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

Much business ethics and corporate social responsibility literature suggests, implicitly or explicitly, that firms ought to engage in activities that can be characterized as philanthropy, namely, expending resources beyond what is required by law and market norms to promote others’ welfare at the expense of firm profits. However, this literature has struggled to provide a normative framework for evaluating corporate philanthropy, although scholars have noted that such expenditures can potentially remedy market failures and provide public goods more efficiently. I articulate (...) two specific rationales that can justify corporate philanthropy based on considerations of welfare economics: 1) firms making strategic but high-risk investments in activities that are likely to generate positive externalities even if they prove unprofitable and 2) firms possessing a strong comparative advantage in their ability to address a social problem at lower social cost. Moreover, these rationales can be evaluated by a concept I develop called the philanthropy multiplier, indicating the ratio of net positive externalities to net costs. I suggest that firms consider publicizing their philanthropy multipliers, and I discuss theoretical and practical implications. (shrink)

Business owners sometimes refuse to transact with certain customers on principle, given some normative (political, personal, moral, or religious) commitment which they hold. I call such refusals ‘conscientious refusals.’ Evaluating two possible positions on the permissibility of vendor conscientious refusals, I argue in favor of an impersonal market in which vendor conscientious refusals are generally not justified. I argue impersonal norms, which crowd out conscientious considerations, support pluralist, healthy markets from which we reap individual and communal benefits; further, impersonal markets (...) buttress individual freedom by providing a distinctive sphere of activity characterized by norms of radical inclusivity. These considerations constitute a strong case that vendor conscientious refusals are ceteris paribus unjustified. I conclude by addressing several potential objections to this view. (shrink)