Self-deception raises complex questions about the nature of belief and the structure of the human mind. In this book, Alfred Mele addresses four of the most critical of these questions: What is it to deceive oneself? How do we deceive ourselves? Why do we deceive ourselves? Is self-deception really possible? -/- Drawing on cutting-edge empirical research on everyday reasoning and biases, Mele takes issue with commonplace attempts to equate the processes of self-deception with those of stereotypical interpersonal deception. Such attempts, (...) he demonstrates, are fundamentally misguided, particularly in the assumption that self-deception is intentional. In their place, Mele proposes a compelling, empirically informed account of the motivational causes of biased beliefs. At the heart of this theory is an appreciation of how emotion and motivation may, without our knowing it, bias our assessment of evidence for beliefs. Highlighting motivation and emotion, Mele develops a pair of approaches for explaining the two forms of self-deception: the "straight" form, in which we believe what we want to be true, and the "twisted" form, in which we believe what we wish to be false. -/- Underlying Mele's work is an abiding interest in understanding and explaining the behavior of real human beings. The result is a comprehensive, elegant, empirically grounded theory of everyday self-deception that should engage philosophers and social scientists alike. (shrink)

All of finance is now automated, most notably high frequency trading. This paper examines the ethical implications of this fact. As automation is an interdisciplinary endeavor, we argue that the interfaces between the respective disciplines can lead to conflicting ethical perspectives; we also argue that existing disciplinary standards do not pay enough attention to the ethical problems automation generates. Conflicting perspectives undermine the protection those who rely on trading should have. Ethics in finance can be expanded to include organizational and (...) industry-wide responsibilities to external market participants and society. As a starting point, quality management techniques can provide a foundation for a new cross-disciplinary ethical standard in the age of automation. (shrink)

What is it to deceive someone? And how is it possible to deceive oneself? Does self-deception require that people be taken in by a deceitful strategy that they know is deceitful? The literature is divided between those who argue that self-deception is intentional and those who argue that it is non-intentional. In this study, Annette Barnes offers a challenge to both the standard characterisation of other-deception and current characterizations of self-deception, examining the available explanations and exploring such questions as the (...) self-deceiver's false consciousness, bias, and the irrationality and objectionability of self-deception. She arrives at a non-intentional account of self-deception that is deeper and more complete than alternative non-intentional accounts and avoids the reduction of self-deceptive belief to wishful belief. (shrink)

Recent concern over “high frequency trading” (HFT) has called into question the fairness of the practice. What does it mean for a financial market to be “fair”? We first examine how high frequency trading is actually used. High frequency traders often implement traditional beneficial strategies such as market making and arbitrage, although computers can also be used for manipulative strategies as well. We then examine different notions of fairness. Procedural fairness can be viewed from the perspective of equal opportunity, in (...) which all market participants are treated alike. The same rules apply to HFT as to other traders. Another approach to fairness is in the equality of outcomes. Many HFT strategies are beneficial to other market participants, so one cannot categorically denounce the practice as unfair. Other strategies, for both high and low frequency trading, are not. It is thus important to distinguish between the technology and the use of the technology to make judgments on fairness. (shrink)

ABSTRACT:In this updated and revised version of his 2008 Society for Business Ethics presidential address, Richard Nielsen documents the characteristics and extent of the 2007–2009 economic crisis and analyzes how the ethics issues of the economic crisis are structurally related to a relatively new form of capitalism, high-leverage finance capitalism. Four types of high-leverage finance capitalism are considered: hedge funds; private equity-leveraged buyouts; high-leverage, subprime mortgage banking; and high-leverage banking. The structurally related problems with the four types of high-leverage finance (...) capitalism converged in something of a perfect economic storm. Explanations for the crisis are offered in the context of the type of the high-leverage finance capitalism system that permitted and facilitated the economic crisis. Ethics issues and potential reforms are considered that may be able to mitigate the destructive effects of what Schumpeter referred to as the “creative destructive” effects of evolutionary forms of capitalism while realizing the Aristotelian economic ideal of creating wealth in such a way as to make us better people and the world a better place. (shrink)

Corporate governance and finance are dynamic academic fields that offer myriad opportunities for business ethics analysis. Within the corporate governance triad in recent years, shareholders have increased their power over boards of directors and executives through both regulation and movements to change corporate by-laws. The impact of board characteristics on firm performance has proven elusive, leading to questions concerning board processes and individual director beliefs and behaviors. At the same time, CEOs have lost considerable power, leaving many struggling to regain (...) their control and maintain their compensation levels, while others adopt a stewardship approach to their posts. In the field of finance, the recent financial debacle has led to a reexamination of financial regulation and of the fundamental nature and purpose of the industry. All of these issues provide business ethicists fodder for investigation and analysis. (shrink)