At the heart of entrepreneurship are imagination, creativity, novelty, and sensitivity. It takes these qualities to develop a new product or service and bring it to market, to envision the possible impacts a new product may make and come up with novel and creative solutions to problems that may arise. These qualities go to make up what could be called the spirit of entrepreneurship, a spirit that involves the ability to handle the experimental nature of entrepreunerial activity. These same qualities (...) are crucial for moral decision making, and an ethical approach which emphasizes imagination, creativity, and has an experimental thrust is much better adapted to the entrepreneurial activity and much more relevant to the unique situations that entrepreneurs face. In this sense, the process approach to ethics developed in this article is a unifying framework that brings together the activity of entrepreneurship and moral decision making. (shrink)

Contributions in modern theoretical physics and chemistry on the behavior of nonlinear systems, exemplified by Ilya Prigogine's work on the thermodynamics of open systems, attract growing attention in economics. Our purpose here is to relate the new orientation in the natural sciences to a particular nonorthodox strand of thought within economics. All that is needed for this purpose is some appreciation of the general thrust of the enterprise, which involves a shift of perspective from the determinism of conventional physics to (...) the nonteleological open-endedness, creative, and nondetermined nature of evolutionary processes. (shrink)

This article describes a practical example of the predicate grue, examining the economic relationship between the percentage rate of unemployment and the percentage change of money wage rates known as the simple Phillips curve which exhibited regular behaviour before 1969 and erratic behaviour thereafter. It is proposed that such practical examples of grue from the real world be redescribed as regulatic. i.e. regular before time t and erratic thereafter. In the instance of a scientific model or theory being falsified it (...) is proposed to describe the predicate as tralse, i.e true before time t and false thereafter. The example to be discussed is a stronger example since entities in the real world started to behave in an extremely unpredictable fashion. (shrink)

In his new foreword to this edition, Hilary Putnam forcefully rejects these nativist claims.

Due to several recent scandals, Business Ethics is now firmly embraced. Whereas in the 1980s and early 1990s there were serious doubts expressed about combining ethics and business, the link now seems to have become self-evident. Fundamental questions about the tensions between business and ethics however continue to receive little attention. In this paper, based upon a debate concerning the Fair Trade company, the strains between business and ethics are analyzed. The article shows how several great thinkers have already considered (...) this tension. Three ways to conceptualize the tension between business and ethics have been distinguished, and these are outlined in the paper. In one approach, ethical entrepreneurship, value tensions are perceived as a source for entrepreneurship. However, this approach presupposes pluralistic ethics. Thinking only in terms of black and white is seen as blocking the ability to adequately handle the tension between business and ethics. Opting for ‘‘ethical entrepreneurship’’, as by Fair Trade, has fundamental and important consequences for the company’s communication policy. (shrink)

While discovery of error provides personal gain for the entrepreneur, does this process automatically allocate value equitably among all stakeholders? We argue that the entrepreneurial process can be used to generate or maintain an entrepreneur’s personal wealth through the exploitation of a stakeholder group. Thus entrepreneurship can be both an equilibrating and a disequilibrating process and that both the visible hand of government and the decisions of an entrepreneur can speed or slow our movement toward value equilibrium. Speed toward value (...) equilibrium is likely to be important to a victimized stakeholder group and deserves further scholarly attention. (shrink)

The normative foundations of the investor centered model of corporate governance, represented in mainstream economics by the nexus-of-contracts view of the firm, have come under attack, mainly by proponents of normative stakeholder theory. We argue that the nexusof- contracts view is static and limited due to its assumption of price-output certainty. We attempt a synthesis of the nexus-of-contracts and the Knightian views, which provides novel insights into the normative adequacy of the investor-centered firm. Implications for scholarship and management practice follow (...) from our discussion. (shrink)

The problem of opportunity discovery is at the heart of entrepreneurial activity. Cognitive limitations determine the search for and the analysis of information and, as a consequence, constrain the identification of opportunities. Moreover, typical personal characteristics – locus of control, need for independence and need for achievement – suggest that entrepreneurs will tend to take a central position in their stakeholder environments and thus fail to adapt to the complexity of stakeholder relationships in their entrepreneurial activity. We approach this problem (...) by adopting a network perspective on stakeholder management. We propose a heuristic approach of stakeholder analysis, which requires two mappings of the entrepreneurial constituents. The first mapping focuses on current interactions between the entrepreneur and their stakeholders, while the second focuses on a specific issue and the stakeholders that constitute it. In effect, such a stakeholder analysis requires entrepreneurs to use the complexity of stakeholder relationships in order to go beyond their cognitive limitations and thus facilitate the discovery of new opportunities. As we will argue, this has clear implications for the ethics and activities of entrepreneurs. (shrink)

What does it mean for someone to have a moral right to something? What kinds of creatures can have rights, and which rights can they have? While rights are indispensable to our moral and political thinking, they are also mysterious and controversial; as long as these controversies remain unsolved, rights will remain vulnerable to skepticism. Here, Sumner constructs both a coherent concept of a moral right and a workable substantive theory of rights to provide the moral foundation necessary to dispel (...) such doubts. (shrink)

The frame problem is widely reputed among philosophers to be one of the deepest and most difficult problems of cognitive science. This paper discusses three recent attempts to display this problem: Dennett's problem of ignoring obviously irrelevant knowledge, Haugeland's problem of efficiently keeping track of salient side effects, and Fodor's problem of avoiding the use of kooky concepts. In a negative vein, it is argued that these problems bear nothing but a superficial similarity to the frame problem of AI, so (...) that they do not provide reasons to disparage standard attempts to solve it. More positively, it is argued that these problems are easily solved by slight variations on familiar AI themes. Finally, some discussion is devoted to more difficult problems confronting AI. (shrink)

This essay explores the controversy over peer-to-peer (p2p) software, examining the legal and ethical dimensions of allowing software companies to develop p2p technologies. It argues that, under the Supreme Court’s ruling in the Sony betamax case, technology developers must be accorded the freedom to innovate and develop technologies that are capable of substantial noninfringing uses. This doctrine, known as the Sony doctrine, provides an important safe harbor for technological development, including p2p. The safe harbor, however, does not immunize conduct beyond (...) the design, sale, or supply of the product. For other conduct that falls outside the Sony safe harbor, the traditional standards of secondary liability apply. (shrink)

Hans Joas is one of the foremost social theorists in Germany today. Based on Joas’s celebrated study of George Herbert Mead, this work reevaluates the contribution of American pragmatism and European philosophical anthropology to theories of action in the social sciences. Joas also establishes direct ties between Mead’s work and approaches drawn from German traditions of philosophical anthropology. Joas argues for adding a third model of action to the two predominant models of rational and normative action—one that emphasizes the creative (...) character of human action. This model encompasses the other two, allowing for a more comprehensive theory of action. Joas elaborates some implications of his model for theories of social movements and social change and for the status of action theory in sociology in the face of competition from theories advanced by Luhmann and Habermas. The problem of action is of crucial importance in both sociology and philosophy, and this book—already widely debated in Germany—will add fresh impetus to the lively discussions current in the English-speaking world. (shrink)

During the past twenty years, there has been an explosion of new interest in entrepreneurs and their activities. Yet only recently has serious research attention been devoted to the ethical problems encountered by entrepreneurs and their organizations. Entrepreneurs face uniquely complex moral problems related to basic fairness, personnel and customer relationships, distribution dilemmas, and other challenges. This essay surveys contemporary research in entrepreneurial ethics, examines the kinds of ethical dilemmas entrepreneurs confront, identifies major research topics and methodological approaches, and discusses (...) possible directions for future research. (shrink)

We investigate the entrepreneurial opportunities and ethical dilemmas presented by technological turbulence. More specifically we investigate the line between Baumol’s [J. Polit. Econ. 98 (1990) 893] productive (e.g. innovation), unproductive (e.g. rent seeking) and destructive (e.g. criminal) entrepreneurship through three examples of Internet innovation – spam (destructive), music file sharing (unproductive), and Internet pharmacies (potentially productive). The emergence of accessible Internet technologies, under present norms, has created the potential for all three entrepreneurial activities. Because of the propensity for self-serving biases (...) and for bending the rules, the need for creativity in overcoming obstacles and overall liabilities of newness, entrepreneurs are likely to challenge established industrial morals and laws. Unlike new entrants, incumbents must abide by the currently accepted norms, and thus suffer from “liabilities of oldness”. The challenge for new entrants is to change sociopolitical legitimacy, whereas incumbents need to defend the established norms. We discuss competitive and other issues that result from technological turbulence and innovation. (shrink)

Despite the recent increase in interest in corporate social responsibility and the propagation of corporate governance in both business and academic literature, from observations of actual practice, the author has seen at all company levels, in everyday operations, instances of non-ethical behaviour vis-à-vis the whole gamut of stakeholders. This state of affairs is linked with: pressure from stakeholders, short-term tactics, hegemony of financial considerations, ‘juridisation’ of business, the tyranny of communications and the media and the difficulties in translating strategy into (...) practical implementation. The paper scrutinises the motivation and the psychology of entrepreneurs and business people, and their behaviour is compared to other professional groups and confronted with the decline in ethics in society as described by some important observers. The conclusion drawn is that the recent positive evolutions do not provide sufficient ethical guidelines for the day-to-day activities of middle managers and entrepreneurs in the present competitive environment. Managers will always be confronted by difficult choices with ethical dilemmas. There will always be a tension between theory and pragmatism, but progress can be made with the effective implementation of the ethical discourse in companies. To achieve this, ethical management should not be confined to the large strategic issues but also applied to the small practical matters of everyday business life. Ethics in business and entrepreneurship requires more than corporate governance and corporate social responsibility (CSR). (shrink)

Brian Skyrms, author of the successful Evolution of the Social Contract has written a sequel. The book is a study of ideas of cooperation and collective action. The point of departure is a prototypical story found in Rousseau's A Discourse on Inequality. Rousseau contrasts the pay-off of hunting hare where the risk of non-cooperation is small but the reward is equally small, against the pay-off of hunting the stag where maximum cooperation is required but where the reward is so much (...) greater. Thus, rational agents are pulled in one direction by considerations of risk and in another by considerations of mutual benefit. Written with Skyrms's characteristic clarity and verve, this intriguing book will be eagerly sought out by students and professionals in philosophy, political science, economics, sociology and evolutionary biology. (shrink)

This book was first published in 1984, as the revised edition of a 1979 original. The text is composed of studies in a descending sequence from perfect rationality, through imperfect and problematical rationality, to irrationality. Specifically human rationality is characterized by its capacity to relate strategically to the future, in contrast to the myopic 'gradient climbing' of natural selection. There is trenchant analysis of some of the parallels proposed in this connection between the biological and the social sciences. In the (...) chapter on imperfect rationality the crucial notion is that of 'binding oneself', as Ulysses did before setting out to the Sirens, when weakness of will may prevent us from using our capacity for perfect rationality. The second half of the book deals with rational-actor theory, comparing its logical power and success to rival approaches, and with the varieties of irrationality expressed in contradictory beliefs and desires. (shrink)

Common sense suggests that it is always preferable to have more options than fewer, and better to have more knowledge than less. This provocative book argues that, very often, common sense fails. Sometimes it is simply the case that less is more; people may benefit from being constrained in their options or from being ignorant. The three long essays that constitute this book revise and expand the ideas developed in Jon Elster's classic study Ulysses and the Sirens. It is not (...) simply a new edition of the earlier book, though; many of the issues merely touched on before are explored here in much more detail. Elster shows how seemingly disparate examples which limit freedom of action reveal similar patterns, so much so that he proposes a new field of study: constraint theory. The book is written in Elster's characteristically vivid style and will interest professionals and students in philosophy, political science, psychology, and economics. (shrink)

To begin with, we need to separate off the easy talk of “rights” in which they seem automatically to correspond with a person’s duties or obligations. It is of course true that since I have a duty not to wreak murder or mayhem on you, you have the corresponding right that I not do these things. But so far, the talk of “rights” is simply an alternative way to speak of someone else’s duties; the special or unique point to a (...) “right” would seem to be that it places in its possessor’s hands the power to decide whether another person’s obligation toward him may be waived or not. I wouldn’t be able to waive my right to your not murdering me; although I could waive your right to be extraordinarily careful not to cause me harm—as I imagine boxers do (within the limits of the agreed-upon rules) or patients do who will be subjected to experimental therapies and sign consent forms or skydivers do who agree to be dropped from planes at high altitudes. A right places a constraint on the corresponding obligation. (shrink)