gap between economic rationality, as embedded in utility maximization, and ethical rationality, identified with a set of rules that prescribe the right course of action, has been a challenging issue for economists, philosophers, and business ethicists. Despite the difference and the noncompetition between a scientific economic approach of economics and business ethics, and a behavioral and philosophical one, we highlight the importance of the Aristotelian concept of prudence or phronesis applied to business activity. Phronesis allows for a conceptualization of (...) rationality that can be simultaneously applied to economics and ethics. It also allows conceiving the intrinsically ethical nature of economic rationality. This relationship requires an appropriate education and the intervention of the state. (shrink)

Malthus did not leave us with a systematic treatment of colonization, but from remarks scattered throughout his publications and correspondence it is possible to assemble a fairly coherent account of his views on the advantages and disadvantages of colonies, and on the reasons why some have failed and others succeeded. Included in these scattered remarks are some comparisons between his own views on colonies and those of Adam Smith. The question of the relationship between Malthus and Adam Smith is a (...) rather complex and subtle one, and cannot be given the full consideration it deserves in one short paper. But, as a general summary, it can be said that Malthus had a high regard for Smith and considered himself a follower and disciple of Smith, by contrast with Ricardo, James Mill, and McCulloch etc., whom he considered as exponents of a ‘New System of Political Economy”. His own Principles of Political Economy was conceived as a collection of ‘tracts or essays”, not as a new systematic treatise replacing the Wealth of Nations, Joseph Gamier in his article ‘Malthus” in the Dictionnaire de l'Economie Politique, 1852, saw that the title of the Principles was in fact a misnomer: ‘Malgré son titre, le livre sur les Principes n'est point un traité complet, mais seulement une collection de dissertations.” In what was probably intended as a criticism of Ricardo's Principles of Political Economy and Taxation, 1817, Malthus stated that the ‘present period … seems to be unpropitious to the publication of a new systematic treatise on political economy”, and, referring to Smith's work, stated that ‘the treatise which we already possess is still of the very highest value”. Nevertheless, despite professing his affiliation, Malthus did not hesitate to criticize Smith when he disagreed with him. He recognized that the Wealth of Nations contained ‘controverted points” and that it would require some ‘additions … which the more advanced stage of the science has rendered necessary”. (shrink)

Geary's is the traditional view of the sexes. Yet each part of his argument – the move from sex differences in spatial ability and social preferences to a sex difference in mathematical ability, the claim that the former are biologically primary, and the sociobiological explanation of these differences – requires considerable further work. The notion of a biologically secondary ability is itself problematic.

Nous proposons dans cet article de rechercher chez les prédécesseurs de Frank Knight un peu de lumière pour éclairer sa distinction entrerisque etincertitude. D'une part, la lecture des économistes qui l'ont précédé permet de comprendre sa situation dans lapolémique sur la répartition. D'autre part, l'examen des sources philosophiques qui informent sa théorie de la connaissance conduit à analyser l'opposition risque/incertitude comme une opposition théorie de la probabilité/théorie de la connaissance (imparfaite). Le recours à l'épistémologie de Knight fait saisir en quoi (...) sa démarche philosophique le mène à conclure par l'absurde la polémique sur la répartition, et l'autorise alors à proposer une reconstruction de la théorie économique comme science des choix rationnels. (shrink)

In Adam Smith in Beijing, Giovanni Arrighi attempts to outline the possible consequences of the growth of China through a rereading of the work of Adam Smith and a critique of Marx. This article analyses and sheds light on the limits of this reading, upon which Arrighi bases his prediction of a possible peaceful growth in collaboration amongst the various nations within the world-market. It also seeks to identify what makes Marx’s work so timely for the understanding of the contemporary (...) phase of capitalist globalisation, with its escalation of the exploitation of ever more globalised labour-power, and of international competition. 1. (shrink)

Aneivas and Nişancıoğlu’s provocative book,How the West Came to Rule, attempts to provide an alternative account of the origins of capitalism to both ‘Political Marxism’ and ‘World-Systems Theory’. By making uneven and combined development a universal dynamic of human history and by utilising a flawed concept of ‘Eurocentrism’, however, they introduce a high degree of causal pluralism into their analysis. Despite important insights into the specific dynamics of different pre-capitalist forms of social labour, their account of the origins of capitalism (...) inHow the West Came to Rulesuffers from causal indeterminacy and historical inaccuracies. (shrink)

This essay argues that Knafo and Teschke fundamentally misread Brenner’s original contribution to the transition debate. They equate his rejection of trans-historical or trans-modal laws of motion with the notion that social-property relations do not have strong rules of reproduction that structure the actions of agents and give rise to ‘developmental patterns’ specific to each form of social labour. Knafo and Teschke’s critique of Brenner’s analysis of capitalist expansion and crisis is also theoretically and empirically questionable.

The 1989 revolutions in Central and Eastern Europe and the subsequent transitions have commonly been interpreted in political terms, as movements towards democracy, or in economic terms, as escape from the command economy towards the free market. We revisit the problem to suggest a different reading. We argue that in the legitimization crisis of real socialism, a pivotal role was played by the burden of social oversaturation and bureaucratic arbitrariness, which met its desired alternative in social imaginaries of impersonal, objective (...) social system. For the citizens of Central and East European countries, this fantasy was matched by the promise of the free market, which was morally contrasted to the experience of daily life under late socialism. We argue that this desire to escape from arbitrariness to objectivity is a particularly strong motive in the imaginary of modernity which found one of its historical manifestations in the disappointment with real socialism. (shrink)

In this paper, we propose that economic sustainability is seen in terms of (inter-temporal and inter-national) value creation. We claim that value appropriation (or capture), can become a constraint to economic sustainability. We propose that for sustainable value creation to be fostered, corporate governance needs to be aligned to public and supra-national governance. In order to achieve this, a hierarchically layered set of ‘agencies’, needs to be diagnosed and the issue of incentive alignment addressed. Enlightened self-interest, pluralism and diversity, as (...) well as a representative supra-national organisation for world-wide economic sustainability can serve as a new, more ‘ethically correct’ governance for economic sustainability, but not a panacea. (shrink)

Resumen Se discute el principio de simpatía que Smith desarrolla en la primera edición de La teoría de los sentimientos morales, enfatizando en qué sentido lo considera insuficiente para lograr cohesión en la sociedad comercial. Se argumenta que Smith concibe a La riqueza de las naciones como parte de su misión por desarrollar una teoría de la jurisprudencia, y que en dicha obra enfatiza los peligros que se engendran en la sociedad comercial y las consecuentes dificultades para que esta logre (...) ser una sociedad civilizada. Se arguye que tales peligros y dificultades conducen a Smith a trabajar en el campo de la ética de la virtud, incorporando la Parte VI de la última edición de la TSM.The sympathy principle that Smith develops in the first edition of The Theory of Moral Sentiments is discussed, emphasizing in the sense he considers it insufficient to achieve cohesion in commercial society. It is argued that Smith conceives of The Wealth of Nations as part of his mission to develop the theory of jurisprudence, and that in this work he emphasizes the dangers that are engendered in commercial society and the consequent difficulties for it to become a civilized society. It is argued that such dangers and difficulties lead Smith to work in the field of virtue ethics, incorporating Part VI of the latest edition of the TSM. (shrink)

El presente trabajo se propone mostrar los puntos de contacto existentes entre el desarrollo de la noción de simpatía en La Teoría de los Sentimientos Morales y el desarrollo de la noción de valor en La Riqueza de las Naciones. En cada una de sus dos obras, Smith elige a la noción de simpatía y a la noción de valor como principios fundamentales para la armonía de la conducta social y del sistema de intercambio mercantil, respectivamente. Pero, en ambos casos, (...) esos principios rigen solamente en sociedades pequeñas y no en la sociedad de carácter universal que asomaba ya en la época smithiana, donde el individuo moderno ya no tiene lazos de afecto con todos los miembros de la sociedad y, asimismo, desconoce los esfuerzos necesarios para producir todas las mercancías necesarias para su vida cotidiana. (shrink)

This paper applies insights from behavioral economics and nudge theory to foster sustainable and responsible investment. SRI provides an opportunity to express and promote ethical values via choice of financial instruments. While policy-makers have tried to encourage greater participation in SRI, the majority of retail investors retain a conventional approach to investment. I develop a conceptual framework to improve the effectiveness of SRI policy-making. The first part of the framework comprises a transmission mechanism which emphasizes the role of SRI as (...) a driver for sustainable development. The second part is a model of the individual decision for or against SRI. The framework suggests that low SRI demand is a case of behavioral market failure, and that nudging is a suitable tool for dismantling behavioral barriers to SRI. A specific example of smart choice architecture is used to illustrate the framework’s potential in the design of an SRI nudge. Assuming the nudge stands up to the rigors of empirical testing, it may well provide a feasible alternative for policy-makers. (shrink)

ABSTRACTI present a corrective to the formalist and conventionalist down-playing of physical actions in the understanding of the value of sport. I give a necessarily brief account of the Causal Theory of Action and its implications for the normativity of actions. I show that the CTA has limitations, particularly in the case of failed or incomplete actions, and I show that failed or incomplete actions are constitutive of sport. This allows me to open up the space for another model, drawn (...) from Aristotle, for failed or incomplete actions, conceived of as ‘doables.’ This avoids some of the problems of the CTA. I explain the importance of difficult but doable actions, at which athletes often fail, and suggest that this establishes pro tanto value. Finally, I claim that this account of the actions that are constitutive of sport deepens our understanding of the value of sport as a whole. (shrink)

ABSTRACTThis article introduces an “ordonomic” approach to corporate citizenship. We believe that ordonomics offers a conceptual framework for analyzing both the social structure and the semantics of moral commitments. We claim that such an analysis can provide theoretical guidance for the changing role of business in society, especially in regard to the expectation and trend that businesses take a political role and act as corporate citizens. The systematicraison d'êtreof corporate citizenship is that business firms can and—judged by the criterion of (...) prudent self-interest—“should” take on an active role in rule-finding discourses and rule-setting processes with the intent of realizing a win-win outcome of the economic game. We identify—and illustrate—four ways that corporate citizens can employ moral commitments as a factor of production to enhance their processes of economic value creation. (shrink)

This article introduces an “ordonomic” approach to corporate citizenship. We believe that ordonomics offers a conceptual framework for analyzing both the social structure and the semantics of moral commitments. We claim that such an analysis can provide theoretical guidance for the changing role of business in society, especially in regard to the expectation and trend that businesses take a political role and act as corporate citizens. The systematicraison d'êtreof corporate citizenship is that business firms can and—judged by the criterion of (...) prudent self-interest—“should” take on an active role in rule-finding discourses and rule-setting processes with the intent of realizing a win-win outcome of the economic game. We identify—and illustrate—four ways that corporate citizens can employ moral commitments as a factor of production to enhance their processes of economic value creation. (shrink)

Recent studies on crying show that crying is more common in happier, freer, and richer countries than in poorer and less free countries. These results can sound counterintuitive and contradict the hypothesis that crying is more observable in countries where people experience more distress. Adam Smith may offer an explanation: In the severe hardship of poverty, showing emotion and distress can be read as a sign of weakness, attracting no sympathy and compromising survival. As a result, emotional displays are avoided. (...) Instead, wealthier commercial societies offer ease and tranquility which allows individuals to express their emotions with fewer negative consequences. (shrink)

In modern economics, the use of sympathy and empathy shows significant ambiguity. Sympathy has been used in two different senses. First, it refers to cases where the concern for others directly affects an individual's own welfare . Second, the term has served the purposes of welfare economics, where it is associated with interpersonal comparisons of the extended sympathy type, that is, comparisons between one's own situation in a social state and someone else's in a different social state . On the (...) other hand, empathy has been used interchangeably with sympathy either to render the idea of interdependent utility functions , or to convey the imaginative process of imagining oneself in someone else's place. (shrink)

Volume 52, Issue 12, November 2020, Page 1233-1242.

The paper offers five desiderata on a realist normative theory of politics: that it should avoid moralism, deontologism, transcendentalism, utopianism, and vanguardism. These desiderata argue for a theory that begins from values rooted in a people’s experience; that avoids prescribing a collective deontological constraint; that makes the comparison of imperfect regimes possible; that takes feasibility and sustainability into account; and that makes room for the claims of democracy. The paper argues, in the course of exploring the desiderata, that a neo-republican (...) philosophy of government does pretty well in satisfying them. (shrink)

Group agents have been represented as expressive fictions by those who treat ascriptions of agency to groups as metaphorical; as pragmatic fictions by those who think that the agency ascribed to groups belongs in the first place to a distinct individual or set of individuals; and as theoretical fictions by those who think that postulating group agents serves no indispensable role in our theory of the social world. This paper identifies, criticizes and rejects each of these views, defending a strong (...) realist position. (shrink)

Scandals in companies such as Enron have been a source of great concern in the last decade. The events that led to a global financial crisis in 2008 have heightened this concern. How does one account for executive behaviors that led to such a crisis? This article argues that a conjunction of motive, means, and opportunity creates ‘an ethical hazard’ making questionable executive decisions more probable. It then suggests that corporate unethical behavior can be minimized by creating a process to (...) identify and remove such ethical hazards, and by appointing an ‘ethical hazards marshal.’. (shrink)

In this paper, we show that the question of the relative importance of innate characteristics and institutional arrangements in explaining human difference was vehemently contested in Britain during the first half of the nineteenth century. Thus Sir Francis Galton’s work of the 1860s should be seen as an intervention in a pre-existing controversy. The central figure in these earlier debates—as well as many later ones—was the philosopher and economist John Stuart Mill. In Mill’s view, human nature was fundamentally shaped by (...) history and culture, factors that accounted for most mental and behavioral differences between men and women and among people of different classes, nationalities, and races. Indeed, Mill’s whole program of social reform depended on the assumption that human differences were not fixed by nature. To identify the leading figures in these disputes about difference and the concrete context in which they occurred, we explore three debates in which Mill played a key role: over the capacities and rights of women, the viability of peasant proprietorship in India and Ireland, and the status of black labor in Jamaica. The last two draw our attention to the important colonial context of the nature–nurture debate. We also show that ideas that for us seem of a piece were not always linked for these earlier thinkers, nor did views on innateness necessarily have the political correlates that we now take for granted. (shrink)

This article is the fourth dialogue in a series in which two characters, a pro‐business experienced manager and a critical management academic idealist, debate contemporary management. In this dialogue, the discussion concerns the curriculum of business and management courses. Though as usual there is little agreement between the two participants, the discussion clearly shows just how difficult it will be to change business education without also changing the market position of business schools. Other topics concern the sort of economic assumptions (...) embedded in much of the curriculum, and the relationship between practical skills and political descriptions of capitalism. (shrink)

Managers in Peru, South Africa, and the United States were classified into four groups along Singhapakdi et al. (J Bus Ethics 15:1131–1140, 1996) Perceived Role of Ethics and Social Responsibility (PRESOR) scale. In Peru and the United States, individuals in the ethics and social responsibility first category reported greater satisfaction with organizational performance than did those in the profits first category. Moral capitalists—individuals who report high emphases on both social responsibility and profits—reported the highest satisfaction with performance in the United (...) States. Managers in the United States are more likely than their counterparts in Peru and South Africa to reject the mutual exclusivity of prioritizing social responsibility and profits simultaneously. Directions for future research are outlined. (shrink)

The reasonable human nature appears in the Enlightenment’s philosophy as a reduction of the human being and its manifestations to a complex of natural impulses when all former norms of perception, reflections, inclinations, actions and the moral principles, which lie in their basis, are canceled in the free human self-experimenting. The monarchy idea depreciates when its citizens turn in the public good’s proponents on the basis of a blind republican consent about the egoism’s limitation (Robespierre) and a prosopo-peia of freedom (...) that gives to a nation the self-government illusion. The reconsideration of the revolutionary moment as a self-affirmation of romantic spirit is connected for Tolstoy with the “world will” novel poetics opening evolutionary moment in the affective and reflexive dynamics of the hero’s consciousness, the limiting witness of the narrator and the author’s horizon of progressive movement to the historical process’s purpose that creates the belief in the need of coexistence with other participating consciousnesses. The revolutionary and evolutionary reflection of Tolstoy is related to the monoteis-tic prosopopoeia of divine kenosis. From an artistic representation of signifying articulations of the evolutionary world the teacher’s reflection of Tolstoy is born. For Tolstoy revolution is the moment of the senseless violence aiming to eliminate the common evil of the world. The conceptual basis of literary culture as an art and ideological formatting of reactive consciousnesses for Tolstoy is an infinite aspiration to the human self-limitation. (shrink)

Thanks to Michel Foucault, one might say it has become possible to conceive that the political relevance of humanity in modern thought does not have to do with its “philosophical essence” but rather with its “nonessence.” Yet this very idea surfaced earlier in Western thought, at the time of the revolutionary turn towards a politicized humanitarianism, and helped to shape some crucial political strategies making up modern liberal democracy. Its potential eluded even Foucault. I contend that tracing the contours of (...) this classical, if long unthinkable idea, can inform our response to the other of social critique. (shrink)

The main contention of this paper is that our ability to embed a consideration of values into business school curricula is hampered by certain normative parameters that our students have when entering the classroom. If we don’t understand the processes of valuation that underpin our students’ reasoning, our ethics teaching will inevitably miss its mark. In this paper, we analyze one of the most prevalent metaphors that underpin moral arguments about business, and reveal the beliefs and assumptions that underpin it. (...) By revisiting the content of Adam Smith’s “invisible hand” metaphor, we show that the moral content of the metaphor has been significantly misconstrued through its subsequent reception in economic theory. The “Giving Voice to Values” pedagogy aims to enable students to act on their tacit values and address the rationalizations that they may encounter for not acting on these values. We believe our analysis can strengthen the employment of GVV in three ways: understanding tacit blockages to moral action, i.e., how students’ belief in the moral efficacy of the invisible hand could undermine their own sense of moral duty; addressing common rationalizations that may emerge from different assumptions about morally appropriate courses of action in the workplace; and resolving values conflicts on how to act. (shrink)

ABSTRACTIf war is an inevitable condition of human nature, as David Hume suggests, then what type of societies can best protect us from defeat and conquest? For David Hume, commerce decreases the relative cost of war and promotes technological military advances as well as martial spirit. Commerce therefore makes a country militarily stronger and better equipped to protect itself against attacks than any other kind of society. Hume does not assume commerce would yield a peaceful world nor that commercial societies (...) would be militarily weak, as many contemporary scholars have argued. On the contrary, for him, military might is a beneficial consequence of commerce. (shrink)

How do we measure economic growth? In the eighteenth century, well before the birth of Gross Domestic Product commonly used today, looking at the sign of the balance of trade was a way to take the pulse of a nation's economy. Adam Smith rejects this measure and instead suggests that we should look at population growth. Nations that are able to produce enough to support the life of a growing population have growing economies, nations with constant population have stagnant economies, (...) and nations that face a declining population have contracting economies. Thus, population for Adam Smith is a proxy for our Gross Domestic Product, indicating the changes in production in a country over time. (shrink)

Enthymemes are traditionally defined as arguments in which some elements are left unstated. It is an empirical fact that enthymemes are both enormously frequent and appropriately understood in everyday argumentation. Why is it so? We outline an answer that dispenses with the so called "principle of charity", which is the standard notion underlying most works on enthymemes. In contrast, we suggest that a different force drives enthymematic argumentation—namely, parsimony, i.e. the tendency to optimize resource consumption, in light of the agent's (...) goals. On this view, the frequent use of enthymemes does not indicate sub-optimal performance of arguers, requiring appeals to charity for their redemption. On the contrary, it is seen as a highly adaptive argumentation strategy, given the need of everyday reasoners to optimize their cognitive resources. Considerations of parsimony also affect enthymeme reconstruction, i.e. the process by which the interpreter makes sense of the speaker's enthymemes. Far from being driven by any pro-social cooperative instinct, interpretative efforts are aimed at extracting valuable information at reasonable costs from available sources. Thus, there is a tension between parsimony and charity, insofar as the former is a non-social constraint for self-regulation of one's behaviour, whereas the latter implies a pro-social attitude. We will argue that some versions of charity are untenable for enthymeme interpretation, while others are compatible with the view defended here, but still require parsimony to expose the ultimate reasons upon which a presumption of fair treatment in enthymeme reconstruction is founded. (shrink)

Monetary policy is a modern idea of which David Hume is generally considered a precursor. Moreover, thanks to Milton Friedman and Robert Lucas, he is often presented as one of the first and most illustrious endorser of monetarism. This paper argues against this view, and in agreement with Joseph Schumpeter, that Hume's contribution to economics, while not insignificant, cannot claim any real novelties. It offers an interpretation of Hume as a descendant of a pre-modern understanding of money rather than a (...) forerunner of modern monetary ideas, and as a scholar exposing common ideas of his time rather than a prophet of economic theories developed centuries later, and argues that there is little in Hume that resembles today's monetary policy prescriptions. (shrink)

The method of analysis Adam Smith uses is relatively similar to the method economics generally uses today, especially the subfield of experimental economics. The method of analysis that Smith uses is coherent and consistent throughout his whole work. He searches for constant variables and then sees what variables are changed by exogenous changes. In particular, Smith looks for the constancy in human nature, and analyzes how historical and material circumstances change the incentives that the constant human nature faces. This method, (...) applied to human conduct in all its aspects, makes it easy for many economists today to see some continuity between Smith’s political economy and today’s economic science. (shrink)

This paper reviews Aristotle’s problematic relationship with modern economic theory. It argues that in terms of value and income distribution theory, Aristotle should probably be seen as a precursor to neither classical nor neoclassical economic thought. Indeed, there are strong arguments to be made that Aristotle’s views are completely at odds with all modern economic theory, since, among other things, he was not necessarily concerned with flexible market prices, opposed the use of money to acquire more money, and did not (...) think that the unintended consequences of human activity were generally beneficial. The paper argues however, that this interpretation goes too far. The Benthamite neoclassical theory of choice can be seen as a dumbing down of Aristotle’s theory, applicable to animals, not humans. Adam Smith and Karl Marx were deeply influenced by Aristotle’s work and both started their main economic works with Aristotle: Smith ultimately rejecting, and Marx ultimately developing Aristotle’s views of the use of money to acquire more money. Possibilities for the future development of a new Aristotelian Economics are explored. (shrink)

The fields of positive psychology, cognitive behavioral therapy, mindfulness, and goal-setting have all demonstrated that individuals can modify their beliefs, attitudes, intentions, and behaviors to improve their subjective happiness. But which ethical beliefs affect happiness positively? In comparison to ethical belief systems such as deontology, consequentialism, and altruism, rational egoism appears to be alone in suggesting that an individual’s long-term self-interest and subjective happiness is possible, desirable, and moral. Albeit an important theoretical foundation of the rational egoism philosophy, the relationship (...) between rational egoism and subjective happiness has yet to be investigated empirically. Using (Overall and Gedeon, Business and Professional Ethics. 38:43–78, 2018) 24-item rational egoism scale, we test this relationship on a random sample of 534 full-time American workers using partial least squares structural equation modelling (PLS-SEM). Consistent with rational egoism theory, the main contribution to knowledge of this research is finding a statistically significant relationship between rational egoism and subjective happiness. Implications for practice and areas for future study are suggested. (shrink)

The Chilean Cybersyn project, an attempt to manage a nation’s economy by cybernetic methods, has evoked more and more interest in recent years. The project’s design lead and several team members were alumni of the Ulm School of Design—an institution that has been labelled “Bauhaus successor” and today is famous for a no-arts and method-led design approach with strong societal aspirations. The school also influenced the emerging design discipline in Latin America during the 1960s and 70s. This article reviews topics (...) in the Ulm curriculum that influenced “Ulmian” thinking, but often remained unnoticed in design centred publications. Cybernetics, Operations Research and Information Theory and their relation to design are discussed and the related scholars are portrayed critically. (shrink)

This article explores the motives underlying corporate responses to the COVID-19 pandemic. The analysis begins with Thomas Dunfee’s Statement of Minimum Moral Obligation, which specifies, more precisely than any other contribution to the business ethics canon, the level of corporate beneficence required during a pandemic. The analysis then turns to Milton Friedman’s neoliberal understanding of human nature, critically contrasting it with the notion of stoic virtue that informs the works of Adam Smith. Friedman contends that beneficence should play no role (...) in corporate settings. Smith, by contrast, emphasizes the need for prudence, beneficence and self-command in all human endeavours. The article then uses these competing frameworks to reflect on a published survey of 145 corporate responses to COVID-19. In many of these responses, the benefit to a non-financial stakeholder is clear, while the financial consequence to the firm remains nebulous. This supports the contention that during a pandemic, beneficence provides a more complete explanation of many corporate actions than the profit motive alone. The article contests Friedman’s Chicago School profit imperative and goes beyond Dunfee’s SMMO by endorsing the more full-throated embrace of beneficence and stoic virtue found in the works of Smith. (shrink)

The invisible hand image is at the centre of contemporary debates about capacities of markets, on which discussion of many other topics in business ethics rests. However, its meaning in Adam Smith's writings remains obscure, particularly the religious associations that were obvious to early readers. He drew on Isaac Newton's theories of divine action and providence, mediated through the moderate Calvinism of the eighteenth century Scottish circles in which he moved. I argue within the context of Smith's general providential account (...) of markets, the invisible hand operates restrain inequality and capital flight, thereby stabilizing the market system. Such an understanding of the invisible hand raises questions for contemporary religious and secular discussions of the capacities of markets in the wake of the global financial crisis. (shrink)

The invisible hand image is at the centre of contemporary debates about capacities of markets, on which discussion of many other topics in business ethics rests. However, its meaning in Adam Smith’s writings remains obscure, particularly the religious associations that were obvious to early readers. He drew on Isaac Newton’s theories of divine action and providence, mediated through the moderate Calvinism of the eighteenth century Scottish circles in which he moved. I argue within the context of Smith’s general providential account (...) of markets, the invisible hand operates restrain inequality and capital flight, thereby stabilizing the market system. Such an understanding of the invisible hand raises questions for contemporary religious and secular discussions of the capacities of markets in the wake of the global financial crisis. (shrink)

In recent decades, Alasdair MacIntyre has developed a style of moral philosophy and an argument for Neo-Aristotelian virtue ethics that has deeply influenced business ethics. Most of the work inspired by MacIntyre has dealt with individual and organisational dimensions of business ethics rather than the market economic environment in which individuals and organisations operate. MacIntyre has been a fierce critic of capitalism and economics. He has read Adam Smith an advocate of selfish individualism, rule-based ethics and the banishment of teleology. (...) This reading is seriously defective, and Smith in fact offers much of what MacIntyre calls for in economics. MacIntyre's ethical framework can be made more powerful and useful to business ethicists by incorporating Smithian insights, especially Smith's account of market virtues and teleological account of markets as extended cooperation directed towards the common good of wealth creation. Aside from issues of the interpretation of MacIntyre and Smith, this analysis opens new pathways for dialogue between business ethicists and economists. (shrink)

As concepts of corporate social responsibility (CSR) continue to evolve, the predicament facing CSR managers when attempting to balance the differing interests of various stakeholders remains a persistent management challenge. A review of the extensive literature in this field reveals that the conceptualisation of corporate approaches to responsible stakeholder management remains underdeveloped. In particular, CSR practices within the specific context of the pharmaceutical industry, a sector which particularly dramatically depicts the stakeholder management dilemmas faced by business managers, has been under-researched. (...) To address this gap, this paper utilises qualitative, exploratory data, obtained via multiple research methods, to investigate the CSR practices of major pharmaceutical companies in the UK and Germany. The data are employed to critically re-examine and revise a previously published explanatory framework which identifies the management steps involved in CSR stakeholder engagement. The resulting revised explanatory framework is the main contribution of this paper. By abstracting those factors which influence CSR practice, it provides an analytical tool which is designed to be of practical use for business decision-makers when managing their stakeholder engagement activities. Given that the research addresses values and ideals and prescribes practical recommendations for practitioners, it is essentially applied and normative in nature. Ultimately, the framework proposes a set of steps for developing CSR strategies which could help CSR professionals to make a ‘mindset transition’ from a narrower ‘traditional’ approach to CSR to a more innovative way of thinking. (shrink)

The needs principle—that certain goods should be distributed according to need—has been central to much socialist and egalitarian thought. It is the principle which Marx famously takes to be that which is to govern the distribution of goods in the higher phase of communism. The principle is one that Marx himself took from the Blanquists. It had wider currency in the radical traditions of the nineteenth century. In the twentieth century it remained central to the mutualist form of socialism defended (...) by Tawney and Titmuss. The principle underlay the development and justification of the modern welfare state—thus the National Health Service is still founded upon the idea that the distribution of medical resources should be determined by medical need, not by ability to pay. One source of the power of the needs principle lies in the fact that it appears to be both a principle of justice and a principle of community or social solidarity. As a principle of justice it is offered as a corrective to the particular forms of unequal distributions of goods that can result from market transactions, and as a principle of community or social solidarity as a corrective to the possessive individualism taken to be the corollary of a market order. (shrink)

There is a special problem with respect to our obligations to future generations which is that we can benefit or harm them but that they cannot benefit or harm us. Goodin summarizes the point well:No analysis of intergenerational justice that is cast even vaguely in terms of reciprocity can hope to succeed. The reason is the one which Addison… puts into the mouth of an Old Fellow of College, who when he was pressed by the Society to come into something (...) that might rebound to the good of their Successors, grew very peevish. ‘We are always doing’ says he, ‘something for Posterity, but I would fain see Posterity do something for us’. (shrink)

Until fairly recently it was not uncommon for political theorists to hold the view that people cannot be expected to act in accordance with the public interest without some incentive. Authors such as Marcus Tullius Cicero, John Locke, David Hume and Adam Smith, for instance, held that people often act in accordance with the public interest, but more from a concern for their honour and reputation than from a concern for the greater good. Today, most authors take a more demanding (...) view, maintaining that people are to be just solely from a love for justice, not from a fear of losing face. In this article today's prevailing view, which sees honour as something obsolete and archaic and not as a legitimate motive, is contrasted with the older view that honour is important for both knowing what moral is and acting on it. Subsequently, it is argued that the ethics of honour, especially in the form it took in the works of Hume and Smith, can still be of value, exactly because it is less demanding. (shrink)

The financial crash of 2008 following the selling of fictitious derivatives was a crisis of both rationality and values whose aftermath has thrown the legitimation of deregulated markets, and governments, into question. This paper critiques the Becker metaphor of human capital and submits that human value is central to and the fulcrum of both economic and social values. It illustrates that Hume and Adam Smith directly countered the Hobbesian hypothesis that human nature is based only on self-interest, distinguishes market values (...) from social values, explicit from implicit values and parallels Sen in adopting an ordinal ranking of what people value rather than a search for cardinality. It draws on cognitive psychology, neural research, revealed preference theory and a principle of implicit verification. It also outlines implications for what Adam Smith centrally valued as concern for the welfare of the whole of society. (shrink)

Purpose This paper aims to seek to ascertain the corporate social responsibility information needs of customers of microfinance institutions. It also ascertains their media preferences for CSR disclosure. Design/methodology/approach The study adapted Wilson’s concept of information needs as the conceptual basis of this study. Case study research design was used. The respondents consisted of customers of MFIs in Ghana. Semi-structured interview was used to collect the data. Data were analysed using thematic analysis technique. Findings The study found that the CSR (...) information needs of MFIs’ customers relate to moral disclosure, business survival disclosure, financial and business terms and conditions disclosure, donations disclosure and capacity building and training disclosure. The study also found that family and friends are the most reliable sources of CSR information for MFIs’ customers. Originality/value There is a great deal of literature available on CSR disclosure. However, limited studies have investigated the information needs of customers regarding CSR disclosure. Again, CSR disclosure in the Microfinance sector has received limited attention in the existing literature. This study expanded the existing literature by investigating the CSR information needs of MFIs’ customers. (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)