Winner of the 1975 National Book Award, this brilliant and widely acclaimed book is a powerful philosophical challenge to the most widely held political and social positions of our age--liberal, socialist, and conservative.

Cultures and moral expectations differ around the globe, and so the management of corporate responsibilities has become increasingly complex. Is there, however, a humanistic consensus that can bridge cultural and ethnic divides and reconcile the diverse and contrary interests of stakeholders world-wide? This book seeks to answer that question.

This article pursues the question whether and inasmuch theories of corporate responsibility are dependent on conceptions of managerial freedom. I argue that neglect of the idea of freedom in economic theory has led to an inadequate conceptualization of the ethical responsibilities of corporations within management theory. In a critical review of the history of economic ideas, I investigate why and how the idea of freedom was gradually removed from the canon of economics. This reconstruction aims at a deconstruction of certain (...) axioms of neoclassical economics that hamper contemporary efforts in integrating ethics firmly into management education. I intend to show by these deconstructive endeavors that a constructive use of the idea of responsible freedom could correct and complement the current quantitative focus in business theory through qualitative orientations. I argue that with the help of qualitative success criteria, the strategic integration of the tenets of both business ethics and Corporate Social Responsibility into business practice can be advanced by further research. (shrink)

There is not, of course, a one-to-one relation between policy conclusions and the conclusions of positive economics; if there were, there would be no ...

In this article, we will outline the principles of stakeholder capitalism and describe how this view rejects problematic assumptions in the current narratives of capitalism. Traditional narratives of capitalism rely upon the assumptions of competition, limited resources, and a winner-take-all mentality as fundamental to business and economic activity. These approaches leave little room for ethical analysis, have a simplistic view of human beings, and focus on value-capture rather than value-creation. We argue these assumptions about capitalism are inadequate and leave four (...) problems in their wake. We wish to reframe the narrative of capitalism around the reinforcing concepts of stakeholders coupled with value creation and trade. If we think about how a society can sustain a system of voluntary value creation and trade, then capitalism can once more become a useful concept. (shrink)

While the idea of freedom lies at the heart of our economic system, academic research has neglected to connect theories of the firm to freedom theory. To fill this void, the authors delineate two archetypes of freedom — quantitative and qualitative — and outline the consequences of the respective notions for organisational strategy, corporate governance, leadership and culture. Supporting the quest for reform in management theory, the authors argue for an enlarged perspective of the role of the firm within free (...) societies. (shrink)

Is economics a science? Deidre McCloskey says 'Yes, but'. Yes, economics measures and predicts, but - like other sciences - it uses literary methods too. Economists use stories as geologists do, and metaphors as physicists do. The result is that the sciences, economics among them, must be read as 'rhetoric', in the sense of writing with intent. McCloskey's books, The Rhetoric of Economics and If You're So Smart, have been widely discussed. In Knowledge and Persuasion in Economics he converses with (...) his critics, suggesting that they too can gain from knowing their rhetoric. The humanistic and mathematical approaches to economics, says McCloskey, fit together in a new 'interpretive' economics. Along the way he places economics within the sciences, examines the role of mathematics in the field, replies to critics from the left, right and centre, and shows how economics can again take a leading place in the conversation of humankind. (shrink)

Methodenstreit in Economics. This essay offers an account of the Methodenstreit in economics between first Menger and Schmoller and later Max Weber and again Schmoller. It is argued that, for Schmoller, two issues were central; to use economics (widely conceived) as an instrument for economic policy and notably social policy: and to base the science empirically with all the modern methods available. In contrast, the Austrian position had a different view of economics as a science, seeing it more as a (...) system of ideas, which implies a radically different use of empirical evidence. (shrink)

Management theory and practice are facing unprecedented challenges. The lack of sustainability, the increasing inequity, and the continuous decline in societal trust pose a threat to ‘business as usual’. Capitalism is at a crossroad and scholars, practitioners, and policy makers are called to rethink business strategy in light of major external changes. In the following, we review an alternative view of human beings that is based on a renewed Darwinian theory developed by Lawrence and Nohria. We label this alternative view (...) ‘humanistic’ and draw distinctions to current ‘economistic’ conceptions. We then develop the consequences that this humanistic view has for business organizations, examining business strategy, governance structures, leadership forms, and organizational culture. Afterward, we outline the influences of humanism on management in the past and the present, and suggest options for humanism to shape the future of management. In this manner, we will contribute to the discussion of alternative management paradigms that help solve the current crises. (shrink)

The main aim of this essay will be to garner humanistic values in the Indian and Chinese philosophical traditions and to illustrate the need for an awareness of these positions in business ethics. From the point of view of the latter, one could doubt the relevance of these traditions. Indian philosophical systems are commonly thought of being preoccupied with otherworldly concerns; the feudal backdrop of antique Chinese positions appears unsettling today. Could anything at all, one could ask, be gleaned from (...) them even in debates which, for example, try to enumerate transnational ethical norms to guide one’s business conduct? (shrink)

Abstract The market is sometimes thought to be a largely neutral means for coordinating cooperation among strangers under complex conditions because it is, as Hayek noted, a ?spontaneous order.? But in fact the market actively shapes the kinds of values it rewards, as do other spontaneous orders. Recognizing these biases allows us to see how such orders impinge on one another and on other communities basic to human life, sometimes negatively. In this way we may come to acknowledge the inevitability (...) of placing limits on spontaneous orders. (shrink)