This third edition offers increased coverage of sustainability and more chances for illustration and discussion of ethics in the messy day to day practicalities ...

MANY thinkers deny the possibility of businessmen having responsibilities or ethical obligations. A businessman has no alternative, in view of the competition of the market-place, to do anything other than buy at the cheapest and sell at the dearest price he can. In any case, it would be irrational-if, indeed, it were possible-not to do so. Admittedly, there is a framework of law within which he has to operate, but that is all, and so long as he keeps the law (...) he is free to maximise his profits without being constrained by any moral or social considerations, or any further sense of responsibility for what he does. (shrink)

Can we achieve greater fairness by reforming the corporation? Some recent progressive critics of the corporation arguethat we can achieve greater social justice both inside and outside the corporation by simply rewriting or reinterpreting corporate rulesto favor non-stockholders over stockholders. But the progressive program for reforming the corporation rests on a critical assumption,which I challenge in this essay, namely that the rules of the corporation matter, so that changing them can effect a lasting redistribution of wealth from stockholders to non-stockholders. (...) This essay uses a critique of the progressive reform program to argue that the rules ofthe corporation are distributively neutral. The corporation isn't rigged against non-stockholders, and changing its rules will not improve the bargaining power of non-stockholders. However, while the rules may be epiphenomenal from the standpoint of distributive justice, they can have substantial impacts on the corporation's efficiency. As a result, the proposed reforms may hurt the corporation's capacity to generate benefits for all the parties concerned. (shrink)

This chapter contains sections titled: Financial markets Financial services Financial management.

The use of the nomer ‘corporate’ is hardly an issue in contemporary scholarship on corporate governance. I will argue that this nomer is important for two main reasons. First, the corporate form distinguishes itself from any other form of business representation. In this sense, it is important to know exactly how this form is different to understand how conceptions of ‘corporate governance’ relate to different forms of representation. Second, it is my contention that the use of a particular understanding of (...) incorporation directly informs the concept of internal governance in terms of constituency, structure, ownership and the locus of corporate agency. It is in this sense that I argue that the identification of corporate constituencies and the allocation of agency and ownership is a precondition of business ethics. With this aim in mind, I explore the governance in corporations as the result of the legal understanding of incorporation and the separate legal entity. I explore two historical positions from which five legal positions on the separate legal entity can be derived. These five positions provide reference points for the attribution of ownership and agency between the separate legal entity and the aggregation of individuals that together make up the corporation. Incorporation, as the legal act that constitutes the corporation, can then be shown to adopt multiple and mutually exclusive positions. These positions are central to the debate on the respective claims to agency and ownership between the separate legal entity and the aggregation of individuals. I then end the article by arguing that all concepts of incorporation create legal and economic issues regarding the allocation of ownership and agency, which makes their understanding and the choice behind them important for theories of governance. (shrink)

The use of the nomer ‘corporate’ is hardly an issue in contemporary scholarship on corporate governance. I will argue that this nomer is important for two main reasons. First, the corporate form distinguishes itself from any other form of business representation. In this sense, it is important to know exactly how this form is different to understand how conceptions of ‘corporate governance’ relate to different forms of representation. Second, it is my contention that the use of a particular understanding of (...) incorporation directly informs the concept of internal governance in terms of constituency, structure, ownership and the locus of corporate agency. It is in this sense that I argue that the identification of corporate constituencies and the allocation of agency and ownership is a precondition of business ethics. With this aim in mind, I explore the governance in corporations as the result of the legal understanding of incorporation and the separate legal entity. I explore two historical positions from which five legal positions on the separate legal entity can be derived. These five positions provide reference points for the attribution of ownership and agency between the separate legal entity and the aggregation of individuals that together make up the corporation. Incorporation, as the legal act that constitutes the corporation, can then be shown to adopt multiple and mutually exclusive positions. These positions are central to the debate on the respective claims to agency and ownership between the separate legal entity and the aggregation of individuals. I then end the article by arguing that all concepts of incorporation create legal and economic issues regarding the allocation of ownership and agency, which makes their understanding and the choice behind them important for theories of governance. (shrink)

This second edition of the ground-breaking Ethics in Finance is an up-to-date, valuable addition to the emerging field of finance ethics. Citing examples of the scandals that have shaken public confidence in Wall Street, John R. Boatright explains the importance of ethics in the operation of financial markets and institutions and in the conduct of finance professionals." "Focusing on standards of fairness in market transactions and the duties of fiduciaries and agents in financial relationships, the author introduces a broad range (...) of practical issues related to financial markets, the financial services industry, investment decision making, and corporate financial management. In addition to the topics considered in the first edition, including unethical sales practices, insider trading, the abuse of bankruptcy, and hostile takeovers, the second edition of Ethics in Finance has a broadened scope, incorporating new discussions of issues in mutual funds, conflict of interest, and the financial theory of the firm." "This timely and comprehensive book provides an analysis of ethical issues in finance, suitable for students of finance and business ethics as well as anyone involved in financial activities."--Jacket. (shrink)

Business Ethics is intended for business practitioners and students of business at all levels and is written in a lively and accessible style. It redresses the balance of buisness ethics writing which, up to now, has been weighted heavily in favour of American cases. There are numerous references to real businesses - from multi-national chains to French restaurants, from manufacturing giants to driving schools. Ethically 'hot' topics such as the social chapter of the Maastricht Treaty, the new EC directives, entry (...) of the countries of the former Soviet Union into the world market economy, privatization and the 'green' environment are just some of the more general issues discussed. Companies covered in the book are: Allied Lyons, Apple Corporation, Avon, Bank of Credit and Commerce International, Barlow Clowes, Benetton, Body Shop, British Airways, British Rail, Cadbury-Schweppes, Ecology Building Society, Fiat, Gateway Foodmarkets, Grand Metropolitan, Guinness, ICI, John Lewis, Kingfisher, Ladbrokes, Lloyds Bank, Management Week, Marks & Spencer, Mirror Group Newspapers, Nestle, Polly Peck, Price Waterhouse, Scott Bader, Securicor, Traidcraft, United Biscuits, Virgin, Worldwide Fund for Nature...and many more. Packed with excellent examples from many international companies Written in a lively and accessible style. (shrink)